Hesperia City Council
November 15, 2022

Tuesday, November 15, 2022
Meeting Agenda
Closed Session - 5:30 PM

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HOUSING AUTHORITY

COMMUNITY DEVELOPMENT COMMISSION

WATER DISTRICT

HESPERIA FIRE PROTECTION DISTRICT - SPECIAL MEETING
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
*Please join us after meeting to honor outgoing Council Member Bill Holland.

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:

C
ity 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.

P
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.

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

Re
mote 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:
• Cal l (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.

THIS PAGE LEFT INTENTIONALLY BLANK
November 15, 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

HESPERIA FIRE PROTECTION DISTRICT - SPECIAL MEETING
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. One (1) Case
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

November 15, 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 on the Microlink Program by Chris Ackerman from the Victor Valley Transit Authority
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda)

JOINT CONSENT CALENDAR

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

Recommended Action:

It
is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, November 1, 2022.

Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2022-11-01Attachments:

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 11-15-2022
Attachment 1 - Warrant Run
Attachments:

3. Treasurer’s Cash Report for the unaudited period ended September 30, 2022.

November 15, 2022City Council Meeting Agenda
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 11-15-2022
Attachment 1 - Treasurer's Report
Attachments:

4. Certification of Appointment in Lieu of Election
Recommended Action:

It
is recommended that the City Council adopt Resolution No. 2022-78 memorializing the action the City Council took on August 24, 2022 declaring the appointments filling one (1) open seat each, in City Council Districts two (2), three (3), and four (4), in lieu of participating in the November 8, 2022 General Municipal Election.

Staff Person: Assistant City Clerk Erin Baum and Director of Government Services/City Clerk Melinda Sayre
SR Certification of Appointment in Lieu of Election 11-15-2022 Resolution 2022-78
Attachments:

5. 2022-23 Statement of Investment Policy
Recommended Action:

It
is recommended that the Council/Board/Commission adopt Joint Resolution No. 2022-57, Successor Agency to the Hesperia Community Redevelopment Agency Resolution No. SA 2022-01, Hesperia Housing Authority Resolution No.

HHA 2022-06, Community Development Commission Resolution No. CDC 2022-03, Hesperia Fire Protection District Resolution No. HFPD 2022-05, and Hesperia Water District Resolution No. HWD 2022-12, amending the Fiscal Year 2022-23 Statement of Investment Policy.

Staff Person: Director of Administrative Services Casey Brooksher SR 2022-23 Statement of Investment Policy 11-15-2022
Attachment 1 - Investment Policy 22-23 Clean Version
Attachment 2 - Investment Policy 22-23 Track Changes
Attachment 3 - Joint Resolution 2022-57
Attachments:

6. Revised Combined Compensation Schedules
Recommended Action:

It
is recommended that the City Council and Board of Directors of the Hesperia Water District adopt Joint Resolution No. 2022-77 and HWD 2022-18, approving the City’s Fiscal Year (FY) 2022-23 revised Combined Compensation Schedule.

November 15, 2022City Council Meeting Agenda
Staff Person: Director of Administrative Services Casey Brooksher and Deputy Human Resources/Risk Management Director Rita Perez
SR Revised Combined Compensation Schedules 11-15-2022
Joint Resolution 2022-77 and HWD 2022-18
Attachment 2 - Combined Compensation Schedules
Attachments:

7. Increase to Contract with Ferguson Waterworks
Recommended Action:

It
is recommended that the Board of Directors of the Hesperia Water District authorize the City Manager to increase the contract with Ferguson Waterworks in the amount of $50,000 for a new not-to-exceed amount of $175,000, for the purchase of DFW Plastics Inc. (DFW) meter boxes and lids.

Staff Person: Director of Public Works Jeremy McDonald
SR Increase to contract with Ferguson Waterworks 11-15-2022Attachments:

8. Contract increase with Badger Meter Inc.

Recommended Action:

It
is recommended that the Board of Directors of the Hesperia Water District authorize the City Manager to increase the contract with Badger Meter Inc., in the amount of $75,000, for a new not-to-exceed amount of $350,000 for the purchase of water meters and related water meter parts.

Staff Person: Director of Public Works Jeremy McDonald
SR Increase to contract with Badger Meter Inc.11-15-2022Attachments:

CONSENT ORDINANCES

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

9. Amendments to Title 10 and Title 16 of the Hesperia Municipal Code Defining the terms “Undeveloped Lots, Tracts, and Parcels” in the Commercial Vehicle Parking and Truck Routes Program
Recommended Action:

Place on second reading and adopt by title waiving the text of Ordinance No. 2022-14, amending Title 10 and Title 16 of the Hesperia Municipal Code to Define the terms “Undeveloped Lots, Tracts, and Parcels” in the commercial vehicle parking and truck routes program.

Staff Person: Administrative Analyst Jacquelyn Castillo

November 15, 2022City Council Meeting Agenda
SR Amendments to Title 10 & 16 of the Hesperia Municipal Code 11-1-2022 Ordinance 2022-14
Attachment 2 - Exhibit A - Title 10 - Truck Routes Program Attachment 3 - Exhibit A - Title 10 - Truck Routes Program Clean Copy Attachment 4 - Exhibit B - Title 16 - Parking and Loading Standards Attachment 5 - Exhibit B - Title 16 - Parking and Loading Standards Clean Copy Attachments:

10. Amendments to Title 5 and Title 8 of the Hesperia Municipal Code Related to the Voluntary Crime Free Program
Recommended Action:

Place on second reading and adopt by title waiving the text of Ordinance No . 2022-15, amending Title 5 and Title 8 of the Hesperia Municipal Code related to the Voluntary Crime Free Program.

Staff Person: Administrative Analyst Jacqueline Castillo SR Amendment to Title 5 and Title 8 of the Hesperia Municipal Code 11-1-2022 Ordinance 2022-15
Attachment 2 - Exhibit A Title 5 Chapter 5.72
Attachment 3 - Exhibit B Title 8 Chapter 8.20
Attachments:

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

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

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

11. Adoption of Ordinance No. 2022-16 adopting the 2022 California Building Codes Recommended Action:

It
is recommended that the City Council conduct a public hearing and upon accepting public testimony adopt Ordinance No. 2022-16, adopting changes to Hesperia Municipal Code Chapters 15.04 and 15.06; adopting and amending the following codes and their references: the 2022 California Building Code, the 2022 California Residential Code, the 2022 California Electrical Code, the 2022 California Mechanical Code, the 2022 California Plumbing Code, the 2022 California Fire Code, the 2022 California Green Building Standards Code, the 2022 California Referenced Standards Code, the 2022 California Energy Code, the 2022 California Historical Building Code, the 2022 California Administrative Code, and the 2022 California Existing Building Code (all hereafter referenced as the Building Codes).

Staff Person: Deputy Community Development Director Mike Hearn

November 15, 2022City Council Meeting Agenda
SR 2022 California Building Codes 11-1-2022
Ordinance 2022-16
Attachment 2 - Exhibit A - Building Code Adoption Chapter 15.04 Attachment 3 - Exhibit B - Building Code Adoption Chapter 15.06 Attachments:

12. Substantial Amendment to the Community Development Block Grant (CDBG) 2021-2022 and 2022-2023 Annual Action Plans
Recommended Actions:

It
is recommended that the City Council: (1) conduct a public hearing and upon accepting public testimony, adopt Resolution No. 2022-76 including any modifications or amendments thereto (2) approve a Substantial Amendment to the Community Development Block Grant (“CDBG”) 2021-2022 and 2022-2023 Annual Action Plans (“Action Plans”) by repurposing a total of $3,747,044 from prior year unprogrammed CDBG funds and program income from the Neighborhood Stabilization Program (NSP) to the 2021-2022 Street Improvement Project; (3) authorize staff to appropriate prior year unprogrammed CDBG funds and NSP program income for the 2021-2022 Street Improvement Project; and (4) authorize the City Manager and/or Designee to execute and transmit all necessary documents, including the Substantial Amendment to the Action Plans, and any additional amendments, to assure the City’s timely expenditure of CDBG funds.

Staff Person: Economic Development Manager Victor Knight SR Substantial Amendments to CDBG Annual Action Plans 11-15-2022 Attachment 1 - Substantial Amendment to Action Plans
Resolution 2022-76
Attachments:

NEW BUSINESS

13. Proposed Termination of Victor Valley Wastewater Reclamation Authority (VVWRA) Service Agreement and Other Controlling Agreements Recommended Action:

It
is recommended that the City Council and Hesperia Water District Board direct the City Manager (General Manager of the Hesperia Water District) to officially notify the Victor Valley Waste Reclamation Authority (VVWRA) and member agencies, that the City of Hesperia (Hesperia Water District) will exit VVWRA by providing its 30-year notice to terminate the service agreement and any other controlling agreements.

Staff Person: City Manager Nils Bentsen
SR Proposed Termination of VVWRA Service Agreements 11-15-2022Attachments:

14. Residential Christmas Decoration Contest
Recommended Action:

It
is recommended that the City Council give direction to staff on the

November 15, 2022City Council Meeting Agenda
establishment of a residential Christmas decoration contest.

Staff Person: Assistant City Manager Rachel Molina
SR Residential Christmas Decoration Contest 11-15-2022Attachments:

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.

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.

ANNOUNCEMENTS/PRESENTATIONS

1. Presentation and cupcake reception in honor of outgoing Mayor Pro Tem Bill Holland by the City Council

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 Wednesday November 9, 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.

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia
Meeting Minutes - Draft
City Council
Tuesday, November 1, 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 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 CALL TO ORDER - 6:30 PM
A. Invocation
B. Pledge of Allegiance to the Flag – Led by WWII Veteran, Ignatius Palermo.

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. Recognition of WWII veteran, Mr. Ignatius Palermo, for his service by City Council.

City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345
City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345

GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Bob Nelson commented on speaking limits.

Daniel Krist commented on community issues.

Ken Foist commented on property tax distribution.

Al Vogler commented on ballot initiatives.

JOINT CONSENT CALENDAR
A motion was made by Bird, seconded by Holland, that 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, October 18, 2022.

Recommended Action:

It is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, October 18, 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, 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. Treasurer’s Cash Report for the unaudited period ended August 31, 2022.

Recommended Action:

It is recommended that the Council/Board accept the Treasurer’s Cash 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

4. Fiscal Year 2021-22 Final Budget Amendments
Recommended Action:

It is recommended that the following resolutions be adopted, amending the respective Fiscal Year (FY) 2021-22 Budgets for the Cit
y of Hesperia, Hesperia Housing Authority, and the Hesperia W ater District:
1) City of Hesper
ia No. 2022-73
2) Hesperia Housing Authority HHA 2022-08
3) Hesperia Water District Resolution HWD 2022-17
Sponsors: Director of Administrative Services Casey Brooksher

PUBLIC HEARING

5. Amendments to Title 10 and Title 16 of the Hesperia Municipal Code Defining the terms “Undeveloped

Lots, Tracts, and Parcels” in the Commercial Vehicle Parking and Truck Routes Program Recommended Action:

It is recommended that the City Council introduce and place on first reading Ordinance No. 2022- 14, amending Titl
e 10 and Title 16 of the Hesperia Municipal Code to Define the terms “Undeveloped Lots, Tracts, and Parcels” in the commercial vehicle parking and truck routes program.

Sponsors: Administrative Analyst Jacquelyn Castillo
A motion was made by Bird, seconded by Holland, that this item be approved. The motion carried by the following vote:

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

6. Amendments to Title 5 and Title 8 of the Hesperia Municipal Code Related to the Voluntary Crime Free Program
Recommend
ed Action:

It is recommended that the City Council introduce and place on first reading Ordinance No. 2022- 15, amending Titl
e 5 and Title 8 of the Hesperia Municipal Code related to the Voluntary Crime Free Program
.

Sponsors: Administrative Analyst Jacqueline Castillo
A motion was made by Gregg, seconded by Bird, that this item be approved. The motion carried by the follow
ing vote:

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

7. Adoption of Ordinance No. 2022-16 adopting the 2022 California Building Codes Recommend
ed Action:

It is recommended that the City receive Ordinance No. 2022-16, adopting changes to Hesperia Municipa l Code Chapters 15.04 and

15.06; adopting and amending the following codes and their references: the 2022 Californi
a Building Code, the 2022 California Residential Code, the 2022 California Electrical Code, the 2022 California Mechanical Code, the 2022 California Plumbing Code, the 2022 California Fire Code, the 2022 Ca
lifornia Green Building Standards Code, the 2022 California Referenced Standards Code, the 2022 Ca
lifornia Energy Code, the 2022 California Historical Building Code, the 2022 Calif ornia Administrative
Code, and the 2022 California Existing Building Code (all hereafter referenced as the Building Codes
) and hold a public hearing regarding this matter on November 1, 2022 and continue the hearing to Novem
ber 15, 2022.

Sponsors: Deputy Community Development Director Mike Hearn Public Hearing was opened.

There were no public comments on the item.

Public Hearing was closed.

Item continued to the November 15, 2022 City Council Meeting.

COUNCIL COMMITTEE REPORTS AND COMMENTS
Council Member Bird commented on recent attendance at the VVTA meeting, the impending Christmas season, local football teams going to CIF, and thanked Council Member Holland for covering his VVWRA meeting.

Council Member Swanson commented on the weather, local high school football, upcoming SBCTA meeting and

EDD committee attendance, upcoming Veterans Day events, and the impending Christmas season.

Council Member Gregg thanked Sheriff's and Fire staff for the quiet Halloween holiday and commented on attendance at the VFW Chili cook-off, impending daylight savings switch, Veterans Day, and requested a Christmas season display contest be started, and reminded everyone to vote.

Mayor Pro Tem Holland commented on Allison Lee’s attendance, the coming election and apologized to Sheriff's staff for public commenter behavior.

Mayor Bennington recognized her parents, Allison Lee, and Jon Dunbar in the audience, commented on her attendance at MDAQMD meeting, upcoming attendance at CDAWG air quality conference, attendance at the Hot Rod Halloween event, the coming election, recognized VVC political science students in attendance, thanked Sheriff, Fire, and City staff, reminded people to adopt from the City shelter, and congratulated OHHS on their MRL championship.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
None.

ADJOURNMENT
The meeting was adjourned at 7:37 p.m.
_____________________________
Erin Baum,
Assistant City Clerk

City of Hesperia

STAFF REPORT
DATE: November 15, 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)

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 October 8, 2022 through October 21, 2022.

ATTACHMENT(S)

1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $749,265.41 $271,948.13 $0.00 $1,021,213.54 Successor Agency 0.00 0.00 0.00 0.00
Housing Authority 0.00 178.95 0.00 178.95
Community Development Commission 0.00 0.00 0.00 0.00
Water 653,923.10 110,070.36 0.00 763,993.46
Totals $1,403,188.51 $382,197.44 $0.00 $1,785,385.95

YEAR-TO PRIOR FY YTD

W/E W/E WARRANT DATE DATE
FUND # FUND NAME 10/14/2022 10/21/2022 TOTALS Wires TOTALS * TOTALS Accounts Payable
100 GENERAL 27,643.24$ 228,938.56$ 256,581.80$ -$ 10,201,590.60$ 9,329,893.15$ 200 HESPERIA FIRE DISTRICT -$ -$ -$ -$ -$ -$
204 MEASURE I - RENEWAL -$ -$ -$ -$ 173,443.94$ 66,071.32$ 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 -$ -$ -$ -$ 40,178.81$ 391,284.23$
254 AB2766 - TRANSIT -$ -$ -$ -$ -$ -$
256 ENVIRONMENTAL PROGRAMS GRANT 1.50$ -$ 1.50$ -$ 11,884.87$ 12,563.28$ 257 NEIGHBORHOOD STABILIZATION PROG -$ -$ -$ -$ -$ -$ 258 CDBG-CV CARES ACT -$ -$ -$ -$ -$ -$
260 DISASTER PREPARED GRANT -$ -$ -$ -$ -$ -$
262 SB 1
383 LOCAL ASSISTANCE GRANT -$ 1,000.00$ 1,000.00$ -$ 6,000.00$ -$ 263 STREETS MAINTENANCE 12,968.12$ 42,027.70$ 54,995.82$ -$ 814,645.01$ 601,416.39$ 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 D
EV. IMPACT FEES - POLICE -$ -$ -$ -$ -$ 17,048.00$ 304 DEV. IMPACT FEES - PUBLIC WKS. -$ -$ -$ -$ -$ -$ 306 DEV. IMPACT FEES - 2018-STREETS -$ 30.17$ 30.17$ -$ 1,812,898.84$ 36,145.42$ 312 DIF 2018-POLICE FACILITIES -$ -$ -$ -$ -$ 6,888.17$ 313 DIF A-04 DRAINAGE -$ -$ -$ -$ -$ 959,049.00$
396 DEVELOPMENT IMPACT -$ -$ -$ -$ -$ -$
399 FEM
A-1203-DR (DISASTER) -$ -$ -$ -$ -$ -$
400 2004 STREETS -$ -$ -$ -$ -$ -$
401 CITY DEBT SERVICES -$ -$ -$ -$ -$ -$
402 WATER RIGHTS ACQUISITION -$ -$ -$ -$ 1,090,323.17$ 1,074,335.70$ 403 2013 REFUNDING LEASE REV BONDS -$ -$ -$ -$ 655,055.62$ 632,972.25$ 501 CFD 91-3 BELGATE -$ -$ -$ -$ -$ -$
504 CITY WIDE STREETS - CIP -$ -$ -$ -$ 3,566,844.49$ 326,600.21$ 509 CITY FACILITIES CIP -$ -$ -$ -$ -$ -$
800 EMPLOYEE BENEFITS 59,124.68$ 81,872.98$ 140,997.66$ -$ 2,980,783.63$ 2,491,681.30$ 801 TRUST/AGENCY 268,177.11$ 20,897.27$ 289,074.38$ -$ 605,898.24$ 1,241,738.10$ 802 AD 91-1 AGENCY -$ -$ -$ -$ -$ -$
804 T
RUST-INTEREST BEARING -$ -$ -$ -$ 26,625.00$ 7,283.00$ 807 CFD 2005-1 -$ -$ -$ -$ 962,956.49$ 929,132.65$ 808 HFPD (TRANSITION) -$ -$ -$ -$ 317,384.59$ 369,875.18$ 815 PLAN REVIEW TRUST - FRONTIER -$ 6,584.08$ 6,584.08$ -$ 6,584.08$ -$ CITY 367,914.65$ 381,350.76$ 749, 265.41$ -$ 24, 387,630.61$ 19, 648,654.42$ 163 REDEVELOP OBLIG RETIREMENT-2018 -$ -$ -$ -$ 7,740,169.98$ 7,937,503.22$ SUCCESSOR AGENCY -$ -$ -$ -$ 7, 740,169.98$ 7, 937,503.22$ 370 HOUSING AUTHORITY -$ -$ -$ -$ 4,419.77$ 4,184.18$ HOUSING AUTHORITY -$ -$ -$ -$ 4, 419.77$ 4, 184.18$ 170 COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ 700 WATER OPERATING 227,334.96$ 338,493.59$ 565,828.55$ -$ 3,023,879.54$ 3,905,334.78$ 701 WATER CAPITAL -$ -$ -$ -$ 8,087.00$ 22,438.15$ 710 SEWER OPERATING 39.20$ 84,500.40$ 84,539.60$ -$ 1,333,511.79$ 1,250,292.27$ 711 SEWER CAPITAL 734.91$ -$ 734.91$ -$ 148,914.12$ 148,374.37$ 713 SEWER CAPITAL REHAB AND REPLACE -$ -$ -$ -$ -$ -$ 720 RECLAIMED WATER OPERATIONS 290.93$ 2,529.11$ 2,820.04$ -$ 7,961.69$ 996.26$ WATER 228,400.00$ 425,523.10$ 653, 923.10$ -$ 4, 522,354.14$ 5, 327,435.83$ ACCOUNTS PAYABLE TOTAL 596,314.65$ 806,873.86$ 1, 403,188.51$ -$ 36, 654,574.50$ 32, 917,777.65$ REG. PAYROLL
City 271,948.13$ -$ 271,948.13$ -$ 2,184,499.24$ 1,920,567.58$ Housing Authority 178.95$ -$ 178.95$ -$ 1,463.11$ 745.24$ Water 110,070.36$ -$ 110,070.36$ -$ 895,776.60$ 815,542.05$ PAYROLL TOTAL 382,197.44$ -$ 382, 197.44$ -$ 3, 081,738.95$ 2, 736,854.87$ City of Hesperia

WARRANT RUNS
10/08/2022-10/21/2022
*No payments were issued on July 1, 2022.

Attachment 1

City of Hesperia

STAFF REPORT
DATE: November 15, 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 September 30, 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 Se ction 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 September 30, 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
November 15, 2022

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
November 15, 2022

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
November 15, 2022

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

Interest
Rate
City of Hesperia
Investment Report
Unaudited
September 30, 2022
Date of
Purchase
Date of
Maturity
Par Value
atMaturity
Book
Value
Market
Value
f
Local Agency Investment Funds I State of Calif. 1.513% 30-Sep-22 Demand $ 77,027,517.33 77,027,517.33 77,027,517.33 Local Bank Checking Accounts U.S. Bank n/a 30-Sep-22 Demand 4,616,609.46 4,616,609.46 4,616,609.46 Total Unaudited Investments under the direction of the City $ 81,644,126.79 $ 81,644,126.79 $ 81,644,126.79 Investments under the direction of fiscal agents:
2012 Lease Revenue Bonds US Bank 0.139% 30-Sep-22 Demand --

0.02 0.02
2012 Lease Revenue Bonds US Bank 0.000% 30-Sep-22 Demand 367,128.71 367,128.71 2012 Lease Revenue Bonds US Bank 0.000% 30-Sep-22 Demand 730,000.00 730,000.00 2012 Lease Revenue Bonds US Bank 0.171% 30-Sep-22 Demand 1,452,131.28 1,452,131.28 2012 Lease Revenue Bonds US Bank 0.000% 30-Sep-22 Demand 0.31 0.31 2013 Refunding Lease Revenue Bonds US Bank ~ 0.155% 30-Sep-22 Demand , 0.03 0.03 2013 Refunding Lease Revenue Bonds US Bank 0.000% 30-Sep-22 Demand 235,548.10 235,548.10 -2013 Refunding Lease Revenue Bonds US Bank 0.000% 30-Sep-22 Demand 425,000.00 425,000.00 2013 Refunding Lease Revenue Bonds US Bank 0.171% 30-Sep-22 _Qemand L 1,149,750.00 1,149,750.00 -2013 Refunding Lease Revenue Bonds US Bank 0.000% 30-Sep-22 Demand · 0.31 0.31 -2014 CFD 2005-1 Refunding US Bank 0.000% 30-Sep-22 Demand 4,203.11 4,203.11 ,_ 2014 CFD 2005-1 Refunding US Bank 0.072% 30-Sep-22 Demand 695.80 695.80 ,- ,- 2014 CFD 2005-1 Refunding US Bank 0.171% 30-Sep-22 Demand 1,430,656.50 1,430,656.50 ·- 2014 CFD 2005-1 Refunding US Bank 0.170% 30-Sep-22 Demand 24,001.43 24,001.43 ---- ~ ' Deposits - Workers' Comp PERMA n/a 30-Sep-22 I n/a 542,901.06 542,901.06 Sully Miller Retention - Ranchero US Bank 0.000% 30-Sep-22 _,__ n/a 101,838.72 101,838.72 Total Unaudited Investments under the direction of fiscal agents $ 6,463,855.38 6,463,855.38 Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.

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

City.xlsx

0.02 367,128.71
730,000.00
1,452,131.28

0.31 0.03
235,548.1Q_
425,000.00
1,149,750.00

0.31 4,20~
695.80
1,430,656.50
24,001.43
542,901.06
101,838.72
6,463,855.38
ATTACHMENT 1
Account
Descrigtion
~ 012 - Water Rights Revenue Fund
i 2012 - Water Rights Interest Fund
2012 -Wat,, Righ,Priocip,IF,od J
2012 - Water Rights Reserve Fund
2012 - Water Rights Surplus Revenue Fund
2005 Civic Plaza - Revenue Fund -2005 Civic Plaza - Interest Fund 2005 Civic Plaza - Princlflal Fund -
2005 Civic Plaza - Reserve Fund
2005 Civic Plaza - Surplus Rev Fund
. 2014 CFD 05-1 - Special Tax Fund
2014 CFD 05-1 - Bond Fund I
2014 CFD 05-1 - Reserve Fund
2014 CFD 05-1 Administrative Expense Bonds
GL 1352
Ranchero Road - Escrow Account 7

Successor Agency to the Redevelopment Agency
Investment Report
Unaudited
September 30, 2022
ATTACHMENT 2
Issuer/ Interest Date of Date of Par Value Book Market Account Type of Investment Institution Rate Purchase Maturity at Maturity Value Value Description Investments under the direction of the City:
l
LocalAgencylnvestmentFunds I StateofCalif. [ 1.513% J 30-Sep-22 I Demand $ 236,108.15 $ 236,108.15 236,108~ Local Bank Checking Accounts . U.S. Bank j n/a [ 30-Sep-22 . Demand 14,151.04 14,151.04 14,151.04 7 Total Unaudited Investments under the direction of the City $ 250,259.19 $ 250,259.19 $ 250,259.19 Investments under the direction of fiscal agents:
[ 2018 Refunding Bonds i US Bank I 0.000% f 30-Sep-22 Dema~ 0.03 0.03 0.03 I 2018A & 2018B-Debt Service Account I 2018 Refunding Bonds US Bank 0.052% 30-Sep-22 Demand] 4,024.43 4,024.43 4,024.43 . 2018A & 2018B - Interest Account 2018 Refunding Bonds US Bank 0.000% 30-Sep-22 Demand 1.00 1.00 1.00 2018A & 2018B - Reserve Account Total Unaudited Investments under the direction of fiscal agents $ 4,025.46 $ 4,025.46 $ 4,025.46 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)(2J and (3), respectively. <-~ ~ • Note: The 2005 and 2007 Series Bonds were refinanced to 2018 Series Bonds in November 2018. V,rgm,a Vill~ morAccountant Successor-RDA.xlsx

T.YQe of Investment
Hesperia Housing Authority
Investment Report
Unaudited
September 30, 2022
Issuer/
Institution
Interest
Rate
Date of Date of
Purchase Maturi,ty
Investments under the direction of the City:

Par Value
at Maturi,ty
ATTACHMENT 3
Book
Value
Market
Value
Local Agency Investment Funds _r State of California 1 1.513% 30-Sep-22 Demand $ 4,894,845.94 4,894,845.94 4,894,845.94 Local Bank Checking Accounts U.S. Bank n/a 30-Sep-22 Demand 293,370.38 293,370.38 293,370.38 -- Total Unaudited Investments under the direction of the City $ 5,188,216.32 $ 5,188,216.32 $ 5,188,216.32 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. c~~---""'--~-
v,rgm,a Villasenor, Senior Accountant
Housing Authority.xlsx

TY.Qe of Investment
Hesperia Community Development Commission
Investment Report
Unaudited
Issuer/
Institution
September 30, 2022
Interest
Rate
Date of Date of
Purchase Maturi_!y
Par Value
at Maturi_ty
Investments under the direction of the Cit_~: -
30-Sep-22 l Local Agency Investment Funds r State of California 1.513% Demand $ (566,707.16) -- - 30-Sep-22 I Local Bank Checking Accounts U.S. Bank n/a Demand (33,965.34) ATTACHMENT 4
Book
Value
(566,707.16)r-
(33,965.34)
Market
Value
(566,707.16)
(33,965.34)
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.

