Hesperia City Council
May 17, 2022

Tuesday, May 17, 2022
Meeting Agenda
Closed Session - 5:30 PM

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
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.

Br
igit Bennington, Mayor 9700 Seventh Avenue
Bill Holland, Mayor Pro Tem Hesperia, CA 92345
Larry Bird, Council Member
Cameron Gregg, 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:

Ci
ty 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.

Publ
ic 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.

Ci
ty Council meetings may be viewed live or after the event on the City’s website at www.cityofhesperia.us.

Remo
te 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) 947-1056. 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)947-1056 to leave a detailed message of your public comment.

• Identify your name and the item you wish to comment on in your message.

• Contact information in your voicemail is optional, but will allow staff to easily follow up with you if necessary.

• Each 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.

May 17, 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 - 5:30 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. Assistant Secretary for FHEO v. City of Hesperia, California, et al.; Case Number 09-16-4717-8
CALL TO ORDER - 6:30 PM
A. Invocation
City of Hesperia Printed on 5/11/2022
May 17, 2022City Council Meeting Agenda
B.

Pledge of Allegiance to the Flag
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 resident Yoselin Yara, Pride Enhancement Program honoree.

2. Presentation of Certificates of Recognition to the Oak Hills High School Softball Team 2022 MRL Championship by the City Council

3. Illegal Fireworks Enforcement Update by Tom Strong, Interim Deputy Fire Marshal.

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, May 3, 2022.

Recommended Action:

It is
recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, May 3, 2022.

Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2022-05-03Attachments:

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

May 17, 2022City Council Meeting Agenda
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.

Staff Person: Director of Administrative Services Casey Brooksher SR Warrant Run 5-17-2022
Attachment 1 - Warrant Run
Attachments:

3. Treasurer’s Cash Report for the unaudited period ended March 31, 2022.

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's Report 5-17-2022
Attachment 1 - Treasurer's Report
Attachments:

4. Three-Year Maintenance and Licensing agreement with ECS imaging Recommended Action:

It
is recommended that the City Council authorize the City Manager to enter into a three-year contract with ECS imaging (ECS), in the amount of $89,794 plus a 5% contingency amount of $4,490 for a total not-to-exceed contract amount of $94,284, to provide maintenance and licensing for the Electronic Document Management System (Laserfiche).

Staff Person: Director of Administrative Services Casey Brooksher SR ECS Imaging Agreement 5-17-2022Attachments:

5. Contract with Data Ticket, Inc. for Collection Services Recommended Action:

It
is recommended that the City Council authorize the City Manager to execute a three-year sole source contract with Data Ticket, Inc. in a not-to-exceed contract amount of $302,250, with an optional extension of two years, for the management and collection of citations, cost recovery, appeals, and hearing officer services.

Staff Person: Administrative Analyst Jacquelyn Castillo SR Contract with Data Ticket, Inc. for Collection Services 5-17-2022Attachments:

6. Award of Contract for Street Sweeping Services
Recommended Action:

May 17, 2022City Council Meeting Agenda
It is recommended that the City Council authorize the City Manager to enter into a one-year contract with Guardian Street Sweeping in an amount not-to-exceed $357,585, for street sweeping services.

Staff Person: Director of Public Works Jeremy McDonald
SR Award of Contract for Street Sweeping Services 5-17-2022Attachments:

7. Award of Contract for Unarmed Security Services
Recommended Action:

It
is recommended that the City Council and Board of Directors of the Hesperia Water District (District) authorize the City Manager to enter into a one-year contract with Infinity National Security Services, Inc. in an amount not-to-exceed $118,500, for unarmed security services.

Staff Person: Director of Public Works Jeremy McDonald
SR Award of Contract for Unarmed Security Services 5-17-2022Attachments:

8. Townsend Public Affairs Contract Amendment
Recommended Action:

It
is recommended that the City Council authorize the City Manager to approve an amendment of $55,000 to the existing Professional Services Agreement with Townsend Public Affairs for a revised not-to-exceed contract amount of $530,750, and approve a one-year contract extension for State Legislative Advocacy and State and Federal Funding Advocacy Services.

Staff Person: Management Analyst Jamie Carone
SR Townsend Public Affairs Contract Amendment 5-17-2022Attachments:

9. Memorandum of Understanding between City of Hesperia and Teamsters Local 1932 for the period of February 1, 2022 through January 31, 2024 Recommended Action:

It
is recommended that the City Council adopt Resolution No. 2022-35 and the Board of Directors of the Hesperia Water District adopt Resolution No. 2022-05, approving the Memorandum of Understanding with Teamsters Local 1932 (Teamsters).

Staff Person: Assistant City Manager Rachel Molina and Director of Administrative Services Casey Brooksher
SR Memorandum of Understanding Teamsters Local 1932 5-17-2022 Attachment 1 - Memorandum of Understanding
Resolution 2022-035
Resolution HWD 2022-05
Attachments:

10. Professional Services Agreement with CivicPlus
Recommended Action:

It
is recommended that the City Council authorize the City Manager to enter into

May 17, 2022City Council Meeting Agenda
a three (3) year agreement with CivicPlus, LLC in an amount not-to-exceed $50,000, to provide online hosting and maintenance for the codification of the City’s Ordinances.

Staff Person: Director of Government Services/City Clerk Melinda Sayre SR Professional Services Agreement with CivicPlus 5-17-2022Attachments:

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.

11. Bond Opportunities for Land Development (BOLD)
Recommended Action:

It
is recommended that the City Council hold a public hearing to receive comments regarding the California Municipal Finance Authority (CMFA) Bond Opportunities for Land Development (BOLD); and adopt Resolution No. 2022-23, authorizing the City to join the CMFA; and adopt Resolution No. 2022-24 for the City to allow development projects within the City to participate in the BOLD Program.

Staff Person: Director of Administrative Services Casey Brooksher and Assistant City Manager Rachel Molina
SR Bond Opportunities for Land Development (BOLD) 5-17-2022 Resolution 2022-23
Resolution 2022-24
Attachments:

12. Adoption of a Resolution Establishing the Formation and Certifying the Election R
esults of Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services)
Recommended Action:

It is recommended that the City Council conduct the Public Hearing and after receiving public testimony and deliberation and: 1) Adopt a Resolution Establishing the Formation of the City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) (“CFD 2022-1”) and Future Annexation Area, 2) Adopt a Resolution Calling a Special Election and 2) Adopt a Resolution Declaring the Results of a Special Landowner Election and Directing the Recording of a Special Tax Lien.

Staff Person: Assistant City Manager Rachel Molina and Director of Administrative Services Casey Brooksher

May 17, 2022City Council Meeting Agenda
SR Resolution Establishing the Formation of CFD 2022-1 5-17-2022 Attachment 1 - Resolution 2022-31 Formation of CFD
Attachment 2 - Resolution 2022-32 Calling for a Special Election Attachment 3 - Resolution 2022-33 Declaring Election Results Attachment 4 - Ordinance 2022-06 CFD 2022-1
Attachment 5 - CFD Special Tax Report
Attachments:

13. CUP19-00010, TPM22-00002 & DA22-00001 (Covington Group, Inc.; APNs:
3064-351-03, 3064-361-01, 3064-391-01, 3064-401-02)
Recommended Action:

The Planning Commission recommends that the City Council adopt Resolution No. 2022-37, recommending that the City Council make the environmental determination pursuant to the California Environmental Quality Act (CEQA) by certifying the Final Environmental Impact Report (FEIR) and adopting a statement of overriding considerations and adopt Resolution Nos. 2022-38 and 2022-39, approving CUP19-00010 and TPM22-00002 as well as Ordinance 2022-09, approving DA22-00001.

Staff Person: Assistant City Manager Rachel Molina and Senior Planner Ryan Leonard SR CUP19-00010, TPM22-00002 & DA22-00001 5-17-2022
Resolution 2022-37
Attachment 2 - Exhibit A Findings of Fact
Attachment 3 - Exhibit B Mitigation Monitoring and Reporting Program Resolution 2022-38
Attachment 5 - Exhibit A Conditions of Approval (CUP19-00010) Resolution 2022-39
Attachment 7 - Exhibit A Conditions of Approval (TPM22-00002) Ordinance 2022-09
Attachment 9 - Development Agreement
Attachment 10 - Planning Commission Agenda
Attachments:

NEW BUSINESS

14. City of Hesperia Community Assistant Program (CAP) - Grant Awards Recommended Action:

It
is recommended that the City Council, after reviewing the Hesperia City Council Advisory Committee (CCAC) CAP applicant rankings, Exhibit “A”, adopt Resolution No. 2022-25 to approve the Program Year (FY) 2022-23 CAP funding for each applicant.

Staff Person: Economic Development Manager Victor Knight and Administrative Analyst April Antonio

May 17, 2022City Council Meeting Agenda
SR Community Assistance Program (CAP) 5-17-2022
Attachment 1 - Application Notebooks
Attachment 2 - Exhibit A Application Matrix & CCAC Recommendations 2022 Resolution 2022-25
Attachments:

15. FY 2022-23 Budget Workshop #2 - Budget Update
Recommended Action:

It
is recommended that the City Council and the Board of Directors of the Hesperia Water District receive and file this staff report, which provides information about the current status of the City of Hesperia’s proposed operating budget for FY 2022-23.

Staff Person: Director of Administrative Services Casey Brooksher SR FY 2022-23 Budget Workshop #2 - Budget Update 5-17-2022Attachments:

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
I, Melinda Sayre, City Clerk of the City of Hesperia, California do hereby certify that I caused to be posted the foregoing agenda on Thursday, May 12, 2022 at 5:30 p.m. pursuant to California Government Code §54954.2. _____________________________
Melinda Sayre,
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, May 3, 2022 6:30 PM

REGULAR MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

HESPERIA FIRE PROTECTION DISTRICT

HESPERIA WATER DISTRICT
CLOSED SESSION - 5:30 PM
Roll Call

Present: 5 - Mayor Bennington, Mayor Pro Tem Holland, Council Member Bird, Council Member G
regg, and Council Member Swanson
Conference with Legal Counsel - Potential Litigation: Government Code Section 54956.9(d)2

1. One (1) Case
Conference with Labor Negotiator Government Code Section 54957.6

1. Negotiations between the City of Hesperia and the Teamsters Local 1932 with the City's Negotiator. (Staff person: Rachel Molina, Assistant City Manager)
CALL TO ORDER - 6:30 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call

Present: 5 - Mayor Bennington, Council Member Bird, Council Member Swanson, Mayor
Pro Tem Holland and Council Member Gregg
D. A genda Revisions and Announcements by City Clerk
None
City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345

City of Hesperia
E. Closed Session Reports by City Attorney
No reportable action.

ANNOUNCEMENTS/PRESENTATIONS

1. HEART Program update by Jamie Carone, Management Analyst

2. Presentation on smoke detector requirements for home additions or alterations by Rachel Molina, Assistant City Manager.

GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Daniel Krist spoke on community issues.

Bob Nelson spoke on speaking limits.

Traci Avent Costanza spoke on light pollution.

Magdalena Martinez spoke on the truck parking ordinance.

Jon Dunbar spoke on community issues.

Cheri Garrison spoke on a community event.

JOINT CONSENT CALENDAR
A motion was made by Holland, seconded by Gregg, that the joint consent calendar be approved.

The motion carried by the following vote:

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

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, April 19, 2022.

Recommended Action:

It is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesda
y, April 19, 2022.

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 Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

Sponsors: Director of Administrative Services Casey Brooksher

3. Contract with Badger Meter Inc.

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 one (1) year agreement with Badger Meter Inc. in a total not to exceed amount of $275,000, for the purchase of water meters and related water meter parts.

Sponsors: Director of Public Works Jeremy McDonald

City of Hesperia

4. GP Electric Motor Contract Amendment
Recommended Action:

It is recommended that the Board of Directors of the Hesperia Water District (District) authorize the City Manager
to approve an amendment of $30,000 to the existing contract with GP Electric Motor, for a total revised not to exceed amount of $130,000, and approve a one-year contract extension for well motor maintenance.

Sponsors: Director of Public Works Jeremy McDonald

5. D&H Water Systems, Inc. New Contract
Recommended Action:

It is recommended that the Board of Directors of the Hesperia Water District authorize the City Manager to
enter into a one (1) year agreement with D&H Water Systems, Inc. in a not to exceed contract amount of $51,000, for the purchase of Constant Chlor Plus Briquettes.

Sponsors: Director of Public Works Jeremy McDonald

6. Duthie Power Services, Inc. Contract Amendment
Recommended Action:

It is recommended that the Board of Directors of the Hesperia Water District (District) authorize the City Manager
to approve an amendment of $20,000 to the existing contract with Duthie Power Services, Inc. for a total revised not to exceed amount of $70,000 and approve a one-year contract extension for generator maintenance.

Sponsors: Director of Public Works Jeremy McDonald

7. Lawnscape Systems, Inc. Contract Amendment
Recommended Action:

It is recommended that the City Council authorize the City Manager to approve an amendment of $62,000 to the existin
g contract with Lawnscape Systems, Inc., for a total revised not to exceed contract amount of $234,376, and approve a one-year contract extension for weed control and abatement services.

Sponsors: Director of Public Works Jeremy McDonald

8. Contract with Ferguson Waterworks
Recommended Action:

It is recommended that the Board of Directors of the Hesperia Water District authorize the City Manager to
enter into a one (1) year agreement with Ferguson Waterworks in an amount not to exceed $125,000, for the purchase of DFW meter boxes and lids.

Sponsors: Director of Public Works Jeremy McDonald

9. Pacific Products & Services, LLC Contract Amendment
Recommended Action:

It is recommended that the City Council authorize the City Manager to approve an amendment to the

City of Hesperia
existing contract with Pacific Products & Services, LLC for an additional $80,000 for a total revised not to exceed contract amount of $130,000, and approve a one-year contract extension for the purchase of traffic signs and sign materials.

Sponsors: Director of Public Works Jeremy McDonald

10. Cooperative Agreement with the City of Victorville for Traffic Signal and Striping/Pavement Marking Maintenance on
Bear Valley Road
Recommended Action:

It is recommended that the City Council authorize the City Manager to enter into a five (5) year cooperative
agreement with the City of Victorville, for the shared maintenance cost of thirteen (13) traffic signals and striping/pavement marking maintenance on Bear Valley Road, in a total not to exceed amount of $250,000.

Sponsors: Director of Public Works Jeremy McDonald

11. Final Tract Map 16750
Recommended Action:

It is recommended that the City Council adopt Resolution No. 2022 29 approving Final Tract Map No. 16750
to create 35 Single family Residential lots on approximately 10 gross acres zoned R1 located on the southeast corner of Muscatel Street and Mesa Avenue (Applicant: LCTH Investment, L.P. APN: 3046 011 09).

Sponsors: Administrative Analyst Bethany Hudson

12. Final Tract Map 20332
Recommended Action:

It is recommended that the City Council adopt Resolution No. 2022 30 approving Final Tract Map No. 20332
to create 5 Single family Residential lots on approximately 3 gross acres zoned Low Density Residential within the Main Street and Freeway Corridor Specific Plan located on the southwest corner of Valencia Street and Maple Avenue (Applicant: I.E. Business Solutions APN: 0405 053 05).

Sponsors: Administrative Analyst Bethany Hudson

13. Permanent Water Rights Purchase and Lease from Vanhoops Holdings, LP Recommended Action:

It is recommended that the Board of Directors of the Hesperia Water District authorize the purchase of 360 ac
re feet (AF) of permanent Bass Annual Production water rights in the Alto Subarea from Vanhoops Holdings, LP at $6,060 per AF for $2,181,600, 234 AF of Carryover rights at $500 per AF totaling $117,000, and 198 AF of FPA at $500 per AF totaling $99,000, for a total transaction amount of $2,397,600, for the permanent and temporary assignment of water rights.

Sponsors: Management Analyst Tina Souza

City of Hesperia

NEW BUSINESS

14. FY 2022 23 Budget Workshop #1 Operating Budget
Recommended Action:

It is recommended that the City Council and the Board of Directors of the Hesperia Water District receive and
file this staff report, which provides information about the current status of the City of Hesperia’s proposed operating budget for FY 2022 23.

Sponsors: Director of Administrative Services Casey Brooksher Discussion item, no action taken on this item.

COUNCIL COMMITTEE REPORTS AND COMMENTS
Larry complimented staff on their presentations and work, and commented on community clean up, the Silverwood project open house, related road widening, MRL Champion Sultana boys’ tennis team, OHHS and SHS girls’ softball going on to CIF, and would like to close the meeting in prayer for a student who passed.

Rebekah commented on her thankfulness for Advance Disposal efficiency, the City's excellent water quality, Hesperia Days event in September, upcoming National Day of Prayer, Lime Street park grand opening next Thursday, Hesperia High School etiquette dinner, VVTA, the end of the school year, asked the City Manager for a report on Housing statistics for the last 5 years and projections into the future, and the completion of unfinished developments.

Cameron commented on speaking to the Widows or Widowers group, wanted to address comments on the Hometown Hero Brigade and support for the program, and praised the efficacy of the HEART program.

Bill commented on public comments by Bob Nelson, public comments on light pollution, street lighting, thanked Captain Billings, Lieutenant Hubbard, and SBCSD deputies on OHV enforcement and speeding on Summit Valley Rd., his pride in the recently adopted new district boundaries, and announced this would be his last term on the City Council.

Brigit recognized Jon Dunbar and her parents in the audience, thanked staff for their participation in the LOCC meeting, the CCAC meeting and the CAP program and staff's presentation there, asked staff to write a letter of support for State grant program for air quality, her tour of the VVWRA reclamation facility, Coffee with the Mayor on May 10, upcoming VVEDA meeting, thanked City, Animal Control, Sheriff, and Fire staff, illegal fireworks, the Lime Street park ribbon cutting, OHHS softball winning MRL and their advancing to CIF, and would like to close the meeting in honor of a Sultana's students passing.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
None

ADJOURNMENT
The Meeting was adjourned at 7:27 pm in honor of a Sultana High School student passing. _____________________________
Erin Baum,
Assistant City Clerk

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City of Hesperia

STAFF REPORT

DATE: May 17, 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
Fatima Jacobo, 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 March 26, 2022 through April 22, 2022.

ATTACHMENT(S)

1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $3,726,533.77 $484,524.69 $0.00 $4,211,058.46 Successor Agency 0.00 0.00 0.00 0.00
Housing Authority 5,282.25 353.33 0.00 5,635.58
Community Development Commission 0.00 0.00 0.00 0.00
Water 703,007.50 219,529.54 0.00 922,537.04
Totals $4,434,823.52 $704,407.56 $0.00 $5,139,231.08

YEAR-TO PRIOR FY YTD

W/E W/E W/E W/E WARRANT DATE DATE
FUND # FUND NAME 4/1/2022 4/8/2022 4/15/2022 4/22/2022 TOTALS Wires TOTALS * TOTALS Accounts Payable
100 GENERAL 124,068.59$ 71, 392.52$ 141, 339.76$ 1, 741,705.04$ 2, 078,505.91$ -$ 23, 028,945.09$ 21, 436,546.53$ 200 HESPERIA FIRE DISTRICT -$ -$ -$ -$ -$ -$ -$ 1, 917.67$ 204 MEASURE I - RENEWAL 14,556.85$ 7, 174.45$ -$ -$ 21, 731.30$ -$ 260, 210.83$ 598, 058.72$ 207 LOCAL TRANSPORT-SB 325 -$ -$ -$ -$ -$ -$ 28, 666.16$ 16, 902.70$ 209 GAS TAX-RMRA -$ -$ -$ -$ -$ -$ 68, 083.24$ 2, 751,697.93$ 210 HFPD (PERS) -$ -$ -$ -$ -$ -$ 1, 007,746.00$ 975, 994.00$ 251 CDBG 3,288.00$ 499, 520.56$ 20, 580.11$ 5, 633.84$ 529, 022.51$ -$ 1, 167,873.10$ 748, 463.52$ 254 AB2766 - TRANSIT -$ -$ -$ -$ -$ -$ -$ -$
256 ENVIRONMENTAL PROGRAMS GRANT 1.50$ 39. 51$ 1, 099.24$ 684. 10$ 1, 824.35$ -$ 33, 384.89$ 25, 306.72$ 257 NEIGHBORHOOD STABILIZATION PROG -$ -$ -$ -$ -$ -$ -$ 7, 013.56$ 258 CDBG-CV CARES ACT -$ -$ -$ -$ -$ -$ -$ 19, 446.90$ 260 DISASTER PREPARED GRANT -$ -$ -$ -$ -$ -$ -$ -$ 263 STREETS MAINTENANCE 36,871.65$ 15, 471.28$ 15, 520.62$ 75, 433.97$ 143, 297.52$ -$ 1, 396,242.78$ 1, 797,227.32$ 300 DEV. IMPACT FEES - STREET -$ -$ 12, 136.29$ 8. 96$ 12, 145.25$ -$ 47, 633.58$ 2, 350,327.05$ 301 DEV. IMPACT FEES - STORM DRAIN -$ 7, 867.50$ -$ -$ 7, 867.50$ -$ 47, 737.00$ 82, 663.17$ 302 DEV. IMPACT FEES - FIRE -$ -$ -$ -$ -$ -$ -$ -$ 303 DEV. IMPACT FEES - POLICE -$ -$ -$ -$ -$ -$ 23, 330.00$ -$ 304 DEV. IMPACT FEES - PUBLIC WKS. -$ -$ -$ -$ -$ -$ -$ -$ 306 DEV. IMPACT FEES - 2018-STREETS 51,113.37$ 27, 297.71$ -$ 8. 95$ 78, 420.03$ -$ 2, 152,268.30$ -$ 312 DIF 2018-POLICE FACILITIES -$ -$ -$ -$ -$ -$ 6, 888.17$ -$ 313 DIF A-04 DRAINAGE -$ -$ -$ -$ -$ -$ 963, 699.00$ -$ 396 DEVELOPMENT IMPACT -$ -$ -$ -$ -$ -$ -$ -$
399 FEMA-1203-DR (DISASTER) -$ -$ -$ -$ -$ -$ -$ -$ 400 2004 STREETS -$ -$ -$ -$ -$ -$ -$ -$
401 CITY DEBT SERVICES -$ -$ -$ -$ -$ -$ -$ -$
402 WATER RIGHTS ACQUISITION -$ -$ -$ -$ -$ -$ 1, 436,593.88$ 1, 435,862.80$ 403 2013 REFUNDING LEASE REV BONDS -$ -$ -$ -$ -$ -$ 865, 585.83$ 239, 998.57$ 501 CFD 91-3 BELGATE -$ -$ -$ -$ -$ -$ -$ -$
504 CITY WIDE STREETS - CIP 101,550.69$ 87, 425.78$ 8, 468.60$ -$ 197, 445.07$ -$ 1, 539,308.44$ 434, 860.49$ 509 CITY FACILITIES CIP -$ -$ -$ -$ -$ -$ -$ -$
800 EMPLOYEE BENEFITS 88,202.75$ 297, 685.37$ 108, 922.41$ 71, 116.68$ 565, 927.21$ -$ 6, 216,607.92$ 5, 877,915.73$ 801 TRUST/AGENCY (94.10)$ 1, 486.37$ 65, 186.83$ 8, 305.46$ 74, 884.56$ -$ 2, 594,183.16$ 1, 610,740.17$ 802 AD 91-1 AGENCY -$ -$ -$ -$ -$ -$ -$ -$
804 TRUST-INTEREST BEARING 3,990.00$ -$ -$ 8, 170.00$ 12, 160.00$ -$ 66, 720.00$ 966. 55$ 807 CFD 2005-1 -$ -$ 3, 302.56$ -$ 3, 302.56$ -$ 1, 281,548.77$ 1, 851,084.10$ 808 HFPD (TRANSITION) -$ -$ -$ -$ -$ -$ 369, 875.18$ 349, 739.56$ 815 PLAN REVIEW TRUST - FRONTIER -$ -$ -$ -$ -$ -$ -$ -$ CITY 423,549.30$ 1,015,361.05$ 376, 556.42$ 1, 911,067.00$ 3, 726,533.77$ -$ 44, 603,131.32$ 42, 612,733.76$ 163 REDEVELOP OBLIG RETIREMENT-2018 -$ -$ -$ -$ -$ -$ 9, 999,319.34$ 9, 724,979.08$ SUCCESSOR AGENCY -$ -$ -$ -$ -$ -$ 9, 999,319.34$ 9, 724,979.08$ 370 HOUSING AUTHORITY 2,377.00$ 586. 85$ -$ 2, 318.40$ 5, 282.25$ -$ 35, 607.18$ 67, 323.70$ HOUSING AUTHORITY 2,377.00$ 586.85$ -$ 2, 318.40$ 5, 282.25$ -$ 35, 607.18$ 67, 323.70$ 170 COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ -$ 1, 135.42$ COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ -$ 1, 135.42$ 700 WATER OPERATING 86,172.50$ 55, 377.05$ 58, 010.22$ 128, 537.38$ 328, 097.15$ -$ 6, 835,619.35$ 13, 303,870.72$ 701 WATER CAPITAL -$ -$ -$ 700. 00$ 700. 00$ -$ 89, 261.90$ 1, 085,067.82$ 710 SEWER OPERATING 288,169.59$ 3, 940.72$ 34, 647.00$ 42, 610.90$ 369, 368.21$ -$ 4, 011,396.68$ 2, 960,865.73$ 711 SEWER CAPITAL 3,977.00$ 320. 00$ -$ 469. 00$ 4, 766.00$ -$ 158, 080.59$ 1, 843,019.02$ 713 SEWER CAPITAL REHAB AND REPLACE -$ -$ -$ -$ -$ -$ -$ 54, 882.50$ 720 RECLAIMED WATER OPERATIONS -$ 76. 14$ -$ -$ 76. 14$ -$ 236, 533.55$ 234, 635.83$ WATER 378,319.09$ 59,713.91$ 92, 657.22$ 172, 317.28$ 703, 007.50$ -$ 11, 330,892.07$ 19, 482,341.62$ ACCOUNTS PAYABLE TOTAL 804,245.39$ 1,075,661.81$ 469, 213.64$ 2, 085,702.68$ 4, 434,823.52$ -$ 65, 968,949.91$ 71, 888,513.58$ REG. PAYROLL
City 251,314.73$ -$ 233, 209.96$ -$ 484, 524.69$ -$ 4, 959,710.97$ 4, 413,954.44$ Housing Authority 183.24$ -$ 170. 09$ -$ 353. 33$ -$ 1, 326.48$ 4, 231.69$ Water 112,443.48$ -$ 107, 086.06$ -$ 219, 529.54$ -$ 2, 174,289.39$ 2, 082,938.99$ PAYROLL TOTAL 363,941.45$ -$ 340, 466.11$ -$ 704, 407.56$ -$ 7, 135,326.84$ 6, 501,125.12$ City of Hesperia

WARRANT RUNS
03/26/2022-04/22/2022
* 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: May 17, 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
Jacob Weatherbie, Accountant

SUBJECT: Treasurer’s Cash Report for the unaudited period ended March 31, 2022.

