HESPERIA CITY COUNCIL
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
HOUSING AUTHORITY
COMMUNITY DEVELOPMENT COMMISSION
WATER DISTRICT
Meeting Agenda
Tuesday, December 6, 2022
Closed Session - 5:30 PM
City Council Chambers
9700 Seventh Ave., Hesperia CA, 92345
City Clerk's Office: (760) 947-1007
City Council Members
Brigit Bennington, Mayor
William J. Holland, Mayor Pro Tem
Larry Bird, Council Member
Cameron Gregg, Council Member
Rebekah Swanson, Council Member
Allison Lee, Council Member Elected
Nils Bentsen, City Manager
Pam K. Lee, City Attorney
*See page (3) for details on public meeting guidelines during the COVID-19 (Coronavirus) Pandemic
NOTE: In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (760) 947-1007 or (760) 947-1026. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility.
B
rigit Bennington, Mayor 9700 Seventh Avenue
Bill Holland, Mayor Pro Tem Hesperia, CA 92345
Larry Bird, Council Member
Cameron Gregg, Council Member 760-947-1000
Rebekah Swanson, Council Member TD 760-947-1119
Nils Bentsen, City Manager www.cityofhesperia.us
Gateway to the High Desert
City of Hesperia
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December 6, 2022City Council Meeting Agenda
REGULAR MEETING AGENDA
HESPERIA CITY COUNCIL
SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY
HESPERIA HOUSING AUTHORITY
HESPERIA COMMUNITY DEVELOPMENT COMMISSION
HESPERIA WATER DISTRICT
9700 7th Avenue, Council Chambers, Hesperia, CA 92345
As a courtesy, please silence your cell phones and other electronic devices while the meeting is in session. Thank you.
Prior to action of the Council, any member of the audience will have the opportunity to address the legislative body on any item listed on the agenda, including those on the Consent Calendar.
Individuals wishing to speak during General Public Comments or on a particular numbered item must submit a speaker slip to the City Clerk with the agenda item noted. Speaker slips should be turned in prior to the public comment portion of the agenda or before an agenda item is discussed. Comments will be limited to three minutes for General Public Comments, Consent Calendar items and New Business items. Comments are limited to five minutes for Public Hearing items.
In compliance with the Brown Act, the City Council may not discuss or take action on non-agenda items or engage in question and answer sessions with the public. The City Council may ask brief questions for clarification; provide a reference to staff or other resources for factual information and direct staff to add an item to a subsequent meeting.
CLOSED SESSION - 5:30 PM
Roll Call
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
C. Roll Call
D. Agenda Revisions and Announcements by City Clerk
E. Closed Session Reports by City Attorney
ANNOUNCEMENTS/PRESENTATIONS
December 6, 2022City Council Meeting Agenda
1. Presentation to outgoing Mayor Brigit Bennington by Mayor Pro Tem Bill Holland.
OATH OF OFFICE FOR NEWLY ELECTED COUNCIL MEMBERS
The Oath of Office administered to incoming Council Members Brigit Bennington, Cameron Gregg, and Allison Lee.
CALL TO ORDER NEWLY ELECTED COUNCIL MEMBERS
Roll Call
Council Member Brigit Bennington
Council Member Cameron Gregg
Council Member Larry Bird
Council Member Rebekah Swanson
Council Member Allison Lee
COUNCIL/BOARD REORGANIZATION
1. Election of Officers:
A. Selection of
the Mayor/Chair to serve for the City Council, Successor Agency to the Hesperia Community Redevelopment Agency, Community Development Commission, Housing Authority, Hesperia Fire Protection District and Hesperia Water District (term to expire at the first regular meeting held in December 2023).
B. Selection of the Mayor Pro Tem/Vice Chair to serve for the City Council, Successor Agency to the Hesperia Community Redevelopment Agency, Community Development Commission, Housing Authority, Hesperia Fire Protection District and Hesperia Water District (term to expire at the first regular meeting held in December 2023).
Staff Person: Director of Government Services/City Clerk Melinda Sayre SR Election of Officers 12-6-2022Attachments:
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Individuals wishing to speak during General Public Comments or on a particular numbered item are requested to submit a speaker slip to the City Clerk with the agenda item noted. Speaker slips should be turned in prior to the public comment portion of the joint agenda or before an agenda item is discussed. Comments will be limited to three minutes for General Public Comments, Consent Calendar items and New Business items. Comments are limited to five minutes for Public Hearing items.
In compliance with the Brown Act, the City Council may not discuss or take action on non-agenda items or engage in question and answer sessions with the public. The City Council may ask brief questions for clarification; provide a reference to staff or other resources for factual information and direct staff to add an item to a subsequent meeting.
JOINT CONSENT CALENDAR
1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, November 15, 2022.
December 6, 2022City Council Meeting Agenda
Recommended Action:
It
is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, November 15, 2022.
Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2022-11-15Attachments:
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 12-6-2022
Attachment 1 - Warrant Run
Attachments:
3. Approve and Accept Construction of FY 2019-20 CDBG Street Improvements - Phase II and Approve Increases to the Original Contract Amount Recommended Action:
It is recommended that the City Council:
1. Authorize the City Manager to accept the work constructed under FY 2019-20 CDBG Street Improvements - Phase II (C.O. No. 7158); authorize staff to record a “Notice of Completion”; and release all withheld retention amounts pursuant to California Public Contract Code § 7107; and
2. Approve change orders to the original contract for the total amount of $168,977 for cost escalations; and
3. Adopt Resolution 2022-80 Amending the Adopted Fiscal Year 2022-23 Capital Improvement Program Budget by appropriating $225,000 from Fund 207 - Local Transportation Fund to the FY 2019-20 CDBG Street Improvements - Phase II project (Account No. 207-29-700-7158-7500) and authorize the City Manager to execute a Time & Material change order with Christensen Brothers General Engineering, Inc. to their contract in a not-to-exceed amount of $170,000 to repair the storm damage on Peach Avenue.
Staff Person: Assistant City Manager Rachel Molina
SR 2019-20 CDBG Street Improvements Phase II 12-6-2022
Resolution 2022-80
Attachments:
4. Vehicle Procurement for Streets Maintenance Program - One Super-Duty Truck
December 6, 2022City Council Meeting Agenda
Recommended Action:
It
is recommended that the City Council authorize the City Manager to approve the procurement of one (1) 2023 Ford F-350 4 x 4 Super-Duty truck, award the bid to Fairview Ford in the not-to-exceed amount of $50,114.
Staff Person: Director of Public Works Jeremy McDonald
SR Fairview Ford 12-6-2022
Attachment 1 - Bid Comparison
Attachments:
5. Update to Sewer System Management Plan (SSMP)
Recommended Action:
It
is recommended that the City Council adopt and implement the updated five (5) year Sewer System Management Plan (SSMP), covering 2022 through 2027 in accordance with State regulations.
Staff Person: Director of Public Works Jeremy McDonald
SR Update Sewer System Management Plan 12-6-2022
Attachment 1 - Sewer System Management Plan Update 2022 to 2027 Attachments:
6. Renewal of Nutanix Xi Leap Disaster Recovery Service Recommended Action:
It
is recommended that the City Council authorize the City Manager to renew the City’s subscription to Nutanix Xi Leap Disaster Recovery as a Service (DRaaS) from Xentegra, for a not-to-exceed amount of $49,696.
Staff Person: Director of Administrative Services Casey Brooksher SR Renewal of Nutanix Xi Leap Disaster Recovery Service 12-6-2022Attachments:
NEW BUSINESS
7. Fiscal Year 2022-23 First Quarter Budget Review
Recommended Action:
It
is recommended that the City Council receive and file the Fiscal Year (FY) 2022-23 First Quarter Budget Review and the related following resolution, amending the FY 2022-23 Budget for the City of Hesperia be approved:
1. City of Hesperia Resolution No. 2022-79
Staff Person: Director of Administrative Services Casey Brooksher SR Fiscal Year 2022-23 First Quarter Budget Review 12-6-2022 Attachment 1 - Fiscal Year 2022-23 First Quarter Budget Review Report Attachment 2 - Resolution 2022-79
Attachments:
COUNCIL COMMITTEE REPORTS AND COMMENTS
December 6, 2022City Council Meeting Agenda
The Council may report on their activities as appointed representatives of the City on various Boards and Committees and/or may make comments of general interest or report on their activities as a representative of the City.
CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
The City Manager, City Attorney or staff may make announcements or reports concerning items of interest to the Council and the public.
ADJOURNMENT
I, Melinda Sayre, City Clerk of the City of Hesperia, California do hereby certify that I caused to be posted the foregoing agenda on Thursday, December 1, 2022 at 5:30 p.m. pursuant to California Government Code §54954.2.
_____________________________
Melinda Sayre,
City Clerk
Documents produced by the City and distributed less than 72 hours prior to the meeting regarding items on the agenda will be made available in the City Clerk's Office during normal business hours.
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City of Hesperia
STAFF REPORT
DATE: December 6, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Melinda Sayre, Director of Government Services/City Clerk SUBJECT: Council / Board Reorganization
RECOMMENDED ACTION
It is recommended the City Council / Subsidiary Boards select their Mayor/Chair and Mayor Pro Tem/Vice Chair to serve for one year.
BACKGROUND
CA Government Code requires the installation of the Mayor and Mayor Pro Tempore at the first meeting in December. In March of 2010, the Council adopted the City Council Procedures Manual which outlined guidelines for the annual reorganization of the Counci l and set the term of office for the Mayor/Chair and Mayor Pro Tem/Vice Chair for one year following nomination.
ISSUES/ANALYSIS
The recommended action is in compliance with the Government Code requirements and the City Council adopted Council Procedures Manual.
FISCAL IMPACT
None
ALTERNATIVE(S)
1. Provide alternative direction to staff
ATTACHMENT(S)
None
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City of Hesperia
Meeting Minutes - Draft
City Council
Tuesday, November 15, 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 Real Property Negotiators – Property Negotiations: Government Code Section – 54956.8
1. Negotiating Parties: City of Hesperia and Chi-Chu Chen Trust Location: APN 3039-431-01 Lift Station Under Negotiation:
Price and Terms
CALL TO ORDER - 6:30 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call
Present: 5 - Council Member Bird, Council Member Swanson, Mayor Pro Tem Holland, Council Member Gregg and Ma
yor Bennington
D. A genda Revisions and Announcements by City Clerk
None
E.
Closed Session Reports by City Attorney
No reportable action taken.
City Council Chambers
9700 Seventh Ave.
Hesperia CA, 92345
City Council Chambers
9700 Seventh Ave.
Hesperia CA, 92345
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) Bob Nelson commented on public comments during public meetings.
Daniel Krist commented on various community issues.
Darrell Ogg commented on commercial truck route.
Lettisha Johnson commented on traffic safety in the City.
Al Vogler commented on off-road vehicles on City streets.
Mallory Hearn commented on a poem in honor of Mayor Pro Tem Holland’s service on the City Council.
JOINT CONSENT CALENDAR
A motion was made by Gregg, seconded by Holland, that Joint Consent Calendar be approved.
The motion carried by the following vote:
Aye: 5 - Bird, Swanson, Holland, Gregg and Mayor Bennington Nay: 0
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 Tuesda
y, November 1, 2022.
Sponsors: Assistant City Clerk Erin Baum
2. Warrant Run Report (City - Successor Agency - Housing Authority - Community De velopment 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 Hes
peria Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission and Water District.
Sponsors: Director of Administrative Services Casey Brooksher
3. 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 Hes
peria Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission and Hesperia Water District.
Sponsors: Director of Administrative Services Casey Brooksher
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.
Sponsors: Assistant City Clerk Erin Baum and Director of Government Services/City Clerk Melinda Sayre
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 Hes
peria 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.
Sponsors: Director of Administrative Services Casey Brooksher
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. 20
22-77 and HWD 2022-18, approving the City’s Fiscal Year (FY) 2022-23 revised Combined Compensation Schedule.
Sponsors: Director of Administrative Services Casey Brooksher and Deputy Human Resources/Risk Management Director Rita Perez
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 c
ontract 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.
Sponsors: Director of Public Works Jeremy McDonald
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 c
ontract 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.
Sponsors: Director of Public Works Jeremy McDonald
CONSENT ORDINANCES
9. Amendments to Title 10 and Title 16 of the Hesperia Municipal Code Defining the terms “Undeveloped Lots, Trac
ts, 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.
Sponsors: Administrative Analyst Jacquelyn Castillo
A motion was made by Holland, seconded by Bird, that this item be adopted. The motion carried by the following vote:
Aye: 5 - Bird, Swanson, Holland, Gregg, and Bennington
Nay: 0
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.
Sponsors: Administrative Analyst Jacqueline Castillo
A motion was made by Holland, seconded by Bird, that this item be adopted. The motion carried by the following vote:
Aye: 5 - Bird, Swanson, Holland, Gregg, and Bennington
Nay: 0
PUBLIC HEARING
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).
Sponsors: Deputy Community Development Director Mike Hearn The public hearing was opened, there being no public test A motion was made by Holland, seconded by Bennington, that this item be adopted. The motion carried by th
e following vote:
Aye: 5 - Bird, Swanson, Holland, Gregg, and Bennington
Nay: 0
12. Substantial Amendment to the Community Development Block Grant (CDBG) 2021-2022 an
d 2022-2023 Annual Action Plans
Recommended Actions:
It is recommended that the City Council: (1) conduct a public hearing and upon accepting public testimon
y, 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.
Sponsors: Economic Development Manager Victor Knight
The public hearing was opened. The following individuals commented on item 12.
Kambria Strathmann
Michelle Bonilla
A motion was made by Swanson, seconded by Holland, that this item be approved. The motion carried by th
e following vote:
Aye: 5 - Bird, Swanson, Holland, Gregg, and Bennington
Nay: 0
NEW BUSINESS
13. Proposed Termination of Victor Valley Wastewater Reclamation Authority (VVWRA) Service Agreement and Other Contr
olling Agreements
Recommended Action:
It is recommended that the City Council and Hesperia Water District Board direct the Cit y 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.
Sponsors: City Manager Nils Bentsen
Al Vogler commented on item 13.
A motion was made by Holland, seconded by Gregg, that this item be approved. The motion carried by th
e following vote:
Aye: 5 - Bird, Swanson, Holland, Gregg, and Bennington
Nay: 0
14. Residential Christmas Decoration Contest
Recommended Action:
It is recommended that the City Council give direction to staff on the establishment of a residential Christm
as decoration contest.
Sponsors: Assistant City Manager Rachel Molina
Direction given
CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
None
ANNOUNCEMENTS/PRESENTATIONS
1. Presentation and cupcake reception in honor of outgoing Mayor Pro Tem Bill Holland by the City Council
ADJOURNMENT
The meeting was adjourned at 8:37 p.m.
_____________________________
Erin Baum, Assistant City Clerk
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City of Hesperia
STAFF REPORT
DATE: December 6, 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 22, 2022 through November 4, 2022.
