Agenda Packet — Hayward City Council, June 17, 2025 (part 2 of 3)

Government Code Section 53753.5, the notice, protest/ballot, and public hearing requirements of Prop. 218 do not apply in subsequent fiscal years after creation of an assessment district if there is no increase in the amount of the assessment beyond what was previously adopted by the local agency. Since the FY2 6 assessments do not exceed the maximum assessment levels previously approved by the City Council during the formation of the Assessment District, no special noticing or public hearing is required for this item.

NEXT STEPS

If the City Council adopts the attached resolution, the final assessment roll will be prepared and filed with the Alameda County Auditor’s office to be included on the FY 2026 tax roll.

All funds collected through the assessment will be placed in a special fund and can only be used for the purposes stated within this report.

Prepared by: Elli Lo, Senior Management Analyst

Reviewed by: Dave Hung, Acting Deputy Director of Public Works

Recommended by: Alex Ameri, Director of Public Works

Approved by:

____________________________________________
Michael Lawson, J.D.

Acting City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 25-______

Introduced by Council Member _________

A RESOLUTION APPROVING THE FINAL ENGINEER’S REPORT AND ORDERING THE LEVY OF ASSESSMENTS FOR FISCAL YEAR 202 6 FOR THE

OLD HIGHLANDS AREA ROAD IMPROVEMENT ASSESSMENT DISTRICT

WHEREAS, on February 2, 2021, by Resolution No. 21-020, the City Council of the City of Hayward (the “Council”) authorized the levy of assessments for the Old Highlands Area Road Improvement Assessment District (the "Assessment") pursuant to the provisions of California Streets and Highways Code §§ 1160 – 1197 and 1813, known as the Permanent Road Division Law; and

WHEREAS, the purpose of the special assessments against the properties in the Old Highlands area to fund a pavement rehabilitation project in the area, an area map of which is attached to the staff report for this item and incorporated herein; and

WHEREAS, the Council is authorized, pursuant to the authority provided in California Streets and Highways Code §§ 1160 – 1197 and 1813 and Article XIIID of the California Constitution, to levy assessments to finance construction, improvement, and maintenance of the public roadways within the proposed district; and

WHEREAS, the Assessment was authorized by an assessment ballot proceeding conducted in 20 21 and approved by 78.55% of the weighted ballots returned by pr operty owners, and such assessments were levied by the Council by Resolution No. 21-020 passed on February 2, 2021; and

WHEREAS, the Fiscal Year 202 6 assessments do not exceed the maximum assessment levels previously approved by the City Council during t he formation of the Assessment District.

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

1. The above recitals are true and correct.

2. Preliminary approval of Final Engineer’s Report. SCI Consulting Group, the Engineer of Work, has prepared a n Engineer’s Report in accordance with Article XIIID of the California Constitution and Government Code section 53750, 54710 et seq. (the "Report"). The Report has been made, filed with the City Clerk, and

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duly considered by the Council and is hereby deemed sufficient and preliminarily approved. The Report shall stand as the Engineer's Report for all subsequent proceedings under and pursuant to the foregoing resolution and incorporated herein by reference, including, but not limited to, the following:

A. The description of the Services to be funded with Assessment proceeds;

B. The estimate of the annual cost of such Services;

C. The description of the assessable parcels of land within the District and subject to the new Assessment;

D. The description of the proportionate special and general benefits conferred on property by the proposed Assessment;

E. The description of the boundaries of the Assessment District;

F. The number of acres contained within the Assessment District and the assessed valuation of such acreage according to the last equalized assessment roll of the County;

G. The value of improvements on real estate and personal property within the Assessment District according to the last equalized assessment roll of the County;

H. The number of inhabitants in the Assessment District, as nearly as can be ascertained; and

I. The specification of the amount to be assessed upon various types of assessable land to fund the cost of the Services.

3. Findings of Special Benefit. Based on the oral and documentary evidence offered and received, including the Preliminary Engineer's Report, the City Council expressly finds and determines:

A. That each of the parcels in the Assessment District will be specially benefitted by the improvements at least in the amount, if not more than the amount, of the assessment apportioned against the parcel; and

B. That there is substantial evidence to support this finding and determination as to special benefit; and

C. That no assessment imposed on any parcel exceeds the reasonable cost of the proportional special benefit conferred on that parcel.

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4. Maximum Assessment Rate. The public interest, convenience, and necessity require that a levy on each lot of parcels in the Assessment District be no more than the SIX HUNDRED AND SIXTY-FIVE DOLLARS AND FIFTY CENTS ($665.50) per single family home and other rates for other property uses and attributes as described in the Report.

5. Levy of Assessments. The adoption of this Resolution constitutes the levy of the Assessments for Fiscal Year 202 6 at the rates and upon the parcels described in this Resolution, in the Final Engineer’s Report including the Assessment Roll, all incorporated herein by reference. The City of Hayward Director of Finance is hereby authorized and directed to order the collection of the Assessments stated herein.

6. Duration of Assessment . The assessments are to expire after 20 years. The assessment was first levied starting with the 2022 fiscal year and cease to be levied after the 20 41 fiscal year, unless renewed and extend ed by Proposition 218-compliant balloting.

7. Immediately upon the adoption of this Resolution, the City Clerk shall file a certified copy of this Resolution, and Engineer’s Report with the Treasurer -Tax Collector of the County of Alameda. The Assessments sh all be collected at the same time and in the same manner as county taxes are collected, and all laws providing for the collection and enforcement of county taxes shall apply to the collection and enforcement of the assessments. After collection by the Coun ty of Alameda, the net amount of the assessments, after deduction of any compensation due to the county of collection, shall be paid to the City of Hayward and received by the Director of Finance.

8. Upon receipt of monies representing assessments collected by the County, the Director of Finance of the City of Hayward shall deposit the monies in the City Treasury to the credit of the Assessment District. Monies deposited to the credit of the Assessment District shall be expended only for the services and improvements set forth in the Final Engineer’s Report, which is incorporated by reference herein.

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IN COUNCIL, HAYWARD, CALIFORNIA , 2025

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

Fiscal Year 2026

ENGINEER’S REPORT
City of Hayward
Old Highlands Area Road Improvement District
May 2025
Final Engineer’s Report

Attachment III
Cty of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026
Page i

Table of Contents
Introduction ................................................................................................................. 1 Overview.................................................................................................................................... 1 Legislative Analysis .................................................................................................................... 2 Engineer’s Report and Continuation of Assessment ................................................................. 5 Description of the Assessment District ......................................................................... 7 Improvements and Services within the Assessment District: ................................................... 7 Estimate of Cost ......................................................................................................... 10 Introduction ............................................................................................................................. 10 Estimate of Costs ..................................................................................................................... 10 Method of Apportionment ......................................................................................... 12 Method of Apportionment ...................................................................................................... 12 Discussion of Benefit Factors .................................................................................................. 12 Special Benefits from Road Improvements to Old Highlands ................................................. 13 General versus Special Benefit ................................................................................................ 13 Calculating General Benefit ..................................................................................................... 14 Benefit Zones Not Required within Old Highlands .................................................................. 16 Method of Assessment ............................................................................................................ 16 Approach ................................................................................................................................. 17 Duration of Assessment .......................................................................................................... 19 Annual Cost Indexing ............................................................................................................... 19 Certificate .................................................................................................................. 20 Assessment Diagram .................................................................................................. 21 Appendix A - Assessment Roll .................................................................................... 23

Cty of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026
Page ii

List of Tables
Table 1 – Description of Improvements .......................................................................................... 8 Table 2 – Estimate of Cost ............................................................................................................. 11 Table 3 – Relative Special Benefit based upon Average Daily Car Trips ........................................ 17

Cty of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026
Page iii

List of Figures
Figure 1 –Typical Road Cross Section ............................................................................................... 8

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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Introduction
Overview
The City of Hayward (“City”) established the Old Highlands Area Road Improvement Assessment District (the “Assessment District,” or “assessment”) to improve street pavement within the Old Highlands area. This Assessment District provides funding for the improvements, including repaving the streets in this area. The City has agreed to provide 50% of the project funding for this project and to work closely with the local property owners to maintain the existing character of the roads while repaving them.

The area known as the Old Highlands area (and also known as “OHHA” in reference to the Old Highlands Homeowners Association, which is an active HOA in the area) is located in the Hayward hills just east of the California State University East Bay campus and was annexed into the City in 1963.

In 1967, sewer and water improvements were made through an assessment district that was approved by property owners. However, the streets in this area, which were in poor condition even then, were not brought up to City standards upon annexation. In 1972, a second assessment district for street improvements was halted by a property owner lawsuit claiming that the cost of improvements was too high.

Since then, there have been numerous discussions between the City and OHHA, most recently in 2008-2010 when the OHHA board proposed an assessment district to reconstruct and improve the streets. At the time, the City offered a $2 million capital funding a llocation to help reduce each property owner’s annual assessment over the thirty-year term of the proposed bonds.

Regardless, the proposed assessment district was overwhelmingly rejected by affected property owners within the Old Highlands area. Since rejection of the proposed 2010 assessment district, all significant street repair efforts in the Old Highlands area have remained on hold, with the exception of emergency repairs by the City estimated at $270,000.

The Assessment District contains 299 parcels, most of which are used as single-family residential properties, and there are also some vacant, multi-family and government uses. The assessments for this Assessment District will be used to improve certain road facilities and will be levied annually for 20 years beginning in FY 2022. The assessment rate is $665.50 per year per developed single-family residential parcel, with different rates for different uses, as described and supported in this report, based upon the underlying following analysis.

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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The Assessment District contains approximately 124.77 acres of privately and publicly owned parcels as well as approximately 6.2 acres of roadway. Based upon the last equalized assessment roll of the county, the total assessed land value of the parcels within the Assessment District is $51,958,296 and the total assessed value of the improvements and personal property within the proposed Assessment District is $96,854,059. There are approximately 536 inhabitants living in the proposed Assessment District.

Legislative Analysis
Proposition 218
This assessment is formed consistent with Proposition 218, The Right to Vote on Taxes Act, which was approved by the voters of California on November 6, 1996, and is now codified as Article s XIIIC and XIIID of the California Constitution. Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services, improvements, as well as maintenance and operation expenses to a public improvement which benefits the assessed property.

Proposition 218 describes a number of important requirements, including property -owner balloting, for the imposition, increase and extension of assessments, and these requirements are satisfied by the process used to establish this assessment.

Permanent Road Division Law
This assessment is formed consistent with Article 3. By Permanent Road Divisions [1160 - 1197], also known as the Permanent Road Division Law, which is in Chapter 2 of Division 4 of the California Streets and Highways Code. This code section explicitly supports the generation of funding for the “construction, improvement, or maintenance” of roads.

For clarification, Section 1813 of the California Streets and Highways Code indicates that “the provisions of Article 3 (commencing with Section 1160) of Chapter 4 of Division 2 for the construction or maintenance of county roads may be utilized within any city for the construction and maintenance of city streets”.

Also, the funding for the road improvements are generated as an assessment, not a tax, per Section 1179.5 of the California Streets and Highways Code, which stipulates that “In lieu of, or in addition to, any special tax levied pursuant to Section 1178, the board [City Council] may fix and collect parcel charges for any permanent road division pursuant to the assessment ballot procedures in Section 53753 of the Government Code”.

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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Silicon Valley Taxpayers Association, Inc. v Santa Clara County Open Space Authority
In July of 2008, the California Supreme Court issued its ruling on the Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority (“SVTA vs. SCCOSA”). This ruling is the most significant legal document in further legally clarifying Proposition 218. Several of the most important elements of the ruling included further emphasis that:
• Benefit assessments are for special, not general, benefit • The services and/or improvements funded by assessments must be clearly defined • Special benefits are directly received by and provide a direct advantage to property in the Assessment District
This Engineer’s Report and the assessments are consistent with the SVTA vs. SCCOSA decision and with the requirements of Article XIIIC and XIIID of the California Constitution based on the following factors:

1. The assessment revenue derived from real property in the Assessment District is extended only for specifically identified improvements and/or maintenance and servicing of those improvements in the Assessment District that confer special benefits to property in that Assessment District.

2. The use of the Assessment District ensures that the i mprovements constructed and maintained with assessment proceeds are located in close proximity to the real property subject to the assessment, and that such Improvements provide a direct advantage to the property in the Assessment District.

3. Due to their proximity to the assessed parcels, the improvements and maintenance thereof financed with assessment revenues in the Assessment District benefit the properties in the Assessment District in a manner different in kind from the benefit that other parcels of real property in the City derive from such improvements, and the benefits conferred on such property in Assessment District are more extensive and direct than a general increase in property values.

4. The assessments paid in the Assessment District are proportional to the special benefit that each parcel within the Assessment District receives from such improvements and the maintenance thereof because of the following:
a. The Engineer’s Report specifically identifies the permanent public improvements that the assessments will finance;
b. The costs of such improvements are estimated and calculated; and

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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c. Such improvement and maintenance costs in the Assessment District are allocated to each property within the Assessment District based upon the estimated special benefits received from the improvements.

Dahms v. Downtown Pomona Property
On June 8, 2009, the 4th District Court of Appeals amended its original opinion upholding a benefit assessment for property in the downtown area of the City of Pomona. On July 22, 2009, the California Supreme Court denied review. Hence Dahms is good law and binding precedent fo r assessments. In Dahms the Court upheld an assessment that was 100% special benefit (i.e. 0% general benefit) on the rationale that the services and improvements funded by the assessments were directly provided to property in the assessment district. The Court also upheld discounts and exemptions from the assessment for certain properties.

Bonander v. Town of Tiburon
On December 31, 2009, the 1 st District Court of Appeals overturned a benefit assessment approved by property owners to pay for placing overhead utility lines underground in an area of the Town of Tiburon. The Court invalidated the assessments on the grounds that the assessments had been apportioned to assessed property based in part on relative costs within sub-areas of the assessment district instead of proportional special benefits.

Beutz v. County of Riverside
On May 26, 2010 the 4th District Court of Appeals issued a decision on the Steven Beutz v. County of Riverside (“Beutz”) appeal. This decision overturned an assessment for park maintenance in Wildomar, California, primarily because the general benefits associated with improvemen ts and services were not explicitly calculated, quantified, and separated from the special benefits.

Golden Hill Neighborhood Association v. City of San Diego On September 22, 2011, the San Diego Court of Appeals issued a decision on the Golden Hill Neighborhood Association v. City of San Diego appeal. This decision overturned an assessment for street and landscaping maintenance in the Greater Golden Hill neighborhood of San Diego, California. The court described two primary reasons for its decision. First, like in Beutz, the court found the general benefits associated with services were not explicitly calculated, quantified, and separated from the special benefits. Second, the court found that the City of San Diego had failed to record the basis for the assessment on its own parcels.

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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Compliance with Current Law
This Engineer’s Report is consistent with the requirements of Article XIIIC and XIIID of the California Constitution and with the SVTA decision because the i mprovements to be funded are clearly defined; the improvements are directly available to and will directly benefit property in the Assessment District ; and the improvements provide a direct advantage to property in the Assessment District that would not be received in absence of the assessments.

This Engineer’s Report is consistent with Beutz, Dahms and Greater Golden Hill because the improvements will directly benefit property in the Assessment District and the general benefits have been explicitly calculated and quantified and excluded from the assessments. The Engineer’s Report is consistent with Bonander because the assessments have been apportioned based on the overall cost of the improvements and proportional special benefit to each property.

Engineer’s Report and Continuation of Assessment
In order to allow property owners to ultimately decide whether funding should be provided to improve street pavement within the Old Highlands area , the City on October 10th, 20 20, authorized the initiation of proceedings for a proposed benefit assessment to provide local funding for the improvements, including repaving the streets in this area. The proposed assessment was named the Old Highlands Area Road Improvement Assessment District (the “Assessment District”). In December 2020 through February of 2021, the District conducted an assessment ballot proceeding pursuant to the requirements of Article XIIID of the California Constitution ("The Taxpayer's Right to Vote on Taxes Act") and the Government Code. During this ballot proceeding, owners of property in the Assessment District were provided with a notice and ballot for the proposed special assessment. A 45 -day period was provided for balloting and a public hearing was conducted on February 2, 2021.

It was determined after the conclusion of the public hearing that 78.55% of the weighted ballots returned were in support of the assessment. Since the assessment ballots submitted in opposition to the proposed assessments did not exceed the assessment ballots submitted in favor of the assessments (with each ballot weighted by the proportional financial obligation of the property for which ballot was submitted), the City gained the authority to approve the levy of the assessments for fiscal year 20 22 and to continue to levy them in future years. The City Council took action, by Resolution No. 21-020 passed on February 2, 2021, to approve the levy of the assessments for the first time for fiscal year 2022.

In each subsequent year for which the assessments will be continued, the City Council must approve an updated Engineer’s Report for the upcoming fiscal year. The Engineer’s Report should include a budget for the upcoming fiscal year’s costs and services and an updated assessment roll listing all parcels and their proposed assessments for the upcoming fiscal year.

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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This Engineer’s Report ("Report") was prepared by SCI Consulting Group (SCI) to establish the estimated costs for the pavement rehabilitation project that will be funded by the assessments, to determine the special benefits and general benefits received from the services and to apportion the assessments to lots and parcels within the District based on the estimated special benefit each parcel receives from the services funded by the benefit assessment.

If the City Council approves this Engineer's Report and the continuation of the assessments it establishes for fiscal year 202 6, the assessments would be submitted to the County Auditor for inclusion on the property tax rolls for fiscal year 2026.

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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Description of the Assessment District
Improvements an d Services within the Assessment District :

Background
The existing roads within the Old Highlands area were built consistent with County standards at the time they were built. Property owners in the City are typically required to upgrade all facilities to City standards, including City streets, sanitary sewers, water lines and so on. Annexation of the Old Highland s area into the City of Hayward occurred in 1963, and in 1967, sewer and water improvements were made through an assessment district that was approved by property owners.

However, the roads were not brought up to City standards and have remained sub-standard and poorly maintained ever since.

Recent conversations between City staff and local property owners have resulted in several roadway infrastructure goals and considerations listed below:
 A more rural type of street cross-section, narrow street widths, with or without on- street parking is desired.
 The roadway improvements will not include curb and gutter, rolled curbs, storm drain inlets, street lighting or sidewalks.
 The roads require full depth reconstruction in most places.  The roadway improvements are intended to include pavement reconstruction only.

Very minor improvements to eliminate roadway water ponding may also be included.  The roadway improvements will follow the existing roadway footprint. The intent is to construct a 20-foot-wide one-way street and a 24-foot-wide two-way street, unless existing obstructions prevent this from being implemented. In the case of obstructions, the roadway will be narrowed.
 The City will only improve roadways that are 100% public right-of-way. The City’s surveyor will identify street sections that are currently private property. The City’s surveyor will create a plat/legal description for these roadway segments. The City will prepare all documents that are necessary to complete the dedication of private right-of- way to the City.
 The OHHA Board is responsible for all communications with property owners necessary to support the financing mechanism and to dedicate private street areas for public right- of-way.
 The roads do not qualify for preventive maintenance as they are in very poor condition and require more extensive rehabilitation or reconstruction in order to realize a longer lasting improvement.

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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The improvements for the Assessment District will include roadway reconstruction and repaving as described in Table 1, below:

Table 1 – Description of Improvements
Item Street Name From To Approx Area Unit
1 Call Avenue Tribune Ave Chronicle Way 17,656 SF
2 Campus View Grand View Way New Dobbel Ave 21,178 SF
3 Chronicle Avenue Parkside Drive End 40,823 SF
4 Cotati Avenue Grand View Ave Civic Ave 10,018 SF
5 Grand View Avenue Campus View Way End 42,551 SF
6 Hillcrest Avenue Parkside Drive End 35,726 SF
7 Home Avenue Parkside Drive Hillcrest Ave 16,844 SF
8 New Dobbel Avenue Campus View Way Civic Avenue 16,537 SF 9 Parkside Drive Hayward Blvd Hayward Blvd 100,177 SF
10 Tribune Avenue Old Hayward Parkside Drive 31,870 SF
A typical cross section is shown in Figure 1 below:

Figure 1 –Typical Road Cross Section

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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The work and improvements to be funded by the Assessment District and the cost thereof paid from the levy of the annual assessment provide special benefit to Assessor Parcels within the Assessment District as defined in the Method of Assessment herein.

The improvements include all necessary service, operations, administration, and maintenance required to keep the above-mentioned improvements in a safe, clean, and reliable condition. “Incidental expenses ” may include any of the following: (a) The costs of preparation of the Engineer’s R eport, including plans , specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance of the Improvements; (f) any expenses incidental to the issuance of bonds or; (g) costs associated with any elections held for the approval of a new or increased assessment ; and (h) any administrative costs including general administration and insurance.

The assessment proceeds will be exclusively used for improvements serving the Assessment District plus incidental expenses. The following section of this Report specifically identifies the improvements to be funded by the assessment proceeds and the plans and specifications, including specific expenditure and improvement plans, which are on file with the City.

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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Estimate of Cost
Introduction
Improvements funded by the assessments will be used to enha nce the roads within the Assessment District over and above the existing conditions . The formula below describes the relationship between the final level of improvements, the existing baseline level of improvements, and the level of improvements for the road facilities funded by the assessments.

The Assessment District boundaries have been narrowly drawn to include properties, within the Old Highlands area, that have good proximity and access to the improvements.

Estimate of Costs
Table 2, below, shows the estimate of the cost of the improvements that would be funded by the Assessment District. Roadway funding considerations have been agreed upon between the City and the property owners, and include:
 The City will provide the initial funding for improvements from the Capital Improvement Program over a period of five to six years. The City will improve one or two streets each year. The OHHA Board will set construction priorities.  Assessment District property owners will reimburse the City for 50% of the project costs over 20 years with 2% interest.
 All existing deferred improvement agreements will be voided upon Assessment District property owners’ approval of a financing mechanism.
 The City will not begin any work, except development of an Engineer’s Report for the proposed financing mechanism, until financing is approved by the Assessment District property owners. This Engineer’s Report will include a rough estimate of anticipated costs only with appropriate contingencies.

Final Level of
Improvements =
Baseline Level of
Improvements +
Enhanced Level of
Improvements

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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Table 2 – Estimate of Cost

Notes to Estimate of Cost:

1. Annual “Road Reconstruction” cost of $325,215 is calculated from total project costs of $6,504,300 divided by 20 years (6,504,330/20 = 325,215).

2. The City will contribute 50% of the project costs. The Assessment District is responsible for the other 50% of project costs plus the costs of financing its portion at 2% over 20 years. The annual 2% interest burden of $34,818 is the difference between the annual repayment costs at $197,425 with 2% interest and the annual repayment costs of $162,608 with 0% interest.

3. As determined in the following section, at least 18.0% of the cost of road-related improvements must be funded from sources other than the assessments to cover any general benefits. Therefore, out of the total cost of improvements of $325,215, the City must contribute at least $58,538 from sources other than the assessments. The City’s contribution of $162,608 satisfies this requirement. Refer to the calculations and description in the following section “Method of Apportionment,” below.

4. The Act requires that proceeds from the assessments must be deposited into a special fund that has been set up for the revenues and expenditures of the Assessment District. Moreover, funds raised by the assessment shall be used only for the purposes stated within this Report.

Total
Budget
Beginnning Fund Balance (July 1, 2023) $0
Installation, Maintenance & Servicing Costs
Road Repaving $325,215
Total for Installation, Maintenance and Servicing (a) $325,215 Less:

Contributions from City of Hayward towards Project Costs(50%) (b) ($162,608) Contributions from City of Hayward towards annual adminstration (c) ($15,403) Plus Annual Interest Burden at 2% to City (d) $34,818
Total Road Maintenance Assessment District Budget (a+b+c+d) $182,022 (Net Amount to be Assessed)
Budget Allocation to Property
Total Assessment Budget (e) $182,022
Assessment Contribution
Number of Single Family Equivalent benefit units (f) 273.51 Assessment per Equivalent Dwelling Unit in Zone (e/f) $665.50 Old Highlands Area Road Improvement Assessment District Budget Fiscal Year 2026

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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Method of A pportionment
Method of Apportionment
This section of the Engineer’s Report includes an explanation of the special and general benefits derived from the i mprovements to the Old Highlands Area Road Improvement Assessment District, and the methodology used to apportion the total assessment to properties within the Assessment District.

The method used for apportioning the assessment is based upon the proportional special benefits conferred to the properties over and above the general benefits conferred to real property in the Assessment District or to the public at large. S pecial benefit is calculated for each parcel in the Assessment District using the following process:

1. Identification of all benefit factors derived from the improvements

2. Calculation of the portion of these benefits that are general

3. Determination of the relative special benefit within different areas within the Assessment District

4. Determination of the relative special benefit per property type

5. Calculation of the specific assessment for each individual parcel based upon special vs. general benefit; location, property type, property characteristics and other supporting attributes
Discussion of Benefit Factors
Assessments can only be levied based on the special benefit to property. This special benefit is received by property over and above any general benefits. Any and all general benefit must be funded from another source. Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that assessments must be based on the special benefit to property:
"No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel."

Since a ssessments are levied on the basis of special benefit, they are not a tax and are not governed by Article XIIIA of the California Constitution.

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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The SVTA v. SCCOSA decision clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits.

Finally, Proposition 218 twice uses the phrase “over and above” general benefits in describing special benefit. (Art. XIIID, sections 2(i) & 4(f).) The SVTA v. SCCOSA decision further clarifies that special benefits must provide a direct advantage to benefiting property and that proximity to a park is an example of a special benefit.

Special Benefit s from Road Improvements to Old Highlands The roadway improvements provide clear and direct special benefits to the parcels subject to the assessment.

The special benefits are summarized below:
 Improved ingress and egress
 Improved traffic safety
 Reduction of noise pollution
 Improved emergency access and reduced cost of local government in law enforcement, public health care, fire prevention, and natural disaster response  Improved desirability for development (i.e. development amplification) General versus Special Benefit
Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. The assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section.

In other words:

Total
Benefit =
General
Benefit +
Special
Benefit

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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There is no widely-accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties. SVTA vs.

SCCOSA provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements.

The starting point for evaluating general and special benefits is the current, baseline level of service. The assessment s fund Improvements “over and above” this general , baseline level and the general benefits estimated in this section are over and above the baseline.

Special benefit, on the other hand, is defined in the state constitution as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.” The SVTA v. SCCOSA decision indic ates that a special benefit is conferred to a property if it “receives a direct advantage from the improvement (e.g., proximity to a park).” In this Assessment, as noted, properties in the Assessment District have close proximity and uniquely improved desirability from the improvements as do other properties and the public at large.

Calculating General Benefit
In this section, the general benefit is liberally estimated and described, and then budgeted so that it is funded by sources other than the assessment, as required.

The following formula has been developed based upon the Silicon Valley and other judicial decisions, and has widespread use by this Engineer to estimate the general benefit for complex, multi-benefit assessments:

General
Benefit
=
Benefit to Real
Property Outside
the Assessment
District
+
Benefit to Real Property
Inside the Assessment
District that is Indirect and
Derivative
+
Benefit to
the Public
at Large

The Old Highlands Area Road Improvement Assessment District improvements benefit the assessed parcels (as special benefits) and also provide some limited, extraneous general benefits in three ways as shown in the formula above: 1) to properties outside the Assessment District, 2) indirectly to properties within the Assessment District, and 3) to the public at large.

General Benefit
General Benefit to Real Property Outside, But Proximate to, the Assessment District

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

Page 15 ends

Properties within the Assessment District receive almost all of the special benefits from the improvements because properties in the Assessment District enjoy unique proximity and access to the improvements that is not enjoyed by other properties or the public at large.

There are a limited number (a total of 5) of ingresses and egresses into the Assessment District .

Nonetheless, there are the equivalent of 43 properties that are proximate to the improvements, but outside of the boundaries of the Assessment District, that receive some benefit from the improvements. This benefit is general and is conferred to properties just outside the Assessment District’s boundary but are accessed by the roads to be improved. This benefit contributes to the overall general benefit calculation and will not be funded by the assessments.

The general benefit to property outside of the Assessment District is calculated as follows with the parcel and data analysis performed by SCI Consulting Group.

Percentage of units outside Old Highlands receiving benefit = 13% Road General Benefit to Real Property Inside the Assessment District that is Indirect and Derivative
The “indirect and derivative” benefit to property within the Assessment District is particularly difficult to calculate. A solid argument can be presented that all benefit s within the Assessment District are special, because the improvements are clearly “over and above” and “particular and distinct” when compared with the baseline level of service and the unique proximity of and access to the improvements enjoyed by benefiting properties in the Assessment District.

