HESPERIA CITY COUNCIL
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
HOUSING AUTHORITY
COMMUNITY DEVELOPMENT COMMISSION
WATER DISTRICT
Meeting Agenda
Tuesday, October 18, 2022
Closed Session - 5:00 PM
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
Pam K. Lee, 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.
B
rigit 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:
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ublic 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.
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October 18, 2022City Council Meeting Agenda
REGULAR MEETING AGENDA
HESPERIA CITY COUNCIL
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
HESPERIA HOUSING AUTHORITY
HESPERIA COMMUNITY DEVELOPMENT COMMISSION
HESPERIA WATER DISTRICT
9700 7th Avenue, Council Chambers, Hesperia, CA 92345
As a courtesy, please silence your cell phones and other electronic devices while the meeting is in session. Thank you.
Prior to action of the Council, any member of the audience will have the opportunity to address the legislative body on any item listed on the agenda, including those on the Consent Calendar.
Individuals wishing to speak during General Public Comments or on a particular numbered item must submit a speaker slip to the City Clerk with the agenda item noted. Speaker slips should be turned in prior to the public comment portion of the agenda or before an agenda item is discussed. Comments will be limited to three minutes for General Public Comments, Consent Calendar items and New Business items. Comments are limited to five minutes for Public Hearing items.
In compliance with the Brown Act, the City Council may not discuss or take action on non-agenda items or engage in question and answer sessions with the public. The City Council may ask brief questions for clarification; provide a reference to staff or other resources for factual information and direct staff to add an item to a subsequent meeting.
CLOSED SESSION - 5:00 PM
Roll Call
Mayor Brigit Bennington
Mayor Pro Tem William J. Holland
Council Member Larry Bird
Council Member Cameron Gregg
Council Member Rebekah Swanson
Conference with Legal Counsel - Potential Litigation:
Government Code Section 54956.9(d)2
1. One (1) Case
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
Conference with Real Property Negotiators – Property Negotiations Government Code Section – 54956.8
1. Negotiating Parties: City of Hesperia and XMG Holdings LLC Location: APN 3039-441-20
October 18, 2022City Council Meeting Agenda
Under Negotiation: Price and Terms
CALL TO ORDER - 6:30 PM
A. Invocation
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
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.
ANNOUNCEMENTS/PRESENTATIONS
1. Presentation on the Hesperia Rodeo Event by James Blocker of Hesperia Area Recreation District (HARD) Foundation
JOINT CONSENT CALENDAR
1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, October 4, 2022.
Recommended Action:
It
is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, October 4, 2022.
Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2022-10-04Attachments:
October 18, 2022City Council Meeting Agenda
2. Warrant Run Report (City - Successor Agency - Housing Authority - Community Development Commission - Water)
Recommended Action:
It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.
Staff Person: Director of Administrative Services Casey Brooksher SR Warrant Run 10-18-2022
Attachment 1 - Warrant Run
Attachments:
3. Treasurer’s Cash Report for the unaudited period ended July 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 10-18-2022
Attachment 1 - Treasurer's Report
Attachments:
4. 5.
Network Switch Replacement
Recommended Action:
It is recommended that the City Council authorize the City Manager to enter into an agreement with Pricon INC to purchase ten (10) network switches and associated licensing & peripherals in an amount not-to-exceed $83,649, to replace the City’s aging network switches with current and supported models.
Staff Person: Director of Administrative Services Casey Brooksher Attachments: SR Network Switch Replacement 10-18-2022
Accept the Hesperia Park and Ride Facility Project (CO 6523) Recommended Action:
It is recommended that the City Council accept the Hesperia Park and Ride Facility project completed by Vance Corporation (Construction Order No. 6523); authorize staff to record a "Notice of Completion;" and release all withheld retention after 35 days from the date of recordation.
Staff Person: Senior Management Analyst Jamie Carone
SR Accept Hesperia Park and Ride Facility Project 10-18-2022 Attachment 1 - Notice of Completion
Attachments:
6. Adopt Resolution Declaring Property Owned by the City of Hesperia Community
October 18, 2022City Council Meeting Agenda
Development Commission as “Exempt Surplus Land”
Recommended Action:
It
is recommended that the City Council and Hesperia Community Development Commission adopt Resolution No. CDC 2022-02, declaring APN 0405-373-03 owned by the Hesperia Community Development Commission “Exempt Surplus Land” pursuant to government code 54221. This action is being performed in preparation for sale to the Hesperia Recreation and Park District at a later date.
Staff Person: Economic Development Manager Victor Knight SR Declare Property owned by the City Surplus & Exempt Surplus 10-18-2022 Resolution CDC 2022-02
Attachment 2 - Exhibit A Exempt Surplus Property
Attachments:
7. Eagle Hesperia Housing project Confirmation of Subordination in connection with $2,000,000 of Additional Bonds issued by Eagle Hesperia 55, L.P.
Recommended Action:
It
is recommended that the Board of Directors of the Hesperia Housing Authority consider approving the Confirmation of Subordination Agreement in connection with $2,000,000 of additional bonds being funded related to the Eagle Hesperia Affordable Housing Project.
Staff Person: City Attorney Pam K. Lee
SR Eagle Hesperia Housing Project 10-18-2022
Attachment 1 - Confirmation of Subordination Agreement
Attachments:
NEW BUSINESS
8. Cannabis Tax Rate Resolution
Recommended Action:
It
is recommended that the Council review the report and resolution, then consider adopting Resolution No. 2022-74 revising the percentage of tax to be assessed on commercial cannabis businesses.
Staff Person: City Attorney Pam K. Lee
SR Cannabis Tax Rate 10-18-2022
Resolution 2022-74
Attachments:
9. Repeal of Commercial Cannabis Program
Recommended Action:
It
is recommended that the Council review the report and resolution, then consider adopting Resolution No. 2022-75 prohibiting the renewal of any existing cannabis dispensary delivery permits and directing staff to draft ordinances necessary to repeal the commercial cannabis program.
October 18, 2022City Council Meeting Agenda
Staff Person: City Attorney Pam K. Lee
SR Repeal of Commercial Cannabis Program 10-18-2022
Resolution 2022-75
Attachments:
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, Erin Baum, Assistant City Clerk of the City of Hesperia, California do hereby certify that I caused to be posted the foregoing agenda on Wednesday, October 12, 2022 at 5:30 p.m. pursuant to California Government Code §54954.2.
_____________________________
Erin Baum,
Assistant City Clerk
Documents produced by the City and distributed less than 72 hours prior to the meeting regarding items on the agenda will be made available in the City Clerk's Office during normal business hours.
THIS PAGE LEFT INTENTIONALLY BLANK
City of Hesperia
City of Hesperia
Meeting Minutes - Draft
City Council
Tuesday, October 4, 2022 6:30 PM
REGULAR MEETING AGENDA
HESPERIA CITY COUNCIL
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
HESPERIA HOUSING AUTHORITY
HESPERIA COMMUNITY DEVELOPMENT COMMISSION
HESPERIA WATER DISTRICT
CLOSED SESSION - 5:30 PM
Roll Call
Present: 5 - Council Member Bird, Council Member Swanson, Mayor Pro Tem Holland, Council Member Gregg and Ma
yor Bennington
Conference with Real Property Negotiators – Property Negotiations - Government Code Section – 54956.8
1. Negotiating Parties: City of Hesperia and Chi-Chu Chen Trust, Location: APN 3039-431-01 Lift Station Under Negotiation:
Price and Terms
CALL TO ORDER - 6:30 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call
Present: 5 - Council Member Bird, Council Member Swanson, Mayor Pro Tem Holland, Council Member Gregg and Ma
yor Bennington
D. A genda Revisions and Announcements by City Clerk
E.
