CITY COUNCIL
MEETING
APRIL 1, 2025
PRESENTATIONS
Item #5
WS 25-015
Community
Agency Funding
FY 2025-2026 Community Agency Funding
Recommendations & Consolidated Plan
City Council Work Session
April 1, 2025
Amy Cole-Bloom, Community Services Manager
Emily Hwang, Management Analyst
Hayward Police Department Year-End Report
2 FY 2026-2029 Consolidated Plan
• Framework for identifying housing and community
development needs and priorities through community
engagement
• Guides the City’s federal CDBG entitlement investment decisions for FY26 though FY29
• Priority needs:
• Expand & Improve Public Infrastructure & Facilities
• Preserve, Protect, and Produce Housing Stock
• Public Services & Quality of Life Improvements
• Economic Development
Hayward Police Department Year-End Report
3 Funding Recommendations
4 full funding
3 partial funded
1 not recommended funding
Economic Development
and Infrastructure (CDBG)
Public Services (CDBG)
1 full funding
5 partial funding
1 not recommended funding
Social Services
(General Fund)
2 full funding
19 partial funding
13 not recommended funding
3 full funding
7 partial funding
1 not recommended funding
Arts & Music
(General Fund)
Hayward Police Department Year-End Report
4 Identified Challenges
Unclear priorities
in decision-making
50% of applicants
dedicate over 16
hours to the
funding process
Weekend
interviews are not
preferred
Review processes
lack consistency
and transparency
Hayward Police Department Year-End Report
5 Staff recommended changes to CAF
• Transition to two-year funding cycle
• Establish a separate Arts & Music funding process
• Align decision-making with City Council priorities and community need • Increase decision-making transparency and objectivity through rubric use and publication of scores
Two main goals: 1) Reduce agency burden and 2) increase transparency and objectivity
Hayward Police Department Year-End Report
6 Discussion & Next Steps
Discussion Process Next Steps
1. Public comment
2. Council questions and
discussion
• Funding recommendations
• CAF changes
• General feedback
• Affirmation of funding
priorities
• April 4, 2025 – May 4, 2025: Public
Comment Period
Submit comments to Emily Hwang at
[email protected]
• Tuesday, April 22, 2025:
Public Hearing
• May 15, 2025: FY 2026-2029
Consolidated Plan submission
Item #6
WS 25-016
Water and Recycled
Water
1 City of Hayward
Recommended Water and Recycled Water Rates and
Connection Fees
City Council Work Session
Alex Ameri, Director of Public Works
April 1, 2025
Water Rate Overview
• Pay for purchase and distribution of
water
➢Service Fee - fixed
➢Water Usage Charge – variable, based
on amount of water used
• Financial Drivers
➢Wholesale Water Purchase Costs
➢Capital Replacement Fund
➢Reserve Funding
Proposed Bi-Monthly Service Charges
3 Meter Size Current FY 2025 Proposed FY 2026 Proposed FY 2027 5/8 inch $39.00 $41.34 $43.82
5/8 inch – low income residential $13.66 $14.48 $15.35
3/4 inch $54.41 $57.67 $61.13
3/4 inch – low income residential $19.06 $20.20 $21.41
1 inch $85.25 $90.37 $95.79
1 inch – low income residential $29.85 $31.64 $33.54
1 1/2 inch $162.34 $172.08 $182.40
2 inch $254.85 $270.14 $286.35
3 inch $547.77 $580.64 $615.48
4 inch $979.46 $1,038.23 $1,100.52
6 inch $2,012.41 $2,133.15 $2,261.14
Water Bill Comparisons – Local Agencies
4 $144.71 $143.35 $135.24 $134.64 $128.34 $127.75
$0
$50
$100
$150
$200
EBMUD
(Proposed)
Hayward
(Proposed)
Hayward
(Current)
CCWD
(Current)
ACWD
(Current)
DSRSD
(Current)
