Hesperia City Council
March 7, 2023

Tuesday, March 7, 2023
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

HESPERIA FIRE PROTECTION DISTRICT - SPECIAL MEETING
Amended Agenda
Green Sheet Item 6 - Information updated after posting the Agenda 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
Larry Bird, Mayor Pro Tem Hesperia, CA 92345
Cameron Gregg, Council Member
Allison Lee, 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.

R
emote Public Comment:

P
ublic 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)947-10 56 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.

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March 7, 2023City 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

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

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

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

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

CLOSED SESSION - 5:30 PM
Roll Call
Mayor Brigit Bennington
Mayor Pro Tem Larry Bird
Council Member Allison Lee
Council Member Cameron Gregg
Council Member Rebekah Swanson
Conference with Real Property Negotiators – Property Negotiations Government Code Section – 54956.8

1. Negotiating Parties: City of Hesperia and Hong, Seung Location: APN 3064-461-03
Under Negotiation: Price and Terms
Conference with Labor Negotiator
Government Code Section 54957.6

1. Negotiations between the City of Hesperia and the Teamsters Local 1932 with the City's Negotiator. (Staff person: Rachel Molina, Assistant City Manager) CALL TO ORDER - 6:30 PM

March 7, 2023City Council Meeting Agenda
A. Invocation
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
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, February 21, 2023.

Recommended Action:

It
is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, February 21, 2023.

Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2023-2-21Attachments:

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

It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

March 7, 2023City Council Meeting Agenda
Staff Person: Director of Administrative Services Casey Brooksher SR Warrant Run 3-7-2023
Attachment 1 - Warrant Runs
Attachments:

3. Golf Course Cart Lease Agreement
Recommended Action:

It
is recommended that the City Council authorize the City Manager to approve and execute a lease agreement with VGM Financial Services , in the not-to-exceed amount of $387,652 , for a five (5) year golf cart lease pertaining to the operations of the Hesperia Golf Course & Country Club (Golf Course).

Staff Person: Director of Administrative Services Casey Brooksher SR Golf Cart Lease Agreement 3-7-2023Attachments:

4. Parcel Map No. 20534
Recommended Action:

It
is recommended that the City Council adopt Resolution No. 2023-09 approving Parcel Map 20534 to create two parcels from 2.03 gross acres within the Limited Agricultural (A1) zone located west of Eleventh Avenue, approximately 870 feet south of Sycamore Street in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant: Emmanuel Aguirre; APN: 0406-072-17)
Staff Person: Deputy Development Services Director Dani Fox SR Parcel Map 20534 3-7-2023
Resolution 2023-09
Attachment 2 - Parcel Map 20534
Attachments:

5. Parcel Map No. 20569
Recommended Action:

It
is recommended that the City Council adopt Resolution No. 2023-10 approving Parcel Map 20569 to create two parcels from 2.62 gross acres within the Limited Agricultural (A1) zone located south of Sultana Street, approximately 900 feet west of Cottonwood Avenue in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant:

Palmas Del Mar LP/ Matthew Mays; APN: 0409-061-08)
Staff Person: Deputy Development Services Director Dani Fox SR Parcel Map 20569 3-7-2023
Resolution 2023-10
Attachment 2 - Parcel Map 20569
Attachments:

6. Parcel Map No. 20577
Recommended Action:

March 7, 2023City Council Meeting Agenda
It is recommended that the City Council adopt Resolution No. 2023-11 approving Parcel
Map No. 20577 to create three parcels from 10.87 gross
acres within the Office Park zone of the Main Street and Freeway Corridor Specific Plan located east of Mariposa Road and north of Mojave Street in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant: Seasons Land Corporation; APN: 0405-331-26) Staff Person: Deputy Development Services Director Dani Fox SR Parcel Map 20577 3-7-2023
Resolution 2023-11
Attachment 2 - Parcel Map 20577
Attachments:

7. Resolution Opposing the Taxpayer Protection and Government Accountability Act (Initiative 21-0042A1)
Recommended Action:

It is
recommended that the City Council adopt Resolution No. 2023-14, opposing the voter Initiative No. 21-004A1 (Taxpayer Protection and Government Accountability Act).

Staff Person: Assistant City Manager Rachel Molina
SR Opposing Initiative 21-0042A1 3-7-2023
Resolution 2023-14
Attachments:

8. Ratifying of Declaration of Local Emergency
Recommended Action:

It is
recommended that the City Council adopt Resolution No. 2023-17 ratifying the Director of Emergency Services’ issuance of a local emergency declaration.

Staff Person: City Manager Nils Bentsen
SR Ratifying of Declaration of Local Emergency 3-7-2023 Resolution 2023-16
Resolution 2023-17
Attachments:

NEW BUSINESS

9. Fiscal Year 2022-23 Mid-Year Budget Review
Recommended Action:

It is recommended that the Fiscal Year (FY) 2022-23 Mid-Year Budget Review be received and filed and the related following resolutions, which amend the respective FY 2022-23 Budgets for the City of Hesperia and the Hesperia Water District be approved:
1) City of Hesperia Resolution No. 2023-08
2) Hesperia Water District HWD No. 2023-02
Staff Person: Director of Administrative Services Casey Brooksher

March 7, 2023City Council Meeting Agenda
SR Mid Year Budget Review 3-7-2023
Attachment 1 - FY 22-23 Mid Year Budget Review Report
Resolution 2023-08
Resolution HWD 2023-02
Attachments:

10. Receive and File Report- Temporary Signage Regulations Recommended Action:

It
is recommended that the City Council receive and file this report related to temporary special event permits, temporary signage, political signage and to give direction to staff.

Staff Person: Senior Planner Ryan Leonard
SR Temporary Signage Regulations 3-7-2023
Attachment 1- Article XI -Special Events and Temporary Uses Attachment 2- Section 16.36.090 of the Municipal Code
Attachments:

11. Amendment to Advance Disposal Franchise Agreement Establishing Procurement and Capacity Planning
Recommended Action:

It
is recommended that the City Council authorize the City Manager to execute an amendment, in a form approved by the City Attorney, to add Section 6.5.4 and Section 8 in addition to language to establish the capacity planning of the Bestway Disposal, Inc., dba Advance Disposal (Advance Disposal) Franchise Agreement.

Staff Person: Management Analyst Lesa Byars
SR Advance Disposal Franchise Agreement Amendment 3-7-2023 Resolution 2023-13
Attachment 2 - Amendment No. 3 to Franchise Agreement
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

March 7, 2023City Council Meeting Agenda
I, Erin Baum, Assistant City Clerk of the City of Hesperia, California do hereby certify that I caused to be posted the foregoing agenda on Wednesday, March 1, 2023 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.

City of Hesperia
City of Hesperia
Meeting Minutes - Draft
City Council
Tuesday, February 21, 2023 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 - Mayor Bennington, Mayor Pro Tem Bird, Council Member Swanson, Council Member Gregg and Council Mem
ber Lee
Conference with Real Property Negotiators – Property Negotiations - Government Code Section – 54956.8

1. Negotiating Parties: City of Hesperia and APN 0405-062-72 and 0405-062-73 - Under Negotiations: Price and Terms
Conference with Labor Negotiator - Government Code Section 54957.6

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

Present: 5 - Mayor Bennington, Mayor Pro Tem Bird, Council Member Swanson, Council Member Gregg and Council Mem
ber Lee
D. A genda Revisions and Announcements by City Clerk
None.

City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345

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

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

Daniel Krist commented on community issues.

Robert Davie commented on Maple Avenue.

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

The motion carried by the following vote:

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

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, February 7, 2023.

Recommended Action:

It is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, February 7, 2023.

Sponsors: Assistant Cit
y Clerk Erin Baum

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

Sponsors: Director of Administrative Services Casey Brooksher

3. Treasurer’s Cash Report for the unaudited period ended December 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 Communit
y Redevelopment Agency, Hesperia Housing Authority, Community Development Commission and Water District.

Sponsors: Director of Administrative Services Casey Brooksher

4. Contract Amendment for Unarmed Security Services
Recommended Action:

It is recommended that the City Council and Board of Directors of the Hesperia Water District (District) authorize the City Manager to approve an
amendment to the existing contract with Alltech Industries, Inc. in the amount of $46,184, for a total not-to-exceed amount of $96,184 for unarmed security services.

City of Hesperia
Sponsors: Director of Public Works Jeremy McDonald

5. Guardian Records Management and Storage Contract Amendment Recommended Action:

It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to approve an
amendment to the existing contract with Guardian Records Managem ent and
Storage (Guardian), to extend the current contract for one year, and add an additional $25,200, for a revised not-to-ex
ceed contract amount of $85,200, for the storage, maintenance and destruction of City records.

Sponsors: Assistant Cit
y Clerk Erin Baum

PUBLIC HEARING

6. Appeal to the City Council (APP22-00006); Applicant: Trio Grande, LLC; APN: 3057-051-09 Recommended Action:

It is recommended that the City Council adopt Resolution No. 2023-07, denying appeal APP22-00006 and upholding the Planning
Commission and Development Review Committee (DRC) denial of a fourth extension of tim
e for Tentative Tract No. 17681 (TTE22-00008).

Sponsors: Senior Planner Ryan Leonard
A motion was made by Bennington, seconded by Swanson that this item be approved. The motion carried b
y the following vote:

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

COUNCIL COMMITTEE REPORTS AND COMMENTS
Council Member Swanson commented on attendance at SBCTA – where a plan for an escape route should I-15 be shut down, the Ranchero Rd widening, and the expected Brightline completion date were discussed.

Council Member Lee commented on her Planning Commission attendance.

Council Member Gregg commented on Maple Ave. comment follow up and requested a recommendation item from staff be added to a future agenda to help speed up the plan check process, and help developers comply with corrections faster.

Mayor Pro Tem Bird commented on water conservation, the Maple Ave. comment, and gave a VVTA update on their transition to new leadership, Vanpool being top 20 in the nation, that they are under budget by $873,000, ridership is up this year, and they are purchasing 20 newbusses, and had a good audit report. He also gave an update from his VVWRA meeting where they are adjusting tipping fees and looking at expansion.

Mayor Bennington attended a Legislative Action Meeting noting that County, State, and Federal representatives are busy for us. She attended the Brightline status dinner update and the Victor Valley Republican Club question/answer session. She gave an update from the LOCC Desert Mountain Division meeting. All but two cities attended, and the Joshua Tree conservancy issue was discussed. Mayor Nassif and Council Member Bishop are on the league board and will share our concerns with the Joshua tree issue, and Fentanyl. She also attended the Don Reyes
Cafe at the Hesperia airport grand opening.

City of Hesperia

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
City Manager briefed Council on anticipated response to possible snow in the area later this week.

ADJOURNMENT - Meeting was adjourned at 7:21 pm.
_____________________________
Erin Baum,
Assistant City Clerk

City of Hesperia

STAFF REPORT

DATE: March 7, 2023
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
Martha Cortes, 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 January 21, 202 3 through February 3, 2023.

The Wires amount total is as follows:

 $20,000 to Commonwealth Land Title Company for payment for purchase of APN 0410 - 211-05 & 0410-211-07, Escrow 09185991-918 GKD.

ATTACHMENT(S)

1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $2,104,060.83 $272,229.75 $0.00 $2,376,290.58 Successor Agency 0.00 0.00 0.00 0.00
Housing Authority 307.50 180.10 0.00 487.60
Community Development Commission 0.00 0.00 0.00 0.00
Water 539,424.75 111,262.93 20,000.00 670,687.68
Totals $2,643,793.08 $383,672.78 $20,000.00 $3,047,465.86

Attachment 1

City of Hesperia

STAFF REPORT

DATE: March 7, 2023
TO: Mayor and City Council Members
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Keith Cheong, Management Analyst
SUBJECT: Golf Cart Lease Agreement

RECOMMENDED ACTION
It is recommended that the City Council authorize the City Manager to approve and execute a lease agreement with VGM Financial Services, in the not-to-exceed amount of $387,652, for a five (5) year golf cart lease pertaining to the operations of the Hesperia Golf Course & Country Club (Golf Course).

BACKGROUND

In April 2010, the former Hesperia Community Redevelopment Agency purchased the Golf Course, while the City of Hesperia (City) purchased the associated water rights. Upon the dissolution of the RDA on February 1, 2012, the Golf Course’s ownership was transferred to the City. On August 16, 2011, after the City conducted an extensive public outreach program in order to determine the long-term use of the property, the City Council voted to maintain the property as a golf course and negotiate with the Hesperia Recreation and Parks District (HRPD) for an agreement to operate and maintain the golf course. The HRPD managed the operations and maintenance of the golf course until the HRPD notified the City in June 2019 that they were no longer interested in continuing operations and the agreement expired in September 2019.

On August 20, 2019, the City Council authorized the award of a five (5) year professional services agreement to Donovan Bros. to assume golf course operations management from the HRPD and to make capital improvements.

The City’s previous golf carts lease agreement for the Golf Course expired on August 16, 2022, with the golf course currently utilizing a temporary fleet of golf carts in order to maintain business operations. Due to the age of the fleet of golf carts and expiring lease agreement, the City solicited quotes in February 2022 for a new five (5) year lease of new golf carts to replace the existing fleet. Three quotes were obtained by the City with VGM Financial Services determined to be the lowest bidder.

On March 1, 2022, the City Council approved Resolution No. 2022-15 and authorized the City Manager to approve a five (5) year golf cart lease agreement to VGM Financial Services in the amount of $335,769.

ISSUES/ANALYSIS

Due to production delays in manufacturing the golf cart fleet along with the increase in inflation since City Council’s original approval, the lease agreement amount with VGM Financial

Staff Report to the Mayor and City Council Members
Golf Cart Lease Agreement
March 7, 2023

Services has increased to $387,652. Despite the increased lease costs, the revised VGM Financial Services lease agreement is still less than other comparable golf cart lease quotes.

FISCAL IMPACT

Initial payments for the golf cart lease are paid for by Donovan Bros. as part of golf course operations management agreement. The City is responsible to fund the golf course operating losses incurred by Donovan Bros. Funding for the Fiscal Year (FY) 20212-23 golf course operating losses was included in the FY 2022-23 adopted budget. Funding for golf course operating losses in subsequent fiscal years will be included in the annual budgets.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENTS

None

City of Hesperia

STAFF REPORT

DATE: March 7, 2023
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Dani Fox, Deputy Development Services Director
Denise Montes, Administrative Analyst

SUBJECT: Parcel Map No. 20534

RECOMMENDED ACTION

It is recommended that the City Council adopt Resolution No. 2023-09 approving Parcel Map 20534 to create two parcels from 2.03 gross acres within the Limited Agricultural (A1) zone located west of Eleventh Avenue, approximately 870 feet south of Sycamore Street in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant:

Emmanuel Aguirre; APN: 0406-072-17)

BACKGROUND

On July 27, 2022, the Design Review Committee approved Tentative Parcel Map No. 20534 to create two parcels from 2.03 gross acres within the Limited Agricultural (A1) zone located west of Eleventh Avenue, approximately 870 feet south of Sycamore Street in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant: Emmanuel Aguirre; APN: 0406-072-17)

Staff has reviewed the map and determined that it complies with all General Plan and zoning regulations, all required conditions of approval, and with all local ordinances related to the creation of these parcels.

ISSUES/ANALYSIS

There are no issues identified with this item.

FISCAL IMPACT

None

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Resolution No. 2023-09

Staff Report to Mayor and Council Members
Final Parcel Map No. 20534
March 7, 2023

2. Parcel Map No. 20534

RESOLUTION NO. 2023-09

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING PARCEL MAP 20534 TO CREATE TWO PARCELS FROM 2.03 GROSS ACRES WITHIN THE LIMITED AGRICULTURAL (A1) ZONE LOCATED WEST OF ELEVENTH AVENUE, APPROXIMATELY 870

FEET SOUTH OF SYCAMORE STREET IN CONJUNCTION WITH A
CATEGORICAL EXEMPTION UNDER CEQA SECTION 15315 MINOR LAND DIVISIONS. (APPLICANT: EMMANUEL AGUIRRE; APN: 0406-072-17)

WHEREAS, On July 22, 2022, the Design Review Committee approved Tentative Parcel Map No. 20534 to create two parcels from 2.03 gross acres within the Limited Agricultural (A1) zone located west of Eleventh Avenue, approximately 870 feet south of Sycamore Street in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant:

Emmanuel Aguirre; APN: 0406-072-17); and

WHEREAS, Parcel Map No. 20534 is to create two parcels from 2.03 gross acres within the Limited Agricultural (A1) zone located west of Eleventh Avenue, approximately 870 feet south of Sycamore Street in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant: Emmanuel Aguirre; APN: 0406-072-17); and

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

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

Section 1. Parcel Map No. 20534 is hereby approved and the City Clerk is authorized to present same to the County Recorder to be filed for record.

Section 2. 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 7th day of March, 2023.

Brigit Bennington
Mayor
ATTEST:

Erin Baum
Assistant City Clerk

Attachment 2

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City of Hesperia

STAFF REPORT

DATE: March 7, 2023
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Dani Fox, Deputy Development Services Director
Denise Montes, Administrative Analyst

SUBJECT: Parcel Map No. 20569

RECOMMENDED ACTION

It is recommended that the City Council adopt Resolution No. 2023-10 approving Parcel Map 20569 to create two parcels from 2.62 gross acres within the Limited Agricultural (A1) zone located south of Sultana Street, approximately 900 feet west of Cottonwood Avenue in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant: Palmas Del Mar LP/ Matthew Mays; APN: 0409-061-08)

BACKGROUND

On July 27, 2022, the Design Review Committee approved Tentative Parcel Map No. 20569 to create two parcels from 2.62 gross acres within the Limited Agricultural (A1) zone located south of Sultana Street, approximately 900 feet west of Cottonwood Avenue in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant: Palmas Del Mar LP/ Matthew Mays; APN: 0409-061-08)

Staff has reviewed the map and determined t hat it complies with all General Plan and zoning regulations, all required conditions of approval, and with all local ordinances related to the creation of these parcels.

ISSUES/ANALYSIS

There are no issues identified with this item.

FISCAL IMPACT

There are no significant fiscal impacts to the City related to this action.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Resolution No. 2023-10

Staff Report to Mayor and Council Members
Final Parcel Map No. 20569
March 7, 2023

2. Parcel Map No. 20569

RESOLUTION NO. 2023-10

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING PARCEL MAP NO. 20569 TO CREATE TWO PARCELS FROM 2.62 GROSS ACRES WITHIN THE LIMITED AGRICULTURAL (A1) ZONE LOCATED SOUTH OF SULTANA STREET, APPROXIMATELY 900

FEET WEST OF COTTONWOOD AVENUE IN CONJUNCTION WITH A
CATEGORICAL EXEMPTION UNDER CEQA SECTION 15315 MINOR LAND DIVISIONS. (APPLICANT: PALMAS DEL MAR LP/ MATTHEW MAYS; APN:
0409-061-08)

WHEREAS, On July 22, 2022, the Design Review Commit tee approved Tentative Parcel Map No. 20569 to create two parcels from 2.62 gross acres within the Limited Agricultural (A1) zone located south of Sultana Street, approximately 900 feet west of Cottonwood Avenue in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant: Palmas Del Mar LP/ Matthew Mays; APN: 0409-061-08); and

WHEREAS, Parcel Map No. 20569 to create two parcels from 2.62 gross acres within the Limited Agricultural (A1) zone located south of Sultana Street, approximately 900 feet west of Cottonwood Avenue in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant: Palmas Del Mar LP/ Matthew Mays; APN: 0409-061-08); and

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

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

Section 1. Parcel Map No. 20569 is hereby approved and the City Clerk is authorized to present same to the County Recorder to be filed for record.

Section 2. 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 7th day of March, 2023.

Brigit Bennington
Mayor
ATTEST:

Erin Baum
Assistant City Clerk

Attachment 2

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT

DATE: March 7, 2023
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Dani Fox, Deputy Development Services Director
Denise Montes, Administrative Analyst

SUBJECT: Parcel Map No. 20577

RECOMMENDED ACTION

It is recommended that the City Council adopt Resolution No. 2023-11 approving Parcel Map No. 20577 to create three parcels from 10.87 gross acres within the Office Park zone of the Main Street and Freeway Corridor Specific Plan located east of Mariposa Road and north of Mojave Street in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant: Seasons Land Corporation; APN: 0405-331-26)

BACKGROUND

On November 2, 2022, the Design Review Committee approved Tentative Parcel Map No. 20577 to create three parcels from 10.87 gross acres within the Office Park zone of the Main Street and Freeway Corridor Specific Plan located east of Mariposa Road and north of Mojave Street in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant: Seasons Land Corporation; APN: 0405-331-26)

Staff has revie wed the map and determined that it complies with all General Plan and zoning regulations, all required conditions of approval, and with all local ordinances related to the creation of these parcels.

ISSUES/ANALYSIS

There are no issues identified with this item.