Percentage of parcels receiving indirect and derivative benefit = 0.0% Road General Benefit to the Public at Large
The roads within the Old Highlands area are almost exclusively used by property owners (which includes deliveries, visitors, workers, landscapers, refuse collection, etc.) within the Assessment District. However, there is some use by non-property owners including bikers, walkers, pleasure- drivers, or for a detour from Hayward Boulevard, etc. This benefit is difficult to quantify as it relies on unpredictable circumstances. Therefore, this benefit is liberally estimated at 5%.

Assumptions:
43 parcels outside and adjacent to the District
299 parcels in the Assessment District
Calculation
General Benefit to Property outside the Improvement District= (43/(43+299)) = 13%

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

Page 16 ends

General Benefit to the public at large = 5.0%
Total General Benefit
The total general benefit is calculated as the sum of the three components above:

Total General Benefit = 13% +0.0% + 5% = 18.0%
The Assessment District ’s total budget for improvement of road -related facilities is $3 25,215.

Therefore, out of the total cost of improvements of $3 25,215, the City must contribute at least $58,538 from sources other than the assessments . The City’s contribution of $162,608 satisfies this requirement.

Benefit Zones Not Required with in Old Highlands
The internal road networks are well distributed such that all parcels within the Old Highlands are relatively equally served by the improvements. Even properties closer to Hayward Boulevard receive benefit from neighborhood vitality, walkability and access from impro ved roads serving properties farther from Hayward Boulevard. Hence, there is no requirement to share in the cost of benefits in an unequal manner, and no benefit zones are created.

Method of Assessment
As previously discussed, the Assessment District will fund comprehensive improvements that will clearly confer special benefits to properties in the Assessment District.

The next step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a single-family home, or, in other words, on the basis of Single-Family Equivalent benefit units (SFE or “Benefit Units”). This benefit unit methodology is commonly used to distribute assessments in proportion to estimated special benefit and is generally recognized as providing the basis for a fair and appropriate distribution of assessments. For the purposes of this Engineer’s Report, all properties are designated with a SFE value, which is each property’s relative benefit in relation to a single-family home on one parcel. In this case, the "benchmark" property is a single-family home. Such properties are assigned one benefit unit, which is one Single Family Equivalent (1 SFE).

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

Page 17 ends

Approach
The special benefit to individual parcels from proximate improved residential streets is directly related to the use of such streets to access the parcel. For many years, the Institute of Traffic Engineers ( https://www.ite.org/) has provided and updated the industry -standard of ave rage daily car trips for specific property uses and sizes – and this research serve s as the basis for the assessment methodology in this Engineer’s Report.

Each parcel has been categorized by land use and evaluated for acreage and number of residential units where relevant. This analysis is illustrated in Table 3, with the Average Trip Generation Rate tabulated from the most current Institute of Traffic Engineers study, (with additional clarification on Notes), below.

Table 3 – Relative Special Benefit based upon Average Daily Car Trips

Notes :

1. Single Family Residential as SFE Benchmark
The Single-Family Equivalent (“SFE”) is defined as the Special benefit assigned to each single-family residence. All other SFEs are proportionate to the average daily car trips for a single-family residence.

2. Multiple Single Family Residential on One Parcel
There are six parcels with the Assessment District with multiple, stand-alone single- family residences on the parcel. In these cases, the special benefit is calculated as the sum of the number of single-family residences at the rate of 1 SFE per single family residence.

3. Multi-Family Residential
Property Use
Average Trip
Generation
Rate Units
Normalized
Factor
Development
Amplifier
Proposed
SFE Rate
Proposed
$ Rate Notes
Single Family Residential (SFR) 9.57 Dwelling Unit 1.00 1 1.000 $665.50 1 Multiple SFR on one parcel 9.57 Dwelling Unit 1.00 1 1.000 $665.50 2 Multi-Family Residential 5.81 Dwelling Unit 0.61 1 0.607 $404.03 3 Vacant 0.4 Parcel 0.04 5 0.209 $139.08 4
Park 2.28 Acres 0.24 1 0.238 $158.55 5
Water Tank 0.2 Parcel 0.02 1 0.021 $13.91 6
Formulae: a (b = a/SFR trip rate) c (b*c=d) (d *SFR $ rate)

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

Page 18 ends

Special benefit is assigned to multi-family residential parcels (duplexes, triplexes, quads) at the rate of 0.61 SFEs per dwelling unit based upon the normalization of average daily car trips versus single family residences. (5.87/9.57 = 0.61)

4. Vacant
The Institute of Traffic Engineers does not provide average daily car trips to vacant residential parcels, so this amount has been estimated as approximately 1 trip per work week or 1/5 of a trip per day which equals 0.2 daily trips. However, the increase in desirability for development of a vacant lot with greatly improved road access is difficult to measure but it is very significant. Hence, a development amplification factor of 5 has been conservatively implemented to account for the increased desirability to develop a vacant property adjacent to improved roads.

5. Park
Special benefit is assigned to the three park parcels at the rate of 0.24 SFEs per acre unit based upon the normalization of average daily car trips versus single family residences. (2.28/9.57 = 0.24)

6. Water Tank
The City of Hayward owns and operates a large water tank on one large parcel and two smaller parcels. The assessment will be assigned to the large parcel (081D-1665-002-

01.) The Institute of Traffic Engineers does not provide average daily car trips to large water tank sites, so this amount has been estimated as approximately 1 trip per work week or 1/5 of a trip per day which equals 0.2 daily trips. Hence the rate of 0.04 SFEs per vacant parcels based upon the normalization of average daily car trips versus single family residences. (0.02)/9.57 = 0.02)

7. Other Properties
Article XIIID stipulates that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment.

Miscellaneous, small, and other parcels such as roads, right-of-way parcels, and common areas typically do not generate significant numbers of employees, residents, customers, or guests and have limited economic value. These miscellaneous parcels receive minimal benefit from the improvements and are assessed a SFE benefit factor of zero.

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

Page 19 ends

Duration of Assessment
The assessment shall be levied for FY 2022 and continued every year thereafter for a total of 20 years.

Annual Cost Indexing
The assessment is not subject to an annual adjustment tied to an index.

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

Page 20 ends

Certificate
I do hereby apportion said net amount of the cost and expenses of said improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within said Assessment District, in accordance with the special benefits to be received by each parcel or lot, from the improvements, and more particularly set forth in the Cost Estimate and Method of Assessment hereto attached and by reference made a part hereof.

The assessment is made upon the parcels or lots of land within the Assessment District in proportion to the special benefits to be received by the parcels or lots of land, from said improvements.

Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the County of Alameda. For a more particular description of said property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of said County.

I hereby place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for each parcel or lot of land within the said Assessment District.

Dated: April 28, 2025

Engineer of Work

By ____________________________
John W. Bliss, License No. C052091

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

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Assessment Diagram
The District Boundary and the parcels to be assessed in Old Highlands Area Road Improvement Assessment District are displayed on the Assessment Diagram, which is on file with the City Clerk of the City of Hayward. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions as shown on the maps of the Assessor of the County of Alameda for Fiscal Year 202 6, and are incorporated herein by reference, and made a part of this Diagram and this Report.

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

Page 22 ends

City of Hayward
Old Highlands Area Road Improvement Assessment
Engineer’s Report FY 2026

Page 23 ends

Appendix A - A ssessment Roll
Assessments shown below reflect the prospective assessments for the single lots in the fully-built scenario using the current configuration and rate.

Parcel Rate Parcel Rate Parcel Rate Parcel Rate Parcel Rate 081D-1585-007-00 $139.09 081D-1635-016-02 $665.50 081D-1650-029-00 $665.50 081D-1660-040-00 $139.09 425 -0420-010-00 $665.50 081D-1585-008-01 $665.50 081D-1635-017-00 $665.50 081D-1650-030-00 $665.50 081D-1660-041-00 $139.09 425 -0420-013-00 $665.50 081D-1585-012-00 $665.50 081D-1635-018-02 $665.50 081D-1650-031-00 $665.50 081D-1660-042-00 $665.50 425 -0420-014-00 $665.50 081D-1585-013-00 $665.50 081D-1635-021-02 $665.50 081D-1650-032-00 $665.50 081D-1660-043-00 $665.50 425 -0420-015-00 $665.50 081D-1585-022-00 $139.09 081D-1635-024-00 $665.50 081D-1650-033-00 $665.50 081D-1660-044-00 $139.09 425 -0420-016-00 $665.50 081D-1585-025-04 $665.50 081D-1635-025-00 $665.50 081D-1650-034-00 $665.50 081D-1665-001-03 $665.50 425 -0420-017-00 $665.50 081D-1585-026-00 $1,211.88 081D-1635-027-00 $665.50 081D-1650-035-00 $665.50 081D-1665-001-06 $665.50 425 -0420-018-00 $665.50 081D-1585-027-00 $665.50 081D-1635-028-00 $665.50 081D-1655-001-04 $665.50 081D-1665-003-02 $139.09 425 -0420-019-00 $665.50 081D-1585-028-01 $665.50 081D-1635-029-00 $665.50 081D-1655-002-06 $665.50 081D-1665-004-00 $665.50 425 -0420-020-01 $665.50 081D-1585-028-02 $665.50 081D-1640-004-00 $665.50 081D-1655-002-07 $139.09 081D-1665-006-02 $139.09 425 -0420-021-02 $139.09 081D-1585-029-00 $665.50 081D-1640-006-00 $139.09 081D-1655-005-00 $665.50 081D-1665-008-01 $665.50 425 -0420-022-00 $665.50 081D-1585-030-00 $665.50 081D-1640-020-00 $665.50 081D-1655-006-02 $139.09 081D-1665-009-01 $665.50 425 -0430-002-03 $139.09 081D-1585-031-00 $1,996.50 081D-1640-021-00 $665.50 081D-1655-011-00 $665.50 081D-1665-012-01 $665.50 425 -0430-002-04 $665.50 081D-1585-036-00 $665.50 081D-1645-001-00 $665.50 081D-1655-012-00 $665.50 081D-1665-014-00 $665.50 425 -0430-004-00 $665.50 081D-1585-037-00 $665.50 081D-1645-008-02 $1,331.00 081D-1655-013-02 $665.50 081D-1665-015-01 $665.50 425 -0430-005-00 $665.50 081D-1585-038-00 $665.50 081D-1645-009-04 $665.50 081D-1655-014-02 $665.50 081D-1665-015-02 $665.50 425 -0430-006-00 $665.50 081D-1585-039-00 $665.50 081D-1645-010-03 $665.50 081D-1655-015-00 $665.50 081D-1665-018-00 $665.50 425 -0430-007-00 $665.50 081D-1585-040-00 $665.50 081D-1645-011-00 $665.50 081D-1655-017-02 $665.50 081D-1665-019-02 $665.50 425 -0430-008-00 $665.50 081D-1585-041-00 $665.50 081D-1645-012-00 $665.50 081D-1655-018-03 $665.50 081D-1665-020-01 $1,331.00 425 -0430-009-00 $139.09 081D-1585-042-00 $665.50 081D-1645-013-00 $665.50 081D-1655-018-04 $665.50 081D-1665-021-00 $665.50 425 -0430-011-00 $665.50 081D-1585-043-01 $665.50 081D-1645-014-00 $665.50 081D-1655-019-00 $665.50 081D-1665-022-00 $665.50 425 -0430-013-00 $665.50 081D-1585-044-00 $665.50 081D-1645-015-00 $665.50 081D-1655-020-00 $665.50 081D-1665-023-00 $665.50 425 -0430-014-00 $665.50 081D-1585-045-00 $665.50 081D-1645-016-00 $665.50 081D-1655-021-00 $665.50 081D-1665-024-00 $139.09 425 -0430-015-00 $665.50 081D-1585-046-00 $665.50 081D-1645-018-01 $665.50 081D-1655-022-00 $139.09 081D-1665-025-00 $665.50 425 -0430-016-00 $139.09 081D-1585-047-00 $665.50 081D-1645-019-00 $665.50 081D-1655-024-00 $665.50 081D-1665-026-00 $665.50 425 -0430-017-00 $139.09 081D-1585-048-00 $665.50 081D-1645-020-00 $665.50 081D-1655-025-01 $665.50 081D-1665-027-00 $665.50 425 -0430-018-00 $665.50 081D-1585-049-00 $665.50 081D-1645-021-00 $139.09 081D-1655-026-00 $665.50 081D-1665-030-02 $665.50 425 -0430-019-00 $665.50 081D-1585-050-00 $665.50 081D-1645-022-00 $139.09 081D-1655-027-00 $665.50 081D-1665-031-00 $665.50 425 -0450-001-00 $665.50 081D-1585-051-00 $665.50 081D-1645-023-01 $665.50 081D-1655-028-00 $665.50 081D-1665-032-00 $665.50 425 -0450-002-00 $665.50 081D-1585-052-00 $665.50 081D-1645-024-01 $665.50 081D-1655-029-00 $665.50 081D-1665-033-00 $665.50 425 -0450-004-07 $665.50 081D-1585-053-00 $665.50 081D-1645-025-01 $665.50 081D-1660-001-00 $139.09 081D-1665-034-00 $665.50 425 -0450-004-09 $665.50 081D-1585-054-00 $665.50 081D-1645-026-00 $665.50 081D-1660-002-00 $665.50 081D-1665-035-00 $665.50 425 -0450-005-02 $665.50 081D-1585-055-00 $665.50 081D-1645-027-00 $665.50 081D-1660-003-00 $807.92 081D-1665-036-00 $665.50 425 -0450-006-00 $665.50 081D-1585-056-00 $665.50 081D-1645-028-00 $665.50 081D-1660-004-00 $665.50 081D-1665-037-00 $665.50 425 -0450-007-00 $665.50 081D-1585-057-00 $665.50 081D-1645-029-00 $665.50 081D-1660-005-01 $665.50 081D-1665-038-00 $665.50 425 -0450-008-00 $665.50 081D-1585-058-00 $665.50 081D-1645-030-00 $665.50 081D-1660-005-02 $665.50 081D-1665-039-00 $665.50 425 -0450-009-00 $665.50 081D-1585-059-01 $665.50 081D-1645-032-00 $665.50 081D-1660-005-03 $665.50 081D-1665-040-00 $665.50 425 -0450-010-00 $665.50 081D-1585-060-00 $665.50 081D-1645-033-00 $665.50 081D-1660-008-01 $665.50 081D-1665-041-00 $665.50 425 -0450-011-02 $665.50 081D-1595-001-00 $665.50 081D-1645-034-00 $665.50 081D-1660-008-02 $665.50 081D-1665-042-00 $665.50 425 -0460-009-00 $665.50 081D-1595-002-01 $665. 50 081D-1645-035-00 $665.50 081D-1660-011-02 $665.50 081D-1665-043-00 $665.50 425 -0460-010-00 $665.50 081D-1595-009-02 $665.50 081D-1650-001-01 $665.50 081D-1660-014-00 $665.50 081D-1665-044-00 $139.09 445 -0290-005-08 $139.09 081D-1595-010-01 $665.50 081D-1650-008-00 $665.50 081D-1660-016-00 $665.50 081D-1665-045-00 $665.50 081D-1595-011-02 $665.50 081D-1650-009-01 $665.50 081D-1660-017-00 $665.50 081D-1665-047-01 $665.50 081D-1595-012-02 $665.50 081D-1650-009-02 $665.50 081D-1660-020-00 $665.50 081D-1665-049-01 $665.50 081D-1595-012-06 $665.50 081D-1650-010-00 $665.50 081D-1660-021-00 $665.50 081D-1665-051-01 $665.50 081D-1595-012-08 $665.50 081D-1650-011-03 $665.50 081D-1660-023-03 $665.50 081D-1665-052-00 $665.50 081D-1595-019-00 $665.50 081D-1650-012-02 $665.50 081D-1660-024-00 $665.50 081D-1665-053-00 $665.50 081D-1595-020-00 $665.50 081D-1650-013-00 $665.50 081D-1660-025-00 $665.50 081D-1665-054-00 $665.50 081D-1595-021-04 $1,331.00 081D-1650-014-00 $665.50 081D-1660-026-00 $665.50 081D-1665-055-00 $665.50 081D-1595-022-02 $665.50 081D-1650-015-00 $665.50 081D-1660-027-00 $665.50 081D-1665-056-00 $665.50 081D-1595-023-02 $139.09 081D-1650-016-00 $665.50 081D-1660-028-00 $665.50 081D-1665-057-00 $665.50 081D-1595-031-00 $665.50 081D-1650-017-00 $665.50 081D-1660-029-00 $139.09 081D-1665-058-00 $139.09 081D-1595-079-00 $665.50 081D-1650-018-00 $665.50 081D-1660-030-00 $139.09 081D-1665-059-00 $665.50 081D-1595-085-00 $665.50 081D-1650-019-00 $139.09 081D-1660-031-00 $665.50 081D-1665-060-02 $139.09 081D-1595-086-00 $665.50 081D-1650-020-01 $665.50 081D-1660-032-00 $665.50 081D-2091-001-00 $665.50 081D-1595-087-00 $665.50 081D-1650-022-00 $665.50 081D-1660-033-00 $665.50 081D-2091-002-00 $139.09 081D-1635-005-05 $1,331.00 081D-1650-023-00 $665.50 081D-1660-034-00 $665.50 081D-2091-003-00 $665.50 081D-1635-006-02 $665.50 081D-1650-024-00 $665.50 081D-1660-035-00 $665.50 081D-2091-004-00 $665.50 081D-1635-008-00 $665.50 081D-1650-025-00 $665.50 081D-1660-036-02 $665.50 425 -0420-002-00 $1,331.00 081D-1635-009-04 $139.09 081D-1650-026-00 $665.50 081D-1660-037-00 $665.50 425 -0420-003-00 $665.50 081D-1635-014-03 $665.50 081D-1650-027-00 $665.50 081D-1660-038-00 $665.50 425 -0420-004-00 $665.50 081D-1635-015-02 $665.50 081D-1650-028-00 $665.50 081D-1660-039-00 $665.50 425 -0420-009-00 $665.50

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 25-272
DATE: June 17, 2025
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Adopt a Resolution Confirming the Report and Special Assessment List Associated with Delinquent Water and Sewer Bills and Authorizing the Delinquent Charges to Become a Special Assessment Against the Properties if Not Paid by August 1, 2025

RECOMMENDATION
That the City Council adopts the attached draft resolution (Attachment II) confirming the report and assessment for delinquent water bills and sewer bills and authorizing the delinquent charges to become a special assessment against the properties if not paid by August 1, 2025.

SUMMARY
In November 2012, City Council approved collection of delinquent water and sewer service charges by way of special assessments on property tax rolls for property owners that receive only sewer service from the City and from owners of multi-family properties. Currently, there are 59 affected properties with a total of $117,086.52 in delinquent charges, which includes $112,179.32 in unpaid sewer and water charges, $2,950 in administrative fees to the City and $1,957.20 in administrative fees to Alameda County Assessor’sOffice, as listed on Attachment III. It is anticipated that the final list of properties and amount of delinquent water and sewer charges will be reduced by the final due date of August 1, 2025. Recovery of these outstanding charges improves the fiscal health of the Water and Wastewater Operating Funds, which benefits all rate payers.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Special Assessment List
Attachment IV Legal Notice
CITY OF HAYWARD Printed on 6/12/2025Page 1 of 2
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File #:CONS 25-272
CITY OF HAYWARD Printed on 6/12/2025Page 2 of 2
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Page 1 of 4 ends

DATE: June 17, 2025

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT Adopt a Resolution Confirming the Report and Special Assessment List Associated with Delinquent Water and Sewer Bills and Authorizing the Delinquent Charges to Become a Special Assessment Against the Properties if Not Paid by August 1, 2025

RECOMMENDATION

That the City Council adopts the attached draft resolution (Attachment II) confirming the report and assessment for delinquent water bills and sewer bills and authorizing the delinquent charges to become a special assessment against the properties if not paid by August 1, 2025.

SUMMARY

In November 2012, City Council approved collection of delinquent water and sewer service charges by way of special assessments on property tax rolls for property owners that receive only sewer service from the City and from owners of multi-family properties.

Currently, there are 59 affected properties with a total of $117,086.52 in delinquent charges, which includes $112,179.32 in unpaid sewer and water charges, $2,950 in administrative fees to the City and $1,957.20 in administrative fees to Alameda County Assessor’s Office, as listed on Attachment III. It is anticipated that the final list of properties and amount of delinquent water and sewer charges will be reduced by the final due date of August 1, 2025. Recovery of these outstanding charges improves the fiscal health of the Water and Wastewater Operating Funds, which benefits all rate payers.

BACKGROUND

The City provides water and sewer services to almost all residents and businesses within the City limits. The exceptions are a small number of properties that receive water service from the East Bay Municipal Utility District or sewer service from Oro Loma Sanitary District. In addition to in-City customers, Hayward provides sewer service to about 970 “sewer-only” customers, mainly located in unincorporated Alameda County, as well as water or sewer service to other customers outside of the City limits. The Hayward Municipal Code states that responsibility for water and sewer bills lies with the person or

Page 2 of 4 ends

entity that requested service, i.e., the account holder of record. For sewer-only accounts, however, ultimate responsibility rests with the property owner, regardless of the name on the account.

For accounts that become subject to collection, the most effective measure available to the City is to discontinue water service for unpaid charges. However, the City is unable to shut off water to sewer-only customers since water service is not provided by the City. With respect to multi-family customers, discontinuing water service would leave tenants without water, in most cases through no fault of their own. On November 27, 2012, City Council approved ordinances allowing for the collection of delinquent water and sewer bills as special assessments on property tax bills. The ordinances apply to accounts that are at least sixty days in arrears as of March 1, 2025, and provides the City with a tool to collect delinquent charges from property owners that receive sewer service only from the City and from owners of multi-family properties. The ordinances are intended for use as a last resort, in addition to remedies that already exist.

DISCUSSION

Delinquent water and sewer service charges that would be placed on the property tax rolls for each customer are comprised of all charges in arrears by sixty days or more as of March 1, 2025, a $50 administrative fee charged by the City, and a 1.7% administrative fee charged by the Alameda County Assessor’s Office.

As of the date of this writing, there are 59 affected accounts that have a total of $112,179.32 in unpaid sewer and water charges, plus an additional $2,950 in administrative fees to the City and $1,957.20 in administrative fees to Alameda County Assessor’s Office, for a total of $117,086.52, as listed on Attachment III. If not paid by August 1, 2025, the unpaid charges and administrative fees will become a special assessment against the property and will appear on each property owner’s tax bill later this year.

To give the City Council a sense of the impact of the ordinance, the first formal letter was sent to 98 account holders, with total delinquent charges of $187,820.07, where approximately 62% of the charges were owed by two customers. The attached list includes 59 account holders, with charges totaling $112,179.32, excluding City and County administrative fees, of which 57% of the charges are owed by two customers. This means that $75,640.75, or approximately 40% of the original unpaid charges, has been collected that otherwise may not have been paid.

By comparison, at the same time last year, there were 96 affected accounts with an outstanding balance of $96,571.73, and in the previous year, there were 90 affected accounts with an outstanding balance of $122,701.46, excluding City and County administrative fees.

As seen in previous years, some property owners paid off their delinquent balance after City Council action. The final list that will be transmitted to the County Assessor may be smaller than the list provided in Attachment III. The final list transmitted to the County

Page 3 of 4 ends

Assessor last year included 41 account holders with an outstanding total balance of $25,096.52, excluding City and County administrative fees.

Staff mailed three formal notices to each affected property owner in March, April, and May.

Property owners were provided with an opportunity to schedule an administrative hearing if they disagreed with the charges or their responsibility for paying them. No requests for hearings were received.

ECONOMIC IMPACT

The properties that are affected by this action are summarized in the following table:

Amount Owed
(Excluding Administrative
Fees)
Number of Parcels
Less than $500 25
$500 - $1,000 25
$1,000 - $2,000 2
$2,000 - $10,000 3
More than $10,000 3
Total: $112,179.32 59

To the extent that we recover and discourage delinquencies, all rate payers will benefit from slightly less overall future rate increase requirements.

FISCAL IMPACT

There is no negative fiscal impact to the City as cost recovery occurs through administrative fees. Recovery of these outstanding charges improves the fiscal health of the Water and Wastewater Operating Funds, which benefits all rate payers.

STRATEGIC ROADMAP

This agenda item is a routine operational item and does not relate to one of the City Council’s Strategic Roadmap.

SUSTAINABILITY FEATURES

There are no direct sustainability features associated with this report.

PUBLIC CONTACT

In addition to the three notices sent directly to property owners, a notice of the City Council’s scheduled confirmation of this report (Attachment IV) will be published twice in The Daily Review in June 2025.

Page 4 of 4 ends

NEXT STEPS

The City will continue to accept payments until August 1, 2025. After that date, the list will be finalized and forwarded to the Alameda County Assessor’s Office by August 8, 2025, in accordance with the County’s schedule.

Prepared by: Michelle Tran, Developmental Review Specialist

Recommended by: Alex Ameri, Director of Public Works

Approved by:

________________________________________
Michael Lawson, J.D.

Acting City Manager

ATTACHMENT II

Page 1 of 2 ends

HAYWARD CITY COUNCIL

RESOLUTION NO. 25-______

Introduced by Council Member _________

RESOLUTION CONFIRMING THE REPORT AND SPECIAL ASSESSMENT LIST

ASSOCIATED WITH DELINQUENT WATER AND SEWER BILLS AND

AUTHORIZING THE DELINQUENT CHARGES TO BECOME A SPECIAL
ASSESSMENT AGAINST THE PROPERTIES IF NOT PAID BY AUGUST 1, 2025

WHEREAS, the Director of Public Works and Director of Finance have rendered an itemized report in writing to this Council indicating certain property owners that receive water and/or sewer service from the City of Hayward who have incurred delinquent water and/or sewer bills, as required by S ections 11-2.50 and 11 -3.463 of the Municipal Code of the City of Hayward; and

WHEREAS, the hour of 7 p.m. on Tuesday, June 17, 2025, in the Council Chambers, City Hall, 777 B Street, Hayward, California, was fixed as the time and place for this Council to receive and consider the report, and a copy of the report has been posted and published in the manner required by Sections 11-2.51 and 11-3.464 of the Municipal Code; and

WHEREAS, the report was presented at the time and place fixed, and the City Council has considered the report and all comments with respect thereto.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that, except as may be amended by Council, the report from the Director of Public Works and Director of Finance of the City of Hayward listing certain property owners that receive water and/or sewer service from the City of Hayward who have incurred a delinquent water and/or sewer bill, a copy of which is attached hereto, is hereby confirmed.

BE IT FURTHER RESOLVED that payments of assessments confirmed hereby may be received by the City of Hayward Director of Finance up to the hour of 5 p.m. on August 1, 2025, and thereafter such official shall transmit the unpaid assessments to the County Auditor for collection on the property tax roll.

