Tuesday, March 21, 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
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.
Brigit 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
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March 21, 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
9700 7th Avenue, Council Chambers, Hesperia, CA 92345
As a courtesy, please silence your cell phones and other electronic devices while the meeting is in session. Thank you.
Prior to action of the Council, any member of the audience will have the opportunity to address the legislative body on any item listed on the agenda, including those on the Consent Calendar.
Individuals wishing to speak during General Public Comments or on a particular numbered item must submit a speaker slip to the City Clerk with the agenda item noted. Speaker slips should be turned in prior to the public comment portion of the agenda or before an agenda item is discussed. Comments will be limited to three minutes for General Public Comments, Consent Calendar items and New Business items. Comments are limited to five minutes for Public Hearing items.
In compliance with the Brown Act, the City Council may not discuss or take action on non-agenda items or engage in question and answer sessions with the public. The City Council may ask brief questions for clarification; provide a reference to staff or other resources for factual information and direct staff to add an item to a subsequent meeting.
CLOSED SESSION - 5:30 PM
Roll Call
Mayor Brigit Bennington
Mayor Pro Tem Larry Bird
Council Member Allison Lee
Council Member Cameron Gregg
Council Member Rebekah Swanson
Conference with Legal Counsel – Existing Litigation
Government Code Section 54956.9(d)1
1. Assistant Secretary for FHEO v. City of Hesperia, California, et al.; Case Number 09-16-4717-8
CALL TO ORDER - 6:30 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call
Mayor Brigit Bennington
Mayor Pro Tem Larry Bird
Council Member Allison Lee
March 21, 2023City Council Meeting Agenda
Council Member Cameron Gregg
Council Member Rebekah Swanson
D. Agenda Revisions and Announcements by City Clerk
E. Closed Session Reports by City Attorney
ANNOUNCEMENTS/PRESENTATIONS
1. Presentation of Certificates of Recognition to the Oak Hills High School Mock Trial team for being named San Bernardino County Champions and semifinalists.
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 Special Meeting held Tuesday, March 7, 2023.
Recommended Action:
It
is recommended that the City Council approve the Draft Minutes from the Special Meeting held Tuesday, March 7, 2023.
Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2023-3-7Attachments:
2. Warrant Run Report (City - Successor Agency - Housing Authority - Community Development Commission - Water)
Recommended Action:
It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.
Staff Person: Director of Administrative Services Casey Brooksher SR Warrant Run 3-21-2023
Attachment 1 - Warrant Run
Attachments:
March 21, 2023City Council Meeting Agenda
3. Treasurer’s Cash Report for the unaudited period ended January 31, 2023 Recommended Action:
It
is recommended that the Council/Board accept the Treasurer’s Cash Report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.
Staff Person: Director of Administrative Services Casey Brooksher SR Treasurer's Report 3-21-2023
Attachment 1- Treasurer's Report
Attachments:
4. Resolution Approving Institution of Proceedings to Issue 2023 Refunding Lease
Revenue Bonds to Refinance the Outstanding Hesperia Joint Public Financing Authority 2013 Lease Revenue Bonds (Refinancing of the 2005 Civic Plaza Financing)
Recommended Action:
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2023-18 - RESOLUTION OF THE CITY OF HESPERIA
APPROVING INSTITUTION OF PROCEEDINGS TO REFINANCE
OUTSTANDING LEASE REVENUE BONDS OF THE HESPERIA JOINT
PUBLIC FINANCE AUTHORITY, AND ENGAGING PROFESSIONAL
SERVICES RELATING THERETO
Staff Person: Director of Administrative Services Casey Brooksher SR 2013 Revenue Bonds 3-21-2023
Resolution 2023-18
Attachment 2 - Refunding Analysis
Attachments:
5. Amend Professional Services Agreement for Bidding and Construction Support Services for the Ranchero Road Improvements Project (C.O. No. 7094) Recommended Action:
It
is recommended that the City Council and Board of Directors of the Hesperia Water District 1) amend Professional Services Agreement (PSA) 2021-22-040 with Parsons Transportation Group, Inc. for Bidding and Construction Support Services for the Ranchero Road Improvements Project, [Construction Order (C.O.) No. 7094], in the amount of $63,880; and authorize a 10% contingency in the amount of $6,388 to be released as may be necessary for the completion of the project, totaling $70,268, with an overall not-to-exceed total of $271,758; and 2) amend the PSA description to include C.O. Nos. 7131, 7146, and 7154; and 3) extend the PSA expiration date to June 30, 2025.
Staff Person: Assistant City Manager Rachel Molina
SR Parsons Transportation Group 3-21-2023
Attachment 1 - Cost Proposal
Attachments:
March 21, 2023City Council Meeting Agenda
PUBLIC HEARING
Individuals wishing to comment on public hearing items must submit a speaker slip to the City Clerk with the numbered agenda item noted. Speaker slips should be turned in prior to an agenda item being taken up.
Comments will be limited to five minutes for Public Hearing items.
WAIVE READING OF ORDINANCES
Approve the reading by title of all ordinances and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.
6. Consideration of an Urgency Ordinance Adopting an Interim Urgency Ordinance
Pursuant to California Government Code Section 65858 Extending a Moratorium on the Establishment or Expansion of Car Washes for a Period of Ten (10) Months and Fifteen (15) Days
Recommended Action:
It is recommended that the City Council adopt Urgency Ordinance 2023-04 pursuant to California Government Code Section 65858, extending a moratorium for a period of ten (10) months and fifteen (15) days a moratorium on the establishment or expansion of car washes.
Staff Person: Senior Planner Ryan Leonard
SR Urgency Ordinance Carwash Moratorium 3-21-2023
Attachment 1- Carwash Locations
Urgency Ordinance 2023-04
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 21, 2023City Council Meeting Agenda
I, Melinda Sayre, City Clerk of the City of Hesperia, California do hereby certify that I caused to be posted the foregoing agenda on Wednesday, March 15, 2023 at 5:30 p.m. pursuant to California Government Code §54954.2.
_____________________________
Melinda Sayre,
City Clerk
Documents produced by the City and distributed less than 72 hours prior to the meeting regarding items on the agenda will be made available in the City Clerk's Office during normal business hours.
THIS PAGE LEFT INTENTIONALLY BLANK
City of Hesperia
City of Hesperia
Meeting Minutes - Draft
City Council
Tuesday, March 7, 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
FIRE PROTECTION DISTRICT - SPECIAL MEETING
CLOSED SESSION - 5:30 PM
Roll Call
Present: 5 - Mayor Pro Tem Bird, Council Member Swanson, Council Member Gregg, Mayor Ben
nington and Council Member Lee
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 Negotia tion:
Price and Ter
ms
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: Rache
l 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 Pro Tem Bird, Council Member Swanson, Council Member Gregg, Mayor Ben
nington and Council Member Lee
D. A genda Revisions and Announcements by City Clerk
There was a gre
en sheet revision to the map attachment on item #6.
E. Closed Session Reports by City Attorney
City Council Chambers
9700 Seventh Ave.
Hesperia CA, 92345
City of Hesperia
No reportable action.
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Bob Nelson commented on speaking limits.
Daniel Krist commented on community issues.
Resa Barillas, representative for Assemblyman Juan Carillo’s office introduced herself to Council.
Tom Steeno commented on a project.
Council Member Swanson left the meeting at this time.
JOINT CONSENT CALENDAR
Items 3, 4, 5, and 7 were pulled from the Joint Consent Calendar and considered individually.
A motion was made by Gregg, seconded by Bird, that Joint Consent Calendar items number 1, 2, 6, and 8 be approved. T
he motion carried by the following vote:
Aye: 4 - Bird, Gregg, Bennington and Lee
Nay: 0
Absent: 1 - Swanson
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, 202
3. Sponsors: Assistant City Clerk Erin Baum
2. Warrant Run Report (City - Successor Agency - Housing Authority - Community Development Comm
ission - Water)
Recommended Action:
It is recommended that the Council/Board ratify the warrant run and payroll report for the City, Succes sor Agency to the Hesperia Co
mmunity Redevelopment Agency, Hesperia Housing Authority, Comm unity Developm
ent Commission, and Water District.
Sponsors: Director of Administrative Services Casey Brooksher
3. 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 Financ
ial Services, in the not-to-exceed amount of $387,652, for a five (5) year golf cart lease perta
ining to the operations of the Hesperia Golf Course & Country Club (Golf Course).
Sponsors: Director of Administrative Services Casey Brooksher Al Vogler commented on this item.
City of Hesperia
A motion was made by Gregg, seconded by Bennington, that item number 3 be approved. The motion carried by the following vote:
Aye: 4 - Bird, Gregg, Bennington and Lee
Nay: 0
Absent: 1 - Swanson
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 parce
ls 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)
Sponsors: Deputy Development Services Director Dani Fox A substitute motion was made by Gregg, seconded by Bird, that item number 4 be continued. The motion failed by the following vote:
Aye: 2 - Bird and Gregg
Nay: 2 - Bennington and Lee
Absent: 1 - Swanson
A motion was made by Gregg, seconded by Bird, that item number 4 be approved. The motion failed by
the following vote:
Aye: 2 - Bird and Gregg
Nay: 2 - Bennington and Lee
Absent: 1 - Swanson
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 parce
ls from 2.62 gross acreswithin 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)
Sponsors: Deputy Development Services Director Dani Fox Mike Martinez commented on this item.
A motion was made by Bird, seconded by Gregg, that item number 5 be denied. The motion carried by
the following vote:
Aye: 4 - Bird, Gregg, Bennington and Lee
City of Hesperia
Nay: 0
Absent: 1 - Swanson
6. 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)
Sponsors: Deputy Development Services Director Dani Fox
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 (T
axpayer Protection and Government Accountability Act).
Sponsors: Assistant City Manager Rachel Molina
Graeme Carr commented on this item.