Virginia Villasenor, Senior Accountant
Community Develop.xlsx

TYQ.e of Investment
Investments under the direction of the City:
[
Local Agency Investment Funds -Local Bank Checking Accounts Issuer/
Institution
State of California
U.S. Bank
Hesperia Water District
Investment Report
Unaudited
September 30, 2022
Interest Date of Date of Par Value
Rate Purchase Maturity at Maturity

1.513% 30-Sep-22 Demand $ 28,511,042.01
n/a 30-Sep-22 Demand 1,708,796.42
Book
Value
28,511,042.01 i
1,708,796.42 ,
ATTACHMENT 5
Market
Value
28,511,042.01 _,
1,708,796.42
Account
Descrig_tion
Total Unaudited Investments under the direction of the City $ 30,219,838.43 $ 30,219,838.43 $ 30,219,838.43 Investments under the direction of fiscal agents:
[- Deposits - Workers' Comp I PERMA I n/a 30-Sep-22 [ n/a I 843,847.29 Total Unaudited Investments under the direction of fiscal agents $ 843,847.29 $ 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. 843,847.29 [ 843,847.29 IGL 1352
843,847.29 $ 843,847.29
~ Accountant
Water.xlsx

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT
DATE: November 11, 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: Certification of Appointment in Lieu of Election

RECOMMENDED ACTION
It is recommended that the City Council adopt Resolution No. 2022-78 memorializing the action the City Council took on August 24, 2022 declaring the appointments filling one (1) open seat each, in City Council Districts two (2), three (3), and four (4), in lieu of participating in the November 8, 2022 General Municipal Election.

BACKGROUND
The nomination period for the November 8, 2022, General Municipal Election was July 18, 2022, through Friday, August 12, 2022. As of the close of the nomination period on Friday, August 12, 2022, for Members of the City Council representing District two (2), District three (3), and District four (4), only one (1) candidate was nominated for each seat in District three (3) and District four (4), and there were no persons nominated in District two (2).

Since qualified candidates for City Council Districts three (3) and four (4) were unopposed, and there being no qualified candidates for City Council District two (2), Elections Code § 10229 provides procedures for appointment if only one or no person is nominated for an elective office, and cancellation of its election. The person(s) appointed, if any, shall qualify and take office and serve exactly as if the person(s) were elected at a municipal election for the office.

On August 24, 2022 t he City Council adopted Resolution 2022 -66 cancelling the Consolidated Municipal Election scheduled on November 8, 2022 and appointing th e following nominees, pursuant to Elections Code Section 10229;
.

City Office and Term Name
City Council District 3, 4 year term Cameron Gregg
City Council District 4, 4 year term Brigit Bennington
City Council District 2, 4 year term Allison Lee

FISCAL IMPACT
There are no fiscal impacts identified with this action.

ALTERNATIVE(S)

Staff Report to the Mayor and City Council
Certification of Appointment in Lieu of Election
November 15, 2022

1. Provide alternate direction to staff.

ATTACHMENT(S)

1. Resolution No. 2022-78

RESOLUTION NO. 2022-78

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

CALIFORNIA, MEMORIALIZING THE DECLARATION OF THE APPOINTMENT OF MEMBERS TO CITY COUNCIL SEATS FOR DISTRICT 2, DISTRICT 3, AND DISTRICT 4, IN LIEU OF THE CANCELLED GENERAL MUNICIPAL ELECTION.

WHEREAS, as set forth in Resolution No. 2022-66, the offices of City Council District 2, City Council District 3, and City Council District 4 are to be appointed, and the November 8, 2022, general municipal election cancelled; and
WHEREAS, pursuant to Elections Code Section s 10263 and 10264 , the City Council declares the appointments of the following individuals to City Council District 2, City Council District 3, and City Council District 4:

City Office and Term Name
City Council District 3, 4 year term Cameron Gregg
City Council District 4, 4 year term Brigit Bennington
City Council District 2, 4 year term Allison Lee

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

Section 1. Recitals Incorporated . The City Council finds the above recitals are true and correct and incorporated herein by this reference as if set forth in full.

Section 2. Appointment of Nominees . Pursuant to Elections Code Section 10229, the following persons are hereby appointed to the offices to which they were nominated, and are deemed to have been duly elected to such offices, pursuant to Elections Code Section 10229(a)(3):

City Office and Term Name
City Council District 3, 4 year term Cameron Gregg
City Council District 4, 4 year term Brigit Bennington
City Council District 2, 4 year term Allison Lee
Section 3. Effect of Appointment. The foregoing persons appointed to said offices shall qualify and take office and serve exactly as if the same had been duly elected at the November 8, 2022, General Municipal Election for the office.

Section 4. Filing of Certified Copy. That the City Clerk is directed to file a “certified copy” of this Resolution with the San Bernardino County Registrar of Voters and such other government agencies as may be required by law.

Section 7. Severability. If any subsection, subdivision, paragraph, sentence, clause or phrase of this Resolution or any part thereof is for any reason held to be unconstitutional or otherwise

Resolution City Council No. 2022-78

unenforceable, such decision shall not affect the validity of the remaining portion of this Resolution or any part thereof. The City Council hereby declare that they would have passed each subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more subsection, subdivision, paragraph, sentence, clause, or phrase be declared unconstitutional or otherwise unenforceable.

Section 8. Effective Date. This Resolution shall take effect immediately after its adoption.

Section 9. Certification. The City Clerk shall certify as to the passage and adoption of this Resolution.

ADOPTED, SIGNED and APPROVED this 15th day of November, 2022.

______________________________
Brigit Bennington, Mayor

ATTEST:

____________________________
Erin Baum, Assistant City Clerk

City of Hesperia

STAFF REPORT
DATE: November 15, 2022
TO: Mayor and Council Members
City Council, as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Board Members, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Fire Protection District Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Anne Duke, Deputy Finance Director
Virginia Villasenor, Senior Accountant
SUBJECT: 2022-23 Statement of Investment Policy

RECOMMENDED ACTION
It is recommended that the Council/Board/Commission adopt Joint Resolution No. 2022-57, Successor Agency to the Hesperia Community Redevelopment Agency Resolution No.

SA 2022-01, Hesperia Housing Authority Resolution No. HHA 2022-06, Community Development Commission Resolution No. CDC 2022-03, Hesperia Fire Protection District Resolution No. HFPD 2022-05, and Hesperia Water District Resolution No. HWD 2022-12, amending the Fiscal Year 2022-23 Statement of Investment Policy.

BACKGROUND
The City Treasurer is authorized to invest public funds in accordance with California Government Code (CGC) Sections 53600 et seq. and 5922(d). The Statement of Investment Policy (Policy) that guides the investment activity of the City, Successor Agency to the Hesperia Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, Fire District, and Water District was adopted by the City Council as required by Senate Bill 564. Government Code Section 53646, added by the same bill, als o requires that the City Council review and adopt the Policy annually. The external auditors of the Council/Agency/Authority/Commission/Districts also review the Statement of Investment Policy during the annual financial audit process.

ISSUES/ANALYSIS
During the past year, all funds under the control of the City Treasurer that were available for investment were placed with the State Local Agency Investment Fund (L.A.I.F.) . The quarterly interest rates on funds invested with L.A.I.F. for the last four fiscal years are provided below:

Interest Rate September December March June Annual Averages Fiscal Year 2018-19 2.16% 2.40% 2.55% 2.57% 2.42%
Fiscal Year 2019-20 2.45% 2.29% 2.03% 1.47% 2.06%
Fiscal Year 2020-21 0.84% 0.63% 0.44% 0.33% 0.56%
Fiscal Year 2021-22 0.24% 0.23% 0.32% 0.75% 0.39%

Staff Report to the City Council, Chairman, and Board Members 2022-23 Statement of Investment Policy
November 15, 2022
Fiscal Year (FY) 2021-22 L.A.I.F. interest rates are at or above the rate of return of short -term investments (three - month maturity) of similar safety rating as demonstrated in the following chart provided from the Federal Reserve:

US Government Securities Rate of Interest with a three - month maturity per the Federal Reserve System
The advantage of investing in L.A.I.F is that the funds are available the same day , based upon the cash management needs of the City. L.A.I.F. is part of the Pooled Money Investment Account that was created by statute and governed by a five-member board chaired by the State Treasurer.

Under Government Code Section 16429.3, funds deposited are excluded from being transferred or seized by any State Agency. L.A.I.F. increased its deposit limit from $65 to $75 million, effective January 1, 2020. The FY 2022-23 Budget assumes an annual average interest rate of 0.41%.

Due to grant and reimbursement-funded construction projects included in the FY 2022-23 Budget such as the Ranchero Road and other street improvement projects, the ability to draw funds same day (free of penalties) to pay peak cash flow obligations is important in the City’s ability to effectively manage cash for City operations. For this reason, continued investments with LAIF are recommended.

The Statement of Investment Policy has been reviewed by staff to ensure it continues to conform to the Association of Public Treasurers of the United States and Canada Model Investment Policy and California Local Agency Investment Guidelines. There were no approved changes to the local ag ency investment related codes during the 2021 Legislative session. The 2022 Local Agency Investment Guidelines (LAIG) presented by the California Debt and Investment Advisory Commission (the 2022 Guidelines) reflect the most current investment statutes . However, the 2022 LAIG includes minor formatting and grammatical corrections as well as the addition of a discussion in Chapter 2 on securities issued by departments or authorities of the State of California. In addition, a paragraph related to a 2020 temporary federal rule change (IRS Notice 2020-25) that extended the holding period of variable rate debt subject to a qualified tender purchased by the issuing agency was deleted. The time -limited authority of the temporary rule change expired. These changes did not impact the City’s investment policy.

In addition to the limited changes referenced above, the dates referenced in the Policy have been updated to reflect that the Policy has been reviewed for any potential impact in statutory changes.

These changes to the Policy are as shown in a “track changes” version (Attachment 2) of the draft Statement of Investment Policy for Fiscal Year (FY) 2022-23. These changes have also been included in the “clean” version (Attachment 1) of the FY 2022-23 Policy and are recommended for approval.

FISCAL IMPACT
Adoption of the Statement of Investment Policy has no direct financial impact on the City’s Budget.

Federal
Interest Rate September December March June Annual Averages Fiscal Year 2018-19 2.07% 2.36% 2.44% 2.35% 2.31%
Fiscal Year 2019-20 2.03% 1.61% 1.10% 0.14% 1.22%
Fiscal Year 2020-21 0.11% 0.09% 0.05% 0.03% 0.07%
Fiscal Year 2021-22 0.05% 0.05% 0.31% 1.11% 0.38%

Staff Report to the City Council, Chairman, and Board Members 2022-23 Statement of Investment Policy
November 15, 2022

ALTERNATIVE(S)

1. Failure to adopt a Statement of Investment Policy would result in an audit exception and the requirement to advise investors of the deviation from statutory requirements.

2. Provide alternative direction to staff.

ATTACHMENT(S)

1. Statement of Investment Policy for FY 2022-23 (clean)

2. Statement of Investment Policy for FY 2022-23 (track changes)

3. Joint Resolution No. 2022-57, SA 2022-01, HHA 2022-06, CDC 2022-03, HFPD 2022-05, and HWD 2022-12

Council Meeting: 11/15/2022
i
Attachment #1

City of Hesperia

STATEMENT
OF

INVESTMENT
POLICY

FISCAL YEAR 2022-23

ii

TABLE OF CONTENTS
I. POLICY ................................ ................................ ................................ ................... 1 II. SCOPE ................................ ................................ ................................ .................... 1 III. PRUDENCE ................................ ................................ ................................ ............ 1 IV. OBJECTIVE ................................ ................................ ................................ ............. 2 V. MAXIMUM MATURITIES ................................ ................................ ......................... 3 VI. PERFORMANCE STANDARDS ................................ ................................ .............. 3 VII. DELEGATION AND GRANTS OF AUTHORITY ................................ ...................... 3 VIII. INVESTMENT COMMITTEE ................................ ................................ ................... 3 IX. ETHICS AND CONFLICT OF INTEREST ................................ ................................ 4 X. SAFEKEEPING AND CUSTODY AGREEMENTS ................................ ................... 4 XI. INTERNAL CONTROLS ................................ ................................ .......................... 4 XII. FINANCIAL REPORTING ................................ ................................ ........................ 4 XIII. AUTHORIZED FINANCIAL DEALERS & INSTITUTIONS ................................ ........ 5 XIV. COLLATERAL REQUIREMENTS ................................ ................................ ............ 5 XV. AUTHORIZED AND ACCEPTABLE INVESTMENTS ................................ ............... 5 XVI. PROHIBITED INVESTMENTS ................................ ................................ ............... 10 XVII. LEGISLATIVE CHANGES ................................ ................................ ..................... 10 XVIII. INTEREST EARNINGS ................................ ................................ ......................... 10 XIX. LIMITING MARKET VALUE EROSION ................................ ................................ .. 10 XX. PORTFOLIO MANAGEMENT ACTIVITY ................................ ............................... 11 XXI. INVESTMENT POLICY REVIEW ................................ ................................ ........... 11 XXII. INDEMNIFICATION OF INVESTMENT OFFICIALS ................................ .............. 12 GLOSSARY ................................ ................................ ................................ ........... 13

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

1 I. POLICY

This Statement of Investment Policy while conforming to all applicable statutes at the time of adoption is intended to provide guidelines under the “prudent investor” rule, for the investment of public funds, and outline the policies for maximizing the effectiveness and efficiency of Hesperia’s cash managemen t system. The goal is twofold: one is to enhance the economic status of Hesperia while pr eserving its capital resources ; the second is to provide guidelines for authorized investments.

II. SCOPE

The City Treasurer is authorized to invest public funds in accordance with California Government Code (CGC) Sections 53600 et seq. and 5922 (d). This investment policy applies to all financial assets and investment activities of the City of Hesperia and includes, but is not limited to, the following funds:

 General Fund
 Special Revenue Funds
 Debt Service Funds
 Capital Project Funds
 Enterprise Funds
 Agency Fund
 Any new fund, unless specifically exempted

This policy, however, specifically excludes employees’ retirement, pension and deferred compensation funds. Additionally, moneys held by a trustee or fiscal agent shall be governed by CGC Sections 53601 (m) and 5922 (d).

III. PRUDENCE

All moneys entrusted to the City Treasurer will be pooled in an actively managed portfolio. The City of Hesperia shall participate in standards within the content of the Standard as set forth in CGC Section 53600.3 which states in part:

“When investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, a trustee shall act with care; skill and prudence and diligence under the circumstances then prevailing, that a prudent investor acting in like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims to safeguard the principal and maintain the liquidity needs of the agency.”

Section 53600.3 of the government code declares each person, treasurer, or governing body authorized to make investment decisions on behalf of local agencies to be a trustee, and therefore, a fiduciary subject to the prudent investor standard. These persons shall act with care, skill and diligence under the circumstances then prevailing when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates that the primary objective of any person investing funds is to safeguard principal; secondly, to meet liquidity needs; and lastly, to achieve a return or yield on invested funds.

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

2 IV. OBJECTIVE

The City’s treasury management system is designed to monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City attempts to obtain the highest yield available, while investments meet the criteria established for safety, liquidity, and yield, in that order of priority.

A. SAFETY

Safety of principal is the foremost objective of the City of Hesperia . Each investment transaction shall seek to ensure capital losses are avoided, whether from securities default, rating downgrades, broker-dealer defaults, or erosion of market value. The City of Hesperia shall seek the preservation of capital by mitigati ng two types of risk: credit risk and market risk.

1. Credit risk is the risk of loss due to failure of the issuer and is mitigated by investing in safe securities, and diversifying the investment portfolio so the failure of any one issuer would not materially affect the cash flow of the City.

2. Market risk is the risk of market value fluctuations due to changes in the general level of interest rates, and shall be mitigated by limiting the average maturity of the City’s investment portfolio to three and one-half years, and the maximum maturity of any one security to five years. Market risk shall also be mitigated by structuring the portfolio so maturing securities match cash outflows, eliminating the need to sell securities prior to their maturity, and to avoid taking positions in securities for the purpose of selling those securities within a short period of time in order to realize a short term profit. It is recognized that within a diversified portfolio, occasional measured losses are inevitable, and must be considered within the context of the overall return on the investment.

B. LIQUIDITY

The City of Hesperia’s investment portfolio will remain satisfactorily liquid to enable the City to meet all anticipated and operating cash flow requirements.

C. MATURITY MATRIX

Maturities of investments will be selected based on liquidity requirements in order to minimize interest rate risk and maximize earnings. Current and expected yield curve analysis will be monitored, and the portfolio will be invested accordingly. As a general investment guideline, the following percentages of the pooled portfolio should be utilized in the investment maturity sectors:

Maturity Range Suggested Percentage Less than 1 year 0 to 100%
1 - 3 years 0 to 50%
3 - 5 years 0 to 50%

D. DIVERSIFICATION

The City of Hesperia’s investment pool will be diversified to avoid incurring unreasonable and avoidable risks. The investments will be diversified by security type and institution.

Regarding specific security types indicated in Section XV of this Investment Policy, no more than 10% of the City’s portfolio will be placed with any single private financial institution.

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY
3 E. RETURN ON INVESTMENTS
The City of Hesperia’s investment portfolio shall be designed to attain a market rate of return throughout economic cycles. Whenever possible with respect to budgetary and cash flow requirements, and consistent with risk limitations and prude nt investment principles, the City Treasurer shall seek to augment returns above the market rate of return.

V. MAXIMUM MATURITIES
The City of Hesperia will match its investments with anticipated cash flow requirements.

Per California Government Code Sections 53601 et seq., maximum maturities shall not exceed five (5) years. The average maturity of funds should not exceed 1,275 days (3.5 years), and the cash flow requirements shall prevail at all times.

VI. PERFORMANCE STANDARDS
The City’s investment portfolio will be designed to obtain a market average rate of return during budgetary and economic cycles, taking into account the City of Hesperia’s investment risk constraints and cash flow requirements.

The City of Hesperia will operate in an active capacity in the investment strategy. The benchmark to be used by the City Treasurer to determine whether market yields are achieved shall be the State of California Local Agency Investment Fund (L.A.I.F.).

VII. DELEGATION AND GRANTS OF AUTHORITY
Management responsibility for the investment program is delegated to the City Treasurer (Director of Administrative Services) who shall establish written procedures and policies for the operation of the investment program consistent with this investment policy.

No person shall engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer. The procedures established by the City Treasurer shall contain internal accounting controls specifying delegation and grants of authority for the verification and recording of investment transactions to regulate the activities of subordinate representatives.

In the absence of the City Treasurer, the authority to direct investment transactions affecting City moneys will be restricted to the Deputy Finance Director as to maturity, investment instrument, and dollar size of the investment.

VIII. INVESTMENT COMMITTEE
The City of Hesperia City Council shall act as the investment committee consisting of five (5) Council members to include the Mayor and four (4) Council Members as elected by the people; to provide general oversight and guidance conc erning the investment policy related to the management of the City’s investment pool. The committee shall meet monthly to review the Treasurer’s Cash Report.

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

4 IX. ETHICS AND CONFLICT OF INTEREST

The City Treasurer and all investment personnel shall refrain from personal business activity which could create a conflict with proper execution of the investment program, or which could impair the ability to execute impartial investment decisions. The C ity Treasurer and all investment personnel shall disclose to the City Attorney any material financial interests in financial institutions that conduct business within the jurisdiction, and shall disclose any material financial investment positions that cou ld be related in a conflicting manner to the performance of the City of Hesperia’s investment portfolio.

The City Treasurer shall complete on an annual basis, State of California Form 721, Statement of Economic Interests Disclosure.

X. SAFEKEEPING AND CUSTODY AGREEMENTS

To protect against potential losses caused by collapse of individual securities dealers, all securities owned by the City shall be kept in safekeeping by a third party bank trust department, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. All securities will be received and delivered using standard delivery versus payment procedures with the City’s custodial bank, and evidenced by safekeeping receipts. Custodial statements are reconciled to transaction schedules by the Deputy Finance Director on a monthly basis.

XI. INTERNAL CONTROLS

Separation of duties among the employees involved in investment activities are designed to provide an ongoing internal review to prevent the potential for converting assets or concealing transactions.

Proper documentation obtained from confirmation and cash disbursement wire transfers is required for each investment transaction. Timely bank reconciliations are conducted to ensure proper handling of all transactions.

The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts on a monthly basis.

An independent analysis by an external auditor shall be conducted annually to review internal control, account activity, and compliance with policies and procedures.

XII. FINANCIAL REPORTING

Under provision of Section 53646 of the California Government Code, the City Treasurer may render a quarterly or monthly report to the City Council, providing the type of investment, financial institution from which the investment was purchased, the date of maturity, the date upon which the investment becomes subject to redemption provisions, amount (to include both par and book value) of the investment, and the cur rent market value of all investments. The report shall also include the source of the market value.

Additionally, the report shall also include the rate of interest, accrued interest earned, the amortized portion of the investment purchased at a premium or discount, and other data so required by the City Council or by amendment to the above section of California Government Code and its successors. The report shall include a statement denoting the City’s ability to meet its expenditure requirements for th e following six month period, or an explanation as to why sufficient moneys will not be available. Additionally , the City

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

5 Treasurer shall state whether the City is in compliance with its investment policy and shall sign the Treasurer’s Report . Pursuant to Section 53607, local agency treasurers to whom the authority to invest or reinvest funds or to sell or exchange securities has been delegated by the legislative body of a local agency are required to submit a monthly report of transactions to t he legislative body. The City renders a monthly Treasurer’s Report to the City Council.

XIII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS

The City of Hesperia shall transact business only with banks, savings and loan institutions, and registered investment securities dealers, managers, and advisors. The dealers should either be primary dealers authorized to buy and sell government securities in direct dealings with the Federal Reserve Bank of New York, or regional dealers qualifying under the Securities and Exchange Commission Rule 15C3-1.

The City Treasurer shall send a copy of the current Statement of Investment Policy to all dealers approved to do business with the City of Hesperia. Confirmation of the dealer’s understanding of the City’s investment policy shall be provided in writing by the dealer.

The City Treasurer shall examine financial institutions that wish to perform business with the City, in order to confirm whether the participating financial institutions are satisfactorily capi talized, are market makers in securities appropriate to the City’s financial investment universe and agree to comply with the conditions set forth in the City of Hesperia’s Statement of Investment Policy.

XIV. COLLATERAL REQUIREMENTS

Collateralization is required for investments of public deposits in Certificates of Deposits (in excess of the FDIC insured amount) and all Repurchase Agreements. In order to reduce market risk, the collateral level will be at least 110% of market value of principal and accrued interest of eligible securities for Certificate of Deposit. The percentage of collateralization on repurchase agreements shall adhere to CGC Section 53601 (i) (2).

In order to conform with provisions of the Federal Bankruptcy Code, which provides for the liquidation of securities held as collateral for Repurchase Agreements, the only securities acceptable as collateral shall be eligible Negotiable Certificates of Deposit, eligible Banker’s Acceptances, or securities that are fully guaranteed as to principal and interest by the United States or by any agency of the United States government. All securities held as collateral shall have a maximum maturity of five (5) years.

XV. AUTHORIZED AND ACCEPTABLE INVESTMENTS

The City of Hesperia is subject to California Government Code, Section 53601 et seq.

Within the context of the governing language, the following investments are authorized and accepted as defined:

A. United States Treasury Bills, Notes and Bonds - Maximum of 100% United States Treasury Bills, Notes, and Bonds, or those for which the full faith and credit of the United States are pledged for payment of principal and interest.

There is no limitation as to the percentage of the portfolio, which can be invested in the category.

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

6 B. Obligations issued by the Federal Government, State of California or California Local Agency - Maximum of 100%
Obligations issued by the Government National Mortgage Association (GNMA), the Federal Farm Credit Bank System (FFCB), the Federal Home Loan Bank Board (FHLB), the Federal Home Loan Mortgage Corporation (FHLMC), the Federal National Mortgage Association (FNMA), Student Loan Marketing Association (SLMA), State of California or California Local Agency. Although there is no percentage limitation on “governmental agency” issues, the prudent investor standard shall apply for a single agency name.

C. Bankers’ Acceptances - Maximum of 25%
Bankers’ Acceptances (BAs) otherwise known as bills of exchange or t ime drafts that are drawn on and accepted by a commercial bank . Purchases of Bankers’ Acceptances shall not exceed 180 days’ maturity or 25% of the market value of the portfolio. No more than 5% of the market value of the portfolio may be invested in Bankers’ Acceptances issued by any one commercial bank.

D. Commercial Paper - Maximum of 15%
Commercial Paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO) as set forth in CGC 53601(h) . The entity that issues the commercial paper shall meet all of the following co nditions in either paragraph 1 or 2:

1. The entity meets the following criteria:

a) Is organized and operating in the United States as a general corporation.

b) Has total assets in excess of five hundred million dollars ($500,000,000).

c) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by an NRSRO.

2. The entity meets the following criteria:

a) Is organized within the United States as a special purpose corporation, trust, or limited liability company.

b) Has program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or surety bond.

c) Has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO.

Commercial Paper purchases shall have a maximum maturity of 270 days or less and cannot exceed 15% of the market value of the portfolio (30% if the dollar weighted average maturity of all commercial paper does not exceed 31 days). Purchase of commercial paper may not exceed 10% of outstanding paper of an issuing corporation pursuant to CGC 53635(a)(2).

E. Negotiable Certificates of Deposit - Maximum of 25%
Negotiable Certificates of Deposit (NCD) issued by a nationally or state - chartered bank or a state or federal savings and loan association. Pursuant to CGC 53601 (i) and 53638, the NCD must meet the following criteria:

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY
7 1. The deposit should not exceed the shareholder’s equity of any depository bank. The shareholder’s equity shall be determined in accordance wit h Section 118 of the Financial C ode, but shall be deemed to include capital notes and debentures.

2. The deposit shall not exceed the total of the net worth of any depository savings association or federal association, except that deposits not exceeding a total of five hundred thousand dollars ($500,000) may be made to a savings association or federal association without regard to the net worth of that depository, if such deposits are insured or secured as required by law.

3. The deposit to the share accounts of any regularly chartered credit union shall not exceed the total of the unimpaired capital and surplus of the credit union, as defined by rule of the Commissioner of Financial Institutions, except that the deposit to any credit union share account in an amount not exceeding five hundred thousand dollars ($500,000) may be made if the share accounts of that credit union are insured or guaranteed pursuant to Section 14858 of the Financial Code or are secured as required by law.

4. The deposit in investment certificates of a federally insured industrial loan company shall not exceed the total of the unimpaired capital and surplus of the insured industrial loan company.

Purchases of negotiable certificates of deposits may not exceed 25% of the market value of the portfolio. A maturity limitation of five (5) years is applicable on NCDs.

F. Repurchase Agreements - Maximum of 20%
The City may i nvest in Repurchase Agreements with banks and dealers with which the City has entered into a Master Repurchase Agreement which specifies terms and conditions of Repurchase Agreements. A signed copy of the Master Repurchase Agreement shall be required from the authorized financial dealer prior to the execution of any applicable transaction. The maturity of Repurchase Agreements shall not exceed one year. The market value of securities used as collateral for Repurchase Agreements shall be monitored daily, and will not be allowed to fall below 102% of the value of the Repurchase Agreement as set forth in CGC Section 53601 (j) (2).