Page 2 of 2 ends

IN COUNCIL, HAYWARD, CALIFORNIA , 2025

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

444-0030-049-04 KIM MAN S & ALICE Y TRS 60531 192 A ST SEWER ONLY $523.15 $50.00 $9.74 $582.89

444-0030-049-04 CHANDRA ASHWEEN S 60544 267 SMALLEY AVE SEWER ONLY $256.60 $50.00 $5.21 $311.81 444-0039-044-00 SOARES JOHN & ALICE TRS 60579 22384 MEEKLAND AVE SEWER ONLY $27.45 $50.00 $1.32 $78.77 444-0069-064-00 SADDIQI ZAINUDDIN & MARJAN 60592 249 LAUREL AVE SEWER ONLY $523.15 $50.00 $9.74 $582.89 441-0087-030-23 WANG ZHI C & HUANG YA L TRS 60607 385 LAUREL AVE SEWER ONLY $1,021.30 $50.00 $18.21 $1,089.51 425-0370-068-00 KUMAR RAMESHWARI & ASHWIN 60656 290 POPLAR AVE SEWER ONLY $523.15 $50.00 $9.74 $582.89 425-0370-043-00 KUMAR RAMESHWARI & ASHWIN 60657 284 POPLAR AVE SEWER ONLY $470.82 $50.00 $8.85 $529.67 425-0330-026-00 CHAND PRATAP TR 60679 22567 YOLO ST SEWER ONLY $559.15 $50.00 $10.36 $619.51 425-0330-003-00 JIANG XUECHEN 60708 680-82 SUNSET BLVD SEWER ONLY $1,021.30 $50.00 $18.21 $1,089.51 425-0360-020-00 GARZA DOMINIC & DEANNA 60722 384 SUNSET BLVD SEWER ONLY $523.15 $50.00 $9.74 $582.89

ATTACHMENT III

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Utility Accounts Special Assessment List 2025
Parcel Owner Name Account
Number Location Description Amount Due COH Special
Assessment Fee
Alameda County Fee (1.7% of
amount due + COH fee)
Total to be Added to
Property Tax Bill
425-0360-006-00 TAKEIFANGA SALOTE 60727 312 SUNSET BLVD SEWER ONLY $523.15 $50.00 $9.74 $582.89 425-0380-020-00 CHEN CHENG C & CHENG L ETAL 60742 293 SUNSET BLVD SEWER ONLY $374.13 $50.00 $7.21 $431.34 417-0040-007-00 LEWIS JULIE 60768 500 OLD OAK LN #3 SEWER ONLY $422.55 $50.00 $8.03 $480.58 417-0040-003-00 FUNG PUI T 60791 1028 OLD OAK LN SEWER ONLY $271.99 $50.00 $5.47 $327.46 416-0170-033-00 PERKINS PETINA R 60808 22962 AMADOR ST SEWER ONLY $523.15 $50.00 $9.74 $582.89 416-0170-033-00 ROBINSON RANDY & MIRIAM 60836 22626 AMADOR ST #3 SEWER ONLY $559.15 $50.00 $10.36 $619.51 416-0170-056-00 BHATTI ONIEL & ADEEL ETAL 60848 22542 AMADOR ST #3 SEWER ONLY $422.55 $50.00 $8.03 $480.58 416-0170-066-00 KIM MAN S & ALICE Y TRS 60867 206 A ST SEWER ONLY $579.35 $50.00 $10.70 $640.05 416-0170-002-00 PINEDA VILMA ETAL 60894 234 SUNSET BLVD SEWER ONLY $4,573.22 $50.00 $78.59 $4,701.81 416-0170-001-00 442 SUNSET BLVD PROPCO LLC 60897 458 SUNSET BLVD SEWER ONLY $3,317.21 $50.00 $57.24 $3,424.45 416-0170-039-00 442 SUNSET BLVD PROPCO LLC 60898 442 SUNSET BLVD SEWER ONLY $25,914.21 $50.00 $441.39 $26,405.60 428-0041-079-00 CRAWFORD JOANN L TR 61001 362 SMALLEY AVE SEWER ONLY $386.55 $50.00 $7.42 $443.97 428-0041-079-00 CRAWFORD JOANN L TR 61002 364 SMALLEY AVE, UNIT A SEWER ONLY $386.55 $50.00 $7.42 $443.97 428-0041-034-00 CRAWFORD JOANN L TR 61007 364 SMALLEY AVE, UNIT F SEWER ONLY $386.55 $50.00 $7.42 $443.97 431-0016-024-00 CRAWFORD JOANN L TR 61008 358 SMALLEY AVE, UNIT A SEWER ONLY $386.55 $50.00 $7.42 $443.97 431-0016-019-02 CRAWFORD JOANN L TR 61010 358 SMALLEY AVE, UNIT C SEWER ONLY $523.15 $50.00 $9.74 $582.89 429-0091-051-00 CRAWFORD JOANN L TR 61011 360 SMALLEY AVE, UNIT A SEWER ONLY $523.15 $50.00 $9.74 $582.89 429-0091-021-00 CRAWFORD JOANN L TR 61016 360 SMALLEY AVE, UNIT F SEWER ONLY $493.10 $50.00 $9.23 $552.33 429-0091-019-00 VINH PHONG K & WONG YUK F 4821 24555-24557 MARGARET DR MULTI-FAMILY $911.13 $50.00 $16.34 $977.47 431-0012-010-00 JOZINOVIC JOZO & RUZA 5570 22224-28 MAIN ST MULTI-FAMILY $392.96 $50.00 $7.53 $450.49 431-0012-015-00 MADANAT NABEEL & EMAN 9827 22596-98 NORWOOD DR MULTI-FAMILY $177.42 $50.00 $3.87 $231.29 431-0016-066-00 OKWUEGBE KENNETH 10256 25198 MUIR ST #1-7 MULTI-FAMILY $290.94 $50.00 $5.80 $346.74 431-0016-034-00 ARMSTRONG ROGER R 20125 391 OCIE WAY MULTI-FAMILY $3,787.99 $50.00 $65.25 $3,903.24 431-0016-105-00 HUA XIAOXI 22274 418-420 HARRIS RD MULTI-FAMILY $832.37 $50.00 $15.00 $897.37 431-0016-027-00 ROCKAWAY APARTMENTS LLC 22927 22400 ROCKAWAY LN MULTI-FAMILY $10,808.07 $50.00 $184.59 $11,042.66 431-0016-041-00 HAIDER MOHAMMAD J HEIRS OF EST 23065 468-74 SCHAFER RD MULTI-FAMILY $1,745.63 $50.00 $30.53 $1,826.16 431-0016-042-00 HAYWARD FEE OWNER LLC 23910 24650 AMADOR ST MULTI-FAMILY $37,503.53 $50.00 $638.41 $38,191.94 431-0016-001-02 HOUSLEY GENE R & DEBBY M TRS 27808 25635-43 DONALD AVE MULTI-FAMILY $327.64 $50.00 $6.42 $384.06 431-0016-115-00 SCHAFER GARDEN VENTURES LLC 32239 749 SCHAFER RD MULTI-FAMILY $21.60 $50.00 $1.22 $72.82 Totals: Parcels being Specially Assessed Amount Due
Special
Assessment Fee
Alameda County
Fee
Special
Assessment
59 $112,179.32 $2,950.00 $1,957.20 $117,086.52

Page 2 of 2 ends

I certify (or declare) under the penalty of perjury that the foregoing is true and correct.

Executed at Rio Vista, California.

On this 6th day of June, 2025.

Legal No. Daily Review(510) 723-2850

PROOF OF PUBLICATION
FILE NO. Delinquent Water & Sewer Bill
Daily Review
The Daily Review
I am a citizen of the United States; I am over the age of eighteen years, and not a party to or interested in the above-entitled matter.

I am the Legal Advertising Clerk of the printer and publisher of The Daily Review, a newspaper published in the English language in the City of Hayward, County of Alameda, State of California.

I declare that the Daily Review is a newspaper of general circulation as defined by the laws of the State of California as determined by this court's decree, dated March 2, 1950, in the action entitled In the Matter of the Ascertainment and
Establishment of the Standing of The Daily Review as a
Newspaper of General Circulation, case number 221938. Said decree states that "'The Daily Review' has been established, printed, and published daily in the City of Hayward, County of Alameda, State of California, for one year or more next preceding the date of the filing of said petition; that it is a newspaper published for the dissemination of local and telegraphic news and intelligence of a general character and has a bona fide subscription list of paying subscribers; … [ ] [and] THEREFORE, … 'The Daily Review' is hereby determined and declared to be a newspaper of general circulation [within the meaning of Government Code §§ 6000 et seq.]" Said decree has not been revoked , vacated or set aside.

I declare that the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit:
06/06/2025
Public Notice Advertising Clerk
3775261

CITY OF HAYWARD
ATTN: PUBLIC WORKS - ENG & TRANS SVS
777 B STREET - 2ND FLOOR
HAYWARD, CA 94541
0006900755
1r.BP316-07/17/17

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 25-276
DATE: June 17, 2025
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Adopt a Resolution Authorizing the City Manager to Execute an Updated Community Workforce Agreement with the Alameda County Building Trades Council and Finding that the Action is Exempt from Environmental Review

RECOMMENDATION
That the City Council adopts a resolution (Attachment II) authorizing the City Manager to execute an updated Community Workforce Agreement (CWA) with the Alameda County Building Trades Council (BTC) and finding that the action is exempt from environmental review.

SUMMARY
In April 2015, the City Council directed staff to negotiate and execute a CWA with the BTC for the new main library. At City Council’sdirection, staff brought forward an item on February 23, 2016 that allowed for the discussion of creating a Citywide CWA that could apply to a broader scope of projects within the community. Staff received policy direction from the City Council at that meeting regarding how a Citywide CWA might be structured. Subsequently, staff negotiated a CWA with the BTC, which included an effective date of July 6, 2017. The Citywide CWA was effective for 3 years and with a number of term extensions, expires on June 30, 2025. Staff and the BTC were open to discussing any modifications and drafting an updated CWA. Over the past several months, staff continued working with BTC on several elements of the CWA and successfully negotiated and agreed to the changes for an updated CWA.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Community Workforce Agreement
CITY OF HAYWARD Printed on 6/12/2025Page 1 of 1
powered by Legistar™

Page 1 of 7 ends

DATE: June 17, 2025

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT Adopt a Resolution Authorizing the City Manager to Execute a n Updated Community Workforce Agreement with the Alameda County Building Trades Council and Finding that the Action is Exempt from Environmental Review

RECOMMENDATION

That the City Council adopts a resolution (Attachment II) authorizing the City Manager to execute a n updated Community Workforce Agreement (CWA) with the Alameda County Building Trades Cou ncil (BTC) and finding that the action is exempt from environmental review.

SUMMARY

In April 2015, the City Council directed staff to negotiate and execute a CWA with the BTC for the new main library. At City Council’s direction, staff brought forward an item on February 23, 2016 that allowed for the discussion of creating a Citywide CWA that could apply to a broader scope of projects within the community. Staff received policy direction from the City Council at that meeting regarding how a Citywide CWA might be structured.

Subsequently, staff negotiated a CWA with the BTC, which included an effective date of July 6, 2017. The Citywide CWA was effective for 3 years and with a number of term extensions, expires on June 30, 2025. Staff and the BTC were open to discussing any modifications and drafting an updated CWA. Over the past several months, staff continued working with BTC on several elements of the CWA and successfully negotiated and agreed to the changes for an updated CWA.

BACKGROUND

CWAs have been utilized in the construction industry to assure that labor issues related to major construction projects are minimized and to help accomplish local hiring and apprenticeship goals. CWAs are a type of collective pre-hire bargaining agreement between project managers or owners and organized labor that outline a variety of employment and other working conditions with the express purpose of providing peaceful settlement of labor disputes and grievances without work stoppages, strikes, or lockouts, thereby allowing for the timely and cost-effective completion of projects. It is noteworthy that there has never been a work stoppage or strike on any City projects in recent history.

Page 2 of 7 ends

In April 2015, the City Council directed staff to negotiate and execute a CWA with the BTC for the new main library.

That agreement included the following types of provisions:

 Requirements that the contractor and subcontractors on the project use local union hiring halls to hire trades workers for the projects;

 “Local Hire” provisions, encouraging the contractor to employ Hayward residents or Hayward Unified School District graduates;

 Requirements that all hired workers pay union dues and receive other benefit trust fund contributions;

 Management rights regarding employment procedures, including hiring, discipline, etc.;

 Grievance and arbitration procedures to allow for timely resolution of disputes;

 Standardized work rules and regulations; and

 Provisions governing requirements around apprenticeships.

At City Council’s direction, staff brought forward an item on February 23, 2016 that allowed for the discussion of creating a “Citywide” CWA that could apply to a broader scope of projects within the community. Staff received policy direction from the City Council at that meeting regarding how a Citywide CWA might be structured. Subsequently, staff negotiated a CWA with the BTC, which included an effective date of July 6, 2017. Below is a summary of the key elements of the final negotiated CWA:

1) The Citywide CWA applies to City projects where the construction cost of the project exceeds one million dollars ($1,000,000) based on the Engineer’s Estimate.

2) The Citywide CWA does not apply to private development projects or to projects awarded/managed by another third-party public agency where the City has contributed funding.

3) The City retains the ability to exempt certain specialty or unique projects from the CWA requirements as needed and upon approval by the City Council. Staff and the BTC would first meet in good faith to discuss the exemption. However, if the parties fail to reach a consensus, staff would be able to bring the project to the City Council for review and consideration.

Page 3 of 7 ends

4) During the duration of the Projects, the Union(s) and its members, agents, representatives and employees shall not incite, encourage, condone, or participate in any strike, walkout, slowdown, sit-down, stay-in, boycott, wobble, sympathy strike, picketing or other work stoppage or hand billing of any nature whatsoever, for any cause whatsoever (including jurisdictional disputes), and it is expressly agreed that any such action is a violation of the agreement.

5) A Joint Administrative Committee (JAC) comprised of two City representatives, two Union representatives, and one construction industry representative was established to review the implementation of the agreement and the progress of the projects. The JAC has the responsibility of monitoring the local hire and apprentice provisions of the agreement.

6) The agreement contains a goal that Hayward residents, and especially HUSD graduates, will perform a minimum of thirty (30%) percent of the hours worked on a craft-by-craft basis on the covered projects. Contractors shall make good faith efforts to reach the Local Hire Goal through the utilization of the Union’s hiring hall procedures. The Unions shall make good faith efforts in their recruiting and training of Hayward Resident workers and in their hiring hall procedures to facilitate the Local Hire Goal on the Projects. The parties shall cooperate to establish or support a pre- apprenticeship/internship program for HUSD graduates. If a Contractor fails to meet the Local Hire Goal or demonstrate a good faith effort, there will be a ten (10%) percent contract retention withheld until the Local Hire Goal is remedied.

Acceptable remedies include commitment to employ Hayward residents on non-City projects or acceptance of Hayward residents as new apprentices.

Contractors will be required under the agreement to hire one Hayward resident as a New Apprentice for the first one million dollars ($1,000,000) of construction costs with one additional apprentice for every five million dollars ($5,000,000) thereafter and with an assignment of a maximum of two New Apprentices to any one craft. A minimum of 50% of the applicable Apprentice hours on any project must be worked by the Hayward New Apprentice.

The BTC has also agreed to facilitate and encourage enrollment of at least ten (10) Hayward residents or HUSD graduates into State approved Labor-Management Apprenticeship programs during each year of the agreement term and facilitate placing them on a job site.

The Citywide CWA was negotiated with the BTC with an effective date of July 6, 2017 and a term of three years that expired on July 6, 2020. On January 26, 2021 the citywide CWA was extended to July 6, 2021, with an option for one six-month extension to December, 6, 2021. On April 19, 2022, the citywide CWA was extended to December 6, 2022. On December 6, 2022, the citywide CWA was extended to December 31, 2023. On December 5, 2023, staff requested extension of the current terms of the CWA to December 31, 2024 with

Page 4 of 7 ends

an option for one six-month extension to June 30, 2025 to allow time for staff and the BTC to discuss any modifications and draft an updated CWA.

DISCUSSION

On May 21, 2024, City Council approved the revised CWA and authorized the City Manager to execute the revised CWA; however, the revised CWA included revisions that were not fully agreed-to between the City and the BTC. One of those included the definition of “Local Resident” expanding the local hire goal beyond Hayward residents to other cities including Union City, San Leandro, Dublin, Pleasanton, Livermore, and Oakland. Another included redefining “Project” where the engineer’s estimate would include the project cost or the bid amount in determining the $1,000,000 threshold for the applicability of CWA on projects.

Since that time staff and the BTC continued to discuss several key provisions for an updated CWA. During this time, the term of the CWA was extended to allow time for negotiations to continue. Currently, the term ends June 30, 2025.

Over the past several months, staff continued working with BTC on several elements of the CWA and successfully negotiated and agreed to the changes for an updated CWA (Attachment III). Below are key changes:

Article 1.8 - Definitions
“District Graduate” means a person who has graduated from a Hayward Unified School District high school or adult education program, or who has received a G.E.D. from Hayward Unified School District.

Article 1.12 - Definitions
"Project" means City projects paid for in whole or in part by City funds, where the engineer’s estimate exceeds one million dollars ($1,000,000). The City shall not split, divide, or otherwise separate Projects or Construction Contracts for the purpose of avoiding application of this Agreement. The City and the BTC may mutually agree in writing to add additional projects or components to be covered by this Agreement. The term “Project” applies to each and all projects as defined in this section, whether used in the singular or plural herein.

Article 2.1 – Scope of Agreement
Parties: This Agreement applies to and is limited to all Contractors/Employers performing Construction Contracts on the Project (including subcontractors at any tier), and their successors and assigns, the City, the BTC, and the Unions signatory to this Agreement.

Article 2.3 – Scope of Agreement
Project Description: This Agreement shall govern the award of all of the Construction Contracts identified by the City as part of the Project. All Projects that are subject to this Agreement shall be identified as covered Projects in the agenda report to the City Council requesting the authorization to solicit bids. The JAC has the right to exempt projects under this Agreement upon discussion and mutual agreement between City staff and the Building Trades Council. If there is no agreement with respect to exempting a particular project, the

Page 5 of 7 ends

matter will be presented to City Council for decision. The City has the absolute right to combine, change, consolidate, suspend or cancel Construction Contract(s) or portions of Construction Contract(s) identified as part of the Projects; provided, however, that if such Construction Contract(s) or portion of Construction Contract(s) is thereafter reauthorized, this Agreement shall apply. Once a Construction Contract is Completed, it is no longer covered by this Agreement, except when a Contractor is directed to engage in repairs, warranty work or modifications required by its Construction Contract with the City.

Article 3.7 – Effect of Agreement
The provisions of this Agreement, including the Master Agreements incorporated herein by reference, shall apply to the work covered by this Agreement, notwithstanding the provisions of any other local, area and/or national agreements which may conflict with or differ from the terms of this Agreement. To the extent a provision of this Agreement conflicts with a Master Agreements, the provision of this Agreement shall prevail. Where a provision of a Master Agreements does not conflict with this Agreement, the provision of the Master Agreements shall apply.

Article 7.7 – Union Representation and Referral
A Sole Operator, as defined in this Agreement under Section 1.14, self-performing work on a covered Project shall not be required to request dispatch for themselves from the Union hall with jurisdiction over the Sole Operator's work unless the craft is covered under Operating Engineers Local 3 and as such shall agree with and execute Addendum C, Sole Operator Side Letter. However, if the Sole Operator hires any additional employees subsequent to starting work on a covered Project, the Sole Operator will be treated as the core employee in accordance with Section 7.8 below. Before hiring an employee(s) on the Project, the Sole Operator must request permission from the JAC through the Coordinator and provide evidence of compliance with CLSB and Workers Compensation requirements.

For purposes of this Agreement, Sole Operators performing construction trucking work will be exempt from trust fund obligations but must pay representational fees. All Sole Operators, including truckers, must sign this Agreement's Letter of Assent prior to starting work on a covered Project.

Article 7.10 – Union Representation and Referral
The parties agree to a goal that Hayward Residents, and especially District Graduates, will perform a minimum of thirty (30%) percent of the hours worked on the Projects (the “Local Hire Goal”). Contractor(s)/Employer(s) shall make good faith efforts to reach the Local Hire Goal through the utilization of the Union’s hiring hall procedures. Throughout the hiring process, priority will be given to Hayward Residents and/or District Graduates.

The Unions shall make good faith efforts in their recruiting and training of Hayward Resident workers and in their hiring hall procedures to facilitate the Local Hire Goal on the Projects. The parties shall cooperate to establish or support a pre- apprenticeship/internship program for District Graduates. If a Contractor/Employer fails to meet the Local Hire Goal or demonstrate a good faith effort, there will be a ten (10%) percent contract retention withheld until the Local Hire Goal is remedied. Acceptable remedies include: commitment to employ Hayward Residents on non-City projects or acceptance of Hayward Residents as new apprentices.

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Article 7.12 – Union Representation and Referral
It is the responsibility of Contractors/Employers to document all requested dispatches and the Union’s response. The Unions agree to use the Craft Dispatch Request Form for dispatch requests. Such documentation shall be provided to the City by the Contractor/Employer within ten (10) days of request by the City.

Article 18.3 – Term
This Agreement shall become effective on the day it is executed by the City and the BTC.

Prior to each five (5) year anniversary of the effective date of this Agreement, the City and the BTC shall meet to discuss proposed changes, if any, to the Agreement. Absent changes or termination, the Agreement will roll over for an additional five (5) years.

Environmental Review
This action is statutorily exempt from analysis under the California Environmental Quality Act (CEQA) for the reason that it is not a project. CEQA Guidelines, Section 15378(b)(5), states that a project does not include "Organization or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” CEQA review will be completed separately for individual Public Works’ projects subject to the Citywide CWA.

ECONOMIC IMPACT

There has been much debate over the years regarding the impacts of CWAs and their potential benefits (i.e., smoother management/labor relationships, increased local hiring, and improved pay and benefits to workers over and above that of a prevailing wage job).

On the other hand, the concerns include that any form of restrictions on contractors’ bids may result in fewer bids being received, thereby potentially higher costs.

Furthermore, as the purchasing power of $1M gets reduced over the years, thereby more projects are subjected to CWA, this could make it more difficult for non-union smaller, local contractors to bid on City projects.

Prior staff reports to City Council have provided detail regarding project cost implications.

FISCAL IMPACT

This item has no direct fiscal impact to the City’s General Fund.

STRATEGIC ROADMAP

This agenda item is a routine operational item that does not relate to any of the Strategic Initiatives.

SUSTAINABILITY FEATURES

This item has no sustainability features.

Page 7 of 7 ends

PUBLIC CONTACT

No public contact has been made related to this item.

NEXT STEPS

If the City Council adopts the attached resolution, the City Manager will execute the updated CWA between the City of Hayward and the BTC.

Prepared by: Dave Hung, Acting Deputy Director of Public Works

Recommended by: Alex Ameri, Director of Public Works

Approved by:

____________________________________________
Michael Lawson, J.D.

Acting City Manager

ATTACHMENT II

Page 1 of 2 ends

HAYWARD CITY COUNCIL

RESOLUTION NO. 25- ______

Introduced by Council Member

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAYWARD

AUTHORIZING THE CITY MANAGER TO EXECUTE A N UPDATED

COMMUNITY WORKFORCE AGREEMENT WITH THE ALAMEDA
COUNTY BUILDING TRADES COUNCIL ; AND FINDING THAT THE

ACTION IS EXEMPT FROM ENVIRONMENTAL REVIEW

WHEREAS, Community Workforce Agreem ents (CWA)s have been utilized in the construction industry to assure that labor issues related to major construction projects are minimized and to help accomplish local hiring and apprenticeship goals. CWAs are a type of collective pre-hire bargaining agreement between project managers or owners and organized labor that outline a variety of employment and other working conditions with the express purpose of providing peaceful settlement of labor disputes and grievances without work stoppages, strikes, or lockouts, thereby allowing for the timely and cost-effective completion of projects.; and

WHEREAS, In April 2015, the City Council directed staff to negotiate and execute a CWA with the Alameda County Building Trades Council (BTC) for the new main library; and

WHEREAS, on February 23, 2016, the City Council directed staff to pursue a Citywide CWA; and

WHEREAS, the Citywide CWA was negotiated with the BTC with an effective date of July 6, 2017 and a term of three years that expired on July 6, 2020; and

WHEREAS, by Resolution No. 21-013 on January 26, 2021 the citywide CWA was extended to July 6, 2021, with an option for one six-month extension to December, 6, 2021; and
WHEREAS, by Resolution No. 22-080 on April 19, 2022, the citywide CWA was extended to December 6, 2022; and

WHEREAS, by Resolution No. 22-293 on December 6, 2022, the citywide CWA was extended to December 31, 2023; and

WHEREAS, by Resolution No. 23-263 staff requests extension of the current terms of the CWA to December 31, 2024 with an option for one six-month extension to June 30, 2025; and

Page 2 of 2 ends

WHEREAS, on May 21, 2024, City Council approved the revised CWA and authorized the City Manager to execute the revised CWA; however, the revised CWA included revisions that were not agreed-to between the City and the BTC; and

WHEREAS, over the past several months, staff continued working with BTC on several elements of the CWA and successfully negotiated and agreed to the changes for an updated CWA.

NOW THEREFORE BE IT RESOLVED, that the City Council approves the updated Community Workforce Agreement and the City Manager is authorized to execute the updated Community Workforce Agreement with the Alameda County Building Trades Council and any other documents necessary to finalize and effectuate the updated Agreement, in a form approved by the City Attorney.

BE IT FURTHER RESOLVED THAT the City Council finds that this action is statutorily exempt from analysis under the California Environmental Quality Act (CEQA) for the reason that it is not a project. CEQA Guidelines, Section 15378(b)(5), states that a project does not include "Organization or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” CEQA review will be completed separately for individual Public Works’ projects subject to the Citywide CWA.

IN COUNCIL, HAYWARD, CALIFORNIA, _______________________, 2025

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

Community Workforce Agreement
for the City of Hayward

1 COMMUNITY WORKFORCE AGREEMENT

FOR THE CITY OF HAYWARD

INTRODUCTION/FINDINGS
This Community Workforce Agreement is entered into this ____ day of _______________, 20____, by and between the City of Hayward (hereinafter the “City”), together with contractors and subcontractors of all tiers, who shall become signatory to this Agreement by signing the “Agreement to be Bound” (Addendum A) (referred to herein as the “Contractor(s)/Employer(s)”), and the Building and Construction Trades Council of Alameda County (referred to herein as the “Council”) and the labor organizations that have executed this Agreement (referred to collectively herein as the “Union(s)”).

The purpose of this Agreement is to promote the efficiency of construction operations for the City of Hayward through the use of skilled labor resulting in quality construction outcomes, and to provide for the peaceful settlement of labor disputes and grievances without strikes or lockouts, thereby promoting the public interest in assuring the timely and economical completion of the Project(s) covered by this Agreement, while promoting diversity in the construction trades and helping to increase training and employment opportunities for graduates of the Hayward Unified School District (“HUSD”) and Hayward residents in the construction trades through local hire, apprenticeship and pre−apprentice programs.

WHEREAS, the timely and successful completion of the Project is of the utmost importance to meet the needs of the City and avoid increased costs resulting from delays in construction; and
WHEREAS, large numbers of workers of various skills will be required in the performance of construction work on the Project and will be represented by the Unions who are signatory to this Agreement and employed by the Contractors and subcontractors who are also signatory to this Agreement; and
WHEREAS, the use of skilled labor on construction work increases the safety of construction projects as well as the quality of completed work; and WHEREAS, it is recognized that on a Project of this magnitude with multiple contractors and bargaining units on the job site at the same time over an extended period of time, the potential for work disruption may be substantial without an overriding commitment to maintain continuity of work; and
WHEREAS, the interests of the general public, the City, the Unions, and the Contractors/Employers would be best served if the construction work proceeded in an orderly manner without disruption because of strikes, sympathy strikes, work stoppages, picketing, lockouts, slowdowns or other interferences with work; and WHEREAS, the Contractors/Employers and the Unions desire to mutually establish and stabilize wages, hours and working conditions for the workers employed on the Project and to encourage close cooperation among the Contractors/Employers and the Unions so that a satisfactory, continuous and harmonious relationship will exist; and

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

2 WHEREAS, the parties agree that one of the primary purposes of this Agreement is to avoid the tensions that might arise on the Project if Union and non-union workers of different employers were to work side by side on the Project, potentially leading to labor disputes that could delay completion of the Project; and
WHEREAS, this Agreement is not intended to replace, interfere with, abrogate, diminish or modify existing local or national collective bargaining agreements in effect during the duration of the Project, insofar as a legally binding agreement exists between the Contractors/Employers and the Unions, except to the extent that the provisions of this Agreement are inconsistent with said collective bargaining agreements, in which event the provisions of this Agreement shall prevail; and
WHEREAS, the City places high priority upon the development of comprehensive programs for the recruitment, training and employment of local area residents and military veterans, and recognizes the ability of local pre-apprenticeship and apprenticeship programs to provide meaningful and sustainable career pathways in the construction industry; and WHEREAS, the contract(s) for construction work on the Project will be awarded in accordance with the applicable provisions of the California State Public Contract Code and all state, local and federal laws; and
WHEREAS, the parties to this Agreement pledge their full good faith and trust to work toward the mutually satisfactory completion of the Project.