A motion was made by Bird, seconded by Gregg, that item number 7 be approved. The motion carried
by the following vote:
Aye: 4 - Bird, Gregg, Bennington and Lee
Nay: 0
Absent: 1 - Swanson
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 Emergenc
y Services’ issuance of a local emergency declaration.
Sponsors: City Manager Nils Bentsen
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 fol
lowing resolutions, which amend the respective FY 2022-23 Budgets for the City of Hesperia and the Hesperia Water District be approved:
City of Hesperia
1) City of Hesperia Resolution No. 2023-08
2) Hesperia Water District HWD No. 2023-02
Sponsors: Director of Administrative Services Casey Brooksher A motion was made by Mayor Pro Tem Bird, seconded by Gregg, that this item be approved. The motion carried by the following vote:
Aye: 4 - Bird, Gregg, Bennington and Lee
Nay: 0
Absent: 1 - Swanson
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 specia l event permits, temporary signage, political signage and to give direction to staff.
Sponsors: Senior Planner Ryan Leonard
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 b
y 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.
Sponsors: Management Analyst Lesa Byars
A motion was made by Mayor Pro Tem Bird, seconded by Lee, that this item be approved. The motion carried by the following vote:
Aye: 4 - Bird, Gregg, Bennington and Lee
Nay: 0
Absent: 1 - Swanson
COUNCIL COMMITTEE REPORTS AND COMMENTS
Council Member Gregg did not have any meetings to report from, he requested that a review of the golf course status be brought back for consideration by Council in six months and offered his support for bringing the City’s zoning ordinance before Council for review.
Council Member Lee attended a Read Across America event.
Mayor Pro Tem Bird attended Read Across America events, and mentioned future attendance at VVWRA, and VVTA later this month.
Mayor Bennington attended a Ribbon Cutting at Don Reyes cafe, and the MDAQMD where they discussed cleaning up regulations and implications of upcoming AB627 by 2030. She also attended the Cal Cities Women's Caucus meeting via zoom, the Victorville State of the City meeting and a Read Across America event. Mayor Bennington requested that an agenda item be brought forward reviewing zoning and lot splits in residential areas
City of Hesperia
and that those items be considered individually going forward and not be included in the Joint Consent Calendar.
CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
None.
ADJOURNMENT
The meeting was adjourned at 8:21 pm in honor of the passing of Sandy Bartholome and Mayor Bennington’s birthday.
_____________________________
Erin Baum,
Assistant City Clerk
City of Hesperia
STAFF REPORT
DATE: March 21, 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 f or th e period February 4 , 202 3 through February 17, 2023.
ATTACHMENT(S)
1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $1,819,508.63 $285,014.63 $0.00 $2,104,523.26 Successor Agency 1,962,295.50 0.00 0.00 1,962,295.50
Housing Authority 0.00 182.20 0.00 182.20
Community Development Commission 0.00 0.00 0.00 0.00
Water 157,975.41 117,315.87 0.00 275,291.28
Totals $3,939,779.54 $402,512.70 $0.00 $4,342,292.24
YEAR-TO PRIOR FY YTD
W/E W/E WARRANT DATE DATE
FUND # FUND NAME 2/10/2023 2/17/2023 TOTALS Wires TOTALS * TOTALS Accounts Payable
100 GENERAL 116,349.23 $ 73,799.36 $ 190,148.59 $ - $ 18,944,466.31$ 17,422,084.20$ 200 HESPERIA FIRE DISTRICT -$ -$ -$ -$ -$ -$
204 MEASURE I - RENEWAL 154.00$ -$ 154.00$ - $ 239,976.74$ 162,549.67$ 207 LOCAL TRANSPORT-SB 325 -$ 26,400.00$ 26,400.00$ - $ 54,239.18$ 25,266.36$ 209 GAS TAX-RMRA -$ -$ -$ -$ -$ 68,083.24$
210 HFPD (PERS) -$ -$ -$ -$ 1,093,204.87$ 1,007,746.00$ 251 CDBG 50,690.00$ -$ 50,690.00$ - $ 321,147.63$ 512,801.80$ 254 AB2766 - TRANSIT -$ -$ -$ -$ -$ -$
256 ENVIRONMENTAL PROGRAMS GRANT 1.50$ 299.00$ 300.50$ - $ 22,818.81$ 26,601.35$ 257 NEIGHBORHOOD STABILIZATION PROG -$ -$ -$ -$ -$ -$ 258 CDBG-CV CARES ACT -$ -$ -$ -$ -$ -$
260 DISASTER PREPARED GRANT -$ -$ -$ -$ -$ -$
262 SB 1383 LOCAL ASSISTANCE GRANT -$ -$ -$ -$ 31,598.69$ -$ 263 STREETS MAINTENANCE 28,333.72$ 31,647.11$ 59,980.83$ - $ 1,278,490.60$ 1,112,626.40$ 300 DEV. IMPACT FEES - STREET 1,395.00$ -$ 1,395.00$ - $ 31,656.18$ 35,488.33$ 301 DEV. IMPACT FEES - STORM DRAIN -$ -$ -$ -$ 17,460.50$ 39,869.50$ 302 DEV. IMPACT FEES - FIRE -$ -$ -$ -$ -$ -$
303 DEV. IMPACT FEES - POLICE -$ -$ -$ -$ -$ 23,330.00$ 304 DEV. IMPACT FEES - PUBLIC WKS. -$ -$ -$ -$ -$ -$ 306 DEV. IMPACT FEES - 2018-STREETS 72,433.74$ 69,701.71$ 142,135.45$ - $ 2,773,781.41$ 2,070,283.00$ 312 DIF 2018-POLICE FACILITIES -$ -$ -$ -$ 7,969.11$ 6,888.17$ 313 DIF A-04 DRAINAGE -$ -$ -$ -$ 6,270.00$ 963,699.00$ 396 DEVELOPMENT IMPACT -$ -$ -$ -$ -$ -$
399 FEMA-1203-DR (DISASTER) -$ -$ -$ -$ -$ -$
400 2004 STREETS -$ -$ -$ -$ -$ -$
401 CITY DEBT SERVICES -$ -$ -$ -$ -$ -$
402 WATER RIGHTS ACQUISITION -$ -$ -$ -$ 1,094,323.17$ 1,076,377.70$ 403 2013 REFUNDING LEASE REV BONDS -$ -$ -$ -$ 657,175.62$ 635,512.25$ 501 CFD 91-3 BELGATE -$ -$ -$ -$ -$ -$
504 CITY WIDE STREETS - CIP 351,145.26$ 161,124.21$ 512,269.47$ - $ 7,286,536.52$ 1,131,583.53$ 509 CITY FACILITIES CIP -$ -$ -$ -$ -$ -$
800 EMPLOYEE BENEFITS 387,172.31$ 62,931.45$ 450,103.76$ - $ 5,610,699.52$ 4,916,336.64$ 801 TRUST/AGENCY 40,061.90$ (6.89)$ 40,055.01$ - $ 1,490,327.80$ 2,428,542.00$ 802 AD 91-1 AGENCY -$ -$ -$ - $ -$ -$
804 TRUST-INTEREST BEARING 23,332.50$ -$ 23,332.50$ - $ 152,440.00$ 54,075.50$ 807 CFD 2005-1 -$ 322,543.52$ 322,543.52$ - $ 1,295,901.27$ 933,223.43$ 808 HFPD (TRANSITION) -$ -$ -$ -$ 317,384.59$ 369,875.18$ 815 PLAN REVIEW TRUST - FRONTIER -$ -$ -$ -$ 6,584.08$ -$ CITY 1,071,069.16$ 748,439.47$ 1,819,508.63$ - $ 42,734,452.60$ 35,022,843.25$ 163 REDEVELOP OBLIG RETIREMENT-2018 -$ 1,962,295.50$ 1,962,295.50$ - $ 9,708,465.48$ 9,999,319.34$ SUCCESSOR AGENCY -$ 1,962,295.50$ 1,962,295.50$ - $ 9,708,465.48$ 9,999,319.34$ 370 HOUSING AUTHORITY -$ -$ -$ -$ 33,936.56$ 18,824.93$ HOUSING AUTHORITY -$ -$ -$ -
$ 33,936.56$ 18,824.93$
170 COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ - $ -$ -$ 700 WATER OPERATING 46,689.61$ 72,153.50$ 118,843.11$ - $ 5,375,069.11$ 6,105,064.56$ 701 WATER CAPITAL -$ -$ -$ -$ 31,009.00$ 88,561.90$ 710 SEWER OPERATING 15,391.91$ 15,674.26$ 31,066.17$ - $ 3,348,325.46$ 3,279,818.26$ 711 SEWER CAPITAL 7,421.50$ -$ 7,421.50$ - $ 238,910.57$ 152,263.87$ 713 SEWER CAPITAL REHAB AND REPLACE -$ -$ -$ -$ -$ -$ 720 RECLAIMED WATER OPERATIONS 126.51$ 518.12$ 644.63$ - $ 254,859.04$ 236,285.67$ WATER 69,629.53$ 88,345.88$ 157,975.41$ - $ 9,248,173.18$ 9,861,994.26$ ACCOUNTS PAYABLE TOTAL 1,140,698.69$ 2,799,080.85$ 3,939,779.54$ - $ 61,725,027.82$ 54,902,981.78$ REG. PAYROLL
City -$ 285,014.63$ 285,014.63$ - $ 4,683,639.13$ 3,746,370.39$ Housing Authority -$ 182.20$ 182.20$ - $ 3,085.42$ 745.24$ Water -$ 117,315.87$ 117,315.87$ - $ 1,916,693.56$ 1,647,311.14$ PAYROLL TOTAL -$ 402,512.70$ 402,512.70$ - $ 6,603,418.11$ 5,394,426.77$ City of Hesperia
WARRANT RUNS
02/04/2023-02/17/2023
*No payments were issued on July 1, 2023.