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 Code 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 March 31, 2022.

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
May 17, 2022

FUND VALUE
General Fund (100 & 800) 12,572,217.10$
Fire District Fund (200) 321.00
HFPD (PERS) (210) 2,854,452.28
AB27666 - Transit (254) 23,916.82
AB3229 Supplemental Law (255) 166,863.45
AD No. 91-1 (802) 372,564.58
Beverage Recycling Grant (256) 202,378.99
CFD 2005-1 (807) 1,173,915.36
HFPD Transition (808) 41,076.30
City Wide-Capital Projects (504) (780,032.71)
Community Dev Block Grant (251, 252, & 253) 664,057.43
American Rescue Plan Grant (261) 11,710,108.65
Development Impact Fund (300-304) 5,557,996.62
Development Impact Fund 2018 (306-312) 13,525,267.58
Development Impact Fund A-04 Drainage (313) 6,424.66
Disaster (260) 44,179.35
Gas Tax Fund (205) 786,063.14
Gas Tax - RMRA (209) 1,974,719.30
Gas Tax Swap (206) 778,866.43
Local Transportation SB325 (207) 2,312,113.68
Measure I - Renewal (204) 7,825,437.33
Neighborhood Stabilization Prog (257) 2,887,811.58
Public Works Street Maint (263) 917,989.01
Trust Fund (801, 803-806, & 815) 1,905,721.18
2012 Water Rights Acquisition (402) 1,625,209.31
2013 Refunding Lease Rev Bonds (403) 1,590,071.50
TOTAL CITY FUNDS 70,739,709.92$

CITY OF HESPERIA

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
May 17, 2022

FUND VALUE
RORF Retention - (163) 1,381,147.51$

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

FUND VALUE

Hesperia Housing Authority Fund (370) 3,631,611.06$
VVEDA Housing Authority (371) 1,822,137.48
TOTAL HOUSING AUTHORITY FUNDS 5,453,748.54$

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
May 17, 2022

VALUE
Water Operating (700) 16,468,503.24$
Water Capital (701) (6,326,704.15)
Water Capital Rehab and Replace (703) 1,422,412.09
Water Contamination Mitigation (704) 1,917,287.72
Sewer Operating (710) 14,185,868.43
Sewer Capital (711) 3,450,747.86
Sewer Capital Rehab and Replace (713) 740,998.09
Reclaimed Water Operations (720) (471,169.50)
TOTAL WATER FUNDS 31,387,943.78$
1 WATER
FUND

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT

DATE: May 17, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Justin Mansfield, Information Systems Specialist

SUBJECT: Three-Year Maintenance and Licensing agreement with ECS imaging

RECOMMENDED ACTION

It is recommended that the City Council authorize the City Manager to enter into a three-year contract with ECS imaging (ECS), in the amount of $89,794 plus a 5% contingency amount of $4,490 for a total not-to-exceed contract amount of $94,284, to provide maintenance and licensing for the Electronic Document Management System (Laserfiche).

BACKGROUND

The City has utilized Laserfiche Software for electronic document management services since 2003. These services include the maintenance and licensing of Laserfiche, the City’s electronic records system; scanning of plans, documents, and microfilm; and the creation of online forms and automated workflows.

ISSUES/ANALYSIS

Laserfiche currently hosts historical documents related to the City’s finances, personnel, and building plans. Considering another service provider would involve a lengthy and time intensive effort to migrate from the existing platform. Establishing a new maintenance and licensing agreement will ensure product stability and support for a three-year term. In addition to securing maintenance, the contract amount includes an additional fifty (50) licenses. These licenses will be utilized for the current employment application process and development of future forms.

FISCAL IMPACT

Funding for this agreement will continue to be included in the Information Technology annual operating budget.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None

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City of Hesperia

STAFF REPOR T

DATE: May 17, 2022
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Melinda Sayre, Director of Government Services/City Clerk Jacquelyn Castillo, Administrative Analyst

SUBJECT: Contract with Data Ticket, Inc. for Collection Services

RECOMMENDED ACTION

It is recommended that the City Council authorize the City Manager to execute a three-year sole source contract with Data Ticket, Inc. in a not-to-exceed contract amount of $ 302,250, with an optional extension of two years, for the management and collection of citations, co st recovery, appeals, and hearing officer services.

BACKGROUND

In 2012, the City contracted with Data Ticket, Inc. (Data Ticket) to provide for the management and collection of citations, cost recovery, appeals and hearing officer services. In 2015, the City also re -instituted the use of the special assessment program offered by the County of San Bernardino for collection of outstanding fines. These two programs are used in conjunction to collect fines and fees due from enforcement procedures.

ISSUES/ANALYSIS

From January 1, 2018 through February 28, 2022, collections from Data Ticket have resulted in a total revenue of $ 669,535 from administrative citations, parking citations, DUI fees, and the Police Multiple Response Program, totaling $208,817.

The annual fees incurred by the City for Data Ticket currently average approximately $100,750 per fiscal year, with fluctuations based upon the number of citations written through the various programs and the number of hearings held.

The Data Ticket contract is unique in that the City and Data Ticket have a joint escrow account through which revenue and payments are passed through. Data Ticket collects fines on behalf of the City and each month reconciles the amount due to the City after payment of their fees.

As such, there are budgeted funds each year to pay the Data Ticket invoices.

Staff intends to continue using Data Ticket, Inc. to provide hearing officer services, parking citation processing and processing of citations for the Police Multiple Response Program, Truck Route Program, Off -Highway Vehicle citations, DUI fee collection, Building and Safety Administrative Fines, and special cases in Animal Control and Code Enforcement where collection thr ough means besides the special assessment program is the most appropriate means of collection of fines.

Staff Report to the Mayor and City Council
Contract with Data Ticket, Inc.

May 17, 2022

Parking citation processing must be adjudicated and serviced by an agency able to make inquiries with the Department of Motor Vehicles; Data Ticket h as that authority. Further, unpaid parking citations are recovered through the DMV registration process, which typically occurs on an annual basis.

FISCAL IMPACT

Funding for this contract will continue to be included in the annual operating budget.

ALTERNATIVE(S)

1. Provide alternate direction to staff.

ATTACHMENT(S)

None.

City of Hesperia

STAFF REPORT

DATE: May 17, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Jeremy McDonald, Director of Public Works
Marc Morales, Management Analyst
SUBJECT: Award of Contract for Street Sweeping Services

RECOMMENDED ACTION

It is recommended that the City Council authorize the City Manager to enter into a one-year contract with Guardian Street Sweeping in an amount not-to-exceed $357,585, for street sweeping services.

BACKGROUND

Street sweeping is an essential service that removes trash/debris from the streets and minimizes trash/debris from entering the storm drain system throughout the City of Hesperia . Street sweeping services are performed on a weekly, bi -weekly, and monthly schedule at various locations which include Main Street, Bear Valley Road, I Avenue, E Avenue, Hesperia Road, City facilities, housing tracts, and schools with curb and gutter. In addition, bike lanes throughout the City are swept on a quarterly schedule.

ISSUES/ANALYSIS

To continue to provide street sweeping services for Fiscal Year (FY) 2022-23, the City prepared a formal bid that was released on April 7, 2022 and closed on April 25, 2022. The following two (2) bids were received by the City:

FY 2022-23
Guardian Street
Sweeping

Clean Street
Total Cost $357,584.36 $430,407.76

Upon review of the submitted bids, Guardian Street Sweeping was deemed the lowest responsible/responsive bidder for street sweeping services.

FISCAL IMPACT

Funding will be included in the FY 2022-23 Proposed Operating Budget.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENTS

None.

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City of Hesperia

STAFF REPORT

DATE: May 17, 2022
TO: Mayor and Council Members
Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Jeremy McDonald, Director of Public Works
Marc Morales, Management Analyst
SUBJECT: Award of Contract for Unarmed Security Services

RECOMMENDED ACTION

It is recommended that the City Council and Board of Directors of the Hesperia Water District (District) authorize the City Manager to enter into a one-year contract with Infinity National Security Services, Inc. in an amount not-to-exceed $118,500, for unarmed security services.

BACKGROUND

In previous years, the Civic Center and Mojave Corporate Yard have experienced theft and vandalism prompting the continuing need for unarmed security services. Over the past ten (10) years, unarmed security guard patrols have reduced and/or eliminated the ft and vandalism occurring at both locations and has established a safe environment for staff after normal working hours.

ISSUES/ANALYSIS

The current contract for unarmed security services is set to expire on June 30, 2022 . The City prepared a formal bid that was released on April 7, 2022 and closed on April 25, 2022. The following two (2) bids were received by the City:

FY 2022-23
Infinity National Security
Services, Inc.

Alltech Industries,
Inc.

Total Cost $118,500 $144,276

Upon review of the submitted bids, Infinity National Security Services, Inc. was deemed the lowest responsible/responsive bidder for Unarmed Security Services.

FISCAL IMPACT

Funding will be included in the Fiscal Year 2022-23 Proposed Operating Budget.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENTS

None

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City of Hesperia

STAFF REPORT

DATE: May 17, 2022
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Jamie Carone, Management Analyst

SUBJECT: Townsend Public Affairs Contract Amendment

RECOMMENDED ACTION

It is recommended that the City Council authorize the City Manager to approve an amendment of $55,000 to the existing Professional Services Agreement with Townsend Public Affairs for a revised not-to-exceed contract amount of $530,750, and approve a one-year contract extension for State Legislative Advocacy and State and Federal Funding Advocacy Services.

BACKGROUND

The City has contracted with the state legislative advocacy firm Townsend Public Affairs (TPA) since October 2013. TPA acts as the City’s liaison with the California Legislature, Governor, and agencies of the State government in Sacramento advocating for the City’s position on legislative, regulatory, and programmatic matters of interest. TPA also facilitates meetings with various agencies such as the State Water Resources Control Board, the California Transportation Commission, and the Department of Water Resources to discuss funding opportunities and grant programs that align with the City’s priority projects. TPA will utilize its strong working relationships with the Legislature and State agencies to effectively communicate and advance the City’s priorities and funding needs.

ISSUES/ANALYSIS

The current contract with TPA is set to expire on June 30, 2022. TPA staff has been instrumental during the COVID -19 crisis in providing timely updates on legislation affecting the City a nd legislation affecting businesses and residents that have been impacted by the pandemic.

Additionally, TPA has agreed to hold the current contract pricing for one more year.

FISCAL IMPACT

Funding will be included in the Fiscal Year 2022-23 Proposed Operating Budget.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None

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City of Hesperia

STAFF REPORT

DATE: May 17, 2022
TO: Mayor and Council Members
Chair and Board Members, Hesperia Water District

FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Casey Brooksher, Director of Administrative Services
Rita Perez, Deputy Director of Human Resources

SUBJECT: Memorandum of Understanding between City of Hesperia and Teamsters Local 1932 for the period of February 1, 2022 through January 21, 2024

RECOMMENDED ACTION

It is recommended that the City Council adopt Resolution No. 2022-35 and the Board of Directors of the Hesperia Water District adopt Resolution No . 2022-05, approving the Memorandum of Understanding with Teamsters Local 1932 (Teamsters).

BACKGROUND

The current Memorandum of Understanding (MOU) between City of Hesperia and Teamsters was effective February 1, 2020 through January 31, 2022, and remained in e ffect until a successor MOU was negotiated.

On February 23, 2022, City and Teamsters began the meet and confer process to negotiate a successor MOU. In April 2022, the parties reached a tentative agreement on a successor MOU to cover a two-year period beginning February 1, 2022 through January 31, 2024.

ISSUES/ANALYSIS

The changes to the MOU agreed to by City and Teamsters are as follows:

Article 4: Duration, Implementation and Reopeners
The term of the Teamsters MOU shall be for the duration of February 1, 2022 through January 31, 2024.

Article 13: Salary Ranges
Effective the first full pay period of Fiscal Year 2022-23, all salary ranges reflect in base salary a COLA increas e based on the Consumer Price Index (CPI) – All Urban Consumers (Area:

Riverside-San Bernardino – Ontario) measured by the annualized CPI from January 2021 to January 2022 no less than 3.0% and no more than 4.5%.

Effective the first full pay period of Fiscal Year 2023-24, all salary ranges reflect in base salary a COLA incr ease based on the Consumer Price Index (CPI) – All Urban Consumers (Area:

Staff Report to the City Council, Chair and Board of Hesperia Water District MOU between City and Teamsters Local 1932 for the period February 1, 2022 to January 31, 2024 May 17, 2022

Riverside-San Bernardino – Ontario) measured by the annualized CPI from January 2022 to January 2023 no less than 2.0% and no more than 4.5%.

As an employee retention mechanism, for all bargaining unit members as of the time of ratification (April 18, 2022), the City shall pay the sum of $3,000 to be included in the June, 23, 2022 paycheck. Bargaining unit members must also be employed by the City as of June 23, 2022.

Article 20: Health Insurance
Effective July 1, 2022, for the August 2022 insurance premiums, the City shall pay up to $1,450 per month, with no difference received as cash; the employee shall be responsible for paying the difference, or the amount greater than $1,450 through payroll deduction.

Effective July 1, 2023, for the August 2023 insurance premiums, the City shall pay up to $1, 550 per month, with no difference received as cash; the employee shall be responsible for paying the difference, or the amount greater than $1,550 through payroll deduction.

Other Changes:

 A Performance Evaluation Report shall be required annually.  Employees will have a maximum of 399 hours carry-over of vacation hours per fiscal year.

The vacation buyback program shall be subject to a pre -designation provision whereby employees have the ability to designate annually in October up to 240 hours of leave for the next calendar year.

FISCAL IMPACT

The total projected cost of implementing the Teamsters Union MOU changes in compensation is $872,488. The following table details the anticipated costs for each of the two years.

Year 1 Costs
COLA of 4.5% 268,704$
Medical 48,384
Employee Retention Payment 237,000
Subtotal Year 1 554,088$
Year 2 Costs (approximate)
COLA 280,000$
Medical 38,400
Subtotal Year 1 318,400$
Total Cost 872,488$

ALTERNATIVE(S)

1. Provide alternative direction to staff

ATTACHMENT(S)

Staff Report to the City Council, Chair and Board of Hesperia Water District MOU between City and Teamsters Local 1932 for the period February 1, 2022 to January 31, 2024 May 17, 2022

1. Memorandum of Understanding

2. Resolution No. 2022-35

3. HWD Resolution No. 2022-05

HE060\081\9993262.v2-4/24/22

EXHIBIT A

To Resolutions:

Resolution No. 2022-35 and HWD 2022-05

MEMORANDUM OF UNDERSTANDING

Made and Entered Into Between

The City of Hesperia

and the

Teamsters Local 1932

Effective February 1, 2022 through January 31, 2024

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

HE060\081\9993262.v2-4/24/22

TABLE OF CONTENTS PAGE

Foreword ……………………………………………………………….…….….. 4
Preamble ……………………………………………………………….…….….. 4

Article

1 General Provisions
Recognition……………………………………………...….….….….

6 Article 2 Classifications..…………………………………………...…..……… 6 Article 3 Implementation...…………………………………..….....…….….… 6 Article 4 Duration and Implementation..………………………………..……. 6 Article 5 City Rights……...……………………………..……………..….……. 7
Article 6 Employee Rights……………..…………………………..…….……. 8
Article 7 Teamsters Local 1932 Rights..…………..………………………… 8 Article 8 Teamsters Local 1932 Membership……..………………………… 9 Article 9 Non-Discrimination Clause………………………………...……….. 10

Article

10 Working Condition
Alternative Work Schedules and Adjusted Workweeks...…….….

12 Article 11 Rest Periods.……………………………………………...….…….... 13 Article 12 Late Starts…………………………….……………………………… 13

Article

13 Compensation
Salary Ranges...……………………………………………………...

15 Article 14 Overtime……………………...……………………...………….……. 16 Article 15 Uniform and Boot Reimbursement...…………….………………… 18 Article 16 Working out of Class..………………..…………….………….……. 19 Article 17 Bilingual Pay………………………………………………….………. 20
Article 18 Tuition Reimbursement/Certification…...…………………….……. 20

Article

19 Benefits
CalPERS Retirement Plan…………………………………….…….

25 Article 20 Health Insurance…………………………………….………….…… 25 Article 21 Dental Insurance...……………………………………………….….. 28 Article 22 Optical Insurance……………………………………….….………... 28 Article 23 Life Insurance………………………………………………….…….. 28
Article 24 IRS 125 Plan……………..……………………………….…………. 28
Article 25 Short Term/Long Term Disability…………………………………... 28 Article 26 Employee Assistance Program………………………….….……… 28 Article 27 Other Deductions…………………………………………………….. 29

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

HE060\081\9993262.v2-4/24/22

TABLE OF CONTENTS
PAGE

Article

28 Leaves of Absence
Holidays…………………………………………….……..….……...

31 Article 29 Vacation/Vacation Buy Back………………………………….…... 32 Article 30 Sick Leave/Sick Leave Notification..……………………………… 32 Article 31 Bereavement Leave………………………………………………… 33
Article 32 Worker’s Compensation..…………………………………….……. 33 Article 33 Jury Duty…………………………….………………………….…… 33
Article 34 Leave Without Pay .…………………………..……………….…… 33
Article 35 Catastrophic Leave..………………………………………......…… 34 Article 36 Benefit Amendment Clause……………………………………...… 34

Article

37 Employee/Employer Relations
Employee/Employer Relations …………………………….………

36 Article 38 Promotions and Probationary Period .…………….……………... 36 Article 39 Personnel Files…………………………………………..………..... 36 Article 40 Disciplinary Appeals ……………………………………….………. 36 Article 41 No Strike/No Lockout ……………………………………………… 40
Article 42 Layoffs …………………………………………………….………… 40

Article

43 Other Policies
Outside Employment ……………………………………..…….......

43 Article 44 Smoking ……………………….…………………………………….. 43
Article 45 Prevailing Benefits ..………………………………………………… 43 Article 46 Provisions of Law ………………………………….…………...…... 43 Article 47 Sole and Entire Memorandum of Understanding .………….….... 43 Article 48 Emergency Waiver…………………………………………..….…... 44
Article 49 Waiver ..……………………………………………….……………… 44
Approvals City, Teamsters Local 1932, City Council..………………………... 45

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Foreword

This Memorandum of Understanding is made and entered into between designated management representatives of the City of Hesperia (hereinafter referred to as the "CITY"), and the designated representatives of the Teamsters Local 1932 (hereinafter referred to as "Teamsters Union").

Preamble

It is the purpose of this Memorandum of Understanding (hereinafter referred to as "MOU") to promote and provide for harmonious relations, cooperation, and understanding between the City Management representatives and the general employees covered under this MOU, to provide an orderly and equitable means of resolving any misunderstandings or differences which may arise under this MOU; and to set forth the agreement of the parties reached as a result of good faith negotiations re garding wages, hours, and other terms and conditions of employment of the employees covered under this MOU.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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General Provisions

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 1: Recognition

The City of Hesperia recognizes Teamsters Union as the exclusive majority representative for all classifications in this unit, as set forth below:

Account Clerk Registered Veterinary Technician
Animal Control Officer Senior Account Clerk
Animal Care Technician Senior Animal Control Technician Building Inspector Senior Animal Control Officer
Code Enforcement Officer Senior Customer Service Representative Community Development Technician Senior Maintenance Worker Custodian Senior Custodian
Customer Service Representative Senior Maintenance Worker/Water Engineering Aide Senior Pump Maintenance Worker
Engineering Technician Senior Pump Operator
Equipment Operator Senior Warehouse Technician
Equipment Operator/Water Utility Line Locator
Maintenance Worker Warehouse Technician
Maintenance Worker/Water Water Conservation Specialist
Meter Reader Water Quality Specialist
Pump Maintenance Worker Water Quality Technician
Pump Operator Water Resources Specialist
Receptionist

Article 2: Classifications

The City shall not create a new classification or reclassify Teamsters Union represented employees for the purposes of diminishing Teamsters Union representation. Unless the newly classified position would otherwise be outside of the unit (such as a supervisory, management or professional classification) the newly classified position will remain part of Teamsters Union.

Article 3: Implementation

This MOU constitutes a recommendation to be submitted to the City Council and the membership of Teamsters Union. It is agreed that this MOU shall not be binding upon the parties either in whole or in part unless and until the City Council acts, by majority vote, formally to approve and adopt said MOU and the membership of Teamsters Union approves the MOU.

Article 4: Duration, Implementation and Re-openers

This MOU shall, upon ratification by both parties, become effective February 1, 2022 and remain in full force and effect up to and including January 31, 2024. However, if a successor MOU is not negotiated by January 31, 2024, this MOU shall remain in force until a successor MOU is negotiated or the impasse process for a successor MOU has been concluded.

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February 1, 2022 through January 31, 2024

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Article 5: City Rights

The City reserves, retains and is vested with, solely and exclusively, all rights of management which are not expressly abridged by law to manage the City. The City may exercise its management rights unilaterally without the obligation to meet and confer on the decision to exercise such rights.

The sole and exclusive rights of management shall include, but not be limited to, the following:

(a) To manage the City generally and to determine all issues of policy; (b) To determine the existence or nonexistence of facts which are the basis of management decisions;
(c) To determine the necessity of organization of any service or activity conducted by the City and expand or diminish such services;
(d) To determine the nature, manner, means and technology and extent of services to be provided to the public;
(e) To determine methods of financing;
(f) To select types of equipment or technology to be used; (g) To determine and/or change the facility, methods, technological means, and size of the workforce by which City operations are to be conducted; (h) To determine and change the number of loca tions, relocation and type of operations, processes and materials to be used in carrying out all City functions including, but not limited to, the right to contract or subcontract any work or operation of the City; (i) To assign work to and schedule employees in accordance with requirements as determined by the City and to establish and change work schedules and assignments upon reasonable notice and in accordance with City Personnel Rules and the memoranda of understanding; (j) To relieve employees from duties for lack of work, funds, or similar non-disciplinary reasons; (k) To determine and modify productivity and performance programs and standards; (l) To discharge, suspend, demote or otherwise discipline employees for proper cause; (m) To determine job classifications and t o reclassify employees in accordance with City Personnel Rules and applicable resolutions and ordinances of the City; (n) To hire, transfer, promote and demote employees for non -disciplinary reasons in accordance with City Personnel Rules and applicable ordina nces and resolutions of the City;
(o) To determine and administer policies, procedures and standards for selection, training and promotion of employees in accordance with City Personnel Rules and applicable resolutions and ordinances of the City;
(p) To establish employee performance standards including, but not limited to, qualification and quantity standards and to require compliance therewith; (q) To take any and all necessary action to carry out the functions of the City in emergencies.

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February 1, 2022 through January 31, 2024

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Article 6: Employee Rights

A. Employees of the City shall have the right to form, join and participate in the activities of Teamsters Union for the purpose of representation on all matters of Employer -Employee Relations, including but not limited to, wages, hours, and other terms and conditions of employment. Employees of the City also shall have the right to refuse to join or participate in the activities of employee organizations, but will be required to pay a service fee, or hold conscientious objection status, pursuant to Article 8 herein, if they do not become Teamsters Union members.

B. No employee shall be interfered with, intimidated, restrained, coerced, or discriminated against by the City, Teamsters Union, or other employee organization(s) because of the exercise of his/her rights under this Article.

C. The City shall afford employees the procedural due process safeguards as set out i n the Personnel Rules and Regulations and this MOU. An employee shall have right of Teamsters Union representation when the employee reasonably anticipates that such a meeting is for the purpose of disciplining the employee or is to obtain facts to support disciplinary action.

