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Agenda

Hesperia City Council
August 15, 2023

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Agenda
Meeting
August 15, 2023
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Hesperia City Council
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146
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Text extracted from the city's file for reading and search. Open the original on hesperia.legistar.com. That file is the official record.

Tuesday, August 15, 2023
Meeting Agenda
Closed Session - 5:00 PM

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY HOUSING

AUTHORITY

COMMUNITY DEVELOPMENT COMMISSION

WATER DISTRICT

HESPERIA PUBLIC FINANCING AUTHORITY - ANNUAL MEETING

HESPERIA PUBLIC FACILITIES CORPORATION - ANNUAL MEETING 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
Rachel Molina, 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

Rachel Molina, City Manager www.cityofhesperia.us Gateway to the High Desert
City of Hesperia

Public Access to City Council Meetings:

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

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

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

Remote Public Comment:

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

• Call (760)947-10 56 to leave a detailed message of your public comment.

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

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

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

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

August 15, 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

HESPERIA PUBLIC FINANCING AUTHORITY - ANNUAL MEETING

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

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

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

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

CLOSED SESSION - 5:00 PM
Roll Call
Mayor Brigit Bennington
Mayor Pro Tem Larry Bird
Council Member Allison Lee
Council Member Cameron Gregg
Council Member Rebekah Swanson
Conference with Legal Counsel – Existing Litigation
Government Code Section 54956.9(d)1

1. Apex HM, LLC et al. v. City of Hesperia, et al. (San Bernardino County Superior Court Case No. CIVBS 2208845)

2. City of Hesperia v. Lake Arrowhead Community Services District, et al. (Court of Appeal, 4th App. Dist., Div. One Case No. D079956) Conference with Legal Counsel - Potential Litigation:

Government Code Section 54956.9(d)2

1. Three (3) Cases

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August 15, 2023City Council Meeting Agenda
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
Council Member Cameron Gregg
Council Member Rebekah Swanson
D. Agenda Revisions and Announcements by City Clerk
E. Closed Session Reports by City Attorney
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Consideration of the Draft Minutes from the Special Meeting held Tuesday, August 1, 2023 at 3:00 p.m.

Recommended Action:

It
is recommended that the City Council approve the Draft Minutes from the Special Meeting held Tuesday, August 1, 2023 at 3:00 p.m.

Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2023-8-1 3:00 PMAttachments:

2. Consideration of the Draft Minutes from the Special Meeting held Tuesday, August 1, 2023 at 7:30 p.m.

Recommended Action:

It
is recommended that the City Council approve the Draft Minutes from the

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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.

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August 15, 2023City Council Meeting Agenda
Special Meeting held Tuesday, August 1, 2023 at 7:30 p.m Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2023-8-1 7:30 PMAttachments:

3. HESPERIA PUBLIC FACILITIES CORPORATION AND HESPERIA PUBLIC

FINANCING AUTHORITY ANNUAL MEETING ITEM
Consideration
of the Draft Minutes from the Corporation and Authority Annual Meetings held August 16, 2022.

Recommended Action:

It is recommended that the Board of Directors approve the Draft Minutes of the Corporation and Authority Annual Meetings held August 16, 2022.

Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2022-08-16Attachments:

4. 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: Assistant City Manager Casey Brooksher
SR Warrant Run 8-15-2023
Attachment 1 - Warrant Run
Attachments:

5. Amendment to Contract with JAS Pacific, Inc.

Recommended Action:

It
is recommended that the City Council authorize the City Manager to execute an amendment to the existing contract with JAS Pacific, Inc. for an additional $163,404 for a revised not-to-exceed contract amount of $483,404 for supplemental contract inspection services.

Staff Person: Senior Office Specialist Maricruz Montes and Director of Development Services Nathan Freeman
SR JAS Pacific, Inc. Contract 8-15-2023Attachments:

6. Vehicle Procurement - One Heavy-Duty Truck
Recommended Action:

It
is recommended that the Board of Directors of the Hesperia Water District authorize the City Manager to approve the procurement of one heavy-duty 2023 Chevrolet Silverado 2500 truck for the Production Program, awarding the bid to Victorville Chevrolet/Cadillac, and enter into an agreement for the not-to-exceed amount of $58,020.

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August 15, 2023City Council Meeting Agenda
Staff Person: Director of Public Works Jeremy McDonald
SR Vehicle Procurement 8-15-2023
Attachment 1 - Bid Comparison
Attachments:

7. Contract with Tesco Controls, Inc. for SCADA Upgrades Recommended Action:

It
is recommended that the Board of Directors of the Hesperia Water District (District) authorize the City Manager to enter into an agreement with Tesco Controls, Inc. in an amount of $394,635 for hardware and software upgrades, $162,855 for radio transceivers, and a contingency of $25,410 for a total not-to-exceed amount of $582,900 for upgrades to the Supervisory Control and Data Acquisition (SCADA) system.

Staff Person: Director of Public Works Jeremy McDonald
SR Tesco Controls, Inc. Contract 8-15-2023Attachments:

CONSENT ORDINANCES

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

8. Public hearing, landowner election, and actions related to formation of Community
Facilities District No. 2023-1 (Silverwood Maintenance and Services)
Recommended Action:

Place on second reading and adopt by title waiving the text of Ordinance No. 2023-11, and adopt a Resolution (No. 2023-55) of formation of Community Facilities District No. 2023-1 and Future Annexation Area levying special taxes within the Community Facilities District (including any territory that annexes into the Community Facilities District from the Future Annexation Area), 2) Adopt Resolution No. 2023-53 Calling a Special Landowner Election for a CFD and 3) Adopt Resolution No. 2023-54 Declaring the Results of the Special Landowner Election and Directing the Recording of a Special Tax Lien.

Staff Person: Assistant City Manager Casey Brooksher
SR Hesperia Silverwood CFD 2023-1 8-1-2023
Attachment 1 - Resolution 2023-55 Formation of CFD
Attachment 2 - Resolution 2023-53 Calling for a Special Election Attachment 3 - Resolution 2023-54 Certifying Election Results Attachment 4 - Ordinance 2023-11 Authorizing Levy of Special Taxes Attachment 5 - Special Tax Report
Attachments:

PUBLIC HEARING

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August 15, 2023City Council Meeting Agenda
Individuals wishing to comment on public hearing items must submit a speaker slip to the City Clerk with the numbered agenda item noted. Speaker slips should be turned in prior to an agenda item being taken up.

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

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

9. Specific Plan Amendment SPLA23-00004; Applicant: Steeno Design Studio, Inc; APN: 3057-121-08
Recommended Action:

The Planning Commission recommends that the City Council introduce and place on first reading Ordinance No. 2023-12 approving Specific Plan Amendment SPLA23-00004.

Staff Person: Associate Planner Edgar Gonzalez
SR Specific Plan Amendment SPLA23-00004 8-15-2023
Ordinance 2023-12
Attachment 2 - Planning Commission Report with attachments Attachments:

NEW BUSINESS

10. Designation of Voting Delegate and Alternates for League of CA Cities Conference
Recommended Action:

It is
recommended that the City Council designate a primary voting delegate and up to two alternate delegates to represent the City of Hesperia at the General Business meeting to be held during the League of California Cities annual conference September 20 through September 22, 2023 to be held in Sacramento.

Staff Person: Assistant City Clerk Erin Baum
SR Voting Delegates for League of CA Cities Conference 8-15-2023Attachments:

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

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August 15, 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 Thursday, August 10, 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.

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City of Hesperia
City of Hesperia
Meeting Minutes - Draft
City Council
Tuesday, August 1, 2023 3:00 PM

SPECIAL MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

HESPERIA WATER DISTRICT

NO CLOSED SESSION
CALL TO ORDER - 3:00 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call

Present: 4 - Mayor Pro Tem Bird, Council Member Swanson, Council Member Gregg, Council Member
Lee

Absent: 1 - Mayor Bennington
D. Agenda Revisions and Announcements by City Clerk
E. Closed Session
Reports by City Attorney

ANNOUNCEMENTS/PRESENTATIONS

1. Presentation of Certificate of Recognition honoring World War II Veteran Ernest C. Johnson who will be t urning 100 on 12/27/23
, by the City Council.

2. Environm
ental Programs Update by Lesa Byars, Management Analyst GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345

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City of Hesperia
John Ohanian commented on the Silverwood project and City staff.

Rob Oakleaf commented on the Animal Shelter.

Darnee Turner and Holly Salzberg commented on a community issue.

Kelly Gregg commented on the Animal Shelter.

JOINT CONSENT CALENDAR
A motion was made by Swanson, seconded by Lee, that the joint consent calendar be approved.

The motion carried by the following vote:

Aye: 4 - Bird, Swanson, Gregg, and Lee
Nay: 0

Absent: 1 Bennington

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, July 18, 2023.

Recommended Action:

It is recomm
ended that the City Council approve the Draft Minutes from the Regular Meeting held
Tuesday, July 18, 2023.

Sponsors: Assistant City Clerk Erin Baum

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

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

Sponsors: Assistant City Manager Casey Brooksher

3. Amend Contract with Tyler Technologies
Recommended Action:

It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize
the Cit
y Manager to amend the current contract
with Tyler Technologies in the amount of $10,000 for a
total
not-to-exceed contract amount of $642,015, for maintenance, software, licensing and custom ization support for the
New World Financial System and MyCivic Citizen Engagement platform.

Sponsors: Assistant City Manager Casey Brooksher

4. Award of Contract for Overhead Street Name Signs
Recommend
ed Action:

It is recommended that the City Council authorize the City Manager to enter into a one (1) year agreement
with Safeway Sign Company in a not-to-exceed
contract amount of $56,537, for the purchase
of overhead stre
et name signs.

Sponsors: Director of Public Works Jeremy McDonald

5. Vehicle Procurement - Two Mid-Size Trucks
Recommend
ed Action:

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City of Hesperia
It is recommended that the Board of Directors of the Hesperia Water District (HWD) authorize the City Manager to approve the procurement of two (2) 2023 Ford Ranger 4 x 4 trucks for the Production Program; adopt Resolution HWD No. 2023-13 amending the Fiscal Year (FY) 2023-24 Budget by appropriating $64,000; and authorize the purchase from Fairview Ford Sponsors: Director of Public Works Jeremy McDonald

6. Award of Contract for a Swaploader Conversion
Recommended Action:

It is recommended that the Board of Directors of the Hesperia Water District (District) authorize the City Manager to enter into an agreem
ent with PB Loader Corporation for a not-to-exceed contract amount of $52,408, for a swaploader conversion on an existing District fleet vehicle.

Sponsors: Director of Public Works Jeremy McDonald

7. Final Map No. 18955-5
Recommended Action:

It is recommended that the City Council adopt Resolution No. 2023-50 approving Final Map No. 18955-5 to create 69 residential lots on approximatel
y 21.4 gross acres and accept right-of-way necessary to develop Tract 18989-1 Lot 5, Planning Area 5 of the Tapestry Specific Plan (Applicant: Silverwood Development Phase I, LLC).

Sponsors: Administrative Analyst Bethany Hudson, Deputy Development Services Director Dani Fox and Director of Development Services Nathan Freeman

8. Final Map No. 18955-7
Recommended Action:

It is recommended that the City Council adopt Resolution No. 2023-51 approving Final Map No. 18955-7 to create 46 residential lots on approximatel
y 22.08 gross acres and accept right-of-way necessary to develop Tract 18989-1 Lot 7, Planning Area 8 of the Tapestry Specific Plan (Applicant: Silverwood Development Phase I, LLC).

Sponsors: Director of Development Services Nathan Freeman, Deputy Development Service s Director Dani Fox and Administrative Analyst Bethany Hudson

PUBLIC HEARING

9. Public hearing, landowner election, and actions related to formation of Community Facilities District No. 2023-1 (Silverwood Maintenance and
Services)
Recommended Action:

It is recommended that the City Council: 1) Conduct the public hearing and consider written and oral protests; 2) Adopt Resolution No. 2023-2
2 of formation of a Community Facilities District and Future Annexation Area; 3) Adopt Resolution No. 2023-53 calling a special landowner election for a community facilities district, and direct the City Clerk to complete the landowner elections; 4) Adopt Resolution No. 2023-54 declaring the results of the special landowner election and, if the election is successful, direct recording of Notice of Special Tax Lien; and 5) Introduce Ordinance No. 2023-11 levying special taxes within the Community Facilities District (including any territory that annexes into the Community Facilities District from the Future Annexation Area).

Sponsors: Assistant City Manager Casey Brooksher
A motion was made by Swanson, seconded by Greg, that the City Council adopt resolution No. 2023-22 of formation of a community facilities district and future annexation area; and resolution

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City of Hesperia
No. 2023-53 calling a special landowner election for a community facilities district, and direct the City Clerk to complete the landowner elections. The motion carried by the following vote:

Aye: 4 - Bird, Swanson, Gregg, and Lee
Nay: 0

Absent: 1 Bennington
The Assistant City Clerk completed the landowner election. The measure passed.

A motion was made by Lee, seconded by Swanson, to adopt Resolution No. 2023-54 declaring the results of the
special landowner election and direct recording of Notice of Special Tax Lien; and introduce ordinance No. 2023-11 levying special taxes within the Community Facilities District (including any territory that annexes into the Community Facilities District from the Future Annexation Area). The motion carried by the following vote:

Aye: 4 - Bird, Swanson, Gregg, and Lee
Nay: 0

Absent: 1 Bennington

COUNCIL COMMITTEE REPORTS AND COMMENTS
The Mayor, Mayor Pro Tem, and Council Members reported from various events and Committees.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
The City Manager thanked City Staff.

ADJOURNMENT
The meeting was adjourned in honor of Ernest C. Johnson and Detective Curtis Bennington at 4:18 p.m. _____________________________
Erin Baum,
Assistant City Clerk

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City of Hesperia
City of Hesperia
Meeting Minutes - Draft
City Council
Tuesday, August 1, 2023 7:30 PM

SPECIAL MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

HESPERIA WATER DISTRICT
CLOSED SESSION - 6:30 PM
Roll Call

Present: 5 - Mayor Pro Tem Bird, Council Member Swanson, Council Member Gregg, Mayor Bennington, and Co
uncil Member Lee
Conference with Legal Counsel – Potential Litigation:

Government Code Section 54956.9(d)2

1. One (1) Case
CALL TO ORDER - 7:33 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call

Present: 5 - Mayor Bennington, Pro Tem Bird, Council Member Gregg, Council Member Lee, and Council Member Swanson
D.

Agenda Revisions and Announcements by City Clerk
E. Closed Session
Reports by City Attorney
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345

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City of Hesperia
Bob Nelson commented on speaking limits
Dr. Cisneros commented on translation and animal control issues.

NEW BUSINESS

1. Ordinance No. 2 (Hesperia Municipal Code Chapter 2.08): Council-Manager Form of Government
Recommended
Action:

It is recommended that the Council review the following staff report and attachments to discuss whether to amend any portion of Ordinance No. 2
(Hesperia Municipal Code Chapter 2.08) or Chapter 6, Section A, Subsection 3 of the City Council Procedures Manual.

Sponsors: City Attorney Pam K. Lee
This item was received and filed.

COUNCIL COMMITTEE REPORTS AND COMMENTS
Council Member Gregg commented on Policies and Procedures.

Mayor Pro Tem Bird commented on Policies and Procedures.

Mayor Bennington commented on her son’s promotion, she attended a few meetings, and spoke about Mr.

Palemero. She asked to close the meeting in honor and memory of Mr. Palemero.

Council Member Lee had no comments.

Council Member Swanson had no comments.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
Open session ended at 9:03 and Council returned to Closed Session.

ADJOURNMENT
The meeting was adjourned in honor of the passing of Mr. Palemero at 10:10 p.m. _____________________________
Erin Baum,
Assistant City Clerk

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City of Hesperia
City of Hesperia
Meeting Minutes - Draft
City Council
Tuesday, August 16, 2022 6:30 PM

REGULAR MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

HESPERIA FIRE PROTECTION DISTRICT

HESPERIA WATER DISTRICT

HESPERIA PUBLIC FINANCING AUTHORITY - ANNUAL MEETING

HESPERIA PUBLIC FACILITIES CORPORATION - ANNUAL MEETING CLOSED SESSION - 5:30 PM
Roll Call

Present: 5 - Council Member Bird, Council Member Swanson, Mayor Pro Tem Holland Mayor Bennington and Council Mem
ber Gregg
Conference with Legal Counsel – Existing Litigation Government Code Section 54956.9(d)1

1. Assistant Secretary for FHEO v. City of Hesperia, California, et al.; Case Number 09-16-4717-8 CALL TO ORDER - 6:30 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call

Present: 5 - Council Member Bird, Council Member Swanson, Mayor Pro Tem Holland Mayor Bennington and Council Mem
ber Gregg
D. Agenda Revisions and Announcements by City Clerk
City Attorney Eric Dunn intr
oduced an item to discuss options for the upcoming election.

A motion was made by Bird, seconded by Swanson, that this item be added to the agenda. The motion carried by the follow
ing vote:

Aye: 5 - Bird, Swanson, Holland, Gregg and Bennington
City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345

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City of Hesperia
Nay: 0
Discussion ensued.

Council directed staff
to initiate a Special Meeting on August 24, 2022, at 6:00 pm, to consider appointments in lieu of holding an election.

E. Closed Session Reports by City Attorney
No reportable action was taken

ANNOUNCEMENTS/PRESENTATIONS

1. Presentation to resident David Ellis, Pride Enhancement Program Honoree.

2. Presentation of Certificate of Recognition to Robert Stine by the City Council.

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

Daniel Krist commented on community issues.

Rick Casas commented on cannabis business in the City.