Closed Session Reports by City Attorney
ANNOUNCEMENTS/PRESENTATIONS
1. Presentation of Certificate of Recognition to the Hesperia USA HD Football Club for winning a cham pionship soccer tournam
ent.
City Council Chambers
9700 Seventh Ave.
Hesperia CA, 92345
City Council Chambers
9700 Seventh Ave.
Hesperia CA, 92345
City of Hesperia
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Daniel Krist commented on Community issues.
Bob Nelson commented on speaking limits.
JOINT CONSENT CALENDAR
A motion was made by Holland, seconded by Swanson, that the Joint Consent Calendar be approved. The motion carried by the following vote:
Aye: 5 - Bird, Swanson, Holland, Gregg and Bennington
Nay: 0
1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, September 20, 2022.
Recommended Action:
It is recommended that the City Council approve the Draft Minutes from the Regular Meeting
held
Tuesday, September 20, 2022.
Sponsors: Assistant Cit
y 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, Succes sor Agency to the Hesperia Co
mmunity Redevelopment Agency, Hesperia Housing Authority, Comm unity Developm
ent Commission, and Water District.
Sponsors: Director of Administrative Services Casey Brooksher
3. Contract Amendment with TKE Engineering, Inc for Inspection Services for the Construction of the Hesperia Park
and Ride Facility
Recommended Action:
It is recommended that the City Council authorize the City Manager to amend the agreement between the City of Hesperia and TKE
Engineering, Inc (TKE) in the amount of $19,979 for a total not-to-exc eed contract am
ount of $64,979, to include additional construction inspection services.
Sponsors: Management Analyst Jamie Carone
4. Public Works Asset Management Software (Cityworks) Maintenance Agreement 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 three-year software license and maintenance agreement with Azteca
Systems, Inc. in an amount not-to-exceed of $129,875.
Sponsors: Director of Public Works Jeremy McDonald
5. Consideration of the Biennial Update of the City’s Statement of Economic Interests Designated Employee
City of Hesperia
Filing Roster
Recommended Action:
It is recommended that the City Council and Water District Board adopt the Fair Political Practices Commission required biennial up
date of the City’s Statement of Economic Interest Employee Filing Roster (Conflict-of-Interest Code) for designated employees through adoption of Joint Resolution No. 2022-69 and HWD 2022-15.
Sponsors: Director of Government Services/City Clerk Melinda Sayre
6. Backup Solution replacement
Recommended Action:
It is recommended that the City Council authorize the City Manager to enter into a three-year agreem ent with Xentegra Gov LLC in a
n amount not-to-exceed $143,077 to replace the City’s backup solution with current and supp
orted technology solutions.
Sponsors: Director of Administrative Services Casey Brooksher and IT Manager Michael Assumma
PUBLIC HEARING
7. Site Plan Review SPR22-00007; Applicant: Lamar Advertising Company; APN: 0357-065-05 Recommend
ed Action:
It is recommended that the City Council adopt Resolution No. 2022-71 approving a billboard rel ocation agreement with Lam
ar Advertising to facilitate the removal of three billboard sign faces and the construction of
one digital billboard display.
Sponsors: Associate Planner Edgar Gonzalez
A motion was made by Holland, seconded by Swanson, that this item be approved. The motion carried by th
e following vote:
Aye: 5 - Bird, Swanson, Holland, Gregg and Bennington
Nay: 0
NEW BUSINESS
8. Consideration of Second Amendment to Current City Manager Employment Agreement, and a Successor City Manager Employment Agreem
ent
Recommended Action:
It is recommended the City Council consider the second amendment to the Current City Manager Employ
ment Agreement, and a Successor City Manager Employment Agreement.
Sponsors: City Attorney Pam K. Lee
A motion was made by Holland, seconded by Gregg, that this item be approved. The motion carried by th
e following vote:
Aye: 5 - Bird, Swanson, Holland, Gregg and Bennington
Nay: 0
City of Hesperia
Meeting went into Recess
Meeting Reconvened
9. Capital Improvement Projects related to traffic congestion and associated concerns Recommended Action:
It is recommended the City Council receive and file information on Capital Improvement Projects related to traffic congestion and as
sociated concerns.
Sponsors: Assistant City Manager Rachel Molina
COUNCIL COMMITTEE REPORTS AND COMMENTS
Mayor Pro Tem commented on the political sign ordinance and asked that the ordinance be brought back by staff for consideration.
Council Member Swanson commented on attendance at the Today’s Woman foundation event, attendance at the Key game, the future attendance at an SBCTA meeting and a candlelight vigil for victims of domestic violence, and reminded everyone to donate blood.
Council Member Bird commented on the Key game, spirit week events prior to the game, his aunt, Eleanor Jean Chase’s, passing on September 25, attendance at upcoming VVTA special meeting, and his daughter's 28th birthday on Friday.
Council Member Gregg commented on the political sign ordinance, public commenters and meeting disruption, and reminded everyone to drive safely.
Mayor Bennington recognized Jon Dunbar, Allison Lee, Kelly Gregg, John Ohanian, and her parents in the audience, asked to recognize Julia Swanson at the next Council meeting, MDAQMD meeting attendance, attendance at a meet and greet with other high desert City Mayors, the upcoming State of the County meeting, Sun City Cruisers car show, reminded people to drive safely, thanked City staff and the Council, welcomed a student in the audience, and reminded people to adopt animals from the City shelter.
CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
None.
ADJOURNMENT
Meeting adjourned at 8:10 p.m. in honor of Eleanor Jean Chase. _____________________________
Erin Baum,
Assistant City Clerk
City of Hesperia
STAFF REPORT
DATE: October 18, 2022
TO: Mayor and Council Members
City Council, as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Commissioners, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Anne Duke, Deputy Finance Director
Fatima Plantillas, Accountant
SUBJECT: Warrant Run Report (City – Successor Agency – Housing Authority – Community Development Commission – Water)
RE
COMMENDED 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 September 10 , 2022 through September 23, 2022.
AT
TACHMENT(S)
1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $6,388,888.18 $268,819.07 $0.00 $6,657,707.25 Successor Agency 0.00 0.00 0.00 0.00
Housing Authority 1,876.55 181.05 0.00 2,057.60
Community Development Commission 0.00 0.00 0.00 0.00
Water 404,537.97 112,943.94 0.00 517,481.91
Totals $6,795,302.70 $381,944.06 $0.00 $7,177,246.76
* Includes debt service payments made via Automated Clearing House (ACH) electronic deposit of funds.
