Hesperia City Council
December 20, 2022

Tuesday, December 20, 2022
Meeting Agenda
Closed Session - 5:30 PM

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HOUSING AUTHORITY

COMMUNITY DEVELOPMENT COMMISSION

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

B
rigit Bennington, Mayor 9700 Seventh Avenue
Bill Holland, Mayor Pro Tem Hesperia, CA 92345
Larry Bird, Council Member
Cameron Gregg, Council Member 760-947-1000
Rebekah Swanson, Council Member TD 760-947-1119
Nils Bentsen, City Manager www.cityofhesperia.us
Gateway to the High Desert

City of Hesperia
Public Access to City Council Meetings:

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

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

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

Re
mote Public Comment:

Public Comments Made By-Telephone Process
Public comments will be accepted in advance until 5:30 pm on the day of the scheduled meeting by calling and leaving a recorded message at (760) 947-1056. Comments received past 5:30 pm will not be included in the record. If you would like to comment remotely, please follow the protocols below:
• Cal l (760)947-1056 to leave a detailed message of your public comment.

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

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

• Each public comment received by voicemail will be played by a staff member for up to three (3) minutes for Consent Calendar/New Business items and up to five (5) minutes for Public Hearing items.

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

December 20, 2022City Council Meeting Agenda

REGULAR MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

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

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

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

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

CLOSED SESSION - 5:30 PM
Roll Call
Mayor Brigit Bennington
Mayor Pro Tem Larry Bird
Council Member Allison Lee
Council Member Cameron Gregg
Council Member Rebekah Swanson
Conference with Legal Counsel – Existing Litigation
Government Code Section 54956.9(d)1

1. Apex HM, LLC, et al. v. City of Hesperia (SBSC Case No. CIVSB2208845) Conference with Real Property Negotiators – Property Negotiations Government Code Section – 54956.8

1. Negotiating Parties: City of Hesperia and Mega Factors, Ltd.

Location: APN 0398-251-30-0000
Under Negotiation: Price and Terms
CALL TO ORDER - 6:30 PM
A. Invocation

December 20, 2022City Council Meeting Agenda
B. Pledge of Allegiance to the Flag
C. Roll Call
Mayor Brigit Bennington
Mayor Pro Tem Larry Bird
Council Member Allison Lee
Council Member Cameron Gregg
Council Member Rebekah Swanson
D. Agenda Revisions and Announcements by City Clerk
E. Closed Session Reports by City Attorney

ANNOUNCEMENTS/PRESENTATIONS

1. Presentation to Residential Christmas Decorating Contest Winner.

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

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

JOINT CONSENT CALENDAR

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, December 6, 2022.

Recommended Action:

It
is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, December 6, 2022.

Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2022-12-06Attachments:

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

December 20, 2022City Council Meeting Agenda
Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

Staff Person: Director of Administrative Services Casey Brooksher SR Warrant Run 12-20-2022
Attachment 1 - Warrant Run
Attachments:

3. Treasurer’s Cash Report for the unaudited period ended October 31, 2022 Recommended Action:

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

Staff Person: Director of Administrative Services Casey Brooksher SR Treasurer's Report 12-20-2022
Attachments 1-Treasurer's Report
Attachments:

4. Audited Hesperia Housing Authority Financial Statements for Fiscal Year Ended June 30, 2022 and Housing Successor SB 341 Report
Recommended Action:

It
is recommended that the City Council and the Hesperia Housing Authority (HHA) Board receive and file the audited Hesperia Housing Authority - Component Unit Financial Statements for the Fiscal Year Ended June 30 , 2022 and Housing Successor SB 341 Report.

Staff Person: Director of Administrative Services Casey Brooksher and Economic Development Manager Victor Knight
SR HHA Audited Statements 12-20-2022
Attachment 1 - Component Unit Financial Statements HHA
Attachment 2 - SB 341 Housing Successor Report
Attachments:

5. Annual 2023-24 Recognized Obligation Payment Schedule Recommended Action:

It
is recommended that the Successor Agency adopt Resolution No. SA 2022-02 approving the Annual 2023-24 Recognized Obligation Payment Schedule (ROPS), including the Successor Agency’s FY 2023-24 Administrative Budget and authorize staff to present the ROPS to the Oversight Board for its consideration and approval.

Staff Person: Director of Administrative Services Casey Brooksher SR Annual 2023-24 Recognized Obligation Payment Schedule 12-20-2022 Resolution SA 2022-02
Attachment 2 - Exhibit A Annual ROPS Schedule 23-24
Attachment 3 - Exhibit B Hesperia Admin Budget 23-24
Attachments:

December 20, 2022City Council Meeting Agenda

6. Fiscal Year 2021-2022 Annual Compliance Report for AB 1600 Development Impact Fees
Recommended Action:

It is recommended that the City Council receive and file the AB 1600 report on development fee activity that occurred during Fiscal Year (FY) 2021-2022.

Staff Person: Director of Administrative Services Casey Brooksher SR AB 1600 12-20-2022
Attachment 1 - FY 2021-22 AB 1600 Report
Attachments:

7. Receive and File the Local Agency Special Tax and Bond Accountability Act Report (SB 165) for the Fiscal Year Ended June 30, 2022 Recommended Action:

It
is recommended that the City Council receive and file the Communities Facilities District (CFD) 2005-1 (Belgate Development Restructuring) Local Agency Special Tax and Bond Accountability Act Report (SB 165) for the Fiscal Year Ended June 30, 2022.

Staff Person: Director of Administrative Services Casey Brooksher SR SB 165 Report 12-20-2022
Attachment 1 - CFD 2005-1 Report
Attachments:

8. Cancellation of January 3, 2023 and July 4, 2023 City Council and Subsidiary District Meetings
Recommended Action:

It is recommended that the City Council, the Board of Directors of the Successor to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, and Hesperia Water District, and the Board of Commissioners of the Hesperia Community Development Commission, cancel the regularly scheduled January 3, 2023 meeting for a lack of items, and the July 4, 2023 meeting, due to its falling on a legal Holiday.

Staff Person: Assistant City Clerk Erin Baum
SR Meeting Cancellations 12-20-2022Attachments:

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

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

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

9. Appeal to the City Council (APP22-00002); Applicant Pacific Communities Builder; APNs: 3046-011-06

December 20, 2022City Council Meeting Agenda
Recommended Action:

It
is recommended that the City Council adopt Resolution No. 2022-81, denying appeal APP22-00002 and upholding the Planning Commission and Development Review Committee (DRC) denial of a second extension of time for Tentative Tract No. 16505 (TTE22-00003).

Staff Person: Senior Planner Ryan Leonard
SR Appeal to the City Council (APP22-00002) 12-20-2022
Resolution 2022-81
Attachment 2- Planning Commission Staff Report with Attachments Attachments:

10. Appeal to the City Council (APP22-00003); Applicant Pacific Communities Builder; APNs: 3046-011-12
Recommended Action:

It is recommended that the City Council adopt Resolution No. 2022-82, denying appeal APP22-00003 and upholding the Planning Commission and Development Review Committee (DRC) denial of a second extension of time for Tentative Tract No. 15033 (TTE22-00004).

Staff Person: Senior Planner Ryan Leonard
SR Appeal to the City Council (APP22-00003) 12-20-2022
Resolution 2022-82
Attachment 2- Planning Commission Staff Report with Attachments Attachments:

11. Appeal to the City Council (APP22-00004); Applicant Pacific Communities Builder; APNs: 0405-052-03 & 27 thru 30
Recommended Action:

It is recommended that the City Council adopt Resolution No. 2022-83, denying appeal APP22-00004 and upholding the Planning Commission and Development Review Committee (DRC) denial of a third extension of time for Tentative Tract No. 17655 (TTE22-00005).

Staff Person: Senior Planner Ryan Leonard
SR Appeal to the City Council (APP22-00004) 12-20-2022
Resolution 2022-83
Attachment 2- Planning Commission Staff Report with Attachments Attachments:

12. Appeal to the City Council (APP22-00005); Applicant NV Hesperia Investors & Dayco Funding Corporation; APNs: 0405-261-15 thru 18 & 27 thru 30) Recommended Action:

It is recommended that the City Council adopt Resolution No. 2022-84, denying appeal APP22-00005 and upholding the Planning Commission and Development Review Committee (DRC) denial of a third extension of time for Tentative Tract No. 17916 (TTE22-00006).

Staff Person: Senior Planner Ryan Leonard

December 20, 2022City Council Meeting Agenda
SR Appeal to the City Council (APP22-00005) 12-20-2022
Resolution 2022-84
Attachment 2- Planning Commission Staff Report with Attachments Attachments:

13. Consider Adoption of Resolution of Necessity to Acquire Property located at Buckthorn
Avenue, north of the Hesperia Country Club and Golf Course in Hesperia, California, Assessor Parcel Number 0398-251-30-0000 Recommended Action:
(1) That the City Council hold a hearing on the proposed Resolution of Necessity; and (2) adopt the Resolution of Necessity authorizing the commencement of eminent domain action to acquire the property located at Buckthorn Avenue, north of the Hesperia Country Club and Golf Course in Hesperia, California, APN 0398-251-30-0000 (“Property”) (plat map attached as Attachment 1).

Staff Person: City Attorney Pam K. Lee
SR Resolution of Necessity to Acquire Property 12-20-2022 Attachment 1 - Plat Map
Resolution 2022-85
Attachments:

14. Consider Adoption of Resolution of Necessity to Acquire Property located North of
Yucca Terrace Drive abutting the California Aqueduct in Hesperia, California 92344, APN 3064-461-03-0-000
Recommended Action:
(1) That the City Council hold a hearing on the proposed Resolution of Necessity and (2) adopt the Resolution of Necessity authorizing the commencement of eminent domain action to acquire the property located North of Yucca Terrace Drive abutting the California Aqueduct in Hesperia, California 92344, APN 3064-461-03-0-000 (“Property”).

Staff Person: City Attorney Pam K. Lee
SR Resolution of Necessity to Acquire Property 12-20-2022 Attachment 1 - Plat Map
Resolution 2022-86
Attachments:

NEW BUSINESS

15. City Council Appointments to Outside Agencies
Recommended Action:

It
is recommended that the City Council follow past practice and appoint liaisons (both primary and alternate) to various outside agencies for a one-year period to commence in January 2023.

Staff Person: Director of Government Services/City Clerk Melinda Sayre

December 20, 2022City Council Meeting Agenda
SR City Council Appointments to Outside Agencies 12-20-2022 Attachment 1 - 2022 Appointment Summary
Attachments:

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

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

ADJOURNMENT
I, Erin Baum, Assistant City Clerk of the City of Hesperia, California do hereby certify that I caused to be posted the foregoing agenda on Thursday, December 15, 2022 at 5:30 p.m. pursuant to California Government Code §54954.2.
_____________________________
Erin Baum,
Assistant City Clerk
Documents produced by the City and distributed less than 72 hours prior to the meeting regarding items on the agenda will be made available in the City Clerk's Office during normal business hours.

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City of Hesperia
City of Hesperia
Meeting Minutes - Draft
City Council
Tuesday, December 6, 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, Council Member Gregg Council Member Lee and Council M
ember Bennington
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

Present: 5 - Council Member Bird, Council Member Swanson, Council Member Gregg Council Member Holland and Co
uncil Member Bennington
D. A genda Revisions and Announcements by City Clerk
None
E.

Closed Session Reports by City Attorney
No reportable action.

ANNOUNCEMENTS/PRESENTATIONS

1. Presentation to outgoing Mayor Brigit Bennington by Mayor Pro Tem Holland.

City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345

City of Hesperia

OATH OF OFFICE FOR NEWLY ELECTED COUNCIL MEMBERS
The Oath of Office was administered to incoming Council Members Brigit Bennington, Cameron Gregg, and Allison Lee.

CALL TO ORDER NEWLY ELECTED COUNCIL MEMBERS
Roll Call

Present: 5 - Council Member Bird, Council Member Swanson, Council Member Gregg Council Member Lee and Council M
ember Bennington

COUNCIL/BOARD REORGANIZATION

1. Election of Officers:

A. Selection of the Ma
yor/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).

Sponsors: Director of Government Services/City Clerk Melinda Sayre A motion was made by Bird, seconded by Swanson, that Council Member Bennington be elected Mayor. The motion carried by the following vote:

Aye: 5 - Bird, Swanson, Gregg, Mayor Bennington and Lee Nay: 0
A motion was made by Gregg, seconded by Swanson, that Council Member Swanson be elected Mayor
Pro Tem:

A substitute motion was made by Mayor Bennington, seconded by Lee, that Council Member Bird be elected Mayor Pro Tem. The motion carried by the following vote:

Aye: 3 - Bird, Bennington and Lee
Nay: 1 - Gregg
Abstain: 1 - Swanson
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Bob Nelson commented on speaking limits.

Daniel Krist commented on community issues.

Kim Jones commented on community issues.

John David Reynolds commented on community issues..

JOINT CONSENT CALENDAR
A motion was made by Gregg, seconded by Bird, that the Joint Consent Calendar be approved.

The motion carried by the following vote:

Aye: 5 - Bird, Swanson, Gregg, Bennington and Lee

City of Hesperia
Nay: 0

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, November 15, 2022.

Recommended Action:

It is recommended that the City Council approve the Draft Minutes from the Regular Meeting held
Tuesday, November 15, 2022.

Sponsors: Assistant Cit
y Clerk Erin Baum

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

It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Succes sor Agency to the Hesperia Co
mmunity Redevelopment Agency, Hesperia Housing Authority, Comm unity Developm
ent Commission, and Water District.

Sponsors: Director of Administrative Services Casey Brooksher

3. Approve and Accept Construction of FY 2019-20 CDBG Street Improvements - Phase II and Approve Increases to the Original C
ontract Amount
Recommended Action:

It is recommended that the City Council:

1. Authorize the C ity Manager
to accept the work constructed under FY 2019-20 CDBG Street Im
provements - 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 Im provement 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.

Sponsors: Assistant City Manager Rachel Molina

4. Vehicle Procurement for Streets Maintenance Program - One Super-Dut yTruck Recommend
ed 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 Sup
er-Duty truck, award the bid to Fairview Ford in the not-to-exceed amount of $50,114.

Sponsors: Director of Publ
ic Works Jeremy McDonald

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.

Sponsors: Director of Public Works Jeremy McDonald

City of Hesperia

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 R
ecovery as a Service(DRaaS) from Xentegra, for a not-to-exceed amount of $49,696.

Sponsors: Director of Adm
inistrative Services Casey Brooksher

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 re
lated following resolution, amending the FY 2022-23 Budget for the City of Hesperia be ap
proved:

1. City of Hesperia Resolution No. 2022-79
Sponsors: Director of Administrative Services Casey Brooksher A motion was made by Bird, seconded by Swanson, that Resolution 2022-79 be approved. The motion carried by the following vote:

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

COUNCIL COMMITTEE REPORTS AND COMMENTS
Council Member Swanson commented on the Tree Lighting ceremony, recent SBCTA meeting, and wished everyone a wonderful Christmas/Hanukkah.

Council Member Gregg commented on Thanksgiving, the Tree Lighting ceremony, the City's Christmas decoration contest submissions, requested truck parking be brought back in February, and welcomed new council member Allison Lee
Council Member Lee commented on attendance at a Fire station open house, the Tree Lighting, thanked Bill Holland, expressed her gratefulness, and thanked City staff Mayor Pro Tem Bird welcomed Councilmember Lee, thanked Bill Holland for his service and Council Member Bennington for her service as mayor. He commented on the Tree Lighting ceremony, Thanksgiving, upcoming Christmas season, upcoming VVTA and VVWRA meetings and, thanked the Hearn family.

Mayor Bennington commented on attendance at a Fire Station open house, the Tree Lighting ceremony, upcoming League of CA cities meeting, Thanksgiving, recognized Jon Dunbar in the audience, her mom's 86 birthday next week, thanked City Staff, reminded people to adopt from shelter, thanked HPRD for the Christmas tree in Civic Park and recognized the passing of long time Hesperia resident Marion Stone.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
None

ADJOURNMENT

City of Hesperia
The meeting was adjourned in honor of Marion Stone at 7:24 p.m. _____________________________
Erin Baum,
Assistant City Clerk

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City of Hesperia

STAFF REPORT

DATE: December 20, 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 November 5 , 2022 through November 18, 2022.

ATTACHMENT(S)

1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $746,700.30 $283,325.75 $0.00 $1,030,026.05 Successor Agency 0.00 0.00 0.00 0.00
Housing Authority 0.00 178.95 0.00 178.95
Community Development Commission 0.00 0.00 0.00 0.00
Water 1,481,521.10 108,922.91 0.00 1,590,444.01
Totals $2,228,221.40 $392,427.61 $0.00 $2,620,649.01

YEAR-TO PRIOR FY YTD

W/E W/E WARRANT DATE DATE
FUND # FUND NAME 11/11/2022 11/18/2022 TOTALS Wires TOTALS * TOTALS Accounts Payable
100 GENERAL 76,479.20$ 85,417.94$ 161,897.14$ -$ 12,145,460.90$ 11,509,422.08$ 200 HESPERIA FIRE DISTRICT -$ -$ -$ -$ -$ -$
204 MEASURE I - RENEWAL -$ -$ -$ -$ 173,443.94$ 80,647.86$ 207 LOCAL TRANSPORT-SB 325 26,505.00$ -$ 26,505.00$ -$ 27,651.68$ 25,000.00$ 209 GAS TAX-RMRA -$ -$ -$ -$ -$ 67,468.24$
210 HFPD (PERS) -$ -$ -$ -$ 1,093,204.87$ 1,007,746.00$ 251 CDBG 1,676.54$ -$ 1,676.54$ -$ 48,656.73$ 482,907.92$ 254 AB2766 - TRANSIT -$ -$ -$ -$ -$ -$
256 ENVIRONMENTAL PROGRAMS GRANT -$ 264.00$ 264.00$ -$ 17,005.18$ 19,517.99$ 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 50,451.75$ 16,231.51$ 66,683.26$ -$ 927,541.30$ 842,628.02$ 300 DEV. IMPACT FEES - STREET -$ -$ -$ -$ 30,261.18$ 32,543.33$ 301 DEV. IMPACT FEES - STORM DRAIN -$ -$ -$ -$ 17,460.50$ 34,064.50$ 302 DEV. IMPACT FEES - FIRE -$ -$ -$ -$ -$ -$
303 D
EV. IMPACT FEES - POLICE -$ -$ -$ -$ -$ 23,330.00$ 304 DEV. IMPACT FEES - PUBLIC WKS. -$ -$ -$ -$ -$ -$ 306 DEV. IMPACT FEES - 2018-STREETS -$ 507.83$ 507.83$ -$ 1,983,485.83$ 44,755.11$ 312 DIF 2018-POLICE FACILITIES -$ -$ -$ -$ -$ 6,888.17$ 313 DIF A-04 DRAINAGE -$ 3,000.00$ 3,000.00$ -$ 3,000.00$ 960,099.00$ 396 DEVELOPMENT IMPACT -$ -$ -$ -$ -$ -$
399 FEM
A-1203-DR (DISASTER) -$ -$ -$ -$ -$ -$
400 2004 STREETS -$ -$ -$ -$ -$ -$
401 CITY DEBT SERVICES -$ -$ -$ -$ -$ -$
402 WATER RIGHTS ACQUISITION 2,000.00$ -$ 2,000.00$ -$ 1,092,323.17$ 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 -$ -$ -$ -$ 4,516,234.14$ 329,495.17$ 509 CITY FACILITIES CIP -$ -$ -$ -$ -$ -$
800 EMPLOYEE BENEFITS 295,842.72$ 87,864.11$ 383,706.83$ -$ 3,564,142.38$ 3,016,101.86$ 801 TRUST/AGENCY 65,828.00$ 3,379.20$ 69,207.20$ -$ 677,248.44$ 1,413,642.82$ 802 AD 91-1 AGENCY -$ -$ -$ -$ -$ -$
804 T
RUST-INTEREST BEARING -$ 31,252.50$ 31,252.50$ -$ 58,917.50$ 26,919.00$ 807 CFD 2005-1 -$ -$ -$ -$ 969,811.58$ 929,132.65$ 808 HFPD (TRANSITION) -$ -$ -$ -$ 317,384.59$ 369,875.18$ 815 PLAN REVIEW TRUST - FRONTIER -$ -$ -$ -$ 6,584.08$ -$ CITY 518,783.21$ 227,917.09$ 746, 700.30$ -$ 28, 330,873.61$ 22, 929,492.85$ 163 REDEVELOP OBLIG RETIREMENT-2018 -$ -$ -$ -$ 7,746,169.98$ 7,944,168.22$ SUCCESSOR AGENCY -$ -$ -$ -$ 7, 746,169.98$ 7, 944,168.22$ 370 HOUSING AUTHORITY -$ -$ -$ -$ 5,034.77$ 7,344.63$ HOUSING AUTHORITY -$ -$ -$ -$ 5, 034.77$ 7, 344.63$ 170 COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ 700 WATER OPERATING 481,176.67$ 279,413.78$ 760,590.45$ -$ 3,983,769.99$ 4,331,119.44$ 701 WATER CAPITAL -$ -$ -$ -$ 8,087.00$ 22,438.15$ 710 SEWER OPERATING 3,049.65$ 675,452.93$ 678,502.58$ -$ 2,042,385.89$ 1,922,929.06$ 711 SEWER CAPITAL -$ 42,301.45$ 42,301.45$ -$ 191,215.57$ 149,686.37$ 713 SEWER CAPITAL REHAB AND REPLACE -$ -$ -$ -$ -$ -$ 720 RECLAIMED WATER OPERATIONS 126.62$ -$ 126.62$ -$ 11,265.71$ 1,154.82$ WATER 484,352.94$ 997,168.16$ 1, 481,521.10$ -$ 6, 236,724.16$ 6, 427,327.84$ ACCOUNTS PAYABLE TOTAL 1,003,136.15$ 1,225,085.25$ 2, 228,221.40$ -$ 42, 318,802.52$ 37, 308,333.54$ REG. PAYROLL
City 283,325.75$ -$ 283,325.75$ -$ 2,741,055.92$ 2,620,917.09$ Housing Authority 178.95$ -$ 178.95$ -$ 1,823.11$ 745.24$ Water 108,922.91$ -$ 108,922.91$ -$ 1,116,790.28$ 1,128,196.11$ PAYROLL TOTAL 392,427.61$ -$ 392, 427.61$ -$ 3, 859,669.31$ 3, 749,858.44$ City of Hesperia

WARRANT RUNS
11/05/2022-11/18/2022
*No payments were issued on July 1, 2022.

Attachment 1

City of Hesperia

STAFF REPORT

DATE: December 20, 2022
TO: Mayor and Council Members
City Council, Serving as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Commissioners, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Water District

FROM: Nils Bentsen, City Manager

BY: Casey Brooksher, Director of Administrative Services Anne Duke, Deputy Finance Director
Jacob Weatherbie, Accountant

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

RECOMMENDED ACTION

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

BACKGROUND

This report is presented to the City Council pursuant to Government Code Se ction 53646 (b) setting forth the City’s investment portfolio.

ISSUES/ANALYSIS

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

FISCAL IMPACT

These reports reflect unaudited cash balances as of October 31, 2022.

ALTERNATIVE(S)

Provide alternative direction to staff.

ATTACHMENT(S)

1. City of Hesperia Investment Report

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

3. Hesperia Housing Authority Investment Report

4. Community Development Commission Investment Report

5. Hesperia Water District Investment Report

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
December 20, 2022

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
December 20, 2022

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

Interest
Rate
City of Hesperia
Investment Report
Unaudited
October 3t 2022
Date of Date of
Purchase Maturity
Par Value
atMatu.ri!Y
Book
Value
Market
Value
Local Agency Investment Funds State of Calif. 1.772% 31-Oct-22 Demand $ 77,178,909.13 77,178,909.13 77,178,909.13 Local Bank Checking Accounts -~- U.S. Bank n/a 31-Oct-~ emand 4,404,604.40 4,404,604.40 4,404,604.40 Total Unaudited Investments under the direction of the City $ 81,583,513.53 $ 81,583,513.53 $ 81,583,513.53 der the direction of fi ·---· -:"J-••·-·
2012 Lease Revenue Bonds US Bank 0.045% 31-Oct-22 Demand 658.14 658.14 2012 Lease Revenue Bonds US Bank 0.015% 31-Oct-22 Demand 6,791.19 6,791.19 2012 Lease Revenue Bonds US Bank 0.189% 31-Oct-22 Demand 1,454,869.88 1,454,869.88 2012 Lease Revenue Bonds US Bank 0.000% 31-Oct-22 Demand 0.31 0.31 2013 Refunding Lease Revenue Bonds US Bank 0.100% 31-0ct-22 Demand 708.69 708.69 2013 RefundinCI Lease Revenue Bonds US Bank 0.008% 31-Oct-22 Demand 5,473.10 5,473.10 2013 Refunding Lease Revenue Bonds US Bank 0.189% 31-Oct-22 Demand 1,151,918.50 1,151,918.50 2013 Refunding Lease Revenue Bonds US Bank 0.000% 31-Oct-22 Demand 0.31 0.31 2014 CFO 2005-1 Refund_!!!g ___ US Bank 0.188% 31-Oct-22 Demand_ 4,211.00 ~
4,211.00 -2014 CFO 2005-1 Refunding US Bank 0.183% 31-Oct-22 Demand 697.07 697.07 2014 CFD 2005-1 Refunding US Bank 0.188% 31-Oct-22 Demand 1,433,342.55 1,433,342.55 2014 CFO 2005-1 Refunding US Bank 0.188% 31-0ct-22 Demand 24,046.49 24,046.49 ~ osits - Workers' Comp PERMA n/a 31-Oct-22 n/a 542,901.06 542,901.06 Sully Miller Retention - Ranchero US Bank 0.000% 31-0ct-22 n/a 1.01 1.01 Total Unaudited Investments under the direction of fiscal agents $ 4,625,619.30 4,625,619.30 Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.

