Hayward City Council
May 7, 2024

DATE: May 7, 2024

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT: Adopt a Resolution Authorizing the City Manager to Accept and Appropriate $250,000 in One Bay Area Grant Program Funds from Alameda County Transportation Commission for the Development of a Community Based Transportation Plan, Project 06940

RECOMMENDATION

That the Council adopts a resolution (Attachment II) authorizing the City Manager to accept and appropriate $250,000 from the Alameda County Transportation Commission to develop Haywards first Community Based Transportation Plan for areas that have been identified by the Metropolitan Transportation Commission as Equity Priority Communities.

SUMMARY

In January, City Staff applied for the 2022 -2026 funding cycle to improve access and mobility for historically underserved and systemically marginalized groups, including people with low incomes, communities of color, and residents of Equity Priority Communities ( EPC). This regional program requires the engagement of residents and community organizations in conducting the analysis and shaping C ommunity Based Transportation Plan (CBTP) recommendations. T he Alameda County Transportation Commission (ACTC) Programs and Pro jects Committee (PPC) recommended approval of the allocation of funds on April 8, 2024. The ACTC Commission approved the allocation of funds on April 25, 2024.

BACKGROUND

The CBTP program was launched in 2002 by the Metropolitan Transportation Commission (MTC) to identify transportation challenges in equity communities around the region and strategies to overcome them. The CBTP program has been funded by the One Bay Area Grant (OBAG3) program, which comes from Federal funds. MTC awards CBTP funding to county transportation agencies (CTAs) to administer funding for and development of these community plans on MTC’s behalf. These funds come to CTAs periodically, most recently tied to MTC’s cycles of the OBAG program, which is comprised of federal transportation funding . ACTC oversees the distribution of funds for CBTPs in Alameda County.

A CBTP is a strategic document that outlines transportation goals, priorities, and strategies tailored to the unique needs of a community. It involves extensive community engagement to gather input from residents and stakeholders . The objective is to imp rove transportation accessibility, safety, and sustainability while addressing local concerns in an e quitable way. CBTPs consider all transportation modes , including walking, biking, public transit, and others to create a comprehensive and integrated transportation network effectively serving community needs.

The goals of th e CBTP are consistent with Hayward ’s progressive stance on social equity. For example, Equity is a key pillar of the Climate Action Plan ( CAP). The CAP established equity guardrails as the foundation for the entire greenhouse gas (GHG) reduction strategy. CBTP program guidelines are congruent with the equity guardrails and commitment to prioritize underserved communities. The completion of this CBTP will add to the City’s track record of building a culture of equity that ensures the needs of all residents are met, taking into consideration past inequities and injustices. Through listening, learning and informed recommendations for overcoming transportation barriers in our most vulnerable communities, this planning program contributes to the City’s commitment to provide “equitable service s that improve the lives of all residents ” as stated in the 2024-2025 Strategic Roadmap.

MTC has defined E PCs throughout the region to direct funds to the areas with the highest equity need. EPCs are communities that have a high concentration of both and low-income households or that have a high concentration of other factors including people with disabilities, seniors, and/or cost-burdened renters. As shown in MTC’s Race and Equity Action Plan, Central Alameda County equity comm unities are disproportionately burdened by transportation outcomes in safety and health, including exposure to heavy traffic and diesel trucks, and adverse public health outcomes as indicated by high prevalence of serious heart and lung disease and a high density of traffic collision and fatalities.

Within the City of Hayward, there are 13 census tracks that qualify as EPCs and these communities have some of the highest shares of low-income and people of color, single parent families, and limited English proficiency in the region (Attachment III).

DISCUSSION

MTC has specific guidelines for how to use CBTP planning funds. CBTPs at their highest level are venues for communities to directly communicate with transportation officials on transportation needs, develop strategies to address these needs, and create a clear implementation pathway for community-driven recommendations. The guidelines require working with established community groups in the form of a steering committee to guide the recommendations. In administering the program, MTC’s guidelines encourage CTAs to prioritize CBTPs for areas that do not currently have a plan, where a CBTP is more than five years old, or areas that have the highest concentration of low-income residents.

ACTC last completed a countywide CBTP in 2020 that formed the basis for community-identifies priorities for low-income communities and communities of color in the 2020 Countywide Transportation Plan (CTP).

ACTC staff recommended that the City of Hayward develops its own CBTP due to the unique set of transportation priorities, including established CAP GHG reduction measures, actions, and equitable community goals that may be different from other municipalities in the County. A City- focused CBTP also enables more robust and comprehensive engagement with EPCs in the City.

Hayward will develop its first CBTP for all areas that have been identified as an EPC. The CBTP will seek to engage residents of EPCs to develop a deep understanding of community concerns and ideas to enhance access and circulation. Community feedback will help inform ongoing and future multimodal transportation planning in the City and will include coordination with AC Transit and BART. In particular, the City of Hayward’s CBTP will inform the implementation of the Vision Zero by 2050 initiative and the Local Road Safety Plan, including the upcoming Speed Management Plan and the High Injury Network Safety Plan.

Consistent with MTC’s guidelines to prioritize areas that do not have current or recent plans.

Hayward is the ideal location given that it does not have a CBTP and has a high equity need.

ECONOMIC IMPACT

Residents, employers and employees in the City will benefit from the funding received through identification of transportation challenges and strategies to overcome them in equity priority communities around the City. Identifying and overcoming transportation challenges will support economic vitality by making it safer for residents to walk and ride bikes, reducing economic losses from crashes. Additional benefits can include reducing pollution and greenhouse gas emissions, which are related to negative health and environmental consequences.

The CBTP will also make the City of Hayward more competitive for future Grant Funding opportunities.

FISCAL IMPACT

The CBTP is funded by ACTC OBAG3 funds for $250,000 and will be received in the Transportation System Improvement Fund (Fund 460). There is no local funding match required for this grant, so there is no direct fiscal impact on the City’s General Fund related to this project. ACTC receives and distributes OBAG-3 funds received from the MTC.

STRATEGIC ROADMAP

This agenda item supports the Strategic Priority to Confront Climate Crisis & Champion Environmental Justice. This item specifically relates to the following Project:

Reduce Greenhouse Gases and Dependency on Fossil Fuels
Project C1: Implement Year 1 Programs from the adopted GHG Roadmap (CAP)

CAP Action
T-1.4: Prioritize active transportation and mobility projects in historically under-invested neighborhoods. CAP pillar Equity

SUSTAINABILITY FEATURES

Upon Completion of the CBTP an implementation plan will be produced complete with a prioritized list of initiatives, projects and/or programs. This CBTP deliverable will contain the associated cost for each recommendation. The implementation plan will include potential funding sources and time frames for recommendations aimed at increasing active transportation, safety and micromobility consistent with GHG reduction goals.

PUBLIC CONTACT

No public contact has been made related to this agenda item.

NEXT STEPS

If Council approves this request, the City Manager will enter into a funding agreement with ACTC for a total amount of $250,000 OBAG-3 funds. Once the funding agreement is executed, OBAG-3 funds will be available to reimburse project costs.

Prepared by: Fred Clay, Executive Fellow
Byron Tang, Senior Transportation Engineer

Recommended by: Alex Ameri, Director of Public Works

Approved by:

__________________________________________
Dustin Claussen, Interim City Manager

ATTACHMENT II

HAYWARD CITY COUNCIL

RESOLUTION NO. 24-____

Introduced by Council Member __________

RESOLUTION AUTHORIZING THE CITY MANAGER TO ACCEPT AND
APPROPRIATE $250,00 IN ONE BAY AREA GRANT PROGRAM FUNDS FROM

THE ALAMEDA COUNTY TRANSPORTATION COM MISSION FOR THE

DEVELOPMENT OF A COMMUNITY-BASED TRANSPORTION PLAN PROJECT NO. 06940

WHEREAS, the Alameda County Transportation Commission (“Alameda CTC”) administers funding programs for projects and programs that benefit the Alameda County transportation system, consisting of One Bay Area Grant program (OBAG3) funding, and such funding is collectively defined as and shall be referenced herein as the “Alameda CTC Administered Funds”; and

WHEREAS, the City of Hayward (“ City”) submitted a funding application (“Application”) to the Alameda CTC for the Community-Based Transportation Plan (“Project”); and

WHEREAS, the City will develop a Community-Based Transportation Plan (CBTP) Project 06940, for areas in the City that have been identified as Equity Priority Communities (EPCs); and

WHEREAS, by action at its meeting held on April 25, 2024, Alameda CTC awarded $250,000 in Alameda CTC Administered Funds to the City for the implementation and delivery of the planning (“Awarded Phase(s)”) of the Project; and

WHEREAS, prior to receipt of any Alameda CTC Administered Funds, City shall be required to enter into a Project Funding Agreement (Agreement) with Alameda CTC based on Alameda CTC’s form therefor, said Agreement shall set forth certain project -specific requirements applicable to the Project; and

ATTACHMENT II

WHEREAS, as part of the requirements to receive Alameda CTC Administered Funds awarded to the Project, Alameda CTC requires a resolution accepting the awarded funding to be adopted by the City’s governing body confirming the following:

1. City’s commitment to secure matching funds against the awarded Alameda CTC Administered Funds, if required; and

2. City’s commitment to provide any additional funding required to deliver the Awarded Phase(s) of Project, with an understanding the same shall not be funded with additional Alameda CTC Administered Funds; and

3. City’s commitment to implement the Awarded Phase(s) of Project as described in the funding application and the subsequent funding agreement between Alameda CTC and the City; and

4. City’s commitment to comply with the Agreement; and

5. City’s commitment to comply with the applicable requirements set forth in Alameda CTC’s Local Business Contract Equity (“LBCE”) Program for professional services and construction contracts funded with Measure B, Measure BB, and/or VRF funds, and abide by the LBCE procedures in the applicable solicitations and contracts.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is hereby authorized and directed to accept and execute an agreement for up to $250,000 from Alameda CTC Administered Funds to complete a CBTP.

RESOLVED that the City Council hereby finds and determines as follows:

1. City is not required to provide matching funds; and

2. City understands that the City shall be responsible to provide any additional funding required to deliver the Awarded Phase(s) of Project if the current funding is not sufficient to complete the project, and that the same shall not be funded with additional Alameda CTC Administered Funds; and

3. Awarded Phase(s) of Project will be implemented as described in the Application, Agreement and in this resolution; and

4. City will comply with the Agreement; and

5. City will comply with the applicable requirements set forth in Alameda CTC’s LBCE Program; and therefore, be it further

FURTHERMORE, BE IT RESOLEVED, that the City Council of the City of Hayward authorizes the amendment to the Budget Resolution by accepting and appropriating $250,000 in funding from Alameda CTC to the Transportation System Improvement Fund (Fund 460).

FURTHERMORE, BE IT RESOLVED that the City Council confirms that there is no pending or threatened litigation that might in any way adversely affect City’s ability to implement and deliver the proposed Project; and

ATTACHMENT II

FURTHERMORE BE IT RESOLVED that City shall provide Alameda CTC with a fully executed copy of this Resolution.

