Hesperia City Council
September 19, 2023

Tuesday, September 19, 2023
Meeting Agenda
Closed Session - 5:00 PM

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HOUSING AUTHORITY

COMMUNITY DEVELOPMENT COMMISSION

WATER DISTRICT
City Council Chambers
9700 Seventh Ave., Hesperia CA, 92345
City Clerk's Office: (760) 947-1007
City Council Members
Brigit Bennington, Mayor
Larry Bird, Mayor Pro Tem
Allison Lee, Council Member
Cameron Gregg, Council Member
Rebekah Swanson, Council Member
Rachel Molina, City Manager
Pam K. Lee, City Attorney
See page (3) for details on public meeting guidelines during the COVID-19 (Coronavirus) Pandemic
Amended Agenda
Green Sheet Item 7 updated after the posting of the agenda NOTE: In compliance with the Americans with Disability Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (760) 947-1007 or (760) 947-1026. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility.

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.

September 19, 2023City Council Meeting Agenda

REGULAR MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

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

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

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

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

CLOSED SESSION - 5:00 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 - Potential Litigation:

Government Code Section 54956.9(d)2

1. One (1) Case
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)
CALL TO ORDER - 6:30 PM
A. Invocation

September 19, 2023City Council Meeting Agenda
B. Pledge of Allegiance to the Flag
C. Roll Call
Mayor Brigit Bennington
Mayor Pro Tem Larry Bird
Council Member Allison Lee
Council Member Cameron Gregg
Council Member Rebekah Swanson
D. Agenda Revisions and Announcements by City Clerk
E. Closed Session Reports by City Attorney
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Individuals wishing to speak during General Public Comments or on a particular numbered item are requested to submit a speaker slip to the City Clerk with the agenda item noted. Speaker slips should be turned in prior to the public comment portion of the joint agenda or before an agenda item is discussed. Comments will be limited to three minutes for General Public Comments, Consent Calendar items and New Business items. Comments are limited to five minutes for Public Hearing items.

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

JOINT CONSENT CALENDAR

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, September 5, 2023.

Recommended Action:

It
is recommended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, September 5, 2023.

Staff Person: Assistant City Clerk Erin Baum
Draft CC Min 2023-9-5Attachments:

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

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

Staff Person: Assistant City Manager Casey Brooksher

September 19, 2023City Council Meeting Agenda
SR Warrant Run 9-19-2023
Attachment 1 - Warrant Run
Attachments:

3. Treasurer’s Cash Report for the unaudited period ended June 30, 2023.

Recommended Action:

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

Staff Person: Assistant City Manager Casey Brooksher
SR Treasurer's Report 9-19-2023
Attachment 1 - Treasurer's Report
Attachments:

4. Authorizing the Examination of Sales and Use Tax Records Recommended Action:

It
is recommended that the City Council approve Resolution No. 2023-57, authorizing the examination of sales and use tax records.

Staff Person: Assistant City Manager Casey Brooksher
SR Authorizing the Examination of Sales and Use Tax Records 9-19-2023 Resolution 2023-57
Attachments:

5. Vehicle Procurement - One Heavy-Duty Dump Truck
Recommended Action:

It
is recommended that the Board of Directors of the Hesperia Water District approve Resolution HWD No. 2023-21 authorizing a City Council Bidding Override exemption for the purchase of one (1) heavy-duty dump truck, by authorizing the City Manager to enter into an agreement with Connell Chevrolet in the not-to-exceed amount of $97,000 for the Pipeline Program.

Staff Person: Director of Public Works Jeremy McDonald
SR Vehicle Procurement - One Heavy-Duty Dump Truck 9-19-2023 Resolution HWD 2023-21
Attachment 2 - Bid Comparison
Attachments:

6. Accept Water Service Line Relocation - Phase I, C.O. No. 8092 Recommended Action:

It
is recommended that the Board of Directors of the Hesperia Water District accept the work constructed under the Water Service Line Relocation Phase I, C.O. No. 8092 and authorize staff to record a Notice of Completion and release all withheld retention amounts 35 days from the date of recordation.

Staff Person: Director of Development Services Nathan Freeman SR Accept Water Service Line Relocation 9-19-2023Attachments:

September 19, 2023City Council Meeting Agenda

7. Reorganization and Revised Combined Compensation Schedules Recommended Action:

It is
recommended that the City Council and Board of Directors of the Hesperia Housing Authority (HHA) and Hesperia Water District (HWD) adopt Resolution No. 2023-61, HWD 2023-19 approving the City Manager’s reorganization and if adopted, subsequently adopt Joint Resolution No. 2023-62, HHA 2023-11 and HWD 2023-20 approving the required Revised Combined Compensation Schedules for FY 2023-24.

Staff Person: Assistant City Manager Casey Brooksher and Deputy Human Resources/Risk Management Director Rita Perez
SR Reorganization & Revised Combined Compensation Schedules 9-19-2023 Resolution 2023-61
Resolution HWD 2023-19
Joint Resolution 2023-62
Attachment 4 - Combined Compensation Schedule
Attachments:

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

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

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

8. Program Year 2022-2023 Community Development Block Grant (CDBG),Consolidated Annual Performance and Evaluation Report (CAPER) Recommended Action:

It is recommended that the City Council conduct a public hearing and upon accepting public testimony: 1) Approve the Program Year 2022-2023 Consolidated Annual Performance Evaluation Report (“CAPER”); and 2) Authorize the City Manager and/or designee to submit the Program Year 2022-2023 CAPER to the U.S. Department of Housing and Urban Development (“HUD”), along with any public testimony and changes thereto as directed by the City Council.

Staff Person: Economic Development Manager Victor Knight SR PY 2022-2023 CDBG & CAPER 9-19-2023
Attachment 1 - Exhibit A PY 2022-2023 Draft CAPER
Attachments:

NEW BUSINESS

9. Alternative Funding Sources
Recommended Action:

September 19, 2023City Council Meeting Agenda
It is recommended that the City Council receive and file this staff report, which provides
information about potential funding sources to address the needs of the community, and provide direction to staff.

Staff Person: Assistant City Manager Casey Brooksher
SR Alternative Funding Sources 9-19-2023Attachments:

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
I, Melinda Sayre, City Clerk of the City of Hesperia, California do hereby certify that I caused to be posted the foregoing agenda on Wednesday, September 13, 2023 at 5:30 p.m. pursuant to California Government Code §54954.2.
_____________________________
Melinda Sayre,
City Clerk
Documents produced by the City and distributed less than 72 hours prior to the meeting regarding items on the agenda will be made available in the City Clerk's Office during normal business hours.

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia
City of Hesperia
Meeting Minutes - Draft
City Council
Tuesday, September 5, 2023 6:30 PM

REGULAR MEETING AGENDA

HESPERIA CITY COUNCIL

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

HESPERIA HOUSING AUTHORITY

HESPERIA COMMUNITY DEVELOPMENT COMMISSION

HESPERIA WATER DISTRICT
CLOSED SESSION - 5:30 PM
Roll Call

Present: 5 - Mayor Pro Tem Bird, Council Member Swanson, Council Member Gregg, Mayor Ben
nington, and Council Member Lee
Conference with Legal Counsel - Potential Litigation: Government Code Section 54956.9(d)2

1. One (1) Case
CALL TO ORDER - 6:30 PM
A. Invocation
B. Pledge of Allegiance to the Flag
C. Roll Call

Present: 5 - Mayor Pro Tem Bird, Council Member Swanson, Council Member Gregg, Mayor Ben
nington, and Council Member Lee
D. A genda Revisions and Announcements by City Clerk
E.

Closed Session Reports by City Attorney
GENERAL PUBLIC COMMENTS (For items and matters not listed on the agenda) Bob Nelson commented on speaking limits.

Dr. Cisneros commented on language and shelter issues.

Jerri Pike commented on the Animal Shelter.

City Council Chambers
9700 Seventh Ave.

Hesperia CA, 92345

City of Hesperia
Stephanie James commented on the Animal Shelter.

Gina Whelan commented on the Animal Shelter.

Jasmine Gomez commented on tobacco control.

Suzanna Leal commented on a Multiple Response issue.

JOINT CONSENT CALENDAR
Bob Nelson commented on item number 9.

A motion was made by Swanson, seconded by Lee, that the Joint Consent Calendar be approved.

The motion carried by the
following vote:

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

1. Consideration of the Draft Minutes from the Regular Meeting held Tuesday, August 15, 2023.

Recommended Action:

It is recomm
ended that the City Council approve the Draft Minutes from the Regular Meeting held Tuesday, August 15, 2023.

Sponsors: Assistant Cit
y Clerk Erin Baum

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

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

Sponsors: Assistant City Manager Casey Brooksher

3. Approve and Accept Construction for Emergency Road Repairs Related to 2023 Winter Storms Recommended Action:

It is recommended that the City Council authorize the City Manager to accept the work constructed under 2023 Emergency Storm
Repairs (C.O. No. 7171), authorize staff to record a “Notice of Completion”, and release all with
held retention amounts after thirty-five (35) days from the date of recordation.

Sponsors: Director of Public Works Jeremy McDonald

4. Layne Christensen Company Contract Amendment
Recommended Action:

It is recommended that the Board of Directors of the Hesperia Water District (District) authorize the Cit y Manager to
approve an amendment in the amount of $540,390 to the existing contract with Layne Christensen f
or a revised not-to-exceed contract amount of $712,290 and adopt Resolution HW D 2023-18 am
ending the Fiscal Year (FY) 2023-24 Budget by appropriating an additional $490,390 for water well m
aintenance, repair services and the repair of Well 22.

Sponsors: Director of Public Works Jeremy McDonald

5. Off-Highway Motor Vehicle Grant Application to the California Department of Parks and Recreation Recommended Action:

City of Hesperia
It is recommended that the City Council approve and adopt Resolution No. 2023-19 authorizing the submission of a California Off-Highway Motor Vehicle (OHV) Grant Application to the California Department of Parks and Recreation for a total of $123,351.00 and authorize the City Manager and the San Bernardino County Sheriff’s Department to execute the Application and any amendments thereto on behalf of the City.

Sponsors: Hesperia Police Department Captain Jon Billings

6. Designation of Applicant's Agent Resolution for Non-State Agencies Pertaining to Emergency Funding Eligibility
Recommend
ed Action:

It is recommended that the City Council adopt Resolution No. 2023-60 approving and authorizing: 1) the request for reimbursement for
the City’s response to the 2023 Winter Storm event; 2) a universal resolution effective for all open and future disasters up to three (3) years following the approval date; 3) the Cit
y Manager to execute all matters pertaining to assurances and agreements as required by the California Govern
or’s Office of Emergency Services.

Sponsors: Assistant to the City Manager Tammy Pelayes

7. CO 7046, Ranchero Road Under Crossing and Authorization to Purchase Mitigation Bank Credits Recommend
ed Action:

It is recommended that the City Council approve the Agreement for Sale of Credits with Desert Environmental Resources,
Inc. (Bank Sponsor) in the amount of $395,500 and authorize the City Manager to exec
ute the agreement and any associated documents.

Sponsors: Deputy Development Services Director Dani Fox and Director of Development Services Nathan Freeman

8. Fiscal Year 2023/24 - 2027/28 Five Year Measure I Capital Improvement Plan Recommend
ed Action:

It is recommended that the City Council adopt Resolution No. 2023-58 approving the Measure I Five Year Capital Improvement Plan and
Expense Strategy for Fiscal Years 2023/24 - 2027/28.

Sponsors: Director of Development Services Nathan Freeman and Administrative Analyst Bethan y Hudson

9. Final Map No. 18955-12
Recommended Action:

It is recommended that the City Council adopt Resolution No. 2023-59 approving Final Map No.
18955-12 to create 71 resid
ential lots on approximately 17.55 gross acres and accept right-of- way necessar
y to develop Tract 18989-1 Lot 12, Planning Area 13 of the Tapestry Specific Plan (Applicant:

Silverwood De
velopment Phase I, LLC).

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

CONSENT ORDINANCES
A motion was made by Bird, seconded by Gregg, that the Consent Ordinances be approved. The motion carried by the following vote:

City of Hesperia

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

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

Place on second reading and adopt by title waiving the text of Ordinance No. 2023-12 approving Specifi c
Plan Amendment SPLA23-
00004.

Sponsors: Associate Planner Edgar Gonzalez

NEW BUSINESS

11. Animal Shelter Update
Recommended Action:

It is recommended that the City Council receive and file the following Animal Shelter Update report.

Sponsors: Deputy City Manager/City Clerk Melinda Sayre
Mayor Pro Tem Bird requested staff agendize an item outlining specific volunteer opportunities at the Animal Shelter.

Council Member Gregg requested staff agendize an item regarding zoning exemptions for registered animal rescues operating in the City.

Dr. Cisneros commented on this item.

Gina Whelan commented on this item.

Jerri Pike commented on this item.

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

Council Member Gregg requested that staff perform a cost comparison between in-house veterinary services and contract veterinary services for an item to be brought before Council in 6 months.

CITY MANAGER/CITY ATTORNEY/STAFF REPORTS
The City Manager thanked staff for their response efforts in the recent storm.

ADJOURNMENT
The meeting was adjourned at 8:14 p.m.
_____________________________
Erin Baum,
Assistant City Clerk

City of Hesperia

STAFF REPORT
DATE: September 19, 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 August 5 , 2023 through August 25, 2023.

The wire amount total is as follows:
 $304,248.35 to Commonwealth Land Title Company for purchase of APN 0405 -272-18, Escrow 09186344-918 GKD.
 $198,586.25 to Commonwealth Land Title Company for purchase of APN 3064 -461-03, Escrow 09186082-918 GKD.

ATTACHMENT(S)

1. Warrant Runs
Agency/District Accounts Payable Payroll Wires Totals
City of Hesperia $8,125,831.03 $287,435.15 $502,834.60 $8,916,100.78 Successor Agency 7,828,402.39 0.00 0.00 7,828,402.39
Housing Authority 0.00 193.40 0.00 193.40
Community Development Commission 0.00 0.00 0.00 0.00
Water 999,967.74 131,031.22 0.00 1,130,998.96
Totals $16,954,201.16 $418,659.77 $502,834.60 $17,875,695.53

YEAR-TO PRIOR FY YTD

W/E W/E W/E WARRANT DATE DATE
FUND # FUND NAME 8/11/2023 8/18/2023 8/25/2023 TOTALS Wires TOTALS * TOTALS Accounts Payable
100 GENERAL 1,935,918.63 $ 226,611.71 $ 1,949,435.76 $ 4,111,966.10 $ - $ 8,770,557.52$ 7,409,174.70$ 105 PENSION OBLIGATION TRUST -$ -$ -$ -$ -$ -$ -$ 106 OPEB TRUST -$ -$ -$ -$ - $ -$ -$
200 HESPERIA FIRE DISTRICT -$ -$ -$ -$ -$ -$ -$
204 MEASURE I - RENEWAL 1,047.00$ 1,689.84$ 6,093.27$ 8,830.11$ - $ 10,245.62$ 121,946.80$ 207 LOCAL TRANSPORT-SB 325 32,903.00$ 31,384.21$ 172,105.18$ 236,392.39$ - $ 922,727.40$ 1,146.68$ 209 GAS TAX-RMRA -$ -$ -$ -$ -$ -$ -$
210 HFPD (PERS) -$ -$ -$ -$ -$ 907,316.00$ 1,093,200.00$ 251 CDBG 11,360.63$ -$ 68,059.00$ 79,419.63$ - $ 158,656.48$ 26,062.96$ 254 AB2766 - TRANSIT -$ -$ -$ -$ -$ -$ -$
256 ENVIRONMENTAL PROGRAMS GRANT -$ 27.50$ 1.50$ 29.00$ - $ 3,895.61$ 3,556.03$ 257 NEIGHBORHOOD STABILIZATION PROG -$ -$ -$ -$ - $ -$ -$ 262
SB 1383 LOCAL ASSISTANCE GRANT -$ -$ -$ -$ -$ -$ -$ 263 STREETS MAINTENANCE 17,309.18$ 42,265.55$ 52,470.87$ 112,045.60$ - $ 648,636.25$ 572,787.93$ 300 DEV. IMPACT FEES - STREET -$ -$ -$ -$ -$ 3,600.00$ 2,721.18$ 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 88,584.31$ 505.00$ 411,874.45$ 500,963.76$ - $ 753,016.16$ 454,305.76$ 312 DIF 2018-POLICE FACILITIES -$ -$ -$ -$ -$ -$ -$ 313 DIF A-04 DRAINAGE -$ -$ -$ -$ 304,248.35$ 304,248.35 $ -$ 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$ -$ 501 CFD 91-3 BELGATE -$ -$ -$ -$ -$ -$ -$
504 CITY WIDE STREETS - CIP 172,494.64$ 31,384.21$ 1,334,229.04$ 1,538,107.89$ 198,586.25$ 2,292,744.75$ 1,448,383.25$ 509 CITY FACILITIES CIP -$ -$ -$ -$ - $ -$ -$
800 EMPLOYEE BENEFITS 384,902.19$ 26,166.14$ 84,681.57$ 495,749.90$ - $ 1,525,155.96$ 1,570,197.99$ 801 TRUST/AGENCY 535.00$ 41,149.13$ 513.00$ 42,197.13$ - $ 144,104.90$ 229,455.53$ 802 AD 91-1 AGENCY -$ -$ -$ -$ -$ -$ -$
804 TRUST-INTEREST BEARING 541.50$ -$ 20,400.00$ 20,941.50$ - $ 88,626.50$ 26,625.00$ 807 CFD 2005-1 -$ 979,188.02$ -$ 979,188.02$ - $ 979,188.02$ 962,956.49$ 808 HFPD (TRANSITION) -$ -$ -$ -$ - $ 347,796.19$ 317,384.59$ 815
PLAN REVIEW TRUST - FRONTIER -$ -$ -$ -$ -$ -$ -$ CITY 2,645,596.08$ 1,380,371.31$ 4,099,863.64$ 8,125,831.03$ 502,834.60$ 18,429,417.10$ 14,257,365.39$ 163 REDEVELOP OBLIG RETIREMENT-2018 -$ -$ 7,828,402.39$ 7,828,402.39$ -$ 7,828,402.39$ 7,740,169.98$ SUCCESSOR AGENCY -$ -$ 7,828,402.39$ 7,828,402.39$ - $ 7,828,402.39$ 7,740,169.98$ 370 HOUSING AUTHORITY -$ -$ -$ -$ -$ 2,976.08$ 2,372.22$ HOUSING AUTHORITY -$ -$ -$ -$ - $ 2,976.08$ 2,372.22$ 170 COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ - $ -$ -$ COMMUNITY DEVELOPMENT COMMISSION -$ -$ -$ -$ - $ -$ -$ 700 WATER OPERATING 98,686.31$ 411,930.01$ 55,729.75$ 566,346.07$ - $ 2,667,962.19$ 1,336,460.37$ 701 WATER CAPITAL 255,510.08$ -$ -$ 255,510.08$ - $ 255,510.08$ -$ 710 SEWER OPERATING 2,906.78$ 8,609.01$ 16,771.65$ 28,287.44$ - $ 913,932.06$ 822,249.52$ 711 SEWER CAPITAL 4,432.00$ -$ 142,162.50$ 146,594.50$ - $ 493,126.50$ 139,545.00$ 713 SEWER CAPITAL REHAB AND REPLACE -$ -$ -$ -$ -$ -$ -$ 720
RECLAIMED WATER OPERATIONS 127.38$ -$ 3,102.27$ 3,229.65$ - $ 10,522.12$ 2,658.71$ WATER 361,662.55$ 420,539.02$ 217,766.17$ 999,967.74$ - $ 4,341,052.95$ 2,300,913.60$ ACCOUNTS PAYABLE TOTAL 3,007,258.63$ 1,800,910.33$ 12,146,032.20$ 16,954,201.16$ 502,834.60$ 30,601,848.52$ 24,300,821.19$ REG. PAYROLL
City -$ 287,435.15$ -$ 287,435.15$ - $ 1,219,971.71$ 1,091,589.18$ Housing Authority -$ 193.40$ -$ 193.40$ - $ 803.07$ 734.13$ Water -$ 131,031.22$ -$ 131,031.22$ - $ 527,565.09$ 441,409.80$ PAYROLL TOTAL -$ 418,659.77$ -$ 418,659.77$ - $ 1,748,339.87$ 1,533,733.11$ City of Hesperia

WARRANT RUNS
08/05/2023 - 08/25/2023
*No payments were issued on July 1, 2023.