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

City.xlsx
658.14
6,791.19
1,454,869.88

0.31 708.69
5,473.10
1,151,918.50

0.31 4,211.00
697.07
1,433,342.55
24,046.49
542,901.06

1.01 4,625,619.30
ATTACHMENT 1
Account
Description
2012-Water Rights Revenue Fund
2012 - Water Rights Interest Fund
2012 - Water Rights Reserve Fund
2012 - Water Rights Surplus Revenue Fund
2005 Civic Plaza - Revenue Fund
2005 Civic Plaza - Interest Fund
2005 Civic Plaza - Reserve Fund
2005 Civic Plaza - Surplus Rev Fund
2014 CFO 05-1 - S~ecial Tax Fund
2014 CFO 05-1 - Bond Fund
2014 CFO 05-1 - Reserve Fund
2014 CFO 05-1 Administrative Expense Bonds
GL 1352
Ranchero Road - Escrow Account

Successor Agency to the Redevelopment Agency
Investment Report
Unaudited
October 3 t 2022
Issuer/ Interest Date of Date of Par Value Book
Type of Investment Institution Rate Purchase Maturity at Maturity Value Investments under the direction of the City:

Local Agency Investment Funds State of Calif. 1.772% 31-Oct-22 Demand $ 245,488.02 I $ 245,488.02 Local Bank Checking Accounts U.S. Bank n/a 31-Oct-22 Demand 14,010.01 14,010.01 Total Unaudited Investments under the direction of the City $ 259,498.03 $ 259,498.03 $ Investments under the direction of fiscal agents:
~
Refunding Bonds US~B-an_k ____ O-.O-O-O'¾-o--31--0ct-22 Dem Refunding Bonds __ US Bank 0.185% 31-Oct-22 Dem
2018 Refunding Bonds US Bank 0.000% 31-Oct-22 . Dem
--
and_ 0.03 0.03 -and 4,031.86 4,031.86
and 1.00 1.00
Total Unaudited Investments under the direction of fiscal agents $ 4,032.89 $ 4,032.89 $ Please Note: All market value data is provided courtesy of the City's fiscal agent US Bank.

The 2018 Refunding Bonds are supported by a $9,799,443.76 bond insurance policy.

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

Successor-RDA.xlsx
ATTACHMENT 2
Market Account
Value Description
245,488.02
14,010.01
259,498.03
-0.03 2018A & 20188 - Debt Service AccounI
4,031.86 2018A & 2018B - Interest Account

1.00 2018A & 20188 - Reserve Account
4,032.89

T~ e of Investment
Hesperia Housing Authority
Investment Report
Unaudited
October 31:l 2022
Issuer/
Institution
Interest Date of Date of
Rate Purchase Maturity
Investments under the direction of the City_:

Local Agency Investment Funds State of California 1.772% 31-Oct-22 Demand Local Bank Checking Accounts U.S. Bank n/a 31-Oct-22 Demand Total Unaudited Investments under the direction of the City --$
Par Value
at Maturity
4,931,873.82 -
281,462.30
ATTACHMENT 3
Book
Value
4,931,873.82 I
2s1,462.3o I
Market
Value
--
4,931,873.82
281,462.30
$ 5,213,336.12 $ 5,213,336.12 $ 5,213,336.12
I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively . . ~~~ ....

Vlfgm1a Villasenor, Senior Accountant
Housing Authority.xlsx

TY.Qe of Investment
Local Agency Investment Funds
Local Bank Checking Accounts
~
Hesperia Community Development Commission
Investment Report
Unaudited
Issuer/
Institution
-
State of California
U.S. Bank -
October 31:l 2022
'-
Interest
Rate

1.772%
n/a
..

Date of Date of
Purchase Maturity
31-0ct-22 Demand
31-0ct-22 Demand
'-
$
Par Value
at Maturity
(568,242.85)
(32,429.65)
ATTACHMENT 4
Book
Value
(568,242.85)
(32,429.65)
Market
Value
(568,242.85)
(32,429.65)
Total Unaudited Investments under the direction of the City $ {600,672.50) $ (600,672.50) $ {600,672.50) I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively.

Virginla Villasenor, Senior Accountant
Community Develop.xlsx

TYim..Qflnvestm_eni
Issuer/
Institution
Hesperia Water District
Investment Report
Unaudited
October 31:a 2022
Interest Date of Date of
Rate Purchase Maturity
Par Value
at Maturi!Y
Investments under the direction of the CL _ :.....=...:.__::.:__:_::........:;...:~ -----~--~---~ Local Agency Investment Funds State of California 1.772% 31-Oct-22 Demand $ 30.582.831.61 I Local Bank Checking Accounts U.S. Bank n/a 31-Oct-22 Demand 1,745,363.81 Book
Value
30,582,831.61
1,745,363.81
ATTACHMENT 5
Market
Value
30,582,831.61
1,745,363.81
Account
Description
Total Unaudited Investments under the direction of the City $ 32,328,195.42 $ 32,328,195.42 $ 32,328,195.42 Investments under the direction of fiscal a ents:

Deposits - Workers' Comp PERMA n/a 31-Oct-22 n/a 877,475.29 Total Unaudited Investments under the direction of fiscal agents $ 877,475.29 $ Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.

I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively . 877,475.29 877,475.29 GL 1352
877,475.29 $ 877,475.29
. ~ - -- - : -~ Villasenor, Senior Accountant
Water.xlsx
-]

City of Hesperia

STAFF REPORT

DATE: December 20, 2022
TO: Mayor and Council Members
Chair and Board Members, Hesperia Housing Authority

FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Anne Duke, Deputy Finance Director
Victor Knight, Economic Development Manager

SUBJECT: Audited Hesperia Housing Authority Financial Statements for Fiscal Year Ended June 30, 2022 and Housing Successor SB 341 Report

RECOMMENDED ACTION

It is recommended that the City Council and the Hesperia Housing Au thority (HHA) Board receive and file the audited Hesperia Housing Authority – Component Unit Financial Statements for the Fiscal Year Ended June 30, 2022 and Housing Successor SB 341 Report.

BACKGROUND

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

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

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

ISSUES/ANALYSIS

The Agency's independent auditor, CliftonLarsonAllen LLP (CLA) performed an audit of the HHA for Fiscal Year 202 1-22. The document that comprises the Financial S tatements, commonly referred to as the Audit for the Authority, is the Hesperia Housing Authority - Component Unit Financial Statements – June 30, 2022.

Additionally, the HHA provides the Board with the audited financial statements and SB 341 Report, which satisfies the legal requirement set forth by the State. These documents are included as Attachments 1 and 2.

The Annual Comprehensive Financial Report, which reflects the Citywide Financial Statements, Component Unit Financial Statements for the Fire Protection District, Community Development Commission, HHA, and Water District, as well as the Single Audit, will be formally presented to the City Council in April of 2023.

Staff Report to the Mayor and Council Members and Board of Directors of the Hesperia Housing Authority Audited Hesperia Housing Authority Financial Statements for Fiscal Year Ended June 30, 2022 December 20, 2022

FISCAL IMPACT

None.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. June 30, 2022 Component Unit Financial Statements for the Hesperia Housing Authority

2. SB 341 Housing Successor Report

HESPERIA HOUSING AUT
HORITY

COMPONENT UNIT

FINANCIAL STATEMENTS AND

SUPPLEMENTARY INFORMATION
YEAR ENDED JUNE 30, 2022
Attachment 1

HESPERIA HOUSING AUTHORITY

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’
S DISCUSSION AND ANALYSIS 4

FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 9
STATEMENT OF ACTIVITIES 10
BALANCE SHEET 11

RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION – GOVERNMENTAL FUNDS 12

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES – GOVERNMENTAL FUNDS 13

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES TO THE STATEMENT OF
ACTIVITIES – GOVERNMENTAL FUNDS 14
NOTES TO FINANCIAL STATEMENTS 15

REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE – HESPERIA HOUSING
AUTHORITY SPECIAL REVENUE FUND 26
BUDGETARY COMPARISON SCHEDULE – VVEDA HOUSING AUTHORITY SPECIAL REVENUE FUND 27
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 28

1 INDEPENDENT AUDITORS’ REPORT
Board of Directors
Hesperia Housing Authority
Hesperia, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and each major fund of the Hesperia Housing Authority (the Authority) (a component unit of the City of Hesperia), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Authority, as of June 30, 2022, and the changes in financial position, and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

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

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com

Board of Directors
Hesperia Housing Authority
2 Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial stat ements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal cont rol. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

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

Board of Directors
Hesperia Housing Authority
3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 8, 2022 on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
December 8, 2022

4 MANAGEMENT’S DISCUSSION AND ANALYSIS
Our discussion and analysis of the Hesperia Housing Authority’s (Authority) financial performance provides an overview of the Authority’s financial activities for the fiscal year (FY) ending June 30, 2022. Please read it in conjunction with the accompanying basic financial statements.

FINANCIAL HIGHLIGHTS
During FY 2021-22, the Authority net position decreased by $0.2 million. While discussed in greater detail later, this is primarily related to reimbursing the City of Hesperia’s Neighborhood Stabilization Program (NSP) expenditures pertaining to low and moderate income housing functions.

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

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

Government-Wide Financial Statements
One of the most important questions asked about the Authority’s finances is, “Is the Authority as a whole better off or worse off as a result of this year’s activities?” The Government-Wide Statements – The Statement of Net Position and the Statement of Activities – report information about the Authority as a whole and about its activities in a way that helps answer this question. These statements include all assets and liabilities using the accrual basis of accounting method, which is similar to the accounting used by most private-sector companies. All of the current year’s revenues and expenses are taken into account regardless of when cash is received or paid.

The statement of net position presents financial information on all of the Authority’s assets, liabilities, and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Authority is improving or deteriorating.

The statement of activities presents information showing how the Authority’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows . Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

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

5 finance-related legal requirements. The Authority uses a governmental fund to account for its operations.

Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources , as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

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

THE HESPERIA HOUSING AUTHORITY AS A WHOLE
Our analysis focuses on the Condensed Statement of Net Position (Table 1) and Changes in Net Position (Table 2) of the Authority. As noted earlier, net position over time, may serve as a useful indicator of a government’s financial position.
2021 2022 Amount Percentage
Current and other assets 12,632,458 $ 11,974,046 $ (658,412)$ -5% Total assets 12,632,458 11,974,046 (658,412) -5% Total deferred outflow of resources - - - 0%
Current liabilities 429,708 107 (429,601) -100%
Total liabilities 429,708 107 (429,601) -100% Total deferred inflow of resources - - - 0%
Net Position:

Restricted 12,202,750 11,973,939 (228,811) -2% Total Net Position 12,202,750 $ 11,973,939 $ (228,811)$ -2% Table 1
Condensed Statement of Net Position
Changes from 2021 to 2022
The following is a brief explanation for the changes in Table 1 above for the fiscal year ending June 30, 2022:
 Current and other assets in the amount of $12.0 million decreased by $0.7 million from the year ending June 30, 2021. This is primarily the result of reimbursing the City of Hesperia’s Neighborhood Stabilization Program (NSP) approximately $0.7 million, which consists of $0.4 million for homebuyer assistance loans authorized by the Authority and $0.3 million for the reimbursement expenditures pertaining to low and moderate income housing functions.

6  Current liabilities totaled $107 at June 30, 2022, which is a decrease of $429,601. This decrease is attributed to the payment of the $0.4 million reimbursement to the City of Hesperia’s NSP during fiscal year ending June 30, 2022.
 As discussed, the impact of the changes to current assets and current liabilities is the cause for the $228,811 decrease to Total Net Position.

AUTHORITY ACTIVITIES
As shown in Table 2, the Authority’s June 30, 2022 net position decreased by approximately $0.2 million. While the June 30, 2022 total revenue of $150,016 is $11,240 more than June, 30 2021, it is less than the current year expenses for the Authority. The year-over-year increase to revenue is primarily due to a repayment of a homebuyer a ssistance program loan. The June 30, 2022 expenses are $1.5 million less than that of fiscal year ending June 30, 2021; the prior year included $1.4 million adjustment to the value of land held for resale and $0.4 million recognition of homebuyer assistance program loan. The June 30, 2022 expenses are primarily related to the reimbursement of approximately $0.3 million to the City of Hesperia’s Neighborhood Stabilization Program (NSP) for low and moderate income housing functions.
2021 2022 Amount Percentage
Revenues
General revenues:

Income from money and property 46,568 (28,612) (75,180) Other 92,208 178,628 86,420
-161%
94%
Total revenues 138,776 150,016 11,240 8% Expenses
Development Services 1,907,414 378,827 (1,528,587) -80% Total expenses 1,907,414 378,827 (1,528,587) -80% Change in net position (1,768,638) (228,811) 1,539,827 -87% Net position at July 1 13,971,388 12,202,750 (1,768,638) -13% Net position at June 30 12,202,750 $ 11,973,939 $ (228,811)$ -2% Changes from 2021 to 2022
Table 2
Changes in Net Position

FINANCIAL ANALYSIS
OF THE AUTHORITY’S FUNDS
At year-end, the Authority’s governmental funds reported combined fund balances of $12.0 million.  The fund balance of the Hesperia Housing Authority Fund is $10.2 million, which is restricted for low and moderate income housing functions. The Fund balance has decreased by $0.2 million from June 30, 2021, which is due to the reimbursement to the City of Hesperia’s Neighborhood Stabilization Program (NSP).
 The Victor Valley Economic Development Agency (VVEDA) Housing Authority Fund balance is $1.8 million, which is relatively unchanged from June 30, 2021. It should be noted that VVEDA funds must be utilized for low and moderate income housing functions in the VVEDA target area.

7 ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
In Fiscal Year 2022-23, the Authority’s budget anticipates revenues of $0.1 million, which will be offset by expenditures of approximately $72,586 to maintain current operations.

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

8 FINANCIAL STATEMENTS

HESPERIA HOUSING AUTHORITY

STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
9 ASSETS
Current Assets:

Cash and Cash Equivalents 5,091,568$
Receivables:

Accrued Interest 9,258
Due from City of Hesperia 106
Land Held for Resale 6,870,000
Total Current Assets 11,970,932
Noncurrent Assets:

Deposits 3,114
Notes Receivable 22,922,318
Allowance for Notes Receivable (22,922,318)
Total Noncurrent Assets 3,114
Total Assets 11,974,046

LIABILITIES
Current Liabilities:

Accounts Payable and Other Current Liabilities 107
Total Current Liabilities 107

NET POSITION
Restricted for Low Income Housing 11,973,939
Total Net Position 11,973,939$
Governmental
Activities

HESPERIA HOUSING AUTHORITY

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
10 Net (Expense)
Revenue and
Changes in
Net Position
Operating Capital
Charges for Grants and Grants and Governmental
Functions/Programs Expenses Services Contributions Contributions Activities Primary Government:

Governmental Activities:

Development Services 378,827$ -$ -$ $ - $ (378,827) Total Governmental Activities 378,827$ -$ -$ $ - (378,827)

GENERAL REVENUES
Income from Money and Property (28,612)
Other 178,628
Total General Revenues 150,016
CHANGE IN NET POSITION (228,811)
Net Position - Beginning of Year 12,202,750
NET POSITION - END OF YEAR 11,973,939$
Program Revenues

HESPERIA HOUSING AUTHORITY

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2022
See accompanying Notes to Financial Statements.
11 Hesperia VVEDA Total Housing
Housing Housing Authority
Authority Authority Funds
ASSETS
Cash and Cash Equivalents 3,291,156$ 5,091,568$
Due from City of Hesperia 106
Accrued Interest 6,044
$ 1,800,412
Notes Receivable 22,922,318
Allowance for Notes Receivable (22,922,318)
Land Held for Resale 6,870,000
106
9,258
22,922,318
(22,922,318)
6,870,000
Total Assets 10,167,306$ 1,803,626$ $ 11,970,932

LIABILITIES AND FUND BALANCES

LIABILITIES
Accounts Payable and Other Current Liabilities 107$ -$ 107$ Total Liabilities 107 - 107

FUND BALANCES
Restricted:

Low Income Housing 10,167,199 1,803,626 11,970,825
Total Liabilities and Fund Balances 10,167,306$ 1,803,626$ 11,970,932$ -
3,214
-
-
-

HESPERIA HOUSING AUTHORITY

RECONCILIATION OF THE BALANCE SHEET TO THE STATEMENT OF NET POSITION

GOVERNMENTAL FUNDS
JUNE 30, 2022
See accompanying Notes to Financial Statements.
12 Total Fund Balances - Governmental Funds 11,970,825$ Amounts reported for governmental activities in the Statement of Net Position are different because:

Deposits with insurance providers to pay for long-term liabilities are not current financial resources to the governmental funds. 3,114 Total Net Position 11,973,939$

HESPERIA HOUSING AUTHORITY

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
13 Hesperia VVEDA Total Housing
Housing Housing Authority
Authority Authority Funds

REVENUES
Use of Money and Property $ (12,101) $ (16,511) $ (28,612) Other Revenues 178,628 - 178,628
Total Revenues 166,527 (16,511) 150,016

EXPENDITURES
Current:

Development Services 372,133 - 372,133
Total Expenditures 372,133 - 372,133

DEFICIENCY OF REVENUES
UNDER EXPENDITURES (205,606) (16,511) (222,117) Fund Balances - Beginning of Year 10,372,805 1,820,137 12,192,942 FUND BALANCES - END OF YEAR 10,167,199$ 1,803,626$ 11,970,825$

HESPERIA HOUSING AUTHORITY

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES

GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
14 Net Change in Fund Balances - Total Governmental Funds $ (222,117) Amounts reported for governmental activities in the Statement of Activities are different because:

Recording of long-term deposits are included in governmental activities in the government-wide Statement of Activities. (6,694)
Change in Net Position of Governmental Activities $ (228,811)

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
15 NOTE 1 REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting Entity
The Hesperia Housing Authority (Authority), which is a subsidiary component unit of the City of Hesperia (City), was established on April 5, 2011 by Resolution No. 2011-022 of the City Council. The Hesperia Housing Authority was activated when the dissolution of the former Hesperia Community Redevelopment Agency occurred on February 1, 2012.

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

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

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

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

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

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

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

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

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
16 NOTE 1 REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. Basis of Presentation (Continued)
Governmental Fund Financial Statements (Continued)
Fund financial statements for the Authority’s governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually.

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

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

The Authority has two major funds described below:

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

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

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

In the government-wide statement of net position and the statement of activities, activities are presented using the economic resources measurement focus. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the government are reported.

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

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

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
17 NOTE 1 REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. Measurement Focus (Continued)
Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.

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

In the statement of net position, the net position is classified in the following categories:
 Investment in capital assets – This am ount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction or improvement of the assets. The Authority has no capital assets.
 Restricted net position – This amount is re stricted by external creditors, grantors, contributors, or laws or regulations of other governments.  Unrestricted net position – This amount is the net position that does not meet the definition of “investment in capital assets, net of related debt” or “restricted net position”.

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

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

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

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
18 NOTE 1 REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
D. Basis of Accounting (Continued)
In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The Authority considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.

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

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

F. Claims and Judgments
When it is probable that a claim liability has been incurred at year-end, and the amount of the loss can be reasonably estimated, the Authority records the estimated loss, net of any insurance coverage under its self-insurance program. At June 30, 2022, in the opinion of the Authority's Attorney, the Authority had no material unrecorded claims that would require loss provision in the financial statements, including losses for claims that are Incurred But Not Reported (IBNR). Small dollar claims and judgments are recorded as expenditures when paid.

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

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

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
19 NOTE 1 REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. Capital Assets
Capital assets, which include equipment, are depreciated and are reported in the government-wide financial statements. Authority policy has set the capitalization threshold for reporting capital assets at $5,000.

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

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

I. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Authority does not have any type of these items at June 30, 2022.

In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources . This separate financial statement element, deferred inflows of resources , represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Authority does not have any type of these items at June 30, 2022.

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

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

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
20 NOTE 2 CASH AND INVESTMENTS
A. Equity in Cash and Investment Pool of the City of Hesperia The Authority does not have a separate bank account; however, the Authority’s cash and investments are maintained in an investment pool managed by the City. The Authority is a voluntary participant in that pool. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City. The Authority has not adopted an investment policy separate from that of the City. The fair value of the Authority’s investment in this pool is reported in the accompanying fina ncial statements at amounts based upon the Authority’s pro-rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City, which are recorded on an original cost basis.

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

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer U.S. Treasury Obligations 5 Years 100% None
U.S. and State or Local Agency Securities 5 Years 100% None Banker's Acceptances 180 Days 25% 5%
Commercial Paper 270 Days 15% 10%
Negotiable Certificates of Deposit 5 Years 25% None
Repurchase Agreements 1 Year 20% None
Local Agency Investment Fund (LAIF) N/A 100% None
Medium-Term Notes 5 Years 30% None
Mutual and Money Market Funds N/A 20% 10%
Collateralized Bank Deposits 5 Years 10% None
Investment Pools N/A 30% None
Municipal Bonds 5 Years 10% None
Supranational Obligations 5 Years 30% None
Public Bank Obligations 5 Years 100% None
C. Disclosures Related to Interest Rate Risk, Credit Risk and Custodial Credit Risk, and Fair Value Measurements
The Authority’s cash and cash equivalents are pooled with the City of Hesperia’s cash
and investments. Additional disclosures regarding the pooled investments related to interest rate risk, credit risk, custodial credit risk and fair value measurements are available in the City of Hesperia’s Annual Comprehensive Financial Report.

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
21 NOTE 3 CHANGES IN CAPITAL ASSETS
A summary of changes in capital assets at June 30, 2022 is as follows:

Balance at Balance
June 30, 2021 Increases Decreases June 30, 2022
Capital Assets Being Depreciated:

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

Machinery and Equipment (6,596) - 6,596 -
Total Capital Assets Being
Depreciated, Net
Net Capital Assets -$ -$ -$ -$
NOTE 4 NOTES RECEIVABLE
Notes receivable, totaling $22.9 million at June 30, 2022 consists of loans provided for low and moderate income housing, with interest between 1% and 3% and maturity of 55 years.

Payments on these notes are based on a percentage of the residual receipts. The Authority does not know the timing of the repayment of the notes, as there is not enough information on the receipt of residual receipts; therefore, the Authority has recorded an allowance for uncollectible for the outstanding balance of $22.9 million.

Notes receivable at June 30, 2022 include the following:

Outstanding Outstanding
June 30, 2021 Additions Deductions June 30, 2022
A. KDF VAH I, L.P. 3,198,098$ 29,000$ -$ 3,227,098$ B. KDF Hesperia, L.P. 1,913,205 24,458 - 1,937,663 C. KDF Hesperia II, L.P. 2,598,801 28,102 - 2,626,903 D. PDDC San Remo Hesperia, L.P. 4,396,077 39,557 - 4,435,634 E. PDDC San Remo Hesperia II, L.P. 6,114,945 56,661 (108,722) 6,062,884 F. Eagle Hesperia 55, L.P. 4,213,892 76,639 - 4,290,531 G. Homebuyer Assistance Program 428,554 - (86,949) 341,605 Totals 22,863,572$ 254,417$ (195,671)$ 22,922,318$ A. KDF VAH I, L.P.

In July 2006, the former Hesperia Community Redevelopment Agency ( HCRA) entered into an Owner Participation Agreement (OPA) with KDF VAH I, L.P. (a California limited partnership) for the development, construction and operation of a 68-unit apartment complex of which certain units shall be available to very lo w income tenants, low income tenants, and moderate income tenants. Under the terms of the OPA, the HCRA loaned $2,900,000 of its low and moderate income housing funds toward the actual cost fo r the development, construction, and operation of the project. The loan is for a term of not more than 55 years and shall bear interest at a rate of 1%. The agreement is secured by a deed of trust on the property. Due to the dissolution of redevelopment agencies by AB 26x1, the Authority assumed responsibility of the HCRA notes receivable.