Attachment 1
City of Hesperia
STAFF REPORT
DATE: March 21, 2023
TO: Mayor and Council Members
City Council, Serving as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Commissioners, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services Anne Duke, Deputy Finance Director
Jacob Weatherbie, Accountant
SUBJECT: Treasurer’s Cash Report for the unaudited period ended January 31, 2023
RECOMMENDED ACTION
It is recommended that the Council/Board accept the Treasurer’s Cash Report for the City, Successor Agency to the Hesperia Community Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.
BACKGROUND
This report is presented to the City Council pursuant to Government Code Section 53646 (b) setting forth the City’s investment portfolio.
ISSUES/ANALYSIS
The Treasurer’s Cash Reports are presented on the following pages for each agency.
FISCAL IMPACT
These reports reflect unaudited cash balances as of January 31, 2023.
ALTERNATIVE(S)
Provide alternative direction to staff.
ATTACHMENT(S)
1. City of Hesperia Investment Report
2. Successor Agency to the Hesperia Community Redevelopment Agency Investment Report
3. Hesperia Housing Authority Investment Report
4. Community Development Commission Investment Report
5. Hesperia Water District Investment Report
Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
March 21, 2023
Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
March 21, 2023
Institution/
Type of Investment Fiscal Agent
Investments under the direction of the City:
Interest
Rate
City of Hesperia
Investment Report
Unaudited
Janua rv 31, 2023 . '
Date of Date of Par Value
Purchase Maturity at Maturity
31-Jan-23 Demand $ 90,587,830.53
I
Local Agency Investment Funds State of Calif. 2.425%
Local Bank Checking Accounts _ U.S. Bank n/a _, __ , __ . 31-Jan-23 Demand 5.180.780.60 Book Market
Value Value
90,587,830.53 90,587,830.53
5,180,780.60 5,180,780.60
Total Unaudited Investments under the direction of the City $ 95,768,611.13 $ 95,768,611.13 $ 95,768,611.13 Investments under the direction of fiscal agents: -- Demand T - - 891.05 2012 Lease Revenue Bonds US Bank 0,324% 31-Jan-23 891.05 891.05 2012 Lease Revenue Bonds US Bank 0,325% 31-Jan-23 Demand 6,791.19 6,791.19 6,791.19 2012 Lease Revenue Bonds ~- US Bank 0,325% 31-Jan-23 Demand 1,467,369.53 1,467,369.53 1,467,369.53 - - ---2012 Lease Revenue Bonds ' US Bank 0.000% 31-Jan-23 Demand 0.31 0.31 0.31 2013 Refunding Lease Revenue Bonds US Bank 0,324% 31-Jan-23 Demand 863.21 863.21 863.21 2013 Refundin_g Lease Revenue Bonds US Bank 0.324% 31-Jan-23 Demand 5,473.10 5,473,10 5,47~ 2013 Refunding Lease Revenue Bonds US Bank 0.325% 31-Jan-23 Demand 1,161,815,31 1,161,815.31 1,161,815.31 2013 Refunding Lease Revenue Bonds US Bank 0.000% 31-Jan-23 Demand 0,31 0,31 0.31 ~
2014 CFO 2005-1 Refunding US Bank 0.325% 31-Jan-23 Demand 4,247.18 4,247.18 4,247.18 2014 CFO 2005-1 Refunding US Bank I 0.324% 31-Jan-23 Demand 703.05 703.05 703,05 -2014 CFO 2005-1 Refunding US Bank 0.325% 31-Jan-23 Demand 1,445,657.25 1,445,657.25 1,445,657.25 2014 CFO 2005-1 Refunding US Bank 0.325% 31-Jan-23 Demand 24,253,08 24,253,08 24,253,08 -Deposits - Workers' Comp PERMA n/a 31-Jan-23 n/a 542,901.06 542,901.06 542,901.06 Sully Miller Retention - Ranchero US Bank 0.000% 31-Jan-23 n/a 1.08 1.08 1.08 City of Hesperia Settlement Escrow Account US Bank 0.000% 31-Jan-23 n/a 300,000.00 300,000.00 300,000.00 Total Unaudited Investments under the direction of fiscal agents $ 4,960,966.71 $ 4,960,966.71 $ 4,960,966.71 Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.
I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(bJ(2J and (3J, respectively. • Note: 2005 Certificates of Participation began in May 2005 for the finacing of the Civic Plaza.
Investment - City
ATTACHMENT 1
Account
Descrip_tion
2012 - Water Rights Revenue Fund
2012 - Water Rights Interest Fund
2012 - Water Rights Reserve Fund
2012-Water Rights Surplus Revenue Fund
2005 Civic Plaza - Revenue Fund
2005 Civic Plaza - Interest Fund
2005 Civic Plaza - Reserve Fund
2005 Civic Plaza - Surplus Rev Fund
2014 CFO 05-1 - Special Tax Fund
2014 CFO 05-1 - Bond Fund
2014 CFO 05-1 - Reserve Fund
2014 CFO 05-1 Administrative Expense Bonds
GL 1352
-
-Ranchero Road - Escrow Account
Settlement Escrow Account
Issuer/
Type of Investment Institution
Investments under the direction of the City:
Local Agency Investment Funds State of Calif.
Local Bank Checking Accounts U.S. Bank
Successor Agency to the Redevelopment Agency
Investment Report
Unaudited
Janua rv 31, 2023 . ,
Interest Date of Date of Par Value Book
Rate Purchase Maturity at Maturit~ Value
2.425% 31-Jan-23 Demand $ 3,109,214.00 $ 3,109,214.00
n/a 31-Jan-23 Demand 177,818.10 177,818.10
Total Unaudited Investments under the direction of the City $ 3,287,032.10 $ 3,287,032.10 Investments under the direction of fiscal agents:
1 Demand
- -2018 Refunding Bonds US Bank 0.000% 31-Jan-23 0.03 0.03 2018 Refunding Bonds US Bank L.2,338% j 31-Jan-23 I Demand 4,066.98 4,066.98 2018 Refunding Bonds US Bank 0.000% 31-Jan-23 . Demand 1.00 1.00 $
Total Unaudited Investments under the direction of fiscal agents $ 4,068.01 $ 4,068.01 $ Please Note: All market value data is provided courtesy of the City's fiscal agent US Bank. The 2018 Refunding Bonds are supported by a $9,799,443.76 bond insurance policy.
I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b}(2J and (3}, respectively. • Note: The 2005 and 2007 Series Bonds were refinanced to 2018 Series Bonds in November 2018.
Investment - SA
ATTACHMENT 2
Market Account
Value Description
3,109,214.00
177,818.10
3,287,032.10
0.03 2018A & 2018B - Debt Service Account
4,066.98 2018A & 2018B - Interest Account -1.00 2018A & 20188 - Reserve Account 4,068.01
, ...,v, ,.v. , .ccountant
T~ of Investment
Issuer/
Institution
Hesperia Housing Authority
Investment Report
Unaudited
January 31, 2023
Interest
Rate
Date of Date of
Purchase Maturity
Par Value
at Maturity
Book
Value
ATTACHMENT 3
Market
Value
Investments under the direction of the City:
[
Local Agency Investment Funds ----S-ta-te~o~f-C-ali_fo_rn-ia--~-2-.4-25-%-~3-1--J-an--2-3~ Demand $ 5,264,353.58 5,264,353.58 5,264,353.58 ~ Local Bank Checking Accounts I U.S. Bank n/a . _ 31-Jan-23 Demand 301,072.02 301,072.02 301,072.02 Total Unaudited Investments under the direction of the City $ 5,565,425.60 $ 5,565,425.60 $ 5,565,425.60 I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively.
Investment - HHA
, '"'"'' ""'' , .ccountant
Hesperia Community Development Comission
Investment Report
Unaudited
T~ e of Investment
Issuer/
Institution
Investments under the direction of the City:
January 31, 2023
Interest
Rate
Date of Date of
Purchase Maturity
l
Local Agency Investment Funds State of California 2.425% 31-Jan-23 ·R Demand Local Bank Checking Accounts U.S. Bank n/a 31-Jan-23 Demand - Total Unaudited Investments under the direction of the City · $
$
Par Value
at Maturity
(568,178.01)
32,494.49
(600,672.50) $
I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively.
ATTACHMENT 4
Book
Value
(568,178.01)
32,494.49
(600,672.50) $
Market
Value
(568,178.01)
32,494.49
(600,672.50)
VirafnTa Vil/asenor,-Senior Accountant
Investment - CDC
TYQe of Investment
Investments under the direction of the City:
Local Agency Investment Funds
Local Bank Checking Accounts
Issuer/
Institution
State of California
U.S. Bank
Hesperia Water District
Investment Report
Unaudited
January 31, 2023
Interest Date of Date of
Rate Purchase Maturity
2.425% 31-Jan-23 Demand
n/a 31-Jan-23 Demand
Par Value
at Maturity
$ 34,674,709.08
1,983,070.56
Book
Value
34,674,709.08 t
1,983,070.56
ATTACHMENT 5
Market
Value
34,674,709.08
1,983,070.56
Account
DescriQtion
Total Unaudited Investments under the direction of the City $ 36,657,779.64 $ 36,657,779.64 $ 36,657,779.64 Investments under the direction of fiscal agents:
[ Deposits - Workers' Comp I PERMA n/a I 31-oct-22 I n/a I 877,475.29 ; Total Unaudited Investments under the direction of fiscal agents $ 877,475.29 $ Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.