Attachment 1

City of Hesperia

STAFF REPORT
DATE: September 19, 2023
TO: Mayor and Council Members
City Council, Serving as Successor Agency to the Hesperia Community Redevelopment Agency
Chair and Commissioners, Hesperia Housing Authority
Chair and Commissioners, Community Development Commission Chair and Board Members, Hesperia Water District
FROM: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
Anne Duke, Deputy Finance Director
Jacob Weatherbie, Accountant
SUBJECT: Treasurer’s Cash Report for the unaudited period ended June 30, 2023.

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

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

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

FISCAL IMPACT
These reports reflect unaudited cash balances as of June 30, 2023.

ALTERNATIVE(S)
Provide alternative direction to staff.

ATTACHMENT(S)

1. City of Hesperia Investment Report

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

3. Hesperia Housing Authority Investment Report

4. Community Development Commission Investment Report

5. Hesperia Water District Investment Report

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
September 19, 2023

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
September 19, 2023

Staff Report to the Mayor and City Council/Board Members Treasurer’s Cash Report
September 19, 2023

City of Hesperia
Investment Report
Unaudited
ATTACHMENT 1
June 30, 2023
Institution/
Type of Investment Fiscal Agent
Interest
Rate
Investments under the direction of the City:
~ Agency Investment Funds I -~s-,a-te-of-Calif. 3.167%
Local Bank Checking Accounts ' U.S. Bank n/a
- Total Unaudited Investments under the direction of the City Investments under the direction of fiscal aQents:

US Bank 0.413%
US Bank 0.506%
Date of
Purchase
I 30-Jun-23
30-Jun-23
30-Jun-23
30-Jun-23 -US Bank 0.420% 30-Jun-23
Date of Par Value
Maturity at Maturity
Demand p.-97,894,644.59I
Demand 1,706,469.71
Book
Value
97,894,644.59
1,706,469.71 '
Market
Value
97,894,644.59
1,706,469.71
Account
Description
$ 99,601,114.30 $ 99,601,114.30 $ 99,601,114.30
Demand 469.57 46~ 469.57 1 2012 - Water Rights Revenue Fund Demand 25.71 25.71 25.71 2012. Water Rights Interest Fund Demand 1,494,969.27 1,494,969.27 1,494,969.27 ' 2012 - Water Rights Reserve Fund 2012 Lease Revenue Bonds
2012 Lease Revenue Bonds
2012 Lease Revenue Bonds
2012 Lease Revenue Bonds US Bank 0.000% 30-Jun-23 Demand 0.31 0.31 0.31 2012 - Water Rights Surplus Revenue Fun d 2013 Refunding Lease Revenue Bonds
2013 Refunding Lease Revenue Bonds
2013 Refunding Lease Revenue Bonds
___1Q14 CFO 2005-1 Refunding
~014 CFO 2005-1 Refunding
2014 CFO 2005-1 Refunding
2014 CFO 2005-1 Refunding
Deposits - Workers' Com~p __ _
Sully Miller Retention - Ranchero
City of Hesperia Stabalized Trust
City of ~esperia OPEB Trust
Hesperia Fire Protection PST
City of Hesperia Settlement Escrow Account
US Bank
US Bank
US Bank
US Bank
US Bank
US Bank
US Bank
PERMA
US Bank
Charles Schwab
Charles Schwab
Charles Schwab
us Bank

0.416%

0.420%

0.000% >--

0.420%

0.420%

0.420%
I 0.420%
I
n/a j

0.000% j
n/a -- n/a
n/a
I 0.000%
30-Jun-23 Demand
30-Jun-23 Demand
30-Jun-23 , Demand
f---
30-Jun-23 Demand
30-Jun-23 Demand

30.Jun-23 Demand
30-Jun-23 Demand - f--

30.Jun-23 n/a
30-Jun-23 n/a -30-Jun-23 n/a
30-Jun-23 n/a
30-Jun-23 n/a
30-Jun-23 n/a
564.79 564,79 564.79 2005 Civic Plaza - Revenue Fund -1,183,667.89 1,183,667.89 1,183,667.89 2005 Civic Plaza - Reserve Fund

0.31 0.31 0.31 2005 Civic Plaza - Surplus Rev Fund
167.27 167.27 167.27 2014 CFO 05-1 - Special Tax Fund
23,043.34 23,043.34 23,043.34 2014 CFO 05-1 • Bond Fund 1,450, 144.52 1,450,144.52 1,450,144.52 2014 CFO 05-1. Reserve Fund 24,709.25 __ 24,709.25 24,709.25 2014 CFO 05-1 Administrative Expense B 542,901.06 542,901.06 542,901.06 GL 1352

1.08 1.08 1.08 Ranchero Road . Escrow Account
3,428,205.94 3,428,205.94 3,428,205.94 City Pension
605,006.72 605,006.72 605,006.72 CityOPEB
1,209,611.38 1,209,611.38 1,209,611.38 I Fire Pension
300,005.41 300,005.41 300,005.41 Settlement Escrow Account Total Unaudited Investments under the direction of fiscal agents $ 10,263,493.82 $ 10,263,493.82 $ 10,263,493.82 Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.

I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b}(2J and (3}, respectively. • Note: 2005 Certificates of Participation began in May 2005 for the finacing of the Civic Plaza. 'tZtchu~ Nichole Sheppard~ S1
Investment - City
ands
~

Successor Agency to the Redevelopment Agency
Investment Report
Unaudited
Issuer/
Type of Investment Institution
Investments under the direction of the City:

Interest
Rate
I
Local Agency lnvestmentFunds State of Calif. 3.167%
Local Bank Checking Accounts U.S. Bank nla
Total Unaudited Investments under the direction of the City June 30, 2023
Date of Date of
Purchase Maturity
Par Value
at Maturi.ti'.

Book
Value
Market
Value
30-Jun-23 I Demand j $ 7,964,549.97 $ 7,964,549.97 ..__ 7,964,549.97 ·I 30-Jun-23 Demand , 138,835.62 138,835.62 138,835.62
$ 8,103,385.59 $ 8,103,385.59 $ 8,103,385.59
ATTACHMENT 2
Account
Descri.Qtion
Investments under the direction of fiscal agents:
2018 Refunding Bonds- - -- US Bank 7 0.413% ·l 30-Jun-23 Demand 14.53 , 14.53 14.53 2018A & 20188-Debt Service Account 2018 Refunding Bonds ___ US Bank 0.420% __ 30-Jun-23 l Demand 1 2,933.50 2,933.50 2,933.50 2018A & 2018B - Interest Account 2018 Refunding Bonds US Bank I 0.000% 30-Jun-23 Demand 1.00 1.00 1.00 2018A & 2018B - Reserve Account Total Unaudited Investments under the direction of fiscal agents $ 2,949.03 $ 2,949.03 $ 2,949.03 Please Note: All market value data is provided courtesy of the City's fiscal agent US Bank. The 2018 Refunding Bonds are supported by a $9,799,443.76 bond insurance policy.

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

Investment - SA

TY.Qe of Investment
Issuer/
Institution
Investments under the direction of the City:

Hesperia Housing Authority
Investment Report
Unaudited
June 30, 2023
Interest Date of Date of
Rate Purchase Maturity
[ Local Agency Investment Funds State of California , 3.167% 30-Jun-23 Local Bank Checking Accounts ~ U.S. Bank ] n/a 30-Jun-23 Demand
Demand
Total Unaudited Investments under the direction of the City Par Value
at Maturity
Book
Value
ATTACHMENT 3
Market
Value
j $ 5,629,894.55 5,629,894.55 L 5,629,894.55 ·I
98,138.61 j 98,138.61 [ 98,138.61
$ 5,728,033.16 $ 5,728,033.16 $ 5,728,033.16
I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively.

Investment - HHA

TY.Qe of Investment
Hesperia Community Development Comission
Investment Report
Unaudited
Issuer/
Institution
June 30, 2023
Interest
Rate
Date of Date of
Purchase Maturi_ty
Par Value
at Maturirt
Investments under the direction of the City:

Book
Value
ATTACHMENT 4
Market
Value
I
Local Agency Investment Funds ~ State of California I 3.16~ l 30-Jun-23 t· Demand $ (590,381.16) (590,381.16)1 (590,381.16) Local Bank Checking Accounts U.S. Bank n/~ O-Jun-23 Demand 10,291.34 10,291.34 10,291.34 Total Unaudited Investments under the direction of the City $ (600,672.50) $ (600,672.50) $ (600,672.50) I certify that this investment portfolio is in compliance with the statement of investment policy of the City of Hesperia and the investment program provides sufficient liquidity to meet expenditure requirements for the next six months, as required by the California Government Code sections 53646(b)(2) and (3), respectively.

Investment - CDC

T~ of Investment
Investments under the direction of the City:

Issuer/
Institution
Hesperia Water District
Investment Report
Unaudited
June 30, 2023
Interest Date of Date of
Rate Purchase Maturity
Par Value
at Maturity
Local Agen~t_!r!vestment Funds 7 ---= State of California T 3.167% 1 30-Jun-23 Demand '"$37 ,067,286.61 I 30-Jun-23 Demand 646,145.68
Book
Value
37,067,286.61
646,145.68
ATTACHMENT 5
Market
Value
37,061,2a6.61 I
646,145.68
Account
DescriQtion
Local Bank Checking Accounts r U.S. Bank 1 n/a I
Total Unaudited Investments under the direction of the City $ 37,713,432.29 $ 37,713,432.29 $ 37,713,432.29 Investments under the direction of fiscal agents:
/ Deposits - Workers' Comp - - PERMA n/a_ 31-oct-22 I n/a 7-- 877,475.29 Total Unaudited Investments under the direction of fiscal agents $ 877,475.29 $ Please Note: All market value data is provided courtesy of the City's fiscal agent, US Bank.

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

Investment - ENT
a11,41s.29 I 877,475.29 IGL 1352
877,475.29 $ 877,475.29
ntant

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT
DATE: September 19, 2023
TO: Mayor and Council Members
FROM: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
SUBJECT: Authorizing the Examination of Sales and Use Tax Records

RECOMMENDED ACTION
It is recommended that the City Council a pprove Resolution No. 2023-57, authorizing the examination of sales and use tax records.

BACKGROUND
The State of California Revenue and Taxation Code Section 7056 authorizes the examination of confidential sales and use tax data to officers or employees of local jurisdictions who are designated by resolution of the legislative body of the jurisdiction. T he review of confidential information is governed by state law and sets certain requirements and conditions for the disclosure of sales and use tax records. State law also establishes crim inal penalties for the unlawful disclosure of sales and use tax information.

In 1994, the City Council approved Resolution 94 -14, which designated the City Manager and Finance Director as authorized City officers with the authority to examine sales and use tax records of the State Board of Equalization (BOE). The same year, the City Council also approved Resolution 94-81, authorizing Hinderliter, de Llamas and Associates (HdL) access to receive and review sales and use tax data received from the BOE, as an authorized representative for the City. HdL examines and monitors Hesperia’s sales tax records to ensure the tax is appropriately allocated to the City of Hesperia.

ISSUES/ANALYSIS
As a result of the Taxpayer Transparency and Fairness Act of 2017, the BOE was restructured and services previously provided by BOE , such as registration, tax and fee filings, and tax and fee payments , were transferred to the California Department of Tax and Fee Ad ministration (CDTFA). HdL was recently notified by the CDTFA that, due to the age of the previous resolutions (Resolutions 94-14 and 94 -81), the CDTFA has requested updated resolutions authorizing the examination of confidential sales and use tax records.

A new resolution (Resolution 2023 -57) will provide an opportunity for the City to update the authorized officer/position list for the titles that are now in use , which include the City Manager and Assistant City Manager. If approved, these titles will have the authority to examine the sales and use tax records of the CDTFA, and the City Manager will have the authority to designate, in writing, additional staff positions with an ability to view the confidential information for designated governmental purposes, including revenue management and budgeting . Further, approval of

Staff Report to the Mayor and Council Members
Authorizing the Examination of Sales and Use Tax Records September 19, 2023
Resolution 2023-57, will continue to authorize HdL to operate as an authorized representative of the City, consistent with the services agreement between the City and HdL.

FISCAL IMPACT
There is no direct fiscal impact with the approval of this item.

ALTERNATIVES
Provide alternative direction to staff.

ATTACHMENTS

1. Resolution No. 2023-57 – Authorizing the Examination of Sales and Use Tax Records

RESOLUTION NO. 2023-57
A Resolution of the City Council of the City of Hesperia Authorizing Examination of Sales and Use Tax Records
WHEREAS, pursuant to Ordinance Number 8, the City of Hesperia (City) entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of sales and use taxes; and WHEREAS, the City Council of the City of Hesperia deems it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales and use tax records of the Department pertaining to sales and use taxes collected by the Department for the City pursuant to that contract; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales and use tax records of the Department;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HESPERIA HEREBY RESOLVES AS FOLLOWS:

Section 1. That the City Manager, Assistant City Manager, Director of Development Services, Deputy Finance Director, or other officer or employee of the City designated in writing by the City Manager to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales and use tax records of the Department pertaining to sales and use taxes collected for the City by the Department pursuant to the contract between the City and the Department.

Section 2.

The information obtained by examination of Department records shall be used only for purposes related to the collection of City sales and use taxes by the Department pursuant to that contract, and for purposes related to the following governmental functions of the City:
(a) City administration
(b) Revenue management and budgeting
(c) Detection of misallocations and deficiencies
(c) Economic and community development
(d) Business license tax administration
The information obtained by examination of Department records shall be used only for those governmental functions of the City listed above.

Section 3. That Hinderliter, de Llamas & Associates is hereby designated to examine the sales and use tax records of the Department pertaining to sales and use taxes collected for the City by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and the Hinderliter, de Llamas & Associates:

Resolution 2023-57
a) has an existing contract with the City to examine those sales or transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information.
c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract.
d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired.

BE IT FURTHER RESOLVED that the information obtained by examination of Department records shall be used only for purposes related to the collection of City sales and use taxes by the Department pursuant to the contract between the City and the Department and for those purposes relating to the governmental functions of the City listed in section 2 of this resolution.

Section 4. That this resolution supersedes all prior resolutions of the City Council of the City of Hesperia adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056.

Introduced, approved and adopted this 19th day of September 2023.

ATTEST: ___________________________ ____________________________ Erin Baum Brigit Bennington
Assistant City Clerk Mayor
I, ____________________, City Clerk of the City of _______________________, California, DO HEREBY CERTIFY that the foregoing resolution was duly introduced, approved and adopted by the City Council of the City of ____________ ___________, at a regular meeting of said Council held on the ________ day of ________________, 20___, by the following roll call vote:

Ayes: (Names of Councilmembers)
Noes: (Names of Councilmembers)

Absent: (Names of Councilmembers)
(s) _______________________________
City Clerk

City of Hesperia

STAFF REPORT
DATE: September 19, 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 Dump Truck

RECOMMENDED ACTION
It is recommended that the Board of Directors of the Hesperia Water District approve Resolution HWD No. 2023-21 authorizing a City Council Bidding Override exemption for the purchase of one (1) heavy-duty dump truck, by authorizing the City Manager to enter into an agreement with Connell Chevrolet in the not-to-exceed amount of $97,000 for the Pipeline Program.

BACKGROUND
The Fiscal Year (FY) 2023-24 Budget includes funding for the purchase of one heavy-duty dump truck in the Pipeline Program. The existing dump truck recently experienced catastrophic engine failure and has reached the end of its useful lifespan as annual costs attributed to maintaining the asset exceed salvage value.

ISSUES/ANALYSIS
On August 30, 2023, Public Works requested quotes for one new heavy-duty dump truck. The informal bid request was sent to three dealerships both locally and out of the area to maximize bid response. A requirement was included that the vehicle be in stock and delivered within two weeks of the purchase order posting. The bid closed on September 1, 2023, with Connell Chevrolet being the only respondent with a total bid of $96,199.

The City’s purchasing ordinance requires formal bids to be published at least ten (10) days before the date of the opening of the bids. Due to limited availability because of supply chain issues, staff reduced the bid period to retain the vehicle until acquiring approval from City Council. As recommended by Resolution HWD No. 2023-21, the City Council can provide a bidding override exemption and award Connell Chevrolet the contract for the vehicle. Staff recommends awarding the bid to Connell Chevrolet who has been deemed to be the lowest responsive/responsible vendor.

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

Staff Report to the Board of Directors of the Hesperia Water District Vehicle Procurement
September 19, 2023

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. HWD Resolution No. 2023-21

2. Bid comparison

RESOLUTION NO. HWD 2023-21

A RESOLUTION OF THE BOARD OF DIRECTORS FOR THE HESPERIA

WATER DISTRICT OF THE CITY OF HESPERIA, CALIFORNIA, TO USE THE

BIDDING OVERRIDE EXEMPTION

WHEREAS, the City of Hesperia has adopted municipal codes, of which details the process for bidding of items, such as vehicle codes; and

WHEREAS, §3.08.070 of the Hesperia Municipal Code allows for certain exemptions to the bidding requirements; and

WHEREAS, as allowed by the Municipal Code, the City Council may determine by resoluti on that it would be in the best interest of the city to dispense with bidding; provided, however, that the City Council shall state the basis of its determination;

WHEREAS, accepting the bid from Connell Chevrolet will result in immediate delivery of the vehicle upon a purchase order being approved, which is in the best interest of the City;

WHEREAS, the Board of Directors accepts the bid from Connell Chevrolet; and

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

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

Section 2. That the Board authorize the City Manager to enter into an agreement in the not -to-exceed amount of $ 97,000 for the purchase of one (1) Chevy Silverado dump truck.

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

ADOPTED AND APPROVED this 19th day of September 2023.

_________________________________________
Brigit Bennington, Chair
ATTEST:

_______________________________
Erin Baum, Secretary to the Board

Attachment 2

City of Hesperia

STAFF REPORT
DATE: September 19, 2023
TO: Chair and Board Members, Hesperia Water District
FROM: Rachel Molina, City Manager
BY: Nathan Freeman, Director of Development Services
Cassandra Sanchez, Deputy City Engineer
Mark McKinley, Assistant Engineer
SUBJECT: Accept Water Service Line Relocation – Phase I, C.O. No. 8092

RECOMMENDED ACTION
It is recommended that the Board of Directors of the Hesperia Water District accept the work constructed under the Water Service Line Relocation Phase I, C.O. No. 8092 and authorize staff to record a Notice of Completion and release all withheld retention amounts 35 days from the date of recordation.

BACKGROUND
On December 11, 2019, the City was awarded a grant to assist in the relocation of existing water service lines and existing water meters from the existing 4 -inch deteriorating steel main lines at the rear of 29 lots identified as part of Phase I of the Water Service Line Relocation project, C.O.

No. 8092. These lots are located on Mission Street, Fir Street, and El Centro Street, respectively north to south, and from Eleventh Avenue to Seventh Avenue, respectively west to east. Said services were relocated and connected to new, previously completed, polyvinyl chloride (PVC) pipelines located within City right -of-way at the front of said properties. There has been a long history of leaks and frequent repairs required to maintain the existing 4-inch steel main lines. In addition to these leaks and repairs, Public Works access to the existing 4-inch steel water mains and water meters, for maintenance and meter reading, have proven to be very difficult as dedicated public alley ways do not exist within the parameters of said project area, and most residences have fenced off their rear yards hindering access for routine maintenance and or emergency response.

On September 20, 2022, the City Council awarded a contract to R.E. Chaffee Construction, Inc. in the amount of $312,000. Additionally, a contingency in the amount of $31,200 was approved for a total contract amount of $343,200.

ISSUES/ANALYSIS
A Notice to Proceed was issued to R.E. Chaffee Construction, Inc. on May 22, 2023 to begin work on the project. Construction was completed to the satisfaction of the Construction Inspector and the Project Manager on July 8, 202 3. The improvements were completed within the budget appropriated to the project. During the process of pre paring progress payments, an $1,800 miscalculation between the contract amount of $312,000 and t he actual cost for the 29 lots of $313,800 was discovered during processing of the contractor invoices which resulted in a Change

Staff Report to the Chair and Board Members of the Hesperia Water District Accept Water Service Line Relocation – Phase I, C.O. No. 8092 September 19, 2023
Order for a total amount of $1,800. The final contract amount of $313,800 is within the contract authority provided by the Board of Directors.