G. Local Agency Investment Fund - Maximum of $75 million per account The City may invest in the Local Agency Investment Fund (L.A.I.F.) established by the State Treasurer, for the benefit of local agencies, up to the maximum permitted by State law, which is currently $75 million dollars per account. There is no limitation as to the percentage of the portfolio a local agency can invest in L.A.I.F. under CGC 16429.1 , which allows a local agency to remit to the Treasurer any money not required for immediate needs and gives the agency the exclusive determination of the length of time its money will be on deposit with the Treasurer.

H. Medium Term Notes - Maximum of 30%
Medium Term Notes , defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

8 institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment shall be rated in a rating category of “A” or its equivalent or better by an NRSRO. No more than 30% of the market value of the portfolio may be invested in Medium-Term Notes pursuant to CGC 53601 (k), and no more than 10% of the total assets of the investments may be invested in any one issuer’s medium term notes pursuant to CGC 53635(a)(2).

I. Mutual and Money Market Funds - Maximum of 20%
Shares of beneficial interest issued by diversified management companies that are funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as defined in Section 53601 (l) of the California Government Code. For securities and obligations investments above two hundred fifty thousand dollars ($250,000), the investments must comply with the investment restrictions pursuant to Section 53601 (l), companies shall either:

1. Attain the highest ranking or the highest letter and numerical rankin g provided by not less than two NRSROs.

2. Retain an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ ex perience managing mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).

The purchase price of shares of beneficial interest purchased pursuant to this section shall not include any commission that these companies may charge and shall not exceed 20% of the agency’s money s that may be invested in mutual funds. In addition, no more than 10% of the agency’s funds may be invested in shares of beneficial interest of any one mutual fund. Further, the City may invest only in mutual and money market funds which have an average maturity of 90 days or less per Securities & Exchange Commission regulations.

3. All positions in government-sponsored investment pools and permitted mutual and money market funds (per Sections G and I, above) shall be subject to periodic review by the City Treasurer, or a designee thereof, in order to ensure that the moneys in question are managed in a manner consistent with the standards and objectives set forth elsewhere in this Policy.

J. Collateralized Bank Deposits - Maximum of 10%
The City may invest in collateralized bank deposits in the form of notes, bonds, or other obligations which are at all times secured by a valid first priority security interest. The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank which is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in accordance with the require ments of the Uniform Commercial Code or Federal regulations applicable to the types of securities in which the security interest is placed. For purposes of Time Deposits issued by financial institutions, the City may not invest more than 10% of the market value of the portfolio in this category. The maximum term of investment is five (5) years, u nless otherwise approved by City Council. To exceed the five-year maturity limit, the authority must be approved by the City Council at least three months prior to the purchase of any se curity exceeding the five -year maturity limit.

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY
9 K. Investment Pools - Maximum of 30%
Investment structures other than L.A.I.F., rated AA or higher, incorporating investment pools permitted in California Govern ment Code Sections 53601, 53635, and 5922 (d). Government Code Section 53635 (c) allows the City to invest in commercial paper, debt securities, or other obligations of a public bank, as defined in Section 57600. California Government Code Section 53635.2 added public banks to the list of depository institutions. However, Section 53601 shall apply to investment pools that have the same governing body.

L. Municipal Bonds - Maximum of 10%
The City may invest in bonds issued by a state or local government agency.

Bonds eligible for investment shall be rated in a rating category of “A” or its equivalent or better by an NRSRO.

M. Bonds Issued by the City of Hesperia – Maximum of 25% The City may acquire its own bonds, pursuant to Section 53601 (a) and (d), including bonds payable solely out of the revenues from a revenue –producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.

N. Supranational Obligations – Maximum of 30%
Pursuant to Government Code Section 53601 (q), the City may invest in United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, Internatio nal Finance Corporation, or Inter -American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and shall not exceed 30 percent of the City’s moneys that may be invested pursuant to this section.

O. Public Bank Obligations – Maximum 100%
Pursuant to Government Code Section s 53601 (r), 53635 (c), and 57603, the City may invest in commercial paper, debt securities, or other obligations of a public bank, as defined in Section 57600. The maximum term of investment is five (5) years.

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

10 Summary of Maximum % Limitations of Investments by Investment Type:

The following summary of maximum percentage limits, by investment type, is established for the City’s total pooled funds portfolio:

XVI. PROHIBITED INVESTMENTS

In accordance with CGC Section 53601.6, the City will not invest any funds in inverse floaters, range notes, or interest only strips that are derived from a pool of mortgages.

Additionally, the City will not invest any funds in reverse repurchase agreemen ts, mortgage pass -through securities or collateralized mortgage obligations currently permitted under CGC Section 53601. Further, per the Securities and Exchange Commission (SEC), local governments do n ot qualify as Qualified Institu tional Buyers (QIBs) and are not allowed to purchase Rule 144A securities. As such, the City will not invest in Rule 144A securities.

XVII. LEGISLATIVE CHANGES

Any State of California legislative action that further restricts allowable maturities, investment type, or percentage allocations will be incorporated into the City of Hesperia’s Investment Policy, and supersede any and all previous applicable language.

XVIII. INTEREST EARNINGS

All moneys earned and collected from investments authorized in this policy shall be allocated on a quarterly basis to various fund accounts where required by law based on the cash balance in each fund as a percentage of the entire pooled portfolio. However, accounts requiring full liquidity will receive their proportional distribution of moneys based on the lower of pooled or overnight rates.

XIX. LIMITING MARKET VALUE EROSION

The longer the maturity of securities, the greater the potential for market price volatility, therefore, it is the general policy of the City to limit the potential effects from erosion in market values by adhering to the following guidelines:

A. All immediate and anticipated liquidity requirements will be addressed prior to purchasing all investments.

Authorized Investment Type
Maximum
Maturity
Maximum
Percentage
Of Portfolio
Maximum
Investment
In One Issuer
U.S. Treasury Obligations 5 years 100% None
U.S. & State or Local Agency Securities 5 years 100% None Banker’s Acceptances 180 days 25% 5%
Commercial Paper 270 days 15% 10%
Negotiable Certificates of Deposit 5 years 25% None
Repurchase Agreements 1 year 20% None
Local Agency Investment Fund (LAIF) N/A 100% None
Medium-Term Notes 5 years 30% None
Mutual & Money Market Funds N/A 20% 10%
Collateralized Bank Deposits 5 years 10% None
Investment Pools N/A 30% None
Municipal Bonds 5 years 10% None
Supranational Obligations 5 years 30% None
Public Bank Obligations 5 years 100% None

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY
11 B. Maturity dates for long-term investments will coincide with significant cash flow requirements where possible, to assist with short term cash requirements at maturity.

C. All long-term securities will be purchased with the intent to hold all investments to maturity under then-prevailing economic conditions. However, economic or market conditions may change, making it in the City’s best interest to sell or trade a security prior to maturity.

XX. PORTFOLIO MANAGEMENT ACTIVITY
The investment program shall seek to augment returns consistent with the intent of this policy, identified risk limitations and prudent investment principles. The objectives will be achieved by use of the following strategies:

A. Active Portfolio Management Through active fund and cash flow management taking advantage of current economic and interest rate trends, the portfolio yield may be enhanced with limited and measurable increases in risk by extending the weighted maturity of the total portfolio (not to exceed 1,275 days).

B. Portfolio Maturity Management When structuring the maturity composition of the portfolio, the City shall evaluate current and expected interest rate yields and necessary cash flow requirements. It is recognized t hat in normal market conditions longer maturities produce higher yields. However, the securities with longer maturities also experience greater price fluctuations when the level of interest rates change.

C. Security Swaps The City may take advantage of security swap opportunities to improve the overall portfolio yield. A swap, which improves the portfolio yield, may be selected even if the transactions result in an accounting loss.

Documentation for swaps will be included in the City’s permanent invest ment file documents.

D. Competitive Bidding It is the policy of the City to require competitive bidding for investment transactions that are not classified as “new issue” securities. For the purchase of non-”new issue” securities, and the sale of all securities, at least three bidders must be contacted. Competitive bidding for security swaps is also suggested, however, it is understood that certain time constraints and broker portfolio limitations exist which would not accommodate the competitive bidding process. If a time or portfolio constraining condition exists, the pricing of the swap should be verified to current market conditions and documented for auditing purposes.

XXI. INVESTMENT POLICY REVIEW
This Statement of Investment Policy is intended to conform to all applicable statutes at the time of adoption. The Investment Policy shall be reviewed and approved annually by the City Council at a public meeting to ensure consistency with the overall objectives of the preservation of capital, liquidity, and return of the portfolio. The Investment Policy shall also be reviewed to ensure its compliance and relevance to the current law, financial and economic trends, and to meet the cash flow requirements o f the City of Hesperia.

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY
12 Investment operations are reviewed monthly during the reconciliation process of investment transactions to the third party statements, and by the Management Services Department in the proof of cash process. The investment portfolio is audited annually by the City’s independent auditors which shall include a review for compliance with the City’s Statement of Investment Policy.

XXII. INDEMNIFICATION OF INVESTMENT OFFICIALS
Any investment officer exercising his or her assigned authority with due diligence and prudence, and in accordance with the City’s Investment Policy, will not be held personally liable for any individual investment losses or for total portfolio losses. _____________________________________ ______________________ Casey Brooksher Date
City Treasurer, City of Hesperia

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

13 GLOSSARY

AGENCIES: Federal agency securities and/or Government-sponsored enterprises.

BANKERS’ ACCEPTANCE: A draft of bill or exchange accepted by a bank or trust company.

The accepting institution guarantees payment of bill, as well as the issuer.

BID: The price offered by a buyer of securities.

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CDs are typically negotiable.

COLLATERAL: Securities, evidence of deposit, or other property that a borrower pledges to secure repayment of a loan. Also, refers to securities pledged by a bank to secure deposits of public monies.

COLLATERIALIZED MORTGAGE OBLIGATION: A security backed by a pool of pass through rates, structured so that there are several classes of bondhol ders with varying maturities, called tranches. The principal payments from the underlying pool of pass through securities are used to retire the bonds on a priority basis as specified in the prospectus.

DERIVATIVE: Contracts, such as options and futures, whose price is derived from the price of an underlying financial asset.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.

FEDERAL FUNDS RATE: The interest rate that banks with excess reserves charge other banks that need overnight loans.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., and 12 regional banks.

It is responsible for regulating monetary policy.

INTEREST-ONLY STRIP: A security based solely on t he interest payments from a pool of mortgages, Treasury Bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop and the value of the interest–only strip falls to zero.

INVERSE FLOATER: A derivative instrument whose coupon rate is linked to the market rate of interest in an inverse relationship.

INVESTMENT POOL: The aggregate of all funds from political subdivisions that are placed in the custody of the Treasurer for investment.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size and can be done at those quotes.

Council Meeting: 11/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY
14 GLOSSARY
MARKET RISK: The risk that the value of investments may decline over a given time period due to economic changes or other events that impact large portions of the market.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT : A written contract covering all future transactions between the parties to repurchase—reverse repurchase agreements that establishes each party’s rights in the transactions.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET: The market in which short -term debt instruments (bills, commercial paper, banker’s acceptances, etc.) are issued and traded.

MORTGAGE PASS-THRU SECURITY: A security created when one or more mortgage holders form a collection (pool) of mortgages sells shares or participation certificates in the pool. The cash flow from the collateral pool is passed t hrough to the security holder as monthly payments of principal, interest, and prepayments.

PORTFOLIO: Collection of securities held by an investor.

PRUDENT PERSON RULE: An investment standard. The trustee may invest in a security that someone in that same position would seek as reasonable income and preservation of capital.

PUBLIC BANK: a corporation, organized under the Nonprofit Mutual Benefit Corporation Law or the Nonprofit Public Benefit Corporation Law for the purpose of engaging in the commer cial banking business or industrial banking business, that is wholly owned by a local agency, local agencies, or a joint powers authority formed pursuant to the Joint Exercise of Powers Act that is composed only of local agencies (California Government Code 57600 (b) (1)).

REPURCHASE AGREEMENTS: An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date.

REVERSE REPURCHASE AGREEMENT: Refers to a repurchase a greement. From the customer’s perspective, the customer provides a collateralized loan to the seller.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

YIELD: The rate of annual income return on an investment, expressed as a percentage.

Council Meeting: 11/02/2021
11/15/2022
i
Attachment #12
City of Hesperia

STATEMENT
OF

INVESTMENT
POLICY
FISCAL YEAR 2021-222022-23

ii

TABLE OF CONTENTS

I. POLICY ..................................................................................................................... 1

II. SCOPE ..................................................................................................................... . 1

III. PRUDENCE .............................................................................................................. 1

IV. OBJECTIVE ............................................................................................................... 2

V. MAXIMUM MATURITIES ........................................................................................... 3

VI. PERFORMANCE STANDARDS ............................................................................... 3

VII. DELEGATION AND GRANTS OF AUTHORITY ....................................................... 3

VIII. INVESTMENT COMMITTEE ..................................................................................... 3

IX. ETHICS AND CONFLICT OF INTEREST ................................................................. 4

X. SAFEKEEPING AND CUSTODY AGREEMENTS .................................................... 4

XI. INTERNAL CONTROLS ............................................................................................ 4

XII. FINANCIAL REPORTING .......................................................................................... 4

XIII. AUTHORIZED FINANCIAL DEALERS & INSTITUTIONS ........................................ 5

XIV. COLLATERAL REQUIREMENTS ............................................................................. 5

XV. AUTHORIZED AND ACCEPTABLE INVESTMENTS ............................................... 5

XVI. PROHIBITED INVESTMENTS ................................................................................ 10

XVII. LEGISLATIVE CHANGES ....................................................................................... 10

XVIII. INTEREST EARNINGS ........................................................................................... 10

XIX. LIMITING MARKET VALUE EROSION ................................................................... 10

XX. PORTFOLIO MANAGEMENT ACTIVITY ................................................................ 11

XXI. INVESTMENT POLICY REVIEW ............................................................................ 11

XXII. INDEMNIFICATION OF INVESTMENT OFFICIALS ............................................... 12

GLOSSARY ............................................................................................................. 13

Council Meeting: 11/02/202111/15/2022

CITY OF HESPE
RIA

STATEMENT OF INVESTMENT POLICY
1 I. POLICY
This Statement of Investment Policy while conforming to all applicable statutes at the time of adoption is inte nded to provide guidelines under the “prudent investor” rule, for the investment of public funds, and outline the policies for maximizing the effectiveness and efficien
cy of Hesperia’s cash management system. The goal is twofold: one is to enhance the economic status of Hesperia while preserving its capital resources; the second is to
provide guidelines for authorized investments.

II. SCOPE
The City Treasurer is authorized to invest public funds in accordance with California Government Code (CGC) Sections 53600 et seq. and 5922 (d). This investment polic y
applies to all financia
l assets and investment activities of the City of Hesperia and includes,
but is not limited to, the following funds:
 General Fund
 Special Revenue Funds

Debt Service Funds
 Capital Project Funds
 Enterprise
Funds
 Agency Fund

Any new fund, unless specifically exempted
This policy, however, specifically excludes employees’ retirement, pension and deferred compensation funds. Additionally, moneys held by a trustee or fiscal agent shall be governed by CGC Sections 53601 (m) and 5922 (d).

III. PRUDENCE
All moneys entrusted to the City Treasurer will be pooled in an actively managed portfolio. The City of Hesperia shall participate in standards within the content of the Standard as set forth in CGC Section 53600.3 which states in part:
“When investing, reinvesting, purchasing, acquiring, exchanging, selling and manag ing public funds, a trustee shall act with
care; skill and prudence and diligence under the
circumstances then prevailing, that a prudent investor acting in like capacity and familiarity wi
th those matters would use in the conduct of funds of a like character and with like aims to safeguard the principal and maintain the liquidity needs of the agency.” Section 53600.3 of the government code declares each person, treasurer, or governing body authorized to make
investment decisions on behalf of local agencies to be a trustee, and therefore, a fiduciary subject to the prudent investor standard. These persons shall act with care
, skill and diligence under the circumstances then prevailing when investing, reinvesting,
purchasing, acquiring, exchanging, selling, and managing funds. Section 53600.5 further stipulates that the primary objective of any person investing funds is to safeguard principal; se
condly, to meet liquidity needs; and lastly, to achieve a return or yield on invested funds.

Council Meeting: 11/02/202111/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

2 IV. OBJECTIVE

The City’s treasury management system is designed to monitor and forecast expenditures and revenues, thus enabling the City to invest funds to the fullest extent possible. The City attempts to obtain the highest yield available, while investments meet the criteria established for safety, liquidity, and yield, in that order of priority.

A. SAFETY

Safety of principal is the foremost objective of the City of Hesperia. Each investment transaction shall seek to ensure capital losses are avoided, whether from securities default, rating downgrades, broker-dealer defaults, or erosion of market value. The City of Hesperia shall seek the preservation of capital by mitigating two types of risk: credit risk and market risk.

1. Credit risk is the risk of loss due to failure of the issuer and is mitigated by investing in safe securities, and diversifying the investment portfolio so the failure of any one issuer would not materially affect the cash flow of the City.

2. Market risk is the risk of market value fluctuations due to changes in the general level of interest rates, and shall be mitigated by limiting the average maturity of the City’s investment portfolio to three and one-half years, and the maximum maturity of any one security to five years. Market risk shall also be mitigated by structuring the portfolio so maturing securities match cash outflows, eliminating the need to sell securities prior to their maturity, and to avoid taking positions in securities for the purpose of selling those securities within a short period of time in order to realize a short term profit. It is recognized that within a diversified portfolio, occasional measured losses are inevitable, and must be considered within the context of the overall return on the investment.

B. LIQUIDITY

The City of Hesperia’s investment portfolio will remain satisfactorily liquid to enable the City to meet all anticipated and operating cash flow requirements.

C. MATURITY MATRIX

Maturities of investments will be selected based on liquidity requirements in order to minimize interest rate risk and maximize earnings. Current and expected yield curve analysis will be monitored, and the portfolio will be invested accordingly. As a general investment guideline, the following percentages of the pooled portfolio should be utilized in the investment maturity sectors:

Maturity Range Suggested Percentage Less than 1 year 0 to 100%
1 - 3 years 0 to 50%
3 - 5 years 0 to 50%

D. DIVERSIFICATION

The City of Hesperia’s investment pool will be diversified to avoid incurring unreasonable and avoidable risks. The investments will be diversified by security type and institution.

Regarding specific security types indicated in Section XV of this Investment Policy, no more than 10% of the City’s portfolio will be placed with any single private financial institution.

Council Meeting: 11/02/202111/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

3 E. RETURN ON INVESTMENTS

The City of Hesperia’s investment portfolio shall be designed to attain a market rate of return throughout economic cycles. Whenever possible with respect to budgetary and cash flow requirements, and consistent with risk limitations and prudent investment principles, the City Treasurer shall seek to augment returns above the market rate of return.

V. MAXIMUM MATURITIES

The City of Hesperia will match its investments with anticipated cash flow requirements.

Per California Government Code Sections 53601 et seq., maximum maturities shall not exceed five (5) years. The average maturity of funds should not exceed 1,275 days (3.5 years), and the cash flow requirements shall prevail at all times.

VI. PERFORMANCE STANDARDS

The City’s investment portfolio will be designed to obtain a market average rate of return during budgetary and economic cycles, taking into account the City of Hesperia’s investment risk constraints and cash flow requirements.

The City of Hesperia will operate in an active capacity in the investment strategy. The benchmark to be used by the City Treasurer to determine whether market yields are achieved shall be the State of California Local Agency Investment Fund (L.A.I.F.).

VII. DELEGATION AND GRANTS OF AUTHORITY

Management responsibility for the investment program is delegated to the City Treasurer (Director of Administrative Services) who shall establish written procedures and policies for the operation of the investment program consistent with this investment policy.

No person shall engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer. The procedures established by the City Treasurer shall cont ain internal accounting controls specifying delegation and grants of authority for the verification and recording of investment transactions to regulate the activities of subordinate representatives.

In the absence of the City Treasurer, the authority to direct investment transactions affecting City moneys will be restricted to the Deputy Finance Director as to maturity, investment instrument, and dollar size of the investment.

VIII. INVESTMENT COMMITTEE

The City of Hesperia City Council shall act as the investment committee consisting of five (5) Council members to include the Mayor and four (4) Council Members as elected by the people; to provide general oversight and guidance concerning the investment policy related to the management of the City’s investment pool. The committee shall meet monthly to review the Treasurer’s Cash Report.

Council Meeting: 11/02/202111/15/2022

CITY OF HESPE
RIA

STATEMENT OF INVESTMENT POLICY
4 IX. ETHICS AND CONFLICT OF INTEREST
The City Treasurer and all investment personn el shall refr ain from personal busin ess
activity which could crea
te a conflict with proper execution of the investment program, or which could impair the ability to execute impartial investment decisi ons. The City Treasurer and all investment personnel shall di sclose to th e City Attorney any mat erial
financial
interests in financial institutions that conduct business within the jurisdict ion, and shall disclose
any material financial investment positions that could be related in a conflict
ing manner to the performance of the City of Hesperia’s investment portfolio.

The City Treasurer shall complete on an annual basis, State of California Form 7 21, Statement o
f Economic Interests Disclosure.

X.

SAFEKEEPING AND CUSTODY AGREEMENTS
To protect a
gainst potential losses caused by collapse of individual securities dealers, all securities owned by the City shall be kept in safekeeping by a third party bank trust department, acting
as agent for the City under the terms of a custody agreeme nt executed by the bank a
nd the City. All securities will be received and delivered using standard delivery versus payment procedures with the City’s custodial bank, and evidenced by safekeeping receipts.

Custodial statements are reconciled to transaction
schedules by the Deputy Finance Director on a monthly basis.

XI. INTERN

AL CONTROLS
Separation
of duties among the employees involved in investment activities are designed to provide an ongoing internal review to prevent the potential for converting assets or concealing
transactions.

Proper documentation obtained from confirmation and cash disbursement wire transfers is required for each investment transaction. Timely bank reconciliat ions are conducted
to ensure proper handling of all transactions.

The investment portfolio and all related transactions are reviewed and balanced to appropriate general ledger accounts on a monthly basis.

An independent analysis by an ext
ernal auditor shall be conducted an nually to review
internal cont
rol, account activity, and compliance with policies and procedures.

XII. FINANCI AL REPORTING
Under provision of Section 53646 of the California Government Code, the City Treasurer may render a quarterly or monthly report to the City Co uncil, providing the type of
investment, financial institution from which the investment was purchased, the date of maturity, the date upon which the investment becomes subject to redemption provisions, amount (to include both par and book value) of the investment, and the current market value of all investments. The report shall also include the source of the market value.

Additionally, the report shall also
include the rate of interest, accrued interest earned, the amortized portion of the investment purchased at a premium or discount, and other data so required by the
City Council or by am endment to the above section of California Government Code and its successors. The report shall include a statement denoting the City’s ability to meet its
expenditure requirements for the following six month period, or an explanation as to why sufficient
moneys will not be available. Additi onally, the City

Council Meeting: 11/02/202111/15/2022

CITY OF HESPE
RIA

STATEMENT OF INVESTMENT POLICY
5 Treasurer shall state whether the City is in compliance with its investment policy and shall sign the Treasurer’s Report. Pursuant to Section 53607, local agency treasurers to whom the authority to invest or reinvest funds or to sell or exchange securities has been delegated by the legislative body of a local agency are required to submit a monthly report of transactions to the legislative body . The City renders a monthly Treasurer’s Report to the City Council.

XIII. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City of Hesperia shall transact business only with banks, savings and lo an institutio
ns, and registered investment securities dealers, managers, and advisors. The dealers sho
uld either be primary dealers authorized to buy and sell government securitie
s in direct dealings with the Federal Reserve Bank of New York, or regional dealers qualifying under the Securitie
s and Exchange Commission Rule 15C3-1.

The City Treasurer shall send a copy of the current Statement of Investment Policy to all dealers appr
oved to do business with the City of Hesperia. Confirmation of the dealer’s understanding of the City’s investme
nt policy shall be provided in writing by the dealer.

The City Treasurer shall examine financial institutions that wish to perform business with the City, in order to confirm whether the participatin
g financial institutions are
satisfactorily capitalized,
are market makers in securities appropriate to the City ’s financial
investment universe and agree to comply with the conditions set forth in the City of Hesperia’s Statement of Investment Policy.

XIV. COLLAT ERAL REQUIREMENTS
Collateralization is required for investments of public deposits in Certificates of Deposits (in excess o
f the FDIC insured amount) and all Repurchase Agreements. In order to reduce market risk, the collateral level will be at least 110% of market value of pr incipal and accrued
interest of eligible securities for Certificate of Deposit. The percentage of collateralization on repurchase agreements shall adhere to CGC Section 53601 (i) (2).

In order to conform with provisions of t he Federal Bankruptcy Code, which provides for the liquidation of securities held as collateral f or Repurchase Agreements, the only securitie
s acceptable as collateral shall be eligible Negotiable Certificates of Deposit, eligible Banker’s Acceptances, or securities that are fully guaranteed as to principal and interest by the United States or by any agency of the United States government.

All
securitie
s held as collateral shall have a maximum maturity of five (5) years.

XV.

AUTHORIZED AND ACCEPTABLE INVESTMENTS
The City of Hesperia is subject to California Government Code, Section 53601 et seq.

Within the context of the governing language, the following investments are authorized and accepted as defined
:

A. United States Treasury Bills, Notes and Bonds - Maximum of 100% United States Treasury Bills, Notes, and Bonds, or those for which the full faith and credit of the United States are pledged for payment of principal and interest.

There is no limitation as to the percentage of the portfolio, which can be invested in the category.

Council Meeting: 11/02/202111/15/2022

CITY OF HESPE
RIA

STATEMENT OF INVESTMENT POLICY
6 B. Obligations issued by the Federal Government, State of Califor nia or California Local Agency
- Maximum of 100%
Obligations issued by the Government National Mortgage Association (GNMA), the Federal Farm Credit Bank System (FFCB), the Federal Home Loan Bank Board (FHLB), the Federal Home Loan Mortgage Corporation (FHLMC), the Federal National Mortgage Asso
ciation (FNMA), Student Loan Marketing
Association (SLMA), State of California or California Local Agency. Although there is no percentage limitation on “governmental agency” issues, the prudent investor standard shall apply for a single agency name.

C. Bankers’ Acceptances - Maximum of 25%
Bankers’ Acceptances (BAs) otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank. Purchases of Bankers’ Acceptances shall not exceed 180 days’ maturity or 25% of the market value of the portfolio. No more than 5% of the market value of the portfolio may be invested in Bankers’
Acceptances issued by any one commercial bank.

D. Commercial Paper - Maximum of 15%
Commercial Paper of “prime” quality of the highest ranking or of the highest letter and n
umber rating as provided for by a nationally recognized statistica l rating organ
ization (NRSRO) as set forth in CGC 53601(h). The entity that issues the commercial paper shall meet all of the following conditions in either paragraph 1 or 2:

1. The entity meets the following criteria:
a) Is organized and operating in the United States as a g eneral corporation.
b) Has total assets in excess of five hundred million dollars ($500,000,000).
c) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equ
ivalent or higher by an NRSRO.

2. The entity meets the following criteria:
a) Is organized within the United States as a special p urpose corporation,
trust, or limited liability company.
b) Has program-wide credit enhancements including, but not limited to, overcollateralization,
letters of credit, or surety bond.
c) Has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO.

Commercial Paper purchases shall
have a maximum maturity of 270 days or
less and cannot exceed 15% of the market value of the portfolio (30% if the dollar weighted average maturity of all commercial paper does not exceed 31 days). Purchase of commercial paper may not exceed 10% of outstanding paper of an issuing corporation pursuant to CGC 53635(a)(2).