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
22 NOTE 4 NOTES RECEIVABLE (CONTINUED)
A. KDF VAH I, L.P. (Continued)
Accrued interest on the note through June 30, 2022 is $327,098. The balance of the loan outstanding at June 30, 2022 was $3,227,098. Payments on the loan are based on a percentage of the Partnership’s positive cash flow. Any unpaid balance is due and payable at the maturity date.

B. KDF Hesperia, L.P.

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

The loan is for a term of not more than 55 years and shall bear simple interest at a rate of 1%. The agreement is secured by a deed of trust on the property. Due to the dissolution of redevelopment agencies by AB 26x1, the Authority assumed responsibility of the HCRA notes receivable. On February 1, 2012, the Housing Authority issued a loan of $398,589, with an interest rate of 3%, to assist with converting the construction loan to a permanent loan. Accrued interest on the combined notes through June 30, 2022 is $289,074. The balance of the loan outstanding at June 30, 2022 was $1,937,663.

Payments on the loan are based on a percentage of the Partnership’s positive cash flow.

Any unpaid balance is due and payable at the maturity date.

C. KDF Hesperia II, L.P.

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

The loan is for a term of not more than 55 years and shall bear interest at a rate of 1%.

The agreement is secured by a deed of trust on the property. Due to the dissolution of redevelopment agencies by AB 26x1, the Author ity assumed responsibility of the HCRA notes receivable. On February 1, 2012, the Authority issued a loan of $270,070, with an interest rate of 3%, to assist with converting the construction loan to a permanent loan.

Accrued interest on the combined notes through June 30, 2022 is $356,833. The balance of the loan outstanding at June 30, 2022 was $2,626,903. Payments on the loan are based on a percentage of the Partnership’s positive cash flow. Any unpaid balance is due and payable at the maturity date.

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
23 NOTE 4 NOTES RECEIVABLE (CONTINUED)
D. PDDC San Remo Hesperia, L.P.

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

Under the terms of the OPA, the HCRA loaned $3,955,711 of its low and moderate income housing funds toward the actual cost for the development, construction, and operation of the project. The loan is for a term of not more than 55 years and shall bear interest at a rate of 1%. The agreement is secured by a deed of trust on the property.

Due to the dissolution of redevelopment agencies by AB 26x1, the Authority assumed responsibility of the HCRA notes receivabl e. Accrued interest on the note through June 30, 2022 is $479,923. The balance of the loan outstanding at June 30, 2022 was $4,435,634. Payments on the loan are based on a percentage of the Partnership’s positive cash flow. Any unpaid balance is due and payable at the maturity date.

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

On October 5, 2010, the former HCRA entered into an OPA with PDDC San Remo Hesperia II, L.P. (Palm Desert Development Company, a California limited partnership) for the development, construction, and operation of a 58-unit apartment complex of which certain units shall be available to very low-income tenants and low-income tenants. Under the terms of the OPA, the HCRA loaned $6,613,620 of its low and moderate income housing funds toward the actual cost for the development, construction, and operation of the project. The loan is for a term of not more than 55 years and shall bear interest at a rate of 1%. The agreement is secured by a deed of trust on the property. Due to the dissolution of redevelopment agencies by AB 26x1, the Authority assumed responsibility of the HCRA notes receivable. Accrued interest on the note through June 30, 2022 is $445,625 and principal and interest payments received are $1,268,421. The balance of the loan outstanding at June 30, 2022 was $6,062,884.

F. Eagle Hesperia 55, L.P.

On February 16, 2016, the former HCRA entered into an OPA with Eagle Hesperia 55 L.P. (a California limited partnership) for the development, construction, and operation of a 96-unit apartment complex of which certain units shall be available to low income senior citizens. Under the terms of the OPA, the Authority loaned $3,831,975 of its low and moderate income housing funds toward the actual cost for the development, construction, and operation of the project. The loan is for a term of 55 years, with the option of extending the term up to 25 years; the option must be exercised between the 53rd year and 54th year. The loan shall bear interest at a rate of two percent (2%). The agreement is secured by a deed of trust on the property. Accrued interest on the note through June 30, 2022 is $458,556. The balance of the loan outstanding at June 30, 2022 was $4,290,531. Any unpaid balance is due and payable at the maturity date.

HESPERIA HOUSING AUTHORITY

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
24 NOTE 4 NOTES RECEIVABLE (CONTINUED)
G. Homebuyer Assistance Program
On July 17, 2012 the City Council and Housing Authority adopted Joint Resolution No. 2012-061 and HHA 2012-010 approving implementation of the Seller Mortgage Carryback Program (SMCP) that carried back a portion of the sale price of properties as a second mortgage loan and; the SMCP will enable the City and HHA to fund the amount needed to make the purchase price of single family residential properties affordable to households whose income is 50% AMI or below, in the form of a 30-year deferred, zero interest bearing loan for an original amount of $428,554. The SMCP loan is secured by a second deed of trust on the property. Principal payments received are $86,949. At June 30, 2022, four of the five loans are outstanding with total balance of $341,605.

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

25 REQUIRED SUPPLEMENTARY INFORMATION

HESPERIA HOUSING AUTHORITY

BUDGETARY COMPARISON SCHEDULE

HESPERIA HOUSING AUTHORITY SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2022
See accompanying Note to Required Supplementary Information. 26 Variance with
Original Final Actual Final Budget
FUND BALANCE - BEGINNING OF YEAR 10,372,805$ 10,372,805$ 10,372,805$ -$

RESOURCES (INFLOWS)
Use of Money and Property 49,120 49,120 (12,101) (61,221) Other Revenues 93,178 381,178 178,628 (202,550) Amount Available for
Appropriations 142,298 430,298 166,527 (263,771)

CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Current:

Development Services 66,650 372,238 372,133 105 Total Charges to Appropriations 66,650 372,238 372,133 105

EXCESS OF RESOURCES

OVER/(UNDER) CHARGES TO
APPROPRIATIONS 75,648 58,060 (205,606) (263,666) FUND BALANCE - END OF YEAR 10,448,453$ 10,430,865$ 10,167,199$ $ (263,666) Budgeted Amounts

HESPERIA HOUSING AUTHORITY

BUDGETARY COMPARISON SCHEDULE
VVEDA HOUSING AUTHORITY SPECIAL REVENUE FUND –
YEAR ENDED JUNE 30, 2022
See accompanying Note to Required Supplementary Information. 27 Variance with
Original Final Actual Final Budget
FUND BALANCE - BEGINNING OF YEAR 1,820,137$ 1,820,137$ 1,820,137$ -$

RESOURCES (INFLOWS)
Use of Money and Property 10,000 10,000 (16,511) (26,511) FUND BALANCE - END OF YEAR 1,830,137$ 1,830,137$ 1,803,626$ $ (26,511) Budgeted Amounts

HESPERIA HOUSING AUTHORITY

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
28 NOTE 1 BUDGETARY DATA
In conjunction with the City of Hesperia’s budgeting process, the Authority adopts annual operating budgets for the governmental funds each year. The Authority’s Board approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year. The Board conducts public hearings prior to its adoption. Supplemental appropriations, when required during the period, are also approved by the Board. Increases in annual expenditures require approval by the Board. Interdepartmental budget changes are approved by the City Manager. In most cases, expenditures may not exceed appropriations at the fund level for each fund. At fiscal year-end, all operating budget appropriations lapse.

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

1 HOUSING SUCCESSOR ANNUAL REPORT

REGARDING THE

LOW AND MODERATE INCOME HOUSING ASSET FUND
FOR FISCAL YEAR 2021-22

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

FOR THE

HESPERIA HOUSING AUTHORITY

This Housing Successor Annual Report (Report) regarding the Low and Moderate Income Housing Asset Fund (LMIHAF) has been prepared pursuant to California Health and Safety Code Section 34176.1(f) and is dated as of November 14, 2022. This Report sets forth certain details of the Hesperia Housing Authority (Housing Successor) activities during Fiscal Year 2021-22 (Fiscal Year). The purpose of this Report is to provide the governing body of the Housing Successor an annual report on the housing assets and activities of the Housing Successor under Part 1.85, Division 24 of the California Health and Safety Code, in particular sections 34176 and 34176.1 (Dissolution Law).

The following Report is based upon information prepared by Housing Successor staff and information contained within the independent financial audit of the Low and Moderate Income Housing Asset Fund for Fiscal Year 2021- 22 (Fiscal Year), as a part of the 2022 Annual Comprehensive Financial Report, as prepared by Clifton Larson Allen (Audit), which Audit is separate from this annual summary Report; further, this Report conforms with and is organized into sections I. through XI., inclusive, pursuant to Section 34176.1(f) of the Dissolution Law.

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

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

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

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

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

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

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

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

IX. Income Test: This section provides the information required by Section 34176.1(a)(3)(B), or a description of expenditures by income restriction for five year period, with the time period beginning January 1, 2018 and whether the statutory thresholds have been met.

X. Senior Housing Test: This section provides the percentage of units of deed -restricted rental housing restricted to seniors and assisted individually or jointly by the Housing Successor, its former redev elopment Agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deeds -restricted rental housing assisted individually or jointly by the housing successor, its former Redevelopment Agency and its host jurisdiction within the same time period. For this Repor t the ten -year period reviewed is July 1, 2013 to June 30, 2022.

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

This Report and the former redevelopment agency’s pre-dissolution Implementation Plans are to be made available to the public on the City’s website www.cityofhesperia.us I. AMOUNT DEPOSITED INTO LMIHAF
A total of $ 166,527 was deposited into the LMIHAF during the Fiscal Year. Of the total funds deposited into the LMIHAF, a total of $0 was held for items listed on the ROPS.

II. ENDING BALANCE OF LMIHAF
At the close of the Fiscal Year, the ending balance in the LMIHAF was $10,167,199 of which $0 is held for items listed on the ROPS.

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

Fiscal Year
Monitoring & Administration Expenditures $ 372,133
Homeless Prevention and Rapid Rehousing
Services Expenditures

0 Housing Development
Expenditures
Expenditures on Low Income
Units

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

Loss on land held for resale

0 Total LMIHAF Expenditures in Fiscal Year $ 372,133
IV. STATUTORY VALUE OF ASSETS OWNED BY HOUSING SUCCESSOR IN LMIHAF Under the Dissolution Law and for purposes of this Report, the “statutory value of real property” means the value of properties formerly held by the former redevelopment agency as listed on the housing asset transfer schedule approved by the Department of Finance as listed in such schedule under Section 34 176(a)(2), the value of the properties transferred to the Housing Successor pursuant to Section 34181(f), and the purchase price of property(ies) purchased by the Housing Successor. Further, the value of loans and grants receivable is included in these reported assets held in the LMIHAF.

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

As of End of
Fiscal Year
Statutory Value of Real Property Owned by Housing Authority $ - Value of Loans and Grants Receivable 22,922,318
Total Value of Housing Successor
Assets
V. DESCRIPTION OF TRANSFERS

$ 22,922,318
The Housing Successor did not make any LMIHAF transfers to other Housing Successor(s) under Section 34176.1(c)(2) during the Fiscal Year.

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

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

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

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

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

Inclusionary/Production Housing: According to the 2010 -2014 Implementation Plan for the former redevelopment agency, no Section 33413(b) inclusionary/production housing obligations were transferred to the Housing Successor. The former redevelopment agency’s Implementation Plans are posted on the City’s website at www.cityofhesperia.us .

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

For informational purposes, the following provides the Housing Successor’s Extremely -Low Income Housing Test as of FY 2018 – 2022.

Extremely-Low Income Test FY 2018-2022
LMIHAF Spent on Extremely-Low Income Households $0
Total LMIHAF Spent (Five Year Total) $4,796,807
Extremely-Low Income Test 0%

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

The following provides the Housing Successor’s Senior Housing Test for the 10 year period of July 1, 2013 through June 30, 2022.

July 1, 2013 -
Senior Housing Test June 30, 2022
# of Assisted Senior Rental Units 96
# of Total Assisted Rental Units 474
Senior Housing Percentage 20.25%

XI. EXCESS SURPLUS TEST
The LMIHAF has a $0 Excess Surplus. The Housing Successor has three fiscal years to encumber, or transfer, the excess surplus, if any. The Housing Successor has not had an Excess Surplus since February 1, 2012.

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT

DATE: December 20, 2022
TO: City Council, as Successor Agency to the Hesperia Community Redevelopment Agency

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

SUBJECT: Annual 2023-24 Recognized Obligation Payment Schedule

RECOMMENDED ACTION

It is recommended that the Successor Agency adopt Resolution No. SA 2022-02 approving the Annual 2023-24 Recognized Obligation Payment Schedule (ROPS), including the Successor Agency’s FY 2023-24 Administrative Budget and authorize staff to present the ROPS to the Oversight Board for its consideration and approval.

BACKGROUND

Pursuant to Section 34177(l) of the Health and Safety Code (HSC), the Successor Agency to the former Hesperia Community Redevelopment Agency (SA) is required to prepare a Recognized Obligation Payment Schedule (ROPS) for each fiscal year period (commencing each July 1). The ROPS must list the estimated payment amounts for enforceable obligations , as well as sources of funds for each such payment during the fiscal period. Each ROPS must be submitted to the Countywide Oversight Board (the Oversight Board) and the State Department of Finance (the DOF) for approval.

Upon notification of the approval by the DOF, the County Auditor-Controller will prepare the redevelopment property tax trust fund (RPTTF) distribution to the SA. The RPTTF is the funding amount identified on the ROPS to pay enforceable obligations.

ISSUES/ANALYSIS

As mentioned, the ROPS lists the outstanding enforceable obligations to the SA. The SA requires and requests $10,838,584 in enforceable obligations. The following listing discusses the changes to the 2023-24 ROPS:

 2018 Bonds (Items 76 and 77) – The ROPS 23-24 requests $9.7 million to make debt service payments on the 2018 Tax Allocation Refunding Bonds, Series A and B, of which $8.7 million is from RPTTF and $1 million from Reserve Balance.

 2018 Bond Reserve (Item 78) - $1 million in RPTTF is requested in the ROPS 23-24B period to retain as a reserve for a debt service payment due in the ROPS 23-24A period.

Dissolution law permits the SA to request a debt service reserve if a shortfall is projected in the following six -month ROPS period. Without the reserve, there will not be enough RPTTF revenues available to make the debt service owed in the ROPS 24-25A period.

Staff Report to the City Council, as Successor Agency to the Hesperia Community Redevelopment Agency Annual 2023-24 Recognized Obligation Payment Schedule
December 20, 2022

 2018 Bond Trustee Fees (Items 79 to 80) – $8,000 in RPTTF is requested to pay for bond trustee administration fees on the 2018 Tax Allocation Refunding Bonds, Series A and B.

 2018 Bond Continuing Disclosure Fees (Item 81) – This item will be paid from the administrative cost allowance.

 2018 Bond Arbitrage (Item 82) – $2,500 in RPTTF is requested to pay for the anticipated arbitrage reporting services that is due on the 2018 TARBS Series A & B that is due in FY 2023-24.

 Property Disposition Costs (Item 75) – This item will be paid from the administrative cost allowance.
 Administrative Cost Allowance (Item 74) – The SA is requesting a $122,000 administrative cost allowance to pay for staffing and professional services necessary to administer ROPS obligations and prepare the ROPS. This is below the $250,000 maximum permitted by law and consistent with the budget for FY 2023-24.

FISCAL IMPACT

The adoption of Resolution No. SA 2022-02 (Attachment 1) and ROPS 23-24 (Attachment 2) is the first step in the process to ensure that the Enforceable Obligations of the Successor Agency are paid in full for FY 2023-24.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Resolution No. SA 2022-02

2. Exhibit A Annual ROPS Schedule 23-24 (July 1, 2023 – June 30, 2024)

3. Exhibit B FY 2023-24 Administrative Budget (July 1, 2023 – June 30, 2024)

RESOLUTION NO. SA 2022-02

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE HESPERIA

COMMUNITY REDEVELOPMENT AGENCY , APPROVING THE ANNUAL
2023-24 RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR

SUBMISSION TO THE COUNTYWIDE OVERSIGHT BOARD

WHEREAS, pursuant to Health and Safety Code (HSC) Section 34172 (a)(1), the Hesperia Community Redevelopment Agency was dissolved on February 01, 2012; and

WHEREAS, the City of Hesperia elected to serve as the Successor Agency to the former Hesperia Community Redevelopment Agency (“Successor Agency”) pursuant to Assembly Bill x1 26 (“Abx1 26”) as codified in the California Health and Safety Code (“HSC”); and

WHEREAS, Abx1 26 was amended by Assembly Bill 1484 and Senate Bill 107 (collectively, the “Dissolution Act”); and

WHEREAS, among the duties of successor agencies under the Dissolution Act as amended is the preparation of an annual Recognized Obligation Payment Schedule (“ROPS”), per HSC Section 34177 (i); and

WHEREAS, pursuant to HSC Section 34177( l) of the Health and Safety Code ("HSC"), the Successor Agency must prepare a Recognized Obligation Payment Schedule (ROPS) for each fiscal year period (commencing each July 1), listing the estimated payment amounts for enforceable obligations and the source of funds for each such p ayment during such fiscal period; and

WHEREAS, each ROPS prepared by the Successor Agency must be submitted to the Countywide Oversight Board (Oversight Board) and the State Department of Finance (DOF ) for approval; and

WHEREAS, the County will not make any redevelopment property tax trust fund (RPTTF) distributions to the Successor Agency for use in payment of the obligations listed on the ROPS until the ROPS has been approved by the Countywide Oversight Board and DOF; and

WHEREAS, the Successor Agency has prepared a ROPS for the period of July 01, 202 3 through June 30, 202 4 which is attached hereto as Exhibit A and the Successor Agency has prepared the Fiscal Year 202 3-24 Administrative Budget which is attached hereto as Exhibit B; and

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Hesperia, as Successor Agency to the Hesperia Community Redevelopment Agency, as follows:

Section 1. The Successor Agency her eby finds that all of the facts set forth in this Resolution are true and correct and are a substantive part of this Resolution, incorporated herein by this reference.

Section 2. The Successor Agency her eby approves and adopts the ROPS 2 3-24 covering the period of July 1, 202 3 to June 30, 2024 in substantially the form attached hereto as Exhibit A, as required by the Dissolution Act. The Successor Agency accepts changes made by the Consolidated Oversight Board in advance in order to enable the Successor Agency to submit the ROPS 23-24 to DOF.

Resolution No. SA 2022-02

Section 3. Pursuant to the Dissolution Act, the Successor Agency approves the Fiscal Year 2023-24 Administrative Budget for the period July 1, 202 3 to June 30, 202 4 submitted herewith as Exhibit B, which is incorporated herein by this reference.

Section 4. The City Manager and/or another representative of the Successor Agency is hereby authorized and directed to post a copy of the ROPS 23-24 on the City’s website and transmit a copy of this Resolution along with the approved ROPS to the San Bernardino Countywide Oversight Board for consideration and approval.

Section 5. 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 20th day of December, 2022.

______________________________
Brigit Bennington, Mayor
ATTEST:

____________________________
Erin Baum, Assistant City Clerk

Attachment 2
Successor Agency: Hesperia
County: San Bernardino
Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 23-24 A Total
(July - December)
23-24 B Total
(January - June) ROPS 23-24 Total
A Enforceable Obligations Funded as Follows (B+C+D): 1,000,000$ -$ 1,000,000$ B Bond Proceeds - - - C Reserve Balance 1,000,000 - 1,000,000 D Other Funds - - - E Redevelopment Property Tax Trust Fund (RPTTF) (F+G): 6,902,863$ 2,935,722$ 9,838,584$ F RPTTF 6,841,863 2,874,722 9,716,584 G Administrative RPTTF 61,000 61,000 122,000 H Current Period Enforceable Obligations (A+E): 7,902,863$ 2,935,722$ 10,838,584$ Certification of Oversight Board Chairman: Name Title
Pursuant to Section 34177 (o) of the Health and Safety Code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency. Signature Date
Recognized Obligation Payment Schedule (ROPS 23-24) - Summary Filed for the July 1, 2023 through June 30, 2024 Period

A B C D E F G H I J K L M N O P Q R S T U V W
Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF 143,977,878$ 10,838,584$ -$ 1,000,000$ -$ 6,841,863$ 61,000$ 7,902,863$ -$ -$ -$ 2,874,722$ 61,000$ 2,935,722$ 74 Administrative Costs Admin Costs 7/1/2012 9/1/2037 Successor Agency; City of Hesperia; RSG, Inc.;
Agency administrative costs 1 & 2
1,952,000$ N 122,000$ 61,000 61,000$ 61,000 61,000$ 76 Hesperia 2018A TARBS Refunding Bonds Issued
After 6/27/12
9/11/2018 9/1/2037 Union Bank Refunding of 2005 and 2007 bond series for interest savings
1 & 2
100,937,122$ N 3,304,069$ 1,652,034 1,652,034$ 1,652,034 1,652,034$ 77 Hesperia 2018B TARBS Refunding Bonds Issued
After 6/27/12
9/11/2018 9/1/2037 Union Bank Refunding of 2005 and 2007 bond series for interest savings
1 & 2
20,474,378$ N 6,402,016$ 1,000,000 5,179,328 6,179,328$ 222,688 222,688$ 78 Bond Payment Reserves Reserves 9/11/2018 9/1/2037 Union Bank Reserves for bond payment, needed due to cash flow - H&SC
34171(d)(1)(A)
1 & 2
20,474,378$ N 1,000,000$ -$ 1,000,000 1,000,000$ 79 Trustee Bond Administration Fees -
2018 TARBS - Series A
Fees 9/11/2018 9/1/2037 Union Bank Bond Administration Fees for 2018 TARBS
1 & 2
60,000$ N 4,000$ 4,000 4,000$ -$ 80 Trustee Bond Administration Fees -
2018 TARBS - Series B
Fees
9/11/2018 9/1/2037 Union Bank Bond Administration Fees for 2018 T 1 & 2 16,000$ N 4,000$ 4,000 4,000$ -$ 81 Continuing Disclosures - 2018
TARBS Series A & B
Professional Services
43354 50284 Urban Futures, Inc. Professional services to fulfill ann 1 & 2 54,000$ N -$ -$ -$ 82 Arbitrage - 2018 TARBS Series A
& B
Fees
43354 50284 Union Bank Bond Arbitrage for 2018 TARBS 1 & 2 10,000$ N 2,500$ 2,500 2,500$ -$ ROPS 23-24
Total
23-24 A (July - December)
Fund Sources 23-24 A
Total
23-24 B (January - June)
Fund Sources
Hesperia Recognized Obligation Payment Schedule (ROPS 23-24) - ROPS Detail July 1, 2023 through June 30, 2024
(Report Amounts in Whole Dollars)
Item # Project Name/Debt Obligation Obligation Type Contract/Agreement Execution Date
Contract/Agreement
Termination Date Payee Description/Project Scope Project Area Total
Outstanding
Debt or
Obligation
23-24 B
TotalRetired

A B C D E F G H
Reserve Balance Other Funds RPTTF
Bonds issued on or
before 12/31/10
Bonds issued on or
after 01/01/11
Prior ROPS RPTTF
and Reserve
Balances retained for
future period(s)
Rent,
Grants,
Interest, etc.