Staff recommends acceptance of the completed work and authorization to record a Notice of Completion for the project and release the retention amounts withheld from progress payments.

Retention funds held for this proj ect will be released to the contractor 35 days from the date of recordation.

FISCAL IMPACT
Funding for the project was budgeted in the approved Fiscal Years’ 2022-23 and 2023-24 Capital Improvement Program (CIP) Budget in Water Capital (Fund 701). The City also received a grant in the amount of $75,000 from the U.S. Department of the Interior, Bureau of Reclamation to assist with funding the project. There are no fiscal impacts related to this action.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)
None.

Green Sheet Item #7 updated after the posting
of the Agenda.

DATE: September 19, 2023
TO: Mayor and Council Members
City o~ Siespenia

STAFF REPORT
Chair and Board Members, Hesperia Housing Authority
Chair and Board Members, Hesperia Water District
FROM: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
Rita Perez, Deputy Human Resources/Risk Management Director SUBJECT: Reorganization and Revised Combined Compensation Schedules

RECOMMENDED ACTION
It is recommended that the City Council and Board of Directors of the Hesperia Housing Authority (HHA) and Hesperia Water District (HWD) adopt Resolution No. 2023-61, HWD 2023- 19 approving the City Manager's reorganization and if adopted, subsequently adopt Joint Resolution No. 2023-62, HHA 2023-11 and HWD 2023-20 approving the required Revised Combined Compensation Schedules for FY 2023-24.

BACKGROUND
The City of Hesperia is in a unique position of expected continued growth with large scale development projects, which are part of the Capital Improvement Program (CIP), such as Silverwood Masterplan Community, 1-15 corridor industrial projects, and the Hesperia Wastewater Treatment Plant.

The City is experiencing the need to increase personnel ahead of the quarterly budget process to ensure that there is sufficient staff to oversee the duration of the various phases of the projects through completion.

Additionally, for all personnel changes, the California Public Employees' Retirement System (CalPERS) requires that the City Council, Commissions, and Board of Directors (City Council) approve and adopt a Combined Compensation Schedule whenever there are changes to salaries. This requirement is needed for CalPERS to recognize the position and ensure that the employee receive service credit. The most recently approved and adopted Combined Compensation Schedule occurred on July 18, 2023, with the adoption of Joint Resolution No. 2022-15, HHA 2023-02 and HWD 2023-03, which highlighted position changes included in the Fiscal Year (FY) 2023-24 Budget.

ISSUES/ANALYSIS
To ensure the needs of the City are met, the following highlights the changes to each functional area:
• Development Services - Several of the City's critical large-scale development projects including the Silverwood Masterplan Community, 1-15 corridor industrial projects, Ranchero Road improvements, and the Wastewater Treatment Plant, requires staff to

Staff Report to the City Council and Board of Directors of the Hesperia Housing Authority and Hesperia Water District
Reorganization and Revised Combined Compensation Schedules September 19, 2023
attend to and maintain these projects. These projects are simultaneously coming to fruition and current staffing levels are not able to sustain the workload nor have the technical ability to perform the needed type of work. This necessitates an additional Deputy City Engineer, Associate Engineer, and Principal Planner. • Code Compliance - The Code Compliance Division, consisting of Animal Services and Code Enforcement, addresses a myriad of complex responsibilities including overseeing the enforcement of the City's municipal code, seven days a week of daily operations, and public interactions regarding safety. To provide for this oversight, the previously approved job classification of Code Compliance Manager is recommended to be reinstated.
• Public Works - Historically, the Public Works Division consisted of a Public Works Manager/Public Works Superintendent, who oversaw the Water Operations Manager and the Streets Operation Manager. This leadership hierarchy allowed for attainable workload balance between management responsibilities and involvement in priority projects and management of daily operations of the streets and water programs. It is recommended to retain the Director of Public Works, while adding a Water Operations Manager. Staff anticipates additional adjustments will be presented to the City Council later in the fiscal year.

Additionally, while it is anticipated that the recruitment for the Director of Public Works be a lengthy process, on a temporary basis, the City is able to appoint a CalPERS retiree to the position. In compliance with CalPERS Retirement Law Section 21224, the City Manager can designate a Retired Annuitant position. In this case, the position would be titled Director of Public Works Part-Time Retired Annuitant with a temporary duration of six-months while the City recruits for a permanent replacement.

The following positions have been previously adopted positions by Council/Board in prior fiscal years; however, these positions were not included in the most recently approved Combined Compensation Schedules in accordance with CalPERS requirements. • Building Official
• Principal Planner
• Senior Animal Care Technician
The following table highlights the position changes:

NEWLY CREATED POSITIONS
Associate Engineer
Water Operations Manager
Director of Public Works - Part-Time Retired Annuitant
FROM

CLASSIFICATION/RANGE
Professional/Supervisory/Range 40
Management/Range 44
Non-Represented Hourly/Range 52

TO CHANGES TO POSITIONS
Code Compliance Manager
Deputy City Engineer
Management/Range 41 Management/Range 44
Sr. Management/Range 46 At-Will Sr. Management/Range 48 Director of Public Works At-Will Sr. Management/Range 45 At-Will Sr Management/Range 52

Staff Report to the City Council and Board of Directors of the Hesperia Housing Authority and Hesperia Water District
Reorganization and Revised Combined Compensation Schedules September 19, 2023

FISCAL IMPACT
It is anticipated that these changes of positions can be accommodated with budgeted savings.

Should there be a need for additional funds, a budget amendment will be presented to the City Council during a quarterly budget review.

AL TERNA TIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Resolution No. 2023-61,

2. Resolution HWD 2023-19

3. Joint Resolution No. 2023-62, HWD 2023-20, and HHA 2023-11

4. Combined Compensation Schedule Revised and Effective August 21, 2023 and September 25, 2023
Green Sheet Item #7 Attachment #1 updated after the posting of the Agenda.

RESOLUTION NO. 2023-61

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

CALIFORNIA, APPROVING THE CITY MANAGER'S REORGANIZATION WHEREAS, Resolution 2023-37 approves the annual Fiscal Year 2023-24 Operating Budget.

WHEREAS, the City Manager has prepared a proposed reorganization for Fiscal Year 2023-24; and
WHEREAS, on September 5, 2023, the City Manager designated a Retired Annuitant position based on the need for specialized skills and in compliance with CalPERS Retirement law Section 21224.

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

Section 1. That the recitals above are true and correct.

Section 2. That the City Council approves the following position classification changes to be included in the 2023-24 Budget as follows:

Section 2a. That the City Council approves the new position title of Associate Engineer, which is a non-represented, professional/supervisory classification with a salary range of 40.

Section 2b. That the City Council approves the increase in the salary range for the Deputy City Engineer position from range 46 to range 48, which is a non-represented, Unclassified/At-Will Senior Management classification with an Employment Agreement.

Section 2c. That the City Council approves the increase in the salary range for the Code Compliance Manager position from range 41 to range 44, which is a non­ represented, management classification.

Section 2d. That the City Council approves the increase in the salary range for the Director of Public Works position from range 45 to range 52, which is a non-represented, Unclassified/At-Will Senior Management classification with an Employment Agreement.

Section 2e. That the City Council approves the new position title of Water Operations Manager, which is a non-represented, Management classification with a salary range of 44.

Section 2f. That the City Council approves the new position classification title of Director of Public Works Part-Time Retired Annuitant, which is a non-represented position, with a salary range of 52.

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

Resolution No. 2023-61
Page2
ADOPTED AND APPROVED this 19th day of September 2023.

Brigit Bennington, Mayor
ATTEST :

Erin Baum, Assistant City Clerk
Green Sheet Item #7 Attachment # 2 updated after the posting of the Agenda.

RESOLUTION NO. HWD 2023-19

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA

WATER DISTRICT, APPROVING THE CITY MANAGER'S REORGANIZATION WHEREAS, Resolution 2023-11 approves the annual Fiscal Year 2023-24 Operating Budget.

WHEREAS, the City Manager has prepared a proposed reorganization for Fiscal Year 2023-24; and
WHEREAS, on September 5, 2023, the City Manager designated a Retired Annuitant position based on the need for specialized skills and in compliance with CalPERS Retirement Law Section 21224.

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

Section 1. That the recitals above are true and correct.

Section 2. That the Board of Directors approves the following position classification changes to be included in the 2023-24 Budget as follows:

Section 2a. That the Board of Directors approves the new position title of Associate Engineer, which is a non-represented, professional/supervisory classification with a salary range of 40.

Section 2b. That the Board of Directors approves the increase in the salary range for the Deputy City Engineer position from range 46 to range 48, which is a non­ represented, Unclassified/At-Will Senior Management classification with an Employment Agreement.

Section 2c. That the Board of Directors approves the increase in the salary range for the Director of Public Works position from range 45 to range 52, which is a non­ represented, Unclassified/At-Will Senior Management classification with an Employment Agreement.

Section 2d. That the Board of Directors approves the new position title of Water Operations Manager, which is a non-represented, Management classification with a salary range of 44.

Section 2e. That the Board of Directors approves the new position classification title of Director of Public Works Part-Time Retired Annuitant, which is a non-represented position, with a salary range of 52.

Section 3. That the Secretary to the Board of Directors shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

Resolution HWD 2023-19
Page2
ADOPTED AND APPROVED this 19th day of September 2023.

Brigit Bennington, Chair
ATTEST:

Erin Baum, Secretary
City of Hespe ri a

STAF F REPORT
DATE: September 19, 2023
TO: Mayor and Council Members
Chair and Board Members, Hesperia Housing Authority
Chair and Board Members, Hesperia Water District
FROM: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
Rita Perez, Deputy Human Resources/Risk Management Director SUBJECT: Reorganization and Revised Combined Compensation Schedules

RECOMMENDED ACTION
It is recommended that the City Council and Board of Directors of the Hesperia Hous ing Authority (HHA) and Hesperia Water District (HWD) adopt Resolution No. 2023-61, HWD 2023- 19 approving the City Manager’s reorganization and if adopted, subsequently adopt Joint Resolution No. 2023 -62, HHA 2023 -11 and HWD 2023 -20 appr oving the required R evised Combined Compensation Schedules for FY 2023-24.

BACKGROUND
The City of Hesperia is in a unique position of expected continued growth with large scale development projects , which are pa rt of the Capital Improvement Program (CIP) , such as Silverwood Masterplan Community, I -15 corridor industrial projects, and the Hesperia Wastewater Treatment Plant.

The City is experiencing the need to increase personnel ahead of the quarterly bu dget process to ensure that there is sufficien t staff to oversee the duration of the various phases of t he projects through completion.

Additionally, for all personnel changes, th e California Public Employees' Retirement System (CalPERS) requires that the City Council, Commissions, and Board of Directors (City Council) approve and adopt a Combined Compens ation Schedule whenever there are changes to salaries. This requirement is needed for CalPERS to recognize the position and ensure that the employee r eceive service credit . The most recent ly approved and adopted Combined Compensation Schedule occurred on July 18, 2023, with the adoption of Joint Resolution No. 2022-15, HHA 2023-02 and HWD 2023-03, which highlighted position changes included in the Fiscal Year (FY) 2023-24 Budget.

ISSUES/ANALYSIS
To ensure the needs of the City are met, the following hi ghlights the changes to each functional area:
 Development Services – Several of the City’s critical large -scale development projects including th e Silverwood Masterplan Community, I -15 corridor industrial projects, Ranchero Road improvements, and the Wast ewater Treatment Plant, requires staff to

Staff Report to the City Council and Board of Directors of the Hesperia Housing Authority and Hesperia Water District
Reorganization and Revised Combined Compensation Schedules September 19, 2023
attend to and maintain these projects. These projects are simultaneously coming to fruition and current staffing levels are not able to sustain the workload nor have the technical ability to perform the needed typ e of work. This necessitates an additional Deputy City Engineer, Associate Engineer, and Principal Planner.  Code Compliance – The Code Complia nce Division, consisting of Animal Services and Code Enforcement, addresses a myriad of complex responsibilities including overseeing the enforcement of the City’s municipal code, seven days a week of daily operations, and public interactions regarding saf ety. To provide for this oversight, the previously approved job classification of Code Compliance Manager is recommended to be reinstated.
 Public Works – Historically, the Public Works Division consisted of a Public Works Manager/Public Works Superinten dent, who oversaw the Water Operations Manager and the Streets Operation Manager. This leadership hierarchy allowed for attainable workload balance between management responsibilities and involvement in priority projects and management of daily operations of the streets and water programs. It is recommended to retain the Director of Public Works , while adding a Water Operations Manager. Staff anticipates additional adjustments will be presented to the C ity Council later in the fiscal year.

Additionally, while it is anticipated that the recruitment for the Director of Public Works be a lengthy process, on a temporary basis, the City is able to appoint a CalPERS retiree to the position. I n compliance with CalPERS Retirement Law Section 21224, the City Manager can designate a Retired Annuitant position. In this case, the position would be titled Director of Public Works Part-Time Retired Annuitant with a temporary duration of six-months while the City recruits for a permanent replacement.

The following positions have been previously adopted positions by Council/Board in prior fiscal years; however, these positio ns were not included in the most recently approved Combined Compensation Schedules in accordance with CalPERS requirements.  Building Official
 Principal Planner
 Senior Animal Care Technician
The following table highlights the position changes:

NEWLY CREATED POSITIONS CLASSIFICATION/RANGE
Associate Engineer Professional/Supervisory/Range 43
Water Operations Manager Management/Range 44
Director of Public Works – Part-Time Retired Annuitant Non-Represented Hourly/Range 52

CHANGES TO POSITIONS FROM TO
Code Compliance Manager Management/Range 41 Management/Range 44

Deputy City Engineer Sr. Management/Range 46 At-Will Sr. Management/Range 48 Director of Public Works At-Will Sr. Management/Range 45 At-Will Sr Management/Range 52

Staff Report to the City Council and Board of Directors of the Hesperia Housing Authority and Hesperia Water District
Reorganization and Revised Combined Compensation Schedules September 19, 2023

FISCAL IMPACT

It is anticipated that these changes of positions can be accommodated with budgeted savings.

Should there be a need for additional funds, a budget amendment will be presented to the City Council during a quarterly budget review.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Resolution No. 2023-61,

2. Resolution HWD 2023-19

3. Joint Resolution No. 2023-62, HWD 2023-20, and HHA 2023-11

4. Combined Compensat ion Schedule Revised and E ffective August 21 , 2023 and September 25, 2023

RESOLUTION NO. 2023-61

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HESPERIA, CALIFORNIA, APPROVING THE CITY MANAGER’S REORGANIZATION WHEREAS, Resolution 2023-37 approves the annual Fiscal Year 2023-24 Operating Budget.

WHEREAS, the City Manager has prepared a proposed reorganization for Fiscal Year 2023-24; and
WHEREAS, on September 5, 2023 , the City Manager designated a Retired Annuitant position based on the need for specia lized skills and in compliance with CalPERS Retirement Law Section 21224.

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

Section 1. That the recitals above are true and correct.

Section 2. That the City Council approves the following position classification changes to be included in the 2023-24 Budget as follows:

Section 2a. That the City Counc il approves the new position title of Associate Engineer, which is a non-represented, professional/supervisory classification with a salary range of 43.

Section 2b. That the City Co uncil approves the increase in the salary range for the Deputy City Engineer position from range 46 to range 48, which is a non-represented, Unclassified/At-Will Senior Management classification with an Employment Agreement.

Section 2c. That the City Coun cil approves the increase in the salary range for the Code Compliance Manager position from range 41 to range 44, which is a non- represented, management classification.

Section 2d. That the City Counc il approves the increase in the salary range for the Director of Public Works position from range 45 to range 52, which is a non-represented, Unclassified/At-Will Senior Management classification with an Employment Agreement.

Section 2e. That the City Council appro ves the new position title of Water Operation s Manager, which is a non -represented, Manageme nt classification with a salary range of 44.

Section 2f. That the City Council approves the new position classification title of Director of Public Works Part-Time Retired Annuitant, which is a non -represented position, with a salary range of 52.

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

Resolution No. 2023-61

ADOPTED AND APPROVED this 19th day of September 2023.

______________________________
Brigit Bennington, Mayor

ATTEST:

_______________________________________
Erin Baum, Assistant City Clerk

RESOLUTION NO. HWD 2023-19

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE HESPERIA
WATER DISTRICT, APPROVING THE CITY MANAGER’S REORGANIZATION

WHEREAS, Resolution 2023-11 approves the annual Fiscal Year 2023-24 Operating Budget.

WHEREAS, the City Manager has prepared a proposed reorganization for Fiscal Year 2023-24; and

WHEREAS, on September 5, 2023 , the City Manager designated a Retired Annuitant position based on the need for specia lized skills and in compliance with CalPERS Retirement Law Section 21224.

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

Section 1. That the recitals above are true and correct.

Section 2. That the Board of Directors approves the following position classi fication changes to be included in the 2023-24 Budget as follows:

Section 2a. That the Board of Directors approves the new position title of Associate Engineer, which is a non-represented, professional/supervisory classification with a salary range of 43.

Section 2b. That the Board of Directors approves the increase in the salary range for the Deputy City Engineer position from range 46 to range 48, which is a non- represented, Unclassified/At-Will Senior Management classification with an Employment Agreement.

Section 2c. That the Board of Directors approves the increase in the salary range for the Director of Public W orks position from range 45 to range 52, which is a non- represented, Unclassified/At-Will Senior Management classification with an Employment Agreement.

Section 2d. That the Board of Directors approves the new position title of Water Operations Manager, which is a non -represented, Manageme nt classification with a salary range of 44.

Section 2e. That the Board of Directors approves the new position classi fication title of Director of Public Works Part-Time Retired Annuitant, which is a non - represented position, with a salary range of 52.

Section 3. That the Secretary to the Board of D irectors shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

Resolution HWD 2023-19

ADOPTED AND APPROVED this 19th day of September 2023.

______________________________
Brigit Bennington, Chair

ATTEST:

_______________________________________
Erin Baum, Secretary

JOINT RESOLUTION NO. 2023-62
RESOLUTION HHA 2023-11
RESOLUTION HWD 2023-20

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

CALIFORNIA, THE BOARD OF DIRECTORS OF THE HESPERIA WATER

DISTRICT, AND THE BOARD OF DIRECTORS OF THE HESPERIA HOUSIN G AUTHORITY APPROVING THE CITY’S REVISED COMBINED

COMPENSATION SCHEDULE

WHEREAS, in compliance with California Public Employees’ Retirement System ( CalPERS) and Title 2 of C alifornia Code of Regulations Section 570.5 , the City C ouncil of the City of Hesperia and the Board of Directors of the Hesperia Water District must approve and adopt a Compensation Schedule that lists all employee positions; and

WHEREAS, the City Council of the City of Hesperia and the Board of Directors of the Hesperia Water District adopted a Combined Compensation Schedule on July 18, 2023; and

WHEREAS, Joint Resolution No. 2023-44, HWD 202 3-14, and HHA 2023 -07 approves the Combined Compensation Schedule; and

WHEREAS, Joint Resolution No. 2022-45, Exhibit A prescribes the salaries, benefits, and other related policies for employees of the City not represented by an employee labor relati ons organization and commonly called Non-Represented Employees; and

WHEREAS, Resolution 2022-35 and HWD 2022 -05 Exhibit A prescrib es a Memorandum of Understanding and the salaries, benefits, and other terms and conditions for employees of the City of Hesperia represented by the Teamsters Local 1932; and

WHEREAS, Joint Reso lution N o. 2023 -27 and HWD 2023-04 approves a side letter of agreement to the Memorandum of Understanding between the City of Hesperia and Teamsters Local 1932; and

WHEREAS, on October 4, 2022, the City C ouncil approved an Employment Agreement which prescribes the salaries and benefits of the City Manager; and

WHEREAS, Resolution No. 2023-37, Resolution HWD 2023-11, and Resolution HHA 2023-06 approves the annual Fiscal Year 2023-24 Operating Budget; and

WHEREAS, Resolution No. 2023-61, and Resolution HWD 2023 -19 approves the organizational changes for Fiscal Year 2023-24; and

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF

HESPERIA, CALIFORNIA, THE BOARD OF DIRECTORS OF THE HESPERIA WATER

DISTRICT AND THE BOARD OF DIRECTORS OF THE HESPERIA HOUSING AUTHORITY AS FOLLOWS:

Section 1. That the recitals above are true and correct.