YEAR-TO PRIOR FY YTD
W/E W/E WARRANT DATE DATE
FUND # FUND NAME 9/16/2022 9/23/2022 TOTALS Wires TOTALS * TOTALS Accounts Payable
100 GENERAL 192,515.79$ 1,822,006.68$ 2,014,522.47$ - $ 9,714,880.97$ 7,301,277.20$ 200 HESPERIA FIRE DISTRICT -$ -$ -$ - $ -$ -$
204 MEASURE I - RENEWAL -$ 35,106.72$ 35,106.72$ - $ 157,053.52$ 52,465.97$ 207 LOCAL TRANSPORT-SB 325 -$ -$ -$ - $ 1,146.68$ 25,000.00$ 209 GAS TAX-RMRA -$ -$ -$ - $ -$ 67,468.24$
210 HFPD (PERS) -$ -$ -$ - $ 1,093,204.87$ 1,007,746.00$ 251 CDBG -$ 9,633.84$ 9,633.84$ - $ 35,696.80$ 391,012.85$ 254 AB2766 - TRANSIT -$ -$ -$ - $ -$ -$
256 ENVIRONMENTAL PROGRAMS GRANT 7,365.11$ -$ 7,365.11$ - $ 11,829.25$ 12,513.27$ 257 NEIGHBORHOOD STABILIZATION PROG -$ -$ -$ - $ -$ -$ 258 CDBG-CV CARES ACT -$ -$ -$ - $ -$ -$
260 DISASTER PREPARED GRANT -$ -$ -$ - $ -$ -$
262 SB 1383 LOCAL ASSISTANCE GRANT -$ -$ -$ - $ 5,000.00$ -$ 263 STREETS MAINTENANCE 13,325.78$ 42,091.38$ 55,417.16$ - $ 648,444.20$ 519,564.92$ 300 DEV. IMPACT FEES - STREET -$ -$ -$ - $ 2,721.18$ 32,543.33$ 301 DEV. IMPACT FEES - STORM DRAIN -$ -$ -$ - $ 17,460.50$ 21,919.50$ 302 DEV. IMPACT FEES - FIRE -$ -$ -$ - $ -$ -$
303 DEV. IMPACT FEES - POLICE -$ -$ -$ - $ -$ 17,048.00$ 304 DEV. IMPACT FEES - PUBLIC WKS. -$ -$ -$ - $ -$ -$ 306 DEV. IMPACT FEES - 2018-STREETS 1,741.63$ 1,050,452.69$ 1,052,194.32$ - $ 1,506,500.08$ 1,901.83$ 312 DIF 2018-POLICE FACILITIES -$ -$ -$ - $ -$ 6,888.17$ 313 DIF A-04 DRAINAGE -$ -$ -$ - $ -$ 959,049.00$ 396 DEVELOPMENT IMPACT -$ -$ -$ - $ -$ -$
399 FEMA-1203-DR (DISASTER) -$ -$ -$ - $ -$ -$
400 2004 STREETS -$ -$ -$ - $ -$ -$
401 CITY DEBT SERVICES -$ -$ -$ - $ -$ -$
402 WATER RIGHTS ACQUISITION -$ 1,090,323.17$ 1,090,323.17$ - $ 1,090,323.17$ -$ 403 2013 REFUNDING LEASE REV BONDS 655,055.62$ -$ 655,055.62$ - $ 655,055.62$ 632,972.25$ 501 CFD 91-3 BELGATE -$ -$ -$ - $ -$ -$
504 CITY WIDE STREETS - CIP 1,741.62$ 1,176,564.70$ 1,178,306.32$ - $ 2,626,689.57$ 67,537.16$ 509 CITY FACILITIES CIP -$ -$ -$ - $ -$ -$
800 EMPLOYEE BENEFITS 116,675.11$ 91,994.85$ 208,669.96$ - $ 2,179,324.21$ 1,784,920.70$ 801 TRUST/AGENCY 65,754.49$ 16,539.00$ 82,293.49$ - $ 315,533.86$ 856,339.48$ 802 AD 91-1 AGENCY -$ -$ -$ - $ -$ -$
804 TRUST-INTEREST BEARING -$ -$ -$ - $ 26,625.00$ 6,283.00$ 807 CFD 2005-1 -$ -$ -$ - $ 962,956.49$ 925,830.82$ 808 HFPD (TRANSITION) -$ -$ -$ - $ 317,384.59$ 369,875.18$ 815 PLAN REVIEW TRUST - FRONTIER -$ -$ -$ - $ -$ -$ CITY 1,054,175.15$ 5,334,713.03$ 6,388,888.18$ -$ 21,367,830.56$ 15,060,156.87$ 163 REDEVELOP OBLIG RETIREMENT-2018 -$ -$ -$ - $ 7,740,169.98$ 7,657,907.27$ SUCCESSOR AGENCY -$ -$ -$ -$ 7,740,169.98$ 7,657,907.27$ 370 HOUSING AUTHORITY 614.79$ 1,261.76$ 1,876.55$ - $ 4,248.77$ 3,894.38$ HOUSING AUTHORITY 614.79$ 1,261.76$ 1,876.55$ -$ 4,248.77$ 3,894.38$ 170 COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ - $ -$ -$ COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ 700 WATER OPERATING 181,946.47$ 124,184.09$ 306,130.56$ - $ 2,362,360.55$ 3,287,813.55$ 701 WATER CAPITAL -$ -$ -$ - $ 8,087.00$ 7,540.15$ 710 SEWER OPERATING 95,886.17$ 2,226.74$ 98,112.91$ - $ 1,243,787.25$ 931,413.62$ 711 SEWER CAPITAL -$ -$ -$ - $ 143,793.36$ 148,077.37$ 713 SEWER CAPITAL REHAB AND REPLACE -$ -$ -$ - $ -$ -$ 720 RECLAIMED WATER OPERATIONS -$ 294.50$ 294.50$ - $ 5,014.99$ 755.46$ WATER 277,832.64$ 126,705.33$ 404,537.97$ -$ 3,763,043.15$ 4,375,600.15$ ACCOUNTS PAYABLE TOTAL 1,332,622.58$ 5,462,680.12$ 6,795,302.70$ -$ 32,875,292.46$ 27,097,558.67$ REG. PAYROLL
City 268,819.07$ -$ 268,819.07$ - $ 1,624,302.41$ 1,431,826.29$ Housing Authority 181.05$ -$ 181.05$ - $ 1,094.13$ 745.24$ Water 112,943.94$ -$ 112,943.94$ - $ 668,190.81$ 603,753.95$ PAYROLL TOTAL 381,944.06$ -$ 381,944.06$ - $ 2,293,587.35$ 2,036,325.48$ City of Hesperia
WARRANT RUNS
09/10/2022-09/23/2022
*No payments were issued on July 1, 2022.