NOW, THEREFORE, IT IS AGREED BETWEEN AND AMONG THE PARTIES HERETO, AS FOLLOWS:

ARTICLE I

DEFINITIONS
"Agreement" means this Community Workforce Agreement.
"Agreement to be Bound" means the agreement (attached hereto as Addendum A) that shall be executed by each and every Contractor/Employer as a condition of working on the Project.
"City" means the City of Hayward and its governing board, officers, agents and employees, including managerial personnel.
"Completion" means that point at which there is Final Acceptance by the City of a Construction Contract and the City has filed a Notice of Completion. For purposes of this definition, "Final Acceptance" means that point in time at which the City has determined upon final inspection that the work has been completed in all respects and all required contract documents, contract drawings, warranties, certificates, manuals and data have been submitted and training completed in accordance with the contract documents and the City has executed a written acceptance of the work.

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

3 “Construction Contract” means the public works or improvement contract(s) (including design-bid, design-build, lease-leaseback or other contracts under which construction of the Project is done) awarded by the City that are necessary to complete the Project. "Contractor(s)/Employer(s)" or "Contractor(s)" or "Employer(s)" means any individual, firm, partnership or corporation (including the prime contractor, general contractor, construction manager, project manager, design-build entity, lease-leaseback entity or equivalent entity), or combination thereof, including joint ventures, and their successors and assigns, that is an independent business enterprise and enters into a contract with the City with respect to the construction of any part of the Project, and all contractors and subcontractors of any tier. “Council” means the Building and Construction Trades Council of Alameda County.
“District Graduate” means a person who has graduated from a Hayward Unified School District high school or adult education program, or who has received a G.E.D. from Hayward Unified School District.
“Hayward Resident” means any individual who at any time during the Projects’ construction can certify through a utility bill or other similar means acceptable to the parties that the individual resides within the boundaries of the City of Hayward. “Master Agreement” or “Schedule A” means the Master Collective Bargaining Agreement(s) of each craft Union signatory hereto.
“New Apprentice” means an individual who is: (i) being sponsored into or has been enrolled in an apprenticeship program currently registered with the State of California’ s Division of Apprenticeship Standards; and (ii) has worked no more than twelve (12) months in the applicable craft or trade.
"Project" means City projects paid for in whole or in part by City funds, where the engineer’s estimate exceeds one million dollars ($1,000,000). The City shall not split, divide, or otherwise separate Projects or Construction Contracts for the purpose of avoiding application of this Agreement. The City and the Council may mutually agree in writing to add additional projects or components to be covered by this Agreement. The term “Project” applies to each and all projects as defined in this section, whether used in the singular or plural herein. “Project Manager” means the person(s) or entity(ies) designated by the City to oversee all phases of construction on the Project and the implementation of this Agreement. “Sole Operator” means a licensed contractor with no employees and exempted by the Contractor’s State License Board from the requirement to carry workers’ compensation insurance. (See: California Business and Professions Code section 7125.) “Veteran” means a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable. “Union” or “Unions” means the Building and Construction Trades Council of Alameda County and the labor organizations identified on the attached signature page that

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

4 become signatory to this Agreement, acting on their own behalf and on behalf of their respective affiliates and member organizations whose names are subscribed hereto and who have through their officers executed this Agreement.

ARTICLE II

SCOPE OF AGREEMENT

2.1 Parties: This Agreement applies to and is limited to all Contractors/Employers performing Construction Contracts on the Project (including subcontractors at any tier), and their successors and assigns, the City, the Council, and the Unions signatory to this Agreement.

2.2 Applicability: This Agreement governs all Construction Contracts awarded on the Project. For purposes of this Agreement, Construction Contracts shall be considered Completed as set forth in Section 1.4, except when the City directs a Contractor to engage in repairs, warranty work, modifications, or punch list work under a Construction Contract or when a Contractor performs work under a change order for a Construction Contract.

2.3 Project Description: This Agreement shall govern the award of all of the Construction Contracts identified by the City as part of the Project. All Projects that are subject to this Agreement shall be identified as covered Projects in the agenda report to the City Council requesting the authorization to solicit bids. The JAC has the right to exempt projects under this Agreement upon discussion and mutual agreement between City staff and the Building Trades Council. If there is no agreement with respect to exempting a particular project, the matter will be presented to City Council for decision. The City has the absolute right to combine, change, consolidate, suspend or cancel Construction Contract(s) or portions of Construction Contract(s) identified as part of the Projects; provided, however, that if such Construction Contract(s) or portion of Construction Contract(s) is thereafter reauthorized, this Agreement shall apply. Once a Construction Contract is Completed, it is no longer covered by this Agreement, except when a Contractor is directed to engage in repairs, warranty work or modifications required by its Construction Contract with the City.

2.4 Covered Work: This Agreement covers, without limitation, all site preparation, surveying, construction, alteration, demolition, installation, improvement, painting or repair of buildings, structures and other works, and related activities for the Project that is within the craft jurisdiction of one of the Unions and that is directly or indirectly part of the Project, including, without limitation to the following examples, geotechnical and exploratory drilling, soils and materials testing and inspection, temporary HVAC, landscaping and temporary fencing, pipelines (including those in linear corridors built to serve the Project), pumps, pump stations, start-up, modular furniture installation, and final clean-up. Covered Work includes work done for the Project in temporary yards, dedicated sites, or areas adjacent to the Project, and at any on-site or off-site batch plant constructed to supply materials to the Project.

2.3.1 This Agreement applies to any start-up, calibration, commissioning, performance testing, repair, maintenance, and operational revisions to systems and/or subsystems for the Project performed after Completion, unless performed by City employees.

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

5 2.3.2 This Agreement covers all on-site fabrication work over which the City, Contractor(s)/Employer(s) or subcontractor(s) possess the right of control (including work done for the Project in any temporary yard or area established for the Project). This Agreement also covers any off-site work, including fabrication, that is traditionally performed by the Unions and is directly or indirectly part of the Project, provided such work is covered by a Master Agreement or local addenda to a national agreement of the applicable Union(s).

2.3.3 Except for the delivery of supplies, equipment or materials that are stockpiled for later use, this Agreement covers all construction trucking work, including the hauling and delivery of ready-mix, asphalt, aggregate, sand, soil or other fill or similar material that is directly incorporated into the construction process as well as the off-hauling of soil, sand, gravel, rocks, concrete, asphalt, excavation materials, construction debris and excess fill, material and/or mud. Contractor(s)/Employer(s), including brokers, of persons providing construction trucking work shall provide certified payroll records to the City within ten (10) days of written request or as required by the bid specifications.

2.3.4 Work covered by this Agreement within the following craft jurisdictions shall be performed under the terms of their National Agreements as follows: the National Transient Lodge (NTL) Articles of Agreement, the National Stack/Chimney Agreement, the National Cooling Tower Agreement, the National Agreement of Elevator Constructors, and any instrument calibration work and loop checking shall be performed under the terms of the UA/IBEW Joint National Agreement for Instrument and Control Systems Technicians, with the exception that Articles IV, XII and XIII of this Agreement shall apply to such work.

2.3.5 The on-site installation or application of all items shall be performed by the craft having jurisdiction over such work as set forth under the provisions of this Agreement; provided, however, that the installation of specialty items which may be furnished by the Contractor shall be performed by construction persons employed under this Agreement who may be directed by other personnel in a supervisory role; further, provided, however, in limited circumstances requiring special knowledge of the particular item(s), work may be performed by construction persons of the vendor or other companies where necessary to protect a manufacturer’s warranty, provided, however, that the vendor or manufacturer has demonstrated by an enumeration of specific tasks that the work cannot be performed by craft workers employed under this Agreement. The issue of whether it is necessary to use construction persons of the vendor or other companies shall be subject to the grievance and arbitration clause of this Agreement; however, prior to filing a grievance for an alleged violation of this provision, the applicable parties shall meet and confer to informally resolve the dispute. Work subject to manufacturer’s warranty shall be discussed during the pre-job conference.

2.4 Exclusions: The following shall be excluded from the scope of this Agreement.

2.4.1 This Agreement shall not apply to work performed by the City’s own employees as permitted by the Public Contract Code.

2.4.2 This Agreement shall not apply to a Contractor/Employer’s non-construction craft executives, managerial employees, administrative personnel, and supervisors above the level of general foreman (unless covered by a Master Agreement).

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

6 2.4.3 This Agreement shall not apply to any non-Project work performed on or near or leading to the site of work covered by this Agreement that is undertaken by state, county, city, or other governmental bodies or their contractors. Work performed by public or private utilities including all electrical utility, voice-data-video, and security installation work ahead of and up to the electrical service entry connection or the main point of entry into the building shall be excluded. All electrical utility, voice-data-video, and security installation work performed after the electrical utility service entrance or the main point of entry shall be Covered Work.

Additionally, all contracted work performed ahead of the service entrance connection and main point of entry that is inside the property line and provides for access to the building via a conduit or series of conduits shall be Covered Work.

2.4.4 This Agreement shall not apply to the off-site maintenance of leased equipment and on-site supervision of such work.

2.4.5 Termination, Suspension and/or Delay of Work: It is understood and agreed that the City, at its sole option, may change, terminate, delay and/or suspend any and all portions of the covered work at any time. Furthermore, the City may prohibit some or all work on certain days or during certain hours of the day to comply with applicable codes, laws or regulations, permits or to accommodate the ongoing operations of the City’s facilities and/or to mitigate the effect of the ongoing Projects’ work on the businesses and residents in the neighborhood of the Project sites; and/or require such other operational or schedule changes that may be deemed necessary, in its sole judgment, to effectively maintain the primary purpose of the City’s facilities and to remain a good neighbor to the residents and businesses in the area of the Projects. In order to permit the Contractors and Unions to make appropriate scheduling plans, the City will provide the affected Contractor and Union(s) with reasonable notice of any changes it requires pursuant to this section.

2.4.6 Public Contract Code Section 2500(a): This Agreement is adopted in accordance with the taxpayer protection provisions of section 2500(a) of the California Public Contract Code.

ARTICLE III

EFFECT OF AGREEMENT

3.1 By executing this Agreement, the Council, the Unions and the City agree to be bound by each and all of the provisions of the Agreement.

3.2 By accepting the award of work under a Construction Contract for the Project, whether as a Contractor or subcontractor thereunder, all Contractors/Employers agree to be bound by each and every provision of this Agreement and agree to evidence their acceptance prior to the commencement of work by executing the Agreement to be Bound in the form attached hereto as Addendum A.

3.3 At the time that any Contractor/Employer enters into a subcontract with any subcontractor providing for the performance of work under a Construction Contract, the Contractor/Employer shall provide a copy of this Agreement to said subcontractor and shall require the subcontractor, as a condition of accepting the award of a construction subcontract, to

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

7 agree in writing, by executing the Agreement to be Bound, to be bound by each and every provision of this Agreement prior to the commencement of work. The obligations of a Contractor may not be evaded by subcontracting. If the subcontractor refuses to execute the Agreement to be Bound, then such subcontractor shall not be awarded a Construction Contract on the Project.

3.4 (a) With regard to any Contractor that is independently signed to any Master Agreement, this Community Workforce Agreement shall in no way supersede or prevent the enforcement of any subcontracting clause contained in such Master Agreement, except as specifically set forth in subsection (b) of this Section. Any such subcontracting clause in a Master Agreement shall remain and be fully enforceable between each craft union and its signatory employers, and no provision of this Community Workforce Agreement shall be interpreted and/or applied in any manner that would give this Community Workforce Agreement precedence over subcontracting obligations and restrictions that exist between craft unions and their respective signatory employers under a Master Agreement, except as specifically set forth in subsection (b) of this Section 3.4. To the extent that the provisions of this Agreement are inconsistent with any other provisions contained in a Master Agreement, the provisions of this Agreement shall prevail.
(b) If a craft union (hereafter "Aggrieved Union") believes that an assignment of work on this Project has been made improperly by a contractor or subcontractor, even if that assignment was as a result of another craft union's successful enforcement of the subcontracting clause in its Master Agreement, as permitted by subsection (a) of this Section 3.4, the Aggrieved Union may submit a claim under the jurisdictional resolution process contained in Article 12 of this Community Workforce Agreement, and the decision rendered as part of that process shall be enforceable to require the contractor or subcontractor that made the work assignment to assign that work prospectively to the Aggrieved Union. An award made to a craft union under the subcontracting clause of its Master Agreement, as permitted pursuant to Section 3.4(a) of this Article, shall be valid and fully enforceable by that craft union unless it conflicts with a jurisdictional award made pursuant to this Community Workforce Agreement. If the award made under the Master Agreement conflicts with the jurisdictional award, the award of any damages under the former shall be null and void ab initio.

3.5 This Agreement shall only be binding on the signatory parties hereto, and their successors and assigns, and shall not apply to the parents, affiliates, subsidiaries, or other ventures of any such party. Each Contractor shall alone be liable and responsible for its own individual acts and conduct and for any breach or alleged breach of this Agreement, except as otherwise provided by law or the applicable Master Agreement. Any dispute between the Union(s) and the Contractor(s) with respect to compliance with this Agreement shall not affect the rights, liabilities, obligations and duties between the Union(s) and other Contractor(s) party to this Agreement.

3.6 It is mutually agreed by the parties that any liability by a Union signatory to this Agreement shall be several and not joint. Any alleged breach of this Agreement by a Union shall not affect the rights, liabilities, obligations and duties between the Contractor(s) and the other Union(s) party to this Agreement.

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

8 3.7 The provisions of this Agreement, including the Master Agreements incorporated herein by reference, shall apply to the work covered by this Agreement, notwithstanding the provisions of any other local, area and/or national agreements which may conflict with or differ from the terms of this Agreement. To the extent a provision of this Agreement conflicts with a Master Agreements, the provision of this Agreement shall prevail. Where a provision of a Master Agreements does not conflict with this Agreement, the provision of the Master Agreements shall apply.

ARTICLE IV

WORK STOPPAGES, STRIKES, SYMPATHY STRIKES AND LOCKOUTS

4.1. The Unions, the City, and the Contractor(s)/Employer(s) covered by this Agreement agree that for the duration of the Project:

4.1.1 There shall be no strikes, sympathy strikes, work stoppages, picketing, handbilling or otherwise advising the public that a labor dispute exists, or slowdowns of any kind, for any reason, by the Unions or employees employed on the Project, at the job site of the Project or any other facility of City because of a dispute on the Project. Disputes arising between the Unions and Contractor(s)/ Employer(s) on other City projects are not governed by the terms of the Agreement or this Article.

4.1.2 There shall be no lockout of any kind by a Contractor/Employer of workers employed on the Project.

4.1.3 If a Master Agreement expires before the Contractor/Employer completes the performance of work under a Construction Contract and the Union or Contractor/Employer gives notice of a demand for a new or modified Master Agreement, the Union agrees that it will not strike on work covered by this Agreement and the Union and the Contractor/Employer agree that the expired Master Agreement will continue in full force and effect for work covered under this Agreement until a new or modified Master Agreement is reached. If the new or modified Master Agreement provides that any terms of the Master Agreement shall be retroactive, the Contractor/ Employer agrees to comply with any retroactive terms of the new or modified Master Agreement that are applicable to any employee(s) on the Project during the interim, with retroactive payment due within seven (7) calendar days of the effective date of the new or modified Master Agreement.

4.1.4 In the case of nonpayment of wages or trust fund contributions on the Project, the Union shall give the City and the Contractor/Employer three (3) business days’ notice when nonpayment of trust fund contributions has occurred, and one (1) business day’s notice when nonpayment of wages has occurred or when paychecks being tendered to a financial institution normally recognized to honor such paychecks will not honor such paycheck, of the intent to withhold labor from the Contractor/Employers’ or their subcontractor's workforce, during which time the Contractor/Employer may correct the default. In this instance, a Union's withholding of labor (but not picketing) from a Contractor/Employer who has failed to pay its fringe benefit contributions or failed to meet its weekly payroll shall not be considered a violation of this Article.

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

9 4.1.5 Notification: If the City or any Contractor contends that any Union has violated this Article, it will so notify in writing the Senior Executive of the Council and the Senior Executive of the Union, setting forth the facts alleged to violate the Article, prior to instituting the expedited arbitration procedure set forth below. The Council will immediately use its best efforts to cause the cessation of any violation of this Article. The leadership of the Union will immediately inform the workers of their obligations under this Article. A Union complying with this obligation shall not be held responsible for the unauthorized acts of employees it represents.

4.2 Expedited Arbitration: Any party to this Agreement shall institute the following procedure, prior to initiating any other action at law or equity, when a breach of this Article is alleged to have occurred.

4.2.1 A party invoking this procedure shall notify Robert Hirsch, as the permanent arbitrator, or Barry Winograd, as the alternate arbitrator, under this procedure. In the event the permanent arbitrator is unavailable at any time, the alternate will be contacted. If neither is available, the parties shall select the arbitrator from the list in Section 12.4. Notice to the arbitrator shall be by the most expeditious means available, with notice by email and telephone to the City, the involved Contractor, and the party alleged to be in violation, and to the Council and involved local Union if a Union is alleged to be in violation.

4.2.2 Upon receipt of said notice, the City will contact the permanent arbitrator named above, or the alternate if the permanent arbitrator is not available, who will attempt to convene a hearing within twenty-four (24) hours if it is contended that the violation still exists.

4.2.3 The arbitrator shall notify the parties by email and telephone of the place and time for the hearing. Said hearing shall be completed in one session, which, with appropriate recesses at the arbitrator's discretion, shall not exceed twenty-four (24) hours unless otherwise agreed upon by all parties. A failure of any party to attend said hearings shall not delay the hearing of evidence or the issuance of an award by the arbitrator.

4.2.4 The sole issue at the hearing shall be whether or not a violation of Section

4.1 of the Agreement has occurred. The arbitrator shall have no authority to consider any matter of justification, explanation or mitigation of such violation or to award damages, which issue is reserved for court proceedings, if any. The award shall be issued in writing within three (3) hours after the close of the hearing, and may be issued without a written opinion. If any party desires a written opinion, one shall be issued within fifteen (15) calendar days, but the parties shall not delay compliance with or enforcement of the award due to the issuance of a written opinion. The arbitrator may order cessation of the violation of this Article, and the arbitrator’s award shall be served on all parties by hand or registered mail upon issuance. Should a party found in violation of this Article fail to comply with the arbitrator's award ordering the party to cease the violation, the party in violation shall pay to the affected party as liquidated damages the sum of ten thousand dollars ($10,000.00) per shift for which it failed to comply, or portion thereof, until such violation is ceased. The arbitrator shall retain jurisdiction to resolve any disputes regarding the liquidated damages claimed under this section.

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

10 4.2.5 The arbitrator’s award may be enforced by any court of competent jurisdiction upon the filing of this Agreement and all other relevant documents referred to above in the following manner. The party filing such enforcement proceedings shall give written notice to the other party. In a proceeding to obtain a temporary order enforcing the arbitrator's award as issued under this Article, all parties waive the right to a hearing and agree that such proceeding may be ex parte. However, such agreement does not waive any party's right to seek or participate in a hearing for a final order of enforcement. Any court order enforcing the arbitrator's award shall be served on all parties by hand or delivered by certified mail.

4.2.6 Any rights created by statute or law governing arbitration proceedings inconsistent with the above procedure, or which interfere with compliance with the above procedure, are waived by the parties.

4.2.7 The fees and expenses of the arbitrator shall be divided equally between the party instituting the arbitration proceedings provided in this Article and the party alleged to be in breach of its obligation under this Article.

4.2.8 Should either the permanent or the alternate arbitrator identified above no longer work as a labor arbitrator, the City and the Council shall mutually agree to a replacement.

ARTICLE V

PRE-JOB CONFERENCES

5.1 Timing: The Project Manager shall convene and conduct a pre-job conference with the Unions and the representatives of all involved Contractors/Employers, who shall be prepared to announce craft assignments and discuss in detail the scope of work and the other issues set forth below. The pre-job conference shall be held at a location and time mutually agreeable to the Council. Upon mutual agreement of the applicable parties, the pre-job conference may be conducted via Microsoft Teams, Zoom, or another teleconferencing platform.

The pre-job conference shall be conducted at least fourteen (14) calendar days prior to:
(a) The commencement of any Project work, and
(b) The commencement of Project work on any subsequently awarded Construction Contract.

5.2 The pre-job conference shall be attended by a representative of each participating Contractor and each affected Union, and the Council and City may attend at their discretion.

5.3 The pre-job conference shall include but not be limited to the following subjects:
(a) A listing of each Contractor’s scope of work;
(b) The craft assignments;
(c) The estimated number of craft workers required to perform the work; (d) Transportation arrangements;

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

11 (e) The estimated start and completion dates of the work; and (f) Discussion of pre-fabricated materials.

5.4 Review Meetings: The City and the Council shall have the right to call a meeting of the appropriate parties to ensure the terms of this Agreement are being fulfilled.

ARTICLE VI

NO DISCRIMINATION

6.1 The Contractors/Employers and the Unions agree to comply with all anti- discrimination provisions of federal, state, and local law, to protect employees and applicants for employment, on the Project.

ARTICLE VII

UNION REPRESENTATION AND REFERRAL

7.1 The Contractors/Employers recognize the Unions as the sole bargaining representative of all craft employees performing Covered Work under this Agreement, and all such employees must be represented by a Union for the duration of their employment on the Project.

7.2 The Contractors/Employers shall make and transmit all deductions for Union dues, fees, and assessments that have been authorized by employees in writing in accordance with the applicable Master Agreement. This Agreement does not require any employee of a non- Union contractor to join a Union or to pay dues or fees to a Union as a condition of working on the Project; however, nothing in this Article is intended to supersede the requirements of the applicable Master Agreements as to Contractors/Employers signatory to such Master Agreements and as to employees of those Contractors/Employers who are performing Covered Work.

7.3 Authorized representatives of the Unions shall have access to the Project whenever work covered by this Agreement is being, has been, or will be performed on the Project.

7.4 Contractor(s)/Employer(s) performing construction work on the Project shall, in filling craft job requirements, utilize and be bound by the registration facilities and referral systems established or authorized by the Unions signatory hereto. The Contractor(s)/Employer(s) shall have the right to reject any applicant referred by the Union(s), in accordance with the applicable Master Agreement.

7.5 Contractor(s)/Employer(s) shall have the unqualified right to select and hire directly all supervisors above the level of general foreman it considers necessary and desirable, without such persons being referred by the Union(s), unless such craft construction employee is covered by a Master Agreement.

7.6 In the event that referral facilities maintained by the Union(s) are unable to fill the requisition of a Contractor/Employer for employees within a forty-eight (48) hour period (Saturdays, Sundays and Holidays excluded) after such requisition is made by the

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

12 Contractor/Employer, the Contractor/Employer shall be free to obtain the worker(s) from any source. A Contractor/Employer who hires a worker(s) pursuant to this section shall immediately provide the appropriate Union with the name and address of such worker(s) and shall immediately direct such worker(s) to the appropriate Union hiring hall to be referred for work on the Project.

7.7 A Sole Operator, as defined in this Agreement under Section 1.14, self- performing work on a covered Project shall not be required to request dispatch for themselves from the Union hall with jurisdiction over the Sole Operator's work unless the craft is covered under Operating Engineers Local 3 and as such shall agree with and execute Addendum C, Sole Operator Side Letter. However, if the Sole Operator hires any additional employees subsequent to starting work on a covered Project, the Sole Operator will be treated as the core employee in accordance with Section 7.8 below. Before hiring an employee(s) on the Project, the Sole Operator must request permission from the JAC through the Coordinator and provide evidence of compliance with CLSB and Workers Compensation requirements. For purposes of this Agreement, Sole Operators performing construction trucking work will be exempt from trust fund obligations but must pay representational fees. All Sole Operators, including truckers, must sign this Agreement's Letter of Assent prior to starting work on a covered Project.

7.8 In the event that a Contractor/Employer has its own core employees, the Contractor/Employer may request by name, and the local union will honor, referral of persons who demonstrate the following qualifications:
(1) Possess any license and/or certifications required by state or federal law for the Project work to be performed; and

(2) Have worked a total of at least one thousand (1,000) hours in the construction craft during the prior three (3) years; and

(3) Were on the Contractor/Employer’s active payroll for at least sixty (60) days out of the one hundred and eighty (180) calendar days prior to the contract award; and

(4) Have the ability to perform safely the basic functions of the applicable trade.

(5) Are Hayward Residents or District Graduates.

7.9 The Union will refer to such Contractor/Employer one journeyperson employee from the hiring hall out-of-work list for the affected trade or craft, and will then thereafter refer one of such Contractor/Employer’s “core” employees as a journeyperson and shall repeat the process, one and one, until such Contractor/Employer’s crew requirements are met or until such Contractor(s)/Employer(s) has hired no more than five (5) “core” employees, whichever occurs first. Thereafter, all additional employees in the affected trade or craft shall be hired exclusively from the hiring hall out-of-work lists(s). For the duration of the Contractor/Employer’s work, the ratio shall be maintained and when the Contractor/Employer’s workforce is reduced, employees

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

13 shall be reduced in the same ratio of core employees to hiring hall referrals as was applied in the initial hiring. Contractor(s)/Employer(s) signatory to a Master Agreement with Union(s) signatory hereto shall be bound to use the hiring hall provisions contained in the relevant collective bargaining agreement of the affected Union(s), and nothing in the referral provisions of this Agreement shall be construed to supersede the local hiring hall provisions of the Master Agreement, as they relate to such Contractor(s)/Employer(s). Any exceptions requested to this process must be referred to the JAC for review.

7.10 The parties agree to a goal that Hayward Residents, and especially District Graduates, will perform a minimum of thirty (30%) percent of the hours worked on the Projects (the “Local Hire Goal”). Contractor(s)/Employer(s) shall make good faith efforts to reach the Local Hire Goal through the utilization of the Union’s hiring hall procedures. Throughout the hiring process, priority will be given to Hayward Residents and/or District Graduates. The Unions shall make good faith efforts in their recruiting and training of Hayward Resident workers and in their hiring hall procedures to facilitate the Local Hire Goal on the Projects. The parties shall cooperate to establish or support a pre-apprenticeship/internship program for District Graduates. If a Contractor/Employer fails to meet the Local Hire Goal or demonstrate a good faith effort, there will be a ten (10%) percent contract retention withheld until the Local Hire Goal is remedied. Acceptable remedies include: commitment to employ Hayward Residents on non-City projects or acceptance of Hayward Residents as new apprentices.

7.11 Contractors/Employers that have employed a Hayward Resident for up to six (6) months preceding the start of the Project for a minimum of at least one hundred (100) hours per month who has the ability to perform safely the basic functions of the applicable trade may receive credit for fifty (50%) percent of those hours towards the Local Hire Goal. A Contractor/Employer may also receive credit for fifty (50%) percent of the documented hours performed by Hayward Residents on non-City projects, when such hours are concurrent with the Contractor/Employer’s work on the Project. The maximum total combined credit that can be applied under this section is half of the Local Hire Goal.

7.12 It is the responsibility of Contractors/Employers to document all requested dispatches and the Union’s response. The Unions agree to use the Craft Dispatch Request Form (attached hereto as Addendum B) for dispatch requests. Such documentation shall be provided to the City by the Contractor/Employer within ten (10) days of request by the City.

ARTICLE VIII

WAGES AND BENEFITS

8.1 The Contractors/Employers agree to pay contributions to the vacation, pension and/or other deferred compensation plan, apprenticeship, worker protection and assistance, and health benefit funds established by the applicable Master Agreement(s) for each hour worked on the Project, in the amounts designated in the applicable Master Agreement(s).

8.2 By signing this Agreement, the Contractors/Employers adopt and agree to be bound by the written terms of the legally established Trust Agreements described in Section 8.1, which may from time to time be amended, specifying the detailed basis upon which payments are to be made into, and benefits paid out of, such Trust Funds. The Contractors/Employers

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

14 authorize the parties to such local Trust Agreements to appoint trustees and successor trustees to administer the Trust Funds and hereby ratify and accept the trustees so appointed as if they were appointed by the Contractors/Employers. The Contractors/Employers agree to execute a separate subscription agreement(s) when such Trust Fund(s) requires such document(s).

8.3 Wages, Hours, Terms and Conditions of Employment: The wages, hours and other terms and conditions of employment on the Project shall be governed by the Master Agreement of the respective craft, to the extent such Master Agreement is not inconsistent with this Agreement. Where a subject is covered by the Master Agreement and not covered by this Agreement, the Master Agreement will prevail. When a subject is covered by both the Master Agreement and this Agreement, to the extent there is any inconsistency, this Agreement will prevail.