E. Negotiable Certificates of Deposit - Maximum of 25%
Negotiable Certificates of Deposit (NCD) issued by a nationally or state- chartered bank or a state or federal savings and loan association. Pursuant to CGC 53601
(i) and 53638, the NCD must meet the following criteria:

Council Meeting: 11/02/202111/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

7 1. The deposit should not exceed the shareholder’s equity of any depository bank. The shareholder’s equity shall be determined in accordance with Section 118 of the Financial Code, but shall be deemed to include capital notes and debentures.

2. The deposit shall not exceed the total of the net worth of any depository savings association or federal association, except that deposits not exceeding a total of five hundred thousand dollars ($500,000) may be made to a savings association or federal association without regard to the net worth of that depository, if such deposits are insured or secured as required by law.

3. The deposit to the share accounts of any regularly chartered credit union shall not exceed the total of the unimpaired capital and surplus of the credit union, as defined by rule of the Commissioner of Financial Institutions, except that the deposit to any credit union share account in an amount not exceeding five hundred thousand dollars ($500,000) may be made if the share accounts of that credit union are insured or guaranteed pursuant to Section 14858 of the Financial Code or are secured as required by law.

4. The deposit in investment certificates of a federally insured industrial loan company shall not exceed the total of the unimpaired capital and surplus of the insured industrial loan company.

Purchases of negotiable certificates of deposits may not exceed 25% of the market value of the portfolio. A maturity limitation of five (5) years is applicable on NCDs.

F. Repurchase Agreements - Maximum of 20%
The City may invest in Repurchase Agreements with banks and dealers with which the City has entered into a Master Repurchase Agreement which specifies terms and conditions of Repurchase Agreements. A signed copy of the Master Repurchase Agreement shall be required from the authorized financial dealer prior to the execution of any applicable transaction. The maturity of Repurchase Agreements s hall not exceed one year. The market value of securities used as collateral for Repurchase Agreements shall be monitored daily, and will not be allowed to fall below 102% of the value of the Repurchase Agreement as set forth in CGC Section 53601 (j) (2).

G. Local Agency Investment Fund - Maximum of $75 million per account The City may invest in the Local Agency Investment Fund (L.A.I.F.) established by the State Treasurer, for the benefit of local agencies, up to the maximum permitted by State law, which is currently $75 million dollars per account. There is no limitation as to the percentage of the portfolio a local agency can invest in L.A.I.F. under CGC 16429.1, which allows a local agency to remit to the Treasurer any money not required for immediate needs and gives the agency the exclusive determination of the length of time its money will be on deposit with the Treasurer.

H. Medium Term Notes - Maximum of 30%
Medium Term Notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository

Council Meeting: 11/02/202111/15/2022

CITY OF HESPE
RIA

STATEMENT OF INVESTMENT POLICY
8 institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment shall be rated in a rating category of “A” or its equivalent or better by an NRSRO. No more than 30% of the market value of the portfolio may be invested in Medium-Term Notes pursuant to CGC 53601 (k), and no more than 10% of the total assets of the investments may be invested in any one issuer’s medium term notes
pursuant to CGC 53635(a)(2).

I. Mutual and Money Market Funds - Maximum of 20%
Shares of beneficial interest issued by diversified management companies that are funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as defined in Section 53601 (l) of the California Government Code. For securities and obligations investments above two hundred fifty thousand dollars
($250,000), the investments must comply
with the investment restrictions pursuant to Section 53601 (l), companies shall either:

1. Attain the highest ranking or the highest letter and numerical ranking provided by
not less than two NRSROs.

2. Retain an investment advisor register ed or exempt from registration with the Securities a
nd Exchange Commission with not less than five
years’ experience managing mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).

The purchase price of shares of beneficial intere
st purchased pursuant
to this section shall not include any commission that these companies may charge
and shall not exceed 20% of the a gency’s moneys that
may be in
vested in mutual funds. In addition, no more than 10% of the agency’s funds may be
invested in shares of beneficial interest of any
one mutual
fund. Further, the City may invest only in mu tual and money
market funds which have an average maturity of 90 days or less per Securities & Exchange Commission reg
ulations.

3. All positions in government-sponsored investment pools and permitted mutual and
money market funds (per Sections G and I, ab ove) shall be subject
to periodic review by the City Treasurer, or a designee thereof, in
order to ensure that the moneys in question are managed in a manner consistent with the standards and objectives set forth elsewhere in this Policy.

J. Collateralized Bank Deposits - Maximum of 10%
The City may invest in
collateralized bank deposits in the form of notes, bonds, or other obligations which are at all times secured by a valid first priority security interest.

The securities serving as collateral shall be placed by delivery or book entry into the custody of a trust company or the trust department of a bank which is not affiliated with the issuer of the secured obligation, and the security interest shall be perfected in
accordance with the requireme nts of the Uniform
Commercial Code or Fe
deral regulations applicable to the types of securities in which the security interest is placed. For purposes of Time Deposits issued by financial
institutions, the City may not invest more than 10% of the market value of the portfolio in this category. The maximum term of investment is fi ve (5) years, unless otherwise
approved by City Council. To exceed the five-yea r
maturity limi
t, the authority must be approved by the City Council at least three months prior to the purchase of any security exceeding the five-year maturity limit.

Council Meeting: 11/02/202111/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

9 K. Investment Pools - Maximum of 30%
Investment structures other than L.A.I.F., rated AA or higher, incorporating investment pools permitted in California Government Code Sections 53601, 53635, and 5922 (d). Government Code Section 53635 (c) allows the City to invest in commercial paper, debt securities, or other obligations of a public bank, as defined in Section 57600.

California Government Code Section 53635.2
added public banks to the list of depository institutions. However, Section 53601 shall apply to investment pools that have the same governing body.

L. Municipal Bonds - Maximum of 10%
The City may invest in bonds issued by a state or local government agency.

Bonds eligible for investment shall be rated in a rating category of “A” or its equivalent or better by an NRSRO.

M. Bonds Issued by the City of Hesperia – Maximum of 25% The City may acquire its own bonds, pursuant to Section 53601 (a) and (d), including bonds payable solely out of the revenues from a revenue–producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.

N. Supranational Obligations – Maximum of 30%
Pursuant to Government Code Section 53601 (q), the City may invest in United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and shall not exceed 30 percent of the City’s moneys that may be invested pursuant to this section.

O. Public Bank Obligations – Maximum 100%
Pursuant to Government Code Sections 53601 (r), 53635 (c), and 57603, the City may invest in commercial paper, debt securities, or other obligations of a public bank, as defined in Section 57600. The maximum term of investment is five (5) years.

Council Meeting: 11/02/202111/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

10 Summary of Maximum % Limitations of Investments by Investment Type:

The following summary of maximum percentage limits, by investment type, is established for the City’s total pooled funds portfolio:

XVI. PROHIBITED INVESTMENTS

In accordance with CGC Section 53601.6, the City will not invest any funds in inverse floaters, range notes, or interest only strips that are derived from a pool of mortgages.

Additionally, the City will not invest any funds in reverse repurchase agreements, mortgage pass-through securities or collateralized mortgage obligations currently permitted under CGC Section 53601. Further, per the Securities and Exchange Commission (SEC), local governments do not qualify as Qualified Institutional Buyers (QIBs) and are not allowed to purchase Rule 144A securities. As such, the City will not invest in Rule 144A securities.

XVII. LEGISLATIVE CHANGES

Any State of California legislative action that further restricts allowable maturities, investment type, or percentage allocations will be incorporated into the City of Hesperia’s Investment Policy, and supersede any and all previous applicable language.

XVIII. INTEREST EARNINGS

All moneys earned and collected from invest ments authorized in this policy shall be allocated on a quarterly basis to various fund accounts where required by law based on the cash balance in each fund as a percentage of the entire pooled portfolio. However, accounts requiring full liquidity will receive their proportional distribution of moneys based on the lower of pooled or overnight rates.

XIX. LIMITING MARKET VALUE EROSION

The longer the maturity of securities, the greater the potential for market price volatility, therefore, it is the general policy of the City to limit the potential effects from erosion in market values by adhering to the following guidelines:

A. All immediate and anticipated liquidity requirements will be addressed prior to purchasing all investments.

A uthorized Investm ent Ty pe
Maximum
Maturity
Maximum
Percentage
Of Portfolio
Maximum
Investm ent
In One Issuer
U.S. Treasury Obligations 5 years 100% None
U.S. & State or Local Agency Securities 5 years 100% None Banker’s Acceptances 180 days 25% 5%
Commercial Paper 270 days 15% 10%
Negotiable Certificates of Deposit 5 years 25% None
Repurchase Agreements 1 year 20% None
Local Agency Investment Fund (LAIF) N/A 100% None
Medium-Term Notes 5 years 30% None
Mutual & Money Market Funds N/A 20% 10%
Collateralized Bank Deposits 5 years 10% None
Investment Pools N/A 30% None
Municipal Bonds 5 years 10% None
Supranational Obligations 5 years 30% None
Public Bank Obligations 5 years 100% None

Council Meeting: 11/02/202111/15/2022

CITY OF HESPE
RIA

STATEMENT OF INVESTMENT POLICY
11 B. Maturity dates for long-term investments will coincide with significant cash flow requirements where po
ssible, to assist with short term cash requirements at
maturity.

C. All long-term securities will be purchased with the intent to hold all investments to maturity under then-pr
evailing economic conditions. However, economic or
market conditions may change, making it
in the City’s best interest to sell or
trade a security prior to maturity.

XX. PORTF OLIO MANAGEMENT ACTIVITY
The investment program shall seek to augment returns consistent with the intent of this policy, identified risk limitations and prudent investment principles. The objectives w ill be achieved by use of the following strategies:

A. Active Portfolio Management Through active fund and cash flow management taking advantage of current economic and interest rate trends, the portfolio yield may be enhanced with limited and measurable increases in risk by exte nding
the weighted maturity of
the total portfolio (not to exceed 1,275 days).

B. Portfolio Maturity Management When structuring the maturity composition of the portfolio, the City shall evaluate curr ent and expected int erest rate yields and necessary cash flow requireme
nts. It is recognized that in normal market
conditions lo
nger maturities produce higher yields. However, the securities with longer matu
rities also experience greater price fluctuations when the le vel of interest rate
s change.

C. Security Swaps The City may take advantage of security swap opportunities to improve the overall portfolio yield. A swap, which improves the portfolio yield, may be selected even if the transactions result in an accounting loss.

Documentation for swaps will be included in the City’s permanent investment file documents.

D. Competitive Bidding It is the policy of the City to require competitive bidding for investment transactions that are not classified as “new issue” securities. For the purchase of non-”new issue” securities, and t
he sale of all securities, at least
three bidders must be contacted. Competitive bidding for security swaps is also suggested, however, it is understoo
d that certain time constraints and broker
portfolio limit
ations exist which would not accommodate the competitive bidding process. If
a time or portfolio constraining condition exists, the pricing of the swap should be verified to current market conditions and documented for auditing purposes.

XXI. INVESTMENT POLICY REVIEW
This Statement of Investment Policy is intended to conform to all applicable statutes at the time of adoption. The Investment Policy shall be reviewed and ap proved annually
by the City Council at a
public meeting to ensure consistency with the overall objectives of the preser
vation of capital, liquidity, and return of the portfolio. The Investment Policy shall also b
e reviewed to ensure its compliance and relevance to the current law, financial an
d economic trends, and to meet the cash flow requirements of the City of Hesperia.

Council Meeting: 11/02/202111/15/2022

CITY OF HESPE
RIA

STATEMENT OF INVESTMENT POLICY
12 Investment operations are reviewed monthly during the reconciliation process of investment transactions to the third party statements, and by the Management Services Department in the proof of cash process. The investment portfolio is audited annually by the City’s independent auditors which shall include a review for compliance with the City’s Statement of Investment Policy.

XXII.

INDEMNIFICATION OF INVESTMENT OFFICIALS
Any investment officer e
xercising his or her assigned authority with due diligence a nd prudence, a
nd in accordance with the City’s Investment Policy, will not be held personally liable for an
y individual investment losses or for total portfolio losses. _____________________________________ ______________________ Casey Broo
ksher Date
City Treasurer, City of Hesperia

Council Meeting: 11/02/202111/15/2022

CITY OF HESPE
RIA

STATEMENT OF INVESTMENT POLICY
13 GLOSSARY
AGENCIES: Federal agency securities and/or Government-sponsored enterprises.

BAN
KERS’ ACCEPTANCE: A draft of bill or exchange accepted by a bank or trust company.

The accepting institution guarantees payment of bill, as well as the issuer.

BID: The price offered by a buyer of securities.

BROKER: A broker brings buyers and sellers together for a commission.

CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CDs are typically negotiable.

COLLATERAL: Securities, evidence of deposit, or other property that a borrower pledges to secure repayment of a loan. Also, refers to securities pledged by a bank to secure deposits of public monies.

COLLATERIALIZED MORTGAGE OBLIGATION: A security backed by a pool of pass through rates, structured so that there are several classes of bondholders with varying maturities, called tranches. The principal payments from the underlying pool of pass through securities are used to retire the bonds on a priority basis as specified in the prospectus.

DERIVATIVE: Contracts, such as options and futures, whose price is derived from the price of an underlying financial asset.

DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per deposit.

FEDERAL FUNDS RATE: The interest rate that banks with excess reserves charge other banks that need overnight loans.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven member Board of Governors in Washington, D.C., and 12 regional banks.

It is responsible for regulating monetary policy.

INTEREST-ONLY STRIP: A security based solely on the interest payments from a pool of mortgages, Treasury Bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop and the value of the interest–only strip falls to zero.

INVERSE FLOATER: A derivative instrument whose coupon rate is linked to the market rate of interest in an inverse relationship.

INVESTMENT POOL: The aggregate of all funds from political subdivisions that are placed in the custody of the Treasurer for investment.

LIQUIDITY:

A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size and can be done at those quotes.

Council Meeting: 11/02/202111/15/2022

CITY OF HESPERIA

STATEMENT OF INVESTMENT POLICY

14 GLOSSARY

MARKET RISK: The risk that the value of investments may decline over a given time period due to economic changes or other events that impact large portions of the market.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MASTER REPURCHASE AGREEMENT : A written contract covering all future transactions between the parties to repurchase—reverse repurchase agreements that establishes each party’s rights in the transactions.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, banker’s acceptances, etc.) are issued and traded.

MORTGAGE PASS-THRU SECURITY: A security created when one or more mortgage holders form a collection (pool) of mortgages sells shares or participation certificates in the pool. The cash flow from the collateral pool is passed through to the security holder as monthly payments of principal, interest, and prepayments.

PORTFOLIO: Collection of securities held by an investor.

PRUDENT PERSON RULE: An investment standard. The trustee may invest in a security that someone in that same position would seek as reasonable income and preservation of capital.

PUBLIC BANK: a corporation, organized under the Nonprofit Mutual Benefit Corporation Law or the Nonprofit Public Benefit Corporation Law for the purpose of engaging in the commercial banking business or industrial banking business, that is wholly owned by a local agency, local agencies, or a joint powers authority formed pursuant to the Joint Exercise of Powers Act that is composed only of local agencies (California Government Code 57600 (b) (1)).

REPURCHASE AGREEMENTS: An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date.

REVERSE REPURCHASE AGREEMENT: Refers to a repurchase agreement. From the customer’s perspective, the customer provides a collateralized loan to the seller.

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

YIELD: The rate of annual income return on an investment, expressed as a percentage.

JOINT RESOLUTION NO. 2022-57
RESOLUTION NO. SA 2022-01
RESOLUTION NO. HHA 2022-06
RESOLUTION NO. CDC 2022-03
RESOLUTION NO. HFPD 2022-05
RESOLUTION NO. HWD 2022-12

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

CALIFORNIA, SUCCESSOR AGENCY FOR THE HESPERIA COMMUNITY

REDEVELOPMENT AGENCY, THE BOARD OF DIRECTORS OF THE

HESPERIA HOUSING AUTHORITY, COMMISSIONERS OF THE COMMUNITY

DEVELOPMENT COMMISSION, THE BOARD OF DIRECTORS OF THE

HESPERIA FIRE PROTECTION DISTRICT, AND THE BOARD OF DIRECTORS

FOR THE HESPERIA WATER DISTRICT ANNUALLY APPROVING THE

STATEMENT OF INVESTMENT POLICY
WHEREAS, it is the responsibility of the City Treasurer to protect, preserve and maint ain cash and investments of the City of Hesperia (City), Successor Agency for the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Hesperia Community Development Commission, Hesperia Fire Protection District, and Hesperia Water District , on behalf of the citizens of this community; and
WHEREAS, it is the City Treasurer’s responsibility to review and/or amend and present to the City Council, Commissioners, and Board of Directors for approval, a Statement of Investment Policy which is int ended to provide guidelines for the prudent investment of public funds while maintaining compliance with all applicable local, state and federal laws and regulations; and WHEREAS, it is the policy of the City , Successor Agency for the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Hesperia Community Development Commission, Hesperia Fire Protection District, and Hesperia Water District to invest public funds not required for immediate day-to-day operations in safe and liquid investments having a market- average rate of return, while conforming to all federal, state and local statutes governing the prudent investment of public funds, with the City’s , Successor Agency for the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Hesperia Community Development Commission, Hesperia Fire Protection District, and Hesperia Water District’s ultimate goal being to enhance its economic status while protecting funds, taking the “Prudent Investor Rule” as its guide in carrying out this goal; and WHEREAS, it is the City’s , Successor Agency for the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Hesperia Community Development Commission, Hesperia Fire Protection District, and Hesperia Water District’s position that the Statement of Investment Policy shall apply to the investment activities of all contingency reserves and inactive cash balances under the direct authority of the City , Commissioners, and Board of Directors , which shall include investments of the City of Hesperia, Successor Agency for the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Hesperia Community Development Commission, Hesperia Fire Protection District, and Hesperia Water Distric t itself, which investments shall be pooled in a diversified portfolio; and

Joint Resolution No. 2022-57, SA 2022-01, HHA 2022-06, CDC 2022-03, HFPD 2022-05, & HWD 2022-12

WHEREAS, the attached Statement of Investment Policy has been developed using the Municipal Treasurers Association Model Investment Policy as a guide, assuring compliance with current state legislation, while providing a management tool to implement future investment decisions by the City Treasurer; and

WHEREAS, an annual review of the Statement of Investment Policy has recently been concluded and the policy is in compliance wi th California Gove rnment Code Sections 53600 et. seq. and 5922(d).

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

CALIFORNIA, SUCCESSOR AGENCY FOR THE HESPERIA COMMUNITY

REDEVELOPMENT AGENCY, THE BOARD OF DIRECTORS OF THE HESPERIA HOUSING

AUTHORITY, COMMISSIONERS OF THE COMMUNITY DEVELOPMENT COMMISSION, THE

BOARD OF DIRECTORS OF THE HESPERIA FIRE PROTECTION DISTRICT, AND BOARD OF DIRECTORS OF THE HESPERIA WATER DISTRICT, AS FOLLOWS:

Section 1. That the recitals above are true and correct and adopted as findings.

Section 2. The Statement of Investment Policy, included herein as “Attachment 1” of this Joint Resolution, as the Statement of Investment Policy for the City of Hesperia is hereby adopted.

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

ADOPTED AND APPROVED this 15th day of November 2022.

_________________________________
Brigit Bennington, Mayor/Chair

ATTEST:

______________________________________
Erin Baum, Assistant City Clerk

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT
DATE: November 15, 2022
TO: Mayor and Council Members
Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Service Rita Perez, Deputy Human Resources/Risk Management Director SUBJECT: Revised Combined Compensation Schedules

RECOMMENDED ACTION
It is recommended that the City Council and Board of Directors of the Hesperia Water District adopt Joint Resolution No. 2022-77 and HWD 2022 -18, approving the City’s Fiscal Year ( FY) 2022-23 revised Combined Compensation Schedule.

BACKGROUND
The California Public Employees' Retirement System (CalPERS) requires that the City Council, Commissions, and Board of Directors (City Council) approve and adopt a Combined Compensation Schedule whenever there are changes to salaries. In order for an employee to receive service credit for a salary the salary must be listed on an approved and adopted Compensation Schedule.

The most recent approved and adopted Combined Compensation Schedule occurred on July 19, 2022 with the adoption of Resolution No. 2022-55, HHA- 2022-05 and HWD 2022-05.

ISSUES/ANALYSIS
On October 4, 2022, the City Council adopted the Second Amendment to Current City Manager Employment Agreement.

On November 3 , 2022 and in compliance with CalPERS Retirement Law Section 21224, the City Manager designated a Retired Annuitant position, Principal Planner - Part-Time Retired Annuitant, with an hourly range 44 to perform the specialized skills needed.

FISCAL IMPACT
There is n o fiscal impact to adopting the Combined Compensation Schedules as this is an information schedule required by CalPERS . These increases will be included in the revised adopted budget.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

Staff Report to the City Council and Board of Directors of Hesperia Water District Revised Combined Compensation Schedules
November 15, 2022

ATTACHMENT(S)

1. Joint Resolution No. 2022-77 and HWD 2022-18

2. Combined Compensation Schedule Revised and Effective October 8, 2022

JOINT RESOLUTION NO. 2022-77
RESOLUTION NO. HWD 2022-18

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

CALIFORNIA, AND THE BOARD OF DIRECTORS OF THE HESPERIA
WATER DISTRICT, APPROVING THE CITY’S REVISED COMBINED

COMPENSATION SCHEDULE
WHEREAS, in compliance with California Public Employees’ Retirement System ( CalPERS) and Title 2 of C alifornia Code of Regulations Section 570.5 , the City C ouncil of the City of Hesperia and the Board of Directors of the Hesperia Water District must approve and ad opt a Compensation Schedule that lists all employee positions; and WHEREAS, the City Council of the City of Hesperia and the Board of Directors of the Hesperia Water District adopted a revised Combined Compensation Schedule on July 19, 2022; and WHEREAS, Joint Resolution No. 2022-45, Exhibit A prescribes the salaries, benefits, and other related policies for employees of the City not represented by an employee labor relations organization and commonly called Non-Represented Employees; and WHEREAS, Resolution 2022-35 Exhibit A prescribes a Memorandum of Understanding and the salaries, benefits, and other terms and conditions for employees of the City of Hesperia represented by the Teamsters, Local 1932; and
WHEREAS, on October 4, 2022, the City Council approved the Second Amendment to the City Manager Employment Agreement which prescribes the salaries and benefits of the City Manager; and
WHEREAS, on November 3, 2022, the City Manager designated the Retired Annuitant position based on the need for specia lized skills and in compliance with CalPERS Retirement Law Section 21224; and
WHEREAS, Resolution 2022-23 approves the annual Fiscal Year 2022-23 Operating Budget.

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF

HESPERIA, CALIFORNIA, AND THE BOARD OF DIRECTORS OF THE HESPERIA WATER DISTRICT AS FOLLOWS:

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

Section 2. That the City Council and Board of Directors of the Hesperia Water District approves the attached revised Combined Compensation Schedule effective October 8, 2022. The schedule list all employee positions, clearly indicate s the time base for salaries, base pay rates only and includes the effective and revised dates of the schedule. The schedule will be posted on the City’s internet page once approved.

Section 3. That the City Clerk/Board Secretary shall certify to the passage and adoption of this Joint Resolution and enter it into the book of original resolutions.

Joint Resolution No. 2022-77 and HWD 2022-18

ADOPTED AND APPROVED this 15th day of November 2022.
______________________________
Brigit Bennington, Mayor/Chair
ATTEST:
_______________________________________
Erin Baum, Assistant City Clerk/Board Secretary