Section 2. That the City Council and Board of Directors of the Hesperia Water District and Hesperia Housing Authority approves the attached revised Combined Compensation Schedules effective August 21, 2023 and September 25, 2023. The

Joint Resolution No. 2023-62, HWD 2023-20 and HHA 2023-11

schedules list all employee positions, clearly indicate s the time base for salaries, base pay rates only and includes the effective and rev ised dates of the schedule .

The schedules will be posted on the City’s internet page once approved.

Section 3. That the City Clerk/Board Secretary shall certify to the passage and adoption of this Joint Resolution and enter it into the book of original resolutions.

ADOPTED AND APPROVED this 19th day of September 2023.

______________________________
Brigit Bennington, Mayor/Chair

ATTEST:

_______________________________________
Erin Baum, Assistant City Clerk/Board Secretary

Non-Represented Full-Time Monthly Rates Benefit Group Range # 1 234 5 6 7 89 1 0 11 Accountant GEN 33 5,670 5,783 5,899 6,017 6,137 6,260 6,385 6,513 6,643 6,776 6,912 Accounting Technician GEN 31 5,143 5,246 5,351 5,458 5,567 5,678 5,792 5,908 6,026 6,147 6,270 Administrative Aide GEN 27 4,231 4,316 4,402 4,490 4,580 4,672 4,765 4,860 4,957 5,056 5,157 Administrative Analyst PRO/SUP 34 5,954 6,073 6,195 6,319 6,445 6,574 6,706 6,840 6,977 7,117 7,259 Administrative Secretary GEN 30 4,898 4,996 5,096 5,198 5,302 5,408 5,516 5,626 5,739 5,854 5,971 Animal Services Specialist PRO/SUP 34 5,954 6,073 6,195 6,319 6,445 6,574 6,706 6,840 6,977 7,117 7,259 Animal Services Supervisor PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Assistant City Clerk PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Assistant City Manager AW SR. MGT 53 15,050 15,351 15,658 15,971 16,290 16,616 16,948 17,287 17,633 17,986 18,346 Assistant Engineer PRO/SUP 38 7,238 7,383 7,531 7,682 7,836 7,993 8,153 8,316 8,482 8,652 8,825 Assistant Planner PRO/SUP 35 6,252 6,377 6,505 6,635 6,768 6,903 7,041 7,182 7,326 7,473 7,623 Assistant Project Manager PRO/SUP 38 7,238 7,383 7,531 7,682 7,836 7,993 8,153 8,316 8,482 8,652 8,825 Assitant to the City Manager MGT 43 9,238 9,423 9,612 9,804 10,000 10,200 10,404 10,612 10,824 11,041 11,262 Associate Planner PRO/SUP 38 7,238 7,383 7,531 7,682 7,836 7,993 8,153 8,316 8,482 8,652 8,825 Budget/Finance Specialist GEN 33 5,670 5,783 5,899 6,017 6,137 6,260 6,385 6,513 6,643 6,776 6,912 Code Enforcement Supervisor PRO/SUP 39 7,600 7,752 7,907 8,065 8,226 8,391 8,559 8,730 8,905 9,083 9,265 Community Development Supervisor PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Customer Service Supervisor PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Deputy City Clerk GEN 28 4,443 4,532 4,623 4,716 4,810 4,906 5,004 5,104 5,206 5,310 5,416 Deputy City Engineer AW SR. MGT 48 11,791 12,027 12,268 12,513 12,763 13,018 13,278 13,544 13,815 14,091 14,373 Deputy City Manager/ City Clerk AW SR. MGT 52 14,333 14,620 14,912 15,210 15,514 15,824 16,141 16,464 16,793 17,129 17,472 Deputy Community Development Director SR. MGT 45 10,185 10,389 10,597 10,809 11,025 11,246 11,471 11,700 11,934 12,173 12,417 Deputy Development Services Director SR. MGT 45 10,185 10,389 10,597 10,809 11,025 11,246 11,471 11,700 11,934 12,173 12,417 Deputy Finance Director SR. MGT 46 10,694 10,908 11,126 11,349 11,576 11,808 12,044 12,285 12,531 12,782 13,038 Deputy Human Resources/Risk Management Director SR. MGT 45 10,185 10,389 10,597 10,809 11,025 11,246 11,471 11,700 11,934 12,173 12,417 Director of Development Services AW SR. MGT 52 14,333 14,620 14,912 15,210 15,514 15,824 16,141 16,464 16,793 17,129 17,472 Director of Public Works AW SR. MGT 45 10,185 10,389 10,597 10,809 11,025 11,246 11,471 11,700 11,934 12,173 12,417 Economic Development Manager MGT 44 9,700 9,894 10,092 10,294 10,500 10,710 10,924 11,143 11,366 11,593 11,825 Engineering Specialist GEN 32 5,400 5,508 5,618 5,730 5,845 5,962 6,081 6,203 6,327 6,454 6,583 Facilities Supervisor PRO/SUP 38 7,238 7,383 7,531 7,682 7,836 7,993 8,153 8,316 8,482 8,652 8,825 Field Services Supervisor PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Finance Manager MGT 40 7,980 8,140 8,303 8,469 8,638 8,811 8,987 9,167 9,350 9,537 9,728 Financial Analyst PRO/SUP 35 6,252 6,377 6,505 6,635 6,768 6,903 7,041 7,182 7,326 7,473 7,623 Fleet/Warehouse Supervisor PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Geographical Information Systems Manager MGT 41 8,379 8,547 8,718 8,892 9,070 9,251 9,436 9,625 9,818 10,014 10,214 Geographical Information Systems Technician GEN 32 5,400 5,508 5,618 5,730 5,845 5,962 6,081 6,203 6,327 6,454 6,583 Human Resources Analyst PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Human Resources Specialist PRO/SUP 35 6,252 6,377 6,505 6,635 6,768 6,903 7,041 7,182 7,326 7,473 7,623 Information Systems Manager MGT 44 9,700 9,894 10,092 10,294 10,500 10,710 10,924 11,143 11,366 11,593 11,825 Information Systems Specialist MGT 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Information Systems Technician GEN 32 5,400 5,508 5,618 5,730 5,845 5,962 6,081 6,203 6,327 6,454 6,583 Maintenance Crew Supervisor PRO/SUP 38 7,238 7,383 7,531 7,682 7,836 7,993 8,153 8,316 8,482 8,652 8,825 Management Analyst PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Office Assistant GEN 26 4,029 4,110 4,192 4,276 4,362 4,449 4,538 4,629 4,722 4,816 4,912 Personnel Technician GEN 32 5,400 5,508 5,618 5,730 5,845 5,962 6,081 6,203 6,327 6,454 6,583 Plans Examiner PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Project Manager MGT 40 7,980 8,140 8,303 8,469 8,638 8,811 8,987 9,167 9,350 9,537 9,728 Public Relations Analyst PRO/SUP 39 7,600 7,752 7,907 8,065 8,226 8,391 8,559 8,730 8,905 9,083 9,265 Public Works Inspection Supervisor PRO/SUP 39 7,600 7,752 7,907 8,065 8,226 8,391 8,559 8,730 8,905 9,083 9,265 Public Works Inspector GEN 35 6,252 6,377 6,505 6,635 6,768 6,903 7,041 7,182 7,326 7,473 7,623 Public Works Supervisor MGT 40 7,980 8,140 8,303 8,469 8,638 8,811 8,987 9,167 9,350 9,537 9,728 Risk Manager MGT 40 7,980 8,140 8,303 8,469 8,638 8,811 8,987 9,167 9,350 9,537 9,728 Secretary to the City Manager and City Council PRO/SUP 35 6,252 6,377 6,505 6,635 6,768 6,903 7,041 7,182 7,326 7,473 7,623 Senior Accountant MGT 38 7,238 7,383 7,531 7,682 7,836 7,993 8,153 8,316 8,482 8,652 8,825 Senior Code Enforcement Officer GEN 35 6,252 6,377 6,505 6,635 6,768 6,903 7,041 7,182 7,326 7,473 7,623 Senior Community Development Technician GEN 32 5,400 5,508 5,618 5,730 5,845 5,962 6,081 6,203 6,327 6,454 6,583 Senior Office Assistant GEN 28 4,443 4,532 4,623 4,716 4,810 4,906 5,004 5,104 5,206 5,310 5,416 Senior Office Specialist GEN 28 4,443 4,532 4,623 4,716 4,810 4,906 5,004 5,104 5,206 5,310 5,416 Senior Planner MGT 41 8,379 8,547 8,718 8,892 9,070 9,251 9,436 9,625 9,818 10,014 10,214 Senior Project Manager MGT 43 9,238 9,423 9,612 9,804 10,000 10,200 10,404 10,612 10,824 11,041 11,262 City Manager Contract* Annually: $254,000; Monthly: $21,200 *Employment Agreement approved by City Council October 4, 2022 to be effective June 18, 2023 REVISED: September 19, 2023 Effective: August 21, 2023

CITY OF HESPERIA

HESPERIA WATER DISTRICT

COMBINED COMPENSATION SCHEDULE

INCLUDES CITY OF HESPERIA, HESPERIA WATER DISTRICT AND HESPERIA HOUSING AUTHORITY APPROVED AND ADOPTED: July 18, 2023, September 19, 2023 Attachment 3 Page 1 of 2 09/19/23 rp
Attachment 4

REVISED: September 19, 2023 Effective: August 21, 2023

CITY OF HESPERIA

HESPERIA WATER DISTRICT

COMBINED COMPENSATION SCHEDULE

INCLUDES CITY OF HESPERIA, HESPERIA WATER DISTRICT AND HESPERIA HOUSING AUTHORITY APPROVED AND ADOPTED: July 18, 2023, September 19, 2023 Teamsters, Local 1932, Full -Time Monthly Rates Benefit Group Range # AB C D E Animal Care Technician TEAMSTERS 8 3,896 4,091 4,296 4,511 4,737 Animal Control Officer TEAMSTERS 12 4,737 4,974 5,223 5,484 5,758 Building Inspector TEAMSTERS 18 6,348 6,665 6,998 7,348 7,715 Code Enforcement Officer TEAMSTERS 17 6,046 6,348 6,665 6,998 7,348 Community Development Technician TEAMSTERS 12 4,737 4,974 5,223 5,484 5,758 Custodian TEAMSTERS 8 3,896 4,091 4,296 4,511 4,737
Customer Service Representative TEAMSTERS 10 4,296 4,511 4,737 4,974 5,223 Equipment Operator TEAMSTERS 12.5 4,854 5,097 5,352 5,620 5,901 Equipment Operator/Water TEAMSTERS 13 4,974 5,223 5,484 5,758 6,046 Facilities Maintenance Technician TEAMSTERS 12 4,737 4,974 5,223 5,484 5,758 Maintenance Worker TEAMSTERS 10 4,296 4,511 4,737 4,974 5,223 Maintenance Worker/Water TEAMSTERS 10.5 4,403 4,623 4,854 5,097 5,352 Meter Reader TEAMSTERS 10 4,296 4,511 4,737 4,974 5,223 Pump Operator TEAMSTERS 12.5 4,854 5,097 5,352 5,620 5,901 Senior Account Clerk TEAMSTERS 12 4,737 4,974 5,223 5,484 5,758 Senior Animal Care Technician TEAMSTERS 10 4,296 4,511 4,737 4,974 5,223 Senior Animal Control Officer TEAMSTERS 14 5,223 5,484 5,758 6,046 6,348 Senior Custodian TEAMSTERS 10 4,296 4,511 4,737 4,974 5,223 Senior Maintenance Worker TEAMSTERS 13 4,974 5,223 5,484 5,758 6,046 Senior Maintenance Worker/Water TEAMSTERS 13.5 5,097 5,352 5,620 5,901 6,196 Senior Pump Maintenance Worker TEAMSTERS 14.5 5,352 5,620 5,901 6,196 6506 Senior Pump Operator TEAMSTERS 14.5 5,352 5,620 5,901 6,196 6506 Senior Warehouse Technician TEAMSTERS 12 4,737 4,974 5,223 5,484 5,758 Traffic Signal Technician TEAMSTERS 14 5,223 5,484 5,758 6,046 6,348 Utility Line Locator TEAMSTERS 10 4,296 4,511 4,737 4,974 5,223 Water Quality Specialist TEAMSTERS 14.5 5,352 5,620 5,901 6,196 6506 Water Quality Technician TEAMSTERS 12.5 4,854 5,097 5,352 5,620 5,901 Non-Represented Part-Time Hourly Rates Benefit Group Range # 12 3 4 5 6 7 8 9 1 0 1 1 Administrative Intern - Part-Time PART-TIME 15.50
Animal Care Technician - Part-Time PART-TIME 8 21.82 22.91 24.06 25.26 26.53 Custodian- Part-Time PART-TIME 8 21.82 22.91 24.06 25.26 26.53 Customer Service Representative - Part-Time PART-TIME 10 24.06 25.26 26.53 27.85 29.24 Information Systems Technician - Part-Time PART-TIME 32 31.15 31.78 32.41 33.06 33.72 34.40 35.08 35.79 36.50 37.24 37.98 Maintenance Worker - Part-Time PART-TIME 10 24.06 25.26 26.53 27.85 29.24 Office Assistant - Part-Time PART-TIME 26 23.24 23.71 24.19 24.67 25.17 25.67 26.18 26.71 27.24 27.79 28.34 Receptionist - Part-Time PART-TIME 6 19.79 20.78 21.82 22.91 24.06 Senior Warehouse Technician - Part-Time PART-TIME 12 26.53 27.85 29.24 30.71 32.24 Principal Planner - Part-Time Retired Annuitant RETIRED 44 55.96 57.08 58.22 59.39 60.58 61.79 63.02 64.29 65.57 66.88 68.22 GEN = General
PRO/SUP = Professional/Supervisory
MGT = Management
TEAMSTERS = Teamsters Local 1932
RETIRED = Retired Annuitant
SR. MGT = Senior Management
AW SR. MGT = At-Will Senior Management
Attachment 3 Page 2 of 2 09/19/23 rp

Non-Represented Full-Time Monthly Rates Benefit Group Range # 1 2 3 4 5 6789 1 0 11 Accountant GEN 33 5,670 5,783 5,899 6,017 6,137 6,260 6,385 6,513 6,643 6,776 6,912 Accounting Technician GEN 31 5,143 5,246 5,351 5,458 5,567 5,678 5,792 5,908 6,026 6,147 6,270 Administrative Aide GEN 27 4,231 4,316 4,402 4,490 4,580 4,672 4,765 4,860 4,957 5,056 5,157 Administrative Analyst PRO/SUP 34 5,954 6,073 6,195 6,319 6,445 6,574 6,706 6,840 6,977 7,117 7,259 Administrative Secretary GEN 30 4,898 4,996 5,096 5,198 5,302 5,408 5,516 5,626 5,739 5,854 5,971 Animal Services Specialist PRO/SUP 34 5,954 6,073 6,195 6,319 6,445 6,574 6,706 6,840 6,977 7,117 7,259 Animal Services Supervisor PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Assistant City Clerk PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Assistant City Manager AW SR. MGT 53 15,050 15,351 15,658 15,971 16,290 16,616 16,948 17,287 17,633 17,986 18,346 Assistant Engineer PRO/SUP 38 7,238 7,383 7,531 7,682 7,836 7,993 8,153 8,316 8,482 8,652 8,825 Assistant Planner PRO/SUP 35 6,252 6,377 6,505 6,635 6,768 6,903 7,041 7,182 7,326 7,473 7,623 Assistant Project Manager PRO/SUP 38 7,238 7,383 7,531 7,682 7,836 7,993 8,153 8,316 8,482 8,652 8,825 Assistant to the City Manager MGT 43 9,238 9,423 9,612 9,804 10,000 10,200 10,404 10,612 10,824 11,041 11,262 Associate Engineer PRO/SUP 40 7,980 8,140 8,303 8,469 8,638 8,811 8,987 9,167 9,350 9,537 9,728 Associate Planner PRO/SUP 38 7,238 7,383 7,531 7,682 7,836 7,993 8,153 8,316 8,482 8,652 8,825 Building Official MGT 43 9,238 9,423 9,612 9,804 10,000 10,200 10,404 10,612 10,824 11,041 11,262 Building Official Y-Rate Y-Rate 12,417
Budget/Finance Specialist GEN 33 5,670 5,783 5,899 6,017 6,137 6,260 6,385 6,513 6,643 6,776 6,912 Code Enforcement Supervisor PRO/SUP 39 7,600 7,752 7,907 8,065 8,226 8,391 8,559 8,730 8,905 9,083 9,265 Code Compliance Mangaer MGT 44 9,700 9,894 10,092 10,294 10,500 10,710 10,924 11,143 11,366 11,593 11,825 Community Development Supervisor PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Customer Service Supervisor PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Deputy City Clerk GEN 28 4,443 4,532 4,623 4,716 4,810 4,906 5,004 5,104 5,206 5,310 5,416 Deputy City Engineer AW SR. MGT 48 11,791 12,027 12,268 12,513 12,763 13,018 13,278 13,544 13,815 14,091 14,373 Deputy City Manager/ City Clerk AW SR. MGT 52 14,333 14,620 14,912 15,210 15,514 15,824 16,141 16,464 16,793 17,129 17,472 Deputy Community Development Director SR. MGT 45 10,185 10,389 10,597 10,809 11,025 11,246 11,471 11,700 11,934 12,173 12,417 Deputy Development Services Director SR. MGT 45 10,185 10,389 10,597 10,809 11,025 11,246 11,471 11,700 11,934 12,173 12,417 Deputy Finance Director SR. MGT 46 10,694 10,908 11,126 11,349 11,576 11,808 12,044 12,285 12,531 12,782 13,038 Deputy Human Resources/Risk Management Director SR. MGT 45 10,185 10,389 10,597 10,809 11,025 11,246 11,471 11,700 11,934 12,173 12,417 Director of Development Services AW SR. MGT 52 14,333 14,620 14,912 15,210 15,514 15,824 16,141 16,464 16,793 17,129 17,472 Director of Public Works AW SR. MGT 52 14,333 14,620 14,912 15,210 15,514 15,824 16,141 16,464 16,793 17,129 17,472 Economic Development Manager MGT 44 9,700 9,894 10,092 10,294 10,500 10,710 10,924 11,143 11,366 11,593 11,825 Engineering Specialist GEN 32 5,400 5,508 5,618 5,730 5,845 5,962 6,081 6,203 6,327 6,454 6,583 Facilities Supervisor PRO/SUP 38 7,238 7,383 7,531 7,682 7,836 7,993 8,153 8,316 8,482 8,652 8,825 Field Services Supervisor PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Finance Manager MGT 40 7,980 8,140 8,303 8,469 8,638 8,811 8,987 9,167 9,350 9,537 9,728 Financial Analyst PRO/SUP 35 6,252 6,377 6,505 6,635 6,768 6,903 7,041 7,182 7,326 7,473 7,623 Fleet/Warehouse Supervisor PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Geographical Information Systems Manager MGT 41 8,379 8,547 8,718 8,892 9,070 9,251 9,436 9,625 9,818 10,014 10,214 Geographical Information Systems Technician GEN 32 5,400 5,508 5,618 5,730 5,845 5,962 6,081 6,203 6,327 6,454 6,583 Human Resources Analyst PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Human Resources Specialist PRO/SUP 35 6,252 6,377 6,505 6,635 6,768 6,903 7,041 7,182 7,326 7,473 7,623 Information Systems Manager MGT 44 9,700 9,894 10,092 10,294 10,500 10,710 10,924 11,143 11,366 11,593 11,825 Information Systems Specialist MGT 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Information Systems Technician GEN 32 5,400 5,508 5,618 5,730 5,845 5,962 6,081 6,203 6,327 6,454 6,583 Maintenance Crew Supervisor PRO/SUP 38 7,238 7,383 7,531 7,682 7,836 7,993 8,153 8,316 8,482 8,652 8,825 Management Analyst PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Office Assistant GEN 26 4,029 4,110 4,192 4,276 4,362 4,449 4,538 4,629 4,722 4,816 4,912 Personnel Technician GEN 32 5,400 5,508 5,618 5,730 5,845 5,962 6,081 6,203 6,327 6,454 6,583 Plans Examiner PRO/SUP 37 6,893 7,031 7,172 7,315 7,461 7,610 7,762 7,917 8,075 8,237 8,402 Project Manager MGT 40 7,980 8,140 8,303 8,469 8,638 8,811 8,987 9,167 9,350 9,537 9,728 Public Relations Analyst PRO/SUP 39 7,600 7,752 7,907 8,065 8,226 8,391 8,559 8,730 8,905 9,083 9,265 Public Works Inspection Supervisor PRO/SUP 39 7,600 7,752 7,907 8,065 8,226 8,391 8,559 8,730 8,905 9,083 9,265 Public Works Inspector GEN 35 6,252 6,377 6,505 6,635 6,768 6,903 7,041 7,182 7,326 7,473 7,623 Public Works Supervisor MGT 40 7,980 8,140 8,303 8,469 8,638 8,811 8,987 9,167 9,350 9,537 9,728 Risk Manager MGT 40 7,980 8,140 8,303 8,469 8,638 8,811 8,987 9,167 9,350 9,537 9,728 Principal Planner MGT 44 9,700 9,894 10,092 10,294 10,500 10,710 10,924 11,143 11,366 11,593 11,825 Secretary to the City Manager and City Council PRO/SUP 35 6,252 6,377 6,505 6,635 6,768 6,903 7,041 7,182 7,326 7,473 7,623 Senior Accountant MGT 38 7,238 7,383 7,531 7,682 7,836 7,993 8,153 8,316 8,482 8,652 8,825 Senior Code Enforcement Officer GEN 35 6,252 6,377 6,505 6,635 6,768 6,903 7,041 7,182 7,326 7,473 7,623 Senior Community Development Technician GEN 32 5,400 5,508 5,618 5,730 5,845 5,962 6,081 6,203 6,327 6,454 6,583 Senior Office Assistant GEN 28 4,443 4,532 4,623 4,716 4,810 4,906 5,004 5,104 5,206 5,310 5,416 Senior Office Specialist GEN 28 4,443 4,532 4,623 4,716 4,810 4,906 5,004 5,104 5,206 5,310 5,416 Senior Planner MGT 41 8,379 8,547 8,718 8,892 9,070 9,251 9,436 9,625 9,818 10,014 10,214 Senior Project Manager MGT 43 9,238 9,423 9,612 9,804 10,000 10,200 10,404 10,612 10,824 11,041 11,262 Water Operations Manager MGT 44 9,700 9,894 10,092 10,294 10,500 10,710 10,924 11,143 11,366 11,593 11,825 City Manager Contract* Annually: $254,000; Monthly: $21,200 *Employment Agreement approved by City Council October 4, 2022 to be effective June 18, 2023 REVISED: September 19, 2023 Effective: September 25, 2023