Carlos De Oliviera commented on cannabis business in the City.

Sheldon De Oliviera commented on cannabis business in the City.

Allison Lee introduced herself and her interest as a potential candidate/appointee to City Council.

Al Vogler commented on OHV activity and fireworks in the City.

Council Comments were heard at this time in response to Public Comments.

COUNCIL COMMITTEE REPORTS AND COMMENTS
Council Member Bird commented on cannabis laws in the state and country, public comments on cannabis, the Department of Justice lawsuit timing against the City, the effects of cannabis on our community’s young people, VVWRA attendance on Thursday, and thanked Council Member Swanson for attending Tri City in his place.

Council Member Gregg commented on cannabis business owners public comments, his responding to calls in regards to cannabis, asked that council clarify stance on cannabis business going forward, and public comments accusing the City Council of being racist.

Council Member Holland commented on public commenters insulting the City Council and City itself, his historical stance on cannabis business in the City, previous comments from cannabis businesses during the process to allow cannabis businesses, and cannabis delivery originating from other Cities Council Member Swanson and Mayor Bennington deferred their comments until the regular Council Comment item at the end of the meeting.

JOINT CONSENT CALENDAR
A motion was made by Holland, seconded by Gregg, that the Joint Consent Calendar be approved. The motion carried by the following vote:

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

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City of Hesperia

1. Consideration of the Draft Minutes from the Special Meeting held Tuesday, August 2, 2022.

Recommended Action:

It is recommended that the City Council approve the Draft Minutes from the Special Meeting held Tuesday, August 2, 2022.

Sponsors: Assistant City Clerk Erin Baum

2. HESPERIA PUBLIC FACILITIES CORPORATION AND HESPERIA PUBLIC FINANCING AUTHORITY

ANNUAL MEETING ITEM
Consideration of the Draft Minutes from the Corporation and Authority Annual Meetings held August 17, 2021.

Recommended Action:

It is recommended that the Board of Directors approve the Draft Minutes of the Corporation and Authority Annual Meetings held August 17, 2
021.

Sponsors: Assistant City Clerk Erin Baum

3. 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 Communit
y Redevelopment Agency, Hesperia Housing Authority, Community Development Commission, and Water District.

Sponsors: Director of Administrative Services Casey Brooksher

4. Equipment Procurement for Water Distribution Program Recommended Action:

It is recommended that the Board of Directors of the Hesperia Water District authorize the City Manager to approve the procurement of one vacuum
excavator and enter into an agreement with Ditch Witch West in the not-to-exceed amount of $84,808.

Sponsors: Director of Public Works Jeremy McDonald

5. Granicus Acquisition of GovQA
Recommended Action:

It is recommended that the City Council authorize the City Manager to enter into a one (1) year agreement with Granicus, LLC in an am
ount not-to-exceed $10,866.50 to provide services for the City's electronic public records request and claims software program.

Sponsors: Assistant City Clerk Erin Baum

CONSENT ORDINANCES
A motion was made by Swanson, seconded by Holland, that the Consent Ordinances be

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City of Hesperia
approved. The motion carried by the following vote:

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

6. Emergency Service Roles
Recommended Action:

Place on second reading and adopt by title waiving the text of Ordinance No. 2022-11 amending Hesperia Municipal Code Chapter 2.20 reg
arding the line of succession in the direction of emergency services.

Sponsors: Community Relations Specialist Jennifer Colby

PUBLIC HEARING

7. Consideration of the Amendment to Title 1 related to Police Multiple Response/Firework Fees and Amendment to the City
-wide Fee Schedule and Bail Schedule Related to Police Multiple Response/Firework Fees
Recommended Action:

It is recommended that the City Council, Board of Directors for the Hesperia Water District, Board of Directors for the Hesperia Housing Author
ity, and the Commissioners of the Community Development Commission introduce and place on first reading Ordinance No. 2022-12 amending Title 1 of the Hesperia Municipal Code related to Police Multiple Response/Firework fees; adopt Joint Resolution No. 2022-62, Resolution No. HWD 2022-14, Resolution No. HHA 2022-07, and Resolution No. HCDC 2022-04 amending the City-wide fee schedule related to the fees for the Multiple Response Program; and adopt Resolution No. 2022-63 amending the City-wide bail schedule related to prohibited firework fees.

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

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

8. Development Code Amendment DCA22-00003; Applicant: City of Hesperia; Area affected: City-wide Recommended Action:

The Planning Commission recommends that the City Council introduce and place on first reading Ordinance No. 2022-13 ap
proving Development Code Amendment DCA22-00003 modifying development standards associated with Accessory Dwelling Units (ADUs).

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

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

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City of Hesperia

9. Appeal to the City Council (APP22-00001); Applicant Pacific Communities Builder; APNs: 0405-042-23 Recommended Action:

It is recommended that the City Council adopt Resolution No. 2022-64, denying appeal APP22-00001 and upholding the Planning Comm
ission and Development Review Committee (DRC) denial of a third extension of time for Tentative Tract No. 17243 (TTE22-00001).

Sponsors: Senior Planner Ryan Leonard
Thomas Zimmerman spoke in opposition of the resolution during the public comment period.

Ron Freeman spoke in opposition of the resolution during the public comment period.

A motion was made by Gregg, seconded by Holland that this item be approved. The motion carried by the following vote:

Aye: 4 -
Bird, Holland, Gregg and Bennington
Nay: 1 - Swanson

COUNCIL COMMITTEE REPORTS AND COMMENTS
Council Member Swanson gave an update on attendance at the SBCTA Mountain Desert meeting where they discussed signal timing and funding for improvements to HWY 138, commented on interest in the condition of the VVWRA plant in the City, reclaimed water availability, recent attendance at the Tri-Agency meeting, statements by public commenters on cannabis, her support of legal business in the City, traffic safety at stop signs, her daughter being recognized as a “Woman of Distinction”, and wished her mother a happy 93 rd birthday.

Council Member Bird commented on public speakers first amendment right to speak, his moral indignation, historical cannabis ballot measures, Federal, versus State, versus City, laws on cannabis, putting cannabis use on a future ballot measure in the City, supporting the citizens choice in approval of Measure N, and traffic safety at stop signs.

Council Member Gregg commented on traffic safety solutions, cannabis use as a future ballot measure in the City, National Night Out turn out, thanked Sheriff's, Fire and City staff for their attendance, the Farmer's Market in the Civic Park on Tuesdays, recognition of the Desert Recovery Group, the changing weather and thanked Public Works staff in response to flooding.

Mayor Pro Tem Holland commented on traffic safety, traffic enforcement, incorporating stop sign enforcement into the "Every Fifteen Minutes" program in local High Schools, public comments on the City Manager, his vote in a previous Council's decision on cannabis business within the City, public comments on the City and City Council, public comments on speaking limits, his pride in our Sheriff's and Fire departments reputation, and apologized to the City Manager for unwarranted accusations by the public.

Mayor Bennington commented on public comments in regards to her knowledge of the City, returning public commenters calls, her stance on adult use cannabis, acknowledged her parents in the audience, asked for an update on VVWRA progress with reclaimed water, recent attendance at Valley Morning Insight where Congressman Obernolte spoke, attendance at the recent Planning Commission Meeting, new tenants at the former K Mart site, attendance at the Blue Ribbon Breakfast honoring Detective Anthony Alvarez, Deputy Joel Chanceless and Deputy Curtis Bennington as Deputies of the Year, future attendance at the CAL Cities Desert Mountain region and MDAQMD meetings, thanked City staff, Sheriff's and Fire staff, recognized Hesperia City staff as the best City staff, and thanked Allison Lee for her attendance..

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City of Hesperia

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
None

ADJOURNMENT
The meeting was adjourned in honor of Council Member Swanson’s mother’s and Council Member Bird’s birthdays
_____________________________
Erin Baum,
Assistant City Clerk

Page 18 ends

City of Hesperia

STAFF REPORT

DATE: August 15, 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: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
Anne Duke, Deputy Finance Director
Jonathan Settle, Accountant

SUBJECT: Warrant Run Report (City – Successor Agency – Housing Authority – Community Development Commission – Water)

RECOMMENDED ACTION

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

BACKGROUND

The Warrant Run totals represented below are for th e period July 1 , 2023, through July 14, 2023.

The wire amount total is as follows:

 $568,901.39 to US Bank for 2023 Refunding Lease Revenue Bonds

ATTACHMENT(S)

1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $3,136,138.30 $338,637.67 $568,901.39 $4,043,677.36 Successor Agency 0.00 0.00 0.00 0.00
Housing Authority 0.00 225.06 0.00 225.06
Community Development Commission 0.00 0.00 0.00 0.00
Water 1,825,141.91 147,360.46 0.00 1,972,502.37
Totals $4,961,280.21 $486,223.19 $568,901.39 $6,016,404.79

Page 19 ends

YEAR-TO PRIOR FY YTD

W/E W/E WARRANT DATE DATE
FUND # FUND NAME 7/7/2023 7/14/2023 TOTALS Wires TOTALS * TOTALS Accounts Payable
100 GENERAL 56,028.69$ 2,004,928.07$ 2,060,956.76$ -$ 2,060,956.76$ 339,032.64$ 105 PENSION OBLIGATION TRUST -$ -$ -$ -$ -$ -$
106 OPEB TRUST -$ -$ -$ -$ -$ -$
200 HESPERIA FIRE DISTRICT -$ -$ -$ -$ -$ -$
204 MEASURE I - RENEWAL 18.57$ -$ 18.57$ -$ 18.57$ 40,056.65$ 207 LOCAL TRANSPORT-SB 325 -$ 487.50$ 487.50$ -$ 487.50$ 614.18$ 209 GAS TAX-RMRA -$ -$ -$ -$ -$ -$
210 HFPD (PERS) -$ -$ -$ -$ -$ -$
251 CDBG 14,033.38$ 2,805.50$ 16,838.88$ -$ 16,838.88$ 7.44$ 254 AB2766 - TRANSIT -$ -$ -$ -$ -$ -$
256 ENVIRONMENTAL PROGRAMS GRANT -$ 1.50$ 1.50$ -$ 1.50$ 39.51$ 257 NEIGHBORHOOD STABILIZATION PROG -$ -$ -$ -$ -$ -$ 262 SB 1383 LOCAL ASSISTANCE GRANT -$ -$ -$ -$ -$ -$ 263 STREETS MAINTENANCE 30,917.88$ 52,068.88$ 82,986.76$ -$ 82,986.76$ 41,993.46$ 300 DEV. IMPACT FEES - STREET -$ -$ -$ -$ -$ -$
301 DEV. IMPACT FEES - STORM DRAIN -$ -$ -$ -$ -$ 17,460.50$ 302 DEV. IMPACT FEES - FIRE -$ -$ -$ -$ -$ -$
303 DEV. IMPACT FEES - POLICE -$ -$ -$ -$ -$ -$
304 DEV. IMPACT FEES - PUBLIC WKS. -$ -$ -$ -$ -$ -$ 306 DEV. IMPACT FEES - 2018-STREETS -$ 66,779.06$ 66,779.06$ -$ 66,779.06$ 110,940.66$ 312 DIF 2018-POLICE FACILITIES -$ -$ -$ -$ -$ -$
313 DIF A-04 DRAINAGE -$ -$ -$ -$ -$ -$
396 DEVELOPMENT IMPACT -$ -$ -$ -$ -$ -$
399 FEMA-1203-DR (DISASTER) -$ -$ -$ -$ -$ -$
400 2004 STREETS -$ -$ -$ -$ -$ -$
401 CITY DEBT SERVICES -$ -$ -$ -$ -$ -$
402 WATER RIGHTS ACQUISITION -$ -$ -$ -$ -$ -$
403 2013 REFUNDING LEASE REV BONDS -$ -$ -$ 568,901.39$ 568,901.39$ -$ 501 CFD 91-3 BELGATE -$ -$ -$ -$ -$ -$
504 CITY WIDE STREETS - CIP -$ 127,544.13$ 127,544.13$ -$ 127,544.13$ 321,648.88$ 509 CITY FACILITIES CIP -$ -$ -$ -$ -$ -$
800 EMPLOYEE BENEFITS 220,305.24$ 557,099.90$ 777,405.14$ -$ 777,405.14$ 382,001.11$ 801 TRUST/AGENCY -$ -$ -$ -$ -$ 125,212.02$
802 AD 91-1 AGENCY -$ -$ -$ -$ -$ -$
804 TRUST-INTEREST BEARING -$ 3,120.00$ 3,120.00$ -$ 3,120.00$ 9,467.50$ 807 CFD 2005-1 -$ -$ -$ -$ -$ -$
808 HFPD (TRANSITION) -$ -$ -$ -$ -$ -$
815 PLAN REVIEW TRUST - FRONTIER -$ -$ -$ -$ -$ -$ CITY 321,303.76$ 2,814,834.54$ 3,136,138.30$ 568,901.39$ 3,705,039.69$ 1,388,474.55$ 163 REDEVELOP OBLIG RETIREMENT-2018 -$ -$ -$ -$ -$ -$ SUCCESSOR AGENCY -$ -$ -$ -$ -$ -$
370 HOUSING AUTHORITY -$ -$ -$ -$ -$ 7.44$
HOUSING AUTHORITY -$ -$ -$ -$ -$ 7.44$
170 COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ -$ -$ 700 WATER OPERATING 49,765.68$ 1,390,696.22$ 1,440,461.90$ -$ 1,440,461.90$ 405,084.67$ 701 WATER CAPITAL -$ -$ -$ -$ -$ -$
710 SEWER OPERATING 364,446.33$ 1,675.80$ 366,122.13$ -$ 366,122.13$ 307,604.62$ 711 SEWER CAPITAL -$ 14,902.50$ 14,902.50$ -$ 14,902.50$ -$ 713 SEWER CAPITAL REHAB AND REPLACE -$ -$ -$ -$ -$ -$ 720 RECLAIMED WATER OPERATIONS 3,528.12$ 127.26$ 3,655.38$ -$ 3,655.38$ 1,072.42$ WATER 417,740.13$ 1,407,401.78$ 1,825,141.91$ -$ 1,825,141.91$ 713,761.71$ ACCOUNTS PAYABLE TOTAL 739,043.89$ 4,222,236.32$ 4,961,280.21$ 568,901.39$ 5,530,181.60$ 2,102,243.70$ REG. PAYROLL
City 338,637.67$ -$ 338,637.67$ -$ 338,637.67$ 284,273.37$ Housing Authority 225.06$ -$ 225.06$ -$ 225.06$ 193.08$ Water 147,360.46$ -$ 147,360.46$ -$ 147,360.46$ 111,113.23$ PAYROLL TOTAL 486,223.19$ -$ 486,223.19$ -$ 486,223.19$ 395,579.68$ City of Hesperia

WARRANT RUNS
07/01/2023 - 07/14/2023
*No payments were issued on July 1, 2022.

Attachment 1

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City of Hesperia

STAFF REPORT

DATE:

TO:

FROM:

BY:

August 15, 2023

Mayor and Council Members
Rachel Molina, City Manager
Nathan Freeman, Director of Development Services
Mike Hearn, Deputy Director of Community Development
Maricruz Montes, Senior Office Specialist
SUBJECT: Amendment to Contract with JAS Pacific, Inc.

RECOMMENDED ACTION
It is recommended that the City Council authorize the City Manager to approve an amendment to the existing contract with JAS Pacific, Inc. (JAS) for an additional $163,404 for a revised not-to- exceed contract amount of $483,404 for supplemental contract inspection services.

BACKGROUND
The Building and Safety Program of the Development Services Department is responsible for providing inspections on all construction projects throughout the City. Supplemental c ontract inspection services are essential to keep pace with development in lieu of hiring additional staff to absorb the increased workload. These contract services include, but are not limited to, the performance of inspections of residential, commercial, industrial buildings and structures, structural framing and foundations, electrical plumbing, mechanical systems, roofing, photovoltaic, and grading.

ISSUES/ANALYSIS
In 2021, the City executed a three-year agreement with JAS in the amount not-to-exceed $125,000 to provide supplemental contract inspection services . In June of 2 022, the City Council approved an amendment to JAS’ contract to increase the contract amount by an additional $195,000. While the existing fee schedule will be maintained, additional contract authority is needed to continue inspection services through the end of Fiscal Year (FY) 2023-24.

A Request for Bids (RFB) for FY 2024-25 supplemental c ontract inspections services will be conducted in spring 2024, and a contract will be presented for Council’s consideration in June 2024.

FISCAL IMPACT
Funding in the amount of $50,000 is included in the FY 2023 -24 Operating Budget and a fourth quarter budget amendment will be requested at the end of the fiscal year if budget savings are not otherwise available.

ALTERNATIVE(S)

1. Provide alternate direction to staff.

ATTACHMENT(S)
None.

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THIS PAGE LEFT INTENTIONALLY BLANK

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City of Hesperia

STAFF REPORT

DATE: August 15, 2023
TO: Chair and Board Members, Hesperia Water District

FROM: Rachel Molina, City Manager
BY: Jeremy McDonald, Director of Public Works
Robert Worby, Fleet/Warehouse Supervisor

SUBJECT: Vehicle Procurement – One Heavy-Duty Truck

RECOMMENDED ACTION

It is recommended that the Board of Directors of the Hesperia Water District authorize the City Manager to approve the procurement of one heavy-duty 2023 Chevrolet Silverado 2500 truck for the Production Program , awarding the bid to Victorville Chevrolet/Cadillac, and enter into an agreement for the not-to-exceed amount of $58,020.

BACKGROUND

Vehicles are periodically reviewed to maintain an optimal operating fleet. Vehicles that exceed the average useful life and have higher than expected lifetime maintenance costs are recommended for replacement. Long-term maintenance costs are lowered by replacing the fleet on a regular basis. Other fleet replacement benefits include lower fuel expenditures and improved occupant safety.