Benefit Group Range # 1 2 3456789 1 0 11
GEN 33 5,349 5,456 5,565 5,676 5,790 5,906 6,024 6,145 6,268 6,393 6,521 GEN 31 4,851 4,948 5,047 5,148 5,251 5,356 5,463 5,572 5,683 5,797 5,913 GEN 27 3,990 4,070 4,151 4,234 4,319 4,405 4,493 4,583 4,675 4,769 4,864 PRO/SUP 34 5,617 5,729 5,844 5,961 6,080 6,202 6,326 6,453 6,582 6,714 6,848 GEN 30 4,620 4,712 4,806 4,902 5,000 5,100 5,202 5,306 5,412 5,520 5,630 PRO/SUP 34 5,617 5,729 5,844 5,961 6,080 6,202 6,326 6,453 6,582 6,714 6,848 PRO/SUP 37 6,503 6,633 6,766 6,901 7,039 7,180 7,324 7,471 7,620 7,772 7,927 PRO/SUP 37 6,503 6,633 6,766 6,901 7,039 7,180 7,324 7,471 7,620 7,772 7,927 AW SR. MGT 53 14,195 14,479 14,769 15,064 15,365 15,672 15,985 16,305 16,631 16,964 17,303 PRO/SUP 38 6,828 6,965 7,104 7,246 7,391 7,539 7,690 7,844 8,001 8,161 8,324 PRO/SUP 35 5,898 6,016 6,136 6,259 6,384 6,512 6,642 6,775 6,911 7,049 7,190 PRO/SUP 38 6,828 6,965 7,104 7,246 7,391 7,539 7,690 7,844 8,001 8,161 8,324 GEN 33 5,349 5,456 5,565 5,676 5,790 5,906 6,024 6,145 6,268 6,393 6,521 PRO/SUP 39 7,169 7,312 7,458 7,607 7,759 7,914 8,072 8,233 8,398 8,566 8,737 PRO/SUP 37 6,503 6,633 6,766 6,901 7,039 7,180 7,324 7,471 7,620 7,772 7,927 PRO/SUP 34 5,617 5,729 5,844 5,961 6,080 6,202 6,326 6,453 6,582 6,714 6,848 GEN 35 5,898 6,016 6,136 6,259 6,384 6,512 6,642 6,775 6,911 7,049 7,190 PRO/SUP 37 6,503 6,633 6,766 6,901 7,039 7,180 7,324 7,471 7,620 7,772 7,927 GEN 28 4,190 4,274 4,360 4,447 4,536 4,627 4,720 4,814 4,910 5,008 5,108 SR. MGT 45 9,608 9,800 9,996 10,196 10,400 10,608 10,820 11,036 11,257 11,482 11,712 SR. MGT 45 9,608 9,800 9,996 10,196 10,400 10,608 10,820 11,036 11,257 11,482 11,712 SR. MGT 46 10,088 10,290 10,496 10,706 10,920 11,138 11,361 11,588 11,820 12,056 12,297 SR. MGT 45 9,608 9,800 9,996 10,196 10,400 10,608 10,820 11,036 11,257 11,482 11,712 AW SR. MGT 52 13,519 13,789 14,065 14,346 14,633 14,926 15,225 15,530 15,841 16,158 16,481 AW SR. MGT 50 12,262 12,507 12,757 13,012 13,272 13,537 13,808 14,084 14,366 14,653 14,946 AW SR. MGT 45 9,608 9,800 9,996 10,196 10,400 10,608 10,820 11,036 11,257 11,482 11,712 MGT 44 9,150 9,333 9,520 9,710 9,904 10,102 10,304 10,510 10,720 10,934 11,153 GEN 35 5,898 6,016 6,136 6,259 6,384 6,512 6,642 6,775 6,911 7,049 7,190 PRO/SUP 38 6,828 6,965 7,104 7,246 7,391 7,539 7,690 7,844 8,001 8,161 8,324 PRO/SUP 37 6,503 6,633 6,766 6,901 7,039 7,180 7,324 7,471 7,620 7,772 7,927 PRO/SUP 35 5,898 6,016 6,136 6,259 6,384 6,512 6,642 6,775 6,911 7,049 7,190 PRO/SUP 37 6,503 6,633 6,766 6,901 7,039 7,180 7,324 7,471 7,620 7,772 7,927 MGT 41 7,904 8,062 8,223 8,388 8,556 8,727 8,902 9,080 9,262 9,447 9,636 GEN 32 5,094 5,196 5,300 5,406 5,514 5,624 5,737 5,852 5,969 6,088 6,210 PRO/SUP 37 6,503 6,633 6,766 6,901 7,039 7,180 7,324 7,471 7,620 7,772 7,927 MGT 44 9,150 9,333 9,520 9,710 9,904 10,102 10,304 10,510 10,720 10,934 11,153 MGT 37 6,503 6,633 6,766 6,901 7,039 7,180 7,324 7,471 7,620 7,772 7,927 GEN 32 5,094 5,196 5,300 5,406 5,514 5,624 5,737 5,852 5,969 6,088 6,210 PRO/SUP 38 6,828 6,965 7,104 7,246 7,391 7,539 7,690 7,844 8,001 8,161 8,324 PRO/SUP 37 6,503 6,633 6,766 6,901 7,039 7,180 7,324 7,471 7,620 7,772 7,927 GEN 26 3,800 3,876 3,954 4,033 4,114 4,196 4,280 4,366 4,453 4,542 4,633 GEN 32 5,094 5,196 5,300 5,406 5,514 5,624 5,737 5,852 5,969 6,088 6,210 PRO/SUP 37 6,503 6,633 6,766 6,901 7,039 7,180 7,324 7,471 7,620 7,772 7,927 MGT 43 8,714 8,888 9,066 9,247 9,432 9,621 9,813 10,009 10,209 10,413 10,621 MGT 40 7,528 7,679 7,833 7,990 8,150 8,313 8,479 8,649 8,822 8,998 9,178 MGT 40 7,528 7,679 7,833 7,990 8,150 8,313 8,479 8,649 8,822 8,998 9,178 PRO/SUP 35 5,898 6,016 6,136 6,259 6,384 6,512 6,642 6,775 6,911 7,049 7,190 MGT 38 6,828 6,965 7,104 7,246 7,391 7,539 7,690 7,844 8,001 8,161 8,324 GEN 35 5,898 6,016 6,136 6,259 6,384 6,512 6,642 6,775 6,911 7,049 7,190 GEN 32 5,094 5,196 5,300 5,406 5,514 5,624 5,737 5,852 5,969 6,088 6,210 MGT 40 7,528 7,679 7,833 7,990 8,150 8,313 8,479 8,649 8,822 8,998 9,178 GEN 28 4,190 4,274 4,360 4,447 4,536 4,627 4,720 4,814 4,910 5,008 5,108 GEN 28 4,190 4,274 4,360 4,447 4,536 4,627 4,720 4,814 4,910 5,008 5,108 MGT 41 7,904 8,062 8,223 8,388 8,556 8,727 8,902 9,080 9,262 9,447 9,636 Non-Represented Full-Time Monthly Rates
Accountant
Accounting Technician
Administrative Aide
Administrative Analyst
Administrative Secretary
Animal Services Specialist
Animal Services Supervisor
Assistant City Clerk
Assistant City Manager
Assistant Engineer
Assistant Planner
Associate Planner
Budget/Finance Specialist
Code Enforcement Supervisor
Community Development Supervisor
Community Relations Specialist
Construction Inspector
Customer Service Supervisor
Deputy City Clerk
Deputy Community Development Director
Deputy Development Services Director
Deputy Finance Director
Deputy Human Resources/Risk Management Director
Director of Administrative Services
Director of Government Services/ City Clerk
Director of Public Works
Economic Development Manager
Environmental Compliance Inspector
Facilities Supervisor
Field Services Supervisor
Financial Analyst
Fleet/Warehouse Supervisor
Geographical Information Systems Manager
Geographical Information Systems Technician
Human Resources Analyst
Information Systems Manager
Information Systems Specialist
Information Systems Technician
Maintenance Crew Supervisor
Management Analyst
Office Assistant
Personnel Technician
Plans Examiner
Project Construction Manager
Public Works Supervisor
Risk Manager
Secretary to the City Manager and City Counci
Senior Accountant
Senior Code Enforcement Officer
Senior Community Development Technician
Senior Management Analyst
Senior Office Assistant
Senior Office Specialist
Senior Planner
City Manager
Contract* Annually: $284,707; Monthly: $23,726
*Employment Agreement approved by City Council February 20, 2018, June 2, 2020, Resolution 2021-09, October 4, 2022 REVISED AND ADOPTED: 10/24/2022 Effective: October 8, 2022

CITY OF HESPERIA

HESPERIA WATER DISTRICT

COMBINED COMPENSATION SCHEDULE

INCLUDES CITY OF HESPERIA, HESPERIA WATER DISTRICT AND HESPERIA HOUSING AUTHORITY APPROVED AND ADOPTED: July 2, 2022
Attachment 4d Page 1 of 2 10/24/2022 rp
Attachment 2

REVISED AND ADOPTED: 10/24/2022 Effective: October 8, 2022

CITY OF HESPERIA

HESPERIA WATER DISTRICT

COMBINED COMPENSATION SCHEDULE

INCLUDES CITY OF HESPERIA, HESPERIA WATER DISTRICT AND HESPERIA HOUSING AUTHORITY APPROVED AND ADOPTED: July 2, 2022
Benefit Group Range # ABC D E
TEAMSTERS 8 3,676 3,860 4,053 4,256 4,469
TEAMSTERS 12 4,469 4,693 4,928 5,174 5,433
TEAMSTERS 18 5,990 6,290 6,605 6,935 7,282
TEAMSTERS 17 5,705 5,990 6,290 6,605 6,935
TEAMSTERS 12 4,469 4,693 4,928 5,174 5,433
TEAMSTERS 8 3,676 3,860 4,053 4,256 4,469
TEAMSTERS 10 4,053 4,256 4,469 4,693 4,928
TEAMSTERS 12.5 4,580 4,809 5,050 5,303 5,568
TEAMSTERS 13 4,693 4,928 5,174 5,433 5,705
TEAMSTERS 12 4,469 4,693 4,928 5,174 5,433
TEAMSTERS 10 4,053 4,256 4,469 4,693 4,928
TEAMSTERS 10.5 4,154 4,362 4,580 4,809 5,050
TEAMSTERS 10 4,053 4,256 4,469 4,693 4,928
TEAMSTERS 12.5 4,580 4,809 5,050 5,303 5,568
TEAMSTERS 12 4,469 4,693 4,928 5,174 5,433
TEAMSTERS 14 4,928 5,174 5,433 5,705 5,990
TEAMSTERS 10 4,053 4,256 4,469 4,693 4,928
TEAMSTERS 13 4,693 4,928 5,174 5,433 5,705
TEAMSTERS 13.5 4,809 5,050 5,303 5,568 5,846
TEAMSTERS 14.5 5,050 5,303 5,568 5,846 6,138
TEAMSTERS 14.5 5,050 5,303 5,568 5,846 6,138
TEAMSTERS 12 4,469 4,693 4,928 5,174 5,433
TEAMSTERS 14 4,928 5,174 5,433 5,705 5,990
TEAMSTERS 10 4,053 4,256 4,469 4,693 4,928
TEAMSTERS 14.5 5,050 5,303 5,568 5,846 6,138
TEAMSTERS 12.5 4,580 4,809 5,050 5,303 5,568
Benefit Group Range # 1 2 3456789 1 0 1 1
PART-TIME 15.00
PART-TIME 8 20.59 21.61 22.69 23.83 25.02
PART-TIME 8 20.59 21.61 22.69 23.83 25.02
PART-TIME 10 22.69 23.83 25.02 26.27 27.59
PART-TIME 35 34.03 34.71 35.40 36.11 36.83 37.57 38.32 39.09 39.87 40.67 41.48 PART-TIME 10 22.69 23.83 25.02 26.27 27.59
PART-TIME 26 21.92 22.36 22.81 23.27 23.74 24.21 24.69 25.19 25.69 26.20 26.73 PART-TIME 6 18.67 19.60 20.59 21.61 22.69
RETIRED 44 52.79 53.84 54.92 56.02 57.14 58.28 59.45 60.64 61.85 63.08 64.34 Teamsters, Local 1932, Full -Time Monthly Rates
Animal Care Technician
Animal Control Officer
Building Inspector
Code Enforcement Officer
Community Development Technician
Custodian
Customer Service Representative
Equipment Operator
Equipment Operator/Water
Facilities Maintenance Technician
Maintenance Worker
Maintenance Worker/Water
Meter Reader
Pump Operator
Senior Account Clerk
Senior Animal Control Officer
Senior Custodian
Senior Maintenance Worker
Senior Maintenance Worker/Water
Senior Pump Maintenance Worker
Senior Pump Operator
Senior Warehouse Technician
Traffic Signal Technician
Utility Line Locator
Water Quality Specialist
Water Quality Technician
Non-Represented Part-Time Hourly Rates
Administrative Intern - Part-Time
Animal Care Technician - Part-Time
Custodian- Part-Time
Customer Service Representative - Part-Time
Facilities Electrician - Part-Time
Maintenance Worker - Part-Time
Office Assistant - Part-Time
Receptionist - Part-Time
Principal Planner - Part-Time Retired Annuitant
GEN = General
PRO/SUP = Professional/Supervisory
MGT = Management
TEAMSTERS = Teamsters Local 1932
RETIRED = Retired Annuitant
SR. MGT = Senior Management
AW SR. MGT = At-Will Senior Management
Attachment 4d Page 2 of 2 10/24/2022 rp

City of Hesperia

STAFF REPORT
DATE: November 15, 2022
TO: Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Jeremy McDonald, Director of Public Works
Robert Worby, Fleet / Warehouse Supervisor
SUBJECT: Increase to Contract with Ferguson Waterworks

RECOMMENDED ACTION
It is recommended that the Board of Directors of the Hesperia Water District authorize the City Manager to increase the contract with Ferguson Waterworks in the amount of $50,000 for a new not-to-exceed amount of $175,000, for the purchase of DFW Plastics Inc. (DFW) meter boxes and lids.

BACKGROUND
The Hesperia Water District has standardized various services and repair products in order to minimize the need to stock multiple products and to simplify installation processes . Through standardization, the District utilizes DFW meter boxes, which Ferguson Waterworks is a direct distributor.

ISSUES/ANALYSIS
DFW manufactures polymer underground enclosures designed for advanced meter reading (AMR) technology. These are designed to replace concrete boxes of similar dimensions while offering additional working room inside the box for repair and maintenance of the meter. The lids are heavy duty polymer and can also fit existing concrete meter boxes. The polymer is blended to accommodate extreme weather conditions and to withstand inadvertent vehicular traffic. These lightweight boxes provide an easier installation process and will reduce physical effort on maintenance crews. This contract increase will allow the District to expand inventory as new orders can take nine months to receive due to a continued shortage of raw materials and labor.

FISCAL IMPACT
Funding has been included in the Fiscal Year 2022-23 Water Operating Budget.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)
None

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT
DATE: November 15, 2022
TO: Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Jeremy McDonald, Director of Public Works
Robert Worby, Fleet / Warehouse Supervisor
SUBJECT: Contract increase with Badger Meter Inc.

RECOMMENDED ACTION
It is recommended that the Board of Directors of the Hesperia Water District authorize the City Manager to increase the contract with Badger Meter Inc., in the amount of $75,000, for a new not- to-exceed amount of $350,000 for the purchase of water meters and related water meter parts.

BACKGROUND
The Hesperia Water District has exclusively installed Badger water meters since 1985 and is satisfied with their performance. Badger water meters meet the standards established by the American Water W orks Association and Badger Meter Inc. is the direct distributor in Southern California for Badger water meters.

ISSUES/ANALYSIS
Badger water meters interface with the cellular endpoints used for automated meter reading, and with Badger's Beacon automated metering analytics software. This contract to purchase Badger water meters will allow the Customer Service/Meter Program to continue with the meter rotation program, and maintain the ongoing implementation of the advanced automated meter reading system. Additionally, the District is expanding inventory as new orders take six months to receive due to a shortag e of meter components. This allows the purchase of water meters and miscellaneous replacement meter parts for the purpose of new service installs and the maintenance of existing services.

FISCAL IMPACT
Funding has been included in the Fiscal Year 2022-23 Water Operating Budget.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)
None.

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT
DATE: October 18, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager SECOND READING AND ADOPTION BY: Melinda Sayre, Director of Government Services/City Clerk Jacquelyn Castillo, Administrative Analyst
SUBJECT: Amendments to Title 10 and Title 16 of the Hesperia Municipal Code Defining the terms “Undeveloped Lots, Tracts, and Parcels” in the Commercial Vehicle Parking and Truck Routes Program

RECOMMENDED ACTION
It is recommended that the City Council introduce and place on first reading Ordinance No. 2022-14, amending Title 10 and Title 16 of the Hesperia Municipal Code to Define the terms “Undeveloped Lots, Tracts, and Parcels” in the commercial vehicle parking and truck routes program.

BACKGROUND
On January 5, 2021, the City Council introduced Ordinance No. 2020-13, implementing a program related to the regulation of commercial vehicle parking and a truck routes program.

ISSUES/ANALYSIS
For the Sheriff’s Department to issue certain citations to commercial vehicle drivers violating the City’s parking standards, Title 10, Chapter 10.25 – Truck Routes Program and Title 16, Chapter

16.20 General Regulations with respect to Article IV, Parking and Loa ding Standards, require revisions to explicitly define “Undeveloped Lots, Tracts, and Parcels” and further require additions to prohibit commercial vehicles from parking on private property, including developed and undeveloped lots in residential and non-residential areas, except as allowable.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Ordinance 2022-14

2. Exhibit A – Title 10 – Truck Routes Program

3. Exhibit A – Title 10 - Truck Routes Program Clean Copy

4. Exhibit B – Title 16 – Parking and Loading Standards

5. Exhibit B – Title 16 – Parking and Loading Standards Clean Copy

01071.0011/473404.2
ORDINANCE NO. 2022-14

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, AMENDING TITLE 16 , CHAPTER 16.20 OF THE HESPERIA

MUNCIPAL CODE MODIFY ING THE RESIDENTIAL AND NON -RESIDENTIAL PARKING STANDARDS, A ND AMENDING TITLE 10 , CHAPTER 10.2 5 OF THE HESPERIA MUNICIPAL CODE RELATED TO A TRUCK ROUTE PROGRAM.

WHEREAS, the City of Hesperia has the authority and responsibility to protect the public health, safety, and welfare; and
WHEREAS, Title 16 , Chapter 16.20 of the Hesperia Municipal Code c ontains residential and non-residential parking standards, specific to commercial vehicles; and WHEREAS, Title 10, Chapter 10.25 of the Hesperia Municipal Code contains provisions for a truck route program, specific to commercial vehicles, and; WHEREAS, the City Council desires to cite commercial vehicle drivers for violating the City’s parking standards; and
WHEREAS, modifications to Title 10, Chapter 10.25 are needed to explicitly define undeveloped lots, tracts, or parcels; and
WHEREAS, modifications to Title 16, Chapter 16.20 are needed to explicitly prohibit commercial vehicles from parking on private property, including developed and undeveloped lots in residential and non-residential areas, except as allowable; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

NOW THEREFORE, THE HESPERIA CITY COUNCIL DOES ORDAIN AS FOLLOWS:

Section 1. All of the facts set forth in the forgoing recitals are true, correct and are adopted as findings.

Section 3. Title 16, Chapter 16.20 of the Hesperia Municipal Code is hereby amended as set forth in Exhibit “A”, attached hereto.

Section 4. Tile 10 Chapter 10.25 of the Hesperia Municipal Code is hereby amended as set forth in Exhibit “B”, attached hereto.

Section 5. This Ordinance shall take effect on November 18, 2022.

Section 8. The City Council of the City of Hesperia hereby declares that should any provision, section, paragr aph, sentence, or word of this Ordinance hereby adopted be rendered or declared invalid by any final court action in a court of competent jurisdiction, or by any reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences, and words shall remain in full force and effect.

Section 9. The City Clerk shall ce rtify to the adoption of the Ordinance and shall cause the same to be posted in three (3) public places within the City of Hesperia pursuant to the provisions of Resolution 93-78.

Ordinance No. 2022-14

01071.0011/473404.2
ADOPTED AND APPROVED this 18th Day of October, 2022
Brigit Bennington, Mayor/Chair
ATTEST:

Erin Baum, Assistant City Clerk

Exhibit A: Title 10 – Truck Routes Program

10.25.055 – Parking Commercial Vehicles Off the Truck Route Prohibited A. It is unlawful for any person to park or permit to be parked any commercial vehicle on any private pro perty, developed or undeveloped (i.e ., lots, tracts, or parcels) off the designated truck route except as allowable in section 10.25.110 of this chapter.

B. Private property owners are not permitted to authorize parking of commercial vehicles on private property, developed or undeveloped (i.e., lots, tracts, or parcels), except as allowable in section 10.25 .110 of this chapter.

Exhibit A: Title 10 – Truck Routes Program - “Clean Copy”

10.25.055 – Parking Commercial Vehicles Off the Truck Route Prohibited A. It is unlawful for any person to park or permit to be parked any commercial vehicle on any private property, developed or undeveloped (i.e ., lots, tracts, or parcels) off the designated truck route except as allowable in section 10.25.110 of this chapter .

B. Private property owners are not permitted to authorize parking of commercial vehicles on private property, developed or undeveloped (i.e., lots, tracts, or parcels), except as allowable in section 10.25.110 of this chapter.

Exhibit B: Title 16 – Parking and Loading Standards

16.20.085 - Parking standards.

DD. Definitions. The following words and phrases shall have the meanings as ascribed to them by this section:
“Undeveloped lot, tract or parcel” means any share, portion or division of real estate on which no structure requiring a building permit exists and which may be further developed or subdivided in accordance with the city’s zoning regulations. For the purposes of this chapter, lots, tracts or parcels that are in the process of being developed with an approved development permit are considered undeveloped.

Exhibit B: Title 16 – Parking and Loading Standards – “Clean Copy”

16.20.085 - Parking standards.

DD. Definitions. The following words and phrases shall have the meanings as ascribed to them by this section:
“Undeveloped lot, tract or parcel” means any share, portion or division of real estate on which no structure requiring a building permit exists and which may be further developed or subdivided in accordance with the city’s zoning regulations. For the purposes of this chapter, lots, tracts or parcels that are in the process of being developed with an approved development permit are considered undeveloped.

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT
DATE: November 1, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager SECOND READING AND ADOPTION BY: Melinda Sayre, Director of Government Services/City Clerk Jacquelyn Castillo, Administrative Analyst
SUBJECT: Amendments to Title 5 and Title 8 of the Hesperia Municipal Code Related to the Voluntary Crime Free Program

RECOMMENDED ACTION
It is recommended that the City Council introduce and place on first reading Ordinance No. 2022-15, amending Title 5 and Title 8 of the Hesperia Municipal Code related to the Voluntary Crime Free Program.

BACKGROUND
In 2015, the City Council adopted Ordinance No. 2015-12 which established a “Crime Free Rental Housing Program” (“Crime Free Program”). The Crime Free Program was designed to address the disproportionate calls for service and crime emanating from rental pr operties. Among other requirements, the Crime Free Program provided mandatory prospective tenant screenings, mandatory use of a Crime Free Lease Addendum and mandatory evictions of tenants who violate criminal laws and the crime free lease addendum.

In 2 017, the City Council adopted Ordinance 2017 -13 modifying the Crime Free Program.

Modifications included removing the mandatory prospective tenant screenings, mandatory use of a Crime Free Lease Addendum and mandatory evictions of tenants who violate crim inal laws and the crime free lease addendum, but kept the mandatory registrations of rental properties in the City.

ISSUES/ANALYSIS
The enforcement of the Crime Free Rental Housing ordinance officially ended on January 19th 2021 with the adoption of Ordinance No. 2020-14. Since the Crime Free Program was receded, staff recommends revising Title 5 and Title 8 of the Hesperia Municipal Code, to remove any references to the Program, as follows:

Recommended changes to Title 5 – Business License and Regulations  Under Section 5.72.070(A)(1)(k) – Registration Requirements – remove reference to registration requirements for Hesperia Crime Free.
 Remove Section 5.72.100 - Crime Free Program.
 Remove Section 5.72.120 – Crime Prevention through Environmental Design (CPTED) Requirements.
 Revise section numbering to align with recommended revisions.

Staff Report to the Mayor and Council Members
Amendments to Title 5 and Title 8 of the Hesperia Municipal Code Related to the Crime Free Program November 1, 2022

Recommended changes to Title 8 – Health and Safety
 Remove Chapter 8.20 Crime Free Rental Housing Program in its entirety

Recommended changes to Code Comparative Table and Disposition List  Remove reference to Crime Free in the listing

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Ordinance 2022-15

2. Exhibit A – Title 5 – Business License and Regulations

3. Exhibit B – Title 8 – Health and Safety

01071.0011/473404.2
ORDINANCE NO. 2022-15

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, AMENDING TITLE 5, CHAPTER 5.72 OF THE HESPERIA MUNCIPAL CODE, AND AMENDING TITLE 8, CHAPTER 8.20 OF THE HESPERIA MUN ICIPAL CODE RELATED TO THE CRIME FREE PROGRAM.

WHEREAS, in 2015, the City Council adopted Ordinance No. 2015 -12 which established a “Crime Free Rental Housing Program” (“Crime Free Program”); and WHEREAS, in 2017 , the City Council adopted Ordinance 2017 -13 modifying the Crime Free Program; and
WHEREAS, the Crime Free Program ordinance officially ended on January 19 , 2021 with the adoption of Ordinance No. 2020-14; and
WHEREAS, Title 5, Chapter 5.72 of the Hesperia Municipal Code c ontains references to registration requirements for the Crime Free Program; and WHEREAS, Title 8, Chapter 8.20 of the Hesperia Municipal Code contains provisions for the Crime Free Program, and;
WHEREAS, amendments to Title 5, Chap ter 5.72 and Ti tle 8, Chapter 8.20 are needed to remove references to the Crime Free Program as the program has been repealed; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred.

NOW THEREFORE, THE HESPERIA CITY COUNCIL DOES ORDAIN AS FOLLOWS:

Section 1. All of the facts set forth in the forgoing recitals are true, corre ct and are adopted as findings.

Section 3. Title 5, Chapter 5.72 of the Hesperia Municipal Code is hereby am ended as set forth in Exhibit “A”, attached hereto.

Section 4. Ti tle 8, Chapter 8.20 of the Hesperia Municipal Code is hereby ame nded as set forth in Exhibit “B”, attached hereto.

Section 5. This Ordinance shall take effect on December 1, 2022.

Section 8. The City Council of the City of Hesperia hereby declares that should any provision, section, paragr aph, sentence, or word o f this Ordinance hereby adopted be rendered or declared invalid by any final court action i n a court of competent jurisdiction, or by any reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences, and words shall remain in full force and effect.

Section 9. The City Clerk shall ce rtify to the adoption of the Ordinance and shall cause the same to be posted in three (3) public places within the City of Hesperia pursuant to the provisions of Resolution 93-78.

Ordinance No. 2022-15

01071.0011/473404.2
ADOPTED AND APPROVED this 1st Day of November, 2022
Brigit Bennington, Mayor/Chair
ATTEST
Erin Baum, Assistant City Clerk

Exhibit A: Title 5 – Business Licenses and Regulations

5.72.070 - Registration Requirements
k. Any application for a rental housing business license shall also accompany proof of current registration in the Hesperia Crime Free Housing Program as prescribed in Chapter 8.20 of this Code.
kl. Such other identification and information as the director may require in order to discover the truth of the matters herein specified and as required to be set forth in the application.

5.72.100 - Crime Free Program.

A. Hesperia's Crime Free Program was receded and ma de voluntary with the exception of registering the property. Any person(s) renting or intending to rent residential property within the City of Hesperia shall also register the property in the Crime Free Rental Housing Program as required by Chapter 8.20 o f this code. Failure to maintain both a rental housing business license and compliance with Chapter 8.20 shall constitute a public nuisance and grounds for withholding of the issuance of a rental business license. ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)

5.72.10010 - Maintenance requirements.

5.72.120 - Crime Prevention through Environmental Design (CPTED) Requirements.

1. All newly constructed rental properties shall incorporate CPTED design into the plan for development as required by the city.

2. Any rental property deemed by the city to perpetuate criminal activity, receive an inordinate number of calls for service, or present a threat to public health and safety may be required to submit a revised site plan and incorporate elements of CPTED modifications to their property for the purpose of creating a safe environment, identifying criminal activity or persons perpetuating criminal activity and lowering the likelihood of continuing criminal activity at the property. The cost for review of the plan and all modifications shall be the responsibility of the owner.

3. Failure to incorporate CPTED design i f required, or modify the property as directed by the city is considered a public nuisance and may result in abatement measures as allowable by law.

Exhibit A: Title 5 – Business Licenses and Regulations

4. All new multi-family construction with more than eight units will be required to install a recorded video surveillance system for the complex. The system data will be maintained for at least one month. The cameras must cover common areas, parking areas as well as vehicles entering and exiting the complex. Cameras should not cover or view areas that would be considered private such as inside individual units. The data and video are the sole property of the owners or operators. If law enforcement needs access to the video, the city highly encourages the owners or operators to assist. Existing multi -family complexes with more than eight will have two years to install and operate the same system described in this section. ( Ord. No. 2020-14 , § 2(Exh. A), 1-19-21)

5.72.11030 - Rental Housing Business License Renewal.

5.72.12040 - Inspections.

5.72.13050 - Interior Inspections.

5.72.14060 - Complaints and violations.

5.72.15070 - Certificate of rental inspection compliance—Effect on remedies.

5.72.16080 - Enforcement and penalties.

5.72.17090 - Public nuisance.

5.72.180200 - Conflicts.

Exhibit B: Title 8 – Health and Safety
Chapter 8.20 - CRIME FREE RENTAL HOUSING PROGRAM[2]
Footnotes:
--- (2) ---
Editor's note — Ord. No. 2017 -13 , § 1, adopted July 18, 2017, amended Chapter 8.20 in its entirety to read as herein set out. Former Chapter 8.20, §§ 8.20.010 —8.20.140, pertained to similar material, and derived from Ord. No. 2015 -12 , adopted November 17, 2015.

8.20.010 - Purpose and scope.

The purpose of this chapter is to identify, regulate, and assist the owners of rental dwelling units in the City of Hesperia, to ensure that such units afford tenants a safe and decent place to live, to hold tenants and owners accountable for their actions, and to red uce criminal activity.

Nothing in this chapter shall be construed to:

A. Excuse, waive, limit, or modify any other requirements or obligations in federal, state or local laws;
B. Limit any right or authority of the city to investigate and abate nuisances or to enforce any other provisions of federal, state or local the laws;
C. Otherwise prevent or waive compliance with all other federal, state or local laws; or D. Discourage victims or witnesses of crime or physical or mental health crisis from reporting crime or seeking assistance with physical or mental health crisis. ( Ord. No. 2017-13 , § 1, 7-18-17)

8.20.020 - Definitions.

For the purposes of this chapter, words and phrases used in this chapter shall mean as they are defined in Chapter 1.04 of this code, except as otherwise defined below:
"Annual inspection" means an inspection meeting the criteria and standards of crime free through environmental design (CFTED).
"Chief of police" means the Hesperia Chief of Police, i.e., the San Bernardino County Sheriff's Captain designated to serve as the chief of police, or any designee thereof.