I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively. sn,475_29 I 877,475.29 IGL 1352
877,475.29 $ 877,475.29
/~,~ ---u,. :-· ...,. · ,... ::;emor Accountan
Investment - ENT
City of Hesperia
STAFF REPORT
DATE: March 21, 2023
TO: Mayor and City Council Members
FROM: Nils Bentsen, City Manager
BY: Casey Brooksher, Director of Administrative Services SUBJECT: Resolution Approving Institution of Proceedings to Issue 2023 Refunding Lease Revenue Bonds to Refinance the Outstanding Hesperia Joint Public Financing Authority 2013 Lease Revenue Bonds ( Refinancing of the 2005 Civic Plaza Financing)
RECOMMENDED ACTION
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2023-18 – RESOLUTION OF THE CITY OF HESPERIA APPROVING
INSTITUTION OF PROCEEDINGS TO REFINANCE OUTSTANDING LEASE REVENUE
BONDS OF THE HESPERIA JOINT PUBLIC FINANCE AUTHORITY, AND ENGAGING
PROFESSIONAL SERVICES RELATING THERETO
BACKGROUND
In 2013, the Hesperia Joint Public Finance Authority (Authority) issued refunding bonds (“2013 Bonds”) to refinance the City of Hesperia’s (City) outstanding 2005 Variable Rate Demand Certificates of Participation (Civic Plaza Financing) (“2005 Bonds ”), which had financed the acquisition of the Civic Plaza . Based on current market conditions, there is an opportunity to refinance the outstanding 2013 Bonds for debt service savings (“Refunding Bonds”).
Issue Original Par
Hesperia Joint Public Finance Authority,
2013 Lease Revenue Bonds (Refinancing of the 2005 Civic Plaza Financing) * $ 12,445,000
* Callable any date after 10/1/2023 at par. Current outstanding principal balance is $9,610,000 .
The 2013 Bonds are payable from lease payments made by the City to the Authority from the City’s General Fund for use and occupancy of City Hall.
The City’s municipal advisor, in consultation with the proposed underwriter, estimates that, based on current market conditions:
(i) the projected debt service gross savings from issuing Refunding Bonds to refinance the outstanding 2013 Bonds is $1,804,400, or an average annual reduction in debt service payments of $150,366 over the next twelve (12) years.
Staff Report to the Mayor and City Council authorizing staff to refinance the Outstanding 2013 Lease Revenue Bonds (Refinancing of the 2005 Civic Plaza Financing) March 21, 2023
(ii) the projected true interest cost is estimated to be 3.89%, and (iii) the principal amount of outstanding bonds is projected to be reduced from $9,610,000 to $7,715,000.
The final bond year date of the Refunding Bonds would remain the same as the 2013 Bonds:
October 1, 20351.
The City’s Debt Policy requires a minimum net present value savings (including transaction costs) equal to at least 3% of the outstanding principal amount of the bonds to be refunded . Under current market conditions and using very conservative assumptions , the proposed refunding would result in projected net present value savings (including transaction costs) of 3.07% of the outstanding principal amount of the 2013 Bonds. In addition to generating debt service savings, the proposed refunding of the 2013 Bonds would also:
Potentially f rees up an encumbered City asset, which may facilitate future financings.
Uses the existing debt service reserve fund to buy down the debt now instead of waiting to apply it as a credit against the debt service owed in the final year of the 2013 Bonds.
Reduces the principal amount of debt outstanding by $1,895,000.
Below is a table summarizing the details of the Refunding Bonds:
*Preliminary subject to change. Based on interest rates as of March 7, 2023. 1 For rating agency purposes, the final maturity date will be changed from October 1, 2035 to November 1, 2035.
Refunding Bonds
Refunding Type Current
Tax Status Tax-Exempt
Par Amount of 2023 Bonds 7,715,000
True Interest Cost 3.89%
Call Date 11/1/2033 @ 100%
Underlying Rating A-
Bond Insurance Rating AA
Amount of Refunded Bonds 9,610,000
Call Date of 2013 Bonds 10/01/2023 @ 100%
Final Maturity 11/1/2035
Savings Statistics
Average Annual Savings 150,366
Total Gross Savings 1,804,400
Net Present Value Savings 295,397
% Savings of Refunded Bonds 3.07%
Refunding Statistics*
Staff Report to the Mayor and City Council authorizing staff to refinance the Outstanding 2013 Lease Revenue Bonds (Refinancing of the 2005 Civic Plaza Financing) March 21, 2023
The adoption of the Resolution authorizes staff to initiate the proceedings for a refunding of the 2013 Bonds; approves professional services related to the refunding; and directs City officials to execute related documents as needed. The City’s bond issuance team has been in place for many years and staff recommends that these firms continue providing thos e services for this refunding issue. The Resolution authorizes the following firms to participate in the transaction and the City Manager or the Director of Administrative Services to execute agreements as necessary:
Bond/Disclosure Counsel Services - Jones Hall, A Professional Law Corporation Municipal Advisor – Fieldman, Rolapp & Associates, Inc. Underwriter – Stifel, Nicolaus & Company
The Resolution also authorizes the City Manager or the Director of Administrative Services to select and execute an agreement with a state or national bank to act as trustee for the Refunding Bonds.
The next steps will be to prepare the required legal and financing documents and secure an underlying credit rating from Standard & Poor’s. The final step will be for the City Council/Authority to consider resolutions authorizing the issuance of the Refunding Bonds and approving related documents, including the Preliminary Official Statement (bond offering document). Based on the current schedule, staff anticipates returning to the City Council/Authority for authorization to issue the Refunding Bonds at a June City Council meeting.
FISCAL IMPACT
The issuance of the Refunding Bonds will result in an average annual reduction in debt service payments of approximately $150,366. These are estimated savings based on market conditions as of March 7, 2023, and are subject to change. Costs will be paid from the proceeds of the Refunding Bonds.
ALTERNATIVE(S)
1. Provide alternative direction to staff.
ATTACHMENT(S)
1. Resolution No. 2023-18
2. Refunding Analysis
RESOLUTION NO. 2023-18
RESOLUTION OF THE CITY OF HESPERIA APPROVING
INSTITUTION OF PROCEEDINGS TO REFINANCE
OUTSTANDING LEASE REVENUE BONDS OF THE HESPERIA
JOINT PUBLIC FINANCE AUTHORITY , AND ENGAGING
PROFESSIONAL SERVICES RELATING THERETO
WHEREAS, the City of Hesperia (the “City”) and the Hesperia Water District (the “Water District” ) entered into a Joint Exercise of Powers Agreement, dated as of October 2, 2012, establishing the Hesperia Joint Public Finance Authority (the “Finance Authority”) for the purpose, among others, of providing assistance to the City with its financing programs; and
WHEREAS, in order to finance acquisition and construction of a new Civic Plaza and related on -site improvements (the “2005 Project”), the City previo usly caused execution and delivery of its 2005 Variable Rate Demand Certificates of Participation (Civic Plaza Financing) (the “2005 Certificates”) pursuant to a Trust Agreement, dated as of May 1, 2005 (the “2005 Trust Agreement”), among the City, the Hesperia Public Financing Authority (the “ Financing Authority ”) and a corporate trustee; the 2005 Certificates represented interests in lease payments made by the City to the Financing Authority pursuant to a Lease Agreement, dated as of May 1, 2005; and WHEREAS, for the purpose of refinancing the 2005 Certificates, the City subsequently caused the Finance Authority to issue its 2013 Lease Revenue Bonds (Refinancing of 2005 Civic Plaza Financing ) in the aggregate principal amount of $12,445,000,000 (the “2013 Bonds”), under an Indenture dated as of October 1, 2013; the 2013 Bonds are payable from lease payments made by the City under a Property Lease dated as of October 1, 2013 (the “2013 Lease Agreement”), between the Finance Authority as lessor and the City as lessee; and
WHEREAS, the 2013 Bonds maturing on or after October 1, 2024 are subject to optional redemption, without premium, prior to maturity on any date on or after October 1, 2023, at the option of the Finance Authority; and
WHEREAS, the Finance Authority is authorized to issue its refunding lease revenue bonds (the “Refunding Bonds”) for the purpose of refinancing the 2013 Bonds and thereby providing debt service savings to the Finance Authority and the City; and WHEREAS, the City Council has considered a financing plan for such purposes and wishes at this time to authorize and direct City staff to implement such financing plan and to engage the necessary professional services therefor; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hesperia, as follows:
Section 1. The City Council hereby authorizes and directs the City Manager and the Director of Administrative Services to initiate proceedings for the issuance of Refunding Bonds by the Finance Authority under the applicable provisions of California law, for the purpose of refinancing the 2013 Bonds. Such officers and staff shall cause
Resolution No. 2023-18
the necessary documentation relating to the issuance and sale of the Refunding Bonds to be prepared and presented to the City Council and to the governing board of the Finance Authority for consideration at a future meeting of the City Council and the Finance Authority.
Section 2. In connection with the issuance and sale of the Refunding Bonds, the City Council hereby designates the following professional firms to participate in the transaction: (a) Fieldman, Rolapp & Associates as municipal advisor; (b) Jones Hall, A Professional Law Corporation, as bond counsel and disclosure counsel; and (c) Stifel, Nicolaus & Company, Incorporate d, as underwriter. The City Manager or the Administrative Services Director, each acting alone, is hereby authorized and directed to execute agreements for said services with Fieldman, Rolapp & Associates and Jones Hall, A Professional Law Corporation, in the respective forms on file with the City Clerk. The City Council will approve a bond purchase agreement among the City, the Finance Authority and the Underwriter in connection with approving the Refunding Bonds. The City Manager or the Administrative Services Director, each acting alone, is hereby authorized and directed to select a state or national bank to act as trustee for the Refunding Bonds and to execute an agreement with such bank.
Section 3. Effective Date. This Resolution shall take effec t immediately upon its passage and adoption.
* * * * * * * * * * * *
PASSED, APPROVED AND ADOPTED by the City Council of the City of Hesperia at a regular meeting held this _____ day of March, 2023.