Attachment 1
City of Hesperia
STAFF REPORT
DATE: October 18, 2022
TO: Mayor and Council Members
City Council, Serving as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Commissioners, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Anne Duke, Deputy Finance Director
Jacob Weatherbie, Accountant
SUBJECT: Treasurer’s Cash Report for the unaudited period ended July 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 5 3646 (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 July 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
October 18, 2022
FUND VALUE
General Fund (100 & 800) 17,209,153.36
Pension Obligation Trust (105) 4,002,300.30
HFPD (PERS) (210) 2,123,474.13
AB27666 - Transit (254) 23,975.56
AB3229 Supplemental Law (255) 133,645.99
AD No. 91-1 (802) 373,479.67
Beverage Recycling Grant (256) 239,575.19
CFD 2005-1 (807) 1,616,242.72
HFPD Transition (808) 321,972.90
City Wide-Capital Projects (504) (2,863,769.44)
Community Dev Block Grant (251, 252, & 253) 178,017.03
American Rescue Plan Grant (261) 11,738,870.96
SB 1383 Local Assistance Grant (262) 136,474.44
Development Impact Fund (300-304) 5,603,125.53
Development Impact Fund 2018 (306-312) 13,101,044.46
Development Impact Fund A-04 Drainage (313) 58,437.98
Disaster (260) 44,287.87
Gas Tax Fund (205) 1,169,777.82
Gas Tax - RMRA (209) 2,656,769.96
Gas Tax Swap (206) 954,854.47
Local Transportation SB325 (207) 2,271,034.13
Measure I - Renewal (204) 7,843,677.71
Neighborhood Stabilization Prog (257) 3,191,602.81
Public Works Street Maint (263) 495,496.11
Trust Fund (801, 803-806, & 815) 2,010,727.66
2012 Water Rights Acquisition (402) 1,628,175.31
2013 Refunding Lease Rev Bonds (403) 1,874,614.74
TOTAL CITY FUNDS 78,137,039.37$
CITY OF HESPERIA
Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
October 18, 2022
FUND VALUE
RORF Retention - (163) 7,990,429.17$
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
FUND VALUE
Hesperia Housing Authority Fund (370) 3,346,939.36$
VVEDA Housing Authority (371) 1,826,700.84
TOTAL HOUSING AUTHORITY FUNDS 5,173,640.20$
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
October 18, 2022
VALUE
Water Operating (700) 9,112,884.34$
Water Capital (701) (2,927,914.72)
Water Capital Rehab and Replace (703) 1,925,645.29
Water Contamination Mitigation (704) 2,421,558.87
Sewer Operating (710) 12,674,551.55
Sewer Capital (711) 3,598,113.36
Sewer Capital Rehab and Replace (713) 742,552.26
Reclaimed Water Operations (720) (228,455.45)
TOTAL WATER FUNDS 27,318,935.50$
1 WATER
FUND
Institution/
Type of Investment Fiscal Agent
Investments under the direction of the City:
Interest
Rate
r Local Agency Investment Funds State-of Calif. ~ 90%
[ Local Bank Checking Accounts U.S. Bank • n/a •
Total Unaudited Investments under the direction of the City Investments under the direction of fiscal agents:
City of Hesperia
Investment Report
Unaudited
July 31, 2022
Date of
Purchase
Date of
Maturity
Par Value
at Maturity
Book
Value
Market
Value
31-Jul-22
31-Jul-22
Demand I$ 73,226,756.76 · 73,226,756.76 73,226,756.76 7 Demand 4,910,282.61 4,910,282.61 4,910,282.61
$ 78,137,039.37 $ 78,137,039.37 $ 78,137,039.37
ATTACHMENT 1
Account
Descrigtion
2012 Lease Revenue Bonds I US Bank
~
0.000% 31-Jul-22 1 Demand 14.33 14.33 14.33 1 2012 - Water Rights Revenue Fund 2012 Lease Revenue Bonds I US Bank 0.000% 31-Jul-22 Demand 1,454,610.82 1,454,610.82 2012 Lease Revenue Bonds I US Bank 0.000% 31-Jul-22 Demand 0.31 0.31
19.36--;--2013 Refunding Lease Revenue Bonds US Bank 0.000% 31-Jul-22 Demand 19.36 2013 Refunding Lease Revenue Bonds US Bank 0.000% 31-Jul-22 Demand 1,151,809.00 1,151,809.00 2013 Refunding Lease Revenue Bonds US Bank 0.000% 31-Jul-22 Demand 0.31 0.31 2014 CFD 2005-1 Refunding US Bank 0.000% 31-Jul-22 Demand 0.24 0.24 2014 CFD 2005-1 Refunding US Bank j 0.000% 31-Jul-22 Demand 37.02 37.02 ~- 2014 CFD 2005-1 Refunding US Bank 0.000% 31-Jul-22 Demand 1,430,620.66 1,430,620.66 2014 CFD 2005-1 Refunding US Bank 0.000% 31-Jul-22 Demand 23,930.50 23,930.50 ~ -
I
Deposits - Workers' Comp PERMA n/a 31-Jul-22 n/a 1,602,908.46 1,602,908.46 Sully Miller Retention - Ranchero US Bank 0.000% 31-Jul-22 n/a - - Total Unaudited Investments under the direction of fiscal agents $ 5,663,951.01 5,663,951.01 Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.
I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2J and (3), respectively. 1,454,610.82 2012 - Water Rights Reserve Fund
0.31 2012 - Water Rights Surplus Revenue Fund
19.36 . 2005 Civic Plaza - Revenue Fund
1,151,809.00 2005 Civic Plaza - Reserve Fund
0.31 2005 Civic Plaza - Surplus Rev Fund
0.24 2014 CFD 05-1 - Special Tax Fund
37.02 2014 CFD 05-1 - Bond Fund
1,430,620.66 2014 CFD 05-1 - Reserve Fund
23,930.50 2014 CFD 05-1 Administrative Expense Bonds
1,602,908.46_ GL 1352
- Ranchero Road - Escrow Account -
5,663,951.01
• Note: 2005 Certificates of Participation began in May 2005 for the finacing of the Civic Plaza. ~ vftgiaiiiise ~,or Accountant
City.xlsx
l .
1 I
◄
'
I
Successor Agency to the Redevelopment Agency
Investment Report
Unaudited
Juh 31, 2022
Issuer/ Interest Date of Date of Par Value Book
T}'.pe of Investment Institution Rate Purchase Maturity at Maturity Value Investments under the direction of the City:
Local Agency Investment Funds r State of Calif. 1.090% 31-Jul-22 1 ~mand $ 7,488,295.15 $ 7,488,295.15 Local Bank Checking Accounts U.S. Bank J n/a 31-Jul-22 Demand 502,134.02 502,134.02 Total Unaudited Investments under the direction of the City $ 7,990,429.17 $ 7,990,429.17 $ Investments under the direction of fiscal agents:
2018 Refunding Bonds
l
US Bank l 0.000% I 31-Jul-22 Demand 0.03 0.03
2018 Refunding Bonds US Bank 0.010% I 31-Jul-22 Demand 20.63 20.63 I ----
2018 Refunding Bonds US Bank 0.000% 31-Jul-22 Demand 1.00 1.00 Total Unaudited Investments under the direction of fiscal agents $ 21.66 $ 21.66 $ Please Note: All market value data is provided courtesy of the City's fiscal agent US Bank.
The 2018 Refunding Bonds are supported by a $9,799,443.76 bond insurance policy.
I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively. • Note: The 2005 and 2007 Series Bonds were refinanced to 2018 Series Bonds in November 2018.
Successor-RDA.xlsx
ATTACHMENT 2
Market Account
Value Description
7,488,295.15
502,134.02
7,990,429.17
0.03 2018A & 2018B - Debt Service Account
20.63 2018A & 2018B - Interest Account
1.00 2018A & 2018B - Reserve Account
21.66 , ..,.., .. ,or Accountant
TY.Qe of Investment
Hesperia Housing Authority
Investment Report
Unaudited
Issuer/
Institution
July 31, 2022
Interest Date of Date of
Rate Purchase Maturity
Investments under the direction of the City:
Par Value
at Maturi!Y
ATTACHMENT 3
Book
Value
Market
Value
Local Agency Investment Funds + State of California 1.090%_j___l1-Jul-22 Demand $ 4,848,518.65 f 4,848,518.65 4,848,518.65 Local Bank Checking Accounts U.S. Bank n/a l31-Jul-22 Demand 325,121.55 325,121.55 325,121.55 Total Unaudited Investments under the direction of the City $ 5,173,640.20 $ 5,173,640.20 $ 5,173,640.20 I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively. m7a Villasenor, Senior Accountant
Housing Authority.xlsx
Hesperia Community Development Commission
Investment Report
Unaudited
Tme of Investment
Issuer/
Institution
Investments under the direction of the City:
Local Agency Investment Funds State of California
Local Bank Checking Accounts U.S. Bank I
Julv 31, 2022 .,., ~
Interest
Rate
1.090%
n/a
Date of Date of
Purchase Maturity
31-Jul-22 1 Demand
31-Jul-22 Demand
$
Par Value
at Maturity
(562,925.08)
(37,747.42)
ATTACHMENT 4
Book
Value
(562,925.08)
(37,747.42)
Market
Value
(562,925.08)
(37,747.42)
Total Unaudited Investments under the direction of the City $ (600,672.50) $ (600,672.50) $ (600,672.50) I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively. nia Villasenor, Senior Accountant
Community Develop.xlsx
Hesperia Water District
Investment Report
Unaudited
July 31, 2022
ATTACHMENT 5
Issuer/
Institution
Interest Date of Date of Par Value
at Maturity
Book
Value
Market
Value Tyg_e of Investment Rate Purchase Maturity
Investments under the direction of the City:
Local Agency Investment Funds J· State of California 1.090% [ 31-Jul-22 Local Bank Checking Accounts U.S. Bank ___ n/a~ 1-Jul-21 Dem~ J l_5,602,160.78I 25,602,160.78 25,602,160.78
Demand 1,716,774.72 1,716,774.72 1,716,774.72
Total Unaudited Investments under the direction of the City $ 27,318,935.50 $ 27,318,935.50 $ 27,318,935.50 Investments under the direction of fiscal agents:
Account
Descrig_tion
Deposits - Workers' Come_ \ PERMA n/G 31-Ju1-22J n/a l 865,772.65 865,772.65 $
865,772.65 C 865,772.65 JGL 1352
Total Unaudited Investments under the direction of fiscal agents $ Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.