ISSUES/ANALYSIS

The Public Works Division released a formal request for bid (RFB) 2023-24-002 on July 10, 2023 and solicited bids from vendors both locally and out of the area to maximize bid response. A public bid opening was held on July 20, 2023, with one response received. Vendors who did not respond include Victorville Motors, Fairview Ford , Sunland Ford , and Sunrise Ford. Staff recommends awarding the bid to Victorville Chevrolet/Cadillac who has been deemed to be the lowest responsive/responsible vendor.

FISCAL IMPACT

Funding has been included in the Fiscal Year 2023-24 Operating Budget.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Bid comparison

Page 23 ends

Item
No. UOM Qty
1 EA 1
2 EA 1
RFB 2023-24-002 One Heavy-Duty Truck
Formal Bid Result
Bid Comparison Type: Taxable
Bid Comparison Completed By: Robert Worby
Date: 7/20/2023
Victoville Chevrolet / Cadillac
Victorville, CA
Description Bidder Part# Unit Cost Extended Amount
2023 Chevrolet Silverado 2500 Regular Cab 2WD With Harbor 8 N/A $53,720.00 $53,720.00 Foot Utility Body Exempt Registration/ Document Fee N/A $118.00 $118.00
Sub-Total Before Sales Tax $53,838.00
Sales Tax (7.75%) $4,172.45
Bid Amount (with tax) $58,010.45
Tire Fee (not subject to Sales Tax per Cal
BOE) $8.75
TOTAL BID $58,019.20
Submitted Bid Amount $58,016.86
Difference ($2.33)
Sunrise Ford, Victorville Motors, Sunland Ford, and Fairview Ford Did Not Provide A Bid.

Attachment 1

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City of Hesperia

STAFF REPORT

DATE: August 15, 2023
TO: Chair and Board Members, Hesperia Water District

FROM: Rachel Molina, City Manager
BY: Jeremy McDonald, Director of Public Works
Marc Morales, Management Analyst

SUBJECT: Contract with Tesco Controls, Inc. for SCADA Upgrades

RECOMMENDED ACTION

It is recommended that the Board of Directors of the Hesperia Water District (District) authorize the City Manager to enter into an agreement with Tesco Controls, Inc. in an amount of $394,635 for hardware and software upgrades, $162,855 for radio transceivers, and a contingency of $25,410 for a total not-to-exceed amount of $582,900 for upgrades to the Supervisory Control and Data Acquisition (SCADA) system.

BACKGROUND

The District has seventeen (17) well sites, six (6) booster stations, and fourteen (14) reservoirs that provide water supply and storage to approximately 28,000 service connections throughout the City. To control and monitor the water supply, storage, and distribution, a SCADA system is in place. SCADA is a vital aspect of the District’s production, distribution, and sewer system.

SCADA is an automated and programmable system that continuously monitors and controls water operations by starting and stopping pumps that fill reservoirs and water pressures. In addition, the SCADA system sends alerts to operators via text message and/or phone call of alarm conditions such as critical reservoir levels, pressure fluctuations, or intrusions into the well site or booster station buildings.

ISSUES/ANALYSIS

After a review of the SCADA system by Tesco Controls, Inc., two components within the system require upgrades due to being obsolete and no longer supported, which are the hardware and software that host the SCADA system and radio transceivers for communications. The hardware and software upgrades will include redundant host servers, data s torage devices, workstation computers, Windows operating system, and virtualized software packages. This hardware and software upgrade will provide a secure, robust, and reliable system that will be adaptable for future utilization.

This project will also include an upgrade to the master radio station unit (1) and radio transceivers (19) throughout the water distribution system. These radios transmit real -time critical data and alarms to the SCADA system and operations staff. This is an essential function of the system as the well sites, booster stations, and reservoirs are in various locations throughout the City.

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Staff Report to the Board Members of the Hesperia Water District Contract with Tesco Controls, Inc, for SCADA Upgrades
August 15, 2023

Finally, this request is for a sole source exemption for Tesco Controls, Inc. to perform the upgrade to the SCADA system where “the commodity or service is required to match or be compatible with other furnishings, material, or equipment presently on hand and is to be purchased from the supplier of such on -hand items.” Tesco Controls, Inc. has been the only company to provide SCADA system materials, service, programming, and support for the District since 1987.

FISCAL IMPACT

Funding has been included in the Fiscal Year 2023-24 Operating Budget.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENTS

None.

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City of Hesperia

STAFF REPORT
DATE: August 1, 2023
TO: Mayor and Council Members
FROM: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
SUBJECT: Public hearing, landowner election, and actions related to formation of Community Facilities District No. 2023-1 (Silverwood Maintenance and Services)

RECOMMENDED ACTION
It is recommended that the City Council: 1) Conduct the public hearing and consider written and oral protests; 2) Adopt Resolution No. 2023-55 of formation of a Community Facilities District and Future Annexation Area; 3) Adopt Resolution No. 2023-5 3 calling a special landowner election for a community facilities district, and direct the City Clerk to complete the landowner elections; 4) Adopt Resolution No. 2023-5 4 declaring the results of the special landowner election and, if the election is successful, direct recording of Notice of Special Tax Lien; and 5) Introduce Ordinance No. 2023-1 1 levying special taxes within the Community Facilities District (including any territory that annexes into the Community Facilities District from the Future Annexation Area).

BACKGROUND
The Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311 and following) (the “Act”) contains the statutory framework pursuant to which the City of Hesperia (the “City”) or other local agencies may form a community facilities district (“CFD”) for the purpose of financing certain authorized public services or maintenance. A CFD may finance such services or maintenance through the levy of special taxes within the geographic boundaries of the CFD. Additionally, to the extent a CFD is formed to pay for public facilities, bonds secured by such special taxes may be issued for a CFD. No bonds may be issued for a CFD formed to fund services. The property owners have filed petitions requesting the formation of the CFD.

In 2022, the City and its consultant NBS completed the Fiscal Impact Analysis (FIA) for the Silverwood Development. This analysis identified the fiscal impacts of the new development to the City. Additionally, the study looked to determine a funding mechanism for enhanced public safety services as well as funding for enhanced roadway maintenance services and trail maintenance for future Silverwood development.

To mitigate the negative fiscal impacts associated with these enhanced services, th e City is currently considering the formation of a CFD to fund maintenance and associated services related to the new Silverwood development. The City adopted Local Goals and Policies related to the use of CFDs at the April 1, 2008, City Council meeting as Resolution No. 2008-032, as required by the Act.

A petition was filed by the property owner, Tapestry Development Phase I LLC, requesting the City Council undertake proceedings under the Act and waive all applicable election notices and

SECOND READING AND ADOPTION

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Page 2 of 5 ends

Staff Report to the Mayor and Council Members
Public hearing, landowner election, and actions related to formation of a CFD.

August 1, 2023
waiting periods to expedite the completion of the district formation. On June 20, 2023, the City Council adopted a Resolution of Intention to fo rm the CFD and the Future Annexation Area, approving the Rate and Method of Apportionment of Special Tax ("RMA") for the CFD, calling a public hearing, and directing the Assistant City Manager to prepare and file with the City Clerk a CFD Report describing the services that will be provided by the CFD and an estimate of the fair and reasonable costs to provide the services and incidental expenses associated with the CFD.

ISSUES/ANALYSIS
Following tonight’s public hearing, the City Council may establish the CFD, and the Future Annexation Area, and call for a special landowner election. The property owner will vote on: (1) the levy of the special taxes on taxable property in the CFD pursuant to the RMA; and (2) the appropriations limit for the CFD.

The proposed proceedings for the CFD will establish a Future Annexation Area that coincides with the boundary of the Silverwood Specific Plan Area in order to allow for streamlined annexation of additional properties' zones into the CFD in the future. Parcels within the Future Annexation Area will be annexed to the CFD only with the unanimous approval of the owner of the parcels, as described in the Resolution of Formation, without further public hearings or additional proceedings.

Rate and Method of Apportionment
The Resolution of Intention included a description of the RMA. Pursuant to the RMA, the proposed special tax is to be levied on all taxable, non-exempt parcels within the CFD boundary.

Specifically, the RMA includes proposed special taxes for various land use categories as shown below. The RMA also includes additional details on inflationary increases for special taxes, procedures for appeals, exemptions, and other relevant information . The developer will be utilizing BOLD Financing Bonds under a separate CFD, CFD No. 2023 -11 (City of Hesperia – Silverwood), of which $200 per Unit will be allocated to the City for a total of $600 per Unit (for Non-Age Qualified Single -Family Detached Prop erty). The RMA includes transition language once the CMFA CFD No. 2023-11 Bonds have been fully repaid and the District determines that no additional BOLD Financing bonds are to be issued . As a result, the initial maximum special tax rates prior to the t ransition year will be $400 per Unit for Non-Age Qualified Single -Family Detached Property, which is approximately 67% of the $600 maximum special tax rate per Unit as shown in Table 1. Accordingly, all other rates were reduced by approximately 33% in order to determine the maximum special tax rates prior to the transition year as shown in Table 2 , which includes the $400 per Unit from the CFD and $200 per Unit previously issued from BOLD. After the transition year, the Maximum Special Tax for each parcel of Taxable Property will increase as shown in Table 2 below:

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Staff Report to the Mayor and Council Members
Public hearing, landowner election, and actions related to formation of a CFD.

August 1, 2023
TABLE 1 – PRIOR TO THE TRANSITION YEAR

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2023/24*
Land Use Category
Maximum
Special Tax Rate Per
Non-Age Qualified Apartment Property $340.00 Unit
Non-Age Qualified Single-Family Attached Property 360.00 Unit Non-Age Qualified Single-Family Detached Property 400.00 Unit Age Qualified Single-Family Attached Property 360.00 Unit Age Qualified Single-Family Detached Property 380.00 Unit Hotel Property 0.09 BSF
Retail/Restaurant Property 0.14 BSF
Office Property 0.23 BSF
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.

TABLE 2 – COMMENCING IN THE TRANSITION YEAR

MAXIMUM SPECIAL TAX RATES
Land Use Category
Maximum
Special Tax Rate Per
Non-Age Qualified Apartment Property $510.00 Unit
Non-Age Qualified Single-Family Attached Property 540.00 Unit Non-Age Qualified Single-Family Detached Property 600.00 Unit Age Qualified Single-Family Attached Property 540.00 Unit Age Qualified Single-Family Detached Property 570.00 Unit Hotel Property 0.13 BSF
Retail/Restaurant Property 0.21 BSF
Office Property 0.34 BSF
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.

The special taxes set forth in the table on the previous page are proposed to be levied within the boundaries of the CFD alone.

Additionally, the City and the Developer h ave agreed to periodically review the aforementioned rates on the following schedule based on the Developer’s phasing of development:
 After completion of Phase 1
 Prior to the start of Phase 5
 Prior to the start of Phase 6

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Staff Report to the Mayor and Council Members
Public hearing, landowner election, and actions related to formation of a CFD.

August 1, 2023
Next Steps
The City Council will conduct the public hearing. The public hearing provides an opportunity for public inquiry into the formation of the CFD (including the RMA and the proposed services) and the Future Annexation Area. At the conclusion of the public hearing, the City Council is asked to consider and adopt the following resolutions:

1. A Resolution Establishing the Formation of a Community Facilities District and Future Annexation Area

2. A Resolution Calling a Special Election for a Community Facilities District After calling the special election and receiving the sealed ballot, the City Clerk will open and tabulate the ballot and announce the results of the election. The number of votes allocated to the property owner is based on the number of acres; the Act specifies that each p roperty owner in the CFD will be allocated one vote for each acre or portion of an acre of taxable property owned in the CFD. The City Clerk will then complete the election canvass.

Assuming two-thirds of the votes cast at the election are in favor of the ballot measure, the City Council will consider and is asked to adopt the following resolution and introduce the following ordinance:

A Resolution Declaring Results of a Special Landowner Election and Directing the Recording of a Special Tax Lien (the City Clerk's canvass will be attached to this Resolution) and An Ordinance Authorizing the Levy of Special Taxes in Community Facilities District (the "Ordinance").

Following these actions, the City Clerk will record a Notice of Special Tax Lien against the parcels in the CFD within 15 days after the election. The Ordinance authorizes and levies the Special Tax in perpetuity within the CFD (including any properties that annex into the CFD from the Future Annexation Area) in accordance with the RMA. The Ordinance will go into effect 30 days from the date of final passage, which is anticipated for the City Council meeting on August 15, 2023.

FISCAL IMPACT
In order to provide enhanced public safety, roadway and trail maintenance services , the Fiscal Impact Analysis identified the necessary funding amounts by development type . As a policy matter with a goal of not hindering new Silverwood development, the City has determined to set an initial maximum special tax rate of $ 600 for Non-Age Qualified Single -Family Detached Property, which is approximately 70% of the rate identified in the Fiscal Impact Analysis. As so, all other rates were reduced by approximately 30% in order to determine the initial maximum special tax rates.

However as mentioned above, the developer will be utilizing BOLD Financing under a separate community facilities district, CFD No. 2023-11 (City of Hesperia – Silverwood). As a result, the initial maximum special tax rates prior to the transition year will be $400 fo r Non-Age Qualified Single-Family Detached Property, which is approximately 67% of the $600 maximum special tax rate as shown in Table 1 . Accordingly, all other rates were reduced by approximately 33% in order to determine the maximum special tax rates pr ior to the transition year as shown in Table

2. The RMA includes transition language once the CMFA CFD No. 2023 -11 bonds have been fully repaid and the District determines that no additional BOLD Financing bonds are to be issued.

After the transition year, the Maximum Special Tax for each parcel of Taxable Property will

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Staff Report to the Mayor and Council Members
Public hearing, landowner election, and actions related to formation of a CFD.

August 1, 2023
increase as shown in Table 3 below. The following table includes the estimated budget to mitigate negative fiscal impacts and provide services as well as the costs to administer the CFD.

TABLE 3 – COMMENCING IN THE TRANSITION YEAR
Description
Maximum
Special Tax
Rate
Anticipated
Number of
Units
Estimate
Special Tax
Revenue
Non-Age Qualified Apartment Property $510.00 1,328 $677,280 Non-Age Qualified Single-Family Attached Property 540.00 1,709 922,860 Non-Age Qualified Single-Family Detached Property 600.00 8,097 4,858,200 Age Qualified Single-Family Attached Property 540.00 454 245,160 Age Qualified Single-Family Detached Property 570.00 4,075 2,322,750 Hotel Property 0.13 270,000 35,100
Retail/Restaurant Property 0.21 750,000 157,500
Office Property 0.34 350,000 119,000
Undeveloped Property 1,844.58 N/A Acre
CFD Administration Costs 6,000
$9,343,850
The cost of formation of the CFD is approximately $38,500, which will be borne by the Petitioners.

ALTERNATIVE(S)

1. The Council may provide alternative direction to Staff.

ATTACHMENT(S)

1. Resolution No. 2023- 55 Establishing the Formation of a Community Facilities District and Future Annexation Area

2. Resolution No. 2023-53 Calling a Special Election for a Community Facilities District

3. Resolution No. 2023-54 Declaring Results of a Special Landowner Election and Directing the Recording of a Special Tax Lien

4. Ordinance No. 2023-11 Authorizing the Levy of Special Taxes in Community Facilities District

5. CFD Special Tax Report

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RESOLUTION NO. 2023-55

A RESOLU

TION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, STATE

OF CALIFORNIA, ESTABLISHING THE FORMATION OF A COMMUNITY

FACILITIES DISTRICT AND FUTURE ANNEXATION AREA

CITY OF

HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)
WHEREAS, on June 20, 2023, this City Council (the “City Council”) of the City of Hesperia (the “City”) adopted Resolution No. 2023-22 entitled “A Resolution of the City Council of the City of Hesperia, State of California, Declaring its Intention to Establish a Community Facilities District a n d Future Annexation Area, and to Authorize the Levy of Special Taxes” (the “Resolution of Intention”), stating its intention to form the “City of Hesperia, Community Facilities District No. 2023-1 (Silverwood Maintenance and Services)” (the “District”) and “City of Hesperia Community Facilities District No. 2023 -1 ( Silverwood Maintenance and Services) (Future Annexation Area)” (the “Future Annexation Area”) , of the City pursuant to the Mello -Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and
WHEREAS, the Resolution of Intention, incorporating a map of the proposed boundaries of the District and Future Annexation Area and stating the services to be provided, the estimated cost of providing such services, and the rate and method of apportionment of the special tax to be levied within the District to pay for the services, is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and

WHEREAS
, under the Resolution of Intention, the Assistant City Manager was directed to make, or cause to be made, and file with the City Clerk a report (the “Report”) in writing, presenting the services to be provided and an estimate of the reasonable cost of providing the services. The Report was prepared and submitted to the City Clerk prior to the public hearing described below; and WHEREAS, the Resolution of Intention called for a public hearing pertaining to the formation of the District and Future Annexation Area and the levy of said special tax to be held on August 1, 2023; and WHEREAS, appropriate notices were mailed, published and/or posted as required by law; and WHEREAS, under the Resolution of Intention, the City Clerk was directed to cause notice of said public hearing to be given by publication one time in a newspaper published in the area of the District and Future Annexation Area, and the City Clerk caused the publication of such notice at least seven (7) days before the date set for said public hearing; and
WHEREAS, on August 1, 2023, this City Council held a noticed public hearing as required by the Act and the Resolution of Intention relative to the pr oposed formation of the District and Future Annexation Area; and WHEREAS, at the public hearing all interested persons desiring to be heard on all matters pertaining to the formation of the District and Future Annexation Area , the services to be provided therein and the levy of such special tax were heard and a full and fair public hearing was held; and

Page 32 ends

WHEREAS, written protests with respect to the formation of the District and Future Annexation Area , the furnishing of specified types of services and the rate and method of apportionment of the special taxes have not been filed with the City Clerk by fifty percent (50%) or more of the registered voters residing within the territory of the District and Future Annexation Area or property owners of one-half (1/2) or more of the area of land within the District and Future Annexation Area and not exempt from the proposed special taxes; and WHEREA
S, the special tax proposed to be levied in the District and Future Annexation Area to pay for the proposed services has not been eliminated by protest by fifty percent (50%) or more of the registered voters residing within the territory of the District and Future Annexation Area or the owners of one -half (1/2) or more of the area of land within the District and Future Annexation Area and not exempt from the special taxes.