FISCAL IMPACT

There are no significant fiscal impacts to the City related to this action.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Resolution No. 2023-11

Staff Report to Mayor and Council Members
Final Parcel Map No. 20577
March 7, 2023

2. Parcel Map No. 20577

RESOLUTION NO. 2023-11

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING PARCEL MAP NO. 20577 TO CREATE THREE PARCELS FROM 10.87 GROSS ACRES WITHIN THE OFFICE PARK ZONE OF

THE MAIN STREET AND FREEWAY CORRIDOR SPECIFIC PLAN LOCATED

EAST OF MARIPOSA ROAD AND NORTH OF MOJAVE STREET IN

CONJUNCTION WITH A CATEGORICAL EXEMPTION UNDER CEQA
SECTION 15315 MINOR LAND DIVISIONS. (APPLICANT: SEASONS LAND CORPORATION; APN: 0405-331-26)

WHEREAS, On November 2, 2022, the Design Review Com mittee approved Tentative Parcel Map No. 20577 to create three parcels from 10.87 gross acres within the Office Park zone of the Main Street and Freeway Corridor Specific Plan located east of Mariposa Road and north of Mojave Street in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant: Seasons Land Corporation; APN: 0405-331-26); and

WHEREAS, Parcel Map No. 20577 is to create three parcels from 10.87 gross acres within the Office Park zone of the Main Street and Freeway Corridor Specific Plan located east of Mariposa Road and north of Mojave Street in conjunction with a categorical exemption under CEQA Section 15315 Minor Land Divisions. (Applicant: Seasons Land Corporation; APN: 0405-331-26); and

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

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

Section 1. Parcel Map No. 20577 is hereby approved and the City Clerk is authorized to present same to the County Recorder to be filed for record.

Section 2. 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 7th day of March, 2023.

Brigit Bennington
Mayor
ATTEST:

Erin Baum
Assistant City Clerk

Attachment 2

City of Hesperia

STAFF REPORT
DATE: March 7, 2023
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Tammy Pelayes, Assistant to the City Manager
Lesa Byars, Management Analyst
SUBJECT: Resolution Opposing the Taxpayer Protection and Government Accountability Act (Initiative 21-0042A1)

RECOMMENDED ACTION
It is recommended that the City Council adopt Resolution No. 2023-14, opposing the voter Initiative No. 21-004A1 (Taxpayer Protection and Government Accountability Act).

BACKGROUND
In 2018, the "Tax Fairness, Transparency and Accountability Act" was being circulated to qualify for the November 2018 ballot. If passed, this initiative would have drastically limited local revenue authority. Through the successful work and advocacy of municipalities and the League of California Cities ("Cal Cities"), the measure's proponents withdrew the initiati ve from the 2018 ballot.

On January 4, 2022, the California Business Roundtable filed Initiative No. 21-0042A1, known as the "Taxpayer Protection and Government Accountability Act." This current measure is far more detrimental to cities than the previous measure filed in 2018, because it would decimate vital local and state services to the benefit of large corporations.

On February 1, 2023, the “Taxpayer Protection and Government Accountability Act,” or AG# 21- 0042A1, qualified for the November 2024 ballot. This anti-local control measure will decimate vital local and state services to the benefit of wealthy corporation. The measure is sponsored by the California Business Roundtable (CBRT), the lobbying arm of the largest and wealthiest corporations in California. The initiative is purported to be a “taxpayer protection act”, but in reality it is an aggressive action against local-control, which harms local residents, business owners, and taxpayers as a whole..

Cal Cities, along with a broad coalition of local governments, special districts, public safety, education, labor, and infrastructure advocates, strongly oppose this initiative.

ISSUES/ANALYSIS
The initiative seeks to severely limit the ability of both state and local governments to enact, modify or expand taxes, assessments, fees, and other property -related charges that will have severely restrict the ability of cities to deliver essential services and infrastructure needs. Initiative 21 -

Staff Report to the Mayor and Council Members
Resolution Opposing 21-0042A1
March 7, 2023

0042A1 proposes adopting new and more stringent rules for assessments, fees, taxes and other property-related fees. It goes so far as to restrict the ability of local governments to issue fines and penalties to entities that violate local water quality, public health, public safety , and other related ordinances.

Alarmingly, the initiative includes provisions that would retroactively void all state and local taxes or fees adopted after January 1, 2022 , if they do no t align with the provisions of this initiative.

Fundamentally, it would allow California voters to invalidate the prior actions of local vo ters and elected bodies.

If passed, Initiative 21-0042A1 has the potential to jeopardize vital local services by risking billions of dollars currently dedicated to critical local services and potentiall y forcing cuts to public services. For many jurisdictions, that means cuts to fire and emergency response, parks, libraries, affordable housing, and more. It also has the potential to reduce funding for critical infrastructure like streets, roads, public transportation, drinking water, new schools, sanitation, and utilities. The detrimental consequences of this Initiative cannot be overstated.

Staff is recommending the City Council adopt a resolution opposing the Taxpayer Protection and Government Accountability Act (Attachment 1), to demonstrate how harmful this measure would be to the community and the State of California.

FISCAL IMPACT

None

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENTS:

1. Resolution No. 2023-14

RESOLUTION NO. 2023-14

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, OPPOSING INITIATIVE 21 -0042A1 (TAXPAYER PROTECTION

AND GOVERNMENT ACCOUNTABILITY ACT)
WHERE
AS, an association representing California's wealthiest corporations is behind a deceptive proposition aimed for the November 2024 statewide ballot; and WHER
EAS, the measure creates new constitutional loopholes that allow corporations to pay far less than their fair share for the impacts they have on our communities, including local infrastructure, our environment, water quality, air quality, and natural resources; and WHER
EAS, the measure includes undemocratic provisions that would make it more difficult for local voters to pass measures needed to fund local services and infrastructure, and would limit voter input by prohibiting local advisory measures where voters provide direction on how they want their local tax dollars spent; and
WHER
EAS, the measure makes it much more difficult for state and local regulators to issue fines and levies on corporations that violate laws intended to protect our environment, public health and safety, and our neighborhoods; and
WHEREAS, the measure puts billions of dollars currently dedicated to state and local services at risk, and could force cuts to public schools, fire and emergency response, law enforcement, public health, parks, libraries, affordable housing, services to support homeless residents, mental health services, and more; and
WHER
EAS, the measure would also reduce funding for critical infrastructure like streets and roads, public transportation, drinking water, new schools, sanitation, and utilities.

NOW T
HEREFORE, BE IT RESOLVED that the City Council of the City of Hesperia hereby opposes Initiative 21-0042A1.

THERE
FORE, BE IT FURTHER RESOLVED, that the City Council of the City of Hesperia will join the NO on Initiative 21 -0042A1 coalition, a growing coalition of public safety, labor, local government, infrastructure advocates, and other organizations throughout the state.

ADOP
TED AND APPROVED this 7th day of March 2023.
______________________________
Br
igit Bennington, Mayor
ATTEST:
____________________________
Erin Baum
Assistant City Clerk

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City of Hesperia

STAFF REPORT

DATE: March 7, 2023
TO: Mayor and Council Members

FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
SUBJECT: Ratifying of Declaration of Local Emergency

RECOMMENDED ACTION

It is recommended that the City Council a dopt Resolution No. 2023-17 ratifying the Director of Emergency Services’ issuance of a local emergency declaration.

BACKGROUND

Code Section 2.20.060 of the Hesperia Municipal Code empowers the Director of Emergency Services to proclaim the existence or threatened existence of a local emergency when said City is affected or likely to be affected by a public calamity and the City Council is not in session.

On Friday, February 2 4, 2023, a multi-day extreme winter storm system impacted Hesperia causing severe damage. This storm event has resulted in damage across the City requiring numerous road closures due to stormwater erosion of the portions of roadway, severity of potholes and other hazards, and related damage.

The Director of Emergency Services , in monitoring the situation in coordination with San Bernardino County Office of Emergency Services, believes the declaration of a local emergency to be appropriate. San Bernardino County has similarly declared a State of Emergency related to this storm damage.

ISSUES/ANALYSIS

Pursuant to Government Code Section 8630 states:
(a) A local emergency may be proclaimed only by the governing body of a city, county, or city and county, or by an official designated by ordinance adopted by that governing body. (b) Whenever a local emergency is proclaimed by an official designated by ordinance, the local emergency shall not remain in effect for a period in excess of seven days unless it has been ratified by the governing body.
(c) The governing body shall review the need for continuing the local emergency at least once every 60 days until the governing body terminates the local emergency. (d) The governing body shall proclaim the termination of the local emergency at the earliest possible date that conditions warrant.

FISCAL IMPACT

Staff Report to the Mayor and Council
Ratification of Declaration of Emergency
March 7, 2023

There is no fiscal impact associated with this declaration, however the declaration may assist the City in receiving disaster funding related to damages and expenses incurred as a result of an extreme winter storm event.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENTS

1. Resolution No. 2023-16 Emergency Declaration

2. Resolution No. 2023-17, Ratifying Emergency Declaration

RESOLUTION NO. 2023-16

A RESOLUTION BY THE DIRECTOR OF EMERGENCY SERVICES OF

THE CITY OF HESPERIA, CALIFORNIA, CONFIRMING THE

EXISTENCE OF A LOCAL EMERGENCY

WHEREAS, Ordinance No. 45 of the City of Hesperia empowers the Director of Emergency Services, to proclaim the existence or threatened existence of a local emergency when said city is affected or likely to be affected by the public calamity and the City Council is not in session; and

WHEREAS, the Director of Emergency Services, of the City of Hespe ria does hereby find:

1. That conditions of extreme peril to the safety of persons and property have arisen within the City of Hesperia caused by:

Winter Storm Event

NOW THEREFORE, BE IT PROCLAIMED that a local emergency now exists throughout the City of Hesperia.

IT IS FURTHER PROCLAIMED AND ORDERED that during the existence of said local emergency, the powers, functions, and duties of the emergency organization of the City of Hesperia shall be those prescribed by state law, by ordinance, and resolut ions of this city, and by this city’s Emergency Plan, as approved by the City Council.

Local Emergency is declared on February 28, 11:00 am, 2023.

Dated: February 28, 2023 By Nils Bentsen, City Manager ___________ (Director of Emergency Services)

RESOLUTION NO. 2023-17

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, RATIFYING THE CITY OF HESPERIA’S DECLARATION OF A LOCAL EMERGENCY ON TUESDAY, FEBRUARY 28, 2023.

WHEREAS, the California Government Code §8634 authorizes the C ity Council of the City of Hesperia to promulgate orders and regulations necessary to provide for the protection of life and property; and

WHEREAS, the City of Hesperia established its authority to designate an office authorized to declare a Local Emerg ency within Chapter 2.20 of the Hesperia Municipal Code; and

WHEREAS, on MARCH 7, 2023, the City Council adopted Resolution No. 2023- 17 ratifying the Declaration of a Local Emergency which was executed at 10:00 a.m. on February 28, 2023 by Nils Bentsen, Director of Emergency Services, City of Hesperia.

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

Section 1. All facts as set forth above are true and correct.

Section 2. The City’s Declaration of a Local Emergency issued by the Director of Emergency Services of the City of Hesperia on February 28, 2023 is hereby ratified and is in full force and effect until such time as the Declaration is terminated.

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

ADOPTED AND APPROVED THIS 7th DAY OF MARCH, 2023.

______________________________
Brigit Bennington, Mayor
ATTEST:

_______________________
Erin Baum, Assistant City Clerk

City of Hesperia

STAFF REPORT

RECOMMENDED ACTION

It is recommended that the Fiscal Y ear (FY) 2022-23 Mid-Year Budget Review be received and filed and the related following resolutions, which amend the respective FY 2022-23 Budgets for the City of Hesperia and the Hesperia Water District be approved:

1) City of Hesperia Resolution No. 2023-08
2) Hesperia Water District HWD No. 2023-02

BACKGROUND
In compliance with the City Council’s policy direction, staff has prepared the FY 2022-23 Mid-Year Budget Review for the City Council , the Hesperia Housing Authority , Community Development Commission, the Hesperia Fire Protection District and the Hesperia Water District Board’s consideration and action.

ISSUES/ANALYSIS
The attached document entitled “ FY 2022-23 Mid-Year Budget Review” includes a report on the status of the City’s FY 2022-23 Budget and financial plan for the first six months of the current fiscal year. The report format is designed to facilitate the review of complex financial information for an efficient and effective financial review process.

FISCAL IMPACT
See FY 2022-23 Mid-Year Budget Review attached.

ALTERNATIVE

1. Provide alternative direction to staff.

ATTACHMENTS

1. FY 2022-23 Mid-Year Budget Review

2. Resolution No. 2023-08

3. Resolution HWD No. 2023-02
DATE: March 7, 2023
TO: Mayor and Council Members
Chair and Commission, Hesperia Housing Authority
Chair and Commission, Community Development Commission
Chair and Board Members, Hesperia Fire Protection District Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Lorraine Carmona, Budget/Finance Specialist
SUBJECT: Fiscal Year 2022-23 Mid-Year Budget Review

FISCAL YEAR 2022-23
MID-

YEAR BUDGET REVIEW
Mar
ch 7, 2023
Attachment 1

2022-23 MID-YEAR BUDGET REVIEW REPORT
- 2 -

T A B L E O F C O N T E N T S

Page
Executive Summary ............................................................................................................................ 3 Status of FY 2022-23 Budget, Budget Amendments, and Reserves:

General Fund .......................................................................................................................... 5 Water District .......................................................................................................................... 6 Streets Maintenance ............................................................................................................... 7 FY 2022-23 December 31, 2022 Year-To-Date Revenue Review:

Major Funds Revenue Summary ............................................................................................ 8 General Fund Revenues ......................................................................................................... 9 Community Development Block Grant Revenue ..................................................................... 11 Hesperia Housing Authority Revenue ..................................................................................... 11 Street Related Funds Revenue ............................................................................................... 12 Other City Funds Revenue ..................................................................................................... 14 Water District Revenue ........................................................................................................... 15 Department FY 2022-23 Budget Expenditure Status Summary ........................................................... 17 Total Expenditures By Department and Program ................................................................................. 17 Proposed Budget Amendments – Summary ........................................................................................ 22 Proposed Budget Amendments – Narrative ......................................................................................... 22 2022-23 Mid-Year Budget Salaries and Positions ................................................................................ 24 2023-24 Tentative Budget Calendar ................................................................................................ .... 25

2022-23 MID-YEAR BUDGET REVIEW REPORT
- 3 -

EXECUTIVE SUMMARY
The following chart compares the FY 2022-23 Budget and December 2022 year-to-date (YTD) revenue and expenditure totals. The percentage comparisons for revenues and expenditures are based on comparing the December 2022 YTD to the FY 2022- 23 Amended Budget. The Amended Budget is used to accurately reflect any changes to the adopted budget that occur from City Council approving budget amendments during the first six months of the fiscal year.

Status of Overall City Fiscal Year 2022-2 3 Budget

• Revenue: Based upon the analysis of the revenue performance through December 2022, total revenue collected is $56.4 million, which is $4.5 million or 9% more than December 2021 YTD revenue of $51.8 million. Overall, 39% of the budgeted revenue has been collected through December 2022, which is typical due to the timing of payments related to some larger revenue sources , such as several tax -based revenues, Development Impact Fees, and reimbursements for Capital Improvement Projects. Additional details are provided further within the report.

• Expenditures: As referenced in the chart above, expenditures are 31% of the amended budget through December 2022. Operating expenditures are 45% expended which is typical for the first half of the fiscal year. Non-operating expenditures are 15% expended YTD, which is due to multiple capital improvement projects (CIP) funds that have minimal expenditures through the second quarter and will increase as projects move forward. It should be noted that there are four (4) budget amendments totaling $141,714 included in this report.

• Reserves: The General Fund and Water District (operating and capital) exceed the City Council’s R eserve Policy which established that a minimum of two (2) months of the annual expenditures be held in cash. Th e following estimated reserve calculations are based on the June 30, 2022 ending cash balances included in the June 30, 2022 audited Annual Comprehensive Financial Report (ACFR). Using the ACFR audited data assures that the estimated reserves are based on actual information. In addition, the four (4) Mid-Year Budget Amendments, totaling $141,714, are reflected below where appropriate:

2022-23 2022-23 December Revised %
Budget Revised 2022 YTD Received/Expended
Revenue 144,010,399$ 146,141,441$ 56,352,723$ 39% Use of Reserves 13,088,386 13,157,081
Net Transfers 0 0
Total Resources 157,098,785 159,298,522
Expenditures 133,605,549 137,564,958 42,793,024 31% Difference 23,493,236$ 21,733,564$
10% Cash Reserves 4,442,793$ 10% 3,561,426$ 10%
Cash Reserves Above 10% Reserve 13,115,901 30% 21,629,945 61% Total Estimated Cash Reserves 17,558,694 $ 40% 25,191,371$ 71% Months of Cash 4.7 8.5
Water DistrictGeneral Fund

2022-23 MID-YEAR BUDGET REVIEW REPORT
- 4 -

EXECUTIVE SUMMARY (Continued)

Proposed Budget Amendments – 4 Budget Amendments are proposed for $141,714 The FY 2022-23 Mid-Year Budget Review includes four (4) items as proposed budget amendments totaling $141,714.

The proposed budget amendments are included in the fund balance analyses where appropriate:

Revenues and Expenditures through December 31, 2022 for the City’s main funds are summarized as follows:

General Other
FY
2022-23 Mid-Year Budget Requests Fund Funds Totals

1. Justice Assistance Grant (JAG) 2017/Homeland Security $ 18,603 $ 7,969 26,572$ Grant (HSG)

2. Contract Inspection Services 50,000 0 50,000

3. Bridge Rail Repair-Caliente Road 0 45, 142 45,142

4. C.O. 7901 Cataba Road Basin 0 20, 000 20,000 Total Mid-Year Amendment Requests $ 68,603 $ 73,111 141,714$ General Fund Revised Budget December
% of Revised
Received
Amended
Budget December
%
Expended
City Council 798,121$ 400,193$ 50%
City Manager 3,906,794 2,062,252 53%
Management Services 6,554,383 3,637,232 55% Economic Development 371,111 206,697 56% D.S.-Community Development 2,237,565 1,145,551 51% D.S.-Code Compliance 4,777,822 2,127,008 45% D.S.-Public Works (G.F.) 2,326,856 1,058,154 45% Police 20,613,786 10,121,860 49%
Total General Fund 44,845,907$ 14,232,195$ 32% 41,586,438$ 20,758,947$ 50% Community Development Block Grant 1,582,620 80,274 5% 5,005,770 44,393 1% Hesperia Housing Authority 551,416 420,397 76% 72,586 35,920 49% D.S.-Public Works 67,086 21,179 32% 3,996,331 1,623,750 41% Streets CIP Funds 49,006,698 9,501,695 19% 47,573,744 6,728,379 14% Other City Related Funds 3,109,355 699,488 22% 2,585,012 1,804,277 70% D.S.-Water Operating and Capital 28,848,988 16,042,241 56% 25,701,021 8,069,366 31% D.S.-Sewer Operating and Capital 6,151,444 3,415,642 56% 9,913,241 2,634,787 27% Fire District 45,036 44,376 -1% 1,130,815 1,093,205 97% Sub -Total 134,208,550$ 44,457,487$ 33% 137,564,958$ 42,793,024$ 31% American Rescue Plan Act Grant 11,932,891 11,895,236 100% 0 0 n/a Total 146,141,441$ 56,352,723$ 39% 137,564,958$ 42,793,024$ 31% 2022-23 Revenue 2022-23 Expenditures

2022-23 MID-YEAR BUDGET REVIEW REPORT
- 5 -

STATUS OF CITY GENERAL FUND 2022-23 BUDGET, BUDGET AMENDMENTS, AND RESERVES

2022-23 2022-23
Budget Revised Do llars Percent

RESOURCES
General Fund Operating Revenue 44,295,907$ 4 4,845,907$ 550,000$ 1% Transfers In

1. Fund 255 - AB 3229 COPS Grant 200,000 2 00,000 Total Transfers In 200,000 2 00,000
Budgeted Reserves

1. Budgeted Reserves 0$ 0$

2. First Quarter Approved Budget Amendment Reserves 0 5 0,000

3. Mid-Year Budget Amendment Reserves 0 0 Total Budgeted Reserves 0$ 5 0,000$
Total General Fund Resources 44,495,907$ 4 5,095,907$ 600,000$ 1%

EXPENDITURES
Total General Fund Operating Expenses 41,748,438$ 4 1,736,438$ Transfers Out

1. Fund 210 - HFPD CalPERS 1,130,815 1 ,130,815 1,442,075 1, 442,075
Total Transfers Out 2,572,890 2 ,572,890
First Quarter Budget Amendments - Approved 0 5 0,000 Total General Fund Expenditures & Transfers Out 44,321,328$ 4 4,359,328$ 38,000$ 0% Mid-Year Budget Amendment Requested

1. Justice Assistance Grant (JAG) 2017 0$ 1 8,603$

2. Contract Inspection Services 0 5 0,000 Total Mid-Year Budget Amendments - Requested 0 6 8,603 Total Expenditures and Amendments 44,321,328$ 4 4,427,931$ 106,603$ 0% DIFFERENCE TOTAL RESOURCES/TOTAL EXPENDITURES 174,579$ 6 67,976$ 493,397$ 283% Fund Balance
July 1 Beginning Balance 22,105,355$ 2 9,446,557$
Total Budgeted Reserves 0 (50 ,000) Difference Total Resources/Total Expenditures 174,579 6 67,976 Estimated June 30 Ending Fund Balance 22,279,934$ 3 0,064,533$ Months of Cash to Pay Expenditures and Transfers Out
Beginning Cash July 01, 14,287,923$ 1 6,940,718$
Estimated Resources Less Budgeted Reserves 44,495,907 4 5,045,907 Estimated Expenditures (44,321,328) ( 44,427,931)
14,462,502$ 17, 558,694$
Months of Cash to Pay Expenditures and Transfers Out 3.9 4.7 Estimated Cash Reserves Percentage 33% 40%
Estimated Ending Cash June 30,
Change