Non-Admin
and
Admin
1 Beginning Available Cash Balance (Actual 07/01/20)
RPTTF amount should exclude "A" period distribution amount 1,410,811 467,585 271,312 E: $1,000,000 Reserve Balance for ROPS 20-21 Item 77 +
$220,069 PPA 18-19 (ROPS 21-22) +$55,959 PPA 19-20
(ROPS 22-23) + $134,783 reserved for ROPS 21-22
F:$316,241 for ROPS 20-21 Item 77 + $95,358 for ROPS
21-22 Item 76 + $55,986 reserved for ROPS 22-23
G: $271,312 PPA 17-18 (ROPS 20-21)
2 Revenue/Income (Actual 06/30/21)
RPTTF amount should tie to the ROPS 18-19 total distribution from the County Auditor-Controller 31,964 9,262,827 3 Expenditures for ROPS 20-21 Enforceable Obligations
(Actual 06/30/21)
1,000,000 316,241 8,528,477 Matches PPA 20-21 submitted to County Auditor-controller 4 Retention of Available Cash Balance (Actual 06/30/21) RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
410,811 151,344 1,000,000 E: $220,069 PPA 18-19 (ROPS 21-22) +$55,959 PPA 19-
20 (ROPS 22-23) + $134,783 reserved for ROPS 21-22
F: $95,358 for ROPS 21-22 Item 76 + $55,986 reserved for ROPS 22-23
G: Bond debt service reserve for next A period
5 ROPS 20-21 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 20-21 PPA
form submitted to the CAC
5,662 PPA ROPS 20-21
6 Ending Actual Available Cash Balance (06/30/21)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5) 0$ 0$ 0$ 31,964$ 0$ Apply verified balance to ROPS 23-24 Item 74 No entry required
Hesperia Recognized Obligation Payment Schedule (ROPS 23-24) - Report of Cash Balances July 1, 2020 through June 30, 2021
(Report Amounts in Whole Dollars)

ROPS 20-21 Cash Balances
(07/01/20 - 06/30/21)
Fund Sources
Comments
Bond Proceeds

Item # Notes/Comments
Hesperia Recognized Obligation Payment Schedule (ROPS 23-24) - Notes July 1, 2023 through June 30, 2024

Attachment 3

EXHIBIT B

HESPERIA SUCCESSOR AGENCY
ADMINISTRATIVE BUDGET FY 2023-24
FOR JULY 1, 2023 to JUNE 30, 2024

Expense Category Responsibilities
FY 2023-24
Proposed
Budget

1. AGENCY STAFF
Finance
 Process payment of enforceable obligations
 Maintain documentation of Agency records
 Coordinate with consultant to answer questions and provide documentation as requested by Oversight Board, County Auditor-Controller, and Department of Finance
$34,948
City Manager  Provide direction to other staff and consultants as needed $11,098 Other  Administration and implementation of Agency wind-down $18,589 AGENCY STAFF TOTAL $64,635

2. PROFESSIONAL SERVICES
Administrative services (RSG)
 Prepare ROPS, PPA, staff reports, and resolutions
 Assist with administration of the Owner Participation Agreement (“OPA”) and other reporting
 Coordinate with and answer questions for Oversight Board, County Auditor-Controller, and Department of Finance
 Attend Oversight Board meeting
 Monitor and project cash flow to ensure sufficient revenues for obligations and to inform Agency staff of expected revenues
$20,000
Legal  Provide general legal services as needed
 Review staff reports and resolutions $19,700

Attachment 3
Expense Category Responsibilities
FY 2023-24
Proposed
Budget
Audit Costs  Prepare Successor Agency portion of audited financial statements $6,180 Disclosure/Dissemination Agent
Services – 2018 TARBS Series
A&B
 Annual continuing disclosure and dissemination agent reporting fees $1,500 Property Disposition  LRPMP property disposition expenses such as appraisals and staff time related to property disposition $9,985
PROFESSIONAL SERVICES TOTAL $57,365

TOTAL BUDGET $122,000

City of Hesperia

STAFF REPORT

DATE: December 20, 2022
TO: Mayor and City Council Members
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Keith Cheong, Senior Accountant
SUBJECT: Fiscal Year 2021-2022 Annual Compliance Report for AB 1600 Development Impact Fees

RECOMMENDED ACTION

It is recommended that the City Council receive and file the AB 1600 report on development fee activity that occurred during Fiscal Year (FY) 2021-2022.

BACKGROUND

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

ISSUES/ANALYSIS

Development impact fees that are collected are segregated and placed in special funds or accounts, which earn interest. Those funds are held for the facilities for which the fees are collected, in accordance with Government Code Section 66006. This report provides a summary of development fee activity and financial detail regarding each of the projects impacted during FY 2021-22 (July 1, 20 21 through June 30, 202 2). The summary of development fee activity and detail regarding each project is included as Attachment 1 to this report.

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

Staff Report to the Mayor and City Council
Fiscal Year 2021-22 Annual Compliance Report for AB 1600 Development Impact Fees December 20, 2022

 An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement.  A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and in the case of an interfund loan, the date on which the loan will be repaid and t he rate of interest that the account or fund will receive on the loan.  The amount of refunds made due to sufficient funds being collected to complete financing on incomplete public improvements, and the amount of reallocation of funds made due to administrative costs of refunding unexpended revenues exceeding the amount to be refunded.

Stated below are the unaudited DIF Balances as of June 30, 2022.

Fund

Fund Balance as of
6/30/2022
Transportation Facilities 16,576,366
Citywide Drainage Facilities 4,538,894
A-04 Drainage Facilities 57,925
Fire Facilities 3,027,437
Police Facilities 20,627
Public and City Hall Facilities ($3,379,501)1
Animal Control Facilities 205,553
Records Storage Facilities 69,436
Note:

1. Includes accumulated debt related to loan from the General Fund which was made in order to cover the shortfall in the required 87.25% contribution from Impact Fees. The General Fund loan amount will increase annually until Impact Fees are sufficient to make the full

87.25% contribution.

The attached report provides all the required elements and details regarding balance, fees collected, and project expenditures. The purpose of the applicable legal requirements under the Mitigation Fee Act, as it applies to findings and compliance reporting, is to provide the community with information as to the status and use of impact fees collected. Additionally, every five years, Government Code Section 66001(d) requires the City to identify the purpose for the continued collection of the fee and the anticipated amount of impact fees to be used towards future improvements. This five -year requirement was met with the Fiscal Years 2015 -16 through 2020-21 report approved by the City Council in January 2022. The next five -year report requirement will be included with the Fiscal Year 2025-26 report.

The Fiscal Year 2021 -2022 annual report presented meets the requirements per the Mitigation Fee Act.

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

Staff Report to the Mayor and City Council
Fiscal Year 2021-22 Annual Compliance Report for AB 1600 Development Impact Fees December 20, 2022

FISCAL IMPACT

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

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENTS

1. Attachment 1 – AB 1600 Report

Attachment 1

CITY OF HESPERIA

GOVERNMENT CODE SECTIONS 66001 AND 66006

ANNUAL REPORT
FISCAL YEAR 2021- 2022

City of Hesperia
9700 Seventh Avenue
Hesperia, CA 92345

Table of Contents

SECTION PAGE
I EXECUTIVE SUMMARY ............................................................... 3 A Purpose of the Report .................................................................. 3 II FISCAL YEAR 2021-2022
ANNUAL REPORT ........................................................................ 5 A Transportation Facilities .............................................................. 5 B Citywide Drainage Facilities ........................................................ 7 C A-04 Drainage Facilities ............................................................... 9 D Fire Facilities ................................................................................ 10 E Police Facilities ........................................................................... 12 F Public and City Hall Facilities .................................................... 14 G Animal Control Facilities ........................................................... 17 H Records Storage Facilities ........................................................ 18

APPENDICES

APPENDIX A TRANSPORTATION FACILITIES FEE

FINANCIAL SUMMARY REPORT

APPENDIX B CITYWIDE DRAINAGE FACILITIES FEE

FINANCIAL SUMMARY REPORT
APPENDIX C A-04 DRAINAGE FACILITIES FEE

FINANCIAL SUMMARY REPORT

APPENDIX D FIRE FACILITIES FEE FINANCIAL

SUMMARY REPORT

APPENDIX E POLICE FACILITIES FEE FINANCIAL

SUMMARY REPORT

APPENDIX F PUBLIC AND CITY HALL FACILITIES FEE

FINANCIAL SUMMARY REPORT

APPENDIX G ANIMAL CONTROL FACILITIES FEE

FINANCIAL SUMMARY REPORT

APPENDIX H RECORDS STORAGE FACILITIES FEE

FINANCIAL SUMMARY REPORT

SECTION I EXECUTIVE SUMMARY
City of Hesperia
AB 1600 Annual Report
3 I EXECUTIVE SUMMARY
A Purpose of the Report
Sections 66001 and 66006 of the Government Code provide that the City of Hesperia ("City") shall make available to the public certain information and adopt described findings relative to development impact fees ("Impact Fees") collected pursuant to Section 66000 et seq. of the Government Code. The described information and findings relate to Impact Fees received, expended or to be expended in connection with public facilities to accommodate new development.

Section 66006(b) of the Government Code requires that for each Impact Fee the City shall, within 180 days after the last day of each Fiscal Year, make available to the public the following information for the Fiscal Year:
 A brief description of the type of fee in the account or fund; The amount of the fee;  The beginning and ending fund balance of the account or fund; The amount of the fees collected and interest earned;
 An identification of each public improvement on which fees were expended and the amount of expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees;
 An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement;

 A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid and the rate of interest that the account or fund will receive on the loan; and  The amount of refunds made due to sufficient funds being collected to complete financing on incomplete public improvements and volume of reallocation of funds made due to administrative costs of refunding unexpended revenues exceeding the amount to be refunded.

Section 66001(d) of the Government Code requires that for each Impact Fee, the City shall make all of the following findings every fifth year with respect to that portion of the account remaining unexpended, whether committed or uncommitted:
 Identify the purpose to which the fee is to be put;
 Demonstrate a reasonable relationship between the fee and purpose for which it is charged.
 Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements; and
 Designate the approximate dates on which the funding is expected to be deposited into the appropriate account or fund.

SECTION I EXECUTIVE SUMMARY
City of Hesperia
AB 1600 Annual Report
4 The five-year report was provided (January 2022) as part of the Fiscal Years 2015- 2016 through 2020-2021 reports.

The Impact Fees of the City for Fiscal Year 2021-2022 fund the following types of facilities:

A. Transportation Facilities;
B. Citywide Drainage Facilities;
C. A-04 Drainage Facilities;
D. Fire Facilities;
E. Police Facilities;
F. Public and City Hall Facilities;
G. Animal Control Facilities; and
H. Records Storage Facilities.

The Impact Fees were originally adopted by Ordinance No. 180 on September 16, 1993 (the “Ordinance”). The dollar amounts of the fees are adopted by resolution. The Impact Fees were previously updated by Resolution Nos. 2018-26 and 2020-69 on May 15, 2018, and November 17, 2020, respectively. The Impact Fees were last updated by Resolution No. 2022-01 on April 2, 2022.

The following Annual Report for Fiscal Year 2021-2022 include the information and proposed findings the City intends to review and adopt in accordance with Sections 66001 of the Government Code.

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
5 II FISCAL YEAR 2021-2022 ANNUAL REPORT
A. Transportation Facilities

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

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

2. Amount of the Impact Fees.

Table II-1: Transportation Facilities Fee by Land Use for Projects Submitted Prior to July 16, 2018 (Fund 300)

Land Use Fee Amount
Single Family $9,781.00 per unit
Multi-Family $6,259.00 per unit
Hotel/Motel $7,238.00 per unit
Non-Residential $2.12 per sq. ft.

Table II-2: Transportation Facilities Fee by Land Use for Projects Submitted After July 16, 2018 (Fund 306)

Land Use Fee Amount
Single Family $9,952.00 per unit
Multi-Family $6,895.00 per unit
Commercial/Office/Retail $6,000.00 per 1,000 bldg. sq. ft.

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

Hotel/Motel $7,001.00 per room

Table II-3: Transportation Facilities Fee by Land Use for Projects Submitted After April 2, 2022 (Fund 306)

Land Use Fee Amount
Single Family $12,371.00 per unit
Multi-Family $8,667.00 per unit
Commercial/Office/Retail $6,000.00 per 1,000 bldg. sq. ft.

Industrial $2,703.00 per 1,000 bldg. sq. ft.

Hotel/Motel $11,971.00 per room

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

Tables 1 and 2 in Appendix A list the beginning and ending fund balances for the Transportation Facilities Fee Accounts from Fiscal Year 2017-2018 through Fiscal Year 2021-2022.

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

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
6 Tables 1 and 2 in Appendix A show the amount of Transportation Facilities Fee collected, interest earned, and miscellaneous income during Fiscal Years 2017-2018 through 2021-2022.

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

Table II-4: Fiscal Year 2021-2022 Transportation Facilities Fee Expenditures

Project

Amount
Percentage of
Project Funded
by Fees
Ranchero Road Improvements $1,333,654 14%
SBCTA Loan Payments 1 $1,916,954 100%
Total $3,250,608 N/A
Note:

1. In April 2014, the City entered into an agreement with San Bernardino County Transportation Authority (SBCTA) for the construction and financing of the Ranchero Road Interchange. The agreement specified that at completion of the project, any unpaid amounts would be converted to a loan to the City by SBCTA and payable with Impact Fees. The ten -year loan includes interest calculated at the Local Agency Investment Fund (LAIF) rate. The original principal amount was $18,762,403. As of June 30, 2022, the outstanding principal balance was $11,257,442.

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

Table II-5: Fiscal Year 2021-2022 Transportation
Facilities Incomplete Projects with Sufficient Funding

The City has determined that it has or will obtain sufficient funds to finance such projects.

ESTIMATED ESTIMATED EST IMATED AMOUNT TO BE

CONSTRUCTION CONSTRUCTION TO TAL FUNDED BY

START COMPLETION COS T IMPACT FEES
Ranchero Rd Improve-Mariposa 2021-2022 TB D 37,320,583 8,634,377 Traffic Signal @ Ranchero & Maple 2021-2022 2022-2023 450,000 200,082 Ranchero Road Aqueduct Crossing 2021-2022 2022-2023 16,362,000 6,351,047 Traffic Signal @ Ranchero/Cottonwood 2021-2022 2022-2023 450,000 185,710 Traffic Signal @ Ranchero/Seventh 2021-2022 2022-2023 450,000 174,540

PROJECT

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
7 7. Description of each interfund transfer or loan made from the account or sub- account(s), including project(s) of the City on which the transferred or loaned Impact Fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of Interest that the account or sub-account(s) will receive on the loan.

No transfers or loans were made from the Transportation Facilities Fee Accounts in Fiscal Year 2021-2022.

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

No refunds were made from the Transportation Facilities Fee Accounts in Fiscal Year 2021-2022.

B. Citywide Drainage Facilities

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

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

2. Amount of the Impact Fees.

Table II-6: Citywide Drainage Facilities Fee by Land Use for Projects Submitted Prior to July 16, 2018 (Fund 301) Land Use Fee Amount
Single Family $1,284.00 per unit
Multi-Family $821.00 per unit
Hotel/Motel $937.00 per unit
Non-Residential $0.28 per sq. ft.

Table II-7: Citywide Drainage Facilities Fee by Land Use for Projects Submitted After July 16, 2018 (Fund 307)
Land Use Fee Amount
Single Family $963.00 per unit
Multi-Family $367.00 per unit
Commercial/Office/Retail $300.00 per 1,000 bldg. sq. ft.

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

Hotel/Motel $213.00 per room

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
8 Table II-8: Citywide Drainage Facilities Fee by Land Use for Projects Submitted After April 2, 2022 (Fund 307)
Land Use Fee Amount
Single Family $1,387.00 per unit
Multi-Family $529.00 per unit
Commercial/Office/Retail $300.00 per 1,000 bldg. sq. ft.

Industrial $910.00 per 1,000 bldg. sq. ft.

Hotel/Motel $306.00 per room

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

Tables 1 and 2 in Appendix B list the beginning and ending fund balances for the Citywide Drainage Facilities Fee Accounts from Fiscal Year 2017-2018 through Fiscal Year 2021-2022.

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

Tables 1 and 2 in Appendix B show the amount of Citywide Drainage Facilities Fees collected, interest earned, and miscellaneous income during Fiscal Years 2017-2018 through 2021-2022.

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

No projects were funded by the Citywide Drainage Facilities Fees in Fiscal Year 2021-2022.

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

Table II-9: Fiscal Year 2021-2022 Citywide Drainage
Facilities Incomplete Projects with Sufficient Funding

The City has determined that it has or will obtain sufficient funds to finance such projects.

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

ESTIMATED ESTIMATED EST IMATED AMOUNT TO BE

CONSTRUCTION CONSTRUCTION TO TAL FUNDED BY

START COMPLETION COS T IMPACT FEES
Walnut Street - H-01 Retention Basin 2021-2022 TB D 1,322,755 1,144,659

PROJECT

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
9 No transfers or loans were made from the Citywide Drainage Facilities Fee Accounts in Fiscal Year 2021-2022.

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

No refunds were made from the Citywide Drainage Facilities Fee Accounts in Fiscal Year 2021-2022.

C. A-04 Drainage Facilities

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

The A-04 Drainage Facilities will serve the residents of Hesperia by providing new drainage systems and improvements to existing drainage facilities in the area identified by the City as the A-04 drainage area in order to mitigate the impacts of new development on the existing drainage facilities. The A-04 drainage facilities to be financed include components for new detention basins, storm drain systems, street crossings, and flood control basins.

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

2. Amount of the Impact Fees.

Table II-10: A-04 Drainage Facilities Fee by Land Use (Fund 313)

Land Use Fee Amount
Single Family $10,539.00 per unit
Multi-Family $5,018.63 per unit
Non-Residential $2,462.65 per 1,000 bldg. sq. ft.

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

Table 1 in Appendix C lists the beginning and ending fund balances for the A -04 Drainage Facilities Fee Accounts from Fiscal Year 201 7-2018 through Fiscal Year 2021-2022.

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

Table 1 in Appendix C shows the amount of A -04 Drainage Facilities Fees collected, interest earned, and miscellaneous income during Fiscal Years 2017-2018 through 2021-2022.

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

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
10 Table II-11: Fiscal Year 2021-2022 A-04 Drainage
Facilities Fee Expenditures

Project

Amount
Percentage of
Project Funded
by Fees
A-04 Drainage Program $5,415 100%
Total $5,415 N/A

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

The City has determined that no projects currently have sufficient funds to finance construction.

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

No transfers or loans were made from the A -04 Drainage Facilities Fee Accounts in Fiscal Year 2021-2022.

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

No refunds were made from the A-04 Drainage Facilities Fee Accounts in Fiscal Year 2021-2022.

D. Fire Facilities

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

The Fire Facilities includes those facilities used by the City to protect life and property.

The City identifies the need for additional fire protection facilities as build out of the community occurs. In order to serve new development through build out in Hesperia, the City identified the need for one new fire station and expansion of existing fire stations.

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
11 2. Amount of the Impact Fees.

Table II-12: Fire Facilities Fee by Land Use for Projects Submitted Prior to July 16, 2018 (Fund 302)

Land Use Fee Amount
Single Family $1,425.00 per unit
Multi-Family $912.00 per unit
Hotel/Motel $1,054.00 per unit
Non-Residential $0.31 per sq. ft.

Table II-13: Fire Facilities Fee by Land Use for Projects Submitted After July 16, 2018 (Fund 308)

Land Use Fee Amount
Single Family $648.00 per unit
Multi-Family $491.00 per unit
Commercial/Office/Retail $187.00 per 1,000 bldg. sq. ft.

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

Hotel/Motel $88.00 per room

Table II-14: Fire Facilities Fee by Land Use for Projects Submitted After April 2, 2022 (Fund 308)

Land Use Fee Amount
Single Family $648.00 per unit
Multi-Family $491.00 per unit
Commercial/Office/Retail $187.00 per 1,000 bldg. sq. ft.

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

Hotel/Motel $437.00 per room

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

Tables 1 and 2 in Appendix D list the beginning and ending fund balances for the Fire Facilities Fee Accounts from Fiscal Year 2017-2018 through Fiscal Year 2021- 2022.

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

Tables 1 and 2 in Appendix D show the amount of Fire Facilities Fees collected, interest earned, and miscellaneous income during Fiscal Years 2017-2018 through 2021-2022.

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

No projects were funded by the Fire Facilities Fees in Fiscal Year 2021-2022.

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
12 6. Identification of an approximate date by which the construction of project(s) of the City will commence if the City determines that sufficient funds have been collected to complete financing on an incomplete project of the City, as identified in paragraph (2) of subdivision (A) of Section 66001, and the project of the City remains incomplete.

The City has determined that no projects currently have sufficient funds to finance construction.

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

No transfers or loans were made from the Fire Facilities Fee Accounts in Fiscal Year 2021-2022.

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

No refunds were made from the Fire Facilities Fee Accounts in Fiscal Year 2021-2022.

E. Police Facilities

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

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

2. Amount of the Impact Fees.

Table II-15: Police Facilities Fee by Land Use for Projects Submitted Prior to July 16, 2018 (Fund 303)

Land Use Fee Amount
Single Family $423.00 per unit
Multi-Family $272.00 per unit
Hotel/Motel $313.00 per unit
Non-Residential $0.09 per sq. ft.

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
13 Table II-16: Police Facilities Fee by Land Use for Projects Submitted After July 16, 2018 (Fund 312)

Land Use Fee Amount
Single Family $10.00 per unit
Multi-Family $8.00 per unit
Commercial/Office/Retail $4.00 per 1,000 bldg. sq. ft.

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

Hotel/Motel $2.00 per room

Table II-17: Police Facilities Fee by Land Use for Projects Submitted After April 2, 2022 (Fund 312)

Land Use Fee Amount
Single Family $10.00 per unit
Multi-Family $8.00 per unit
Commercial/Office/Retail $4.00 per 1,000 bldg. sq. ft.

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

Hotel/Motel $8.00 per room

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

Tables 1 and 2 in Appendix E list the beginning and ending fund balances for the Police Facilities Fee Accounts from Fiscal Year 2017- 2018 through Fiscal Year 2021-2022.

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

Tables 1 and 2 in Appendix E show the amount of Policies Facilities Fees collected, interest earned, and miscellaneous income during Fiscal Years 2017-2018 through 2021-2022.

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

Table II-18: Fiscal Year 2021-2022 Police Facilities Fee Expenditures
Project Amount
Percentage of
Project Funded
by Fees
Automated License Plate Reader (ALPR)
Fixed Cameras for two Intersections $23,936 17%
Honda CRF450 Off-Highway Motorcycles $6,282 27%
Total $30,218 N/A

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
14 6. Identification of an approximate date by which the construction of project(s) of the City will commence if the City determines that sufficient funds have been collected to complete financing on an incomplete project of the City, as identified in paragraph (2) of subdivision (A) of Section 66001, and the project of the City remains incomplete.

The City has determined that no projects currently have sufficient funds to finance construction.

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

No transfers or loans were made from the Police Facilities Fee Accounts in Fiscal Years 2021-2022.

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

No refunds were made from the Police Facilities Fee Accounts in Fiscal Years 2021-2022.

F. Public and City Hall Facilities

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

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

2. Amount of the Impact Fees.

Table II-19: Public Facilities Fee by Land Use for Projects Submitted Prior to July 16, 2018 (Fund 304)

Land Use Fee Amount
Single Family $1,109.00 per unit
Multi-Family $710.00 per unit
Hotel/Motel $810.00 per unit
Non-Residential $0.24 per sq. ft.

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
15 Table II-20: City Hall Facilities Fee by Land Use for Projects Submitted After July 16, 2018 (Fund 309)

Land Use Fee Amount
Single Family $530.00 per unit
Multi-Family $424.00 per unit
Commercial/Office/Retail $194.00 per 1,000 bldg. sq. ft.

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

Hotel/Motel $81.00 per room

Table II-21: City Hall Facilities Fee by Land Use for Projects Submitted After April 2, 2022 (Fund 309)

Land Use Fee Amount
Single Family $546.00 per unit
Multi-Family $424.00 per unit
Commercial/Office/Retail $194.00 per 1,000 bldg. sq. ft.

Industrial $856.00 per 1,000 bldg. sq. ft.

Hotel/Motel $412.00 per room

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

Tables 1 and 2 in Appendix F list the beginning and ending fund balances for the Public and City Hall Facilities Fee Accounts from Fiscal Year 2017-2018 through Fiscal Year 2021-2022.

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

Tables 1 and 2 in Appendix F show the amount of Public and City Hall Facilities Fees collected, interest earned, and miscellaneous income during Fiscal Years 2017-2018 through 2021-2022.

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

Table II-22: Fiscal Year 2021-2022 Public and City Hall Facilities Fee Expenditures

Project

Amount
Percentage of
Project Funded
by Fees
General Fund Loan Interest Payments 1 $16,790 100%
Total $16,790 N/A

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
16 Note:

1. In October 2013, the Hesperia Joint Public Finance Authority issued the 2013 Refunding Lease Revenue Bonds to refinance the previous 2005 Civic Plaza Certificates of Participation. As with the prior 2005 Certificates of Participation, Impact Fees would continue to fund 87.25% of the annual debt service, with the General Fund contributing the remaining 12.75%. The bonds interest rates are fixed, ranging from 2.00% to 5.00%. The original principal amount was $12,445,000. As of June 30, 2022, the outstanding principal balance was $10,035,000. Beginning in Fiscal Year 2014-2015, Impact Fees were insufficient to fully fund the 87.25% contribution. As a result, a loan from the General Fund was issued so that the required contribution for the annual bond debt service payment could be made. The loan amount will increase annually until Impact Fees are sufficient to make the full 87.25% contribution and includes interest calculated at the Local Agency Investment Fund (LAIF) rate. During FY 2021 -22, the General Fund Loan to City Hall Facilities DIF increased by $470,000, for a June 30, 2022 balance of $4,173,324.

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

The City has determined that no projects currently have sufficient funds to finance construction.

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

Table II -23: Fiscal Year 2021- 2022 Public and City Hall Facilities Interfund Transfers
Description of Project for which
Interfund Transfer will be Used
Funds(s) from
Which Fees were
Transferred
Fund(s) to Which
Fees were
Transferred
Total Amount
Transferred
2013 Bonds Debt Service
Payments
Fund 309 Fund 403 $756,501
2013 Bonds Debt Service
Payments 1
Fund 304 Fund 309 $1,461
Total N/A N/A $757,962
Note:

1. Residual Impact Fee funds received in Fund 304 were transferred to Fund 309. These transferred funds were moved to aid Fund 309 in making the 2013 Bonds Debt Service annual payment .