NOW, T
HEREFORE, BE IT RESOLVED by the City Council of the City of Hesperia as follows:

1. The f
oregoing recitals are true and correct.

2. The pro
posed special tax to be levied within the District and Future Annexation Area has not been precluded by majority protest pursuant to Section 53324, 53339.6 and/or other applicable provisions of the Act.

3. All prior
proceedings taken by the City Council in connection with the establishment of the District and Future Annexation Area and the levy of the special tax have been duly considered and are hereby found and determined to be valid and in conformity with the requirements of the Act. The City Council has heretofore adopted Local Goals and Policies for Community Facilities Districts, and the City Council hereby finds and determines that the District and Future Annexation Area are in conformity with said goals and policies.

4. The c
ommunity facilities district designated as the “ City of Hesperia, Community Facilities District No. 2023-1 (Silverwood Maintenance and Services)” and the future annexation area designated as “City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) (Future Annexation Area)” of the City is hereby established pursuant to the Act.

5. The Dis
trict Report is hereby approved.

6. The b
oundaries of the District and Future Annexation Area, as set forth in the map entitled "Proposed Boundaries of City of Hesperia, Community Facilities District No. 2023-1 ( Silverwood Maintenance and Services) and Future Annexation Area, City of Hesperia, County of San Bernardino County, State of California" heretofore recorded in the San Bernardino County Recorder’s Office on June 27, 2023, in Book 91 at Page 21 as Document 2023-0157304 of Maps of Assessment and Community Facilities Districts, are hereby approved, are incorporated herein by reference, and shall be the boundaries of the District.

Parcels
within the Future Annexation Area may be annexed to the District with the unanimous approval (each, a "Unanimous Approval") of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings or by annexation proceedings permitted by the Act.

7. The t
ype of public services proposed to be funded by the District and Future Annexation Area and pursuant to the Act shall consist of those items shown in Exhibit A hereto and by this reference

Page 33 ends

incorporated herein (the “Services”). It is hereby found and determined that the Services are necessary to meet the increased demands as the result of development occurring in the District and Future Annexation Area.

8. Except
to the extent that funds are otherwise available to the District to pay for the Services, a special tax sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the District, will be levied annually within the District pursuant to the Rate and Method of Apportionment, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as the City Council or its designee shall determine, including direct billing of the affected landowners.

9. The Rat
e and Method of A pportionment of the special tax among the parcels of real property within the District, in sufficient detail to allow each landowner within the District to estimate the maximum amount such owner will have to pay, is shown in Exhibit B attached hereto and h ereby incorporated herein.

10. Territo
ry in the Future Annexation Area will be annexed into the District and a special tax will be levied on such territory only with the Unanimous Approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed into the District. Except to the extent that funds are otherwise available to the District to pay for the Services, a special tax sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non -exempt real property in the Future Annexation Area, is intended to be levied annually within the Future Annexation Area, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this City Council. The City Council hereby determines that the special tax proposed to pay for Services to be supplied within the Future Annexation Area shall be equal to any special tax levied to pay for the same Services in the District, except that a higher or lower tax may be levied within the Future Annexation Area to the extent that the actual cost of providing the Services in the Future Annexation Area is higher or lower than the cost of providing those Services in the District. In so finding, the City Council does not intend to limit its ability to levy a special tax within the Future Annexation Area to provide new or additional services beyond those supplied within the District. The Special Taxes in the original CFD shall be designated as Tax Zone 1. Subsequent annexations may provide for different Zones or the same Zone as provided herein and therein.

11. The Ass
istant City Manager for the City, 9700 Seventh Avenue, City of Hesperia, California, 92345, telephone number (760) 947-1876, is the officer of the City who will be responsible for preparing annually a current roll of the levy of the special tax obligations by assessor’s parcel number and who will be responsible for estimating future levies of the special tax.

12. Upon re
cordation of a notice of special tax lien pursuant to Section 3114.5 of the California Streets and Highways Code, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in the District and this lien shall continue in force and effect until the collection of the special tax by the City ceases.

13. In ac
cordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, of the District is hereby preliminarily established at an amount equal to the $20,000,000 annually, as adjusted by law, commencing Fiscal Year 2023-24 and such appropriations limit shall be submitted to the voters of the District as hereafter provided. Future Annexations to the District will each approve annual appropriations limit increases applicable to such

Page 34 ends

Annexation that will be added to the appropriations limit established at formation and all previously approved annexations to sum to the total appropriations limit for the CFD. The proposition establishing such annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act and the California Constitution.

14. Purs
uant to the provisions of the Act, the proposition of the levy of the special tax and the proposition of the establishment of the appropriations limit specified above shall be submitted to the qualified electors of the District at an election, the time, place and conditions of which election shall be as specified by a separate resolution of this City Council.

15. This R
esolution shall take effect upon its adoption.

ADOPT
ED AND APPROVED by the City Council of the City of Hesperia at a public meeting of said City Council held on the 1st day of August, 2023.

Ayes:

Noe
s:

Abstain:

Absent:
_____________
_______________________
Brigit Bennington, Mayor
Attest:
____________________________________
Erin Baum, Assistant City Clerk

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EXHIBIT A
CITY

OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)

DESCRIPTION OF SERVICES TO BE FINANCED BY THE DISTRICT
Services:

The services to be funded, in whole or in part, by the community facilities district (the “ District”) consist of all services authorized under Section 53313 of the Government Code, including, but not be limited to, police protection services, maintenance of streets, roads, storm drains and trail maintenance (the "Services"). The Services include all direct and incidental costs related to providing for the maintenance of public infrastructure within the area of the District and areas adjacent to or in the vicinity of such areas. The District may fund any of the following related to the Services: furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/ or equipment, apparatus, facilities or fixtures in areas to be maintained, paying the salaries and benefits of personnel necessary or convenien t to provide the Services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the future provision of Services. It is expected that the Services will be provided by the City of Hesperia (the “City”), either with its own employees or by contract with third parties, or any combination thereof.

Administrative Expenses:

The administrative expenses to be funded by the District include the direct and indirect expenses incurred by the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of attorneys, any fees of the County of San Bernardino related to the District or the collection of special taxes, an allocable share of the salaries of the City staff directly related thereto and a proportionate amount of the City’s general administrative overhead related thereto, any amounts paid by the City from its general fund with respect to the District or the services authorized to be funded by the District, and expenses incurred by the City in undertaking action related to properties for which the payment of special taxes is delinquent, and all other costs and expenses of the City in any way related to the District.

Other:

The incidental expenses that may be funded by the District include, in addition to the administrative expenses identified above, the payment or reimbursement to the City of all costs associated with the establishment and administration of the District.

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EXHIBIT B

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. CFD 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX

The following pages contain the Rate and Method of Apportionment of Special Tax.

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City of Hesperia
Co
mmunity Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
CI

TY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)
A Special Tax, as hereinafter defined, shall be levied and collected in City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) (“CFD No. 2023-1”) each Fiscal Year commencing in Fiscal Year 2023/24, in an amount determined by the application of the procedures below.

All Taxable Property, as hereinafter defined, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” or “ADU” means all Assessor’s Parcels of Residential Property for which a building permit(s) has been issued for an “Accessory Dwelling Unit” as defined in in California Government Code Section 65852.2(j)(1), as may be amended from time to time, that is accessory to a primary Unit. The ADU may be located on the same Assessor’s Parcel as the primary Unit or on a separate Assessor’s Parcel. For purposes of clarification, where an ADU and primary Unit are on the same Assessor’s Parcel, the ADU located on such Assessor’s Parcel is considered a separate Unit from the primary Unit on such Assessor’s Parcel for purposes of the Special Tax and both Units will be taxed. Should an Assessor’s Parcel contain only an ADU, such Assessor’s Parcel will be taxed as an ADU Unit only.
"Acre” or “Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map. In the event that the Assessor’s Parcel Map shows no acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon, in the CFD Administrator’s discretion, the applicable condominium plan, final map, parcel map, Assessor’s Data or by using available spatial data and GIS.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2023-1 including, but not limited to, the following: the costs of computing the Annual Special Tax Requirement and the annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting the Special Tax, including any charges levied by the County Auditor’s Office, Tax Collector’s Office or Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements of the California Government Code (including the Act), including public inquiries regarding the Special Tax; the costs of the City or designee related to levying or an appeal of the Special Tax; and the costs of commencing and pursuing to completion action arising from any delinquent Special Tax in CFD No. 2023-1 or costs of the County tax sale process. Administrative Expenses shall include amounts estimated or advanced by the City or CFD No. 2023-1 for any other administrative

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y of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 2 purposes, including, but not limited to, attorney’s fees. “A
ge Qualified Single-Family Attached Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for construction of a residential structure consisting of two or more Units that share common walls that have separate Assessor’s Parcel Numbers assigned to each Unit (except for a duplex, triplex, or fourplex unit, which may share a Parcel with another duplex, triplex or fourplex Unit(s)), may be purchased by individual homebuyers who are subject to legal discrimination on the basis of age (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), including such residential structures that meet the statutory definition of a condominium project contained in Civil Code Section 4125, according to Assessor’s Data or as otherwise known by the CFD Administrator.
“Age Qualified Single-Family Detached Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for construction of a residential structure consisting of one Unit that does not share a common wall with another Unit, and may be purchased by individual homebuyers who are subject to legal discrimination on the basis of age (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), according to Assessor’s Data or as otherwise known by the CFD Administrator.
“Annual Services Costs” means the respective annual amounts determined by the CFD Administrator as reasonably needed to fund the Authorized Services authorized to be funded by CFD No. 2023-1 for the applicable yearly period.
“Annual Special Tax Requirement” means that amount with respect to CFD No. 2023-1 determined by the CFD Administrator as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual Services Costs, and (3) the amount required to establish or replenish any reserve or replacement fund established in connection with CFD No. 2023-1, and (4) an amount equal to reasonably anticipated delinquencies in the payment of the annual Special Tax based on the delinquency rate for any Special Tax levied in the previous Fiscal Year (or as projected by the CFD Administrator for the first Fiscal Year’s Special Tax levy). “Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Acreage, and Units.
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the County Assessor designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” or “APN” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County Assessor for purposes of identification.

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y of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 3 “Authorized Services” me ans the services provided by the City and authorized to be funded as indicated in the resolution of intention, in whole or in part, by CFD No. 2023-1. “Building Permit” means a permit issued by the City for new construction of a residential or non- residential building on an Assessor’s Parcel.
“Building Square Feet” or “BSF” means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Building Square Feet shall be made by reference to the Assessor’s Data. In the event that the Assessor’s Data does not show Building Square Feet, the Building Permit(s) issued for such residential dwelling unit or other records of the City shall be used as determined by the CFD Administrator. “California Municipal Finance Authority ” means the California Municipal Finance Authority, a California joint powers agency organized under the Joint Exercise of Powers Act of the Government Code of the State of California.
“CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement (including the Annual Services Costs) and providing for the levy and collection of the Special Taxes. “CFD No. 2023-1” means the City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance and Services).
“City” means the City of Hesperia.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2023-

1. “CMFA CFD No. 2023-11” means the California Municipal Finance Authority Community Facilities District No. 2023-11 (City of Hesperia – Silverwood), established by the California Municipal Finance Authority.
“CMFA CFD No. 2023-11 Bonds” means bonds or other Debt (as defined in section 53317 of the Act), whether in one or more series, issued or assumed by or on behalf of the California Municipal Finance Authority for CMFA CFD No. 2023-11 under the Act. “County” means the County of San Bernardino, California. “County Assessor” means the County Assessor of the County. “Developed Property” means, in any Fiscal Year, all Taxable Property in CFD No. 2023-1 for which a Building Permit for new construction was issued by the City prior to June 30 of the preceding Fiscal Year.
“Exempt Property” means all Assessor’s Parcels located within the boundary of CFD No. 2023-1 which are exempt from the Special Tax pursuant to Section E below. “Fiscal Year” means the period starting July 1 and ending on the following June 30th.

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y of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 4 “GIS” or “Geographic Information System” means a system designed to capture, store, m
anipulate, analyze, manage, and present spatial or geographic data. “Hotel Property” means all Assessor’s Parcels within the boundaries of CFD No. 2023-1 that have an establishment providing short-term lodging accommodations and other services for travelers and tourists.
"Maximum Special Tax” means for each Assessor’s Parcel of Taxable Property and each Fiscal Year, the maximum Special Tax, determined in accordance with Section C below, that can be levied in such Fiscal Year on such Assessor’s Parcel of Taxable Property. “Mixed-Use Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for a structure that contains more than one Property Type. For an Assessor’s Parcel of Mixed-Use Property, each Property Type is subject to taxation pursuant to Section C below.
“Non-Age Qualified Apartment Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for construction of a residential structure consisting of attached residential Units under common management that are available for rent, but not purchase, by individuals who are not subject to legal discrimination on the basis of age, according to Assessor’s Data or as otherwise known by the CFD Administrator. “Non-Age Qualified Single-Family Attached Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for construction of a residential structure consisting of two or more Units that share common walls that have separate Assessor’s Parcel Numbers assigned to each Unit (except for a duplex triplex, or fourplex unit, which may share a Parcel with another duplex, triplex or fourplex Unit(s)), and may be purchased by individual homebuyers who are not subject to legal discrimination on the basis of age (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), including such residential structures that meet the statutory definition of a condominium project contained in Civil Code Section 4125, according to Assessor’s Data or as otherwise known by the CFD Administrator.
“Non-Age Qualified Single-Family Detached Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for construction of a residential structure consisting of one Unit that does not share a common wall with another Unit, and may be purchased by individual homebuyers who are not subject to legal discrimination on the basis of age (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), according to Assessor’s Data or as otherwise known by the CFD Administrator.
“Office Property” means all Assessor’s Parcels of Developed Property used as offices, including medical and dental offices and office condominiums, according to Assessor’s Data or as otherwise known to the CFD Administrator.
“Property Owner’s Association” or “POA” means any duly constituted property owner’s

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y of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 5 association. As used in this definition, a Property Owner’s Association includes any home-owner’s ass
ociation, condominium owner’s association, master or sub-association or non-residential owner’s association.
“Property Owner’s Association Property” means any property within the boundaries of CFD No. 2023-1 which is (a) owned by a Property Owner’s Association or (b) designated with specific boundaries and Acreage on a final subdivision map as Property Owner Association Property. “Property Type” means any of the classes listed in Table 1 and Table 2. “Proportionately” means, in any Fiscal Year, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Parcels of Developed Property. “Public Property” means any property within the boundaries of CFD No. 2023-1 which (i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, school districts, or any other public agency. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Tax for CFD No. 2023-1.
“Retail/Restaurant Property” means all Assessor’s Parcels of Developed Property for which a Building Permit(s) was issued for construction of a non-residential structure(s) which has retail food (with beverages) service facilities, or in which general merchandise, hard goods, and other items are sold directly to consumers, or in which services other than professional, clerical, or medical are provided directly to consumers, according to Assessor’s Data or as otherwise known to the CFD Administrator.
“Residential Property ” means Assessor’s Parcels of Developed Property that are Non-Age Qualified Apartment Property, Non-Age Qualified Single-Family Attached Property, Non-Age Qualified Single-Family Detached Property, Age Qualified Single-Family Attached Property, Age Qualified Single-Family Detached Property, or an Accessory Dwelling Unit. “Special Tax(es)” means the annual special tax to be levied by CFD No. 2023-1 in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Annual Special Tax Requirement. “State” means the State of California.
“Tax Escalation Factor” means the percentage change in the Riverside-San Bernardino-Ontario CPI-U Index (or a similar successor index) measured from March of the second preceding Fiscal Year to March of the preceding Fiscal Year (e.g., March 2023 to March 2024 for Fiscal Year 2024/25) that will be applied on July 1 of each Fiscal Year after Fiscal Year 2023/24 to increase the Maximum Special Tax shown in Section C. Should the foregoing CPI cease to be reported, the CFD Administrator will determine a comparable index to use. “Tax Zone” means a mutually exclusive geographic area within which the Special Tax may be levied pursuant to this Rate and Method of Apportionment. All the Taxable Property within CFD

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y of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 6 No. 2023-1 at the time of its formation is within Tax Zone No. 1. Additional Tax Zones may be created when property is annexed to CFD No. 2023-1, and a separate Maximum Special Tax shall be identified for property within each new Tax Zone at the time of such annexation. The Assessor’s Parcels included within a new Tax Zone when such Parcels are annexed to CFD No. 2023-1 shall be identified by Assessor’s Parcel number in the annexation documents at the time of annexation. “Taxable Property” means all the Assessor’s Parcels within the boundaries of CFD No. 2023-1 that are not exempt from the Special Tax pursuant to law or Section E below. “Transition Event” means the Fiscal Year in which the CFD Administrator determines that all CMFA CFD No. 2023-11 Bonds secured by special taxes levied by CMFA CFD No. 2023-11 on property within the applicable Tax Zone have been fully repaid and CMFA CFD No. 2023-11 provides written confirmation that no additional CMFA CFD No. 2023-11 Bonds secured by special taxes levied by CMFA CFD No. 2023-11 on property within the applicable Tax Zone are to be issued. Prior to the Transition Year, the Maximum Special Tax for each parcel of Taxable Property shall be assigned pursuant to Table 1. After the Transition Year, the Maximum Special Tax for each parcel of Taxable Property shall be assigned pursuant to Table 2. “Transition Year” means the first Fiscal Year in which the CFD Administrator determines that the Transition Event occurred in the prior Fiscal Year.
“Undeveloped Property” means all Assessor’s Parcels within the boundaries of CFD No. 2023-1 that are not classified as Developed Property.
“Unit” means (i) for Non-Age Qualified Single-Family Detached Property and Age Qualified Single- Family Detached Property, an individual single family detached residential unit, (ii) for Non-Age Qualified Single-Family Attached Property and Age Qualified Single-Family Attached Property, an individual single family attached residential unit, (iii) for Non-Age Qualified Apartment Property, an individual apartment unit, and (iv) an ADU. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) other research by the CFD Administrator. “Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 2023-1 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act.