2. Fund 402 - 2012 Water Rights Acquisition Debt Service

2022-23 MID-YEAR BUDGET REVIEW REPORT
- 6 -

STATUS OF WATER DISTRICT 2022-23 BUDGET, BUDGET AMENDMENTS, AND RESERVES

2022-23 2022-23
Resources Budget Re vised Dollars Percent
Revenue
Water Operating and Capital 28,411,024$ 2 8,471,024$ Sewer Operating and Capital 6,099,444 6 ,151,444 Reclaimed Water Operations 377,964 3 77,964
Total Revenue 34,888,432 3 5,000,432 112,000 0% Budgeted Reserves 3,815,097 3 ,815,097
Total Water District Resources 38,703,529$ 3 8,815,529$ 112,000$ 0% Expenditures by Program
Water Operating and Capital and Transfer Out 25,445,365$ 2 5,445,365$ 0$ 0% Sewer Operating and Capital 9,913,241 9 ,913,241 Reclaimed Water Operations 255,656 2 55,656
Total Water District Expenditures & Transfers Out 35,614,262$ 3 5,614,262$ 0$ 0% Establishment of Reserve Balances
Permanent Water Rights $ 1,146,888 1, 146,888$
Total Reserve Balances 1,146,888 1, 146,888
Total Water Expenditures & Reserve Balance Funding $ 36,761,150 $ 36,761,150 Difference Total Resources/Total Expenditures 1,942,379$ 2 ,054,379$ July 1 Beginning Balance 109,340,730$ 1 11,118,741$
Budgeted Reserves (3,815,097) ( 3,815,097)
Difference Resources/Expenditures 1,942,379 2 ,054,379 Reserve Balances 1,146,888 1 ,146,888
Estimated June 30 Ending Fund Balance 108,614,900$ 1 10,504,911$ Months of Cash to Pay Expenditures
Beginning Cash July 01, 23,309,829$ 2 5,805,201$
Estimated Resources Less Budgeted Reserves 34,888,432 3 5,000,432 Estimated Expenditures (35,614,262) ( 35,614,262)
22,583,999$ 25, 191,371$
Months of Cash to Pay Expenditures and Transfers Out 7.6 8.5 Total Estimated Cash Reserves Percentage 63% 71%
Estimated Ending Cash June 30,
Change

2022-23 MID-YEAR BUDGET REVIEW REPORT
- 7 -

STATUS OF STREETS MAINTENANCE FUND 2022-23 BUDGET, FUND BALANCE, AND RESERVES

2022-23 2022-23
RESOURCES Budget Revi sed Dollars Percent
Street Maintenance Operating Revenue 1,944$ 67, 086$ 65,142$ 3351% Transfers In
Fund 100 - General Fund 0$ 0$
Fund 204 - Measure I - Renewal 1,750,000 1,750, 000
Fund 205 - Gas Tax Fund 1,400,000 1,400, 000
Fund 206 - Gas Tax Swap 595,794 595, 794
Total Transfers In 3,745,794 3,745, 794
Total Revenues 3,747,738 3,812, 880
Budgeted Reserves

1. Budgeted Reserves 229,898$ 229, 898$

2. First Quarter Budget Amendment Reserves 0 18,695

3. Mid-Year Amendment Reserves 0 0
Total Budgeted Reserves 229,898$ 248, 593$
Total Street Maintenance Resources 3,977,636$ 4,061, 473 $ EXPENDITURES 3,977,636$ 3,977, 636 $ 0$ 0% First Quarter Budget Amendments - Approved 0$ 18, 695$ Mid-Year Budget Amendments - Requested

1. Bridge Rail Repair-Caliente Road 0$ 45, 142$ Total Mid-Year Budget Amendments - Requested 0 45, 142 Total Expenditures and Amendments 3,977,636$ 4,041, 473 $ 63,837$ 2% DIFFERENCE RESOURCES/EXPENDITURES 0$ 20, 000$ 20,000$ n/a Fund Balance
July 1 Beginning Balance 289,130$ 454, 211$
Total Budgeted Reserves (229,898) (248, 593)
Difference Resources/Expenditures 0 20, 000 Estimated June 30 Ending Balance 59,232$ 225, 618$ Change

2022-23 MID-YEAR BUDGET REVIEW REPORT
- 8 -

FISCAL YEAR 2022-23 DECEMBER 31, 2022 YEAR-TO-DATE REVENUE REVIEW

Overall – Through December 2022, total revenue is $56.4 million, or 39% percent of the total budgeted revenue of $144.0 million. It should be noted that changes in the local, state, and national econo mic environments can impact these revenue sources and trends; however, in this section, discussions will pertain to the revenue activity through the 2nd quarter of FY 2022-23.

As of December 31, 2022, the General Fund received revenues of $14.2 million , which is 32% of the annual budget.

This is typical as several major revenues such as Vehicle License Fees and Franchise Fees are primarily received in the second half of the Fiscal Year. However, development related revenue collections are currently performing above original budget estimates due to the timing of payments of fees for Industrial-related development.

Revenue from Street Related Funds is at $9.5 million, or 20% of the $48.4 million originally budgeted, which is expected since the majority o f the budgeted revenue is attributed to Street related CIP projects which are reimbursed as construction of the projects progresses. Development Impact Fees for streets and storm drains is another aspect of this revenue group. Several of these revenue sources have exceeded their original budget due to the timing in the progression of large projects occurring within the City.

As a whole, Water District revenue is performing as anticipated through December 2022 with 56% of budgeted revenue received to date.

The following pages will detail the current revenue collections for each fund.

December Change From
2022-23 2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
General Fund 44,295,907$ 14,232,195$ 32% 44,845,907$ 550,000$ Community Development Block Grant 1,528,620 80,274 5% 1,582,620 54,000 Hesperia Housing Authority 121,416 420,397 346% 551,416 430,000 Street Related Funds 48,422,742 9,522,874 20% 49,073,784 651,042 Other City Related Funds 3,020,391 743,864 25% 3,154,391 134,000 Water Operating 26,330,124 14,940,135 57% 26,342,124 12,000 Water Capital 2,075,000 868,245 42% 2,075,000 0 Water Reserves 5,900 52,395 888% 53,900 48,000 Reclaimed Water 377,964 181,466 48% 377,964 0 Total Water Operating & Capital 28,788,988 16,042,241 56% 28,848,988 60,000 Sewer Operating 5,539,344 2,971,329 54% 5,543,344 4,000 Sewer Capital 558,800 435,608 78% 598,800 40,000 Sewer Reserves 1,300 8,705 670% 9,300 8,000 Total Sewer Operating & Capital 6,099,444 3,415,642 56% 6,151,444 52,000 Water District 34,888,432 19,457,883 56% 35,000,432 112,000 Sub-total 132,277,508 44,457,487 34% 134,208,550 1,931,042 American Rescue Plan Grant 11,732,891 11,895,236 101% 11,932,891 200,000 Total All Funds 144,010,399$ 56,352,723$ 39% 146,141,441$ 2,131,042$

MAJOR FUNDS REVENUE SUMMARY

2022-23 MID-YEAR BUDGET REVIEW REPORT
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FISCAL YEAR 2022-23 DECEMBER 31, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)

General Fund Revenue Comments:

General Fund Revenue – Through December 2022, total General Fund revenue of $14,232,195 is 32% of the budgeted estimate. Overall, General Fund revenues are performing as anticipated. Several large revenue sources such as Sales Tax, Vehicle License Fees and Franchise Fees are expected to increase later in the fiscal year due to the timing in the receipt of the revenue.

Sales and Use Tax – Through December 2022, the City received $4.7 million which is $0.2 million or 5% more than the December 2021 YTD revenue of $4.5 million. This increase can be largely attributed to increased fuel prices compared to the prior fiscal year. Due to timing in the receipt of revenue, the State has remitted tax payments through October 2022. Tax payments received from this revenue source are trending as expected but will continue to be monitored.

Vehicle License Fee (VLF) – This revenue is based on the City’s assessed valuation of the properties within the City.

As the assessed valuation changes from the prior year, this revenue changes by the same percentage. There is no revenue reported through December 2022, as the first installment of the VLF of $5.6 million, or 53% of the budget, was received in January 2023. The second installment expected to be received in May 2023.

Franchise Fees – Franchise fees fo r Cable TV, Advance Disposal, Southwest Gas, Southern California Edison, and Water through December 2022 YTD total $771,654, which is $25,895 or a 3% increase over December 2021 $745,759 YTD. As mentioned, the majority of franchise fees are received in the second half of the fiscal year.

Transient Occupancy Tax (TOT) – Through December 2022, YTD revenue is $748,175, which is $42,977 more than the December 2021 YTD of $705,198. TOT tax es received through December have been collected at 50% of the budgeted amount and are currently anticipated to meet the originally budgeted estimate of $1.5 million by the fiscal year- end.

December Change From
2022-23
2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
Sales and Use Tax 13,900,000$ 4,761,472$ 34% 13,900,000$ 0$ Vehicle License Fee (VLF) 10,463,724 0 0% 10,463,724 0 Franchise Fees 4,090,296 771,654 19% 4,090,296 0 Sub-Total Top Three Revenues 28,454,020 5,533,126 19% 28,454,020 0 General & Administrative Recovery 3,085,930 1,542,965 50% 3,085,930 0 Transient Occupancy Tax 1,500,000 748,175 50% 1,500,000 0 Property Transfer Tax 400,000 135,560 34% 400,000 0 Secured Property Tax 1,033,459 544,268 53% 1,033,459 0 Business License 783,600 426,624 54% 783,600 0 Commercial Cannabis Tax 481,000 195,994 41% 481,000 0 Community Facilities District 2005-1 324,734 180,564 56% 324,734 0 Leased Water Rights 2,063,685 0 0% 2,063,685 0 Development Related Revenues
Planning 358,773 369,248 103% 508,773 150,000 Building & Safety 2,352,208 1,681,650 71% 2,352,208 0 Engineering 667,700 679,707 102% 1,067,700 400,000 Sub-Total Development Related Revenues 3,378,681 2,730,605 81% 3,928,681 550,000 Sub-Total Top 12 Revenue Sources 41,505,109 12,037,881 29% 42,055,109 550,000 All Other General Fund Revenues 2,790,798 2,194,314 79% 2,790,798 0 Total General Fund Revenues 44,295,907$ 14,232,195$ 32% 44,845,907$ 550,000$

GENERAL FUND REVENUES

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FISCAL YEAR 2022-23 DECEMBER 31, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)

General Fund Revenue Comments (Continued):

Property Transfer Tax – This re venue is based on the change in property valuation upon change of owne rship of property within the City . T he December 2022 YTD total of $135,560, represents a decrease of $103,288 from the December 2021 YTD of $ 238,848. This 43% decrease is due to receiving four receipts compared to the five receipts received through December 2021 YTD. When comparing the first four installments through December 2022 to the four received through December 2021, the FY 2022 -23 is $50,850 or 27% less, representing a slowdown in the housing market due to increased mortgage interest rates.

Secured Property Tax – Through December 2022 , YTD revenue is $544,268, which is $26,715 more than the December 2021 YTD $517,553. This revenue is on track through December 2022 with 53% of budgeted amount received.

Business License – Entities transacting business within the City must obtain and maintain a valid business license.

YTD December 2022 collections of $426,624 is $101,783, or 31%, more than the December 2021 YTD of $324,841.

The increase is primarily due to the implementation of the self -certification component of the existing Rental Housing Business License and Inspection Program approved by City Council at the June 7, 2022 Council meeting. Additionall y, the total number of business license collections have increased, as 3,267 business licenses were paid during the first six months of FY 2022-23 compared to the 3,050 paid December 2021 YTD.

Commercial Cannabis Tax – All commercial cannabis businesses o perating within the City pay a 4% tax, on gross receipts from business operations. The December 2022 YTD receipts of $195,994 is 33% less than the December 2021 YTD of $294,382. The decrease in revenue is due to fewer cannabis businesses operating within the City. There are currently eleven (11) active businesses compared to the twenty-one (21) businesses as of December 2021.

Community Facilities District 2005-1 – This special assessment district, (generally west of Maple Avenue and south of Main Street), was formed to refinance the bonds of CFD 91 -3, and assesses the properties within the district to repay the bonds. Part of the annual assessment includes a public safety portion to offset some of the costs that residential development places on the City’s public safety providers. The December 2022 YTD of $180,564, which is 15 % more than December 2021 YTD of $157,592, is trending as expected.

Leased Water Rights – The permanent water rights owned by the General Fund can be leased annually and the lease revenue is used to pay for the 2012 Bonds, which financed the purchase of the water rights. The leasing of water rights revenue is collected at the end of the year and will be recorded in June 2023.

Development Related Revenue – This revenue category accounts primarily for development related fees from Planning, Building and Safety , and Engineering. As of December 31 , 2022, YTD actual receipts of $2.7 million represents a 22% or $0.5 million increase from the prior year receipts of $2.2 million. This increase is mainly due to the Building and Safety permit Fees and Engineering Inspection Fees collected for Hesperia Commerce Center 1 -Buildings 2 & 3, as well as fees collected for Pacific Communities tract homes and Sunset View Apartments. As a result, the Planning revenue estimates have increased by $150,000 and Engineering revenue estimates have increased by $400,000 to reflect the higher than anticipated collections.

2022-23 2022-23
Division Budget Revised Amount Percentage
Planning 358,773$ 508,773$ 150,000$ 42% Building & Safety 2,352,208 2,352,208 0 0% Engineering 667,700 1,067,700 400,000 60% Total 3,378,681$ 3,928,681$ 550,000$ 16% Change

2022-23 MID-YEAR BUDGET REVIEW REPORT
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FISCAL YEAR 2022-23 DECEMBER 31, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)

General Fund Revenue Comments (Continued):

All Other General Fund Revenue – The numerous all other general fund revenue accounts are $2.2 million or 79% collected through December 2022. Compared to the December 2021 YTD of $1.6 million collected, this revenue reflects a $ 0.6 million or 39% increase, which includes various revenues such as Animal Control and Code Enforcement Administrative Fines, Vehicle Code Fines, and Police Service Fees.

Community Development Block Grant Revenue Comments:

These revenues are grant reimbursements that promote economic and housing development and rehabilitation projects, with an emphasis on activities that create jobs, build or enhance infrastructure, and provide affordable housing to Hesperia residents. This grant must be spent prior to submitting for reimbursements. The FY 202 2-23 Budget revenue estimates represent anticipated reimbursements that are primarily expected to be received during the third and fourth quarters of the fiscal year.

CDBG Neighborhood Stabilization Program (NSP) – The CDBG NSP program is no longer active and is in the process of being finalized during FY 2022-23.

All Other CDBG Revenues – This revenue includes CDBG program income and interest revenue for the HOME Grant fund and the CDBG Revolving Loan fund. These revenues are more one -time in nature and are not received on a time schedule as other revenue. December 2022 YTD revenue of $65,462 has been received, which consists of loan repayments related to the Housing Rehabilitation Loan Program , the 1999 HOME repayment program, and interest related income. The FY 2022-23 Revised has been increased to reflect the revenue received through December 2022.

Hesperia Housing Authority (HHA) Revenue Comments:

This program was developed to promote projects that improve the City’s housing stock and provide affordable housing opportunities. The budgeted revenues primarily consist of loan repayments and interest income. As of December 31, 2022, revenue exceeded the budget primarily due to two (2) loan interest payments totaling $322,122 from Eagle Hesperia 55 LP. The FY 2022 -23 Revised reflects the receipt of the loan repayments and investment income.

December Change From
2022-23
2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
CDBG Administration Reimbursement 1,509,086$ 14,812$ 1% 1,509,086$ 0$ CDBG Neighborhood Stabilization Prog. (NSP) 7,632 0 0% 7,632 0 Sub-Total 1,516,718 14,812 1% 1,516,718 0$ All Other CDBG Revenues 11,902 65,462 550% 65,902 54,000 Total CDBG Revenues 1,528,620$ 80,274$ 5% 1,582,620$ 54,000$

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) REVENUE
December Change From
2022-23 2022-23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
Interest Income 23,832$ 342,080$ 1435% 373,832$ 350,000$ Loan Repayments 91,084 0 0% 91,084 0 Mi
scellaneous Income 3,000 49,279 1643% 53,000 50,000 Sub-Total HHA Revenue 117,916 391,359 332% 517,916 400,000 VVEDA Housing Authority Revenue 3,500 29,038 830% 33,500 30,000 Total HHA Revenues 121,416$ 420,397$ 346% 551,416$ 430,000$

HESPERIA HOUSING AUTHORITY (HHA) REVENUE

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FISCAL YEAR 2022-23 DECEMBER 31, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)

Street Related Funds Revenue Comments:

Measure I - Renewal – This fund is used to account for the renewed Measure I sales tax based on revenue generated from the ½ cent added tax on sales tax. Measure I Renewal is received from San Bernardino County Transportation Authority (SBCTA). Through December 2022, a total of $1.2 million from three (3) monthly payments has been collected, which is $0.2 million or 20% higher than the December 2021 total of $1.0 million. At this time, there are no revisions to this revenue source.

Gas Tax – Monthly apportionments are received throughout the fiscal year and can vary from year-to-year due to timing differences of the State’s schedule of monthly apportionments. The City’s apportionments through December 2022 total $607,579 from four (4) monthly apportionments , which is 1% less than the December 2021 total of $613,880 from five (5) month apportionments. When comparing the four (4) remittances in FY 2022-23 to the first four (4) remittances in the prior year of $491,713, the FY 2022- 23 remittances are $115,866 or 23% higher, which reflects increased fuel prices. FY 2022-23 Gas Tax revenue is at 33% received with remittances trending as originally budgeted.

Gas Tax S wap – Through December 2022, combined apportionments of $321,203 from four (4) apportionments is $29,749 or 8% less than the December 2021 YTD of $350,952 from five (5) apportionments. When comparing the first four (4) distribution through December 2022 to the four (4) received through December 2021, YTD FY 2022- 23 is $10,549 or 4 % more, representing an increase in fuel prices. This revenue source is at 34% of the budget, with apportionments being received as expected.

Local Transportation – The December 2022 YTD of $908,027 includes an apportionment from SBCTA and a portion of interest income received. As reported in the First Quarter Budget Review, the City received its annual apportionment of $872,556 in October 2022. The revised revenue estimate has been increased to reflect current revenue. This revenue source will decrease in future years due to the importance placed and funding reserved for public transportation.

December Change From
2022-23 2022- 23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
204 Measure I - Renewal 3,598,916$ 1,207,518$ 34% 3,598,916$ 0$ 205 Gas Tax Fund 1,854,203 607,579 33% 1,854,203 0 206 Gas Tax Swap Fund 947,632 321,203 34% 947,632 0 207 Local Transportation Fund 877,402 908,027 103% 908,402 31,000 209 Gas Tax - RMRA 2,193,113 775,911 35% 2,193,113 0 254 AQMD Fund 61 370 607% 461 400 263 Public Works Street Maintenance Fund 1,944 21,179 1089% 67,086 65,142 Sub-Total 9,473,271 3,841,787 41% 9,569,813 96,542 DIF Streets & Storm Drain
300 Development Impact Fee-Streets 148,890 163,457 110% 163,890 15,000 301 Development Impact Fee-Storm Drain 27,358 66,362 243% 66,858 39,500 306 Development Impact Fee 2018-Streets 11,055,223 2,247,365 20% 11,055,223 0 307 Development Impact Fee 2018-Drainage Facilities 1,032,902 200,336 19% 1,032,902 0 313 Development Impact Fee-A-04 Drainage 210,780 643,903 305% 710,780 500,000 Sub-Total DIF Streets & Storm Drain 12,475,153 3,321,423 27% 13,029,653 554,500 504 City Streets CIP 26,474,318 2,359,664 9% 26,474,318 0 Total Street Related Funds 48,422,742$ 9,522,874$ 20% 49,073,784$ 651,042$

STREET RELATED FUNDS REVENUE

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FISCAL YEAR 2022-23 DECEMBER 31, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)

Streets Related Funds Revenue Comments (Continued):

Gas Tax RMRA – This source of revenue, which took effect in November 2017 during FY 2017-18, is used to repair and maintain roads, freeways, and bridges. SB 1, the Road Repair and Accountability Act of 2017, increased the gas tax by 12 cents and 20 cents for diesel. The vehicle registration fee also increased depending on the value of the vehicle. As of December 2022, revenue received from the State is $775,911, and is trending as anticipated. When compared to the prior year through the same period, the current fiscal year is 18%, or $119,161 higher.

AQMD (AB2766 Transit) – The revenue in this fund is interest earnings from retained cash.

Public Works -Street Maintenance – The estimated revenues are primarily interest earnings. This fund will occasionally receive miscellaneous reimbursements on an inconsistent basis. The revenue received YTD of $21,179, includes $10,738 proceeds from sale of equipment and rei mbursements for damaged city property and equipment.