IN COUNCIL, HAYWARD, CALIFORNIA , 2024

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

ATTACHMENT III

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 24-233
DATE: May 7, 2024
TO: Mayor and City Council
FROM: Development Services Director

SUBJECT
Adopt a Resolution in Support of the College Heights (formerly Bayview Quarry Village) Concept Project

RECOMMENDATION
That the Council discusses the background materials provided by Sherman Lewis, and considers an updated resolution in support of the concepts incorporated in the College Heights <https://collegehts.org/>, formerly Bayview Quarry Village, concept project and encourage investment that might support the project should it be developed.

SUMMARY
The Hayward Area Planning Association (HAPA), led by Sherman Lewis, has developed a proposed real estate development concept for which they are eagerly trying to find investment dollars to support. They are seeking City advocacy for the concepts of the College Heights proposal in hopes of finding financial support should it become a reality. The project concept, which potentially would include about 732 units for approximately 1800 residents, is proposed to be located in the Hayward Hills near California State University East Bay (CSUEB) in the former quarry site off Carlos Bee Boulevard. The property was acquired by the State Department of Transportation (CalTrans) related to the previously planned Route 238 Bypass freeway, and is currently designated as Parcel Group 6 under the purchase and sale agreement between the City of Hayward and Caltrans. Dr. Lewis does not currently have control of the subject property either through a purchase and sale agreement or through an option on the property. Nor does he have completed project plans or a source of financing for the project: College Heights, formerly Bayview Village, is conceptual at this point in time.

However, Dr. Lewis is seeking an updated City Council resolution in support of his concepts in hopes of finding a developer partner to help realize this proposal.

ATTACHMENTS
Attachment I: Staff Report
Attachment II: Draft Resolution
Attachment III: College Heights Proposal
CITY OF HAYWARD Printed on 5/3/2024Page 1 of 2
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File #:CONS 24-233
CITY OF HAYWARD Printed on 5/3/2024Page 2 of 2
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DATE: May 7, 2024

TO: Mayor and City Council

FROM: Development Services Director

SUBJECT: College Heights: Consideration of a Resolution in Support of the College Heights (formerly Bayview Quarry Village) Concept Project

RECOMMENDATION

That the Council discusses the background materials provided by community member Dr.

Sherman Lewis, and considers an updated resolution in support of the concepts incorporated in the College Heights, formerly Bayview Quarry Village, concept project and encourage investment that might support the project should it be developed.

BACKGROUND

The Hayward Area Planning Association (HAPA), led by Sherman Lewis, has developed a proposed real estate development concept for which they are eagerly trying to find investment dollars to support. They are seeking City advocacy for the concepts of the College Heights proposal in hopes of finding financial support should it become a reality.

The project concept, which potentially would include about 732 units for approximately 1800 residents, is proposed to be located in the Hayward Hills near California State University East Bay (CSUEB) in the former quarry site off Carlos Bee Boulevard. The property was acquired by the State Department of Transportation (CalTrans) related to the previously planned Route 238 Bypass freeway, and is currently designated as Parcel Group 6 under the purchase and sale agreement between the City of Hayward and Caltrans.

The concept intends to be forward thinking in an attempt to reduce sprawl and auto- dependency. Conceptually, residents would select the homes because of their location, environmental sustainability, and the other "green" attributes of the site. Current concepts call for one parking space per unit, or 732 parking spaces, located in a podium style. In order to make the project successful, the concept includes a range of amenities, such as a self-financed "Village Bus" rapid shuttle, cafe and shopping service, along with on-site car sharing.

In May 2014, the City Council adopted a resolution in support of the project concept and Dr. Lewis is seeking an updated resolution from the City Council in support of these concepts in order to be better positioned to find an investment partner.

In September 2019, the City developed a Master Development Plan for this parcel group which was followed by the City issuing an RFP to solicit proposals that were aligned with the Master Development Plan. Proposals submitted in response to that 2019 RFP, were also required to submit a project understanding and impact statement regarding the feasibility of developing the Bayview concept, now College Heights, as presented in a separate proposal document prepared by the Hayward Area Planning Association. At that time, Integral Communities was the proposal awarded an ENRA to develop parcel group 6, but terminated that agreement in January 2022.

DISCUSSION

The concept proponent, Sherman Lewis, has long advocated for the concept and has prepared numerous studies, reports, and presentations regarding the proposed concept benefits. Dr. Lewis has contacted numerous developers over the past several years to seek a development partner with little or no success, in part due to lack of subsidized financing.

The project concepts contained within the College Heights concept proposal are aligned with many goals and objectives outlined in the Hayward 2040 General Plan, including but not limited to the following Land Use (LU) and Mobility (M) policies:

 LU-1, Promote local growth patterns and sustainable development practices that improve quality of life, protect open space and natural resources, and reduce resource consumption, traffic congestion, and related greenhouse gas emissions; and  LU-3: Create complete neighborhoods that provide a mix of housing options and convenient access to parks, schools, shopping, jobs, and other community amenities; and
 M-8: Encourage transportation demand management strategies and programs to reduce vehicular travel, traffic congestion, and parking demand.  M-9: Provide and manage a balanced approach to parking that meets economic development and sustainability goals.

Dr. Lewis does not currently have control of the subject property through a purchase and sale agreement or an option on the property; nor does he have completed project plans or a source of financing for the project: College Heights, formerly Bayview Village, is conceptual at this point in time. However, Dr. Lewis is seeking an updated City Council resolution in support of his concepts in the hopes that doing so will aid in the finding of a development partner to help realize this proposal.

STRATEGIC ROADMAP

This agenda item supports the Strategic Priority of Preserve, Protect & Produce Housing. This item is not specifically related to a project identified in the Strategic Roadmap. Staff is bringing forth this new item at the request of Dr. Sherman Lewis who seeks an updated City Council Resolution in support of the concepts in his College Heights proposal.

ECONOMIC IMPACT

At this stage an economic impact for the proposed concept is not estimable.

FISCAL IMPACT

As opportunities arise, careful consideration should be given to Council priorities before applying for funds for this concept. Staff time is limited and applying for grant funds and investing staff resources in these efforts would need to be weighed against other demands consistent with Council priorities.

In the longer term, any future development of this site will result in new property taxes; however, it is difficult to estimate those amounts. Further, unless the City or another public entity wishes to be the outright purchaser of this land from CalTrans, the State is required to obtain "fair market value" for the land through their usual auction process. At this time, staff is uncertain if CalTrans has an updated appraised value for the land or when the land parcel will be placed on the auction market. In addition, it does not appear that CalTrans is willing to make allowances within their land disposition process to accommodate the development of this concept into a full-fledged project.

NEXT STEPS
If the attached resolution is approved by Council, staff will forward that resolution to Dr.

Lewis for his use in seeking funding and support for his concept; Moving forward, Dr.

Lewis will continue to develop his project concept and seek investment dollars in order to secure control of the land and seek out a development or finance partner that can help bring his concept to life.

Prepared by: Sara Buizer, AICP, Development Services Director

Recommended by: Adam Kostrzak, Interim Assistant City Manager

Approved by:

_____________________________________________
Dustin Claussen, Interim City Manager

ATTACHMENT II

HAYWARD CITY COUNCIL

RESOLUTION NO. 24-____

Introduced by Council Member __________

RESOLUTION EXPRESSING SUPPORT FOR THE COLLEGE

HEIGHTS, FORMERLY BAYVIEW VILLAGE, PROPOSAL AS

DEVELOPED BY THE HAYWARD AREA PLANNING ASSOCIATION

WHEREAS, the City of Hayward has identified affordable and sustainable housing in its Housing Element, reduced greenhouse gases in its Climate Action Plan; and other policy goals supported by College Heights proposal and

WHEREAS, the Hayward Area Planning Association proposes the development of College Heights on an abandoned quarry to be a walkable neighborhood system with minimum vehicle use and to achieve the goals of the City; and

WHEREAS, the College Heights proposal is intended to be designed with a comprehensive approach to neighborhood development, achieving goals of affordability, sustainability, mobility, health and safety, design and community that would be a model for the state and the nation; and

WHEREAS, the College Heights proposal is designed with the intent to meet travel time budget requirements using Transportation Demand Management and mixed use for its major markets; and

WHEREAS, the College Heights proposal could assist in meeting the needs of faculty, staff, and students at nearby California State University East Bay, Hayward, seniors and retirees, work from home, Hayward downtown workers, BART commuters, and families; and

WHEREAS, the College Heights proposal includes a major recreation facility for the public, the Foothill Trail, and conserves a sensitive riparian habitat; and

WHEREAS, the City of Hayward owns the rights to the land, is seeking a developer consistent with its master plan land use designations and zoning for Sustainable Mixed Use, these plans are approved by a Program Env ironmental Impact Report, and College Heights is potentially consistent with these plans, creating a fully supportive regulator environment; and

ATTACHMENT II

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hayward supports the concepts of the College Heights proposal and encourages investors to consider it for development.

IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2024

ADOPTED BY THE FOLLOWING VOTE:

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

__________________________________________
City Attorney of the City of Hayward

The Quarry
Attachment III
Hayward Area Planning Association proposes
College Heights
The Rebirth of the Walking Neighborhood
Killed by the Car
College Heights achieves

We will talk about…
 The Costs of Suburbia
 A Better Way: Walkable Neighborhood Systems
 The Site, The Site Plan
 Village Center + Parks & Rec
 Floor Plans: Unit Designs for our target markets
 Six goals: Affordability; Sustainability; Mobility;
Health, Safety, Security; Design, Community
 Target Markets
 Finances
 Next Steps
Suburbia has costs
 Detached single family housing on large lots is
inherently expensive both economically and
environmentally
 Costs are necessarily higher for building and for
car infrastructure, reducing affordability
 The system is not sustainable due to
greenhouse gases, pollution, water
consumption, and resource use
 Loss of farmland reduces land for food
 Loss of habitat reduces land for wildlife, nature
More…
 Suburbia is a car
dependent monoculture
lacking flexibility in travel
modes
 Overuse of cars makes us
fat, lazy, unhealthy
 Auto accidents maim and
kill us
 Cars are inefficient in
times of congestion or a
lack of parking
Out of date already!
 Cars are expensive in time and money.