Article 7: Teamsters Local 1932 Rights

A. The City recognizes the rights of Teamsters Union to govern its internal affairs.

B. The City agrees to include a Teamsters Union "Information Packet" in the orientation packet for newly hired employees in positions represented by Teamsters Union. The City and Teamsters Union agree that the purpose of the "Information Packet" is to familiarize new employees with the operations and benefits of Teamsters Union. All costs associated with preparing the "Information Packet" shall be borne by Teamsters Union. Teamsters Union agrees to indemnify and hold the City harmless for any disputes between employees represented by Teamsters Union and Teamsters Union arising out of information cont ained in the "Information Packet." Prior to distribution, the "Information Packet" must be approved by the City. Teamsters Local 1932 representatives shall be notified at least 10 days prior, or as soon as is practical, to participate in a new employee or ientation on City time for the sole purpose of providing information regarding Teamsters Local 1932 membership. This participation shall be mandatory and without the presence of the City or its representatives, and shall be for 30 minutes during New Employee Orientation.

C. The City will furnish a reasonable portion of existing bulletin board space or allow Teamsters Union to install a bulletin board for notices of Teamsters Union. Only areas designated by the appointing authority may be used for posting of notices. Posted notices shall not be obscene, defamatory, or of a political nature nor shall they pertain to public issues which do not involve the City or its relations with City employees. All notices to be posted must be dated and signed by an authorized representative of Teamsters Union, with a copy to be s ubmitted to the City Manager. City equipment, materials, or supplies shall not be used for the preparation, reproduction, or distribution of notices, nor shall such notices be prepared by City employees during their regular work time.

D. The City agrees to provide Teamsters Union with a quarterly listing of names, departments, classifications, and addresses of employees in classifications represented by Teamsters Union.

Names, departments, classifications, and addresses provided will reflect the most current data on file with the Management Services Department, Human Resources/Risk Management Division, as of the date the list is prepared. These quarterly listings will identify separated and new hire employees separately.

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Article 7: Teamsters Local 1932 Rights (continued)
Within one week of starting work, the Human Resources/Risk Management Division will notify a Teamsters Union designated representative at City Hall of the name, job title, and department of each new hire. This will allow a Teamsters Union representative to contact the new employee and offer to meet with them during a break, lunchtime, before or afte r work, to answer any questions the new employee may have about Teamsters Union membership and benefits.

E. The parties recognize and agree that in order to maintain good employee relations, it is necessary for representatives of Teamsters Union to confer with City employees during working hours. Teamsters Union shall provide and maintain with the City a current list of the names of all authorized representatives of the Teamsters Union. An authorized representative shall not enter any work location without the consent of the Department Head or his/her designee or the City Manager or his/her designee. The Department Head or his/her designee shall have the right to make arrangements for a contact location removed from the work area of the employee.

Management shall not unreasonably deny access.

F. Teamsters Union will be granted permission to use City facilities for the purpose of meeting with employees to conduct its internal affairs provided space for such meetings can be made available without interfering with City needs. Permission to use City facilities must be obtained by Teamsters Union from the appropriate appointing authority. Teamsters Union shall be held fully responsible for any damages to and the security of any City facilities that are used by Teamsters Union. No City vehicles, equipment, time or su pplies may be used in connection with any activity of Teamsters Union, except as may be otherwise provided in this Agreement.

G. The City agrees to allow City time for Teamsters Union employee representative meetings, if they do not disrupt City operations. The employee representative meetings will be every other month for one hour around lunchtime, so travel time is minimized. There are approximately seven employee representatives related to City Department/Divisions. Supervisors must be informed at least three days before the meetings, and if City operations will be disrupted, the employee representative meeting needs to be rescheduled.

Article 8: Teamsters Local 1932 Membership

Each fiscal year, Teamsters Union shall inform the City in writing of the membership dues per month (prorated from the date an employee joins the Teamsters Union ). Employees may authorize the deduction of the dues from payroll, or may pay the amounts directly to Teamsters Union.

Dues withheld by the City shall be transmi tted to the Teamsters Union Officer designated in writing by Teamsters Union as the person authorized to receive such funds, at the address specified.

The City shall not be obligated to put into effect any new, changed or discontinued deduction until a Teamsters Union certifies that it has in its possession a valid dues authorization card, and such certification is submitted to the Management Services Department in sufficient time to permit normal processing of the change or deduction.

Teamsters Union shall be fully responsible for expending funds received under this Article consistent with all legal requirements for expenditures of employee dues, which are applicable to public sector labor organizations.

Teamsters Union hereby agrees to defend, indemnify and hold harmless the City and its officers and employees from any claim, loss, liability, or cause of action of any nature whatsoever arising out of the operation of this Article.

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Article 8: Teamsters Local 1932 Membership (continued)

Teamsters Union’s indemnity and liability obligation is more fully set forth as follows:

Teamsters Union shall defend, indemnify and hold harmless the City and its officers and employees from any claim, loss, liability, cause of action or administrative proceeding arising out of the operation of this Article. Upon commencement of such legal action, administrative proceeding or cla im, Teamsters Union shall have the right to decide and determine whether any claim, administrative proceeding, liability, suit, or judgment made or brought against the City or its officers and employees because of any application of this Article shall not be compromised, resisted, defended, tried, or appealed. Any such decision on the part of Teamsters Union shall not diminish Teamsters Union’s defense and/or indemnification obligations under this Agreement.

The City, immediately upon receipt of notice o f such claim, proceeding or legal action shall inform Teamsters Union of such action, provide Teamsters Union with all information, documents and assistance necessary for Teamsters Union defense or settlement of such action, and fully cooperate with Teamsters Union in providing all necessary employee witnesses and assistance necessary for said defense. The cost of any such assistance shall be paid by Teamsters Union.

Teamsters Union, upon its compromise or settlement of such action or matter, shall immedi ately pay the parties to such action all sums due under such settlement or compromise. Teamsters Union, upon final order and judgment of a court of competent jurisdiction awarding damages or costs to any employee, shall pay all sums owing under such order and judgment.

Article 9: Non-Discrimination Clause

No person shall in any way be favored or discriminated against, by either the City or Teamsters Union to the extent prohibited by law because of political opinion or affiliation, race, color, religion, sex, sexual orientation, marital status, age, national origin, veteran status, medical condition, or physical or mental disability or other protected classifications. This affects decisions including, but not limited to, an employee's compensati on, benefits, terms and conditions of employment, opportunities for promotion, training and development, transfer and other privileges of employment.

The City is committed to providing ongoing training to all employees on the subjects of equal employment, non-discrimination and cultural awareness.

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February 1, 2022 through January 31, 2024

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Working Conditions

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February 1, 2022 through January 31, 2024

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Article 10: Alternative Work Schedules and Adjusted Workweeks

A. Alternative Work Schedules

The City instituted a 9/80 workweek effective January 1996.

Employees may switch to a 4/10 workweek on a seasonal basis and for temporary periods of time to meet particular work needs. At the end of such periods, the employees shall revert to a 9/80 schedule.

The City and Teamsters Union for purposes of implementing an alternate workweek schedule without the City incurring any increased costs or the employees receiving any increase in benefits, the following shall apply:

1. General Agreement - Whenever any oral or written practice, procedure, or policy p rovides employee economic benefits in terms of days, all such provisions shall be converted to provide such economic benefits in terms of hours and any such practice, procedure, or policy which previously was phrased in terms of days is hereby converted to eight hours for each day.

2. Workweek – The following shall amend Rule XI, paragraph 1, subparagraph 1 of the Personnel Rules, for the purposes of the employees represented by Teamsters Union. The workweek for employees assigned to an alternate workweek shall begin and end as follows:

a. For employees assigned to work four (4) days per week, ten (10) hours per day (the "4/10"), their workweek shall begin at 12:01 a.m. each Monday morning and end the following Sunday night at 12:00 p.m. midnight.

b. For employees assigned to work four (4) days per week, nine (9) hours per day and eight (8) hours every other Friday, with the alternating Friday off (the "9/80"), the workweek shall begin each Friday afternoon at 12:01 p.m. and end the following Friday morning at 12:00 p.m. noon.

3. Holidays - On the 9/80 alternate workweek, paid holidays will be at nine (9) hours for holidays falling Monday - Thursday, and eight (8) hours if falling on Friday. Section 3, subdivision 1, Rule VI, of the Personnel Rules and Regulations will now read as follows:

a. Any other employee benefit expressed in terms of days earned, not specifically mentioned above, is hereby amended to provide eight (8) hours accrued benefit in lieu.

Effective March 17, 2018, paid holidays will be paid at the same number of hours of the employee approved alternate work schedule. For example, employees working a 4/10 schedule: paid holiday will be at (10) hours per holiday.

4. Modified 9/80 Work Schedule (New Subsection added per Resolution 2005-160 and HWD 2005-24 approved December 7, 2005) – The City desires to develop a Modified 9/80 Work Schedule to have certain City programs open to the public on alternative or normally closed Friday’s starting in 2006. City management is developing a plan an d evaluating resource needs to have certain City programs open to the public on alternative or normally closed Fridays. The longer term goal of the City is to have all City programs, some on a limited basis, open to the public on alternative or normally closed Friday’s. The Teamsters Union has agreed to cooperate with City management on voluntarily assigning Teamsters Union represented employees to work the alternative or normally Closed Fridays to improve customer service for the public and not increase overtime costs. While this is not a binding provision, it is a clear agreement by the Teamsters Union and City management to cooperate to serve the public’s interest.

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Article 10: Alternative Work Schedules and Adjusted Workweeks (continued)

B. Adjusted Workweeks for existing Teamsters Union employees in the following classifications:

1. Senior Animal Control Officers and Animal Control Officers – Management is authorized to change normal work schedules for Senior Animal Control Officers and Animal Control Officers to include closed Fridays and Saturdays to serve the customer service needs of the City and save overtime costs. Reasonable notice of two weeks must be provided unless the normal work schedule change is mutually agreed to by the supervisor and employee.

C. New and Promoted Employees’ Adjusted Workweeks (Revised language added per Resolution No. 2005-160 and HWD 2005 -24 approved December 7, 2005) – New employees hired and existing employees promoted after MOU approved by the City Council who have been informed at the time of employment that management has the authority to adjust their workweek can have the workweek scheduled as follows:

1. Adjust new employees and promoted employee’ normal work schedule during a workweek, with time off on an hour-for-hour basis in lieu of overtime during the same workweek.

2. Management is authorized to change normal work schedules for new employees’ and promoted employees’ to include closed Fridays, Saturdays, and potentially Sundays to serve the customer service needs of the City and save overtime costs. Reasonable notice of two weeks must be provided unless the normal work schedule change is mutually agreed to by the supervisor and employee.

Article 11: Rest Periods

All Teamsters Union represented employees shall rece ive, at the direction of the respective department, two (2) fifteen (15) minute rest periods, one each approximately at the mid -point of each one-half shift. Employees working in the field shall take, at the direction of the department, rest periods at or nearby the work site or return to their department for rest. For employees working in the field, the 15-minute rest periods include travel time employees may take from the work site to and from the department. Rest time is not cumulative beyond the half scheduled workday within which the break period occurs.

Article 12: Late Starts

An employee who is tardy to work shall be docked pay at the discretion of the Department Head.

Such docking shall be done in fifteen (15) minute increments. An employee may not substitute accrued compensatory time, vacation, holiday, or sick leave for the docked pay, nor may the employee utilize a shortened break period or lunch period.

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February 1, 2022 through January 31, 2024

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Compensation

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February 1, 2022 through January 31, 2024

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Article 13: Salary Ranges

A. Effective the first full pay period of Fiscal Year 2018-19, all salary ranges reflect in base salary a COLA increase based on the Consumer Price Index (CPI) – All Urban Consumers (Area:

Los Angeles–Riverside-Orange County now called Los Angeles -Long Beach-Anaheim) by the annualized CPI from February 2017 to February 2018 no less than 2.5% and no more than 5%.

B. Effective the first full pay period of Fiscal Year 2019-20, all salary ranges reflect in base salary a COLA increase based on the Consumer Price Index (CPI) – All Urban Consumers (Area:

Riverside-San Bernardino-Ontario) measured by the annualized CPI from February 2018 to February 2019 no less than 2.5% and no more than 5%. On January 10, 2019, the City and Teamsters entered into a side agreement amending the above language as follows: Effective the first full pay period of Fiscal Year 2019-20, all salary ranges reflect in base salary a COLA increase based on the Consumer Price Index (CPI) – All Urban Consumers (Area: Riverside- San Bernardino-Ontario) measured by the annualized CPI from January 2018 to January 2019 no less than 2.5% and no more than 5%.

C. Effective the first full pay period of Fiscal Year 2020-21, all salary ranges reflect in base salary a COLA increase based on the Consumer Price Index (CPI) – All Urban Consumers (Area:

Riverside-San Bernardino-Ontario) measured by the annualized CPI from January 2019 to January 2020 no less than 3.0% and no more than 4.5%.

D. Effective the first full pay period of Fiscal Year 2021-22, all salary ranges reflect in base salary a COLA increase based on the Consumer Price Index (CPI) – All Urban Consumers (Area:

Riverside-San Bernardino-Ontario) measured by the annualized CPI from January 2020 to January 2021 no less than 2.0% and no more than 4.5%.

E. Effective the first full pay period of Fiscal Year 2020-21, City agrees to implement the results of the salary study, so long as the City’s Sales and Use Tax for FY 2020-21 increases by 2% or more. If the Sales and Use Tax does not increase for FY 2020 -21 by 2% or more, then effective the first full pay period of Fiscal Year 2021-22, City agrees to implement the results of the salary study, so long as the City’s Sales and Use Tax for FY 2021-22 increase by 2 % or more.

Should the Sales and Use Tax incre ase by 2% or more, the following classifications will increase:

Position Range
Change
Building Inspector +1.0
Code Enforcement Officer +1.0
Senior Pump Maintenance Worker +0.5
Senior Pump Operator +0.5
Water Quality Specialist +0.5
Engineering Technician +1.5
Equipment Operator/Water +0.5
Equipment Operator +0.5
Pump Operator +0.5
Water Quality Technician +0.5

Employees currently in the classification on the effective day of the change will be placed at the new range at their current step.

F. Effective the first full pay period of Fiscal Year 2022-23, all salary ranges reflect in base salary a COLA increase based on the Consumer Price Index (CPI) – All Urban Consumers (Area:

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Riverside-San Bernardino-Ontario) measured by the annualized CPI from January 2021 to January 2022 no less than 3.0% and no more than 4.5%.

G. Effective the first full pay period of Fiscal Year 2023-24, all salary ranges reflect in base salary a COLA increase based on the Consumer Price Index (CPI) – All Urban Consumers (Area:

Riverside-San Bernardino-Ontario) measured by the annualized CPI from January 2022 to January 2023 no less than 2.0% and no more than 4.5%.

H. For all bargaining unit members as of the time of ratification (April 18, 2022), the City shall pay the sum of $3,000 to be included in the final paycheck of the fiscal year, issued on June 23, 2022. Bargaining unit members must also be employed by the City as of June 23, 2022.

Article 14: Overtime

A. Overtime Calculation

All employees required to perform in excess of forty (40) hours in a seven (7) day cycle or in excess of their regularly scheduled work day, shall receive compensation at the rate of time and one-half his/her regular rate of pay.

In determining an employee's eligibility for overtime, the below listed paid leaves of absences shall be included in the total hours worked. Excluded are duty-free lunches, travel time to and from work, and time spent conducting bona fide volunteer activities. Paid leave of abse nce includes the following:
 Holiday Leave
 Jury Duty
 Bereavement Leave

Effective March 17, 2018, the following will also be included in paid leave of absence:
 Pre-approved (minimum 1 week notice) sick leave
 Pre-approved (minimum 1 week notice) vacation leave

There shall be no pyramiding of overtime. Hours worked by an employee in any workday or workweek on which premium rates have once been allowed shall not be used again in any other overtime calculation other than computing total actual hours worked.

Time worked shall be computed by rounding the nearest quarter of an hour.

B. Compensatory Time

In lieu of receiving overtime pay pursuant to this article, Section A above, an employee may elect to receive compensatory time off on a time and one-half basis. No employee shall accrue more than forty (40) hours of such compensatory time. Should any employee exceed forty (40) hours of accrued compensatory time, he/she shall be paid at time and one-half his/her regular rate for all hours in excess of forty (40) hours

Effective March 17, 2018, no employee shall accrue more than eighty (80) hours of such compensatory time. Should any employee exceed eighty (80) hours of accrued compensatory time, he/she shall be paid at time and one -half his/her regular rate for all hours in excess of eighty (80) hours

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An employee may use such compensatory time within a r easonable period after making the request if the use of compensatory time does not unduly disrupt the operations of the department.

On June 30th of each year, all employees accrued compensatory time shall be paid down to zero.

C. Overtime Authorization

All overtime requests must have the prior authorization of a supervisor prior to the commencement of such overtime work. Where prior written authorization is not feasible, explicit verbal authorization must be obtained. Calls for service beyond the end of t he duty time are considered as authorized.

An employee's failure to obtain prior approval may result in the denial of the overtime request.

D. Clothes Changing

Employees are not authorized to wear their uniforms or any part thereof that is distinguishable as such unless on duty.

Nothing herein prevents an employee from wearing his/her uniform to and/or from his/her residence to work.

Nothing herein prevents an employee from wearing his/her uniform while conducting personal business during lunchtime.

Time spent in changing clothes before or after a shift, is not considered hours worked and is not compensable in any manner whatsoever.

E. Training Time

Training time outside normally scheduled work hours shall be compensated pursuant to Code of Federal Regulations (CFR), Section 785.27, et. Seq.

Travel time outside normally scheduled work hours shall be compensated pursuant to CFR Section 785.33, et. Seq. When feasible, the Department will adjust the employee's work schedule to minimize the impact of travel and training time.

F. City Vehicle Use

Employees who are provided with a City vehicle to travel to and from work shall not be compensated in any manner whatsoever for such travel time in the City vehicle.

This provision also applies in those situations where the radio must be left on and monitored.

G. Call Back Pay

Call back duty occurs when an employee is ordered to return to duty on a non -regularly scheduled work shift. Call back does not occur when an employee is held over from his/her prior shift or is scheduled a minimum of ten (10) hours in advance to work prior to his/her regularly scheduled shift. An employee is called back to duty commencing at the time he/she receives the call/page and is compensated as follows:

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Credit for two hours worked is received. If during the first hour of the call out a second or more call outs are received, he/she will still receive credit for the two hours worked or more hours based on actual time worked.

After the first hour, if he/she has completed the work relate d to the call out(s) and returned home and receives a new call out, he/she will again receive credit for two hours worked (a new call out) and the same first hour provisions apply.

Any employee called back after midnight shall be allowed to have his/her shift for the next day reduced by the number of hours spent on call back. The reduction of hours shall be either at the start or the end of the regular shift, with the approval of the employee’s supervisor.

H. Court Pay

When an employee is physically called to court on behalf of the City, while off duty, he/she shall be credited on an hour for hour basis for the time actually spent in court. An employee shall be credited with a minimum of two (2) hours for the court appearance. Travel time shall not be considered hours worked and shall not be compensated in any manner whatsoever.

I. Standby Pay

Teamsters Union represented employees required to standby, to handle overtime work, which may arise, shall be compensated at the rate of two hundred dollars ($200) per seven (7) day period.

Standby status is defined as time in which an employee can be reached at his/her residence or by cell phone/pagers and be able to respond in thirty (30) minutes.

Standby time is considered special pay under the Fair Labor Standards Act (FLSA). This payment is being made pursuant to the MOU. Time compensated in this manner shall not constitute hours worked for purpose of FLSA; however, standby pay will be included into the overtime calculation should overtime be earned during the work week.

Article 15: Uniforms and Boot Reimbursement

Affected employees will receive eleven (11) sets of uniforms owned or rented by the City. The City will pay for the cleaning of these uniforms.

In accordance with CalPERS regulations, any “Classic” employee required to wear a full uniform that is rented and maintained by a uniform vendor through a contract with the City shall have the monetary value of the City-provided uniforms reported to CalPERS as special compensation. The monetary value is based on the pricing for the rental and maintaining (i.e. laundering) the eleven (11) sets of uniforms provided to each employee. The current monetary value that will be reported bi-weekly to CalPERS is $10.70; however, should a new contract between the City and a uniform vendor be approved, which results in a change to the monetary value, the new amount will be reported to CalPERS. The pricing will be specified in the contract between the City and the uniform vendor and will be adjusted accordingly when a change in the cost of renting and maintaining (i.e. laundering) of uniforms occurs. The uniform vendor contract will remain on file with the City Clerk’s office and is selected via a formal bid process.

In accordance with CalPERS PEPRA regulations, any “New Member” employees required to wear a full uniform that is rented and maintained by a uniform vendor through a contract with the City shall not have the monetary value of the City -provided uniforms reported to CalPE RS as special compensation.

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In addition, each affected employee will be allowed reimbursement of up to $250 for boot purchases made during each fiscal year. A second pair of boots may be reimbursed in a fiscal year with the supervisor’s approval prior to the purchase. Affected employees must purchase boots which meet applicable requirements and specifications as set forth in the American National Standard for Personal Protection-Protective Boot Wear, Z41, 1991, and must purchase the boots at a City - approved store if the employee wants the store to bill the City directly.

Any portion of this reimbursement which is not used to purchase boots may be used to purchase boot accessories such as laces and inserts. Reimbursement for these expenses shall occur at the same time reimbursement occurs for boot purchases and the total shall not exceed $250.

Article 16: Working Out of Classification

Employees who meet the following criteria shall be paid at the first step in the salary range for the position in which they are working out of classification, which gives them an increase of at least 5% in base salary:

1. The position is vacant or the incumbent is temporarily absent.

2. The position has a higher top salary step than their current position.

3. They are assigned to perform all of the essential functions of the higher classification.

4. They meet the minimum education and experience requirements for such position, as determined by management.

5. Their service in the higher paid classification exceeds 80 consecutive hours. In such case, the higher salary rate payable shall commence on the 81st consecutive working hour.

6. The appointment to perform this work has been approved by the City Manager following recommendation by the Department Head.

7. The need for such an assignment is temporary in nature, generally for one of the following reasons:
a. A higher classification employee is on a leave of absence, medical leave, or other non - routine circumstance.
b. Short-term assignments, special projects, or specific purpose and/or programs that will terminate in no more than one year.
c. A higher classification position is vacant.

Such assignments shall not exceed one year in duration. The City will follow the guidelines and rules as established by the California Public Employee Retirement System (CalPERS) law when reporting earnings for working out of class assignments.

1. When a higher classifi cation position is vacant, no more than 960 hours of reportable earnings from the higher classification will be reported for Classic members working out of class.

2. When a higher classification employee is on a leave of absence; the Classic members will have all reportable earnings reported to CalPERS when working out of class.

3. PEPRA members will not have any earnings reported to CalPERS when working in an out of class assignment.

The employee approved to receive out of class pay shall be eligible to receiv e merit increases in his/her regular position during the out of class pay assignment.

When the out of class pay assignment is ended, the employee will receive his/her original salary rate.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 17: Bilingual Pay

The City compensate s designated employees who provide translation to and from a foreign language and related services. Department heads will recommend which classifications and employees to be considered for bilingual pay, and the City Manager will approve assignment recommendations based on the customer services needs of the City. Eligible employees will be required to pass a test that shall be administered by a qualified agency or individual. Employees who pass the test and are assigned to provide bilingual translation ser vices will receive $75 per month as compensation. Effective July 1, 2018, employees who pass the test and are assigned to provide bilingual translation services will receive $100 per month as compensation. If the employee is reassigned to no longer provid e bilingual translation services, the bilingual pay will be discontinued and will not be paid in the following month. It should be noted that regardless of whether or not an employee is receiving bilingual pay, all employees having bilingual capability shall be expected to reasonably respond to non-English inquiries directed to them in their capacity as a City employee.

Article 18: Tuition Reimbursement/Certification

A. Tuition Reimbursement – The City shall provide all Teamsters Union represented employees a maximum of $3,000 reimbursement per fiscal year per employee under the existing Tuition Reimbursement Policy. The City reserves the right to revise this policy, as needed other than changing the maximum annual reimbursement amount.

B. Certification (Water District – Water and Sewer)

1. Requirements and expense reimbursement
a. Whenever the City or a State or Federal Agency determines that a position is required to obtain a specialized license or certificate, the City shall reimburse the cost for such certification courses or license when the employee presents proof of payment.

b. The City shall likewise reimburse the cost for other certifications or special credentials that are determined by the City Manager or his/her designee to be related to the employee’s job duties.

c. The certification requirements shall be as follows for employees in the following classifications assigned to the Water Division:
 D-1
o Maintenance Worker
o Meter Reader
o Utility Line Locator
 D-2
o Pump Maintenance Worker
o Pump Operator
o Water Quality Technician
o Equipment Operator
 D-3
o Senior Maintenance Worker
o Senior Pump Maintenance Worker
o Senior Pump Operator

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 18: Tuition Reimbursement/Certification (continued)

 T-1
o Pump Maintenance Worker
o Pump Operator
o Senior Maintenance Worker assigned to Water
o Senior Pump Maintenance Worker
o Senior Pump Operator
o Water Quality Technician

d. “D-1” is a Water Distribution Operator Certificate, Grade 1; “D-2” is Water Distribution Operator Certificate, Grade 2; and “D-3” is a Water Distribution Operator Certificate, Grade 3. A “T -1” is a Water Treatment Operator Certificate, Grade 1. Each of the above is issued by the State of California.

e. All employees in the classifications requiring a “D-1” certificate who do not hold such certificate as of the effective date of this MOU and were not required to possess such certification prior to the completion of probation as part of their employment, will be required to have such certification no later than January 1, 2007. Such employees may be given u p to one additional year following completion of probation to obtain their “D-1” certification, subject to recommendation by their Department Head and approval by the City Manager.

f. All employees in the above classifications requiring a “D -2” or “D-3” certificate hold such certification as of the effective date of this MOU. They shall be required to maintain such certification as long as it is a requirement in their class specification.

g. Additional certifications required by the City include:

1. Water Quality Technician
 Backflow Prevention Device Tester (AWWA)
 Backflow Prevention Device Tester (San Bernardino County Department of Public Health)
 Cross Connection Control Program Specialist (AWWA)

2. Maintenance Worker assigned to Wastewater – Collection System Maintenance Grade I

3. Senior Maintenance Worker assigned to Wastewater - Collection System Maintenance Grade II
h. The Water Quality Technician and Senior Maintenance Worker have the required additional certifications as of the effective date of this MOU. They shall be required to maintain such certification as long as it is a requirement in their class specification. i. Employees in the classifications requiring a “T-1” certificate who have such certificate as of the effective date of this MOU shall be required to maintain such certification as long as it is a requirement in their class specification. All employees in the classifications requiring a “T-1” certificate who do not hold such certificate as of the effective date of this MOU, will be required to have such certification no later than January 1, 2007.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 18: Tuition Reimbursement/Certification (continued)

j. All new hires or transfers into the Water Division will be required to meet the certification requirements as defined in their class specification, unless the certification requirements are temporarily suspended as recommended by their Department Head and approved by the City Manager (Note written agreement for new hires or transfers will document conditions).