Revenue through December 2022 is higher than projected, and as a result, the revised estimates have been increased by $65,142 to reflect the unanticipated revenue.

Development Impact Fees for Streets and Storm Drain – Through December 2022 YTD, the combined revenue received of $3.3 million is 27% of the annual budget of $12.5 million. The collections on this revenue source can vary depending on the timing of the completion of projects. The FY 2022 -23 Budget of $12.5 million primarily consist of $4.8 million for Hesperia Commerce Center 1 -Bld 2 and a $6.0 million dollar payment related to Silverwood Tapestry that have not been received yet but are expected to be received later in the fiscal year. Revenue estimates have been provided for several Development Impact Fee funds to reflect current collections through December 2022 for completed projects subject to those specific fees.

City Streets CIP – This fund tracks grant and developer funded projects such as the Ranchero Road Improvements (7 th
Avenue to Mariposa Road), the Traffic Signal at Main Street and Sultana Street/Timberlane Avenue, Ranchero Aqueduct crossing, and Walnut St H -01 Retention Basin . Through December 2022, a total of $2.4 million has been received from the California Department of Transportation (Caltrans), San Bernardino County Transportation Authority (SBCTA), and grant reimbursements for the Ranchero Road Improvements, the Ranchero Road Aqueduct project, and the Retention Basin project. The bulk of the budgeted revenue is for reimbursement for the Ranchero Road improvements and the Ranchero Road Aqueduct crossing projects. With these projects experiencing construction delays, staff anticipates the need to carryover in the FY 2023 -24 Budget. This carryover will be analyzed and included in the CIP budget presentation during June 2023.

2022-23 MID-YEAR BUDGET REVIEW REPORT
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FISCAL YEAR 2022-23 DECEMBER 31, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)

Other City Funds Revenue Comments: Many of these funds only receive interest income during the fiscal year.

Pension Obligation Trust – This fund was established to manage and mitigate the unfunded pension liability and other post-employment benefits liabilities through a Section 115 Trust.

HFPD (PERS) Interest Income – This revenue is the interest income related to funds the held for the CalPERS obligations of the former Hesperia Fire Protection District.

AB3229 Supplemental Law Fund – The passage of Senate Bill (SB) 89 allowed for the continued funding of the Supplemental Law Enforcement Funding (SLE SF). Through December 2022, $160,891 or 68% of the budgeted revenue has been received as expected.

Environmental Programs Grant – This fund tracks grant reimbursements for various environmental events. Throug h December 2022, $9,327 or 15% has been received. Reimbursements are largely received later in the Fiscal Year.

Disaster Preparedness Grant – The revenue in this fund is interest earnings from retained cash.

Development Impact Fees -Fire, Police, Public Services, City Hall, Animal Control, and Records Storage – Halfway through the fiscal year, a total of $419,671, or 16% of the budgeted revenue, has been received for this revenue group. The combined $2.7 million revenue budgeted for this category includ es combined DIF fees of $2.2 million from the completion of Hesperia Commerce Center 1- Bldg 2, which is expected to be received before the end of the Fiscal Year.

2012 Water Rights and 2013 Refunding Debt Service – The revenue in these funds is interest earnings from cash held with the fiscal agent. The revised budget has been increased to reflect current revenue amounts.

December Change From
2022-23 2022- 23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
105 Pension Obligation Trust 0$ 28,859$ n/a 0$ 0$ 210 HFPD (PERS) Interest Income 8,036 44,376 552% 45,036 37,000 255 AB3229 Supplemental Law Fund 237,584 160,891 68% 237,584 0 256 Environmental Programs Grant 63,525 9,327 15% 63,525 0 260 Disaster Preparedness Grant 117 684 585% 717 600 262 SB 1383 Local Assistance Grant 0 979 n/a 0 0 DIFs 302-304, 308-312
302 Development Impact Fee-Fire 25,181 43,839 174% 45,181 20,000 303 Development Impact Fee-Police 6,205 6,244 101% 6,405 200 304 Development Impact Fee-Public Services 16,537 16,650 101% 16,737 200 308 Development Impact Fee 2018-Fire Suppression 1,315,090 162,402 12% 1,315,090 0 309 Development Impact Fee 2018-City Hall Facilities 1,196,058 130,197 11% 1,196,058 0 310 Development Impact Fee 2018-Animal Control 65,455 51,229 78% 65,455 0 311 Development Impact Fee 2018-Records Storage 58,510 6,629 11% 58,510 0 312 Development Impact Fee 2018-Police Facilities 22,573 2,481 11% 22,573 0 Sub-Total DIFs 302-304, 308-312 2,705,609 419,671 16% 2,726,009 20,400 402 2012 Water Rights Debt Service 1,454 39,708 2731% 41,454 40,000 403 2013 Refunding Debt Service 4,066 39,369 968% 40,066 36,000 261 American Rescue Plan Act Grant 11,732,891 11,895,236 101% 11,932,891 200,000 Total Other City Funds 14,753,282$ 12,639,100$ 86% 15,087,282$ 334,000$

OTHER CITY FUNDS REVENUE

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F
ISCAL YEAR 2022-23 DECEMBER 31, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued) O
ther City Funds Revenue Comments (Continued):

American Rescue Plan Act (ARPA) Grant – Coronavirus State and Local Fiscal Recovery Funds – This revenue is the Coronavirus State and Local Fiscal Recovery Funds in which the City received a total amount of $23.4 million in two installments of $11.7 million. The first allocation was received in September 2021, and the second allocation was received in September 2022. This ARPA funding must be spent on eligible costs incurred d uring the period that began on March 3, 2021, and ending on December 31, 2024 . Eligible costs include expenditures for necessary improvements to water infrastructure to improve access to clean drinking water, wastewater treatment infrastructure, projects that address the impacts of climate change, projects for managing and treating storm water or subsurface drainage water, facilitating water reuse, and securing publicly owned treatment works. The FY 2022 -23 Revised has been increased to reflect revenue as of December 2022, which includes interest income.

Water District Revenue Comments:

Effective August 1, 2022, the Hesperia Water District began applying liens to properties with outstanding water bills.

Failure to pay within 60 days from the original bill due date, results in the Water District mailing the tenant and property owner a notice of lien. If the bill remains outstanding after an additional 10 days, the Water District will apply a lien on the property. During May of each year, all outstanding property liens will be converted to property tax liens. By doing so, the County will collect outstanding balances as part of property tax collections during the following year. As of December 31, 2022, the Water District has collected $70,396 from $164,955 placed on the tax roll. The Water District is utilizing such liens in lieu of water disconnections and traditional collection services as the primary mechanism for collections.

December Change From
2022-23 2022-
23 Percent 2022-23 Budget To
Budget Actual Received Revised Revised
Water Operating Revenue
Water Sales 24,864,250$ 13,757,864$ 55% 24,864,250$ 0$

Interest Income 19,420 30,937 159% 31,420 12,000 Property Taxes 538,254 331,548 62% 538,254 0 Sub-Total 25,421,924 14,120,349 56% 25,433,924 12,000 All Other Water Operating Revenues 908,200 819,786 90% 908,200 0 Water Arrearages Grant 0 0 n/a 0 0
Total Water Operating Revenues 26,330,124$ 14,940,135$ 57% 26,342,124$ 12,000$ Capital Facilities Charges 2,000,000 868,245 43% 2,000,000 0 Grant Reimbursement 75,000 0 0% 75,000 0 Total Water Capital Revenues 2,075,000 868,245 42% 2,075,000 0 Reclaimed Water 377,964 181,466 48% 377,964 0 All Other Water Reserves Revenues 5,900 52,395 888% 53,900 48,000 Total Water Operating & Capital Revenues 28,788,988$ 16,042,241$ 56% 28,848,988$ 60,000$ Sewer Operating Revenue
Sewer Billing 5,301,042$ 2,729,758$ 51% 5,301,042$ 0$

All Other Sewer Operating Revenues 238,302 241,571 101% 242,302 4,000 Total Sewer Operating Revenue 5,539,344 2,971,329 54% 5,543,344 4,000 Sewer Connections 550,000 387,264 70% 550,000 0 All Other Sewer Capital Revenues 8,800 48,344 549% 48,800 40,000 Total Sewer Capital Revenue 558,800 435,608 78% 598,800 40,000 All Other Sewer Reserves Revenues 1,300 8,705 670% 9,300 8,000 Total Sewer Operating & Capital Revenues 6,099,444$ 3,415,642$ 56% 6,151,444$ 52,000$ Total Hesperia Water District Revenue 34,888,432$ 19,457,883$ 56% 35,000,432$ 112,000$

WATER DISTRICT REVENUE

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FISCAL YEAR 2022-23 DECEMBER 31, 2022 YEAR-TO-DATE REVENUE REVIEW (Continued)

Water District Revenue Comments (Continued):

Overall Water District Revenue – Revenue through December 2022, is $19.5 million, which is $1.7 million, or 10% more than December 2021 YTD of $17.7 million. The increase can be attributed to a combination of overall Water Sales, tax lien collections, Reclaimed Water Sales, and Sewer Billing. Overall Water District revenue is progressing as anticipated with 56% of the budgeted amount received.

Water Sales – Water sales t hrough the second quarter of FY 2022 -23 were $13.8 million, which is $674,182, or 5%, higher than the December 2021 YTD of $13.1 million. The increase over the prior year is partially due to the implementation of the final annual water rate change in December 2021 from the approved water rate study. Another factor for the increase is the implementation of the Water District lien process and the Low Income Household Water Assistance Program (LIHWAP). On December 2020, Congress funded a program to help low -income households pay down their outstanding residential water or wastewater bills. This new federal program provides financial assistance to low income Californians to help manage their residential water and wastewater utility costs to up to $2,000 per qualifying low-income household. The City started collecting these payments at the beginning of Fiscal Year 2022 -23 and as of December 31, 2022, has collected $61,902. As part of the Water District lien process, property owners who receive the notice of lien are submitting payments on behalf of tenants in order to avoid a property lien and subsequently having the balance applied to the tax roll. Overall, Water sales have been collected at 55% of projection and are proceeding as anticipated.

Property Taxes – Property tax revenue is normally received from November through July each year . Through December 2022, the YTD of $331,548 is $29,411 or 10% more than the December 2021 YTD of $302,137. Property tax revenue is on track at Mid-Year with 62% of the budgeted amount received.

All Other Water Operating Reven ue – Through December 2022, total revenue collected is $ 819,786, which is 47% more than December 20 21 YTD of $ 557,314. This increase includes County Property Tax collections of delinquent water bills, along with service fees and charges. Revenue through December 2022 is 90% of the original budget and will be monitored moving forward as additional County payments are received.

Capital Facilities Surcharge – Revenue through December 2022 YTD is $ 868,245, which is 43% of the budgeted amount. The revenue received through the second quarter of FY 2022-23 primarily consists of payments related to the Eagle Hesperia 55 LP Affordable Housing expansion, fire service meters for Hesperia Commerce Center 1, and payments for single family residential water meters.

Reclaimed Water – In FY 2022-23, the District began budgeting for the use of reclaimed (recycled) water to be used at the Hesperia Golf Course and the Township area. As of December 31, 2022, the Water District has collected $181,466, which is 48% of the budgeted amount. Current Reclaimed Water customers are the Golf Course, Hesperia Township (NW corner of 5
th & Smoke Tree) , and Hesperia Recreation and Parks District (HRPD). In the future, t he District anticipates that additional customers, such as Hesperia City Hall, Hesperia Civic Park, Hesperia Police Station, The High Desert Government Center, and 8
th Avenue Paseo will begin utilizing the reclaimed water system.

Sewer Billing – Revenue through December 2022 is $2.7 million, which is $ 0.2 million, or 9% more than the revenue received through the Second Quarter of FY 2021-22. This increase is associated with the final 6% sewer rate increase, which took effect in December 20 21, along with the addition of new sewer residential and commercial customers over the past yea r. Revenue received through December 2022 is at 51% of the budgeted amount and is trending as expected.

Sewer Connections – Revenue through the second quarter of FY 2022- 23 is $387,264, or 70% of the budget. This revenue is driven by the completion of development projects in areas served by Sewer. This revenue will continue to be monitored in the second half of the fiscal year, as ongoing development projects progress.

2022-23 MID-YEAR BUDGET REVIEW REPORT
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DEPARTMENT FY 2022-23 BUDGET EXPENDITURE STATUS SUMMARY

Total City Expenditures – With the exception of the four (4) mid-year budget amendments totaling $141,714 , the overall assessment of the City’s expenditures through mid-year of the fiscal year is that expenditures are exp ected to stay within the FY 2022-23 Amended Budget.

TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS

The City Council Department is 50% expended through December 2022. The City Council Division has expended 40%, which is due to budgeted items that are typically expended later du ring the fiscal year, such as annual memberships, conferences, seminars, community outreach programs, and events. The City Attorney Division is 58% expensed at the end of December 20 22, which is slightly above projections for the first half of the fiscal year. Staff will continue to monitor the program through the remainder of the fiscal year for any needed adjustments.

The City Manager Department expenditures are on track staying within the 2022- 23 Budget at 53% expended. At the July 19, 2022 City Council Meeting, an amendment was approved to transfer $12,000 in dedicated funds for food recovery services related to SB 1383 Local Assistance Grant Program from Fund 100 to Fund 262. Overall, both the City Manager and the Information Technology Divisions are proceeding as expected.

December Amended
2022-23 2022-23 2022 YTD Percent
Expenditure Summary Budget Amended Expenditures Expended City Council 798,121$ 798,121$ 400,193$ 50% City Manager 3,918,794 3,906,794 2,062,252 53% Management Services 6,554,383 6,554,383 3,637,232 55% Development Services - Community Development 2,182,132 2,237,565 1,145,551 51% Development Services - Code Compliance 4,783,822 4,777,822 2,127,008 45% Development Services - Public Works 6,303,925 6,323,187 2,681,904 42% Development Services - Water 21,876,021 21,876,021 8,060,335 37% Development Services - Sewer 6,068,241 6,068,241 2,566,114 42% Economic Development 527,784 527,784 276,182 52% Police 20,613,786 20,613,786 10,121,860 49% Sub-Total Operating 73,627,009 73,683,704 33,078,630 45% Economic Development 1,354,600 4,921,683 10,828 0% Streets Capital Improvement Project (CIP) Funds 47,348,744 47,573,744 6,728,379 14% Water Capital 3,825,000 3,825,000 9,031 0% Sewer Capital 3,845,000 3,845,000 68,673 2% Other City Related Funds 2,474,381 2,585,012 1,804,277 70% Fire District 1,130,815 1,130,815 1,093,205 97% Sub-Total Others 59,978,540 63,881,254 9,714,393 15% TOTAL CITY EXPENDITURES 133,605,549$ 137,564,958$ 42,793,024$ 31% December Amended
2022-23 2022-23 2022 YTD Percent
City Council Budget Amended Expenditures Expended
100 100 City Council 348,121$ 348,121$ 139,947$ 40% 100 102 City Attorney 450,000 450,000 260,246 58% Total City Council 798,121$ 798,121$ 400,193$ 50% December Amended
2022-23 2022-23 2022 YTD Percent
City Manager Budget Amended Expenditures Expended
100 200 City Manager 1,573,041$ 1,522,622$ 740,124$ 49% 100 215 Information Technology 2,345,753 2,384,172 1,322,128 55% Total City Manager 3,918,794$ 3,906,794$ 2,062,252$ 53%

2022-23 MID-YEAR BUDGET REVIEW REPORT
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TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

The Management Services Department is currently at 55% expended. The Finance Division is 5 6% expended and proceeding as planned. Th e Human Resources Division is 7 3% expensed due to the lump sum payment to CalPERS for the unfunded accrued liability and annual insurance premiums that were paid at the beginning of the fiscal year.

Non-Departmental is 29% expended, with the majority of consultant and user fee study expenses occurring later in the fiscal year.

As a whole, the Economic Development Department is 5% expended through the Second Quarter. This department is made up of three (3) Divisions: Economic Development, Community Development Block Grant (CDBG), and Hesperia Housing Authority (HHA) funds.

The Economic Development Division performs the economic development functions for the City. Funded by the General Fund, Economic Development is 56% expended due in lar ge part to the Division’s lump sum portion of the annual unfunded accrued liability assessed by CalPERS.

Community Development Block Grant is 1% expended of the adopted budget. This fund administers the City’s CDBG program and related activities. FY 202 2-23 includes $1,354,600 in budgeted funds for two street improvement projects (C.O. 7158 FY 2019-20 CDBG Street Improvements and C.O. 7166 FY 2021-22 CDBG Street Improvements). Through December 31, 2022, $44,393 has been expended on these Capital Improvement Projects (CIP). During the November 15, 2022 City Council meeting, the FY 2021-22 CDBG Street Improvements project was amended by $3.5 million with the use of repurposing program income from the Neighborhood Stabilization Program (NSP) Fund, bringing the project total to $3.9 million. The majority of CIP expenditures will be expended during the third and fourth quarters.

The Hesperia Housing Authority (HHA) funds oversee the affordable housing within the City. Through the end of December, the HHA funds are proceeding as expected with 49% of the budget expended.

The Community Development Division is 51% expended overall through the Second Quarter. Planning is 46% expended and Building & Safety is 55% expended, both proceeding as expected. During the December 6, 2022 First Quarter Budget Review, the budget was amended by $50,000 for contract inspection services. One budget amendment for $50,000 has been requested for additional contract inspection services.

December Amended
2022-23 2022-23 2022 YTD Percent
Management Services Budget Amended Expenditures Expended 100 220 Finance 2,103,642$ 2,192,572$ 1,231,115$ 56% 100 225 Human Resources/ Risk Mgmt. 2,578,569 2,578,569 1,882,319 73% 100 229 Non-Departmental 1,872,172 1,783,242 523,798 29% Total Management Services 6,554,383$ 6,554,383$ 3,637,232$ 55% December Amended
2022-23 2022-23 2022 YTD Percent
Economic Development Budget Amended Expenditures Expended 100 Economic Development 371,111$ 371,111$ 206,697$ 56% 251 Community Development Block Grant (CDBG) 1,438,687 5,005,770 44,393 1% 370 Hesperia Housing Authority 72,586 72,586 35,920 49% Total Economic Development 1,882,384$ 5,449,467$ 287,010$ 5% December Amended
2022-23 2022-23 2022 YT D Percent
D. S. - Community Development Budget Amended Expenditures Expended 100 3000 Planning 979,314$ 972,262$ 448,728$ 46% 100 3020 Building & Safety 1,202,818 1, 265,303 696,823 55% Total D. S. - Community Development 2,182,132$ 2, 237,565$ 1,145,551$ 51%

2022-23 MID-YEAR BUDGET REVIEW REPORT
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TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

The Code Compliance Division expenditures are trending as expected at 45% through mid -year. As shown by the table above, Code Enforcement is 43% expended, while Animal Control is 46% expended.

As shown by the table above, th e overall Public Works Division is 42% expended through December 2022 and trending as expected . Engineering, Building Maintenance, and Street Maintenance are trending as expected . The Traffic program is 36% expended due in large part to invoices pending for street sweeping and striping services for the end of the calendar year 2022. Also, at the December 6, 2022 Council Meeting, the budget was amended to include $ 18,695 for the purchase and installation of a left turn traffic signal head at the intersection of Mariposa Road and Ranchero Road. One budget amendment request is included to repair the bridge on Caliente Road for $45,142.

Streets Capital Improvement Project (CIP) related expenditures is 1 4% expended through December 2022.

Expenditures will increase a s progress continues on projects such as the FY 202 1-22 Street Improvement Project , Ranchero Road Improvements and Aqueduct Crossing , and other streets related projects. As these projects move forward, the percentage of actual expenses to budget will increase. Please note that at the December 6, 2022 City Council meeting, the budget was amended to appropriate $ 225,000 in Local Transportation Funds to the FY 2019-20 CDBG Street Improvement Project C.O. 7158. A budget amendment to start design for C.O. 7901 Cataba Road Basin is also being requested.

A large portion of this classication is the budgeting of the principal and interest payments for the 2012 Water Rights Acquisition and 2013 Refunding Lease Revenue Bonds. Principal payments occur in October of each fiscal year, explaining the 7 0% expended percentage through December 2022. An amendment for $19,401 was approved at the July 19, 2022 City Council Meeting to allocate funds for the CalRecycle Waste Tire Amnesty Grant Program, which is a reimbursable grant. In June 2022, the City received $136,396 in grant funds to be used for the SB 1383 Local Assistance Grant Program. Due to the timing of the grant award and budget adoption, the total grant award was not included in the budget; therefore staff received approval from the City Council on July 19, 2022 to amend the budget by transferring $15,000 in dedicated funds for education and outreach and food recovery services from Fund 100 and Fund 256 to Fund 262, a newly created fund specifically for the state mandated program and for the appropriation of an additional $79,230 for record keeping and reporting software.