Exhibit B: Title 8 – Health and Safety
"Crime free through environmental design" or "CFTED" means design standards and guidelines, adopted by resolution of the city council, which ensure the effective use of physical spaces and social environments of residential rental properties to reduce crime. "Criminal activity" means behavior or acti ons that are in violation of established federal, state, or local criminal laws.
"Local property management company" shall mean an entity that is responsible for the day - to-day maintenance, upkeep and security of a rental property and is operated by a pers on who is licensed with the California Department of Real Estate as a real estate broker. "Local property manager" shall mean a person who is responsible for the day -to-day maintenance, upkeep, and security of the rental property. The local property manage r may be the owner of the property.
"Multi-family residences" means three dwellings or more on a single property. "Owner" or "property owner" means a single individual, partnership or joint venture or any entity that has any kind of ownership interest in a single-family residential rental property, multi-family rental property, or residential rental dwelling unit (collectively, "residential rental property") whether as an individual, partner, joint venture, stock owner, or ownership interest in some other capacity or the owner's designee, which may include a local property management company. If more than one person or an entity owns the subject rental property, owner or property owner refers to each person or entity holding any kind of ownership interest in the property, and the property owners' obligations in this chapter are joint and several as to each property owner. Owner shall also mean any person having legal title to real property, including all individuals shown as owners on the last equalized assessment roll of the San Bernardino County Assessor's Office, or an owner's authorized representative.
"Program" means the crime free rental housing program as set forth in this chapter. "Program guidelines" means the administrative guidelines established and adopted by the city manager for the purpose of carrying out the provisions of this chapter. "Single-family residence" means a dwelling configured for one group to live in with common areas such as a kitchen and common bathrooms on a single property. "Single-family residential rental property," "multi -family rental property," or "residential rental dwelling unit" (collectively, "residential rental property") means a dwelling unit, all or part of which is occupied by a person(s) other than the owner of the u nit where money, services or valuables are exchanged for the ability to reside whether this agreement is verbal or in writing. This includes the premises on which said residential rental property is situated and any common areas. The following types of dwe lling units or facilities are not considered residential rental property:

Exhibit B: Title 8 – Health and Safety

1. Hotels or motels.

2. Accommodations in any hospital, extended care facility, residential care facility and convalescent home.

3. Mobile home parks.

4. Business, commercial or industrial properties unless there is a dwelling structure on the property.
"Tenant" means a person who occupies or is in possession of a residential rental property as a tenant or permittee of the owner.
( Ord. No. 2017-13 , § 1, 7-18-17)

8.20.030 - Rebuttable presumption.

For the purpose of this chapter, if the water, refuse, gas, electric or property tax bill is in a different name than that of the property owner, or if the water, refuse, gas, electric or property tax bill is in the owner of record's name but mailed to an address other than the property address, it shall be a rebuttable presumption that the property is residential rental property. This presumption can be rebutted by the owner of record, or by his or her designated representative, providing satisfactory documentation to the city that the property is owner-occupied or is not being used for rental income. ( Ord. No. 2017-13 , § 1, 7-18-17)

8.20.040 - Residential rental property registration.

A. Registration Required. As a condition of exercising the privilege of renting or leasing a residential rental property to any person and/or entity, the owner of the residential rental property, local property management company or local property manager shall annually register with the city.

1. Contents of Registration Form. The regist ration form shall be in a format determined by the city manager and shall contain the location of the residential rental property, the owner's name and contact information, the name of person acting on the owner's behalf and his or her contact information, and number of dwelling units.

2. The owner shall pay any adopted fees, which shall cover the city's annual costs of processing and maintenance as it relates to registration of the residential rental property.

Exhibit B: Title 8 – Health and Safety

3. Non-transferable. Registration of a residen tial rental property accepted by the city pursuant to this chapter is not transferable to a new owner of the residential rental property.

Any new owner must re -register and provide current registration information. ( Ord. No. 2017-13 , § 1, 7-18-17)

8.20.050 - Crime free screening and notification program.

A. Crime Free Database. The chief of police will maintain a crime free database. This database will contain the registration information of residential rental properties registered pursuant to Section 8.20.040. This database shall be subject to the city's records retention and destruction policies.

B. Crime Free Screening Program.

1. Request. An owner whose residential rental property is registered pursuant to Section

8.20.040 may submit a request to the chief of police seeking information that must be disclosed pursuant to Government Code Section 6254(f)(1) about specifically -identified arrests within the City of Hesperia involving a prospective or current adult tenant. Such a request shall include the following:
a. Notarized written consent from the prospective or current adult tenant(s) stating that he or she affirmatively consents to providing identify ing information, including a copy of a valid government-issued photo identification card, for the purpose of crime free screening, as provided herein. This written consent shall be in a form approved by the city manager. b. A copy of a valid government -issued photo identification card of the prospective or current adult tenant(s), such as a California Driver's License. c. The mailing address of the prospective or current adult tenant(s). d. Payment for any adopted fees relating to the city's costs in provid ing the crime free screening program.

2. Report. To the extent permitted by law, the chief of police shall then provide the owner with a report that includes the information required to be disclosed pursuant to Government Code Section 6254(f)(1) within ten (10) business days after receipt of a request from an owner, as provided in Section 8.20.050(B)(1), including any requests for screening or reports, pursuant to this Section 8.20.050, made on or after August 17, 2017. This report shall be mailed to the mailing address of the subject prospective or current tenant at the same time it is provided to the owner.
a. If the chief of police determines that the information requested pursuant to Section

8.20.050(B)(1) does not exist or is not required to b e disclosed under Government Code Section 6254(f)(1), then he or she shall issue a report to the requesting owner stating as such.

Exhibit B: Title 8 – Health and Safety
b. Extension of Time. The chief of police may extend this deadline by an additional fourteen (14) business days from the date that a report is due.

3. Upon receiving this report, the owner has the sole discretion to take actions that he or she determines to be legally appropriate. All reports issued shall contain an admonition in substantially the following form: "This report is for informational purposes only. The landlord or property owner has the sole discretion to take any action that he or she determines to be legally appropriate."

4. All requests and reports, made pursuant to Section 8.20.050(B), shall be subject to the cit y's records retention policies.

C. Crime Free Notification System. The chief of police shall establish a system in which owners may be notified of arrests on their residential rental property. Owners who desire to participate may, as part of the registrati on required pursuant to Section 8.20.040 or otherwise, request that the chief of police include an owner's residential rental property as part of the crime free notification system, provided that the owner and the residential rental property meets the qual ifications established herein.

1. Qualification. In order to qualify for this program, an owner must submit a valid request, in a form approved by the city manager, to receive notifications pursuant to the crime free notification system and incorporate a c rime free lease addendum into all new lease agreements executed after the residential rental property's inclusion in the crime free notification system. Owners who desire to participate in the crime free notification system shall also make reasonable effor ts to integrate the crime free lease addendum into any extensions of an existing lease agreement.
a. The crime free lease addendum shall substantially include the following provisions:
i. That the tenant, or any member of the tenant's household, or a guest or other person under the tenant's control shall not engage in criminal activity that would violate any federal, state or local law, on, near, or related to the property premises, including in any common areas and facilities.
ii. That the tenant, any member of the tenant's household, or a guest or other person under the tenant's control shall not engage in any act intended to facilitate criminal activity that would violate any federal, state or local law, including drug -related criminal activity, on, n ear, or related to the property premises, including in any common areas and facilities. iii. That the tenant or members of the household will not permit the dwelling unit to be used for, or to facilitate, criminal activity that would violate any federal, s tate or local law, including prostitution and drug -related criminal activity, regardless of whether the individual engaging in such activity is a member of the household or a guest.

Exhibit B: Title 8 – Health and Safety
iv. That the tenant or member of the household will not engage in the poss ession, manufacture, sale or distribution of illegal drugs, on, near, or related to the property premises, including in any common areas and facilities, that would violate any federal, state or local law.
v. That the tenant or member of the tenant's househ old, or a guest or other person under the tenant's control shall not engage in acts of violence that would violate any federal, state or local law, including but not limited to, the unlawful discharge of firearms, on, near, or related to the property, including in any common areas and facilities. vi. That the tenant agrees that any single violation of the above provisions may be a material violation of the lease, be good cause for termination of tenancy, and be deemed a serious violation and a material nonc ompliance with the lease such that a single violation shall be good cause for termination of the lease.
vii. That failure to comply with the crime free lease addendum may be considered a material non-curable breach of the lease and may result in a three da y notice to quit being served upon the tenant requiring that the tenant, every member of tenant's household, or a guest or other person(s) under tenant's control shall vacate said premises within three days, all in accordance with California Law and that C alifornia Law provides for extraordinary remedy to regain possession when illegal activity is being carried out on or near the premises which constitutes a public or private nuisance.
b. A request to receive notifications pursuant to the crime free notification system shall include the following information:
i. The address of the residential rental property that the owners seek to include to receive notices from the crime free notification system.
ii. Payment for any adopted fees relating to the city 's costs in providing notices pursuant to the crime free notification system. Failure to pay such adopted fees, including any adopted annual fees, shall result in disqualification from the crime free notification system until payment thereof.
iii. Notarized written consent from the prospective or current adult tenant(s) of the residential rental property stating that he or she affirmatively consents to disclosure of information for the purpose of crime free notices as provided in Section 8.20.050(C)(2). Thi s written consent shall be in a form approved by the city manager and shall be required upon the execution of any new lease agreement. However, a notarized written consent shall not be required if the owner seeks to receive crime free notices for arrests w here a prospective or current adult tenant(s) is not the subject of the arrest.

2. Crime Free Notice.

Exhibit B: Title 8 – Health and Safety
a. Upon becoming aware of an arrest occurring at a registered residential rental property that meets the qualifications of Section 8.20.050(C)(1), the chi ef of police shall provide notice to owners concerning the arrest. This notice shall be provided to the tenant occupying such residential rental property at the same time it is provided to the owner. b. To the extent that such information is available and to the extent that the chief of police determines that disclosure of a particular item of information would not endanger the safety of a person involved in an investigation or would not endanger the successful completion of the investigation or a related i nvestigation, the notice provided by the chief of police shall include the information that must be disclosed pursuant to Government Code Section 6254(f)(1), and also provide the following information:
i. The relevant report or incident number.
ii. Information relating to the appeals process provided in this chapter. c. Upon receiving this notice, the owner has the sole discretion to take actions that he or she determines to be legally appropriate. All notices issued shall contain an admonition in substantially the following form: "This notice is for informational purposes only. The landlord or property owner has the sole discretion to take any action that he or she determines to be legally appropriate."
d. The notice provided by the chief of police shall be in writing and sent by email with acknowledgement or certified mail with return receipt requested. All notices, made pursuant to Section 8.20.050(C), shall be subject to the City's records retention policies.

D. Appeals.

1. A person who is the subject of a tenant screening report, as provided in Section

8.20.050(B), or a crime free notice, as provided in Section 8.20.050(C), may file an appeal of such report or notice pursuant to Section 8.20.100.

2. An owner whose residential rental property is the subjec t of a tenant screening report, as provided in Section 8.20.050(B), or a crime free notice, as provided in Section 8.20.050(C), may file an appeal of such report or notice pursuant to Section 8.20.100.

E. Opt-Out Process.

1. An owner whose residential rental property is subject to the crime free notification system may, at any time, submit a form to the city manager opting out of the crime free notification system.

2. The opt-out form shall be in a format determined by the city manager and s hall contain the location of the residential rental property, the owner's name and contact information, and the

Exhibit B: Title 8 – Health and Safety
name of person acting on the owner's behalf and his or her contact information. The opt -out form shall contain the notarized signature of the ow ner.

3. Upon receipt of an opt -out form complying with Section 8.20.050(E), the city manager shall direct the chief of police to remove the owner's residential rental property from the crime free notification system.
( Ord. No. 2017-13 , § 1, 7-18-17)

8.20.060 - Monthly Reports
A. An owner whose residential rental property has been registered pursuant to this chapter may request, in a form approved by the city manager, that the chief of police provide him or her a monthly report containing information relating to law enforcement activities occurring at the owner's residential rental property. The chief of polic e shall not disclose information that is prohibited from disclosure by federal, state, or local law. In order to receive such monthly reports, an owner shall pay any adopted fees, including any adopted annual fees. ( Ord. No. 2017-13 , § 1, 7-18-17)

8.20.070 - CFTED Standards and administrative policies.

A. CFTED Standards. The city council shall adopt by resolution such standards and guidelines for the purpose of ensuring crime prevention and reduction. All residential rental property shall comply with adopted CFTED standards.

B. Administrative Policies. The city council may establish and adopt administrative policies for the implementation of this chapt er.
( Ord. No. 2017-13 , § 1, 7-18-17)

8.20.080 - Inspections.

A. Annual Inspections. All residential rental property located in the city shall be subject to an annual inspection by the city for compliance with federal, state, or local laws, program guidelines, and CFTED standards. The owner or their designee will receive the results of the inspection.

B. Notice of Inspection and Procedures.

1. After receiving a completed registration form from an owner, the city will conduct an exterior inspection of the residential rental property to identify compliance with the federal, state, or local laws, program guidelines, and CFTED standards.

Exhibit B: Title 8 – Health and Safety

2. No prior notice of inspection will be made to the owner. An owner does not have to be present for the inspection.

C. Members of the city's police department will be responsible for conducting the inspections authorized by this chapter. However, the city may request that other city departments participate in the inspection process. The inspection will be from the exterior of the residential rental property's buildings and structures. It will cover compliance with federal, state, or local laws, program guidelines, and CFTED standards.

D. After completion of the inspection, a written report of the inspection will be sent to the owner. The report shall contain:

1. An itemization of any violations of the federal, state, or local laws, program guidelines, and CFTED standards identified during the inspection;

2. The period of time for correcting each of the identified violations;

3. A statement of a re -inspection at the end of the period of time for correction, if applicable;

4. The amount of the re-inspection fee and the da te by which the re-inspection fee must be paid; and

5. A statement that if the violations are not corrected within the period of time for correction the city may pursue legal action as authorized under this code to abate such violations.

6. If no violations are found as a result of the inspection, the inspection report shall state so and city shall issue a certificate of registration to the owner. ( Ord. No. 2017-13 , § 1, 7-18-17)

8.20.090 - Fees.

The city council may establish such fees that are necessary for the administration and enforcement of this chapter. All such fees shall be set by resolution of the city council. ( Ord. No. 2017-13 , § 1, 7-18-17)

8.20.100 - Appeals.

A. If an appealing party desires to appeal the chief of police's notices or reports pursuant to Section 8.20.050(B) or 8.20.050(C)(3), the appealing party shall file a notice of appeal with the city clerk within thirty (30) days from the date of the chief of police's notices or reports together with any filing fee set by resolution of the city counci l. The notice of appeal shall

Exhibit B: Title 8 – Health and Safety
contain the appealing party's mailing address and telephone number; the basis for appeal; and any other relevant documentation or evidence.

B. Appeal hearings shall be conducted by the city's administrative hearing officer.

C. The filing of any notice of appeal provided shall temporarily stay the chief of police's findings in the subject notices or reports, issued pursuant to Section 8.20.050(B) or

8.20.050(C)(3), until the issuance of a final administrative order by the admini strative hearing officer.

D. Appeal hearings shall be held not less than thirty (30) days and not more than sixty (60) days from the date the notice of appeal is filed, provided that no appeal hearing shall be held unless any required filing fee has been d eposited in advance.

E. The city shall provide the appealing party and any other party that is the subject of the notices or reports, issued pursuant to Section 8.20.050(B) or 8.20.050(C)(3), with written notice of the time and place of the appeal hearing at least ten days prior to the date of the hearing. If the chief of police submits an additional written report to the administrative hearing officer for consideration at the appeal hearing, a copy of the report shall be served on all parties with the noti ce of hearing.

F. The appealing party's failure to appear at the appeal hearing shall constitute a forfeiture of any deposited amounts and be deemed a failure to exhaust his or her administrative remedies. The final determination of the administrative hear ing officer shall be served on the appealing party by mailing a copy of the determination by certified mail postage prepaid to the appealing party at his or her last known address.

G. The administrative hearing officer shall hear, receive and consider test imony and documentary evidence regarding the chief of police's determination and notice, as may be applicable and as provided in this chapter. The chief of police's initial determination and/or notice, as may be applicable, including any additional report submitted by the chief of police, shall constitute prima facie evidence of the respective facts contained in those documents.

The appealing party and any other party that is the subject of the notices or reports, issued pursuant to Section 8.20.050(B) or 8 .20.050(C)(3), shall be given the opportunity to testify at the hearing to present evidence concerning the chief of police's notice and/or report. The appeal hearing shall not be subject to the formal rules of evidence or discovery. The administrative hearing officer may continue the hearing and request additional information from the chief of police, the appealing party, or any other appearing party that is the subject of the notices or reports, issued pursuant to Section 8.20.050(B) or 8.20.050(C)(3), pri or to issuing a final administrative decision.

H. After considering all of the testimony and evidence submitted at the appeal hearing, the administrative hearing officer shall issue a written decision to uphold, modify, cancel, or reverse the chief of poli ce's determination and/or notice, as may be applicable, within sixty (60) days.

Exhibit B: Title 8 – Health and Safety
I. The written decision of the administrative hearing officer shall be final and conclusive. The written decision shall be served on the appealing party by mailing a copy of th e order by certified mail, postage prepaid, to the appealing party at his or her last known address. ( Ord. No. 2017-13 , § 1, 7-18-17)

8.20.110 - Complaint-based inspections.

Nothing contained in this chapter shall prevent or restrict the city's authority to inspect any residential rental property in response to a complaint alleging code violations or violations of applicable federal, state, or loca l laws and to pursue all remedies permissible under such applicable laws.
( Ord. No. 2017-13 , § 1, 7-18-17)

8.20.120 - Voluntary inspection requests.

Nothing contained in this chapter shall be construed to prohibit a property owner or tenant from voluntarily requesting an inspection pursuant to this chapter to determine whether the residential rental property complies with applicable federal, state, or loca l laws. ( Ord. No. 2017-13 , § 1, 7-18-17)

8.20.130 - Enforcement.

A. Violations Identified During Inspection. If the owner fails to correct a violation of the federal, state, or local laws identified in the report of inspection within the time allowed, the city may issue an administrative citation, issue a notice of intent to abate, or may take any other action authorized by law to enforce the p rovisions of this code.

B. Failure to Pay Fees. Should an owner fail to timely pay any fees due under this chapter, the city may take appropriate action to recover the unpaid fees, including any accrued interest, penalties and personnel costs utilizing any remedies authorized by law.

C. Violations. Owners who fail or cause to fail to cooperate with inspections required under this chapter or fail to otherwise comply with the requirements of this chapter, including registration or eviction requir ements, may be subject to enforcement pursuant to Chapter

1.12 of Title 1 of this Code or any other action authorized by law to enforce the provisions of this Chapter.

D. Strict Liability. Violations of this chapter shall be treated as a strict liability o ffense regardless of intent. Any person, firm and/or corporation that violates any portion of this chapter shall be subject to prosecution under applicable law.

Exhibit B: Title 8 – Health and Safety
E. Revenue and Taxation Code. The city may also utilize the provisions of the Revenue and Taxation Code Section 24436.5 to encourage the elimination of substandard conditions in rental housing. The city is also authorized to bring an action under the Business and Professions Code for unfair business practices.

F. Attorneys' Fees. In an action, admin istrative proceeding, or special proceeding to abate a violation of this chapter, the prevailing party may recover attorneys' fees pursuant to Government Code Section 38773.5. Recovery of attorneys' fees is limited to those individual actions or proceeding s in which the city elects, at the initiation of that individual action or proceeding, to seek recovery of its own attorneys' fees. An award of attorneys' fees to a prevailing party shall not exceed the amount of reasonable attorneys' fees incurred by the city in an action, administrative proceeding, or special proceeding. ( Ord. No. 2017-13 , § 1, 7-18-17)

8.20.140 - Severability.

If any provision, section, paragraph, sentence or word of this chapter is determined or declared invalid by any final court action in a court of competent jurisdiction or if the application of any provision, section, paragraph, sentence or word of this chapter is inapplicable to a specific situation by reason of any preemptive state or federal legislation or regulation, the remaining provisions, sections, paragraphs, sentences or words of this chapter shall remain in full force and effect.
( Ord. No. 2017-13 , § 1, 7-18-17)

City of Hesperia

STAFF REPORT
DATE: November 1, 2022
TO: Mayor and Council Members
FROM:

BY:

Nils Bensten, City Manager
Rachel Molina, Assistant City Manager
Mike Hearn, Deputy Community Development Director
SUBJECT: Adoption of Ordinance No. 2022-16 adopting the 2022 California Building Codes

RECOMMENDED ACTION
It is recommended that the City receive Ordinance No. 2022 -16, adopting changes to Hesperia Municipal Code Chapters 15.04 and 15.06; adopting and amending the following codes and their references: the 2022 California Building Code, th e 2022 California Residential Code, the 2022 California Electrical Code , the 2022 California Mechanical Code, the 2022 California Plumbing Code, the 2022 California Fire Code , the 2022 California Green Building Standards Code, the 2022 California Reference d Standards Code, the 2022 California Energy Code , the 2022 California Historical Building Code, the 2022 California Administrative Code, and the 2022 California Existing Building Code ( all hereafter referenced as the Building Cod es) and hold a public hear ing regarding this matter on November 1 , 2022 and continue the hearing to November 15, 2022.

BACKGROUND
Every three years, the International Code Council (ICC), the International Association of Plumbing and Mechanical Officials (IAPMO), and the National Fire Protection Agency (NFPA) publish revised versions of their respective codes. This was last completed during the 2018 code “cycle” and revised versions were published in 2019.

The California Building Standards Commission (BSC) takes the model codes published by ICC, IAPMO, and NFPA, and makes amendments to them based upon specific requirements in State law. Once the amendments are made, the State sets a publication date and an effective date for the codes . The purpose of this is to officially notify lo cal jurisdictions that the codes are completed and when they will take effect.

Earlier this year, the BSC set July 1, 2022, as the publication date and January 1, 2023, as the effective date for the 2022 California Building Codes . Consequently, the California Building Codes will take effect “as-is” unless the City approves the recommended amendments to reflect our local conditions.

Pursuant to Government Code 50022.3, on November 1, 2022, the City Council received this report and all accompanying exhibits for review.

ISSUES/ANALYSIS

Staff Report to the City Council
Adoption of Ordinance No. 2022-16 adopting the 2022 California Building Codes November 1, 2022
This code adoption amends the current ordinance, which was last amended in 2019. In summary, it adopts the California Codes by reference; and makes changes to Chapters 15.04 (“Building Codes”) and 15.06 (“Grading”) of the Hes peria Municipal Code . As in previous adoption cycles, staff is recommending local revisions. The recommendations fall into two categories: the adoption of specific a ppendix chapters , and revisions to codes . Each will be discussed separately.

1. Appendix Chapters Specifically Adopted:

The California codes and State law are set up in such a way that Appendix Chapters to the various codes are not included unless specifically adopted. Section 15.04.020 of the Hesperia Municipal Code identifies the Appendix Chapters to be included.

Appendix chapters proposed for this adoption are currently adopted in the City and include regulations regarding patio covers, septic systems, plumbing installation standards, and a calculation method for sizing water piping systems.

2. Revisions to Codes:

Three revisions are proposed to be m ade to the California Codes. These revisions relate to swimming pools, grading, and fire protection as described below:
a) HMC Section 15.04.060 is added to both modify the St ate code requirements, and to consolidate swimming pool safety regulations from three different areas into one. This section makes two changes from the State requirements. It reduces the depth of water required to be considered a swimming pool from 24 inch es to 18 inches. The 18-inch depth has been Hesperia’s standard since incorporation, and it was the County standard prior to the city’s incorporation. The second change is to raise the barrier fence around a swimming pool from 48 inches to 60 inches. Again , this has been Hesperia’s standard since incorporation. Staff recommends the increased standard as drowning in swimming pools is the number one building code related cause of death for children in residences. b) The revisions to grading are contained within “Exhibit B” in Chapter 15 .06 of the Hesperia Municipal Code titled “Grading”.
c) Two revisions are requested to the Hesperia Municipal Code regarding fire protection systems. These have been the adopted standards for fire protection systems in the City for the past twenty years and are noted below:
 Section 15.04.030 in the Hesperia Municipal Code (HMC) requires the installation of an automatic fire sprinkler system when the floor area exceeds 5,000 square feet. This requirement has been in place since the mid-1990’s and is well known and understood by local builders and developers.  Section 15.04.040 which requires existing, non-sprinklered buildings of 5,000 square feet or more to install fire sprinklers if the building is added to, or if the occupancy changes to a more hazardous u se. Again, this requirement has been Hesperia’s standard for over 20 years.

Staff Report to the City Council
Adoption of Ordinance No. 2022-16 adopting the 2022 California Building Codes November 1, 2022

In total, staff believes the amendments and revisions better address the specific conditions in Hesperia. The appendix chapters give standards for sept ic systems, greywater syst ems, and plumbing sizing and installations, as well as for patio construction. The code revisions provide increased safety standards for swimming pools, and consistent grading regulations, and fire protection. As such, staff recommends adoption of Ordinance No. 2022-16 which will establish the construction codes to be used in Hesperia during the next three years.

FISCAL IMPACT

None.

ALTERNATIVE(S)

Provide alternative direction to staff.

ATTACHMENT(S)

1. Ordinance No. 2022-16

2. Exhibit A – Proposed Hesperia Municipal Code Chapter 15.04 - Building Codes

3. Exhibit B – Proposed Hesperia Municipal Code Chapter 15.06 - Grading Codes

ORDINANCE NO. 2022-16

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, REPEALING AND ADOPTING CHAPTERS 15.04 AND 15.06 OF THE HESPERIA MUNICIPAL C ODE, AND ADOPTING BY REFERE NCE THE 2022 CALIFORNIA BUILDING CODE, 2022 CALIFORNIA RESIDE NTIAL CODE, 2022 CALIFORNIA ELECTRICAL CODE, 2022 CALIFORNIA MECHANIC AL CODE, 2022 CALIFORNIA PLUMBING CODE, 2022 CALIFORNIA FIRE COD E, 2022 CALIFORNIA GREEN BUILDING STANDARDS CODE, 2022 CALIFORNIA ENERGY CODE, 2022 CALIFORNIA HISTORIC AL CODE, 2022 CALIFORNIA EXISTING BUILDING CODE, 2022 CALIFORNIA ADMINIST RATIVE CODE, AND 2022

CALIFORNIA REFERENCED STANDARDS CODE
WHEREAS, The City of Hesperia has the authority and responsibility to regulate building construction to protect the public health, safety, and welfare; and WHEREAS, Title 15, Chapters 15.04 and 15.06 of the Hesperia Municipal Code were adopted for that purpose, and contain such building regulations and grading regulations for the City of Hesperia; and
WHEREAS, The California Building Standar ds Commission published the 2022 California Building Code, 2022 California Residential Code, 2022 California Electrical Code, 2022 California Mechanical Code, 2022 California Plumbing Code, 2022 California Fire Code, 2022 Administrative Code, 2022 California Green Building Standards Code, 2022 California Energy Code, 2022 California Historical Code, the 2022 California Existing Building C ode, 2022 California Administrative Code, and 2022 California Referenced Standards Code, (hereafter, 2022 Building Codes) on July 1, 2022; and
WHEREAS, The City of Hesperia wishes to make certain changes and amendments to the 2022 suite of California Building Codes; and
WHEREAS, The California Building Standards Commission vo ted to establish January 1, 2023, as the effective date for the 2022 Building Codes; and
WHEREAS, The California Government Code, Section 50022.2 authorizes cities to adopt Building Codes by reference; and
WHEREAS, The California Health and Safety Code, Section 17922, 17958.5, and 17958.7 allows modifications to the 2022 Building Codes when they are reasonably necessary to better protect the public safety by reducing the risk of hazards to life and property of the citizens of Hesperia due to:

1. Topographic conditions. The City of Hesperia is situated in the High Desert Region of the Western Mojave Desert. The elevation rises from three thousand two hundred (3,200) feet in the north to about four thousand (4,000) feet above sea level to the south. Isolated from the population centers of the Los Angeles basin by the San Gabriel and San Bernardino Mountains. The only access to timely mutual aid response is through the Cajon Pass. In the event of a major fire or earthquake in the Pass, assistance from the south would be unable to reach the City. The City of Hespe ria covers a large geographical area of over seventy-three square miles, is bisected by the BNSF Railway, the Southern Pacific Railroad, the California aqueduct, the Interstate 15 Freeway, and two major electrical

Ordinance No. 2022-16

transmission corridors which cause limited access acro ss and through the City. The limited access slows emergency response times for public safety personnel.