8.4 Holidays: Holidays shall be as set forth in the applicable Master Agreement.

8.5 Work on Fire Sprinkler Systems: All inspections on a Fire Sprinkler System shall be performed by an ASSE 15000 certified Sprinkler Fitter who is registered with the Office of the California State Fire Marshall. All testing and/or maintenance performed on any Fire Sprinkler System shall be performed by an individual who has graduated from a state-approved apprenticeship program. All apprentices working on fire protection systems shall be registered with a state-approved apprenticeship program.

ARTICLE IX

JOINT ADMINISTRATIVE COMMITTEE

9.1 The parties to this Agreement shall establish a five (5) person Joint Administrative Committee. This Committee shall be comprised of two (2) representatives selected by the City; two (2) representatives selected by the Unions; and one (1) industry representative mutually agreed to by the parties. Each representative shall designate an alternate who shall serve in his or her absence for any purpose contemplated by this Agreement. A quorum of the Joint Administrative Committee shall consist of three members, comprising at least one representative from the City and one representative from the Building Trades Council.

9.2 The Joint Administrative Committee shall meet as required, but not less than once each quarter, to review the implementation of the Agreement and the progress of the Projects.

Any question by any party to the Agreement regarding the meaning, interpretation or application of the provisions of this Agreement shall be referred directly to the Joint Administrative Committee for review and recommendation. The Joint Administrative Committee will also have the responsibility of monitoring the provisions in Article VII and X.

ARTICLE X

APPRENTICES

10.1 Recognizing the need to develop adequate numbers of competent workers in the construction industry, including on public works projects, the Contractors/Employers shall employ apprentices from a California state-approved Joint Apprenticeship Training Program in

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

15 their respective crafts, to perform such work as is within their capabilities and that is customarily performed by the craft in which they are indentured.

10.2 Apprentice ratios will be in compliance with the provisions of the California Labor Code and the applicable state prevailing wage determination.

10.3 Consistent with the Master Agreements, there shall be no restriction on the utilization of apprentices in performing the work of their craft provided they are properly indentured and supervised.

10.4 Community Workforce Partnerships: The parties recognize the need to build within the City a pipeline to careers in the construction industry. Such efforts would serve the parties’ mutual goals of providing career opportunities and of developing adequate numbers of competent workers in the construction industry. In furtherance of these goals, the parties agree to work together in good faith, and in partnership with the Construction Trades Workforce Initiative (“CTWI”), and in conjunction with other interested City community-based organizations, to identify and develop an initiative or multiple initiatives to connect Hayward Residents and District Graduates with careers in the Building and Construction Trades, with a particular focus on providing opportunities to disadvantaged individuals.

10.5 Contractor(s)/Employer(s) are required to hire one Hayward Resident as a New Apprentice for the first 1 million dollars ($1,000,000) of construction costs with one additional apprentice for every $5 million dollars ($5,000,000) thereafter (capped at 2 per craft). A minimum of 50% of the applicable Apprentice hours on any project must be worked by the Hayward New Apprentice. Any modifications to these requirements must be agreed to by the JAC. There shall be no more than two New Apprentices for each craft, and the General Contractor/Employer shall be entitled to include New Apprentices hired by their subcontractors to meet this requirement. The City will refer the names of District Graduates and/or Hayward Residents to the Union and Contractor(s)/Employer(s), and the Unions agree to cooperate with the Contractor/Employer in furnishing apprentices as requested. The hiring, supervision and compensation of apprentices shall be in accordance with the Apprenticeship Programs in the Master Agreements. The Contractor/Employer may deploy the Hayward New Apprentice to work on another concurrent project in order to meet the minimum hours, and those hours will be counted towards the total hours of the craft on the City project. The failure of the City to refer names and/or the Unions to provide those apprentices upon request will relieve the Contractor/Employer of this First-Period Apprentice hiring responsibility. The Contractor/Employer shall make good faith efforts to hire Apprentices for a minimum of six (6) months or 1,000 labor hours.

10.6 The Council shall encourage the enrollment of at least ten (10) Hayward Residents or District Graduates into State approved Labor-Management Apprenticeship programs during each year of the agreement term and facilitate placing them on a job site.

10.7 Contractors/Employers who hire Hayward Resident First-Period Apprentices shall be credited with two (2) work hours towards the Local Hire Goal, for each hour worked by the Hayward Resident First-Period Apprentices.

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

16 10.8 The intent of the apprentice requirement is to employ new apprentices to the fullest extent permissible by state law and the Master Agreements. The failure of the Contractor/Employer and its subcontractors to maintain qualified apprentices on the Project will be subject to Division of Apprenticeship Standards’ penalties and further penalties as determined by the Joint Administrative Committee. Contractors/Employers, Unions and the Building Trades Council shall use good faith efforts to retain apprentices employed pursuant to this Agreement and advance those apprentices to journeyperson status.

10.9 It shall be the responsibility of Contractors/Employers to report and document compliance with this Article. Contractors/Employers shall submit reports to the City on a monthly basis on an open electronic platform that is uniform and centralized with a module that is capable of properly collating and distilling the requested data outputs:
(i) Certified Payroll Reports; and
(ii) Reports containing the number of workers who satisfy the City’s Project specific apprenticeship and workforce training goals.
(iii) In the event the City does not currently utilize such software, the City shall work with the Council to identify and implement the software and its requisite module. The City shall oversee the platform and be responsible for requiring Contractors/Employers to upload timely reports into the system as part of their regular payment application process. The Council and its affiliated local Unions shall be provided login access to ensure reporting accuracy.

10.10 Contractors/Employers may request a negotiated compliance plan if compliance with the requirements of this Article is unreasonable or poses difficulty due to safety. In this case the Contractor/Employer will make the request in writing for a meeting with the Joint Administrative Committee prior to the commencement of work. The Joint Administrative Committee will then review this request, and if there is consensus, will approve the negotiated compliance plan, that the Contractor/Employer will sign off on. This new document will become the new local hiring requirements that the Contractor/Employer will have to meet or risk being in non-compliance.

ARTICLE XI

HELMETS TO HARDHATS

11.1 The Contractors/Employers and Unions recognize a desire to facilitate the entry into the building and construction trades of veterans who are interested in careers in the building and construction industry. The Contractors/Employers and Unions agree to utilize the services of the Center for Military Recruitment, Assessment and Veterans Employment (hereinafter “Center”) and the Center's "Helmets to Hardhats" program to serve as a resource for preliminary orientation, assessment of construction aptitude, referral to apprenticeship programs or hiring halls, counseling and mentoring, support network, employment opportunities and other needs as identified by the parties.

11.2 The Unions and Contractors/Employers agree to coordinate with the Center to participate in an integrated database of veterans interested in working on the Project and of

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

17 apprenticeship and employment opportunities for the Project. To the extent permitted by law, the Unions will give credit to such veterans for bona fide, provable past experience.

ARTICLE XII

COMPLIANCE

12.1 It shall be the res ponsibility of the Contractors /Employers and Unions to investigate and monitor compliance with the provisions of Article VIII of this Agreement .

Nothing in this Agreement shall be construed to interfere with or supersede the usual and customary legal remedies available to the Unions and/or employee benefit Trust Funds to collect delinquent wages or Trust Fund contributions from Contractors/Employers on the Project. Because the Project is a public work subject to the California Labor Code, the City shall monitor and enforce the Contractors/Employers’ compliance with state prevailing wage requirements as well as this Agreement.

ARTICLE XIII

GRIEVANCE ARBITRATION PROCEDURE

13.1 Project Labor Disputes: All disputes involving the application or interpretation of a Master Agreement to which a Contractor/Employer and a Union are parties shall be resolved pursuant to the resolution procedures of the Master Agreement. All disputes relating to the interpretation or application of this Agreement, other than disputes under Article IV and Article XIII, shall be subject to resolution by the grievance arbitration procedures set forth in this Article.

13.2 Employee Discipline: All disputes involving the discipline and/or discharge of an employee working on the Project shall be resolved through the grievance and arbitration provisions contained in the Master Agreement for the craft of the affected employee. No employee working on the Project shall be disciplined or discharged without just cause.

13.3 No grievance shall be recognized unless the grieving party (Union or District Council on its own behalf, or on behalf of an employee whom it represents, or a Contractor/Employer on its own behalf) provides notice in writing to the party with whom it has a dispute within five (5) business days after becoming aware of the dispute but in no event more than thirty (30) business days after it reasonably should have become aware of the event giving rise to the dispute. Time limits may be extended by mutual agreement of the parties.

13.4 Grievances shall be settled according to the following procedures:

Step 1: Within five (5) business days after the receipt of the written notice of the grievance, the representative of the involved Union or District Council, or his/her designee, and the representative of the involved Contractor/Employer, shall confer and attempt to resolve the grievance.

Step 2: If the grievance is not resolved at Step 1, within five (5) business days of the Step 1 meeting or the conclusion of efforts to resolve the grievance at Step 1, the alleged grievance may be referred in writing by either involved party to the Business Manager(s) of the affected Union(s) involved and the Labor Relations Manager of the Contractor/Employer, or the

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

18 Contractor/Employer’s designated representative, for discussion and resolution. This time limit may be extended by mutual consent of both parties. Regardless of which party has initiated the grievance, the Union shall notify its International Union representative prior to the Step 2 meeting, and the International Union representative shall advise if it intends to participate in the Step 2 meeting. The Project Manager and the Council shall have the right to participate in any efforts to resolve the dispute at Step 2.

Step 3: If the grievance is not resolved at Step 2, either party may request the dispute be submitted to arbitration within five (5) business days of the Step 2 meeting or the conclusion of efforts to resolve the grievance at Step 2. This time limit may be extended by mutual consent of both parties. Within five (5) business days after referral of a dispute to arbitration, the representatives shall notify the permanent arbitrator designated in Article IV, or if not available, the alternate arbitrator designated in Article IV, for final and binding arbitration. If the permanent arbitrator or the alternate is not available, an arbitrator shall be selected by the alternate striking method from the list of three (3) below. The order of striking names from the list of arbitrators shall be determined by a coin toss, the winner of which shall decide whether they wish to strike first or second.

1. William Riker

2. Carol Vendrillo

3. Morris Davis

13.5 The decision of the arbitrator shall be final and binding on all parties. The arbitrator shall have no authority to change, amend, add to or detract from any of the provisions of the Agreement. The expense of the arbitrator shall be borne equally by both parties. The arbitrator shall arrange for a hearing on the earliest available date from the date of his/her selection. A decision shall be given to the parties within five (5) calendar days after completion of the hearing unless such time is extended by mutual agreement. A written opinion may be requested by a party from the presiding arbitrator.

13.6 The time limits specified at any step of the grievance procedure may be extended by mutual agreement of the parties. However, failure to process a grievance, or failure to respond in writing within the time limits provided above, without an agreed upon extension of time, shall be deemed a waiver of such grievance without prejudice, or without precedent to the processing and/or resolution of like or similar grievances or disputes.

13.7 In order to encourage the resolution of disputes and grievances at Steps 1 and 2 of this grievance procedure, the parties agree that such settlements shall not be precedent setting.

13.8 Retention: At the time a grievance is submitted under this Agreement or any Master Agreement, the Union(s) may request that the City withhold and retain an amount from what is due and owing to the Contractor(s) against whom the grievance is filed, or its higher-tier Contractor, sufficient to cover the damages alleged in the grievance, should the Union(s) prevail.

The amount shall be retained by the City until such time as the underlying grievance giving rise to the retention is withdrawn, settled, or otherwise resolved, and the retained amount shall be

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

19 paid to whomever the parties to the grievance shall decide, or to whomever an arbitrator shall so order.

13.9 Should any of the arbitrators listed in this Article or Article IV no longer work as a labor arbitrator, the City and the Council shall mutually agree to a replacement.

ARTICLE XIV

WORK ASSIGNMENTS AND JURISDICTIONAL DISPUTES

14.1 The assignment of Covered Work will be solely the responsibility of the Employer performing the work involved; and such work assignments will be in accordance with the Plan for the Settlement of the Jurisdictional Disputes in the Construction Industry (the “Plan”) or any successor Plan.

14.2 All jurisdictional disputes on this Project between or among the building and construction trades Unions and the Employers parties to this Agreement, shall be settled and adjusted according to the present Plan established by the Building and Construction Trades Department or any other plan or method of procedure that may be adopted in the future by the Building and Construction Trades Department. Decisions rendered shall be final, binding and conclusive on the Employers and Unions parties to this Agreement.

14.3 If a dispute arising under this Article involves the Northern California Carpenters Regional Council or any of its subordinate bodies, an arbitrator shall be chosen by the procedures specified in Article V, Section 5 of the Plan from a list composed of John Kagel, Andrea Dooley, Robert Hirsch and Thomas Pagan, and the arbitrator’s hearing on the dispute shall be held at the offices of the California State Building and Construction Trades Council in Sacramento, California within fourteen (14) calendar days of the selection of the arbitrator. All other procedures shall be as specified in the Plan.

14.4 All jurisdictional disputes shall be resolved without the occurrence of any strike, work stoppage, or slow-down of any nature, and the Employer’s assignment shall be adhered to until the dispute is resolved. Individual employees violating this section shall be subject to immediate discharge.

14.5 Each Employer will conduct a pre-job conference with the Council prior to commencing work. The City and the Project Manager will be advised in advance of all such conferences and may participate if they wish. Pre-job conferences for different Employers may be held together.

ARTICLE XV

MANAGEMENT RIGHTS

15.1 Consistent with the Schedule A agreements, the Contractor(s)/Employer(s) shall retain full and exclusive authority for the management of their operations, including the right to direct their work force in their sole discretion. No rules, customs or practices shall be permitted or observed which limit or restrict production, or limit or restrict the working efforts of employees, except that all lawful manning provisions in the Master Agreement shall be recognized.

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

20 ARTICLE XVI

DRUG AND ALCOHOL TESTING

16.1 The use, sale, transfer, purchase and/or possession of a controlled substance, alcohol and/or firearms at any time during the work day is prohibited.

16.2 Drug and alcohol testing shall be conducted in accordance with the substance abuse prevention policies set forth in the applicable Master Agreement.

16.3 The use, sale, transfer, purchase and/or possession of cannabis or a related substance at any time during the work day is prohibited. Drug tests and screens that detect non- psychoactive cannabis metabolites, which are the metabolites left in the body after it metabolizes tetrahydrocannabinol (THC), shall not be used as a basis for discipline. Workers shall only be subject to discipline for testing positive on a drug test or screen that is designed to detect current impairment or active THC levels.

ARTICLE XVII

SAVINGS CLAUSE

17.1 If any article, provision, clause, sentence or word of this Agreement is determined to be illegal or void as being in contravention of any applicable law, by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect. The parties further agree that if any article, provision, clause, sentence or word of the Agreement is determined to be illegal or void, by a court of competent jurisdiction, the parties shall substitute, by mutual agreement, in its place and stead, an article, provision, clause, sentence or word that will meet the objections to its validity and will be in accordance with its original intent.

17.2 In the event a decision of a court of competent jurisdiction materially alters the terms of this Agreement such that the intent of the parties is defeated, then the entire Agreement shall be null and void.

17.3 If a court of competent jurisdiction determines that all or part of the Agreement is invalid and/or enjoins the City from complying with all or part of the Agreement’s provisions, and the City accordingly determines that compliance with this Agreement will not be required in order to perform work under a Construction Contract, the Unions will no longer be bound by the provisions of Article IV.

ARTICLE XVIII
TERM

18.1 This Agreement shall be included in all bid documents, requests for proposals, or other equivalent Project solicitations, which shall indicate that entering into this Agreement is a condition of the award of a Construction Contract(s) for the Project.

18.2 This Agreement shall apply until the Completion of each Project in accordance with Sections 1.4 and 2.2.

18.3 This Agreement shall become effective on the day it is executed by the City and the Council. Prior to each five (5) year anniversary of the effective date of this Agreement, the

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

21 City and the Council shall meet to discuss proposed changes, if any, to the Agreement. Absent changes or termination, the Agreement will roll over for an additional five (5) years.

ARTICLE XIX

MISCELLANEOUS PROVISIONS

19.1 Section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. All defined terms used in this Agreement shall be deemed to refer to the singular and/or plural, in each instance as the context and/or particular facts may require.

19.2 This Agreement may be executed in counterparts, such that original signatures may appear on separate pages and when bound together all necessary signatures shall constitute an original. Faxed or emailed signature pages transmitted to other parties to this Agreement shall be deemed the equivalent of original signatures.

19.3 Each of the persons signing this Agreement represents and warrants that such person has been duly authorized to sign this Agreement on behalf of the party indicated, and each of the parties signing this Agreement warrants and represents that such party is legally authorized and entitled to enter into this Agreement.

19.4 The parties acknowledge that this is a negotiated agreement, that they have had the opportunity to have this Agreement reviewed by their respective legal counsel, and that the terms and conditions of this Agreement are not to be construed against any party on the basis of such party's draftsmanship thereof.

19.5 All defined terms used in this Agreement shall be deemed to refer to the singular and/or plural, in each instance as the context and/or particular facts may require.

[SIGNATURES TO FOLLOW]

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

22 CITY OF HAYWARD

By:

Date:

BUILDING AND CONSTRUCTION TRADES

COUNCIL OF ALAMEDA COUNTY

By:

Date:

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

23 UNION SIGNATURES

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

24 Addendum A

AGREEMENT TO BE BOUND
[Date]
[Addressee]
[Address]
Re: City of Hayward Community Workforce Agreement
Agreement to be Bound
Dear ________________:

The undersigned confirms that it agrees to be a party to and bound by the City of Hayward Community Workforce Agreement (“Agreement”) as such Agreement may, from time to time, be amended by the parties or interpreted pursuant to its terms.

By executing this Agreement to be Bound, the undersigned subscribes to, adopts and agrees to be bound by the written terms of the legally established trust fund documents as set forth in Section

8.1 of the Agreement, as they may from time to time be amended, specifying the detailed basis upon which contributions are to be made into, and benefits made out of, such trust funds, and ratifies and accepts the trustees appointed by the parties to such trust funds. The undersigned agrees to execute a separate subscription agreement(s) for such trust funds when such trust fund(s) require(s) such document(s).

The obligation to be a party to and bound by the Agreement shall extend to all work covered by the City of Hayward Community Workforce Agreement undertaken by the undersigned. The undersigned shall require all of its subcontractors, of whatever tier, to become similarly bound for all their work within the scope of the Agreement by signing an identical Agreement to be Bound.

This letter shall constitute a subscription agreement, to the extent of the terms of the letter.

CONTRACTOR/SUBCONTRACTOR:____________________________________________ California Contractor State License No. or Motor Carrier (CA) Permit No.: ________________ Name of Authorized Person (print): ________________________________________________ Signature of Authorized Person: ___________________________________________________ Title of Authorized Person: ______________________________________________________ Telephone Number of Authorized Person:___________________________________________ Address of Authorized Person:____________________________________________________ State Public Works Registration Number: __________________________________________

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

25 Addendum B

CRAFT DISPATCH REQUEST FORM

CITY OF HAYWARD COMMUNITY WORKFORCE AGREEMENT

REQUEST FOR CRAFT EMPLOYEES
To the Contractor:

Please complete and transmit this form to the applicable Union to request craft workers that fulfill all hiring requirements of the City of Hayward Community Workforce Agreement. After transmitting your request, call the Local Union to verify receipt and substantiate their capacity to furnish categories of workers as requested. Please print your completed Craft Dispatch Request Form and keep a copy of this request for your records.

To:

Name of Union: _______________ Fax# ____________________ Date: ________________

From:

Name of company: ______________ Name of individual sending request: __________________ Contractor Phone# _____________

Please provide me with Union craft workers per the City of Hayward Community Workforce Agreement’s hiring requirements, to assist in fulfillment of project requirements as defined below:

Hayward Residents (any individual who at any time during the Projects’ construction can certify through a utility bill or other similar means acceptable to the parties that the individual resides within the boundaries of the City of Hayward.)

District Graduates (an individual who has graduated from a Hayward Unified School District high school or adult education program, or who has received a G.E.D. from Hayward Unified School District)

New Apprentices (an individual who is: (i) being sponsored into or has been enrolled in an apprenticeship program currently registered with the State of California’ s Division of Apprenticeship Standards; and (ii) has worked no more than twelve (12) months in the applicable craft or trade.)

General Dispatch (Union craft employees dispatched per normal dispatch procedures not including the above)

Job/Craft Description Number Requested Number
Requested
Number
Requested
Number
Requested
Total Number
Requested
Report
Date
Report Time
Hayward Resident District Graduate New Apprentice General Dispatch

Please have worker(s) report to the following work address indicated below:

_______________________________________________________________________________

Comments or special requirements
_______________________________________________________________________________

ATTACHMENT III

Community Workforce Agreement
for the City of Hayward

26 Addendum C

SOLE OPERATOR SIDE LETTER

Notwithstanding Section 7.7 of the Community Workforce Agreement for the City of Hayward (“CWA”), a Sole Operator who self-performs construction work covered by Operating Engineers Local 3 must abide by all applicable provisions related to dispatch of the Local 3 Master Agreement. As such, a Sole Operator must still obtain a dispatch from the Union hiring hall, in conformance with the Local 3 Master Agreement, and may work with the tools of the trade. If the Sole Operator hires any additional employees, those employees must be dispatched in conformance with the CWA.

All other provisions of the CWA shall remain in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Side Letter and it shall be effective as of the date last executed hereinbelow.

CITY OF HAYWARD

By:

Date:

BUILDING AND CONSTRUCTION TRADES

COUNCIL OF ALAMEDA COUNTY

By:

Date:

OPERATING ENGINEERS LOCAL 3

By:

Date:

SOLE OPERATOR

By:

Date:

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 25-280
DATE: June 17, 2025
TO: Mayor and City Council
FROM: City Clerk

SUBJECT
Adopt an Ordinance Amending Chapter 10, Article 1, Sections 10-1.845 (Minimum Design and Performance Standards), 10-1.1952 (At-C Uses Permitted) and 10-1.1953 (At-C Conditionally Permitted Uses) of the Hayward Municipal Code Updating the Regulations Governing Restaurants and Coffee Shops with Drive-Through Facilities on Properties Located within the (At-C) Air Terminal - Commercial Zoning District

RECOMMENDATION
That the City Council adopts the Ordinance introduced on June 3, 2025.

SUMMARY
This item entails adoption of an Ordinance amending Chapter 10, Article 1, Sections 10-1.845 (Minimum Design and Performance Standards), 10-1.1952 (At-C Uses Permitted) and 10-1.1953 (At-C Conditionally Permitted Uses) of the Hayward Municipal Code Updating the Regulations Governing Restaurants and Coffee Shops with Drive-Through Facilities on Properties Located within the (At-C) Air Terminal - Commercial Zoning District. The item was introduced on June 3, 2025, by Council Member Zermeño.

ATTACHMENTS
Attachment I Staff Report
Attachment II Summary of Published Ordinance
CITY OF HAYWARD Printed on 6/12/2025Page 1 of 1
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Page 1 of 2 ends

DATE: June 17, 2025

TO: Mayor and City Council

FROM: City Clerk

SUBJECT: Adopt a n Ordinance Amending Chapter 10, Article 1, Sections 10 -1.845 (Minimum Design and Performance Standards), 10 -1.1952 (At -C Uses Permitted) and 10-1.1953 (At-C Conditionally Permitted Uses) of the Hayward Municipal Code Updating the Regulations Governing Restaurants and Coffee Shops with Drive-Through Facilities on Properties Located within the (At-C) Air Terminal - Commercial Zoning District

RECOMMENDATION

That the Council adopts the Ordinance introduced on June 3, 2025.

SUMMARY

This item entails adoption of an Ordinance amending Chapter 10, Article 1, Sections 10-1.845 (Minimum Design and Performance Standards), 10 -1.1952 (At-C Uses Permitted) and 10 -

1.1953 (At -C Conditionally Permitted Uses) of the Hayward Municipal Code updating the regulations governing restaurants and coffee shops with drive-through facilities on properties located within the (At -C) Air Terminal - Commercial Zoning District . The item was introduced on June 3, 2025, by Council Member Zermeño.

BACKGROUND

The Ordinance was introduced by Council Member Zermeño, at the June 3, 2025, meeting of the City Council with the following vote:

AYES: COUNCIL MEMBERS: Andrews, Bonilla Jr., Goldstein, Syrop, Zermeño MAYOR PRO TEMPORE Roche
NOES: NONE
ABSENT: MAYOR Salinas
ABSTAIN: NONE

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STRATEGIC ROADMAP

The agenda item is a routine operational item and does not relate to one of the Council’s Strategic Initiatives.

FISCAL IMPACT

There is no fiscal impact associated with this report.

PUBLIC CONTACT

The summary of the Ordinance was published in the Daily Review c/o Bay Area News Group- East Bay on Friday, June 13, 2025. Adoption, at this time, is therefore appropriate.

NEXT STEPS

The Hayward Municipal Code and other related documents will be updated accordingly.

Prepared and Recommended by: Miriam Lens, City Clerk

Approved by:

_____________________________________________
Michael Lawson, J.D.

Acting City Manager

ATTACHMENT II

PUBLIC NOTICE OF AN INTRODUCTION OF AN ORDINANCE BY THE

CITY COUNCIL OF THE CITY OF HAYWARD

AN ORDINANCE AMENDING CHAPTER 10, ARTICLE 1, SECTIONS 10 -1.845 (MINIMUM DESIGN AND PERFORMANCE STANDARDS), 10 -1.1952 (AT-C USES PERMITTED) AND 10 -

1.1953 (AT-C CONDITIONALLY PERMITTED USES) OF THE HAYWARD MUNICIPAL CODE

UPDATING THE REGULATIONS GOVERNING RESTAURANTS AND COFFEE SHOPS WITH

DRIVE-THROUGH FACILITIES ON PROPERTIES LOCATED WITH IN THE (AT -C) AIR TERMINAL – COMMERCIAL ZONING DISTRICT

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

Section 1. Provisions. The City Council incorporates by reference the finding s contained in Resolution No. 25-098, approving the Zoning Text Amendments included as Exhibits A, B and C in this Ordinance to the Hayward Municipal Code.

Section 2. Chapter 10, Article 1 , Subsections 10-1.845 (Minimum Design and Performance Standards), 10-1.1952 (AT-C Uses Permitted), and 10-1.1953 (AT-C Conditionally Permitted Uses) of the Hayward Municipal Code are hereby amended to read as shown in Exhibits A, B and C to this Ordinance, below, with all added text shown as underlined and all deleted text shown as stricken through.

SEC. 10-1.845 MINIMUM DESIGN AND PERFORMANCE STANDARDS.

SEC. 10-1.1952 AT-C USES PERMITTED.

SEC. 10-1.1953 AT-C CONDITIONALLY PERMITTED USES.

Section 3. Severance. Should any part of this Ordinance be declared by a final decision by a court or tribunal of competent jurisdiction to be unconstitutional, invalid, or beyond the authority of the City, such decision shall not affect the validity of the remainder of this Ordinance, which shall continue in full force and effect, provided that the remainder of the Ordinance, absent the unexcised portion, can be reasonably interpreted to give effect to the intentions of the City Council.

Section 4. Effective Date . In accor dance with the provisions of Section 620 (f) of the City Charter, the Ordinance shall become effective upon adoption since it relates to the zoning or rezoning of the City or portions thereof.

Introduced at a meeting of the City Council of the City of Hayward, held on the 3rd day of June 2025, by Council Member Zermeño.

ATTACHMENT II

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This Ordinance will be considered for adoption at the regular meeting of the Hayward City Council, to be held on the 17th day of June 2025, at 7:00 p.m. Please note the City Council will hold a hybrid meeting which will allow for participation in the Council Chamber and virtually via the Zoom platform. The full text of this Ordinance is available for examination by the public by contacting the City Clerk’s office at [email protected] or (510) 583-4400.

Dated: June 13, 2025
Miriam Lens, City Clerk
City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 25-285
DATE: June 17, 2025
TO: Mayor and City Council
FROM: Fire Chief

SUBJECT
Adopt a Resolution Authorizing the City Manager to Execute an Agreement between Citygate LLC and the Hayward Fire Department to Perform a Standards of Cover Study in a Not-to-Exceed Amount of $99,943

RECOMMENDATION
That the City Council approve the attached resolution authorizing the City Manager to execute an agreement with Citygate LLC and the Hayward Fire Department to perform a Standards of Cover survey.