CITY OF HESPERIA

HESPERIA WATER DISTRICT

COMBINED COMPENSATION SCHEDULE

INCLUDES CITY OF HESPERIA, HESPERIA WATER DISTRICT AND HESPERIA HOUSING AUTHORITY APPROVED AND ADOPTED: July 18, 2023, September 19, 2023 Attachment 3.1 Page 1 of 2 09/19/23 rp

REVISED: September 19, 2023 Effective: September 25, 2023

CITY OF HESPERIA

HESPERIA WATER DISTRICT

COMBINED COMPENSATION SCHEDULE

INCLUDES CITY OF HESPERIA, HESPERIA WATER DISTRICT AND HESPERIA HOUSING AUTHORITY APPROVED AND ADOPTED: July 18, 2023, September 19, 2023 Teamsters, Local 1932, Full -Time Monthly Rates Benefit Group Range # AB C D E Animal Care Technician TEAMSTERS 8 3,896 4,091 4,296 4,511 4,737 Animal Control Officer TEAMSTERS 12 4,737 4,974 5,223 5,484 5,758 Building Inspector TEAMSTERS 18 6,348 6,665 6,998 7,348 7,715 Code Enforcement Officer TEAMSTERS 17 6,046 6,348 6,665 6,998 7,348 Community Development Technician TEAMSTERS 12 4,737 4,974 5,223 5,484 5,758 Custodian TEAMSTERS 8 3,896 4,091 4,296 4,511 4,737
Customer Service Representative TEAMSTERS 10 4,296 4,511 4,737 4,974 5,223 Equipment Operator TEAMSTERS 12.5 4,854 5,097 5,352 5,620 5,901 Equipment Operator/Water TEAMSTERS 13 4,974 5,223 5,484 5,758 6,046 Facilities Maintenance Technician TEAMSTERS 12 4,737 4,974 5,223 5,484 5,758 Maintenance Worker TEAMSTERS 10 4,296 4,511 4,737 4,974 5,223 Maintenance Worker/Water TEAMSTERS 10.5 4,403 4,623 4,854 5,097 5,352 Meter Reader TEAMSTERS 10 4,296 4,511 4,737 4,974 5,223 Pump Operator TEAMSTERS 12.5 4,854 5,097 5,352 5,620 5,901 Senior Account Clerk TEAMSTERS 12 4,737 4,974 5,223 5,484 5,758 Senior Animal Care Technician TEAMSTERS 10 4,296 4,511 4,737 4,974 5,223 Senior Animal Control Officer TEAMSTERS 14 5,223 5,484 5,758 6,046 6,348 Senior Custodian TEAMSTERS 10 4,296 4,511 4,737 4,974 5,223 Senior Maintenance Worker TEAMSTERS 13 4,974 5,223 5,484 5,758 6,046 Senior Maintenance Worker/Water TEAMSTERS 13.5 5,097 5,352 5,620 5,901 6,196 Senior Pump Maintenance Worker TEAMSTERS 14.5 5,352 5,620 5,901 6,196 6,506 Senior Pump Operator TEAMSTERS 14.5 5,352 5,620 5,901 6,196 6,506 Senior Warehouse Technician TEAMSTERS 12 4,737 4,974 5,223 5,484 5,758 Traffic Signal Technician TEAMSTERS 14 5,223 5,484 5,758 6,046 6,348 Utility Line Locator TEAMSTERS 10 4,296 4,511 4,737 4,974 5,223 Water Quality Specialist TEAMSTERS 14.5 5,352 5,620 5,901 6,196 6,506 Water Quality Technician TEAMSTERS 12.5 4,854 5,097 5,352 5,620 5,901 Non-Represented Part-Time Hourly Rates Benefit Group Range # 1 2 3 4 5 6789 1 0 1 1 Administrative Intern - Part-Time PART-TIME 15.50
Animal Care Technician - Part-Time PART-TIME 8 21.82 22.91 24.06 25.26 26.53 Custodian- Part-Time PART-TIME 8 21.82 22.91 24.06 25.26 26.53 Customer Service Representative - Part-Time PART-TIME 10 24.06 25.26 26.53 27.85 29.24 Information Systems Technician - Part-Time PART-TIME 32 31.15 31.78 32.41 33.06 33.72 34.40 35.08 35.79 36.50 37.24 37.98 Maintenance Worker - Part-Time PART-TIME 10 24.06 25.26 26.53 27.85 29.24 Office Assistant - Part-Time PART-TIME 26 23.24 23.71 24.19 24.67 25.17 25.67 26.18 26.71 27.24 27.79 28.34 Receptionist - Part-Time PART-TIME 6 19.79 20.78 21.82 22.91 24.06 Senior Warehouse Technician - Part-Time PART-TIME 12 26.53 27.85 29.24 30.71 32.24 Director of Public Works - Part-Time Retired Annuitant RETIRED 52 82.69 84.35 86.03 87.75 89.50 91.29 93.12 94.99 96.88 98.82 100.80 Principal Planner - Part-Time Retired Annuitant RETIRED 44 55.96 57.08 58.22 59.39 60.58 61.79 63.02 64.29 65.57 66.88 68.22 GEN = General
PRO/SUP = Professional/Supervisory
MGT = Management
TEAMSTERS = Teamsters Local 1932
RETIRED = Retired Annuitant
SR. MGT = Senior Management
AW SR. MGT = At-Will Senior Management
Attachment 3.1 Page 2 of 2 09/19/23 rp

THIS PAGE LEFT INTENTIONALLY BLANK

City of Hesperia

STAFF REPORT
DATE: September 19, 2023
TO: Mayor and City Council Members
FROM: Rachel Molina, City Manager
BY: Nathan R. Freeman, Director of Development Services Victor Knight, Economic Development Manager
SUBJECT: Program Year 2022-2023 Community Developm ent Block Grant (CDBG ), Consolidated Annual Performance and Evaluation Report (CAPER)

RECOMMENDED ACTION
It is recommended that the City Council conduct a public hearing and upon accepting public testimony: 1) Approve the Program Year 2022-2023 Consolidated Annual Performance Evaluation Report (“CAPER”); and 2) Authorize the City Manager and/or designee to submit the Program Year 2022-2023 CAPER to the U.S. Department of Housing and Urban Development (“HUD”), along with any public testimony and changes thereto as directed by the City Council.

BACKGROUND
HUD requires the City to prepare and submit a CAPER to describe the City ’s progress in meeting the goals established in th e Program Year 2022-2023 Action Plan that was approved by the City Council on April 19, 2022. The CAPER must be submitted to HUD on or before September 28, 2023, to comply with HUD regulations found at 24 Code of Federal Regulations

91.520. The Program Year 2022-2023 CAPER was prepared and made available for the HUD required 15-day public review and comment period, which began on September 1, 2023, and concluded on September 19, 2023.

During the 202 2-2023 program year, the City received $941,162 in Community Development Block Grant (CDBG) funds. In addition, the City repurposed $467,000 in prior year CDBG funds for a total 2022-2023 program budget of $ 1,408,162 to be awarded to activities designed to meet the City’s Five-Year Consolidated Plan – Strategic Plan goals. This was the third year of the City’s five-year 2020-2024 Consolidated Plan cycle for the CDBG program. On November 15, 2022, the City approved a Substantial Amendment to the 2022 -2023 Action Plan to repurpose $211,103 in uncommitted pre -Program Year 2022 CDBG funds, and transfer $3,535,941 of Neighborhood Stabiliz ation Program ( “NSP”) income to the City’s existing 2021-2022 Street Improvement Project. The Substantial Amendment increased the 2021 -2022 Street Improvement Project by a total of $3,747,044.

ISSUES/ANALYSIS
Prior to the commencement of the 15-day public review period, the City published a notice in the Victorville Daily Press (English and Spanish) informing the public that the City had prepared the Draft 2022-2023 CAPER and its availability for review and comment until September 19, 2023.

The public was informed of the opportunity to provide oral and/or written comments on the CAPER and to date , no public comments have been received. Additionally, the Citizen Participation Plan requires that a public hearing be held to receive comments from interest ed

Staff Report to the Mayor and Council Members
Program Year 2022-2023 CDBG CAPER
September 19, 2023
residents or parties regarding the CAPER. This public hearing fulfills the requirements for the public hearing.

The accomplishments for this year include, but are not limited to:
 Funding of fair housing and landlord tenant mediation services provided by Inland Fair Housing and Mediation Board (IFHMB) who were able to assist 409 unduplicated residents (42 Fair Housing and 367 Landlord Tenant Mediation);
 Award of contracts for design and engineering services for the City’s 2021 -2022 Street Improvement Project which is projected to assist approximately 6,000 unduplicated residents;
 Commencement of engineering, design services, and construction for the City’s 2021 -2022 Street Improvement Project;
 Completion of the Peach Avenue Drainage Improvement Proj ect benefiting 11,140 unduplicated residents; and
 Funding of a total of 11 public service agencies (food banks, senior/disabled adult services, shelter and shelter services, veteran services, etc.) through the City’s Community Assistance Program (CAP) whom collectively were able to assist 13,863 residents.

A more detailed explanation of accomplishments can be found in the attached Draft Program Year 2022-2023 CAPER.

FISCAL IMPACT
There is no anticipated fiscal impact associated with this report . The City is required to submit the 2022-2023 CAPER to HUD to report on the annual accomplishments and expenditures during the program year. Although the submittal of the CAPER has never resulted in a fiscal impact to the City, failure to submit the CAPER to HUD in a timely manner could possibly result in non -compliance with CDBG regulations, which has the potential to lead to future financial sanctions. Furthermore, HUD could find that activities contained in the CAPER and funded with CDBG funds were not compliant, which also has the potential to cause the repayment of funds.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

1. Exhibit A: Program Year 2022-2023 Draft CAPER

City of Hesperia

CONSOLIDATED ANNUAL

PERFORMANCE AND

EVALUATION REPORT (CAPER)
Program Year 2022-2023
Prepared by:

2022-2023 Consolidated Annual Performance and Evaluation Report This page intentionally left blank.

2022-2023 Consolidated Annual Performance and Evaluation Report City of Hesperia Page TOC-1 September 19, 2023
OMB Control No: 2506-0117
Table of Contents
CR-05 - Goals and Outcomes .......................................................................................................... 1 CR-10 Racial and Ethnic Composition of (person/households/families) Assisted ......................... 6 CR-15 Resources and Investments.................................................................................................. 7 CR-20 Affordable Housing ............................................................................................................. 10 CR-25 Homeless and Other Special Needs ................................................................................... 12 CR-30 Public Housing .................................................................................................................... 18 CR-35 Other Actions ...................................................................................................................... 22 CR-40 Monitoring .......................................................................................................................... 28 CR-45 CDBG ................................................................................................................................... 30 Appendices
Appendix A – Public Notices ........................................................................................................... A Appendix B – Summary of Citizen Participation Comments........................................................... B Appendix C – IDIS Reports .............................................................................................................. C

2022-2023 Consolidated Annual Performance and Evaluation Report This page intentionally left blank.

2022-2023 Consolidated Annual Performance and Evaluation Report City of Hesperia Page 1 September 19, 2023
OMB Control No: 2506-0117
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan.

91.520(a)
This 2022-2023 Consolidated Annual Performance and Evaluation Report (CAPER) is the City of Hesperia’s (City) report to the U.S. Department of Housing and Urban Development (HUD) describing the use of federal Community Development Block Grant (CDBG) funds during the third program year of the 2020-2024 Consolidated Plan period, covering July 1, 2022, to June 30, 2023.

The City receives CDBG funds from HUD on a formula basis each year, and in turn, implements projects and awards grants and loans to nonprofit, for-profit or public organizations for projects in furtherance of the adopted Consolidated Plan. The CDBG program generally provides for a wide range of eligible activities for the benefit of low- and moderate-income City residents.

For the 2022-2023 program year, the City received $941,162 of CDBG funds. The 2022-2023 Street Improvement Project received $82 6,162 in CDBG funding. In addition, the City repurposed $467,000 in prior year CDBG funds for the Peach Avenue Drainage Improvement Project for a total 2022-2023 program year budget of $1,408,162. The repurposed funds for the Peach Avenue Drainage Improvement Project included $147,000 from completed or closed out projects including the Microenterprise Assistance Program (MAP), $100,000 from the 20/21 Street Improvement Project and $220,000 from the Emergency Housing and Utility Assistance Program (EHUAP). On November 15, 2022, the City approved a Substantial Amendment to the 2022-2023 Action Plan to repurpose $211,103 in uncommitted pre-PY 2022 CDBG funds, and transfer $3,535,941 of NSP program income to the City’s existing 2021-2022 Street Improvement Project. The Substantial Amendment increased the 2021-2022 Street Improvement Project by a total of $3,747,044.

2022-2023 Consolidated Annual Performance and Evaluation Report City of Hesperia Page 2 September 19, 2023
OMB Control No: 2506-0117
The investment of CDBG funds was a catalyst for positive change in the community. Together with other federal, state, and local investments, HUD resources allowed the City and its partners to:

 Provide fair housing and landlord tenant mediation services to 409 unduplicated residents.
 Award contracts for design and engineering design services for the City’s 2021-2022 Street Improvement Project which is projected to assist approximately 6,000 unduplicated City residents.
 Commence engineering and design services for the City’s 2021-2022 Street Improvement Project.
 Finalize construction of the City’s Peach Avenue Drainage Improvement Project benefiting 11,140 unduplicated residents.

Table 1 provides a summary of the five-year and one-year accomplishments for the period ending June 30, 2023, arranged by each of the Strategic Plan Goals included in the 2020-2024 Strategic Plan of the Consolidated Plan.

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 2 September 19, 2023
OMB Control No: 2506-0117
Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g) Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.

Table 1 - Accomplishments – Program Year & Strategic Plan to Date Goal Category 2022-2023
Amount Indicator Unit of
Measure
Expected – 5-
Yr. Strategic
Plan
Actual –
Strategic
Plan
Percent
Complete
Expected
Program
Year
Actual
Program
Year
Percent
Complete
Public Facility and
Infrastructure
Improvements
Non-Housing
Community
Development
CDBG:
$ 5,040,206
Public Facility or Infrastructure
Activities other than
Low/Moderate Income Housing
Benefit
Persons
Assisted 20,000 10,970 55% 19,140 11,140 58%
Economic
Opportunity
Non-Housing
Community
Development
CDBG:
$0 Businesses Assisted Businesses
Assisted 30 1 3% 0 0 0%
Fair Housing
Services
Affordable
Housing
CDBG:
$15,000
Public service activities other
than Low/ Moderate Income
Housing Benefit
Persons
Assisted 650 195 30% 59 42 71%
COVID-19 Response COVID-19
Impact
CDBG:
$0
Jobs Created/Retained Persons
Assisted 25 3 12% 0 0 0%
Homelessness Prevention Persons
Assisted 80 50 63% 0 0 0%
Administration All CDBG:
$100,000
Fund the needs of the
administration to run the CDBG
Program

N/A N/A N/A N/A N/A N/A N/A

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 3 September 19, 2023
OMB Control No: 2506-0117
Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.

During the program year, the City and its housing and community development partners made progress on several 2022-2023 activities as well as some multi-year activities that continued during the program year. All CDBG funded activities addressed specific high priority objectives identified in the 2020-2024 Consolidated Plan.

Through City leveraged dollars under the Community Assistance Program (CAP), the City was able to fund a total of 11 public service agencies who provided services including but not limited to food banks, senior/disabled adult services, shelter and shelter services and veteran services. Together these agencies were able to assist a total of 13,863 City residents. The City’s fair housing and landlord tenant mediation service provider, Inland Fair Housing and Mediation Board (IFHMB) was able to provide services to a total of 409 unduplicated City residents (42 Fair Housing and 367 Landlord Tenant Mediation). In addition, the City completed the Peach Avenue Drainage Improvement Project benefiting 11,140 unduplicated residents. The City also awarded contracts for engineering and design services for the 2021-2022 Street Improvement Project. Design and engineering efforts commenced in the second quarter of the 2022-2023 program year. Design is projected to be completed in the second quarter of the 2023-2024 program year with construction to follow in 2024.

The majority of CDBG funds were allocated to public facilities and infrastructure improvements to benefit low- and moderate-income individuals. Key accomplishments included the completion of the Peach Avenue Drainage Improvement Project and the commencement of design and engineering for the 2021-2022 Street Improvement Project, which will assist a vast number of residents throughout the City.

Each of the activities that were underway during the 2022-2023 program year are listed in Figure 1, including the amount of CDBG funds allocated to the activity and the amount spent as of June 30, 2023. Figure 2 provides the numerical accomplishment goal and the amount accomplished as of June 30, 2023.

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 4 September 19, 2023
OMB Control No: 2506-0117
Figure 1 – Use of CDBG Funds

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 5 September 19, 2023
OMB Control No: 2506-0117
Figure 2 – Program Year Accomplishments by Strategic Plan Goal

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 6 September 19, 2023
OMB Control No: 2506-0117
CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted).

91.520(a)
Table 2 – Table of assistance to racial and ethnic populations by source of funds Race/Ethnicity CDBG
White 343
Black or African American 56
Asian 6
American Indian or American Native 3
Native Hawaiian or Other Pacific Islander 0
Other 1
Total 409
Hispanic 266
Not Hispanic 143
Table does not account for 11,140 residents for the Peach Avenue Drainage Improvement Project, data not available.