ATTACHMENT(S)
1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $3,196,542.70 $273,230.93 $0.00 $3,469,773.63 Successor Agency 6,000.00 0.00 0.00 6,000.00
Housing Authority 615.00 181.05 0.00 796.05
Community Development Commission 0.00 0.00 0.00 0.00
Water 232,848.92 112,090.77 0.00 344,939.69
Totals $3,436,006.62 $385,502.75 $0.00 $3,821,509.37
YEAR-TO PRIOR FY YTD
W/E W/E WARRANT DATE DATE
FUND # FUND NAME 10/28/2022 11/4/2022 TOTALS Wires TOTALS * TOTALS Accounts Payable
100 GENERAL 1,733,347.71$ 48,625.45$ 1,781,973.16$ -$ 11,983,563.76$ 11,204,659.10$ 200 HESPERIA FIRE DISTRICT -$ -$ -$ -$ -$ -$
204 MEASURE I - RENEWAL -$ -$ -$ -$ 173,443.94$ 78,930.36$ 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 -$ 6,801.38$ 6,801.38$ -$ 46,980.19$ 446,151.98$ 254 AB2766 - TRANSIT -$ -$ -$ -$ -$ -$
256 ENVIRONMENTAL PROGRAMS GRANT 1.50$ 4,854.81$ 4,856.31$ -$ 16,741.18$ 12,607.29$ 257 NEIGHBORHOOD STABILIZATION PROG -$ -$ -$ -$ -$ -$ 258 CDBG-CV CARES ACT -$ -$ -$ -$ -$ -$
260 DISASTER PREPARED GRANT -$ -$ -$ -$ -$ -$
262 SB 1
383 LOCAL ASSISTANCE GRANT -$ -$ -$ -$ 6,000.00$ -$ 263 STREETS MAINTENANCE 17,365.67$ 28,847.36$ 46,213.03$ -$ 860,858.04$ 802,424.36$ 300 DEV. IMPACT FEES - STREET 25,050.00$ 2,490.00$ 27,540.00$ -$ 30,261.18$ 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 98,698.11$ 71,381.05$ 170,079.16$ -$ 1,982,978.00$ 38,250.74$ 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 784,804.97$ 164,584.68$ 949,389.65$ -$ 4,516,234.14$ 328,047.69$ 509 CITY FACILITIES CIP -$ -$ -$ -$ -$ -$
800 EMPLOYEE BENEFITS 117,310.43$ 82,341.49$ 199,651.92$ -$ 3,180,435.55$ 2,670,175.79$ 801 TRUST/AGENCY 1,343.00$ 800.00$ 2,143.00$ -$ 608,041.24$ 1,259,854.17$ 802 AD 91-1 AGENCY -$ -$ -$ -$ -$ -$
804 T
RUST-INTEREST BEARING -$ 1,040.00$ 1,040.00$ -$ 27,665.00$ 21,748.00$ 807 CFD 2005-1 6,855.09$ -$ 6,855.09$ -$ 969,811.58$ 929,132.65$ 808 HFPD (TRANSITION) -$ -$ -$ -$ 317,384.59$ 369,875.18$ 815 PLAN REVIEW TRUST - FRONTIER -$ -$ -$ -$ 6,584.08$ -$ CITY 2,784,776.48$ 411,766.22$ 3, 196,542.70$ -$ 27, 584,173.31$ 22, 006,827.50$ 163 REDEVELOP OBLIG RETIREMENT-2018 -$ 6,000.00$ 6,000.00$ -$ 7,746,169.98$ 7,937,503.22$ SUCCESSOR AGENCY -$ 6,000.00$ 6, 000.00$ -$ 7, 746,169.98$ 7, 937,503.22$ 370 HOUSING AUTHORITY -$ 615.00$ 615.00$ -$ 5,034.77$ 6,789.18$ HOUSING AUTHORITY -$ 615.00$ 615. 00$ -$ 5, 034.77$ 6, 789.18$ 170 COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ 700 WATER OPERATING 35,162.94$ 164,137.06$ 199,300.00$ -$ 3,223,179.54$ 4,082,332.39$ 701 WATER CAPITAL -$ -$ -$ -$ 8,087.00$ 22,438.15$ 710 SEWER OPERATING 26,227.75$ 4,143.77$ 30,371.52$ -$ 1,363,883.31$ 1,914,771.19$ 711 SEWER CAPITAL -$ -$ -$ -$ 148,914.12$ 148,374.37$ 713 SEWER CAPITAL REHAB AND REPLACE -$ -$ -$ -$ -$ -$ 720 RECLAIMED WATER OPERATIONS -$ 3,177.40$ 3,177.40$ -$ 11,139.09$ 1,072.58$ WATER 61,390.69$ 171,458.23$ 232, 848.92$ -$ 4, 755,203.06$ 6, 168,988.68$ ACCOUNTS PAYABLE TOTAL 2,846,167.17$ 589,839.45$ 3, 436,006.62$ -$ 40, 090,581.12$ 36, 120,108.58$ REG. PAYROLL
City 273,230.93$ -$ 273,230.93$ -$ 2,457,730.17$ 2,157,766.98$ Housing Authority 181.05$ -$ 181.05$ -$ 1,644.16$ 745.24$ Water 112,090.77$ -$ 112,090.77$ -$ 1,007,867.37$ 921,721.67$ PAYROLL TOTAL 385,502.75$ -$ 385, 502.75$ -$ 3, 467,241.70$ 3, 080,233.89$ City of Hesperia
WARRANT RUNS
10/22/2022-11/04/2022
*No payments were issued on July 1, 2022.
Attachment 1
City of Hesperia
STAFF REPORT
DATE: December 6, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Dani Fox, Deputy Director of Development Services
David Burkett, Project Construction Manager
SUBJECT: Approve and Accept Construction of FY 2019-20 CDBG Street Improvements - Phase II and Approve Increases to the Original Contract Amount
RECOMMENDED ACTION
It is recommended that the City Council:
1. Authorize the City Manager to a ccept the work constructed under FY 2019-20 CDBG Street Improvements – Phase II (C.O. No. 71 58); authorize staff to record a “Notice of Completion”; and release all withheld retention amounts pursuant to California Public Contract Code § 7107; and
2. Approve change orders to the original contract for the total amount of $168,977 for cost escalations; and
3. Adopt Resolution 2022 -80 Amending the Adopted Fiscal Year 2022 -23 Capital Improvement Program Budget by appropriating $225,000 from Fund 207 – Local Transportation Fund to the FY 2019 -20 CDBG Street Improvements – Phase II project (Account No. 207-29-700-7158-7500) and authorize the City Manager to execute a Time & Material change order with Christensen Brothers General Engineering, Inc. to the ir contract in a not-to-exceed amount of $ 170,000 to repair the storm damage on Peach Avenue.
BACKGROUND
The City Council has continuously expressed a desire to improve existing roadways within the city. As a result, staff has sought innovative ways to fund such improvements. Annually the City receives Community Development Block Grant (CDBG) funding from the U.S. Department of Housing and Urban Development (HUD). In the past a large part of this funding was directed to programs, which left small amounts available for capital projects. In order to accomplish the Council’s goal of improving more streets throughout the City, staff has designated a larger amount of the CDBG funding towards the CDBG Capital Fund.
The FY 2019-20 CDBG Street Improvement – Phase II Project consists of construction of a new reinforced concrete box drainage structure and appurtenant roadway improvements on Peach Avenue where it crosses the Antelope Valley Wash. Improvements to Peach Avenue will include construction of 26-foot wide asphalt concrete (AC) pavement within the middle of existing 60-foot wide right-of-way.
Staff Report to the Mayor and Council Members
Approve and Accept Construction of FY 2019 -20 CDBG Street Improvements – Ph. II and Approve Increases to the Original Contract Amount
December 6, 2022
ISSUES/ANALYSIS
Staff issued a “Notice Inviting Sealed Bids” for this project on October 26, 2021. A total of six bids were accepted and publicly read on December 9, 2021. Subsequently, the Council awarded a contract to Christensen Brothers General Engineering, Inc. (CBGE) at its December 21, 2021 meeting to construct the roadway improvements for the amount of $ 1,273,128 and approved a contract contingency amount of $127,313. The total expenditure authorization for the Work was $1,400,441. A Notice to Proceed was issued to CBGE to commence work on February 7, 2022.
During construction, four (4) contract change orders in the amount of $75,559 were processed to compensate the contractor for changed conditions and additional work requested by the City. A final addition to the contract amount was approved in the amount of $24,831 to reconcile the actual quantities of work completed versus the quantities estimated in the Bid Documents. These costs were paid out of the Council approved contingency and used 7.89% of the 10% contingency amount, increasing the contract total amount by $100,390 to $1,373,518.
Normally with those approved change orders the contract would be complete;however, due to the rapid rise in the price of oil and other commodities used during constructio n of the project, the contractor additionally filed a claim for escalation of material costs. As the Council may be aware, the inflation rate increased significantly between January of 2022 and August of 2022, while the contractor submitted his bid in December 2021 prior to the increase of costs. The increase in the cost for materials could not have been anticipated by either the City or the contractor. California courts have ruled in the past that an unexpected increase in inflation warrants additional compensation to a contractor.
The Contractor has requested an additional $195,900.10 in compensation due to the rise in inflation during 2022 as summarized below:
Original Contingency Amount $127,313.00
Approved Change Orders from Contingency (100,389.67) 7.89% Balance of Contingency 26,923.33
CLAIM DUE TO MATERIAL COST INCREASES
Price From Cost
Item Qty. Unit Increase Contingency Escalation
Price Increase for Dirt Imported to Project 10,825 CY $1.44 $15,580.00 $0.00 Price Increase for Asphalt Pavement (oil) 29,430 SF 1.41 11,343.32 30,152.98 Price Increase for Aggregate Base 29,430 SF 0.25 7,357.50 Price Increase for Concrete 300 CY 21.21 6,363.00
Price Increase for Guard Rail and Fencing 1 LS 8,032.50 8,032.50 Trucking Fuel Price Increase Importing Dirt 10,825 CY 1.68 18,186.00 Trucking Fuel Price Increase AC Delivery 29,430 SF 1.68 49,442.40 Trucking Fuel Price Increase Agg Base
Delivery
29,430 SF 1.68 49,442.40
TOTALS = $26,923.32 $168,976.78
Staff Report to the Mayor and Council Members
Approve and Accept Construction of FY 2019 -20 CDBG Street Improvements – Ph. II and Approve Increases to the Original Contract Amount
December 6, 2022
The claim for escalation in material costs increases the cost of the project a total of $195,901 or an increase of 15.39% over the original contract amount . The total increase to the original contract amount is only $168,977, as $26,924 will be paid out of the remaining balance of the approved contingency amount.
Therefore, the final contract amount for work completed by CBGE is summarized as; the original contract amount ($1,273,128), plus the described change orders ($100,390), plus the escalation in material costs ($195,901), for a revised total contract amount of $1,569,418. The project was completed six weeks ahead of schedule. On August 26, 2022 all work on the project was completed to the satisfaction of the City’s construction inspector and project manager. Staff is recommending the following:
Acceptance of the completed work and authorization to release the final retention payment. Retention funds for this project, in the amoun t of $78,408 will be available for release to the contractor after recordation of the Notice of Completion pursuant to California Public Contract Code § 7107.
Approve an increase in the contract amount of $168,977 to compensate the contractor for the escalation in material costs.
Emergency Repair
Shortly after completion of this project, a major storm event occurred the week of November 14, 2022 in the vicinity of this project. Storm damage south of the new drainage structure undermined Peach Avenue, which resulted in a road closure. It is paramount that this roadway be repaired and that Peach Avenue is re-opened to vehicular traffic.
In order to repair the damage to Peach Avenue in an expeditious manner, staff has asked CBGE to construct the repairs as they are currently under contract with the City. Utilizing CBGE for the these emergency repairs without following the normal bidding process is provided for under the City’s Purchasing Ordinance, Section 3.08.070(A)(7) – Unforseen Circumstances. Emergency repairs to Peach Avenue are needed to protect public health, safety, and welfare.
Repair work will proceed by CBGE on a Time & Material basis where the contractor will be compensated based on the actual costs of labor, equipment, and materials used for the repair work, to be continuously monitored by a City inspector. It is expected that the repair work will not exceed $170,000. The costs for the repair work will also include fees for a contract inspector and fees for a geotechnical engineeri ng firm to monitor the work to ensure proper backfilling operations are completed as required by the specifications. The budget for this emergency repair is summarized as follows:
Construction Christensen Brothers Gen. Engineering $170,000 Inspection TKE Engineering 10,000
Geotechnical Engineering GeoCon West 25,000
Contingency 20,000
Total Estimated Costs = $225,000
Staff Report to the Mayor and Council Members
Approve and Accept Construction of FY 2019 -20 CDBG Street Improvements – Ph. II and Approve Increases to the Original Contract Amount
December 6, 2022
Staff is also recommending that the Council adopt Resolution No. 2022-80 amending the Adopted Fiscal Year 2022 -23 Capital Improvement Program Budget by appropriating $225,000 to Fund 207 – Local Transportation Fund to cover all costs related to the repair of the storm damage to Peach Avenue.
FISCAL IMPACT
There is adequate funding in the adopted budget to cover the increase in costs to the original project due to cost escalations. The FY 2022-23 Capital Improvement Program Budget included $1,000,000 for the FY 2019-20 CDBG Street Improvement project – Ph. II (C.O. No. 7158), funded from Fund 251 – CDBG Grant Fund. Any balance of CDBG funding remaining from this project will be re-allocated to other CDBG projects.
There are available funds in Fund 207 – Local Transportation Fund to cover the costs for the emergency repair work to be done on Peach Avenue.
ALTERNATIVE(S)
1. Provide alternative direction to staff.
ATTACHMENT(S)
1. Resolution No. 2022-80
RESOLUTION NO. 2022-80
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HESPERIA, CALIFORNIA, AMENDING THE ADOPTED FY
2022-23 CAPITAL IMPROVEMENT PROGRAM BUDGET BY
APPROPRIATING AN ADDITIONAL $225,000 FROM FUND 207
– LOCAL TRANSPORTATION FUND TO THE FY 2019-20 CDBG
STREET IMPROVEMENT PROJECT – PHASE II, C.O. NO. 7158
WHEREAS, Peach Avenue between the Antelope Valley Wash and Hinton Street was severely damaged during the storm event that occurred the week of November 14, 2022 ; and
WHEREAS, immediate repair of the storm damage to Peach Avenue is required in order to protect the public health, safety, and welfare; and
WHEREAS, Section 3.08.070(A)(7) of the City’s Purchasing Ordinance allows for bypassing the normal bidding process in order to construct emergency repairs to protect the public health, safety, and welfare ; and
WHEREAS, the City has an existing contract with Christensen B rothers General Engineering, for the FY 2019-20 CDBG Street Improvement – Phase II project, who has agreed to construct the repairs to Peach Avenue under a Time & Material change order for a not -to-exceed amount of $170,000; and
WHEREAS, the additional costs for inspection, geotechnical engineering services, and contingencies are estimated to be $55,000 for the repair work.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HESPERIA AS FOLLOWS:
Section 1. The foregoing recitals are true and correct.
Section 2. The total estimated costs to repair the storm damage on Peach Avenue are $225,000.
Section 3. The City Council hereby amends the Adopted Fiscal Year 2022 -23 Capital Improvement Program Budget and appropriates $225,000 from Fund 207 – Local Transportation Fund to FY 2019-20 CDBG Street Improvements – Phase II, C.O.
No. 7158 under Account No. 207-29-700-7158-7500.
Section 4. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
Resolution No. 2022-80
ADOPTED AND APPROVED this 6th day of December, 2022.
Brigit Bennington, Mayor
ATTEST:
____________________________
Erin Baum, Assistant City Clerk
City of Hesperia
STAFF REPORT
DATE: December 6, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Jeremy McDonald, Director of Public Works
Robert Worby, Fleet/Warehouse Supervisor
SUBJECT: Vehicle Procurement for Streets Maintenance Program – One Super-Duty Truck
RECOMMENDED ACTION
It is recommended that the City Council authorize the City Manager to approve the procurement of one (1) 2023 Ford F-350 4 x 4 Super-Duty truck, award the bid to Fairview Ford in the no t-to- exceed amount of $50,114.
BACKGROUND
The Fiscal Year (FY) 2022-23 Budget includes funding for the replacement of vehicle 1463, a 1990 Chevrolet K3500 truck with over 136,000 miles, and has reached the end of its useful life as annual costs attributed to maintaining this asset exceeds salvage value. The new vehicle can carry cinder spreaders and de -icing attachments which are crucial components of winter road maintenance. In addition, the truck can carry a dump bed insert that allows fast movement of various materials used for City services including, tree branches, dirt, gravel, sand , building materials, and trash.
ISSUES/ANALYSIS
A formal request for bid (RFB) was released on Thursday, October 20, 2022, soliciting bids from vendors both locally and out of the area to maximize bid response. A public bid opening was held for RFB 2022-23-004 on Tuesday, November 1, 2022, and one response was received from Fairview Ford . Vendors who did not respond include Victorville Chevrolet, Mountain View Chevrolet, Rotolo Chevrolet, Greiner GMC, Sunland Ford, and Mark Christopher Chevrolet. Staff recommends awarding the bid to Fairview Ford who has the vehicle u nder production and has been deemed to be the lowest responsive/responsible bidder and currently manufacturing the truck.
FISCAL IMPACT
Funding for the purchase of the replacement vehicle has been included in the FY 2022-23 Budget.
ALTERNATIVE(S)
1. Provide alternative direction to staff.
ATTACHMENT(S)
1. Bid comparison
RFB 2022-23-004 One New Super-Duty 4 x 4 Truck
Formal Bid Result
Bid Comparison Type: Taxable
Bid Comparison Completed By: Robert Worby
Date:
Item
No. UOM Qty Description Bidder Part # Unit Cost Extended Amount Bidder Part # Unit Cost Extended Amount Subtotal $44,998.00 Subtotal $46,498.00
Sales Tax (7.75%) $3,487.35 Sales Tax (7.75%) $3,603.60 Bid Amount (with tax) $48,485.35 Bid Amount (with tax) $50,101.60 $8.75 $12.25
TOTAL BID $48,494.10 TOT AL BID $50,113.85
$48,494.10 $50,113.85
Difference ($0.00) Difference ($0.00)
Bids also sent to Victorville Chevrolet, Mountain View Chevrolet, Rotolo Chevrolet, Sunland Ford, Greiner GMC, and Mark Christopher Chevrolet.
These vendors did not submit a bid.