B. DETERMINATION OF TAXABLE PARCELS
Each Fiscal Year, the CFD Administrator shall determine the Assessor’s Parcel Numbers for all Taxable Property within CFD No. 2023-1 for the then-current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Special Tax shall be assigned to the new Assessor’s Parcel Numbers pursuant to Section C. The CFD Administrator shall also determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed Property; (iii) the number of Units or Building Square Footage

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y of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 7 each Parcel contains; (iv) the Property Type (e.g., Non-Age Qualified Apartment Property, Hotel Pr
operty, ADU, etc.); and (v) the Annual Special Tax Requirement for the Fiscal Year.

C. MAXIMUM ANNUAL SPECIAL TAX RATES
The Maximum Special Tax for each Assessor’s Parcel of Taxable Property within Tax Zone No. 1 shall be assigned according to the table below.

TABLE 1
MAXIMUM SPECIAL TAX RATES – PRIOR TO THE TRANSITION YEAR TAX ZONE NO. 1
FISCAL YEAR 2023/24*
Property Type
Maximum
Special Tax Rate Per
Non-Age Qualified Apartment Property $340.00 Unit
Non-Age Qualified Single-Family Attached Property 360.00 Unit Non-Age Qualified Single-Family Detached Property 400.00 Unit Age Qualified Single-Family Attached Property 360.00 Unit Age Qualified Single-Family Detached Property 380.00 Unit Hotel Property 0.09 BSF
Retail/Restaurant Property 0.14 BSF
Office Property 0.23 BSF
Mixed-Use Property See Below Unit/BSF
Accessory Dwelling Unit See Below Unit
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rates shown in Table 1 shall be increased by the Tax Escalation Factor.

TA
BLE 2
MAXIMUM SPECIAL TAX RATES – COMMENCING IN THE TRANSITION YEAR TAX ZONE NO. 1
FISCAL YEAR 2023/24*
Property Type
Maximum
Special Tax Rate Per
Non-Age Qualified Apartment Property $510.00 Unit
Non-Age Qualified Single-Family Attached Property 540.00 Unit Non-Age Qualified Single-Family Detached Property 600.00 Unit Age Qualified Single-Family Attached Property 540.00 Unit Age Qualified Single-Family Detached Property 570.00 Unit

Page 44 ends

Cit
y of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 8 Property Type
Maximum
Special Tax Rate Per
Hotel Property 0.13 BSF
Retail/Restaurant Property 0.21 BSF
Office Property 0.34 BSF
Mixed-Use Property See Below Unit/BSF
Accessory Dwelling Unit See Below Unit
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rates shown in Table 2 shall be increased by the Tax Escalation Factor.

1. Mixed-Use Property
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Property Type. The Maximum Special Tax assigned to an Assessor’s Parcel of Mixed-Use Property shall be the sum of the Maximum Special Tax for all property uses located on that Assessor’s Parcel.

2. Accessory Dwelling Unit
The Maximum Special Tax for an Accessory Dwelling Unit shall be calculated as a percentage of the Maximum Special Tax shown in Table 1 prior to the Transition Year or in Table 2 commencing in the Transition Year for the primary Unit to which the ADU is an accessory, based on Building Square Footage. For example, if a primary Unit of Non-Age Qualified Single-Family Detached Property of 2,000 BSF has an ADU of 800 BSF, the Maximum for the ADU Special Tax in Tax Zone No. 1 shall be calculated by the following steps:

1. 800 BSF / 2,000 BSF = 0.40 or 40%

2. $600 Maximum Special Tax per Unit x 40% = $240 Maximum Special Tax for such ADU

3. Maximum Special Tax Increase
On July 1 of each Fiscal Year, commencing on July 1, 2024, the Maximum Special Tax shall be increased by an amount equal to the Tax Escalation Factor.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
All Taxable Property shall be subject to an annual Special Tax as follows.

The Special Tax shall be levied each Fiscal Year as calculated by the CFD Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel of Taxable Property within CFD No. 2023-1 by the method shown below.

First: Determine the Annual Special Tax Requirement.

Page 45 ends

Cit
y of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 9 Second: Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the app
licable Maximum Special Tax.

Notwithstanding the foregoing, under no circumstances will the Special Tax on any Assessor’s Parcel used for private residential purposes be increased by more than 10% as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 2023-1.

E. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment, no Special Tax shall be levied on (i) Property Owner’s Association Property, (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement, (iii) Public Property, except as otherwise provided in Sections 53317.3, 53317.5, and 53340.1 of the Act, (iv) Undeveloped Property.

No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property.

F. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Tax. In addition, during the term of the appeal process, all Special Tax levied must be paid on or before the payment date established when the levy was made.

The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Tax to be modified or changed in favor of the property owner, the CFD Administrator shall determine if sufficient Special Tax revenue is available to make a cash refund. If a cash refund cannot be made, then an adjustment shall be made to credit future Special Taxes.

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

G. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor’s Parcels, or any definition used herein, as long as such correction does not materially affect the levy and collection of Special Taxes. In

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Cit
y of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 10 addition, the interpretation and application of any section of this document shall be at the City’s dis
cretion.

H. MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of CFD No. 2023- 1, and may collect delinquent Special Taxes through available methods.

A Special Tax shall be levied commencing in Fiscal Year 2023/24 to the extent necessary to satisfy the Annual Special Tax Requirement and shall be levied perpetually or for as long as required to satisfy the Annual Special Tax Requirement, as determined by the CFD Administrator.

I. PREPAYMENT OF SPECIAL TAX
The Special Tax may not be prepaid.

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RESOLUTION NO. 2023-53

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

OF CALIFORNIA, CALLING A SPECIAL ELECTION FOR A COMMUNITY

FACILITIES DISTRICT

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)

WHEREAS, this City Council (the “City Council”) of the City of Hesperia (the “City”) adopted a resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Establishing the Formation of a Community Facilities District and Future Annexation Area ” (the “Resolution of Formation”), ordering the formation of the City of Hesperia, Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) (the “District”), defining the public services (the “Services”) to be provided by the District and Future Annexation Area, authorizing the levy of a special tax on property within the District and preliminarily establishing an appropriations limit for the District, all pursuant to the Mello - Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and

WHEREAS, pursuant to the provisions of the Resolution of Formation, the propositions of the levy of the special tax and the establishment of the appropriations limit shall be submitted to the qualified electors of the District as required by the provisions of the Act.

NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Hesperia as follows:

1. The foregoing recitals are true and correct.

2. Pursuant to the Act, the issues of the levy of the special tax and the establishment of the appropriations limit shall be submitted to the qualified electors (as defined below) of the District at a special election called therefore as provided below.

3. This City Council hereby finds that fewer than 12 persons have been registered to vote within the territory of the District for each of the ninety (90) days preceding the close of the public hearing heretofore conducted and concluded by this City Council for the purposes of these proceedings. Accordingly, and pursuant to Section 53326 of the Act, this City Council finds that, for these proceedings, the qualified electors are the landowners within the District and that the vote shall be by such landowners or the ir authorized representatives, each having one vote for each acre or portion thereof such landowner owns in the District as of the close of the public hearing.

4. This City Council hereby calls a special election to consider the issues described in Section 2, above, which special election shall be held on August 1, 2023, and the results thereof canvassed at the meeting of this City Council on August 1, 2023. The City Clerk is hereby designated as the official to conduct the special election and to receive all ballots until the close of business on the special election date . It is hereby acknowledged that the City Clerk has on file the Resolution of Formation, a map of the boundaries of the District, and a sufficient description to allow the City Clerk to deter mine the electors of the District .

The special election shall be conducted by messenger or mail-delivered ballot in accordance with the Act.

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Resolution No. 2023-53

5. As authorized by Section 53353.5 of the Act, the issues described in Section 2 above shall be combined into a single ballot measure, the form of which is attached hereto as Exhibit A is hereby approved.

The City Clerk is hereby authorized and directed to cause a ballot, in substantially the form of Exhibit A, to be delivered to each of the qualified electors of th e District. Each ballot shall indicate the number of votes to be voted by the respective landowner to which the ballot pertains. Each ballot shall be accompanied by all supplies and written instructions necessary for the use and return of the ballot. The envelope to be used to return the ballot shall be enclosed with the ballot, have the return postage prepaid, and contain the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, stating that the voter is the owner of record or authorized representative of the landowner entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot.

6. This City Council hereby further finds that the provisions of Section 53326 of the Act requiring a minimum of 90 days following the adoption of the Resolution of Formation to elapse before the special election are for the protection of the qualified electors of the District . There is on file with the City Clerk a written Petition with Waivers executed by all of the qualified electors of the District allowing for a shortening of the time for the special election to expedite the process of formation of the District and waiving any requirement for notice, analysis, and arguments in connection with the special election .

Accordingly, this City Council finds and determines that the qualified electors have been fully apprised of and have agreed to the shortened time for the special election and waiver of analysis and arguments, and have thereby been fully protected in these proceedings. This City Council also finds and determines that the City Clerk has concurred in the shortened time for the special election. Analysis and arguments with respect to the ballot measures are hereby waived, as provided in Section 53327 of the Act.

7. If two -thirds (2/3) of the votes cast upon the q uestion of levying such special tax and establishing the appropriations limit are cast in favor of the proposition after the canvass of the returns of such special election, the City Council may levy such special tax within the District under the Act in accordance with the approved rate and method of apportionment of special tax. Such special tax may be levied only at the rate and may be apportioned only in the manner specified in the Resolution of Formation, subject to the Act, except that the special tax may be levied at a rate lower than that specified herein and the maximum annual tax rate may be lowered.

8. Under Section 50075.1 of the Government Code, the following accountability provisions shall apply to the special taxes: (a) the operation and maintenance Services and the incidental costs thereof t, all as defined in the Resolution of Formation, shall constitute the specific purpose; (b) the proceeds shall be applied only to the specific purposes identified in (a) above; (c) there shall be created special account(s) or funds(s) into which the proceeds shall be deposited; and (d) there shall be caused to be prepared an annual report as required by Section 50075.3 of the Government Code.

9. This Resolution shall take effect upon its adoption.

Page 49 ends

Resolution No. 2023-53
ADOPTED AND APPROVED by the City Council of the City of Hesperia at a public meeting of said City Council held on the 1st day of August, 2023, by the following vote:

Ayes:

Noes:

Abstain:

Absent:

____________________________________
Brigit Bennington, Mayor

Attest:

____________________________________
Erin Baum, Assistant City Clerk

Page 50 ends

EXHIBIT A

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)

SPECIAL TAX ELECTION
(August 1, 2023)

This ballot is for a special, landowner election. You must return this ballot in the enclosed envelope to the office of the City Clerk of the City of Hesperia no later than the hour of 2:00 p.m. on Tuesday, August 1, 2023, either by mail or in person. A postmark is not sufficient. The City Clerk’s office is located at 9700 Seventh Avenue, Hesperia, California, 92345.

To vote, mark a cross (X) on the voting line after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Hesperia and obtain another.

The estimated maximum amount of money raised annually by this measure is expected to be $9,343,850, in 2023/24 special tax rates, upon full build out of the CFD, based on the rate and duration of the special tax and subject to the tax escalation factor, as set forth in the rate and method of apportionment of special taxes for the CFD.

BALLOT MEASURE : Shall the measure authorizing the City of Hesperia Community Facilities District No. 2023 -1 (Silverwood Maintenance and Services) (the “District”) to annually levy a special tax perpetually solely on lands within the District of up to $510 per unit for Non -Age Qualified Apartment Property, $540 per unit for Non-Age Qualified Single -Family Attached Property, $600 for Non - Age Qualified Single Family Detached Property, $540 for Age Qualified Single -Family Attached Property, $570 for Age Qualified Single-Family Detached Property, $0.13 per building square foot for Hotel Property, $0.21 per building square foot for Retail/Restaurant Property, $0.34 per building square foot for Office Property, other rates for other land uses, as adjusted annually, to pay for Services and authorizing an appropriations limit of $20,000,000, as adjusted by law and future annexations, and all as provided in the Resolution of Formation adopted by the City Council on August 1 , 2023, commencing Fiscal Year 2023-24, be adopted?
YES:

NO:

By execution in the space provided below, you also confirm your written waiver of the time limit pertaining to the conduct of the election and any requirement for analysis and arguments or form of ballot with respect to the ballot measure.

Number of Votes: 784

Property Owner: SILVERWOOD DEVELOPMENT PHASE I, LLC

By: __________________________________________

Property Owned by Property Owner: San Bernardino County Assessor’s Parcel Numbers: 0397-012-36-0000, 0397-052-17-0000, 0397-161-63-0000

Page 51 ends

RESOLUTION NO. 2023-54

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

OF CALIFORNIA, DECLARING RESULTS OF A SPECIAL LANDOWNER

ELECTION AND DIRECTING THE RECORDING OF A SPECIAL TAX LIEN

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)

WHEREAS, this City Council (the “ City Council”) of the City of Hesperia (the “ City”) adopted a resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Establishing the Formation of a Community Facilities District” (the “Resolution of Formation”), ordering the formation of the City of Hesperia, Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) (the “District”), and the Future Annexation Area designated as the “City of Hesperia Community Facilities District No. 2023-1 ( Silverwood Maintenance and Services) (Future Annexation Area)” (the “Future Annexation Area”) defining the public services (the “Services”) to be provided by the District and Future Annexation Area, authorizing the levy of a special tax on property within the Distri ct and preliminarily establishing an appropriations limit for the District, all pursuant to the Mello -Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”); and

WHEREAS, under the provisions of the Resolution of Formation , and pursuant to the resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Calling a Special Election for a Community Facilities District” (the “Resolution Calling the Special Election”) heretofore adopted by this City Council, a measure containing propositions relating to the levy of the special tax and the establishment of the appropriations limit was submitted to the qualified electors of the District as required by the provisions of the Act; and

WHEREAS, pursuant to the terms of the Resolution Calling the Special Election, which are by this reference incorporated herein, the special election has been held and the City Clerk has on file a Canvass and Statement of Results of Special Election, (the “Canvass”) a copy of which is attached hereto as Exhibit A; and
WHEREAS, this City Council has been informed of the Canvass, finds it appropriate and wishes to complete its proceedings for the District.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hesperia as follows:

1. The foregoing recitals are true and correct.

2. The issues presented at the special election were the levy of a special tax within the District and the approval of an annual appropriations limit of not to exceed $20,000,000 as adjusted by law, commencing Fiscal Year 2023-24, annually all pursuant to the Resolution of Formation.

3. The City Council hereby approves the Canvass and finds that it shall be a permanent part of the record of its proceedings for the District. Pursuant to the Canvass, the issues presented at the special election were approved by the qualified electors of the District by more than two-thirds (2/3) of the votes cast at the special election.

Page 52 ends

Resolution No. 2023-54

4. Pursuant to the voter approval, the District is hereby declared to be fully formed with the authority to levy the special taxes and to have the established appropriations limit, all as heretofore provided in these proceedings and in the Act . It is hereby found that all prior proceedings and actions taken by t his City Council with respect to the District were valid and in conformity with the Act.

5. The City Clerk is hereby directed to complete, execute and cause to be recorded in the office of the County Recorder of the County of San Bernardino a notice of special tax lien in the form required by the Act, such recording to occur no later than fifteen (15) days following adoption of this Resolution by the City Council.

6. This Resolution shall take effect upon its adoption.

ADOPTED AND APPROVED the City Council of the City of Hesperia at a public meeting of said City Council held on the 1st day of August, 2023, by the following vote:

Ayes:

Noes:

Abstain:

Absent:

____________________________________
Brigit Bennington, Mayor

Attest:

____________________________________
Erin Baum, Assistant City Clerk

Page 53 ends

EXHIBIT A

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)

CANVASS AND STATEMENT OF RESULT OF SPECIAL ELECTION

I hereby certify that on August 1 , 202 3, I canvassed the returns of the special election held on August 1, 2023, in the City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) of the City of Hesperia and the total number of ballots cast in such special election and the total number of votes cast for and against the measure are as follows and the totals as shown for and against the measure are full, true and correct:

Qualified
Landowner
Votes
Votes
Cast
Votes
YES
Votes
NO
City of
Hesperia

Community Facilities District No. 2023-1
(Silverwood Maintenance and Services)
Special Tax Election, August 1, 2023 784 _____ _____ _____

BALLOT MEASURE : Shall the measure authorizing the City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) (the “District”) to annually levy a special tax perpetually solely on lands within the District of up to $510 per unit for Non -Age Qualified Apartment Property, $540 per unit for Non -Age Qualified Single -Family Attached Property, $600 for Non - Age Qualified Single Family Detached Property, $540 for Age Qualified Single - Family Attached Property, $570 for Age Qualified Single -Family Detac hed Property, $0.13 per building square foot for Hotel Property, $0.21 per building square foot for Retail/Restaurant Property, $0.34 per building square foot for Office Property, other rates for other land uses, as adjusted annually, to pay for Services and authorizing an appropriations limit of $20,000,000, as adjusted by law and future annexations, and all as provided in the Resolution of Formation adopted by the City Council on August 1, 2023, commencing Fiscal Year 2023-24, be adopted?