IFHMB amounts based on 409 for Fair Housing and Landlord Tenant Mediation Services

Narrative
Table 2 provides an aggregate of race and ethnicity data for persons and households served during the program year based on available accomplishment data from all CDBG activities reported in HUD’s Integrated Disbursement and Information System (IDIS). For more detailed demographic information by project or activity, refer to the PR-03 report in Appendix C.

Based on the information in Table 2, a diverse array of persons and households benefitted from CDBG funded activities during the 2022-2023 program year.

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 7 September 19, 2023
OMB Control No: 2506-0117
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available

Table 3 – Resources Made Available
Source of Funds Resources Made
Available
Amount Expended
During Program Year
CDBG $5,155,206 $1,014,041.68*
* Includes amounts drawn from prior year activities

Narrative
The federal, state, local and private resources available for the implementation of projects during the 2022-2023 program year are identified in Table 3. The CDBG resources include $ of CDBG formula grant funds (includes current, prior year and program income) to be allocated to projects in the 2022-2023 Action Plan.

Identify the geographic distribution and location of investments

Table 4 – Identify the geographic distribution and location of investments Target Area
Planned
Percentage
of
Allocation
Actual
Percentage
of
Allocation
Narrative Description
CDBG Low- and
Moderate-Income
CT/BG
98% 18%
2021-2022 and 2022-2023 Street Improvement
Projects and Peach Avenue Drainage Improvement
Project
At the end of June 30, 2023, a total of $922,942.72
was drawn during the 2022/2023 PY (includes prior
year activities)
Citywide 2% 2%
Fair Housing Services and Admin
At the end of June 30, 2023, a total of $91,098.96
was drawn during the 2022/2023 PY

Narrative
For the 2022-2023 program year, the City allocated $5,040,206 of CDBG funds (includes prior year dollars and allocations from a Substantial Amendment on Nov. 15, 2022) to Public Facilities and Infrastructure activities designed to benefit the Low-and Moderate-Income Areas, representing 97 percent of the City’s total CDBG investment for the 2022-2023 program year.

At the end of June 30, 2023, the City was able to draw a total of $922,942.72 (includes prior year activities) during the 2022-2023 program year.

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 8 September 19, 2023
OMB Control No: 2506-0117
Leveraging
Explain how federal funds leveraged additional resources (federal, state, local, and private funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.

To address housing and community development needs in the City, the City leveraged its CDBG entitlement grant with a variety of funding resources to maximize the effectiveness of available funds such as appropriate state, local and private resources. The City and its subrecipients were able to leverage approximately $805,450 of additional funds to address identified needs in the plan. Other examples of funds that were leveraged but difficult to account for include but are not limited to those listed below:

Federal Resources
 Continuum of Care (CoC) Program
 HUD Veterans Affairs supportive Housing (HUD-VASH)
 Supportive Housing for the Elderly (Section 202)
 Supportive Housing for Persons with Disabilities (Section 811)  Housing Opportunities for Persons with AIDS (HOPWA)
 Youthbuild
 Federal Low-Income Housing Tax Credit Program
 Department of Transportation Grants
 Department of Energy Grants
 Federal Highway Administration
State Resources
 State Low-Income Housing Tax Credit Program
 Building Equity and Growth in Neighborhoods Program (BEGIN)  CalHome Program
 Multifamily Housing Program (MHP)
 Housing Related Parks Grant
 CalHFA Single and Multi-Family Program
 Mental Health Service Act (MHSA) Funding
 Prop 47 – Board of State & Community Corrections
 Justice Assistance Grant (JAG) Program
 Homeless Emergency Aid Program (HEAP)

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 9 September 19, 2023
OMB Control No: 2506-0117
Local Resources
 San Bernardino County Homeless Partnership (SBCHP)
 Housing Authority of the County of San Bernardino (HACSB)  Southern California Home Financing Authority (SCHFA) Funding  San Bernardino County Continuum of Care Program
 Community Assistance Program (General Fund)
Private Resources
 Federal Home Loan Bank Affordable Housing Program (AHP)  Community Reinvestment Act Programs
 United Way Funding
 Private Contributions
Matching Requirements
The CDBG regulations do not require a match contribution; however, the City encourages its awarded departments and agencies to leverage the CDBG funding to further aid in the assistance provided to its residents. As an example, the City leverages general fund dollars through its CAP program to award public service agencies in the administration of programs including but not limited to shelter services, food banks, senior services, and legal aid services.

The City does not receive HOME or ESG funds as part of its allocation. The amount of matching funds is therefore not applicable for the 2022-2023 program year.

Publicly Owned Land or Property
The City did not have any publicly owned land or property located within the jurisdiction that was used to address the needs identified in the plan under the CDBG program.

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 10 September 19, 2023
OMB Control No: 2506-0117
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.

Table 5- Number of Households
One-Year Goal Actual
Number of homeless households to be
provided affordable housing units 0 0
Number of non-homeless households to
be provided affordable housing units 0 0
Number of special-needs households to
be provided affordable housing units 0 0
Total 0 0

Table 6 - Number of Households Supported
One-Year Goal Actual
Number of households supported
through rental assistance 0 0
Number of households supported
through the production of new units 0 0
Number of households supported
through the rehab of existing units 0 0
Number of households supported
through the acquisition of existing units 0 0
Total 0 0

Discuss the difference between goals and outcomes and problems encountered in meeting these goals.

The City continued its conscious effort to streamline the CDBG program during the 2022-2023 program year. At the point of adoption of the 2022-2023 Action Plan, the City anticipated working on three (3) activities. Throughout the program year, the City did not come across many obstacles in meeting its goals. The City was able to complete the Peach Avenue Drainage Improvement Project. In addition, the City was able to award contracts and advance on design and engineering efforts for the 2021-2022 Street Improvement Project. The City also completed a Substantial Amendment during the 2022-2023 program year, which allocated an additional $3,747,044 to the 2021-2022 Street Improvement Project.

Discuss how these outcomes will impact future annual action plans.

Due to the City’s need to improve infrastructure, the City anticipates continuing to invest CDBG funds to address improving infrastructure through its Annual Street Improvement Project.

Although the City does not currently have active housing programs, the Hesperia Housing

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 11 September 19, 2023
OMB Control No: 2506-0117
Authority (HHA) has provided funding for affordable housing projects in prior years to address the need for affordable housing and housing rehabilitation and continues to monitor those projects.

Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.

Table 7 – Number of Persons Served
Number of Persons Served CDBG Actual
Extremely Low-income 142
Low-income 153
Moderate-income 96
Non-Low and Moderate-Income 18
Total 409

Narrative Information
Although affordable housing needs are a high priority throughout California, during the 2020- 2024 Consolidated Plan - Strategic Plan, the City did not identify affordable housing needs as a high priority. However, the City will take into consideration the needs for housing preservation and economic development in its community in future CDBG program years.

To address what HUD defines as “worst case housing need” – low-income residents who pay more than 50 percent of their income for housing costs – the City works closely with the Housing Authority County of San Bernardino (HACSB) who provides rental assistance to low- income families either by housing families in the units HACSB owns and manages or by providing subsidized housing assistance to a landlord for renting their housing unit to eligible families. To meet the Section 215 definition of affordable housing, the City defines affordable rents as follows:

 For low-income households, 30 percent of 50 percent of the area median income adjusted for family size appropriate for the unit, less an allowance for tenant paid utilities, divided by 12.
 For moderate income households, 30 percent of 60 percent of the area median income adjusted for family size appropriate for the unit, less allowance for tenant paid utilities.  For middle income households, 30 percent of 110 percent of the area median income adjusted for family size appropriate for the unit, less allowance for tenant paid utilities.

In addition, the City works collectively with HACSB by providing residents with educational pamphlets and workshops on the County’s affordable housing programs. The City did not provide Homeownership Assistance during the 2022-2023 program year as the priority was for Public Facility and Infrastructure Improvements.

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 12 September 19, 2023
OMB Control No: 2506-0117
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
Preventing and ending homelessness is a HUD priority addressed nationally through coordination of regional strategies carried out locally by government agencies and a wide variety of community-based organizations and faith-based groups. Consistent with this approach, the City supports the efforts of the San Bernardino County Continuum of Care (CoC) and its member organizations that address homelessness throughout the County. In alignment with these strategies, the City has allocated general fund dollars to support local service providers that provided homelessness prevention services, homeless shelter and shelter related services.

In 2019, the State of California enacted the Homeless Housing Assistance and Prevention Program (HHAP – Round 1), which was a $650 million block grant program to provide one-time grant funds to support regional coordination and expand or develop local capacity to move homeless individuals and families into permanent housing. The local recipient of these funds was the local CoC and the County. Subsequently, Round 2 was released, which provided $300 million for supporting local jurisdictions to continue to build on regional collaboration developed through previous rounds of Homeless Coordinating and Financing Council (HCFC) funding and to develop a unified regional response to homelessness. In 2022, Round 3 HHAP funds were made available and the CoC received an estimated $2.9 million for distribution. The third round of funding provides local jurisdictions, including federally recognized tribal governments, with flexible funding to continue efforts to end and prevent homelessness in their communities. For the 2022-2023 fiscal year, the State of California had made an additional $1 billion available to implement Round 4 of the program.

The State of California has approved several other grant programs directed at addressing homelessness. The No-Place-Like-Home (NPLH) Program awarded $2 billion to counties for the development of permanent supportive housing for persons who are in need of mental health services and are experiencing homelessness, chronic homelessness, or at risk of chronic homelessness. Through this program, Counties must commit to provide mental health services and help coordinate access to other community-based supportive services. Applications for Round 4 funding of the NPLH Program closed in mid-January of 2022. The State currently provides grants to counties through its Housing for a Healthy California (HHC) Program for

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 13 September 19, 2023
OMB Control No: 2506-0117
permanent supportive housing for individuals who are recipients of or eligible for health care provided through the California Department of Health Care Services, Medi-Cal program. The goal of the HHC program is to reduce the financial burden on local and state resources due to the overutilization of emergency departments, inpatient care, nursing home stays and use of corrections systems and law enforcement resources as the point of health care provision for people who are chronically homeless or homeless and a high-cost health user. Applicants who were previously awarded by the program for existing projects were funded in Spring of 2022.

New applicants were anticipated to be awarded by the end of June 2022.

The CoC completed the inventory of existing access centers in the County noting the locations of each access center. The CoC also conducts informational outreach presentations concerning homelessness in the County.

In 2014 the County Sheriff’s Department created a specific unit to engage the homeless. The mission of the Homeless Outreach Proactive Enforcement (H.O.P.E.) program takes a pro-active approach intended to ultimately reduce calls for service and other resources currently required to address the homeless population. The program also aims to balance pro-active outreach with enforcement of the law, while connecting members of the homeless population with resources that may help them transition from homelessness. The ultimate goal is to reduce the rate of recidivism and reduce the current costs associated with homeless related crime.

According to the Homelessness Action Plan, A Multi-Jurisdictional Approach in San Bernardino County, adopted in September 2019, the CoC is in the process of implementing several regional strategies that will enhance local coordination to assist people more effectively in need. To identify and assess people experiencing homelessness; the CoC has been working to create regional homeless access centers that will offer fully coordinated systems of outreach and will facilitate universal assessment, intake, referral and transportation to resources more rapidly.

Collectively these strategies will help minimize duplication of efforts and better connect the most vulnerable individuals and families, chronically homeless, and people at risk of becoming homeless to appropriate resources.

In July 2021, the California COVID-19 Rent Relief Program provided $5.2 billion to cover 100% of past-due rent going as far back as April 2020, as well as current utility bills. The program assisted both landlords and tenants. By covering 100% of the rent owed by the tenants, the program helped to prevent tenants from being evicted and potentially homeless. The San Bernardino County Rent Relief Partnership (SBCRRP) functioned similarly to the CA COVID-19 Rent Relief Program. The SBCRRP covered 12 months of past-due rent, as well as utilities, going as far back as March 13, 2020. The SBCRRP shared the same goal as the CA COVID-19 RRP by protecting tenants from eviction and potential homelessness. As of March 31, 2022, the

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 14 September 19, 2023
OMB Control No: 2506-0117
Program was no longer accepting new applications, but continued to assist applicants whose applications were submitted before the deadline. Eviction protections in the state of California were extended for those whose applications were submitted before the deadline, protecting them through June 30, 2022.

Established in March of 2020, Project Roomkey provided a place outside a hospital to stay for those who are homeless as well as those recovering from and who were currently exposed to COVID-19. The program collaborated with the State and County to secure hotel and motel rooms to be used for these purposes. This program provided sheltering options for the homeless, sought to protect human life, and minimized the capacity strain found within the health care system. The Program came to an end in September 2022.

Through Project Roomkey; Homeless Housing, Assistance and Prevention (HHAP); HHAP CV funds and Continuum of Care, the region has assisted with housing and sheltering 2,000 unduplicated individuals since March 2020, nearly 800 of whom were referred to permanent housing. Project Homekey services included the Pacific Village project, which provided long- term interim shelter to 33 individuals in 28 units while the All-Star Lodge project provided long- term shelter to 50 individuals in 38 units.

Addressing the emergency shelter and transitional housing needs of homeless persons The ultimate solution to ending homelessness is transitional to permanent housing closely aligned with supportive services that ensure housing stability can be maintained. However, because the demand for affordable housing far outpaces the region’s supply, the CoC continues to rely on its emergency and transitional housing system to address the immediate needs of the County’s homeless population.

The CoC is improving the efficacy of emergency shelters and the access system including their seasonal emergency shelters and the County’s three (3) Cold Weather Shelter facilities, the closest being in the City of San Bernardino.

For transitional housing, the CoC recognizes a need to maintain a level of transitional housing for the target populations that benefit most from a staged approach to housing, such as mentally ill and chronically homeless individuals. While the CoC continues to support transitional housing in special circumstances, the CoC is currently examining ways to shorten stays in emergency shelters and transitional housing so that resources may be used for rapid re- housing or placement in permanent supportive housing.

In nearby City of Victorville, the Wellness Center Campus will be the first of its kind in San Bernardino County. The project was awarded and commenced construction in the 2021-2022 program year. By March 2023, the Wellness Center Campus had 46 modular shelter units, five modular restroom units, and 24 community building units delivered to the construction site and

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 15 September 19, 2023
OMB Control No: 2506-0117
set on foundations. The Campus is anticipated to play a critical role in helping homeless individuals stabilize and rebuild their lives. The Campus will provide 170 beds and will allow the Wellness Center to serve several functions by providing a low-barrier emergency shelter, recuperative care facility, medical clinic, interim housing and wrap around supportive services such as case management, care coordination, job training/placement and housing navigation.

In 2021, the American Rescue Plan Act (ARPA) was signed into law, including $1.1 billion for a new affordable housing program called the Emergency Housing Voucher (EHV) program. The program supports households experiencing homelessness; at risk of homelessness; fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking; or recently homeless. The Housing Authority of the County of San Bernardino (HACSB) received an allocation of 455 EHV vouchers. HACSB partnered with the CoC and local victim service providers, to start the EHV program in San Bernardino County in 2021. Since then, more than 300 households have been housed (2022 HACSB Annual Report).

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs An individual or family is considered to be at-risk of becoming homeless if it experiences extreme difficulty maintaining their housing and has no reasonable alternatives for obtaining subsequent housing. Homelessness often results from a complex set of circumstances that require people to choose between food, shelter, and other basic needs. Examples of common circumstances that can cause homelessness include eviction, loss of income, insufficient income, disability, increase in the cost of housing, discharge from an institution, irreparable damage or deterioration to housing, and fleeing from family violence.

The most effective and cost-efficient means to addressing homelessness is to prevent episodes of homelessness from occurring in the first place. The County’s current CoC system encourages services aimed at reducing incidences of homelessness, including:
 Emergency Rental and Utility Assistance: Short-term financial assistance to prevent eviction and utility shut-off.
 Credit Counseling: Financial counseling and advocacy to assist households to repair credit history.
 Legal/Mediation Services: Tenant-landlord legal/mediation services to prevent eviction.  Food Banks and Pantries: Direct provision of food, toiletries, and other necessities.

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 16 September 19, 2023
OMB Control No: 2506-0117
 Transportation Assistance: Direct provision of bus vouchers and other forms of transportation assistance.
 Clothing Assistance: Direct provision of clothing for needy families and individuals.  Prescription/Medical/Dental Services: Direct provision of prescription, medical and dental services.
 Workforce Development: Direct provision of job training services designed to develop and enhance employment skills, as well as to help clients secure and retain living wage jobs.
 Information & Referral Services: Direct provision of 24-hour/7-days-a-week call center services to provide health and human service information to at-risk populations.  Recuperative care for homeless individuals who become ill or injured.

The City will continue to work with and refer residents to the County’s Department of Behavioral Health to ensure residents are provided the immediate attention and services they require to prevent homelessness and encourage self-sufficiency.

Due to the COVID-19 pandemic, many households have been affected and are at risk of becoming homeless. Furthermore, AB-2179 extended eviction protections through the end of June 2022 for those who had applied for the California COVID-19 Rent Relief Program and were waiting for their applications to be processed by the program. In addition, to prevent the surge of foreclosures and homelessness, lenders have allowed mortgagors to enter into forbearance, a process by which a mortgagor temporarily pauses or reduces their mortgage payment due to financial struggles.

In nearby City of Victorville, the Wellness Center Campus will be the first of its kind in San Bernardino County. The project was awarded and commenced construction in the 2021-2022 program year. By March 2023, the Wellness Center Campus had 46 modular shelter units, five modular restroom units, and 24 community building units delivered to the construction site and set on foundations. The Campus is anticipated to play a critical role in helping homeless individuals stabilize and rebuild their lives. The Campus will allow the Wellness Center to serve several functions by providing a low-barrier emergency shelter, recuperative care facility, medical clinic, interim housing and wrap around supportive services such as case management, care coordination, job training/placement and housing navigation.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 17 September 19, 2023
OMB Control No: 2506-0117
recently homeless from becoming homeless again
In support of the CoC efforts, the City’s Strategic Plan provided for the use of general funds to support activities implemented by local nonprofit organizations that provided services to help prevent and eliminate homelessness, including families at risk of homelessness, veterans, victims of domestic violence and emancipated foster youth.

Additional efforts are underway at the regional level to shorten the time that individuals and families are experiencing homelessness and to prevent individuals and families who were recently homeless from becoming homeless again. The 2-1-1 regularly works with public service agencies to analyze the resources and funding being used to operate transitional housing programs and consider how these resources could be used more in alignment with the best practices (i.e., rapid re-housing and permanent housing) for ending homelessness. Many transitional housing providers are working to End Homelessness to evaluate strategies to lower program threshold requirements and improve outcomes including shorter shelter stays and more rapid transitions to permanent housing. The County also encourages the importance of increasing the number of permanent supportive housing units within its jurisdiction and increase in rapid rehousing assistance which helps individuals and families quickly exit homelessness to permanent housing without any preconditions for obtaining assistance (such as employment, income, absence of criminal record, or sobriety). Because of COVID-19 and the rise in housing costs and interest rates, the efforts of the State, County and City will need to be of the upmost importance to help prevent the rise in homelessness.

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 18 September 19, 2023
OMB Control No: 2506-0117
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
The City of Hesperia Housing Authority (HHA) was formed on April 5, 2011, under the State of California Housing Authority Law to actively improve existing neighborhoods and develop affordable housing opportunities using local, state, and federal resources. The HHA does not administer Section 8 and does not own HUD Public Housing; however, the City is within the service area of the HACSB for the purposes of Section 8 and Public Housing. The HACSB manages a total of 10,461 rental assistance program units (privately owned with rent subsidies paid directly to owners by the Housing Authority), 1 unit of public housing (units owned and managed by the Housing Authority), 2,232 housing authority-owned units (units owned by the Housing Authority or acquired through developments), 1,343 Housing Partners I, Inc. (units that are part of the property portfolio of Housing Partners I, Inc., HACSB’s development affiliate non-profit, and 780 Limited Liability Company and Limited Partner Units (units owned by limited partnership or limited liability company of which HACSB is a member) through its offices in Barstow, Chino, Colton, Redlands, San Bernardino, Victorville and Upland (2022 HACSB Annual Report).