2 N/A $0.001
*Per Hesperia Ordinance 2014-09, Section 3.08.080, Sub-section E, "For purposes of determining the lowest responsible, responsive bidder, there shall be deducted from the bid(s) submitted by a local bidder all sales taxes which will be apportioned to and received by the City" (1%).
EA 2023 Super-Duty 4 x 4 Regular Cab Dual Axle N/A
Selected Truck
$46,498.00 $46,498.00
Tire Fee (not subject to Sales Tax
per Cal BOE
)
Submitted Bid Amount
11/1/2022
Tire Fee (not subject to Sales Tax
per Cal BOE
)
Submitted Bid Amount
San Bernardino, CA
$44,998.00 $44,998.00
Fairview Ford Sales
$0.00
1 EA 1 N/A2023 Super-
Duty 4 x 4 Regular Cab Single Axle
Fairview Ford Sales
San Bernardino, CA
N/A $0.00 $0.00
City of Hesperia
STAFF REPORT
DATE: December 6, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Jeremy McDonald, Director of Public Works
Marc Morales, Management Analyst
SUBJECT: Update to Sewer System Management Plan (SSMP)
RECOMMENDED ACTION
It is recommended that the City Council adopt and implement the updated five (5) year Sewer System Management Plan (SSMP) , covering 2022 through 2027 in accordance with State regulations.
BACKGROUND
On May 2, 2006, the State Water Resources Control Board (SWRCB) adopted a General Waste Discharge Requirement (WDR) for all publicly owned sanitary sewer collection systems in California with more than one mile of sewer pipe. The goal of the WDR is to provide a consistent statewide approach for reducing Sanitary Sewer Overflows (SSOs).
One of the requirements of the WDR is the preparation and implementation of a SSMP designed to reduce occurrences of sewer spills outlined by eleven (11) required elements. The City Council first adopted the Cit y’s SSMP on March 21, 2007. In accordance with the requirements of the WDR, the SSMP must be updated every five years with Council approval to incorporate current procedures and standards, and to ensure proper management, operations, and maintenance of the City's sewer infrastructure.
In addition, the Lahontan Regional Water Quality Control Board establishes rules and oversees the water quality in the waters of the State of California and around the City of Hesperia where SSOs are reported to.
ISSUES/ANALYSIS
The SSMP was updated on November 21, 2017. There have been minor updates to this current SSMP, which include personnel and job title descriptions for monitoring, reporting, response, and communication in the event of an SSO. With the City’s continued proactive maintenance on the City’s sewer system, which includes cleaning and video recording, minimal SSOs are experienced. The City recognizes the importance of protecting the City’s water quality and continues to provide proactive maintenance to prevent any SSOs.
FISCAL IMPACT
There is no fiscal impact associated with this item.
Staff Report to the Mayor and Council Members
Update to Sewer System Management Plan
December 6, 2022
ALTERNATIVES
1. Provide alternative direction to staff.
ATTACHMENT(S)
1. Sewer System Management Plan Update 2022 to 2027
1 SEWER SYSTEM
MANAGEMENT PLAN
City of
Hesperia
Collection System
December 6, 2022
2 Contents
Introduction ………………………………………………………………………………………………………………………… 3 (I) Goals ............................................................................................................................. 4
(II) Organization.................................................................................................................. 4 (III) Legal Authority .............................................................................................................. 6 (IV) Operations and Maintenance Program ........................................................................ 8 (V) Design and Performance Provisions ........................................................................... 11 (VI) Overflow Emergency Response Plan .......................................................................... 12 (VII) Fats, Oils and Grease (FOG) Program ......................................................................... 15 (VIII) System Evaluation and Capacity Assurance Program................................................. 16 (IX) Monitoring, Measurement and Plan Modification ..................................................... 17 (X) SSMP Program Audits ................................................................................................. 19 (XI) Communications Program .......................................................................................... 19
3 SEWER SYSTEM MANAGEMENT PLAN
Introduction
The California State Water Resources Control Board (SWRCB) promulgated a waste discharge requirement (WDR) permit on May 2, 2006 to regulate sanitary sewer systems. This permit is known as SWRCB Order No. 2006-0003, Statewide General Waste Discharge Requirements for Sanitary Sewer Systems. On July 30, 2013, Attachment A to the Order was promulgated and became effective on September 9, 2013, and is known as Attachment A, SWRCB Order No. WQO 2013-0058-EXEC, amending the Monitoring and Reporting Program for Statewide General Waste Discharge Requirements for Sanitary Sewer Systems (together these documents constitute the “SSS WDR”).
This permit, among other things, requires local public sewer collection system agencies, referred to as “Enrollees,” to develop a Sewer System Management Plan (SSMP). SSMPs must be self-audited at least every two (2) years and updated every five (5) years from the original adoption date by the Enrollee’s governing board. The original SSMP must have been approved by the governing board of the Enrollee at a public meeting and adopted.
Pursuant to the requirements of WDR, the City of Hesperia (City) prepared and implemented a SSMP, which was first adopted on March 21, 2007. The City Council also approved the five-year updates to the SSMP in 2012 and 2017. This is the next five-year update to the SSMP that is being prepared in 2022. By preparing and implementing the procedures in the plan, the occurrence of sewer spills is expected to decrease. Due to years of taking a proactive approach to sewer system management , many of the program requirements had already been implemented.
There are eleven (11) required SSMP Elements that must be included, which are:
I. Goals
II. Organization
III. Legal Authority
IV. Operations and Maintenance Program
V. Design and Performance Provisions
VI. Overflow Emergency Response Plan
VII. Fats, Oils, and Grease (FOG) Program
VIII. System Evaluation and Capacity Assurance Plan
IX. Monitoring, Measurement and Program Modifications
X. SSMP Program Audits
XI. Communication Program
4 Each SSMP Element has several sub -sections that have been evaluated and are in compliant with WDR.
Along with the recommendation for the City Council to adopt the SSMP, it is also recommended that the City Council direct City staff to continually update the SSMP as needed and submit any updates at appropriate intervals for approval.
(I) Goals
(A) The collection system agency must develop goals to properly manage, operate, and maintain all parts of its wastewater collections system in order to reduce and prevent sanitary sewer overflows ( SSOs), as well as to mitigate any SSOs that occur.
The City of Hesperia recognizes the importance of protecting the water quality by preventing sanitary sewer overflows (SSOs). The City is supplementing its existing Sewer System Management Program with the requirements of Order No. 2006-0003-DWQ. These regulations are intended:
To properly manage, operate, and maintain all portions of the City’s wastewater collection system.
To provide adequate capacity to convey the peak wastewater flows. To minimize the frequency of SSOs.
To mitigate the impacts that are associated with any SSO that may occur. To meet with all applicable regulatory notification and reporting requirements.
(II) Organization
(A) The position of the responsible or authorized representative.
1. Director of Public Works
2. Public Works Supervisor
3. Maintenance Crew Supervisor – Wastewater
(B) The positions and telephone numbers for management, administration, and maintenance positions responsible for implementing specific measures in the SSMP program. Identify lines of authority through an organization chart or similar document with a narrative explanation.
Below is the Exhibit showing the lines of authority of all the administrative and field staff and their respective responsibilities during an SSO. The chart lists names associated with phone numbers of filled positions.
5 Emergency Response Program
Organizational Chart & Responsibilities
City Council 760.947.1030
City Manager
760.947.1025
Director of Public Works
760.947.7742
City Clerk
760.947.1007
Assistant to the City Manager
760.947.1021
City Engineer
760.947.1451
TKE Engineering
951.680.0440
Public Works Supervisor
760.947.1424
Permit Processing
760.947.1311
Maintenance Crew Supervisor – Wastewater
760.947.1483
City Manager – Authorizes outside contractors to perform services. Serves as a liaison to management staff and City Council.
Director of P ublic Works – Documents activities through pictures and reports. Responsible for generating monthly no-spill certificate and handles all required reporting to the appropriate agency for the spill.
City Clerk – Faxes situation updates to the City Council and arranges for emergency Board of Director meeting if necessary.
Assistant to the City Manager – Releases and reports information to the local media (television / radio / newspaper).
City Engineer – Stays in office with engineering plans of all facilities, plans strategies.
Public Works Supervisor – Works directly with field operations, serves as liaison from field operations to management, procures materials, secures outside contractors as needed.
Maintenance Crew Supervisor – Wastewater – Supervises the staff responsible for maintaining the sewer collection system. Provides verbal reports to the City Engineer, evaluates situation & plans strategy with the City Engineer.
Field Crews – Implements emergency response, then mobilizes sewer cleaning trucks, by-pass equipment and service trucks
6 (C) The chain of communication for reporting SSOs, from receipt of a complaint or other information, including the person responsible for reporting SSOs to the State and Regional Water Quality Control Board and other agencies if applicable (such as County Health Officer, County Environmental Health Agency, and/or State Office of Emergency Services (OES).
The City’s Director of Public Works is responsible for overseeing the reporting process. The Director of Public Works receives the spill report from the field crew and drafts the required report. The draft is then reviewed with the City Manager and City Engineer with consideration given to volume calculations, vacuum, wash down operations, cause of spill, timeliness of response, etc. After discussions are complete, the report is finalized and transmitted to the appropriate agencies. The City’s standard procedure is to report all spills, regardless of size or reaches the waters of the State. The City of Hesperia believes in keeping the reporting agencies and the public fully informed.
Prior to the Lahontan Regional Water Quality Control Board preparing reporting requirements, the City of Hesperia had utilized its own reporting form. Regional Water Quality Control Board documents are now in use as the standard form of reporting, City staff continues to utilize internal forms to inform appropriate agencies as necessary. As the first priority during a sewer spill, City staff and field crews notify the appropriate agencies by phone of an occurrence instead of relying on the report as the mea ns of notification.
(III) Legal Authority
The collection system agency must demonstrate, thro ugh collection system use ordinances, service agreements or other legally binding procedures that it possesses the necessary legal authority to:
(A) Prevent illicit discharges into its wastewater collections system. (Examples may include infiltration and inflow (I/I), storm water, chemical dumping, unauthorized debris and cut roots, etc.)
The City has the power to install sewers and enact regulations related thereto, including the prohibition of private sewer systems, and req uiring all i nhabited property to be connected to the City’s sewers when applicable. Health and Safety Code Section 6400 et seq. Once exercised, a sanitary district’s power is controlling over any general law, city or county regulation pertaining to the same subject.
By ordinance, the C ity has established a long-range financial plan to ens ure capital replacement (City’s Sewer Master Plan). Title 14 Section 14.08.060 of the City’s Municipal Code regulates sewer construction.
All sewer construction must be in accordance with City Sta ndards (Section 7.1 thru 7.10). The type of materials and inspection requirements by City staff are provided in Chapter 7.01 of the Sewer Master Plan.
From 1990 to present, the City has video inspected all new sewer lines. Since 2006, a thorough video inspection of all sewer mains in the system was implemented. The results of the video inspection show virtually no sources of infiltration into the lines. Although no sources of infiltration were discovered, the legal authority to control infiltration simply consists of the City Council approval of maintenance or capital projects that will eliminate infiltration causes.
7 Legally controlling inflow encompasses controlling the two major sources of inflow: illegal connections and submerged or flooded streets causing water to enter openings in manhole covers. Illegal connections are connections to the sewer system by property owners who experience drainage issues due to flat and/or low areas, and who attempt to drain those areas to an inlet connected to the sewer system. When instances of these illegal connections are found, the property owner is required to immediately remove the connection. The City’s se wer permit issuance procedure is supported by ordinance and any illegal connections are subject to citation.
The other source of inflow is from submerged intersections during significant storm events where manhole covers are subject to local flooding. The option of using watertight manhole covers is being utilized as needed. City staff works diligently to improve storm drain facilities and these i mprovements will help remove street and intersection flooding.
(B) Require that sewers and connections be properly designed and constructed.
The City has Standard Plans and Specifications for the construction of sanitary sewers, which ensures the sewer lines and connections are properly designed and constructed. The City’s Specifications by reference incorporate the Standard Plans and Specifications for Public Works Construction (Green Book), which helps insure proper design and construction of sewer facilities.
(C) Ensure access for maintenance, inspection, or repairs for portions of the lateral owned or maintained by the public agency.
The City has dedicated staff members who are responsible for the inspection of sewer infrastructure, which has been a part of the City’s inspection program since 1988. The Construction Inspectors are trained and well experienced in pipeline and pumping station construction. The Construction Inspectors attend training classes and educational seminars to familiarize th emselves with advancements in the industry. The Construction Inspectors maintain a copy of the City’s Standard Plans for Sanitary Sewer Construction, the Standard Specifications for Public Works Construction Inspection Manual, the Work Area Traffic Control Handbook, and the CALTRANS Manual for Work upon Highways, in their vehicles at all times.
Results of the Citywide video inspection program determined that Polyvinyl Chloride (PVC) pipe will remain in excellent condition if proper construction practices are followed. Providing continuous i nspection ensures sewer line condition and recognizes possible problem areas. Wastewater Division staff monitor these problem areas regularly. Inspection of other utilities being installed in the vicinity of the sewer lines ensures proper protection methods are followed, thus lengthening the life expectancy of the lines.
(D) Limit the discharge of fats, oils, and greases, and other debris, that may cause blockages.
The City has adopted ordinance under Title 14 Section 14.08.100 of the City’s Municipal Code that controls fats, oils, and greases (FOG). Grease has been identified as the number one cause of sewer line stoppages.
Because of th is finding, FOG has been identified as the most important first step for i nspections and maintenance, thus improving sewer system reliability.
8 The City Council has taken the approach of the City’s Building & Safety Division having the responsibility and legal authority to control discharges to the City’s sewer system and facilities. The adopted FOG program allows the City to require grease interceptors on private property. Property owners are to maintain these systems through periodic cleaning and removal of collected grease. The purpose of grease interceptors is to reduce grease build up in sewer lines and prevent sewer backups or overflows. The legal authority for plumbing fixtures inside a building rest with the City’s Building & Safety Division.
(E) Enforce any violation of its sewer ordinances.
The City utilizes a Code Compliance Division to enforce the ordinance when necessary.
(IV) Operations and Maintenance Program
The SSMP must include those elements listed below that are appropriate and applicable to the Collection system agencies system:
(A) Maintain an up-to-date map of the sanitary sewer system, showing all gravity line segments and manholes, pumping f acilities, pressure pipes and valves, and applicable stormwater conveyance facilities.
The City implemented a Geographic Information Systems (GIS) program on July 1, 2006. Mobile technology is used by the Sewer Division having laptop computers for all workers in the field. This technology is used to update the map of the collection system and all assets associated with the sewer system. This includes the location of all sewer mains, manholes, laterals, pumping stations, and pressurized sewer lines (force mains). In addition, construction plans and new infrastructure within the sewer system are updated to GIS.
The locations of stormwater conveyance facilities are shown on separate plans prepared by the City.
Copies of these plans in reduced size format have been distributed to the City Engineer, Construction Inspector, Field Crews, and in the Administrative Office. The City recognizes the link between a sewer spill and its travel in a s torm drain facility to the rec eiving waters. The City has ed ucated staff in understanding the storm drain network and utilizing it to capture a spill if it has entered the storm drain system.
The City understands the regulations for storm drain system owners which contain requirements prohibiting sewer system spills into storm drains. The National Pollutant Discharge Elimination System ( NPDES) requires the storm drain system owners to adopt measures which decrease the possibility of sewer spills.
An example is the use of interceptors for restaurants in order to decrease the amount of grease in the lines.
The City attends local meetings with the Victor Valley Wastewater Reclamation Authority (VVWRA), a joint powers authority which the City is a member, and the Lahontan Regional Water Quality Control Board in order to coordinate the efforts of the storm drain and sewer system owners.
9 (B) Describe routine preventative operations and maintenance activities by staff and contractors, including a system for scheduling regular maintenance and cleaning of the sanitary sewer system with more fre quent cleaning and maintenance targeted at known problem areas. The Preventative Maintenance (PM) program should have a s ystem to document scheduled and conducted activities, such as work orders;
The City has historically cleaned the sewer system once a year as part of a proactive maintenance schedule and currently maintains a three (3) year schedule due to growth. The industry standard for agencies with comprehensive sewer maintenance programs is once per five (5) to ten (10) years. Areas requiring more frequent cleaning are cleaned on a preventative schedule. On July 1, 2006 the Sewer Collections Division started a video inspection program using Closed Circuit Television (CCTV) taping of all sewer lines within City of Hesperia, and planned to have the entire sewer system taped by June 30, 2010. This goal was completed one year early, in July of 2009. The past video inspection program cycle (CCTV) of all the sewer lines in Hesperia began in 2018 and was completed in June of 2021. The current video inspection program cycle (CCTV) of all the sewer lines in Hesperia began in 2021 and is scheduled to be completed by June of 2024.