2. Incentive Pay
a. The City shall pay employees who possess required certifications above the “D-1” level an additional 2% of base salary starting on the date such certification becomes valid.

As clarification, a Maintenance Worker who receives a D-2 will receive the 2% incentive pay, and if that same Maintenance Worker is promoted to a Pump Maintenance Worker position, the employee will stop receiving the 2% incentive pay because the Pump Maintenance Worker position requires a D-2. However, if the employee now worki ng as a Pump Maintenance Worker receives a D -3, the 2% incentive pay will again be received.

Incentive pay shall be discontinued for employees possessing certificates that are not required in their class specification.

The above two new sections will replace the current Article 15 in its entirety, including the one-time “Certification Incentive payment of $100 each year and the “Certification Incentive Pay” chart, which is Attachment A of the current MOU.

b. The City shall pay employees who possess required certifications above the Collection System Maintenance Grade l (C -1) or Collection System Maintenance Grade ll (C -2) level an additional 2% of base salary starting on the date such certification becomes valid, however, no earlier than the month after the MOU is approved by the City Council.

Incentive pay shall be discontinued for employees possessing certifications that are not required in their class specification.

C. Animal Control Officer Certification $100 Certification Pay

Animal Control Officers and Senior Animal Control Officers shall receive a one -time “Certification Incentive” payment of $100 each fiscal year for holding the necessary certification to use the equipment and chemicals needed to immobilize animals (Certificate of Completion – Chemical Immobilization for Animal Control Professionals conferred by the California State Humane Association or an equivalent certification and organization acceptable to the City).

The Certification Incentive payment shall be made no later than February 1 each year for those employees who already hold the certification or thirty (30) days after the employee submits the required documentation demonstrating he/she has earned the certification. No employee may earn Certification Incentive pay of more than $1 00 per year, regardless of the number of certifications held or obtained. Teamsters Union and City agree that the fact that an employee is earning Certification Incentive pay cannot be used to assert that the employee is working out of class and is therefore entitled to reclassification.

The employee must maintain the certification for the entire year after the Certification Incentive pay is earned.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 18: Tuition Reimbursement/Certification (continued)

D. Commercial Driver’s License $100 Certification Pay

Employees maintaining a valid Class “A” California Driver’s License, placed on the City’s Department of Transportation Random list for testing and complies with the City’s Drug and Alcohol Testing Program for Commercial Drivers shall rec eive a one -time payment of $100 each fiscal year. This certification payment shall be made on or after February 1 each year for those employees who hold the License as of January 31st. This certification pay will not be considered special compensation and will not be reported to the California Public Employees’ Retirement System.

Teamsters and the City agree that the fact that an employee is earning certification pay cannot be used to assert that the employee is working out of class and is therefore entitled to reclassification.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Benefits

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 19: CalPERS Retirement Plan

The City provides the 2.7% at 55 full retirement formul a, as provided by Government Code § 21354.5.

The City has elected and continues to elect to be subject to the following optional retirement provisions:

a. Section 20042 (One-Year Final Compensation).

b. Section 20903 (Two Years Additional Service Credit).

c. Section 21574 (Fourth Level of 1959 Survivor Benefits ). In addition to funding the employer cost of the survivor benefits, the City shall contribute a maximum of $2.00 per month per employee as and for the member’s contribution for funding of this benefit).

d. Section 21024 (Military Service Credit as Public Service).

Effective the first full pay period after July 1, 2012 the City’s contribution towards the local miscellaneous member’s contribution will be zero percent of reportable earnings, and each local miscellaneous member’s contribution shall be 8% of the individual member’s reportable earnings.

Employees hired by the City on or after January 1, 2013, who qualify as “new members” as that term is defined in the Public Employee Pension Reform Act (AB 340) shall be subject to the Act including but not limited to:

a. 2% at 62 retirement formula

b. Pension benefit is bas ed on the highest annual final compensation during a consecutive 36 month period.

c. PERS contribution of 50% of the PERS “normal cost” as that term is defined in the Act.

In addition to paying the full CalPERS member contribution, each employee covered by the CalPERS 2.7% @ 55 full retirement formula sh all, effective the first full pay period after July 1, 2015, pay one percent of reportable earnings by payroll deduction as cost sharing of the City’s normal costs pursuant to Government Code section 20516 (f).

Article 20: Health Insurance

All employees must enroll in an available City health insurance plan unless they opt out.

1. Health Insurance Provider:

The City will provide a comparable health insurance plan(s) available for all full-time regular employees. The City and Teamsters Local 1932 will negotiate plan changes expeditiously when cost-effective alternatives are available.

2. City Contributions:

Effective June 1, 2017 for the July 1, 2017 premiums, the City contributions are towards premiums for health, dental and vision insurance only.

a. Opt-out of City Health Coverage Contribution:

Employees who opt-out of the City’s health insurance with proof o f alternate group coverage and hired before January 1, 2013 are eligible to receive the difference less

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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the mandatory dental and vision plan selections up to $665. The cash back provision is not available to employees hired on or after January 1, 2013.

In order to opt out, an employee must provide the following: (1) proof that the employee and all individuals for whom the employee intends to claim a personal exemption deduction for the taxable year or years that begin or end in or with the City’s plan year to which the opt out applies (“tax family”), have or will have minimum essential coverage through another source (other than coverage in the individual market, whether or not obtained through Covered California) for the plan year to which the opt out arrangement applies (“opt out period”); and (2) the employee must sign an attestation that the employee and his/her tax family have or will have such minimum essential coverage for the opt out period. An employee must provide the attestation every plan ye ar at open enrollment. The opt -out payment cannot be made and the City will not in fact make payment if the employer knows that the employee or tax family member doesn’t have such alternative coverage, or if the conditions in this paragraph are not otherwise satisfied.

b. Effective July 1, 2018 for the August 2018 insurance premiums, the City shall pay up to $1,013 per month, with no difference received as cash, the employee shall be responsible for paying the difference, or the amount greater than $1,013, through payroll deduction.

c. Effective July 1, 2019, for the August 2019 insurance premiums, the City shall pay up to $1,113 per month, with no difference received as cash, the employee shall be responsible for paying the difference, or the amount greater t han $1,113, through payroll deduction.

d. Effective July 1, 2020, for the August 2020 insurance premiums, the City shall pay up to $1,224 per month, with no difference received as cash, the employee shall be responsible for paying the difference, or the amou nt greater than $1,224, through payroll deduction.

e. Effective July 1, 2021, for the August 2021 insurance premiums, the City shall pay up to $1,324 per month, with no difference received as cash, the employee shall be responsible for paying the difference, or the amount greater than $1,324 through payroll deduction.

f. Effective July 1, 2022, for the August 2022 insurance premiums, the City shall pay up to $1,450 per month, with no difference received as cash, the employee shall be responsible for paying the difference, or the amount greater than $1,450 through payroll deduction.

g. Effective July 1, 2023, for the August 2023 insurance premiums, the City shall pay up to $1,550 per month, with no difference received as cash, the employee shall be responsible for paying the difference, or the amount greater than $1,550 through payroll deduction.

h. Retiree Contribution:

The City shall provide each employee who retires with a $50 per month contribution toward a health care plan selected by the retiree. Said contribution shall terminate upon the retiree’s sixty -fifth (65th) birthday. The City shall provide each employee who retires and is covered under the City’s provided Health Insurance Provider(s) the minimum employer health contribution as required by the provider.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Reopener on ACA:

The City may reopen negotiations on the issue of health insurance benefits or cafeteria plan (including, as to both, but not limited to, plan benefits or structure, City or employee contributions and/or opt out amount or requirements) in order to avoid penalties or taxes under the ACA that may result from an interpretation of the ACA by the Internal Revenue Service or other federal agency (including, but not limited to, a revenue ruling, regulation or other guidance) or a ruling by a co urt of competent jurisdiction.

Affordable Care Act (ACA) Anti-Retaliation

1. Prohibition on Retaliation: It is the City’s policy to comply in full with Section 1558 of the U.S.

Patient Protection and Affordable Care Act (ACA), which prohibits retaliation against employees who report violations of Title I of ACA or who receive tax credits or cost -sharing reductions (under section 36B of the Internal Reven ue Code or section 1402 of ACA) in connection with participation in the health insurance exchange.

2. Protected Activity

a) “Whistleblowing” re Violations of Title I of ACA: ACA protects an employee, former employee, or applicant who reports, testifies (or is about to testify) in a proceeding, assists or participates (or is about to assist or participate) in a proceeding, objects to, or refuses to participate in any activity, policy, practice, or assigned task that the employee (or other person) reasonably believed to be in violation of Title I of ACA, including any order, rule, regulation, standard or ban under Title I of ACA.
b) Title I of ACA includes but is not limited to consumer protections such as the following:
i.Elimination of lifetime and annual limits on benefits by 2014; ii.Prohibition on rescissions of coverage;
iii.Elimination of pre-existing conditions exclusions;
iv.Coverage of preventive services and immunizations;
v.Extension of dependent coverage up to age 26;
vi.Development of uniform coverage documents; and
vii.Implementation of appeals processes for consumers.
c) Receipt of Affordability Assistance: ACA also protects an employee, former employee, or applicant who receives a tax credit under Section 36B of the Internal Reve nue Code or a cost-sharing reduction under Section 1402 of the Act as a result of enrolling in a qualified health plan offered by the health insurance exchange. In California, this state -run marketplace is known as “Covered California.”

3. Prohibited Retaliatory Conduct
Prohibited conduct includes but is not limited to discharge or otherwise retaliatory conduct, including intimidating, restraining, coercing, blacklisting, or disciplining an employee, former employee, or applicant with respect to compensation or any other terms, conditions or privileges of employment as a result of that individual’s participation in a protected activity as defined in paragraph 2 above.

4. Complaint Procedure
Any City employee, former employee, or applicant who wishes to report a violation of Title I of ACA, or who believes he or she has been subject to retaliation in violation of this policy should immediately notify either his or her supervisor, Human Resources staff, or the City Manager. It

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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is the City’s policy that no City employee shall retaliate against any person who participates in a protected activity as defined by Section 1558 of ACA.

An employee, former employee, or applicant who believes that he or she has been retaliated against under this policy may file or have filed by any person on his or her behalf, a complaint with United States Department of Labor, Occupational Safety & Health Administration (OSHA) within 180 days after an alleged violation occurs. For more information on filing an OSHA complaint, visit www.osha.gov.

Article 21: Dental Insurance

The City will provide group dental insurance coverage. Employees are required to enroll in group dental coverage, at the minimum single-party rate. Effective July 1, 2018 for the August Premiums, the City shall pay the employee only coverage of the selected dental plan. If the selected dental plan is higher, then the employee shall be responsible for paying the d ifference. The City and Teamsters Union will negotiate plan changes expeditiously when cost -effective alternatives are available.

Article 22: Optical Insurance

The City shall provide group optical insurance coverage. Employees are required to enroll in group optical coverage at the minimum single-party rate. Effective July 1, 2018 for the August Premiums, the city shall pay the employee only coverage of the vision plan. If the selected vision plan is higher, then the employee shall be responsible for paying the difference. The City and Teamsters Union will negotiate plan changes expeditiously when cost-effective alternatives are available.

Article 23: Life Insurance

The City will provide group life insurance coverage. T he City will pay life insurance premiums for $30,000 life insurance coverage . The City and the Teamsters Union will negotiate plan changes expeditiously when cost-effective alternatives are available.

Article 24: IRS 125 Plan

Effective January 1, 2011, the City’s IRS 125 Plan is available to the Teamsters Union membership, subject to the City's exercise of its sole discretion to change provisions of the plan and/or cease administering and/or to withdraw said Plan.

The City retains sole discretion to determine if and when its administration of the IRS 125 Plan shall change provisions of the Plan and cease and/or if and when it shall withdraw and terminate the IRS 125 Plan described herein. Neither the City's decision to implement, administer, change, cease administration, and/or terminate the IRS 125 Plan, nor the impact of said determinations, shall be subject to the meet and confer process. It is agreed by the parties that the benefit of an IRS 125 Plan is sufficient to provide consideration to Teamsters Union as and for the valid entering into of these provisions.

Article 25: Short Term/Long Term Disability Insurance

The City agrees to provide access to a short term/long term disability insurance policy or coverage.

Employees are required to pay for this short term/long term disability insurance. The City and Teamsters Union will negotiate short term/long term disability insurance plan changes expeditiously when cost-effective alternatives are available.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 26: Employee Assistance Program

The City shall provide an Employee Assistance Program for all full -time continuous salaried employees and dependent coverage.

Article 27: Other Deductions

Insurance premiums sponsored by Teamsters Union shall be withheld by the City and shall be transmitted to the Teamsters Union Officer designated in writing by Teamsters Union as the person authorized to receive such funds, at the address specified on a monthly basis.

The City shall not be obligated to put into effect any new, changed or discontinued insurance premium deduction u ntil a payroll deduction card is submitted to the Management Services Department in sufficient time to permit normal processing of the change or deduction.

Teamsters Union agrees to hold the City harmless and indemnify the City against any claims, causes of actions or lawsuits arising out of the deductions or transmittal of such funds to Teamsters Union, except the intentional failure of the City to transmit to Teamsters Union monies deducted from the employees pursuant to this article.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Leaves of Absence

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 28: Holidays

The City offices shall be closed on the following days. All full-time continuous salaried employees shall be compensated at their regular rate for these days:

1. Independence Day

2. Labor Day

3. Veteran's Day

4. Columbus Day

5. Thanksgiving Day

6. Day after Thanksgiving

7. Christmas Eve

8. Christmas Day

9. New Year's Day

10. Martin Luther King Jr. Day

11. President's Day

12. Memorial Day

Whenever a holiday falls on a Sunday, the following Monday shall be observed as a holiday.

Whenever a holiday falls on a Saturday, the preceding Friday shall be observed.

City facilities will be closed between Christmas Day and New Year’s Day in what was a regular work week. For example, in 2013 the City shall be closed December 26, 27, 30 and 31 and in subsequent years, dates could be different based on the calendar. Each bargaining unit employee shall be paid for those days for the same amount of hours for which the employee would have been regularly scheduled and would have worked if the City were not closed on those dates. Employees may not be eligible for this closure but shall be eligible for overtime if worked.

The floating holiday benefit is eliminated.

For employees to be compensated (vacation or sick leave) for a day off prior to or following a Holiday, the employee must request and have approved the time off prior to the Holiday. If the employee does not have written approval for the absence, the employee must provide the city with a certification of absence from a physician for the absence or the absence will result in a non-paid leave.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 29: Vacation/Vacation Buy Back

All full-time employees shall, with continuous service, accrue working hours of vacation monthly according to the following schedule:

Years of Service Annual Hours Accrued
1 80
2 88
3 96
4 104
5 112
6 120
7-9 128
10 136
11-13 144
14 152
15+ 160

Employees may use up to forty (40) hours of accrued vacation after six (6) months of service.

Employees will have a maximum of 399 hours carry-over of vacation per fiscal year. In June of each calendar year, all vacation hours in excess of 399 hours shall be paid at the employee’s current hourly rate. Should the City question its financial ability to fund this provision in any given year, it shall have until March 31 of that year to meet and confer with Teamsters Local 1932 over the financial impact and discuss possible alternatives.

During the month of October, an employee may elect to convert up to two hundred and forty (240) hours of vacation into cash payment(s) at the base rate of pay in effect at the time of the cash-out, as long as the employee has eighty (80) hours of vacation remaining on the books at the time of the pre-designation. In order to cash-out vacation, an employee must make an irrevocable election (i.e., pre -designation) during the month of October, specifying the total number of hours to be cashed-out from next year’s vacation leave accrual. During the calendar year following the pre - designation, an employ ee may choose increments of vacation to cash -out in March, May and August; the minimum increment for vacation cash-out is twenty (20) hours. If no cash -out occurs during the year and/or any remaining balance of the pre -designated amount will be cashed out in November. If the employee does not have the vacation hours available to satisfy the amount pre- designated for cash-out, the employee will be precluded from making an irrevocable election and cashing out for the following calendar year.

All accrued but unused vacation shall be paid out to the employee upon separation of employment.

Article 30: Sick Leave/Sick Leave Notification

Sick leave will be accrued at the rate of eight (8) hours per month, ninety -six (96) hours per year.

Sick leave can be accrued without limit; however, there will be no buy back nor payoff of accrued but unused sick leave upon termination of employment. Eighteen (18) hours of sick leave per fiscal year may be utilized for personal time as long as the employee has forty (40) hours of sick leave accrued and is requested prior to the use. Effective March 17, 2018, eighteen (18) hours of sick leave may be utilized for personal time as long as the hours are requested prior to use and the employee has a remaining balance of forty (40) hours after use. Personal time hours must be used during the term of this MOU and can be neither cashed out nor carried over into a new year.

If not used during the term of this MOU any remaining personal time hours shall be lost.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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With respect to Teamsters Union represented employees, City Personnel Rules and Regulations, Rule VI, Section 7 (7), shall be amended as follows:

Notification to Supervisor - Any employee needing to be absent because of sickness or other physical disability shall notify the appropriate department manager or immediate supervisor at least one (1) day prior to such absence if circumstances permit, or by the start of shift barring unforeseen circumstances.

Rule VI, Section 9 of the Personnel Rules are revised to provide that the maximum usable benefit shall be forty (40) work hours rather than five (5) days.

Article 31: Bereavement Leave (Revised Article added per Resolution No. 2005-160 and HWD 2005-24 approved December 7, 2005)

The following new MOU language will be effective until such time as the Personnel Rules are amended with the same language and the Article 29 language becomes redundant in the MOU.

Rule VI, Leave, Section 7, Sick Leave, Subsection 8, Bereavement Leave, of the Personnel Rules and Regulations is revised to provide that any eligible employee who is absent from work by reason of a death in their immediate family will be allowed a leave of absence with pay up to five (5) cumulative working days (44 hours) per occurrence or a death of their blood relative, will be allowed a leave of absence with pay up to three (3) cumulative working days (27 hours) per occurrence, effective July 1, 2018. Additional time may be requested by the eligible employee, however, this additional time will be deducted from the employee’s leave accrual, e.g. sick (up to 13 hours); vacation, floating holiday hours.

For the purpose of this article, “immediate family” is defined as employee’s spouse, employee’s parents, employee’s spouse’s p arents, employee’s child, step -child, step -parent, grandparent, grandchild, brother, sister, step -brother, step-sister. “Blood relative” is defined as aunt, uncle, niece, nephew, brother-in-law, sister-in-law, legal guardian, employee’s ex -spouse who is p arent of employee’s children, domestic partner as defined under California Family Code Section 297, and/or any other individual living in the same household as the City employee. The department head and the City Manager shall approve such bereavement leave with their signature.

The Bereavement Leave change will be retroactive to January 1, 2004, with applicable employee’s sick leave hours used to Bereavement Leave restored to their sick leave accrual balance.

Article 32: Workers' Compensation

The City provides certain supplementary Workers' Compensation benefits for temporary disabilities (See Resolution No. 90-36).

Article 33: Jury Duty

Rule VI, Section 3 (1), of the Personnel Rules and Regulations is superseded to provide that employees who are summoned to appear and serve for jury duty shall be entitled to up to eighty (80) hours leave.

Article 34: Leave Without Pay

Rule VI, Section 4 of the Personnel Rules and Regulations is superseded to provide that such maximum leave shall be up to eighty (80) working hours rather than ten (10) working days.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 35: Catastrophic Leave

The City agrees to permit employees within the bargaining unit to contribute a portion of their accrued sick leave to another employee of the bargaining unit when such employee has suffered a catastrophic injury or illness. For such transfer to take place, the following conditions shall apply:

A. The contributing employee must have at least ninety -six (96) hours remaining after such contribution and the sick leave application rate will be based on the contributing employee's dollar value which will be adjusted proportionally to the receiving employee's rate.

B. The receiving employee has been absent from work due to injury or illness and has exhausted all earned leave credits, including but not limited to sick leave, vacation time, compensatory time and holiday credits, and is, therefore, facing financial hardship.

C. The transfers must be a minimum of eight (8) hours and in whole hour increments thereafter.

The transfers are irrevocable, and will be indistinguishable from other sick leave credits belonging to the receiving employee. Transfers will be subject to all taxes required by law.

Eligibility to be a receiving employee in this program is not subject to the Grievance Procedure in the Personnel Rules and Regulations.

Article 36: Benefit Amendment Clause

Any other employee benefit expressed in terms of days earned, not specifically mentioned above, is hereby amended to provide eight (8) hours accrued benefit in lieu of days.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Employee/Employer Relations

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 37: Employer/Employee Relations

The City has an Employer/Employee Relations Resolution, which provides the guidelines for forming recognized Employee Associations. (See Resolution No. 90-37).

Article 38: Promotions and Probationary Period

Effective March 17, 2018, qualified City Teamsters’ members who apply for existing vacancies shall be provided an opportunity to participate in the competitive selection process (1 st round) to be placed on the eligibility list. Teamsters’ members who are among the top three (3) qualifying candidates on the eligibility list will be given an interview by the Department Head.

Any promotion requires a one (1) year probationary period. O nce an employee receives regular full-time status at a position and then is promoted, the employee will not be terminated in the event they are unable to successfully fulfill the requirements of the position promoted to, but will be reassigned to an equiva lent position within the organization in which they served prior to being promoted.

Upon promotion, the employee will receive a minimum of five percent (5%) base salary increase or the beginning of the position classification range, whichever is greater.

Article 39: Personnel Files

The official personnel file shall be located in the Management Services Department. Any documentation used in a disciplinary action (excluding oral reprimands) will be placed in an employee's personnel file.

Employees, during normal working hours at a reasonable time, have the right to have access to and copies of any document in their official personnel file or any departmental file.

An employee will be provided with an initial copy of any document, which will be place d in the official personnel file. An employee shall have the right to respond in writing to any information contained in his/her personnel file. Such a reply will remain in the personnel file so long as the referenced document is in the file.

Written re primands, counseling notices, or notices requiring an employee to have medical verification for absences shall be removed from the personnel file and destroyed after three (3) years provided that there have been no further incidents, within that time, rela ted to that specific reprimand or notice.

Article 40: Disciplinary Appeals

This Advisory Arbitration Provision amends the City Personnel Rules and Regulations, Rule XI, Appeal Procedures, by deleting all current text on Pages 60 and 61 and substituting the following language:

Appeal Procedures:

Any permanent employee in the classified service shall have the right to appeal any termination, suspension of four (4) schedule work days or more, reduction in salary, or non -probationary demotion. The appeal process shall not be applicable to those positions which may be deemed exempt or to probationary employees. The appeal process shall not be applicable to verbal and written reprimands, suspensions of less than four (4) schedule work days, probationary demotions, performance evaluations and denial of merit increases. An employee desiring to appeal the appointing authority's decision shall have ten (10) calendar days after receipt of the response to file an appeal.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 40: Disciplinary Appeals (continued)

The employees request for appeal must be addressed to the Personnel Director and received in the Management Services Department so that same is date stamped by the Management Services Department within the ten (10) day period.

If, within the 10-day appeal period, the employee involved does not file said appeal, unless good cause for failure is shown, the action of the appointing authority shall be considered conclusive and shall take effect as prescribed. If within the ten (10) day appeal period, the employee involved files such notice of appeal by giving written notice of appeal to the Management Services Department, an appeal hearing shall be established as follows:

A. The American Arbitration Association or the State Mediation and Conciliation Servi ce or any other recognized mediation/arbitration service as mutually agreed to shall be requested to submit a list of seven (7) persons qualified to act as hearing officers to the City and the employee. Within ten (10) days following receipt of the list of hearing officers, the parties shall meet to select the hearing officer. The parties shall alternately strike one (1) name from the list of hearing officers (the right to strike the first name to be determined by lots) until one (1) name remains, and that person shall be the hearing officer.

B. Where practicable, the date for a hearing shall not be less than twenty (20) calendar days, nor more than sixty (60) calendar days, from the date of filing of the appeal with the Personnel Director. The parties may stipulate to a longer or shorter period of time in which to hear the appeal. All interested parties shall be notified in writing of the date, time, and place of the hearing.