Purchase, use, insure, maintain, repair, operate,
pay tolls, parking, tickets, accidents
 Parking lots are ugly, and increase temperatures
on hot days
 Suburbs can lack neighborliness, community
amenities and social interaction
 Loss of nature and biodiversity diminishes the
human spirit
More…
Walkable Neighborhood Systems (WNS)
 Neighborhood systems are a combination of
land use and transportation, including how they
are paid for
 WNS look at neighborhoods defined by
convenient walking distances and sufficient
density to reduce the cost of housing, utilities,
and transportation combined
 WNS reach economics of scale that support
mixed use, walking, transit, and low auto use
More…
 WNS have energy-efficient land use and
housing, maximizing walking and transit,
minimizing and dependency on cars
 WNS sustainable transportation options have
prices reflecting the real costs of fossil fuels
 WNS use land and water efficiently and have
low pollution
 The general market does not offer sustainable
housing in walkable neighborhoods
 Proposed in the hills near the California
State University campus in Hayward
 Designed for 732 units and about 1,800
residents
 120 persons per neighborhood acre
 Low car dependence, yet convenient,
healthy, attractive, safe, and affordable
 Environmentally sustainable in housing,
energy, water, resources and transportation
College Heights is a WNS
More…
 Mixed Use: residential, café, store, recreation
 Village Bus, unbundled parking charges, public
cars, vouchers
 Parking is optional (unbundled) – no car – no pay
 Designed for walking and transit: enough people
in a walkable area generate walk-in demand to
support a Village Center, a café, a store, a
Village Bus, and other features that meet or
exceed suburban standards
Location
between Cal State University and downtown Hayward

2.2 miles, campus to BART

The Site
 Quarry owned by the City of Hayward, which
planned to sell it to developers
 Years later, developers withdrew their
application, no others have come forward
 Sustainable Mixed-Use Zoning supporting a
project like College Heights
 Quarry has 29.8 acres, of which 18.7 acres are
developable
 Adjacent PG&E easement can be used for
busway, community garden, orchard,
landscaping
Existing Conditions
Existing Conditions sq ft acres percent
Undevelopable Area
Crevice Creek Riparian Corridor. Ravine and creek 230,000 5.28 17.8% Steep Cut Slope on east side, existing 176,940 4.06 13.7% Steep Rock Slope on east side, proposed 36,500 0.84 2.8% West Area. steep drop off and slope over 25% 35,930 0.82 2.8% Undevelopable 479,370 11.00 37.2%
Developable Area
main flat pit 470,724 10.81 36.5%
deep pit, northwest corner 66,163 1.52 5.1%
knoll 90,290 2.07 7.0%
from middle high ground to south end 183,610 4.22 14.2% Total Developable Area 810,787 18.61 62.8%
Total Property 1,290,157 29.62 100.0%
The Site Plan
 Walkways provide access to Village Center,
Foothill Trail, and parking podium.
 Focal point at Village Center.
 The parking ratio is one space per unit.
 Private vehicles are not allowed within project;
only vehicles for maintenance, moving, postal,
delivery to parcel boxes, public safety, and
sanitation.
 Residential parking will be in a podium below the
mail project with access from Carlos Bee Blvd.

The Site Plan
Site Plan Areas
Project Area Acreage sq ft acres percent
Foothill Trail 127,730 2.93 16%
Model Homes 8,652 0.20 1%
Residential lots 474,579 10.89 59%
4 pocket parks 11,872 0.27 1%
Walkways 122,344 2.81 15%
Village Center 20,566 0.47 3%
South parking 13,807 0.32 2%
Busway 6,720 0.15 1%
Landscaping 7,717 0.18 1%
College Heights Ave. at grade 15,316 0.35 2%
Total 809,303 18.58 100.0%
Site Plan Units Overview

The Community Center
The Village Center

Village Center functions
 Below Busway level: bike shop, Village Van
parking, childcare
 Busway level: HOA service counter, ATM,
fireplace reading room, security
 Second floor: café with bay view, multi-purpose
room for fitness center, meetings and events;
kitchen/coffee bar, small offices and co-working
spaces to rent or lease
 Third floor: managers’ residences
Spectacular views from the café

Another spectacular view from the café
Parks and Recreation
 Parks in the Village:
 4 small parks within developed area
 Tot lot; Bocce court
 Village Square
 Recreational Trails:
 The Foothill Trail comes through the project from north to south Hayward
 The Picnic Spot Trail goes from the Village Center goes to a picnic area on the rocky cut slope above the project
 Nearby: Hidden Hills Health and Racquet Club, Cal State playing fields
Floor Plans

Studio and One Bedroom

Two Bedroom two bath in a Sixplex
Three Bedroom Townhouse with flex space
living and dining on second floor
Four Bedroom Townhouse
living dining on first floor
Five Bedroom Townhouse is bigger but similar
Affordability
 No expense for paving or vehicle parking;
parking pays its own way
 More units per acre by using narrow walkways,
row housing, minimal setbacks
 Four square building foundations
 Efficient floor plans
 Maximize units per acre and per mile of walkway
utilities lowers cost per unit
 Construction efficiencies with three-story row
housing
Affordablity: College Heights and HUD limits, 2023
Moderate income limit is 120% of median income
unit type
Monthly
mortgage
All three
monthly
Housing
cost
House-
hold size
Income
limit
Qualifies at

7.61% 5.00%
studio $ 2,104 $ 613 $ 2,717 1 $ 3,437 yes yes
1 bed $ 2,821 $ 774 $ 3,595 2 $ 3,927 yes yes
2 bed 1 bath $ 3,635 $ 958 $ 4,592 3 $ 4,417 no yes
2 bed 2 bath $ 4,111 $ 1,065 $ 5,176 3 $ 4,907 no yes
3 bed flat $ 4,973 $ 1,260 $ 6,233 4 $ 5,300 no yes
3 bed TH $ 5,471 $ 1,374 $ 6,845 4 $ 5,692 no yes
4 bed TH $ 5,978 $ 1,489 $ 7,467 5 $ 6,086 no yes
5 bed TH $ 6,872 $ 1,695 $ 8,567 6 $ 6,477 no No
Many units under 110% of HUD median income
Mortgage interest rates make a big difference in ability to qualify to meet HUD limits
HOA provides operational and maintenance services a
homeowner would otherwise have to pay for
 Green buildings:
 Sustainable lumber (certified by the Forest
Stewardship Council or similar certifier)
 Healthy paints and finishes
 Latest, highest efficiency building
techniques and materials
 Rain screen siding against mold
Sustainability: Construction
 Global warming: No fossil fuel use in units,
less greenhouse gas
 Sustainable materials – no off gassing
 Reduced dependency on oil imports and rising
fossil fuel costs
 Parking accommodates electric vehicles
 Less air pollution from less traffic and
congestion
Sustainability: Air
Sustainability: Water
 Water efficiency: water-efficient fixtures, reduced
water use and sewage
 Rainwater barrels for roofs
 Rainwater retention using large trickle-out pipes
under walkways; zero runoff
 Absorption on-site of rainwater and grey water
for irrigation
 Landscaping uses drought tolerant, native
plants, reducing irrigation needs
 Less water pollution
Sustainability: Land
 More efficient use of land saves farmland and
habitat
 Conservation of the Crevice Creek riparian zone
 No heat islands – reduced asphalt areas
 Foothill Trail
 Garden space
Sustainability: Energy
 No net electricity off the grid over the course of a
year--“net zero”--with electrical use in winter
balanced by electrical generation in summer
 Solar energy provides all domestic hot water, air
conditioning, air cleaning, air renewal, and
electricity for cooking, appliances, lighting, plugs,
and electronics
 Energy system sold separately from housing,
reducing housing cost
 Energy paid for by direct purchase or lease
 Energy costs below usual PG&E
Passive Energy
 Built into the development
 Three story row housing optimizes building
energy conservation
 2”x6” studs create space for more wall insulation
 Shades on outside of building optimize heat gain
 Energy conserving doors and windows
 Tight buildings, tested by blower door
 R-26 for walls and R-50 for ceiling exceeds
California Title 24 energy regulations
Active Energy: Thermal
 1. PV thermal modules installed on sloped roof
generate electricity topside and heat backside
 2. Central thermal plant is efficient because of the
size of the project
 3. Large heat pumps in the plant heat the central
storage water as needed
 4. Thermal energy is stored in central thermal
storage, a large underground borehole
 5. A four-pipe distribution system connects the
modules to the central plant, the central storage,
and the units
More…
 6. Domestic hot water using a small thermal
storage tank in each unit boosting hot water from
central thermal storage when needed (showers,
laundry, etc.)
 7. Unit hydronic air conditioners, a small “fan
coil” for space heating and cooling using a fan
blowing across pipes with fins
 8. Hydronic warm towel rack, dries towels and
heats bathroom
More…
 Summer Winter balance:
 Winter: Hot water from central storage heats
units using hydronic air conditioners in units
 Central thermal storage cools down
 Summer: cool water from thermal storage
cools units and the PV thermal modules for
highly efficient production of electricity from a
cooler module
 Electricity and hot water from PV thermal
modules and heat pumps recharge the central
storage for use in winter
 Electricity is estimated at $1.89 per watt, well
below the standard cost for smaller projects of
$2.20 to $2.97
 Bifacial PV modules are mounted on racks to
allow bounce light to reach PV on the backside
 Units have
 LED lighting with occupancy sensors
 Induction cooktops which are faster, safer, use less
energy and lower pollution generation than natural
gas or electrical resistance
Active Energy: Electrical
Active Energy: Designing and managing
 Balanced Design Approach balances all parts of
the system for net zero and life cycle cost-
effectiveness
 HOA management operates the system using
continuous commissioning for increased
productivity
 Submetering reports unit use, helping residents
monitor and manage energy use
 Smart Thermostats have occupancy sensors to
adjust the temperature before people get home
Mobility
 Transportation Demand Management (TDM)
provides ample mobility alternatives to car
dependence for its target markets
 Personal cars
 Leased parking
 Walking
 Transit
 Public cars
 Bike - ebike
Mobility: Personal cars
 732 spaces in podium leased at market rate,
about $95 per month
 No car, no pay
 Parking is paid for separately from housing
 Spaces have high-capacity EV chargers
 Potential leased parking nearby off-site at less
cost
Mobility: Walking
 The land use plan supports walking for trips
usually done by car, such as shopping, meals
out, ATM, and recreation
 Walking distances are short and convenient
 Maximum walk time from the most distant unit to
Village Center is five minutes
 Many needs are met on-site by the parks, trails,
and Community Center with a café, store,
meeting room, fitness center, potential childcare,
bike shop and HOA services
Mobility: Village Bus
 Village Bus: fast, frequent, free from campus to
College Heights to downtown and BART
 Free: Eco-pass for village residents Homeowner fees
support eco-pass
 Frequent: Every 10 minutes most of the day
 Fast, frequent service increases ridership
 Supports transit-oriented development along Mission
Blvd and downtown
More…
 Fast: Downtown
Hayward and BART in
six minutes; Cal State in
two minutes
Downtown: Buffalo Bill’s Brewpub
Hayward BARTCal State East Bay

 Why the Village Bus is fast:
 Diesel electric hybrid motor with batteries
 Nimble, midsize 30-foot 20-to-30-person bus
 Powerful electric motor for fast hill-climbing
 Regenerative braking to recover energy
 Guided docking at door-level bus stops
 No-step, fast boarding from elevated stops
 Signal preference at red lights
 Right lane queue jumping: red light for cars lets bus jump ahead
More…
 Proof of purchasing ticketing– an inspector
spot-checks for a pass
 No on-board fare collection or ticket sales, e-
tickets on an app?
 Drop-off directly at the BART entrance; no time
spent hunting for parking and walking into the
station
 A cell phone app for eco-pass, ride-hail, bus
schedule and other mobility information
More…
 Public cars: car share, car rental,
Uber/Lyft, taxis
 Public car parking at Community Center
 Vouchers for rides to health care and
guaranteed ride home from Village Bus
when BART not running
 Paid public parking south of the Village
Center, outside the walking area
Mobility: Public cars, public parking
 E-bikes at Community Center
 Bike repair at Community Center
 E-bike lane to campus
 Downhill to Mission and Downtown
Hayward (you might need the Village Bus
to get back up )
Mobility: Bikes, e-bikes
Health, safety, security
 Parks and trails
 Fitness Center
 Cleaner air, less noise
 Safety: no car traffic
 Security:
 Defensible space design;
long sightlines, good lighting
 CCTV
 HOA managers on site
 In-person social networking

Design
 Designed for pleasant walking; wide walkways
with no traffic
 Trees and other landscaping in parks and along
walkways
 A variety of views along walkways mixing
straight and curved, short and long, lots of views
into green spaces, and the city below
 Low rise spaciousness despite density, 15-foot-
deep backyards
More…
 Building facades with interesting design, color
and ornamentation

The Village Square
View up main walkway
Further north along main walkway

Inspired by Victorian Era
Visual appeal using familiar and attractive design elements Façades
Three-bedroom townhouse Two-bedroom condos in sixplex
Community
 Informal interaction along walkways, on Village
Bus, in parks, in Village Center around the
square, café, store, and HOA service counter
 Village Center with facilities for meetings,
fitness, banquets, and events
 HOA sponsored holiday events
 The HOA managers manage the Village Van for
school busing and group trips, e.g., to Costco,
Trader Joe’s, San Francisco culture, and
community events.