SUMMARY
The Hayward Fire Department, with the support of the City Manager’s Office, is seeking to complete a Standard of Cover survey to determine department readiness, efficiency, and strengths, as well as additional insight into community preparedness and risk factors. This study is a common practice throughout Fire Departments nationwide and is a required factor in achieving Center for Public Safety Excellence (CPSE) accreditation. A Standards of Cover document is a systematic way of looking at the basic service provided by an emergency services agency.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
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DATE: June 17, 2025

TO: Mayor and City Council

FROM: Fire Chief

SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute an Agreement between Citygate LLC and the Hayward Fire Department to Perform a Standards of Cover Study in a Not-to-Exceed Amount of $99,943

RECOMMENDATION

That Council approve the attached resolution authorizing the City Manager to execute an agreement with Citygate LLC and the Hayward Fire Department to perform a Standards of Cover survey.

SUMMARY

The Hayward Fire Department, with the support of the City Manager’s Office, is seeking to complete a Standard of Cover survey to determine department readiness, efficiency, and strengths, as well as additional insight into community preparedness and risk factors. This study is a common practice throughout Fire Departments nationwide and is a required factor in achieving Center for Public Safety Excellence (CPSE) accreditation. A Standards of Cover document is a systematic way of looking at the basic service provided by an emergency services agency.

BACKGROUND & DISCUSSION

The Hayward Fire Department (HFD) has had a longstanding goal to have a comprehensive study to provide the written policies and procedures which establish the distribution and concentration of fixed and mobile resources of an organization. By establishing the proper approach for all assets, the readiness to respond to emergency is the most effective within department capacity. The Standards of Cover assessment analyzes department readiness, while also identifying gaps that would leave the department and the community vulnerable in the instance of a large-scale disaster response.

The impact of the Standards of Cover report is paramount in shaping the future of the department and the budget needs to achieve alignment with provided recommendations.

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Selection of a competent and knowledgeable vendor to complete the study is vital, and the department issued a formal Request for Proposal (RFP) on April 17, 2025. On May 9, 2025 the applicant window closed, and seven (7) proposals were submitted. Of the available vendors, six (6) fell within the approved budget parameters, and two (2) were identified as having the appropriate experience and credentials to be a viable solution for HFD. After thorough evaluation, the department has chosen CityGate, LLC (“CityGate”) as the approved vendor to complete the Standards of Cover survey for the Hayward Fire Department.

CityGate has proposed an 8-month evaluation timeline, with a detailed breakdown of milestones, achievements, and due dates, and has illustrated a collaborative partnership with the department to provide a thorough and comprehensive analysis. The final report will include:

 A summary of the approach and analyses conducted.
 A summary of the Department’s current deployment model and response performance, including any opportunities for improvement.  Analysis of service delivery expectations, including labor, management, elected officials, and community expectations for delivery of fire service, EMS, and special hazard services.
 An analysis of the values to be protected within the service area, along with identification and evaluation of potential hazards and overall risk.  An analysis of the efficiency of the current deployment scheme of firefighting resources within the Department’s service area.
 An analysis of the Department’s ability to meet its fire and EMS first responder deployment needs and expectations.
 Recommendations for deployment of existing resources, including probable growth, within the service area to optimize service delivery.
 Recommendations for deployment of new resources, changes to fire stations, or changes to staffing, if any, to meet current and future service delivery needs.  Recommendations regarding staffing structure to meet the Cities’ needs.  Provision of supporting data and rationale for all recommendations.  Provision of supporting statistics and other visual data to fully illustrate the current situation and recommendations.

In addition to the excellent reputation and thorough analysis as listed above, HFD was also interested in partnership with CityGate as they have a staff member who specializes in the unhoused population and will be a valuable resource for the City of Hayward and our firefighters as we can develop a stronger understanding of this important part of the population. This insight will prepare the department to address a critical and lesser studied population within the community. Furthermore, the analysis of the city will include a discussion on evacuation routes, which has been previously identified as an area of concern throughout the city. The qualifications of Citygate to thoroughly address these issues has built a confidence in the partnership between the provider and the Hayward Fire Department.

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STRATEGIC ROADMAP

The Standards of Cover survey will help “Enhance Community Safety and Quality of Life” as a general subcategory, as the Hayward Fire Department uses the provided data to assist with planning and preparation efforts.

FISCAL IMPACT

While unlikely to directly impact current staffing levels, if recommendations indicate staffing levels are excessive, cost-saving adjustments would be reviewed.

PUBLIC CONTACT

There is no public contact required for this item.

NEXT STEPS

Upon approval of the attached resolution, staff will complete the contract with CityGate LLC and initiate the start of the Standards of Cover survey, with an estimated completion date with (8) months after initiation.

Prepared by: Lauren Dekas, Management Analyst

Recommended by: Eric Vollmer, Fire Chief

Approved by:

____________________________________________
Michael Lawson, J.D.

Acting City Manager

ATTACHMENT II

HAYWARD CITY COUNCIL

RESOLUTION NO. 25-____

Introduced by Council Member _________

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AGREEMENT BETWEEN CITYGATE, LLC AND THE HAYWARD FIRE

DEPARTMENT TO PERFOM A STANDARDS OF COVER STUDY IN AN AMOUNT- NOT-TO-EXCEED $99,943

WHEREAS, the Hayward Fire Department seeks to perform a departmental analysis known as the Standards of Cover; and

WHEREAS, the budget has been established though the City Manager’s general fund in fiscal year 25; and

WHEREAS, the Hayward Fire Department completed a request for proposal through OPenGov and received seven (7) potential vendors; and

WHEREAS, t he Hayward Fire De partment selected CityGate , LLC to complete the Standards of Cover after thorough and complete evaluation of qualifications.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward that the City Manager is hereby authorized to execute an agreement between the Hayward Fire Department and Citygate LLC to perform the Standards of Cover survey in an amount -not- to-exceed $99,943.

ATTACHMENT II

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IN COUNCIL, HAYWARD, CALIFORNIA, _______________________, 2025

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

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 25-286
DATE: June 17, 2025
TO: Mayor and City Council
FROM: City Clerk

SUBJECT
Adopt a Resolution Accepting the Resignation of Commissioner Lucy Woo from the Personnel Commission, Effective Immediately

RECOMMENDATION
That the City Council adopts a resolution (Attachment II) accepting the resignation of Commissioner Lucy Woo, effective immediately.

SUMMARY
Commissioner Lucy Woo was appointed to the Personnel Commission on September 20, 2022. Lucy Woo’sresignation becomes effective immediately, according to her resignation letter (Attachment III).

Ms. Lucy Woo’svacated position may be filled as part of the annual appointment process for the City’s appointed officials to commissions.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Resignation Letter
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DATE: June 17, 2025

TO: Mayor and City Council

FROM: City Clerk

SUBJECT: Adopt a Resolution Accepting the Resignation of Commissioner Lucy Woo from the Personnel Commission, Effective Immediately

RECOMMENDATION

That the City Council adopts a resolution (Attachment II) accepting the resignation of Commissioner Lucy Woo, effective immediately.

SUMMARY AND DISCUSSION

Commissioner Lucy Woo was appointed to the Personnel Commission on September 20, 2022.

Lucy Woo’s resignation becomes effective immediately, according to her resignation letter (Attachment III).

Ms. Lucy Woo’s vacated position may be filled as part of the annual appointment process for the City’s appointed officials to commissions.

STRATEGIC ROADMAP

The agenda item is a routine operational item and does not relate to one of the City Council’s Strategic Initiatives.

FISCAL IMPACT

There is no fiscal impact associated with this action.

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Prepared and Recommended by: Miriam Lens, City Clerk

Approved by:

________________________________________
Michael Lawson, J.D.

Acting City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 25-______

Introduced by Council Member ______________

RESOLUTION ACCEPTING THE RESIGNATION OF LUCY WOO FROM THE

PERSONNEL COMMISSION

WHEREAS, Ms. Lucy Woo was appointed to the Personnel Commission on September 20, 2022; and

WHEREAS, Ms. Lucy Woo submitted a letter of resignation on June 12, 2025.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the Council hereby accepts the resignation of Ms. Lucy Woo ; and commend s her for h er service to the City.

IN CITY COUNCIL, HAYWARD, CALIFORNIA _______________________, 2025

ADOPTED BY THE FOLLOWING VOTE:

AYES: CITY COUNCIL MEMBERS:

MAYOR:

NOES: CITY COUNCIL MEMBERS:

ABSTAIN: CITY COUNCIL MEMBERS:

ABSENT: CITY COUNCIL MEMBERS:

ATTEST: ______________________________________
City Clerk of the City of Hayward

APPROVED AS TO FORM:

_________________________________________
City Attorney of the City of Hayward

ATTACHMENT III

From: Lucy W
Sent: Thursday, June 12, 2025 12:11 PM
To: Miriam Lens <[email protected]>
Cc: Candilaria Jackson <[email protected]>; Regina Youngblood <[email protected]>; Ian Tecson <[email protected]> Subject: Re: Resignation from Lucy Woo (Personnel Commission) Dear Miriam,
Thank you for your call and email!
I feel so sad to request to resign from the Personnel Commission for the personal reason. I appreciated so much for the opportunity joining the Personnel Commission and the opportunity working with everyone. I had great time and I learned a lot from everyone. I felt proud that I was part of the Personnel Commission of city of Hayward, and I had the chance to know how great of all our city staffs and all departments, how much great works they had done and they’re working on. I’m very thankful to all of you! Hope you all are well! ❤️
Best wishes,
Lucy Woo

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 25-294
DATE: June 17, 2025
TO: Mayor and City Council
FROM: Assistant City Manager

SUBJECT
Adopt a Resolution Approving the Memorandum of Understanding between the City of Hayward and the Hayward Police Management Unit and Authorizing Staff to Execute the Agreement

RECOMMENDATION
That the City Council adopts a resolution (Attachment II) approving the Memorandum of Understanding (“MOU”)between the City of Hayward and the Hayward Police Management Unit (“HPMU”)for the period beginning July 1, 2025, through June 30, 2030.

SUMMARY
The current HPMU MOU expires on June 30, 2025. The attached resolution will allow staff to execute a successor agreement with HPMU for the term of July 1, 2025, through June 30, 2030. The City entered negotiations with HPMU on February 25, 2025, the parties reached a tentative agreement on May 29, 2025, and the agreement was ratified by the bargaining unit members on May 30, 2025. The new agreement will grant salary and benefit adjustments; and employees will continue to contribute fifteen percent (15%) toward their Public Employees’Retirement System (PERS) costs and a one percent (1%) contribution towards Other Post-Employment Benefits (OPEB) costs. The amendments allow for administrative and legal language updates and salary benefit adjustments, resulting in additional General Fund expenditures of approximately $1.5 million dollars for a five (5) year period.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
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DATE: June 17, 2025

TO: Mayor and City Council

FROM: Assistant City Manager

SUBJECT: Adopt a Resolution Approving the Memorandum of Understanding between the City of Hayward and the Hayward Police Management Unit and Authorizing Staff to Execute the Agreement

RECOMMENDATION

That the Council adopts a resolution (Attachment II) approving the Memorandum of Understanding (“MOU”) between the City of Hayward and the Hayward Police Management Unit (“HPMU”) for the period beginning July 1, 2025, through June 30, 2030.

SUMMARY

The current HPMU MOU expires on June 30, 2025. The attached resolution will allow staff to execute a successor agreement with HPMU for the term of July 1, 2025, through June 30, 2030. The City entered negotiations with HPMU on February 25, 2025, the parties reached a tentative agreement on May 29, 2025, and the agreement was ratified by the bargaining unit members on May 30, 2025. The new agreement will grant salary and benefit adjustments; and employees will continue to contribute fifteen percent (15%) toward their Public Employees’ Retirement System (PERS) costs and a one percent (1%) contribution towards Other Post-Employment Benefits (OPEB) costs. The amendments allow for administrative and legal language updates and salary benefit adjustments, resulting in additional General Fund expenditures of approximately $1.5 million dollars for a five (5) year period.

BACKGROUND AND DISCUSSION

During the term of its prior contract with HPMU, the City worked hard to achieve and maintain fiscal sustainability. Though the City continues to face the challenges of growing pension and retiree health liabilities, the City also recognizes the need to provide fair salary increases as part of any successor contract to maintain the ability to recruit and retain employees. To do so, and to help mitigate growing costs, the City sought to maintain its cost-sharing structure for major employee benefits including health and retirement. As detailed below, the City was able to achieve both of these goals in the proposed contract.

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The tentative agreement includes a salary adjustment in the first contract year of eleven and eighty-two hundredths percent (11.82%) to maintain internal alignment and equity, and salary adjustments based on the MOU’s outlined salary survey for the last three years of the contract; an update from one calendar year to a 12-month rolling period for calculating unused sick leave; the addition of special assignment pay (SAP) to certain cash out provisions; changes to continuous service pay tiers; addition of allowing deferral of certain payments upon retirement; and incorporating the Voluntary Employee Beneficiary Association (VEBA) Plan from a side letter into the contract with updates to payouts.

In support of the City’s current financial structural deficit, HPMU has agreed to no salary increases in the second year of the contract and will continue to contribute fifteen percent (15%) to the City’s cost share of PERS and one percent (1%) towards OPEB. The new contract also includes operational, administrative, and legal language updates.

Key provisions of the amended agreement are summarized in Table 1 below.

Table 1: Key Proposed Changes

MOU Section Summary of Update Effective Date

5.09 B Cost Sharing Continue 6% additional PERS Cost Sharing (15% total)
July 1, 2025

5.11 OPEB Continue current 1% base pay to OPEB July 1, 2025

6.13 Salary
Adjustments

11.82% Salary Increase

July 1, 2025
No Increase July 1, 2026
Increase based on survey, between 5% and 7% July 1, 2027 Increase based on survey, between 5% and 7% July 1, 2028 Increase based on survey July 1, 2029

9.05 Payment for
Unused Sick Leave

Change calculation timeframe used to determine
percentage of payment to a rolling 12-month period
versus one calendar year.

July 1, 2025

12.10 Duration 5-year term
July 1, 2025 – June 30, 2030

July 1, 2025

Multiple Sections –
Include SAP in
Cashout
Add Special Assignment Pay, restricted to one
assignment as second-in-command when assigned
for at least 13 contiguous pay periods, to the
following provisions:
 Payment for unused sick leave
 Conversion of compensatory time
 Leave Cash Out (vacation and management leave)
July 1, 2025

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MOU Section Summary of Update Effective Date

11.03 Continuous
Service Pay
Update section to “Longevity Pay” and update tiers to
the following:
 12 years – 5%
 16 years – 8%
 20 years – 11%
 21 years – 12%
 22 years – 13%
 23 years – 14%
 24 years – 15%
Maintain CSP cap of 15%
Maintain combined CSP/EIP of 27.5%
July 1, 2025

New Section Allow members to request deferral of certain payments upon retirement
July 1, 2025

New Section – VEBA Update and incorporate language into MOU  50% of vacation leave balances at retirement paid
to employee
 Remaining 50% to VEBA or deferred
compensation account, or combination of the two
July 1, 2025

FISCAL IMPACT

The total proposed changes will result in an estimated fiscal impact of $1,509,698 to the General Fund over the five (5) year contract period (FY 2026-FY 2030).

STRATEGIC ROADMAP

This agenda item is a routine operational item and does not relate to one of the Council’s Strategic Roadmap.

NEXT STEPS

If adopted, Human Resources staff will finalize the agreement, the City Manager will execute the agreement, and the Finance Department will implement the above changes in coordination with Human Resources.

Prepared by: Ian Tecson, Deputy Director of Human Resources

Recommended by: Regina Youngblood, Assistant City Manager

Approved by:

_________________________________________________
Michael Lawson, J.D., Acting City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 25-______

Introduced by Council Member _________

RESOLUTION APPROVING THE SUCCES SOR MEMORANDUM OF

UNDERSTANDING BETWEE N THE CITY OF HAYWAR D AND HAYWARD

ASSOCIATION OF MANAGEMENT EMPLOYEES AND AUTHORIZING THE CITY

MANAGER TO EXECUTE THE AGREEMENT

WHEREAS, the current Memorandum of Understanding between the City of Hayward and Hayward Police Management Unit (“HPMU”) expires on June 30, 2025; and

WHEREAS, the City and HPMU entered negotiations for a successor memorandum of understanding in February 2025; and

WHEREAS, the City and HPMU reached a tentative agreement for a successor memorandum of understanding on May 29, 2025, that provides sal ary adjustments of eleven and eighty -two hundredths percent (11.82%) in the first year of the contract and salary adjustments based on contract survey results in the last three years of the contract; and

WHEREAS, the proposed changes restructure continuous service pay and provide the addition of special assignment pay to certain cashout provisions; and

WHEREAS, the agreement updates the calculation timeframe used to determine percentage of sick leave payment from a calendar year to a rolling twelve (12) month period, allows members to request deferral of certain payments upon retirement, and incorporates the voluntary employee beneficiary association side letter into the contract with updated vacation leave allocations, along with other adjustments and language changes; and

WHEREAS, HPMU recognizes the City’s fiscal challenges and will continue to contribute toward the cost of California Public Employees’ Retirement System and pay up to fifteen percent (15%) of which six percent (6%) is a cost share of the employer’s contribution rate , continue contributing one percent (1%) of their base salary towards Other Post-Employment Benefits, and receive no salary increase in the second year of the contract; and

WHEREAS, the proposed changes will result in an estimated fiscal impact of $1,509,698 over a five (5) year contract term to the General Fund.

ATTACHMENT II

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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is hereby authorized and directed to execute, on behalf of the City of Hayward, a Memorandum of Understanding between the City and HPMU for the period of July 1, 2025, through June 30, 20 30, a copy of which will be on file in the Office of the City Clerk.

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

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 25-297
DATE: June 17, 2025
TO: Mayor and City Council
FROM: Director of Library Services

SUBJECT
Adopt a Resolution Authorizing the City Manager to Execute the Hayward Promise Neighborhoods (HPN) One (1) Year Contract; Accept and Appropriate Up to $150,000 in Congressionally Funded Community Project Funding for South Hayward Promise Neighborhoods Partners for Calendar Year 2025; and Execute an Agreement with Ross McDonald Co., Inc.

RECOMMENDATION
That Council adopts a resolution (Attachment I) authorizing the City Manager to:

1.) Execute the Hayward Promise Neighborhoods (HPN) one (1) year contract totaling up to $150,000 for Calendar Year 2025. No match funding required; and to

2.) Accept and appropriate up to $150,000 in funding from HPN for Calendar Year 2025.

3.) Authorize the City Manager to negotiate and execute a single source agreement with Ross McDonald Co., Inc. to provide customized library furniture and shelving in the amount not to exceed $150,000.

SUMMARY
The Promise Neighborhoods Initiative was established under the federal legislative authority of the Fund for the Improvement of Education (FIE) program. Started during the Obama administration, the vision of the initiative is to make it possible for all children, youth, and young adults growing up and being educated in “Promise Neighborhoods” to have access to high quality schools and strong systems of family and community support.

In January of 2023, Council was made aware that the U.S. Department of Education awarded the Hayward Promise Neighborhoods (HPN) consortium a new $30 million (5) five-year grant ($6 Million per year for five calendar years 2023 through 2027) to expand their decade-long South Hayward focused initiative to serve Downtown Hayward and the surrounding communities along the A St. and Mission Blvd. corridors.

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File #:CONS 25-297
HPN works through an extensive partnership of community organizations to serve the community.

Starting in 2025, the South Hayward HPN partners had the opportunity to request Congressional funding up to $150,000. These funds have been approved to be used towards the Weekes renovation project.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
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DATE: June 17, 2025

TO: Mayor and City Council

FROM: Director of Library Services, Jayanti Addleman

SUBJECT: Adopt a Resol ution Authorizing the City Manager to Execute the Hayward Promise Neighborhoods (HPN) One (1) Year Contract; Accept and Appropriate Up to $1 50,000 in Congressionally Funded Community Project Funding for South Hayward Promise Neighborhoods Partners for Calendar Year 2025; and Execute an Agreement with Ross McDonald Co., Inc.

RECOMMENDATION

That Council adopts a resolution (Attachment II) authorizing the City Manager to:

1.) Execute the Hayward Promise Neighborhoods (HPN) one (1) year contract totaling up to $150,000 for Calendar Year 2025. No match funding required; and to

2.) Accept and appropriate up to $150,000 in funding from HPN for Calendar Year 2025.

SUMMARY

The Promise Neighborhoods Initiative was established under the federal legislative authority of the Fund for the Improvement of Education (FIE) program. Started during the Obama administration, the vision of the initiative is to make it possible for all children, youth, and young adults growing up and being educated in “Promise Neighborhoods” to have access to high quality schools and strong systems of family and community support.

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communities along the A St. and Mission Blvd. corridors. HPN works through an extensive partnership of community organizations to serve the community. Starting in 2025, the South Hayward HPN partners had the opportunity to request Congressional funding up to $150,000.

These funds have been approved to be used towards the Weekes renovation project.

BACKGROUND AND DISCUSSION

Starting from January 1, 2025, the South Hayward Promise Neighborhoods (SHPN) partners that were originally mentioned in the grant proposal had the opportunity to request congressional funding of up to $150,000. This funding is intended to sustain or expand their existing South HPN solutions. Each partner of SHPN was able to submit a budget proposal and outline the scope of work, demonstrating how they plan to spend the $150,000 by December 31, 2025, to continue improving outcomes for students and families. It's important to note that there is no requirement for matching funding for this grant. The proposed budget and scope of work are in line with the priorities listed in the original grant scope of work. These priorities were initially submitted to the U.S.

Department of Education as part of the no-cost extension proposal.

The City of Hayward’s Library Department has been granted $150,000 to be used towards the purchase of additional furniture for Weekes Branch to support the reactivation of the space for South Hayward community members and provide space for diverse resources in response to community need and 21st century technological needs. The Weekes Branch renovation project will increase community use/access to Library resources and provide a safe welcoming space for all. By creating a safe and welcoming space, the City anticipates the growth of programming, due to attracting community members to use the facility, and the improvement of the Community Meeting Room for free public access to a space for meetings and special events.

ECONOMIC IMPACT
According to the National Bureau of Economic Research1, and based on data obtained over the past four decades, studies show that there is a strong correlation between economic development and the delivery of quality education. The study states in part that at the national level, the low end of the economic improvement range equates to an increase of $32 trillion to the U.S. economy in 2095 by simply bringing the lowest-performing students in each state up to “Basic” level as measured by the National Assessment of Educational Progress (NAEP). At the high end, the U.S. economy could realize as much as $76 trillion if every state brought student performance up to the current performance level of the best state.

The National Promise Neighborhood School Reform Initiative is designed to improve the education and development of students—cradle to career. It operates on the premise that a student’s ability to learn is impacted not only by the schools that they attend but also by several quality-of-life factors that exist beyond the walls of educational institutions. Poverty, housing and food security, safety, health and public health, and other social factors also impact a student’s ability to learn. Consequently, the Hayward Promise Neighborhood collaboration of public and private service organizations works to not only improve the quality of services

1 Source: National Bureau of Economic Research (NBER) Working Paper No. 21770- http://www.nber.org/papers/w21770

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provided by local child development and educational institutions, but it also strives to optimize the health, mental health, and safety of individual students, their families, their neighborhoods, and the greater Hayward community in which these students live. Hayward Public Library plays a key role in this collaboration of organizations.

Staff also seeks authorization for the City Manager to negotiate and execute an agreement with Ross McDonald Co., Inc., to provide customized library furniture and shelving in the amount not to exceed $150,000. Since 1969, Ross McDonald Co., Inc., has furnished library equipment in thousands of public, academic, school, and private libraries in Northern California. The vendor specializes in collaborating with libraries to compassionately re- envision public spaces, making them more welcoming and accessible to diverse communities.

Services include generated drawings to facility specifications/dimension, in-house services such as removal of existing furniture, and installation of new furnishings and shelving. Ross McDonald Co., Inc., is one of the only full-service providers in Northern California that offers all desired furniture specifications at competitive pricing that match the dimension and finish needs necessary for the Weekes Branch renovation, within necessary timelines. In addition, this vendor provides in-house installation services in the timeframe necessary. On August 20, 2024, Council authorized the City Manager to negotiate a sole source with Ross McDonald Co., Inc., for the Weekes Branch renovation, in the amount not to exceed $458,000, using Community Development Block Grant funds, as well as special revenue funding from the Friends of the Hayward Library and California State University (Resolution No. 24-167) for the Weekes Branch renovation. The execution of another sole source is necessary to purchase matching furniture with the additional $150,000 in congressional funding from Hayward Promise Neighborhoods.

STRATEGIC ROADMAP

This consent item supports the following items in Hayward’s current Strategic Roadmap:

Enhance Community Safety and Quality of Life, Grow the Economy, and Invest in Infrastructure.

FISCAL IMPACT

The City of Hayward will receive a total of $150,000 in funding from HPN over Calendar Year 2025. There is no match commitment. There is no fiscal impact to the General Fund.

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NEXT STEPS

Upon the Council’s approval, staff will execute the agreement between HPN and the City of Hayward and appropriate the HPN funding to purchase furniture for the Children’s Area and Meeting Room for the Weekes Branch Library over the term of the agreement.

Prepared by: Lindsey Vien, Deputy Director of Library Services

Recommended by: Jayanti Addleman, Director of Library Services

Approved by:
_____________________________________________
Michael Lawson, J.D.

Acting City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 25-____

Introduced by Council Member _________

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE
HAYWARD PROMISE NEIGHBORHOODS (HPN) ONE (1) YEAR CONTRACT ; AND ACC EPT AND APPROPRIATE UP TO $150,000 IN CONGRESSIONALLY

FUNDED COMMUNITY PROJECT FUNDING FOR SOUTH HAYWARD PROMISE NEIGHBORHOODS PARTNERS FOR CALENDAR YEAR 2025; AND EXECUTE AN AGREEMENT WITH ROSS MCDONALD CO., INC.

WHEREAS, In January of 2023, Council was made aware that the U.S. Department of Education awarded the Hayward Promise Neighborhoods (HPN) consortium a new $30 million grant ($6 Million per year for five [5] calendar years covering 2023-2027) to expand their decade-long initiative to serve Downtown Hayward and the surrounding communities along the A St. and Mission Blvd. corridors; and

WHEREAS, the South Hayward Promise Neighborhoods (SHPN) partners originally mentioned in the grant proposal had the opportunity to request congressional funding of up to $150,000 beginning January 1, 2025; and

WHEREAS, the City of Hayward’s Library Department has been granted $150,000, to be spent by December 31, 2025, to support the ongoing Weekes Branch renovation, including the purchase of additional furniture; and

WHEREAS, on August 20, 2024, Council adopted Resolution 24 -167 authorizing the City Manager to negotiate and execute a single source agreement with Ross McDonald Co., Inc. for similar work which included providing customized library furniture.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward authorizes the City Manager to execute the South Hayward Promise Neighborhood ( SHPN) one (1) year contract over calendar year (CY) 2025 with no match requirement.

BE IT FURHTER RESOLVED, that the City Council of the City of Hayward authori zes the City Manager to accept and appropriate up to $150,000 in congressionally funded community project funding for calendar year (CY) 2025.

ATTACHMENT II

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BE IT FURTHER RESOLVED, that the City Council of the City of Hayward authorizes the City Manager to negotiate and execute a single source agreement with Ross McDonald Co., Inc. in an amount not to exceed $150,000 to provide customized library furniture and shelving, in a form approved by the City Attorney.

IN COUNCIL, HAYWARD, CALIFORNIA, _____________________, 2025.

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

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 25-298
DATE: June 17, 2025
TO: Mayor and City Council
FROM: Interim Director of Finance

SUBJECT
Adopt a Resolution Adjusting the City’s Transient Occupancy Tax Rate from 8.5% to 12.0% Effective August 1, 2025, and Finding that the Action is Exempt from CEQA Review

RECOMMENDATION
That the City Council adopts a resolution (Attachment II) adjusting the City of Hayward’s(City) Transient Occupancy Tax rate from 8.5% to 12.0%, effective August 1, 2025; and to review raising TOT from 12% to 14% effective FY 2027-28 should the current 2% Excise Tax terminate December 31, 2027; and finds that the action is exempt from CEQA review.