2. Geologic conditions. The City of Hesperia is located within fifteen (15) kilometers of the San Andreas Fault and within ten (10) kilometer s of the Cleghorn an d North Frontal fault systems. The proximity to these local earthquake faults creates an increased potential for severe ground shaking and surface ruptures which can cause personal and property damage, utility interruptions, fire hazard s and hazardous materials releases. Additionally, significant roadway, bridge structure, water supply and communications systems are subject to failure, thereby causing a detriment to emergency services response times and fire suppression delivery.

3. Climatic conditions. The City of Hesperia lies within the High Desert Region of the Western Mojave Desert, an area subject to extremely strong winds, commonly known as “Santa Ana Winds” which can reach speeds in excess of 80 miles per hour. Extensive damage frequently accompanies these winds, such as blowing sand and debris, downed power lines, fallen trees and structural damage to buildings. These conditions result in increased demand for fire services, blocked or delayed emergency vehicle access and impaired water supplies and building emergency systems. During summer months, the Santa Ana Winds produce periods of extremely low humidity, thereby reducing the moisture content of vegetative fuels and increasing the possibility and severity of fire from dry vegetat ion and other common combustibles. Also, during the summer months, the City of Hesperia experiences prolonged periods of temperatures in excess of one hundred degrees Fahrenheit (100 0F). When coupled with sustained severe Santa Ana Winds, an increase in the threat from rapidly moving wildfires exists. The City of Hesperia does not have a storm drainage system and therefore d uring the winter months, heavy rains occasionally cause damage to roadways or leave built-up mud and debris, rendering them completely impassible, or with limited access, sometimes for extended periods.

WHEREAS, A copy of the 2022 Building Codes identified in this Ordinance ha ve been filed with the City Clerk of the City of Hesperia and are kept in the office of the Building Official in accordance with California Government Code Section 50022.6; and WHEREAS, On November 15, 2022, the City Council of the City of Hesperia conducted a duly noticed Public Hearing as required by Government Code Section 50022.3 and concluded said hearing on that date; and
WHEREAS, All legal prerequisites to the adoption of this Ordinance have occurred.

NOW THEREFORE, THE HESPERIA CITY COUNCIL DOES ORDAIN AS FOLLOWS:

Section 1. All of the facts set forth in the forgoing recitals are true, correct and are adopted as findings.

Section 2. Chapter 15.04 of the H esperia Municipal Code entitled “Building Codes”, adopted by Ordinance No. 2019-16 is hereby repealed, provided that said repeal shall not apply to or excuse any violations thereof occurring prior to the effective date of this Ordinance and provided further that the building regulations as adopted by referen ce and amended by Ordinance 2019-16 shall be applicable to construction projects for which plans have been submitted for plan r eview and the plan review fees paid as of December

Ordinance No. 2022-16

31, 2022; provided that neither the plan r eview nor permits issued for construction of the structure expire.

Section 3. Chapter 15.04 of the Hesperia Municipal Code entitled “Building Codes” is hereby added as set forth in “Exhibit A” attached hereto and incorporated herein by this reference.

Section 4. Chapter 15.06 of the Hesperia Municipal Code entitled “Grading” adopted by Ordinance No. 2019-16 is hereby repealed, provided that said repeal shall not apply to or excuse any violations thereof occurring prior to the effective date of this Ordinance and provided further that the building regulations as adopted by reference and amended by Ordinance 2019-16 shall be applicable to construction projects for which plans have been submitted for plan review and the plan review fees paid as of December 31, 2022; provided that neither the plan review nor permits issued for construction of the structure expire.

Section 5. Chapter 15.06 of the Hesperia Municipal Code entitled “Gr ading” is hereby added as set for th in “Exhibit B” attached hereto and incorporated herein by this reference.

Section 6. This Ordinance shall take effect on January 1, 2023.

Section 7. The City Council of the City of Hesperia hereby declares that shoul d any provision, section, paragr aph, sentence, or word of this Ordinance hereby adopted be rendered or declared invalid by any final court action in a court of competent jurisdiction, or by any reason of any preemptive legislation, the remaining provisions , sections, paragraphs, sentences, and words shall remain in full force and effect.

Section 8. The City Clerk shall certify to the adoption of the Ordinance and shall cause the same to be posted in three (3) public places within the City of Hesperia pu rsuant to the provisions of Resolution 93-78.

ADOPTED AND APPROVED this November 15, 2022.

Brigit Bennington, Mayor
ATTEST
Erin Baum, Assistant City Clerk

EXHIBIT “A”
CHAPTER 15.04

BUILDING CODES
SECTIONS:

15.04.010 California Codes Adopted

15.04.020 Appendix Chapters Added

15.04.030 Automatic Fire Sprinklers

15.04.040 Previously Constructed Buildings- Sprinkler Systems

15.04.050 Swimming Pool Barriers and Safety Devices

15.04.010 California Codes Adopted
The 2022 California Building Code, Volumes 1 and 2, 2022 California Residential Code, 2022 California Electrical Code, 2022 California Mechanical Code, 2022 California Plumbing Code, 2022 California Fi re Code, 2022 Administrative Code, 2022 California Green Building Standards Code, 2022 California Energy Code, 2022 California Historical Code, the 2022 California Existing Building Code, 2022 California Administrative Code, and 2022 California Referenced Standards Code are hereby adopted as the Buil ding Regulations for the City of Hesperia, together with the amendments, additions, deletions, and exceptions set forth in this Section.

15.04.020 Appendix Chapters Added
The following appendix chapters are specifically adopted:

A. Appendix Chapter I of the 2022 California Building Code titled “Patio Covers”, is hereby adopted in its entirety.

B. Appendix Chapter A of the 2022 California Plumbing Code titled “Recommended Rules for Sizing the Water Supply System” , is hereby adopted in its entirety.

C. Appendix Cha pter I of the 2022 California Plumbing Code titled “Installation Standards”, is hereby adopted in its entirety.

D. Appendix Chapter H of the 2022 California Plumbing Code titled “Private Sewage Disposal Systems”, is hereby adopted in its entirety.

E. Appendix Ch apter B of the 2022 California Fire Code titled “Fire Flow Requirements for Buildings” is hereby adopted in its entirety.

F. Chapter 1 of the 2022 California Building Code is hereby adopted in its entirety.

15.04.030 Automatic Fire Sprinklers
In addition to the requirements of Section R313 of the California Residential Code, an automatic fire sprinkler system shall be installed in all mobile homes , manufactured homes (HSC Sections 18007 and 18009) and multifamily m anufactured homes with two dwelling units (HSC 18008.7) based on the manufacture r’s construction completion date after December 31, 2010, that are set -down on private property (excluding mobile ho me parks). The fire suppression system shal l be permitted an d approved through the California Department of Housing and Community Development (HCD), in accordance with Title 25 of the California Code of Regulations
In addition to the requirements of Section 903 of the 2022 California Building Code, an automatic fire extinguishing system shall be installed in every building of Group A, B, E, F,

H, I, L , M, S or U with 5,000 or more square feet of floor area or two or more stories i n height.

EXCEPTIONS:

1. Buildings separated into fire areas of less than 5,000 squar e feet by one or more four (4) hour separation walls constructed in accordance with Table 721.1(2) of the California Building C ode, containing no openings and extending from the foundation to a point at least 30-inches above the roof line.

2. Canopies constructed entirely of non -combustible materials with no enclosing walls and spaced at least ten (10) feet from adjacent buildings or structures.

3. Mini-storage buildings construc ted entirely of non -combustible materials and not containing hazardous materials.

4. Buildings with a single, small, low occupancy room on the second floor, when approved by the Fire Chief and Building Official.

5. Detached garages two stories in height.

15.04.040 Previously Constructed Buildings- Sprinkler Systems Previously constructed buildings with a floor area of 5,000 square feet or more and which are proposing to add floor area, change their occupancy classific ation to a more hazardous classification , or significantly alter or remodel the building , shall install an automatic fire extinguisher system.

EXCEPTIONS:

1. Minor t enant improvements, maintenance, and repair such as interior and exterior painting , carpeting, interior window coverings, dra pes, interior non - bearing partitions, surface re -roofing or plumbing, mechanical and e lectrical repairs.

15.04.050 Swimming Pool Barriers and Safety Devices
A. General. Swimming pools shall comply with the requirem ents of this section and other applicable sections of the California Building Code.

B. Definitions. The following words and terms s hall, for t he purposes of this section and as used elsewhere in this chapter, have the meaning shown herein.

APPROVED SAFETY P OOL COVER means a manually or power -operated safety pool cover that meets all of the performance standards of the American Societ y for Testing and Materials (ASTM), in compliance with Standard F 1346-91.

BARRIER (ENCLOSURE) means a fence, wall, or other b arrier that isolates a swimming pool from access to the home or other buildings and grounds.

EXIT ALARMS means devices that make audible, continuous alarm sounds when any door or window that permits access from the residence to the pool area that is without any intervening enclosure, is opened, or is left ajar. Exit alarms may be battery operated or may be connected to the electrical wiring of the building.

PRIVATE SWIMMING POOL means a swimming pool located on the grounds of a single-family home.

PUBLIC SWIMMING POOL means a swimming pool for the u se of the general public with or without charge, or for the use of the members and guests of a private club. Public swimming pool does not include a swimming pool located on the grounds of a private single-family home.

SWIMMING POOL or POOL means any structure in tended for swimming, recreational bathing that contains water over 18 inche s deep. Thi s includes in - ground, above -ground, and on -ground pools; hot tubs, spas, portable spas, and fixed-in-place wading pools.

C. BARRIERS (ENCLOSURES) shall have all the following characteristics:

1. Barrier Height and Clearances. The top of the barrier shall be a t least 60 inches above grade measured on the side of the barrier that faces away from the swimming pool. The maximu m vertical clearance between grade and the bottom of the barrier shall be 2 inches measured on the side of the barrier that faces away from the swimming pool. Where the top of the pool structure is above grade, the barrier is authorized to be at ground lev el or mounted on top of the pool structure, and the maximum ver tical clearance between the top of the pool structure and the bottom of the barrier shall be 4 inches.

2. Openings. Openings in the barrier shall not allow passage of a 4 -inch- diameter sphere.

3. Solid Barrier Surfaces. Solid barriers which do not have openings shall not contain indentations or protrusions except for norm al construction tolerances and tooled masonry joints.

4. Closely Spaced Horizontal Members. Where the barrier is composed of vertical and horizontal members and the distance between the tops of the horizontal members is less than 45 inches , the horizontal m embers shall be located on the swimming pool side of the fence. Spacing between vertical members shall not exceed 1 ¾ inches in width. Where there are dec orative cutouts within vertical members, spacing within cutouts shall not exceed 1 ¾ inches in width.

5. Widely Spa ced Horizontal Members. Where a barrier is composed of horizontal and vertical members and the distance between the tops of the horizontal members is 45 inches or more, spacing between vertical members shall not exceed 4 inches. Where there are decorative cutouts within vertical members, spacing within cutouts shall not exceed 1 ¾ inches in width.

6. Chain Link Dimensions. Maximum mesh size for chain link fences shall be 2 ¼ inch square unless the fence is provided with sturdy slating fastened at the top or the bottom which reduce the openings to no more than 1 ¾ inches in width.

7. Diagonal Members. Where the barrier is composed of diagonal members, the maximum opening formed by diagonal mem bers shall be no more than 1 ¾ inches.

8. Gates. Access doors or gates shall be equipped to accommodate a locking device. Pedestrian access doors or gates shall open outward away from t he pool and shall be self-closing and have a self-latching device. Doors or gates other than pedestrian access doors or gates sha ll be equipped with a locking device. Release mechanisms shall be in accordance with Section 1010.1.9, 1132A and 11B -404 of the California Building Code. Where the release mechanism of the self-latching device is located less than 54 inches from the bottom of the doo r or gate, the release mechanism shall be located on the pool side of the door or gate at least 3 inches (76 mm) bel ow the top of the door or gate, and the door or gate and bar rier shall have no opening greater than ½ inch within 18 inches of the release mechanism.

9. Pool Structure as Barrier. Where an above -ground pool is used as a barrier or where the b arrier is mount ed on top of the pool structure, and the means of access is a ladder or steps, then the ladder or steps either shall be capable o f being se cured, l ocked, or removed to prevent access, or the ladder or steps shall be surrounded by a barrier w hich meets the requirements of this section. When the ladder or steps are secured, locked or removed, any opening created shall not allow the pa ssage of a 4-inch diameter sphere.

Prohibited Locations . Barriers shall be located so as to prohibit permanent structures, equipment, or similar objects from being used to climb the barriers.

D. Safety Features Required. When a building permit is issued for the construction of a new swimming pool or spa or the remodeling of an existing swimming po ol or spa at a private single -family home, the respective swimming pool or spa shall be equipped with at least two of the following seven drowning prevention saf ety features:

1. A barrier that meets the requirements of Section ‘C’ above and isolates the exterior swimming pool or spa from the private single-family home.

2. Removable mesh pool fencing that meets Ame rican Society for Testing and Materials (ASTM) Specifications F 2286 standards in conjunction with a gate that is self -closing and self -latching and can accommoda te a key lockable device.

3. An “approved” manually or power-operated safety pool cover that meets all of the performance standards of the American Society for Testing and Materials (ASTM), in compliance with standard F1346-91.

4. Exit alarms on the private single -family home's do ors that provide direct access to the swimming pool or spa. The exit alarm s must produce an audible warning when the door , or its screen, i f present, are opened. The alarm shall be listed and labeled in accordance with UL 2017. The deactivation switch shall be located 54 inches or more above the threshold of the door. The exit alarm may cause either an alarm noise or a verbal warning, such as a repeating notification that "the door to the pool is open."

5. A self-closing, self-latching device with a release mechanism placed no lower than 54 inches above the floor on the private single-family home's doors providing direct access to the swimming pool or spa.

6. An alarm that, when placed in a swimming pool or spa, will sound upon detection of accidental or unautho rized entrance into the water. The alarm shall meet and be independently certified to the ASTM Standard F2208 "Standard Safety Sp ecification for Residential Pool Alarms," which includes surface motion, pressure, sonar, la ser and infrared type alarms. A swi mming protection alarm feature designed for individual use, including an alarm attached to a child that sounds when the child exc eeds a certain distance or becomes submerged in water, is not a qualifying drowning preventi on safety feature.

7. Other means of protection, if the degree of pro tection afforded is equal to or greater than that afforded by any of the devices set forth in items 1-4 and have been independently verified by an approved testing laboratory as meeting standards for those devices establishe d by the ASTM or the American Society of Testing Mechanical Engineers (ASME).

Exception: Indoor Swimming Pools . Walls surrounding indoor swimming pools shall not be required to comply with this section
E. Construction Requirements. Whenever a building per mit is issued for the construction of a new swimming pool or spa, the pool or spa shall meet all of the following requirements:
a) 1. The suction outlets of the pool or spa for which the permit is issued shall be equipped to provide circulation throughout th e pool or spa as prescribed in paragraphs (2) and (3).

2. The swimming pool or spa shall either have at least two circulation suction outlets per pump that shall be hydraulically balanced and symmetrically plumbed through one or more "T" fittings, and that a re separated by a distance of at least three feet in any dimension between the suction outlets, or be designed to use alternatives to suction outlets, including, but not limited to, skimmers or perimeter overflow systems to conduct water to the recirculation pump.

3. The circulation system shall have the capacity to provide a complete turnover of pool water, as specified in Secti on 3124B of Chapter 31B of the California Building Standards Code (Title 24 of the California Code of Regulations). b) Suction outlets shall be covered with anti -entrapment grates, as specified in the ANSI/APSP-16 performance standard or successor standard des ignated by the federal Consumer Product Safety Commission, that cannot be removed except with the use of tools. Slots or openings in the grates or similar protective devices shall be of a shape, area and arrangement that would prevent physical entrapment and would not pose any suction hazard to bathers.

c) Any backup safety system that an owner of a new swimming pool or spa may choose to install in addition to the requirements set forth in subdivisions (a) and (b) shall meet the standards as published in the d ocument, "Guidelines for Entrapment Hazards: Making Pools and Spas Safer," Publication Number 363, March 2005, United States Consumer Product Safety Commission.

EXHIBIT “B”
CHAPTER 15.06

GRADING
Sections:

15.06.010 General Provisions

15.06.020 Definitions

15.06.030 Permits Required

15.06.040 Permit Application Submittals

15.06.050 Grading Inspections

15.06.060 Excavations

15.06.070 Fills

15.06.080 Setbacks

15.06.090 Drainage and Terracing

15.06.100 Slope Planting and Erosion Control

15.06.110 National Pollutant Discharge Elimination System (NPDES) Compliance

15.06.120 Referenced Standards

15.06.010 General provisions.

A. Scope. The provisions of this chapter apply to grading, excavation and earthwork construction, including fills and embankments and the control of grading site runoff, including erosion and transport of sediments and construction-related pollutants.

The purpose of this chapter is to safeguard life, limb, property, and the public welfare by regulating grading on private property.

B. Flood Hazard Areas. The provisions of this chapter shall not apply to grading, excavation and earthwork construction, including fills and embankments, in floodways within flood hazard areas established in California Building Code (CBC) Section 1612.3 or in flood hazard areas where design flood elevations are specified but floodways have not been designated, unless it has been demonstrated through hydrologic and hydraulic analyses performed in accordance with standard engineering practice that the proposed work will not result in any increase in the level of the base flood.

C. General Hazards. Whenever the Building Official or designee determines that any existing excavation or embankment or fill on private property has become a hazard to life and limb, or endangers property, or adversely affects the safety, use or stability of a public way or drainage channel, the owner of the property upon which the excavation or fill is located, or other person or agent in control of said property, upon receipt of notice in writing from the Building Official or designee shall within the period specified therein repair or eliminate such excavation or embankment to eliminate the hazard and to be in conformance with the requirements of this code.

D. Safety Precautions. If at any stage of the work the Building Official or designee determines by inspection that further gradi ng as authorized is likely to endanger any public or private property or result in the deposition of debris on any public way or interfere with any existing drainage course, the Building Official or designee may order the work stopped by notice in writing served on any persons engaged in doing or causing such work to be done, and any such person shall immediately stop such work.

The Building Official or designee may authorize the work to proceed if the Building Official or designee finds adequate safety pre cautions can be taken or corrective

measures incorporated in the work to avoid the likelihood of such danger, deposition, or interference. If the grading work as done has created or resulted in a hazardous condition, the Building Official or designee shall give written notice requiring correction thereof as specified in Section 15.06.050 of this chapter.

E. Protection of Utilities. The owner of any property on which grading has been performed and that requires a grading permit under Section 15.06.030 sha ll be responsible for the prevention of damage to any public utilities or services.

F. Protection of Adjacent Property. The owner of any property on which grading has been performed and that requires a grading permit under Section 15.06.030 is responsible for the prevention of damage to adjacent property and no person shall excavate on land sufficiently close to the property line to endanger any adjoining public street, sidewalk, alley, or other public or private property without supporting and protecting such property from settling, cracking or other damage that might result.

Special precautions approved by the Building Official or designee shall be made to prevent imported or exported materials from being deposited on the adjacent public way and/or drainage courses.

G. Storm Water Control Measures. The owner of any property on which grading has been performed and that requires a grading permit under Section 15.06.030 shall put into effect and maintain all precautionary measures necessary to protect ad jacent water courses and public or private property from damage by erosion, flooding, and deposition of mud, debris, and construction -related pollutants originating from the site during grading and related construction activities.

H. Maintenance of Private Devices. The owner of any property on which grading has been performed pursuant to a permit issued under the provisions of this code, or any other person or agent in control of such property, shall maintain in good condition and repair all drainage str uctures and other protective devices when they are shown on the grading plans filed with the application for grading permit and approved as a condition precedent to the issuance of such permit.

I. Conditions of Approval. In granting any permit under this code, the Building Official or designee may include such conditions as may be reasonably necessary to prevent creation of a nuisance or hazard to public or private property. Such conditions may include, but shall not be limited to:

1. Improvement of any existing grading to comply with the standards of this code;

2. Requirements for fencing of excavations or fills which would otherwise be hazardous.

15.06.020 Definitions.

For the purposes of this chapter, the terms, phrases, and words listed in this section and their derivatives have the indicated meanings.
"BENCH" means the relatively level step excavated into earth material on which fill is to be placed.
“BEST MANAGEMENT PRACTICES (BMPs)” Defined at 8.30.030.

"BORROW" means earth material acquir ed from an off -site location for use in grading on a site.

"CIVIL ENGINEER" means a professional engineer registered in the state of California to practice in the field of civil works.

"CIVIL ENGINEERING" means the application of the knowledge of the fo rces of nature, principles of mechanics, and the properties of materials to the evaluation, design, and construction of civil works.

"COMPACTIONS" means the densification of a fill by mechanical means.

“CONSTRUCTION GENERAL PERMIT (CGP)” means the current version of the National Pollutant Discharge Elimination System (NPDES) General Permit f or Storm Water Discharges Associated with Construction and Land Disturbance Activities. The Construction General Permit (CGP) is issued by the Storm Water Resources C ontrol Board ( SWRCB) for storm water discharges associated with construction projects over one acre, or smaller sites that are part of a larger common plan of development or sale. (Also Defined in HMC 8.30.030).

“CUT”. See "Excavation."

"DESIGN ENGINEER" means the civil engineer responsible for the preparation of the grading plans for the site grading work.

"DESILTING BASINS" means physical structures constructed for the removal of sediments from surface water runoff.

"DOWN DRAIN" means a device for col lecting water from a swale or ditch located on or above a slope, and safely delivering it to an approved drainage facility.

"EARTH MATERIAL" means any rock, natural soil, or fill or any combination thereof.

"EROSION" means the wearing away of the ground surface as a result of the movement of wind, water, or ice.

“EROSION AND SEDIMENT CONTROL PLAN” means a site -specific plan which identifies and describes the best management practices proposed to control erosion and prevent sediment and construction -related pollutants from being carried off -site by storm water

"EXCAVATION" means the removal of earth material by artificial means, also referred to as a cut.

"FIELD ENGINEER" means the civil engineer responsible for performing the function s as set forth in Section 15.06.050(B)

"FILL" means the deposition of earth materials by artificial means.

"GEOTECHNICAL ENGINEER” means a professional engineer, registered in the state of California, and experienced and knowledgeable in the practi ce of geotechnical engineering.
"GEOTECHNICAL HAZARD" means an adverse condition due to landslide, settlement, and/or slippage. These hazards include but are not limited to loose debris, slope wash, and mud flows from natural or graded slopes.
"GRADE" means the vertical location of the ground surface. “GRADE, EXISTING” "Existing grade" means the grade prior to grading. “GRADE, FINAL” See Section 15.06.050(F)(4).

GRADE, FINISHED. "Finished grade" means the grade of the site at the conclusion of all grading efforts.

GRADE, INITIAL. See Section 15.06.050(F)(2).

GRADE, ROUGH. See Section 15.06.050(F)(3).
"GRADING" means an excavation or fill or combination thereof. "KEY" means a compacted fill placed in a trench excavated in earth material generally constructed at the toe of the slope.
"LANDSCAPE ARCHITECT " means a person who holds a certificate to practice landscape architecture in the state of California under the applicable landscape architecture provisions of Division 3, Chapter 3.5 of the Business and Professions Code.
"PRIVATE SEWAGE DISPOSAL SYSTEM" means a septic tank with effluent discharging into a subsurface disposal field, into one or more seepage pits or into a combination of subsurface disposal field and seepage pit or such other facilities as may be permitted.
"PROFESSIONAL INSPEC TION" means the inspection required by this code to be performed by the project consultants. Such inspections shall be sufficient to form an opinion relating to the conduct of the work.
"PROJECT CONSULTANTS " means the profession al consultants required by this code which may consist of the design engineer, field engineer, geotechnical engineer, engineering geologist, and landscape architect as applicable to this chapter. "SITE" means a lot or parcel of land or contiguous combination thereof, under the same ownership, where grading is performed or permitted.
"SLOPE" means an inclined ground surface, the inclination of which is expressed as a ratio of horizontal distance to vertical distance.

"SOIL" means naturally occurring superficial deposits overlying parent bedrock.

"SOIL TESTING AGENCY" means an agency regularly engaged in the testing of soils and rock under the direction of a civil engineer experienced in soil testing.

"STORM DRAIN SYSTEM" means a conveyance or system of c onveyances, including roads with drainage systems, municipal streets, catch basins, curbs, gutters, ditches, and man-made channels, designed or used for collecting and conveying storm water.

"STORM WATER POLLUTION PREVENTION PLAN (SWPPP)" means a site drawing with details, notes and related documents that identify the measures proposed by the permittee to (1) control erosion and prevent sediment and construction-related pollutants from being carried off-site by storm water, and (2) to prevent non-storm water discharges from entering the storm drain system.

"Storm Water Pollution Prevention Plan (SWPPP)” means a pollution control plan documenting site activities, pollutant sources; and all stormwater and non-stormwater BMPs used at the site, required under 40 CFR Part 122, the Clean Water Act (CWA), the CGP, Industrial General Permit (IGP), and most Municipal Separate Storm Sewer Systems (MS4) Permits. A plan to minimize and manage Pollutants to minimize Pollution from entering the MS4, identifying all potential sources of Pollution and describing planned practices to reduce Pollutants from discharging off the site.

"SURFACE DRAINAGE" means flows over the ground surface.

"TERRACE" means a relatively level step constructed in the face of a graded slope fo r drainage and maintenance purposes.

15.06.030 Permits required.

A. Permits Required. Except as exempted in this section, no grading shall be performed without first having obtained a permit from the Building Official or designee. A grading permit does not include the construction of retaining walls or other structures. A separate permit shall be obtained for each site and may cover both excavations and fills. Any engineered grading as described in Section 15.06.040 shall be performed by a contractor l icensed by the state of California to perform the work described herei n.

Regular grading less than five thousand (5,000) cubic yards may require a licensed contractor if the Building Official or designee determines that special conditions or hazards exist.