I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively. 865,772.65 $ 865,772.65
~~-
Vffamio · .., , Villasenor, Senior Accountant
Water.xlsx
_I
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City of Hesperia
STAFF REPORT
DATE: October 18, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Michael Assumma, Information Systems Manager
SUBJECT: Network Switch Replacement
RECOMMENDED ACTION
It is recommended that the City Council authorize the City Manager to enter into an agreement with Pricon INC to purchase ten (10) network switches and associated licensing & peripherals in an amount not-to-exceed $83,649, to replace the City’s aging network switches with current and supported models.
BACKGROUND
The City’s current network switches were purchased during Fiscal Year (FY) 2014-15 and have reached the end of the manufacturer’s recommended life cycle . Support and maintenance are no longer available to support the City’s current network switches, which has created additional burden when attempting to remediate increasingly frequent reliability issues. Newer network switches will have increased reliability, and technical support from the manufacturer, when necessary.
ISSUES/ANALYSIS
In response to the City’s aging network switching infrastructure, staff conducted an evaluation of network switching needs at each City location. This evaluation took into consideration the required number and speed of ports and the required overall network throughout, both now and over the next 5+ years . Staff then performed research to determine the make and model of switches that would provide the City with the best value to meet the requirements.
A Request for Bids (RFB) was prepared with the City’s re searched requirements. Professional services will not be needed with this purchase , as Information Technology (IT) Department staff can install th is equipment. Specific switch models were requested, as determined by staff research, along with software li censing and peripheral equipment required for the switches per staff’s planned installed configuration.
In order to ensure a competitive bidding process, the Finance Division distributed the RFB by posting to the City of Hesperia and Public Purchase websi tes and to eighteen vendors of IT products via email. During the bidding window, nine sealed bids were received and evaluated by city staff . The selected bid was the lowest /responsive bid that met all of the requested requirements.
Staff Report to the Mayor and City Council
Network Switch Replacement
October 18, 2022
The requested purchase will bring all of the City’s network switches , at all locations , under manufacturer support and up to current industry standards . Additionally, the newer models will provide enhanced, modern features for cybersecurity & network monitoring. After this purchase, all of the City’s network switches will be part of a single manufacturer’s ecosystem, resulting in streamlined management of City network infrastructure, and reduced vendor-relations overhead.
FISCAL IMPACT
Funding for this purchase has been included in the Adopted Fiscal Year (FY) 2022-23 Budget.
ALTERNATIVE(S)
1. Provide alternative direction to staff.
ATTACHMENT(S)
None
City of Hesperia
STAFF REPORT
DATE: October 18, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Jamie Carone, Senior Management Analyst
SUBJECT: Accept the Hesperia Park and Ride Facility Project (CO 6523)
RECOMMENDED ACTION
It is recommended that the City Council accept the Hesperia Park and Ride Facility project completed by Vance Corporation (Construction Order No. 6523); authorize staff to record a “Notice of Completion ;” and release all withheld retention after 35 days from the date of recordation.
BACKGROUND
In June of 2020, the City Council approved the Fiscal Year 2020-2021 Capital Improvement Program (CIP), which incl uded programming for the Hesperia Park and Ride Facility Project (Construction Order No. 6523). On May 18, 2021, the City Council awarded the contract to the lowest responsive/responsible bidder, Vance Corporation, in the amount of $953,795.30 with a 10% contingency in the amount of $ 95,379.53 for a total authorized contract amount of $1,049,174.83.
ISSUES/ANALYSIS
Construction was complete May 12, 2022. During construction, two change orders for additional work were requested by the City for a total of $75,258.26 in change orders. A balancing change order was also processed that amounted to a credit of $10,123.80. These change orders included the following: A delay in th e start of work due to SWPP amendments, an increase in the expansion of Joshua Street, additional riprap to the construction of the basin, additional sidewalk construction, survey corrections, replacement of plant types, the addition of stabilizer and decomposed granite to planter areas, and the installation of a traffic loop. The final contract total of $1,018,929.76 is within the Council authorized contract amount of $1,049,174.83. Upon approval, retention funds in the amount of $50,908.00 will be released to Vance Corporation.
Staff approved the contractor’s “Notice of Completion” indicating all work was complete and ready for final inspection on September 14, 2022. Staff recommends Council accept all work constructed under this contract and authorize staff to record a formal “Notice of Completion” with the County of San Bernardino clerk’s office and release all withheld retention funds 35 days after recordation.
Staff Report to Mayor and Council Members
Accept Construction of the Hesperia Park and Ride Facility (CO 6523) October 18, 2022
FISCAL IMPACT
Costs for the contract are noted below:
CO 6523 Hesperia Park and Ride Facility
Total Contract:
Budget: $ 1,049,174.83
Actual: $ 1,018,929.76
Balance: $ 30,245.07
ALTERNATIVE(S)
1. Provide alternative direction to staff.
ATTACHMENT(S)
1. Notice of Completion
RETURN TO:
City of Hesperia
Engineering Dept.
9700 Seventh Avenue
Hesperia.CA 92345
ATTN: Jamie Carone
CONTRACTOR'S
NOTICE OF COMPLETION
Date: '1 /t 1 /-z O 'Z '2...
Project: Hesperia Park and Ride Facility
C.O. No.: 6523
Owner: City of Hesperia
oration
I know of my own personal knowledge, and do hereby certify, that the work of the contract described above has been performed and materials used and installed in every particular, in accordance with, and in conformity to, the contract drawings and specifications.
The contract work is now complete in all parts and requirements, and ready for your final inspection.
I understand that neither the determination by the engineer/architect that the work is complete, nor the acceptance thereof by the Owner, shall operate as a bar to claim against the contractor under the terms of the guarantee provisions of the contract documents.
By:---------
Title: FIELD INSPECTOR
Inspection
Date: ------------
Jeff Lantosh
9/14/22
Attachment 1
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City of Hesperia
STAFF REPORT
DATE: October 18, 2022
TO: Mayor and Council Members
Chair and Commissioners, Community Development Commission FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Victor Knight, Economic Development Manager
SUBJECT: Adopt Resolution Declaring Property Owned by the Hesperia Community Development Commission as “Exempt Surplus Land”
RECOMMENDED ACTION
It is recommended that the City Council and Hesperia Community Development Commission adopt Resolution No. CDC 202 2-02, declaring APN 0405 -373-03 owned by the Hesperia Community Development Commission “Exempt Surplus Land” pursuant to government code 54221. This action is being performed in preparation for sale to the Hesperia Recreation and Park District at a later date.