To enhance the quality of HUD Public Housing units, HACSB continued to work towards converting existing HUD Public Housing units under HACSB’s management and control to Section 8 units as part of HUD’s Rental Assistance Demonstration (RAD) program. By the end of 2019, HACSB had converted its entire original portfolio of public housing under RAD, with the 98-unit Los Olivos development in Upland finalizing its conversion in May 2022 (FY 2023 Moving to Work Annual Plan, HACSB).

HACSB continues to maintain and expand the supply of affordable housing units in the City and throughout the County through its partnerships with the State of California and San Bernardino County Department of Community Development and Housing. As the largest provider of affordable housing in San Bernardino County, HACSB assists approximately 25,000 people, most of whom are seniors, individuals with disabilities, veterans, and children. More than 10,500 families are served through housing assistance payments made to landlords on behalf of the families. Other families reside in units owned and managed by HACSB. These programs provide a critical safety net for families in the County.

The City has partnered with builder DMB Development and investors Schlegel Capital and The Beaumont Group to oversee the massive Tapestry Housing project. The construction has commenced and is anticipated to create approximately 15,663 homes. The development is anticipated to take approximately two (2) decades to complete and will increase the City’s population by nearly half. Although home sizes have not yet been discussed, the focus will be

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 19 September 19, 2023
OMB Control No: 2506-0117
for affordable residences as prices for the project’s first homes will range between $300,000 and $500,000, with several options for 55-plus seniors (The Sun).

In late 2021, the San Bernardino County and Related California executives celebrated the grand opening of the third phase of the Bloomington Affordable Housing Community located on 5 acres and containing 98 new affordable housing units. The development also includes a new 8,500-square foot public park and community center that provides facilities and services for the public park located to the north of the development. The development is an integral piece to the overall countywide neighborhood revitalization spearheaded by the San Bernardino County Board of Supervisors (County Wire, December 2021 and IE Community News).

In the fall of 2017, HACSB celebrated the grand opening of the Olive Meadow Affordable Housing Community, consisting of 62 high-quality affordable homes representing the first phase of the Arrowhead Grove Housing Community Revitalization Project (formerly the Waterman Gardens Affordable Housing Community Project). Construction on Crestview Terrace, the second on site phase of the Arrowhead Grove mixed-income housing development, was completed in August 2021 with the project officially opening in January 2022. The Arrowhead Grove Housing Community Revitalization Project was awarded $20 million in Affordable Housing and Sustainable Communities (AHSC) program funds, $55 million in tax-exempt bond allocations and $22.5 million in low-income tax credits. The newest construction provided 184 mixed-income family apartments comprised of 147 affordable one- to four-bedroom family units, 35 market-rate units and 2 units for property managers, FY 2023 Moving to Work Annual Plan, HACSB).

Fully leased in 2020, Golden Apartments in Victorville is the first permanent supportive housing development to house and serve homeless individuals. The project converted a dilapidated property consisting of 21 two-bedroom units into a fully renovated apartment complex consisting of 38 one-bedroom flats with amenities including a community room, counseling meeting spaces for on-site social services, laundry facilities and outdoor patio for the chronically homeless (HACSB 2020 Annual Report). Similarly, the 61 rooms at Desert Haven were converted to a 31-unit single or double occupancy apartment complex for the chronically homeless. Both developments utilized the Housing First approach to help residents become self-sufficient, (HACSB 2018 & 2019 Annual Report). Combined, these developments provided 69 units of housing for homeless individuals, (HACSB 2020 Annual Report).

HACSB made formal commitments to assist AMCAL Multi-Housing Inc., with project-based vouchers to support the construction of affordable family units in Colton, Las Terrazas (HACSB 2020 Annual Report). Las Terrazas Apartments is an affordable multi-family apartment complex located in unincorporated San Bernardino. The family community of 112 units will range in size from 525 to

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 20 September 19, 2023
OMB Control No: 2506-0117
1,020 net livable feet. The building mix will consist of five residential buildings, one community building and one childcare building, all constructed on one six-acre site. The development was completed in 2022 (https://www.amcalhousing.com/amcal/las-terrazas-colton/).

Phase II of Valencia Grove in Redlands (104 rental units) is projected to be completed in the third quarter of 2024. Phase III of Valencia Grove will consist of 39 detached single-family homes for sale to buyers at or below 120% of the Area Median Income. Groundbreaking of this phase is projected for the end 2023 (FY 2024 Moving to Work Annual Plan, HACSB).

Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
HACSB encourages residents to be actively involved in the community and in the management of public housing developments through resident councils and numerous opportunities for feedback such as community meetings and surveys. HACSB and the City also actively encourage and promote public housing residents to explore homeownership opportunities and programs through HACSB’s Homeownership Assistance Program (HAP) targeted at current residents. The Homeownership program utilizes a variety of methods to aid participants on their path to homeownership, including Section 32 (converted public housing), Section 8 Homeownership, and a Community Land Trust. HACSB also encourages and supports residents in participating in homebuyer counseling programs and recommends residents use the family self-sufficiency escrow account to save money towards homeownership. Under the Family Self-Sufficiency (FSS) Program, participants develop a five-year training and service plan that outlines the steps to become employed, increase their earnings, and become independent of government assistance. Upon graduation of the FSS Program, graduates are allowed to use the escrow account funds towards homeownership (HACSB 2018 Annual Report).

Under the Housing Authority’s HAP program, families are provided mortgage assistance for up to 15 years for working families and up to 30 years for disabled families. A total of 251 families have become homeowners through the program since 2000 (HACSB 2020 Annual Report).

The City utilized leveraged dollars through Calhome and State HOME funds to administer a First-Time Homebuyer Down Payment Assistance Program (DAP) which assisted eligible low- and moderate-income households by providing a portion of the eligible purchaser’s total down payment. In addition, the City provided resources on services for foreclosure prevention and counseling.

Actions taken to provide assistance to troubled PHAs
Not applicable. HACSB is considered a High Performing PHA.

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 21 September 19, 2023
OMB Control No: 2506-0117
Discussion
HACSB is well-positioned to maintain and expand the supply of affordable housing units in the City and throughout the County through its partnerships with the State of California, San Bernardino County Department of Community Development and Housing, the City of Hesperia, and other cities throughout the county.

2 022-2023 Consolidated Annual Performance and Evaluation Report City of Hesperia Page 22 September 19, 2023
OMB Control No: 2506-0117
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) In the development of the 2013-2021 Housing Element, the City evaluated significant public policies affecting affordable housing development such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges and growth limitations.

Based on this evaluation, the City determined that it has taken all necessary steps to ameliorate the negative effects of public policies that may have been a barrier to affordable housing. An update to the Housing Element (2021-2029) further reports that the City has recently completed several affordable housing projects and is in the planning/approval stages for several additional affordable housing projects, indicating that the City’s existing development standards do not constrain affordable housing development. Examples of changes made or to be made include but were not limited to:
- Single-Room Occupancy (SRO) – The City recently amended its Zoning Ordinance to conditionally permit SRO housing in the residential zones of the Main Street and Freeway Corridor Specific Plan area.
- Farmworker Housing – The City plans to amend the Zoning Ordinance within one year of the adoption of the City’s Housing Element to address the Employee Housing Act with regard to farmworker housing. In addition, the City plans to amend the Zoning Ordinance to permit by right farm labor housing for 36 persons in a group quarter or 12 units intended for families on properties where agricultural uses are permitted.
- Housing for Persons with Disabilities – The City plans to create a process within one year of the adoption of the Housing Element for making requests for reasonable accommodation to land use and zoning decisions and procedures regulating the siting, funding, development and use of housing for people with disabilities.

To address housing affordability and the lack of monetary resources for affordable housing, the City allocated funds for fair housing services to ensure fair housing choices are addressed throughout the combined five-year Consolidated Plan cycle.

Lastly, the City’s updated 2021-2029 Housing Element notes the following to help ameliorate negative effects of public policies that serve as barriers to affordable housing:

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 23 September 19, 2023
OMB Control No: 2506-0117
 The City has outlined certain concessions for development standards in its Landscape Ordinance. Affordable housing developments are permitted to use one-gallon shrubs and five-gallon trees, instead of the otherwise required five-gallon shrubs and 15-gallon trees.
 The City has established a density bonus program to encourage the production of housing for lower and moderate-income households by offering developers density increases beyond the maximum allowed under the applicable zoning district and land use element of the general plan in exchange for the construction of below-market rate units. In addition, other development incentives may be permitted.  Current state law requires jurisdictions to provide density bonuses and development incentives to all developers who propose to construct affordable housing on a sliding scale, where the amount of density bonus and number of incentives vary according to the amount of affordable housing units provided. In May of 2011, the City’s Development Code was updated to reflect these new requirements.  Under AB 1763, housing projects where all units are affordable to low and very low- income residents qualify for an 80% density bonus, except that up to 20 percent of the total units in the development may be for moderate-income households. AB 1763 provides for a fourth incentive and concession to 100% affordable projects. For housing projects that qualify as a special needs or supportive housing development, AB 1763 eliminates all local parking requirements. A development that is a special needs housing development shall have either paratransit service or unobstructed access, within one- half mile, to fixed bus route service that operates at least eight times per day.  In October 2019, SB 13, AB 68, and AB 881 were adopted into law with the intention of facilitating the construction of Accessory Dwelling Units (ADUs) in California. One key component of the new ADU laws is that the City is now required to allow Junior Accessory Dwelling Units (Junior ADUs). In June 2020, the development code was amended to be consistent with state law.
 AB 671 requires cities to include a plan that incentivizes and promotes the creation of ADUs that can be offered at affordable rent for very low, low-, or moderate-income households in its housing element. California Department of Housing and Community Development (HCD) is also to develop a list of existing state grants and financial incentives for operating, administrative, and other expenses in connection with the planning, construction, and operation of ADUs with affordable rent. The list must be posted on the HCD website by December 31, 2020. The development code will be

2 022-2023 Consolidated Annual Performance and Evaluation Report City of Hesperia Page 24 September 19, 2023
OMB Control No: 2506-0117
amended within one year following certification of the Housing Element to address the requirements of AB 671.
o Update: The Development Code will be amended within one year following certification of the Housing Element (October 15, 2024) to address the requirements of AB 671. The City’s goal is to process and entitle 15 ADUs each calendar year. The City will also update the City website to provide prospective ADU builders with HCD’s list of grants and financial incentives, along with all relevant building and planning forms.

Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) The primary obstacles to meeting the underserved needs of low- and moderate-income people include lack of funding from federal, state and other local sources, the high cost of housing that is not affordable to low-income people and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City invested CDBG funds through the 2022-2023 Action Plan and leveraged funds in projects that provide public and neighborhood services to low- and moderate-income people and those with special needs, and programs that prevent homelessness. To address underserved needs, the City allocated 100 percent of its non-administrative CDBG funds for program year 2022-2023 to projects and activities that benefit low- and moderate-income people.

Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) The Residential Lead Based Paint Hazard Reduction Act of 1992 (Title X) emphasizes prevention of childhood lead poisoning through housing-based approaches. This strategy requires the City to implement programs that protect children living in older housing from lead hazards.

Overall, the City has a relatively young housing stock, with 17,715 housing units out of a total of 26,255 of the City’s total housing units, 67.5%, built after 1980 according to 2011-2015 ACS data. The remaining 32.5% constructed before 1980 have the most potential risk to contain lead-based paint. In these units, the best way to have reasonable assurance that lead-based paint hazards are not present is to have the painted surfaces tested.

According to the City, a typical lead-based paint screening survey costs approximately $1,650.

To reduce lead-based paint hazards, the City takes the following actions:
 Include lead testing and abatement procedures, if necessary, in all residential rehabilitation activities for units built prior to January 1, 1978.  Monitor the lead-poisoning data maintained by the San Bernardino County Department of Public Health (SBDPH). According to SBDPH, there were four (4) incidents of Hesperia

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 25 September 19, 2023
OMB Control No: 2506-0117
children with blood lead levels greater than 9.5 micrograms per deciliter, and a total of five (5) documented cases with levels equal to or greater than 20 micrograms per deciliter from 2009-2013 (more current data, not available). The California Department of Public Health, Childhood Lead Poisoning Prevention Branch (CDPH-CLPB), reported 284 children, age < 6, in San Bernardino County had Blood Lead Levels of > or = to 3.5n (CDPH-CLPB California Blood Lead Data, 2021).
 Educate residents on the health hazards of lead-based paint through brochures and encourage screening children for elevated blood-lead levels.  Disseminate brochures about lead hazards through organizations such as Inland Fair Housing and Mediation Board (IFHMB).

Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) The implementation of CDBG activities meeting the goals established during the 2022-2023 program year helped to reduce the number of poverty-level families by:
 Supporting activities that preserve and improve public facilities and infrastructure to benefit low-and moderate-income residents; and
 Supporting activities that fulfill the HUD regulatory mandate to affirmatively further fair housing choice through the provision of fair housing education, counseling, anti- discrimination, and landlord-tenant mediation.

In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. Federal programs such as the Earned Income Tax Credit and Head Start help provide a pathway out of poverty for families who are ready to pursue employment and educational opportunities. Additionally, in California, the primary programs that assist families in poverty are CalWORKs, CalFresh (formerly food stamps) and Medi-Cal. Together, these programs provided individuals and families with employment assistance, subsidy for food, medical care, childcare and cash payments to meet basic needs such as housing, nutrition, and transportation. Other services are available to assist persons suffering from substance abuse, domestic violence, and mental illness.

Actions taken to develop institutional structure. 91.220(k); 91.320(j) The institutional delivery system in the City is high-functioning and collaborative—particularly the relationship between local government and the nonprofit sector comprised of a network of capable non-profit organizations that are delivering a full range of services to residents. Strong City departments anchor the administration of HUD grant programs and the housing and community activities that are implemented in the City. These are supported and enhanced

2022-2023 Consolidated Annual Performance and Evaluation Report City of Hesperia Page 26 September 19, 2023
OMB Control No: 2506-0117
through the City’s collaboration with nonprofit agencies receiving CAP (leveraged City funds) funds by ensuring that the needs of low- and moderate-income residents are met. The institutional delivery system is successfully being implemented as envisioned within the 2020- 2024 Consolidated Plan and Strategic Plan.

Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
To enhance coordination between public and private housing and social service agencies, the City will continue consulting with and inviting the participation of a wide variety of agencies and organizations involved in the delivery of housing and supportive services to low- and moderate- income residents in the City—particularly the CDBG Target Areas. The City has also developed its CAP program which utilizes City leveraged dollars to fund non-profits through less administratively restrictive funds to ensure its residents are provided the services they require and deserve.

Identify actions taken to overcome the effects of any impediments identified in the jurisdiction’s analysis of impediments to fair housing choice. 91.520(a) The 2020 Analysis of Impediments to Fair Housing Choice (AI) adopted by the City Council on April 21, 2020, included two (2) impediments that remained unresolved from the 2015-2019 AI and one (1) impediment to fair housing choice. During the 2022-2023 program year:

Impediment 1 Fair Housing Complaints and Services: The City’s Economic Development Department worked directly with its fair housing service provider, Inland Fair Housing and Mediation Board (IFHMB), during the 2022-2023 program year to ensure efforts were not stalled by conducting workshops and trainings virtually through Zoom , and other platforms to ensure the information was accessible to both tenants and landlords. The City advertised and promoted events providing fair housing services on the City’s Webpage , as well as making Fair Housing materials readily accessib le at City Hall. Through its virtual fair housing workshops, IFHMB has been able to successfully educate tenants and landlords of their rights and responsibilities.

Impediment 2 Reasonable Accommodation Procedure: The City has updated its Housing Element (2021-2029); however, the document reported that the City currently had no established process in place and reasonable accommodations were granted on a case-by-case basis.

Impediment 3 United States of America v. City of Hesperia, County of San Bernardino, and San Bernardino County Sheriff’s Department: The Analysis of Impediments recommended the City

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 27 September 19, 2023
OMB Control No: 2506-0117
“track the status and disposition of Case No. 5:19-cv-02298 and report the status and disposition of this litigation, as applicable, in the Consolidated Annual Performance and Evaluation Report.” On December 22, 2022, the parties entered into a Consent Order that resulted in the resolution of this lawsuit. At no time has the City admitted liability in this matter and the City denies all allegations contained within the complaint filed by the Department of Justice.

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 28 September 19, 2023
OMB Control No: 2506-0117
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements.

During the 2022-2023 program year, the City has limited the number of activities it has funded to mostly City run activities and fair housing services to streamline the City’s CDBG program and ensure that CDBG funds are used efficiently and in compliance with applicable regulations. The City’s Economic Development Department provides technical assistance to its fair housing service provider as well as other City departments at the beginning of the program year and monitors all activities throughout the program year to ensure benchmarks are met for continued compliance.

Technical Assistance
To enhance compliance with federal program regulations, the City’s application paperwork provides detailed information regarding the City’s five-year Consolidated Plan goals, program requirements and available resources for award. Prior to the approval of the Annual Action Plan, Subrecipient Agreements and Memorandums of Understandings (MOUs) are reviewed in detail with all parties to ensure overall activity compliance and to review the City’s compliance procedures and requirements. Additionally, individualized technical assistance is provided on an as-needed basis throughout the program year.

Activity Monitoring
All activities are monitored, beginning with a detailed review upon receipt of an application to determine eligibility, conformance with a National Objective and conformance with a Strategic Plan goal. This review also examines the proposed use of funds, eligibility of the service area, eligibility of the intended beneficiaries and likelihood of compliance with other federal requirements such as the National Environmental Policy Act, the System for Award Management (SAM) debarment list, Davis-Bacon and Related Acts (prevailing wage), Minority and Women Business Enterprise, Section 3 and federal acquisition and relocation regulations, as applicable.

Eligible Subrecipients submit their most recent Financial Statement/Single Audit and other documentation to establish their administrative and financial capacity, and any findings noted in the audit are reviewed. In such instances where Audit findings arise, the agency is required to provide the City documentation resolving the finding. Prior to entering into a written agreement, staff and consultants perform periodic desk monitoring including ongoing review of required performance reports and documentation to substantiate CDBG expenditures. The

2 022-2023 Consolidated Annual Performance and Evaluation Report City of Hesperia Page 29 September 19, 2023
OMB Control No: 2506-0117
reviews also include both a fiscal and programmatic review of the subrecipient’s activity(ies).

The reviews determine if the activity(ies) comply with the program regulations and City contract and/or MOU. Areas of review included overall administration, financial systems, appropriateness of program expenditures, program delivery, client eligibility determination and documentation, reporting systems, and achievement toward achieving contractual goals. No deficiencies or non-compliance with the program requirements were identified during the 2022-2023 program year.

For CDBG capital projects, monitoring of Davis-Bacon and Related Acts, Minority and Women’s Business Enterprise (MBE/WBE) and Section 3 requirements were conducted by LDM Associates, Inc. to determine the adequacy of implementation by the Development Services Department and its consultants.

Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.

In accordance with the City’s adopted Citizen Participation Plan (CPP), a public notice was published in the Hesperia Resorter in English and in Spanish on August 31, 2023, notifying the public of the availability of the CAPER for a 15-day public review and comment period. Copies of the public notices are included in Appendix A.

The draft CAPER was available on the City’s website and at the following locations:

City Clerk’s Office
9700 Seventh Avenue
Hesperia, California 92345
Economic Development Department
9700 Seventh Avenue
Hesperia, California 92345
Hesperia Public Library
9560 Seventh Avenue
Hesperia, California 92345
A public hearing was conducted before the City Council on Tuesday, September 19, 2023, to solicit comments from residents and interested parties. A summary of all written or oral comments received during the public hearing are included in Appendix B.

2022-2023 Consolidated Annual Performance and Evaluation Report

City of Hesperia Page 30 September 19, 2023
OMB Control No: 2506-0117
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.

CDBG funds are making a significant impact on strategies to address the high priority needs identified in the 2020-2024 Consolidated Plan – Strategic Plan. As shown in Figure 1 in section CR-05 of this document, CDBG funds contributed to three (3) Strategic Plan goals (including Administration goal) reported in Table 1 of this document.