December Amended
2022-23 2022-23 2022 YT D Percent
D. S. - Code Compliance Budget Amended Expenditures Expended 100 3010 Code Enforcement 2,467,764$ 2,469,764$ 1,070,908$ 43% 100 5000 Animal Control 2,316,058 2,308, 058 1,056,100 46% Total D. S. - Code Compliance 4,783,822$ 4, 777,822$ 2,127,008$ 45% December Amended
2022-23 2022-23 2022 YTD Percent
D. S. - Public Works Budget Amended Expenditures Expended 100 3100 Engineering 967,725$ 968,417$ 421,007$ 43% 100 3110 Building Maintenance 1,358,564 1,358,439 637,147 47% 263 3150 Street Maintenance 2,098,161 2,085,161 927,077 44% 263 3170 Traffic 1,879,475 1,911,170 696,673 36% Total D.S. Public Works 6,303,925$ 6,323,187$ 2,681,904$ 42% December Amended
2022-23 2022-23 2022 YT D Percent
Budget Amended Expenditures Expended
Streets Capital Improvement Project (CIP) Funds 47,348,744$ 47,573,744$ 6,728,379$ 14% December Amended
2022-23 2022-23 2022 YT D Percent
Budget Amended Expenditures Expended
Other City Related Funds 2,474,381$ 2,585,012$ 1,804,277$ 70%

2022-23 MID-YEAR BUDGET REVIEW REPORT
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TOTAL EXPENDITURES BY DEPARTMENT AND PROGRAMS (Continued)

Overall, the Water Operating and Capital funds are 28% expended through December 31, 2022. The following narrative details the progression of each program.
• The primary responsibility of Source of Supply is to secure make- up water lease rights to remedy overproduction.

At Mid-Year, Source of Supply is only 5 % expended. Expenditures will increase significantly in the later part of the fiscal year due to the recording of leased water rights to offset the Alto and Centro Subarea replacement obligation. • Production, which is responsible for drawing the groundwater, has expended 43% of the budget by the end of the Second Quarter and is proceeding as expected.
• Distribution has utilized 50% of its allocated budget and is proceeding as planned. • Through December 31, 2022, Pipeline Maintenance has expended 43% of the budget and will increase as material (pipe) is purchased for the pipeline replacement program, as identified in the FY 2022-23 Budget. • Engineering is currently 34% expended, which is primarily due to the timing of invoices. Expenditures are expected to increase in the second part of the fiscal year, as invoices are received for contractual professional engineering services, and annual storm water program expenses.
• Customer Service is 44% expended and proceeding as planned , with the Advanced Metering Infrastructure (AMI) programs progress on schedule (66% of City on AMI).
• Utility Billing is 59 % expended and the increased percentage is due to document recording costs related to the implementation of the property lien process for delinquent accounts. • Administration is 50% expended and proceeding as planned. • Property Managem ent is 42 % e xpended at mid -year and will increase as maintenance projects are completed throughout the fiscal year.
• Reclaimed Water Operations expenditures will increase later in the second half of the fiscal year when Debt Service payment is due.
• Projects in Water and Sewer Capital have $7.7 million allocated in capital funds and are 2 % expended.

Expenditures will increase as projects such as the I -15 Corridor water and sewer, Recoating the exterior of water tank at Plant 23, Plant 5 & 18 Roof Replacement and Repair, FY 2019- 20 Water Service Line Relocation, Maple Avenue sewer line replacement, Township Wastewater Improvements, and Hesperia Wastewater Treatment Plant projects progress.

December Amended
2022-23 2022-23 2022 YT D Percent
D.S. Water Operating & Capital Budget Amended Expenditures Expended 4010 Source of Supply 4,825,015$ 4,825,015$ 244,182$ 5% 4020 Production 4,596,134 4, 524,782 1,965,812 43% 4030 Distribution 1,847,563 1, 922,415 964,303 50% 4035 Pipeline Maintenance 1,000,419 969, 545 413,363 43% 4040 Engineering 1,019,812 1, 020,851 343,473 34% 4050 Customer Service 2,504,758 2, 494,758 1,096,606 44% 4060 Utility Billing 1,302,662 1, 302,662 769,887 59% 4070 Administration 4,064,384 4, 068,114 2,041,667 50% 4080 Property Management 459,618 492, 223 204,367 42% 720 Reclaimed Water Operations 255,656 255, 656 16,675 7% Total Water Operations 21,876,021$ 21, 876,021$ 8,060,335$ 37% 701 Water Capital 3,825,000 3, 825,000 9,031 0% 711 Sewer Capital Projects 3,845,000 3, 845,000 68,673 2% Total D.S. Water Operating & Capital 29,546,021$ 29, 546,021$ 8,138,039$ 28%

2022-23 MID-YEAR BUDGET REVIEW REPORT
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T
OTAL EXPENDITURES BY DEP ARTMENT AND PROGRAMS (Continued) The Sewer Operating Funds overall are 42% expended.
• Sewer Operations expenditures are 42 % expended, which is primarily due to receiving invoices for Victor Valley Wastewater Reclamation Authority (VVWRA) sewer treatment fees through November 2022. • S
ewer Engineering is currently 25 % expended and is expected to increase in the second part of the fiscal year, as invoices are received for contractual professional engineering services, along with feasibility study expenses for the Silverwood Project.
• Sewer Utility Billing is 44% expended, which is expected for the first half of the fiscal year. • Sewer Administration is proceeding as planned with 50% expended and mainly due to the monthly general and administrative re-payment for the annual indirect cost allocation.

The Police Department budget is 4 9% expended, which is expected for the first half of the fiscal year with the Cou nty contract invoices paid through December 2022. In addition, there is a budget amendment included in the Mid -Year totaling $26,572 ( $7,969 for the City’s match contribution for the Homeland Security Grant and $18,603 for the use of the Edward Byrne Justice Assistance Grant JAG 17).

During FY 2018- 19, the City transferred all Hesperia Fire Protection District (Fire District) assets and liabilities to San Bernardino County Fire, with the exception of the former personnel obligations, for which the Fire District will continue to function with dedicated funding. The Fire District is 97 % expended, which is due to paying the annual contractual retirement obligations related to the former Fire District employees at the beginning of the fiscal year. The $37,610 in savings will be used to retain the funds in a trust for the payment of former Fire District personnel obligation.

December Amended
2022-23 2022-23 2022 YTD Percent
D. S. - Sewer Operating Budget Amended Expenditures Expended 4200 Operations 4,809,563$ 4,809,563$ 2,021,015$ 42% 4240 Engineering 267,166 267,166 66,084 25% 4260 Utility Billing 243,465 243,465 107,344 44% 4270 Administration 748,047 748,047 371,671 50% Total D.S. Sewer Operating 6,068,241$ 6,068,241$ 2,566,114$ 42% December Amended
2022-23 2022-23 2022 YTD Percent
Budget Amended Expenditures Expended
Police 20,613,786$ 20,613,786$ 10,121,860$ 49%
December Amended
2022-23 2022-23 2022 YTD Percent
Budget Amended Expenditures Expended
Fire District 1,130,815$ 1,130,815$ 1,093,205$ 97%

2022-23 MID-YEAR BUDGET REVIEW REPORT
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PROPOSED BUDGET AMENDMENTS – SUMMARY

The FY 2022-23 Mid-Year Budget Review includes four (4) budget amendments totaling $141,714. The following listing categorizes the proposed budget amendments, with the following pages providing detail on each request:

PROPOSED BUDGET AMENDMENTS – NARRATIVE

Police
 2017 JAG Grant for Operational Overtime and Training $18,603 (100-51-510-0000-8000) – New On August 15, 2017, the City Council authorized the submission of the 2017 Edward Byrne Justice Grant (JAG) Application to the U.S. Department of Justice (DOJ) . In June 2022 , the City received the grant funds and was notified of the award on July 7, 2022 . The 2017 JAG Grant is to be used for operational overtime, specialized training, and training conferences through September 30, 2022 . Due to the timing of the grant award and budget adoption, the grant award was not included in the budget; therefore staff is requesting an amendment in the amount of $18,603.
 HSG Grant Match Requirement Mobile License Plate Reader 4 -Camera System purchase $7,969 ( 312) – Unanticipated
The FY 2022-23 Budget included $24,875 for the Homeland Security Grant (HSG) funds. The Homeland Security Grant is used to enhance public safety and the grant requires that the purchase be made first and then the required documentation submitted for reimbursement. Additional ly, as part of the grant regulations, the City is required to match a percentage of the awarded funds. Staff is requesting approval to use DIF funds in the amount of $7,969 for the City’s grant match requirement for the purchase of one Mobile License Plate Reader (LPR) camera system unit.

Development Services
 Community Development Building & Safety – Contract Inspection Services $50,000 (100- 29-300-3020) – Unanticipated
The Fiscal Year 2022- 23 Operating Budget included $50,000 for contract inspection services and during the First Quarter Budger Review an amendment of $50,000 was approved. Due to the high demand of inspections, additional contract inspection services are being requested to ensure that inspections continue to meet the City’s timely standard turnaround.

 Public Works -Street Maintenance/Traffic – Bridge Rail Repair -Caliente Road $45,142 (263 -29-310-3170) – Unanticipated
During August 2022, a San Bernardino County ambulance crashed into a section of the bridge on Caliente Road causing damage to the interlocking rails. Aside from the damage to the rails, there was no other damage to the bridge. The County will reimburse the City the cost of repairs upon completion.

General Other
FY 2022-23 Mid-Year Budget Requests Fund Funds Totals

1. Justice Assistance Grant (JAG) 2017/Homeland Security $ 18,603 $ 7,969 26,572$ Grant (HSG)

2. Contract Inspection Services 50,000 0 50,000

3. Bridge Rail Repair-Caliente Road 0 45,142 45,142

4. C.O. 7901 Cataba Road Basin 0 20,000 20,000 Total Mid-Year Amendment Requests $ 68,603 $ 73,111 141,714$

2022-23 MID-YEAR BUDGET REVIEW REPORT
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P
ROPOSED BUDGET AMENDMENTS – Narrative (Continued)
D
evelopment Services (Continued)
 Development Impact Fees (DIF) 2018-Drainage Facilities – C.O. 7901 Cataba Road Basin $20,000 (307-7901) –
New
During the 2021 calendar year, the City was notified by the State of California Department of Water Resources that a retention basin at Cataba Road would be required. This retention basin will regulate the flow of stormwater and allow the sediment to settle into the basin rather than overflowing into the aqueduct overchute. Since the notification, projects along the Interstate 15 (I -15) freeway such as I -15 Industrial Project and Corridor Improvements have progressed and the design and engineering services for the basin is necessary . An amendment is being requested to start design and will be included in the FY 2023-24 Capital Improvement Program (CIP) Budget.

General Other
Requested: Fund Funds Totals
General Fund
Justice Assistance Grant (JAG) (Police) 18,603$ 0$ 18,603$ Contract Inspection Services (Community Development-Building & Safety) 50,000 0 50,000 Total General Fund 68,603$ 0$ 68,603$ Development Services
Bridge Repair-Caliente Rd (Public Works-Street Maintenance/Traffic) $ 0 45,142$ 45,142$ Total Development Services 0$ 45,142$ 45,142$ Development Impact Fees (DIF)
C.O. 7901 Cataba Road Basin (DIF 2018-Drainage Facilities) 0$ 20,000$ 20,000$ Homeland Security Grant (DIF 2018-Police Facilities) 0 7,969 7,969 Total Development Impact Fee (DIF) 0$ 27,969$ 27,969$ Total City Expenditures 68,603$ 73,111$ 141,714$ Source of Funds:

General Fund - 100 68,603$
Street Maintenance - 263 45,142
DIF 2018 - 307 20,000
DIF 2018 - 312 7,969
Total Source of Funds 141,714$

2022-23 MID-YEAR BUDGET REVIEW REPORT
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2022 - 23 Mid-Year Budget Salaries and Positions

The following position title and sal ary changes are proposed for more effective management City operations. The increased cost associated with the proposed restructuring is approximately $ 98,000. If approved by the City Council, these changes will also be included in the 202 3-24 Proposed Budget. The proposed changes are summarized as follows:
• Director of Development Services (Non -Represented) – Add one new Director of Development Services position, which will be an Unclassified/At-Will position, with a Salary Range of 52. • Principal Planner Part -Time Retired Annuitant (Part -time) – Add one new position classification title of Principal Planner Part-Time Retired Annuitant, which will be a Non-Represented position at a Salary Range of 44. • Assistant to the City Manager ( Non-Represented) – Convert one vacant Community Relations Specialist position, which is a Professional/Supervisory classification at a salary r ange of 34 to an Assistant to the City Manager position, which will be a Management classification at a Range 43. • Public Relations Analyst (Non -Represented) – Convert one vacant Community Relations Specialist position, which is a Professional/Supervisory classification at a salary range of 34 to a new position of Public Relations Analyst , which will be a Professional/Supervisory classification at a Range 39. • Public Works Inspection Supervisor (Non-Represented) – Retitle the vacant Senior Management Analyst position, which is a Management classification at a salary range of 40 to a new title of Public Works Inspection Supervisor, which will be a Professional/Supervisory classification at a Range 39. • Public Works Inspector ( Non-Represented) – Retitle the vacant Environmental Compliance Inspector position, which will continue to be a General Classification, with the same salary range of 35 to a Public Works Inspector position.
• Senior Project Manager (Non-Represented) – Retitle one Senior Management Analyst position, which is a Management classification at a salary range of 40 to a new title of Senior Project Manager , which will be a Management classification at a Range 43.
• Finance Manager (Non -Represented) – Retitle one Senior Accountant position, which is a Management classification at a salary range of 38 to a new title of Finance Manager, which will be a Management classification at a Range 40.
• Accounting Technician (Non-Represented) – Retitle one vacant Office Assistant position, which is a General classification at a salary range of 26 to an Accounting Technician position, which will co ntinue to be a General classification at a Range 31.
• Animal Control Officer (Represented) – Eliminate one Senior Animal Control Officer position at a range 14, and add one Animal Control Officer position, which is a Represented position, at a Range 12. • Custodian (Part -time) – Eliminate one Facilities Electrician (Part -time) position, which is a N on-Represented position at a range of 35, and add one Custodian (Part-time) position, which will be a Non-Represented position at a Range 8.

2022-23 MID-YEAR BUDGET REVIEW REPORT
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2023 - 24 Tentative Budget Calendar

While the Mid-Year report is a gauge of the current year’s activity, it does serve as the official start for planning the next year’s budget. Below is the tentative calendar for the FY 2023-24 Budget.

OpenGov Training – FY 2023-24 Proposed Budget and FY 2022-23 Revised Budget February 7-24, 2023 2023-24 Budget Instructions (Intranet) February 24, 2023 Council FY 2022-23 Mid-Year Budget Review March 7, 2023 2023-24 Draft Division and/or Program Narratives March 10, 2023 FY 2022-23 Revised Revenue and 2023-24 Proposed Budget Revenue Estimates to Departments for Review (07/01/2022 thru 02/29/2023)
March 16, 2023 (Review)
March 22, 2023 (Due)
FY 2022-23 Revised Expenditure Estimates, 2023-24 Current Level Proposed Budget Expenditures
March 29, 2023
2023-24 Budget Increments-“Requested Expenditures Above Current Level” April 4, 2023 Budget Review with Departments/Divisions (Finance) Mid-April 2023-24 Final Proposed Budget Division and/or Program Narratives completed End of April Workshop #1 – Current Level Budget to Council (Operating) May 2, 2023 Capital Improvement Program (CIP) Due from Department to Finance May 4, 2023 Workshop #2 – Above Current Levels to Council May 16, 2023 2023-24 Proposed Budget completed May 26, 2023
Council Budget Workshop June 6, 2023
Council Adopts Operating Budget June 6, 2023
Council Adopts CIP Budget June 20, 2023

With this calendar, there are two planned budget workshops prior to requesting the City Council to adop t the operating budget on June 6, 2023 and the CIP Budget on June 20, 2023. • Budget Workshop #1 will highlight the current-level operating budget. • Budget Workshop #2 will highlight the use of reserves for major purchases, as well as the capital improvement program budget.

RESOLUTION NO. 2023-08

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING THE 2022-23 MID-YEAR BUDGET REVIEW AND AMENDING THE 2022-23 CITY OF HESPERIA BUDGET TO FUND CERTAIN

RELATED EXPENDITURES

WHEREAS, the City Council of t he City of Hesperia adopted the Fiscal Year (FY) 2022-23 Budget on June 7, 2022; and

WHEREAS, the City Council of the City of Hesperia was presented the 2022-23 Mid-Year Budget Review by staff; and

WHEREAS, the City Council of the City of Hesperia has reviewed the 2022-23 Mid-Year Budget Review information and analysis and has found it acceptable; and

WHEREAS, the City Council of the City of Hesperia has reviewed and approves the budget amendments included in the 2022-23 Mid-Year Budget Review.

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

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

Section 2. That the City Council of the City of Hesperia receives the 2022-23 Mid-Year Budget Review.

Section 3. That the City Council approves the 2022-23 Mid-Year Budget Review expenditure amendments by making appropriations for:

 Justice Assistance Grant 17 (100-51-510) $ 18,603
 Contract Inspection Services (100-29-300) 50,000
 Bridge Repair-Caliente Road (263-29-310) 45,142
 C.O. 7901 Cataba Road Basin (307-29-700) 20,000
 Homeland Security Grant (312-51-510) 7,969
Total $141,714

Section 4. That the City Council approves the following position classification changes included in the 2022-23 Mid-Year Budget Review as follows:

Section 4a. That the City Council approves the new position classification title of Principal Planner Part -Time Retired Annuitant , which is a non-represented position, with a salary range of 44.

Section 4b. That the City Council approves the new position classification title of Public Relations Analyst , which is a non -represented position in the professional/supervisory classification, with a salary range of 39.

Section 4c. That the City Council approves the new position classification title of Public Works Inspection Supervisor, which is a non -represented position in the professional/supervisory classification, with a salary range of 39.

Resolution No. 2023-08

Section 4d. That the City Council approves the new position classificat ion title of Senior Project Manager , which is a non -represented position in the management classification, with a salary range of 43.

Section 4e. That the City Council approves the new position classification title of Finance Manager, which is a non -represented position in the management classification, with a salary range of 40.

Section 4f. That the City Council approves the new position classification title of Public Works Inspector, which is a non -represented position in the general classification, with a salary range of 35.

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 7th day of March 2023.

_________________________________________
Brigit Bennington, Mayor
ATTEST:

___________________________________
Erin Baum, Assistant City Clerk

RESOLUTION NO. HWD 2023-02

A RESOLUTION OF THE HESPERIA WATER DISTRICT OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING THE 2022-23 MID-YEAR BUDGET REVIEW AND AMENDING THE 2022-23 HESPERIA WATER DISTRICT

BUDGET TO FUND CERTAIN RELATED EXPENDITURES
WHEREAS, the Board of Directors of the Hesperia Water District adopted the Fiscal Year (FY) 2022-23 Budget on June 7, 2022; and
WHEREAS, the Board of Directors of the Hesperia Water District was presented the 2022-23 Mid-Year Budget Review by staff; and
WHEREAS, the Board of Directors of the Hesperia Water District has reviewed the 2022-23 Mid-Year Budget Review information and analysis and has found it acceptable; and WHEREAS, the Board of Directors of the Hesperia Water District has reviewed and approves budget amendments included in the 2022-23 Mid-Year Budget Review.

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

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

Section 2. That the Board of Directors of the Hesperia Water District receives the 2022-23 Mid-Year Budget Review.

Section 3. That the Board of Directors of the Hesperia Water District approves the following position classification change s included in the 2022-23 Mid-Year Budget Review as follows:

Section 3a. That the Board of Directors approves the new position classification title of Public Relations Analyst, which is a non -represented position in the professional/supervisory classification, with a salary range of 39.

Section 3b. That the Board of Directors approves the new position classification title of Public Works Inspection Supervisor, which is a non -represented position in the professional/supervisory classification, with a salary range of 39.

Section 3c. That the Board of Directors approves the new position classification title of Senior Project Manager, which is a non -represented position in the management classification, with a salary range of 43.

Section 3d. That the Board of Directors approves the new position classification title of Finance Manager, which is a non -represented position in the management classification, with a salary range of 40.

Resolution HWD No. 2023-02

Section 3e. That the Board of Directors approves the new position classification title of Public Works Inspector, which is a non -represented position in the general classification, with a salary range of 35.

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

ADOPTED AND APPROVED this 7th day of March 2023.

_________________________________________
Brigit Bennington, Chair
ATTEST:

_______________________________
Erin Baum, Secretary to the Board

City of Hesperia

STAFF REPORT
DATE: March 7, 2023
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Ryan Leonard, Senior Planner
SUBJECT: Receive and File Report- Temporary Signage Regulations

RECOMMENDED ACTION
It is recommended that the City Council receive and file this report related to temporary special event permits, temporary signage, political signage and to give direction to staff.

BACKGROUND
On January 17, 2023 Council Member Gregg requested staff to prepare a report for discussion related to event signage for temporary special events.

Chapter 16.12 of the Hesperia Municipal Code contains provisions for the review and approval of special events and temporary uses. The requirements for temporary signage for special uses including temporary special events, promotional events and political signs can be found in Section

16.36 of the Municipal Code.