More…
 People meet face to face instead of bumper to
bumper
 Social relationships increase security
 HOA managers on duty most of the time
 The Homeowner Association Board involves all
who are interested, oversees managers, and puts
on community events
 The HOA managers assure quiet and privacy
More…
 HOA managers take care of
 Operating and maintenance
 HOA businesses: café, store, parking
 Landscaping and common use assets
 Village Bus, eco-pass, taxi vouchers, Village
Van, use of Community Center
 Painting, reroofing, solar panel maintenance
 Fire sprinkler inspection and testing
 Security
Markets
 Cal State University East Bay
 BART riders, downtown and corridor workers
 Work from home
 Retired, Seniors
 Environmentalists
 Families
 Health-seekers
 Community-seekers
 Disabled persons
Cal State University East Bay
Faculty, staff, administrators, students
 Campus is two minutes away by Village Bus
 Campus is within walking distance
 E-bike lane to campus
 Prices are affordable
 Bus also serves visitors

BART riders, local workers
 Easy access to work in the Mission Corridor and
downtown Hayward
 Easy access to locations throughout the Bay
Area by BART
 BART access to Amtrak and airports for farther
trips
Work from Home
 Three-bedroom unit designed with a large flex
space on the ground floor
 Flex space can have a kitchen, office, and other work- related improvements as an upgrade
 Flex space has a bathroom and access to patio
 Small offices in Village Center equipped for
teleconferencing
 Village Center has mailing and copying services,
ATM, and other support for home office
Seniors, Retired
 Home ownership free of responsibility for painting,
plumbing, repairs, termites, yard duty, taking care
of a car
 HOA fee pays for professional operation and long-
term maintenance
 Good mobility if you can’t drive, shouldn’t drive, or don’t want to drive
 Take a trip with no worries about the house--lock
the door and go
 Good value for funds from sale of a larger home
Buyer choices
 Flexibility of interior space
 Fixed in place: outside walls and windows, front
door, utility core
 Flexible: inside walls to change floor plan
 hoices of outside colors and wall ornamentation
(sunbursts, etc.)
 Popular upgrades available.
 Sales agent and buyer use a computer program for
visualizing choices and pricing of upgrades
Family friendly
 Many suburbs, supposedly ideal for raising children,
have dangerous streets, and lack adequate
transport for chauffeuring kids to school and
activities. Car-free projects in Europe are havens for
many families with children
 A safe place for kids to play & grow up:
 No traffic
 Village Van for trips to school and activities
 A fenced tot lot play area
 Childcare possible in the Village Center
Health seekers
 Pedestrian-friendly design supports walking for
health and weight loss without loss of
convenience and mobility
 Less traffic means cleaner air, more safety, and
less noise
 Fitness center, access to the Foothill Trail, a view
picnic spot, and Memorial Park, Garin Park, and
Dry Creek Park support an active lifestyle
 A tennis swim club is close, by City View
apartments
Disabled persons
 No-step entry for 170 ground floor
units
 No curbs from the front door to
the Village Center
 No-step entry onto the Village Bus
College Heights is designed for people who can’t or
shouldn’t drive (car driving-impaired)
 “Universal design” for
users of wheelchairs and
the visually impaired
Market Research
Bayview Village – Hayward, Executive Summary Market Study, Presented To HAPA by S L State & Associates, July 2011
A market study found that
the unique vision of College
Heights could appeal to
“green-living” celebrity
endorsers, leading to “a
tremendous amount of
public relations articles
reaching a broad range of
potential buyers/renters”
Special Market Research
 Affordability incentive and buyer education
 Travel diaries by members of target markets
 Discussion of the diaries with an expert on
alternative mobility
 Focus groups to discuss College Heights
 Help buyers think about a new and better style
of life
The Hayward Area Planning Association has pro
formas for
 The Project
 Shows an internal rate of return using goal
seek of 21.3% over seven years
 HUD housing affordability
Financial Analysis
Financial Highlights
Gross costs $493,057,523
Net operating income $ 29,852,980
Net operating margin 6.1%
Equity investment $21,213,747
Maximum Debt Exposure $ 45,249,344
Asset cost: Equity plus loan $66,463,091
Gross Margin: revenues over asset cost 44.9%
Leverage (LTV) 68%
Equity IRR, (goal seek) 21.3%
Asset IRR 15.2%
First Payout to equity Yr. 6 Qtr 4
Last Payout to equity Yr. 7 Qtr 4
Positive Cash Flow starts Yr. 4 Qtr 1
years of sales 4
Sales per week 3.5
Investor Judgment Call
 Can College Heights can sell enough units fast
enough at a given price to provide an
acceptable return?
 Most investors are risk-averse and avoid green
projects for an untested market.
 Green projects need “patient, green investors”
to grow the market for environmental
sustainability
 College Heights may sell faster than planned.

Risk Reduction
 An interest list and conversations to gauge
interest
 Market research to assess the market and
improve the project and how to present it
 After the Dept of Real Estate approves
preliminary report, take a down payment to
reserve a unit; abort project if too few reservations
 Use Model Homes to estimate early marketability
 Have a fallback plan with more assured
profitability if the absorption rate is too slow
Next Steps
 A credible developer first does due diligence and
negotiates a letter of intent with the City
 The City and developer announce a forthcoming
application and hold a work session
 The developer starts an interested parties list
 City Council approves a pre-entitlement project,
leaving technical reports for entitlement.
 After entitlement, begin taking reservations
 Build model homes and start site improvements
Conclusion
College Heights: the most environmentally
sustainable community ever built in California,
qualifying for LEED platinum, forging new
ground in economies of scale, affordability,
sustainability, mobility, health, design, and
community
Documentation
 City: https://www.hayward-ca.gov/content/california-state-route-238- corridor-lands
 Website: https://collegehts.org/
 Design CAD (.dcd) drawings for site plans and floor plans  SketchUp drawings of facades, walkways, Community Building, and Village Center
 Financial analyses for College Heights, HOA, Bus, parking, affordability, Café, Corner Store, parking lease rate
 Project and building parameters
 Aerial survey; geotechnical report; engineers report
 Market study
Sherman Lewis, President
Hayward Area Planning Association
[email protected]
, June 2023

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: WS 24-014
DATE: May 7, 2024
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Capital Improvement Program Work Session: Review of Recommended Capital Improvement Program for Fiscal Year 2025 - Fiscal Year 2034

RECOMMENDATION
That the Council reviews and comments on the Recommended Capital Improvement Program (CIP) for FY25 through FY34.

SUMMARY
The CIP is a planning document intended to guide the City’s capital project expenditures for the upcoming ten-year period. The proposed CIP budget includes approximately $158 million in FY25 and an estimated $1 billion in the next ten years. Given that Hayward is a full-service city, the CIP covers a wide range of projects, which may include street construction and improvements; bike and pedestrian improvements; traffic calming; wastewater, recycled water, storm water, and water system upgrades; groundwater projects; construction of public buildings; airport projects; replacement of major equipment; clean and renewable energy generation; and other miscellaneous projects. As in past years, the document also includes Identified and Unfunded Capital Needs, which currently total $690 million.

The Recommended FY25 - FY34 CIP can be found here on the City’s website and features a new online format. More information about navigating the new format can be found at the provided link.

Planning Commission Review
State law requires that the Planning Commission review the Recommended CIP to ensure consistency with the City’s adopted General Plan. The Recommended FY25 - FY34 CIP was presented to the Planning Commission at their April 11, 2024, meeting , and the Commission unanimously found that the Recommended FY25 - FY34 CIP is consistent with the City’s 2040 General Plan.

Council Infrastructure & Airport Committee Review
On April 24, 2024 , the Council Infrastructure & Airport Committee (CIAC) discussed the proposed CIP budget, and the Committee directed Staff to look into continued maintenance and propose a plan to CITY OF HAYWARD Printed on 5/3/2024Page 1 of 2
powered by Legistar™
File #:WS 24-014
renovate the Skywest golf course as a public green space, if funding is available. The Committee also asked Staff to research if it’s feasible to combine the City corporation yard with the Hayward Unified School District yard and what that project proposal could be if there was joint funding. The Committee unanimously approved and recommended the CIP’s adoption to the Council scheduled to take place on June 4.

ATTACHMENTS
Attachment I Staff Report
CITY OF HAYWARD Printed on 5/3/2024Page 2 of 2
powered by Legistar™

DATE: May 7, 2024

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT: Capital Improvement Program Work Session: Review of Recommended Capital Improvement Program for FY 2025 – FY 2034

RECOMMENDATION

That the Council reviews and comments on the Recommended Capital Improvement Program (CIP) for FY25 through FY34.

SUMMARY

The CIP is a planning document intended to guide the City’s capital project expenditures for the upcoming ten-year period. The proposed CIP budget includes approximately $1 58 million in FY25 and an estimated $ 1 billion in the next ten years. Given that Hayward is a full-service city, the CIP covers a wide range of projects, which may include street construction and improvements; bike and pedestrian improvements; traffic calming; wastewater, recycled water, storm water, and water system upgrades; groundwater projects; construction of public buildings; airport projects; replacement of major equipment; clean and renewable energy generation; and other miscellaneous projects. As in past years, the document also includes Identified and Unfunded Capital Needs, which currently total $690 million.

The Recommended FY25 – FY34 CIP can be found here1 on the City’s website and features a new online format. More information about navigating the new format can be found at the provided link.

Planning Commission Review
State law requires that the Planning Commission review the Recommended CIP to ensure consistency with the City’s adopted General Plan. The Recommended FY25 – FY34 CIP was presented to the Planning Commission at their April 11, 2024, meeting2, and the Commission unanimously found that the Recommended FY25 – FY34 CIP is consistent with the City’s 2040 General Plan.

1 https://www.hayward-ca.gov/your-government/documents/capital-improvement-program 2 https://hayward.legistar.com/MeetingDetail.aspx?ID=1189779&GUID=5E483A40-F17D-450E-B6A5-43F99B012E09&Options=info|&Search=

Council Infrastructure & Airport Committee Review
On April 24, 2024 , the Council Infrastructure & Airport Committee (CIAC) discussed the proposed CIP budget, in response to Community members public comments, the Committee commented on the need for the continued maintenance of the Skywest property. The Committee unanimously approved and recommended the CIP’s adoption to the Council.

BACKGROUND

The CIP process begins with staff’s preparation of projects and related cost estimates, which are framed by the guidance provided by Council, as well as the needs of the community. Capital projects are identified and prioritized with an emphasis on eliminating geographic inequities in the distribution of City services and infrastructure. Highest priority is given to areas in the community which have experienced a disproportionate level of improvements in past years, as well as those communities with the current highest need.