C. All hearings shall be private provided, however, that the hearing officer shall, at the request of the employee, open the hearing to the public.

D. Subpoenas and subpoenas duces tecums pertaining to a hearing shall be issued at the request of either party, not less than seven (7) calendar days, prior to the commencement of such hearing. After the commencement of such hearing, subpoenas shall be issued only at the discretion of the hearing officers.

E. The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses. Any relevant evidence shall be ad mitted if it is the sort of evidence on which reasonable persons are accustomed to rely in conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper admission of such evidence over objection in c ivil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. The rules of privilege shall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence shall be excluded. The hearing officer shall not be bound by technical rules of evidence.

F. Each party shall have their rights: To be represented by legal counsel or other person of his/her choice; to call and examine witnesses; to introduce evidence; to cross -examine opposing witnesses on any matter relevant to the issues even though that matter was not covered in the direct examination; to impeach any witness regardless of which party first called him/her to testify; and to rebut the evidence against him/her. If the employee does not testify in his/her own behalf, he/she may be called and examined as if under cross-examination. Oral evidence shall be taken only on oath or affirmation. A court reporter will be engaged to record the hearing, unless the parties (City, hearing officer, employee/employee representative) mutually agree that same is not necessary.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 40: Disciplinary Appeals (continued)

G. The hearing shall proceed in the following order, unless the hearing officer, for special reason, otherwise directs:

1. The party imposing discipline shall be permitted to make an opening statement;

2. The appealing party shall then be permitted to make an opening statement;

3. The party imposing disciplinary action shall produce the evidence on his/her part; the City bears the burden of proof and burden of producing evidence;

4. The party appealing from such disciplinary action may then open his/her defense and offer his/her evidence in support thereof; the employee bears the burden of proof and the burden of producing evidence for any affirmative defenses asserted;

5. The parties may then, in order, respectively offer rebutting evidence only, unless the hearing officer for good reason, permits them to offer evidence upon their original case;

6. Closing arguments shall be permitted and written briefs may be permitted at the discretion of the hearing officer.

H. The hearing officer shall determine relevancy, weight, and credibility of testimony and evidence.

He/she shall base his/her findings on the preponderance of evidence. During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing unless the hearing officer, in his/her discretion, for good cause otherwise directs. No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing.

The hearing officer, prior to or during a hearing, may grant a continuance for any reason he/she believes to be important to reaching a fair and proper decision. The hearing officer shall render his/her judgment as soon after the conclusion of the hea ring as possible and in no event later than thirty (30) days after conducting the hearing. His/her decision shall set forth which charges, if any, are sustained and the reasons therefore. The opinion shall set forth findings of fact and conclusions.

I. The hearing officer may recommend sustaining or rejecting any or all of the charges filed against the employee. He/she may recommend sustaining, rejecting, or modifying the disciplinary action invoked against the employee. He/she may not recommend for disc ipline more stringent than that issued by the department head.

The hearing officer's opinion and recommendation shall be filed with the City Manager, with a copy sent to the charged employee, and the Personnel Director and shall set forth his/her findings and recommendations. If it is a dismissal hearing and a dismissal is not the hearing officer's recommendation, the opinion shall set forth the date the employee is recommended to be reinstated and/or other recommended action. The reinstatement date, if appropriate, may be any time on or after the date of disciplinary action.

J. Within thirty (30) days of the receipt of the hearing officer's findings and recommendation, and transcript (which is optional only by the mutual consent of the City and the employe e), whichever date is later, the City Manager, or his/her designee, shall adopt, amend, modify, or reject the recommended findings, conclusions, and/or opinions of the hearing officer. Prior to making a decision, which modifies or rejects the recommendation of the hearing officer, the City Manager, or his/her designee, shall order and read the transcript of the Third Party Advisory Process. Prior to making a decision, which supports the hearing officer, the City Manager, or his/her designee, shall not conduct a de novo hearing. The City Manager, or his/her designee, may, at his/her option, allow limited oral arguments and/or may request and

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 40: Disciplinary Appeals (continued)

review written statements from either side. The decision of the Cit y Manager, or his/her designee, shall be final and conclusive. Copies of the City Manager or his/her designee's, decision, including the hearing officer's recommendation(s) shall be filed where appropriate, including the employee's personnel file, unless no discipline is upheld by the City Manager.

K. The decision of the City Manager, or his/her designee, shall be final and conclusive. Copies of the City Manager's, or his/her designee's, decision, including the hearing officer's recommendation(s) shall be fi led where appropriate, including the employee's personnel file, unless no discipline is upheld by the City Manager, or his/her designee.

L. Each party shall bear equally the cost of facilities, fees and expenses of the hearing officer, including the court reporter and transcripts. Each party shall bear its own witness and attorney fees. If either party unilaterally cancels or postpones a scheduled hearing, thereby resulting in a fee charged by the hearing officer or court reporter, then the party responsible for the cancellation or postponement shall be solely responsible for payment of that fee. This process shall not apply to mutual settlements by the parties, which result in an arbitration fee.

M. In the case of suspension, demotion, reduction in salary, or dismissal prescribed by the City Manager, the time of such of suspension, demotion or dismissal shall be effective from the first day after such delivery of said decision or shall relate back t o and be effective as of the date the employee was disciplined pending hearing before and decision by the City Manager, or his/her designee, whichever is applicable. If discipline imposed resulted in loss of pay, and the decision results in reduction or elimination of loss of pay, the pay loss shall be restored to the employee based on the number of standard work hours lost computed at his/her then base hourly rate.

N. The provisions of Section 1094.6 of the Code of Civil Procedure shall be applicable to proceedings under this Section.

Appeals of Suspensions Less Than Four (4) Schedule Work Days:

A permanent employee shall have the right to appeal a suspension less than four (4) schedule work days in the following manner:

1. The appointing authority shall cause to be served on the employee affected, by registered mail or personal delivery, a statement signed by the appointing authority of the specific action against the employee. This statement shall clearly inform the employee that he/she has the right, within five (5) working days after receipt of this notice, to request an informal hearing on the action by filing the request with the appointing authority.

2. If within the five (5) day appeal period the employee involved does not file said appeal, unless good cause for the failure is shown, the action of the City shall be considered conclusive and shall take effect as prescribed.

3. If within the five (5) day appeal period the employee involved files such notice of the appeal by giving written notice of appeal to the appointing authority, a time for an appeal hearing before the City Manager, or his/her designee, shall be established. The date for a hearing shall not be less than ten (10) days, nor more than thirty (30) days, from the date of the filing of the appeal, unless the parties stipulate to a different date. All interested parties shall be notified in writing of the date, time, and place of the hearing at least seve n (7) calendar days prior to the hearing.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 40: Disciplinary Appeals (continued)

4. The City Manager, or his/her designee, shall conduct an informal hearing on the appeal. Each party shall have the opportunity to present all relevant information in s upport of its respective position. These proceedings may be electronically recorded and either party shall have the right to cause them to be reported by a certified shorthand reporter at the party's expense.

5. Within ten (10) working days after the conclu sion of the hearing, the City Manager, or his/her designee, shall deliver to the employee a written decision which shall either (a) affirm the decision, (b) modify it by (1) holding that certain charges were not established by a preponderance of the evidence and/or (2) reducing the penalty or (3) overturn the decision in its entirety. Said decision shall be final and binding on the parties, subject to their right to seek judicial review pursuant to 1094.5 and 1094.6 of the California Code of Civil Procedure.

Article 41: No Strike/No lockout

Section 1. Teamsters Union, its officers, agents, representatives, and/or members agree that during the term of this MOU they will not cause or condone any strike, walkout, slowdown, sick -out or any other job action by withholding or refusing to perform services.

Section 2. The City agrees that it shall not lockout its employees during the term of this MOU.

The term "lockout" is hereby defined so as not to include the discharge, suspension, termination, layoff, failure to recall or failure to return to work of employees of the City in the exercise of its rights as set forth in any of the provisions of this MOU or applicable ordinance or law.

Section 3. Any employee who participates in any conduct prohibited in Section 1 above may be subject to disciplinary action up to and including discharge.

Section 4 In the event that any one or more officers, agents, representatives, or members of Teamsters Union engage in any of the conduct prohibite d in Section 1 above, Teamsters Union shall immediately instruct any persons engaging in such conduct that their conduct is in violation of this MOU and is unlawful and they must immediately cease engaging in conduct prohibited in Section 1 above, and return to work.

Article 42: Layoffs

Amend City of Hesperia Personnel Rules and Regulations (9/15/88), Rule VIII, Section 3, Reduction in Force by Layoff by deleting all current text on Page 49 and substituting the following language.

1. Advance Notice - Employees separated by reason of a reduction in force shall be given at least thirty (30) days prior notice of separation and the reasons therefore. If one or more employee to be separated is represented by a duly recognized employee organization, the City will, on request, meet with such organization concerning the impact of the layoff.

2. Bumping - An employee whose position has been abolished and who would be laid off shall have the right to "bump" into a classification the employee previously held with the City if such position receives the same or lower salary, and is determined by the City Manager or designee to be qualified for such position at the time, based upon the applicable job description.

3. Offer of Reassignment - An employee's appointment sha ll not be terminated as a result of a reduction in force procedure before the employee has been made a reasonable offer of reassignment, if such offer is possible.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 42: Layoffs (continued)

4. Offer of Vacant Position - An employee whose position has been abolished and who would otherwise be laid off shall be offered the opportunity to transfer, without examination, to any then currently existing vacant position with the same or lower salary if the employee meets the minimum qualifications for such position, as determined by the City Manager or designee based upon the applicable job description and new application. If two or more employees are eligible for appointment to a vacancy, the criteria set forth in the paragr aph entitled Order of Separation shall be applied to determine which employee shall be offered the vacant position.

5. Laid Off Employee on Reemployment Register - The names of regular employees who have been laid off due to reduction in force shall be placed on an appropriate lay off reemployment list according to date and order separated and shall be eligible for reemployment.

Each employee on a lay off reemployment list shall remain on that list for one (1) year.

Employees whose name appears on a lay off reemployment list shall be considered for reemployment in the class from which the employee was laid off prior to using any other available employment eligible list to fill regular vacancies in the subject class. The Personnel Officer can extend the active period of reemployment lists or individual employees eligibility on such lists for six (6) month periods as he/she determines to be in the best interest of the City.

A. Notice - The City will notify, by certified mail to the laid off or displaced employee's last known address, of all vacancies for which the employee is eligible for employment under this provision. Such notice shall be given for all such positions, which arise for one (1) year from the date of layoff or displacement. A laid off or displaced employee who fails to report for appointment within two (2) work weeks of notice shall be deemed to have rejected appointment and shall be automatically removed from the reemployment register list.

B. Reappointment - An employee who is laid off or displaced to a lower classification under this provision shall be entitled to automatic appointment to any vacant position from which he/she was laid off or displaced or for which he/she is qualified if such employee reports for duty on receiving notice. Appointments shall be made in the reverse order of layoffs, that is, the last laid off shall be the first offered reappointment.

6. Order of Separation - Selection for retention shall be based primarily upon seniority of service with performance being taken into account.

While seniority is the primary factor in determining order of separation, it is not in and of itself the only determining factor.

Therefore, this policy does not preclude the retention of members, which have less seniority to other members within the class for which the reduction in force action may be taken. The following criteria shall be considered in evaluating performance:

A. The employee's written performance evaluations.

B. The history of an employee's written disciplinary actions.

C. The employee's written record of attendance including patterns of sick leave usage, tardiness and unexcused absences.

All newly hired employ ees serving an initial probationary period, part -time, temporary, seasonal, or emergency employees, in classifications affected by layoff, shall be laid off before any permanent employee is laid off.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 43: Performance Evaluations

A Performance Evaluation Report shall be required annually. In the event that an employee receives an overall evaluation “Improvement Needed” or “Unsatisfactory,” he/she shall not be granted a merit increase until a satisfactory evaluation is reported. In cases where a performance evaluation has not been received by an employee within 7 days of the eligibility date, the employee shall inform his/her direct supervisor. If the employee receives an overall evaluation “Satisfactory” or above, he/she shall be granted any applicable merit increase retroactively to the original eligibility date.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Other Policies

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 43: Outside Employment

It is the policy of the City of Hesperia to allow employees to hold a second job as long as the second job does not present a conflict of interest to their position with the City. In addition, it is required that a second job be reported to the Human Resources Division.

Article 44: Smoking

The City has a no smoking policy to include all tobacco products, including e -cigarettes, vapors exhalants, etc. Employees are prohibited from use of products in all City buildings including passenger vehicles and equipment owned or leased by the City. Use of the products will be prohibited within 20 feet of all vehicles, equipment and entrances, exits, operable windows and ventilation ducts of City buildings.

Article 45: Prevailing Benefits

It is understood and agreed that there exists, in written form, certain personnel rules, poli cies, practices and benefits which shall continue in effect except for those provisions modified by mutual agreement of both parties.

Article 46: Provisions of Law

It is understood and agreed that this MOU is subject to all current and future applicable federal and state laws, federal and state regulations. If any part or provision of the MOU is in conflict or inconsistent with such above applicable laws, rules and regulations, or is otherwise held to be invalid or unenforceable by any tribunal or compe tent jurisdiction, such part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this MOU shall not be affected thereby.

Article 47: Sole and Entire Memorandum of Understanding

By entering into this agreement, the parties have each fully complied with the obligations to meet and confer under the Meyers -Milias-Brown Act. It is the intent of the parties hereto that the provisions of this MOU shall supersede all prior agreements and memorandums of agre ement or memorandums of understanding, or contrary salary and/or personnel resolutions, oral or written, expressed or implied, between the parties, and shall govern the entire relationship and shall be the sole source of any and all rights which may be ass erted hereunder. This MOU is not intended to conflict with federal or state law.

This agreement, the City's personnel rules, and the resolution of adoption of this MOU set forth the wages, hours and all other terms and conditions of employment for the em ployees subject to this MOU. All other terms and conditions of employment, whether written or unwritten, are hereby abrogated and declared null and void.

The parties acknowledge that if the Association membership ratifies this MOU, the City Council would adopt this agreement by resolution and that said resolution would remain in full force and effect during the life of this MOU.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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Article 48: Emergency Waiver

In the event of circumstances beyond the control of the City, such as acts of God, fire, flood, insurrection, civil disorder, national emergency, or similar circumstances, if the Chief Administrative Officer or his designee so declares, any provisions of this MOU or the Personnel Rules or Resolutions of the City, which restrict the City's ability to respond to these emergencies, shall be suspended of the duration of such emergency. After the emergency is declared over, the Teamsters Union shall have the right to meet and confer with the City regarding the impact on employees of the suspension of these provisions in the MOU and any personnel rules and policies.

Article 49: Waiver

Section 1. The parties mutually agree that neither party shall seek to negotiate or bargain with reference to wages, hours, or terms and conditions of employment, regardless of whether covered by this MOU or in the negotiations leading thereto and irrespective of whether or not such matters were discussed or were even within the contemplation of the parties hereto during the negotiations leading to this MOU. Regardless of the waiver contained in this Article, the parties may, by mutual agreement, in writing, agree to meet and confer about any matter during the term of this MOU.

Section 2. The parties shall reopen any provision of this MOU for the purpose of complying with any final order of a federal or state agency or court of competent jurisdiction requiring a modification or change in any provision or provisions of this MOU in order to comply with state or federal laws.

Section 3. The parties acknowledge that this MOU shall not be in full force and effect until ratified by Teamsters Union and adopted through resol ution of the City Council of the City of Hesperia.

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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For the Teamsters, Local 1932:

________________________________________________ _____________________ Rich Smith, Labor Relations Representative Date

________________________________________________ _____________________ Daniel Novaselec Date

________________________________________________ _____________________ Coleen O’Brian Orta Date

________________________________________________ _____________________ Mark Lockwood Date

________________________________________________ ____________________ Stephen Verheyen Date

For the City of Hesperia:

________________________________________________ _____________________ Laura Drottz Kalty
Lead Negotiator Date

________________________________________________ _____________________ Rachel Molina
Assistant City Manager Date

________________________________________________ _____________________ Casey Brooksher
Director of Finance Date

________________________________________________ _____________________ Rita Perez
Deputy Human Resources/Risk Management Director Date

CITY/TEAMSTERS LOCAL1932 MEMORANDUM OF UNDERSTANDING
February 1, 2022 through January 31, 2024

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PASSED, APPROVED and ADOPTED THIS 17th day of May 2022.

___________________________________
Mayor

I, Melinda Sayre, City Clerk of the City of Hesperia, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Hesperia, California, at an adjourned meeting of said City Council held on the 17th day of May 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Melinda Sayre, City Clerk

RESOLUTION NO. 2022-035

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA,

CALIFORNIA, APPROVING THE MEMORANDUM OF UNDERSTANDING
WITH THE TEAMSTERS LOCAL 1932

WHEREAS, the City and the Teamsters Local 1932 (Teamsters Union) have met and conferred and bargained in good faith and have reached a tentative agreement on a successor Memorandum of Understanding for the period of February 1, 202 2 through January 31, 202 4; and

WHEREAS, the Memorandum of Understanding prescribes the salaries, benefits, and other terms and conditions for employees of the City of Hesperia represented by the Teamsters Union; and

WHEREAS, the City Council has reviewed and approves of the provisions included in the Memorandum of Understanding.

NOW THEREFORE, BE IT RESOLVED BY THE CITY OF HES PERIA CITY COUNCIL AS FOLLOWS:

Section 1. That the recitals above are true and correct.

Section 2. That the City Council approves the Memorandum of Understanding (Exhibit A on file in the City Clerk’s Office) made and entered into between the City of Hesperia and the Teamsters Local 1932, effective February 1, 202 2 through January 31, 2024.

Section 3. That City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 17th day of May, 2022.

______________________________
Brigit Bennington, Mayor

ATTEST:

____________________________
Erin Baum, Assistant City Clerk

RESOLUTION HWD NO. 2022-05

A RESOLUTION OF THE HESPERIA WATER DISTRICT OF THE CITY OF

HESPERIA, CALIFORNIA, APPROVING THE MEMORANDUM OF
UNDERSTANDING WITH THE TEAMSTERS LOCAL 1932

WHEREAS, the City and the Teamsters Local 1932 (Teamsters Union) have met and conferred and bargained in good faith and have reached a tentative agreement on a successor Memorandum of Understanding for the period of February 1, 2020 through January 31, 2022; and

WHEREAS, the Memorandum of Understanding prescribes the salaries, benefits, and other terms and conditions for employees of the City of Hesperia represented by the Teamsters Union; and

WHEREAS, the Board of Directors has reviewed and approves of the provisions included in the Memorandum of Understanding.

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE HESPERIA WATER DISTRICT AS FOLLOWS:

Section 1. That the recitals are true and correct.

Section 2. That the Board of Directors approves the Memorandum of Understanding (Exhibit A on file in the City Clerk’ s Office) made and entered into between the City of Hesperia and the Teamsters Local 1932, effective February 1, 202 2 through January 31, 2024.

Section 4. That the Board Secretary shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 17th day of May 2022.

______________________________
Brigit Bennington, Chair

ATTEST:

____________________________
Erin Baum, Assistant City Clerk

City of Hesperia

STAFF REPORT

DATE: May 17, 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: Professional Services Agreement with CivicPlus

RECOMMENDED ACTION

It is recommended that the City Council authorize the City Manager to enter into a three (3) year agreement with CivicPlus, LLC in an amount not -to-exceed $50,000, to provide online hosting and maintenance for the codification of the City’s Ordinances.

BACKGROUND

The City is required to codify Council adopted Ordinances and needs to procure the services of an experienced professional to provide electronic and paper codification updates. When the City incorporated in 1988, Lexis-Nexis was utilized to codify the City’s Municipal Code. In 2009, Municode acquired Lexis-Nexis and they continued the codification services. On May 10, 2022, the City was notified that CivicPlus acquired Municode. Due to this acquisition, a contract with CivicPlus is necessary to continue these required services.

ISSUES/ANALYSIS

CivicPlus will provide administrative support, online code hosting and web storage, in addition to providing electronic codification updates. CivicPlus has agreed to provide the same service Municode was providing at the same cost. With the acquisition, staff recommends approval of an agreement through June 30, 2025, allowing these services to continue with CivicPlus.

FISCAL IMPACT

Funding for these services will be included in the annual operating budget.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None.

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City of Hesperia

STAFF REPORT

DATE: May 17, 2022

TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager

BY: Rachel Molina, Assistant City Manager
Casey Brooksher, Director of Administrative Services

SUBJECT: Bond Opportunities for Land Development (BOLD)

RECOMMENDED ACTION

It is recommended that the City Council hold a public hearing to receive comments regarding the California Municipal Finance Authority (CMFA) Bond Opportunities for Land Development (BOLD); and adopt Resolution No. 2022-23, authorizing the Cit y to join the CMFA; and adopt Resolution No. 2022-24 for the City to allow development projects within the City to participate in the BOLD Program.

BACKGROUND

CMFA is a joint powers authority (“JPA”) whose members consist of numerous cities and other local agencies throughout California. CMFA can issue municipal bonds for the purpose of financing the acquisition and/or construction of public facilities to be owned by CMFA’s members and other local agencies. Participation is at no cost to members. CMFA shares a portion of its bond issuance fee directly with the member(s) it issues on behalf of and also contributes to charities throughout the State.

The “BOLD” program (acronym for Bond Opportunities for Land Development) is a program offered by the California Municipal Finance Authority (“CMFA”) to provide its members a means to accommodate community facilities district (“CFD”) formation and bonding within their jurisdiction. By participating in the program, formation of the CFD, administration and bonding is handled by CMFA and the City’s involvement can be minimized.

ISSUES/ANALYSIS

The Mello-Roos Community Facilities Act offers financing flexibility commonly used by cities, schools and other local agencies throughout the State to generate funds for t he acquisition and/or construction of public facilities, including as relates to development fees used for public facilities. Although CFDs formed through the BOLD Program would be located within the City’s jurisdiction, involvement of the City is flexibl e and minimal. The program offers developers the opportunity to finance public infrastructure, as well as impact fees associated with new development, through tax -exempt bonds payable from special taxes levied by the CFD on property within the CFD, a typical financing method for new home developments in California.

The BOLD program is facilitated through bond professionals chosen by CMFA with specialized expertise in CFD bond issuance and sales – bond counsel, underwriter and other advisors as needed – all ranked among the top firms in the field. As such, the City does not designate the

Staff Report to the Mayor and Council Members
Bond Opportunities for Land Development (BOLD)
May 17, 2022

financing team, however should the City desire to use its own financial advisor to review the BOLD program application and/or other program documents, it may do so, with a ll related costs payable from bond proceeds.

When bonds are issued through CMFA, City involvement is limited to use of the program and, prior to actual issuance of bonds, entering into an agreement to acquire the public facilities or reimburse the impact fees to be paid for with the bond proceeds. CMFA authorizes and issues the bonds in its name and awards the sale of the bonds to the bond underwriter per the underwriter’s credit requirements; CMFA’s financing team provides the bond documentation and the Official Statement through its bond counsel.

Upon issuance of bonds through the BOLD program, proceeds are available as a funding source for direct payment of impact fees or to otherwise reimburse developer costs for public facilities associated with new development. The proceeds are held by a bond trustee and are not directly paid to the developer but are available as directed by the City and to be set forth in an acquisition agreement, joint community facilities agreement or similar agreement applicabl e to the particular bond sale.

FISCAL IMPACT

There is no fiscal impact for the approval of the City to join CMFA or authorizing the use of BOLD. The City is not liable to repay the bonds issued by CMFA or the special taxes imposed on the participating properties within any CFD formed through the BOLD Program, and the City has no contractual relationship with bond owners or the bond trustee.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Resolution No 2022-23 Joining California Municipal Finance Authority

2. Resolution No. 2022-24 Authorizing Use of the Bond Opportunities For Land Development (BOLD) Program

RESOLUTION NO. 2022-23

RESOLUTION OF THE CITY OF HESPERIA, CALIFORNIA,

APPROVING, AUTHORIZING, AND DIRECTING EXECUTION OF A

JOINT EXERCISE OF POWERS AGREEMENT RELATING TO THE

CALIFORNIA MUNICIPAL FINANCE AUTHORITY

WHEREAS, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the “Act”), certain public agencies (the “Members”) have entered into a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”) in order to form the California Municipal Finance Authority (the “Authority”), for the purpose of promoting economic, cultural and community development and in order to exercise any powers common to the Members, including the issu ance of bonds, notes or other evidences of indebtedness; and
WHEREAS, the City of Hesperia (the “City”), has determined that it is in the public interest and for the public benefit that the City become a Member of the Authority in order to facilitate the promotion of economic, cultural and community development activities in the City, including the financing of projects therefor by the Authority; and
WHEREAS, there is now before this City Council the form of the Agreement; and WHEREAS, the Agreement has been filed with the City, and the members of the City Council, with the assistance of its staff, have reviewed said document; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hesperia:

Section 1. The Agreement is hereby approved and the Mayor or the designee thereof is hereby authorized and directed to execute said document, and the City Clerk or such Clerk’s designee is hereby authorized and directed to attest thereto.

Section 2. The executing officers(s), the City Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized.

Section 3. The Clerk shall forward a certified copy of this Resolution and an originally executed Agreement to the Authority in care of its counsel:

Ronald E. Lee, Esq.