The Sewer Division uses mobile technology for all scheduled maintenance (proactive and preventative), and non-scheduled maintenance (reactive) in which the Sewer Division utilizes laptop computers and an asset management database located at City Hall that stores all information for the sewer system. The data is on the City’s computer network for all City departments to review if necessary. The City utilizes computer generated work orders and service requests instead of verbal or hand written requests. The field crew responds with an electronic device which contains the information and history of the assets in question.
The success of the program is discussed at the weekly and monthly staff meetings, and City staff discusses ideas to improve the program.
In addition to the daily cleaning of the gravity sewer lines by the sewer collection team, the City has a pump station maintenance program. Ci ty staff is knowledgeable in the recommended pump maintenance schedule from the pump manufacturer and for the rest of the piping, valves, and other equipment in the station and valve vault. The City uses the recommended maintenance schedule provided by the Schuler Engineering Corporation. Bruce Schuler was requested to provide an outline for the program because of his extensive experience in construction and rehabilitation of pumping stations.
(C) Develop a rehabilitation and replacement plan to identify and prioritize system deficiencies and implement short-term and long-term rehabilitation actions to address each deficiency.
The program should include regular visual and TV inspection of manholes and sewer pipes, and a system for ranking the condition of sewer pipes and scheduling rehabilitation.
Rehabilitation and replacement should focus on sewer pipes that are at risk of collapse or prone to more frequent blockages due to pipe defects. Finally, the rehabilitation and replacement plan should include capital improvement plan that addresses proper management and protection of infrastructure assets. The plan shall include a time schedule for implementing the short- and long-term plans plus a schedule for developing the funds needed for the capital improvement plan.
10 As written in the City of Hesperia’s Sewer Master Plan Update, there are no structural deficiencies in the sewer system. The City’s 2003-2008 video of the sewer system disclosed the few gravity line segments that necessitated point repairs in which these repairs will be part of the City’s Capital Improvement Program (CIP). The City has CCTV capability to record and identify needed repairs in the system. From a long-term standpoint, the City was able to video record the entire gravity system between the years of 2007-2010, and the results of that recording were disclosed along with any additional point repairs that need to be completed. These repairs will be scheduled for completion in future yearly CIP projects.
The sewer pumping station and pressurized sewer line (force main) require a more aggressive maintenance program. The one (1) pumping station has equipment in short-cycle operations throughout every hour of each day. The station is monitored and maintained daily; therefore, any deficiencies are i mmediately apparent. Maintenance is ongoing and on an as-needed basis.
Because these lines flow under pressure, they have a shorter life expectancy than gravity sewers. Gravity sewers can be video inspected while they are in operation, however, force mains must be removed from service, and the system bypassed in order to al low the camera to travel the segment of line. The maintenance schedule will be based on the date of installation, type of pipe, anticipated life expectancy, operating conditions, and previous r uptures, if a pplicable. Prior to the replacement of failed sewer infrastructure , the City shall perform a video inspection.
Current sewer fees provide necessary funds to supplement the CIP. By law, these funds must be used for maintenance and rehabilitation projects, and not for expansion projects. In addition to these funds, various items within the budget are dedicated to sewer system maintenance and operation.
(D) Provide training on a regular basis for staff in sanitary sewer system operations maintenance and require contractors to be appropriately trained.
The Sewer division attends annual formalized collection system training. Members of the division are required to obtain at least a Collections 1 certification through the California Water Environment Agency (CWEA). The division’s Maintenance Crew Supervisor and Senior Maintenance Worker both possess a Collections 4 certification. The collection system team members have between one (1) to ten (10) years of service with the City of Hesperia.
In order to properly respond to a sewer system emergency that requires construction of City sewer facilities, the City will establish a list of qualified local contractors who will respond in a timely manner during an emergency. In addition, the City has a mutual service agreement with its contracted service providers (Fire/Police) to respond to emergencies. The list will contain contractors who have demonstrated expertise in pumping st ation construction, pipeline construction, televising, and pipeline rehabilitation utilizing trench-less technology. These contractors are staffed with experienced workers who are able to handle the scope of emergencies experienced in the City of Hesperia.
11 (E) P rovide equipment and replacement part inventories, including identification of critical replacement parts.
Keeping critical replacement parts available requires the City to stock spare pumps that can be used as replacements while pumps are serviced or replaced. The City attempts to use the same model of pumps in as many stations as possible to simplify maintenance and replacement.
The City has the necessary equipment to work on the sewer lines and pumping stations. In addition to small tools, the City has two (2) sewer cleaning trucks, one (1) video inspection truck, one (1) confined space entry truck, one (1) service truck with traffic control devices, one (1) service truck with traffic control devices with a hoist capable of lifting the pumps, one (1) backhoe, one (1) six (6 ”) inch trailer mounted pump, and one (1) sport utility vehicle.
(V) Design and Performance Provisions
(A) Design and construction standards and specifications for the installation of new sanitary sewer systems, pump stations and other appurtenances; and for rehabilitation and repair of existing sanitary sewer systems.
The City’s standards for the proper installation and inspection of sewer lines are discussed in Section III, Part B. The City has standardized its use of material in the pumping stations for ease of maintenance and replacement. This includes pumps, liquid level indicators, electrical c omponents, valves, piping, and telemetry devices.
The City intends on utilizing trenchless technology for future rehabilitation efforts when applicable.
Trenchless technology will minimize the impact to its customers and potentially reduce construction costs.
(B) Procedures and standards for inspecting and testing the installation of new sewers, pumps, and other appurtenances, and for rehabilitation and repair projects.
Per Title 14 Section 14.08.060 of the City’s municipal code, any person proposing to construct and/or install sewers within the district’s wastewater system shall obtain an encroachment permit from the City.
Procurement of an encroachment permit will notify the appropriate staff members who are responsible for the scheduling and inspection of sewer infrastructure. In the event any construction is found to not meet the design standards of the City, the contractor shall take such steps as may be necessary to remediate deficiencies.
12 (VI) Overflow Emergency Response Plan
The collection s ystem agency shall develop a nd implement an overflow emergency response plan th at identifies measures to protect public health and the environment. At a minimum, this plan should include the following:
(A) Proper notification procedures so that the primary responders and regulatory agencies are informed of all SSOs in a timely manner.
The City’s twenty-four (24) hour communications center is available by direct line at (760) 947-1400. The communications center has immediate cell phone access to the field crews during normal working hours, and access to Standby Teams after-hours.
(B) A program to ensure appropriate response to all overflows.
City policy is to respond to all spills reported or made aware to staff members, including spills located on private property. Staff members are trained to take all necessary steps possible to prevent the spills from reaching storm drains, flood control channels, and/or waters of the State, in accordance with the Waste Discharge Requirements (WDR). Section II (Organization) details the lines of authority and responsibilities of City personnel during an emergency. The City maintains equipment and employs staff who are strictly responsible for sewer system maintenance, operation, and emergency response.
The City shall continue to maintain one (1) sewer f ield team, consisting of one (1) Maintenance Crew Supervisor, one (1) Senior Maintenance Worker, and five (5) Maintenance Workers. The team is responsible for cleaning the sewer system and being first responders in the event of a spill. During normal working hours, response time to a reported sewer overflow is less than fifteen (15) minutes. During non -normal working hours, a member of the City shall respond to any reported sewer overflow within sixty (60) minutes.
The fleet and equipment required to maintain the sewer system consists of :
Two (2) sewer cleaning trucks (hydro flusher) with vacuum capabilities One (1) video inspection truck
One (1) confined space entry truck
Two (2) service trucks, one (1) with lifting capabilities One (1) backhoe
One (1) diesel driven trailer mounted pump
One (1) mid-size truck
(C) P rocedures to ensure prompt notification to appropriate regulatory agencies and other
13 potentially affected entities (e.g. health agencies Regional Water Quality Control Board, water suppliers, etc.) of all SSOs that potentially affect public health or reach the waters of the State in accordance with the MRP. ALL SSOs shall be reported in accordance with this MRP, the California Water Code, other State Law, and other applicable Regional Water Board WDR or NPDES permit requirement. The SSMP should identify the individuals who will receive immediate notification.
The City’s policy is to report all SSOs to the Lahontan Regional Water Quality Control Board even if the SSO is completely contained and captured. The City will also notify the State Office of Emergency Services (OES), when nece ssary. The City believes in f ull disclosure of its operations and performance. The City hereby adopts the spill reporting form referenced in the reporting requirements of the Waste Discharge Requirements (WDR). The form includes a list of the public health agencies and officials who will receive immediate notification of a spill.
(D) Procedures to ensure that appropriate staff and contractor personnel are aware of and follow the Emergency Response Plan and are appropriately trained.
The role of each person during an emergency has been established and is defined. The City has established responsibilities for Staff members which work concurrently with the field team to provide an efficient response. Each City staff member and field team member is required to read and sign acknowledging the receipt and understanding of the Sewer System Management Plan and spill reporting form. Field team members are required to keep copies of the Sewer System Management Plan and spill reporting form in each vehicle assigned to the Sewer Division.
If the emergency is during normal working hours, both field teams and the supervisor are working as appropriate to handle the emergency. At the same time, City staff is positioned as follows:
City Manager – Authorizes outside contractors to perform ser vices. Serves as liaison to management staff and City Council.
Director of Public Works – Documents activities through pictures, reports, and handles all required reporting to the appropriate authorities for the spill.
City Clerk – Emails situation updates to Board of Directors and arranges for emergency Board meeting if necessary.
Community Relations and Media Coordinator – Releases and reports information to the local media (Television / Radio / Newspaper).
City Engineer – Stays in office with engineering plans of all facilities, plans strategy.
Public Works Supervisor – Work directly with field operations. Serves as liaison fr om fie ld operations to management. Secures outside contractors as needed.
Permit Processing – Works as needed; provides support to all parts of operation.
Inspector / Sewer Supervisor – Works with Field Crews to handle emergencies. Provides verbal
14 reports to City Engineer, evaluates situation and plans strategy with City Engineer.
Field Crews – Implements emergency response, then mobilizes sewer cleaning trucks, by-pass equipment, and service trucks.
(E) Procedures to address emergency operations, such as traffic and crowd control and other necessary emergency response activities.
The City’s field teams respond to all emergencies, and if needed, the City utilizes its list of pre-approved qualified contractors. The list of contractors is kept in each field crew vehicle, as well as in each administrative staff office, and in the Sewer Master Plan. The City has a mutual aid agreement with its contracted emergency service providers (Fire/Police) to insure that there will be no delays in responding to emergencies. Both the City and the emergency contractors have traffic control equipment which can also be used for crowd control.
(F) A program to ensure that all reasonable steps are taken to contain untreated wastewater and prevent discharge of untreated wastewater to the waters of the United States and minimize or correct any adverse impact on the environment resulting from the SSOs, including such accelerated or additional monitoring as may be necessary to determine the nature and impact of the discharge.
The impact of spills is minimized by washing the spill down with water to the maximum extent possible.
The City uses fresh water to wash down, and disinfect when appropriate.
The City’s Sewer Division will use appropriate measures to block the catch basin entrances to the storm drains and use cleaning trucks to vacuum up spills, including wash-down water. The City also uses the storm drain system as a containment device if needed. The outlet to the storm drain is blocked and the spill and wash-down water are vacuumed from the line.
The City uses a four-step approach to private lateral sewer discharges that are discharging to the public rights-of-way. First, field teams block the storm drains to ensure that discharge will not enter the system.
If it already has, the City uses the storm drain as a containment device and extracts the discharge and water used to flush the system from a downstream point in the system.
Second, the City sandbags the public right-of-way to prevent further discharge from leaving the property.
Third, the City notifies the property owner or management company of the spill and directs them to hire an emergency plumber to clear the system. City teams never leave the site until the problem is resolved and the spill is stopped and cleaned up. Finally, in addition to the regular reporting of spills, the City collection team requests that City Code Enforcement or Building and Safety notify the property owner of the spill and enforce corrective action.
(VII) Fats, Oils and Grease (FOG) Control Program
15 The collection system agency shall evaluate its service area to determine whether a FOG control program is needed. If the collection system agency determines that a FOG program is not needed, the collection system agency must provide justification for why it is not needed. If FOG is found to be a problem, the collection system agency must prepare and implement a FOG source control program to reduce the amount of these substances discharged to the sanitary sewer system. The FOG source control program shall include the following as appropriate.
The City has established the legality of adopting a grease control ordinance and has the authority to adopt and implement certain grease control regulations on public and private property. Accordingly, the City of Hesperia Building and Safety division has adopted a Fats, Oils and Grease (FOG) Control Program which integrates inspection and enforcement aspects. The FOG Control Program was adopted under Title 14 Section 14.08.100 of the City’s Municipal Code on February 16, 2010. The City has implemented a TV inspection program to locate all FOG areas throughout the sanitary sewer system and identify if they are in commercial, high density residential, or low density residential areas.
(A) An implementation plan and schedule for a public education outreach program that promotes proper disposal of grease and fats.
Because the City recognizes grease from restaurants as the number one cause of sewer line stoppages and spills throughout the State, the City is developing a Restaurant Owners’ Guide to Grease Control. The pamphlet will be published and distributed to every restaurant in the City. The pamphlet will contain information on the importance of fighting grease as well as a list of grease control products available from the local hardware stores.
(B) A plan and schedule for the disposal of FOG generated within the sanitary sewer system service area. This may include a list of acceptable disposal facilities and/or additional facilities needed to adequately dispose of FOG generated within the sanitary sewer system service area.
The City prepared and adopted a FOG ordinance in 2008. It is the City’s intent to encourage generators to recycle whenever possible.
(C) The legal authority to prohibit discharges to the system and identify measures to prevent SSOs and blockages caused by FOG.
The City of Hesperia understands that fats, oils, and grease are the main cause of SSOs. The City requires all food establishments to install and maintain (grease) traps on their property. The City has prepared and implemented a complete FOG program at this time.
(D) Requirements to install grease removal devices (such as traps or interceptors) design standards for the grease removal devices, maintenance requirements, BMP requirements, record keeping
16 and reporting requirements.
The City adopted a FOG ordinance on February 16, 2010, contained in the Hesperia Municipal Code, Title 14 Section 14.08.100.
(E) Authority to inspect grease producing facilities, enforcement authority, and whether the district has sufficient staff to inspect and enforce the FOG ordinance.
The City adopted a FOG ordinance on February 16, 2010, contained in the Hesperia Municipal Code, Title 14 Section 14.08.100.
(F) The grease control program shall identify sections of the sewer maintenance subject to grease blockages and establish a cleaning maintenance schedule for each section.
The City has a list of FOG spots in the City’s database and shown in the GIS system. These area FOG spots are subject to excess grease and are on a preventative maintenance schedule. These FOG spots have not caused a sanitary sewer overflow.
(G) The program shall develop and implement source control measures, for all sources of grease and fats discharged to the sewer system, for each section identified in (A) above.
Source control measure for each section of line identified in (A) above will consist of:
Distribution of the City’s pamphlets for restaurant and homeowner grease control. Restaurants will be required to install grease traps or interceptors. Grease traps or interceptors will be required to be on an inspection program.
(VIII) System Evaluation and Capacity Assurance Plan
The collection system agency shall prepare and implement a capital improvement plan (CIP) that will provide hydraulic capacity of key sanitary sewer system elements for dry weather peak flow conditions, as well as the appropriate design storm or wet weather events. At a minimum, the plan must include:
(A) Evaluation: Action needed to evaluate those portions of the sanitary sewer system that are experiencing or contributing to an SSO discharge caused by hydraulic deficiency. The valuation must provide estimates of peak flows (including flows from SSOs that escape from the system) associated with conditions similar to those causing overflow events, estimates of the capacity of key system components, hydraulic deficiencies (including components of the system with limited capacity) and the major sources that contribute to the peak flows associated with overflow events.
The City has completed a Sewer Master Plan Update which incorporates a hydraulic analysis of every line in the system and plans for increasing capacity for those lines found unable to handle future master
17 planned flows. The current system capacity is able to handle, without difficulty, the current dry weather and wet weather peak sewer flows.
In addition, the Sewer Master Plan assesses the capacity of the sewer system. The main purpose of a Sewer Master Plan is to compare the projected peak flow from the land uses adopted in the General Land Use Plan with the carrying capacity of the sewer lines. Lines unable to handle the maximum flows are supplemented by additional parallel lines. The City’s Sewer Master Plan Update was completed on August 6, 2015 and will be continuously updated as needed.
(B) Design Criteria: Where design criteria do not exist or are deficient, undertake the evaluation identified in (A) above to establish appropriate design criteria.