The projects in the Recommended FY25 – FY34 CIP have also been identified and prioritized based on their relevancy to the Strategic Roadmap. The CIP, by its nature, predominantly supports the Invest in Infrastructure Priority, but it also includes a number of projects which support the Confront Climate Crisis & Champion Environmental Justice, Enhance Community Safety & Quality of Life, Grow the Economy, and Strengthen Organizational Health Priorities.

The projects ultimately identified for inclusion in the CIP are designed to meet the requirements of the City’s General Plan, specific plans, and master plans. The capital project funding requests are then submitted for evaluation to an internal capital projects review committee. Once the review committee’s feedback is incorporated, the Recommended Ten- Year CIP is compiled and presented to the Planning Commission for determination of consistency with the General Plan, as well as the Council Infrastructure & Airport Committee for review and input. The public can provide comments at each of these meetings, as well as at the last public hearing, which is tentatively planned to take place on June 4, 2024. It is at this final public hearing that the capital spending plan for the upcoming year will be considered by Council for adoption.

DISCUSSION

The CIP is a planning document intended to guide the City’s capital project expenditures for the upcoming ten-year period. The proposed CIP budget includes approximately $158 million in FY25 and an estimated $1 billion in the next ten years. Given that Hayward is a full- service city, the CIP covers a wide range of projects, which may include street construction and improvements; wastewater, recycled water, storm water, and water system upgrades; groundwater projects; construction of public buildings; airport projects; replacement of major equipment; clean and renewable energy generation; and other miscellaneous projects. As in past years, the document also includes Identified and Unfunded Capital Needs, which currently total $690 million.

Below is a discussion of major projects in each category for which work will begin or continue into FY25. Please note that not all of the projects featured in this report are recommended to receive new FY25 funding.

Livable Neighborhoods Projects

Projects categorized as “Livable Neighborhoods” include street lighting projects, pedestrian traffic signal improvements, parks, buildings, public art and engagement, transportation equity projects, and traffic calming measures, as well as sidewalk and wheelchair ramp improvements throughout the City. Some examples of Livable Neighborhoods Projects in the Recommended FY25 – FY34 CIP include the Campus Drive Improvements, through which the City is implementing pedestrian, bicycle, and traffic calming improvements to address safety concerns and mobility needs in the

0.78 mile-stretch of Campus Drive between 2nd Street and Hayward Boulevard.

Another ongoing Livable Neighborhoods Project is La Vista Park, the 39-acre destination park located a quarter mile east of the intersection of Tennyson Road and Mission Boulevard in South Hayward. In FY 2022, the California Environmental Quality Act (CEQA) report was updated to include the park expansion area, and staff are currently working with consultants to finalize the design. Construction bid documents are anticipated to be completed by Spring 2024, and construction is planned to commence in late Spring or early Summer 2024.

The Safe Routes for Seniors (SR4S) and Safe Routes to School (SR2S) projects are two additional projects included in the Livable Neighborhoods category. The SR4S Program is a collaborative effort between the City and local senior housing facilities, senior centers, and community-based organizations. Through these partnerships, the City is working to identify areas in Hayward at which to focus accessibility and walkability improvements.

The City's first SR4S effort was completed in four downtown Hayward intersections, including Foothill Blvd/Hazel Ave-City Center Dr, Montgomery Ave/A St, Montgomery Ave/B St, and Watkins Ave/D St. Improvements include increased pedestrian crossing times, installation of high- visibility ADA ramps, repositioning of cross walks and pedestrian push buttons to align with ADA improvements, and widening medians for pedestrian refuge, and more. Future SR4S intersection improvements will be evaluated and then selected within the Tennyson Rd corridor in FY25.

The City completed its first SR2S project in late FY 2023 near Cesar Chavez Middle School, which included installation of curb and median extensions, advanced stop and yield marking, yellow high-visibility crosswalks, bike lanes, updated push buttons and more. The goal was to provide safer access and better visibility for pedestrians and bicyclists, especially for the students walking to and from the middle school. The project went to bid in May 2023, construction began in August 2023, and the project was closed out in December 2023.

Palma Ceia Elementary participated in a school safety assessment as part of the Alameda County’s Safe Routes to Schools Program in April 2022. The safety assessment resulted in infrastructure recommendations to improve safety and accessibility in the vicinity of the school. These improvements include traffic calming, curb extensions, and increased visibility of crosswalks. The design for this project is expected to be completed in late 2024 and is included as part of the scope of the Safe Routes to School Implementation Project.

Road and Streets Projects

Projects in the “Road and Streets” category range from curb and gutter repair to major gateway corridor improvements and are primarily funded through non-discretionary funding including

Measures B (Fund 215 and 216) and Measure BB (Fund 212, 213, and 219), Gas Tax (Fund 210), Vehicle Registration Fee (VRF) (Fund 218), Road 238 Corridor Improvement (Fund 410), Streets Improvement (Fund 450), Transportation System Improvement (Fund 460), and grants such as LATIP and the Alameda County Transportation Commission (Alameda CTC) funds.

A key project in this category is Phase 3 of the Mission Boulevard Corridor Improvement Project, located from A Street to the northern City limit at Rose Street. Phase 3 is the last phase of the three-phase Mission Blvd Corridor Improvement Project. Improvements include undergrounding of overhead utilities, electrical service conversions of private properties, construction of bicycle cycle track, sidewalk, curb and gutter, rehabilitation of pavement, installation of traffic signals and streetlights, installation of traffic striping, pavement marking and signage, improvements to storm drains systems, installation of irrigation system and landscaping, as well as City of Hayward monument signs. The construction bids received in 2021 to implement this project were significantly higher than expected and subsequently rejected, delaying the project timeline. The call for bids was reinitiated in March 2023. Construction began in July 2023 and is anticipated to be completed at the end of 2024.

Another project in this category is the Main Street Complete Streets project. This project will improve pedestrian and bicycle facilities along Main Street to create a safe and friendly environment for multimodal travel in the Downtown Hayward Priority Development Area.

Proposed improvements include reducing the roadway from four to two lanes and one center lane for left turns and temporary areas for delivery truck loading and unloading, adding bulb-outs (curb extensions) and bike lanes, improving ADA access with new curb ramps, replacing existing sidewalk, adding decorative streetlights, creating on-street parking opportunities that provide door zone protection for bicyclists, resurfacing and restriping roadways, and creating an attractive, sustainable landscaping buffer along sidewalks. Construction for this project will begin in June 2024 and completion is anticipated in Summer 2025.

Pavement Rehabilitation

Pavement Rehabilitation projects are a subsection of the Road and Streets projects which are typically discussed separately because they represent a relatively large part of the annual CIP.

Approximately $13.1 million in Pavement Rehabilitation programming is recommended for FY25.

Street selection for pavement rehabilitation projects is based on several criteria. First, the Pavement Management Program (PMP) is used to evaluate current roadway conditions and future condition predictions. The PMP provides a logical and efficient method for identifying street rehabilitation needs and determining a path for implementation. Staff also refers to the Metropolitan Transportation Commission’s (MTC) guidelines, Maintenance Services staff’s reports on streets in need of repair, especially after a severe rainy season, and public requests for street rehabilitation. The PMP is updated every two years and is a prerequisite for certain funding sources. The industry standard practice recommended by MTC is that a minimum of 15% of funding be spent on preventive maintenance and a maximum of 85% on pavement rehabilitation.

The City improves on this standard with a minimum of 20% spent on preventive maintenance and 80% on pavement rehabilitation. Additionally, in 2014, Council approved the Economic Development Strategic Plan, which recommended additional improvements be made to streets in the Industrial area. Approximately 15% to 20% of the overall paving budget is allocated to

improvements in that area. Staff also has an internal policy to allocate at least 10% of the overall paving budget to roads with a Pavement Conditions Index (PCI)3 of less than 30.

The table below shows the City’s historical PCI for the last ten years. It is measured on a scale of 0 to 100, where 100 means a newly paved road.

Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Pavement
Conditions
Index
(PCI)
67 70 71 70 70 69 70 67 70 73

Municipal Facility Improvements

The “Municipal Facility Improvements” category includes projects that involve improvements to existing municipal buildings and construction of new municipal buildings. One major project included in this category is the Fire Station No. 6 & Fire Training Center Project. The new training center was constructed at the Hayward Executive Airport as a campus with classrooms, offices, a training tower, a burn building, and other facilities for urban search and rescue, as well as a new Fire Station No. 6. Construction began in August 2020 and was completed in Fall 2023. Remaining punch list items are expected to be completed by Summer 2024.

Another project to highlight would be the Hayward Police Department (HPD) Locker Rooms Design and Construction project. HPD needs a new locker room for separated use by both male and female police officers, other employees, and visitors. The existing facilities that are housed inside the HPD building are inadequate in terms of both space and amenities. The HPD Locker Room Projects will involve designing and constructing a new building adjacent to the existing HPD building to accommodate necessary improvements.

Sewer System Projects

The “Sewer Systems” category includes projects which are Enterprise Fund-supported, and which are related to the improvement of our sewer system, water re-use efforts, and Water Resource Recovery Facility (WRRF), formerly known as Water Pollution Control Facility (WPCF)

The City’s sewer line replacement projects are examples of key projects in this category. They typically involve the replacement of pipelines that are showing signs of age, or the upsizing of undersized mains to increase their conveyance capacity to handle current and future flows. With an ambitious goal of replacing an average of 2.5 miles of sewer mains annually, the proposed CIP recommends $7 million in funding for the FY25 Sewer Line Replacement Program.

Other projects in this category include those related to the WRRF Phase II Improvements, which have been established following the recent development of a Facilities Plan Update, which is intended to guide the plant’s infrastructure and technology needs for the next twenty years. The Phase II Facilities Plan addresses future regulatory requirements restricting discharge of nutrients

3 https://mtc.ca.gov/operations/programs-projects/streets-roads-arterials/pavement-condition-index

to the Bay. Although the San Francisco Bay has not been adversely impacted by nutrient loading, discharge of nutrients is a growing concern and, as a result, recent requirements have been developed regulating their discharge into the Bay.

The final plan update was completed in June 2020 and in Spring 2022, Staff began working with a consultant for the design work to implement the identified improvements. In addition to the design and construction of the Phase II WRRF Upgrade, the project includes a new administration building and laboratory, as well as other related improvement needs. The total cost of the project, including the design and construction of the improvements, is currently estimated to cost $534 million. Staff is in the process of applying for a USEPA Water Infrastructure Finance and Innovation Act (WIFIA) loan, and plan to apply for the State Revolving Fund (SRF) and selling municipal bonds to help finance the project.

Recycled Water Project

The Recycled Water Projects are also included in the Sewer Systems category. These projects are intended to improve the City’s overall water supply reliability and conserve drinking water supplies through the delivery of tertiary treated recycled water to sites near the WRRF for landscape irrigation and industrial uses. Construction of the storage tank, pump station, and distribution pipelines for the system was completed in FY 2020. Construction of the treatment facility was completed in Summer 2020, and recycled water deliveries to the first phase of customers began in March 2022. Staff is currently developing a Master Plan to guide design and construction efforts for Phase II of the Recycled Water Program. Phase II will involve increasing the recycled water customer base, which will require designing and constructing an expanded treatment facility to meet the increased demand.