Jones Hall, APLC
475 Sansome Street, Suite 1700
San Francisco, CA 94111

Resolution No. 2022-23

Section 4. This Resolution shall take effect immediately upon its passage.

ADOPTED by the City Council of the City of Hesperia at a regular meeting of said City Council held on the 17th day of May, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_________________________________________
Brigit Bennington, Mayor
ATTEST:

___________________________________
Melinda Sayre, City Clerk

RESOLUTION NO. 2022-24

RESOLUTION OF THE CITY OF HESPERIA, CALIFORNIA, AUTHORIZING

USE OF THE BOND OPPORTUNITIES FOR LAND DEVELOPMENT (BOLD) PROGRAM; AUTHORIZING THE CALIFORNIA MUNICIPAL FINANCE

AUTHORITY TO ACCEPT APPLICATION S FROM PROPERTY OWNERS,

CONDUCT PROCEEDINGS AND LEVY SPECIAL TAXES WITHIN THE

TERRITORY OF THE CITY OF HESPERIA PURSUANT TO THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982, AS AMENDED ; AND AUTHORIZING

RELATED ACTIONS

WHEREAS, the California Municipal Finance Authority (the “CMFA”) is a joint exercise of powers authority the members of which include numerous cities , counties and other local agencies in the State of California (the “State”); and

WHEREAS, the CMFA provides financing services to its members and the City of Hesperia (the “City”) is, on the date hereof, adopting a resolution to become a member of CMFA; and

WHEREAS, the CMFA has established the Bond Opportunities for Land Development Program (the “BOLD Program”) to allow the financing through the levy of special taxes under the Mello-Roos Community Facilities Act of 1982, as amended (the “Act”) of certain public facilities and development impact fees that finance public facilities (together, the “Improvements”) to be owned by local agencies in the State; and

WHEREAS, the BOLD Program creates an opportunity for developers to finance Improvements under the Act, without the necessity of the City creating and administering the community facilities district; and

WHEREAS, the City desires to allow the owners of property being developed within its jurisdiction (“Participating Developers”) to participate in the BOLD Program and to allow the CMFA to conduct proceedings under the Act to form community facilities districts (“CFDs”) under the Act, to levy special taxes within such CFDs, and to issue bonds secured by such special taxes under the Act to finance Improvements, provided that such Participating Developers voluntarily agree to participate and consent to the levy of such special taxes and the issuance of such bonds; and

WHEREAS, eligible property owners within the jurisdiction of the City may in the future elect to be Participating Developers, and the CMFA may conduct proceedings under the Act to form a CFD, levy special taxes within such CFD and issue bonds secured by such special taxes to finance Improvements; and

WHEREAS, the City will not be responsible for the conduct of any proceedings under the Act for the formation of any CFD; the levy or collection of special taxes for any CFD or any required remedial action in the case of delinquencies in any special tax payments; or the issuance, sale or administration of any bonds issued in connection with the BOLD Program; and

WHEREAS, pursuant to Government Code Section 6586.5, notice was published at least five days prior to the adoption of this resolution at a public hearing, which was duly conducted by this City Council concerning the significant public benefits of the BOLD Program and the financing of the Improvements;

Resolution No. 2022-24

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hesperia:

Section 1. The use of the BOLD Program in connection with the financing of Improvements is hereby authorized and approved. The appropriate officials and staff are hereby authorized and directed to allow BOLD Program participation to be available to property owners who are subject to the payment of fees for new development and/or who are conditioned to install public improvements in connection with new development.

Section 2. The City Council hereby finds and declares that the issuance of bonds by the CMFA in connection with the BOLD Program will provide significant public benefits, including without limitation, savings in effective interest rate, bond preparation, bond underwriting and bond issuance costs and the more efficient delivery of local agency services to residential and commercial development within the City.

Section 3. The Assistant City Manager and the Director of Administrative Services (each, an “Authorized Officer”), acting together, are hereby authorized and directed to allow and approve BOLD Program participation available for property owners that are subject to the payment of fees for new development and/or that are conditioned to install public improvements in connection with new development, including signing developer applications or other documents which shall evidence the official intent of the City to reimburse itself in connection with each project from the proceeds of tax-exempt obligations issued by CMFA as part of the BOLD Program, and to advise such owners requesting participation in the BOLD Program that the City has approved the BOLD Program; provided, that the CMFA shall be responsible for providing applications and processing of documentation and related materials at its own expense.

Section 4. In connection with the issuance of bonds by the CMFA for the BOLD Program, acquisition agreements, joint community facilities agreements or similar agreements will be required to be entered into, and each Authorized Officer, or the designee of either of them is hereby delegated authority to enter into each such acquisition agreement, joint community facilities agreement, or similar agreement for and on behalf of the City, as determined necessary or desirable by the Authorized Officer executing the same . The City Council hereby finds and declares that entrance into such agreements shall be beneficial to the residents of the City.

Section 5. This Resolution shall take eff ect immediately upon its adoption. The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of the CMFA.

ADOPTED by the City Council of the City of Hesperia at a regular meeting of said City Council held on the 17th day of May, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_________________________________________
Brigit Bennington, Mayor
ATTEST:
___________________________________
Melinda Sayre, City Clerk

City of Hesperia

STAFF REPORT

DATE: May 17, 2022
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Casey Brooksher, Director of Administrative Services

SUBJECT: Adoption of a Resolution Establishing the Formation and Certifying the Election Results of Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services)

RECOMMENDED ACTION

It is recommended that the City Council conduct the Public Hearing and after receiving public testimony and deliberation and: 1) Adopt a Resolution Establishing the Formation of the City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) (“CFD 2022-1”) and Future Annexation Area, 2) Adopt a Resolution Calling a Special Election and 2) Adopt a Resolution Declaring the Results of a Special Landowner Election and Directing the Recording of a Special Tax Lien.

BACKGROUND

The Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311 and following) (the “Act”) contains the statutory framework pursuant to which the City of Hesperia (the “City”) or other local agencies may form a community facilities district (“CFD”) for the purpose of financing the purchase, construction, expansion, improvement or rehabilitation of public facilities or the provision of certain authorized public services or maintenance. A CFD may finance such public facilities, services or maintenance through the levy of special taxes within the geographic boundaries of the CFD. Additionally, to the extent a CFD is formed to pay for public facilities, bonds secured by such special taxes may be issued for a CFD. No bonds may be issued for a CFD formed to fund services.

The property owner has filed a petition requesting the formation of the CFD.

During May 2021, the City and its consultant NBS completed the Fiscal Impact Analysis for Citywide Future Development (FIA). This analysis identified the fiscal impacts of new development to the City. Additionally, the study looked to determine a funding mechanism for enhanced police protection services as well as funding for enhanced roadway maintenance services for future non- residential development.

To mitigate the negative fiscal impacts associated with these enhanced services, the City is currently considering the formation of CFD 2022-1 to fund maintenance and associated services related to new non-residential development. The City adopted Local Goals and Policies related to the use of CFDs at the April 1, 2008 City Council meeting as Resolution No. 2008-032, as required by the Act. The next step in in the process of forming CFD 2022-1 is to adopt the Resolution of Intention (the “ROI”).

Staff Report to the City Council
Adoption of Resolution of Establishing Formation and Certifying the Election Results for CFD 2022 -1 May 17, 2022

The ROI includes a description of the services to be provided, a map of the boundary of CFD 2022-1, including Future Annexation Area, and the Rate and Method of Apportionment (the “RMA”) which details the manner in which special taxes may be levied within CFD 2022-1.

A Future Annexation Area allows future developments within the area to annex by unanimous written consent of the property owner.

ISSUES/ANALYSIS

Resolution of Intention

This action relates to the ROI, which formally states the City’s intent to form CFD 2022-1. The ROI does not actually form CFD 2022-1 or authorize the levy of the special taxes; rather, the ROI initiates proceedings. The ROI also approves the boundary map, including Future Annexation Area, for the proposed CFD 2022-1, which is attached hereto as Attachment B, and is on file with the City Clerk. The ROI includes the following information, as required by statute:

(a) declares the intention to form CFD 2022-1, and describes generally the boundaries;
(b) adopts the boundary map, including Future Annexation Area, for CFD 2022-1;
(c) states that the full name of CFD 2022-1 shall be “City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services).”
(d) describes the services to be funded;
(e) states that, except where funds are otherwise available, a special tax sufficient to pay for all services, secured by recordation of a continuing lien against all nonexempt real property in the district, will be annually levied within the area, and specifies the rate and method of apportioning the special tax, subject to voter approval;
(f) fixes a time and place for a public hearing on the establishment of the CFD, which is proposed to be May 17, 2022, at 6:30 pm;
(g) describes the proposed voting procedure; and
(h) describes future annexation by unanimous written consent of property owners in the future annexation area where applicable.

Rate and Method of Apportionment

The ROI includes a description of the rate and method of apportioning the special tax. The City has been working with its special tax consultant to prepare a Rate and Method of Apportionment (the “RMA”) setting forth a methodology for CFD 2022-1’s proposed special tax. The RMA is attached to the ROI as Exhibit “A” thereto.

Staff Report to the City Council
Adoption of Resolution of Establishing Formation and Certifying the Election Results for CFD 2022 -1 May 17, 2022

Pursuant to the RMA, the proposed special tax is to be levied on all taxable, non-exempt parcels within the District’s service area. Specifically, the RMA includes proposed special taxes for various land use categories as follows:

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2022/23*
*On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.

The special taxes set forth in the table on the previous page are proposed to be levied within the boundaries of CFD 2022-1 alone. The RMA includes additional details on inflationary increases for special taxes, procedures for appeals, exemptions, and other relevant information.

Next Steps
Adopting the ROI is the first formal step in forming CFD 2022-1. This action only declares the intention to form CFD 2022-1, but additional steps will be required to form CFD 2022-1 and impose the special taxes.

At the May 17, 2022 meeting, the City will hold a joint public hearing and provide an opportunity for public testimony on the formation of CFD 2022-1 and the establishment of a future annexation area. Notice must be published prior to the date of that hearing. At the hearing, if oral or written protests are filed by 50% or more of the registered voters within CFD 2022-1 or Future Annexation Area or the owners of more than 50% of the property within the proposed CFD 2022-1 or Future Annexation Area, the City must terminate proceedings. If not, the City will adopt a resolution forming CFD 2022-1, and call a special election and the City will form the Future Annexation Area where property owners will be permitted to join the CFD by unanimous written consent to the special taxes. The Unanimous written consent essentially serves as an election for a limited number of property owners where it is applicable. The Future Annexation Area will affect new non-residential development within the City.

If two-thirds of the votes cast are in favor of imposing the special tax, CFD 2022-1 may begin to impose the tax, and will file forms with the County for collection of the tax.

FISCAL IMPACT

In order to provide enhanced law enforcement and roadway services, the Fiscal Impact Analysis identified the necessary funding amount of $371.44 per 1,000 building square feet, or $0.37 per building square foot. As a policy matter with a goal of not hindering new non-residential development, the City has determined to set an initial maximum special tax rate of $0.15 per building square foot for Industrial and Mixed-Use land uses. The following table includes the

Property Type
Maximum Special
Tax Rate

Per
Industrial Property $0.15 Building Square Foot
Industrial Parking Facility Property $0.15 Improved Square Foot Mixed Use Property $0.15 Building Square Foot

Staff Report to the City Council
Adoption of Resolution of Establishing Formation and Certifying the Election Results for CFD 2022 -1 May 17, 2022

estimated budget to fund the enhanced services as well as the costs to administer CFD 2022-1.

Description Value
Total Estimated Square Footage $3,745,429
Maximum Special Tax Rate Per Building Square Foot 0.15 $ 561,814
CFD Administration and County Collection Costs 5,509
Total Initial CFD Budget $567,323.55

The cost of formation of CFD 2022-1 is approximately $17,000, which will be borne by the City.

Subsequently, should any development be annexed into the district, those costs are approximately $4,000 and will be paid by the owner of the property being annexed.

ALTERNATIVE(S)

1. The City Council may provide alternative direction to staff.

ATTACHMENT(S)

1. Resolution Establishing the Formation of the CFD

2. Resolution Calling for a Special Election

3. Resolution Declaring the Results of a Special Landowner Election

4. Ordinance Authorizing the Levy of Special Taxes in a Community Facilities District

5. CFD Special Tax Report

RESOLUTION NO. 2022-31

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HESPERIA, STATE OF CALIFORNIA, ESTABLISHING THE

FORMATION OF A COMMUNITY FACILITIES DISTRICT AND

FUTURE ANNEXATION AREA

CITY OF HESPERIA

COMMUNITY FACILITIES DISTRICT
NO. 2022-1
(NON-RESIDENTIAL MAINTENANCE AND SERVICES)

WHEREAS, on April 5, 2022, this City Council (the “City Council”) of the City of Hesperia (the “City”) adopted Resolution No. 2022 -22 entitled “A Resolution of the City Council of the City of Hesperia, State of California, Declaring its Intention to Establish a Community Facilities District and Future Annexation Area, and to Authorize the Levy of Special Taxes” (the “Resolution of Intention”), stating its intention to form the “City of Hesperia, Community Facilities District No. 2022 -1 (Non- Residential Maintenance and Services)” (the “District”) and “City of Hesperia Community Facilities District No. 2022 -1 (Non -Residential Maintenance and Services) (Future Annexation Area)” (the “Future Annexation Area”), of the City pursuant to the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and

WHEREAS, the Resolution of Intention, incorporating a map of the proposed boundaries of the District and Future Annexation Area and stating the services to be provided, the estimated cost of providing such services, and the rate and method of apportionment of the special tax to be levied within the District to pay for the services, is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and

WHEREAS, under the Resolution of Intention, the Director of Administrative Services was directed to make, or cause to be made, and file with the City Clerk a report (the “Report”) in writing, presenting the services to be provided and an estimate of the reasonabl e cost of providing the services. The Report was prepared and submitted to the City Clerk prior to the public hearing described below; and

WHEREAS, the Resolution of Intention called for a public hearing pertaining to the formation of the District and Future Annexation Area and the levy of said special tax to be held on May 17, 2022; and

WHEREAS, appropriate notices were mailed, published and/or posted as required by law; and

WHEREAS, under the Resolution of Intention, the City Clerk was directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of the District and Future Annexation Area, and the City Clerk caused the publication of such notice at least seven (7) days before the date set for said public hearing; and

WHEREAS, on May 17, 2022, this City Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the proposed formation of the District and Future Annexation Area; and

Resolution No. 2022-31

WHEREAS, at the public hearing all interested persons desiring to be heard on all matters pertaining to the formation of the District and Future Annexation Area, the services to be provided therein and the levy of such special tax were heard and a full and fair public hearing was held; and

WHEREAS, written protests with respect to the formation of the District and Future Annexation Area, the furnishing of specified types of services and the rate and method of apportionment of the special taxes have not been filed with the City Clerk by fifty percent (50%) or more of the registered voters residing within the territory of the District and Future Annexation Area or property owners of one-half (1/2) or more of the area of land within the District and Future Annexation Are a and not exempt from the proposed special taxes; and

WHEREAS, the special tax proposed to be levied in the District and Future Annexation Area to pay for the proposed services has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the District and Future Annexation Area or the owners of one-half (1/2) or more of the area of land within the District and Future Annexation Area and not exempt from the special taxes.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hesperia as follows:

1. The foregoing recitals are true and correct.

2. The proposed special tax to be levied within the District and Future Annexation Area has not been precluded by majority protest pursuant to Section 53324, 53339.6 and/or other applicable provisions of the Act.

3. All prior proceedings taken by the City Council in connection with the establishment of the District and Future Annexation Area and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the requirements of the Act. The City Council has heretofore adopted Local Goals and Policies for Community Facilities Districts, and the City Council hereby finds and determines that the District and Future Annexation Area are in conformity with said goals and policies.

4. The community facilities district designated as the “City of Hesperia, Community Facilities District No. 2022 -1 (Non -Residential Maintenance and Services)” and the future annexation area designated as “City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) (Future Annexation Area)” of the City is hereby established pursuant to the Act.

5. The District Report is hereby approved.

6. The boundaries of the District and Future Annexation Area, as set forth in the map entitled "Proposed Boundaries of City of Hesperia, Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) and Future Annexation Area, City of Hesperia, County of San Bernardino County, State of California" heretofore recorded in the San Bernardino County Recorder’s Office on April 19, 2022, in Book 90 at Page 18 as Document 2022 -0144920 of Maps of Assessment and Community Facilities Districts, are hereby approved, are incorporated herein by reference, and shall be the boundaries of the District.

Resolution No. 2022-31

Parcels within the Future Annexation Area may be annexed to the District with the unanimous approval (each, a "Unanimous Approval") of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings or by annexation proceedings permitted by the Act.

7. The type of public services pr oposed to be funded by the District and Future Annexation Area and pursuant to the Act shall consist of those items shown in Exhibit A hereto and by this reference incorporated herein (the “Services”). It is hereby found and determined that the Services a re necessary to meet the increased demands as the result of development occurring in the District and Future Annexation Area.

8. Except to the extent that funds are otherwise available to the District to pay for the Services, a special tax sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non -exempt real property in the District, will be levied annually within the District pursuant to the Rate and Method of Apportionment, and collected in the same manner as ordin ary ad valorem property taxes or in such other manner as the City Council or its designee shall determine, including direct billing of the affected landowners.

9. The Rate and Method of Apportionment of the special tax among the parcels of real property with in the District, in sufficient detail to allow each landowner within the District to estimate the maximum amount such owner will have to pay, is shown in Exhibit B attached hereto and hereby incorporated herein.

10. Territory in the Future Annexation Area wil l be annexed into the District and a special tax will be levied on such territory only with the Unanimous Approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed into the District. Except to the extent that funds are otherwise available to the District to pay for the Services, a special tax sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the Future Annexation Area, is intended to be levied annually within the Future Annexation Area, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this City Council. The City Council hereby determines that the special tax proposed to pay for Services to be supplied within the Future Annexation Area shall be equal to any special tax levied to pay for the same Services in the District, except that a higher or lower tax may be levied within the Future Annexation Area to the extent that the actual cost of providing the Services in the Future Annexation Area is higher or lower than the cost of providing those Services in the District. In so finding, the City Council does not intend to limit its ability to levy a special tax within the Future Annexation Area to provide new or additional services beyond those supplied within the District. The Special Taxes in the original CFD shall be designated as Tax Zone 1. Subsequent annexations may provide for different Zones or the same Zone as provided herein and therein.

11. The Director of Administrative Services for the City, 9700 Seventh Avenue, City of Hesperia, California, 92345, telephone number (760) 947 -1876, is the officer of the City who will be responsible for preparing ann ually a current roll of the levy of the special tax obligations by assessor’s parcel number and who will be responsible for estimating future levies of the special tax.

Resolution No. 2022-31

12. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the District and this lien shall continue in force and effect until the collection of the special tax by the City ceases.

13. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the District is hereby preliminarily established at an amount equal to the $1,700,000 annually, as adjusted by law, commencing Fiscal Year 2022 -23, and such appropriations limit shall be submitted to the voters of the District as hereafter provided. Future Annexations to the District will each approve annual appropriations limit increases applicable to such Annexation that will be added to the appropriations limit established at formation and all previously approved annexations to sum to the total appropriations limit for the CFD. The proposition establishing such annual appropriations lim it shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act and the California Constitution.

14. Pursuant to the provisions of the Act, the proposition of the levy of the special tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the District at an election, the time, place and conditions of which election shall be as specified by a separate resolution of this City Council.

15. This Resolution shall take effect upon its adoption.

ADOPTED AND APPROVED by the City Council of the City of Hesperia at a public meeting of said City Council held on the 17th day of May, 2022.

Ayes:

Noes:

Abstain:

Absent:

Brigit Bennington, Mayor

Attest:

Melinda Sayre, City Clerk

EXHIBIT A

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(NON-RESIDENTIAL MAINTENANCE AND SERVICES)

DESCRIPTION OF SERVICES TO BE FINANCED BY THE DISTRICT

Services:

The services to be funded, in whole or in part, by the community facilities district (the "District”) consist of all services authorized under Section 53313 of the Government Code, including, but not be limited to, police protection services, maintenance and lighting of parks, parkways, streets, roads, storm drains, and open space. (the "Services"). The Services include all direct and incidental costs related to providing for the maintenance of public infrastructure within the area of the District and areas adjacent to or in the vicinity of such areas. The District may fund any of the following related to the Services: furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/ or equipment, apparatus, facilities or fixtures in areas to be maintained, paying the salaries and benefits of personnel necessary or convenient to provide the Services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the future provision of Services. It is expected that the Services will be provided by the City of Hesperia (the “City”), either with its own employees or by contract with third parties, or any combination thereof.

Administrative Expenses:

The administrative expenses to be funded by the District include the direct and indirect expenses incurred by the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of attorneys, any fees of the County of San Bernardino related to the District or the collection of special taxes, an allocable share of the salaries of the City staff directly related thereto and a proportionate amount of the City’s general administrative overhead related thereto, any amounts paid by the City from its general fund with respect to the District or the services authorized to be funded by the District, and expenses incurred by the City in undertaking action related to properties for which the payment of special taxes is delinquent, and all other costs and expenses of the City in any way related to the District.

Other:

The incidental expenses that may be funded by the District include, in addition to the administrative expenses identified above, the payment or reimbursement to the City of all costs associated with the establishment and administration of the District.

EXHIBIT B

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. CFD 2022-1
(NON-RESIDENTIAL MAINTENANCE AND SERVICES)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

The following pages contain the Rate and Method of Apportionment of Special Tax.

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(NON-RESIDENTIAL MAINTENANCE AND SERVICES)

A Special Tax shall be levied and collected in City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) (“CFD 2022-1”) each Fiscal Year, in an amount determined by the application of the procedures below. All of the Taxable Property (as defined below) in CFD 2022-1, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

I. DEFINITIONS
The terms hereinafter set forth have the following meaning:
"Acre” or “Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map or in the Assessor’s Data for each Assessor’s Parcel. In the event that the Assessor’s Parcel Map or Assessor’s Data shows no Acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon the applicable final map, parcel map, or calculated using available spatial data and GIS.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of CFD 2022-1 including, but not limited to, the following: the costs of computing the Annual Special Tax Requirement and the annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting the Special Tax, including any charges levied by the County Auditor’s Office, Tax Collector’s Office or Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements of the California Government Code (including the Act), including public inquiries regarding the Special Tax; the costs of the City or designee related to levying or an appeal of the Special Tax; and the costs of commencing and pursuing to completion action arising from any delinquent Special Tax in CFD 2022-1 or costs of the County tax sale process. Administrative Expenses shall include amounts estimated or advanced by the City or CFD 2022-1 for any other administrative purposes, including, but not limited to, attorney’s fees.
“Annual Services Costs” means the amounts required to fund services authorized to be funded by CFD 2022-1.
“Annual Special Tax Requirement” means that amount with respect to CFD 2022-1 determined by the City Council or designee as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual Services Costs, (3) any amount required to establish or replenish any reserve or replacement fund established in connection with CFD 2022-1, and (4) any reasonably anticipated delinquent Special Tax. “Assessor’s Data” means Building Square Footage, Acreage, or other information contained in the records of the County Assessor for each Assessor’s Parcel.

“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means, with respect to an Assessor’s Parcel, that number assigned to such Assessment’s Parcel by the County Assessor for purposes of identification. “Boundary Map” means that map recorded with the County Recorder’s office on April 19, 2022 in Book 90 at Page 18 as Document Number 2022-0144920.
“Building Square Foot(age)” means the structure square footage as shown on the building permit issued or as contained in the Assessor’s Data or in City building permit data. “CFD 2022-1” means the City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services), County of San Bernardino, State of California. “CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement and providing for the levy and collection of the Special Taxes. “City” means the City of Hesperia.
“City Council” means the City Council of the City, acting as the legislative body of CFD 2022-1. “County” means the County of San Bernardino, California. “Developed Property” means, in any Fiscal Year, all Taxable Property in CFD 2022-1 for which a building permit for new construction was issued by the City prior to June 30 of the preceding Fiscal Year. “Exempt Property” means all Assessor’s Parcels located within the boundary of CFD 2022-1 which are exempt from the Special Tax pursuant to Section E.
“Fiscal Year” means the period starting July 1 and ending on the following June 30th. “GIS” means a geographic information system.
“Improved Square Foot(age)” means, for Industrial Parking Facility Property, that paved square footage used for parking facilities plus the structure square footage associated with any office or building on the property, as shown in Assessor’s Data or in City building permit data. “Industrial Parking Facility Property” means all Assessor’s Parcels of Developed Property used for the temporary parking or storage of vehicles for a fee.
“Industrial Property” means all Assessor’s Parcels of Developed Property with an industrial use, according to Assessor’s Data or as otherwise known by the CFD Administrator. “Maximum Special Tax” means the maximum Special Tax authorized for levy in any Fiscal Year that may apply to Taxable Property as described in Section C.
“Mixed Use Property” means all Assessor’s Parcels that have been classified by the City to allow multiple uses on each such Assessor’s Parcel. For an Assessor’s Parcel of Mixed Use Property, each property use

City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Page 2

thereon is subject to taxation pursuant to section C below. “Non-Residential Property” means all Assessor’s Parcels of Developed Property within the boundaries of CFD 2022-01 for which a building permit(s) has been issued for a non-residential structure(s). “Property Owner’s Association” means any property owner’s association. As used in this definition, a Property Owner’s Association includes any home-owner’s association, condominium owner’s association, master or sub-association.
“Property Owner’s Association Property” means any property within the boundaries of CFD 2022-1 which is (a) owned by a Property Owner’s Association or (b) designated with specific boundaries and acreage on a final subdivision map as property owner association property. “Proportionately” means, in any Fiscal Year, that the ratio of the Special Tax to the Maximum Special Tax is equal for all Assessors’ Parcels Authorized to be levied in that Fiscal Year within 2022-1 each respective Tax Zone.
“Public Property” means any property within the boundaries of CFD 2022-1 which (i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency.