No loans were made from the Public and City Hall Facilities Fee Accounts in Fiscal Year 2021-2022.

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
17 8. The amount of refunds made or revenues allocated for other purposes if the administrative costs of refunding unexpended revenues exceed the amount to be refunded.

No refunds were made from the Public and City Hall Facilities Fee Accounts in Fiscal Year 2021-2022.

G. Animal Control Facilities

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

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

2. Amount of the Impact Fees.

Table II-24: Animal Control Facilities Fee by Land Use Submitted Prior to April 2, 2022 (Fund 310)

Land Use Fee Amount
Single Family $223.00 per unit
Multi-Family $176.00 per unit
Commercial/Office/Retail $0.00 per 1,000 bldg. sq. ft.

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

Hotel/Motel $0.00 per room

Table II-25: Animal Control Facilities Fee by Land Use Submitted After April 2, 2022 (Fund 310)

Land Use Fee Amount
Single Family $227.00 per unit
Multi-Family $176.00 per unit
Commercial/Office/Retail $0.00 per 1,000 bldg. sq. ft.

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

Hotel/Motel $0.00 per room

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

Table 1 in Appendix G lists the beginning and ending fund balances for the Animal Control Facilities Fee Account from Fiscal Year 2017- 2018 through Fiscal Year 2021-2022.

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

Table 1 in Appendix G shows the amount of Animal Control Facilities Fees collected, interest earned, and miscellaneous income during Fiscal Years 2017-2018 through 2021-2022.

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
18 5. Identification of each improvement on which Impact Fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of each project of the City that was funded with Impact Fees.

No projects were funded by the Animal Control Facilities Fees in Fiscal Year 2021-2022.

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

The City has determined that no projects currently have sufficient funds to finance construction.

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

No transfers or loans were made from the Animal Control Facilities Fee Account in Fiscal Year 2021-2022.

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

No refunds were made from the Animal Control Facilities Fee Account in Fiscal Year 2021-2022.

H. Records Storage Facilities

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

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

2. Amount of the Impact Fees.

Table II-26: Records Storage Facilities Fee by Land Use Submitted Prior to April 2, 2022 (Fund 311)

Land Use Fee Amount
Single Family $26.00 per unit
Multi-Family $20.00 per unit
Commercial/Office/Retail $9.00 per 1,000 bldg. sq. ft.

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

Hotel/Motel $4.00 per room

SECTION II FISCAL YEAR 2021-2022 ANNUAL REPORT
City of Hesperia
AB 1600 Annual Report
19 Table II-27: Records Storage Facilities Fee by Land Use Submitted After April 2, 2022 (Fund 311)

Land Use Fee Amount
Single Family $26.00 per unit
Multi-Family $20.00 per unit
Commercial/Office/Retail $9.00 per 1,000 bldg. sq. ft.

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

Hotel/Motel $20.00 per room

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

Table 1 in Appendix H lists the beginning and ending fund balances for the Records Storage Facilities Fee Account from Fiscal Year 2017-2018 through Fiscal Year 2021-2022.

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

Table 1 in Appendix H shows the amount of Records Storage Facilities Fees collected, interest earned, and miscellaneous income during Fiscal Years 2017-2018 through 2021-2022.

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

No projects were funded by the Records Storage Facilities Fees in Fiscal Year 2021-2022.

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

The City has determined that no projects currently have sufficient funds to finance construction.

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

No transfers or loans were made from the Records Storage Facilities Fee Account in Fiscal Year 2021-2022.

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

No refunds were made from the Records Storage Facilities Fee Account in Fiscal Year 2021-2022.

APPENDIX A
City of Hesperia
Government Code Sections 66001 and 66006 Annual Report
Fiscal Year 2021-2022

TRANSPORTATION

FACILITIES FEE

FINANCIAL SUMMARY
REPORT

APPENDIX A
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEAR 2021-2022

TRANSPORTATION FACILITIES

LAST FIVE FISCAL YEARS
Table 1: Transportation Facilities Transaction Detail (Fund 300) [2]

[2]

[1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. [2] Includes the return of the Army Corps of Engineers habitat deposit related to the completion of the Ranchero Road Interchange project.

Table 2: Transportation Facilities Transaction Detail (Fund 306)

[1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm.

Page A-1

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 [1] TOTAL Beginning Balance (7/1) $0 $0 $790,110 $4,092,581 $6,622,490 $0 Sources of Funds
Fee Revenues $0 $783,151 $3,264,329 $2,504,287 $5,066,812 $11,618,579 Interest Income $0 $6,959 $38,142 $25,622 ($81,642) ($10,919) Other Income $0 $0 $0 $0 $0 $0
Total Sources of Funds $0 $790,110 $3,302,471 $2,529,909 $4,985,170 $11,607,660 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 (1,309,578) (1,309,578) Street Maintenance $0 $0 $0 $0 - - Loan Interest Expense $0 $0 $0 $0 (40,714) (40,714) Loan Principal Payment $0 $0 $0 $0 (1,876,240) (1,876,240) Refund of Fees $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 (3,226,532) (3,226,532) Ending Balance (6/30) $0 $790,110 $4,092,581 $6,622,490 $8,381,128 $8,381,128

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 [1] TOTAL Beginning Balance (7/1) $9,836,945 $12,472,017 $12,288,836 $10,710,591 $8,212,475 $9,836,945 Sources of Funds
Fee Revenues $3,389,227 $2,052,777 $379,945 $212,399 $12,885 $6,047,233 Interest Income $51,434 $118,684 $75,413 $12,119 ($9,413) $248,237 Other Income $0 $0 $350,000 $0 $3,367 $353,367
Total Sources of Funds $3,440,661 $2,171,461 $805,358 $224,518 $6,839 $6,648,837 Uses of Funds
Capital Improvement Projects (805,589) (47,695) (91,119) (659,896) (24,076) (1,628,375) Loan Interest Expense $0 (430,707) (416,244) (186,498) $0 (1,033,449) Loan Principal Payment $0 (1,876,240) (1,876,240) (1,876,240) $0 (5,628,720) Refund of Fees $0 $0 $0 $0 $0 $0
Total Uses of Funds (805,589) (2,354,642) (2,383,603) (2,722,634) (24,076) (8,290,544) Ending Balance (6/30) $12,472,017 $12,288,836 $10,710,591 $8,212,475 $8,195,238 $8,195,238

APPENDIX B
City of Hesperia
Government Code Sections 66001 and 66006 Annual Report
Fiscal Year 2021-2022

CITYWIDE DRAINAGE

FACILITIES FEE

FINANCIAL SUMMARY
REPORT

APPENDIX B
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEAR 2021-2022

CITYWIDE DRAINAGE FACILITIES

LAST FIVE FISCAL YEARS
Table 1: Citywide Drainage Facilities Transaction Detail (Fund 301)

[2]

[1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. [2] Includes a $18,115 reimbursement from a developer for Southern California Edison license fees paid by the City and $183 in property tax refunds for land purchases.

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

[1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm.

Page B-1

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 [1] TOTAL Beginning Balance (7/1) $0 $0 $76,152 $337,065 $555,240 $0 Sources of Funds
Fee Revenues $0 $75,481 $257,608 $216,074 $943,081 $1,492,244 Interest Income $0 $671 $3,305 $2,101 ($13,905) ($7,828) Other Income $0 $0 $0 $0 $0 $0
Total Sources of Funds $0 $76,152 $260,913 $218,175 $929,176 $1,484,416 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0
Refund of Fees $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 $0
Ending Balance (6/30) $0 $76,152 $337,065 $555,240 $1,484,416 $1,484,416

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 [1] TOTAL Beginning Balance (7/1) $2,515,552 $2,927,323 $3,185,411 $3,058,712 $3,047,930 $2,515,552 Sources of Funds
Fee Revenues $469,190 $272,358 $48,619 $29,708 $1,702 $821,577 Interest Income $34,522 $66,279 $55,206 $14,649 ($26,709) $143,947 Other Income $0 $18 $0 $18,280 $31,555 $49,853
Total Sources of Funds $503,712 $338,655 $103,825 $62,637 $6,548 $1,015,377 Uses of Funds
Capital Improvement Projects (36,387) (80,567) (230,524) (73,419) $0 (420,897) Capital Outlay ($55,486) $0 $0 $0 $0 (55,486)
Contract Services ($68) $0 $0 $0 $0 (68)
Refund of Fees $0 $0 $0 $0 $0 $0
Total Uses of Funds (91,941) (80,567) (230,524) (73,419) - (476,451) Ending Balance (6/30) $2,927,323 $3,185,411 $3,058,712 $3,047,930 $3,054,478 $3,054,478

APPENDIX C
City of Hesperia
Government Code Sections 66001 and 66006 Annual Report
Fiscal Year 2021-2022

A-04 DRAINAGE

FACILITIES FEE

FINANCIAL SUMMARY
REPORT

Page C-1

APPENDIX C
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEAR 2021-2022
A-04 DRAINAGE FACILITIES

LAST FIVE FISCAL YEARS
Table 1: A-04 Drainage Facilities Transaction Detail (Fund 313)

[2]

[2]

[1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. [2] A developer with plans to build residential properties within the City secured a tax -exempt bond through a Statewide Community Infrastructure Program (SCIP) in which the developer and City both participated, but for which the City has no repayment obligation in any form. The bonds were issued to finance development impact fees due from the developer of the project to the City. As a result of the bond issue which closed during Fiscal Year 2021-2022, $959,049 in development impact fees received during Fiscal Year 2020- 2021 were subsequently required to be transferred to the bond trustee in Fiscal Year 2021-2022; therefore, deferred revenue was recorded as of 6/30/2021. Draws against bond proceeds will begin as progress is made on capital improvements within the A -04 drainage area.

FISCAL YEAR FISCAL YEAR FI SCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 [1] TOTAL Beginning Balance (7/1) $0 $0 $0 $0 $948,687 $0
S
ources of Funds
Fee Revenues $0 $0 $0 $0 $73,780 $73,780
Interest Income $0 $0 $0 $1,086 ($78) $1,008
Other Income $0 $0 $0 $959,049 $0 $959,049
Total Sources of Funds $0 $0 $0 $960,135 $73,702 $1,033,837 Uses of Funds
Capital Improvement Projects $0 $0 $0 ($11,448) ($5,415) ($16,863) Capital Outlay-Land $0 $0 $0 $0 $0 $0
Other Uses of Funds $0 $0 $0 $0 ($959,049) ($959,049)
Refund of Fees $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 ($11,448) ($964,464) ($975,912) Ending Balance (6/30) $0 $0 $0 $948,687 $57,925 $57,925

APPENDIX D
City of Hesperia
Government Code Sections 66001 and 66006 Annual Report
Fiscal Year 2021-2022

FIRE FACILITIES FEE

FINANCIAL SUMMARY
REPORT

Page D-1

APPENDIX D
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEAR 2021-2022

FIRE FACILITIES

LAST FIVE FISCAL YEARS
Table 1: Fire Facilities Transaction Detail (Fund 302)

[1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm.

Table 2: Fire Facilities Transaction Detail (Fund 308)

[1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm.

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 [1] TOTAL Beginning Balance (7/1) $941,012 $1,152,851 $1,349,407 $1,406,317 $1,439,518 $941,012 Sources of Funds
Fee Revenues $198,235 $169,543 $32,588 $26,438 $1,884 $428,688 Interest Income $13,604 $27,013 $24,322 $6,763 ($12,789) $58,913 Other Income $0 $0 $0 $0 $0 $0
Total Sources of Funds $211,839 $196,556 $56,910 $33,201 ($10,905) $487,601 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0
Refund of Fees $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 $0
Ending Balance (6/30) $1,152,851 $1,349,407 $1,406,317 $1,439,518 $1,428,613 $1,428,613

FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 [1] TOTAL Beginning Balance (7/1) $0 $0 $51,488 $263,389 $424,930 $0 Sources of Funds
Fee Revenues $0 $51,035 $209,576 $159,891 $1,189,117 $1,609,619 Interest Income $0 $453 $2,325 $1,650 ($15,223) ($10,795) Other Income $0 $0 $0 $0 $0 $0
Total Sources of Funds $0 $51,488 $211,901 $161,541 $1,173,894 $1,598,824 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0
Refund of Fees $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 $0
Ending Balance (6/30) $0 $51,488 $263,389 $424,930 $1,598,824 $1,598,824

APPENDIX E
City of Hesperia
Government Code Sections 66001 and 66006 Annual Report
Fiscal Year 2021-2022

POLICE FACILITIES FEE

FINANCIAL SUMMARY
REPORT

APPENDIX E
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEAR 2021-2022

POLICE FACILITIES

LAST FIVE FISCAL YEAR
Table 1: Police Facilities Transaction Detail (Fund 303)

[1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm.

Table 2: Police Facilities Transaction Detail (Fund 312)

[1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm.

Page E-1

FISCAL YEAR FISCAL YEAR FI SCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 [1] TOTAL Beginning Balance (7/1) $286,542 $349,539 $408, 017 $21,082 $23,062 $286,542 Sources of Funds
Fee Revenues $58,870 $50,304 $9,657 $8,017 $546 $127,394 Interest Income $4,127 $8,174 $1,808 $91 $8 $14,208
Other Income $0 $0 $0 $0 $0 $0
Total Sources of Funds $62,997 $58,478 $11,465 $8,108 $554 $141,602 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0
Capital Outlay-Equipment $0 $0 $0 ($6,128) ($23,330) ($29,458) Materials & Operations $0 $0 ($398,400) $0 $0 ($398,400) Refund of Fees $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 ($398,400) ($6,128) ($23,330) ($427,858) Ending Balance (6/30) $349,539 $408,017 $21,082 $23,062 $286 $286

FISCAL YEAR FISCAL YEAR FI SCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 [1] TOTAL Beginning Balance (7/1) $0 $0 $795 $4,316 $6, 874 $0
Sources of Funds
Fee Revenues $0 $788 $3,483 $2,531 $20,551 $27,353
Interest Income $0 $7 $38 $27 ($196) ($124)
Other Income $0 $0 $0 $0 $0 $0
Total Sources of Funds $0 $795 $3,521 $2,558 $20,355 $27,229 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0
Capital Outlay-Equipment $0 $0 $0 $0 ($6,888) ($6,888)
Refund of Fees $0 $0 $0 $0 $0 $0
Operating Transfers Out $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 ($6,888) ($6,888)
Ending Balance (6/30) $0 $795 $4,316 $6,874 $20,341 $20,341

APPENDIX F
City of Hesperia
Government Code Sections 66001 and 66006 Annual Report
Fiscal Year 2021-2022

PUBLIC AND CITY HALL

FACILITIES FEE

FINANCIAL SUMMARY
REPORT

APPENDIX F
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEAR 2021-2022

PUBLIC AND CITY HALL FACILITIES

LAST FIVE FISCAL YEARS
Table 1: Public Facilities Transaction Detail (Fund 304)

[1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. [2] Beginning in Fiscal Year 2014-2015, Impact Fees were insufficient to fully fund the 87.25% contribution. As a result, a loan from the General Fund was issued so that the required contribution for the annual bond debt service payment could be made. The amount shown above includes $3,304,783 in funds transferred from Fund 309 to Fund 304. This was done in order to move the City's General Fund loan debt accumulated under Fund 304 to Fund 309 so that Fund 304 can be closed.
[3] Includes $2,045,030 in annual debt service payments on the bonds transferred to Fund 403. A total of $3,409,686 has been transferred to Fund 403 for debt service payments since Fiscal Year 2015-2016. Fund 403 is a City non-Impact Fee fund used to pay annual debt service on the 2013 Refunding Lease Revenue Bonds.

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

[1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm. [2] Includes $1,467,920 in annual debt service payments on the bonds transferred to Fund 403 and $3,304,783 in funds transferred to Fund 304. [3] Reflects General Fund loan debt accumulated in order to cover the shortfall in the required 87.25% contribution from Impact Fees. The General Fund loan amount will increase annually until Impact Fees are sufficient to make the full 87.25% contribution.

[2]

[3]

[2]

[2]
Page F-1

APPENDIX G
City of Hesperia
Government Code Sections 66001 and 66006 Annual Report
Fiscal Year 2021-2022

ANIMAL CONTROL

FACILITIES FEE

FINANCIAL SUMMARY
REPORT

APPENDIX G
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEAR 2021-2022

ANIMAL CONTROL FACILITIES

LAST FIVE FISCAL YEAR

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

[1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm.

Page G-1

FISCAL YEAR FISCAL YEAR FI SCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 [1] TOTAL Beginning Balance (7/1) $0 $0 $17,726 $74, 663 $128,288 $0 Sources of Funds
Fee Revenues $0 $17,570 $56,249 $52,977 $79,120 $205,916 Interest Income $0 $156 $688 $648 ($1,855) ($363)
Other Income $0 $0 $0 $0 $0 $0
Total Sources of Funds $0 $17,726 $56,937 $53,625 $77,265 $205,553 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0
Refund of Fees $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 $0
Ending Balance (6/30) $0 $17,726 $74,663 $128,288 $205,553 $205,553

APPENDIX H
City of Hesperia
Government Code Sections 66001 and 66006 Annual Report
Fiscal Year 2021-2022

RECORDS STORAGE

FACILITIES FEE

FINANCIAL SUMMARY
REPORT

APPENDIX H
GOVERNMENT CODE SECTION 66006

ANNUAL REPORT
FISCAL YEARS 2015-2016 THROUGH 2020-2021

RECORDS STORAGE FACILITIES

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

[1] Unaudited and subject to change pending the completion of the annual audit from an independent audit firm.

Page H-1

FISCAL YEAR FISCAL YEAR FI SCAL YEAR FISCAL YEAR FISCAL YEAR DESCRIPTION 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 [1] TOTAL Beginning Balance (7/1) $0 $0 $2,066 $10, 923 $17,479 $0 Sources of Funds
Fee Revenues $0 $2,048 $8,761 $6,487 $52,621 $69,917
Interest Income $0 $18 $96 $69 ($664) ($481)
Other Income $0 $0 $0 $0 $0 $0
Total Sources of Funds $0 $2,066 $8,857 $6,556 $51,957 $69,436 Uses of Funds
Capital Improvement Projects $0 $0 $0 $0 $0 $0
Refund of Fees $0 $0 $0 $0 $0 $0
Total Uses of Funds $0 $0 $0 $0 $0 $0
Ending Balance (6/30) $0 $2,066 $10,923 $17,479 $69,436 $69,436

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City of Hesperia

STAFF REPORT

DATE: December 20, 2022
TO: Mayor and City Council Members

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

SUBJECT: Receive and File the Local Agency Special Tax and Bond Accountability Act Report (SB 165) for the Fiscal Year Ended June 30, 2022

RECOMMENDED ACTION

It is recommended that the City Council receive and file the Communities Facilities District (CFD) 2005-1 (Belgate Development Restructuring) Local Agency Special Tax and Bond Accountability Act Report (SB 165) for the Fiscal Year Ended June 30, 2022.

BACKGROUND

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

On August 10, 2003, the City entered into a Workout Agreement with Hesperia-ET Ventures, LLC to restructure the defaulted 1992 Bonds from CFD 91 -3. Because delinquent principal and interest on the 1992 Bonds continued to accrue since issuance, the amount to defease and redeem the 1992 Bonds exceeded $18 million. In order to extend the maturity of the bonds and implement a new development plan, a new CFD was formed for the purpose of refunding the 1992 Bonds. In 2005, CFD 2005 -1 was formed and the related CFD 2005 -1 (Belgate Development Restructuring) $18,554,508 Special Tax Bonds, 2 005 Series A were issued to refinance and restructure the 1992 Bonds.

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

ISSUES/ANALYSIS

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

Staff Report to the City Council
Receive and File the Local Agency Special Tax and Bond Accountability Act Report (SB 165) for the Fiscal Year Ended June 30, 2022
December 20, 2022

local agency levying the special tax and/or issuing a bond measure and shall contain a description of the following:

1. The amount of the funds collected and expended.

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

In compliance with SB 165, the CFD 2005-1 report for the Fiscal Year (FY) Ended June 30, 2022 is provided as Attachment 1 to this staff report and includes information regarding the total amount of annual Special Taxes collected and expended during FY 2021-22, as well as the status of projects authorized by the bonds.

FISCAL IMPACT

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

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

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

City of Hesperia
2022/23 Annual Report - CFD No. 2005-1 (Belgate Development Restructuring) SB 165: LOCAL AGENCY SPECIAL TAX AND BOND

ACCOUNTABILITY ACT
Senate Bill 165 enacted the Local Agency Special Tax and Bond Accountability Act. This Act requires that any local special tax/local bond measure subject to voter approval contain a statement indicating the specific purposes of the special tax, require that the proceeds of the special tax be applied to those purposes, require the creation of an account into which the proceeds shall be deposited, and require an annual report containing specified information concerning the use of the proceeds. The Act only applies to bonds issued on or after January 1, 2001, in accordance with Section 53410 of the California Government Code.

Some of the requirements of the Act are handled at the formation (bond issuance) of the Special Tax District and others are handled through annual reports. This Report intends to comply with Section 53411 of the California Government Code that states:
“The chief fiscal officer of the issuing local agency shall file a report with its governing body no later than January 1, 2002, and at least once a year thereafter. The Annual report shall contain all of the following:

1. The amount of funds collected and expended.

2. The status of any project required or authorized to be funded as identified in subdivision (a) of Section 53410.”
The requirements of the Act apply to the Funds of:

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

Collections and Expenditures
Fund Name
06/30/2021
Balance
Amount
Collected
Amount
Expended
06/30/2022
Balance
Special Tax Fund $1,569,805.92 $1,912,173.29 (1) $1,860,605.61 $1,621,373.60 (1) Total amount collected is from all sources.

Fund Name Initial Deposit
6/30/2022
Balance
Amount
Expended Status
Escrow Fund $17,826,791.11 $0.00 $17,826,791.11 Closed
Costs of Issuance Fund 148,549.94 0.00 148,549.94 Closed Administrative Expense Fund 15,000.00 0.00 15,000.00 Ongoing Reserve Fund 1,428,212.50 1,453,372.77 0.00 Ongoing
Attachment 1

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT

DATE: December 20, 2022
TO: Mayor and Council Members
Chair and Board Members, Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Board Members, Hesperia Housing Authority
Chair and Board Members, Hesperia Water District
Chair and Commissioners, Community Development Commission

FROM: Nils Bentsen, City Manager
BY: Melinda Sayre, Director of Government Services/City Clerk Erin Baum, Assistant City Clerk

SUBJECT: Cancellation of January 3, 2023 and July 4, 2023 City Council and Subsidiary District Meetings

RECOMMENDED ACTION

It is recommended that the City Council, the Board of Directors of the Successor to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, and Hesperia Water District, and the Board of Commissioners of the Hesperia Community Development Commission, cancel the regularly scheduled January 3, 20 23 meeting for a lack of items, and the July 4, 2023 meeting, due to its falling on a legal Holiday.

ALTERNATIVES:

1. Give alternative direction to staff.

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT

DATE: December 20, 2022
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina Assistant City Manager
Ryan Leonard, Senior Planner

SUBJECT: Appeal to the City Council (APP22-00002); Applicant Pacific Communities Builder; APNs: 3046-011-06

RECOMMENDED ACTION

It is recommended that the City Council adopt Resolution No. 2022-81, denying appeal APP22- 00002 and upholding the Planning Commission and Development Review Committee (DRC) denial of a second extension of time for Tentative Tract No. 16505 (TTE22-00003).

BACKGROUND

Proposal: On November 8, 2022 the Planning Commission voted 2 -1 (Commissioner’s Bartz and Dunbar were absent; Commissioner Steeno abstained) to uphold the DRC’s denial of a second extension of time for TT-16505. The Planning Commission denied the extension of time for the reasons that are listed below in this staff report. Although the applicant is requesting that the City Council grant this appeal to overturn the Planning Commission’s denial, the City Council is precluded from granting a discretionary extension of time.

Current General Plan, Zoning and Land Uses: The project is located at the southeast corner of Muscatel Street and Afton Avenue. The site is within Single Family Residential (R1) zone. The surrounding land is designated as noted on Attachment 1. The property is currently vacant. The land to the west, east, and south are vacant. The land to the north on the opposite side of Muscatel Street consists of single-family residences (Attachment 2).

Project Approval Timelines:
 On December 9, 2008, the Planning Commission approved TT-16505 to subdivide 5 gross acres into 17 single-family residential lots. The smallest lot was 7,202 square feet, the largest lot was 13,337 square feet and the average lot size was 8,522 square feet . TT- 16505 was approved for 3 years and was set to expire on December 19, 2011.