N/A
(C) Capacity-Enhancement Measures: The steps needed to establish a short-term and long-term CIP to address identified hydraulic deficiencies including prioritization, alternatives analysis, and schedules. The CIP may include increases in pipe size, I/I reduction programs, increases and redundancy in pumping capacity, and storage facilities. The CIP shall include an implementation schedule and shall identify sources of funding.
The Sewer Master Plan Update contains a list of each project identified as necessary to increase the capacity of portions of the s ystem. Some improvements are required in the short-term, and long-term improvements will be planned according to the development and metered sewer flows. During the design of each project, alternative designs are considered.
(D) Schedule: The Collection system agency shall develop a schedule of completion dates for all portions of the capital improvement program developed in (A)-(C) above. This schedule shall be reviewed and updated consistent with the SSMP review and update requirements.
The Sewer Master Plan Update contains a list of each CIP through 2032 and identifies the approximate start and completion dates.
The City will be updating its Sewer Master Plan on a five year schedule or if needed during the five years.
(IX) Monitoring, Measurement, and Plan Modifications
The collection system agency shall:
(A) Maintain relevant information that can be used to establish and prioritize appropriate SSMP activities.
The Sewer Division uses mobile technology for all scheduled maintenance (proactive and preventative), and non-scheduled maintenance (reactive) in which the Sewer Division utilizes laptop computers and a database (Cityworks) located at City Hall that stores all the information for the sewer system. The data is on the City’s computer network for all City departments to review if necessary. The City uses computer generated work orders and service requests instead of verbal or hand written requests. The field crew responds with a laptop computer which has all the information and history of the assets in question. The success of the
18 program is discussed at weekly and monthly staff meetings, and City staff discusses ideas to improve the program.
(B) Monitor the implementation and, where appropriate, measure the effectiveness of each element of the SSMP.
The SSMP will be reviewed yearly to insure all the provisions are implemented, and its effectiveness discussed. The reviewers include field crews, administrative staff, and engineering staff.
(C) Assess the success of the preventative maintenance program.
The City has historically cleaned the sewer system as part of a proactive maintenance schedule and continues to do so. The City’s comprehensive sewer maintenance programs have reduced sewer overflows to those that are caused by vandals. The plan has shown areas in need of more frequent cleaning, known as problem areas, and are cleaned on a preventative schedule. On July 1, 2006 the Sewer C ollections Division started a video inspection program (CCTV) of all the sewer lines in the City of Hesperia and completed the program in 2009. The past video inspection program cycle (CCTV) of all the sewer lines in Hesperia began in 2018 and was completed in June of 2021. The current video inspection program (CCTV) of all the sewer lines in Hesperia began in 2021 and is scheduled to be completed by June 2024.
(D) Update program elements, as appropriate, based on monitoring or performance evaluations.
The SSMP and its elements will be updated in accordance with the results of the monitoring and the reviewer recommendations. For instance, if the study of en zymes and bacteria progresses and the effectiveness is determined to be successful enough to be used instead of traps and interceptors for grease control, the SSMP and City policy will be revised. Performance evaluations are continuous because of the daily operation of the City including all elements of the program. City Staff will request the City Council to include a yearly appropriation to fund the updating.
(E) Modify the summary of the SSMP program, as appropriate, to keep it updated and accurate and available for audit at all times.
A recommendation was made to the City Council to consider the Sewer Master Plan Update and its three elements; the Master Plan, the Sewer System Management Plan, and the Emergency Response Program as on-going concerns that will be continually reviewed and updated. The Sewer Master Plan Update was adopted on August 6, 2015.
The City’s Asset Management database, located at City Hall, stores all the information for the sewer system.
The data is on the City’s computer network for all city departments to review if necessary. The information and history to the sewer assets in the City date back to 1996, when the Sewer Division started the computer database of information pertaining to the City’s sanitary sewer system. The success of the program is discussed at the weekly and monthly staff meetings, and the City staff discusses ideas to improve the program.
(X) SSMP Program Audits
The collection system agency shall conduct periodic audits, appropriate to the size of the system and the
19 number of SSO’s. At a minimum, these audits must occur every two years and a report must be prepared and k ept on fi le. This audit shall focus on evaluating the effectiveness of t he SSMP and the agency’s compliance with the SSMP requirements, including identification of any deficiencies in the SSMP and the steps to correct them.
The City performs an internal audit evaluating its SSMP and its compliance with the WDR every two years, and results of the audits along with recommendations and suggested improvements can be made available to the Lahontan Regional Water Quality Control Board upon request. The City Council has directed staff to update this SSMP document continuously and bring the changes back for approval.
(XI) Communications Program
The collection system agency shall communicate on a regular basis with the public on the development, implementation, and performance of the SSMP. The communication system shall provide the public the opportunity to provide input to the collection system agency as the program is developed and implemented.
The collection system agency shall also create a plan of communication with systems that are tributary and/or satellite to the collection system agency’s sanitary sewer system.
The Director of Public Works will provide interested parties with status updates on the implementation of the components of the SSMP and will also consider comments made by interested parties.
The City has communication with all tributary and satellite systems to the collection system. The City has representatives on the B oard of Victor Valley Wastewater Reclamation Authority (VVWRA) whi ch treats the City’s wastewater. The City also invites and attends meetings from other cities and districts.
The City provides mutual aid outside the City, whether on public or private property, and takes all steps necessary to prevent spills from reaching the storm drains, flood control channels, or waters of the State.
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City of Hesperia
STAFF REPORT
DATE: December 6, 2022
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrativer Services Michael Assumma, Information Systems Manager
SUBJECT: Renewal of Nutanix Xi Leap Disaster Recovery Service
RECOMMENDED ACTION
It is recommended that the City Council authorize the City Manager to renew the City’s subscription to Nutanix Xi Leap Disaster Recovery as a Service (DRaaS) from Xentegra, for a not-to-exceed amount of $49,696.
BACKGROUND
When developing an organization’s disaster recovery plan, industry best-practices dictate a hybrid model that places multiple copies of critical data in both on-site and off-site repositories. As one of several measures intended to strengthen the City’s cybersecurity posture, the Information Technology Division procured a yearly subscription for Nutanix’s Xi Leap disaster recovery service, through Xentegra, LLC. The current subscription with Xentegra will expire at the end of the calendar year.
ISSUES/ANALYSIS
In October 2022, t he City entered into a three -year agreement in the amount of $143,077 with Xentegra, to replace the City’s aging backup solution with current and supported technology solutions. As a cloud based, off-site disaster recovery service, Xi Leap DRaaS compliments the on-site Nutanix Mine Cluster backup and disaster recovery package from Xentegra. Together, Nutanix Xi Leap and Mine form a comprehensive data backup and disaster recovery plan that provides robust redundancy, failover, and data resiliency capabilities. Unfortunately, the annual subscription renewal was not included in the t hree-year agreement, therefore staff is requesting approval from Council.
FISCAL IMPACT
Funding for this subscription renewal is included in the Adopted Fiscal Year (FY) 2022-23 Budget and will continue to be included in the Information Technology annual budget.
ALTERNATIVE(S)
1. Provide alternative direction to staff.
ATTACHMENT(S)
None
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City of
Hesperia
STAFF REPORT
DATE: December 6, 2022
TO: Mayor and City Council Members
Chair and Commission, Hesperia Housing Authority
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 Lorraine Carmona, Budget/Finance Specialist
SUBJECT: Fiscal Year 2022-23 First Quarter Budget Review
RECOMMENDED ACTION
It is recommended that the City Council receive and file the Fiscal Year (FY) 2022-23 First Quarter Budget Review and the related following resolution, amending the FY 2022-23 Budget for the City of Hesperia be approved:
1. City of Hesperia Resolution No. 2022-79
BACKGROUND
In compliance with the City Council’s policy direction, staff has prepared the FY 2022-23 First Quarter Budget Review for the City Council, Hesperia Housing Authority, Hesperia Fire Protection District, and the Hesperia Water District Board’s consideration and action.
ISSUES/ANALYSIS
The attached document ent itled “Fiscal Year 2022-23 First Quarter Budget Review” includes a report on the status of the City’s FY 2022-23 Budget and a financial review of the first three months experience of the current fiscal year. The report format is used to facilitate the review of complex financial information for an efficient and effective financial review process.
FISCAL IMPACT
See attached Fiscal Year 2022-23 First Quarter Budget Review Report document.
ALTERNATIVE
1. Provide alternative direction to staff.
ATTACHMENTS
1. Fiscal Year 2022-23 First Quarter Budget Review Report
2. Resolution No. 2022-79
FISCAL YEAR 2022-23
FIR
ST QUARTER BUDGET REVIEW
Decem
ber 6, 2022
Attachment 1
- 2 -
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 3 -
T A B L E O F C O N T E N T S
Page
Executive Summary ............................................................................................................................ 4 Status of FY 2022-23 Budget, Budget Amendments and Reserves:
General Fund .......................................................................................................................... 6 Water District .......................................................................................................................... 7 Streets Maintenance ............................................................................................................... 8 FY 2022-23 September 30, 2022 Year-To-Date Revenue Review:
Major Funds Revenue Summary ............................................................................................ 9 General Fund Revenues ......................................................................................................... 10 Community Development Block Grant Revenue ..................................................................... 12 Hesperia Housing Authority Revenue ..................................................................................... 12 Street Related Funds Revenue ............................................................................................... 13 Other City Funds Revenue ..................................................................................................... 14 Water District Revenue ........................................................................................................... 15 Department FY 2022-23 Budget Expenditure Status Summary ........................................................... 17 FY 2022-23 Total Expenditures By Department and Program ............................................................. 17 Proposed Budget Amendments – Summary ........................................................................................ 24 Proposed Budget Amendments – Narrative ......................................................................................... 24
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
- 4 -
EXE
CUTIVE SUMMARY
The
following chart compares the FY 2022-23 Budget and September 2022 year-to-date (YTD) revenue and expenditure totals. The percentage comparisons for revenues and expenditures are based on comparing the September 2022 YTD to the FY 2022- 23 Amended Budget. The Amended Budget is used to accurately reflect any changes to t he adopted budget that occur from City Council approving budget amendments during the first three months of the fiscal year.
Status of Overall City Fiscal Year 2022-23 Budget
• Revenue: Based on the analysis of first quarter performance to date, revenue totals collected is $26.3 million, which is $2.1 million or 9% more than was received through first quarter FY 2021-2 2. Additional details are provided further within the report.
• Expenditures: At 17% utilized, the FY 2022-2 3 Budget is proceeding as planned. Overall, the September 2022 YTD expenditures of $22,330,25 6 are $3.3 million or 17% more than the September 2021 YTD of $19,025,150. It should be noted that there are two (2) budget amendments totaling $68,695 included in this report. • Reserves: The cash reserve policy for the General Fund and Water District (operating and capital) exceed the City Council’s minimum policy of two (2) months of the annual expenditures be held in cash. The following estimated reserve calculations are based on the June 30, 2021 ending cash balances included in the June 30, 2021 audited Annual Comprehensive Financial Report (ACFR). Using the ACFR audited data assures that the estimated reserves are based on actual information. The ending cash balance will be revised in the Mid-Y ear report with the June 30, 2022 ACFR figures. In addition, the two (2) First Quarter Budget Amendments, totaling $68 ,695, are
reflected below where appropriate:
2022-23 2022-23 Septem ber Revised %
Budget Revised 2022 YTD Received/Expended
Revenue 144,010,399$ 144,010,399$ 26,327,273$ 18% Use of Reserves 13,088,386 13,088,386
Net Transfers 0 0
Total Resources 157,098,785 157,098,785
Expenditures 133,605,549 133,704,180 22,330,256 17% Difference 23,493,236$ 23,394,605$
10% Cash Reserves (Council/Board Policy) 4,435,933$ 10% 3,676,115$ 10% Cash Reserves Above 10% Reserve 9,938,569 22% 18,907,884 51% Total Estimated Cash Reserves 14,374,502 $ 32% 22,583,999$ 61% Months of Cash 3.9 7.6
Water DistrictGeneral Fund
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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E
XECUTIVE SUMMARY (Continued)
P
roposed Budget Amendments – Tw o (2) Budget Amendments are proposed for $68,695 The FY 2022-23 First Quarter Budget Review includes two (2) items as proposed budget amendments totaling $68,695.
A complete discussion of the budget amendments is included on page 24 . The proposed budget amendments are included in the fund balance analyses where appropriate:
R
evenues and Expenditures through Septe mber 30, 2022 for the City’s main funds are summarized as follows:
General Other
FY 2022-23 1st Quarter Budget Requests Fund Funds Totals
1. Contract Inspection Services $ 50, 000 $ 0 50, 000$
2. Traffic Signal Head 0 18, 695 18,695 Total 1st Quarter Budget Amendments Requests 50,000$ 18,695$ 68,695$ General Fund
Amended
Budget September
% of Amend.
Received
Amended
Budget September
%
Expended
City Council 798,121$ 169,224$ 21%
City Manager 3,906,794 1,188,504 30%
Management Services 6,554,383 2,679,103 41% Economic Development 371,111 112,089 30% D.S.-Community Development 2,182,132 680,801 31% D.S.-Code Compliance 4,783,822 1,229,780 26% D.S.-Public Works (G.F.) 2,326,289 623,808 27% Police 20,613,786 5,086,481 25%
Total General Fund 44,295,907$ 5,003,284$ 11% 41,536,438$ 11,769,790$ 28% Community Development Block Grant 1,528,620 49,702 3% 1,438,687 19,144 1% Hesperia Housing Authority 121,416 71,000 58% 72,586 6,257 9% D.S.-Public Works 1,944 18,765 965% 3,977,636 909,374 23% Streets CIP Funds 48,420,798 1,806,898 4% 47,348,744 3,491,986 7% Other City Related Funds 3,012,355 260,281 9% 2,585,012 13,316 1% D.S.-Water Operating and Capital 28,788,988 5,880,135 20% 25,701,021 4,152,518 16% D.S.-Sewer Operating and Capital 6,099,444 1,352,667 22% 9,913,241 874,666 9% Fire District 8,036 37,537 367% 1,130,815 1,093,205 97% Sub -Total 132,277,508$ 14,480,269$ 11% 133,704,180$ 22,330,256$ 17% American Rescue Plan Act Grant 11,732,891 11,847,004 101% 0 0 n/a Total 144,010,399$ 26,327,273$ 18% 133,704,180$ 22,330,256$ 17% 2022-23 Revenue 2022-23 Expenditures
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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STATUS OF CITY GENERAL FUND 2022-23 BUDGET, BUDGET AMENDMENTS, AND RESERVES
2022-23 2022-23
Budget Revised Dollars Percent
RESOURCES
General Fund Operating Revenue 44,295,907$ 44,295,907$ 0$ 0% Transfers In
1. Fund 255 - AB 3229 COPS Grant 200,000 200,000 Total Transfers In 200,000 200,000
Budgeted Reserves 0 0
Total Budgeted Reserves 0$ 0$
Total General Fund Resources 44,495,907$ 44,495,907$ 0$ 0%
EXPENDITURES
Total General Fund Operating Expenses 41,748,438$ 41,736,438$ Transfers Out
1. Fund 210 - HFPD CalPERS 1,130,815 1,130,815
1,442,075 1,442,075
Total Transfers Out 2,572,890 2,572,890
Total General Fund Expenditures & Transfers Out 44,321,328$ 44,309,328$ (12,000)$ 0% First Quarter Budget Amendment Requested
1. Contract Inspection Services 0$ 50,000$ Total First Quarter Budget Amendments 0 50,000 Total Expenditures and Amendments 44,321,328$ 44,359,328$ 38,000$ 0% DIFFERENCE TOTAL RESOURCES/TOTAL EXPENDITURES 174,579$ 136,579$ (38,000)$ -22% Fund Balance
July 1 Beginning Balance 22,105,355$ 22,105,355$
Total Budgeted Reserves 0 0 Difference Total Resources/Total Expenditures 174,579 136,579 Estimated June 30 Ending Fund Balance 22,279,934$ 22,241,934$ (38,000)$ 0% Months of Cash to Pay Expenditures and Transfers Out
Beginning Cash July 01, 14,287,923$ 14,287,923$
Estimated Resources Less Budgeted Reserves 44,495,907 44,445,907 Estimated Expenditures (44,321,328) (44,359,328)
14,462,502$ 14,374,502$
Months of Cash to Pay Expenditures and Transfers Out 3.9 3.9 Estimated Cash Reserves Percentage 33% 32%
Estimated Ending Cash June 30,
Change
2. Fund 402 - 2012 Water Rights Acquisition Debt Service
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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S
TATUS OF WATER DISTRICT 2022-23 BUDGET, BUDGET AMENDMENTS, AND RESERVES 2022-23 2022-23
Resources Budget Revi sed Dollars Percent
Revenue
Water Operating and Capital 28,411,024$ 28, 411,024$ Sewer Operating and Capital 6,099,444 6, 099,444 Reclaimed Water Operations 377,964 377 ,964
Total Revenue 34,888,432 34, 888,432 0 0% Budgeted Reserves 3,815,097 3, 815,097
Total Water District Resources 38,703,529$ 38, 703,529$ 0$ 0% Expenditures by Program
Water Operating and Capital and Transfer Out 25,445,365$ 25, 445,365$ 0$ 0% Sewer Operating and Capital 9,913,241 9, 913,241 Reclaimed Water Operations 255,656 255 ,656
Total Water District Expenditures & Transfers Out 35,614,262$ 35, 614,262$ 0$ 0% Establishment of Reserve Balances
Permanent Water Rights $ 1,146,888 1,14 6,888$
Total Reserve Balances 1,146,888 1,14 6,888
Total Water Expenditures & Reserve Balance Funding $ 36,761,150 $ 36,761,150 Difference Total Resources/Total Expenditures 1,942,379$ 1, 942,379$ July 1 Beginning Balance 109,340,730$ 109 ,340,730$
Budgeted Reserves (3,815,097) (3 ,815,097)
Difference Resources/Expenditures 1,942,379 1, 942,379 Reserve Balances 1,146,888 1, 146,888
Estimated June 30 Ending Fund Balance 108,614,900$ 108 ,614,900$ Months of Cash to Pay Expenditures
Beginning Cash July 01, 23,309,829$ 23, 309,829$
Estimated Resources Less Budgeted Reserves 34,888,432 34, 888,432 Estimated Expenditures (35,614,262) (3 5,614,262)
22,583,999$ 22,5 83,999$
Months of Cash to Pay Expenditures and Transfers Out 7.6 7.6 Total Estimated Cash Reserves Percentage 63% 63%
Estimated Ending Cash June 30,
Change
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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ST
ATUS OF STREET MAINTENANCE FUND 2022-23 BUDGET, FUND BALANCE, AND RESERVES 2022-23 2022-23
RESOURCES Budget Revised D ollars Percent
Street Maintenance Operating Revenue 1,944$ 1,944$ 0$ 0% Transfers In
Fund 100 - General Fund 0$ 0$
Fund 204 - Measure I - Renewal 1,750,000 1,750, 000
Fund 205 - Gas Tax Fund 1,400,000 1,400, 000
Fund 206 - Gas Tax Swap 595,794 595,794
Total Transfers In 3,745,794 3,745, 794
Total Revenues 3,747,738 3,747, 738
Budgeted Reserves 229,898 229,898
First Quarter Budget Amendment Reserves 0 18,695 Total Street Maintenance Resources 3,977,636$ 3,996,331 $ EXPENDITURES 3,977,636$ 3,977,636 $ 0$ 0% First Quarter Budget Amendment Request
1. Traffic Signal Head 0 18,695
Total First Quarter Budget Amendments 0 18,695 Total Expenditures and Amendments 3,977,636$ 3,996,331 $ 18,695$ 0% DIFFERENCE RESOURCES/EXPENDITURES 0$ 0$ 0$ n/a Fund Balance
July 1 Beginning Balance 289,130$ 289,130$
Total Budgeted Reserves (229,898) (248, 593)
Difference Resources/Expenditures 0 0 Estimated June 30 Ending Balance 59,232$ 40,537$
Change
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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F
ISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW Overall – First quarter analysis reveals that $26.3 million or 1 8% percent of the total budgeted revenue has been collected. It should be noted that changes in the local state and national economic environments can impact each of these revenue sources and trends going forward; however, in this section, discussions will pertain to the revenue activity during the first quarter of Fiscal Year (FY) 2022-23.