AYES: Councilmember:
NOES: Councilmember:
ABSENT: Councilmember:
ABSTAIN: Councilmember
Brigit Bennington, Mayor
ATTEST:
Erin Baum, Assistant City Clerk
Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 1
SOURCES AND USES OF FUNDS
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Dated Date 07/06/2023
Delivery Date 07/06/2023
Sources:
Bond Proceeds:
Par Amount 7,715,000.00
Premium 704,741.75
8,419,741.75
Other Sources of Funds:
Lease Payment Fund 558,349.31
Prior Debt Service Reserve Fund 1,149,850.42
1,708,199.73
10,127,941.48
Uses:
Refunding Escrow Deposits:
Cash Deposit 0.93
SLGS Purchases 9,720,206.00
9,720,206.93
Delivery Date Expenses:
Cost of Issuance 260,000.00
Underwriter's Discount 77,150.00
Bond Insurance (0.65%) 69,608.34
406,758.34
Other Uses of Funds:
Contingency 976.21
10,127,941.48
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021 Attachment 2
Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 2
BOND SUMMARY STATISTICS
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Dated Date 07/06/2023
Delivery Date 07/06/2023
First Coupon 11/01/2023
Last Maturity 11/01/2035
Arbitrage Yield 3.694171%
True Interest Cost (TIC) 3.885265%
Net Interest Cost (NIC) 3.951909%
All-In TIC 4.391828%
Average Coupon 5.000000%
Average Life (years) 7.761
Duration of Issue (years) 6.465
Par Amount 7,715,000.00
Bond Proceeds 8,419,741.75
Total Interest 2,993,975.69
Net Interest 2,366,383.94
Total Debt Service 10,708,975.69
Maximum Annual Debt Service 997,500.00
Average Annual Debt Service 869,274.24
Average
Par Average Average Maturity PV of 1 bp
Bond Component Value Price Coupon Life Date change
Serial Bond 7,715,000.00 109.135 5.000% 7.761 04/09/2031 5,171.75 7,715,000.00 7.761 5,171.75
All-In Arbitrage
TIC TIC Yield
Par Value 7,715,000.00 7,715,000.00 7,715,000.00
+ Accrued Interest
+ Premium (Discount) 704,741.75 704,741.75 704,741.75
- Underwriter's Discount -77,150.00 -77,150.00
- Cost of Issuance Expense -260,000.00
- Other Amounts -69,608.34 -69,608.34 -69,608.34
Target Value 8,272,983.41 8,012,983.41 8,350,133.41
Target Date 07/06/2023 07/06/2023 07/06/2023
Yield 3.885265% 4.391828% 3.694171%
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021
Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 3
SUMMARY OF REFUNDING RESULTS
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Dated Date 07/06/2023
Delivery Date 07/06/2023
Arbitrage yield 3.694171%
Escrow yield 4.883619%
Value of Negative Arbitrage -26,762.16
Bond Par Amount 7,715,000.00
True Interest Cost 3.885265%
Net Interest Cost 3.951909%
All-In TIC 4.391828%
Average Coupon 5.000000%
Average Life 7.761
Par amount of refunded bonds 9,610,000.00
Average coupon of refunded bonds 4.816863%
Average life of refunded bonds 7.226
PV of prior debt to 07/06/2023 @ 3.694171% 10,376,709.44 Net PV Savings 295,397.36
Percentage savings of refunded bonds 3.073854%
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021
Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 4
SUMMARY OF BONDS REFUNDED
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Maturity Interest Par Call Call
Bond Date Rate Amount Date Price
Hesperia Joint Public Finance Authority 2013 Lease Revenue Bonds (Civic Plaza Financing), SERIES13, BOND:
10/01/2023 4.000% 460,000
10/01/2024 3.750% 500,000 10/01/2023 100.000
10/01/2025 4.000% 535,000 10/01/2023 100.000
10/01/2026 4.000% 575,000 10/01/2023 100.000
10/01/2027 4.250% 620,000 10/01/2023 100.000
10/01/2028 4.250% 665,000 10/01/2023 100.000
3,355,000
Hesperia Joint Public Finance Authority 2013 Lease Revenue Bonds (Civic Plaza Financing), SERIES13, TERM31:
10/01/2029 4.750% 715,000 10/01/2023 100.000
10/01/2030 4.750% 765,000 10/01/2023 100.000
10/01/2031 4.750% 825,000 10/01/2023 100.000
2,305,000
Hesperia Joint Public Finance Authority 2013 Lease Revenue Bonds (Civic Plaza Financing), SERIES13, TERM35:
10/01/2032 5.000% 885,000 10/01/2023 100.000
10/01/2033 5.000% 950,000 10/01/2023 100.000
10/01/2034 5.000% 1,020,000 10/01/2023 100.000
10/01/2035 5.000% 1,095,000 10/01/2023 100.000
3,950,000
9,610,000
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021
Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 5
BOND PRICING
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Maturity Yield to Call Call Premium
Bond Component Date Amount Rate Yield Price Maturity Date Price (-Discount) Serial Bond:
11/01/2024 390,000 5.000% 3.480% 101.938 7,558.20
11/01/2025 425,000 5.000% 3.630% 103.016 12,818.00
11/01/2026 465,000 5.000% 3.560% 104.465 20,762.25
11/01/2027 510,000 5.000% 3.500% 105.959 30,390.90
11/01/2028 555,000 5.000% 3.480% 107.318 40,614.90
11/01/2029 600,000 5.000% 3.440% 108.787 52,722.00
11/01/2030 650,000 5.000% 3.410% 110.217 66,410.50
11/01/2031 705,000 5.000% 3.430% 111.274 79,481.70
11/01/2032 760,000 5.000% 3.440% 112.343 93,806.80
11/01/2033 820,000 5.000% 3.520% 112.708 104,205.60
11/01/2034 885,000 5.000% 3.670% 111.334 C 3.761% 11/01/2033 100.000 100,305.90 11/01/2035 950,000 5.000% 3.810% 110.070 C 3.959% 11/01/2033 100.000 95,665.00 7,715,000 704,741.75
Dated Date 07/06/2023
Delivery Date 07/06/2023
First Coupon 11/01/2023
Par Amount 7,715,000.00
Premium 704,741.75
Production 8,419,741.75 109.134695%
Underwriter's Discount -77,150.00 -1.000000%
Purchase Price 8,342,591.75 108.134695%
Accrued Interest
Net Proceeds 8,342,591.75
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021
Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 6
BOND DEBT SERVICE
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Dated Date 07/06/2023
Delivery Date 07/06/2023
Period
Ending Principal Interest Debt Service
11/01/2023 123,225.69 123,225.69
11/01/2024 390,000 385,750.00 775,750.00
11/01/2025 425,000 366,250.00 791,250.00
11/01/2026 465,000 345,000.00 810,000.00
11/01/2027 510,000 321,750.00 831,750.00
11/01/2028 555,000 296,250.00 851,250.00
11/01/2029 600,000 268,500.00 868,500.00
11/01/2030 650,000 238,500.00 888,500.00
11/01/2031 705,000 206,000.00 911,000.00
11/01/2032 760,000 170,750.00 930,750.00
11/01/2033 820,000 132,750.00 952,750.00
11/01/2034 885,000 91,750.00 976,750.00
11/01/2035 950,000 47,500.00 997,500.00
7,715,000 2,993,975.69 10,708,975.69
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021
Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 7
SAVINGS
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Present Value
Prior Prior Prior Refunding to 07/06/2023
Date Debt Service Receipts Net Cash Flow Debt Service Savings @ 3.6941708% 11/01/2023 681,575.00 558,349.31 123,225.69 123,225.69 -4,432.81 11/01/2024 924,750.00 924,750.00 775,750.00 149,000.00 145,021.21 11/01/2025 941,000.00 941,000.00 791,250.00 149,750.00 140,549.17 11/01/2026 959,600.00 959,600.00 810,000.00 149,600.00 135,413.16 11/01/2027 981,600.00 981,600.00 831,750.00 149,850.00 130,818.26 11/01/2028 1,000,250.00 1,000,250.00 851,250.00 149,000.00 125,456.50 11/01/2029 1,021,987.50 1,021,987.50 868,500.00 153,487.50 124,556.31 11/01/2030 1,038,025.00 1,038,025.00 888,500.00 149,525.00 117,056.98 11/01/2031 1,061,687.50 1,061,687.50 911,000.00 150,687.50 113,733.35 11/01/2032 1,082,500.00 1,082,500.00 930,750.00 151,750.00 110,419.41 11/01/2033 1,103,250.00 1,103,250.00 952,750.00 150,500.00 105,596.90 11/01/2034 1,125,750.00 1,125,750.00 976,750.00 149,000.00 100,815.16 11/01/2035 1,149,750.00 1,149,750.00 997,500.00 152,250.00 99,267.98 13,071,725.00 558,349.31 12,513,375.69 10,708,975.69 1,804,400.00 1,444,271.57 Savings Summary
Dated Date 07/06/2023
Delivery Date 07/06/2023
PV of savings from cash flow 1,444,271.57
Less: Prior funds on hand -1,149,850.42
Plus: Refunding funds on hand 976.21
Net PV Savings 295,397.36
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021
Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 8
BOND SOLUTION
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Period Proposed Proposed Total Adj Revenue Unused Debt Service Ending Principal Debt Service Debt Service Constraints Revenues Coverage 11/01/2023 123,226 123,226 123,226 100.00%
11/01/2024 390,000 775,750 775,750 924,750 149,000 119.21% 11/01/2025 425,000 791,250 791,250 941,000 149,750 118.93% 11/01/2026 465,000 810,000 810,000 959,600 149,600 118.47% 11/01/2027 510,000 831,750 831,750 981,600 149,850 118.02% 11/01/2028 555,000 851,250 851,250 1,000,250 149,000 117.50% 11/01/2029 600,000 868,500 868,500 1,021,988 153,488 117.67% 11/01/2030 650,000 888,500 888,500 1,038,025 149,525 116.83% 11/01/2031 705,000 911,000 911,000 1,061,688 150,688 116.54% 11/01/2032 760,000 930,750 930,750 1,082,500 151,750 116.30% 11/01/2033 820,000 952,750 952,750 1,103,250 150,500 115.80% 11/01/2034 885,000 976,750 976,750 1,125,750 149,000 115.25% 11/01/2035 950,000 997,500 997,500 1,149,750 152,250 115.26% 7,715,000 10,708,976 10,708,976 12,513,376 1,804,400
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021
Prepared by Stifel, Nicolaus & Company, Inc. (KC) Page 9
UNDERWRITER EXCLUSION DISCLOSURE
Hesperia Joint Public Finance Authority
Refunding of 2013 Lease Revenue Bonds
Civic Plaza Financing
**************************************************************************************************** Good Faith Estimates
Based on Market Conditions as of March 7, 2023
**************************************************************************************************** Stifel, Nicolaus & Company, Incorporated ('Stifel') has been engaged or appointed to serve as an underwriter or placement agent with respect to a particular issuance of municipal securities to which the attached material relates and Stifel is providing all information and advice contained in the attached material in its capacity as underwriter or placement agent for that particular issuance. As outlined in the SEC's Municipal Advisor Rule, Stifel has not acted, and will not act, as your municipal advisor with respect to the issuance of the municipal securities that is the subject to the engagement.