 In 2009, 2011 , and 2013 the California Legislature passed assembly bills automatically extending the expiration dates of tentative maps. These automatic extensions amounted to 6 years of automat ic State extensions. The automatic extensions are in addition to multiple City discretionary extensions that are allowed by the Subdivision Map Act. The Subdivision Map Act allows the City to extend a tentative tract map for a maximum of 6 total years. The 6 years is a cumulative total, and the extensions of time may be broken up into multiple increments.

Staff Report to the City Council
APP22-00002
December 20, 2022

 On January 10, 2018, the DRC approved the first extension of time for TT-16505 that extended the tract for an additional 3 years.
 In 2020 the California Legislature passed Assembly Bill AB-1561 that granted an 18-month extension to residential entitlements that were otherwise due to expire before the end of 2021. AB -1561 was enacted as a result of the ongoing economic and administrative challenges created by the Covid -19 pandemic. Table 1 provides the chronological order of the entitlements for this project.

Table 1: Timeline of the Project Entitlement

ISSUES/ANALYSIS

In September 2020 , the applicant submitted grading plans and improvement plans to the Engineering Division for plan check. The grading plan and improvement plans were reviewed and returned to the applicant on 5 separate occasions, with each plan check containing various corrections. In June of 2022 the 5th plan check was returned to the applicant with corrections. City staff then informed the applicant that TR-16505 was determined to have officially expired.

On June 16, 2022, the applicant submitted an application for an extension of time. On June 29, 2022, the Development Review Committee denied the extension (Attachment 3) on the basis that the request was in conf lict with Measure N. Ballot Measure N was approved by City voters in November 2020. Measure N made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan, and City Municipal Code. Among other things, Measure N modified City Municipal Code Section 17.08.040 (E) to state that “ no extensions of time are allowed for residential subdivisions.” Measure N was approved by a majority of voters and therefore may only be amended by a subsequent ballot measure. As a result, there is no mechani sm in the Development Code that authorizes an approval process for any extensions of time. Furthermore, the Development Code may not be modified to allow for such an approval process.

It’s important to point out that while the City Council does not have the authority to approve a discretionary extension of time, the City Council is authorized under Government Code Section 65864 to enter into a development agreement that could extend the life of the tract. However, the applicant has not submitted an application for a development agreement. Furthermore, development agreements are customarily considered as part of the land use entitlement application at the time when the project is initially ap proved, not 12 years after the original approval. In addition, a pproving a development agreement for this purpose would set a questionable precedent and would be inconsistent with Measure N.

Land Use
Entitlement
Activity
Approval
Date
Effective
Date
Denial
Date
Expiration
Date
Length of
Extension
Tentative Tract No.
16505
12/09/2008 12/19/2008 12/19/2011 -
Assembly Bill 333;
AB-208; AB-116
6 years of automatic State extensions 12/19/17 6 years
TTE17-00019 01/10/2018 12/19/2020 3 years
Assembly Bill 1561 18-month automatic State extension 06/19/2022 18 months

Staff Report to the City Council
APP22-00002
December 20, 2022

CONCLUSION

The City Council does not have the authority to approve a discretionary extension of time. The City Council must uphold the Planning Commission’s denial of a second extension of time for Tentative Tract No. 16505.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENTS

1. Resolution No. 2022-81

2. Planning Commission Staff Report with Attachments

RESOLUTION NO. 2022-81

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, DENYING APPEAL APP2 2-00002, UPHOLDING THE PLANNING COMMISSION’S DENIAL OF TENTATIVE TRACT EXTENSION TTE22-00003, A SECOND EXTENSION OF TIME F OR TENTATIVE TRACT NO. 16505 LOCATED ON THE SOUTHEAST CORNER OF MUSCATEL
STREET AND AFTON AVENUE (APP22-00002)

WHEREAS, Pacific Communities Builder has filed an application requesting approval of Appeal APP22-00002, to overturn the Development Review Committee’s denial of Tentative Tract Extension TTE22-00003, a second extension of time for Tentative Tract No. 16505 described herein (hereinafter referred to as "Application"); and

WHEREAS, the Application applies to a second extension of time for Tentative Tract No. 16505 to subdivide 5 gross acres into 17 single-family residential lots and consists of Assessor's Parcel Number 3064-011-06; and

WHEREAS, TT-16505 was originally approved by the Planning Commission on December 9 , 2008; and

WHEREAS, in 2009, 2011, and 2013 the California Legislature passed assembly bills AB -333, AB-208 and AB -116 that automatically extended the expiration dates of tentative maps. These automatic extensions amounted to 6 years of automatic State extensions; and

WHEREAS, on January 10, 201 8, the Development Review Committee (DRC) approved the first extension of time for TT-16505 that extended the tract for an additional 3 years; and

WHEREAS, in 2020 the California Legislature passed Assembly Bill AB -1561 that granted an 18-month extension to residential entitlements that were otherwise due to expire before the end of 2021; and

WHEREAS, TT-16505 was set to expire on June 18, 2022; and

WHEREAS, on June 29, 2022, the DRC denied a second extension of time for TT-16505; and

WHEREAS, on November 10 , 2022, the Planning Commission upheld the DRC’s denial of a second extension of time for TT-16505; and

WHEREAS, this Application, as contemplated, proposes to appeal the Planning Commission’s denial of the extension of time for TT-16505; and

WHEREAS, the 5 gross acre site is currently vacant. The land to the west, east, and south are vacant. The land to the north on the opposite side of Muscatel Street consists of single -family residences; and

WHEREAS, the subject property is currently within the Single Family Residential (R1) zone; and

WHEREAS, in November 2020 a majority of voters of the City approved Ballet Measure N which made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan, and

Resolution No. 2022-81

City Municipal Code. Among other th ings, Measure N modified City Municipal Code Section

17.08.040 (E) to state that “no extensions of time are allowed for residential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a subsequent ballot measure. As a result, the City Council does not have the authority to approve any discretionary extensions of time; and

WHEREAS, denial of a project is exempt from the requirements of the California Environmental Quality Act; and

WHEREAS, on November 10, 2022, the Planning Commission of the City of Hesperia conducted duly noticed public hearings pertaining to the proposed Application, and concluded said hearing on that date; and

WHEREAS, on December 20, 2022, the City Council of the City of Hesperia conducted duly noticed public hearings pertaining to the proposed Application, and concluded said hearing on that date; and

WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

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

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

Section 2. Based upon substantial evidence presented to the City Council during the above-referenced December 20, 2022 hearing, including public testimony and written and oral staff reports, this Council specifically finds as follows:

(a) In November 2020 a majority of voters of the City approved Ballet Measure N which modified City Municipal Code Section 17.08.040 (E) to state that “no extensions of time are allowed for residential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a subsequent ballot measure. As a result, the City Council does not have the authority to approve any discretionary extensions of time.

Section 3. Based on the findings and conclusions set forth in this Resolution, th e City Council hereby denies Appeal APP22-00002, denying Tentative Tract Extension TTE22- 00003, causing Tentative Tract 16505 to expire.

Section 4. 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 on this 20th day of December 2022.

______________________________________ _______________________________ Brigit Bennington, Mayor
ATTEST:

Resolution No. 2022-81

____________________________________
Erin Baum, Assistant City Clerk

City of Hesperia

STAFF REPORT
DATE: November 10, 2022
TO: Planning Commission
FROM: Rachel Molina, Assistant City Manager
BY: Ryan Leonard, Senior Planner
SUBJECT: Appeal to the Planning Commission (APP22-00002); Applicant Pacific Communities Builder; APNs: 3046-011-06

RECOMMENDED ACTION
It is recommended t hat the Planning Commission adopt Resolution No . PC-2022-17, denying appeal APP 22-00002 and upholding the Development Review Committee (DRC) denial of a second extension of time for Tentative Tract No. 16505 (TTE22-00003).

BACKGROUND
Proposal: On June 29, 2022, the DRC denied an application for a second extension of time for TT-16505. The DRC denied the extension of time for the reasons that are listed below in this staff report. Although the applicant is requesting that the Planning Commission grant this appeal to overturn the DRC’s denial, the Planning Commission is precluded from granting an extension of time.

This item was previously scheduled for the September 8, 2022 Planning Commission meeting.

However, at the start of the hearing the applicant stated that they were not notified in advance of the Planning Commission hearing. This item was continued to the next Planning Commission hearing on November 10, 2022.

Current General Plan, Zoning and Land Uses: The project is located at the southeast corner of Muscatel Street and Afton Avenue. The site is within Single Family Residential (R1) zone. The surrounding land is designated as noted on Attachment 1. The property is currently vacant. The land to the west, east, and south are vacant. The land to the north on the opposite side of Muscatel Street consists of single-family residences (Attachment 2).

Project Approval Timelines:
 On December 9, 2008, the Planning Commission approved TT-16505 to subdivide 5 gross acres into 17 single-family residential lots. The smallest lot was 7,202 square feet, the largest lot was 13,337 square feet and the average lot size was 8,522 square feet . TT- 16505 was approved for 3 years and was set to expire on December 19, 2011.  In 2009, 2011 , and 2013 the California Legislature passed assembly bills automatically extending the expiration dates of tentative maps. These automatic extensions amounted to 6 years of automatic State extensions. The automatic extensions are in addition to multiple City discretionary extensions that are allowed by the Subdivision Map Act. The Subdivision Map Act allows the City to extend a tentative tract map for a maximum of 6

Attachment 2

Staff Report to the Planning Commission
APP22-00002
November 10, 2022

total years. The 6 years is a cumulative total, and the extensions of time may be broken up into multiple increments.

 On January 10, 2018, the DRC approved the first extension of time for TT-16505 that extended the tract for an additional 3 years.
 In 2020 the California Legislature passed Assembly Bill AB-1561 that granted an 18-month extension to residential entitlements that were otherwise due to expire before the end of 2021. AB -1561 was enacted as a result of the ongoing economic and administrative challenges created by the Covid -19 pandemic. Table 1 provides the chronological orde r of the entitlements for this project.

Table 1: Timeline of the Project Entitlement

ISSUES/ANALYSIS

In September 2020 , the applicant submitted grading plans and improvement plans to the Engineering Division for plan check. The grading plan and improvement plans were reviewed and returned to the applicant on 5 separate occasions, with each plan check containing various corrections. In June of 2022 the 5th plan check was returned to the applicant with corrections. City staff then informed the applicant that TR-16505 was determined to have officially expired.

On June 16, 2022, the applicant submitted an application for an extension of time. On June 29, 2022, the Development Review Committee denied the extension (Attachment 3) on the basis that the request was in conflict with Measure N. Ballot Measure N was approved by C ity voters in November 2020. Measure N made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan, and City Municipal Code. Among other things, Measure N modified City Municipal Code Section 17.08.040 (E) to state that “ no extensions of time are allowed for residential subdivisions.” Measure N was approved by a majority of voters and therefore may only be amended by a subsequent ballot measure. As a result, there is no mechanism in the Development Code that authorizes an approval process for any extensions of time. Furthermore, the Development Code may not be modified to allow for such an approval process.

The Planning Commission does not have the authority to approve any discretionary extensions of time, nor do they have the authority to authorize an amendment to the Development Code to allow for such an approval process.

CONCLUSION

Land Use
Entitlement
Activity
Approval
Date
Effective
Date
Denial
Date
Expiration
Date
Length of
Extension
Tentative Tract No.
16505
12/09/2008 12/19/2008 12/19/2011 -
Assembly Bill 333;
AB-208; AB-116
6 years of automatic State extensions 12/19/17 6 years
TTE17-00019 01/10/2018 12/19/2020 3 years
Assembly Bill 1561 18-month automatic State extension 06/19/2022 18 months

Staff Report to the Planning Commission
APP22-00002
November 10, 2022

The Planning Commission does not have the authority to overturn the DRC denial of Tentative Tract Extension TTE22 -00003. The Planning Commission must uphold the DRC’s denial of a second extension of time for Tentative Tract No. 16505.

ALTERNATIVE(S)

1. Refer this item to the City Council.

ATTACHMENTS

1. General Plan Map

2. Aerial Photo

3. DRC Denial Letter

4. Resolution No. PC-2022-17

APPLICANT(S): PACIFIC COMMUNITIES BUILDER FILE NO(S): APP22-00002 LOCATION: ON THE SOUTHEAST CORNER OF MUSCATEL STREET AND AFTON AVENUE.

APN(S):
3046-011-06
PROPOSAL: AN APPEAL TO THE PLANNING COMMISSION TO OVERTURN THE DEVELOPMENT REVIEW COMMITTEE'S DECISION TO DENY TTE22-00003, A SECOND EXTENSION OF TIME FOR TENTATIVE TRACT NO. 16505
N

GENERAL PLAN
ATTACHMENT 1

NINTH AVE SITE

APPLICANT(S): PACIFIC COMMUNITIES BUILDER FILE NO(S): APP22-00002 LOCATION: ON THE SOUTHEAST CORNER OF MUSCATEL STREET AND AFTON AVENUE.

APN(S):
3046-011-06
PROPOSAL: AN APPEAL TO THE PLANNING COMMISSION TO OVERTURN THE DEVELOPMENT REVIEW COMMITTEE'S DECISION TO DENY TTE22-00003, A SECOND EXTENSION OF TIME FOR TENTATIVE TRACT NO. 16505
N

AERIAL PHOTO
ATTACHMENT 2

June 29, 2022

Ron Freeman
LCTH Investment LP
1000 Dove Street, Suite 100
New Port, CA 92660

RE: Consideration of TTE22-00003, a second extension of time for Tentative Tract map No. 16505 to create 17 lots on 5 gross acres zoned Single- Family Resident ial (R -1) located on the southeast corner of Muscatel Street and Afton Avenue. (Applicant: Pacific Community Builders, Inc.; APN: 3046-011-06)

Dear Mr. Freeman:

After reviewing all the information pertaining to this application, it was the decision of t he Development Review Committee to deny TTE22-00003 at its June 29, 2022 meeting due to the following:

• Pursuat to Section 17.08.040 (E) of the Hesperia Municipal Code “no extensions of time are allowed for residential subdivisions.”

Pursuant to Section 16.12.055 of the Hesperia Municipal Code, unless this decision is appealed to the Planning Commission by August 11, 2022, TTE22-00003 will stand denied on August 12, 2022. All appeals must be submitted on forms available at this office, along with the required fee.

If you have any questions, please contact me at (760) 947-1651.

Sincerely,

Ryan Leonard
Senior Planner

ATTACHMENT 4
RESOLUTION NO. PC-2022-17

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
HESPERIA, CALIFORNIA, DENYING APPEAL APP2 2-00002, UPHOLDING

THE DEVELOPMENT REVIEW COMMITTEE'S DENIAL OF TENTATIVE
TRACT EXTENSION TTE22-00003, A SECOND EXTENSION OF TIME FO R TENTATIVE TRACT NO. 16505 LOCATED ON THE SOUTHEAST CORNER OF MUSCATEL STREET AND AFTON AVENUE (APP22-00002)

WHEREAS, Pacific Communities Builder has filed an application requesting approval of Appeal APP22-00002, to overturn the Development Review Committee’s denial of Tentative Tract Extension TTE22-00003, a second extension of time for Tentative Tract N o. 16505 described herein (hereinafter referred to as "Application"); and

WHEREAS, the Application applies to a second extension of time for Tentative Tract No. 16505 to subdivide 5 gross acres into 17 single-family residential lots and consists of Assessor's Parcel Number 3064-011-06; and

WHEREAS, TT-16505 was originally approved by the Planning Commission on December 9 , 2008; and

WHEREAS, in 2009, 2011, and 2013 the California Legislature passed assembly bills AB-333, AB-208 and AB -116 that automatically extended the expiration dates of tentative maps. These automatic extensions amounted to 6 years of automatic State extensions; and

WHEREAS, on January 10, 2018, the Development Review Committee (DRC) approved the first extension of time for TT-16505 that extended the tract for an additional 3 years; and

WHEREAS, in 2020 the California Legislature passed Assembly Bill AB -1561 that granted an 18-month extension to residential entitlements that were otherwise due to expire before the end of 2021; and

WHEREAS, TT-16505 was set to expire on June 18, 2022; and

WHEREAS, on June 29, 2022, the DRC denied a second extension of time for TT-16505; and

WHEREAS, this Application, as contemplated, proposes t o appeal the DRC’s denial of the extension of time for TT-16505; and

WHEREAS, the 5 gross acre site is currently vacant. The land to the west, east, and south are vacant. The land to the north on the oppos ite side of Muscatel Street consists of single -family residences; and

WHEREAS, the subject property is currently within the Single Family Residential (R1) zone; and

WHEREAS, in November 2020 a majority of voters of the City approved Ballet Measure N which made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan , and City Municipal Code. Among other things, Measure N modified City Municipal Code Section

17.08.040 (E) to state that “ no extensions of time are allowed for r esidential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a

Resolution No. PC-2022-17

subsequent ballot measure. As a result, the Planning Commission does not have the authority to approve any discretionary extensions of time; and

WHEREAS, denial of a project is exempt from the requirements of the California Environmental Quality Act; and

WHEREAS, on November 10, 2022, the Planning Commission of the City of Hesperia conducted duly noticed public hearings pertaining to the proposed Application, and concluded said hearing on that date; and

WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW THEREFORE, BE IT RES OLVED BY THE CITY OF HESPER IA PLANNING COMMISSION AS FOLLOWS:

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

Section 2. Based upon substantial evidence present ed to the Planning Commission during the above-referenced November 10, 2022 hearing, including public testimony and written and oral staff reports, this Commission specifically finds as follows:

(a) In November 2020 a majority of voters of the City approved Ballet Measure N which modified City Municipal Code Section 17.08.040 (E) to state that “no extensions of time are allowed for r esidential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a subsequent ballot measure . As a res ult, the Planning Commission does not have the authority to approve any discretionary extensions of time.

Section 3. Based on the findings and conclusions set forth in this Resolution, this Commission hereby denies Appeal AP P22-00002, denying Tentative Tract Extension TTE22-00003, causing Tentative Tract 16505 to expire.

Section 4. That the Secretary shall certify to the adoption of this Resolution.

ADOPTED AND APPROVED on this 10th day of November 2022.

______________________________________ _______________________________ Roger Abreo, Chair, Planning Commission
ATTEST:

____________________________________
Maricruz Montes, Secretary, Planning Commission

City of Hesperia

STAFF REPORT

DATE: December 20, 2022
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina Assistant City Manager
Ryan Leonard, Senior Planner

SUBJECT: Appeal to the City Council (APP22-00003); Applicant Pacific Communities Builder; APNs: 3046-011-12

RECOMMENDED ACTION

It is recommended that the City Council adopt Resolution No. 2022-82, denying appeal APP22- 00003 and upholding the Planning Commission and Development Review Committee (DRC) denial of a second extension of time for Tentative Tract No. 15033 (TTE22-00004).

BACKGROUND

Proposal: On November 8, 2022 the Planning Commission voted 2 -1 (Commissioner’s Bartz and Dunbar were absent; Commissioner Steeno abstained) to uphold the DRC’s denial for a second extension of time for TT-15033. The Planning Commission denied the extension of time for the reasons that are listed below in this staff report. Although the applicant is requesting that the City Council grant this appeal to overturn the Planning Commission’s denial, the City Council is precluded from granting a discretionary extension of time.

Current General Plan, Zoning and Land Uses: The project is located on the northwest corner of Palm Street and Fuente Avenue. The site is within Single Family Residential (R1) zone. The surrounding land is designated as noted on Attachment 1. The property is currently vacant. Single- family residences exist to the south and the Rick Novak Community Center is to the west. The properties to the north and east are vacant (Attachment 2).

Project Approval Timelines:
 On December 9, 2008, the Planning Commission approved TT -15033 to subdivide 10 gross acres into 36 single-family residential lots. The smallest lot was 7,200 square feet, the largest lot was 16,521 square feet and the average lot size was 8,456 square feet. TT- 15033 was approved for 3 years and was set to expire on December 19, 2011.

 In 2009, 2011 , and 2013 the California Legislature passed assembly bills automatically extending the expiration dates of tentative maps. These automatic extensions amounted to 6 years of automatic State extensions. The automatic extensions are in addition to multiple City discretionary extensions that are allowed by the Subdivision Map Act. The Subdivision Map Act allows the City to extend a tentative tract map for a maximum of 6 total years. The 6 years is a cumulative total, and the extensions of time may be broken up into multiple increments.

Staff Report to the City Council
APP22-00003
December 20, 2022

 On January 10, 2018, the DRC approved the first extension of time for TT-15033 that extended the tract for an additional 3 years.
 In 2020 the California Legislature passed Assembly Bill AB-1561 that granted an 18-month extension to residential entitlements that were otherwise due to expire before the end of 2021. AB -1561 was enacted as a result of the ongoing economic and administrative challenges created by the Covid -19 pandemic. Table 1 provides the chronological order of the entitlements for this project.

Table 1: Timeline of the Project Entitlement

ISSUES/ANALYSIS

In September 2020 , the applicant submitted grading plans and improvement plans to the Engineering Division for plan check. The grading plan and improvement plans were reviewed and returned to the applicant on 4 separate occasions, with each plan check containing various corrections. In June of 2022 the 4th plan check was r eturned to the applicant ; there were no additional plan check corrections, however, the applicant was required to provide evidence of compliance with the conditions of approval that specified that the applicant needed to provide an off-site grading letter from the adjacent property owner. In addition, the tract required improvements that were outside the boundary of the City and within the jurisdiction of the County.

The applicant was required t o coordinate the improvements with the County and provide an approval letter to the City. The applicant was not ab le to provide any documentation to the City regarding the outstanding conditions of approval and City staff subsequently informed the applicant that TR-15033 was determined to have officially expired.

On June 16, 2022, the applicant submitted an application for an extension of time. On June 29, 2022, the Development Review Committee denied the extension (Attachment 3) on the basis that the request was in conflict with Measure N. Ballot Measure N was approved by C ity voters in November 2020. Measure N made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan, and City Municipal Code. Among other things, Measure N modified City Municipal Code Section 17.08.040 (E) to state that “ no extensions of time are allowed for residential subdivisions.” Measure N was approved by a majority of voters and therefore may only be amended by a subsequent ballot measure. As a result, there is no mechanism in the Development Code that authorizes an approval process for any extensions of time. Furthermore, the Development Code may not be modified to allow for such an approval process.

It’s important to point out that while the City Council does not have the authority to approve a discretionary extension of time, the City Council is authorized under Government Code Section 65864 to enter into a development agreement that could extend the life of the tract. However, the applicant has not submitted an application for a development agreement. Furth ermore, Land Use
Entitlement
Activity
Approval
Date
Effective
Date
Denial
Date
Expiration
Date
Length of
Extension
Tentative Tract No.
15033
12/09/2008 12/19/2008 12/19/2011 -
Assembly Bill 333;
AB-208; AB-116
6 years of automatic State extensions 12/19/17 6 years
TTE17-00018 01/10/2018 12/19/2020 3 years
Assembly Bill 1561 18-month automatic State extension 06/19/2022 18 months

Staff Report to the City Council
APP22-00003
December 20, 2022

development agreements are customarily considered as part of the land use entitlement application at the time when the project is initially approved, not 14 years after the original approval. In addition, a pproving a development agreement for this purpose would set a questionable precedent and would be inconsistent with Measure N.