SUMMARY
This report provides a review of the City’s current Transient Occupancy Tax (TOT) rate, and consideration for increasing the TOT rate in accordance with Measure NN, a voter approved ballot measure, which authorized Council to adjust the TOT rate from 8.5 percent up to 14 percent. In November 2020, the City continued to balance the impacts related to the economic uncertainties around the pandemic. At that time, Council directed staff to keep the TOT rate at its current rate of 8.5 percent to allow hoteliers time to recover from the pandemic. Council requested that an adjustment to the TOT rate be reviewed and considered when the economy has recovered from the impacts of the pandemic.

The report provides an overview of the TOT rate, and consideration for adjusting the TOT rate from 8.5 percent to 12 percent in FY 2025-26 and to review raising TOT from 12% to 14% effective FY 2027-28 should the current 2% Excise Tax terminate December 31, 2027.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
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DATE: June 17, 2025

TO: City Council

FROM: Interim Director of Finance

SUBJECT: Adopt a Resolution Adjusting the City’s Transient Occupancy Tax Rate from

8.5% to 12.0% Effective August 1, 2025, and Finding that the Action is Exempt from CEQA Review

RECOMMENDATION

That the City Council adopts a resolution (Attachment II) adjusting the City of Hayward’s (City) Transient Occupancy Tax rate from 8.5% to 12.0%, effective August 1, 2025; and to review raising TOT from 12% to 14% effective FY 2027-28 should the current 2% Excise Tax terminate December 31, 2027; and finds that the action is exempt from CEQA review.

SUMMARY

This report provides a review of the City’s current Transient Occupancy Tax (TOT) rate, and consideration for increasing the TOT rate in accordance with Measure NN, a voter approved ballot measure, which authorized Council to adjust the TOT rate from 8.5 percent up to 14 percent. In November 2020, the City continued to balance the impacts related to the economic uncertainties around the pandemic. At that time, Council directed staff to keep the TOT rate at its current rate of 8.5 percent to allow hoteliers time to recover from the pandemic. Council requested that an adjustment to the TOT rate be reviewed and considered when the economy has recovered from the impacts of the pandemic.

BACKGROUND

In June 20201, Council was presented with a comparative analysis of TOT rates and revenues in neighboring agencies, as well as the presentation of the results of 2017 voter polling in comparison with election results from Bay Area cities that had previously placed ballot measures to voters. The analysis found that Hayward had the lowest TOT rate and ranks

1 CITY OF HAYWARD - File #: LB 20-030 (legistar.com)

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eleventh in per-capita TOT revenues of the sixteen Bay Area cities with populations over 100,000. At the time, past polling found that an increase to TOT was supported by approximately two-thirds of registered Hayward voters.

On July 14, 20202, Council authorized actions to place an increase in the City’s TOT from 8.5 percent to up to 14 percent before the voters of Hayward at the November 3, 2020 election. In November 2020, the voters of Hayward passed Measure NN, which increased the TOT from

8.5 percent to no more than 14 percent.

On November 16, 20223, Council Budget and Finance Committee was presented with a review of the City’s current TOT rate and collected revenue. During the presentation, the Committee received comparisons of current TOT rates in neighboring cities and TOT revenue under different rate scenarios. The Committee recommended maintaining the current 8.5 percent rate and discussed potential rate adjustments after further analysis and continued economic recovery.

On January 15, 20254, Council Budget and Finance Committee was presented with a review of the City’s current TOT rate and collected revenue. During the presentation, the Committee received comparisons of current TOT rates in neighboring cities and TOT revenue under different rate scenarios. The Committee recommended presenting City Council with the option to raise TOT from 10 to 12 percent.

After internal discussions and ongoing budget discussions regarding the City’s structural deficit, staff recommended to City Council to raise TOT to the maximum amount of 14%5. City Council asked for additional research to be conducted and for the Council Budget and Finance Committee to review a proposed increase of 12% with the additional research.

On May 21, 20256, staff provided additional research to review in consideration of increasing the TOT rate. Based on the research, Council Budget & Finance Committee recommended proposing an increase to 12% to City Council for FY 2025-26 with an effective date of August 1, 2025.

DISCUSSION

Staff compared the City’s TOT rate of 8.5 percent to that of twelve other cities in the Bay Area with populations over 100,000 with the exception of Castro Valley, Union City, and San Leandro.

2 CITY OF HAYWARD - File #: LB 20-038 (legistar.com)
3 CITY OF HAYWARD - File #: ACT 22-120 (legistar.com)
4 CITY OF HAYWARD - File #: ACT 24-091
5 CITY OF HAYWARD - File #: LB 25-012
6 CITY OF HAYWARD - File #: ACT 25-036

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In 2020, when Measure NN was approved by the Hayward voters, Council directed staff to hold the rate at 8.5 percent to allow local hoteliers to recover from the impacts of the pandemic.

While some cities apply only a base TOT rate, others impose additional taxes and fees such as tourism assessments, business improvement district charges, and community facility district levies which increases the total cost to hotel guests. Table 1 details the total effective rates, distinguishing between the base TOT and any additional charges layered on top.

Should Council choose to increase Hayward’s TOT rate up to the 12 percent allowed under Measure NN, the City’s overall lodging cost to guests would fall near the middle range when factoring in the total rates including additional fees charged by neighboring cities. An increase to the full 14 percent would position Hayward in the fourth highest in the comparison group.

However, even at that level, the City would remain well below the total lodging costs seen in cities that apply significant additional surcharges beyond their base TOT rates.

Table 1: Comparison of Current TOT Rates
City TOT Rate Additional Taxes/Fees Total Rate
San Francisco 14.00%

5.96% Destination fee tax, Tourism District
assessment based on zoning between 2-2.25%,
Moscone Assessment fee based on location
between 1-1.25% 23.46% Max
Oakland 14.00%
2% Oakland Tourism Tax, 3.83% Destination fee
tax 19.83%
Santa Clara 13.50%
2% Community Facilities District Tax, 2%
Tourism Improvement District assessment 17.50%
San Leandro 14.00% 14.00%
San Mateo 14.00% 14.00%
Union City 13.86% 13.86%
Berkeley 12.00%
1% Berkeley Tourism Business Improvement
District assessment 13.00%
Concord 10.00% 3% Tourism Business Improvement District tax 13.00% San Jose 10.00%
Hotel Business Improvement District fee based
on zoning between $1-$2.50/room per night 10% + Fee
Hayward 8.50% 2% Emergency Services Facilities Tax 10.50% Fremont 10.00% 10.00%
Antioch 10.00% 10.00%
Castro Valley 10.00% 10.00%

In FY 2022-23, TOT revenue began to show signs of recovery with an increase of approximately $0.5 million over FY 2020-21 in actual revenue collected. Table 2, below, provides updated projections for the last three fiscal years along with the current fiscal year and projected fiscal year, since Measure NN was approved by the Hayward-voters. The table illustrates the fiscal impacts to the revenue source had higher TOT rates been adopted.

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Table 2: TOT Revenue Under Different Rate Scenarios in FY 2021 through FY 2026

Fiscal Year 8.5% (Actual) 10% 12% 14%
FY 2021-22 $1,978,905 $2,328,124 $2,963,928 $3,259,373
FY 2022-23 $2,358,670 $2,774,906 $2,103,617 $3,884,868
FY 2023-24 $2,359,000 $2,775,294 $2,681,998 $3,885,412
FY 2024-25
(adopted) $2,125,000 $2,500,000 $3,196,692 $3,500,000
FY 2025-26
(projected) $2,380,000 $2,800,000 $2,771,979 $3,920,000 Average $2,240,315 $2,635,665 $2,743,643 $3,689,931

As illustrated in Table 2, if a 12 percent TOT had been in place since FY 2020-21, it would have generated an average of $2.7 million per year; an average increase of about $0.5 million in annual revenue.

FISCAL IMPACT

Prior to the pandemic and passage of Measure NN, the TOT rate was set at 8.5 percent and generated approximately $2.2 million in General Fund revenue per year in the three fiscal years proceeding FY 2024-25.

TOT revenue has continued to improve and progress toward pre-pandemic levels. Should the City Council choose to exercise its authority to adjust the TOT rate to 12 percent, the increase would result in positive impacts to the General Fund. If a 12 percent TOT rate was approved, using the TOT annual average revenue, shown in Table 2, the City could potentially realize an increase of approximately $0.5 million annually in General Fund revenue.

In FY 2027-28, should City Council approve a 12% rate beginning FY 2025-26 and choose to raise the TOT rate to 14% when the 2% Excise Tax sunsets on December 31, 2027 for FY 2027-28, the City could potentially realize approximately $0.9 million annually based on current projections.

STRATEGIC ROADMAP

This agenda item supports the Strategic Priority of Improve Organizational Health.

Specifically, this item relates to the implementation of the following project(s):

Project 1, Part 1.a: Maintain and Expand Fiscal Sustainability: Evaluate an increase in the Transient Occupancy Tax.

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NEXT STEPS

Staff recommends that the City Council adopts a resolution (Attachment II) adjusting the City’s Transient Occupancy Tax rate from 8.5% to 12.0%, effective August 1, 2025; and to review raising TOT from 12% to 14% effective FY 2027-28 should the current 2% Excise Tax terminate December 31, 2027.

Prepared by: Franchesca Hatfield, Management Analyst
Nicholas Mullins, Senior Management Analyst

Recommended by: Sharif Etman, Interim Director of Finance

Approved by:

___________________________________________
Michael Lawson, J.D.

Acting City Manager

ATTACHMENT II

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HAYWARD CITY COUNCIL

RESOLUTION NO. 25-

Introduced by Council Member

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAYWARD ADJUSTING THE TRANSIENT OCCUPANCY TAX RATE FROM 8.5% TO 12.0% EFFECTIVE AUGUST 1, 2025; FINDING THAT THE ACTION IS EXEMPT FROM

ENVIRONMENTAL REVIEW

WHEREAS, the Transient Occupancy Tax (TOT) is a general tax imposed on the privilege of occupancy in any hotel, and is a debt owed by the transient to the City, which is satisfied by payment to the operator of the hotel; and

WHEREAS, the TOT is implemented through Hayward Municipal Code Chapter 8, Article 4; and

WHEREAS, during the November 3, 2020 general election the voters of the City of Hayward approved Measure NN (Ordinance No. ME 20 -01), increasing Hayward’s TOT rate from 8.5% to an amount up to 14%; and

WHEREAS, the City Council directed staff to maintain the TOT rate at 8.5% to allow hoteliers time to recover from the impacts of the COVID 19 pandemic, and requested that an adjustment to the TOT rate be reviewed and considered when the economy recovered from the impacts of the pandemic; and

WHEREAS, on February 4, 2025 the City Council held a General Fund Budget Work Session to review potential strategies that could be implemented to assist in closing the projected structural deficit, and during the work session, the City Council expressed unanimous support for adjusting the TOT rate as a strategy to close the projected structural deficit; and

WHEREAS, California Constitution Article XIIIC does not require voter approval where a general tax is imposed at a rate that does not exceed the maximum tax rate previously approved by the voters.

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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the Transient Occupancy Tax levied pursuant to Hayward Municipal Code Chapter 8, Article 4 is hereby imposed at the rate of 12.0%, effective August 1, 2025.

BE IT FURTHER RESOLVED, that the City Manager, or her designee, is authorized to take any administrative actions necessary to implement the rate adjustment adopted herein.

BE IT FURTHER RESOLVED, that this action does not have the potential for creating a significant effect on the environment and is therefore exempt from further review under CEQA pursuant to State CEQA Guidelines Section 15060(c)(3) because it is not a project as defined by the CEQA Guidelines Section 15378. Adjustment of the Transient Occupancy Tax rate does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.

IN COUNCIL, HAYWARD, CALIFORNIA, , 2025

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

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 25-316
DATE: June 17, 2025
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Adopt Resolutions Approving Addenda Nos. 1 Through 4 and Awarding a Contract to DeSilva Gates Construction, LLC, for the La Vista Park Project, Project No. 06914 in the Amount of $32,850,547 in Addition to Approving $3,942,066 in Administrative Construction Contingency, and Authorizing the City Manager to Execute Amendment No. 3 to the Professional Services Agreement with Langan, and to Execute Amendment No. 1 to the Memorandum of Understanding with the Hayward Area Recreational District for the Funding, Operation and Maintenance of La Vista Park

RECOMMENDATION
That the City Council adopts a resolution:
(1) Approving Addenda Nos. 1 through 4, which were issued to make minor revisions to the plans and specifications and to answer bidder clarification questions, and awarding a contract to DeSilva Gates Construction, LLC in the amount of $32,850,547 and authorizing an Administrative Construction Contingency budget of $3,946,066, for a total not-to-exceed contract amount of $36,792,613, and authorizing the City Manager to execute Amendment No. 3 to the Professional Services Agreement (PSA) with Langan to increase their contract amount by $486,600, for a total not-to-exceed amount of $980,026 (Attachment II); and (2) Appropriating $19,444,000 from Park-in-Lieu Funds (fund 206) to Fund 405 and authorizing the City Manager to execute Amendment No. 1 to the Memorandum of Understanding (MOU) with the Hayward Area Recreational District (HARD) for the Funding, Operations, and Maintenance of La Vista Park (Attachment III).

SUMMARY
Since 2017, the City and HARD have worked toward a shared vision of constructing and operating La Vista Park, a new destination park in South Hayward, east of the intersection of Mission Boulevard and Tennyson Road. The addition of a destination park will create a much-needed amenity and attraction for South Hayward, the City, and the entire region.

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On April 23, 2025, four (4) construction bids were received ranging from $32,850,547 to $34,945,319.

The low bid was $32,850,547, which was $6,412,763, or 24.3% above the Engineer’s Estimate of $26,437,784. Of the 4 bids, 3 bids were within $121,000, or 0.4% of each other, indicating a competitive bidding environment and that the low bid reflects a reasonable cost of the project.

Staff is requesting City Council approval of Addenda Nos. 1 through 4, which were issued to make minor revisions to the plans and specifications and to answer bidder clarification questions. Staff recommends awarding the construction contract to the lowest responsive and responsible bidder, DeSilva Gates LLC, of Dublin, CA, with the amount of $32,850,547, and approving an Administrative Construction Contingency (change orders) Budget of $3,942,066 for a total of $36,792,613.

Langan is the geotechnical engineering consultant for the La Vista Park project and has performed geotechnical investigations and provided design recommendations and geotechnical reports for the La Vista Park project. Staff is requesting City Council approval to amend the PSA with Langan to include airborne asbestos dust monitoring and geotechnical services during construction of the slope stabilization keyway and park improvements. Langan’sservices during construction would increase the contract amount by $486,600 to a not-to-exceed limit of $980,026.

Due to the low bid exceeding the Engineer’sEstimate, an additional $6,444,000 is needed to fully fund the project. The City negotiated with HARD and both parties agreed the City will increase funding from Park- in-Lieu fees to cover this amount. Staff is requesting City Council approval to amend the MOU with HARD to include this additional funding.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution Approving Addenda Nos. 1 through 4 Attachment III Resolution Appropriating Funds
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DATE: June 17, 2025

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT: Adopt Resolution s Approving Addenda Nos. 1 Through 4 and Awarding a Contract to DeSilva Gates Construction, LLC, for the La Vista Park Project, Project No. 06914 in the Amount of $32,850,547 in Addition to Approving $3,942,066 in Administrative Construction Contingency, and Authorizing the City Manager to Execute Amendment No. 3 to the Professional Services Agreement with Langan, and to Execute Amendment No. 1 to the Memorandum of Understanding with the Hayward Area Recreational District for the Funding, Operation and Maintenance of La Vista Park

RECOMMENDATION

That City Council adopts two resolutions:

(1) Approving Addenda Nos. 1 through 4, which were issued to make minor revisions to the plans and specifications and to answer bidder clarification questions, and awarding a contract to DeSilva Gates Construction, LLC in the amount of $32,850,547 and authorizing an Administrative Construction Contingency budget of $3,946,066, for a total not-to-exceed contract amount of $36,792,613, and authorizing the City Manager to execute Amendment No. 3 to the Professional Services Agreement (PSA) with Langan to increase their contract amount by $486,600, for a total not-to-exceed amount of $980,026 (Attachment II); and

(2) Appropriating $19,444,000 from Park-in-Lieu Funds (fund 206) to Fund 405 and authorizing the City Manager to execute Amendment No. 1 to the Memorandum of Understanding (MOU) with the Hayward Area Recreational District (HARD) for the Funding, Operations, and Maintenance of La Vista Park (Attachment III).

SUMMARY

Since 2017, the City and HARD have worked toward a shared vision of constructing and operating La Vista Park, a new destination park in South Hayward, east of the intersection

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of Mission Boulevard and Tennyson Road. The addition of a destination park will create a much-needed amenity and attraction for South Hayward, the City, and the entire region.

On April 23, 2025, four (4) construction bids were received ranging from $32,850,547 to $34,945,319. The low bid was $32,850,547, which was $6,412,763, or 24.3% above the Engineer’s Estimate of $26,437,784. Of the 4 bids, 3 bids were within $121,000, or 0.4% of each other, indicating a competitive bidding environment and that the low bid reflects a reasonable cost of the project.

Langan is the geotechnical engineering consultant for the La Vista Park project and has performed geotechnical investigations and provided design recommendations and geotechnical reports for the La Vista Park project. Staff is requesting City Council approval to amend the PSA with Langan to include airborne asbestos dust monitoring and geotechnical services during construction of the slope stabilization keyway and park improvements. Langan’s services during construction would increase the contract amount by $486,600 to a not-to-exceed limit of $980,026.

Due to the low bid exceeding the Engineer’s Estimate, an additional $6,444,000 is needed to fully fund the project. The City negotiated with HARD and both parties agreed the City will increase funding from Park-in-Lieu fees to cover this amount. Staff is requesting City Council approval to amend the MOU with HARD to include this additional funding.

BACKGROUND

In 2005, the La Vista residential development included 179 new single-family homes to be built at the South Hayward site east of (and up the hill from) the terminus of Tennyson Road and Mission Boulevard was approved. The original project included the construction of a new approximately thirty-acre public park. The original thirty-acre park site on land donated by the developer was expanded to almost fifty acres in size by the addition of twenty acres of the former Caltrans Route 238 property right-of-way acquired by the City.

The adopted FY23 CIP budget included a total project budget appropriation of $23.27M (Fund 405) for the design and construction of the La Vista Park Project. In February 2023, the engineer’s estimated cost for construction of La Vista Park without contingency was $25M. With construction contingency, project design, administration, inspection and testing, the total estimated project cost was over $35M, which was greater than the appropriated budget. Staff prepared alternate bids with the bid package that would have allowed the project to be phased into multiple phases depending on how the bids were

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received. It was intended that at least the first phase would be awarded in 2023 to construct a majority of the park features and the subsequent phases would be constructed in the future when additional funding is obtained.

In June 2023, three (3) construction bids were received for the project ranging from $41,927,606 to $47,323,996. With the low bid far exceeding the available budget, the project was fiscally infeasible. As a result, City Council directed Staff to reevaluate and revise the scope of the project to allow a project with a reduced scope to proceed.

The final design of La Vista Park was completed and incorporates the following items and park elements:

 Site grading and construction of the slope stabilization keyway  Installation of on-site utilities including water lines, sewer lines, and storm water lines
 Installation of new electrical service and infrastructure with pedestrian lights including infrastructure for the future security camera system by HARD  Installation of irrigation system, trees, and hydroseeding of the entire project site
 Installation of offsite asphalt and concrete sidewalk on Tennyson Road  Installation of the Foothill trail
 Installation of on-site asphalt, decomposed granite, and gravel paving  Installation of decorative boulders
 Installation of park signage, vehicular swing gates, and bollards  Installation of picnic tables, BBQs, benches, and trash and recycle receptacles  Installation of bike racks and drinking fountains
 Installation of turf sod at the soccer field and amphitheater  Installation of concrete slide structures, exercise equipment, play equipment, and basketball courts
 Installation of fencing for area separation
 Installation of automated restrooms and maintenance shed  Installation of a dog park

The California Environmental Quality Act (CEQA) addendum analysis for La Vista Park was completed and presented to the City Council on September 28, 2021, with no further action required per adopted resolution 21-195.

On November 15, 20161, City Council passed a resolution authorizing a Community Workforce Agreement (CWA) with the Alameda County Building Trades Council (BTC), which applies to City projects with construction costs of $1,000,000 or more. The agreement requires contractors to use local union hiring halls, encourages contractors to employ Hayward residents or Hayward Unified School District graduates, and requires hired workers to pay union dues and other benefit trust fund contributions, etc. Because

1 https://hayward.legistar.com/LegislationDetail.aspx?ID=2882111&GUID=118B2EF9-1D2C-471F-999E-4BE0929706A0

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the construction cost estimate for La Vista Park is more than $1,000,000, the CWA agreement applies to this project.

DISCUSSION

On April 23, 2025, four (4) construction bids were received for the project with base bids ranging from $32,850,547 to $34,945,319. DeSilva Gates Construction, LLC submitted the low bid in the amount of $32,850,547, which was 24.3% above the engineer's estimate of $26,437,784. Granite Construction Company submitted the second low bid in the amount of $32,883,116.40, which was 24.4% above the engineer’s estimate. The cost difference between the engineer’s estimate and bids received is primarily due to the high costs associated with site work, slope stabilization, and park equipment and amenities. However, as mentioned above, with the three of the four bids all within $121,000 of each other, the bids reflect the realistic cost of construction. After reviewing the bid documents, the lowest responsive and responsible bidder is DeSilva Gates, LLC, with the amount of $32,850,547.

An additional $3,942,066, or 12% of the bid amount, is included for administrative construction contingency in the event additional funds are needed for unforeseen conditions and changes during construction.

Geotechnical Consultant Funding Adjustment

On March 26, 20192, City Council approved Resolution No. 19-055, authorizing the City Manager to enter into a Professional Services Agreement with Langan for design-level geotechnical investigation services in an amount not-to-exceed $198,100.

On May 19, 20203, City Council approved Resolution No. 20-055, adopting Amendment No. 1 to the PSA with Langan, increasing the contract amount by $95,300 with a total not- to-exceed amount of $293,400.

On March 23, 20224, City Council approved Resolution No. 22-067, adopting Amendment No. 2 to the PSA with Langan, increasing the contract amount by $200,026 with a total not-to-exceed amount of $493,426.

Therefore, staff also recommends execution of Amendment No. 3 to increase the value of the PSA with Langan to include airborne asbestos dust monitoring and geotechnical services during construction of the slope stabilization keyway and park improvements of La Vista Park by $486,600 for a total not-to-exceed contract amount of $980,026.

HARD MOU

HARD and the City have worked in active partnership on the La Vista project since its inception. Between 2017 and 2024, HARD committed $15.4 million in bond funding and the City committed $13 million in Park-in-Lieu funds and $7.925 million in other sources. Due

2 https://hayward.legistar.com/LegislationDetail.aspx?ID=3897638&GUID=AD716AFF-467D-4E35-8C07-0F39495BAE26 3 https://hayward.legistar.com/LegislationDetail.aspx?ID=4539054&GUID=DE6EFDEE-53D2-4FB2-87D4-64E33A15986F 4 https://hayward.legistar.com/LegislationDetail.aspx?ID=5531461&GUID=2C8AAC9A-511A-4F70-8909-E0BB47D1F4CF

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to the low bid exceeding the Engineer’s Estimate, staff concluded that an additional $6.444 million is needed to fully fund the project including design, construction, administration, inspections, and testing costs. The City is in conversations with HARD and staff from both parties recommend that the City increase funding from Park-in-Lieu fees to cover this amount. Staff is requesting City Council approval to amend the MOU with HARD to include this additional funding (Attachment III).

ECONOMIC IMPACT

The addition of a destination park to the South Hayward community will create a much- needed amenity and attraction for this part of the City. This will likely result in increased visitors to the area as well as more dollars spent on local businesses. In addition, there have been numerous studies that indicate that the addition of open space or parkland has a positive impact on home values in the surrounding areas.

FISCAL IMPACT

The proposed FY26 Capital Improvement Program (CIP) budget includes a total project budget appropriation of $36.325 million (Fund 405) for the design and construction of La Vista Park. The total project costs are $42.769 million, shown below. Staff is requesting that City Council appropriate an additional $6.444 million from Park-in-Lieu fees to cover the gap, on top of the previously committed $13 million, for a total of 19.444 million (Attachment III). As mentioned above, HARD agrees with this use of Park-in-Lieu funds.

The breakdown for the project costs is as follows:

Construction Contract $32,850,547
Contingency (12%) $3,942,066
Construction Subtotal $36,792,613

Design $1,104,387
Administration $1,104,000
Geotechnical Inspection, Testing and Reporting $1,840,000 Previously Incurred City Costs $1,928,000
Total Project Cost $42,769,000

If Council passes the resolution in Attachment III, the funding sources for the project will be as follows:

Fees for La Vista Development $2,140,000
HARD Bond Funds $15,400,000
Offsite Tree Mitigation $585,000
Measure C Transfer $5,200,000
Park-in-Lieu Funds $19,444,000
Total Funding Sources $42,769,000

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STRATEGIC ROADMAP

This agenda item supports the Strategic Roadmap of Invest in Infrastructure. Specifically, this item relates to the implementation of the following project:

Project N14, Part N14b: Construct La Vista Park

SUSTAINABILITY FEATURES

The La Vista Park has been designed to be the most environmentally sustainable park within the City. As part of the design, park areas will require less irrigation and native grass and plants will be used throughout the park. Park structures will be constructed from natural materials rather than traditional fabricated structures. Bio-retention filtration areas will collect and retain stormwater runoff prior to discharging into the storm drainage system.

PUBLIC CONTACT

After construction work for the La Vista Park Project has been scheduled, signs will be posted prior to commencement of work indicating the date and time of work.

NEXT STEPS

If the City Council approves the requests, the City Manager will execute the construction contract with DeSilva Gates Construction, LLC, execute Amendment No. 3 to the PSA with Langan and execute Amendment No. 1 to the MOU with HARD for the Funding, Operations, and Maintenance of La Vista Park.

The following is the tentative schedule for this project:

Begin Construction Summer 2025
Complete Construction Winter 2026

Prepared by: Sammy Lo, Senior Civil Engineer

Reviewed by: Dave Hung, Acting Deputy Director of Public Works

Recommended by: Alex Ameri, Director of Public Works

Approved by:

___________________________________
Michael Lawson, J.D.

Acting City Manager

ATTACHMENT II

HAYWARD CITY COUNCIL

RESOLUTION NO. 25-_____

Introduced by Council Member ________________

RESOLUTION APPROVING ADDENDA NOS. 1 THROUGH 4 AND AWARDING A

CONTRACT TO DESILVA GATES CONSTRUCTION, LLC, IN THE AMOUNT OF $32,850,547 IN AD DITION TO APPROVING $3, 942,066 IN ADMINISTRATIVE CONSTRUCTION CONTINGENCY, and AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 3 TO THE PROFESSIONAL SERVICES

AGREEMENT WITH LANGAN FOR THE LA VISTA PARK PROJECT, PROJECT NO. 06914

WHEREAS, by Resolution No. 24-258, on December 17, 2024, the City Council approved the plans and specifications for the La Vista Park Project, Project No. 06914, and called for bids to be received on a future date; and

WHEREAS, Addenda Nos. 1 through 4 were issued to make minor revisions to the project plans and specifications and to respond to bidders’ clarifications; and

WHEREAS, on April 23, 2025, four (4) bids were received ranging from $32,850,547 to $34,945,319. The low bid, submitted by DeSilva Gates Construction, LLC, is approximately 24.3% above the Engineer’s Estimate of $26,437,784; and

WHEREAS, the City and Langan have entered into that certain Agreement dated the 24th day of April, 2019, entitled " Agreement for Professional Services between the City of Hayward and Langan" for the La Vista Park Project for a total not -to-exceed amount of $198,100; and

WHEREAS, the Parties subsequently amended the contract on the 8th day of March, 2021, titled “Amendment No. 1 to Agreement for Professional Services between the C ity of Hayward and Langan,” in the amount of $ 95,300 for a total not -to-exceed amount of $293,400; and

WHEREAS, the Parties subsequently amended the contract on the 12th day of April, 2022, titled “Amendment No. 2 to Agreement for Professional Services b etween the City of Hayward and Langan” in the amount of $ 200,026 for a total not -to-exceed amount of $493,426; and

WHEREAS, the City and Langan, desire to amend the Agreement in certain respects to provide additional geotechnical engineering services and construction support for the La Vista Park Project.