Single Family Residential Bill for 12 ccf (Local Non-SFPUC Agencies) $1,045.32 $1,006.85 $986.15
$858.80 $785.34 $674.64
$0
$200
$400
$600
$800
$1,000
$1,200
Hayward
(Proposed)
EBMUD
(Proposed)
Hayward
(Current)
CCWD
(Current)
DSRSD
(Current)
ACWD
(Current)
Commercial Bill for 110 ccf (Local Non-SFPUC Agencies)
Water Bill Comparisons – SFPUC Customers
5 $166.87 $166.84
$143.35 $143.08 $135.24
$0
$50
$100
$150
$200
Redwood City
(Current)
Palo Alto
(Proposed)
Hayward
(Proposed)
Mountain View
(Eff. 07/01/25)
Hayward
(Current)
Single Family Residential Bill for 12 ccf (SFPUC Wholesale Agencies) $1,279.36 $1,272.54
$1,080.70 $1,045.32 $986.15
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Redwood City
(Current)
Palo Alto
(Proposed)
Mountain View
(Eff. 07/01/25)
Hayward
(Proposed)
Hayward
(Current)
Commercial Bill for 110 ccf (SFPUC Wholesale Agencies)
Water Costs for
Everyday Activities
• 1 load of laundry: 24¢
• 8-minute shower: 19¢
• 1 toilet flush: 2¢
• 1 gallon of drinking water: 1.6¢
6 Recycled Water
Overview
• Pay for purchase and distribution
of recycled water
➢Service Fee – fixed
➢Recycled Water Usage Charge –
variable, based on usage
Recycled Water Usage Rate Comparison
8 47%
43%
33%
25%
15% 13%
10% 9%
0%
0%
10%
20%
30%
40%
50%
San Jose Water
Company
Santa Clara Milpitas
(Proposed)
Hayward
(Proposed)
Mountain View
(Eff 2026)
DSRSD Sunnyvale EBMUD
(Proposed)
Redwood City
Difference between Non-Residential/Irrigation Potable
vs. Recycled Water Usage Rate
Bi-Monthly Tiers (ccf) Current Rate/ccf
Oct 1, 2025
Rate/ccf
Oct 1, 2026
Tier 1 1 – 170 ccf $7.44 $7.70 $8.16
Tier 2 >170 ccf $7.44 $9.80 $10.39
Water Facilities Fees
9 Agency Water Facilities Fee
(1" meter)
Palo Alto $6,250
Mountain View $13,941
Redwood City $14,198
Hayward (Current) $17,831
Hayward (Proposed) $19,614
ACWD $24,405
EBMUD (1) $44,649
Contra Costa Water District $60,920
DSRSD (2) $133,687
(1) Water Connection Fee for Region 2, Castro Valley Area (2) DSRSD Water Capacity Fee includes fee for both water distribution services and Zone 7 water treatment services.
Schedule
Work Session: April 1
Proposition 218 notices mailed by: April 18
Public Hearing and adoption of rates: June 17
Effective dates:
› Utility Rates: October 1, 2025 & October 1, 2026
› Connection Fees: September 1, 2025 & September 1, 2026 10 Work Session Format
1. Public comments
2. Council questions & discussion
Item #7
PH 25-013
City Master Fee
Schedule
June 25, 2024
Master Fee & Fine and Bail
Schedule Schedule
Fiscal Year 2025-26
Sharif Etman, Interim Director of Finance
Fee Compliance
All fees have been reviewed to ensure compliance
with:
Prop 26 – November 2010
Assures that taxes are not disguised as fees: taxes must be approved by voters whereas legislative bodies, such as a City Council, can approve fees. Prop 218 – November 1996
Requires voter approval prior to imposition or increase of general taxes, assessments, and certain user fees.
CEQA
Key Factors for Changes in FY 2025-26
A portion of the changes
included in the master fee
schedule for adoption have
been previously approved by
resolution.
Fee increases to achieve full
cost recovery in services
provided.
Fee increases or additions
governed by outside agencies.
Notable Changes
Review of Ministerial Planning Applications (new)
Increase Parking Fees (update)
Add California Vehicle Code (CVC) 22500
(Daylighting Law) (new fee)
Recommendation
That the City Council…
Adopts a resolution approving the Fiscal Year 2025-26 Master Fee Schedule and finds the action exempt from CEQA review.
Discussion & Questions
?
!