G
eneral Fund revenue is trending as expected, with 11% of revenue received the first quarter of FY 2022 -23. Through September 2022, revenue received is $5,003,284 , which is $866,080 or 21% more than September 2021 YTD revenue of $4,137,204.
A
s a whole, the Water District is in a healthy position with 21% of revenue received the first quarter of FY 2022-23. This revenue source is being monitored as delinquent accounts are being applied to the tax roll to recapture the missing revenue.
S
taff will continue to monitor the FY 2022 -23 revenue and make any necessary recommendations for revisions during the Mid-Year Budget Review in February 202 3. The following pages will detail the current revenue collections for each fund.
September Change From
2022-23 2022-
23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
General Fund 44,295,907$ 5,003,284$ 11% 44,295,907$ 0$
Community Development Block Grant 1,528,620 49,702 3% 1,528,620 0 Hesperia Housing Authority 121,416 71,000 59% 121,416 0 Street Related Funds 48,422,742 1,825,663 4% 48,422,742 0 Other City Related Funds 3,012,355 260,281 9% 3,012,355 0 Water Operating 26,330,124 5,154,867 20% 26,330,124 0 Water Capital 2,075,000 639,000 31% 2,075,000 0 Water Reserves 383,864 86,269 23% 383,864 0 Total Water Operating, Capital, & Reserves 28,788,988 5,880,135 20% 28,788,988 0 Sewer Operating 5,539,344 1,153,242 21% 5,539,344 0 Sewer Capital 558,800 191,444 34% 558,800 0 Sewer Reserves 1,300 7,980 614% 1,300 0 Total Sewer Operating, Capital, & Reserves 6,099,444 1,352,667 22% 6,099,444 0 Water District 34,888,432 7,232,802 21% 34,888,432 0 Sub-total 132,277,508 14,480,269 11% 132,277,508 0
American Rescue Plan Act Grant 11,732,891 11,847,004 101% 11,732,891 0 Total All Funds 144,010,399$ 26,327,273$ 18% 144,010,399$ 0$
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)
General Fund Revenue Comments:
In total, General Fund is trending as expected for First Quarter. As demonstrated in the discussions to follow, there tends to be a lag of revenue collection at the beginning of the fiscal year. This is normal and much of the revenue, especially tax based, typically is received during October and November.
Sales and Use Tax – For the first quarter of FY 2022-23, the City received $1,066,935 for one (1) month (July 2022) of activity, which is 5% or $46,575 more than the $1,020,360 for the July 2021 activity collected September 2021.
Although the FY 2022-23 first remittance is ahead of FY 2021-22, Sales Tax will be monitored in the coming months as data is received. There is typically a two month delay from the month close to when the State reports to the City. For example, the second installment of $1,065,739 for the month of August 2022 was received in October 2022 and therefore, was not included as part of this first quarter report.
Vehicle License Fee (VLF) – This revenue is based on the City’s assessed valuation of the properties within the City.
As the assessed valuation changes from the prior year, this revenue changes by the same percentage. There is no revenue reported through September 2022, as the first installment of the VLF is expected to be received during January 2023.
Franchise Fees – The City receives f ranchise fees for Cable TV, Advance Disposal, Southwest Gas, Southern California Edison, and Water service providers within the City as “rent” for the use of streets and public right -of-way within our municipality. Revenue through September 2022 YTD total $62,500, which is the same amount received for September 2021 YTD. Please note that the majority of franchise fees are received in the second half of the fiscal year.
Transient Occupancy Tax (TOT) – TOT is a tax of 10% applied to the cost of hotel and other lodging stays of less than 30 days. Through September 2022, the City collected $282,761 , which is a decrease of $39,632 or 12% less than the September 2021 YTD of $322,393. This decrease is due to a reduction in hotel occupancy compared to the prior year.
September Change From
2022-23 2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
Sales and Use Tax 13,900,000$ 1,066,935$ 8% 13,900,000$ 0$ Vehicle License Fees 80,000 0 0% 80,000 0 Franchise Fees 4,090,296 62,500 2% 4,090,296 0 Total Top Three Revenues 18,070,296 1,129,435 6% 18,070,296 0 General & Administrative Recovery 3,085,930 771,483 25% 3,085,930 0 Transient Occupancy Tax 1,500,000 282,761 19% 1,500,000 0 Property Transfer Tax 400,000 70,081 18% 400,000 0 Secured Property Tax 1,033,459 0 0% 1,033,459 0 Business License 783,600 255,896 33% 783,600 0 Commercial Cannabis Tax 481,000 106,661 22% 481,000 0 Community Facilities District 2005-1 324,734 90,282 28% 324,734 0 Leased Water Rights 2,063,685 0 0% 2,063,685 0 Development Related Revenues
Planning 358,773 267,359 75% 358,773 0 Building & Safety 2,352,208 992,097 42% 2,352,208 0 Engineering 667,700 312,452 47% 667,700 0 Sub-Total Development Related Revenues 3,378,681 1,571,908 47% 3,378,681 0 Sub-Total Top 12 Revenue Sources 31,121,385 4,278,506 14% 31,121,385 0 All Other General Fund Revenues 13,174,522 724,778 6% 13,174,522 0 Total General Fund Revenues 44,295,907$ 5,003,284$ 11% 44,295,907$ 0$
GENERAL FUND REVENUES
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)
General Fund Revenue Comments (Continued):
Property Transfer Tax – This revenue is based on the change in property valuation upon change of ownership within the City. This revenue source is very volatile and is forecast to decrease due to a reduction in assessed values of local properties. As of September 30, 2022, YTD total of $70,081 reflects two receipts and is a 12% decrease over September 2021 YTD of $79,935, which also reflected two receipts. Staff will continue to monitor this revenue source and will provide an update at Mid-Year Budget Review.
Secured Property Tax – The first remittance from the County will be received in November 2022; therefore, there is no revenue to report through September 2022.
Business License – The City taxes businesses for conducting business within the City. FY 2022 -23 First Quarter collections of $255,896 represents a $46,002 or 22 % increase from the September 2021 collections of $209,894. The $255,896 in revenue through September 2022 is 33% of the FY 2022- 23 Budget amount of $783,600. While this revenue source can vary throughout the year based upon the timing of annual license renewal payments and new business license issuances, revenue collection is trending as expected.
Commercial Cannabis Tax – All commercial cannabis businesses operating within the City pay a 4% tax, on gross receipts from business operations. The September 2022 YTD receipts of $106,661 is 28% less than the September 2021 YTD of $148,116. The decrease is due to the revocation of 4 business licenses for non- compliance and a reduction in reported cannabis sales compared to the first quarter of last fiscal year. The City currently has fifteen ( 15) businesses operating within the City compared to the nineteen (19) in September 2021.
Community Facilities District 2005-1 – This special assessment district (generally west of Maple Avenue and south of Main Street), was formed to refinance the bonds of CFD 91-3 and assesses the properties within the district to repay the bonds. Part of the annual assessment includes a public safety portion to offset some of the costs that residential development places on the City’s public safety providers. The September 2022 YTD of $ 90,282 is being received as budgeted.
Leased Water Rights – The permanent water rights owned by the General Fund can be leased annually and th e lease revenue is used to pay for the 2012 Bonds, which financed the purchase of the water rights. The leasing of water rights will occur later during the fiscal year.
Development Related Revenue – This revenue source accounts primarily for development related fees such as Planning, Building and Safety , and Engineering. As of September 30, 2022, YTD actual receipts of $1,571,908 represents a 41% or $460, 930 increase from the prior year receipts of $1,110,978. This increase is mainly due to Building and Safety permit Fees and Engineering Inspection Fees collected related to the 1,226 ,589 industrial square foot Hesperia Commerce Center 1 (Building 2) , Pacific Communities tract homes and Sunset View Apartments . The budget anticipates issuing 240 new single-family residential (SFR) building permits. Through September 2022, the City has issued 30 permits, which is nine (9) less than September 2021. This revenue source is cyclical and can fluctuate based on the timing of payments for individual projects.
All Other General Fund Revenue – All Other General Fund Revenue accounts are $724,778 or 6% collected through September 30, 2022.
FY 2021-22 FY 2022-23
Division September 2021 September 2022 Amount Percentage Planning 248,994$ 267,359$ 18,365$ 7% Building & Safey 625,343 992,097 366,754 59% Engineering 236,641 312,452 75,811 32% Total 1,110,978$ 1,571,908$ 460,930$ 41% Change
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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F
ISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued) C
ommunity Development Block Grant Revenue Comments:
These revenues are grant reimbursements that promote economic and housing development and rehabilitation projects, with an emphasis on activities that create jobs, build or enhance infrastructure, and provide affordable housin g to Hesperia residents. This grant must be spent prior to submitting for reimbursements. The FY 20 22-23 Budget revenue estimates represent anticipated reimbursements to be claimed during the fiscal year. It is anticipated that the majority of the reimbursements will be received after December 2022.
C
DBG Neighborhood Stabilization Program (NSP) – This represents interest income and is typically received after the first quarter.
Al
l Other CDBG Revenues – This revenue includes CDBG Program income and interest revenue for the HOME Grant fund and the CDBG Revolving Loan fund. These revenues are more one -time in nature and are not received on a time schedule as other revenue. First Quarter revenue of $ 49,702 has been received, which is for loan repayment related to Housing Rehabilitation Loan Program and 1999 HOME repayment program.
H
esperia Housing Authority (HHA) Revenue Comments:
This program was developed to promote projects that improve the City’s housing stock and provide affordable h ousing opportunities. As of September 30, 2022, 58 % of revenue budgeted has been collected, which is attributed to interest income and changes in the market value on investments. The largest revenue source for the HHA are loan repayments, which typically are received later in the year.
September Change From
2022-23 2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
CDBG Administration Reimbursement 1,509,086$ 0$ 0% 1,509,086$ 0$
CDBG Neighborhood Stabilization Program 7,632 0 0% 7,632 0 Sub-Total 1,516,718 0 0% 1,516,718 0
All Other CDBG Revenues 11,902 49,702 418% 11,902 0 Total CDBG Revenues 1,528,620$ 49,702$ 3% 1,528,620$ 0$
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) REVENUE
September Change From
2022-23 2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
Interest Income 23,832$ 47,925$ 201% 23,832$ 0$
Loan Repayments 91,084 0 0% 91,084 0 Miscellaneous Income 3,000 0 0% 3,000 0
Sub-Total HHA Revenue 117,916 47,925 41% 117,916 0 VVEDA Housing Authority Revenue 3,500 23,075 659% 3,500 0 Total HHA Revenue 121,416$ 71,000$ 58% 121,416$ 0$
HESPERIA HOUSING AUTHORITY (HHA) REVENUE
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)
Street Related Funds Revenue Comments:
Measure I - Renewal – This fund is used to account for the renewed Measure I sales tax based on revenue generated from the ½ cent added tax on sales tax in San Bernardino County. For Hesperia , there are no distinctions for Arterial, Local, or Transit, and the revenue is remitted by San Bernardino County Transportation Authority (SBCTA) to the City.
Due to a lag in receiving the revenue, there are no remittances to report as of September 2022; however, the first installment received in October is $338,122, which is $39,160 more than the first installment of FY 2021-22.
Gas Tax – As of September 30, 2022 YTD, Gas Tax revenue primarily consists of one installment totaling $ 143,416, which is $31,198 more than the first installment received September 2021 of $112,218. This increase is an indication of higher fuel consumption along with higher fuel prices.
Gas Tax S wap – As of September 30, 2022 YTD, Gas Tax Swap revenue largely consists of one installment totaling $99,308, which is $3,937 higher than the first installment in FY 2021 -22. This increase is a reflection of increased fuel consumption and fuel prices.
Local Transportation – This revenue source is funded by the county ¼ cent sales tax. There is no revenue reported through September 2022. The annual payment of $872,556 from SBCTA was received in October 2022.
Gas Tax RMRA – This revenue source is State- funded and took effect November 2017 during FY 2017 -18. This revenue is used to repair and maintain roads, freeways, and bridges. SB 1, the Road Repair and Accountability Act of 2017, increased the gas tax by 12 cents and 20 cents for diesel, which is adjusted for inflation each July starting in July 2020. The vehicle registration fee also increased depending on the value of the vehicle. There is no revenue reported through September 2022, as the first payment is expected to be received during November 2022 and will be reported in the FY 2022-23 Mid-Year report.
Public Works-Street Maintenance – The estimated revenues are primarily interest earnings. In addition, this fund will occasionally receive miscellaneous reimbursem ents on an inconsistent basis, making comparisons to prior years irrelevant. The revenue received through September 2022 of $18,765 primar ily consists of proceeds from the sale of surplus equipment.