Public Facility and Infrastructure Improvements

To improve City public facilities and infrastructure to benefit low- and moderate-income people or those presumed under HUD regulations to be low- and moderate-income such as elderly people and disabled adults as well as residents of low- and moderate-income housing, the City invested CDBG resources to address this Strategic Plan goal through the funding of the 2020- 2021, 2021-2022, and 2022-2023 Street Improvement Projects (the 20-21, 21-22 and 22-23 are three separate projects) and the Peach Avenue Drainage Improvement Project. During the 2022-2023 program year, the City was able to complete the Peach Avenue Drainage Improvement Project benefiting 11,140 unduplicated residents and commence design and engineering services for the 2021-2022 Street Improvement Project. Design is expected to be completed by the second quarter of 2023 with an anticipated construction completion date in 2024.

Fair Housing Services

For the implementation of the City’s Fair Housing Services, the City funded IFHMB in the amount of $15,000. The funds were used for the provision of fair housing outreach, education, and enforcement activities, including landlord-tenant matters. During the program year, IFHMB was able to provide fair housing services to 42 unduplicated residents and landlord tenant mediation services to 367 unduplicated residents.

Public Services for Low-income Residents/Senior Services/Homeless Prevention and Special Needs Services (not a Strategic Plan Goal, but efforts supported by City leverage dollars)

To support the City’s initiative for Public Services for Low-income residents, leveraged City funds were awarded to 11 agencies that provided different public services for the residents of the City. Such services ranged from food banks/pantries, senior/disabled adult services, shelter services, veteran services, and other various public services. In total, the agencies provided public service assistance to 13,863 primarily low- and moderate-income residents.

2022/2023

CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT
JULY 1, 2022 THROUGH JUNE 30, 2023

APPENDIX A
Public Notices

NOTICE OF PUBLIC HEARING

COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM

DRAFT CONSOLIDATED ANNUAL PERFORMANCE EVALUATION REPORT (CAPER) FOR PROGRAM YEAR 2022-2023
Pursuant to the United States Department of Housing and Urban Development (HUD) regulations, the City of Hesperia has prepared the draft Consolidated Annual Performance Evaluation Report (CAPER) for the 2022-2023 Community Development Block Grant (CDBG) Program Year (PY).

The CAPER provides an assessment of the City's performance in meeting PY 2022-2023 housing and community development goals as outlined in the previously adopted PY 2022-2023 One- Year Action Plan. Additionally, the CAPER discusses changes the City anticipates making in the upcoming year as a result of the assessment of PY 2022-2023 annual performance.

In compliance with the City’s approved Citizen Participation Plan and the Consolidated Plan implementing regulation 24 CFR 91.105, this notice is hereby given that the City has prepared the CAPER for PY 2022-2023. A copy of the CAPER is required to be made available to the public for review and comment for no less than a fifteen (15) day period. The draft CAPER will be available for public review from September 1, 2023 to September 19, 2023, at the following locations (please note City Hall will be closed on September 4, 2023 in observance of Labor Day):
 Hesperia Public Library, 9650 Seventh Avenue, Hesperia  Hesperia City Clerk’s Office, 9700 Seventh Avenue, Hesperia  Hesperia Economic Development Department, 9700 Seventh Avenue, Hesperia  Online at: https://www.cityofhesperia.us/98/Community-Development-Block- Grant-Program

A Public Hearing to solicit public comment from interested citizens will be held on September 19, 2023, at 6:30 p.m. at the Hesperia City Council Chambers, located at 9700 Seventh Avenue.

The purpose of the Public Hearing for the CAPER is to allow the public the opportunity to comment on the manner in which the City utilized federal and non-federal funds for the one- year period that ended on June 30, 2023.

The City encourages citizen participation in the CDBG process. The public is invited to submit written comments, which will be forwarded to HUD along with the Final 2022-2023 CAPER.

Comments should be directed to the City of Hesperia, Attn: April Antonio; Administrative Analyst; Economic Development Department 9700 Seventh Avenue, Hesperia, CA 92345 or via

e
mail to [email protected] prior to 4:00 p.m. on September 19, 2023. Comments received after that date will not be considered. Questions regarding the 2022-2023 CAPER should be directed to the Economic Development Department at (760) 947-1909.

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. Those individuals planning to participate in the public hearing are encouraged to check the City’s website at https://www.cityofhesperia.us/ for additional information concerning in-person participation on the day of the public hearing for any updates. For more information, please contact April Antonio, Administrative Analyst at (760) 947-1909.

It is the objective of the City to comply with Section 504 of the Rehabilitation Act of 1973, as amended, the Americans with Disabilities Act (ADA) of 1990 and the ADA Amendment Act of 2008, the Fair Housing Act, and the Architectural Barriers Act in all respects. If you require public documents in an accessible format, the City will make reasonable efforts to accommodate your request. If you require a disability-related accommodation to attend or participate in a hearing or meeting, including auxiliary aids or services, please contact the City Clerk’s Office at least 48 hours prior to the meeting at (760) 947-1007 or (760) 947-1056.

Published in the Victorville Daily Press August 31, 2023 (English and Spanish)

AVISO DE AUDIENCIA PÚBLICA

PROGRAMA DE SUBSIDIOS GLOBALES PARA EL DESARROLLO COMUNITARIO (CDBG) BORRADOR DEL REPORTE DE LA EVALUACIÓN DEL DESEMPEÑO ANUAL CONSOLIDADO (CAPER) PARA EL AÑO FISCAL 20221-2023
En conformidad con los reglamentos del Departamento de Vivienda y Desarrollo Urbano de los Estados Unidos, el Ayuntamiento de la Ciudad de Hesperia ha preparado el borrador del Reporte de la Evaluación del Desempeño Anual Consolidado (CAPER, por sus siglas en inglés) del Programa de Subsidios Globales para el Desarrollo Comunitario (CDBG, por sus siglas en inglés) - del Año Fiscal 2022-2023.

El CAPER proporciona una evaluación del desempeño de la ciudad con respecto a las metas establecidas para la vivienda y desarrollo comunitario durante el Año Fiscal 2022-2023, como se delineó en el Plan de Desempeño Anual 2022-2023 previamente adoptado. Este reporte a su vez expone cambios que el Ayuntamiento anticipa llevar a cabo durante los subsecuentes años debido al resultado de la evaluación del desempeño anual del Año Fiscal 2022-2023.

Conforme al Plan de Participación de los Ciudadanos aprobado y con la regla de implementación del Plan Consolidado 24 CFR 91.105, por medio de este aviso se invita al público a la revisión pública y comentarios del CAPER 2022-2023 de la Ciudad de Hesperia. Se requiere que una copia del CAPER esté disponible al público para su revisión y comentarios por un período no menos de quince (15) días. El borrador del CAPER estará disponible para revisión pública a partir del 1 de Septiembre de 2023 hasta el 19 de Septiembre de 2023. Dicho documento estará disponible para su revisión en los siguientes lugares ( por favor tome nota que la Presidencia Municipal estará cerrada el 4 de Septiembre de 2023 en observancia del “Día del Trabajo”):
 Biblioteca Pública de la Ciudad de Hesperia
9650 Seventh Ave., Hesperia
 Oficina del Secretario Municipal del Ayuntamiento de la Ciudad de Hesperia 9700 Seventh Ave., Hesperia
 Departamento de Desarrollo Económico del Ayuntamiento de la Ciudad de Hesperia 9700 Seventh Ave., Hesperia
 En línea en: https://www.cityofhesperia.us/98/Community-Development-Block-Grant- Program

Individuos que deseen expresar sus puntos de vista concernientes al documento referido anteriormente se les invita a participar en la Audiencia Pública que se llevará a cabo el 19 de

Se
ptiembre de 2023 a las 6:30 pm en la Cámara del Concejo Municipal de la Ciudad de Hesperia ubicado en 9700 Seventh Avenue, Hesperia, CA. El propósito de la Audiencia Pública sobre el borrador del CAPER es para permitirle al público la oportunidad de comentar sobre el contenido del documento y sobre la manera en que el Ayuntamiento utilizó los fondos federales y los que no eran federales durante el período de un año el cual terminó el 30 de Junio de 2023.

El Ayuntamiento de la Ciudad fomenta la participación ciudadana en el proceso de CDBG. El público está invitado a presentar comentarios por escrito; dichos comentarios serán enviados a HUD como parte del reporte final del CAPER 2022-2023. Los comentarios deberán ser dirigidos a: Attn. April Antonio, Analista Administrativo, Departamento de Desarrollo Económico, 9700 Seventh Ave., Hesperia, CA 92345 o via correo electrónico a [email protected] antes de las 4:00 P.M. del 19 de Septiembre de 2023. Todos los comentarios recibidos después de dicha fecha y hora no se tomarán en consideración. Preguntas relacionadas con el CAPER 2022- 2023 deberán ser dirigidas al Departamento del Desarrollo Económico al teléfono (760) 947- 1909.

Las reuniones del Concejo Municipal del Ayuntamiento ahora están abiertas al público dentro de las reglas proporcionadas por el Estado, que pueden incluir el uso de máscaras y el distanciamiento social de otros participantes. Se recomienda a las personas que planean participar en la audiencia pública que consulten el sitio web del Ayuntamiento de la ciudad en https://www.cityofhesperia.us/ para obtener información adicional sobre la participación en persona el día de la audiencia pública para cualquier actualización. Para obtener mayor información, comuníquese con April Antonio, Analista Administrativo al (760) 947-1909.

El Ayuntamiento tiene como objetivo cumplir en todo con respecto a la Sección 504 de la Ley de Rehabilitación de 1973, tal y como se enmendó, la Ley de Americanos con Discapacidades (ADA) de 1990 y la Ley de Enmienda a ADA del 2008, la Ley de Vivienda Justa, y la Ley de Barreras Arquitectónicas. Si usted necesita documentos públicos en un formato accesible, el Ayuntamiento hará lo posible dentro de lo razonable para dar cabida a su petición. Si usted requiere acomodo especial debido a alguna discapacidad para asistir o participar en una audiencia o junta, incluyendo aparatos auxiliares o servicios, por favor comuníquese a la Oficina del Secretario Municipal por lo menos 48 horas antes de la junta al (760) 947-1007 o (760) 947- 1056.

Publicado en Victorville Daily Press el 31 de Agosto de 2023 (Inglés y Español)

2022/2023

CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT
JULY 1, 2022 THROUGH JUNE 30, 2023

APPENDIX B
Summary of Citizen Participation Comments

A
summary of citizen participation comments will be added to this section upon completion of the 15-day public review period on September 19, 2023.

2022/2023

CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT
JULY 1, 2022 THROUGH JUNE 30, 2023

APPENDIX C
IDIS Reports

The IDIS Reports will be included in this section upon approval by the City Council.

City of Hesperia

STAFF REPORT
DATE: September 19, 2023
TO: Mayor and Council Members
FROM: Rachel Molina, City Manager
BY: Casey Brooksher, Assistant City Manager
SUBJECT: Alternative Funding Sources

RECOMMENDED ACTION
It is recommended that the City Council r eceive and file this staff report, which provides information about potential funding sources to address the needs of the community, and provide direction to staff.

BACKGROUND
During the June 20, 2023 meeting, Mayor Pro Tem Bird requested information pertaining to potential revenue measures that can be advanced to fund City needs, including street improvements and public safety.

In general, the City primarily receives General Fund revenue from two main sources: Charges for Services and Taxes. Charges for Services, such as building permits, are assessed to cover the City’s costs for providing a service. In the case of building permits, the City is reviewing the projects to ensure compliance with building codes and providing inspections.

General Fund tax revenue is primarily comprised of four sources:

Sales Tax is the largest General Fund revenue. The sales tax rate in the City is 7.75% on all taxable goods sold within City limits. The following is a breakdown of the sales tax rate: 6%-State of California, 1% -Local (Hesperia), 0.25% -Local Transportation (State assessed), and 0.50% - Countywide Measure I (transportation/road).

Property Taxes are governed by the 1978 voter approved Proposition 13. This dictates that the maximum amount of any ad valorem tax on real property shall not exceed one p ercent (1%) of the assessed value. The City of Hesperia receives approximately 1.59% of the 1% ad valorem.

For this tax type to grow, continued development must occur in the City. For every $100 million growth of assessed valuation, the City would see a net annual property tax revenue growth of $15,900 ($100 million assessed valuation x 1% ad valorem tax x 1.59% Hesperia share).

Vehicle License Fee revenue is based on the growth of the City’s assessed valuation. This annual amount is determined and remitted by the State.

Transient Occupancy Tax is a 10% room tax assessed by the local hotel/motel establishments for stays under 30 days (short-term rentals).

Staff Report to the Mayor and Council Members
Alternative Funding Sources
September 19, 2023
In total, taxes of all types comprise of 65% of the General Fund revenue budget, which is detailed in the following table and chart provide further detail:

ISSUES/ANALYSIS
Should the Council consider potential tax increases as an option to increase funding for government services, such as roadway enhancements and law enforcement, there are several options that could be considered.

Taxing Options

1. Sales Tax
Sales tax is assessed when tangible goods are sold within the City limits. The tax is collected from any person making a purchase, regardless of whether or not the person is a resident of the City.

By a vote of the citizens, the one p ercent (1%) local share can be increased. A determination would need to be made as to whether the sales tax increase would be a general or special tax. A general tax generates revenues that can be used for any purpose determined by the Council and requires a simple majority vote (50% + 1). A special tax must be spent on uses specified in the ballot measure and requires a 2/3 (66.6%) vote.

Additionally, should a sales tax increase be explored, a decision could be made to have a citywide increased tax rate or a targeted tax rate. For example, a tax rate that could be applied to certain corridors such as the freeway and Bear Valley Road.

Data from the California Department of Tax and Fee Administration indicates that there are 1,788 different jurisdictions, which includes cities, towns, and unincorporated areas, that receive sales taxes. The following details the statistics of sales tax rates:
 22% or 384 jurisdictions have the state minimum rate of 7.25%  35% or 641 jurisdictions have a rate exceeding the minimum rate , but less than 8%
 43% or 763 jurisdictions have rates exceeding 8%
Locally within San Bernardino County, 15 cities and towns have the County minimum rate of 7.75%. The following cities* have a sales tax rate of 8.75%, which increased the local share from 1% to 2%: Barstow, Colton, Ontario, Re dlands, San Bernardino, Victorville, and Yucca Valley. The City of Montclair has a sales tax rate of 9.00%. *Source: California Department of Tax and Fee Administration (CDTFA) Total Tax
Related
65%
All Other
General Fund
35%
General Fund Revenue
FY 2023-24
Budget Percent
Sales Taxes 14,439,963$ 29%
Vehicle License Fee 11,565,002 24%
Combined Property Taxes 2,403,498 5%
Transient Occupancy Tax 1,700,000 4%
Other Taxes 729,185 2%
Total Tax Related 30,837,648 65%
All Other General Fund 16,629,143 35%
Total General Fund Revenue 47,466,791$ 100%

Staff Report to the Mayor and Council Members
Alternative Funding Sources
September 19, 2023

The following tables show the potential revenue increase that could be achieved, should the voters approve a sales tax increase. The first table details the impacts of a citywide sales tax increase of 1% and 0.5%, which would bring the total sales tax rate to 8.75% (equal to the City of Victorville ) and 8.25%, respectively. The second table reflects the projected outcome from a targeted sales tax of the same rates, at the freeway and Bear Valley corridors.

2. Utility User Tax
The citizens could elect through a ballot initiative, for a Utility User Tax, which would be placed on their water/sewer bill. The voting requirements are the same as with a sales tax; with a general tax requiring a simple majority vote (50% + 1) and a special tax (spent on uses specified purpose) requiring a 2/3 (66.6%) vote.

For every one percent (1%) of utility user tax, the General Fund could potentially yield approximately $300,000. The following table demonstrates the potential increase should a utility user tax be levied.

1% Increase 0.5% Increase
Total Rate 8.75% Total Rate 8.25%
Annual Point of Sale Tax 12,900,000$ 12,900,000$
Increase of Sales Taxes 12,900,000 6,450,000
Total Sales Tax 25,800,000$ 19,350,000$
1% Increase 0.5% Increase
Total Rate 8.75% Total Rate 8.25%
Annual Point of Sale Tax 12,900,000$ 12,900,000$
Increase of Targeted Sales Taxes 6,100,000 3,050,000 Total Sales Tax 19,000,000$ 15,950,000$
Citywide Sales Tax Increase
Targeted Sales Tax Increase. - Freeway and Bear Valley Corridor 1% 5% 10%
Water Sales Revenue 24,759,387$ 24,759,387$ 24,759,387$ Potential Utility Tax 248,000 1,238,000 2,476,000 Sewer Sales 5,595,626$ 5,595,626$ 5,595,626$
Potential Utility Tax 56,000 280,000 560,000 Total Potential Utility Tax
(General Fund Increase)
304,000$ 1,518,000$ 3,036,000$
Potential Tax Increase

Staff Report to the Mayor and Council Members
Alternative Funding Sources
September 19, 2023

As mentioned, a utility user tax is assessed to the rate payers, whereas a sale tax is assessed to anyone making a purchase of tangible goods. This means that such a tax would be spread amongst the 28,000 accounts within the Water District. The following demonstrates the potential impact to the average rate payer bill for water only, along with water and sewer combined:

3. Transient Occupancy Tax (TOT)
TOT is only paid by individuals staying in the various motels and hotels within the City. As with sales and utility user tax, a voter approved ballot measure would need to be approved to increase the transient occupancy tax (TOT). In California, the average TOT rate ranges from 10% to 12%. Currently, the Hesperia rate is 10%, which yields approximately $1. 7 million annually of General Fund revenue. Should the vote rs approve an increase, the General Fund would gain approximate $170,000 for each additional percentage increase.

For example, should the rate be increased to 11%, the General Fund revenue could potentially increase from $1. 7 million to $ 1.9 million; furthermore, a 12% TOT tax rate would increase General Fund revenue by $340,000 to $2.04 million.

Should consideration be given to increasing taxes, it would be recommended that the City engage an outreach consultant. The consultant can assist with engaging the community on the potential increases ahead of the November 2024 ballot. This engagement would not only educate the community but also receive feedback. Through the community outreach, a determination can be made on the following key issues:
 Type of Tax
Should a tax be considered, a decision would need to be made on the type of tax (sales tax, utility user tax, or transient occupancy tax). Additionally, a determination would need to be made regarding the ballot measure’s indication of a general or special tax. o General tax can be used for any purpose determined by the Council and requires a majority (50% + 1) vote.
o Special tax must be spent on uses specified in the ballot measure and requires a 2/3 (66.6%) vote.
 Amount of Increase
As demonstrated, there are potential options to the amount of tax. Through the outreach process, the City could receive data on citizen support of the amount (percentage) of taxes to be potentially levied. The following is a recap of identified potential tax increases:
1% 5% 10%
Average Bi-MonthlyWater Bill 110.00 $ 110.00 $ 110.00 $ Potential Utility Tax 1.10 5.50 11.00
Total Average Bi-monthly Water Bill 111.10 115.50 121.00 1% 5% 10%
Average Bi-MonthlyWater & Sewer Bill 173.00 $ 173.00 $ 173.00 $ Potential Utility Tax 1.73 8.65 17.30
Total Average Bi-monthly Water & Sewer Bill 174.73 181.65 190.30 Potential Tax Increase
Potential Tax Increase

Staff Report to the Mayor and Council Members
Alternative Funding Sources
September 19, 2023

o Sales Taxes – Annual Increased Revenue
 1% Citywide - $12,900,000
 0.5% Citywide - $6,450,000
 1% Freeway & Bear Valley Corridor - $6,100,000
 0.5% Freeway & Bear Valley Corridor - $3,050,000
o Utility User Tax – Approximately $300,000 in revenue for every 1% levied o Transient Occupancy Tax - Approximately $190,000 revenue for every 1% levied  Note – Hesperia current rate is 10% and state average is in between 10% and 12%.

Based upon the information presented above, t o help meet important community needs staff is seeking direction from the City Council on whether to move forward with a public outreach consultant to proceed with community engagement on potential tax increases. Staff would then report back to the City Council the results of the public engagement. At that time, the City Council may elect to place an initiative on the November 2024 ballot.

FISCAL IMPACT

Should the City Council elect to proceed with a public engagement consultant, the City will seek qualified/experienced consultants. Following the City’s purchasing ordinance, if costs exceed $50,000, a staff report will be presented to the City Council for approval. Furthermore, as this was not included in the F iscal Year 2023-24 Operating Budget, a budget amendment would be presented to the City Council during the quarterly budget review.

ALTERNATIVE(S)

1. Provide alternative direction to staff.

ATTACHMENT(S)

None