Stifel is providing information and is declaring to the proposed municipal issuer and any obligated person that it has done so within the regulatory framework of MSRB Rule G-23 as an underwriter (by definition also including the role of placement agent) and not as a financial advisor, as defined therein, with respect to the referenced proposed issuance of municipal securities. The primary role of Stifel, as an underwriter, is to purchase securities for resale to investors in an arm's- length commercial transaction. Serving in the role of underwriter, Stifel has financial and other interests that differ from those of the issuer. The issuer should consult with its' own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent it deems appropriate.
These materials have been prepared by Stifel for the client or potential client to whom such materials are directly addressed and delivered for discussion purposes only. All terms and conditions are subject to further discussion and negotiation. Stifel does not express any view as to whether financing options presented in these materials are achievable or will be available at the time of any contemplated transaction. These materials do not constitute an offer or solicitation to sell or purchase any securities and are not a commitment by Stifel to provide or arrange any financing for any transaction or to purchase any security in connection therewith and may not relied upon as an indication that such an offer will be provided in the future. Where indicated, this presentation may contain information derived from sources other than Stifel. While we believe such information to be accurate and complete, Stifel does not guarantee the accuracy of this information. This material is based on information currently available to Stifel or its sources and is subject to change without notice. Stifel does not provide accounting, tax or legal advice; however, you should be aware that any proposed indicative transaction could have accounting, tax, legal or other implications that should be discussed with your advisors and /or counsel as you deem appropriate.
Notes:
1. All Numbers are Preliminary and Subject to Change.
2. Use of 'A' rating (S&P) is consistent with the rating of the Outstanding Prior Bonds.
3. Interest Rate Assumptions are Based on Current Market Conditions and Similar Credits.
4. City's Actual Results May Differ, and Stifel makes no Commitment to Underwrite at These Levels.
5. Costs of Issuance and Underwriter's Discount are for Estimates for Discussion Purposes
6. Analysis was Performed with no Changes to the Term or the Structure of the Debt Service from the Currently Outstanding Issue.
7. Escrow has been funded with SLGS but in no way is Stifel recommending any particular investment strategy.
8. Prior Reserve Fund balance from the most recent Continuing Disclosure Report as of October 2, 2021
City of Hesperia
STAFF REPORT
DATE: March 21, 2023
TO: Mayor and Council Members
Chair and Board Members, Hesperia Water District
FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Dani Fox, Deputy Development Services Director
Tina Souza, Senior Project Manager
SUBJECT: Amend Professional Services Agreement for Bidding and Construction Support Services for the Ranchero Road Improvements Project (C.O. No. 7094) RE
COMMENDED ACTION
I
t is recommended that the City Council and Board of Directors of the Hesperia Water District 1) amend Professional Services Agreement (PSA) 2021-22-040 with Parsons Transportation Group, Inc. for Bidding and Construction Support Services for the Ranchero Road Improvements Project, [Construction Order (C.O.) No. 7094], in the amount of $63,880; and authorize a 10% contingency in the amount of $6,388 to be released as may be necessary for the completion of the project , totaling $ 70,268, with a n overall not-to-exceed total of $ 271,758; and 2) amend the PSA description to include C.O. Nos. 7131, 7146, and 7154; and 3) extend the PSA expiration date to June 30, 2025.
BACKG
ROUND
P
arsons Transportation Group, Inc. (Parsons) was awarded a contract for performing the design and California Environmental Quality Act (CEQA) compliance services for the Ranchero Road Improvements Project, C.O. No. 7094 (the Project) in February of 2008. This contract was for the roadway portion of the corridor and did not include the aqueduct bridge. The aqueduct w ould later be designed by different engineering firm and was intended to be a separate project at the time.
Thi
s portion of the entire Ranchero Road C orridor Widening P roject is being constructed in partnership with San Bernardino County (SBC), apart from the aqueduct crossing, which is a City only portion of the overall corridor project. Roughly half of the Project is within the SBC’s jurisdiction. A Memorandum of Understanding (MOU) with SBC was approved by the City Council in May of 2011 to share the cost of the environmental and design [plans, specifications, and estimates (PS&E)] services. A subsequent amendment to include the construction phase of the project was approved by the City Council on March 17, 2020. The City contracts with and pays Parsons directly, then subsequently invoices SBC for their portion of the costs related to the tasks performed by the consultant.
C
onstruction for the Ranchero Road Corridor Widening Project was awarded in August 2021 and is currently in progress . The City also has a separate agreement in place with Parsons in the amount of $520,886 for consulting services related to post-construction mitigation work required for the Ranchero Road Undercrossing Project.
Staff Report to the Mayor and Council Members and Chair and Board Members of the Hesperia Water District
Amend Professional Services Agreement for Bidding and Construction Support Services for the Ranchero Road Improvements Project (C.O. No. 7094)
March 21, 2023
ISSUES/ANALYSIS
D
uring the bidding and construction phase of a project, the engineering design firm is contracted to provide support to address constructability review comments, attend meetings, respond to inquiries, assist with preparation of addenda, review change order requests, and prepare as-built plans. The design engineering firm is the Engineer of Record for the project and has specific knowledge and liability related to the design. The design engineer is the sole authority for providing such services on a project.
T
he bidding support portion of the contract has been completed, leaving construction support services to be provided for the duration of construction.
D
ue to the complexity of the roadway widening project, during construction, there have been multiple circumstances requiring evaluation, clarification, engineered calculations, additional construction drawings and/or plan revisions to address unknown field conditions, including, but not limited to, drainage made evident by the recent storm events and utility conflicts. The project has not progressed as anticipated due to some of these unforeseen field conditions, most notably the utility conflicts. Additionally, plan revisions are currently being processed that is anticipated to ultimately result in a construction cost savings for certain components of the project.
W
ith the additional engineering services required to facilitate construction of the project, Parsons has utilized most of the estimated hours provided at the time of contract award, plus the previously authorized contingency . This amendment is required to continue with construction support services through project close-out. Attached is the estimated number of hours to complete the remaining work on the project. It is estimated that there is roughly 6 months of support hours that will be needed through project close- out. These services are vital to the continuation of project construction. Please see the table below for a summary of total agreement authorization.
PSA 2021-22-040 183,173$
Conti
ngency 18,317
PSA Authorization 201,490$
Amendment 63,880$
Contingency 6,388
Total Amendment 70,268$
Total Authorization 271,758$
A
dditionally, design of the roadway widening portion of this project was perform ed under C.O. 7094. For asset management and audit purposes, the traffic signal components of the project are recorded under a separate C.O. number. The Ranchero Road Improvements Project also includes Traffic Signal at Ranchero Road/Maple Avenue – C.O. 7131, Traffic Signal at Ranchero Road/Cottonwood Avenue – C.O. 7146, and Traffic Signal at Ranchero Road/Seventh Avenue – C.O. 7154 as listed in the City’s Capital Improvement Program.
F
inally, although roadway construction will be complete in advance of the end of Fiscal Year (FY) 2023-24, the close-out period could take several months. Thereby, staff is requesting a contract extension of two years.
Staff Report to the Mayor and Council Members and Chair and Board Members of the Hesperia Water District
Amend Professional Services Agreement for Bidding and Construction Support Services for the Ranchero Road Improvements Project (C.O. No. 7094)
March 21, 2023
FISCAL IMPACT
F
unding for the Project is budgeted in the FY 2022-23 CIP Budget under Funds 204, 207, 300, 306 and 504. Subsequent fiscal year’s CIP will include adequate appropriation authority for these services through FY 202 4-25. The Project is identified in the CIP under Ranchero Road Improvements – Seventh Avenue to Mariposa Road, C.O. No. 7094, Traffic Signal at Ranchero Road/Maple Avenue – C.O. 7131, Traffic Signal at Ranchero Road/Cottonwood Avenue – C.O. 7146, and Traffic Signal at Ranchero Road/Seventh Avenue – C.O. 7154.
T
he County will reimburse the City for their proportionate share of the project. At this time, the ratio of bidding and construction support services required is estimated at approximately 50% in the City and 50% in the County. This is an estimate subject to change throughout the course of construction based on the work performed by Parsons.
A
LTERNATIVE(S)
1. P
rovide alternative direction to staff.
AT
TACHMENT(S)
1. A
ttachment 1 – Cost Proposal
Tasks Total Hours
Average
Billing
Rates
Total Cost
Project Management, Meeting & Coordination 6 222.03$ 1,332.18$ Project Management 6 1,332.18$
Respond to Information (RFI) and Prepare CCO plans
Respond to RFIs and Prepare CCOs 375 147.17$ 55,188.75$ As-built
Prepare as-builts 50 147.17$ 7,358.50$
Design Support During Construction (DSDC) 425 62,547.25$ -$
63,879.43$
EXHIBIT B
Amendment No. 2 - Design Support During Construction
TASK SUMMARY
Total
Other Direct Cost (ODC)
ATTACHMENT 1
Cost Proposal
City of Hesperia
STAFF REPORT
DATE: March 21, 2023
TO: Mayor and Council Members
FROM: Nils Bentsen, City Manager
BY: Rachel Molina, Assistant City Manager
Ryan Leonard, Senior Planner
SUBJECT: Consideration of an Urgency Ordinance Adopting an Interim Urgency Ordinance Pursuant to California Government Code Section 65858 Extending a Moratorium on the Establishment or Expansion of Car Washes for a Period of Ten (10) Months and Fifteen (15) Days.