CONCLUSION

The City Council does not have the authority to approve a discretionary extension of time. The City Council must uphold the Planning Commission’s denial of a second extension of time for Tentative Tract No. 15033.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENTS

1. Resolution No. 2022-82

2. Planning Commission Staff Report with Attachments

RESOLUTION NO. 2022-82

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, DENYING APPEAL APP2 2-00003, UPHOLDING THE PLANNING COMMISSION’S DENIAL OF TENTATIVE TRACT EXTENSION TTE22-00004, A SECOND EXTENSION OF TIME F OR TENTATIVE TRACT NO. 15033 LOCATED ON THE NORTHWEST CORNER OF PALM STREET AND FUENTE AVENUE (APP22-00003)

WHEREAS, Pacific Communities Builder has filed an application requesting approval of Appeal APP22-00003, to overturn the Development Review Committee’s denial of Tentative Tract Extension TTE22-00004, a second extension of time for Tentative Tract No. 15033 described herein (hereinafter referred to as "Application"); and

WHEREAS, the Application applies to a second extension of time for Tentative Tract No. 15033 to subdivide 10 gross acres into 36 single-family residential lots and consists of Assessor's Parcel Number 3046-011-12; and

WHEREAS, TT-15033 was originally approved by the Planning Commission on December 9 , 2008; and

WHEREAS, in 2009, 2011, and 2013 the Ca lifornia Legislature passed assembly bills AB -333, AB-208 and AB -116 that automatically extended the expiration dates of tentative maps. These automatic extensions amounted to 6 years of automatic State extensions; and

WHEREAS, on January 10, 201 8, the De velopment Review Committee (DRC) approved the first extension of time for TT-15033 that extended the tract for an additional 3 years; and

WHEREAS, in 2020 the California Legislature passed Assembly Bill AB -1561 that granted an 18-month extension to residential entitlements that were otherwise due to expire before the end of 2021; and

WHEREAS, TT-15033 was set to expire on June 18, 2022; and

WHEREAS, on June 29, 2022, the DRC denied a second extension of time for TT-15033; and

WHEREAS, on November 10, 2022, the Planning Commission upheld the DRC’s denial of a second extension of time for TT-15033; and

WHEREAS, this Application, as contemplated, proposes to appeal the Planning Commission’s denial of the extension of time for TT-15033; and

WHEREAS, the 10 gross acre site is currently vacant. Single-family residences exist to the south and the Rick Novak Community Center is to the west. The properties to the north and east are vacant; and

WHEREAS, the subject property is currently within the Single Family Residential (R1) zone; and

WHEREAS, in November 2020 a majority of voters of the City approved Ballet Measure N which made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan, and

Resolution No. PC-2022-82

City Municipal Code. Among other things, Measure N modified City Municipal Code Section

17.08.040 (E) to state that “no extensions of time are allowed for residential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a subsequent ballot measure. As a result, the City Council does not have the authority to approve any discretionary extensions of time; and

WHEREAS, denial of a project is exempt from the requirements of the California Environmental Quality Act; and

WHEREAS, on November 10, 2022, the Planning Commission of the City of Hesperia conducted duly noticed public hearings pertaining to the proposed Application, and concluded said hearing on that date; and

WHEREAS, on December 20, 2022, the City Council of the City of Hesperia conducted duly noticed public hearings pertaining to the proposed Application, and concluded said hearing on that date; and

WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

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

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

Section 2. Based upon substantial evidence presented to the City Council during the above-referenced December 20, 2022 hearing, including public testimony and written and oral staff reports, this Council specifically finds as follows:

(a) In November 2020 a majority of voters of the City approved Ballet Measure N which modified City Municipal Code Section 17.08.040 (E) to state that “no extensions of time are allowed for residential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a subsequent ballot measure. As a result, the City Council does not have the authority to approve any discretionary extensions of time.

Section 3. Based on the findings and conclusions set forth in this Resolution, the City Council hereby denies Appeal APP22-00003, denying Tentative Tract Extension TTE22- 00004, causing Tentative Tract 15033 to expire.

Section 4. 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 on this 20th day of December 2022.

______________________________________ _______________________________ Brigit Bennington, Mayor
ATTEST:

Resolution No. PC-2022-82

____________________________________
Erin Baum, Assistant City Clerk

City of Hesperia

STAFF REPORT
DATE: November 10, 2022
TO: Planning Commission
FROM: Rachel Molina, Assistant City Manager
BY: Ryan Leonard, Senior Planner
SUBJECT: Appeal to the Planning Commission (APP22-00003); Applicant Pacific Communities Builder; APNs: 3046-011-12

RECOMMENDED ACTION
It is recommended t hat the Planning Commission adopt Resolution No . PC-2022-18, denying appeal APP 22-00003 and upholding the Development Review Committee (DRC) denial of a second extension of time for Tentative Tract No. 15033 (TTE22-00004).

BACKGROUND
Proposal: On June 29, 2022, the DRC denied an application for a second extension of time for TT-15033. The DRC denied the extension of time for the reasons that are listed below in this staff report. Although the applicant is requesting that the Planning Commission grant this appeal to overturn the DRC’s denial, the Planning Commission is precluded from granting an extension of time.

This item was previously scheduled for the September 8, 2022 Planning Commission meeting but was ultimately continued to the next Planning Commission hearing on November 10, 2022.

Current General Plan, Zoning and Land Uses: The project is located on the northwest corner of Palm Street and Fuente Avenue. The site is within Single Family Residential (R1) zone. The surrounding land is designated as noted on Attachment 1. The property is currently vacant. Single- family residences exist to the south and the Rick Novak Community Center is to the west. The properties to the north and east are vacant (Attachment 2).

Project Approval Timelines:
 On December 9, 2008, the Planning Commission approved TT -15033 to subdivide 10 gross acres into 36 single-family residential lots. The smallest lot was 7,200 square feet, the largest lot was 16,521 square feet and the average lot size was 8,456 square feet. TT- 15033 was approved for 3 years and was set to expire on December 19, 2011.  In 2009, 2011 , and 2013 the California Legislature passed assembly bills automatically extending the expiration dates of tentative maps. These automatic extensions amounted to 6 years of automatic State extensions. The automatic extensions are in addition to multiple City discretionary extensions that are allowed by the Subdivision Map Act. The Subdivision Map Act allows the City to extend a tentative tract map for a maximum of 6 total years. The 6 years is a cumulative total, and the extensions of time may be broken up into multiple increments.

Attachment 2

Staff Report to the Planning Commission
APP22-00003
November 10, 2022

 On January 10, 2018, the DRC approved the first extension of time for TT-15033 that extended the tract for an additional 3 years.
 In 2020 the California Legislature passed Assembly Bill AB-1561 that granted an 18-month extension to residential entitlements that were otherwise due to expire before the end of 2021. AB -1561 was enacted as a result of the ongoing economic and administrative challenges created by the Covid -19 pandemic. Table 1 provides the chronological order of the entitlements for this project.

Table 1: Timeline of the Project Entitlement

ISSUES/ANALYSIS

In September 2020 , the applicant submitted grading plans and improvement plans to the Engineering Division for plan check. The grading plan and improvement plans were reviewed and returned to the applicant on 4 separate occasions, with each plan check containing various corrections. In June of 2022 the 4th plan check was r eturned to the applicant ; there were no additional plan check corrections, however, the applicant was required to provide evidence of compliance with the conditions of approval that specified that the applicant needed to provide an off-site grading letter from the adjacent property owner. In addition, the tract required improvements that were outside the boundary of the City and within the jurisdiction of the County.

The applicant was required t o coordinate the improvements with the County and provide an approval letter to the City. The applicant was not ab le to provide any documentation to the City regarding the outstanding conditions of approval and City staff subsequently informed the applicant that TR-15033 was determined to have officially expired.

On June 16, 2022, the applicant submitted an application for an extension of time. On June 29, 2022, the Development Review Committee denied the extension (Attachment 3) on the basis that the request was in conflict with Measure N. Ballot Measure N was approved by C ity voters in November 2020. Measure N made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan, and City Municipal Code. Among other things, Measure N modified City Municipal Code Section 17.08.040 (E) to state that “ no extensions of time are allowed for residential subdivisions.” Measure N was approved by a majority of voters and therefore may only be amended by a subsequent ballot measure. As a result, there is no mechanism in the Development Code that authorizes an approval process for any extensions of time. Furthermore, the Development Code may not be modified to allow for such an approval process.

The Planning Commission does not have the authority to approve any discretionary extensions of time, nor do they have the authority to authorize an amendment to the Development Code to allow for such an approval process.

Land Use
Entitlement
Activity
Approval
Date
Effective
Date
Denial
Date
Expiration
Date
Length of
Extension
Tentative Tract No.
15033
12/09/2008 12/19/2008 12/19/2011 -
Assembly Bill 333;
AB-208; AB-116
6 years of automatic State extensions 12/19/17 6 years
TTE17-00018 01/10/2018 12/19/2020 3 years
Assembly Bill 1561 18-month automatic State extension 06/19/2022 18 months

Staff Report to the Planning Commission
APP22-00003
November 10, 2022

CONCLUSION

The Planning Commission does not have the authority to overturn the DRC denial of Tentative Tract Extension TTE22 -00004. The Pl anning Commission must uphold the DRC’s denial of a second extension of time for Tentative Tract No. 15033.

ALTERNATIVE(S)

1. Refer this item to the City Council.

ATTACHMENTS

1. General Plan Map

2. Aerial Photo

3. DRC Denial Letter

4. Resolution No. PC-2022-18

APPLICANT(S): PACIFIC COMMUNITIES BUILDER FILE NO(S): APP22-00003 LOCATION: ON THE NORTHWEST CORNER OF PALM STREET AND FUENTE AVENUE APN(S):
3046-011-12
PROPOSAL: AN APPEAL TO THE PLANNING COMMISSION TO OVERTURN THE DEVELOPMENT REVIEW COMMITTEE'S DECISION TO DENY TTE22-00004, A SECOND EXTENSION OF TIME FOR TENTATIVE TRACT NO. 15033
N

GENERAL PLAN
ATTACHMENT 1
SITE

APPLICANT(S): PACIFIC COMMUNITIES BUILDER FILE NO(S): APP22-00003 LOCATION: ON THE NORTHWEST CORNER OF PALM STREET AND FUENTE AVENUE APN(S):
3046-011-12
PROPOSAL: AN APPEAL TO THE PLANNING COMMISSION TO OVERTURN THE DEVELOPMENT REVIEW COMMITTEE'S DECISION TO DENY TTE22-00004, A SECOND EXTENSION OF TIME FOR TENTATIVE TRACT NO. 15033
N

AERIAL PHOTO
ATTACHMENT 2

June 29, 2022

Ron Freeman
LCTH Investment LP
1000 Dove Street, Suite 100
New Port, CA 92660

RE: Consideration of TTE22-00004, a second extension of time for Tentative Tract map No. 15033 to create 36 single -family residential lots on 10.0 gross acres zoned Single - Family Residential (R -1) located on the nor thwest corner of Palm Street and Fuente Avenue (Applicant: Pacific Community Builders, Inc.: APN: 3046-011-12)

Dear Mr. Freeman:

After reviewing all the information pertaining to this application, it was the decision of the Development Review Committee to deny TTE22-00004 at its June 29, 2022 meeting due to the following:

• Pursuat to Section 17.08.040 (E) of the Hesperia Municipal Code “no extensions of time are allowed for residential subdivisions.”

Pursuant to Section 16.12.055 of the Hesperia Municipal Code, unless this decision is appealed to the Planning Commission by August 11, 2022, TTE22-00004 will stand denied on August 12, 2022. All appeals must be submitted on forms available at this office, along with the required fee.

If you have any questions, please contact me at (760) 947-1651.

Sincerely,

Ryan Leonard
Senior Planner

ATTACHMENT 4
RESOLUTION NO. PC-2022-18

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
HESPERIA, CALIFORNIA, DENYING APPEAL APP2 2-00003, UPHOLDING

THE DEVELOPMENT REVIEW COMMITTEE'S DENIAL OF TENTATIVE
TRACT EXTENSION TTE22-00004, A SECOND EXTENSION OF TIME FO R TENTATIVE TRACT NO. 15033 LOCATED ON THE NORTHWEST CORNER OF PALM STREET AND FUENTE AVENUE (APP22-00003)

WHEREAS, Pacific Communities Builder has filed an application requesting approval of Appeal APP22-00003, to overturn the Development Review Committee’s denial of Tentative Tract Extension TTE22-00004, a second extension of time for Tentative Tract N o. 15033 described herein (hereinafter referred to as "Application"); and

WHEREAS, the Application applies to a second extension of time for Tentative Tract No. 15033 to subdivide 10 gross acres into 36 single-family residential lots and consists of Assessor's Parcel Number 3046-011-12; and

WHEREAS, TT-15033 was originally approved by the Planning Commission on December 9 , 2008; and

WHEREAS, in 2009, 2011, and 2013 the California Legislature passed assembly bills AB-333, AB-208 and AB -116 that automatically extended the expiration dates of tentative maps. These automatic extensions amounted to 6 years of automatic State extensions; and

WHEREAS, on January 10, 2018, the Development Review Committee (DRC) approved the first extension of time for TT-15033 that extended the tract for an additional 3 years; and

WHEREAS, in 2020 the California Legislature passed Assembly Bill AB -1561 that granted an 18-month extension to residential entitlements that were otherwise due to expire before the end of 2021; and

WHEREAS, TT-15033 was set to expire on June 18, 2022; and

WHEREAS, on June 29, 2022, the DRC denied a second extension of time for TT-15033; and

WHEREAS, this Application, as contemplated, proposes t o appeal the DRC’s denial of the extension of time for TT-15033; and

WHEREAS, the 10 gross acre site is currently vacant. Single-family residences exist to the south and the Rick Novak Community Center is to the west. The properties to the north and east are vacant; and

WHEREAS, the subject property is currently within the Single Family Residential (R1) zone; and

WHEREAS, in November 2020 a majority of voters of the City approved Ballet Measure N which made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan , and City Municipal Code. Among other things, Measure N modified City Municipal Code Section

17.08.040 (E) to state that “ no extensions of time are allowed for r esidential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a

Resolution No. PC-2022-18

subsequent ballot measure. As a result, the Planning Commission does not have the authority to approve any discretionary extensions of time; and

WHEREAS, denial of a project is exempt from the requirements of the California Environmental Quality Act; and

WHEREAS, on November 10, 2022, the Planning Commission of the City of Hesperia conducted duly noticed public hearings pertaining to the proposed Application, and concluded said hearing on that date; and

WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW THEREFORE, BE IT RES OLVED BY THE CITY OF HESPER IA PLANNING COMMISSION AS FOLLOWS:

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

Section 2. Based upon substantial evidence present ed to the Planning Commission during the above-referenced November 10, 2022 hearing, including public testimony and written and oral staff reports, this Commission specifically finds as follows:

(a) In November 2020 a majority of voters of the City approved Ballet Measure N which modified City Municipal Code Section 17.08.040 (E) to state that “no extensions of time are allowed for r esidential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a subsequent ballot measure . As a res ult, the Planning Commission does not have the authority to approve any discretionary extensions of time.

Section 3. Based on the findings and conclusions set forth in this Resolution, this Commission hereby denies Appeal AP P22-00003, denying Tentative Tract Extension TTE22-00004, causing Tentative Tract 15033 to expire.

Section 4. That the Secretary shall certify to the adoption of this Resolution.

ADOPTED AND APPROVED on this 10th day of November 2022.

______________________________________ _______________________________ Roger Abreo, Chair, Planning Commission
ATTEST:

____________________________________
Maricruz Montes, Secretary, Planning Commission

City of Hesperia

STAFF REPORT

DATE: December 20, 2022
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina Assistant City Manager
Ryan Leonard, Senior Planner

SUBJECT: Appeal to the City Council (APP22-00004); Applicant Pacific Communities Builder; APNs: 0405-052-03 & 27 thru 30

RECOMMENDED ACTION

It is recommended that the City Council adopt Resolution No. 2022-83, denying appeal APP22- 00004 and upholding the Planning Commission and Development Review Committee (DRC) denial of a third extension of time for Tentative Tract No. 17655 (TTE22-00005).

BACKGROUND

Proposal: On November 8, 2022 the Planning Commission voted 2 -1 (Commissioner’s Bartz and Dunbar were absent; Commissioner Steeno abstained) to uphold the DRC’s denial for a third extension of time for TT-17655. The Planning Commission denied the extension of time for the reasons that are listed below in this staff report. Although the applicant is requesting that the City Council grant this appeal to overturn the Planning Commission’s denial, the City Council is precluded from granting an extension of time.

Current General Plan, Zoning and Land Uses: The project is located on the southwest corner of Verde Avenue and Topaz Avenue . The site is within the Low Density Residential (LDR) and Office Park zones of the Main Street and Freeway Corridor Specific Plan . The surrounding land is designated as noted on Attachment 1. The property is currently vacant. Single-family residences exist to the east. The properties to the north, south and west are vacant (Attachment 2).

Project Approval Timelines:
 On June 17, 2008, the City Council approved a zone change to change the zoning from RR 2 ½ to R1 in conjunction with TT-17655 to subdivide 20 gross acres into 118 single- family residential lots. The Small Lot Subdivision Ordinance requires a minimum lot size of 3,000 square feet and an average lot size of not less than 4,500 square feet. The smallest lot within the subdivision is 3,948 square feet, the average lot size is 4,542 square feet, and the largest lot is 9,009 square feet in area. Only two lots are over 7,200 square feet. TT-17243 was approved for 3 years and was set to expire on March 25, 2011.

It should be noted that the existing zoning for a portion of the tract is Office Park (OP). The OP zoning is likely due to a mapping error and will be corrected in the future to reflect LDR zoning.

 In 2009, 2011 , and 2013 the California Legislature passed assembly bills automatically extending the expiration dates of tentative maps. These automatic extensions amounted

Staff Report to the City Council
APP22-00004
December 20, 2022

to 6 years of automatic State extensions. The automatic extensions are in addition to multiple City discretionary extensions that are allowed by the Subdivision Map Act. The Subdivision Map Act allows the City to extend a tentative tract map for a maximum of 6 total years. The 6 years is a cumulative total, and the extensions of time may be broken up into multiple increments.

 On June 29, 2016, the DRC approved the first extension of time for TT-17655 that extended the tract for an additional 2 years.

 On September 04, 2019 the DRC approved a second extension of time for TT-17655 that extended the tract for an additional 3 years. Table 1 provides the chronological order of the entitlements for this project.

Table 1: Timeline of the Project Entitlement

ISSUES/ANALYSIS

In March of 2022 , the applicant submitted grading plans and improvement plans to the Engineering Division for plan check. The grading plan and improvement plans were reviewed and returned to the applicant with corrections. The applicant attempted to submit revised plans shortly after the July 31st expiration date but was told by the City that TR-17655 was determined to have officially expired.

On July 27, 2022, the applicant submitted an application for an extension of time. On August 10, 2022, the Development Review Committee denied the extension (Attachment 3) on the basis that the request was in conflict with Measure N. Ballot Measure N was approved by City voters in November 2020. Measure N made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan, and City Municipal Code. Among other things, Measure N modified City Municipal Code Section 17.08.040 (E) to state that “ no extensions of time are allowed for residential subdivisions.” Measure N was approved by a majority of voters and therefore may only be amended by a subsequent ballot measure. As a result, there is no mechanism in the Development Code that authorizes an approval process for any extensions of time. Furthermore, the Development Code may not be modified to allow for such an approval process.

It’s important to point out that while the City Council does not have the authority to approve a discretionary extension of time, the City Council is authorized under Government Co de Section 65864 to enter into a development agreement that could extend the life of the tract. However, the applicant has not submitted an application for a development agreement. Furthermore, development agreements are customarily considered as part of t he land use entitlement application at the time when the project is initially approved, not 14 years after the original Land Use
Entitlement
Activity
Approval
Date
Effective
Date
Denial
Date
Expiration
Date
Length of
Extension
Tentative Tract No.
17655
06/17/2008 07/31/2008 07/31/2011 -
Assembly Bill 333;
AB-208; AB-116
6 years of automatic State extensions 07/31/17 6 years
TTE16-00011 06/29/2016 07/31/2019 2 years
TTE19-00008 09/04/2019 07/31/2022 3 years

Staff Report to the City Council
APP22-00004
December 20, 2022

approval. In addition, a pproving a development agreement for this purpose would set a questionable precedent and would be inconsistent with Measure N.

CONCLUSION

The City Council does not have the authority to approve a discretionary extension of time. The City Council must uphold the Planning Commission’s denial of a third extension of time for Tentative Tract No. 17655.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENTS

1. Resolution No. 2022-83

2. Planning Commission Staff Report with Attachments

RESOLUTION NO. 2022-83

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, DENYING APPEAL APP2 2-00004, UPHOLDING THE PLANNING COMMISSION’S DENIAL OF TENTATIVE TRACT EXTENSION TTE22-00005, A THIRD EXTENSION OF TIME F OR TENTATIVE TRACT NO. 17655 LOCATED ON THE SOUTHWEST CORNER OF VERDE AVENUE AND TOPAZ AVENUE (APP22-00004)

WHEREAS, Pacific Communities Builder has filed an application requesting approval of Appeal APP22-00003, to overturn the Development Review Committee’s denial of Tentative Tract Extension TTE22 -00005, a third extension of time for Tentative Tract No. 17655 described herein (hereinafter referred to as "Application"); and

WHEREAS, the Application applies to a third extension of time for Tentative Tract No. 17655 to subdivide 20 gross acres into 118 single-family residential lots and consists of Assessor's Parcel Numbers 0405-052-03 & 27 thru 30; and

WHEREAS, TT-17655 was originally approved by the City Council on June 17, 2008 in conjunction with a zone change to change the zoning from RR-2 ½ to R1; and

WHEREAS, in 2009, 2011, and 2013 the California Legislature passed assembly bills AB -333, AB-208 and AB -116 that automatically extended the expiration dates of tentative maps. These automatic extensions amounted to 6 years of automatic State extensions; and

WHEREAS, on June 29, 2016, the Development Review Committee (DRC) approved the first extension of time for TT-17655 that extended the tract for an additional 2 years; and

WHEREAS, on September 04, 2019, the Develo pment Review Committee (DRC) approved the second extension of time for TT-17655 that extended the tract for an additional 3 years; and

WHEREAS, TT-17655 was set to expire on July 31, 2022; and

WHEREAS, on August 10, 2022, the DRC denied a third extension of time for TT-17655; and

WHEREAS, on November 10, 2022, the Planning Commission upheld the DRC’s denial of a third extension of time for TT-17655; and

WHEREAS, this Application, as contemplated, proposes to appeal the Planning Commission’s denial of the extension of time for TT-17655; and

WHEREAS, the 20 gross acre site is currently vacant. Single-family residences exist to the east and the properties to the north, south and west are vacant; and

WHEREAS, the subject property is currently within the Low Density Residential (LDR) and Office Park zones of the Main Street and Freeway Corridor Specific Plan. The existing Office Park zoning is an administrative error and will be corrected in the future to reflect LDR zoning; and

WHEREAS, in November 2020 a majority of voters of the City approved Ballet Measure N which made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan, and

Resolution No. 2022-83

City Municipal Code. Among other things, Measure N modified City Municipal Code Section

17.08.040 (E) to state that “no extensions of time are allowed for residential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a subsequent ballot measure. As a result, the City Council does not have the authority to ap prove any discretionary extensions of time; and

WHEREAS, denial of a project is exempt from the requirements of the California Environmental Quality Act; and

WHEREAS, on November 10, 2022, the Planning Commission of the City of Hesperia conducted duly noticed public hearings pertaining to the proposed Application, and concluded said hearing on that date; and

WHEREAS, on December 20, 2022, the City Council of the City of Hesperia conducted duly noticed public hearings pertaining to the proposed Application, and concluded said hearing on that date; and

WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

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

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

Section 2. Based upon substantial evidence presented to the City Council during the above-referenced December 00, 2022 hearing, including public testimony and written and oral staff reports, this Council specifically finds as follows:

(a) In November 2020 a majority of voters of the City approved Ballet Measure N which modified City Municipal Code Section 17.08.040 (E) to state that “no extensions of time are allowed for resid ential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a subsequent ballot measure. As a result, the City Council does not have the authority to approve any discretionary extensions of time.

Section 3. Based on the findings and conclusions set forth in this Resolution, the City Council hereby denies Appeal APP22-00004, denying Tentative Tract Extension TTE22- 00005, causing Tentative Tract 17655 to expire.

Section 4. The City Clerk shall certify to the pa ssage and adoption of this Resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED on this 20th day of November 2022.

______________________________________ _______________________________ Brigit Bennington, Mayor
ATTEST:

Resolution No. 2022-83

____________________________________
Erin Baum, Assistant City Clerk

City of Hesperia

STAFF REPORT
DATE: November 10, 2022
TO: Planning Commission
FROM: Rachel Molina, Assistant City Manager
BY: Ryan Leonard, Senior Planner
SUBJECT: Appeal to the Planning Commission (APP22-00004); Applicant Pacific Communities Builder; APNs: 0405-052-03 & 27 thru 30

RECOMMENDED ACTION
It is recommended t hat the Planning Commission adopt Resolution No . PC-2022-19, denying appeal APP22-00004 and upholding the Development Review Committee (DRC) denial of a third extension of time for Tentative Tract No. 17655 (TTE22-00005).

BACKGROUND
Proposal: On August 10, 2022, the DRC denied an application for a third extension of time for TT-17655. The DRC denied the extension of time for the reasons that are listed below in this staff report. Although the applicant is requesting that the Planning Commission grant this appeal to overturn the DRC’s denial, the Planning Commission is precluded from granting an extension of time. This item was previously scheduled for the September 8, 2022 Planning Commission meeting but was ultimately continued to the next Planning Commission hearing on November 10, 2022.

Current General Plan, Zoning and Land Uses: The project is located on the southwest corner of Verde Avenue and Topaz Avenue . The site is within the Low Density Residential (LDR) and Office Park zones of the Main Street and Freeway Corridor Specific Plan . The surrounding land is designated as noted on Attachment 1. The property is currently vacant. Single-family residences exist to the east. The properties to the north, south and west are vacant (Attachment 2).

Project Approval Timelines:
 On June 17, 2008, the City Council approved a zone change to change the zoning from RR 2 ½ to R1 in conjunction with TT-17655 to subdivide 20 gross acres into 118 single- family residential lots. The Small Lot Subdivision Ordinance requires a minimum lot size of 3,000 square feet and an average lot size of not less than 4,500 square feet. The smallest lot within the subdivision is 3,948 square feet, the average lot size is 4,542 square feet, and the largest lot is 9,009 square feet in area. Only two lots are over 7,200 square feet. TT-17243 was approved for 3 years and was set to expire on March 25, 2011.