For purposes of this definition, a public agency includes the federal government, the State, the County, school districts, or any other public agency.
“Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Tax for CFD 2022-1.
“Special Tax” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Annual Special Tax Requirement. “State” means the State of California.
“Tax Escalation Factor” means change in the April to April Riverside-San Bernardino-Ontario CPI-U Index (or a similar successor index) up to a maximum factor of 3% that will be applied annually after Fiscal Year 2022/23 to increase the Maximum Special Tax shown in Section III. Should the specified index cease to be reported, the CFD Administrator will determine a comparable index to use. “Tax Zone” means a mutually exclusive geographic area within which the Special Tax may be levied pursuant to this Rate and Method of Apportionment. All the Taxable Property within CFD 2022-1 at the time of its formation is within Tax Zone No. 1. Additional Tax Zones may be created when property is annexed to CFD 2022-1, and a separate Maximum Special Tax shall be identified for property within each new Tax Zone at the time of such annexation. The Assessor’s Parcels included within a new Tax Zone when such Parcels are annexed to CFD 2022-1 shall be identified by Assessor’s Parcel number in the annexation documents at the time of annexation.
“Taxable Property” means all the Assessor’s Parcels within the boundaries of CFD 2022-1 that are not exempt from the Special Tax pursuant to law or Section E below. “Undeveloped Property” means all Assessor’s Parcels of Taxable Property within the boundaries of CFD2022-1 that are not Developed Property.

City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Page 3

“Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD 2022-1 that have been granted a welfare exemption pursuant to Section 53340 (c) of the Act under subdivision (g) of Section 214 of the Revenue and Taxation Code.

B. DETERMINATION OF TAXABLE PARCELS
On, or about, July 1 of each Fiscal Year, the CFD Administrator shall determine the valid Assessor’s Parcel Numbers for all Taxable Property within CFD 2022-1. If any Assessor’s Parcel Numbers are no longer valid, the CFD Administrator shall determine the new Assessor’s Parcel Number or Numbers in effect for the then-current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Special Tax shall be assigned to the new Assessor’s Parcels Numbers pursuant to Section C. The CFD Administrator shall also determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed Property and Undeveloped Property; (iii) the number of Units, Building Square Footage, or Acreage each Parcel contains; (iv) the property type, i.e., Industrial Property, etc.; and (v) the Annual Special Tax Requirement for the Fiscal Year.

C. MAXIMUM ANNUAL SPECIAL TAX RATE
The Maximum Special Tax for each Assessor’s Parcel of Taxable Property within Tax Zone No. 1 shall be assigned according to the table below.

In some instances, an Assessor’s Parcel of Developed Property may contain more than one property land use. The Maximum Special Tax assigned to an Assessor’s Parcel of Mixed Use Property shall be the sum of the Maximum Special Tax for all property uses located on that Assessor’s Parcel.

TABLE 1
MAXIMUM SPECIAL TAX RATES – TAX ZONE NO. 1
FISCAL YEAR 2022/23*

Property Type
Maximum
Special Tax Rate

Per
Industrial Property $0.15 Building Square Foot
Industrial Parking Facility Property $0.15 Improved Square Foot Mixed Use Property $0.15 Building Square Foot
*On each July 1, commencing on July 1, 2023, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.

On July 1 of each Fiscal Year, commencing on July 1, 2023, the Maximum Special Tax for Tax Zone No. 1 shall be increased by an amount equal to the Tax Escalation Factor.

A different Maximum Special Tax rate and Tax Escalation Factor may be identified in Tax Zones added to CFD No. 2022-1 as a result of future annexations.

City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Page 4

D. METHOD IF APPORTIONMENT OF THE SPECIAL TAX
All Taxable Property shall be subject to a Special Tax defined as follows.

The Special Tax shall be levied each Fiscal Year by the CFD Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel within CFD 2022-1 by the method shown below.

First. Determine the Annual Special Tax Requirement.

Second. Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the Maximum Special Tax described in the table below to satisfy the Annual Special Tax Requirement.

In some instances, an Assessor’s Parcel of Developed Property may be Mixed-Use Property. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of the Maximum Special Tax for all Units and Building Square Feet of each property type on that Assessor’s Parcel.

E. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment of Special Tax, no Special Tax shall be levied on Agricultural Property, Property Owner Association Property or Public Property, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act.

Welfare Exempt Property shall be exempt from the Special Tax in any Fiscal Year the property qualifies as Welfare Exempt Property.

F. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Tax. In addition, during the term of the appeal process, all Special Tax levied must be paid on or before the payment date established when the levy was made.

The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Tax to be modified or changed in favor of the property owner, the CFD Administrator shall determine if sufficient Special Tax revenue is available to make a cash refund. If a cash refund cannot be made, then an adjustment shall be made to credit future Special Taxes.

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Page 5

G. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City Council may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor’s Parcels, or any definition used herein, as long as such correction does not materially affect the levy and collection of Special Taxes. In addition, the interpretation and application of any section of this document shall be at the City’s discretion.

H. MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of CFD 2022-1, and may collect delinquent Special Taxes through available methods.

A Special Tax shall be levied commencing in Fiscal Year 2022/23 to the extent necessary to satisfy the Annual Special Tax Requirement and shall be levied perpetually or for as long as required to satisfy the Annual Special Tax Requirement, as determined by the CFD Administrator.

I. PREPAYMENT OF SPECIAL TAX
The Special Tax may not be prepaid.

City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Page 6

RESOLUTION NO. 2022-32

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF HESPERIA,

STATE OF CALIFORNIA, CALLING A SPECIAL

ELECTION FOR A COMMUNITY FACILITIES DISTRICT

CITY OF HESPERIA

COMMUNITY FACILITIES DISTRICT
NO. 2022-1
(NON-RESIDENTIAL MAINTENANCE

AND SERVICES)

WHEREAS, this City Council (the “City Council”) of the City of Hesperia (the “City”) adopted a resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Establishing the Formation of a Community Facilities District and Future Annexation Area” (the “Resolution of Formation”), ordering the formation of the City of Hesperia, Community Facilities District No. 2022-1 (Non- Residential Maintenance and Services) (the “District”), defining the p ublic services (the “Services”) to be provided by the District and Future Annexation Area, authorizing the levy of a special tax on property within the District and preliminarily establishing an appropriations limit for the District, all pursuant to the Me llo-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and

WHEREAS, pursuant to the provisions of the Resolution of Formation, the propositions of the levy of the special tax and the establishment of the appropriations limit shall be submitted to the qualified electors of the District as required by the provisions of the Act.

NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Hesperia as follows:

1. The foregoing recitals are true and correct.

2. Pursuant to the Act, the issues of the levy of the special tax and the establishment of the appropriations limit shall be submitted to the qualified electors (as defined below) of the District at a special election called therefor as provided below.

3. This City Council hereby finds that fewer than 12 persons have been registered to vote within the territory of the District for each of the ninety (90) days preceding the close of the public hearing heretofore conducted and concluded by this City Council for the purposes of these proceedings. Accordingly, and pursuant to Section 53326 of the Act, this City Council finds that, for these proceedings, the qualified electors are the landowners within the District and that the vote shall be by such landowners or their authorized representatives, each having one vote for each acre or portion thereof such landowner owns in the District as of the close of the public hearing.

4. This City Council hereby calls a special election to consider the issues described in Section 2, above, which special election shall be held on May 17, 2022, and the results thereof canvassed at the meeting of this City Council on May 17, 2022. The City Clerk is hereby designated as the official to conduct the special election and to receive all ballots until the close of business on the special election date. It is hereby acknowledged that the City Clerk has on file the Resolution of Formation, a map of the boundaries of the District, and a sufficient description to allow the City Clerk to determine the electors of the District. The special election shall be conducted by messenger or mail-delivered ballot in accordance with the Act.

5. As authorized by Section 53353.5 of the Act, the issues described in Section 2 above shall be combined into a single ballot measure, the form of which is attached hereto as Exhibit A is hereby approved. The City Clerk is hereby authorized and directed to cause a ballot, in substantially the form of Exhibit A, to be delivered to each of the qualified electors of the District.

Each ballot shall indicate the number of votes to be voted by the respective landowner to which the ballot pertains. Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The envelope to be used to return the ballot shall be enclosed with the ballot, have the return postage prepaid, and contain the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or authorized representative of the landowner entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot.

6. This City Council hereby further finds that the provisions of Section 53326 of the Act requiring a minimum of 90 days following the adoption of the Resolution of Formati on to elapse before the special election are for the protection of the qualified electors of the District.

There is on file with the City Clerk a written Petition with Waivers executed by all of the qualified electors of the District allowing for a shortening of the time for the special election to expedite the process of formation of the District and waiving any requirement for notice, analysis, and arguments in connection with the special election. Accordingly, this City Council finds and determines that the qualified electors have been fully apprised of and have agreed to the shortened time for the special election and waiver of analysis and arguments, and have thereby been fully protected in these proceedings. This City Council also finds and determines that the City Clerk has concurred in the shortened time for the special election. Analysis and arguments with respect to the ballot measures are hereby waived, as provided in Section 53327 of the Act.

7. If two-thirds (2/3) of the votes cast upon the question of levying such special tax and establishing the appropriations limit are cast in favor of the proposition after the canvass of the returns of such special election, the City Council may levy such special tax within the District under the Act in accordance with the approved rate and method of apportionment of special tax.

Such special tax may be levied only at the rate and may be apportioned only in the manner specified in the Resolution of Formation, subject to the Act, except that the special tax may be levied at a rate lower than that specified herein and the maximum annual tax rate may be lowered.

8. Under Section 50075.1 of the Government Code, the following accountability provisions shall apply to the special taxes: (a) the operation and m aintenance Services and the incidental costs thereof t, all as defined in the Resolution of Formation, shall constitute the specific purpose; (b) the proceeds shall be applied only to the specific purposes identified in (a) above; (c) there shall be create d special account(s) or funds(s) into which the proceeds shall be deposited; and (d) there shall be caused to be prepared an annual report as required by Section 50075.3 of the Government Code.

9. This Resolution shall take effect upon its adoption.

Resolution No. 2022-32

ADOPTED AND APPROVED by the City Council of the City of Hesperia at a public meeting of said City Council held on the 17th day of May, 2022, by the following vote:

Ayes:

Noes:

Abstain:

Absent:

Brigit Bennington, Mayor

Attest:

Melinda Sayre, City Clerk

EXHIBIT A

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2022-1
(NON-RESIDENTIAL MAINTENANCE AND SERVICES)

SPECIAL TAX ELECTION
(May 17, 2022)

This ballot is for a special, landowner election. You must return this ballot in the enclosed envelope to the office of the City Clerk of the City of Hesperia no later than the hour of 5:00 p.m. on Tuesday, May 17, 2022, either by mail or in person. A postmark is not sufficient. The City Clerk’s office is located at 9700 Seventh Avenue, Hesperia, California, 92345.

To vote, mark a cross (X) on the voting line after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Hesperia and obtain another.

The estimated maximum amount of money raised annually by this measure is expected to be $567,323.55 in 2022/23 special tax rates, upon full build out of the CFD, based on the rate and duration of the special tax and subject to the tax escalation factor, as set forth in the rate and method of apportionment of special taxes for the CFD.

BALLOT MEASURE: Shall the measure authorizing the City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) (the “District”) to annually levy a special tax perpetually solely on lands within the District of up to $0.15 per building square foot (or improved square foot for industrial parking), other rates for other land uses, as adjusted annually, to pay for Services and authorizing an appropriations limit of $1,700,000, as adjusted by law and future annexations, and all as provided in the Resolution of Formation adopted by the City Council on May 17, 2022, commencing Fiscal Year 2022-23, be adopted?

YES:

NO:

By execution in the space provided below, you also confirm your written waiver of the time limit pertaining to the conduct of the election and any requirement for analysis and arguments or form of ballot with respect to the ballot measure.

Number of Votes: 118

Property Owner: Main Hesperia LLC

By:

Property Owned by Property Owner: San Bernardino County Assessor’s Parcel Numbers:
3064-351-03-000, 3064-361-01-0000, 3064-401-02-0000, 117.73 Acres

RESOLUTION NO. 2022-33

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HESPERIA, STATE OF CALIFORNIA, DECLARING RESULTS

OF A SPECIAL LANDOWNER ELECTION AND DIRECTING THE

RECORDING OF A SPECIAL TAX LIEN

CITY OF HESPERIA

COMMUNITY FACILITIES
DISTRICT NO. 2022-1
(NON-RESIDENTIAL MAINTENANCE AND SERVICES)

WHEREAS, this City Council (the “City Council”) of the City of Hesperia (the “City”) adopted a resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Establishing the Formation of a Community Facilities District” (the “Resolution of Formation”), ordering the formation of the City of Hesperia, Community Facilities District No. 2022 -1 (Non- Residential Maintenance and Services) (the “District”), and the Future Annexation Area designated as the “City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) (Future Annexation Area)” (the “Future Annexation Area”) defining the public services (the “Services”) to be provided by the District and Future Annexation Area, authorizing the levy of a special tax on property within the District and preliminarily establishing an appropriations limit for the District, all pursuant to the Mello -Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and

WHEREAS, under the provisions of the Resolution of Formation, and pursuant to the reso lution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Calling a Special Election for a Community Facilities District” (the “Resolution Calling the Special Election”) heretofore adopted by this City Council, a measure containing propositions relating to the levy of the special tax and the establishment of the appropriations limit was submitted to the qualified electors of the District as required by the provisions of the Act; and

WHEREAS, pursuant to the terms of the Resolution Calling the Special Election, which are by this reference incorporated herein, the special election has been held and the City Clerk has on file a Canvass and Statement of Results of Special Election, (the “Canvass”) a copy of which is attached hereto as Exhibit A; and

WHEREAS, this City Council has been informed of the Canvass, finds it appropriate and wishes to complete its proceedings for the District.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hesperia as follows:

1. The foregoing recitals are true and correct.

2. The issues presented at the special election were the levy of a special tax within the District and the approval of an annual appropriations limit of not to exceed $1,700,000 as adjusted by law, commencing Fiscal Year 2022-23, annually all pursuant to the Resolution of Formation.

3. The City Council hereby approves the Canvass and finds that it shall be a permanent part of the record of its proceedings for the District. Pursuant to the Canvass, the issues presented at the

Resolution No. 2022-33

special election were approved by the qualified electors of the District by more than two-thirds (2/3) of the votes cast at the special election.

4. Pursuant to the voter approval, the District is hereby declared to be fully formed with the authority to levy the special taxes and to have the established appropriations limit, all as heretofore provided in these proceedings and in the Act. It is hereby found that all prior proceedings and actions taken by this City Council with respect to the District were valid and in conformity with the Act.

5. The City Clerk is hereby directed to complete, execute and cause to b e recorded in the office of the County Recorder of the County of San Bernardino a notice of special tax lien in the form required by the Act, such recording to occur no later than fifteen (15) days following adoption of this Resolution by the City Council.

6. This Resolution shall take effect upon its adoption.

ADOPTED AND APPROVED the City Council of the City of Hesperia at a public meeting of said City Council held on the 17th day of May, 2022, by the following vote:

Ayes:

Noes:

Abstain:

Absent:

Brigit Bennington, Mayor

Attest:

Melinda Sayre, City Clerk

EXHIBIT A

CITY OF HESPERIA

COMMUNITY FACILITIES
DISTRICT NO. 2022-1
(NON-RESIDENTIAL MAINTENANCE AND SERVICES)

CANVASS AND STATEMENT OF RESULT OF

SPECIAL ELECTION

I hereby certify that on May 17, 2022, I canvassed the returns of the special election held on May 17, 2022, in the City of Hesperia Community Facilities District No. 2022 -1 (Non-Residential Maintenance and Services) of the City of Hesperia and the total number of ballots cast in such special election and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct:

City of Hesperia
Community Facilities District No. 2022-1
(Non-Residential Maintenance and
Services) Special Tax Election, May 17,
2022

BALLOT MEASURE: Shall the measure authorizing the City of Hesperia Community Facilities District No. 2022 -1 (Non -Residential Maintenance and Services) (the “District”) to annually levy a special tax perpetually solely on lands within the District of up to $0.15 per build ing square foot (or improved square foot for industrial parking), other rates for other land uses, as adjusted annually, to pay for Services and authorizing an appropriations limit of $1,700,000, as adjusted by law and future annexations, and all as provided in the Resolution of Formation adopted by the City Council on May 17, 2022, commencing Fiscal Year 2022-23, be adopted?

Yes:

No:

IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND on May 17, 2022.

By:

City Clerk
City of Hesperia
Qualified
Landowner Votes Votes Votes
Votes Cast YES NO

_197

ORDINANCE 2022-06

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HESPERIA,

STATE OF CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL

TAXES IN A COMMUNITY FACILITIES DISTRICT

CITY OF HESPERIA COMMUNITY FACILITIES
DISTRICT NO. 2022-1
(NON-RESIDENTIAL MAINTENANCE & SERVICES)

WHEREAS, this City Council (the “City Council”) of the City of Hesperia (the “City”) on April 5, 2022 adopted Resolution No. 2022 -22 entitled “A Resolution of the City Council of the City of Hesperia, State of California, Declaring its Intention to Establish a Community Facilities District and Future Annexation Area and to Authorize the Levy of Special Taxes” (the “Resolution of Intention”) and has conducted proceedings (the “Proceedings”) to establish the City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance & Services) (the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”) to finance the costs of the maintenance of police protection services, maintenance and lighting of parks, parkways, streets, roads, storm drains, and open space (the “Services”) as provided in the Act; and

WHEREAS, the Resolution of Intention called for a public hearing to be held on April 5, 2022, or as soon thereafter as the matter may be heard; and

WHEREAS, on April 5, 2022, and as part of the Proceedings, this City Council held a public hearing under the Act relative to the determination to proceed with the formation of the District and Future Annexation Area and the rate and method of apportionment of the special tax (the “Special Tax”) to be levied within the District to finance the Services an d, at such hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and Future Annexation Area and the levy of the Special Tax were heard, substantial evidence was presented and considered by this City Council, and a full and fair public hearing was held; and

WHEREAS, upon the conclusion of the hearing, this City Council adopted a resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Establishing the Formation of a Community Facilities District and Future Annexation Area” (the “Resolution of Formation”), whereby the City Council (i) established the District and Future Annexation Area, (ii) authorized the levy of the Special Tax within the District, and (iii) prelimin arily established an appropriations limit for the District, all pursuant to the Act; and

WHEREAS, on May 17, 2022, a special election was held among the landowner voters within the District at which the landowner voters approved the proposition relating t o the levy of Special Taxes within the District and the establishment of an appropriations limit for the

District by the two-thirds vote required by the Act, which approval has been confirmed by resolution of this City Council; and

WHEREAS, the City Council ordered the recordation with the County Recorder of the County of San Bernardino of a Notice of Special Tax Lien (the “Notice”).

THE CITY COUNCIL OF THE CITY OF HESPERIA DOES ORDAIN AS FOLLOWS:

SECTION 1: By the passage of this Ordinance, the City Council hereby authorizes and levies the Special Tax within the District pursuant to the Act, at the rate and in accordance with the rate and method of apportionment of Special Tax set forth in the Resolution of Formation, which rate and method is by this reference incorporated herein. The Special Tax is hereby levied commencing in fiscal year 2022-2023 and in each fiscal year thereafter to pay for the Services for the District and all costs of administering the District, as contemplated by the Resolution of Formation and the Proceedings. By this Ordinance, the City Council also authorizes and levies the Special Tax upon any parcels annexed to the District in the Future Annexation Area following such annexation for fiscal year 2022-2023 and in each fiscal year thereafter.

SECTION 2: The Director of Administrative Services or designee or employee or consultant of the City is hereby authorized and directed each fiscal year to determine the specific Special Tax to be levied for the next ensuing fiscal year for each parcel of real property within the District, in the manner and as provided in the Resolution of Formation.

SECTION 3: Exemptions from the levy of the Special Tax shall be as provided in the Resolution of Formation and the applicable provisions of the Act. In no event shall the Special Tax be levied on any parcel within the District in excess of the maximum Special Tax specified in the Resolution of Formation.

SECTION 4: All of the collections of the Special Tax shall be used as provided in the Act and in the Resolution of Formation, including, but not limited to, the payment of the costs of the Services, the payment of the costs of the City in administering the District, and the costs of collecting and administering the Special Tax.

SECTION 5: The Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority and be subject to the same penalties and the same procedure and sale in ca ses of delinquency as provided for ad valorem taxes; provided, however, that the City Council may provide for other appropriate methods of collection by resolution(s) of the City Council. The Director of Administrative Services or designee or employee or consultant of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of San Bernardino in order to effect proper billing and collection of the Special Tax, so that the Special Tax shall be included on the secured property tax roll of the County of San Bernardino for fiscal year 2022-23 and for each fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated by the City.

SECTION 6: If for any reason any portion of this ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District by a court of competent jurisdiction, the balance of this ordinance and the application of the special tax to the remaining parcels within the District shall not be affected.

SECTION 7: The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published immediately after its passage at least once in a newspaper of general circulation for the City.

SECTION 8: This Ordinance shall become effective thirty (30) days following adoption.

City of Hesperia, a municipal corporation

MAYOR:

BRIGIT BENNINGTON, MAYOR

ATTEST:

MELINDA SAYRE, CITY CLERK

STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO SS:

CITY OF HESPERIA

I, Melinda Sayre, City Clerk of the City of Hesperia, do hereby certify that the foregoing Ordinance had its first reading and was introduced during the public meeting of the City Council on the 5 day of April, 2022 and had its second reading and was adopted and passed during the public meeting of the City Council on the 17 day of May, 2022, by the following vote:

Ayes:

Noes:

Abstain:

Absent:

Attest:

Melinda Sayre, City Clerk

Prepared by:

Report for:

Community Facilities District No. 2022-1
(Non-Residential Maintenance &
Services)
Special Tax Report
May 2022
Prepared by NBS for and on behalf of the City of Hesperia Attachment 5

TABLE OF CONTENTS

INTRODUCTION ..................................................................................................................... 1 DESCRIPTION OF SERVICES ..................................................................................................... 2 Authorized Services: ............................................................................................................ 2 Administrative Expenses: .................................................................................................... 2 Incidental Expenses: ............................................................................................................ 2 COST ESTIMATE ..................................................................................................................... 3 Fiscal Year 2022/23 Maximum Annual Special Tax Rate .................................................... 3 Annual Maximum Special Tax Escalation ............................................................................ 3 APPENDIX A: PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT AND FUTURE ANNEXATION AREA ............................................................................................................... 4 APPENDIX B: RATE AND METHOD OF APPORTIONMENT......................................................... 5

City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Special Tax Report 1

INTRODUCTION
The City Council (the “City Council”) of the City of Hesperia (the “City”) did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”), on April 5, 2022, adopted Resolution 2022-22 entitled the Resolution of the City Council of the City of Hesperia, State of California, Declaring Its Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes (the “Resolution of Intention”). In the Resolution of Intention, the City Council directed the study and filing of a public hearing report (the “Report”) required by Section 53321.5 of the Act for the proposed City of Hesperia Community Facilities District No. 2022-1 (Non-Residential Maintenance & Services) (the “District”).

Section
53321.5 of the Act provides that the Report contain the following:

1. A brief description of the public facilities or services to be provided by the District; and

2. An estimate of the fair and reasonable cost of providing the public facilities or services, including the incidental expenses in connection therewith, any City administration costs, and all other related costs.

For particulars, reference is made to the Resolution of Intention for the District, as previously adopted on April 5, 2022 by the City Council.

NOW, THEREFORE, the Director of Administrative Services of the City, the appointed responsible officer directed to prepare the Report or cause the Report to be prepared pursuant to the provisions of the Act, does hereby submit this Report containing the following information:

 DESCRIPTION OF SERVICES. A description of the services that the City Council has determined to be eligible to be funded by the District.
 COST ESTIMATE. The initial maximum cost estimate for the District services and the anticipated initial maximum special tax revenue.
 PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT: The proposed boundaries of the District are those properties and parcels in which special taxes may be levied to pay for the costs and expenses of the Services. The proposed boundaries of the District are described on the map of the District.
 RATE AND METHOD OF APPORTIONMENT. The Rate and Method of Apportionment of Special Tax which was included in the Resolution of Intention and approved by this City Council on April 5, 2022.

City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Special Tax Report 2

DESCRIPTION OF SERVICES
The public services and incidental costs authorized to be funded by the special taxes levied in the District consist of the following:

Authorized Services:

The services to be funded, in whole or in part, by the community facilities district (the "District”) consist of all services authorized under Section 53313 of the Government Code, including, but not be limited to, police protection services, maintenance and lighting of parks, parkways, streets, roads, storm drains, and open space. (the "Services"). The Services include all direct and incidental costs related to providing for the maintenance of public infrastructure within the area of the District and areas adjacent to or in the vicinity of such areas. The District may fund any of the following related to the Services: furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/ or equipment, apparatus, facilities or fixtures in areas to be maintained, paying the salaries and benefits of personnel necessary or convenient to provide the Services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the future provision of Services. It is expected that the Services will be provided by the City of Hesperia (the “City”), either with its own employees or by contract with third parties, or any combination thereof.