Item #8
PH 25-014
Agreement with
Syserco Energy
Solutions
Energy Conservation
& Infrastructure
Improvement Project
•
•
•
•
FUNDING OVERVIEW: PG&E’s
“ON-BILL FINANCING” (OBF)
✓
✓
✓
✓
✓
Item #9
LB 25-010
2025 WIFIA Loan
CITY OF HAYWARD SEWER FUND
2025 WIFIA LOAN
PRESENTATION TO CITY COUNCIL
April 1, 2025
Christian Sprunger
Vice President
2 WIFIA Loan Team
City of Hayward
•WIFIA Borrower
US Environmental Protection Agency (EPA)
•WIFIA Lender
Brown and Caldwell
•Project Engineer
NHA Advisors
•Municipal Advisor
Jones Hall
•Bond Counsel
3 Project Background and Funding Sources
City’s Water Resource Recovery
Facility (“WRRF”) Administration &
Lab Building Project & WRRF Phase
II Projects: $498M cost
Including all capital costs,
contingencies, and financing costs
WIFIA Loan funding for 49% of
project costs
$244,139,000 maximum loan size
(excluding capitalized interest)
First draws currently expected to
occur in Fall 2026
City is also funding 26% of costs
through 2025 Bonds (approved by
Council in February) and ~17% of
costs through a future 2027 Bond
issuance
WIFIA Loan,
49%
2025 Bonds,
26%
2027
Bonds,
17%
Sewer Fund
Cash, 5%
2024 WRDA
Funding, 3%
Expected Sources of
Project Funding
4 2025 Wastewater Bonds – Update
City Council approved sale of up to $135,000,000 in 2025 Wastewater Revenue Bonds (“2025 Bonds”)
Original estimate - True interest cost 4.25-4.50% - Bond principal $125,000,000 Bonds competitively sold on March 11, 2025
11 bidders; lowest bid true interest cost of 3.96% (Mesirow Financial) Annual debt service will be ~$735,000 lower than estimated on 2/25/25 $0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
Hayward 2025 Bonds Annual Debt Service
Estimated vs Final
Estimates provided to Council on 2/25/25
5 WIFIA Loan within Context of the Larger Project Timeline 2018-2020
•Initial Project Planning
Activities
July 2022
•Project Design begins
Spring/Summer
2023
•Initial Funding Sources
Evaluation
Fall 2023
•Initiated WIFIA Letter of
Interest Development
February 2024
•WIFIA Letter of Interest
•EPA Invitation to Apply
for WIFIA Funding
July 2024
•WIFIA Application
Submitted
August 2024
•Design completed on
Administration Building
component
February 2025
•“AA+” Credit Rating
March 2025
•2025 Bonds sold and
closed
April 2025
•WIFIA Loan Closes
May 2025
•Administration Building
project construction
begins
October 2025
•Design completed on
Phase II Project
component
May 2026
•Phase II Project
construction begins
June 2027
•Administration Building
project construction
completed
July 2030
•Phase II Project
construction completedWe are here
6 -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
City of Hayward Wastewater Fund
Aggregate Outstanding and Anticipated Debt Service
Aggregate Outstanding Debt 2025 Bonds 2027 Bonds WIFIA Loan WIFIA Loan Structure & Repayment
Standard sewer
revenue pledge, on
parity with existing
2006 SRF loan and
2025 Bonds
2063 final maturity,
fixed interest rate,
optional prepayment
any time after project
completion
Structured to “wrap
around” other debt
service to target level
aggregate debt service
Less principal paid in
early years – higher
principal payments (FY
2055/56 – 2062/63
7 WIFIA Loan Considerations and Benefits
•Current (March 2025) 35-year rate ~4.60%
•Rate is not a function of the credit ratingInterest Rate •One-time option to reduce the interest rate prior to first loan draw or once the Project exceeds 51% completeInterest Rate Reset
•Interest only accrues on the actual amounts drawnDraw Schedule Loan •Not required to make WIFIA payments during Project construction and can defer payments up to 5 years after completion
•Accrued interest over that period is added to the loan principal; amortized over loan term
Deferred Start of Repayments
•Up to 40-years available: must be paid off within 35 years of project completion, after accounting for 5-year construction windowLong Term •Loan can be structured in a variety of ways, including back-loading as necessary to wrap around scheduled payments on other debtFlexible Structuring •City will have the option to re-structure the WIFIA loan after closing should changes in the financing plan occurRe-Amortization
•City can prepay the WIFIA loan at any time after project completion, with no penaltyEarly Prepayment
8 Recommendation
That City Council adopts a resolution authorizing the execution and delivery of a WIFIA Loan Agreement in the maximum principal amount of $244,139,000 to finance capital improvements to the Wastewater System, including the Water Resources Recovery Facility improvements, and approving related agreements and actions
ANY QUESTIONS?
• City Council Questions
• Public Comments
• City Council Comments and Action