RECOMMENDED ACTION
It is recommended that the City Council adopt Urgency Ordinance 2023 -04 pursuant to California Government Code Section 65858, extending a moratorium for a period of ten (10) months and fifteen (15) days a moratorium on the establishment or expansion of car washes.
BACKGROUND
Pursuant to State law, Government Code Section 65858, a city may enact an interim zoning ordinance on an urgency basis for the protection of public safety, health, and welfare by prohibiting any use(s) that a city is intending to study within a reasonable period of time. In recent years, the City of Hesperia has had several new proposed car wash businesses which negatively impact the quality of life within Hesperia and compromises Hesperia's ability to provide a variety of services and attract new businesses.
On February 7, 2023 the City Council adopted Urgency Ordinance No. 2023-01 establishing a 45-day moratorium on the establishment or expansion of car washes. Pursuant to State law, the adopted urgency ordinance is valid for 45 days and will expire on March 24, 2023, unless extended by the City Council. After holding a public hearing, the City Council can extend the urgency ordinance for up to an additional 10 months and 15 days, for a total period of one year.
As with the initial adoption of the urgency ordinance, a four-fifths (4/5) vote is required to extend the urgency ordinance.
Staff intends to present a development code amendment to the Planning Commission on April 13, 2023, that would include additional regulations for the establishment of new c ar wash facilities. After the Planning Commission hearing, the upcoming development code amendment would be presented to the City Council for a final decision. An extension of the urgency ordinance would allow staff additional time to complete the necessar y work to finalize the development code amendment and to present it to the Planning Commission and City Council.
ISSUES/ANALYSIS
There are three common types of car washes: full service, express, and ancillary facilities. Full - service car washes are usually stand-alone facilities where employees either hand wash or detail vehicles. Express car washes are usually fully automated car wash facilities with self - serve
Staff Report to the City Council
Urgency Ordinance-Carwash Moratorium
March 21, 2023
vacuum stalls. Ancillary facilities are typically automated facilities that are associa ted with gas stations, and more commonly called drive - thru car washes. There are currently no City - wide regulations in effect regarding the operational and locational standards for car washes of any type.
The City currently has 21 car washes including 13 express facilities, three full -service facilities, and five facilities that are attached to gas stations, minimarts, and other business. A table of all facilities citywide and their location is shown below in Table 1. Attachment 1 shows the locations of the facilities that are along Main Street and Bear Valley Road.
Table 1-Carwash Facilities Citywide
As developable commercial land becomes scarcer in the City, there is concern that the proliferation of car washes without due consideration presents an immediate threat to public health, safety, or welfare because car washes generate undesirable conditions for adjacent properties as a result of noisy, large -scale industrial equipment including vacuums, pumps, No. Address Type Name
1 16002 Main St Full Service Shark Sight Hand Car Wash and Hot Wax 2 16701 Main St Express Main Street Car Wash
3 13311 Main St Express Hesperia Speedwash
4 14076 Main St Express Xpress Car Wash Inc
5 14949 Bear Valley Rd Full Service Bear Valley Car Wash 6 18659 Bear Valley Rd Express Quick Quack Car Wash
7 16028 Main St Express E-Z Coin Car Wash
8 17165 Bear Valley Rd Express Bear Valley Coin Car Wash 9 17985 Bear Valley Rd Express Express Car Wash
10 17465 Main St Express Gaius Family Corp
11 13188 Main St Gas Station Chevron Travel Center
12 12720 Main St Gas Station Sky Marketing Inc
13 Main St Express Quick Quack Car Wash
14 16968 Main St Express Quick Quack
15 17112 Main St Express Mister
16 13100 Main St Gas Station Western Refining Retail
17 12675 Main St Express Main Street Inc
18 13537 Main St Express Sparkys Car Wash
19 16575 Bear Valley Rd Full Service Shine Auto Spa
20 15760 Ranchero Rd Gas Station Shell
21 12750 Main St Gas Station AM PM
Staff Report to the City Council
Urgency Ordinance-Carwash Moratorium
March 21, 2023
pressurized sprayers, dryers, engines, and car stereos. In addition, the use increases vehicle traffic in the immediate vicinity, and can cause runoff of chemicals. Airborne mist, odors from chemicals and vehicle exhaust are also a result of such uses.
Furthermore, the oversaturation of car washes in the City provides little economic benefit to the City or City residents as there are minimal sales tax revenues associated with the use, few employees hired, and typical wages paid would not increase the City’s overall median income.
Car washes are often noisy due to large industrial sized equipment and cause an increase in vehicular traffic where they are located. Additionally, car washes near residential uses have the potential to expose residents to excessive noise and traffic. The negative impacts frequently associated with operation of car washes will likely increase as car washes continue to proliferate throughout the City, resulting in an unregulated and significant negative impact upon public health, safety, and welfare of the community.
Staff intends to study the issues associated with car washes to determine which locations are most appropriate for the use, and the types of development standards that should be imposed on their operation to mitigate any potential impacts. This includes reviewing land use definitions for car washes to determine if revisions are needed, evaluating all land use district s in which car washes are permitted for suitability and study development standards and best practices from other jurisdictions to determine if they would be appropriate City-wide.
Further, staff believes that continued approval of entitlements, building permits, or other approvals for new or expanded car washes poses a current and immediate threat to the public health, safety or general welfare. Without further regulation of their location and operation, there is the potential for significant negative imp acts by the development of new car washes or the expansion of existing car washes that cannot be mitigated.
Pursuant to Government Code Section 65858, a city may adopt an interim ordinance, prohibiting any uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body, planning commission or the planning department is considering or studying or intends to study within a reasonable time, for the immediate preservation of the general health, safety or welfare, provided the ordinance contains a declaration of the facts constituting the urgency, and is passed by not less than a four-fifths (4/5) vote of the City Council.
With adoption of this Ordinance, the City will extend the moratorium for a period of ten (10) months and fifteen (15) days, or until such time as a permanent development code amendment is in full force and effect.
FISCAL IMPACT
There are no fiscal impacts identified with this action.
ALTERNATIVE(S)
1. Deny the extension of the development moratorium and allow the existing 45 -day moratorium to expire
2. Provide alternative direction to staff.
ATTACHMENT(S)
1. Carwash locations along Main Street and Bear Valley Road
2. Urgency Ordinance 2023-04
Carwash Locations along Main Street from the I-15 freeway to Topaz Avenue CARWASH LOCATIONS ALONG MAIN STREET FROM THE I-15 FREEWAY TO TOPAZ AVENUE ATTACHMENT 1
ATTACHMENT 1A
Carwash Locations along Main Street from Seventh Avenue to I Avenue
CARWASH LOCATIONS ALONG MAIN STREET FROM SEVENTH AVENUE TO I AVENUE
Carwash Locations along Bear Valley Road from the I-15 freeway to Hesperia Road CARWASH LOCATIONS ALONG BEAR VALLEY ROAD FROM THE I-15 FREEWAY TO HESPERIA ROAD
ATTACHMENT 1B
Carwash Locations along Bear Valley Road from Hesperia Road to the eastern City boundary
CARWASH LOCATIONS ALONG BEAR VALLEY ROAD FROM HESPERIA ROAD TO THE EASTERN
CITY BOUNDARY
ATTACHMENT 1C
ORDINANCE NO. 2023-04
AN INTERIM URGENCY ORDINANCE OF THE CITY OF HESPERIA, CALIFORNIA, ENACTED PURSUANT TO CALIFORN IA GOVERNMENT CODE SECTION 65858
EXTENDING A TEMPORAR Y MORATORIUM ON THE ESTABLISHMENT OR
EXPANSION OF CAR WAS H FACILITIES WITHIN THE CITY LIMITS FO R TEN MONTHS (10) AND FIFTEEN (15) DAYS.
WHEREAS, the City of Hesperia has the authority and responsibility to protect the public health, safety, and welfare of the City; and
WHEREAS, the City has a compelling interest in protecting the public health, safety, and welfare of its citizens, residents, vis itors and bus inesses, and preserving the peac e and quiet of the neighborhoods within the City by regulating the establishment and expansion of car washes within City limits; and
WHEREAS, the City is responsible for adopting and implementing land use regulations within its boundaries; and
WHEREAS, the City has no other development standards or regulations applicable to the operation of Cash Washes; and
WHEREAS, the City’s pe rmissive policy towards car washes could result in a proliferation or oversaturation of said uses within the City; and
WHEREAS, developable land becomes scarcer in the City, there is concern that the proliferation of car washes without due consideration presents an imme diate threat to public health, safety, or welfare because car washes generate undesirable conditions for adjacent properties as a result of noisy, large-scale industrial equipment including vacuums, pumps, pressurized sprayers, dryers, engines, and car stereos. In addition the use increases vehicle traffic in the immediate vicinity, and can cause runoff of chemicals. Finally, airborne mist, odors from chemicals and vehicle exhaust are a result of such uses; and
WHEREAS, the oversaturation of car washes in the City provides little economic benefit to the City or City residents; and
WHEREAS, absent clear regulation, the proliferation and oversaturation of car washes in the City poses a threat to the public peace, health, and safety, and, unless the City takes action to regulate, the impacts described above are likely to continue to occur; and WHEREAS, the City desires to regulate car washes to ensure that public right-of-ways and public property remain free of public nuisances, safe and accessible for all users, and clear of conditions that pose threats to public health, safety, and welfare, to ensure that future development is undertaken in a manner consistent with the City’s General Plan, and to ensure that car wash Operators comply with State and City regulations tha t consider the public’s health, safety, and welfare; and
WHEREAS, the City anticipates that car wash operators may seek to establish additional car washes, or desire to expand existing car washes before a non-urgency ordinance would become effective; and
WHEREAS, Government Code Sections 36934, 36937 and 65858 expressly authorize the City Council to adopt an urgency ordinance for the immediate preservation of the public peace, health or safety and to prohibit a use that is in conflict with a contemplated g eneral plan, specific plan, or zoning proposal that the legislative body, planning commission or the planning department is considering or studying or intends to study within a reasonable time; and WHEREAS, City staff require time to study and develop appr opriate regulations for car wash operators consistent with State and federal law; and
WHEREAS, on February 7, 2023 the City Council adopted Ordinance No. 2023-01 establishing a 45-day moratorium on the establishment or expansion of car washes within the C ity limits.