Administrative Expenses:

The administrative expenses to be funded by the District include the direct and indirect expenses incurred by the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of attorneys, any fees of the County of San Bernardino related to the District or the collection of special taxes, an allocable share of the salaries of the City staff directly related thereto and a proportionate amount of the City’s general administrative overhead related thereto, any amounts paid by the City from its general fund with respect to the District or the services authorized to be funded by the District, and expenses incurred by the City in undertaking action related to properties for which the payment of special taxes is delinquent, and all other costs and expenses of the City in any way related to the District.

Incidental Expenses:

The incidental expenses that may be funded by the District include, in addition to the administrative expenses identified above, the payment or reimbursement to the City of all costs associated with the establishment and administration of the District.

City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Special Tax Report 3

COST ESTIMATE
Initial Maximum Amount Proposed to be Expended
The annual budget presented below represents the initial maximum costs for providing the District services for Fiscal Year 2022/23.

District Costs
2022/23 Maximum
Budget Amount
District Service Costs $561,814.35
District Administration Costs $5,509.00
Total: $567,323.55

Anticipated Fiscal Year 2022/23 Maximum Special Tax Revenue The initial maximum annual special tax rates are set forth in the Rate and Method of Apportionment for the District. Based upon expected development, the initial maximum annual special tax revenue is as follows:

Property Land Use
2022/23
Maximum Annual
Special Tax Rate
2022/23
Total Anticipated
Maximum Annual
Special Tax
Industrial Property $0.15 per Building
Square Foot $567,323.55
Industrial Parking Facility Property $0.15 per Improved Square Foot 0.00
Mixed Use Property $0.15 per Building
Square Foot 0.00
Total Anticipated Maximum Annual Special
Tax Revenue (1): $567,323.55
(1) Anticipated based upon expected development.

Fiscal Year 2022/23 Maximum Annual Special Tax Rate
The Fiscal Year 2022/23 maximum annual special tax rate for Industrial Property within the District is $0.15 per building square foot. The maximum annual special tax rate for Industrial Parking Facility Property is $0.15 per improved square foot and the maximum annual special tax rate for Mixed Use Property is $0.15 per building square foot.

Annual Maximum Special Tax Escalation
On July 1 of each Fiscal Year, commencing on July 1, 2023, the maximum annual special tax rate shall be increased by an amount equal to three percent (3%) of the maximum annual special tax rate in effect for the previous Fiscal Year.

City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Special Tax Report 4
APPENDIX A: PROPOSED BOUNDARIES OF THE

COMMUNITY FACILITIES DISTRICT AND FUTURE

ANNEXATION AREA
The boundary map and future annexation area for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor, at the time this Report was prepared, and are incorporated by reference herein and made part of this Report.

City of Hesperia
Community Facilities District No. 2022-1 (Non-Residential Maintenance and Services) Special Tax Report 5
APPENDIX B: RATE AND METHOD OF APPORTIONMENT
The following pages provide a copy of the District’s Rate and Method of Apportionment approved by the City Council on April 5, 2022.

City of Hesperia

STAFF REPORT

DATE: May 17, 2022
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Ryan Leonard, Senior Planner
SUBJECT: CUP19-00010, TPM22-00002 & DA22 -00001 (Covington Group, Inc. ; APNs:
3064-351-03, 3064-361-01, 3064-391-01, 3064-401-02)

RECOMMENDED ACTION
The Planning Commissio n recommends that the City Council adopt Resolution No. 20 22-37, recommending that the City Council make the environmental determination pursuant to the California Environmental Quality Act (CEQA) by certifying the Final Environmental Impact Report (FEIR) and adopting a statement of overriding considerations and adopt Resolution Nos. 2022- 38 and 2022-39, approving CUP19-00010 and TPM22-00002 as well as Ordinance 2022 -09, approving DA22-00001.

PROJECT SUMMARY

Proposal: Proposal: A Conditional Use Permit (CUP) has been filed to construct a 3,745,429 square foot distribution center and industrial park on 194.8 gross acres. The project, identified as “Hesperia Commerce Center II” will consist of the construction of three industrial/warehouse buildings with associated office spaces, surface parking and loading areas. The northwesternmost building (referred to as Building 1) is proposed to be 1,567,317 square feet; the southernmost building (referred to as Building 2) is proposed to be 2,065,987 square feet and would potentially be divided between two spa ces within the same building; and the northeastern most building (referred to as Building 3) would be 112,125 square feet.

A tentative parcel map has also been filed to rearrange the four existing parcels into four new parcels that generally follow the a lignment of the future buildings. In addition, a Development Agreement (DA) is proposed that would allow the CUP to be effective for 12 years initially, with a provision allowing an automatic 8-year extension. In return, the City is requiring the Developer to construct certain off -site water and sewer infrastructure within the first 3 years from when the Development Agreement is executed. The applicant is also required to provide a one-time agreed upon community benefit contribution to the City.

Planning Commission Review: On April 14, 2022 the Planning Commission voted 5-0 to forward this item to the City Council with a recommendation for approval.

Conclusion: Because the project is consistent with the City’s General Plan, most of the project’s impacts, whether less than significant, mitigable, or significant and unavoidable were known and acknowledged by the City when the General Plan EIR was adopted in 2010. The Planning Commission recommends that p rior to acting on the project, the City Council make the environmental determination, certifying that the Final EIR is complete; that it has been prepared

Staff Report to the City Council
CUP19-00010, TPM22-00002, and DA22-00001
May 17, 2022

in compliance with CEQA; that it reflects the City’s independen t judgment; and that all impacts from carrying out the project have been identified and disclosed to the public . Resolution 2022- 37 has been prepared to document this determination as well as the Statement of Overriding Considerations. Once that has occurred, the City Council can consider the conditional use permit, tentative parcel map and Development Agreement. If recommended for approval, the mitigation monitoring and reporting program will be administered with the project approval.

ATTACHMENT(S)

1. Resolution No. 2022-37

2. Exhibit A (Environmental findings for EIR).

3. Exhibit B (Mitigation Monitoring and Reporting Program)

4. Resolution No. 2022-38

5. Exhibit A list of conditions (CUP19-00010)

6. Resolution No. 2022-39

7. Exhibit A list of conditions (TPM22-00002)

8. Ordinance No. 2022-09 (DA22-00001)

9. Development Agreement

10. Planning Commission Staff Report with attachments.

C1074-000 -- 1228458.1
RESOLUTION NO. 2022-37

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA ,

CALIFORNIA, MAKING THE ENVIRONMENTAL FINDINGS PURSUANT TO

THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, ADOPTING A

STATEMENT OF OVERRIDING CONSIDERATIONS, CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT (SCH # 2019110418), AND ADOPT ING

A MITIGATION MONITORING AND REPORTING PROGRAM

WHEREAS, the Hesperia Commerce Center II project would consist of the construction of a 3,745,429 square foot distribution center and industrial park on 194.8 gross acres. The project includes the construction of three industrial/warehouse buildings with associat ed office spaces, surface parking and loading areas. The northwesternmost building (referred to as Building 1) is proposed to be 1,567,317 square feet; the southernmost building (referred to as Building 2) is proposed to be 2,065,987 square feet; and the n ortheastern most building (referred to as Building 3) would be 112,125 square feet. A tentative parcel map has also been filed to rearrange the four existing parcels into four new parcels that generally follow the alignment of the future buildings. In addition, a Development Agreement (DA) is proposed that would among other things, allow the CUP to be effective for 12 years initially, with a provision to allow an automatic 8-year extension.

WHEREAS, the Project would be accessible to US Highway 395 and ultimately Interstate 15 and would promote the City's economic development by creating approximately 3,134 jobs for the citizens of Hesperia and surrounding communities, would increase the City's tax base, would fulfill the growing demand for distribution and light industrial uses in the region, and would develop the land to the highest and best allowable use that is compatible with the City's General Plan, and Main Street and Freeway Corridor Specific Plan; and

WHEREAS, pursuant to the California Environmenta l Quality Act ("CEQA") (Public Resources Code $ 21000 et. seq,) and the State CEQA Guidelines (14 CCR $ 15000 et. seq.), the City of Hesperia is the lead agency for the Project as the public agency with general gove rnmental powers; and

WHEREAS, the City of Hesperia, as lead agency, prepared an initial study, from which it was determined that an Environmental Impact Report ("E IR') should be prepared pursuant to CEQA in order to analyze all adverse environmental impacts of the Project; and

WHEREAS, a Notice of Preparation (NOP") and the Initial Study identifying the scope of environmental issues were distributed to numerous state, federal, and local agencies and organizations from November 21 , 201 9 thru December 20, 2019 , for a period of 30 days, pursuant to State CEQA Guidelines sections 15082(a), 15103, and 15375. Eight comment letters were received during the Initial Study/NOP comment period and were incorporated into the Draft EIR ("DEIR"); and

WHEREAS, a public scoping meeting for the EIR was he ld at Hesperia City Hall on December 12, 2019; and

WHEREAS, the City completed the DEIR and circulated it with the Notice of Availability ('NOA") to affected public agencies and interested members of the public for a 45-day public period from

Resolution No. 2022-37

September 16, 2020 thru October 31, 2020. The public review period was subsequently extended until November 16, 2020; and

WHEREAS, the Planning Commission duly noticed and conducted a public hearing on April 14, 20 22, at which time all interested parties were provi ded the opportunity to give testimony for or against the issue; and
WHEREAS, the City Council duly noticed and conducted a public hearing on May 17, 2022, at which time all interested parties were provided the opportunity to give testimony for or against the issue; and
WHEREAS, as contained herein, the City has endeavored in good faith to set forth the basis for its decision on the Project; and
WHEREAS, the EIR for the Project reflects the City’s independent judgment. The City has exercised independent judgment in accordance with Public Resources Code Section 21082.1(c)(3) in directing the consultant in the preparation of the EIR. The City has independently reviewed and analyzed the EIR and accompanying studies and finds that the report reflects the independent judgment of the City for the purposes of making decisions on the merits of the project.

WHEREAS, all the requirements of CEQA, the State CEQA G uidelines, and the City’s Local CEQA Guidelines have been satisfied in the EIR, which is sufficiently detailed so that all of the significant environmental effects of the Project have been adequately evaluated; and WHEREAS, the EIR prepared in connection with the Project sufficiently analyzes both the feasible mitigation measures necessary to avoid or substantially lessen the Project’s environmental impacts and a range of feasible alternatives capable of eliminating or reducing these effects in accordance with CEQA, the State CEQA Guidelines, and the City’s Local CEQA Guidelines.

NOW THEREFORE, BE IT RESOLVED BY THE CITY OF HESPERIA CITY COUNCIL AS FOLLOWS:

Section 1. The City Council hereby specifically finds that all of the facts set forth in this Resolution are true and correct.

Section 2. Based upon substantial evidence presented to the City Council during the above referenced May 17, 2022 hearing, including public testimony and written and oral staff reports, this Council specifically finds as follows:
1) The City Council has independently reviewed, analyzed and considered the Final EIR and all written documentation and public comments prior to making a decision on the proposed Project; and
2) The Final EIR was prepared and completed in compliance with the pro visions of CEQA, the State CEQA Guidelines, and the City’s Local CEQA Guidelines; and 3) The information and analysis contained in the Final EIR reflects the City’s independent judgment as to the environmental consequences of the proposed Project; and
4) The doc uments and other materials, including without limitation, staff reports, memoranda, maps, letters and minutes of all relevant meetings, which constitute the

Resolution No. 2022-37

administrative record of proceedings upon which the City Council’s decision is based are located at the City of Hesperia, Planning Division, 9700 Seventh Avenue, Hesperia, CA 92345. The custodian of the records is the Planning Division.

Section 3. That on the basis of the evidence contained in the administrative record of the Final EIR, the City Council finds based on the information submitted the following conclusion of the public comment period on the Draft EIR, following the consultant’s responses thereto, there is no significant new information concerning the Project’s environmental effects, f easible mitigation measures, or feasible project alternatives; therefore there is no need or requirement to recirculate the EIR for additional publi c comment.

Section 4. That the City Council of the City of Hesperia hereby certifies the Final EIR.

Section 5. Exhibit A (Facts, Findings and Statement of Overriding Considerations) and Exhibit B (Mitigation Monitoring and Reporting Program) of this Resolution provide findings required under Section 15091 of the State CEQA Guidelines for significant effects of t he Project. Exhibit A of this Resolution provides the findings required under Section 15093 of the State CEQA Guidelines relating to the acceptable adverse impacts of the Project due to overriding considerations. The City has balanced the economic, legal, social, technological, and other benefits of the Project against the unavoidable environmental risks that may result, and finds that the specific economic, legal, social, technological, and other benefits outweigh the unavoidable adverse environmental effects. Therefore, the City Council hereby adopts the Facts, Findings and Statement of Overriding Considerations attached hereto as Exhibit A.

Section 6. Pursuant t o Public Resources Code Section 21081.6, the City Council hereby approves the Mitigation Monitoring and Reporting Program attached as Exhibit B to this Resolution and requires that the Project to comply with the mitigation measures contained therein. The City Council finds that these mitigation measures are fully enforceable on the Project and shall be binding upon the City and affected parties.

ADOPTED AND APPROVED on this 17th day of May 2022.

__________________________________ _______________________________ Brigit Bennington, Mayor

ATTEST:

_________________________________________
Melinda Sayre, City Clerk

EXHIBIT A- FINDINGS OF FACT AND STATEMENT OF OVERRIDING CONSIDERATION Attachment 2

Findings of Fact and Statement of Overriding Considerations Hesperia Commerce Center II EIR
SCH No. 2019110418
Prepared for:

City of Hesperia, Planning Department
9700 Seventh Avenue
Hesperia, California 92645

Prepared by:

38 North Marengo Avenue
Pasadena, California 91101

MARCH 2022

Printed on 30% post-consumer recycled material.

12122
i March 2022
Table of Contents
SECTION PAGE NO.
1 INTRODUCTION ................................ ................................ ................................ ................................ ............. 1

1.1 Purpose ................................................................................................................................................... 1

1.1.1 Record of Proceedings ............................................................................................................. 2

1.1.2 Custodian and Location of Records ......................................................................................... 3 2 CEQA FINDINGS OF INDEPENDENT JUDGEMENT ................................ ................................ ......................... 5

2.1 Independent Review and Analysis ......................................................................................................... 5

2.2 Impacts Determined to Be Significant and Unavoidable ..................................................................... 5

2.2.1 Air Quality .................................................................................................................................. 6

2.2.2 Greenhouse Gas Emissions .................................................................................................. 15

2.2.3 Noise ....................................................................................................................................... 18

2.2.4 Transportation ........................................................................................................................ 21

2.3 Impacts Determined to Be Less Than Significant with Mitigation .................................................... 25

2.3.1 Aesthetics ............................................................................................................................... 26

2.3.2 Air Quality ............................................................................................................................... 32

2.3.3 Biological Resources ............................................................................................................. 33

2.3.4 Cultural Resources ................................................................................................................ 47

2.3.5 Geology and Soils .................................................................................................................. 52

2.3.6 Hazards and Hazardous Materials ....................................................................................... 53

2.3.7 Tribal Cultural Resources ...................................................................................................... 58

2.4 Impacts Determined to Be Less Than Significant ............................................................................. 59

2.4.1 Aesthetics ............................................................................................................................... 60

2.4.2 Agriculture and Forestry Resources ...................................................................................... 61

2.4.3 Air Quality ............................................................................................................................... 62

2.4.4 Biological Resources ............................................................................................................. 64

2.4.5 Energy ..................................................................................................................................... 66

2.4.6 Geology and Soils .................................................................................................................. 68

2.4.7 Greenhouse Gas Emissions .................................................................................................. 71

2.4.8 Hazards and Hazardous Materials ....................................................................................... 72

2.4.9 Hydrology and Water Quality ................................................................................................. 73

2.4.10 Land Use ................................................................................................................................ 82

2.4.11 Mineral Resources ................................................................................................................. 84

2.4.12 Noise ....................................................................................................................................... 84

2.4.13 Population and Housing ........................................................................................................ 88

2.4.14 Public Services ....................................................................................................................... 89

2.4.15 Recreation .............................................................................................................................. 92

2.4.16 Transportation ........................................................................................................................ 92

FINDINGS OF FACT, HESPERIA COMMERCE CENTER II EIR, SCH NO. 2019110418 12122
ii March 2022

2.4.17 Utilities and Service Systems ................................................................................................ 95

2.4.18 Wildfire ................................................................................................................................. 102 3 FINDINGS ON PROJECT ALTERNATIVES ................................ ................................ ................................ .... 109

3.1 Alternatives Considered and Eliminated During the Scoping/Project Planning Process .............. 109

3.2 Alternatives Selected for Further Analysis ....................................................................................... 111

3.2.1 Alternative 1: No Project/No Development Alternative ..................................................... 111

3.2.2 Alternative 2: No Project/Other Development Project Alternative ....................................... 113

3.2.3 Alternative 3: Reduced Development Intensity Alternative ............................................... 114

3.2.4 Environmentally Superior Alternative ................................................................................. 118 4 GENERAL CEQA FINDINGS ................................ ................................ ................................ ........................ 119

4.1 Findings Regarding Recirculation ..................................................................................................... 119

4.2 Legal Effects of Findings ................................................................................................................... 120 5 STATEMENT OF OVERRIDING CONSIDERATIONS ................................ ................................ ...................... 121 6 CONCLUSION ................................ ................................ ................................ ................................ ............. 125 7 REFERENCES CITED ................................ ................................ ................................ ................................ .. 127

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1 Introduction
This statement of Findings of Fact (Findings) addresses the environmental effects associated with the proposed Hesperia Commerce Center II Project (project), as described in the Environmental Impact Report (EIR). These Findings are made pursuant to the California Environmental Quality Act (CEQA) (California Public Resources Code, Section 21000 et seq.), specifically California Public Resourc es Code, Sections 21081, 21081.5, and 21081.6, and the CEQA Guidelines (14 CCR 15000 et seq.), specifically Sections 15091 and 15093. The EIR examines the full range of potential effects of construction and operation of the project and identifies standard mitigation practices that could be employed to reduce, minimize, or avoid those potential effects.

1.1 Purpose
California Public Resources Code, Section 21081, and CEQA Guidelines Section 15091 require that the lead agency, in this case the City of Hesperia (City), prepare written findings for identified significant effects, accompanied by a brief explanation of the rationale for each finding. Specifically, CEQA Guidelines Section 15091 states, in part, that:
a) No public agency shall approve or carry out a project for which an EIR has been certified which identifies one or more significant environmental effects of the project unless the public agency makes one or more written findings for each of those significant effects, accompanied by a brief explanation of the rationale for each finding. The possible findings are:
1) Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as identified in the final EIR. 2) Such changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the finding. Such changes have been adopted by such other agency or can and should be adopted by such other agency. 3) Specific economic, legal, social, technological, or other considerations, including provision of employment opportunities for h ighly trained workers, make infeasible the mitigation measures or project alternatives identified in the final EIR.

In accordance with California Public Resource Code, Section 21081, and CEQA Guidelines Section 15093, whenever significant effects cannot be mitigated to below a level of significance, the decision ‐making agency is required to balance, as applicable, the benefits of the project against its unavoidable environmental risks when determining whether to approve the project. If the benefits of a pro ject outweigh the unavoidable adverse environmental effects, the adverse effects may be considered “acceptable.” In that case, the decision -making agency may prepare and adopt a Statement of Overriding Considerations (SOC), pursuant to the CEQA Guidelines.

Section 15093 of the CEQA Guidelines state that:
a) CEQA requires the decision-making agency to balance, as applicable, the economic, legal, social, technological, or other benefits of a proposed project against its unavoidable environmental risks when determining whether to approve the project. If the specific economic, legal, social, technological, or other benefits of a proposed project outweigh the unavoidable adverse environmental effects, the adverse environmental effects may be considered "acceptable." b) When the lead agency approves a project which will result in the occurrence of significant effects which are identified in the final EIR but are not avoided or substantially lessened, the

FINDINGS OF FACT, HESPERIA COMMERCE CENTER II EIR, SCH NO. 2019110418 12122
2 March 2022
agency shall state in writing the specific reasons to support its action based on the Final EIR and/or other information in the record. The statement of overriding considerations shall be supported by substantial evidence in the record.
c) If an agency makes a statement of overriding considerations, the statement should be included in the record of the project approval and should be mentioned in the notice of determination. This statement does not substitute for, and shall be in addition to, findings required pursuant to Section 15091.

The Final EIR identified potentially significant effects that could result from the project. The City finds that the inclusion of certain mitigation measures as part of the approval of the project will reduce most, but not all, of those effects to less -than‐significant levels. Those impacts that are not reduced to less ‐than‐significant levels are identified and overridden due to specific project benefits (see Section 5, Statement of Overriding Considerations).

As required by CEQA, the City, in adopting these Findings, also adopts a Mitigation Monitoring and Reporting Program (MMRP) for the project. The City finds that the MMRP, which is incorporated by reference and made a part of these Findings, meets the requi rements of California Public Resources Code, Section 21081.6, by providing for the implementation and monitoring of measures intended to mitigate potentially significant effects of the project.

In accordance with the CEQA Statutes and Guidelines, the City adopts these Findings for the project. Pursuant to California Public Resources Code, Section 21082.1(c)(3), the City also finds that th ese Findings reflect the City’s independent judgment as the lead agency for the project.

1.1.1 Record of Proceedings
For the purposes of CEQA and the Findings herein set forth the record of proceedings for the project and consists of those items listed in CEQA Section 21167.6(e), along with other miscellaneous items contained within the City’s files that are relevant to th e consideration of the project. The record of proceedings for the City’s decision on the project consists of the following documents, at a minimum and without limitation, which are incorporated by reference and made part of the record supporting these Findings:
• The Notice of Preparation, Notice of Availability, and all other public notices issued by the City in conjunction with the project
• The Draft EIR for the project and all technical appendices and documents relied upon or incorporated by reference • All written comments submitted by agencies, organizations, or members of the public during the public review comment period on the Draft EIR and the City’s responses to those comments • The Final EIR for the project
• The MMRP for the project
• All reports, studies, memoranda, maps, staff reports, or other planning documents relating to the project prepared by the City or consultants to the City with respect to the City’s compliance with the requirements of CEQA and with respect to the City’s action on the project • All documents submitted to the City by other public agencies or members of the public in connection with the Draft EIR
• Any minutes and/or verbatim transcripts of all information sessions, public meetings, and public hearings held by the City in connection with the project

FINDINGS OF FACT, HESPERIA COMMERCE CENTER II EIR, SCH NO. 2019110418 12122
3 March 2022
• Any documentary or other evidence submitted to the City at such information sessions, public meetings, and public hearings
• All resolutions adopted by the City regarding the project, and all staff reports, analyses, and summarie s related to the adoption of those resolutions
• Matters of common knowledge to the City, including, but not limited to federal, state, and local laws and regulations • Any documents expressly cited in these Findings, in addition to those cited above; and any other materials required for the record of proceedings by CEQA Section 21167.6(e)

1.1.2 Custodian and Location of Records
The documents and other materials that constitute the Record of Proceedings for the City’s actions related to the project are located at the City of Hesperia, Planning D epartment, 9700 Seventh Avenue , Hesperia, California 92645. The City is the custodian of the Record of Proceedings for the project.

FINDINGS OF FACT, HESPERIA COMMERCE CENTER II EIR, SCH NO. 2019110418 12122
4 March 2022

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12122
5 March 2022
2 CEQA Findings of
Independent Judgement

2.1 Independent Review and Analysis
Under CEQA, the lead agency must (1) independently review and analyze the EIR; (2) circulate draft documents that reflect its independent judgment; (3) as part of the certification of an EIR, find that the report or declaration reflects the independent judgment of the lead agency; and (4) submit copies of the documents to the State Clearinghouse if there is state agency involvement or if the project is of s tatewide, regional, or area-wide significance (California Public Resources Code, Section 21082.1[c]).

This Findings reflects City’s independent judgment. The City has exercised independent judgment in accordance with CEQA Section 21082.1(c)(3) in retaining its own environmental consultant in the preparation of the EIR, as well as reviewing, analyzing and revising material prepared by the consultant.

Having received, reviewed, and considered the information in the Final EIR, as well as any and all other information in the record, the City hereby makes findings pursuant to and in accordance with CEQA Sections 21081, 21081.5, and 21081.6.

2.2 Impacts Determined to Be Significant
and Unavoidable
This section identifies the significant unavoidable impacts that require a statement of overriding considerations to be issued by the City, pursuant to Section 15093 of the CEQA Guidelines, if the project is approved. Based on the analysis contained in the EIR, the following impacts have been determined to fall within the “significant unavoidable impacts” category:
• Air Quality
o Applicable air quality plan
o Cumulatively considerable net increase of criteria pollutants • Long-term operational impacts
• Health effects of criteria air pollutants
o Expose sensitive receptors to substantial pollutant concentrations • Criteria air pollutant emissions and associated pollutant concentrations o Cumulative air quality impacts
• Greenhouse Gas Emissions
o Generation of greenhouse gas emissions
o Cumulative greenhouse gas impacts
• Noise
o Increase in noise levels
o Cumulative noise impacts