BACKGROUND
Assembly Bill (AB) 1486 was approved by the legislature and signed by the Governor in 2019.
AB 1486 made various amendments to Government Code Sections 54220 et seq., concerning the process for disposition of surplus land by cities and other local agencies. These laws went into effect on January 1, 2020.
The new law require s the City to annual ly report on surplus lands held by the City to facilitate development of affordable housing around the State. AB 1486 states land “not necessary for the agency’s use” be declared “surplus” or “exempt surplus” as supported by written findings before a loca l agency can take any action to dispose of it consistent with an agenc y’s policies or procedures.
Agency’s use is defined as land being used or is planned to be used pursuant to a written plan adopted by the local agency’s governing board for agency work or operations, including, but not limited to : utility sites, watershed property, conservation purposes , exhibition, or buffer sites.
Agency’s use shall not include commercial or industrial uses or activities, including non - governmental retail, entertainm ent, or office development. Property disposed of for the sole purpose of investment or generation of revenue shall not be considered necessary for the agency’s use.
Any land that is declared “surplus” must be noticed for sixty days to other public agencies and prospective affordable housing developers that have registered with the state before the local agency may take any action to dispose of said property. Any eligible entities have 60 days to notify the City in writing of its intent to purchase or lease the land , after the 60 -day terms both parties have an additional 90 days to complete good faith neg otiations. If terms are not agreed upon within this 90 -day period, the property may be disposed of without further regard to the Surplus Lands Act.
Staff Report to the City Council and Hesperia Community Development Commission Adopt Resolution Declaring Property Owned by the Hesperia Community Development Commission as “Exempt Surplus” October 18, 2022
Exemptions or reasons for declaring land “exempt surplus” include but are not limited to the following:
Local Agency to Agency Surplus Land Transfer. Local agency surplus land is transferred to another local, state, or federal agency for the transferee agency’s use.
ISSUES/ANALYSIS
A) In compliance with state law, staff recommends that the City Council declare the following Hesperia Community Development Commission parcel as Exempt Surplus Land:
FISCAL IMPACT
There is no fiscal impact related to the declaration of the property as exempt surplus. If the City disposes of land in violation of the S urplus Land Act (SLA) after receiving a Notice of Violation (NOV) and fails to correct the violation within 60 days, an administrative penalty of 30% of the final sale price of the land sold in violation of the SLA, or 50% for each subsequent violation shall be invoiced by the Housing and Community Development to the City.
ALTERNATIVES
Provide alternative direction to staff.
ATTACHMENT
1. Resolution No. CDC 2022-02
2. Exhibit A – Exempt Surplus property detail Attachment 1 APN Street name Acres Zoning Property use SLA Exemption 0405-373-03 Maple Avenue 39.69 P-Park/Rec Public Park Local agency Transfer
RESOLUTION NO. CDC 2022-02
A RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF HESPERIA, CALIFORNIA, DECLARING ONE PROPERTY (APN 0405-373-03) AS “EXEMPT SURPLUS LAND” PURSUANT TO GOVERNMENT CODE SECTION 54220
WHEREAS, the Surplus Lands Act (“SLA”), effective January 1, 2020, requires that before a local agency takes any action to sell or lease its property, it must declare the property to be either “surplus land” or “exempt surplus land”; and
WHEREAS, under the SLA, Government code Section 54220-54233, surplus property is defined as land owned by any local agency no longer necessary for the agency's use; and WHEREAS, unless the land is exempt, the agency must give written notice of its availability to any local public entity, including schools and park districts, within whose jurisdiction the property is located, as well as housing sponsors that have notified the State Department of Housing and Community Development (HCD) of their interest in surplus property; and WHEREAS, the Community Development Commission (CDC) owns the following property that is exempt surplus land: APN 0405-373-03;
WHEREAS, the City intends to follow the provisions of the S urplus Lands Act (SLA) in the disposition of public lands and;
WHEREAS, the process described in the SLA should take place prior to taking any further actions regarding the disposition of the surplus land and;
WHEREAS, the declaration of exempt surplus land does not obligate the City to dispose of the land and, depending on the response to the notices and other factors, the City could still decide not to move forward with disposition of specific properties.
NOW THEREFORE, BE IT RESOLVED BY THE CITY OF HESPERIA, COMMISSIONERS OF THE COMMUNITY DEVELOPMENT COMMISSION AS FOLLOWS:
Section 1. That all of the facts set forth in this resolution are true and correct and are incorporated herein by reference.
Section 2. The Commission has independently reviewed the findings for the exempt surplus property owned by the Community Development Commission and hereby formally declares APN 0405-373-03 as “exempt surplus” pursuant to Government Code 54220.
Section 3. That City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
Resolution No. CDC 2022-02
Exempt Surplus Land APN 0405-373-03
ADOPTED AND APPROVED this 18th day of October 2022.
______________________________
Brigit Bennington, Commissioner
ATTEST:
____________________________
Erin Baum, Assistant City Clerk
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01071.0032/825302.1
City of Hesperia
STAFF REPORT
DATE: October 18, 2022
TO: Chair and Board Members, Hesperia Housing Authority FROM: Nils Bentsen, City Manager
BY: Pam Lee, City Attorney
SUBJECT: Eagle Hesperia Housing Project Confirmation of Subordination in connection with $2,000,000 of Additional Bonds issued by Eagle Hesperia 55, L.P.
RECOMMENDED ACTION
It is recommended that the Board of Directors of the Hesperia Housing Authority consider approving the Confirmation o f Subordination Agreement in connection with $2,000,000 of additional bonds being funded related to the Eagle Hesperia Affordable Housing Project.
BACKGROUND
In 2016, the Hesperia Housing Authority approved a Loan Agreement and other s upporting documents (Including a regulatory agreement for 55 years , plus an option f or an additional 25 years) for a new construction, affordable senior apartment project located in Hesperia with Eagle Hesperia 55, L.P. The project was completed in 2018. The project is an affordable housing 55+ senior project with 96 units on a portion of 9.41 acres; including 20 one - bedroom/one bath units at 50% Area Median Income (AMI), 44 one -bedroom/one bath units at 80% AMI and 32 two -bedroom/one and a half bath uni ts at 80% AMI. Amenities include full gating and fencing, clubhouse, computer center , fitness center, lap pool and jacuzzi, individual washers and dryers, patio balconies, ceiling fans, refrigerators, security cameras, and elevators.
The project consist s of four two -story buildings containing 24 units each. The project was financed with certain debt, including bonds (approx imately $8.2 Million), developer equity or debt and the $3,831,975 Agency Loan. The project was financed together with another Pro ject by the same developer in Yucaipa.
A few months ago, the Developer approached the Housing Authority to issue additional bonds of approximately $2,000,000 to repay the Developer some of the funds it spent on the project.
The project is located on the north side of Avenal Street and east of Mariposa Road.
ISSUES/ANALYSIS
The Develo per has requested that the Housing Authority , enter into a confirmation of subordination agreement with respect to its loan r elative to the other debt present on the property. The Subordination Agreement was executed in connection with the original bonds and now those documents are being supplemented for the extra $2,000,000 . The Successor Agency’s Loan Agreement does not deal with the situation and so staff is requesting the Housing Authority approve the Confirmation of Subordination Agreement. The Hous ing Authority, as successor housing authority for the Successor Agency, will receive approximately $312,000 from the proceeds of the additional bonds to use for housing projects. This will pay off part of the residual receipts loan.