September Change From
2022-23 2022- 23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
204 Measure I - Renewal 3,598,916$ 96,189$ 3% 3,598,916$ 0$ 205 Gas Tax Fund 1,854,203 155,051 8% 1,854,203 0 206 Gas Tax Swap Fund 947,632 110,276 12% 947,632 0 207 Local Transportation Fund 877,402 28,468 3% 877,402 0 209 Gas Tax - RMRA 2,193,113 28,524 1% 2,193,113 0 254 AQMD Fund 61 296 486% 61 0 263 Public Works Street Maintenance Fund 1,944 18,765 965% 1,944 0 300 Development Impact Fee-Streets 148,890 13,203 9% 148,890 0 301 Development Impact Fee-Storm Drain 27,358 37,415 137% 27,358 0 306 Development Impact Fee 2018 - Streets 11,055,223 992,574 9% 11,055,223 0 307 Development Impact Fee 2018 - Drainage 1,032,902 101,991 10% 1,032,902 0 313 Development Impact Fee 2018 - A-04 Drainage 210,780 242,911 115% 210,780 0 Sub-Total DIF Streets & Storm Drain 12,475,153 1,388,094 11% 12,475,153 0 504 City Streets CIP 26,474,318 0 0% 26,474,318 0 Total Street Related Funds 48,422,742$ 1,825,663$ 4% 48,422,742$ 0$
STREET RELATED FUNDS REVENUE
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)
Street Related Funds Revenue Comments (Continued):
Development Impact Fees for Streets and Storm Drain/Drainage – Through September 202 2 YTD, the combined revenue received is $1,388,094, which is $85,983 or 7% more than September 2021 YTD revenue of $1,302,111. The primary reason for the increase between the two periods is due to the fees paid related to Single Family Residential and Multi-Family Residential properties. This revenue source varies each fiscal year depending on the completion of individual projects. Development Impact Fees are not due to the City until just prior to receiving a final approval on the project. These projects that pay their General Fund Building Permit fees at the beginning of the project can differ from the payment of their Development Impact Fees at the completion of the project by several months, or even span a fiscal year.
City Streets CIP – This fund tracks grant/reimbursement funded projects such as the Ranchero Road Improvements (7 th
Avenue to Mariposa Road), Walnut Street H -01 Retention Basin, the T raffic Signal at Main Street, Sultana Street/Timberlane Avenue and the Ranchero Aqueduct crossing. The bulk of the budgeted revenue is for the reimbursement of Ranchero Road with the expectation of a reimbursement to be received later in the fiscal year.
Other City Funds Revenue Comments: Revenue for other City funds are comprised of various grants, assessments, charges for services, intergovernmental, and other sources. Many of these funds only receive interest income during the fiscal year.
AB3229 Supplemental Law Fund – The passage of Senate Bill (SB) 89 allowed for the continued funding of the Supplemental Law Enforcement Funding (SLE SF). The City expects to receive $237,584 of SLESF funding , which is typically received later in the fiscal year. Through the first quarter 6% or $13,993 has been received.
Environmental Programs Grant – This fund tracks various grant reimbursements for various environmental events.
Disaster Preparedness Grant – As of September 30, 2022, $548 has been collected, which is attributed to interest income.
September Change From
2022-23 2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
105 Pension Obligation Trust 0$ 16,516$ n/a 0$ 0$ 255 AB3229 Supplemental Law Fund 237,584 13,993 6% 237,584 0 256 Environmental Programs Grant 63,525 2,901 5% 63,525 0 260 Disaster Preparedness Grant 117 548 468% 117 0 262 SB 1383 Local Assistance Grant 0 563 n/a 0 0 302 Development Impact Fee-Fire 25,181 17,887 71% 25,181 0 303 Development Impact Fee-Police 6,205 4 0% 6,205 0 304 Development Impact Fee-Public Services 16,537 12 0% 16,537 0 308 Development Impact Fee 2018 - Fire 1,315,090 74,590 6% 1,315,090 0 309 Development Impact Fee 2018 - City Hall 1,196,058 58,296 5% 1,196,058 0 310 Development Impact Fee 2018 - Animal Control 65,455 21,443 33% 65,455 0 311 Development Impact Fee 2018 - Records Storage 58,510 3,063 5% 58,510 0 312 Development Impact Fee 2018 - Police Facilities 22,573 1,102 5% 22,573 0 Sub-Total 302, 303, 304, 308, 309, 310, 311, and 312 2,705,609 176,397 7% 2,705,609 0 402 2012 Water Rights Acquisition 1,454 24,449 1682% 1,454 0 403 2013 Refunding Lease Revenue Bonds 4,066 24,914 613% 4,066 0 Sub-total 3,012,355 260,281 9% 3,012,355 0 261 American Rescue Plan Act Grant 11,732,891 11,847,004 101% 11,732,891 0 Total Other City Funds 14,745,246$ 12,107,285 $ 82% 14,745,246$ 0$
OTHER CITY FUNDS REVENUE
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)
Other City Funds Revenue Comments (Continued):
Development Impact Fees-Fire, Police, Public Services, City Hall, Animal Control, and Records Storage – The combined total of $176,397 for September 2022 YTD is $10,558 or 6% less than September 2021 YTD of $186,955.
American Rescue Plan Act (ARPA) Grant – Coronavirus State and Local Fiscal Recovery Funds – This revenue is the Coronavirus State and Local Fiscal Recovery Funds in which the City received a total amount of $23.4 million in two installments of $11.7 million. The first allocation was received in September 2021, and the second allocation in September 2022. This ARPA funding must be spent on eligible costs incurred during the period that began on March 3, 2021 and ending on December 31, 2024 . Eligible costs inclu de expenditures for necessary improvements to water infrastructure to improve access to clean drinking water, wastewater treatment infrastructure, projects that address the impacts of climate change, projects for managing and treating storm water or subsurface drainage water, facilitating water reuse, and securing publicly-owned treatment works.
Water District Revenue Comments:
The Hesperia Water District began applying liens to properties with outstanding water bills. Failure to pay within 60 days from the original bill due date, results in the Water District mailing the tenant and property owner a notice of lien. If the bill remains outstanding after an additional 10 days, the Water District will apply a lien on the property. During May of each year, all outstanding property liens will be converted to property tax liens. By doing so, the County will collect outstanding balances as part of property tax collections during the following year. The Water District is utilizing such liens in lieu of water disconnections and traditional collection services as the primary mechanism for collections.
September Change From
2022-23 2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
Water Operating Revenue
Water Sales 24,864,250$ 4,756,931$ 19% 24,864,250$ 0$ Interest Income 19,420 0 0% 19,420 0 Property Taxes 538,254 0 0% 538,254 0 Sub-Total 25,421,924 4,756,931 19% 25,421,924 0 All Other Water Operating Revenues 908,200 397,936 44% 908,200 0 Total Water Operating Revenues 26,330,124 5,154,867 20% 26,330,124 0 Capital Facilities Charges 2,000,000 639,000 32% 2,000,000 0 Grant Reimbursement 75,000 0 0% 75,000 0 Total Water Capital Revenue 2,075,000 639,000 31% 2,075,000 0 Reclaimed Water 377,964 46,713 12% 377,964 0 All Other Water Related Revenues 5,900 39,555 670% 5,900 0 Total Water Operating, Capital, & Related Revenues 28,788,988$ 5,880,135$ 20% 28,788,988$ 0$ Sewer Operating Revenue
Sewer Billing 5,301,042$ 981,599$ 19% 5,301,042$ 0$ All Other Sewer Operating Revenues 238,302 171,644 72% 238,302 0 Total Sewer Operating Revenue 5,539,344 1,153,242 21% 5,539,344 0 Sewer Connections 550,000 153,722 28% 550,000 0 All Other Sewer Capital Revenues 8,800 37,722 429% 8,800 0 Total Sewer Capital Revenue 558,800 191,444 34% 558,800 0 All Other Sewer Related Revenues 1,300 7,980 614% 1,300 0 Total Sewer Operating, Capital, & Related Revenues 6,099,444$ 1,352,667$ 22% 6,099,444$ 0$ Total Hesperia Water District Revenue 34,888,432$ 7,232,802$ 21% 34,888,432$ 0$
WATER DISTRICT REVENUE
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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FISCAL YEAR 2022-23 SEPTEMBER 30, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)
Water District Revenue Comments (Continued):
Water Sales – For the first quarter of FY 2022 -23, Hesperia Water District collected $4,756,931 of sales revenue or 19% of the budgeted amount. The revenue collected is $316,970 or 7% more than the amount collected through September 2021. The increase over the prior year is primarily due to the implementation of the final annual water rate change in December 2021 from the approved water rate study. Another factor for the revenue increase is the implementation of the Water District lien process. Property owners who receive the notice of lien are submitting payments on behalf of tenants to avoid a property lien and subsequently, having the balance applied to the tax roll
The collection of water sales also positively affected by the Low Income Household Water Assistance Program (LIHWAP). On December 2020, Congress funded the program to help low -income households pay down their outstanding residential water or wastewater bills. The LIHWAP provides financial assistance to Californians to help manage their residential water and wastewater utility costs to up to $2,000 per qualifying low -income household. The City started collecting these payments at the beginning of Fiscal Year 2022 -23 and as of September 30, 2022, collected $21,939.
Property Taxes – Property tax revenue is normally received from November 2022 through July 2023.
Other Water Operating Revenue – Through September 2022, $397,936 has been received, which is $170,081 or 75% more than September 2021 YTD of $ 227,855. This increase is mainly due to the increase of Water Inspection fees received this quarter.
Capital Facilities Surcharge – This revenue source consist of fees for new water meter installations based on new developments. Revenue through September 20 22 YTD is $639,000, which is $341,099 or 115% more than September 2021 YTD of $297,901. This increase can largely be attributed to the meter fees paid on 96 units for the new apartment complex development “The Villas at Hesperia” in the first quarter of FY 2022-23.
Sewer Billing – R evenue through September 202 2 is $ 981,599, which is $ 69,422 or 8% more than the revenue received in the First Quarter of 20 21-22. This increase is primarily attributed to the final 6% sewer rate increase from the 2017 rate study, which took effect in December 2021.
Sewer Connections revenue through September 2022 YTD is $ 153,722, which is $ 94,192 or 38% less than the $247,914 received through September 2021 YTD. The decrease between the two periods is a result of fewer customers connecting to sewer.
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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DEPARTMENT FY 2022-23 BUDGET EXPENDITURE STATUS SUMMARY Total City Expenditures – With the excep tion of the two (2) first quarter budget amendments totaling $68,695, the overall assessment of the City’s expenditures through the first quarter of the fiscal year is that expenditures are expected to stay within the FY 202 2-23 Amended Budget. Refer to page 24 for the detail pertaining to the requested budget amendments.
F
Y 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS The overall City Council Departmental expenditures are at 21% expended through September 2022. Contributing to the lower than anticipated City Council Division’s expended percentage , budgeted items are typically expended later during the fiscal year, such as $50,000 for the Community Assistance Program, annual memberships, and community outreach programs and events. The City Attorney Division is 23% expended, which reflects only the July 2022 invoices; however, $52,448 in billing for the month of August was received and paid for in October.
The City Manager Department, which consists of the City Manager Division and the Information Technology (IT) Division, is 30% expended; City Manager Division is 29% expended due to the annual City Manager Department portion of CalPERS unfunded liability payment. At the July 19, 2022 City Council Meeting, an amendment was approved to transfer $12,000 in dedicated funds for food recovery services related to SB 1383 Local Assistance Grant Program from Fund 100 to Fund 262. Additionally, IT is 31 % expended du e to the lump sum payments of annual software licenses during the first quarter.
September Amended
2022-23 2022-23 2022 YTD P ercent
Department Expenditure Summary Budget Amended Expenditures Expended City Council 798,121$ 798,121$ 169,224$ 21% City Manager 3,918,794 3,906, 794 1,188,504 30% Management Services 6,554,383 6,554, 383 2,679,103 41% Economic Development 1,882,384 1,882, 384 137,490 7% Development Services - Community Development 2,182,132 2,182, 132 680,801 31% Development Services - Code Compliance 4,783,822 4,783, 822 1,229,780 26% Development Services - Public Works 6,303,925 6,303,925 1,533,182 24% Streets Capital Improvement Project (CIP) Funds 47,348,744 47,348, 744 3,491,986 7% Other City Related Funds 2,474,381 2,585, 012 13,316 1% Development Services - Water 25,701,021 25,701, 021 4,152,518 16% Development Services - Sewer 9,913,241 9,913, 241 874,666 9% Police 20,613,786 20,613, 786 5,086,481 25% Fire District 1,130,815 1,130, 815 1,093,205 97% TOTAL CITY EXPENDITURES 133,605,549$ 133,704,180$ 22,330,256$ 17% September Amended
2022-23 2022-23 2022 YTD P ercent
City Council Budget Amended Expenditures Expended
100 100 City Council 348,121$ 348,121$ 66,637$ 19% 100 102 City Attorney 450,000 450,000 102,587 23% Total City Council 798,121$ 798,121$ 169,224$ 21% September Amended
2022-23 2022-23 2022 YTD Percent
City Manager Budget Amended Expenditures Expended
100 200 City Manager 1,573,041$ 1,561,041$ 449,751$ 29% 100 215 Information Technology 2,345,753 2,345,753 738,753 31% Total City Manager 3,918,794$ 3,906,794$ 1,188,504$ 30%
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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FY 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)
The Management Services Department is currently at 41 % expended. Similar to years in the past, the increased expenditures for Finance and Human Resources, at 37 % and 65 % respectively, are due to the lump sum payment to CalPERS for the unfunded accrued liability and annual insurance premiums that are due at the beginning of the fiscal year. Non-Departmental expenditures are 12% expended.
The Economic Development Department is 7% expended through the First Quarter. This department is made up of three (3) Divisions: Economic Development, Community Development Block Grant (CDBG), and Hesperia Housing Authority (HHA) funds.
The Economic Development Division performs the economic development functions for the City. General Fund funded, Economic Development is 30% expended, as with other areas, is due to the Division’s lump sum portion of the annual unfunded accrued liability assessed by CalPERS.
Community Development Block Grant Administration is 1% expended of the adopted budget. This fund administers the City’s CDBG program and related activities. FY 20 22-23 includes $ 1,354,600 in budgeted funds for two street improvement projects (FY 2019-20 and FY 2021- 22 CDBG Street Improvements). Through the First Quarter, $7,206 has been expended on these Capital Improvement Projects (CIP). The majority of CIP expenditures will be expended during the third and fourth quarters.
The Hesperia Housing Authority (HHA) funds oversee the affordable housing within the City. Through the end of September, the HHA funds are 9% expended, with the majority of the budgeted expenditures for affordable housing monitoring and annual financial audit reporting which occur later in the fiscal year.
The Community Devel opment Division is currently 3 1% expended through the First Quarter, with Planning 29% expended and Building & Safety 33% expended. This Division’s portion of the CalPERS unfunded liability payment is the reason for increased First Quarter expenditures . One budget amendment of $50,000 has been requested for contract inspection services.
September Amended
2022-23 2022-23 2022 YTD Percent
Management Services Budget Amended Expenditures Expended 100 220 Finance 2,103,642$ 2,103,642$ 776,208$ 37% 100 225 Human Resources/ Risk Mgmt. 2,578,569 2,578,569 1,677,850 65% 100 229 Non-Departmental 1,872,172 1,872,172 225,045 12% Total Management Services 6,554,383$ 6,554,383$ 2,679,103$ 41% September Amended
2022-23 2022-23 2022 YTD Percent
Economic Development Budget Amended Expenditures Expended 100 Economic Development 371,111$ 371,111$ 112,089$ 30% 251 CDBG Administration 1,438,687 1,438,687 19,144 1% 370 Hesperia Housing Authority 72,586 72,586 6,257 9% Total Economic Development 1,882,384$ 1,882,384$ 137,490$ 7% September Amended
2022-23 2022-23 2022 YT D Percent
D. S. - Community Development Budget Amended Expenditures Expended 100 3000 Planning 979,314$ 979,314$ 288,047$ 29% 100 3020 Building & Safety 1,202,818 1, 202,818 392,754 33% Total D. S. - Community Development 2,182,132$ 2, 182,132$ 680,801$ 31%
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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F
Y 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued) The Code Compliance Division, which is comprised of Code Enforcement and Animal Control , is 26% expended. As shown by the table, Code Enforcement and Animal Control are both 26% expended and are trending as expected during First Quarter.
Through the end of September, the Public Works Division is 24 % expended , which is as expec ted. Engineering , Building Maintenance, and Street Maintenance are trending as expected. Traffic at 18% expended, is lower than expected due to pending items such as the purchase of maintenance materials, traffic cabinet, guardrail replacement, as well as pending contractual items for engineering, street sweeping, and street striping. There is one budget amendment request in the amount of $18,695 for the purchase and installation of a left turn traffic signal head at the intersection of Mariposa Road and Ranchero Road.
Streets Capital Improvement expenditures will increase as progress continues on projects such as design of the Golf Course Trails, FY 2021-22 Street Improvement Project , Ranchero Road Improvements and Aqueduct Crossing, and other streets related projects. As these projects move forward, the percentage of actual expenses to budget will increase accordingly.