Special Events and Temporary Uses: Article XI of the City Municipal Code- Special Events and Temporary Uses provides regulations for special events (Attachment 1). The intent is to regulate special events and other land use activities of a temporary or recurring nature to ensure that the uses will be compatible with the surrounding land uses, to protect the rights of adjacent residences and land owners, and to minimize any adverse ef fects on surrounding properties and the environment. In general, special event permits are required for the following types of uses:
 Parking lot and sidewalk sales for existing businesses located within a commercially designated property;
 Outdoor art and craft shows and exhibits;
 Fairs, concerts or festivals held outdoors;
 Circuses, carnivals, rodeos, or similar traveling amusement enterprise;  Parades and other events conducted within the public right of way;  Auctions or distress sales;
 Special events for charitable organizations on facilities they occupy  Christmas tree lots, pumpkin patches and other seasonal events.

Special event permits are reviewed and approved by staff administratively. When approving a special event permit staff may establish conditions and limitations including but not limited to:
days and hours of operation, provision of parking areas, signing and lighting, traffic, circulation and access, temporary or permanent site improvements, and other measures to minimize detrimental effects on surrounding properties. In addition, special event permits are subject to the following requirements as applicable:

Staff Report to the City Council
Temporary Signage Regulations
March 7, 2023
1) The approval period for any special event shall not exceed 21 days, or more than four consecutive weekends of operation in any ninety-day period. 2) Adequate provisions for traffic circulation, off -street parking, and pedestrian safety shall be provided to the satisfaction of the development services director, or his or her designee. 3) Sanitation facilities shall be provided for the duration of the event; the number and location to be determined by the reviewing authority.
4) Security personnel shall be provided as required by the City police department. 5) Parking accommodations for amusement enterprise workers and support vehicles shall be provided as required by the reviewing authority.
6) Noise attenuation for generators and carnival rides shall be provided as approved by the reviewing authority.
7) Adequate emergency access shall be provided as approved by the fire department. 8) A certificate of insurance shall be submitted to the planning division, naming the city as co-insured, for not less than one million dollars ($1,000,000.00) of general liability coverage, prior to issuance of any permits. This requirement may be waived f or small events entirely on private property with no impacts to public facilities. 9) Adequate staging area shall be provided as approved by the development services director, or his or her designee.
10) Any platforms, stages, tents, or screening devices erected for the event shall be constructed to the satisfaction of the building official and/or fire marshal. The structure shall be removed from the site immediately following the event. 11) If involvement by government personnel (public works, fire, and police) is re quired, a deposit to cover estimated costs shall be submitted prior to issuance of the permit. Upon completion of the event, the city will, within twenty (20) working days, either refund any unused portion of the initial deposit, or require payment of any additional expenses incurred.
12) In cases where food and/or alcohol products will be sold to the general public in conjunction with the event, proof that permits were obtained from the county department of environmental health services and other applicable agencies shall be submitted prior to issuance of any permits.
13) Portable searchlights may be permitted, provided that the beam, when lit, shall not be at an angle of less than sixty (60) degrees from the horizontal, and that no advertising is located on the searchlight or its supporting structure. 14) Inflatable signs, balloons or bounce houses may be permitted provided that they are securely tethered. Insurance as specified in subsection (9) shall be required for any event using such inflatable devices.

Temporary Signage: Section 16.36.090 of the City Municipal Code contains regulations to erect temporary signage for special events, promotional events, etc (Attachment 2). Temporary event signage, including a -frame signs, flags, pen nants, and banners are regulated as part of a temporary special event permit and are subject to the same time limitations that are established as part of the temporary special event permit (i.e. a maximum display period of 21 days per event).

Temporary signage is subject to the following regulations:
1) A-frame signs shall not exceed a sign area of twenty (20) square feet, and a height of four feet. A flag mounted on a pole shall not exceed a sign area of sixty -five (65) square feet and a height of twelve (12) feet.
2) No temporary sign shall be placed within ten feet of another temporary sign. 3) The signs may only be displayed during business hours of operation. 4) The signs must be neatly and professionally constructed and all lettering done in a professional workmanlike manner.

Staff Report to the City Council
Temporary Signage Regulations
March 7, 2023

5)
a. Flag pole signs shall mean any sign of lightweight fabric or similar material that is permanently mounted to a pole.
b. A-frame signs shall be constructed of durable materials that are weather and rust- resistant.
6) The signs may not be illuminated or contain any electrical components. 7) The signs must be installed in a manner preventing it from falling or blowing over. 8) The temporary signs shall be placed on the privately owned property where the business is located (i.e. off-site signs are prohibited).
9) The temporary signs shall not be placed in the right -of-way, clear sight triangle, or handicap path of travel. A temporary signs shall not be hung from, or attached to, utility poles, light poles, or landscaping.

Political Signs: Section 16.36.090 of the City Municipal Code contains regulations to erect political signs. Political signs are subject to the following regulations:

1) Political signs may be displayed up to sixty (60) days before a scheduled election and must be removed within fifteen (15) days after the election. 2) Political signs may be placed in the public right -of-way, subject to certain exceptions to ensure safety:
3) Political signs are not permitted in median strip areas. 4) Political signs must be freestanding and are not permitted on traffic signs, trees, shrubs, bus stops, power poles, utility cabinets or other public appurtenances. 5) Political signs may not be placed within fifty (50) feet of an intersection and no closer than six feet from the curb. Where no curb exists, signs shall be at least ten feet from the edge of pavement.
6) Political signs may not be located within any clear-sight triangle and may not obstruct any regulatory sign or traffic signal. In no case shall any political sign be placed where it will obstruct or impede traffic visibility.
7) Political signs may not be placed on city or other public property outside of city right -of- way, such as parks, buildings, facilities or appurtenant landscaped areas. 8) Political signs may be up to thirty-two (32) square feet in area and six feet in height. 9) All political signs on private property must be authorized by the property owner. 10) Signs may not be affixed directly to buildings or other objects. Signs may not be illuminated, but may be placed where existing lighting may permit them to be seen at night.

ISSUES/ANALYSIS

It is recommended that the City Council receive and file this report related to temporary special event permits, temporary signage, political signage and to give direction to staff.

FISCAL IMPACT
None.

ALTERNATIVE(S)
1) Provide alternate direction to staff.

ATTACHMENTS

1. Article XI of the City Municipal Code- Special Events and Temporary Uses.

2. Section 16.36.090 of the Municipal Code.

Title 16 - DEVELOPMENT CODE
Chapter 16.12 - PERMITS AND PROCEDURES
ARTICLE XI. SPECIAL EVENTS AND TEMPORARY USES

Hesperia, California, Code of Ordinances Created: 2023-02-01 09:34:57 [EST] (Supp. No. 21, Update 1)

ARTICLE XI. SPECIAL EVENTS AND TEMPORARY USES

16.12.370 Purpose of provisions.

The purpose of this article is to control and regulate special events and ot her land use activities of a temporary or recurring nature that may adversely affect the public health, safety, and welfare. The intent is to ensure that these events and uses will be compatible with surrounding land uses, to protect the rights of adjacent residences and landowners, and to minimize any adverse effects on surrounding properties and the environment. (Ord. 2002-11 Exh. A (part), 2002)
(Ord. No. 2012-14, § 3(Exh. A), 8-7-12; Ord. No. 2017-04 , § 3(Exh. A), 3-21-17)

16.12.375 General provisions.

A. A temporary use or structure which does not have a valid and current use permit as specified herein is declared to be a public nuisance, subject to the enforcement provisions of the development code and other applicable laws.

B. A change in ownership or operator of a use or structure subject to a permit as specified in this article, or a change of structure or modification of the structure or use allowed on a parcel subject to such a permit, shall not affect the time periods established by this article to allow such temporary uses, special events or structures.

C. Noncompliance with the conditions set forth in approving the permit shall be grounds for the reviewing authority to cancel and void any use permit for a temporary use. Except in the case of a demonstrated emergency, the reviewing authority shall give prior notice of such an action to the permittee. The permittee may appeal such a decision by filing an appeal as allowed and specified in Section 16.12.055. The revocation shall be considered in accordance with Section 16.12.075.

D. Unless otherwise specified in this article, the development services director, or his or her designee, is authorized to approve, conditionally approve with reasonable conditions, or to deny a permit for a temporary use or special event. The approval may establish conditions and limitations, including but not limited to: days and hours of operation, provision of parking areas, signing and lighting, traffic circulation and access, temporary or permanent site improvements, and other measures necessary to minimize detrimental effects on surrounding properties.

E. The development services director, or his or her designee, may require a cash deposit or cash bond to defray the costs of cleanup of a site by the city in the event the applicant fails to leave the property in a presentable and satisfactory condition, or to guarantee removal and/or reconversion of any temporary use to a permanent use allowed in the subject land use designation. (Ord. 2002-11 Exh. A (part), 2002)
(Ord. No. 2012-14, § 3(Exh. A), 8-7-12; Ord. No. 2017-04 , § 3(Exh. A), 3-21-17)

Created: 2023-02-01 09:34:57 [EST]
(Supp. No. 21, Update 1)

16.12.380 Special event permits.

A. All special events shall be subject to the following requirements, as applicable:

1. The approval period for any special event shall be for the time period specified on the approval but in no circumstances shall it exceed more than twenty-one (21) continuous days, or more than four consecutive weekends of operation in any ninety-day period.

2. Adequate provisions for traffic circulation, off-street parking, and pedestrian safety shall be provided to the satisfaction of the development services director, or his or her designee.

3. Sanitation facilities shall be provided for the duration of the event; the number and location to be determined by the reviewing authority.

4. Security personnel shall be provided as required by the city police department.

5. Parking accommodations for amusement enterprise workers and support vehicles shall be provided as required by the reviewing authority.

6. Noise attenuation for generators and carnival rides shall be provided as approved by the reviewing authority.

7. Adequate emergency access shall be provided as approved by the fire department.

8. A certificate of insurance shall be submitted to the planning division, naming the city as co -insured, for not less than one million dollars ($1,000,000.00) of general liability coverage, prior to issuance of any permits. This requirement may be waived for small events entirely on private property with no impacts to public facilities.

9. Adequate staging area shall be provided as approved by the development services director, o r his or her designee.

10. Any platforms, stages, tents, or screening devices erected for the event shall be constructed to the satisfaction of the building official and/or fire marshal. The structure shall be removed from the site immediately following the event.

11. If involvement by government personnel (public works, fire, and police) is required, a deposit to cover estimated costs shall be submitted prior to issuance of the permit. Upon completion of the event, the city will, within twenty (20) working days, either refund any unused portion of the initial deposit, or require payment of any additional expenses incurred.

12. In cases where food and/or alcohol products will be sold to the general public in conjunction with the event, proof that permits were obtained from the county department of environmental health services and other applicable agencies shall be submitted prior to issuance of any permits.

13. Portable searchlights may be permitted, provided that the beam, when lit, shall not be at an angle of less than sixty (60) degrees from the horizontal, and that no advertising is located on the searchlight or its supporting structure.

14. Inflatable signs, balloons or bounce houses may be permitted provided that they are securely tethered.

Insurance as specified in subsection (9) shall be required for any event using such inflatable devices.

B. Special Event Permits. A special event permit shall be required for the following uses, including but not limited to:

1. Parking lot and sidewalk sales for businesses located within a commercially designated property. Any special event for the sale of automobiles, boats, recreational vehicles, pools, spas, trucks, heavy equipment, mobile homes, sheds, modular buildings or similar items shall be limited to businesses with

Created: 2023-02-01 09:34:57 [EST]
(Supp. No. 21, Update 1)

their primary establishment within the Victor Valley, including the town of Apple Valley and the cities of Adelanto, Hesperia and Victorville. The city may, at its option, issue a permit to an applicant with a primary business establishment out of this area, should no special event to sell the proposed items have occurred within the previous three months. The applicant is required to establish the point of sale for the event to be within the city for sales tax purposes. Prior to approval of a permit, the city shall receive a copy of the seller's permit evidencing that the point of sale is within the city.

2. Swap meets, outdoor art and craft shows and exhibits.

3. Fairs, concerts, or festivals, held outdoors or in temporary enclosures.

4. Circuses, carnivals, rodeos, pony riding, or similar traveling amusement enterprises.

5. Parades and other events conducted within the public right-of-way.

6. Auctions or distress sales.

7. Special events for charitable organizations on facilities they occupy on a continual basis.

8. Public fireworks display and/or special effects.
(Ord. No. 2012-14, § 3(Exh. A), 8-7-12; Ord. No. 2017-04 , § 3(Exh. A), 3-21-17; Ord. No. 2020-06 , § 2, 5-19-20)

16.12.382 Temporary uses.

A. A temporary occupancy permit, temporary special event and/or building permit shall be required for the following uses:

1. A temporary special event permit is required for food and drink carts located on the property adjacent to established commercial or industrial uses hosting the event. In addition, the use shall have obtained permits from the county department of environmental health services. The regulations within Section

16.16.061 entitled "mobile food vehicle regulations" will apply if the cart meets the definition within Section 16.08.532.

2. Christmas tree lots or pumpkin patches shall obtain approval of a temporary special event subject to the following guidelines and conditions:
a. Christmas tree lots may operate during the week before Thanksgiving through December 25th.

This time does not include reasonable setup or teardown activities. Pumpkin patches may operate during the last week of September through October 31st. Su ch uses shall be located on unoccupied portions of corner lots abutting at least one road designated on the city's master plan of arterial highways. The sale of Christmas trees may also occur on developed commercial sites occupied by existing retailers that sell trees and plants. b. All lighting shall be directed away from and shielded from adjacent residential areas. c. Adequate provisions for traffic circulation, off-street parking, and pedestrian safety shall be provided as approved by the development services director, or his or her designee. d. All requirements of the city, fire and police departments shall be met for the duration of the use.

3. Trailer coaches, motor homes, or mobile homes may be placed on active construction sites, for use as temporary living quarters for security personnel, or as a temporary residence for the subject property owner with approval of a temporary occupancy permit. The following restrictions shall apply:
a. The development services director may approve a temporary vehicle for the duration of the construction project, or for a specified period, but not for more than one year. If exceptional

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(Supp. No. 21, Update 1)

circumstances exist, a one-year extension may be granted; provided, that the building permit for the first permanent dwelling or structure on the same site has also been extended. b. Installation of these vehicles may occur only after a valid building permit has been issued by the building division.
c. Vehicles permitted pursuant to this section shall not exceed a maximum gross squ are footage of six hundred fifty (650) square feet in size (tongue not included), and shall have a minimum of two hundred fifty (250) square feet for one or two persons, or a minimum of six hundred (600) square feet for occupancy by three or more persons. The unit must have a valid California vehicle license. Pickup campers shall not be permitted.
d. The temporary vehicle installation must meet all requirements of the county department of environmental health services and the city building and safety division. e. Any permit issued pursuant to this section in conjunction with a construction project shall become invalid upon cancellation or completion of the building permit for which this use has been approved, or the expiration of the time for which the app roval has been granted. f. The permitted vehicle shall be removed from the site within thirty (30) days of the final approval of the building permit. A motor home, fifth-wheel trailer, or other recreational vehicle permitted under this section shall be disconnected from all utilities at the time of final approval. g. Any vehicle permitted under this section shall be connected to approved sewage, electrical and water facilities at all times when the vehicle is authorized by a temporary occupancy permit. h. A building permit for the installation of a mobile home to be used as a temporary residence permitted under this section shall not be issued, if more than ten years have elapsed between the date of manufacture and the date of the application for the issuance of the permit to install the mobile home.

4. Temporary Office Modules. Temporary structures, such as office trailers or prefabricated structures for use as interim offices, classrooms or for security personnel shall require approval of a temporary occupancy permit. The temporary structure shall be allowed in any designation that allows the use pursuant to Section 16.12.085. Recreational vehicles, cargo containers, and mobile homes shall not be used for this purpose. The location of such structures shall be fully screened from the public right-of- way or adjacent residential properties. The city may limit the time allowed for the use of such temporary structures, where it is feasible for such offices, classrooms or security facilities to be integrated into permanent structures.

5. Model Homes. Model homes may be used as offices solely for the sale of homes within a recorded tract with approval of a temporary occupancy permit, subject to the following conditions:
a. The sales office may be located in the garage of one of the model homes, a temporary office trailer, or within the livable portion of one of the models. b. Approval shall be for a three-year period, at which time the sales office shall be terminated, and if applicable, the structure remodeled to a single-family dwelling. Extensions may be granted by the building official in one-year increments, but no extension shall be granted if over ninety (90) percent of the development is sold.
c. A cash deposit, letter of credit, or other security approved by the city shall be submitted to the city, in an amount to be set by the city, to ensure the restoration or removal of the structure. d. The sales office is to be used only for transactions involving the sale, rent, or lease of lots and/or structures within the tract in which the sales office is located, contiguous tracts, or a planned community. However, the planning commission may consider off-site model homes sales offices

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(Supp. No. 21, Update 1)

where permitted by the land use designation, subject to the granting of a te mporary occupancy permit as specified in Section 16.12.382.
e. Failure to terminate the sales office and remodel the structure, or failure to apply for an extension on or before the expiration date, will result in forfeiture of the cash deposit, a halt in further construction or inspection activity on the project site, and enforcement action to ensure the remodeling of the structure.
f. Street improvements and temporary off-street parking at a rate of two spaces per model shall be completed as approved by the planning division, prior to commencement of sales activitie s or the display of model homes. Access to the parking area shall be prohibited from the rear of double frontage lots. Future street right-of-way along the front or street side yard, with a fully paved surface, may be used for no more than five of the required parking spaces, prior to the time that said right-of-way is accepted by the city for public use. g. All fences proposed in conjunction with the model homes and sales office shall be located outside the public right-of-way.
h. Flags, pennants, or other on-site and off-site advertising shall be regulated pursuant to Chapter

16.36 of the development code.
i. Use of signs shall require submission of a sign permit application for review and approval prior to installation.

6. Off-Site Model Homes. A model home sales office, when not located within one of the three circumstances identified in item Section 16.12.382(A)(5)(d), shall be considered an off -site model home sales office, requiring approval of a temporary occupancy permit. The following criter ia shall apply:
a. A sales office may only be located within the dwelling itself, or within the garage. Trailers, modular units, or any similar temporary structure shall not be permitted. b. The structure shall be constructed pursuant to the minimum requirements of the land use designation in which it is located.
c. Paved parking areas shall provide for at least five spaces and shall be located in proximity to the model home sales office. This off-street parking area shall be completed prior to the commencement of activities or display of model homes and shall include applicable handicapped parking spaces, signs and pavement markings.
d. All fences proposed in conjunction with the model home sales office shall be located outside of the public right-of-way.
e. Adequate on-site lighting shall be provided to ensure a safe and secure environment, while at the same time being designed and placed in such a manner as to prevent stray light or glare from becoming a nuisance factor for adjacent residentially designated properties and abutting roadways. The lighting design employed shall be a low-level type of system and is not intended to provide the same level of lighting as a comparable commercial or office use. A detailed lighting plan shall be submitted for review and approval to the building division. f. The temporary occupancy permit shall be for a five-year period. Time extensions may be granted up to a maximum of another two years. Any requests for extension of this temporary use permit beyond the maximum of seven years would require the approval of a conditional use permit, pursuant to Article III of this chapter.
g. Adequate access from a public right-of-way shall be provided to the structure. A twenty-six (26) foot wide driveway shall be provided as approved by the city engineer.