Staff Report to the Board Members of the Hesperia Housing Authority Eagle Hesperia Loan Subordination
October 18, 2022
01071.0032/825302.1
FISCAL IMPACT
Eagle Hesperia estimates that the Housing Authority will receive approximately $312,000 on the bond upsize closing and appr oximately $3,750 monthly thereafter (representing 25% of the residual receipts).
ALTERNATIVE(S)
1. Provide alternative direction to staff.
ATTACHMENT(S)
1. Confirmation of Subordination Agreement.
W:\Working\16908\19\W0500262.DOCX
When Recorded Mail To:
Preferred Bank
9350 Flair Avenue, Suite 425
El Monte, California 91731
Attention: Note Department
(Space Above For Recorder’s Use)
CONFIRMATION OF SUBORDINATION AND INTERCREDITOR AGREEMENT
THIS CONFIRMATION OF SUBORDINATION AND INTERCREDITOR
AGREEMENT is entered into as of October 1, 2022 by EAGLE HESPERIA 55 LP, a California limited partnership ( "Borrower"); PREFERRED BANK , a California banking corporation ("Bank"); and HESPERIA HOUSING AUTHORITY , a public body, corporate and politic ("Authority").
RECITALS
A. On July 13, 2016 Borrower issued $8,160,000 of its Taxable Variable Rate Demand Multifamily Housing Revenue Bonds ( The Villas Hesperia Project ) 2016 Series A (as increased as described in Recital B below, the "Bonds"). The Bank issued its Irrevocable Letter of Credit dated July 13, 2016 to the trustee for the holders of the Bonds for the account of Borrower to support payments with respect to the portion of the Bonds then issued (as amended, the "Letter of Credit"). The Letter of Credit was issued and maintained by the Bank pursuant to the Reimbursement Agreement dated as of July 1, 2016 between the Issuer and the Bank (the "Original Reimbursement Agreement"). Borrower's obligations are secured by the Construction Deed of Trust, Security Agreement, Assignment of Rents and Fixture Filing dated as of July 1, 2016 executed by Borrower for the benefit of Bank, which was recorded on July 15, 2016 as Instrument No. 2016-0281596 in the real property records of San Bernardino County (as modified, the "Deed of Trust").
B. Concurrently with Borrower's issuance of the Bonds, Authority made a loan to Borrower in the amount of $3,831,975. Borrower's obligations with respec t to such loan are secured by the Deed of Trust, Assignment of Leases and Rents, Fixture Filing and Security Agreement; Request for Notice dated as of July 13, 2016 executed by Borrower for the benefit of Authority, which was recorded on July 15, 2016 as I nstrument No. 2016-0281597 in the real property records of San Bernardino County (the "Subordinate Deed of Trust").
C. Concurrently with entering into this Confirmation, (1) Borrower is issuing $2,000,000 of additional Bonds (such that the amount of th e Bonds will equal $ 10,160,000), (2) Bank is increasing the amount of the Letter of Credit to $10,290,271, (3) Borrower and Bank are amending, restating and replacing the Original Reimbursement Agreement by entering into the
W:\Working\16908\19\W0500262.DOCX
Amended and Restated Reimbursement Agreement (the "Amended and Restated Reimbursement Agreement"), and (4) Borrower and Bank are modifying the Deed of Trust.
D. In connection with Borrower and Bank entering into the Deed of Trust and Borrower and Authority entering into the Subordinate Deed of Trust, the Borrower, Bank and Authority also entered into the Subordination and Intercreditor Agreement dated as of July 1, 2016, which was recorded on July 15, 2016 as Instrument No. 2016-0281599 in the real property records of San Bernardino County (the "Subordination Agreement").
E. The parties wish to enter into this Confirmation to consent to and confirm the transactions referred to in Recital C above.
AGREEMENT
1. Defined Terms . Capitalized terms used without definition in this Confirm ation have the meanings given them in the Subordination Agreement.
2. Consent.
(a) Authority consents to: (i) Borrower's issuance of additional Bonds in the amount of $2,000,000; (ii) Bank's amending the Letter of Credit to increase its amount to $10,290,271; (iii) Bank and Authority's entering into the Amended and Restated Reimbursement Agreement; (iv) the "Guarantors" executing and delivering the "Guaranty" (as both terms are defined in the Amended and Restated Reimbursement Agreement); (v) Borrower and Bank entering into a Modification of Deed of Trust concurrently with this Confirmation ; and (vi) all of the other transactions and arrangements referred to in and contemplated by the Amended and Restated Reimbursement Agreement.
(b) Authority confirm s to Bank that Authority has received and reviewed complete, final copies of the Amended and Restated Reimbursement Agreement and all of the documents and matters contemplated by it.
3. Confirmation of Subordination.
(a) Authority confirms the Subordination Agreement to Bank and agrees that the subordination provided for in Section 1 of the Subordination Agreement remains in full force and effect.
(b) Bank confirms the Subordination Agreement to Authority and agrees that the subordination provided for in Section 4 of the Subordination Agreement remains in full force and effect.
4. Remaking Representations and Warranties. Borrower, Bank and Authority remake to each other as of the date of this Confirmation the representat ions and warranties set out in Section 9 of the Subordination Agreement.
5. Counterparts. This Confirmation may be executed in any number of original counterparts, each of which shall be deemed an original, but all of which when taken together shall
W:\Working\16908\19\W0500262.DOCX
constitute one instrument. The original signature page of any counterpart may be detached from such counterpart and attached to any other counterpart identical to such counterpart (except having additional signature pages executed by other parties to this Agreement) without impairing the legal effect of any such signature(s).
6. Entire Agreement . This Confirmation constitutes the entire agreement and understanding between and among the parties in respect of the subject matter of this Confirmation and supersede all prior agreements and understandings with respect to such subject matter, whether oral or written.
7. Severability. If any part of this Confirmation is declared invalid for any reason, such shall not affect the validity of the rest of the Confirmat ion. The other parts of this Confirmation shall remain in effect as if this Confirmation had been executed without the invalid part. The parties declare that they intend and desire that the remaining parts of this Confirmation continue to be effective without any part or parts that have been declared invalid. [Signature pages on the following pages.]
S-1
Signature Page to Confirmation of Subordination and Intercreditor Agreement W:\Working\16908\19\W0500262.DOCX
BANK: PREFERRED BANK,
a California banking corporation
By: __________________________
Nancy J. Pepper
Senior Vice President
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Signature Page to Confirmation of Subordination and Intercreditor Agreement W:\Working\16908\19\W0500262.DOCX
BORROWER: EAGLE HESPERIA 55 LP, a California limited partnership By: Eagle Hesperia 55 LLC, a Delaware limited liability company Its: Co-General Partner
By: Eagle Real Estate Investment Group LLC, a Delaware
limited liability company
Its: Manager
By: Eagle Real Estate Investment Manager LLC, a
Delaware limited liability company
Its: Manager
By: __________________________________
Randall J. Friend, Manager
By: AHA Inland MGP, LLC, a California limited liability company Its: Managing General Partner
By: Affordable Housing Access, Inc., a California nonprofit public benefit corporation
Its: Sole Member and Manager
By: ___________________________________
William W. Hirsch, Chief Executive Officer
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Signature Page to Confirmation of Subordination and Intercreditor Agreement W:\Working\16908\19\W0500262.DOCX
AUTHORITY: HESPERIA HOUSING AUTHORITY, a public body,
corporate and politic
By:
Nils Bentsen
Executive Director
ATTEST:
By:
Melinda Sayre
Authority Secretary
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
By:
Eric L. Dunn
Authority Counsel
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California )
County of Los Angeles )
On ____________________, before me, ____________________________, a Notary Public, personally appeared _______________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
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01071.0032/825302.1
City of Hesperia
STAFF REPORT
DATE: October 18, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Pam Lee, City Attorney
SUBJECT: Cannabis Tax Rate Resolution
RECOMMENDED ACTION
It is recommended that the Council review the report and resolution, th en consider adopting Resolution No. 2022-74 revising the percentage of tax to be assessed on commercial cannabis businesses.