Ordinance No. 2023-01 will expire on March 24, 2023; and WHEREAS, the City now desires to impose a ten month (10) and fifteen (15) day moratorium on the establishment or expansion of car washes within the City limits in order to complete a proposed development code amendment that will create new development regulations and development standards for car wash facilities; and
WHEREAS, pursuant to the above-described express statutory authority and its police power, the City Council desires, on an u rgency basis, to temporarily prohibit establi shment of new, or expansion of existing, car washes within the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS.
SECTION 1. FINDINGS
The City Council finds the facts set forth in the recitals in this Urgency Ordinance are true and correct, and are hereby incorporated by reference. Additionally, based on the foregoing, both verbal and written testimony at the public hearing, including the staff report, exhibits, and any materials provided by members of the public, the City Council finds as follows:
A. This Ordinance is being adopted in order to allow the City time to thoroughly study and develop the City’s laws, rules, procedures and fees related to the operation and establishment of car washes, to enable the City to adequately and appropriately preserve the health, safety and welfare of the community in the City of Hesperia.
B. For the purposes of this Ordinance the definition of “Car Wash” shall include full service, express, and ancillary facilities. Full-service car washes are usually stand-alone facilities where employees either hand wash or detail vehicles. Express car washes are usually fully automated car wash facilities with self-serve vacuum s talls. Ancillary facilities are typically automated facilities that are associated with gas stations, and more commonly called drive- thru car washes. This ordinance is intended to apply to car washes that are either the primary use or the accessory use of the relevant parcel. Temporary car washes (e.g., fundraising activities generally conducted at a s ervice station or other automotiv e-related bu siness, where volunteers wash vehicles by hand and the duration of the event is limited to one day) are not part of this definition.
C. For purposes of this Ordinance, “ Car Wash Operator” shall mean a person that manages and/or operates a car wash, whether for profit or not.
D. The City finds that in the absence of a regulatory framework to govern car washes, the adverse impacts frequently associated with car washes likely will occur, resulting in unregulated and significant negative impacts upon the public health, safety, and welfare of the community.
E. The City finds that the adverse impacts from car washes include the following:
(1) The proliferation of car washes throughout the City without due consideration presents an immediate threat to p ublic health, safety, or welfare because car washes generate undesirable conditions for adjacent properties as a result of use noisy, large -scale industrial equipment including vacuums, pumps, pressurized sprayers, dryers, engines and car stereos; and (2) In addition, the use tends to increase vehicle traffic in their immediate vicinity, and can cause runoff of chemicals; and
(3) Also, airborne mist, odors from chemicals and vehicle exhaust are also a result of such uses; and
F. The City also finds that car washes could have a negative economic impact for the City as follows:
(1) The use provides little economic benefit to the City or City residents, as there are minimal sales tax revenues associated with the use, few employees hired, and typical wages paid would not increase the City’s overall median income; and (2) The continued establishment of car washes will result in th e immediate loss of potential revenues to the City and the immediate loss of desirable commercial and/or manufacturing sites throughout the City.
G. The City needs time to draft a proposed text amendment to the Zoning Code to preserve the health, safety and welfare of the community in the City of Hesperia with respect to the operation of car washes.
SECTION 2. AUTHORITY AND EFFECT
The State Planning and Zoning Law (Cal. Gov’t Code Sections 65000, et seq.) broadly empowers the City to plan for and regulate the use of land in order to provide for orderly development, the public health safety and welfare , and a balancing of property ri ghts and the desires of the community and how its citizens envisions their city.
SECTION 3. MORATORIUM
A. During the Effective Period of this Ordinance as specified below, no permit shall be issued, for any development of any new car wash, nor may a permit be issued for the expansion of an existing car wash, within the City. The foregoing shall explicitly proh ibit the issuance of any zoning, land use, discretionary permit, building permit, environmental approval, business license or any other entitlement involving bu sinesses defined as a car wash herein, during the Effective Period.
B. Notwithstanding the fore going, any existing car wash facility shall be allowed to obtain their annual City of Hesperia business license. Additionally, permits may be issued for minor construction, rehabilitation and landscaping or other purposes not involving an expansion of building area. Any car wash facilities under construction with a valid building permit or any car wash facility approved by the Planning Commission on the effective date of th is Urgency Ordinance shall be exempt from this Urgency Ordinance.
SECTION 4. STUDY AND DEVELOPMENT
During the period of this Ordinance, the City shall study and develop as necessary City laws, rules, procedures and fees related to car washes, to enable the City to adequately an d appropriately preserve the heal th, safety and welfare of the community in the City of Hesperia.
Pursuant to Government Code Section 65858 the Planning Manager will issue a report for the legislative body on what has been accomplished duri ng the moratoriu m before it expires or is extended.
SECTION 5. URGENCY MEASURE
It is hereby declared that this Ordinanc e is necessary as an urgency measure for the preservation of the public health, safety and welfare. The City Council finds that current zoning regulations and land use plans do not adequately regulate the establishment and operation of car washes and therefore do not adequately protect the peace, health, safety and general welfare of the residents of the City or in communities around the City. The City Council finds the urgency measure is necessary in order to ensure adequate regulation of the operation of car washes. The facts constituting the urgency are:
The City of Hesperia does not currently have clear standards in the Hesperia Municipal Code related specifically to the establishment and expansion of car washes within the City.
The negative impacts frequently associated with operation of car washes will likely increase as car washes continue to proliferate throughout the City, resulting in an unregulated and significant negative impact upon public health, safety, and welfare of the community.
To permit the proliferation of car washes to continue within the City without being subject to specific regulations that are consistent with the General Plan, and that take into account the impacts that such establishments have, constitutes a threat to the health, safety, and welfare. Car washes generate undesirable conditions for adjacent properties. Airborne mist, odors from chemicals and vehicle exhaust, and noise from vacuums, pumps, pressurized sprayers, dryers, engines and car stereos are examples of common impa cts generated by these uses. The impacts can be detrimental to the quality of life for adjacent residents and disruptive to adjacent businesse s.
Allowing the continued establishment of car washes will re sult in the immediate p otential for disruptions to the quality of life for adjacent residents and businesses.
Car Wash facilities in the community provide the City with little economic benefit as there are minimal sales tax revenues associated with car wash operations.
Car Wash facilities hire few employees and typical wages paid at car wash facilities would not increase the City’s overall median incomes. Car washes therefore would not bolster employee densities in commercial and manufacturing zones or increase the per capita median income of the community. Allowing the continued establishment of car washes will result in the immediate loss of
potential income to City residents and reduce potential employment opportunities throughout the City.
Car wash operators are likely to seek to be located in the City based on the lack of explicit regulations, which will further exacerbate the impacts of such businesses.
Absent the adoption of this Interim Urgency Ordinance, the operation of car washes in the City would likely result in the negative and harmful secondary effects, as identified above, including, but not limited to, increased noise, traffic, pollution, and public health and safety concerns, and other impacts identified herein.
As a result of t he negative and harmful secondary effects associated with imprope rly regulated or unregulated operation of car washes, the current and immediate threat such effects pose to the public health, safety and welfare, it is necessary to adopt a temporary, ten month (10) and fifteen (15) day day moratorium on the establishment of new car washes and the expansion of existing car washes in the City.
A moratorium is immediately required to preserve the public health, safety and welfare and should be adopted immediately as an urgency ordinance, to make certain that the establishment and expansion of car washes is prohibited for the period of this Ordina nce. Imposition of a moratorium will allow the City sufficient time to conclude the prep aration of a com prehensive ordinance for the regulation of such activities.
SECTION 6. SEVERABILITY
The City Council hereby declares, if any provision, section, subsection, pa ragraph, sentence, phrase or word of this Ordinance is rendered or declared invalid or unconstitutional by any final action in a court of competent jurisdiction or by reason of any preemptive legislation, then the City Council would have independently adopted the remaining provisions, sections, subsections, paragraphs, sentences, phrases or words of this Ordinance and as such they shall remain in full force and effect.
SECTION 7. CEQA COMPLIANCE
Pursuant to the California Environmental Quality Act Guidelines ("CEQA," California Code of Regulations Title 14, §§ 15000 et seq.), this Interim Urgency Ordina nce is exempt fr om CEQA based on the following: ( i) this Ordinance is not a project within the meaning of CEQA Section 15378 because it has no potential for resulting in physical change to the environment, either directly or indirectly and (ii) this Ordinance is also exempt pursuant to CEQA Section 15061(b)(3) since the proposed ordinance involves an Interim Urgency Ordinance establishing a ten month (10) and fifteen (15) day moratorium on the operation of car washes and thus there is no possibility that the proposed ordinance may have a significant effect on the environment.
SECTION 8. EFFECTIVENESS OF ORDINANCE.
This Ordinance shall take effect immediately upon its adoption by a 4/5 vote, pursuant to the authority conferred upon the City Council by Government Code Sections 36934, 36937, and 65858.
This Ordinance shall be effective during the Effective Period which shall be from its adoption and shall be of no further force and effect ten months (10) and fifteen (15) days following the date of its adoption unless extended in accordance with the provisions set forth in Government Code Section 65858(b).
SECTION 9. PUBLICATION
The City Clerk shall certify as to the passage and adoption of this Interim Urgency Ordinance and shall cause the same to be published in a manner prescribed by law.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Hesperia, California, at a regular meeting held on this 21st day of March, 2023.
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Brigit Bennington, Mayor
ATTEST:
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Erin Baum, Assistant City Clerk