Yes: __________

No: __________

IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND on August 1, 2023.

By:

City Clerk
City of Hesperia

Page 54 ends
Page 1 of 3 ends

ORDINANCE 2023-11

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HESPERIA,

STATE OF CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL TAXES

IN A COMMUNITY FACILITIES DISTRICT

CITY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE & SERVICES)

WHEREAS, this City Council (the “City Council”) of the City of Hesperia (the “City”) on June 20, 2023, adopted Resolution No. 2023-22 entitled “A Resolution of the City Council of the City of Hesperia, State of California, Declaring its Intention to Establish a Community Facilities District and Future Annexation Area and to Authorize the Levy of Special Taxes” (the “Resolution of Intenti on”) and has conducted proceedings (the “Proceedings”) to establish the City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance & Services ) (the “District”) pursuant to the Mello -Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”) to finance the costs of police protection services, maintenance of streets, roads, storm drains and trail mai ntenance (the “Services”) as provided in the Act; and

WHEREAS, the Resolution of Intention called for a public hearing to be held on August 1, 2023, or as soon thereafter as the matter may be heard; and

WHEREAS, on August 1 , 2023, and as part of the Proceedings, this City Council held a public hearing under the Act relative to the determination to proceed with the formation of the District and Future Annexation Area and the rate and method of apportionment of the special tax (the “Special Tax”) to be levied within the District to finance the Services and, at such hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and Future Annexation Area and the levy of the Special Tax were heard, substantial evidence was presented and considered by this City Council, and a full and fair public hearing was held; and

WHEREAS, upon the conclusion of the hearing, this City Council adopted a resolution entitled “A Resolution of the City Council of the City of Hesperia, State of California, Establishing the Formation of a Community Facilities District and Future Annexation Area ” (the “Resolution of Formation”), whereby the City Council (i) established the District and Future Annexation Area, (ii) authorized the levy of the Special Tax within the District, and (iii) preliminarily established an appropriations limit for the District, all pursuant to the Act; and

WHEREAS, on August 1, 2023, a special election was held among the landowner voters within the District at which the landowner voters approved the proposition relating to the levy of Special Taxes within the District and the establishment of an appropriations limit for the District by the two -thirds vote required by the Act, which approval has been c onfirmed by resolution of this City Council; and

Page 55 ends
Page 2 of 3 ends

WHEREAS, the City Council ordered the recordation with the County Recorder of the County of San Bernardino of a Notice of Special Tax Lien (the “Notice”).

THE CITY COUNCIL OF THE CITY OF HESPERIA DOES ORDAIN AS FOLLOWS:

SECTION 1: By the passage of this Ordinance, the City Council hereby authorizes and levies the Special Tax within the District pursuant to the Act, at the rate and in accordance with the rate and method of apportionment of Special Tax set forth in the Resolution of Formation, which rate and method is by this reference incorporated herein. The Special Tax is hereby levied commencing in fiscal year 2023-2024 and in each fiscal year thereafter to pay for the Services for the District and all costs of administering the District, as contemplated by the Resolution of Formation and the Proceedings. By this Ordinance, the City Council also authorizes and levies the Sp ecial Tax upon any parcels annexed to the District in the Future Annexation Area following such annexation for fiscal year 2023-2024 and in each fiscal year thereafter.

SECTION 2: The Assistant City Manager or designee or employee or consultant of the City is hereby authorized and directed each fiscal year to determine the specific Special Tax to be levied for the next ensuing fiscal year for each parcel of real property within the District, in the manner and as provided in the Resolution of Formation.

SECTION 3: Exemptions from the levy of the Special Tax shall be as provided in the Resolution of Formation and the applicable provisions of the Act. In no event shall the Special Tax be levied on any parcel within the District in excess of the maximum Spe cial Tax specified in the Resolution of Formation.

SECTION 4: All of the collections of the Special Tax shall be used as provided in the Act and in the Resolution of Formation, including, but not limited to, the payment of the costs of the Services, the payment of the costs of the City in administering the District, and the costs of collecting and administering the Special Tax.

SECTION 5: The Special Tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the City Council may provide for other appropriate methods of collection by resolution(s) of the City Council. The Assistant City Manager or designee or employee or consultant of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of San Bernardino in order to effect pro per billing and collection of the Special Tax, so that the Special Tax shall be included on the secured property tax roll of the County of San Bernardino for fiscal year 2023-24 and for each fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated by the City.

SECTION 6: If for any reason any portion of this ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District by a court of competent

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Page 3 of 3 ends

jurisdiction, the balance of this ordinance and the application of the special tax to the remaining parcels within the District shall not be affected.

SECTION 7: The Mayor shall sign this Ordinance and the City Clerk shall cause the same to be published immediately after its passage at least once in a newspaper of general circulation for the City.

SECTION 8: This Ordinance shall become effective thirty (30) days following adoption.

City of Hesperia, a municipal corporation

MAYOR: __________________________________

BRIGIT BENNINGTON, MAYOR

ATTEST: __________________________________

ERIN BAUM, ASSISTANT CITY CLERK

STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO SS:

CITY OF HESPERIA

I, Melinda Sayre, City Clerk of the City of Hesperia, do hereby certify that the foregoing Ordinance had its first reading and was introduced during the public meeting of the City Council on the ___ day of ____, 20__, and had its second reading and was adopted and passed during the public meeting of the City Council on the ___ day of ____, 20__, by the following vote:

Ayes:

Noes:

Abstain:

Absent:

Attest:

____________________________________
Erin Baum, Assistant City Clerk

Page 57 ends

Prepared by:

Report for:

Community Facilities District No. 2023-1
(Silverwood Maintenance and Services)
Special Tax Report
July 2023
Prepared by NBS for and on behalf of the City of Hesperia Attachment 5

Page 58 ends

TABLE OF CONTENTS

IN
TRODUCTION ..................................................................................................................... 1 DESCRIPTION OF SERVICES ..................................................................................................... 2 Services: ............................................................................................................................... 2 Administrative Expenses: .................................................................................................... 2 Other: .................................................................................................................................. 2 COST ESTIMATE ..................................................................................................................... 3 Initial Maximum Amount Proposed to be Expended .......................................................... 3 Anticipated Fiscal Year 2023/24 Maximum Special Tax Revenue ...................................... 3 Annual Maximum Special Tax Escalation ............................................................................ 5 APPENDIX A: PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT AND FUTURE AN
NEXATION AREA ............................................................................................................... 6 APPENDIX B: RATE AND METHOD OF APPORTIONMENT......................................................... 7

Page 59 ends

City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 1

INTRODUCTION
The City Council (the “City Council”) of the City of Hesperia (the “City”) did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”), on June 20th, 2023, adopted Resolution 2023-22 entitled the Resolution of the City Council of the City of Hesperia, State of California, Declaring Its Intention to Establish a Community Facilities District and to Authorize the Levy of Special Taxes (the “Resolution of Intention”). In the Resolution of Intention, the City Council directed the study and filing of a public hearing report (the “Report”) required by Section 53321.5 of the Act for the proposed City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance & Services) (the “District”).

Section 53321.5 of the Act provides that the Report contain the following:

1. A
brief description of the public facilities or services to be provided by the District; and

2. An estimate of the fair and reasonable cost of providing the public facilities or services, including the incidental expenses in connection therewith, any City administration costs, and all other related costs.

For particulars, reference is made to the Resolution of Intention for the District, as previously adopted on June 20, 2023 by the City Council.

NOW, THEREFORE, the Director of Public Works of the City, the appointed responsible officer directed to prepare the Report or cause the Report to be prepared pursuant to the provisions of the Act, does hereby submit this Report containing the following information:

 DESCRIPTION OF SERVICES. A description of the services that the City Council has determined to be eligible to be funded by the District.
 COST ESTIMATE. The initial maximum cost estimate for the District services and the anticipated initial maximum special tax revenue.
 PROPOSED BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT: The proposed boundaries of the District are those properties and parcels in which special taxes may be levied to pay for the costs and expenses of the Services. The proposed boundaries of the District are described on the map of the District.
 RATE AND METHOD OF APPORTIONMENT. The Rate and Method of Apportionment of Special Tax which was included in the Resolution of Intention and approved by this City Council on June 20, 2023.

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City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 2

DESCRIPTION OF SERVICES
The public services and incidental costs authorized to be funded by the special taxes levied in the District consist of the following:

Services:

The services to be funded, in whole or in part, by the community facilities district (the “District”) consist of all s
ervices authorized under Section 53313 of the Government Code, including, but not be limited to, police protection services, maintenance of streets, roads, storm drains and trail maintenance (the "Services"). The Services include all direct and incidental costs related to providing for the maintenance of public infrastructure within the area of the District and areas adjacent to or in the vicinity of such areas. The District may fund any of the following related to the Services: furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/ or equipment, apparatus, facilities or fixtures in areas to be maintained, paying the salaries and benefits of personnel necessary or convenient to provide the Services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the future provision of Services. It is expected that the Services will be provided by the City of Hesperia (the “City”), either with its own employees or by contract with third parties, or any combination thereof.

Administrative Expenses:

The administrative expenses to be funded by the District include the direct and indirect expenses incurred by
the City in carrying out its duties with respect to the District (including, but not limited to, the levy and collection of the special taxes) including the fees and expenses of attorneys, any fees of the County of San Bernardino related to the District or the collection of special taxes, an allocable share of the salaries of the City staff directly related thereto and a proportionate amount of the City’s general administrative overhead related thereto, any amounts paid by the City from its general fund with respect to the District or the services authorized to be funded by the District, and expenses incurred by the City in undertaking action related to properties for which the payment of special taxes is delinquent, and all other costs and expenses of the City in any way related to the District.

Other:

The incidental expenses that may be funded by the District include, in addition to the administrative ex
penses identified above, the payment or reimbursement to the City of all costs associated with the establishment and administration of the District.

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City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 3

COST ESTIMATE
Initial Maximum Amount Proposed to be Expended
The annual budget presented below represents the initial maximum costs for providing the District services as
well as the estimated costs for Fiscal Year 2023/24.

PRIOR TO THE TRANSITION YEAR
District Costs
2023/24 Maximum
Budget Amount
2023/24 Estimated
Budget Amount
District Service & Administration Costs $6,227,300.00 $6,227,300.00 Total: $6,227,300.00 $6,227,300.00

COMMENCING IN THE TRANSITION YEAR
District Costs
2023/24 Maximum
Budget Amount
2023/24 Estimated
Budget Amount
District Service & Administration Costs $9,337,850.00 $9,337,850.00 Total: $9,337,850.00 $9,337,850.00

Anticipated Fiscal Year 2023/24 Maximum Special Tax Revenue The initial maximum annual special tax rates are set forth in the Rate and Method of Apportionment for th
e District. Based upon expected development, the initial maximum annual special tax revenue is as follows:

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City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 4

PRIOR TO THE TRANSITION YEAR

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2023/24*
Land Use Category
Maximum
Special Tax
Rate
Anticipated
Number of
Units
Estimate
Special Tax
Revenue
Non-Age Qualified Apartment Property $340.00 1,328 $451,520.00 Non-Age Qualified Single-Family Attached Property 360.00 1,709 615,240.00 Non-Age Qualified Single-Family Detached Property 400.00 8,097 3,238,800.00 Age Qualified Single-Family Attached Property 360.00 454 163,440.00 Age Qualified Single-Family Detached Property 380.00 4,075 1,548,500.00 Hotel Property 0.09 270,000 24,300.00
Retail/Restaurant Property 0.14 750,000 105,000.00
Office Property 0.23 350,000 80,500.00
$6,227,300.00
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.

COMMENCING IN THE TRANSITION YEAR

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2023/24*
Land Use Category
Maximum
Special Tax
Rate
Anticipated
Number of
Units
Estimate
Special Tax
Revenue
Non-Age Qualified Apartment Property $510.00 1,328 $677,280.00 Non-Age Qualified Single-Family Attached Property 540.00 1,709 922,860.00 Non-Age Qualified Single-Family Detached Property 600.00 8,097 4,858,200.00 Age Qualified Single-Family Attached Property 540.00 454 245,160.00 Age Qualified Single-Family Detached Property 570.00 4,075 2,322,750.00 Hotel Property 0.13 270,000 35,100.00
Retail/Restaurant Property 0.21 750,000 157,500.00
Office Property 0.34 350,000 119,000.00
$9,337,850.00
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rate shall be increased by the Tax Escalation Factor.

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City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 5 Annual Maximum Special Tax Escalation
On July 1 of each Fiscal Year, commencing on July 1, 2024, the maximum annual special tax rate shall be inc
reased by the percentage change in the Riverside-San Bernardino-Ontario CPI-U Index (or a similar successor index) measured from March of the second preceding Fiscal Year to March of the preceding Fiscal Year (e.g., March 2023 to March 2024 for Fiscal Year 2024/25).

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City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 6 APPENDIX A: PROPOSED BOUNDARIES OF THE

COMMUNITY FACILITIES DISTRICT AND FUTURE

ANNEXATION AREA
The boundary map and future annexation area for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor, at the time this Report was prepared, and are incorporated by reference herein and made part of this Report.

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City of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Special Tax Report 7 APPENDIX B: RATE AND METHOD OF APPORTIONMENT
The following pages provide a copy of the District’s Rate and Method of Apportionment approved by the City Council on June 20, 2023.

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City of Hesperia
Co
mmunity Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 1

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX
CI

TY OF HESPERIA
COMMUNITY FACILITIES DISTRICT NO. 2023-1
(SILVERWOOD MAINTENANCE AND SERVICES)
A Special Tax, as hereinafter defined, shall be levied and collected in City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) (“CFD No. 2023-1”) each Fiscal Year commencing in Fiscal Year 2023/24, in an amount determined by the application of the procedures below.

All Taxable Property, as hereinafter defined, unless exempted by law or by the provisions hereof, shall be taxed for the purposes, to the extent and in the manner herein provided.

A. DEFINITIONS
The terms hereinafter set forth have the following meaning:
“Accessory Dwelling Unit” or “ADU” means all Assessor’s Parcels of Residential Property for which a building permit(s) has been issued for an “Accessory Dwelling Unit” as defined in in California Government Code Section 65852.2(j)(1), as may be amended from time to time, that is accessory to a primary Unit. The ADU may be located on the same Assessor’s Parcel as the primary Unit or on a separate Assessor’s Parcel. For purposes of clarification, where an ADU and primary Unit are on the same Assessor’s Parcel, the ADU located on such Assessor’s Parcel is considered a separate Unit from the primary Unit on such Assessor’s Parcel for purposes of the Special Tax and both Units will be taxed. Should an Assessor’s Parcel contain only an ADU, such Assessor’s Parcel will be taxed as an ADU Unit only.
"Acre” or “Acreage" means the land area of an Assessor’s Parcel as shown on an Assessor’s Parcel Map. In the event that the Assessor’s Parcel Map shows no acreage, the Acreage for any Assessor’s Parcel may be determined by the CFD Administrator based upon, in the CFD Administrator’s discretion, the applicable condominium plan, final map, parcel map, Assessor’s Data or by using available spatial data and GIS.
“Act” means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5 of Part 1, Division 2 of Title 5 of the Government Code of the State. “Administrative Expenses” means the following actual or reasonably estimated costs directly related to the administration of CFD No. 2023-1 including, but not limited to, the following: the costs of computing the Annual Special Tax Requirement and the annual Special Tax and of preparing the annual Special Tax collection schedules; the costs of collecting the Special Tax, including any charges levied by the County Auditor’s Office, Tax Collector’s Office or Treasurer’s Office; the costs of the City or designee in complying with the disclosure requirements of the California Government Code (including the Act), including public inquiries regarding the Special Tax; the costs of the City or designee related to levying or an appeal of the Special Tax; and the costs of commencing and pursuing to completion action arising from any delinquent Special Tax in CFD No. 2023-1 or costs of the County tax sale process. Administrative Expenses shall include amounts estimated or advanced by the City or CFD No. 2023-1 for any other administrative

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Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 2 purposes, including, but not limited to, attorney’s fees. “A
ge Qualified Single-Family Attached Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for construction of a residential structure consisting of two or more Units that share common walls that have separate Assessor’s Parcel Numbers assigned to each Unit (except for a duplex, triplex, or fourplex unit, which may share a Parcel with another duplex, triplex or fourplex Unit(s)), may be purchased by individual homebuyers who are subject to legal discrimination on the basis of age (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), including such residential structures that meet the statutory definition of a condominium project contained in Civil Code Section 4125, according to Assessor’s Data or as otherwise known by the CFD Administrator.
“Age Qualified Single-Family Detached Property” means all Assessor’s Parcels of Developed Property for which a building permit was issued for construction of a residential structure consisting of one Unit that does not share a common wall with another Unit, and may be purchased by individual homebuyers who are subject to legal discrimination on the basis of age (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), according to Assessor’s Data or as otherwise known by the CFD Administrator.
“Annual Services Costs” means the respective annual amounts determined by the CFD Administrator as reasonably needed to fund the Authorized Services authorized to be funded by CFD No. 2023-1 for the applicable yearly period.
“Annual Special Tax Requirement” means that amount with respect to CFD No. 2023-1 determined by the CFD Administrator as required in any Fiscal Year to pay: (1) the Administrative Expenses, (2) the Annual Services Costs, and (3) the amount required to establish or replenish any reserve or replacement fund established in connection with CFD No. 2023-1, and (4) an amount equal to reasonably anticipated delinquencies in the payment of the annual Special Tax based on the delinquency rate for any Special Tax levied in the previous Fiscal Year (or as projected by the CFD Administrator for the first Fiscal Year’s Special Tax levy). “Assessor’s Data” means the property characteristic data compiled and maintained by the County Assessor for each Assessor’s Parcel, including, but not limited to, Assessor’s Parcel Number, Acreage, and Units.
“Assessor’s Parcel” or “Parcel” means a lot or parcel shown in an Assessor’s Parcel Map with an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the County Assessor designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” or “APN” means, with respect to an Assessor’s Parcel, that number assigned to such Assessor’s Parcel by the County Assessor for purposes of identification.