BACKGROUND
The City currently provides for a cannabis regulatory program pursuant to Hesperia Municipal Code Chapter 3.18 (Canna bis Bus iness Tax), Chapter 5.50 (Business Licenses and Regulations) and Title 16 (Development Code) . The program establishes certain limitations on personal cannabis cultivation and prohibits commercial cannabis activities, with the sole exception of medical cannabis delivery operation s under state license classifica tion M-9 (Non- Storefront).
Measure T was approved by the voters in 2 018 and authorized the City Council to adopt by resolution a tax rate of 1% to 6% on commercial cannabis businesses. On December 18, 2018, the City Council adopted Resolution No. 2018-17 setting the tax rate at 4%.
On September 20 , 2022 , the City Council directed staff to bring back items to consider (i) changing the tax rate; and (ii) repealing the cannabis regulato ry program in its enti rety. This report and attached Resolution concern the tax rate.
ISSUES/ANALYSIS
Sections 3.18.020(E) and (F) allow the City Council to adjust the tax rate at any time without voter approval, provided the tax rate does not e xceed the maximum rate of 6% or is less than the minimum rate of 1%. The attached resolution is presented for the Council’s consideration to adjust the tax rate.
FISCAL IMPACT
Adoption of this r esolution will change the amount of tax collecte d from existing commercial cannabis operations.
ALTERNATIVE(S)
Staff Report to the City Council
Cannabis Tax
October 18, 2022
01071.0032/825302.1
1. Provide alternative direction to staff.
ATTACHMENT(S)
1. Resolution No. 2022 -74
RESOLUTION NO. 2022-74
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA,
CALIFORNIA, SETTING THE TAX RATE IMPOSED UPON COMMERCIAL CANNABIS BUSINESSES PURSUANT TO CHAPTER 3.18 OF THE HESPERIA
MUNICIPAL CODE
WHEREAS, Chapter 3.18 of the Hesperia Municipal Code permit s the City Council to set by resolution the rate at which the gross receipts of all commercial cannabis businesses are to be taxed, provided that such rate is not less than 1% and not more than 6%; and WHEREAS, on December 18, 2018, the City Council adopted Resolution Number 2018-71 setting the tax rate on commercial cannabis businesses at 4%; and WHEREAS, the City Council now desires to adjust and set the rate at which the gross receipts of commercial cannabis businesses are to be taxed pursuant to Chapter 3.18 of the Hesperia Municipal Code.
NOW THEREFORE, BE IT RESOLVED BY THE CITY OF HES PERIA CITY COUNCIL AS FOLLOWS:
Section 1. That the recitals set forth above are true and correct and incorporated herein by this reference.
Section 2. That, pursuant to Chapter 3.18 of the Hesperia Municipal Code, the City Council hereby establishes the tax rate imposed upon the gross receipts of all commercial cannabis businesses at ____%.
Section 3. That the 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 18th day of October, 2022.
_____________________________
Brigit Bennington, Mayor
ATTEST:
_____________________________
Erin Baum, Assistant City Clerk
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01071.0032/825330.1
City of Hesperia
STAFF REPORT
DATE: October 18, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Pam Lee, City Attorney
SUBJECT: Repeal of Commercial Cannabis Program
RECOMMENDED ACTION
It is recommended that the City Council review the report and resolution, then consider adopting Resolution No. 2022-75 prohibiting the renewal of any existing cannabis dispensary delivery permits and directing staff to draft ordinances necessary to repeal the commercial cannabis program.
BACKGROUND
The City currently provides for a commercial cannabis program pursuant to Hesperia Municipal Code Chapter 3.18 (Cannabis Business Tax), 5.50 (Business Licenses and Regulations) and Title 16 (Development Code). The program establishes certain limitations on personal cannabis cultivation and prohibits commercial cannabis activities, with the sole exception of medical cannabis delivery operations under state license classification M-9 (Non-Storefront).
Chapter 5.50 provides for review of applications for new delivery dis pensary operations. On November 19, 2019, the City Council adopted Urgency Ordinance No. 2019 -14 placing a stay on the commercial cannabis program and prohibiting new applications.
On September 20, 2022 , the City Council directed staff to bring back item s to consider (i) changing the tax rate; and (ii) repealing the commercial cannabis program in its entirety. This report and attached Resolution concern the repeal of the commercial cannabis program.
ISSUES/ANALYSIS
Section 5.50.040(C) provides that del ivery dispensary permits shall automatically expire after one year. Section 5.50.040(D) provides that the annual renewal of permits is subject to the same process as new applications. The attached resolution is presented for City Council consideration to prohibit any renewals of existing permits pending the repeal of the commercial cannabis program, and to direct staff to prepare ordinances necessary to repeal the program.
The commercial cannabis program is described in Chapter 3.18 , Chapter 5.50, and Title 16. If the attached resolution is adopted staff will prepare ordinances necessary to repeal the commercial cannabis program. The ordinance changing Title 16 will require review and action by the Planning Commission.
Existing dispensaries with valid permits will be allowed to continue operating under their existing permit until the annual permit expires, at which time the permit will not be renewed.
Staff Report to the City Council
Commercial Cannabis Program Update
October 18, 2022
01071.0032/825330.1
FISCAL IMPACT
Repealing the program will result in a loss of tax revenue from existing businesses, as th eir permits are not renewed. Moreover, should existing permits not be renewed, on-going expenditures related to administration of the commercial cannabis program will no longer be required to be included in the budget annually.
ALTERNATIVE(S)
1. Provide alternative direction to staff.
ATTACHMENT(S)
1. Resolution No. 2022-75
RESOLUTION NO. 2022-75
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA,
CALIFORNIA, PROHIBITING THE RENEWAL OF EXISTING DISPENSARY
DELIVERY PERMITS AND DIRECTING STAFF TO PREPARE ORDINANCE(S)
NECESSARY TO REPEAL THE COMMERCIAL CANNABIS PROGRAM
WHEREAS, On November 19, 2019, the City Council adopted Urgency Ordinance No. 2019-14 placing a stay on the commercial cannabis program and prohibiting new applications for delivery dispensary permits.
WHEREAS, Section 5.50.040(C) of the Hesperia Municipal Code provides that delivery dispensary permits shall automatically expire after one year. Section 5.50.040(D) provides that the annual renewal of permits is subject to the same process as new applications.
WHEREAS, the City Council now desires to prohibit any further renewals of existing permits pending the repeal of the commercial cannabis program, and to direct staff to prepare ordinances necessary to repeal the program.
NOW THEREFORE, BE IT RESOLVED BY THE CITY OF HES PERIA CITY COUNCIL AS FOLLOWS.
Section 1. All of the above recitals are true and correct and incorporated herein by reference as if set forth in full.
Section 2. No further renewals of existing delivery dispensary permits shall be approved pending the repeal of the commercial cannabis program.
Section 3. Staff is directed to prepare ordinance(s) for the City Council’s consideration to repeal the commercial cannabis program in its entirety.
Section 4. Commercial cannabis operations with valid existing permits shall be allowed to continue operating until the expiration of the permit. Upon expiration of the permit the permit shall not be renewed.
Section 5. The 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 18th day of October, 2022.
____________________________
Brigit Bennington, Mayor
ATTEST:
_____________________________
Erin Baum, Assistant City Clerk