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(Supp. No. 21, Update 1)

h. The structure shall meet all requirements of the city building division, including but not limited to the installation of handicapped accessible restroom facilities, and adequate utility facilities. i. With the exception of the paved parking and signs, an off-site model home shall be developed and landscaped as a single-family residence. Full landscaping, utilizing drought-resistant type materials, shall include a permanent, underground irrigation system, specimen size trees , and the use of shrubbery, ground cover, non-plant landscape materials, to produce an efficient yet pleasing outdoor environment.
j. When the temporary occupancy permit allowing a model home has expired, the home shall be converted and/or remodeled to conform to all requirements for single-family homes, including a two-car garage. A detached garage may be constructed to meet this requirement. k. A city business license shall be required.
(Ord. 2002-11 Exh. A (part), 2002)
(Ord. No. 2012-14, § 3(Exh. A), 8-7-12; Ord. No. 2017-04 , § 3(Exh. A), 3-21-17)

16.12.385 Application procedure.

Applications for temporary use permits and special event permits shall be filed with the planning division in a manner prescribed by the city, along with a fee as adopted by resolution of the city council at least fourteen (14) days prior to the event for minor events unless a shorter time frame is authorized by the director of development services. Any special event permit which requires a partial or complete street closure or which may be attended by approximately five hundred (500) people shall be considered a major event. Major special events may require approval of a traffic control plan and/or other study, use of police and/or fire personnel, and/or providing a surety as required by the review authority. Major events shall be filed with the city at least sixty (60) days prior to the event unless a shorter time frame is authorized by the director of development services. Special events with fewer attendees may also be considered a major event if the event requires that police and/or fire personnel be onsite or if the site or facilities may not accommodate the number of expected participants. (Ord. 2002-11 Exh. A (part), 2002)
(Ord. No. 2012-14, § 3(Exh. A), 8-7-12; Ord. No. 2017-04 , § 3(Exh. A), 3-21-17)

16.12.390 New application following denial.

Following the denial of a permit application for a temporary use, no application for the same or substantially the same use on the same or substantially the same site shall be filed within one year of the date of denial. (Ord. 2002-11 Exh. A (part), 2002)
(Ord. No. 2012-14, § 3(Exh. A), 8-7-12); Ord. No. 2017-04 , § 3(Exh. A), 3-21-17

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(Supp. No. 21, Update 1)

16.36.010 Purpose.

The purpose of this chapter is to:

A. Encourage economic development by supporting the commercial communication needs of the business community;
B. Enhance the quality of life by providing a visually pleasing environment; C. Promoting public health, safety and welfare.
(Ord. 296 § 4 (Exh. A (part)), 2000)

16.36.020 Definitions.

Words and terms used in this chapter are defined as follows:
"Animated sign" means any sign that uses movement of the physical parts or extensions of the sign to depict action or create a special effect. These do not include reader boards, barber poles or similar signs where the sign structure itself is not in motion.
"Banner" means any sign of lightweight fabric of similar material that is permanently mounted to a pole or a building by a permanent frame at one or more edges. National flags, state or municipal flags, or the official flag of any institution or business shall not be considered banners. "Beacon" means any light with one or more beams directed into the atmosphere or directed at one or more points not on the same lot as the light source; also, any light with one or more beams that rotate or move. "Billboard" means any outdoor advertising structure or sign which has a flat surface sign space upon which advertising may be posted, painted, or affixed, and which is designed or made available for the rental or lease of such sign space for advertising billboards shall not mean any on-premises sign." Billboards may utilize digital advertising displays as part or all of their surface area. "Bulletin board sign" means any sign located in a multi-tenant complex that lists businesses and addresses located therein.
"Changeable copy sign" means a sign or portion thereof with characters, letters or illustrations that can be changed or rearranged without altering the face or the surface of the sign. A sign on which the only copy that changes is an electronic or mechanical indication of time or temperature shall be considered a "time and temperature" portion of a sign and a changeable copy sign for purposes o f this chapter. "Club or organization sign" means any sign that exhibits an event or regularly scheduled meeting of a group, club, civic organization or similar use at the site.
"Commercial message" means any sign wording, logo or other representation th at, directly or indirectly, names, advertises or calls attention to a business, product, service or other commercial activity. "Construction or contractor sign" means a temporary sign, which states the names of the individuals and/or firms connected with the construction of a project. Such signs may include the name of the project, the address of the business and the emergency telephone number.
"Copy" means any words, letters, numbers, figures, designs, logos or other symbolic representations incorporated into a sign.
"Digital advertising display" means an advertising display of still, scrolling or moving images including video or animation, that may be changed remotely through electronic means and utilizes a series of grid lights, including but not limited to cathode ray, light-emitting diode (LED), plasma screen, liquid crystal display (LCD) fiber optic or

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(Supp. No. 21, Update 1)

other electronic media or technology. A digital advertising display may also be known as "Reader board." (See also "Billboard.")
"Directional sign" means a sign which contains words such as "entrance," "enter," "exit," "in," "out" or other similar words or a sign containing arrows or characters indicating traffic direction and used either in conjunction with such words or separately.
"Flag" means any fabric, banner or bunting containing distinctive colors, patterns or symbols, used as a symbol of a government, political subdivision or other entity. "Future tenant identification sign" means a temporary sign which identifies a future use of a site or bu ilding. "Grand opening" means a promotional activity used by newly established businesses, within thirty (30) days after occupancy, to inform the public of their location and contribution to the community. "Grand opening" does not mean an annual or occasional promotion of retail sales by a business. "Height" shall be the vertical distance from the highest point of the sign to the highest point within five feet horizontally from the base of the sign.
"Inflatable sign" means any sign capable of being inflated with air or gas. "Institutional use" means facilities which provide a service to the general public, including schools, churches, post offices, fire stations, hospitals, civic centers, and publicly owned land. "Lot" means a parcel of land in single ownership that is of sufficient size to meet minimum zoning requirements for area, coverage and use, and that can provide such yards and other open spaces as required by the zoning regulations.
"Marquee" means any permanent roof-like structure projecting beyond a building or extending along and projecting beyond the wall of the building, generally designed and constructed to provide protection from the weather.
"Marquee sign" means any sign attached to, in any manner, or made a part of a marquee. "Monument sign" means a freestanding sign generally supported by a solid base and less than ten feet in height. The base of a monument sign may include a hollow or opening as part of its design, so long as this area does not exceed more than twenty (20) percent of the sign's face. "Nonconforming sign" means any sign that does not conform to the requirements of this chapter. "Off-site sign" means a sign in accordance with this chapter which directs traffic to a business within the city but not located on the same site as the sign.
"Off-site subdivision sign" means a sign in accordance with this chapter which directs traffic to a subdivision within the city.
"On premises sign" A sign that is either of the following: (1) a sign that advertises the business conducte d, services rendered, or goods produced or sold upon the property on which the sign is placed; or (2) a sign that is within six hundred sixty (660) feet of the edge of the right-of-way of the freeway and advertises business conducted, services rendered, or goods produced or sold within one thousand (1,000) feet of the sign and which meets the requirements of a freeway sign under Section 16.36.060(C)(9) and is taller than sixty (60) feet in height.

On-premise signs shall not be considered "off-site signs" for purposes of Sections 16.36.050(A) or 16.36.080." "Open house sign" means a temporary off-site directional sign advertising the sale or lease of residential, commercial or industrial property, and the identification of the firm handling such sale, lease or rent. "Pennant" means any lightweight plastic, fabric or other material, whether or not containing a message of any kind, suspended from a rope, wire or string, usually in series, designed to move in the wind.

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(Supp. No. 21, Update 1)

"Person" means any individual, association, company, corporation, firm, organization or partnership, singular or plural, of any kind.
"Political sign" means a sign erected prior to an election to advertise or identify a candidate, campaign issue, election proposition, or other related matters.
"Portable sign" means any sign not permanently attached to the ground or other permanent structure, or a sign designed to be transported, including, but not limited to, signs designed to be transported by means of wheels; signs converted to A- or T-frames; menu and sandwich board signs; balloons used as signs; umbrellas used for advertising; and signs attached to or painted on vehicles and visible from the public right -of-way, unless the vehicle is used in the normal day-to-day operations of the business, and parked both adjacent to and in the parking provided for said business.
"Principal building" means the building in which is conducted the principal use on the site on which it is located. Sites with multiple principal uses may have multiple principal buildings, but storage buildings, garages, and other clearly accessory uses shall not be considered principal buildings. "Projecting sign" means any sign affixed to a building or wall in such a manner that its leading edge extends more than six inches beyond the surface of such building or wall. "Reader board sign" means a sign utilizing a field of small lights or other devices to create the effect of letters, numbers or symbols on the sign face.
"Real estate sign" means a temporary sign advertising the sale or lease of the property upon which it is located, and the identification of the firm handling such sale, lease or rent. "Regional uses" means uses, which have access from major highways or arterials, and area of a size and configuration to facilitate development of businesses attracting consumers from a regional market area. Such uses could include retail malls, auto malls, movie theaters, recreation or other similar uses as approved by the director. "Relocation agreement" means an agreement entered into between the city and a billboard or property owner to relocate or replace an existing billboard to another property or to reconstruct it on the same property.

Reconstruction may also include converting a billboard to a digital advertising dis play. "Residential sign" means any sign located in a district zoned for residential uses that contains no commercial message except advertising for goods or services legally offered on the premises where the sign is located, if offering such service as such location conforms with all requirements of the municipal code and general plan. "Revolving sign" means a sign which all or a portion of which may rotate either on an intermittent or constant basis.
"Roof sign" means a sign that is mounted on the roof of a building or which is wholly dependent upon a building for support and which projects above the point of a building with a flat roof, the eave line of a building with a gambrel, gable or hip roof or the deck line of a building with a mansard roof.

Roof sign, integral. "Integral roof sign" means a sign erected or constructed as an integral or essentially integral part of a normal roof structure of any design, such that no part of the sign extends vertically above the highest portion of the roof and such that no part of the sign is separated from the rest of the roof by a space of more than six inches.
"Secondary wall signs" are accessory to the business sign but advertises goods, products or services offered at the site.
"Sign" means any device, fixture, placard or structure that uses any color, form, graphic, illumination, symbol or writing to advertise, announce the purpose of, or identify the purpose of a person or entity, or to communicate information of any kind to the public.

Created: 2023-02-01 09:35:16 [EST]
(Supp. No. 21, Update 1)

"Sign area" means the smallest geometric shape that will encompass the limits of the writing or other display. The structure or backdrop shall not be included in the computation. Multifaced signs shall compute all faces if they can be viewed from any one point at the same time. Channel letters shall be measured in the same fashion.
"Site sign plan" means a plan showing the height, size, type, location and architecture of all signs on a particular property or development. Signs in addition to those in Sections 16.36.040, 16.36 .060 and 16.36.070 may be permitted when found to be benefiting the purpose of this chapter. "Sports facility" means any facility expressly designed for the conduct of sports or recreation activities, owned by the state, county, city or other public or private entity in which sports or sanctioned recreation activities are conducted which has a total square footage greater than fifty thousand (50,000) square feet or, or has a fixed designed seating capacity greater than five thousand (5,000) seats. "Street" means the public right-of-way subject to vehicular traffic (as well as pedestrian traffic) that provides direct or indirect access to property, including, but not limited to, alleys, avenues, boulevards, courts, drives, highways, lanes, places, roads, streets, terraces, trails or other thoroughfare. "Street frontage (building)" means the length of the building facing, or within forty -five (45) degrees of facing, the public right-of-way of thirty (30) feet in width or more. "Street frontage (site)" means the length of the site that abuts dedicated public streets with thirty (30) feet or more of public right-of-way.
"Temporary sign" means any sign that is used only temporarily and is not permanently mounted. "Tethered balloon" means a balloon inflated with air or gas, which is fastened or restrained so that it can range only within a set radius.
"Wall sign" means any sign attached parallel to, but within twelve (12) inches of a wall, painted on the wall surface of, or erected and confined within the limits of an outside wall of any building or structure, which is supported by such wall or building, and which displays only one sign surface. "Window sign" means any sign, pictures, symbol, or combination thereof, designed to communicate information about an activity, business, commodity, event, sale or service, that is placed inside a window or upon the window panes or glass and is visible from the exterior of the window. (Ord. 296 § 4 (Exh. A (part)), 2000)
(Ord. No. 2009-02, § 3, 8-4-09; Ord. No. 2013-015, § 4(Exh. A), 11-5-13; Ord. No. 2017-01 , § 4(Exh. A), 3-7-17)

16.36.030 General provisions and administration.

A. It is unlawful for any person to erect, alter, move, replace or relocate any sign except as provided by this chapter without first obtaining a sign permit.

B. Application for a sign permit shall be made on a form provided by the city. No person shall inst all electrical wiring or lighting to a sign without first obtaining an electrical permit.

C. It is the duty of the community development department to enforce all permitting and entitlement provisions of this chapter. The director may impose such conditio ns deemed necessary to secure the purpose of this chapter.

D. The director may grant minor exceptions from the sign area requirements or other minor changes when determined to be in accordance with Section 16.12.220(7) or (8). Should a site sign plan cont ain requests for signs that exceed the requirements of Section 16.12.220(7) of the development code, then the sign plan shall be referred to the planning commission for review and approval.

Created: 2023-02-01 09:35:16 [EST]
(Supp. No. 21, Update 1)

E. A permit shall be issued when the application is properly made, all fees are paid, the proposed sign complies with all city ordinances, and the sign is to be erected by an owner or licensed contractor.

F. Fees for sign permits shall be set by resolution of the city council.

G. No sign shall be erected upon any property without the written consent of the property owner or authorized representative.

H. Signs and support structures shall be kept in a proper state of repair. Display surfaces on signs shall be kept neatly painted or posted at all times.

I. No sign shall be installed, erected or maintained that prevents free ingress or egress from any door, window, fire escape, driveway, parking space, sidewalk or other area required for pedestrian, bicycle, motor vehicle or equestrian travel.

J. Signs shall be designed to avoid undue glare or reflection of light. Signs shall not be erected that create a traffic hazard or that may be confused with any traffic lights or signs.

K. Abatement and removal may be ordered for any sign when the director, or his designee, determines the sign to be unsafe, insecure or a public nuisance. Signs constructed, altered or maintained in violation with this chapter shall be determined to be a public nuisance and shall be subject to abatement and removal. (Ord. 296 § 4 (Exh. A (part)), 2000)

16.36.040 Exempt signs.

The following signs are exempt from the provisions of this chapter but may require electrical or building permits:

A. Public notice signs or warning signs required by law; B. Signs inside a building not attached to the structure and not visible beyond th e property line; C. Works of art not containing a commercial message;
D. Real estate signs, contractor/construction signs, or future tenant signs for commercial or industrial properties not to exceed thirty-two (32) square feet in area, six feet in height, or spaced less than six hundred (600) feet apart on the same parcel. On residential or agricultural properties, real estate signs may be up to six square feet in area and five feet in height; E. Service station gasoline price signs otherwise regulated pursuant to state law; F. Community historical markers established by the city or park district; G. Time and temperature signs not exceeding twelve (12) square feet or ten feet in height. When time and temperature signs are incorporated as part of a sign, this area may be added to the sign area otherwise permitted by this code;
H. Convenience signs not conveying commercial information, such as restrooms, no parking, pull forward, etc., not larger than six square feet or more than six feet in height; I. On-site safety and identification signs used to identify locations, buildings, units, safety hazards, or similar type information and not exceed two square feet; J. Club or organization signs similar in architecture to monument or wall signs not exceeding four feet in height and twenty (20) square feet in area;
K. Displays or decorations not exceeding twenty (20) square feet in total area and located outside building setback areas, parking lots and drive aisles;

Created: 2023-02-01 09:35:16 [EST]
(Supp. No. 21, Update 1)

L. Holiday decorations or banners not containing a commercial message; M. Window signs, whether painted on the window or as banners or posters hung inside the window. (Ord. 2007-05 § 5 (Exh. A (part)), 2007; Ord. 296 § 4 (Exh. A (part)), 2000)

16.36.050 Prohibited signs.

All signs not permitted by this chapter or exempt from regulation under Section 16.36.040 are prohibited and declared a public nuisance. Prohibited signs include:

A. Off-site signs unless permitted in Section 16.36.080; B. Beacons, exposed light bulbs (except in reader board signs) or light bulb strings (except for temporary holiday use);
C. Pennants and flags except as permitted for special events, promotional events, and model homes; D. Inflatable signs and tethered balloons except as permitted for special events; E. Roof signs are prohibited except when other signing alternatives are considered impr actical or unreasonable by the director. Roof signs may then be permitted if architecturally designed into the roof system. Whenever possible, new buildings shall be designed with integral roof signs to preclude the necessity for roof signs;
F. Animated or revolving signs where the physical structures or extensions of the sign structure are in motion. This does not include readerboards, barber poles or similar signs where motion may be depicted but where the sign structure itself is not in motion; G. Portable sign except as allowed in Section 16.36.090; H. Signs in the public right-of-way, except as approved by the city; I. Signs that make sounds, emit odors or produce smoke. (Ord. 296 § 4 (Exh. A (part)), 2000)
(Ord. No. 2012-04, § 3(Exh. A), 4-3-12)

16.36.090 Special uses.

Special uses include special events, promotional events and political signs.

A. Special use signs advertise special events and activities such as grand openings, charitable events, seasonal sales and events. Special use signs shall be regulated as part of a temporary special event permit.

B. Promotional events advertise new products, management, business ho urs, service or similar events and may include banners, flags, and similar signs with all other signs limited to fifty (50) square feet.

Promotional event signs shall be limited to four display periods annually not to exceed fifteen (15) days per event.

C. Political signs may be displayed up to sixty (60) days before a scheduled election and must be removed within fifteen (15) days after the election.

D. Political signs may be placed in the public right-of-way, subject to certain exceptions to ensure safety:

1. Political signs are not permitted in median strip areas.

Created: 2023-02-01 09:35:16 [EST]
(Supp. No. 21, Update 1)

2. Political signs must be freestanding and are not permitted on traffic signs, trees, shrubs, bus stops, power poles, utility cabinets or other public appurtenances.

3. Political signs may not be placed within fifty (50) feet of an intersection and no closer than six feet from the curb. Where no curb exists, signs shall be at least ten feet from the edge of pavement.

4. Political signs may not be located within any clear-sight triangle and may not obstruct any regulatory sign or traffic signal. In no case shall any political sign be placed where it will obstruct or impede traffic visibility.

E. Political signs may not be placed on city or other public property outside of city right -of-way, such as parks, buildings, facilities or appurtenant landscaped areas.

F. Political signs may be up to thirty-two (32) square feet in area and six feet in height.

G. All political signs on private property must be authorized by the property owner.

H. Signs may not be affixed directly to buildings or other objects. Signs may not be illuminated, but may be placed where existing lighting may permit them to be seen at night.

I. Promotional and special event signs shall include a-frame signs and flag poles as illustrated below.

These signs are not permitted on any vehicle. Temporary signs are subject to approval of a temporary special event permit and may be permitted as follows:

A-Frame Signs

Flag Pole Signs

Created: 2023-02-01 09:35:16 [EST]
(Supp. No. 21, Update 1)

1. a. A-frame signs shall not exceed a sign area of twenty (20) square feet, and a height of four feet. A flag mounted on a pole shall not exceed a sign area of sixty-five (65) square feet and a height of twelve (12) feet.
b. No temporary sign shall be placed within ten feet of another temporary sign. This separation requirement shall only apply to temporary signs allowed in Section

16.36.090(1). It shall be the responsibility of each tenant to coordinate the placement of the sign with other tenants.
c. The signs may only be displayed during business hours of operation. d. The signs must be neatly and professionally constructed and all lettering done in a professional workmanlike manner.
i. Flag pole signs shall mean any sign of lightweight fabric or similar material that is permanently mounted to a pole.
ii. A-frame signs shall be constructed of durable materials that are weather and rust-resistant.
e. The signs may not be illuminated or contain any electrical components. f. The signs must be installed in a manner preventing it from falling or blowing over. g. The temporary signs shall be placed on the privately owned property where the business is located.
h. The temporary signs shall not be placed in the right-of-way, clear sight triangle, or handicap path of travel. A temporary signs shall not be hung from, or attached to, utility poles, light poles, or landscaping.
i. The temporary signs shall be subject to the maintenance and abatement provisions in Chapters 8.32 and 16.36 of this Municipal Code. The installation or erection of any sign in violation of this section shall be, and is hereby declared to be, unlawful and a public nuisance.
(Ord. 2007-05 § 5 (Exh. A (part)), 2007: Ord. 296 § 4 (Exh. A (part)), 2000) (Ord. No. 2009-09, § 3(Exh. A), 8-4-09; Ord. No. 2010-08, § 3(Exh. A), 9-7-10; Ord. No. 2011-16, § 3(Exh. A), 9-6-11; Ord. No. 2012-04, § 3(Exh. A), 4-3-12; Ord. No. 2013-003, § 3(Exh. A), 4-2-13; Ord. No. 2021-01 , 3(Exh. A), 6-1-21)

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City of Hesperia

STAFF REPORT
DATE: March 7, 2023
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Tammy Pelayes, Assistant to the City Manager
Lesa Byars, Management Analyst
SUBJECT: Amendment to Advance Disposal Franchise Agreement Establishing Procurement and Capacity Planning

RECOMMENDED ACTION
It is recommended that the City Council authorize the City Manager to execute an amendment, in a form approved by the City Attorney, to add Section 6.5.4 and Section 8 in addition to language to establish the capacity planning of the Bestway Disposal, Inc., dba Advance Disposal (Advance Disposal) Franchise Agreement.

BACKGROUND
On April 20, 2000, the City and Advance Disposal agreed upon the original “Agreement and Exclusive Permit for the Collection and Disposal of Solid Waste” (the “Franchise Agreement”) for the collection, transportation, disposal, and recycling of residential , industrial, and commercial waste.

On February 21, 2012, the City Council approved an Amended and Restated Exclusive Franchise Agreement with Advance Disposal. The Amendment of 2012 was drafted in accordance with the provisions of Assembly Bill 939 (AB 9 39), the California Integrated Waste Management Act of 1989 which required each California County and City to reduce landfill waste by 25% in 1995 and 50% by 2000.

On October 18, 2016, the City Council approved an Amendment No. 1 to the Amended and Restated Exclusive Franchise Agreement with Advance Disposal. The Amendment of 2016 amended the Franchise Agreement to change the service start time of certain commercial businesses.

On October 19, 2021, the City Council approved an Amendment No. 2 to the Ame nded and Restated Exclusive Franchise Agreement with Advance Disposal. The Amendment of 2021 was to incorporate the Hesperia Environmental Assistance Response Team (HEART) P rogram that would take a proactive approach to mitigating the perpetual illegal dum ping issue that plagues much of the high desert.

Since the previous Amendment to Advance Disposal Franchise Agreement, there have been several additional environmental bills approved by the California legislature which further impact the way local agenci es manage solid waste and recycling. Assembly Bill 32 (AB 32), global

Staff Report to the Mayor and Council Members
Franchise Agreement Amendment
March 7, 2023

Warming Solutions, Assembly Bill 341 (AB 341), Mandatory Commercial Recycling, and Assembly Bill 1826 (AB 1826), Mandatory Commercial Organics, establishing statewide methane emissions goals. Senate Bill 1383 expands upon the goals of the forementioned.