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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that Addenda Nos. 1 through 4 are hereby approved and adopted as part of the plans and specifications for the project;

BE IT FURTHER RESOLVED by the City Council that DeSilva Gates Construction LLC, of Dublin, CA is hereby awarded the contract for the La Vista Park Project, Project Number 06914, in accordance with the plans and specifications adopted therefore and on file in the office of the City Clerk of the City of Hayward, at a nd for the price named and stated in the final proposal of the hereinabove specified bidder, and all other bids are hereby rejected;

BE IT FURTHE RESOLVED that the City Council of the City of Hayward he reby authorizes the City Manager to execute Amendment No. 3 to the Agreement with Langan for additional services in an amount not -to-exceed $486,600, thereby increasing the total contract amount to a total not -to-exceed $ 980,026 associated with the La Vist a Park Project, in a form approved by the City Attorney

BE IT FURTHER RESOLVED the California Environmental Quality Act (CEQA) addendum analysis for La Vista Park was completed and presented to Council on September 28, 2021, with no further action required per the adopted Resolution 21-195.

IN COUNCIL, HAYWARD, CALIFORNIA, , 2025

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

HAYWARD CITY COUNCIL

RESOLUTION NO. 25-_____

Introduced by Council Member ________________

RESOLUTION APPROPRIATING $19,44 4,000 FROM PARK -IN-LIEU FUNDS (FUND 260) TO FUND 4 05 AND AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT N O. 1 TO THE MEMORANDUM OF

UNDERSTANDING WITH THE HAYWARD AREA RECREATIONAL AND PARK

DISTRICT FOR THE FUNDING, OPERATION S, AND MAINTENANCE OF LA VISTA PARK, PROJECT NO. 06914

WHEREAS, since 2017, the City and the Hayward Area Recreation al and Park District (HARD) have worked towards a shared vision of constructing and operating La Vista Park, a new destination park in South Hayward . The addition of a destination park will create a much -needed amenity and attraction for South Hayward, the City, and the entire region; and

WHEREAS, by Resolution No. 24-259, on December 17, 2024, the City Council authorized and directed to the City Manager to execute a new Memorandum of Understanding with the Hayward Area Recreation and Park District for the funding, operations, and maintenance of La Vista Park; and

WHEREAS, between 2017 and 2024, City Council committed $13,000,000 in Park - in-Lieu funds to the La Vista project; and

WHEREAS, after receiving and reviewing construction bids, Staff determined an additional $6,444,000 in Park-in Lieu funds is needed to fully fund the construction of La Vista Park including design, construction, administration, inspections, and testing costs; and

WHEREAS, there is sufficient balance in the City’s Park -in-Lieu Fund (Fund 260) to cover this amount.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that $19,666,000 is appropriated from Fund 260 to Fund 405 and that the City Manager is hereby authorized and directed to execute Amendment No. 1 to the Memorandum of Understanding with the Hayward Area Recreation and Park District for the funding, operations, and maintenance of La Vista Park.

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IN COUNCIL, HAYWARD, CALIFORNIA, , 2025

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

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: WS 25-028
DATE: June 17, 2025
TO: Mayor and City Council
FROM: City Manager

SUBJECT
Public Art: Consideration of a Public Art Development Impact Fee

RECOMMENDATION
That the City Council receives this report and provides feedback on the possible creation of a public art development impact fee in Hayward.

SUMMARY
Hayward’sMural Art Program has been a point of pride for the City since its inception in 2009, however, budget constraints have prevented meaningful expansion of the program. On April 2, 2024, Council adopted a referral that directed staff to research and provide recommendations on a potential development impact fee and related program to support new public art in Hayward. Staff analyzed public art fees in Alameda, Santa Clara, and San Mateo County cities to determine industry best practices. Staff finds that 0.5 FTE are necessary to run the current program, with a potential need for additional staff resources if the program grows. To comply with the Mitigation Fee Act, Government Code section 66000 et seq., staff seeks Council’s approval to contract with a consultant to carry out a nexus study and continue with the development of a public art fee structure.

ATTACHMENTS
Attachment I Staff Report
Attachment II Bay Area Public Art Fees
CITY OF HAYWARD Printed on 6/12/2025Page 1 of 1
powered by Legistar™

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DATE: June 17, 2025

TO: Mayor and City Council

FROM: City Manager

SUBJECT: Public Art: Consideration of a Public Art Development Impact Fee

RECOMMENDATION

That the City Council receives this report and provides feedback on the possible creation of a public art development impact fee in Hayward.

SUMMARY

Hayward’s Mural Art Program has been a point of pride for the City since its inception in 2009, however, budget constraints have prevented meaningful expansion of the program. On April 2, 2024, Council adopted a referral that directed staff to research and provide recommendations on a potential development impact fee and related program to support new public art in Hayward. Staff analyzed public art fees in Alameda, Santa Clara, and San Mateo County cities to determine industry best practices. Staff finds that 0.5 FTE are necessary to run the current program, with a potential need for additional staff resources if the program grows. To comply with the Mitigation Fee Act, Government Code section 66000 et seq., staff seeks Council’s approval to contract with a consultant to carry out a nexus study and continue with the development of a public art fee structure.

BACKGROUND

Council Referral

On Feb. 27, 2024, Councilmembers Angela Andrews and Julie Roche submitted a City Council referral to the Mayor and Council members, which directed staff to present a public art development fee proposal to City Council. Councilmembers Andrews and Roche suggested that developers set aside one to two percent of project budgets for public art on site or pay an in-lieu “percent-for-art” fee to a City-administered fund overseen by the Council Economic Development Committee, given the potential of public art to “stimulate the local economy, reduce blight, and support crime reduction by design.”

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The City Council unanimously advanced the referral on April 2, 2024, highlighting the economic development potential and community connectivity brought about by enhanced public spaces. A council member suggested that a portion of the fund may be allocated “toward permanent public art and culture staffing.”

On April 18, 2024, the Keep Hayward Clean and Green Commission sent the Mayor and City Council a letter of support in favor of the proposed fee. The Commission noted several benefits of public art and suggested “incorporating wind or solar elements” in new art installations to “promote care of the environment and generate interest in environmental sciences.”

Mural Art Program

Hayward’s current Mural Art Program was established in 2009 to celebrate community, beautify neighborhoods and deter vandalism. Through direct one-time fund allocations by the City, the City installed more than 200 murals throughout Hayward, bringing state and national recognition for its commitment to the arts. The City received a Helen Putnam Award in 2011 for community service and economic development. Currently, the program has an annual $25,000 budget to cover maintenance of existing art. Historically, the City has also commissioned several utility box projects per fiscal year to allow for greater community impact in more areas of Hayward.

Existing Impact Fees

Hayward currently levies two impact fees on developers. The first supports public parks in Hayward, and the second mitigates additional traffic brought on by new development.

The Park Impact Fees, adopted in December 2019, are fees on developers of residential subdivisions and remodels that increase the number of bedrooms of homes built after Feb. 19, 2020, as well as industrial projects. The fee’s revenue supports the creation of parks and open space in Hayward in partnership with the Hayward Recreation and Park District (HARD). The fee amounts are tied to the Engineering News-Record (ENR) Construction Cost Index rather than levied as a standard percentage of construction costs.

In May 2022, City Council adopted a Traffic Impact Fee (TIF), which applies to new single- family and townhome residential units, industrial developments and distribution/e- commerce centers. The fee does not apply to new multi-family, retail or office developments.

This fee adjusts annually based on the ENR’s California Cost Index for the Bay Area.

As required by California Government Code Section 66000, the City conducted a nexus study for both the park and traffic fees to justify the fee amounts based on their ability to have desired outcomes of additional open park space and improved traffic conditions, respectively.

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DISCUSSION

In the first half of calendar-year 2025, staff conducted an analysis of public art programs and development fees in cities in Alameda, Santa Clara and San Mateo counties, as well as San Francisco, to determine best practices (see Attachment II Bay Area Public Art Fees).

Research showed that 17 of 32 cities analyzed had a public art development fee and program, though the structures varied from city to city.

Fee Structure

Of the cities that staff analyzed, most set art impact fees as a certain percentage of the construction cost/building valuation, which can vary based on the type of construction.

As an alternative to paying the in-lieu fee, cities allow developers to install art as part of the project. Some cities charge a lower percentage as an in-lieu fee than the percentage required for on-site artwork allocation.

The percentage of construction valuation cities are required to set aside ranges from 0.33 percent to two percent, and the in-lieu fee amount ranges from 0.33 percent to 1.75 percent.

The fee in-lieu for cities was typically less than or equal to the required percentage used to fund on-site art and was usually set at or around one percent. Only four of the cities we analyzed required that developers set aside or provide as an in-lieu fee more than one percent of construction valuation.

Anticipated Revenue Generated

Hayward has seen a spike in development in recent years — notably residential development on the former 238 lands, the South Hayward Retail Center and new housing near the South Hayward BART station — but there are fewer projects currently in the development pipeline, with development not expected to accelerate in the coming years.

Should the fee be adopted with additional conditions, such as minimum construction valuations for affordable housing, revenue from the fee could be sporadic.

Since development is not linear, projecting fee revenue from a similar percent-for-art program is difficult. Using development trends from fiscal year 2024, a one percent fee on building valuation for projects currently subject to park impact fees would have resulted in $314,720 in revenue. On the other hand, a one percent fee on FY 2024 projects subject to traffic impact fees would have raised only $6,343. The revenue from a public art fee would be highly dependent on which developments are required to pay.

Public Art Master Plan or Review Board

Many Bay Area cities have established Civic Arts Committees or Public Art Advisory Boards to oversee public art installations in their respective cities. Especially when developers choose to commission their own artwork, some review or oversight will be necessary to ensure that art projects meet City standards and represent the community positively.

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One or both of an arts committee or public art master plan may be implemented to maintain quality control. A public art master plan could be completed internally with current Community and Media Relations staff time plus intern/temporary help, depending on the ultimate scope of the program based on City Council feedback.

As part of the development of a potential Public Art Master Plan, staff would conduct an extensive outreach campaign public feedback and comment. Community and industry feedback will be crucial to:
 Avoid overburdening developers and hampering development  Determine desired themes for public art
 Target specific areas, buildings or corridors for public art

Nexus Study

Per the Mitigation Fee Act, cities are required to establish a nexus between the projected development impacts and the public facilities for which impact fees are imposed.

Government Code Section 66001(a) of the Mitigation Fee Act (Section 66000-66025) requires that any city or county that establishes, imposes, or increases a fee as a condition of development approval do all of the following: (1) identify the purpose of the fee, (2) identify the use to which the fee is to be put, (3) determine how there is a reasonable relationship between the fee’s use and the type of development project on which the fee is imposed, and (4) determine how there is a reasonable relationship between the need for the public facility and the type of development project upon which the fee is imposed.

Government Code Section 66001(b) further requires the locality to determine whether there is a reasonable relationship between the specific amount the fee imposed and the costs of building, expanding, or upgrading public facilities. Such determinations, also known as nexus studies, are made in written form and must be updated whenever new fees are imposed or existing fees are increased.

The Mitigation Fee Act also requires the jurisdiction to segregate fee revenues from other municipal funds and requires the local agency to make certain enumerated findings with respect to any funds remaining unexpended, whether committed or uncommitted, within five years of the original deposit and every five years thereafter. If the findings are not made as required by the Act, the local agency is mandated to refund the monies in the fund in accordance with the Act. Any person may request an audit to determine whether any fee or charge levied by the city or county exceeds the amount reasonably necessary to cover the cost of the service provided (Government Code Section 66006(d). Under Government Code Section 66014, fees charged for zoning changes, use permits, building permits, and similar processing fees are subject to the same nexus requirements as development fees.

Lastly, under Government Code Section 66020, agencies collecting fees must provide project applicants with a statement of the amounts and purposes of all fees at the time of fee imposition or project approval.

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If Council decides to pursue an art impact fee, staff recommends contracting with a consultant to carry out a nexus study for a public art development fee, similar to the studies for the Park and Traffic Impact Fees. Based on previous nexus studies the City has contracted out, this study will likely cost about $50,000 to $70,000 to carry out.

Staffing Requirements

The current mural art program has been managed by a temporary/seasonal administrative clerk. Without the temporary administrative clerk in the winter and spring of FY 2025, projects have been delayed due to the lack of staff time needed to manage art maintenance and commissioning.

Based on prior analysis of Neighborhood Partnerships staff bandwidth, we estimate that the main functions of running this public art program, including maintenance, project selection, fund allocation, revenue tracking and future planning will require an additional

0.5 FTE. However, since the addition of this fee is meant to promote public art, it is fair to expect the program to increase in size and scope, which may require a dedicated full-time staff member.

An ideal scenario would be for the public art fund to support a full-time staff member — essentially the program would pay for its own management, with no impact to the general fund. However, given concerns with reliably projecting fee revenue in a percent-for-art fee structure, this may be difficult.

In addition, should Council eventually approve the development of a public art master plan, supplemental staff time from an intern/temporary employee may be necessary.

FISCAL IMPACT

There is no fiscal impact from receiving this report.

ECONOMIC IMPACT

New fees imposed on development increase the cost of building and renovations. Given the construction industry’s often slim margins, additional fees may prevent developers from completing certain projects. These potential pitfalls must be considered along with the economic development and community benefits of public art.

STRATEGIC ROADMAP

This agenda item supports the Strategic Roadmap Priority of “Enhance Community Safety and Quality of Life.” Specifically, this item relates to the implementation of the following project:
 Q14: Create an analysis of the staffing and funding needs to create a public art program

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NEXT STEPS

With City Council feedback and approval, staff is prepared to begin the process of contracting with a consultant for a nexus study. The entire process of releasing an RFP, selecting a contractor and carrying out the nexus study will likely take at least one year. With Council approval, staff will return with a consent item on August 19 to allocate funds to issue an RFP for the nexus study.

If Council proceeds with the creation of an art impact fee, staff also recommends quality control measures, such as a public art master plan, which could be completed in house with supplemental staffing, and/or an advisory committee to screen potential new projects to ensure that new public art is in keeping with community values and the diverse backgrounds and perspectives of Hayward community members.

Prepared by: Justin Redman, Management Fellow
Zachary Ebadi, Community Partnership Manager

Recommended by: Regina Youngblood, Assistant City Manager

Approved by:

___________________________________________________
Micheal Lawson, J.D.

Acting City Manager

Name County Population Fee % Fee details Scope
Albany Alameda 20271 1.75% Percent of total construction costs or Public or private developments with construction Berkeley Alameda 124321

1.75%; 0.8% in lieu; 80%
difference
Percent of total construction costs,
percent of construction costs in lieu or
less than percent on site + 80% difference
New residential projects with five or more units,
new commercial/industrial > 10,000 square feet -
low-income housing, transitional housing and
Emeryville Alameda 12905
1% non-residential; 0.5%
residential
Percent of building construction cost for
art or fee in lieu
Privately developed non-residential buildings with
construction cost >$300,000 or privately developed
Oakland Alameda 440646
1% non-residential; 0.5%
residential
Percent of building development cost for
art or fee in lieu (submit other alternate
proposals in writing)
Private nonresiential building developments that
create 2,000 or more square feet of new floor area,
private residential building developments of 20 or
Union City Alameda 70143 1%; 0.333% >$2,000,000
Percent of building development cost or
fee in lieu
g p g
residential units (including live-work units) with
development costs greater than $250,000
Dublin Alameda 72589

0.5%; 0.45% non-residential
<50,000 sf
Percent of building valuation (exclusive of
land)
New non-residential developments and residential
developments of more than 20 units
Pleasanton Alameda 79871 Optional/discretionary Optional/discretionary Optional/discretionary Livermore Alameda 87955 0.33% Percent of construction costs New residential, industrial and commercial private
developments, as well as substantial
rehabilitations of such spaces (adding 25% or more
Milpitas Santa Clara 80273 0.5%; discretionary in lieu Percent of building development costs Nonresidential developments involving 2000 sf or
more of new floor area, residential developments
Sunnyvale Santa Clara 155805 2%; 1.1% in lieu
Project construction valuation (building
shell), sans land acquisition, site
Nonresidential developments (including hotels) on
lots of two acres or more or at specified "major
Los Altos Santa Clara 31625
1%, in lieu not to exceed
$200,000
Percent of construction costs, minus costs
for BMR housing units
Private, non-residential developments with total
construction costs >$1,000,000.00 in R1-10, R1-H,
R1-20, R1-40 districts; private developments of >=4
units in R3-4.5, R3-5, R-3-3, R3-1.8 and R3-1
districts; private building developments with total
construction costs >$1,000,000.00) in OA, OA-1/OA-

4.5, CN, CD, CRS, CT, CD/R3, CRS/OAD, PC, PCF, and
PUD districts
Palo Alto Santa Clara 68572 1%
Percent of estimated construction
valuation
Construction projects requiring architectural review
over 10,000 square feet with an extimated
construction value of >$200,000
Redwood City San Mateo 84292 1%; difference in lieu
Percent of project's construction
valuation
New commercial developments with gross floor
area greater than or equal to 50,000 square feet
Belmont San Mateo 28335 1%; discretionary in lieu Percent of building development costs Non-residential and mixed use development of
10,000 or more new square feet of floor area,
residential developments of five or more new units
San Mateo San Mateo 105661 1.19%
Percent of total building valuation,
exclusing land acquisition and off-site
improvement costs
All commercial development projects and multi-
family projects >$3 million valuation, may pay fee
in full, use full amount for public art on-site, or use some amount for public art and pay difference as
fee
San Bruno San Mateo 43908
5% residential; 7% non-
residential
Percent of building, mechanical, electrical
or plumbing permit fee All permit-seeking developments
San Francisco San Francisco 873965 1% Percent of total construction cost New building or addition of at least 25k sf in
downtown and other central neighborhoods, and
non-residential developments with new building or
addition of at least 25k sf north of downtown along
the waterfront, most of SoMA, Dogpatch, part of
Mission
Attachment II

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: PH 25-030
DATE: June 17, 2025
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Utility Rate Adjustments: Adopt a Resolution Amending the Master Fee Schedule, Approving the Proposed FY 2026 and FY 2027 Water and Recycled Rates and Facilities Fees, and Finding the Actions are Exempt from CEQA Review

RECOMMENDATION
That the City Council adopts resolutions amending the Master Fee Schedule, approving the proposed water and recycled water rates (Attachment II) and facilities fees (Attachment III), and finding the actions exempt from CEQA review.

SUMMARY
Staff prepared a cost-of-service analyses for providing water and recycled water service to Hayward residents and businesses to calculate appropriate water and recycled water rates and service charges for FY 2026 and FY 2027. This report provides an overview of cost-of-service issues, revenue requirements, and recommended FY 2026 and FY 2027 water and recycled water service rates. Staff presented the proposed rates to City Council to obtain comments during a work session on April 1, 2025, after which the appropriate and required public hearing notice procedures were implemented in accordance with state law prior to this evening’s public hearing. If approved, the adopted rate adjustments would take effect on October 1, 2025, and October 1, 2026.

The City’swater cost of service requirements for FYs 2026 and 2027, if approved, increases annually by 6% on October 1, 2025, and by another 6% on October 1, 2026. The recommended water rates for FY 2026 and FY 2027 include the same overall 6% increase to both bi-monthly fixed service fees and commodity rates in each of the two years for both residential and non-residential customers. If approved, the water rate increases will take effect on October 1 of each fiscal year, resulting in an annual fiscal year increase of approximately 4.5%. The proposed rate adjustments will allow the City to recoup some of the intended temporary use of reserves to cushion the impacts of the large San Francisco Public Utilities Commission (SFPUC) wholesale rate increases due to a 15.9% increase in FY 2023, 9.7% increase in FY 2024, an 8.8% increase in FY 2025 and a further increase of 2.3% effective July 1, 2025, from the wholesale water rate from SFPUC. Even with these proposed rate increases, it is anticipated that CITY OF HAYWARD Printed on 6/12/2025Page 1 of 3
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between $4M to $6M of the Water Fund reserves will be used during each of the next two fiscal years.

Additionally, as part of Hayward’s strategic roadmap to invest in infrastructure, the City Council has established a goal to replace an average of 2 miles of water pipelines each year. However, due to the increase in construction and material costs, at the current funding level, the City is replacing an average of 1.66 miles per year. In FY 2024, $5.5 million was allocated to replace the water lines and $6 million has been budgeted for FY 2025. To support these ongoing efforts, a portion of the water rate is allocated to funding the water lines replacement and the recommended FY 2026 - FY 2035 Capital Improvement Program (CIP) includes $6 million in FY 2026 and $6.3 million in FY 2027 to the water capital replacement fund. The costs associated with replacing and maintaining infrastructure through capital improvement programs are one of the financial driving factors influencing the water rate increases.

Additionally, the continued escalation in construction and material costs further contributes to the need for rate adjustments.

Staff implemented the notification requirements of Proposition 218 for the proposed water rate increase by sending written notice of the proposed water rates to all affected property owners, about 36,000 in total. Written protests are only valid and counted if received from property owners within 45 days of noticing. Notices were also sent to an additional 9,000 billpayers and tenants to inform them of the proposed water rate increase. City Council may not take action on the proposed water rates if a majority of property owners, about 17,000, submit written protests.

The City’s recycled water’s current single-tier volume charge is proposed to change to a two-tier rate structure starting in FY 2026 to be consistent with the current rate structure for using drinking water for irrigation. The staff report for April 1, 2025, work session outlined the initial recommended recycled water commodity rate with two tiers: the first tier at $7.70 per CCF for the first 170 CCF, and the second tier at $9.80 per CCF for usage over 170 CCF in FY 2026. To reduce the rate impact on Hayward businesses, Staff have revised the initial recommendation and proposed a phased-in approach by lowering the second-tier rate from $9.80 to $8.70 per CCF in FY 2026. The proposed rates for FY 2026 and FY 2027 are displayed in the table below:

Recycled Water Bi-Monthly
Tiers (CCF)
Current Proposed Oct
1, 2025
Proposed Oct
1, 2026
Tier 1 1 - 170 CCF $7.44 $7.70 $8.16
Tier 2 >170 CCF $7.44 $8.70 $10.39
With the proposed rates, the cost increase for customers in FY 2026 will range between 3.4% to 14.3% and the FY 2027 increase will range between 5.6% to 16.1%. Even with the proposed rate increases, the recycled water rates provide a discount of up to 33%, in the first year and up to 25% in the second year, compared to the use of drinking water for irrigation. Similar to water service fees, the City’s recycled water fixed service fee is proposed to increase by 6% in FY 2026 and another 6% in FY 2027. Staff recommend that the fixed service fee remain the same as the water service fee for potable water in FY 2026 and FY 2027.

Under the notification requirements of Proposition 218, written notice of the proposed recycled water rates was sent to 47 affected recycled water parcel owners. Notices were also sent to an additional 64 CITY OF HAYWARD Printed on 6/12/2025Page 2 of 3
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rates was sent to 47 affected recycled water parcel owners. Notices were also sent to an additional 64 billpayers and tenants on record to inform them of the proposed recycled water rate increase. City Council may not take action on the proposed recycled water rates if a majority of parcels owners, about 23, submit written protests.

Water and Recycled Water Facilities Fees, also referred to as connection fees, are not subject to Proposition 218 requirements and were not included in the Proposition 218 notice. A separate notice of the proposed facilities fee increases was sent to developers, Building Industry Association, and the Chamber of Commerce Government Relationship Council (GRC). Staff attended a GRC meeting in May, presented the proposed water rates and facilities fees, and responded to questions. Proposed facilities fee adjustments information was posted on the City’s website and public hearing notice of the proposed adjustment was published in the newspaper.

ATTACHMENTS
Attachment I Staff Report
Attachment II Water & Recycled Water Rates Resolution
Attachment III Facilities Fees Resolution
Attachment IV Summary of Protest Letters
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DATE: June 17, 2025

TO: Mayor and City Council

FROM: Director of Public Works

SUBJECT: Utility Rate Adjustments: Adopt a Resolution Amending the Master Fee Schedule, Approving the Proposed FY 2026 and FY 2027 Water and Recycled Rates and Facilities Fees, and Finding the Actions are Exempt from CEQA Review

RECOMMENDATION

That the City Council adopts resolutions amending the Master Fee Schedule, approving the proposed water and recycled water rates (Attachment II) and facilities fees (Attachment III), and finding the actions exempt from CEQA review.

SUMMARY

Staff prepared a cost-of-service analyses for providing water and recycled water service to Hayward residents and businesses to calculate appropriate water and recycled water rates and service charges for FY 2026 and FY 2027. This report provides an overview of cost-of- service issues, revenue requirements, and recommended FY 2026 and FY 2027 water and recycled water service rates. Staff presented the proposed rates to City Council to obtain comments during a work session on April 1, 2025, after which the appropriate and required public hearing notice procedures were implemented in accordance with state law prior to this evening’s public hearing. If approved, the adopted rate adjustments would take effect on October 1, 2025, and October 1, 2026.

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2023, 9.7% increase in FY 2024, an 8.8% increase in FY 2025 and a further increase of

2.3% effective July 1, 2025, from the wholesale water rate from SFPUC. Even with these proposed rate increases, it is anticipated that between $4M to $6M of the Water Fund reserves will be used during each of the next two fiscal years.

Additionally, as part of Hayward’s strategic roadmap to invest in infrastructure, the City Council has established a goal to replace an average of 2 miles of water pipelines each year.

However, due to the increase in construction and material costs, at the current funding level, the City is replacing an average of 1.66 miles per year. In FY 2024, $5.5 million was allocated to replace the water lines and $6 million has been budgeted for FY 2025. To support these ongoing efforts, a portion of the water rate is allocated to funding the water lines replacement and the recommended FY 2026 – FY 2035 Capital Improvement Program (CIP) includes $6 million in FY 2026 and $6.3 million in FY 2027 to the water capital replacement fund. The costs associated with replacing and maintaining infrastructure through capital improvement programs are one of the financial driving factors influencing the water rate increases. Additionally, the continued escalation in construction and material costs further contributes to the need for rate adjustments.

Recycled Water Bi-Monthly
Tiers (CCF) Current Proposed
Oct 1, 2025
Proposed
Oct 1, 2026
Tier 1 1 – 170 CCF $7.44 $7.70 $8.16
Tier 2 >170 CCF $7.44 $8.70 $10.39

With the proposed rates, the cost increase for customers in FY 2026 will range between

3.4% to 14.3% and the FY 2027 increase will range between 5.6% to 16.1%. Even with the proposed rate increases, the recycled water rates provide a discount of up to 33%, in the

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first year and up to 25% in the second year, compared to the use of drinking water for irrigation. Similar to water service fees, the City’s recycled water fixed service fee is proposed to increase by 6% in FY 2026 and another 6% in FY 2027. Staff recommend that the fixed service fee remain the same as the water service fee for potable water in FY 2026 and FY 2027.

Under the notification requirements of Proposition 218, written notice of the proposed recycled water rates was sent to 47 affected recycled water parcel owners. Notices were also sent to an additional 64 billpayers and tenants on record to inform them of the proposed recycled water rate increase. City Council may not take action on the proposed recycled water rates if a majority of parcels owners, about 23, submit written protests.

BACKGROUND

At the April 10, 20251 work session, the City Council reviewed the proposed water and recycled water rates and facilities fees for FY 2026 and FY 2027. The work session staff report provides a discussion of the cost-of-service issues, revenue requirements and recommended rates. Key information from the work session report is summarized in the following discussion.

DISCUSSION

Water Rates
The recommended water rate increase is 6% effective October 1, 2025, in FY 2026 and 6%, effective October 1, 2026,in FY 2027. Staff is recommending increases of 6% in fixed bimonthly service charges and water commodity rates across all customer classes in FY 2026 and FY 2027. As a result of these recommended changes, average residential users would see an overall increase of 6% in their water bills and non-residential users could see similar increases in their bills. If approved, the water rate increases will take effect on October 1 of each fiscal year, resulting in an annual increase of 4.5%. The proposed rate adjustments will allow the City to recoup some of the intended temporary use of reserves to cushion the impacts of the large San Francisco Public Utilities Commission (SFPUC) rate increases due to a 15.9% increase in FY 2023, 9.7% increase in FY 2024, an 8.8% increase in FY 2025 and a further increase of 2.3% effective July 1, 2025, from the wholesale water

1 https://hayward.legistar.com/LegislationDetail.aspx?ID=7283608&GUID=E77532EB-2E73-4B3C-B15B- 19C11955BA73&Options=&Search=

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Hayward City CouncilJune 17, 2025

Hayward City Council
June 17, 2025