Water Systems Projects

“Water System Projects” are Enterprise Fund-supported and are related to the improvement of our water system, as well as projects which promote water conservation. One key program in this category is the Cast Iron Water Pipeline Replacement Program. Over the next ten years, the City will annually replace existing cast iron and asbestos cement pipes that are either reaching the end of their practical useful life, as evidenced by the frequency of the main and service connection breaks and leaks, or they are hydraulically undersized. The Recommended CIP includes $500,000 in annual programming to support this effort.

The FY25 Annual Line Replacement Program is another key Water Systems project, which involves the replacement of existing water mains to provide adequate capacity for fire flow and to maintain the operability of the water distribution system. Water mains are selected for a variety of reasons including having exceeded service life, frequency of breaks, and/or upgrades needed for supply reliability. With a goal of replacing an average of two miles of water pipeline annually, the proposed CIP includes $6.5 million in funding for the FY25 Annual Line Replacement Program.

Fleet Management

The “Fleet Management” category is comprised of projects involving the replacement of fleet units in various departments, divisions, and work groups. Fleet purchases benefitting the Fire and Police departments are predominantly funded by transfers from the General Fund, while fleet

purchases benefitting the Airport, Stormwater, Sewer, and Water divisions are predominantly supported by Enterprise funding. Approximately $3.5 million in FY 2025 Fleet Management category projects are included in the proposed CIP, and involve projects supporting General Fund fleet replacement efforts, Enterprise Fund-supported fleet replacement efforts, and Electric Vehicle Infrastructure efforts.

The City maintains a fleet of approximately 450 vehicles and equipment units, and the useful life of these fleet units is maximized and managed via the 10 Year Fleet Capital Replacement Plan. The plan identifies replacement timelines based on age, mileage, maintenance, and safety. When it comes time to retire a unit, carbon emissions are a key consideration. This is in alignment with the City's Strategic Roadmap "Confront Climate Crisis & Champion Environmental Justice" Priority Project to transition 15% of total City fleet to EV/hybrid models.

Following a successful pilot program in FY21, Fleet Management adopted a new standard for Hayward Police Patrol Vehicles in which all replacement purchases will be hybrid-powered models. In FY 2022, a total of ten hybrid patrol cars were ordered to replace vehicles that have reached the end of their useful life, and an additional nine were ordered in FY 2023. Once received and placed into service, the fleet vehicle matrix will consist of 18% EV/hybrid units.

The Citywide EV Charging Projects are another key group of projects in this category. A recent report by Ava Community Energy (Ava), formerly known as East Bay Community Energy (EBCE), provided an analysis of the charging infrastructure that will be needed to electrify the City’s 129 light duty, non-emergency, fleet vehicles. The report concluded the City will need three Level 1 chargers (15-20 Amps each), fifty-four Level 2 chargers (40 Amps each) and four Direct Current Fast Chargers (80 Amps or more) installed across eleven City facilities. Staff is currently preparing an assessment of charging needs for City employees. Installation of charging infrastructure for the City’s fleet and employees will begin after the assessment is completed.

Staff is also working with Ava to install one to three fast charging hubs for electric vehicle charging. Hubs would serve the general public, but would be sited to also serve residents of multi- family properties, many of which are older buildings that lack the infrastructure needed to support EV charging. Implementation of these projects will be contingent on receiving funding through the Federal Infrastructure Investment and Jobs Act, which staff plan to apply for.

Equipment and Software

The “Equipment and Software” category is predominantly comprised of equipment-related purchases supporting the Fire, Police, Maintenance Services, Public Works & Utilities, and Information Technology Departments, such as the purchase of Fire Department radios, purchase of fleet cameras, and replacement of aging fiber optic lines between City facilities. The recommended FY25 CIP includes programming of approximately $5.6 million in this category.

Airport

This category encompasses all projects related to the improvement of the Hayward Executive Airport (HWD), the City’s self-supporting general aviation reliever airport which encompasses nearly 500 acres. One key project in this category is the Sulphur Creek Safety Enhancement –

Design and Construction Project, which involves the installation of box culvert to place portions of Sulphur Creek underground adjacent to airport runways. These areas were identified by the local Runway Safety Action Team as a safety hazard. The project is designed to eliminate open ditches and create a flat surface near the runways. This will prevent damage to aircraft that veer off the runway pavement. Implementation of this project has been delayed due to the issues related to inter-agency agreement related to location of a suitable environmental mitigation site, and the project is anticipated to begin after Fiscal Year 2025. The project includes a total budget of $8.3 million, which is being provided by the Federal Aviation Administration (FAA), Caltrans Division of Aeronautics, and the City’s Airport Enterprise fund.

Miscellaneous

The “Miscellaneous” category includes projects which do not neatly fit into the other categories.

Projects include the Comprehensive General Plan Update, Property Acquisition Management, Route 238 Property Projects, and Parcel Group Projects. The Parcel Group projects, which are currently budgeted at $585,000 combined in FY25, are used to facilitate the new cohesive development of former Caltrans 238 property parcels with the goals of eliminating blight, creating public benefits for the community, and generating excess land value to the City.

Identified and Unfunded Capital Needs

The last section of the Recommended FY25 – FY34 CIP is the Identified and Unfunded Capital Needs section. This list was last significantly modified for the FY 2016 CIP to remove projects that were funded with Measure C and Measure BB funds, like improvements to Fire Stations 1-6, construction of a new 21st Century Library and Community Learning Center, and $1 million per year for paving improvements. A significant reduction occurred with street and transportation- related projects, due to the passage of Measure C, Measure BB, and the Road Repair and Accountability Act (RRAA) (SB1).

While the approval of Measure C allowed the City to address many critical facility needs (e.g., the new Library, upgrades to Fire Stations, and the new Fire Training Center), significant needs still exist. The facility update to the City’s Corporation Yard (Corp Yard) is one such capital need that remains unfunded. The Corp Yard is comprised of six buildings on Soto Road which were originally constructed in the early 1980s and are in need of major improvements. The necessary improvements to the Corp Yard were estimated to amount to more than $66 million. The FY25 CIP included a “Corporation Needs Assessment” Project, which is funding the development of a revised assessment to determine the current improvement needs and update costs.

Another significant need included in the Unfunded Capital Needs list as part of the Recommended CIP is the South Hayward Youth and Family Center, which currently has an unfunded need of an estimated $25,000,000 for the future phases of the project.

Unfunded Capital Needs are generally broken down into the following categories:

Information Technology: $1,100,000
Street Improvement: $11,500,000
Airport: $43,000,000

Sewer System: $56,000,000
Alternate Modes: $59,000,000
Interchange: $74,500,000
Pavement Maintenance: $142,000,000
Facilities and Improvement: $303,000,000
Total: $690,100,000

It is important to reiterate that this list identifies critical needs that have, as of now, no identified funding sources. The number of projects will continue to grow over time, as will the amounts needed to fund these extremely important upgrades and repairs to infrastructure and equipment.

Proposed changes to the published Recommended FY25 – FY34 CIP

Transportation System Management Improvement Fund 460 – In the weeks following publication of the Recommended CIP, staff have worked to continue identify opportunities to reduce the CIP’s reliance on transfers from the General Fund. One such opportunity was changing the transfer of $1,000,000 from the General Fund and proposing the transfer to come from Measure C (Fund 101). This will reduce the impact to the General Fund by $1 million. Additionally, Staff are proposing to remove Project 06939, Tennyson Neighborhood Improvement Project, in the amount of $1 million in FY25 and FY26. Staff originally applied for the $800,000 grant with a $200,000 matching contribution for FY25 and FY26. The City was informed that the grant was denied in April 2024 and staff will continue to seek and apply for future grant opportunities to fund this project.

Fleet Replacement (General Fund) Fund 736 – Staff have also identified three proposed changes to Fund 736 to further reduce the impact on General Fund. The Fire Fleet Replacement, General Fund Fleet Replacement and Police Fleet Replacement project budgets are proposed to be reduced by $1,651,000 due to the suppliers delay in several vehicle purchases. This reduces the fleet replacement capital fees from $3.1 million to $1.45 million. If authorized by Council, these updates will result in a net reduction of $1,651,000 to the Fund’s impact on the General Fund, and the fleet capital replacement fees will be reduced to $1,450,000.

ECONOMIC IMPACT

The direct economic impact of these projects is not quantifiable. However, maintaining and improving the City’s infrastructure, fleet, and equipment will have an unquestionable impact on maintaining and improving economic health and vitality of the City. It is also important to note that capital projects are identified and prioritized with an emphasis on eliminating geographic inequities in the distribution of City services and infrastructure. Highest priority is given to areas in the community which have experienced a disproportionate level of improvements in past years, as well as those communities with the current highest need.

FISCAL IMPACT

The capital budget for FY 2025 totals approximately $158 million, with a total of approximately $1 billion tentatively programmed for the entire ten-year period from FY 2025 through FY 2034. An additional $690 million of unfunded needs have been identified for the same period.

Four of the twenty-three CIP funds rely on transfers from the General Fund for project expenses.

The following table reflects the proposed General Fund transfers to these four funds when compared to FY 2024.

CIP Fund FY 2024 GF
Transfer
FY 2025 GF
Transfer
Increase
/(Decrease)
from FY 2024
405/Capital Projects (General) $2,231,630 $500,000 ($1,731,630) 460/Transportation System
Improvement $500,000 $0* ($500,000)
726/Facilities Management Capital $360,000 $360,000 $0
731/Information Technology Capital $300,000 $1,248,000 $948,000 Total Cost to General Fund $3,391,630 $2,108,000 ($1,283,630)

*Note: The proposed FY25 General Fund transfer in Fund 460 would be reduced from $1 million to $0 as Staff is proposing the transfer to come from Measure C (Fund 101). This will reduce the General Fund impact by $1 million.

Four of the CIP funds are also Internal Service Funds, meaning they use Internal Service Fees (ISF) to finance project expenses. Internal Service Fees are collected when one City department provides a service to another, drawing those service expenses from the operating budget of the benefiting department. Although some departments are funded by Enterprise funds, many are part of the General Fund. The Internal Service Fees paid by General Fund-supported departments have an impact on the General Fund. The total proposed Internal Service Fees for FY 2025 are shown below.

CIP Fund
FY 2024 ISF

FY 2025 ISF
Increase
/(Decrease)
from FY 2024
726/Facilities Management Capital $350,000 $450,000 $100,000 731/Information Technology Capital $810,000 $850,000 $40,000 736/Fleet Management Capital (General
Fund) $4,000,000 $1,450,000* ($2,550,000)
737/Fleet Replacement (Enterprise
Funds) $156,000 $156,000 $0
Total ISF $5,316,000 $2,906,000 ($2,410,000)

*Note: The Fire Fleet Replacement, General Fund Fleet Replacement and Police Fleet Replacement projects are proposed to be reduced by $1,651,000. This project budget reduction further reduces the fleet replacement capital fees from $3.1 million to $1.45 million. If authorized for implementation by Council, these updates will result in a net reduction of $1,651,000 to the Fund’s impact on the Fleet Replacement General Fund and the fleet capital replacement fees will be reduced to $1,450,000.

As displayed in the tables above, there is an overall decrease of $1,283,630 in proposed FY 2025 General Fund transfers when compared to FY 2024, and a decrease of $2,410,000 in

proposed FY 2025 ISF. It is important to note that some of the ISF referenced above have General Fund impacts, as many Departments paying ISF are funded by the General Fund. Fund 736 for General Fund Fleet Replacement, for instance, supports fleet replacement efforts for the Fire Department, Police Department, and other General Fund-funded departments, and therefore has a direct General Fund Impact.