Senate Bill 1383 (SB 1383) was signed into California law in 2016, establishing statewide methane emission reduction goals. Methane emission resulting from the decomposition of organic waste in landfills are a significant source of greenhouse gas (GHG) emissions contributing to global climate change. To reduce organic waste in landfills, SB 1383 has two main goals . The first being to reduce the amount of organic material disposed in land fills by 75% by 2025 . The second being to donate 20% of edible food to organizations who help feed people in need.

ISSUES/ANALYSIS

The amendment to the Amended and Restated Exclusive Franchise Agreement for Provision of Solid Waste Handling Services is necessary to determine and finalize the requirements, provisions, and responsibilities of the City of Hesperia and Advance Disposal in facilitating SB 1383 regulations.

The amended Franchise Agreement between the City of Hesperia and Advance Disposal addresses items such as Compliance with Organic Waste Reporting; Procurement; and Capacity Planning. The Amended Agreement includes both proactive and reactive measures to address issues within City boundaries and is included in Attachment 2; changes are reflected in blue. Key points as well as new provisions not included in the previous Franchise Agreement:

 6.5.f - expands the compliance to include collecting, maintaining and providing the City with all records and information necessary to respond to requests from San Bernardino County regarding the amount of organic waste recycling.

 6.5.3.e – adds wording that neither party intends that a change in the collection program shall result in Franchisee suffering losses outside the commercially reasonable expectations of the parties, and each has an obligation to the other to act reasonably and to cooperate in arriving at an appropriate Rate adjustment subject to a Prop 218 hearing.

Additionally, if needed, the City may elect to terminate the Franchise Agreement with 180 days written notice to prevent the City from incurring fees or other penalties from CalRecycle.

 6.5.4 is the addition of Procurement. Beginning in calendar year 2022, Franchisee shall annually procure a quantity of recovered organic waste products sufficient to meet or exceed City’s annual organic waste procurement target. Advance Disposal shall also take any additional actions necessary to ensure that City received credit for Franchisee’s procurement activities for purposes of compliance with State Organics Laws.

 Franchisee’s indemnification obligation refers to capacity planning for the annual mixed waste organic content recovery rate.

 Section 8 is the addition of Due Execution. The general overview is referencing the person executing this amendment is authorized to do so.

FISCAL IMPACT

Staff Report to the Mayor and Council Members
Franchise Agreement Amendment
March 7, 2023

There are no fiscal impacts associated with the recommended actions.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENTS:

1. Resolution No. 2023-13

2. Amendment No. 3 to Amended and Restated Exclusive Franchise Agreement

RESOLUTION NO. 2023-13

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

CALIFORNIA, APPROVING AN AMENDMENT TO THE AMENDED AND

RESTATED EXCLUSIVE FRANCHISE AGREEMENT WITH ADVANCE

DISPOSAL FOR PROVISION OF SOLID WASTE HANDLING SERVICES WITHIN THE CITY LIMITS OF THE CITY OF HESPERIA.

WHE
REAS, on April 20, 2000, the City of Hesperia, California and Bestway Disposal, Inc., dba Advance Disposal (Advance Disposal) entered into an Agreement and Exclusive Permit for the collection and disposal of solid waste within the City of Hesperia; and WH
EREAS, on February 21, 2012, the City of Hesperia and Advance Disposal entered into an agreement and Restated Exclusive Franchise Agreement for the collection and disposal of solid waste within the City of Hesperia; and
WH
EREAS, the Amendment of 2012 was drafted in accordance with the provisions of Assembly Bill 939 (AB 939), the California Integrated Waste Management Act of 1989 which required each California County and City to reduce landfill waste by 25% in 1995 and 50% by 2000; and WH
EREAS, Senate Bill 1383 (SB 1383) was signed into California law in 2016, establishing statewide methane emission reduction goals. Methane emission resulting from the decomposition of organic waste in landfills are a significant source of greenhouse gas (GHG) emissions contributing to global climate change. The goal being to reduce the amount of o rganic material disposed in landfills by 75% by 2025; and
WHEREAS, a new section 6.5.4 will be added to the existing Agreement with the title of Procurement and will include that the Franchisee shall annually procure a quantity of recovered organic waste products sufficient to meet or exceed City’s annual organic waste procurement target; and
WH
EREAS, a new section 8 will be added to the existing Agreement with the title of Due Execution which shall include a general overview referencing the person executing the amendment is authorized to do so; and
WHEREAS, the amendment to the Agreement will include that compliance is to encompass collecting, maintaining and providing the City with all records and information necessary to respond to requests from San Bernardino Count y regarding the amount of organic waste recycling; and
WH
EREAS, the amendment to the Agreement will also include that neither party intends that a change in the collection program shall result in Franchisee suffering losses outside the commercially reasonable expectations of the parties, and each has an obligation to the other to act reasonably and to cooperate in arriving at an appropriate Rate adjustment subject to a Prop 218 hearing; and

WHEREAS, the City Council has determined that the provisions of the Amendment to Advance Disposal Franchise Agreement Establishing Procurement and Capacity Planning as identified in

Resolution City Council No. 2023-13
Franchise Agreement Amendment

“Attachment 2” are fair and reasonable for the additional solid waste collection and disposal services to be provided by Advance Disposal.

NOW

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

Sec
tion 1. All of the recitals in this Resolution, as set forth above, are true and correct.

Sec
tion 2. The City Council of the City of Hesperia hereby approves the Amended and Restated Exclusive Franchise Agreement with Advance Disposal for provision of solid waste handling services within the city limits of the City of Hesperia.

Sec
tion 3. The effective date of this R esolution shall be March 7, 2023, at which time the Amended and Restated Exclusive Franchise Agreement with Advance Disposal shall be amended as detailed herein
Sec
tion 4. That City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

ADO
PTED AND APPROVED this 7th day of March 2023.
______________________________
Br
igit Bennington, Mayor
ATTEST:
____________________________
Erin Baum
Assistant City Clerk

ATTACHMENT 2
1 01071.0014/839369.1
AMENDMENT NO. 3 TO

AMENDED & RESTATED EXCLUSIVE FRANCHISE AGREEMENT

FOR PROVISION OF SOLID WASTE HANDLING SERVICES
T
HIS AMENDMENT NO. 3 TO AMENDED & RESTATED EXCLUSIVE FRANCHISE

AGREEMENT FOR PROVISION OF SOLID WASTE HANDLING SERVICES (“Amendment”) is made and entered into as of _________________, 2022 by and between BESTWAY DISPOSAL, INC. dba ADVANCE DISPOSAL (“ Franchisee”) and CITY OF HESPERIA, a municipal corporation of the State of California (“ City”). City and Franchisee a re occasionally herein referred to each as a “Party” and collectively as the “Parties.”

R E C I T A L S
A. T
he Parties previously entered into that certain Amended and Restated Exclusive Franchise Agreement for Provision of Solid Waste Handling Services dated February 21, 2012, as amended by Amendment No. 1, dated October 18, 2016, and Amendment No. 2, dated Oc tober 20, 2021 (“Agreement”).

B. Effective January 1, 2022, Senate Bill 1383, the Short-Lived Climate Pollutant Reduction Act of 2016, and the regulations adopted pursuant thereto located in Chapter 12 of Division 7 of Title 14 of the California Code of Regulations (commencing with section 18981.1) (“ State Organics Laws”), require the City to adopt enforceable mechanisms to mandate that organic waste generators, haulers, and other entities subject to the requirements of the State Organics Laws comply with the requirements of such laws. Furthermore, 14 CCR 18981.2(b) provides that the City may designate a private entity to fulfill the City’s responsibilities under the State Organics Laws, including through a contract with the City’s waste hauler. The amendments provided herein are intended to comply with the State Organics Laws and to delegate certain City responsibilities to Franchisee, as authorized in state law.

C. T
he unsegregated single collection service mentioned in the Agreement predates the enactment of SB 1383 and was implemented by Franchisee, and approved by the City, in lieu of other collection and processing systems because it represented the most efficient and cost-effective means of providing the required services. Pursuant to the Amended and Restated Exclusive Franchise Agreement, Franchisee thereafter implemented, and the City approved, certain upgrades to the equipment used by Franchisee to process the unsegregated waste, in anticipation of meeting the organic waste recycling requirements of the new State Organics Laws while also preserving the lower -cost, unsegregated single collection method of service preferred by the community.

A G R E E M E N T
N
OW THEREFORE, in consideration of the promises and covenants contained herein, the above recitals, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

1. Recitals Incorporated. The foregoing recitals are true and correct and are incorporated

ATTACHMENT 2
2 01071.0014/839369.1
herein as if set forth in full.

2. Definitions. All capitalized terms shall have the same definitions ascribed to them in the Agreement.

3. Section 1.1. Section 1.1 of the Agreement is amended as follows (additions in underlined bold italics; deletions in bold strikethrough):

1.1 General. Whenever any term used in this Agreement has been defined by the provisions of Chapter 1.04 of the Hesperia Municipal Code, or Chapter 8.04 of the Hesperia Municipal Code (hereinafter “Chapter 1.04” or "Chapter 8.04"), or by Division 30, Part I of the California Public Resources Code, or by Section 18982 of Title 14 of the California Code of Regulations, the definitions in the Municipal Code, or the Public Resources Code, or California Code of Regulations shall apply unless the term is otherwise defined in this Agreement, in which case this Agreement shall control.

4. Section 1.2. A definition of “State Organics Laws” is hereby added to Section 1.2 of the Agreement and shall read as follows:

1.2.59.1 State Organics Laws. “State Organics Laws” means Senate Bill 1383, the Short-Lived Climate Pollutant Reduction Act of 2016, and the regulations adopted pursuant thereto located in Chapter 12 of Division 7 of Title 14 of the California Code of Regulations (“CCR”) (commencing with section 18981.1), including any amendments thereto.

5. Section 6.5. A new Section 6.5, “Organics Recycling Program,” is hereby added to Article VI and shall read as follows:

6.5 Organics Recycling Program.

6.5.1 Compliance With Organic Waste Recycling Requirements.

Franchisee shall comply with the organic waste recycling requirements found in the Hesperia Municipal Code and in State Organics Laws, including but not limited to, the following:

(a) Franchisee shall provide a solid waste collection service that complies with the requirements of 14 CCR Sections 18984 through 18984.14.

(b) Organic waste collected by Franchisee shall be transported to a facility, operation, activity, or property that recovers organic waste, as defined in 14 CCR Sections 18983.1 and 18983.2.

(c) Upon request by the City, F ranchisee shall identify the facility or facilities to which Franchisee will transport organic waste.

(d) Franchisee shall provide solid waste collection containers

ATTACHMENT 2
3 01071.0014/839369.1
that comply with the color requirements specified in Article 3 of Chapter 12 of Division 7 of Title 14 of the CCR; provided, that F ranchisee is not required to replace functional containers, including containers purchased prior to January 1, 2022, that do not comply with the color requirements prior to the end of the useful life of those containers, or prior to January 1, 2036, whichever comes first.

(e) Franchisee shall place labels on each new container or lid provided to solid waste generators in compliance with 14 CCR Section 18984.8.

(f) Franchisee shall collect, maintain, and provide to City upon request all records and information necessary to allow City to timely comply with the reporting requirements in state law, including but not limited to the reporting requirements in State Organics Laws . Such information shall be provided in a format acceptable to the City Manager and shall be provided in accor dance with a reporting schedule established by the City Manager and reasonably calculated to ensure compliance with the City’s reporting obligations under State Organics Laws.

Compliance with this paragraph (f) also includes, but is not limited to, collec ting, maintaining, and providing C ity with all records and information necessary to allow C ity to respond to requests from San Bernardino County regarding the amount of existing organic waste recycling infrastructure capacity that is available to the Count y and other jurisdictions located in the C ounty within 120 days of receiving the request from the County, in accordance with 14 CCR Section 18992.1.

6.5.2 High Diversion Organic Waste Processing Facility. Franchisee currently provides an unsegregated single -container collection service that allows for the commingling of all collected solid waste, including organic waste. Pursuant to 14 CCR Section 18984.3, as long as Franchisee continues to provide this form of collection service, Franchi see shall transfer all collected solid waste to a high diversion organic waste processing facility, defined in 14 CCR Section 18982(a)(33) as:

[A] facility that is in compliance with the reporting requirements of [14 CCR] Section 18815.5(d) and meets or exceeds an annual average mixed waste organic content recovery rate of 50 percent between January 1, 2022 and December 31, 2024, and 75 percent after January 1, 2025 as calculated pursuant to [14 CCR] Section 18815.5(e) for organic waste received from the “Mixed Waste Organic Collection Stream” as defined in Section 17402(a)(11.5).

Pursuant to 14 CCR Section 18984.3, if the facility that the waste is transported to has an annual average mixed waste organic content recovery rate that is lower than required in Section 18982(a)(33) for two (2) consecutive quarterly reporting periods or three (3) quarterly reporting periods within three (3) years, the facility shall not qualify as a high diversion organic waste processing facility.

6.5.3 Failure to Reach Required Recovery Rate; Corrective Action . If

ATTACHMENT 2
4 01071.0014/839369.1
Franchisee transfers waste from an unsegregated single-container collection service to a facility that does not qualify as a high diversion organic waste processing facility, then City will be in violation of State Organics Laws and will be subject to enforcement action by CalRecycle, which may include a corrective action plan or the assessment of administrative penalties. Consequently:
(
a) Franchisee shall take all necessary actions to ensure that the MRF/TS has an annual mixed waste organic content recovery rate that meets or exceeds the requirements of a high diversion organic waste processing facility, including by not limited to regularly measuring the mixed waste organic content recovery rate achieved by the MRF/TS and upgrading the technology and/or waste processing procedures at the MRF/TS in order to achieve the state -mandated recovery rate, as needed.
(b
) Franchisee shall take all actions necessary to assist City in complying with any corrective action plan issued by CalRecycle regarding compliance with this Section 6.5.
(
c) Franchisee shall protect, defend with counsel approved by City, indemnify, and reimburse the City (including its officers, directors, employees, and agents) from , against, and for any assessment of administrative penalties against City on account of Franchisee’s failure to transfer waste from an unsegregated single-container collection service to a facility that qualifies as a high diversion organic waste processing facility.
(d
) If either Franchisee or CalRecycle determine that the MRF/TS does not meet the requirements for a high diversion organic waste processing facility, Franchisee shall take one of the following actions, which shall be performed in a timely manner so as to meet all timing requirements established by CalRecycle and to avoid the assessment of penalties against City:
(i
) Use Reasonable Business Efforts to bring the
MRF/TS into compliance with all requirements for the MRF/TS to qualify as a high diversion organic waste processing facility, and provide City with a detailed plan of action and monthly reports concerning the status of plan implementation; or (
ii) Subject to approval by City, transfer all unsegregated waste to a different facility that meets the requirements of a high diversion organic waste processing facility.
(
e) If Franchisee is unable to bring the MRF/TS into compliance with the requirements for a high diversion organic waste processing facility after using Reasonable Business Efforts, and if no other high diversion organic waste processing facility acceptable to City is available, then Franchisee shall propose for City review and approval a new solid waste collection program that uses either a two-stream or three-stream collection sys tem and complies with 14 CCR Section

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18984.1 or 18984.2, or a combination thereof. City and Franchisee shall then meet and confer regarding the proposed collection program. The meet and confer process shall include an evaluation of the projected costs of the proposed revised or new collection program. Subject to approval following a Proposition 218 hearing and protest procedure, Franchisee shall be entitled to an adjustment in Rates to the extent necessary to fairly compensate for the additional costs to Franchisee, if any.

Neither party intends that a change in the collection program shall result in Franchisee suffering losses outside the commercially reasonable expectations of the parties, and each has an obligation to the other to act reasonably and to cooperate in arriving at an appropriate Rate adjustment. If the City and Franchisee fail to agree on a revised or new collection program within one hundred twe nty (120) days of commencing the meet and confer process (which date may be extended by mutual written agreement), notwithstanding anything to the contrary contained herein, City may elect, in its sole discretion, to terminate this Agreement on one hundred eighty (180) days written notice, or any such shorter notice as may be required to prevent the City from incurring fees or other penalties from CalRecycle. Franchisee agrees to continue performance under this Agreement until City hires a new contractor.

6.5.4 Procurement. Beginning in calendar year 2022, Franchisee shall annually procure a quantity of recovered organic waste products sufficient to meet or exceed City’s annual organic waste procurement target, as determined by and in accordance with 14 CCR Section 18993.1, and shall annually provide written documentation of such procurement to City in a form and with sufficient content to allow the city to meet CalR ecycle reporting requirements regarding such procurement. Franchisee shall also take any additional actions necessary to ensure that C ity received credit for Franchisee’s procurement activities for purposes of compliance with State Organics Laws.

6.5.5 E ducation and Outreach. Pursuant to 14 CCR 18985.1, Franchisee shall annually inform all customers in City ’s jurisdiction that organic waste collected by Franchisee is being processed at a high diversion organic waste processing facility. Pursuant to 14 CCR 18985.1(e), educational materials shall be translated into any non- English language spoken by a substantial number of Franchisee’s customers in City’s jurisdiction. Franchisee shall also coordinate and cooperate with City to provide other educational materials to customers regarding, and as required by, State Organics Laws.

6.5.56 Default. If Franchisee fails to perform any of its obligation under this Section 6.5, City may declare a default of this Agreement under Article 10.

6. Section 12.2. Section 12.2 of the Agreement is amended as follows (additions in underlined bold italics):

12.2 Indemnification. Without regard to the limits of any insurance coverage, Franchisee agrees to indemnify, defend with counsel appointed by the City, protect

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and hold harmless the City, its representatives, officers, agents and employees against any and all fines, response costs, assessments, actions, suits, injunctive relief, claims, damages to persons or property, losses, costs penalties, obligations, errors, omissions or liabilities, (“ claims or liabilities ”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with (i) violations of the commerce clause of the U.S. Constitution, AB 939, State Organics Laws, the Comprehensive Environmental Response, Compensation and Liability Act, Title 42 U.S.C. §9601 et seq. (“CERCLA”
t
), HSAA, RCRA, any other
Hazardous Waste laws, or other federal, state or local environmental statutes, ordinances and regulations which arise from this Agreement; (ii) the negligent performance of the work or services of Franchisee, its agents, employees, subcontractors, or invitees, provided for in this Agreement; (iii) the negligent acts or omissions of Franchisee hereunder, or arising from Franchisee's negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, whether or not there is concurrent passive or active negligence, on the part of the City, its representatives, officers, agents or employees but excluding such claims or liabilities arising from the sole negligence or willful mi conduct of the City, its representatives, officers, agents or employees, who are directly responsible to the City, and in connection therewith:

(a) Franchisee will defend any action or actions filed in connection with any of said claim or liabilities and will pay all costs and expenses, including legal costs and attorneys' fees incurred in connection therewith;

(b) Franchisee will promptly pay any judgment rendered
against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work or services of Franc hisee hereunder; and Franchisee agrees to save and hold the City, its officers, agents and employees harmless therefrom;

(c) In the event the City, its officers, agents or
employees is made a party to any action or proceeding filed or prosecuted agains t Franchisee for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work or services of Franchisee hereunder, Franchisee agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys' fees.

Franchisee’s indemnification obligation hereunder, to the extent it refers to, or arises out of or in connection with, State Organics Laws, is not absolute. If the annual average mixed waste organic content recovery rate actually achieved is lower than that required by the SB 1383 regulations, such that Franchisee’s MRF/TS does no t meet the requirements of a high diversion organic waste processing facility despite Franchisee’s use of Reasonable Business Efforts to meet those requirements , then, subject to compliance with the Proposition 218

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hear and protest procedure, Franchisee shall be entitled to an adjustment in the approved Rates in the amount corresponding to (i) the additional cost, if any, of implementing a revised or new collection program, and (ii) the additional cost, if any, of transferring the unsegregated waste to a facility that meets the requirements of a high diversion organic waste processing facility. If City fails, for any reason other than a successful Proposition 218 protest, to authorize and approve an adjustment to the authorized Rates in an amount sufficient to fully compensate Franchisee for these costs, Franchisee shall, among other things, be relieved of its obligation to indemnify City for any claims or liabilities that may be asserted or claimed with regard to State Organics Laws.

Franchisee's obligations hereunder shall survive the termination or expiration of this Agreement.

7. Full Force and Effect . Except as expressly modified herein, the provisions of the Agreement shall remain in full force and effect. In the event of any conflict between the Agreement and this Amendment, this Amendment shall apply.

8. Due Execution. The person(s) executing this Amendment on behalf of a party hereto warrant(s) that (i) such party is duly organized and existing; (ii) such person(s) are duly authorized to execute and deliver this Amendment on behalf of said party; (iii) by so executing this Amendment, such party is formally bound to the provisions of this Amendment; and (iv) entering into this Amendment does not violate any provision of any other agreement to which said party is bound.

9. Counterparts. This Amendment may be executed in counterparts, each of which shall be considered an original.

[Signatures On Next Page]

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IN WITNESS WHEREOF, the Parties hereto do hereby set their hands and seals as of the day and the year first written above.

CITY OF HESPERIA
B
y: ______________________
Brigit Bennington, Mayor
A
TTEST:
__________________________
M
elinda Sayre, City Clerk
AP
PROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
__________________________
Pam K. Lee, City Attorney

FRANCHISEE
Bestway Disposal, Inc., dba Advance Disposal
____________________________
B
y: Sheila Bath, President