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Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 3 “Authorized Services” me ans the services provided by the City and authorized to be funded as indicated in the resolution of intention, in whole or in part, by CFD No. 2023-1. “Building Permit” means a permit issued by the City for new construction of a residential or non- residential building on an Assessor’s Parcel.
“Building Square Feet” or “BSF” means all of the square footage of living area within the perimeter of a residential structure, not including any carport, walkway, garage, overhang, patio, enclosed patio, or similar area. The determination of Building Square Feet shall be made by reference to the Assessor’s Data. In the event that the Assessor’s Data does not show Building Square Feet, the Building Permit(s) issued for such residential dwelling unit or other records of the City shall be used as determined by the CFD Administrator. “California Municipal Finance Authority ” means the California Municipal Finance Authority, a California joint powers agency organized under the Joint Exercise of Powers Act of the Government Code of the State of California.
“CFD Administrator” means an official of the City, or designee thereof, responsible for determining the Annual Special Tax Requirement (including the Annual Services Costs) and providing for the levy and collection of the Special Taxes. “CFD No. 2023-1” means the City of Hesperia Community Facilities District No. 2023-1 (Silverwood Maintenance and Services).
“City” means the City of Hesperia.
“City Council” means the City Council of the City, acting as the legislative body of CFD No. 2023-

1. “CMFA CFD No. 2023-11” means the California Municipal Finance Authority Community Facilities District No. 2023-11 (City of Hesperia – Silverwood), established by the California Municipal Finance Authority.
“CMFA CFD No. 2023-11 Bonds” means bonds or other Debt (as defined in section 53317 of the Act), whether in one or more series, issued or assumed by or on behalf of the California Municipal Finance Authority for CMFA CFD No. 2023-11 under the Act. “County” means the County of San Bernardino, California. “County Assessor” means the County Assessor of the County. “Developed Property” means, in any Fiscal Year, all Taxable Property in CFD No. 2023-1 for which a Building Permit for new construction was issued by the City prior to June 30 of the preceding Fiscal Year.
“Exempt Property” means all Assessor’s Parcels located within the boundary of CFD No. 2023-1 which are exempt from the Special Tax pursuant to Section E below. “Fiscal Year” means the period starting July 1 and ending on the following June 30th.

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Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 4 “GIS” or “Geographic Information System” means a system designed to capture, store, m
anipulate, analyze, manage, and present spatial or geographic data. “Hotel Property” means all Assessor’s Parcels within the boundaries of CFD No. 2023-1 that have an establishment providing short-term lodging accommodations and other services for travelers and tourists.
"Maximum Special Tax” means for each Assessor’s Parcel of Taxable Property and each Fiscal Year, the maximum Special Tax, determined in accordance with Section C below, that can be levied in such Fiscal Year on such Assessor’s Parcel of Taxable Property. “Mixed-Use Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for a structure that contains more than one Property Type. For an Assessor’s Parcel of Mixed-Use Property, each Property Type is subject to taxation pursuant to Section C below.
“Non-Age Qualified Apartment Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for construction of a residential structure consisting of attached residential Units under common management that are available for rent, but not purchase, by individuals who are not subject to legal discrimination on the basis of age, according to Assessor’s Data or as otherwise known by the CFD Administrator. “Non-Age Qualified Single-Family Attached Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for construction of a residential structure consisting of two or more Units that share common walls that have separate Assessor’s Parcel Numbers assigned to each Unit (except for a duplex triplex, or fourplex unit, which may share a Parcel with another duplex, triplex or fourplex Unit(s)), and may be purchased by individual homebuyers who are not subject to legal discrimination on the basis of age (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), including such residential structures that meet the statutory definition of a condominium project contained in Civil Code Section 4125, according to Assessor’s Data or as otherwise known by the CFD Administrator.
“Non-Age Qualified Single-Family Detached Property” means all Assessor’s Parcels of Developed Property for which a Building Permit was issued for construction of a residential structure consisting of one Unit that does not share a common wall with another Unit, and may be purchased by individual homebuyers who are not subject to legal discrimination on the basis of age (which shall still be the case even if the Units are purchased and subsequently offered for rent by the owner of the Unit), according to Assessor’s Data or as otherwise known by the CFD Administrator.
“Office Property” means all Assessor’s Parcels of Developed Property used as offices, including medical and dental offices and office condominiums, according to Assessor’s Data or as otherwise known to the CFD Administrator.
“Property Owner’s Association” or “POA” means any duly constituted property owner’s

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Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 5 association. As used in this definition, a Property Owner’s Association includes any home-owner’s ass
ociation, condominium owner’s association, master or sub-association or non-residential owner’s association.
“Property Owner’s Association Property” means any property within the boundaries of CFD No. 2023-1 which is (a) owned by a Property Owner’s Association or (b) designated with specific boundaries and Acreage on a final subdivision map as Property Owner Association Property. “Property Type” means any of the classes listed in Table 1 and Table 2. “Proportionately” means, in any Fiscal Year, that the ratio of the actual Special Tax levy to the Maximum Special Tax is equal for all Parcels of Developed Property. “Public Property” means any property within the boundaries of CFD No. 2023-1 which (i) is owned by a public agency, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and Acreage on a final subdivision map as property which will be owned by a public agency. For purposes of this definition, a public agency includes the federal government, the State, the County, school districts, or any other public agency. “Rate and Method of Apportionment” means this Rate and Method of Apportionment of Special Tax for CFD No. 2023-1.
“Retail/Restaurant Property” means all Assessor’s Parcels of Developed Property for which a Building Permit(s) was issued for construction of a non-residential structure(s) which has retail food (with beverages) service facilities, or in which general merchandise, hard goods, and other items are sold directly to consumers, or in which services other than professional, clerical, or medical are provided directly to consumers, according to Assessor’s Data or as otherwise known to the CFD Administrator.
“Residential Property ” means Assessor’s Parcels of Developed Property that are Non-Age Qualified Apartment Property, Non-Age Qualified Single-Family Attached Property, Non-Age Qualified Single-Family Detached Property, Age Qualified Single-Family Attached Property, Age Qualified Single-Family Detached Property, or an Accessory Dwelling Unit. “Special Tax(es)” means the annual special tax to be levied by CFD No. 2023-1 in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Annual Special Tax Requirement. “State” means the State of California.
“Tax Escalation Factor” means the percentage change in the Riverside-San Bernardino-Ontario CPI-U Index (or a similar successor index) measured from March of the second preceding Fiscal Year to March of the preceding Fiscal Year (e.g., March 2023 to March 2024 for Fiscal Year 2024/25) that will be applied on July 1 of each Fiscal Year after Fiscal Year 2023/24 to increase the Maximum Special Tax shown in Section C. Should the foregoing CPI cease to be reported, the CFD Administrator will determine a comparable index to use. “Tax Zone” means a mutually exclusive geographic area within which the Special Tax may be levied pursuant to this Rate and Method of Apportionment. All the Taxable Property within CFD

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Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 6 No. 2023-1 at the time of its formation is within Tax Zone No. 1. Additional Tax Zones may be created when property is annexed to CFD No. 2023-1, and a separate Maximum Special Tax shall be identified for property within each new Tax Zone at the time of such annexation. The Assessor’s Parcels included within a new Tax Zone when such Parcels are annexed to CFD No. 2023-1 shall be identified by Assessor’s Parcel number in the annexation documents at the time of annexation. “Taxable Property” means all the Assessor’s Parcels within the boundaries of CFD No. 2023-1 that are not exempt from the Special Tax pursuant to law or Section E below. “Transition Event” means the Fiscal Year in which the CFD Administrator determines that all CMFA CFD No. 2023-11 Bonds secured by special taxes levied by CMFA CFD No. 2023-11 on property within the applicable Tax Zone have been fully repaid and CMFA CFD No. 2023-11 provides written confirmation that no additional CMFA CFD No. 2023-11 Bonds secured by special taxes levied by CMFA CFD No. 2023-11 on property within the applicable Tax Zone are to be issued. Prior to the Transition Year, the Maximum Special Tax for each parcel of Taxable Property shall be assigned pursuant to Table 1. After the Transition Year, the Maximum Special Tax for each parcel of Taxable Property shall be assigned pursuant to Table 2. “Transition Year” means the first Fiscal Year in which the CFD Administrator determines that the Transition Event occurred in the prior Fiscal Year.
“Undeveloped Property” means all Assessor’s Parcels within the boundaries of CFD No. 2023-1 that are not classified as Developed Property.
“Unit” means (i) for Non-Age Qualified Single-Family Detached Property and Age Qualified Single- Family Detached Property, an individual single family detached residential unit, (ii) for Non-Age Qualified Single-Family Attached Property and Age Qualified Single-Family Attached Property, an individual single family attached residential unit, (iii) for Non-Age Qualified Apartment Property, an individual apartment unit, and (iv) an ADU. The number of Units assigned to each Assessor’s Parcel may be determined by (i) referencing Assessor’s Data, (ii) site surveys and physical unit counts, and/or (iii) other research by the CFD Administrator. “Welfare Exempt Property” means, in any Fiscal Year, all Parcels within the boundaries of CFD No. 2023-1 that (a) have been granted a welfare exemption by the County under subdivision (g) of Section 214 of the Revenue and Taxation Code indicated in the Assessor’s Data finalized as of January 1 of the previous Fiscal Year, and (b) are exempt from the Special Tax pursuant to Section 53340(c) of the Act.

B. DETERMINATION OF TAXABLE PARCELS
Each Fiscal Year, the CFD Administrator shall determine the Assessor’s Parcel Numbers for all Taxable Property within CFD No. 2023-1 for the then-current Fiscal Year. To the extent a Parcel or Parcels of Taxable Property are subdivided, consolidated, or otherwise reconfigured, the Maximum Special Tax shall be assigned to the new Assessor’s Parcel Numbers pursuant to Section C. The CFD Administrator shall also determine: (i) the Tax Zone within which each Parcel is located; (ii) which Parcels are Developed Property; (iii) the number of Units or Building Square Footage

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Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 7 each Parcel contains; (iv) the Property Type (e.g., Non-Age Qualified Apartment Property, Hotel Pr
operty, ADU, etc.); and (v) the Annual Special Tax Requirement for the Fiscal Year.

C. MAXIMUM ANNUAL SPECIAL TAX RATES
The Maximum Special Tax for each Assessor’s Parcel of Taxable Property within Tax Zone No. 1 shall be assigned according to the table below.

TABLE 1
MAXIMUM SPECIAL TAX RATES – PRIOR TO THE TRANSITION YEAR TAX ZONE NO. 1
FISCAL YEAR 2023/24*
Property Type
Maximum
Special Tax Rate Per
Non-Age Qualified Apartment Property $340.00 Unit
Non-Age Qualified Single-Family Attached Property 360.00 Unit Non-Age Qualified Single-Family Detached Property 400.00 Unit Age Qualified Single-Family Attached Property 360.00 Unit Age Qualified Single-Family Detached Property 380.00 Unit Hotel Property 0.09 BSF
Retail/Restaurant Property 0.14 BSF
Office Property 0.23 BSF
Mixed-Use Property See Below Unit/BSF
Accessory Dwelling Unit See Below Unit
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rates shown in Table 1 shall be increased by the Tax Escalation Factor.

TA
BLE 2
MAXIMUM SPECIAL TAX RATES – COMMENCING IN THE TRANSITION YEAR TAX ZONE NO. 1
FISCAL YEAR 2023/24*
Property Type
Maximum
Special Tax Rate Per
Non-Age Qualified Apartment Property $510.00 Unit
Non-Age Qualified Single-Family Attached Property 540.00 Unit Non-Age Qualified Single-Family Detached Property 600.00 Unit Age Qualified Single-Family Attached Property 540.00 Unit Age Qualified Single-Family Detached Property 570.00 Unit

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Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 8 Property Type
Maximum
Special Tax Rate Per
Hotel Property 0.13 BSF
Retail/Restaurant Property 0.21 BSF
Office Property 0.34 BSF
Mixed-Use Property See Below Unit/BSF
Accessory Dwelling Unit See Below Unit
*On each July 1, commencing on July 1, 2024, the Maximum Special Tax Rates shown in Table 2 shall be increased by the Tax Escalation Factor.

1. Mixed-Use Property
In some instances, an Assessor’s Parcel of Developed Property may contain more than one Property Type. The Maximum Special Tax assigned to an Assessor’s Parcel of Mixed-Use Property shall be the sum of the Maximum Special Tax for all property uses located on that Assessor’s Parcel.

2. Accessory Dwelling Unit
The Maximum Special Tax for an Accessory Dwelling Unit shall be calculated as a percentage of the Maximum Special Tax shown in Table 1 prior to the Transition Year or in Table 2 commencing in the Transition Year for the primary Unit to which the ADU is an accessory, based on Building Square Footage. For example, if a primary Unit of Non-Age Qualified Single-Family Detached Property of 2,000 BSF has an ADU of 800 BSF, the Maximum for the ADU Special Tax in Tax Zone No. 1 shall be calculated by the following steps:

1. 800 BSF / 2,000 BSF = 0.40 or 40%

2. $600 Maximum Special Tax per Unit x 40% = $240 Maximum Special Tax for such ADU

3. Maximum Special Tax Increase
On July 1 of each Fiscal Year, commencing on July 1, 2024, the Maximum Special Tax shall be increased by an amount equal to the Tax Escalation Factor.

D. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
All Taxable Property shall be subject to an annual Special Tax as follows.

The Special Tax shall be levied each Fiscal Year as calculated by the CFD Administrator. The Annual Special Tax Requirement shall be apportioned to each Parcel of Taxable Property within CFD No. 2023-1 by the method shown below.

First: Determine the Annual Special Tax Requirement.

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Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 9 Second: Levy the Special Tax on each Parcel of Developed Property, Proportionately, up to the app
licable Maximum Special Tax.

Notwithstanding the foregoing, under no circumstances will the Special Tax on any Assessor’s Parcel used for private residential purposes be increased by more than 10% as a consequence of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 2023-1.

E. EXEMPTIONS
Notwithstanding any other provision of this Rate and Method of Apportionment, no Special Tax shall be levied on (i) Property Owner’s Association Property, (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement, (iii) Public Property, except as otherwise provided in Sections 53317.3, 53317.5, and 53340.1 of the Act, (iv) Undeveloped Property.

No Special Tax shall be levied on any Assessor’s Parcel in any Fiscal Year in which such Assessor’s Parcel is classified as Welfare Exempt Property.

F. APPEAL OF SPECIAL TAX LEVY
Any property owner may file a written appeal of the Special Tax with the CFD Administrator claiming that the amount or application of the Special Tax is not correct. The appeal must be filed not later than one calendar year after having paid the Special Tax that is disputed, and the appellant must be current in all payments of the Special Tax. In addition, during the term of the appeal process, all Special Tax levied must be paid on or before the payment date established when the levy was made.

The appeal must specify the reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise the appellant of its determination.

If the property owner disagrees with the CFD Administrator’s decision relative to the appeal, the owner may then file a written appeal with the City Council whose subsequent decision shall be final and binding on all interested parties. If the decision of the CFD Administrator or subsequent decision by the City Council requires the Special Tax to be modified or changed in favor of the property owner, the CFD Administrator shall determine if sufficient Special Tax revenue is available to make a cash refund. If a cash refund cannot be made, then an adjustment shall be made to credit future Special Taxes.

This procedure shall be exclusive and its exhaustion by any property owner shall be a condition precedent to filing any legal action by such owner.

G. INTERPRETATION OF RATE AND METHOD OF APPORTIONMENT
The City may, by resolution or ordinance, interpret, clarify and/or revise this Rate and Method of Apportionment to correct any inconsistency, vagueness, or ambiguity as it relates to the Special Taxes, method of apportionment, classification of Assessor’s Parcels, or any definition used herein, as long as such correction does not materially affect the levy and collection of Special Taxes. In

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Cit
y of Hesperia
Community Facilities District No. 2023-1 (Silverwood Maintenance and Services) Page 10 addition, the interpretation and application of any section of this document shall be at the City’s dis
cretion.

H. MANNER AND DURATION OF SPECIAL TAX
The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes, provided that the City may directly bill the Special Tax, may collect the Special Tax at a different time or in a different manner if needed to meet the financial obligations of CFD No. 2023- 1, and may collect delinquent Special Taxes through available methods.

A Special Tax shall be levied commencing in Fiscal Year 2023/24 to the extent necessary to satisfy the Annual Special Tax Requirement and shall be levied perpetually or for as long as required to satisfy the Annual Special Tax Requirement, as determined by the CFD Administrator.