Project Cost by CIP Category

The proposed project costs by CIP category are as follows:

Water System
Projects $43,808,638
Sewer System
Projects $39,262,508
Livable
Neighborhoods
$34,302,028 Pavement
Rehabilitation
Projects $14,328,000
Airport Projects
$7,692,000
Equipment &
Software $5,635,208
Fleet Management
$3,514,000
Municipal Facilities
Improvements
$4,235,000
Road & Street
Projects $4,167,000
Misc. Projects
$1,563,000
Project Category FY 2024
Adopted
FY 2025
Recommended
Increase/
(Decrease)
from FY 2024
CIP
Water System Projects $18,527,000 $43,808,638 $25,281,638 Sewer System Projects $28,135,390 $39,262,508 $11,127,118 Livable Neighborhoods $21,789,265 $34,302,028 $12,512,763 Pavement Rehabilitation
Projects $16,539,000 $14,328,000 ($2,211,000)
Airport Projects $1,015,000 $7,692,000 $6,677,000
Equipment & Software $8,040,000 $5,635,208 ($2,404,792) Fleet Management $1,286,000 $3,514,000 $2,228,000
Municipal Facilities
Improvements $8,727,000 $4,235,000 ($4,492,000)
Road & Street Projects $6,789,000 $4,167,000 ($2,622,000) Misc. Projects $4,742,000 $1,563,000 ($3,179,000)
Total Capital
Improvement Projects $115,589,655 $158,507,382 $42,917,727

Project Cost by CIP Fund
The proposed project costs in each CIP Fund are as follows:

CIP Fund FY 2025
Recommended
(210) Special Gas Tax $3,986,970
(211) RRAA (SB1) $4,000,000
(212) Measure BB - Local Transportation $9,267,000
(213) Measure BB - Ped & Bike $1,895,000
(215) Measure B - Local Transportation $39,000
(216) Measure B - Ped & Bike $53,000
(218) Vehicle Registration Fund $840,000
(219) Measure BB - Paratransit $1,000,000
(405) Capital Projects $24,524,726
(406) Measure C Capital $2,882,208
(410) Rte. 238 Corridor Improvement $4,157,000
(411) Rte. 238 Settlement Admin $1,038,000
(450) Street System Improvements $3,436,000
(460) Transportation System Improvements $3,885,332
(603) Water Replacement $27,203,765
(604) Water Improvement $15,994,873
(611) Sewer Replacement $12,391,500
(612) Sewer Improvement $28,481,008
(621) Airport Capital $7,692,000
(726) Facilities Capital $1,325,000
(731) Information Tech Capital $1,890,000
(736) Fleet Management Capital $1,625,000
(737) Fleet Management Enterprise $900,000
Total $158,507,382

STRATEGIC ROADMAP

The Strategic Roadmap adopted in 2023 are at the forefront of the City’s capital project planning efforts, and each CIP project is evaluated for consistency with the City's Strategic Priorities.

The Recommended CIP Projects touch the Confront Climate Crisis & Champion Environmental Justice, Enhance Community Safety & Quality of Life, Grow the Economy, and Strengthen Organizational Health Priorities, but predominantly support the Invest in Infrastructure Priority.

Social Equity

Consideration of social equity has been an important element of selecting projects, such as roadway improvements, sidewalk improvements, traffic calming, complete streets, and landscaping.

SUSTAINABILITY FEATURES

While the proposed projects are aligned with and advance the Council’s Sustainability goals and policies, the action taken for this agenda report will not result in a physical development, purchase or service, or a new policy or legislation. Any physical work will depend upon a future Council action. Sustainability features for individual CIP projects are listed in each staff report.

PUBLIC CONTACT

The public has the opportunity to review and comment on the CIP at this evening’s Council Work Session and will again at the Council Public Adoption Hearing, which has been tentatively scheduled for June 4, 2024.

Water System
$43,198,638
Sewer System
$40,872,508
Fund 405 Capital
Projects $24,524,726
Measure B/BB
$12,254,000
Gas Tax/RRAA/VRF
$8,826,970
Street/Transportatio
n System $7,321,332
Airport $7,692,000
Route 238
$5,195,000
Fleet Management
$2,525,000
Measure C
$2,882,208
Information Technology
$1,890,000
Facilities $1,325,000

Staff presented the Recommended FY25 – FY34 CIP to the Planning Commission at their April 11, 20244 meeting, at which the Commission unanimously found that the CIP was consistent with the Hayward 2040 General Plan. A notice advising residents about the Planning Commission Public Hearing on the CIP was published on March 29, 2024 in The Daily Review newspaper. On April 24, 20245, staff presented the Recommended FY25 – FY34 CIP to the CIAC for review and input at which the Committee recommended the CIP’s adoption to Council. Another Public Notice will be published in the Daily Review newspaper at least ten days in advance of the Council Public Adoption Hearing on June 4. A copy of the Recommended CIP is made available online at www.hayward-ca.gov/CIP, and printed copies are available at the Public Works & Utilities’ Department office, at the City Clerk’s office, and at both Libraries. Individual projects receive Council approval and public input as appropriate.

A notice advising residents about the Council Public Hearing on the CIP will be published in the Daily Review newspaper at least ten days in advance.

NEXT STEPS

Once Council has reviewed and offered comments on the Recommended CIP, the appropriate updates will be made. The Council Public Hearing for the adoption of the CIP budget is currently scheduled to take place on June 4, 2024.

Prepared by: Michael Wolny, Management Analyst

Recommended by: Alex Ameri, Director of Public Works

Approved by:

_____________________________________________
Dustin Claussen, Interim City Manager

4 https://hayward.legistar.com/MeetingDetail.aspx?ID=1189779&GUID=5E483A40-F17D-450E-B6A5-43F99B012E09&Options=info|&Search= 5 https://hayward.legistar.com/MeetingDetail.aspx?ID=1192536&GUID=69FC729E-042C-47F0-AC83-1BE98B6F81D1&Options=info|&Search=

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: LB 24-013
DATE: May 7, 2024
TO: Mayor and City Council
FROM: Director of Finance & Director of Public Works

SUBJECT
Water and Wastewater Enterprise Revenue Bond Law: Introduction of an Ordinance Adding Article 22 to the Chapter 8 of the Hayward Municipal Code regarding Water and Wastewater Enterprise Revenue Bond Law; Finding that this Action is Subject to CEQA Common Sense Exemption

RECOMMENDATION
That the Council introduces the attached Ordinance (Attachment II) adding Article 22, Chapter 8 to the Hayward Municipal Code regarding Water and Wastewater Enterprise Revenue Bond Law.

SUMMARY
The purpose of the proposed addition of Article 22, Chapter 8 to the Hayward Municipal Code regarding Water and Wastewater Enterprise Revenue Bond Law is to provide the procedures to be followed by the City with respect to the authorization, issuance and sale of bonds and other obligations for the purpose of financing capital improvement costs related to the water enterprise of the City and the wastewater enterprise of the City.

ATTACHMENTS
Attachment I Staff Report
Attachment II Ordinance
CITY OF HAYWARD Printed on 5/3/2024Page 1 of 1
powered by Legistar™

DATE: May 7, 2024

TO: Mayor and City Council

FROM: Director of Finance & Director of Public Works

SUBJECT: Introduction of an Ordinance Adding Article 22 to the Chapter 8 of the Hayward Municipal Code regarding Water and Wastewater Enterprise Revenue Bond Law ; Finding that this Action is Subject to CEQA Common Sense Exemption

RECOMMENDATION

That the Council introduces the attached Ordinance (Attachment II) adding Article 22, Chapter 8 to the Hayward Municipal Code regarding Water and Wastewater Enterprise Revenue Bond Law.

SUMMARY

The purpose of the proposed addition of Article 22, Chapter 8 to the Hayward Municipal Code regarding Water and Wastewater Enterprise Revenue Bond Law is to provide the procedures to be followed by the City with respect to the authorization, issuance and sale of bonds and other obligations for the purpose of financing capital improvement costs related to the water enterprise of the City and the wastewater enterprise of the City.

BACKGROUND

Article XI, Section 5 of the California Constitution states if a city adopts a charter, it is authorized to “make and enforce all ordinances and regulations in respect to municipal affairs.” This has been interpreted to mean a charter city wishing to exercise its municipal affairs powers under the charter must do so by enacting an ordinance. In the case of the City issuing bonds, it means the ordinance approval process is necessary for every bond authorization.

DISCUSSION

The City’s Bond Counsel, Jones Hall, has recommended the City Council adopt an ordinance that authorizes future bond issues for Water and Wastewater Enterprises, and provides that individual bond issues be approved by a resolution of the City Council. This approach meets the California Constitution’s requirements without delaying individual bond issues with the time-consuming process of adopting an ordinance for each and every one.

The ordinance applies to water and wastewater systems the Department of Public Works & Utilities to finance capital improvements. The ordinance defines the procedures to follow with respect to the authorization, issuance and sale of bonds. All of these procedures are in keeping with the existing City of Hayward Debt Issuance and Management Policy that establishes objectives, parameters, and guidelines for responsibly issuing and administering the City’s debt.

Council will still be required to approve a resolution prior to any debt issuance.

FISCAL IMPACT

There is not an anticipated significant fiscal impact in completing this action.

STRATEGIC ROADMAP

This is a routine operational item; it is not linked to a specific strategic roadmap item.

NEXT STEPS

If Council introduces the ordinance, it will be brought back for adoption at a subsequent City Council meeting. The ordinance will take effect 30 days after adoption by Council.

Prepared by: Elli Lo, Senior Management Analyst

Recommended by: Alex Ameri, Director of Public Works
Nicole Gonzales, Director of Finance

Approved by:

_________________________________________
Dustin Claussen, Interim City Manager

ATTACHMENT II

ORDINANCE NO. 24-____

ORDINANCE OF THE CITY OF HAYWARD, CALIFORNIA ADDING ARTICLE 22, CHAPTER 8 OF THE HAYWARD MUNICIPAL CODE REGARDING WATER AND

WASTEWATER ENTERPRISE REVENUE BOND LAW

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

SECTION 1. Chapter 8 of the Hayward Municipal Code is added to read as follows:

CHAPTER 8, ARTICLE 22

WATER AND WASTEWATER ENTERPRISE REVENUE BOND LAW

8-22.101 - TITLE.

This Article may be cited as the City of Hayward Water and Wastewater Enterprise Revenue Bond Law.
8-22.102 - PURPOSE AND INTENT.

This Article is enacted by the City Council of the City of Hayward under and pursuant to the powers granted and reserved to the City under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and Section 200 of the Charter of the City.

The purpose and intent of this Article is to provide the procedures to be followed by the City with respect to the authorization, issuance and sale of bonds and other obligations for the purpose of financing capital improvement costs related to the water enterprise of the City and the wastewater enterprise of the City.

The City Council hereby finds that the City’s issuance of bonds to finance capital improvement costs relating to the water system and to the wastewater system is a municipal affair and promotes a necessary and essential public purpose. 8-22.103 - DEFINITIONS.
(a) The following definitions apply in this Article and shall not be construed to define the same terms found in any other section of this Code. As used in this Article, the following terms shall have the meanings set forth below:
(1) “Bonds” means any bonds, notes, loans, interim certificates, debentures, installment purchase agreements, installment sale agreements, leases, or other obligations that are issued or incurred under this Article and are payable from revenues described in the issuing instrument.