The classication of Other City Related Funds is largely comprised of the principal and interest payments for the 2012 Water Rights Acquisition and 2013 Refunding Lease Revenue Bonds , which payments will be reflected in the second quarter. An amendment for $19,401 was approved at the July 19, 2022 City Council Meeting to allocate funds for the CalRecycle Waste Tire Amnesty Grant Program, which is a reimbursable grant. In June 2022, the City received $136,396 in grant funds to be used for the SB 1383 Local Assistance Grant Program. Due to the timing of the grant award and budget adoption, the total grant award was not included in the budget; therefore staff received approval from the City Council to amend the budget by transferring $15,000 in dedicated funds for education and outreach and food recovery services from Fund 100 and Fund 256 to Fund 262, a newly created fund specifically for the state mandated program and for the appropriation of an additional $79,230 for record keeping and reporting software.
September Amended
2022-23 2022-23 2022 YTD P ercent
D. S. - Code Compliance Budget Amended Expenditures Expended 100 3010 Code Enforcement 2,467,764$ 2,467,764$ 638,483$ 26% 100 5000 Animal Control 2,316,058 2,316, 058 591,297 26% Total D. S. - Code Compliance 4,783,822$ 4,783, 822$ 1,229,780$ 26% September Amended
2022-23 2022-23 2022 YTD Percent
D. S. - Public Works B
udget Amended Expenditures Expended
100 3100 Engineering 967,725$ 967,725$ 241,173$ 25% 100 3110 Building Maintenance 1,358,564 1,358,564 382,635 28% 263 3150 Street Maintenance 2, 098,161 2,098,161 566,531 27% 263 3170 Traffic 1,879,475 1,879,475 342,843 18% Total D. S. - Public Works 6,303,925$ 6,303,925$ 1,533,182$ 24% September Amended
2022-23 2022-23 2022 YTD P ercent
Budget Amended Expenditures Expended
Streets Capital Improvement Project (CIP) Funds 47,348,744$ 47,348,744$ 3,491,986$ 7% September Amended
2022-23 2022-23 2022 YTD Percent
Budget Amended Expenditures Expended
Other City Related Funds 2,474,381$ 2,585,012$ 13,316$ 1%
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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FY 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)
Overall, the Water Operating and Capital funds are 1 6% expended through September 30, 20 22. The following narrative details the progression of each program.
• Source of Supply’s primary responsibility is to secure make-up water lease rights to remedy overproduction. During First Quarter, the District has not purchased permanent water rights. • At the end of the First Quarter, Production has expended 21 % of the budget. The primary reason expenditures are lower than expected is the timing of receiving electricity invoices. During First Quarter, only two months of summertime activity has been expended. The average summer month bill is approximately $0.2 million. • Distribution has utilized 30 % of its budget, which is primarily due to the purchase of a new backhoe during August 2022.
• Pipeline Maintenance is 23 % expended and will increase as material (pipe) is purchased for the pipeline replacement program, as identified in the Fiscal Year (FY) 2022-23 Budget. • Engineering is currently 19% expended and proceeding as expected. • Customer Service is 23% expended and as progress is made with Advanced Metering Infrastructure (AMI) program, expenditures will increase.
• Utility Billing is 37 % expended, which is due to the $144,000 write-offs of water service . It is anticipated that the account write-off expenditure will decrease in the coming years as the District has transitioned to a tax lien model for collection. The vast majority of the $144,000 represent uncollectible accounts with balances prior to July 1, 2021.
• Administration is a t 26% of the budget, which is primarily due to the Water District’s monthly general and administrative re-payment to the City for the annual indirect cost allocation. • Property Management is 19% expended for the First Quarter. Facility maintenance costs are expected to increase as maintenance projects are completed throughout the fiscal year. • Reclaimed Water Operations expenditures will increase later in the second half of the fiscal year when Debt Service payments are due.
September Amended
2022-23 2022-23 2022 YT D Percent
D.S. Water Operating & Capital Budget Amended Expenditures Expended 4010 Source of Supply 4,825,015$ 4,825,015$ 20,720$ 0% 4020 Production 4,596,134 4, 513,782 942,454 21% 4030 Distribution 1,847,563 1, 929,915 574,997 30% 4035 Pipeline Maintenance 1,000,419 982, 150 226,824 23% 4040 Engineering 1,019,812 1, 019,812 190,732 19% 4050 Customer Service 2,504,758 2, 504,758 566,344 23% 4060 Utility Billing 1,302,662 1, 302,662 485,155 37% 4070 Administration 4,064,384 4, 069,153 1,051,872 26% 4080 Property Management 459,618 473, 118 89,217 19% 720 Reclaimed Water Operations 255,656 255, 656 2,705 1% Total Water Operatiions 21,876,021 21, 876,021 4,151,020 19% 701 Water Capital 3,825,000 3, 825,000 1,498 0% 711 Sewer Capital 3,845,000 3,845, 000 5,557 0% Total D.S. Water Operating & Capital 29,546,021$ 29, 546,021$ 4,158,075$ 14%
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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FY 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)
D.S. Water Operating and Capital (Continued):
• Pending Projects in Water and Sewer Capital have $7.7 million allocated in capital funds and are 0% expended.
Expenditures will increase as projects such as the I -15 Corridor water and sewer , Recoating the exterior of water tank at Plant 23, Plant 14A & 25 Roof Replacement and Re pair, FY 2019-20 Water Service Line Relocation, Maple Avenue sewer line replacement, Township Wastewater Improvements, and Hesperia Wastewater Treatment Plant projects progress. The I -15 Corridor is out to bid currently, with an anticipated contract award in December 2022.
Additionally, the RFP has been released for design/build of the Hesperia Wastewater Treatment Plant.
Sewer Operating and Capital Funds overall are 9% expended. More detailed information within each program is detailed below.
• Sewer Operations expenditures are 12% expended and proceeding as planned. It should be noted that only one month of treatment fees ( 65.92 MG) for July 2022 has been received for Victor Valley Wastewater Reclamation Authority (VVWRA).
• Sewer Engineering is currently 16% expended and proceeding as planned. • Sewer Utility Billing is 27% expended, which is expected for the first three months of the fiscal year. • Sewer Administration is proceeding as planned with 2 6% expended and mainly due to the monthly general and administrative re-payment for the annual indirect cost allocation.
The Police Department budget is 25% expended, which is expected for the first three months of the fiscal year for the monthly law enforcement services . First Quarter year -to-date does not include the quarterly invoice, which is for overtime, grant expenses, etc. as the County of San Bernardino has not provided to the City.
During FY 2018- 19, the City transferred all Hesperia Fire Protection District (Fire District) assets and liabilities to San Bernardino County Fire, with the exception of the former personnel obligations, for which the Fire District will continue to function with dedicated funding. The Fire District is 97% expended, which is due to paying the annual contractual retirement obligations related to the former Fire District employees at the beginning of the fiscal year versus paying monthly. The $37,610 in savings will be used to retain the funds in a trust for the payment of former Fire District personnel obligation.
September Amended
2022-23 2022-23 2022 YTD Percent
D. S. - Sewer Operating Budget Amended Expenditures Expended 4200 Operations 4,809,563$ 4,809,563$ 569,173$ 12% 4240 Engineering 267,166 267,166 42,965 16% 4260 Utility Billing 243,465 243,465 64,986 27% 4270 Administration 748,047 748,047 191,985 26% Total D. S. - Sewer Operating 6,068,241$ 6,068,241$ 869,109$ 14% September Amended
2022-23 2022-23 2022 YT D Percent
Budget Amended Expenditures Expended
Police 20,613,786$ 20,613,786$ 5,086,481$ 25% September Amended
2022-23 2022-23 2022 YT D Percent
Budget Amended Expenditures Expended
Fire District 1,130,815$ 1,130,815$ 1,093,205$ 97%
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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FY 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS
September
DEPARTMENT AND PROGRAM 2022-23 2022-23 2022 YTD Percent EXPENDITURES SUMMARY Budget Amended Expenditures Expended City Council
100 100 City Council 348,121$ 348,121$ 66,637$ 19% 100 102 City Attorney 450,000 450,000 102,587 23% Total City Council 798,121$ 798,121$ 169,224$ 21% City Manager
100 200 City Manager 1,573,041$ 1,561,041$ 449,751$ 29% 100 215 Information Technology 2,345,753 2,345,753 738,753 31% Total City Manager 3,918,794$ 3,906,794$ 1,188,504$ 30% Management Services
100 220 Finance 2,103,642$ 2,103,642$ 776,208$ 37% 100 225 Human Resources/Risk Mgmt. 2,578,569 2,578,569 1,677,850 65% 100 229 Non-Departmental 1,872,172 1,872,172 225,045 12% Total Management Services 6,554,383$ 6,554,383$ 2,679,103$ 41% Economic Development
100 Economic Development 371,111$ 371,111$ 112,089$ 30% 251 CDBG Administration 1,438,687 1,438,687 19,144 1% 370 Hesperia Housing Authority 72,586 72,586 6,257 9% Total Economic Development 1,882,384$ 1,882,384$ 137,490$ 7% Development Services - Community Development
100 3000 Planning 979,314$ 979,314$ 288,047$ 29% 100 3020 Building & Safety 1,202,818 1,202,818 392,754 33% Total D. S. Community Development 2,182,132$ 2,182,132$ 680,801$ 31% Development Services - Code Compliance
100 3010 Code Enforcement 2,467,764$ 2,467,764$ 638,483$ 26% 100 5000 Animal Control 2,316,058 2,316,058 591,297 26% Total D. S. Code Compliance 4,783,822$ 4,783,822$ 1,229,780$ 26% Development Services - Public Works
100 3100 Engineering 967,725$ 967,725$ 241,173$ 25% 100 3110 Building Maintenance 1,358,564 1,358,564 382,635 28% 263 3150 Street Maintenance 2,098,161 2,098,161 566,531 27% 263 3170 Traffic 1,879,475 1,879,475 342,843 18% Total D.S. - Public Works 6,303,925$ 6,303, 925$ 1,533,182$ 24% Streets Capital Improvement Project (CIP)
100 Capital Improvement Program 200,000$ 200,000$ 0$ 0% 204 Measure I -2010 Renewal 1,652,933 1,652,933 18,445 1% 207 Local Transportation Fund 248,800 248,800 0 0% 209 - Gas Tax - RMRA 1,998,500 1,998,500 0 0% 300 Streets Development Impact Fee 203,600 203, 600 0 0% 301 Storm Drain Development Impact Fee 1,065,149 1,065,149 0 0% 306 Streets 2018 Development Impact Fee 12,895,201 12,895,201 1,356,821 11% 313 A-04 Drainage Development Impact Fee 952,000 952,000 0 0% 504 City Streets CIP 28,132,561 28,132,561 2,116,720 8% Total Streets CIP Funds 47,348,744$ 47,348,744$ 3,491,986$ 7%
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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FY 2022-23 TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)
September
DEPARTMENT AND PROGRAM 2022-23 2022-23 2022 YTD Percent EXPENDITURES SUMMARY Budget Amended Expenditures Expended Other City Related Funds
256 Beverage Recycling Grant 66,156$ 82,557$ 8,316$ 10% 262 SB 1383 Local Assistance Grant 0 94,230 5,000 5% 309 City Hall Facilities 2018 Development Impact Fee 85,000 85,000 0 0% 402 Water Rights Acquisition 1,442,075 1,442,075 0 0% 403 2013 Refunding Lease Rev Bonds 881,150 881,150 0 0% Total Other City Related Funds 2,474,381$ 2,585,012$ 13,316$ 1% Development Services - Water
Water Operating
4010 Source of Supply 4,825,015$ 4,825,015$ 20,720$ 0% 4020 Production 4,596,134 4,513,782 942,454 21% 4030 Distribution 1,847,563 1,929,915 574,997 30% 4035 Pipeline Maintenance 1,000,419 982,150 226,824 23% 4040 Engineering 1,019,812 1,019,812 190,732 19% 4050 Customer Service 2,504,758 2,504,758 566,344 23% 4060 Utility Billing 1,302,662 1,302,662 485,155 37% 4070 Administration 4,064,384 4,069,153 1,051,872 26% 4080 Property Management 459,618 473,118 89,217 19% Total Water Operating 21,620,365 21,620,365 4,148,315 19% 701 Water Capital Project 3,825,000 3,825,000 1,498 0% 720 Reclaimed Water Operations 255,656 255,656 2,705 1% Total D.S. Water Operating & Capital 25,701,021$ 25,701,021$ 4,152,518$ 16% Development Services - Sewer
Sewer Operating
4200 Operations 4,809,563$ 4,809,563$ 569,173$ 12% 4240 Engineering 267,166 267,166 42,965 16% 4260 Utility Billing 243,465 243,465 64,986 27% 4270 Administration 748,047 748,047 191,985 26% Total Sewer Operating 6,068,241 6,068,241 869,109 14% Sewer Capital 711 3,845,000 3,845,000 5,557 0% Total D.S. Sewer Operating & Capital 9,913,241$ 9,913,241$ 874,666$ 9% Police 100 510 20,613,786$ 20,613,786$ 5,086,481$ 25% Fire District 1,130,815$ 1,130,815$ 1,093,205$ 97%
Total City Expenditures 133,605,549$ 133,704,180$ 22,330,256$ 17%
2022-23 FIRST QUARTER BUDGET REVIEW REPORT
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PRO
POSED BUDGET AMENDMENTS – SUMMARY
The FY 2022-23 First Quarter Budget Review includes two (2) budget amendments totaling $68,695. The following listing categorizes the proposed budget amendments, with the following pages providing detail on each request:
PRO
POSED BUDGET AMENDMENTS – NARRATIVE
Development Services
Community Development Building & Safety – Contract Inspection Services $50 ,000 (100 -29-300-3020) – U
nanticipated
The Fiscal Year 2022 -23 O perating Budget included $50,000 for contract inspection services and through September 2022, $46,000 has been expensed. Additional contract inspection services are being requested t o e
nsure that inspections meet the City ’s timely standard turnaround due to high demand from the building community. The current turnaround time is five to ten business days. If the budget amendment is approved, the City can return to the one to two business day turnaround. P
ublic Works-Street Maintenance/Traffic – Traffic Signal Head $18,695 (263-29-310-3170) – New This request is for the installation of a left turn traffic signal head at the intersection of Mariposa Road and Ranchero R
oad. This is a highly used instersection for commuters and residents, where the north and south bound directions do not have a specific left turn on the traffic signal, which has caused numerous traffic collisions. Therefore, staff is requesting $18,695 for the purchase and installation of a traffic signal head.
General Other
FY 2022-23 1st Quarter Budget Requests Fund Funds Totals
1. Contract Inspection Services $ 50, 000 $ 0 50, 000$
2. Traffic Signal Head 0 18, 695 18,695 Total 1st Quarter Budget Amendments Requests 50,000$ 18,695$ 68,695$ General Other
REQ
UESTED: Fund Funds Totals
General Fund
50,000$ 0$ 50,000$
Total General Fund 50,000$ 0$ 50,000$ Development Services
Traffic Signal Head (Public Works-Street Maintenance/Traffic) 0$ 18,695$ 18,695$ Total Development Services 0$ 18,695$ 18,695$ Total City Expenditures 50,000$ 18,695$ 68,695$ Source of Funds:
General Fund - 100 50,000$
Street Maintenance - 263 18,695
Total Source of Funds 68,695$
Contract Inspection Services (Community Development-Building & Safety)
RESOLUTION NO. 2022-79
A RES
OLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA,
CALIFORNIA, APPROVING THE FISCAL YEAR 2022- 23 FIRST QUARTER BUDGET REVIEW AND AMENDING THE 2022-23 CITY OF HESPERIA
BUDGET TO FUND CERTAIN RELATED EXPENDITURES
WH
EREAS, the City Council of the City of Hesperia was presented the Fiscal Year (FY) 2022-23 First Quarter Budget Review report by staff; and WHE
REAS, the City Council of the City of Hesperia has reviewed the FY 2022-23 First Quarter Budget Review report information and analysis and has found it acceptable; and WHEREAS, the City Council of the City of Hesperia has reviewed and approves the budget amendments included in the FY 2022-23 First Quarter Budget Review report.
NOW
THEREFORE, BE IT RESOLVED BY THE CITY OF HESPERIA CITY COUNCIL AS FOLLOWS:
Sec
tion 1. That the recitals above are true and correct and adopted as findings.
Section 2. That the City Council of the City of Hesperia approves the FY 2022-23 First Quarter Budget Review report and budget amendments.
Section 3. That the City Council also approves the FY 2022-23 First Quarter Budget Review expenditure amendments by making appropriations for:
Sec
tion 4. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.
ADOPTED AND APPROVED this 6th day of December 2022.
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Brigit Bennington, Mayor
ATTEST:
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Erin Baum, Assistant City Clerk
Contract Inspection Services (100-29-300-3020) $50,000 Traffic Signal Head (263-29-310-3170) 18,695
Total $68,695