It should be noted that the existing zoning for a portion of the tract is Office Park (OP). The OP zoning is likely due to a mapping error and will be corrected in the future to reflect LDR zoning.
 In 2009, 2011 , and 2013 the California Legislature passed assembly bills automatically extending the expiration dates of tentative maps. These automatic extensions amounted

Attachment 2

Staff Report to the Planning Commission
APP22-00004
November 10, 2022

to 6 years of automatic State extensions. The automatic extensions are in addition to multiple City discretionary extensions that are allowed by the Subdivision Map Act. The Subdivision Map Act allows the City to extend a tentative tract map for a maximum of 6 total years. The 6 years is a cumulative total, and the extensions of time may be broken up into multiple increments.

 On June 29, 2016, the DRC approved the first extension of time for TT-17655 that extended the tract for an additional 2 years.

 On September 04, 2019 the DRC approved a second extension of time for TT-17655 that extended the tract for an additional 3 years. Table 1 provides the chronological order of the entitlements for this project.

Table 1: Timeline of the Project Entitlement

ISSUES/ANALYSIS

In March of 2022 , the applicant submitted grading plans and improvement plans to the Engineering Division for plan check. The grading plan and improvement plans were reviewed and returned to the applicant with corrections. The applicant attempted to submit revised plans shortly after the July 31st expiration date but was told by the City that TR-17655 was determined to have officially expired.

On July 27, 2022, the applicant submitted an application for an extension of time. On August 10, 2022, the Development Review Committee denied the extension (Attachment 3) on the basis that the request was in conflict with Measure N. Ballot Measure N was approved by City voters in November 2020. Measure N made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan, and City Municipal Code. Among other things, Measure N modified City Municipal Code Section 17.08.040 (E) to state that “ no extensions of time are allowed for residential subdivisions.” Measure N was approved by a majority of voters and therefore may only be amended by a subsequent ballot measure. As a result, there is no mechanism in the Development Code that authorizes an approval process for any extensions of time. Furthermore, the Development Code may not be modified to allow for such an approval process.

The Planning Commission does not have the authority to approve any discretionary extensions of time, nor do they have the authority to authorize an amendment to the Development Cod e to allow for such an approval process.

Land Use
Entitlement
Activity
Approval
Date
Effective
Date
Denial
Date
Expiration
Date
Length of
Extension
Tentative Tract No.
17655
06/17/2008 07/31/2008 07/31/2011 -
Assembly Bill 333;
AB-208; AB-116
6 years of automatic State extensions 07/31/17 6 years
TTE16-00011 06/29/2016 07/31/2019 2 years
TTE19-00008 09/04/2019 07/31/2022 3 years

Staff Report to the Planning Commission
APP22-00004
November 10, 2022

CONCLUSION

The Planning Commission does not have the authority to overturn the DRC denial of Tentative Tract Extension TTE22-00005. The Planning Commission must uphold the DRC’s denial of a third extension of time for Tentative Tract No. 17655.

ALTERNATIVE(S)

1. Refer this item to the City Council.

ATTACHMENTS

1. General Plan Map

2. Aerial Photo

3. DRC Denial Letter

4. Resolution No. PC-2022-19

APPLICANT(S): PACIFIC COMMUNITIES BUILDER FILE NO(S): APP22-00004 LOCATION: ON THE SOUTHWEST CORNER OF VERDE AVENUE AND TOPAZ AVENUE
APN(S):
0405-052-03 & 27
thru 30
PROPOSAL: AN APPEAL TO THE PLANNING COMMISSION TO OVERTURN THE DEVELOPMENT REVIEW COMMITTEE'S DECISION TO DENY TTE22-00005, A THIRD EXTENSION OF TIME FOR TENTATIVE TRACT NO. 17655
N

GENERAL PLAN
ATTACHMENT 1
SITE

APPLICANT(S): PACIFIC COMMUNITIES BUILDER FILE NO(S): APP22-00004 LOCATION: ON THE SOUTHWEST CORNER OF VERDE AVENUE AND TOPAZ AVENUE
APN(S):
0405-052-03 & 27
thru 30
PROPOSAL: AN APPEAL TO THE PLANNING COMMISSION TO OVERTURN THE DEVELOPMENT REVIEW COMMITTEE'S DECISION TO DENY TTE22-00005, A THIRD EXTENSION OF TIME FOR TENTATIVE TRACT NO. 17655
N

AERIAL PHOTO
ATTACHMENT 2

Brigit Bennington, Mayor 9700 Seventh Avenue Bill Holland, Mayor Pro Tem Hesperia, CA 92345 Cameron Gregg, Council Member
Rebekah Swanson, Council Member 760-947-1000 Larry Bird, Council Member TD 760-947-1119

Nils Bentsen, City Manager www.cityofhesperia.us Gateway to the High Desert
City of Hesperia

August 11, 2022

Ron Freeman
LCTH Investment LP
1000 Dove Street, Suite 100
New Port, CA 92660

RE: An extension of time (TTE22 -00005) for TT -17655 to create 118 single family residential lots on approxima tely 20.0 gross acres designed Low Density Residential (LDR) and Office Park (OP) within the Main Street and Freeway Corridor Specific Plan located on the southwest corner of Verde Street and Topaz Avenue (Pacific Communities Builder; APN(S): 0405-052-03 & 27 thru 30)

Dear Mr. Freeman:

After reviewing all the information pertaining t o this application , it was the decision of the Development Review Committ ee to deny TTE2 2-00005 at its August 10, 2022 meeting due to the following:

• Pursuat to Section 17.08.040 (E) of the Hesperia Municipal Code “no extensions of time are allowed for residential subdivisions.”

Pursuant to Section 16.12.055 of the Hesperia Municipal Code , unless this decision is appealed to the Planning Commission by August 22, 2022, TTE22-00005 will stand denied on August 23, 2022. All appeals must be submitted on forms available at this office, along with the required fee.

If you have any questions, please contact me at (760) 947-1651.

Sincerely,

Ryan Leonard
Senior Planner

ATTACHMENT 4
RESOLUTION NO. PC-2022-19

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF
HESPERIA, CALIFORNIA, DENYING APPEAL APP2 2-00004, UPHOLDING

THE DEVELOPMENT REVIEW COMMITTEE'S DENIAL OF TENTATIVE
TRACT EXTENSION TTE22-00005, A THIRD EXTENSION OF TIME FO R TENTATIVE TRACT NO. 17655 LOCATED ON THE SOUTHWEST CORNER OF VERDE AVENUE AND TOPAZ AVENUE (APP22-00004)

WHEREAS, Pacific Communities Builder has filed an application requesting approval of Appeal APP22-00003, to overturn the Development Review Committee’s denial of Tentative Tract Extension TTE22 -00005, a third extension of time for Tentative Tract N o. 17655 described herein (hereinafter referred to as "Application"); and

WHEREAS, the Application applies to a third extension of time for Tentative Tract No. 17655 to subdivide 20 gross acres into 118 single-family residential lots and consists of Assessor's Parcel Numbers 0405-052-03 & 27 thru 30; and

WHEREAS, TT-17655 was originally approved by the City Council on June 17, 20 08 in conjunction with a zone change to change the zoning from RR-2 ½ to R1; and

WHEREAS, in 2009, 2011, and 2013 the California Legislature passed assembly bills AB-333, AB-208 and AB -116 that automatically extended the expiration dates of tentative maps. These automatic extensions amounted to 6 years of automatic State extensions; and

WHEREAS, on June 29, 2016, the Development Review Committee (DRC) approved the first extension of time for TT-17655 that extended the tract for an additional 2 years; and

WHEREAS, on September 04, 2019, the Development Review Committee (DRC) approved the second extension of time for TT-17655 that extended the tract for an additional 3 years; and

WHEREAS, TT-17655 was set to expire on July 31, 2022; and

WHEREAS, on August 10, 2022, the DRC denied a third extension of time for TT-17655; and

WHEREAS, this Application, as contemplated, proposes t o appeal the DRC’s denial of the extension of time for TT-17655; and

WHEREAS, the 20 gross acre site is currently vacant. Single-family residences exist to the east and the properties to the north, south and west are vacant; and

WHEREAS, the subject property is currently within the Low Density Residential (LDR) and Office Park zones of the Main Street and Freeway Corridor Speci fic Plan . T he existing Office Park zoning is an administrative error and will be corrected in the future to reflect LDR zoning; and

WHEREAS, in November 2020 a majority of voters of the City approved Ballet Measure N which made changes to the City General Plan, Main Street and Freew ay Corridor Specific Plan , and City Municipal Code. Among other things, Measure N modified City Municipal Code Section

17.08.040 (E) to state that “ no extensions of time are allowed for r esidential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a

Resolution No. PC-2022-19

subsequent ballot measure. As a result, the Planning Commission does not have the authority to approve any discretionary extensions of time; and

WHEREAS, denial of a project is exempt from the requirements of the Cal ifornia Environmental Quality Act; and

WHEREAS, on November 10, 2022, the Planning Commission of the City of Hesperia conducted duly noticed public hearings pertaining to the proposed Application, and concluded said hearing on that date; and

WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW THEREFORE, BE IT RES OLVED BY THE CITY OF HESPER IA PLANNING COMMISSION AS FOLLOWS:

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

Section 2. Based upon substantial evidence present ed to the Planning Commission during the above-referenced November 10, 2022 hearing, including public testimony and written and oral staff reports, this Commission specifically finds as follows:

(a) In November 2020 a majority of voters of the City approved Ballet Measure N which modified City Municipal Code Section 17.08.040 (E) to state that “no extensions of time are allowed for r esidential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a subsequent ballot measure . As a res ult, the Planning Commission does not have the authority to approve any discretionary extensions of time.

Section 3. Based on the findings and conclusions set forth in this Resolution, this Commission hereby denies Appeal AP P22-00004, denying Tentative Tract Extension TTE22-00005, causing Tentative Tract 17655 to expire.

Section 4. That the Secretary shall certify to the adoption of this Resolution.

ADOPTED AND APPROVED on this 10th day of November 2022.

______________________________________ _______________________________ Roger Abreo, Chair, Planning Commission
ATTEST:

____________________________________
Maricruz Montes, Secretary, Planning Commission

City of Hesperia

STAFF REPORT

DATE: December 20, 2022
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina Assistant City Manager
Ryan Leonard, Senior Planner

SUBJECT: Appeal to the City Council (APP22-00005); Applicant NV Hesperia Investors & Dayco Funding Corporation; APNs: 0405-261-15 thru 18 & 27 thru 30)

RECOMMENDED ACTION

It is recommended that the City Council adopt Resolution No. 2022-84, denying appeal APP22- 00005 and upholding the Planning Commission and Development Review Committee (DRC) denial of a third extension of time for Tentative Tract No. 17916 (TTE22-00006).

BACKGROUND

Proposal: On November 8, 2022 the Planning Commission voted 2 -1 (Commissioner’s Bartz and Dunbar were absent; Commissioner Steeno abstained) to uphold the DRC’s denial for a second extension of time for TT-15033. The Planning Commission denied the extension of time for the reasons that are listed below in this staff report. Although the applicant is requesting that the City Council grant this appeal to overturn the Planning Commission’s denial, the City Council is precluded from granting a discretionary extension of time.

Current General Plan, Zoning and Land Uses: The project is located on the southwest corner of Mojave Street and Topaz Avenue. The site is within the Low Density Residential (LDR) zone of the Main Street and Freeway Corridor Specific Plan . The surrounding land is designated as noted on Attachment 1. The property is currently vacant. Single-family residences exist to the north and to the west of the project. The properties to the south and to the east are vacant (Attachment 2).

Project Approval Timelines:
 On July 9, 2009, the Planning Commission approved TT-17916 to subdivide 40 gross acres into 177 single-family residential lots and a variance to eliminate the 500 square foot common open space per lot requirement. The Small Lot Subdivision Ordinance requires a minimum lot size of 4,500 square feet. The smallest lot within the subdivision is 4,998 square feet, the average lot size is 6,114 square feet, and the largest lot is 12,388 square feet in area. Approximately 12% of the lots are over 7,200 square feet. TT -17243 was approved for 3 years and was set to expire on July 21, 2012.

 In 2011 and 2013 the California Legislature passed assembly bills automatically extending the expiration dates of tentative maps. These automatic extensions amounted to 4 years of automatic State extensions for TT-17916. The automatic extensions are in addition to multiple City discretionary extensions that are allowed by the Subdivision Map Act. The Subdivision Map Act allows the City to extend a tentative tract map for a maximum of 6

Staff Report to the City Council
APP22-00005
December 20, 2022

total years. The 6 years is a cumulative total, and the extensions of time may be broken up into multiple increments.

 On May 18, 2016, the DRC approved the first extension of time for TT-17916 that extended the tract for an additional 3 years..

 On May 15, 2019 the DRC approved a second extension of time for TT -17916 that extended the tract for an additional 18 months. Table 1 provides the chronological order of the entitlements for this project.

 In 2020 the California Legislature passed Assembly Bill AB-1561 that granted an 18-month extension to residential entitlements that were otherwise due to expire before the end of 2021. AB-1561 was enacted as a result of the ongoing economic and administrative challenges created by the Covid -19 pandemic. Table 1 provides the chronological order of the entitlements for this project.

Table 1: Timeline of the Project Entitlement

ISSUES/ANALYSIS

In April of 2020, the applicant submitted grading plans and improvement plans to the Engineering Division for plan check. The grading plan and improvement plans were reviewed and returned to the applicant on 5 separate occasions, with each plan check containing various corrections . In August of 2022 the 5th plan check was returned to the applicant and there were no additional plan check corrections. However, consistent with the conditions of approval, the applicant was required to provide bonds and a subdivision improvement agreement to the City prior to the August, 21, 2022 expiration date . The applicant did not submit the required bonds to the City and staff subsequently informed the applicant that TR-17916 was determined to have officially expired.

On August 19, 2022 , the applicant submitted an application for an extensio n of time. On September 7, 2022, the Development Review Committee denied the extension (Attachment 3) on the basis that the request was in conflict with Measure N. Ballot Measure N was approved by City voters in November 2020. Measure N made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan , and City Municipal Code. Among other things, Measure N modified City Municipal Code Section 17.08.040 (E) to state that “no extensions of time are allowed for residential subdivisions.” Me asure N was approved by a majority of voters and

1 In prior correspondence to the applicant staff incorrectly stated that the expiration date was August 21, 2022. When staff was made aware of the issue it was determined that the City would honor the August 21, 2022 expiration date.

Land Use
Entitlement
Activity
Approval
Date
Effective
Date
Denial
Date
Expiration
Date
Length of
Extension
Tentative Tract No.
17916
07/09/2009 07/21/2009 07/21/2012 -
Assembly Bill 208;
AB-116
4 years of automatic State extensions 07/21/16 4 years
TTE16-00007 05/19/2016 07/21/2019 3 years
TTE19-00002 07/10/2019 01/21/2021 18 months
Assembly Bill 1561 18-month automatic State extension 07/21/20221 18 months

Staff Report to the City Council
APP22-00005
December 20, 2022

therefore may only be amended by a subsequent ballot measure. As a result, there is no mechanism in the Development Code that authorizes an approval process for any extensions of time. Furthermore, the Development Code may not be modified to allow for such an approval process.

It’s important to point out that while the City Council does not have the authority to approve a discretionary extension of time, the City Council is authorized under Government Code Section 65864 to enter into a development agreement that could extend the life of the tract. However, the applicant has not submitted an application for a development agreement. Furth ermore, development agreements are customarily considered as part of the land use entitlement application at the time when the project is initially approved, not 13 years after the original approval. In addition, a pproving a development agreement for this purpose would set a questionable precedent and would be inconsistent with Measure N.

CONCLUSION

The City Council does not have the authority to approve a discretionary extension of time. The City Council must uphold the Planning Commission’s denial of a third extension of time for Tentative Tract No. 17916.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENTS

1. Resolution No. 2022-84

2. Planning Commission Staff Report with Attachments

RESOLUTION NO. 2022-84

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, DENYING APPEAL APP2 2-00005, UPHOLDING THE PLANNING COMMISSION’S DENIAL OF TENTATIVE TRACT EXTENSION TTE22-00006, A THIRD EXTENSION OF TIME F OR TENTATIVE TRACT N O. 17916 LOCATED ON THE SOUTHWEST CORNER OF MOJAVE STREET
AND TOPAZ AVENUE (APP22-00005)

WHEREAS, NV Hesperia Investors & Dayco Funding Corporation has filed an application requesting approval of Appeal APP22-00005, to overturn the Development Review Committee’s denial of Tentative Tract Extension TTE22 -00006, a third extension of time for Tentative Tract No. 17916 described herein (hereinafter referred to as "Application"); and

WHEREAS, the Application applies to a third extension of time for Tentative Tract No. 17916 to subdivide 40 gross acres into 177 single-family residential lots and consists of Assessor's Parcel Numbers 0405-261-15 thru 18 & 27 thru 30; and

WHEREAS, TT-17916 was originally approved by the Planning Commission on July 9, 2009; and

WHEREAS, in 2011, and 2013 the California Legislature passed assembly bills AB-208 and AB- 116 that automatically extended the expiration dates of tentative maps. These automatic extensions amounted to 4 years of automatic State extensions; and

WHEREAS, on May 19, 2016, the Development Review Committee (DRC) approved the first extension of time for TT-17916 that extended the tract for an additional 3 years; and

WHEREAS, on July 10, 2019, the Development Review Committee (DRC) approved the second extension of time for TT-17916 that extended the tract for an additional 18 months; and

WHEREAS, In 2020 the California Legislature passed Assembly Bill AB -1561 that granted an 18-month extension to residential entitlements that were otherwise due to expire before the end of 2021; and

WHEREAS, TT-17655 was set to expire on July 21, 2022; and

WHEREAS, on September 7, 2022, the DRC denied a third extension of time for TT-17916; and

WHEREAS, on November 10, 2022, the Planning Commission upheld the DRC’s denial of a second extension of time for TT-15033; and

WHEREAS, this Application, as contemplated, proposes to appeal the Planning Commission’s denial of the extension of time for TT-17916; and

WHEREAS, the 40 gross acre site is currently vacant. Single-family residences exist to the north and to the west; the properties to the south and east are vacant; and

WHEREAS, the subject property is currently within the Low Density Residential (LDR) of the Main Street and Freeway Corridor Specific Plan; and

Resolution No. 2022-84

WHEREAS, in November 2020 a majority of voters of the City approved Ballet Measure N which made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan, and City Municipal Code. Among other things, Measure N modified City Municipal Code Secti on

17.08.040 (E) to state that “no extensions of time are allowed for residential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a subsequent ballot measure. As a result, the City Council does not have the au thority to approve any discretionary extensions of time; and

WHEREAS, denial of a project is exempt from the requirements of the California Environmental Quality Act; and

WHEREAS, on November 10, 2022, the Planning Commission of the City of Hesperia conducted duly noticed public hearings pertaining to the proposed Application, and concluded said hearing on that date; and

WHEREAS, on December 20, 2022, the City Council of the City of Hesperia conducted duly noticed public hearings pertaining to the proposed Application, and concluded said hearing on that date; and

WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

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

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

Section 2. Based upon substantial evidence presented to the City Council during the above-referenced December 20, 2022 hearing, including public testimony and written and oral staff reports, this Council specifically finds as follows:

(a) In November 2020 a majority of voters of the City approved Ballet Measure N which modified City Municipal Code Section 17.08.040 (E) to state that “no extensions of time are allo wed for residential subdivisions.” Measure N was approved by a ballot measure and therefore may only be amended by a subsequent ballot measure. As a result, the City Council does not have the authority to approve any discretionary extensions of time.

Section 3. Based on the findings and conclusions set forth in this Resolution, th e City Council hereby denies Appeal APP22-00005, denying Tentative Tract Extension TTE22- 00006, causing Tentative Tract 17916 to expire.

Section 4. 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 on this 20th day of December 2022.

______________________________________ _______________________________ Brigit Bennington, Mayor

Resolution No. 2022-84

ATTEST:

____________________________________
Erin Baum, Assistant City Clerk

City of Hesperia

STAFF REPORT
DATE: November 10, 2022
TO: Planning Commission
FROM: Rachel Molina, Assistant City Manager
BY: Ryan Leonard, Senior Planner
SUBJECT: Appeal to the Planning Commission (APP22-00005); Applicant NV Hesperia Investors & Dayco Funding Corporation; APNs: 0405-261-15 thru 18 & 27 thru 30)

RECOMMENDED ACTION
It is recommended t hat the Planning Commission adopt Resolution No . PC-2022-21, denying appeal APP22-00005 and upholding the Development Review Committee (DRC) denial of a third extension of time for Tentative Tract No. 17916 (TTE22-00006).

BACKGROUND
Proposal: On September 7, 2022, the DRC denied an application for a third extension of time for TT-17916. The DRC denied the extension of time for the reasons that are listed below in this staff report. Although the applicant is requesting that the Planning Commission grant this appeal to overturn the DRC’s denial, the Planning Commission is precluded from granting an extension of time.

Current General Plan, Zoning and Land Uses: The project is located on the southwest corner of Mojave Street and Topaz Avenue. The site is within the Low Density Residential (LDR) zone of the Main Street and Freeway Corridor Specific Plan . The surrounding land is designated as noted on Attachment 1. The property is currently vacant. Single-family residences exist to the north and to the west of the project. The properties to the south and to the east are vacant (Attachment 2).

Project Approval Timelines:
 On July 9, 2009, the Planning Commission approved TT-17916 to subdivide 40 gross acres into 177 single-family residential lots and a variance to eliminate the 500 square foot common open space per lot requirement. The Small Lot Subdivision Ordinance requires a minimum lot size of 4,500 square feet. The smallest lot within the subdivision is 4,998 square feet, the average lot size is 6,114 square feet, and the largest lot is 12,388 square feet in area. Approximately 12% of the lots are over 7,200 square feet. TT -17243 was approved for 3 years and was set to expire on July 21, 2012.  In 2011 and 2013 the California Legislature passed assembly bills automatically extending the expiration dates of tentative maps. These automatic extensions amounted to 4 years of automatic State extensions for TT-17916. The automatic extensions are in add ition to multiple City discretionary extensions that are allowed by the Subdivision Map Act. The Subdivision Map Act allows the City to extend a tentative tract map for a maximum of 6

Attachment 2

Staff Report to the Planning Commission
APP22-00005
November 10, 2022

total years. The 6 years is a cumulative total, and the extensions of time may be broken up into multiple increments.

 On May 18, 2016, the DRC approved the first extension of time for TT-17916 that extended the tract for an additional 3 years..

 On May 15, 2019 the DRC approved a second extension of time for TT -17916 that extended the tract for an additional 18 months. Table 1 provides the chronological order of the entitlements for this project.

 In 2020 the California Legislature passed Assembly Bill AB-1561 that granted an 18-month extension to residential entitlements that were otherwise due to expire before the end of 2021. AB -1561 was enacted as a result of the ongoing economic and administrative challenges created by the Covid -19 pandemic. Table 1 provides the chronological order of the entitlements for this project.

Table 1: Timeline of the Project Entitlement

ISSUES/ANALYSIS

In April of 2020, the applicant submitted grading plans and improvement plans to the Engineering Division for plan check. The grading plan and improvement plans were reviewed and returned to the applicant on 5 separate occasions, with each plan check containing vario us corrections. In August of 2022 the 5th plan check was returned to the applicant and there were no additional plan check corrections. However, consistent with the conditions of approval, the applicant was required to provide bonds and a subdivision improvement agreement to the City prior to the August, 21, 2022 expiration date . The applicant did not submit the required bonds to the City and staff subsequently informed the applicant that TR-17916 was determined to have officially expired.

On August 19, 2022 , the applicant submitted an application for an extension of time. On September 7, 2022, the Development Review Committee denied the extension (Attachment 3) on the basis that the request was in conflict with Measure N. Ballot Measure N was approved by City voters in November 2020. Measure N made changes to the City General Plan, Main Street and Freeway Corridor Specific Plan , and City Municipal Code. Among other things, Measure N modified City Municipal Code Section 17.08.040 (E) to state that “no extensions of time are allowed for residential subdivisions.” Measure N was approved by a majority of voters and

1 In prior correspondence to the applicant staff incorrectly stated that the expiration date was August 21, 2022. When staff was made aware of the issue it was determined that the City would honor the August 21, 2022 expiration date.

Land Use
Entitlement
Activity
Approval
Date
Effective
Date
Denial
Date
Expiration
Date
Length of
Extension
Tentative Tract No.
17916
07/09/2009 07/21/2009 07/21/2012 -
Assembly Bill 208;
AB-116
4 years of automatic State extensions 07/21/16 4 years
TTE16-00007 05/19/2016 07/21/2019 3 years
TTE19-00002 07/10/2019 01/21/2021 18 months
Assembly Bill 1561 18-month automatic State extension 07/21/20221 18 months