I. PREPAYMENT OF SPECIAL TAX
The Special Tax may not be prepaid.

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City of Hesperia

STAFF REPORT

DATE: August 15, 2023
TO: Mayor and Council Members

FROM: Rachel Molina, City Manager
BY: Nathan Freeman, Director of Development Services
Edgar Gonzalez, Senior Planner
SUBJECT: Specific Plan Amendment SPLA23-00004; Applicant: Steeno Design Studio, Inc; APN: 3057-121-08

RECOMMENDED ACTION
The Planning Commission recommends that the City Council introduce and place on first reading Ordinance No. 2023-12 approving Specific Plan Amendment SPLA23-00004.

PROJECT SUMMARY

Proposal: Steeno Design Studio, Inc, submitted an application requesting a Specific Plan Amendment to change approximately 4.8 acres of land from Low Density Residential (LDR) to Medium Density Residential (MDR) within the Main Street and Freeway Corridor Specific Plan (Specific Plan).

Location: The property is located at northwest corner of Orange Street and Tamarisk Avenue.

General Plan and Land Uses: The subject parcel and the properties to the west and south are zoned Low Density Residential (LDR) within the Specific Plan. The properties to the north and east are zoned Medium Density Residential (MDR) within the Specific Plan . The subject parcel and the properties to the west and east are currently vacant. The property to the north consists of an apartment complex and the properties to the south consist of single-family residential homes.

Planning Commission Review: On June 8, 2023, the Planning Commission voted 3-0 to forward this item to the City Council with a recommendation for approval. Commissioner Earl Hodson was absent and Commissioner Sophie Steeno recused herself due to a conflict of interest.

ISSUES/ANALYSIS

Land Use: As previously noted, the subject parcel is currently zoned LDR which allows for single- family residential units with a maximum density of 8 units per acre. The size of the subject parcel is approximately 4.8 acres, resulting in approximately 38 potential single-family units, but each parcel is required to comply with the minimum lot size requirement of 7,200 square feet, which reduces the potential units to 29. The applicant is requesting to change the zone to MDR which allows for apartment complexes, condominiums, and townhomes with a density of 8 to 15 units per acre. If the site were to be developed , at the maximum density, it could yield a maximum of 72 units that could be constructed on the site. However, the applicant has in dicated that if the zone change were to be approved, the ultimate development would be similar to the duplex style

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Staff Report to the City Council
SPLA23-00004
August 15, 2023

multi-family development that was recently constructed immediately to the north of the site. The development to the north yielded a density of approximately 11.5 dwelling units per acre.

The proposed MDR designation would be appropriate in the area as other properties nearby have similar designations. The subject parcel, as previously noted, is bounded by land that is zoned MDR to the north and to the east, the property immediately to the north is an existing 56-unit apartment complex, and the property immediately to the east is currently vacant but has the potential to be developed for multi-family in the future. In addition, the subject parcel is located at a corner intersection which is typically the desired transition for a zone to terminate and a different zone to begin.

Moreover, although the City originally planned for the subject parcel to be developed with single- family residential uses, very little interest has been expressed from single family home builders/developers.

Conclusion: The change from Low Density Residential (LDR) to Medium Density Residential (MDR) is appropriate, as it will provide additional opportunities for multi-family housing in an area that is consistent with the surrounding land uses.

FISCAL IMPACT

There are no fiscal impacts identified with this action.

ALTERNATIVE(S)

Provide alternative direction to staff.

ATTACHMENT(S)

1. Ordinance No. 2023-12, with Exhibit “A”

2. Planning Commission Staff Report with attachments

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ORDINANCE NO. 2023-12

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HESPERIA,

CALIFORNIA ADOPTING A SPECIFIC PLAN AMENDMENT TO CHANGE APPROXIMATELY 4.8 ACRES OF LAND FROM LOW DENSITY

RESIDENTIAL TO MEDIU M DENSITY RESIDENTIA L (MDR) WITHIN THE MAIN STREET AND FREEWAY CORRIDOR SPECIFIC PLAN (SPLA23-00004)

WHEREAS, on January 5, 1998, the City Council of the City of Hesperia adopted Ordinance No. 250, thereby adopting the Hesperia Municipal Code; and

WHEREAS, On September 2, 2008, the City Council of the City of Hesperia adopted Ordinance No. 2008-12, thereby adopting the Main Street and Freeway Corridor Specific Plan; and

WHEREAS, the applicant submitted an application for Specific Plan Amendmen t SPLA23- 00004 described herein (hereinafter referred to as the “Application”); and

WHEREAS, the application proposes to change approximately 4.8 acres of land from Low Density Resident ial (L DR) to Medium Density Residential (M DR) within the Main Street and Freeway Corridor Specific Plan; and

WHEREAS, the propo sed MDR designation would be appropriate i n the area as other properties nearby have similar designations. The subject parcel is bounded by land that is zoned MDR to the north and to the east. The property immediately to the north is an existing 56- unit apartment complex and the property immediately to the east is currently vacant but has the potential to be development for multi -family in the future due to existing utilities fronting Orange Street and Tamarisk Avenue. In addition, the subject parcel is at a corner which is typically the desired transition for a zone to terminate and a different zone to begin; and

WHEREAS, although the City originally planned for the subject parcel to be developed with single-family residential uses, very little interest ha s been expressed from single family home builders/developers; and

WHEREAS, the proposed Specif ic Plan Amendment is exempt from the California Environmental Quality Act (CEQA) per Section 15061(b)(3), where it ca n be seen with certainty that there is no si gnificant effect on the environment. The proposed Specific Plan Amendment does not include any development. As future development is proposed, the proposed project will be reviewed independently for CEQA complian ce. In addition , the proposed Specific Plan Amendment would not introduce any new significant environmental impacts that were not previously analyzed in the General Plan Environmental Impact Report; and

WHEREAS, on June 8, 20 23, the Planning Commiss ion of the City of He speria conducted a duly noticed public hearing pertaining to the proposed amendment and concluded said hearing on that date; and

WHEREAS, on August 15, 20 23, the City Council of the City of Hesperia conducted a duly noticed public hea ring pertaining to th e proposed amendment and con cluded said hearing on that date; and

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

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Ordinance No. 2023-12

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

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

Section 2. Based upon substantial evidence presented to the City Council, including written and oral staff reports, the City Council specifically finds that th e proposed Ordinance is consistent with the goals and objectives of the adopted General Plan.

Section 3. Based on the findings and conclusions set forth in this Ordinance, this Council hereby adopts Specific Plan Amendm ent SPLA23-00004, to change approximately 4.8 acres of land from LDR to MDR within the Main Street and Freeway Corridor Specific Plan, as shown on Exhibit “A”.

Section 4. This Ordinance shall take effect thirty (30) days from the date of adoption.

Section 5. The City Clerk shall certify to the adoptio n of this Ordinance an d shall cause the same to be posted in three (3) public places within the City of Hesperia pursuant to the provisions of Resolution No. 2007-101

ADOPTED AND APPROVED on this 15th day of August 2023.

__________________________________ _______________________________ Brigit Bennington, Mayor

ATTEST:

_________________________________________
Erin Baum, Assistant City Clerk

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Ordinance No. 2023-12

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Exhibit “A”

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City of Hesperia

STAFF REPORT
DATE: June 8, 2023
TO: Planning Commission
FROM: Rachel Molina, Assistant City Manager
BY: Ryan Leonard, Senior Planner
Edgar Gonzalez, Associate Planner
SUBJECT: Specific Plan Amendment SPLA23-00004; Applicant: Steeno Design Studio, Inc; APN: 3057-121-08

RECOMMENDED ACTION
It is recommended that the Planning Commission adopt Resolution No. PC -2023-19 recommending that the City Council introduce and place on first reading an ordinance approving SPLA23-00004.

BACKGROUND
Proposal: Steeno Design Studio, Inc, submitted an application requesting a Specific Plan Amendment to change approximately 4.8 acres of land from Low Density Residential (LDR) to Medium Density Residential (MDR) within the Main Street and Freeway Corridor Specific Plan.

Location: The property is located at n orthwest corner of Orange Street and Tamarisk Avenue (Attachment 1).

General Plan and Land Uses: The subject parcel and the properties to the west and south are zoned Low Density Residential (LDR) within the Main Street and Freeway Corridor Specific Plan.

The properties to the north and east are zoned Medium Density Residential (MDR) within the Specific Plan (Attachment 2). The subject parcel and the properties to the west and east are currently vacant. The property to the north consists of an apartment complex and the properties to the south consist of single-family residential homes.

ISSUES/ANALYSIS
Land Use: The subject parcel is currently zoned Low Density Residential (LDR) which currently allows for single-family residential units with a maximum density of 8 units per acre. The size of the parcel is approximately 4.8 acres, resulting in approximately 38 potential single-family units, but each parcel is required to comply with the minimum lot size requirement of 7,200 square feet, which reduces the potential units to 29. The applicant is requesting to change the zone to Medium Density Residential (MDR) which allows for apartment complexes, condominiums and townhomes with a density of 8 to 15 units per acre. If the site were to be developed at the maximum density it would yie ld a maximum of 72 units that could be constructed on the site.

However, t he applicant has indicated that if the zone change were to be approved, the development would be similar to the duplex style multi -family development that was recently

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ATTACHMENT 2

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Staff Report to the Planning Commission
SPLA23-00004
June 8, 2023

constructed immediately to the north of the site. The development to the north yielded a density of approximately 11.5 dwelling units per acre.

The proposed Medium Density Residential (MDR) designation would be appropriate i n the area as other properties nearby have the similar designations. The parcel is bounded by land that is zoned Medium Density Residential (MDR) to the north and to the east. The property immediately to the north is an existing 56-unit apartment complex and the property immediately to the east is currently vacant but has the potential to be development for multi -family in the future due to existing utilities fronting Orange Street and Tamarisk Avenue. In addition, the parcel is at a corner which is typically the desired transition for a zone to terminate and a different zone to begin.

Although the City originally planned for the subject parcel to be developed with single -family residential uses, little interest has ever been expressed from developers. In today’s economy home prices have reached an all-time high along with high interest rates, which has slowed the sale of homes. These economic conditions are a contributing factor to the increased demand for more multi-family developments in the City.

Drainage: Any future development will be required to handle the increase in storm water runoff as a result of the construction of a project. Before the development of the site, the applicant will be required to submit a hydrology study that will be reviewed by the Engineering Department as part of the entitlement application.

Water and Sewer: Any future development has the ability to connect to the existing utilities along Orange Street and Tamarisk Avenue.

Environmental: The proposed Specific Plan Amendment is exempt from the California Environmental Quality Act (CEQA) per Section 15061(b)(3), where it can be seen with certainty that there is no significant effect on the environment.

Conclusion: The Specific Plan Amendment will provide additional opportunities for multi-family housing on an area that is consistent with the surrounding land uses.

ALTERNATIVE(S)

Provide alternative direction to staff.

ATTACHMENT(S)

1. Aerial Photo

2. General Plan Map

3. Resolution No. PC-2023-19

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APPLICANT(S): STEENO DESIGN STUDIO, INC FILE NO(S): SPLA23-00004 LOCATION: NORTHWEST CORNER OF ORANGE STREET

AND TAMARISK AVENUE

APN(S): 3057-121-08
PROPOSAL: CONSIDERATION OF A SPECIFIC PLAN AMENDMENT TO CHANGE APPROXIMATELY 4.8 ACRES OF LAND FROM LOW DENSITY RESIDENTIAL (LDR) TO

MEDIUM DENSITY RESIDENTIAL (MDR) WITHIN THE MAIN STREET AND FREEWAY

CORRIDOR SPECIFIC PLAN
N

AERIAL PHOTO
ATTACHMENT 1

Subject Parcel

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APPLICANT(S): STEENO DESIGN STUDIO, INC FILE NO(S): SPLA23-00004 LOCATION: NORTHWEST CORNER OF ORANGE STREET

AND TAMARISK AVENUE

APN(S): 3057-121-08
PROPOSAL: CONSIDERATION OF A SPECIFIC PLAN AMENDMENT TO CHANGE APPROXIMATELY 4.8 ACRES OF LAND FROM LOW DENSITY RESIDENTIAL (LDR) TO

MEDIUM DENSITY RESIDENTIAL (MDR) WITHIN THE MAIN STREET AND FREEWAY

CORRIDOR SPECIFIC PLAN
N

GENERAL PLAN & ZONING MAP
ATTACHMENT 2

Subject Parcel

ORANGE ST

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RESOLUTION NO. PC-2023-19

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF

HESPERIA, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL

ADOPT A SPECIFIC PLAN AMENDMENT TO CHANGE APPROXIMAT ELY

4.8 ACRES OF LAND FROM LOW DENSITY RESIDENT IAL (LDR) TO

MEDIUM DENSI TY RESIDENTIAL (MDR) WITHIN THE MAIN STREET AND FREEWAY CORRIDOR SPECIFIC PLAN (SPLA23-00004)
WHEREAS, on January 5, 1998, the City Council of the City of Hesperia adopted Ordinance No. 250, thereby adopting the Hesperia Municipal Code; and WHEREAS, On September 2, 2008, the City Council of the City of Hesperia adopted Ordinance No. 2008-12, thereby adopting the Main Street and Freeway Corridor Specific Plan; and WHEREAS, the applicant has submitted an application for SPLA23-00004 described he rein (hereinafter referred to as the “Application”) for assessor’s parcel 3057-121-08; and WHEREAS, the application proposes to change approximately 4.8 acres of land from Low Density Res idential (LDR) to Medium Density Residential (MDR) within the Main Str eet and Freeway Corridor Specific Plan; and
WHEREAS, the proposed Medium Density Residential (MDR) designation would be appropriate in the area as other proper ties nearby have the similar designations. The parcel is bounded by land that is zoned Medium Density Residential (MDR) to the north and to the east. The property immediately to the north is an existing 56 -unit apartment complex and the property immediatel y to the east is currently vacant but has the potential to be developed for multi -family in the future due to existing utilities fronting Orange Street and Tamarisk Avenue. In addition, the parcel is at a corner which is typically the desired transition for a zon e to terminate and a different zone to begin; and
WHEREAS, although the City originall y planned for the subject parcel to be developed with single-family residential uses, very little interest has been expressed from developers. In today’s economy, home prices have reach ed an all-time high along with high interest rates, which has slowed the sale of homes. These economic conditions are a contributing factor to the increased demand for more multi-family developments in the City; and WHEREAS, the proj ect is exem pt fr om the Cali fornia Environmental Quality Act (CEQA) per Section 15061(b)(3), where it can be seen with certainty that there is no significant effect on the environment; and
WHEREAS, on June 8, 20 23, the Planning Commission of the City of H esperia conducted a duly noticed public hearin g pertaining to the proposed amendment and concluded said hearing on that date; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred.

NOW THEREFORE, BE IT RESOLVED BY THE CITY OF HESPERIA PLA NNING COMMISSION AS FOLLOWS:

ATTACHMENT 3

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Resolution No. PC-2023-19

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Section 1. The Planning Commission her eby specifically finds that all of the facts se t forth in this Resolution are true and correct.

Section 2. Based upon substantial evidence pr esented to the Commissi on, including written and oral s taff reports, the Commission specifically finds that the proposed Ordinance is consistent with the goals and objectives of the adopted General Plan. The subject parcel is capable of utilizing existin g supporting infrastructu re and municipal services, as directed by the City’s adopted General Plan.

Section 3. The subject parcel of the proposed Amendment is suitable for the land uses allowed in the Medium Density Residential (MDR) zoning classification, and adequate space exists which can meet the standards for setbacks, height, lot coverage, parking and circulation within the proposed Specific Plan designation.

Section 4. The proposed specific plan amendment is reasonable and ben eficial, as there has been little interest expressed by developers to develop the subject property. The change in zone districts would allow additional units, which ensures no net loss of residential capacity and w ill provide an o pportunity for the subject p roperty to be developed with multi-family housing that will be consistent with the surrounding land uses.

Section 5. The proposed change in zone will not have a significant adverse impact on surrounding properties or the community in general, as the parcel is bounded by land that is zoned Medium Density Residential (MDR) to the north and to the east.

Section 6. Based on th e findings and conclusions set forth in this Resolution, this Commission hereby recommends adoption of Specific Plan Amendment SPLA23-0004, to change approximately 4.8 acres from Low Density Residential (LDR) to Medium Density Residential (MDR) within the Main Street and Freeway Corridor Specific Plan as shown on Attachment 1.

Section 7. That the Secretary shall certify to the adoption of this Resolution.

ADOPTED AND APPROVED on this 8th day of June 2023.
__________________________________ _______________________________ Roger Abreo, Chair, Planning Commission
ATTEST:
_________________________________________
Maricruz Montes, Secretary, Planning Commission

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City of Hesperia

STAFF REPORT

DATE: August 15, 2023
TO: Mayor and Council Members

FROM: Rachel Molina, City Manager
BY: Melinda Sayre, Deputy City Manager/City Clerk
Erin Baum, Assistant City Clerk

SUBJECT: Designation of Voting Delegate and Alternates for League of CA Cities Conference

RECOMMENDED ACTION

It is recommended that the City Council designate a primary voting delegate and up to two alternate delegates to represent the City of Hesperia at the General Business meeting to be held during the League of California Cities annual conference September 20 through September 22, 2023 in Sacramento.

BACKGROUND

The annual League of California Cities conference will be held in Sacramento, September 20 through September 22, 2023. One important aspect of this conference is the General Business meeting when actions are taken on proposed resolutions. To expedite the conduct of business at this meeting, each City Council is requested to designate a voting representative and two alternates who will be present at the General Business meeting to vote on proposed resol utions and other issues affecting municipal or League policy.

ISSUES/ANALYSIS

There are no issues identified with this action.

FISCAL IMPACT

There are no fiscal impacts identified with this action.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None

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