B. Exemptions. A grading permit shall not be required for the following:

1. When approved by the Building Official or designee , grading in an isolated, self - contained area, provided there is no danger to the public, and that such grading will not adversely affect adjoining properties;

3. Cemetery graves;

4. Refuse disposal sites controlled by other regulations;

5. Excavations for wells, or trenches for utilities;

6. Mining, quarrying, excavating, processing or stockpiling rock, sand, gravel, aggregate, or clay controlled by other regulations, provided such operations do not affect the lateral support of, or significantly increase stresses in, soil on adjoining properties;

7. Exploratory excavations performed under the d irection of a geotechnical engineer.

This shall not exempt grading of access roads or pads created for exploratory excavations. Exploratory excavations must be restored to existing conditions, unless approved by the Building Official or designee;

8. An excavation that does not exceed fifty (50) cubic yards (38.3 m 3 ) and complies with one of the following conditions:
a. Is less than two feet (0.6 m) in depth,
b. Does not create a cut slope greater than five feet (1.5 m) measured vertically upward from the cut surface to the surface of the natural grade and is not steeper than two units horizontal to one-unit vertical (fifty (50) percent slope);

9. A fill not intended to support a structure, that does not obstruct a drainage course and complies with one of the following conditions:
a. Is less than one foot (0.3 m) in depth and is placed on natural terrain with a slope flatter than five units horizontal to one-unit vertical (twenty (20) percent slope),
b. Is less than three feet (0.9 m) in depth at its deepest point measu red vertically upward from natural grade to the surface of the fill, does not exceed fifty (50) cubic yards, and creates a fill slope no greater than two units horizontal to one-unit vertical (fifty (50) percent slope),
c. Is less than five feet (1.5 m) in depth at its deepest point measured vertically upward from natural grade to the surface of the fill, does not exceed twenty (20) cubic yards, and creates a fill slope no steeper than two units horizontal and one- unit vertical (fifty (50) percent slope).

Exemption from the permit requirements of this appendix shall not be deemed to grant authorization for any work to be done in any manner in violation of the provisions of this code or any other laws or ordinances of this jurisdiction.

C. Unpermitted Grading. A person shall not own, use, occupy or maintain any site containing un -permitted grading. For the purposes of this code, unpermitted grading shall be defined as any grading that was performed, at any point in time, without the required permit(s) hav ing first been obtained from the Building Official or designee , pursuant to subsection A of this section.

D. Availability of Permit at Site. No person shall perform any grading that requires a permit under this chapter unless a copy of the grading permi t and approved grading plans is in the possession of a responsible person and available at the site for the Building Official or designee.

15.06.040 Permit application submittals.

A. Submittal Requirements. In addition to the provisions of CBC, Section 105.3, the applicant shall state the estimated quantities of excavation and fill.

B. Site Plan Requirements. In addition to the provisions of CBC Section 107, a grading plan shall show the existing grade and finished grade in contour intervals of

sufficient clarity to indicate the nature and extent of the work and show in detail that it complies with the requirements of this code. The plans shall show the existing grade on adjoining properties in sufficient detail to identify how grade changes will con form to the requirements of this code.

C. Grading Designation . Grading in excess of five thousand (5,000) cubic yards (three thousand eight hundred twenty -five ((3,825) m3) shall be performed in accordance with the approved grading plan prepared by a ci vil engineer and shall be designated as "engineered grading." Grading involving less than five thousand (5,000) cubic yards (three thousand eight hundred twenty -five ((3,825) m3) shall be designated "regular grading" unless the permittee chooses to have t he grading performed as engineered grading, or the Building Official or designee determines that special conditions or unusual hazards exist, in which case grading shall conform to the requirements for engineered grading.

D. Regular Grading Requirements . In addition to the provisions of CBC Section 105.3 and subsection B of this section, an application for a regular grading permit shall be accompanied by two sets of plans in sufficient clarity to indicate the nature and extent of the work. The plans shal l give the location of the work, the name of the owner, and the name of the person who prepared the plan. The plan shall include the following information:

1. General vicinity of the proposed site;

2. Limits and depths of cut and fill;

3. Location of any buildings or structures where work is to be performed and the location of any buildings or structures within fifteen (15) feet (4.6 m) of the proposed grading;

4. Contours, flow areas, elevations, or slopes which define existing and proposed drainage patterns.

E. Engineered Grading Requirements . In addition to the provisions of CBC Section 105.3 and subsection B of this section, an application for an engineered grading permit shall be accompanied by four sets of plans and specifications and supporting data consisting of a geotechnical report. The plans and specifications shall be prepared and signed by an individual licensed by the state to prepare such plans or specifications when required by the Building Official or designee.

Specifications shal l c ontain information covering construction and material requirements. Plans shall be drawn to scale upon substantial paper or cloth and shall be of sufficient clarity to indicate the nature and extent of the work proposed and show in detail that it will conform to the provisions of this code and all relevant laws, ordinances, rules, and regulations. The first sheet of each set of plans shall give location of the work, the name and address of the owner, and the person by whom they were prepared.

The plans shall include but shall not be limited to, the following information:

1. General vicinity of the proposed site;

2. Property limits and accurate contours of existing ground and details of terrain and area drainage;

3. Limiting dimensions, elevations, o r f inish contours to be achieved by the grading, proposed drainage channels, and related construction;

4. Detailed plans of all surface and subsurface drainage devices, walls, cribbing, dams, and other protective devices to be constructed with, or as a p art of, the proposed work. A map showing the drainage area and the estimated runoff of the area served by any drains shall also be provided;

5. Location of any existing or proposed buildings or structures on the property where the work is to be performed and the location of any buildings or structures on land of adjacent owners who are within fifteen (15) feet (4.6 m) of the property that may be affected by the proposed grading operations;

6. Recommendations in the geotechnical engineer ing report shall be incorporated into the grading plans or specifications. When approved by the Building Official or designee , specific recommendations contained in the geotechnical engineer ing report that are applicable to grading may be included by reference;

7. The dates of the geotechnical engineering reports together with the names, addresses, and phone numbers of the firms or individuals who prepared the reports;

8. A statement of the earthwork quantities of material to be excavated and/or filled. Earth work quan tities shall include quantities for geotechnical and geological remediation. In addition, a statement of material to be imported or exported from the site;

9. A statement of the estimated starting and completion dates for work covered by the permit;

10. A statement signed by the owner acknowledging that a field engineer, or geotechnical engineer when appropriate, will be employed to perform the services required by this code, whenever approval of plans and issuance of permit are to be based on the condi tion that such professional persons be so employed. These acknowledgements shall be on a form furnished by the Building Official or designee;

11. A drainage plan for that portion of a lot or parcel to be utilized as a building site (building pad), includ ing elevations of floors with respect to finish site grade and locations of proposed stoops, slabs and fences that may affect drainage;

12. Location and type of any proposed private sewage disposal system;

13. Location of existing and proposed utilitie s, drainage facilities, and recorded public and private easements; and

14. Location of all recorded natural drainage courses and drainage easements.

F. Geotechnical Report . The geotechnical report required by 15.06.040E shall include data regarding the nature, distribution and strength of existing soils, conclusions and recommendations for grading procedures and design criteria for corrective measures, including buttress fills, when necessary, and opinion on adequacy for the intended use of sites to be developed by the proposed grading as affected by geotechnical engineer ing factors, including the stability of slopes and liquefaction .

Supplemental reports and data may be required as the Building Official or designee may deem necessary. Recommendations i ncluded in the reports and approved by the Building Official or designee shall be incorporated in the grading plan or specifications.

The geotechnical report required by subsection E of this section shall also include an adequate description of the geolog y o f the site, conclusions, and recommendations

regarding the effect of geologic conditions on the proposed development, and an opinion on the adequacy for the intended use of sites to be developed by the proposed grading, as affected by geologic factors. T he geotechnical report shall include a geologic map and cross sections utilizing the most recent grading plan as a base.

Supplemental reports and data may be required as the Building Official or designee may deem necessary. Recommendations included in the reports and approved by the Building Official or designee shall be incorporated in the grading plan or specifications.

G. NPDES Permit Documents . For applicable projects , a SWPPP and a Water Quality Management Plan, each approved by the City, shall be provided with the grading permit application. Projects for which a SWPPP is not required shall provide a City-approved Erosion and Sediment Control Plan (ESCP).

15.06.050 Grading inspection.

A. General. Grading inspections shall be governed by CBC Section 110 and as indicated herein. Grading operations for which a permit is required shall be subject to inspection by the Building Official or designee and p rofessional inspection of grading operations shall be provid ed by the field engineer or geotechnical engineer retained to provide such services in accordance with this section for engineered grading and as required by the Building Official or designee for regular grading.

B. Special and Supplemental Inspections . The special inspection re quirements of CBC Section 1704 shall apply to work performed under a grading permit where required by the Building Official or designee . In addition to the called inspections specified in subsection F of this section, the Building Official or designee may make such other inspections as may be deemed necessary to determine that the work is being performed in conformance with the requirements of this code. Investigations and reports by an approved soil testing agency, geotechnical engineer, and field engineer may be required. Inspection reports shall be provided when requested by the Building Official or designee.

Continuous inspection of drainage devices by the field engineer in accordance with this section may be required when the Building Official or designee determines the drainage devices are necessary for the protection of the structures in accordance with Section

15.06.090 of this chapter.

C. Field Engineer. The field engineer shall provide professional inspection within such engineer's area of technical specialty, oversee and coordinate all field surveys, set grade stakes, and provide site inspections during grading operations to ensure the site is graded in accordance with the approved grading plan and the appropriate requirements of this code. During site grading, and at the completion of both rough grading and final grading, the field engineer shall submit statements and reports required by Subsections J, K and L . If the revised grading plans are required during the course of work, they shall be prepared by a civi l engineer and approved by the Building Official or designee.

D. Geotechnical Engineer. The geotechnical engineer shall provide inspection within such engineer's area of technical specialty, which shall include professional inspection of the excavation to determine if conditions encountered are in conformance with the approved report and observation during grading and testing for required compaction.

The geotechnical engineer shall provide sufficient observation during the preparation of the natural grou nd and placement and compaction of the fill to verify that such work is being performed in accordance with the conditions of the approved plan and the appropriate requirements of this chapter. Revised recommendations relating to conditions differing from t he approved geotechnical engineer ing reports shall be submitted to the permittee, the Building Official or designee and the field engineer.

E. Permittee. The permittee shall be responsible for the work to be performed in accordance with the approved pla ns and specifications and in conformance with the provisions of this code and the permittee shall engage project consultants, if required, to provide professional inspections on a timely basis. The permittee shall act as a coordinator between the project c onsultants, the contractor, and the Building Official or designee. In the event of changed conditions, the permittee shall be responsible for informing the Building Official or designee of such change and shall provide revised plans for approval.

F. Building Official or designee . The Building Official or designee shall inspect the project site at the following various stages of work requiring approval to determine that adequate control is being exercised by the project consultants.

1. Pre-Grade. Before any construction or grading activities occur at the site.

The permittee shall schedule a pre -grade inspection with the Building Official or designee. The permittee is responsible for coordinating that all project consultants are present at the pre-grade inspection;

2. Initial. When the site has been cleared of vegetation and unapproved fill and it has been scarified, benched , over excavated, or otherwise prepared for fill. No fill shall have been placed prior to this inspection;

3. Rough. When approximate final elevations have been established; drainage terraces, swales, and other drainage devices necessary for the protection of the building sites from flooding are installed; berms are installed at the top of the slopes; and the statements required by s ubsection L of this section have been received;

4. Final. When grading has been completed; all drainage devices necessary to drain the building pad are installed; slope planting is established, irrigation systems are installed; and the as -graded plans an d required statements and reports have been submitted.

G. Notification of Non-Compliance. If, in the course of fulfilling their respective duties under this chapter, the field engineer, or the geotechnical engineer finds that the work is not being done in conformance with this chapter or the approved grading plans, the discrepancies and corrective measures which should be taken shall be reported immediately in writing to the permittee and to the Building Official or designee.

H. Transfer of Responsibi lity. If the field engineer, or the geotechnical engineer of record is changed during the grading, the work shall be stopped until the replacement has agreed in writing to accept their responsibility within the area of technical competence for approval upo n completion of the work. It shall be the duty of the permittee to notify the Building Official or designee in writing of such change prior to the recommencement of such grading.

I. Non-Inspected Grading. No person shall own, use, occupy, or maintain an y non- inspected grading. For the purpose of this code, non -inspected grading shall be defined as any grading for which a grading permit was first obtained, pursuant to Section

15.06.030, but which has progressed beyond any point requiring inspection and approval by the Building Official or designee without such inspection and approval having been obtained.

J. Routine Field Inspections and Reports . Unless waived by the Building Official or designee, routine inspection reports shall be provided by the fiel d engineer for all engineered grading projects. The field engineer shall file these reports, with the Building Official or designee as follows:

1. Weekly during all times when grading of more than ten -thousand (10,000) cubic yards per week is occurring on the site.

2. Bi-weekly during all times when grading of four hundred (400) cubic yards or more per week is occurring on the site;

3. Monthly, at all other times; and

4. At any time when requested in writing by the Building Official or designee.

5. Such reports shall cer tify to the Building Official or designee that the field engineer has inspected the grading site and related activities and has found them in compliance with the approved grading plans, the building code, grading permit conditions, and other applicable ordinances and requirements.

K. Completion of Work. Upon completion of the rough grading work and at the final completion of the work, the following reports and drawings and supplements thereto are required for engineered grading or when professional inspe ction is required by the Building Official or designee:

1. An "as-built" grading plan prepared by the field engineer retained to provide such services in accordance with subsection C of this section showing all plan revisions as approved by the Building Official or designee . This shall include original ground surface elevations, as -built ground surface elevations, lot drainage patterns, and the locations and elevations of surface drainage facilities and the outlets of subsurface drains. As -built locations, elevations and details of subsurface drains shall be shown as reported by the geotechnical engineer.

The field engineer shall state in a report, to the Building Official or designee, that to the best of their knowledge, the work within their area of resp onsibility was done in accordance with the final approved grading plan;

2. A report prepared by the geotechnical engineer retained to provide such services in accordance with subsection D of this section including locations and elevations of field densi ty tests, summaries of field and laboratory tests, other substantiating data, a final description of the geology of the site and any new information disclosed during the grading , and comments on any changes made during grading and their effect on the recom mendations made in the approved geotechnical engineer ing report. Geotechnical engineer s shall submit a statement that, to the best of their knowledge, the work within their area of responsibilities is in accordance with the approved geotechnical engineer ing report and applicable provisions of this chapter. The reports shall contain a finding regarding the safety of the completed grading and any proposed structures against hazard from lan dslide, settlement, or slippage, as well as a

final as -built geologic m ap and cross sections depicting all the information collected prior to and during grading.

3. The grading contractor shall submit in a form prescribed by the Building Official or designee a statement of conformance to said as -built plan and the specifications.

L. Notification of Completion . The permittee shall notify the Building Official or designee when the grading operation is ready for final inspection. Final approval shall not be given until all work, including installation of all drainage facili ties and their protective devices, and all erosion control measures have been completed in accordance with the final approved grading plan, and the required reports have been submitted and approved.

M. Change of Ownership. If a grading permit has been i ssued on a property and the Building Official or designee has not approved the final grading when a property changes ownership, a new grading application and permit will be required from the new property owner.

15.06.060 Excavations.

A. General. Unless otherwise recommended in the approved geotechnical engineering, cuts shall conform to the provisions of this section. In the absence of an approved geotechnical engineer ing report, these provisions may be waived, as approved by the Building Official or de signee, for minor cuts not intended to support structures or subject to a surcharge.

B. Maximum Cut Slope. The slope of cut surfaces shall be no steeper than is safe for the intended use and shall be no steeper than two units horizontal to one-unit vertical (fifty (50) percent slope) unless the permittee furnishes a geotechnical engineer ing report, or both, stating that the site has been investigated and giving an opinion that a cut at a steeper slope will be stable and not create a hazard to public or p rivate property. The Building Official or designee may require the excavation to be made with a cut face flatter in slope than two units horizontal to one unit vertical if the Building Official or designee finds it necessary for stability and safety.

C. Slope Surface Protection . All slopes must be stabilized against surface erosion.

Stabilization may be accomplished through the application of erosion control blankets, soil stabilizers or other means as approved by the Building Official or designee.

15.06.070 Fills.

A. General. Unless otherwise recommended in the approved geotechnical engineering report, fills shall conform to the provisions of this section. In the absence of an approved geotechnical engineer ing report, and if approved by the Building Official or designee , these provisions may be waived for minor fills not intended to support structures.

B. Preparation of Ground. Fill slopes shall not be constructed on natural slopes steeper than two units horizontal to one-unit vertical (fifty (50) percent slope). The ground structure shall be prepared to receive fill by removing vegetation, non -complying fill, topsoil and other unsuitable materials scarifying to provide a bind with the new fill.

Where slopes are steeper than five units horizontal to one-unit vertical (twenty (20) percent slope) and the height is greater than five feet (1.5 m), the ground surface shall be prepared to receive fill by benching into sound bedrock or other competent material as determined by the geotechnical engineer . The ground preparation shall be in accordance with Figure 15.06.070 or as determined by the geotechnical engineer. The key under the toe of the fill on a slope steeper than five units horizontal to one-unit vertical (twenty (20) percent slope) shall be at lea st ten feet (3.0 m) wide. The area beyond the toe of fill shall be sloped for sheet overflow or a paved drain shall be provided. When fill is to be placed over a cut, the key shall be at least ten feet (3.0 m) wide. The cut shall be made before placing the fill and the geotechnical engineer shall accept the cut as suitable for the foundation and placement of fill material.

C. Subdrains. Except where recommended by the geotechnical engineer as not being necessary, subdrains shall be provided under all fills placed in natural drainage courses and in other locations where seepage is evident. Such subdrainage systems shall be of a material and design approved by the geotechnical engineer and acceptable to the Building Official or designee. The geotechnical engineer shall provide continuous inspection during the process of subdrain installation to conform to the approved plans and the geotechnical engineer's recommendation. Testing of materials shall be done by a soil testing agency based on the geotechnical engineer's recommendation. The location of the subdrains shall be shown on a plan by the geotechnical engineer.

Excavations for the subdrains shall be inspected by the geotechnical engineer when such subdrains are included in the recommendations of the geotechnical engineer.

D. Fill Material. Detrimental amounts of organic material shall not be permitted in fills.

Unless approved by the Building Official or designee , no rock or similar irreducible material with a maximum dimension of greater than twelve (1 2) inches (0.3 m) shall be buried or placed in fills.

Exception: The Building Official or designee may permit placement of larger rock when the geotechnical engineer properly devises a method of placement, and continuously inspects its placement and approv es the fill stability. The following conditions shall also apply:

1. Prior to issuance of the grading permit, potential rock disposal areas shall be delineated on the grading plan;

2. Rock sizes greater than twelve (12) inches (0.3 m) in maximum dimens ion shall be ten feet (3.0 m) or more below grade, measured vertically;

3. Rocks shall be placed so as to assure filling of all voids with well-graded soil;

4. The reports submitted by the geotechnical engineer shall acknowledge the placement of the ov ersized material and whether the work was performed in accordance with the engineer's recommendations and the approved plans;

5. The location of the oversized rock dispersal areas shall be shown on the as - built plan.

FIGURE 15.06.070

BENCHING DETAILS
E. Compaction. All fills shall be compacted to a minimum of ninety (90) percent of maximum density. Fills shall be compacted throughout their full extent to a minimum relative compaction of ninety (90) percent of maximum dry densit y within forty (40) feet (12.19 m) below finished grade and ninety -three (93) percent of maximum dry density deeper than forty (40) feet (12.19 m) below finished grade, unless a lower relative compaction (not less than ninety (90) percent of maximum dry density) is justified by the geotechnical engineer . The relative compaction shall be determined by A.S.T.M soil compaction test D1557 where applicable. Where not applicable, a test acceptable to the Building Official or designee , shall be used unless the own er furnishes a geotechnical engineering report conforming with the requirements of Section 15.06.040(E), stating that the site has been investigated and giving an opinion that a fill at a steeper slope will be stable and not create a hazard to public or pr ivate property. Substantiating calculations and supporting data may be required where the Building Official or designee determines that such information is necessary to verify the stability and safety of the proposed slope. The Building Official or designe e may require the fill slope be constructed with a face flatter in slope than two units horizontal to one-unit vertical (fifty (50) percent slope) if the Building Official or designee finds it necessary for stability and safety.

Field density shall be dete rmined by a method acceptable to the Building Official or designee. However, not less than ten percent of the required density tests, uniformly distributed, shall be obtained by the sand cone method.

Fill slopes steeper than two units horizontal to one-unit vertical (fifty (50) percent slope) shall be constructed by the placement of soil a sufficient distance beyond the proposed finish slope to allow compaction equipment to operate at the outer surface limits of the final slope surface. The excess fill is t o be removed prior to completion or rough grading. Other construction procedures may be utilized when it is first shown to the satisfaction of the Building Official or designee that the angle of slope, construction method and other factors will comply with the intent of this section.

F. Maximum Fill Slope. The slope of fill surfaces shall be no steeper than is safe for the intended use. Fill slopes shall be no steeper than two units horizontal in one-unit

vertical (fifty (50) percent slope) unless calcul ations are provided by a geotechnical engineer which indicate a steeper slope will be stable and approved by the Building Official or designee.

G. Slopes to Receive Fill. Where fill is to be placed above the top of an existing slope steeper than three u nits horizontal to one-unit vertical (thirty-three (33) percent slope), the toe of the fill shall be set back from the top edge of the slope a minimum distance of six feet (1.8 m) measured horizontally or such other distance as may be specifically recommended by a geotechnical engineer and approved by the Building Official or designee.

H. Inspection of Fill. For engineered grading, the geotechnical engineer shall provide sufficient inspections during the preparation of the natural ground and the placemen t and compaction of the fill ensuring that the work is being performed in accordance with the conditions of plan approval and the appropriate requirements of this chapter. In addition to the above, the geotechnical engineer shall be present during the enti re fill placement and compaction of fills that will exceed a vertical height or depth of thirty (30) feet (9.1 m) or result in a slope surface steeper than two units horizontal to one-unit vertical (fifty (50) percent slope).

I. Testing of Fills . Suffic ient tests of the fill soils shall be made to determine the density and to verify compliance of the soil properties with the design requirements.

This includes soil types and shear strengths in accordance with referenced standards in Section 15.06.120.

15.06.080 Setbacks.

A. General. Cut and fill slopes shall be set back from the property lines in accordance with this section. Setback dimensions shall be horizontal distances measured perpendicular to the property line and shall be as shown in Figure 15. 06.080 unless substantiating data is submitted justifying reduced setbacks is recommended by the geotechnical engineering report, approved by the Building Official or designee.

B. Top of Slope . The setback at the top of a cut slope shall not be less th an that shown in Figure 15.06.080, or than is required to accommodate any required interceptor drains, whichever is greater. For manufactured slopes the grading design must be such that the property line between adjacent lots will be at the apex of the ber m at the top of the slope. Property lines between adjacent lots cannot be located on a graded slope equal to five units horizontal to one-unit vertical (twenty (20) percent slope).

FIGURE 15.06.080

SETBACK DIMENSIONS
C. Toe of Fill Slope. The setback from the toe of a fill slope shall not be less than that shown by Figure 15.06.080. Where required to protect adjacent properties at the toe of a slope from adverse effects of the grading, additional protection, approved by the Building Official or designee , shall be included. Such protection may include but shall not be limited to:

1. Setbacks greater than those required by Figure 15.06.080;

2. Provisions for retaining walls or similar construction;

3. Erosion protection of the fill slopes;

4. Provision for the control of surface waters.

D. Alternate Setbacks . The Building Official or designee may approve alternate setbacks. The Building Official or designee may require an investigation and recommendation by a qual ified geotechnical engineer to demonstrate that the intent of this section has been satisfied.

15.06.090 Drainage and terracing.

A. General. Unless otherwise recommended by a registered design professional, and approved by the Building Official or desi gnee, drainage facilities and terracing shall be provided in accordance with the requirements of subsection B of this section for all cut and fill slope where the ground slope is steeper than three units horizontal to one-unit vertical (thirty-three (33) percent slope).

For slopes flatter than three units horizontal to one-unit vertical (thirty-three (33) percent slope) and steeper than five units horizontal to one-unit vertical (twenty (20) percent slope), a paved swale or ditch shall be provided at thirty (30) foot (9.1 m) vertical intervals to control surface drainage and debris. Swales shall be sized based on

contributory area and have adequate capacity to convey intercepted waters to the point of disposal as defined in subsection E of this section. Swal es must be paved with reinforced concrete not less than three inches (.08 m) in thickness, reinforced with six - inch (0.2 m) by six -inch (0.2 m) "No. 10 by No. 10" welded wire fabric or equivalent reinforcing centered in the concrete slab or an approved equ al. Swales must have a minimum gradient of not less than five percent. There shall be no reduction in grade along the direction of flow unless the velocity of flow is such that slope debris will remain in suspension on the reduced grade.

B. Drainage Terraces. Drainage terraces at least eight feet (2.4 m) in width shall be established at not more than thirty (30) foot (9.1 m) vertical intervals on all cut and fill slopes to control surface drainage and debris. When only one terrace is required, it shall be mid-height. For cut or fill slopes greater than one hundred (100) feet (30.5 m) and up to one hundred twenty (120) feet (6.1 m) in vertical height, one terrace at approximately mid-height shall be twenty (20) feet (6.1 m) in width. Terrace widths and spa cing for cut and fill slopes greater than one hundred twenty (120) feet (36.6 m) in height shall be designed by the civil engineer and approved by the Building Official or designee .

Suitable access shall be provided to permit proper cleaning and maintenanc e. Drainage swales on terraces shall have a longitudinal grade of not less than five percent and no more than twelve (12) percent and a minimum depth of one foot (0.3 m) at the flow line.

There shall be no reduction in grade along the direction of flow unl ess the velocity of flow is such that slope debris will remain in suspension on the reduced grade. Such terraces must be paved with reinforced concrete not less than three inches (0.08 m) in thickness, reinforced with six-inch (0.2 m) by six-inch (0.2 m) "No. 10 by No. 10" welded wire fabric or equivalent reinforcing centered in the concrete slab or an approved equal paving. They shall have a minimum depth at the deepest point of one foot (0.3 m) and a minimum paved width of five feet (1.5 m). Drainage terr aces exceeding eight feet (2.4 m) in width need only be so paved for a width of eight feet (2.4 m), provided such pavement provides a paved swale at least one foot (0.3 m) in depth. Down drains or drainage outlets shall be provided at approximately three h undred (300) foot (91.44 m) intervals along the drainage terrace or at equivalent locations. Down drains and drainage outlets shall be of approved materials and of adequate capacity to convey the intercepted waters to the point of disposal as defined in subsection E of this section.

C. Interceptor Drains and Overflow Protection . Berms, interceptor drains, swales, or other devices shall be provided at the top of cut or fill slopes to prevent surface waters from overflowing onto and damaging the face of a slope. Berms used for slope protection shall not be less than twelve (12) inches (3.0 m) above the level of the pad and shall slope back at least four feet (1.2 m) from the top of the slope.

Interceptor drains shall be installed along the top of manufactur ed slopes greater than five feet in height receiving drainage from a slope with a tributary width greater than thirty (30) feet (9.1 m) measured horizontally. They shall have a minimum depth of one foot (0.3 m) and a minimum width of three feet (0.9 m). Th e slope shall be approved by the Building Official or designee , but shall not be less than fifty (50) horizontal to one vertical (two percent). The drain shall be paved with concrete not less than three inches (0.08 m) in thickness, or by other materials s uitable to the application and reinforced as required for drainage terraces. Discharge from the drain shall be accomplished in a manner to prevent erosion and shall be approved by the Building Official or designee.