ATTACHMENT II

(2) “Capital improvement” means (a) any addition, betterment, replacement, renewal, extension, equipping, or improvement of or to the water system or the wastewater system, including the acquisition of land or any interests in land, and (b) any capital costs for the extension, reinforcement, enlargement, or other improvement of a facility or property, or for the acquisition of an interest in a facility or property, that is determined by the City to be necessary or convenient in connection with use of the water system or the wastewater system.
(3) “Capital improvement costs” means all costs and expenses the City pays or incurs in connection with planning, designing, acquiring, constructing, installing, furnishing, equipping, and financing a capital improvement; placing a capital improvement in operation; disposing of a capital improvement; and obtaining governmental approvals, certificates, permits, and licenses for a capital improvement. “Capital improvement costs” includes the following:
(A) Reimbursement to the City for any costs and expenses that are included in this definition, are paid by the City and have not previously been reimbursed to the City.
(B) Costs of preliminary investigation and development, including the cost of performing or acquiring feasibility and planning studies; the cost of securing regulatory approvals; the cost of acquiring land and land rights; fees for engineering and contractor services; the costs of labor, materials, equipment, utility services, and supplies; and legal fees and financing expenses. (C) Working capital and working-capital reserves in such amounts as the City determines to be appropriate.
(D) Interest accruing in whole or in part on bonds before and during construction of a capital improvement or any portion of a capital improvement, and interest accruing for such additional time as the City determines. (E) Deposits from the proceeds of bonds in any funds or accounts when the issuing instrument requires such deposits.
(F) The payment of principal, purchase price, premium, and interest of any indebtedness, the proceeds of which were applied to capital improvement costs. (G) Training and testing costs that are properly allocable to acquiring or constructing a capital improvement or placing it in operation. (H) All costs of insurance that is in effect when a capital improvement is constructed and placed in operation.

ATTACHMENT II

(I) Amounts due the United States of America as rebate of investment earnings on the proceeds of bonds or as penalties in lieu of rebate. (J) Amounts payable for capital costs of expanding, reinforcing, enlarging, or otherwise improving facilities the City determines to be necessary in connection with the use of a capital improvement, and the costs associated with the removal from service of, or reductions in service by, any facilities as a result of the expansion, reinforcement, enlargement or other improvement of such facilities or the construction of a capital improvement.
(K) Costs of issuance of any bonds, including costs of legal, underwriting, feasibility, engineering, and other consultants; costs of City staff; costs of reserve funds; and costs of bond insurance or other credit or liquidity enhancement for the bonds.
(L) Fees and expenses relating to any lending or credit facility or agreement for a capital improvement or any portion of a capital improvement. (M) Any other cost as the City Council may, in its discretion, define as a capital improvement cost in the issuing instrument.
(4) “Director of Finance” means the chief financial officer of the City or any designee of such official.
(5) “Include” and its variants are terms of enlargement rather than of limitation, so that “includes” means “includes but not limited to,” and “including” means “including but not limited to.”
(6) “Issuing instrument” means the resolution of the City Council adopted under this Article and any indenture, trust agreement, loan agreement, lease, installment- purchase agreement, revolving-credit agreement, credit or liquidity agreement, assignment agreement, or other instrument or agreement under which the City issues bonds for the water system or the wastewater system as described in this Article. (7) “Revenues” means all income, rents, rates, fees, charges, and other moneys that the City derives from the water system or the wastewater system and that the City Council may, in its discretion, designate as “revenues” in the issuing instrument. At the discretion of the City Council, the revenues that are pledged to the payment of bonds may be net of the costs of operating and maintaining the water system or the wastewater system.
(8) “Wastewater system” means the system owned or operated by the City for the collection, treatment, disposal or reuse of wastewater, including sewage treatment

ATTACHMENT II

plants, intercepting and collecting sewers, outfall sewers, force mains, pumping stations, ejector stations, oxidation ponds, pipes, valves, machinery and all other appurtenances necessary, useful or convenient for the collection, treatment, purification, reclamation or disposal of sewage, and any necessary lands, rights-of- way and other real or personal property useful in connection therewith. (9) “Water system” means the water treatment, production, storage and distribution system owned or operated by the City, including but not limited to all facilities, properties and improvements at any time owned or operated by the City for the collection, treatment and supply of water within the service area of such system, and any necessary lands, rights, entitlements and other property useful in connection therewith, together with all extensions thereof and improvements thereto hereafter acquired, constructed or installed by the City.
(b) Terms not defined in this section shall be interpreted to give this Article its most reasonable meaning and application, consistent with applicable State and federal law. 8-22.104 - GENERAL POWERS.

The City is authorized and empowered to do the following:
(a) Issue bonds for the purposes of financing capital improvement costs, refunding outstanding bonds, and paying all costs incurred in connection with bonds. (b) Establish the terms for financings undertaken in accordance with this Article. (c) Employ or contract for such legal, financial advisory, underwriting, feasibility, engineering, and other consultant services the City Council determines to be necessary for the issuance and sale of bonds.
(d) Do all things necessary or convenient to carry out the purposes of this Article. 8-22.105 - AUTHORIZATION AND TERMS OF BONDS.

The City Council may adopt a resolution authorizing the issuance of bonds in accordance with this Article. Every issue of bonds shall be payable from revenues of the water system or the wastewater system for which capital improvement costs are being financed. The resolution that authorizes the issuance of bonds and the issuing instrument may prescribe any or all of the following for the bonds:
(1) The form of the bonds, which may be issued as serial bonds, term bonds, or installment bonds, or any combination thereof.

ATTACHMENT II

(2) The date or dates to be borne by the bonds.
(3) The date or dates of maturity of the bonds.
(4) The interest to be borne by the bonds, which may be taxable or tax exempt, fixed or variable, and which may be paid on a current-interest-rate basis, a capital- appreciation basis or any combination thereof.
(5) The date or dates that interest on the bonds will be payable. (6) The denominations, form, and registration privileges of the bonds. (7) The manner of execution of the bonds.
(8) The place or places the bonds are payable.
(9) The terms of redemption of the bonds.
(10) Any other terms and conditions as the City may deem necessary or advisable.

Notwithstanding the foregoing provisions of this section, at the discretion of the City Council, any bonds issued under this Article may be secured or evidenced by an issuing instrument in the form of an indenture or a trust agreement between the City and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company. An issuing instrument may contain any lawful provisions the City Council determines to be reasonable and proper.
8-22.106 - NO ELECTION.

No election shall be required for the issuance and sale of the revenue bonds under this Article.
8-22.107 - BOND INSURANCE.

The director of finance may obtain bond insurance or other credit enhancement or liquidity support for the bonds and may approve the entering into by the City of any credit agreement, reimbursement agreement, standby bond-purchase agreement, or similar agreement with any person or entity. Such an agreement must contain the terms of the credit, reimbursement, liquidity support, interest rate, and security, and any other terms the director of finance deems necessary or appropriate.

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8-22.108 - PERSONAL LIABILITY.

Neither the members of the City Council; nor the City’s officers, employees, and agents; nor any person executing bonds will be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance of the bonds. 8-22.109 - LIMITED LIABILITY.

The bonds issued under this Article shall not constitute or evidence a lien or charge on the general revenues of the City, and shall constitute and evidence an obligation of the City that is payable only from the revenues of the water system or the wastewater system for which capital improvement costs are being financed, and the face of each bond shall contain a legend to this effect.
8-22.110 - REFUNDING BONDS.

The City Council may issue bonds to refund outstanding bonds. Such a refunding includes payment of the principal, purchase price, interest, and redemption premiums, if any, of the outstanding bonds. At the discretion of the City Council, based on the director of finance’s recommendation, the proceeds of bonds issued to refund outstanding bonds may be applied to retire the outstanding bonds at maturity, to redeem the outstanding bonds on a redemption date or to purchase the outstanding bonds before maturity, upon such terms as the City Council determines to be appropriate.
8-22.111 - SALE OF THE BONDS.

The bonds may be sold at either a public or private sale, on either a negotiated or competitive basis, and at a price which is at, above, or below the par value of the bonds. The manner of sale of the bonds shall be designated in the resolution of the City Council authorizing the issuance of the bonds.
8-22.112 - LIBERAL CONSTRUCTION.

This Article, being necessary for the health, welfare, and safety of the City and its residents, is to be liberally construed to carry out its purposes. 8-22.113 - COMPLETE, ADDITIONAL, AND ALTERNATIVE METHOD.

This Article provides a complete, additional, and alternative method for doing the things authorized and is to be regarded as supplemental and additional to the powers conferred by other laws. No action or proceeding other than those required by this Article shall be necessary for the valid authorization and issuance of the bonds.

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8-22.114 - VALIDITY OF BONDS.

The validity of any bonds does not depend on, and is not affected in any way by, any proceedings taken by the City for acquisition, construction, or completion of any properties or projects for which the bonds are issued or any agreements made in connection with the acquisition, construction, or operation of those properties. The bonds shall be incontestable and by their issuance and delivery shall conclusively establish the due performance of all conditions precedent to their issue.
8-22.115 - AMENDMENT OF ARTICLE.

This Article may not be amended to have a material, adverse effect upon the rights of the holders of any outstanding bonds without the written consent of the bond holders, except as follows: this Article may be amended at any time if the amendment is needed to cure an ambiguity or to correct or supplement a defective provision; if the City Council finds that the amendment will not materially impair or adversely affect the City’s interests or the interests of any bond holder; or if the amendment will apply solely to bonds issued after its effective date.
8-22.116 - ARTICLE CONTROLLING.

To the extent this Article is inconsistent with any general statute or special act, this Article shall be controlling.
8-22.117 REVENUE BONDS EXCLUDED FROM BONDED INDEBTEDNESS OF CITY.

Revenue bonds issued under this Article shall not be taken into consideration in determining the bonded indebtedness which the City is authorized to incur and shall be excluded from any limitation provided by the Charter or by law on the amount of bonded indebtedness of the City.
8-22.118 - SEVERABILITY.

If any section, subsection, sentence, clause, phrase or word of this Article is for any reason held to be invalid and/or unconstitutional by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Article.

SECTION 2. California Environmental Quality Act (CEQA). The City Council independently finds and determines that this action is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines, as an activity that is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

The general exemption applies in this instance because it can be seen with certainty that there is no possibility that the proposed amendments could have a significant effect on the

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environment, and thus are not subject to CEQA. Thus, it can be seen with certainty that the proposed project would not have a significant effect on the environment.

SECTION 3. If any section, subsection, paragraph or sentence of this Ordinance, or any part thereof, is for any reason found to be unconstitutional, invalid or beyond the authority of the City of Hayward by a court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance.

SECTION 4. This Ordinance shall become effective on the 30th day following the date of its passage and adoption.

INTRODUCED at a regular meeting of the City Council of the City of Hayward, held the ___ day of __________, 2024, by Council Member _______,

ADOPTED at a regular meeting of the City Council of the City of Hayward, held the ___ day of _________, 2024, by the following votes of members of said City Council.

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED:

Mayor of the City of Hayward

DATE:

ATTEST:

City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward