Hayward City Council
June 17, 2025

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.

SFPUC Pass-Through
The City’s proposed FY 2027 rate increase is based on SFPUC’s current projection of 1% wholesale rate increase in FY 2027. Pursuant to California Government Code Section 53756, Staff is proposing to pass through any additional increases in SFPUC wholesale water rates when the actual SFPUC rates substantially exceed the estimates. The pass- through will allow Hayward to pass the additional increase to rate payers to recoup costs as necessary. Prior to implementing a pass-through of the SFPUC wholesale water rates, Staff will send written notification to all customers at least 30 days prior to the effective date. Rate payers were notified of the pass-through in the Proposition 218 notice.

Annual Water Pipeline Replacement Capital Improvement Program (CIP) 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 225. 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.

Low-Income Service Fee
Staff is proposing to retain the low-income bi-monthly service fee for single-family residential customers who meet certain income thresholds, a policy that has long been supported by the City Council. Customers that qualify for this discount are charged a reduced bi-monthly water service charge, equal to 35% of the service charge, or a 65% discount. This discount does not violate the requirements of proposition 218 because revenues that are not generated from rates, e.g., revenue from water installation fees are used to fund the discounts. They are discretionary funds, not subject to the strict requirements of Prop 218. That means, to the extent that the total cost of the discounts does not exceed the available discretionary fund amount, the use of these funds for this purpose is not unreasonable, and that other customers are not unfairly subsidizing others.

Proposition 218
Proposition 218, now a part of the California constitution, states that “property related fees and charges” may not exceed the proportional cost of providing the service to the customer and may not be used for any purpose other than providing said service to the customer and may not be used for any purpose other than providing said service. It affects the rate adoption process by requiring agencies to hold a public hearing to adopt rates. The agency

must mail public hearing notices to all customers no fewer than 45 days prior to the public hearing. The public hearing notices must clearly show all proposed rate changes, provide information on the public hearing date/time/location, and provide instructions on how customers may protest the proposed rate changes. If a majority of customers submit a protest in writing, the proposed rate changes cannot be adopted.

Drought Surcharge
The purpose of the drought surcharge is to recover revenues that may be lost as a result of substantially reduced consumption or drought-related wholesale rate increases by SFPUC in the event of a water supply shortage, or other local water use restrictions. Drought rates are not needed at this time as the reservoirs have been replenished from recent storms.

SFPUC has stated they do not anticipate calling for mandatory cutbacks. If such rates are required in the next two years, staff will return to City Council for fuller discussion and make recommendations.

Comparison with Other Agencies
Figure A and Figure B show how the City’s current and proposed water rates compare to other neighboring and nearby agencies. While this comparison is provided in keeping with a long-standing practice and the City Council’s desire to know how the City’s rates compare with neighboring agencies, some factors should be considered regarding this information.

The agencies in “Figure A – Immediate Area Water Agencies” are either not dependent on SFPUC’s expensive (and high quality) water (such as East Bay Municipal Utility District) or use a small fraction of SFPUC water (such as Alameda County Water District). Therefore, they are not affected, or affected to a much lesser degree, by the high cost and significant wholesale water rate increases imposed by SFPUC.

Figure A - Immediate Area Water Agencies - Bimonthly Water Bill Comparison

Figure B - Immediate Area Water Agencies - Bimonthly Water Bill Comparison

$148.38 $143.35 $134.64 $135.24 $128.34 $127.75
$0
$50
$100
$150
$200
EBMUD
(Proposed
7/1/25)
Hayward
(Proposed
10/1/25)
CCWD
(Eff. 2/1/25)
Hayward
(Current)
ACWD
(Eff. 3/1/25)
DSRSD
(Eff. 1/1/25)
Single Family Residential Bill for 12 ccf
(Local Non-SFPUC Agencies)
$1,045.32 $1,019.08 $986.15
$858.80 $785.34
$674.64
$0
$200
$400
$600
$800
$1,000
$1,200
Hayward
(Proposed
10/1/25)
EBMUD
(Proposed
7/1/25)
Hayward
(Current)
CCWD
(Eff. 2/1/25)
DSRSD
(Eff. 1/1/25)
ACWD
(Eff. 3/1/25)
Commercial Bill for 110 ccf
(Local Non-SFPUC Agencies)

Figure C and Figure D compare the City’s water rates with agencies with the same water supply provider. Among SFPUC wholesale agencies, Hayward’s proposed rates rank near the lowest for Single Family Residential bills and are the lowest for Commercial customers, such as restaurants. Apart from Mountain View, the cities of Hayward, Redwood City, and Palo Alto purchase 100% of their water supply from SFPUC. Mountain View purchases approximately 87% of their water supply from SFPUC and the remaining 13% from the Santa Clara Valley Water District and local groundwater supplies. If Mountain View were to purchase 100% of its water supply from SFPUC, its water rates would likely be higher than the rates currently proposed by the City of Hayward.

In May 2025, the City of Palo Alto issued a notice to customers indicating that, in addition to the City’s approved 10% increase, a 2.3% rate increase from SFPUC for FY 2026 would also be passed through, effective July 1, 2025.

Figure C - 100% SFPUC Wholesale Agencies - Bimonthly Water Bill Comparison

Figure D - 100% SFPUC Wholesale Agencies - Bimonthly Water Bill Comparison

$168.40 $166.87
$143.35 $143.08 $135.24
$0
$50
$100
$150
$200
Palo Alto
(Proposed
7/1/25)
Redwood City
(Eff. 1/1/25)
Hayward
(Proposed
10/1/25)
Mountain View
(Eff. 7/1/25)
Hayward
(Current)
Single Family Residential Bill for 12 ccf (SFPUC Wholesale Agencies) $1,279.36 $1,272.54
$1,080.70 $1,045.32 $986.15
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
Redwood City
(Eff. 1/1/25)
Palo Alto
(Proposed
7/1/25)
Mountain View
(Eff. 7/1/25)
Hayward
(Proposed
10/1/25)
Hayward
(Current)
Commercial Bill for 110 ccf
(SFPUC Wholesale Agencies)

Offering discounts to low-income residents, as the City does, which is not common, also affects the rates. Finally, an agency’s water rates should be considered in light of the system’s performance, its operational robustness, its maintenance record, and its flexibility to operate in both normal and emergency situations. In that respect, the City’s water system is among the best.

Recycled Water Rates
Staff recommend modifying the single-tier volume charge into a two-tier rate structure that offers an incentive to utilize recycled water while adequately recovering costs over the life of the project. Staff is proposing to charge the same bimonthly service charges as drinking water used for irrigation in FY 2026 and FY 2027. The staff report for April 1, 2025, work session outlined a 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 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:

Table 1 – Recycled Water Proposed Rate

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%. The FY 2027 increase will range between 5.6% to 16.1%. Even with 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. The recycled water Proposition 218 notice distributed on April 18, 2025, indicated a potential discount of up to 42% compared to drinking water for irrigation.

However, staff would like to clarify that the correct maximum discount is up to 33%. Table 2 below presents the irrigation rate to highlight the difference between irrigation and recycled water rates.

Table 2 – Irrigation Proposed Rate

Irrigation
(Drinking Water)
Bi-Monthly
Tiers (CCF) Current Proposed
Oct 1, 2025
Proposed
Oct 1, 2026
Tier 1 1 – 170 CCF $9.68 $10.27 $10.89
Tier 2 >170 CCF $12.32 $13.06 $13.84

Water and Recycled Water Facilities Fees
Staff recommend a 10% annual increase for the water facilities fee and a 10% annual increase for recycled water facilities fee in each FY 2026 and FY 2027. Staff is proposing to use the same recommended potable water facilities fee for the small number of new recycled water customers, as the City plans for expansion of the recycled water system and adding more customers. Appropriate facilities fees will be calculated after development of the Recycled Water System Master Plan.

ECONOMIC IMPACT

The typical single-family residential customer, with average bi-monthly water use of 12 ccf (150 gallons per day), will see an increase of $4.09 per month in water cost in the first year and $4.34 in the second year. About two-thirds of these pay for SFPUC’s water purchases.

While staff recognize that any rate increase will affect customers and should be minimized, it is critical that the City maintain reliable and robust utilities systems, in conformance with ever more stringent federal and state rules and regulations on the onset of the climate crisis, in the interest of economic viability, quality of life, and maintaining public health, and meeting increasingly stringent regulations.

The customers who are adversely impacted by the $4.09 per month increase in the first year can offset this cost by reducing their daily usage by 11 gallons, based on the average single-family household consumption of 150 gallons per day. In the second year, the additional increase of $4.34 per month can be offset by a reduction of 11 gallons per day, from the first year, over the same average usage.

FISCAL IMPACT

The Water and Recycled Water Funds each maintain a working capital balance, or fund balance, in order to manage emergencies, maintain positive cash flows, the fund’s credit worthiness and, at times, smooth out needed rate adjustments so that the City is not forced to implement a significant increase in a single year, which can result in customer discontent. Water facilities fees support Capital Improvement Program (CIP) projects in the Water Improvement Fund.

There are no impacts on the General Fund related to water and recycled water rate adjustments or facilities fees.

Water Fund
The Water Enterprise Fund reserves are recommended to manage operating costs, capital expenditures and rate stabilization to protect customers from steep rate adjustments in the event of larger-than-anticipated increases in wholesale water rates. In general, it is recommended that the City maintains a reserve target of approximately 25% of operating and maintenance expenses in one year, 100% of the rolling average of five years of rate- funded capital, and 25% of commodity rate revenues. It is also recommended that the City maintains approximately one year of operating costs in reserve, which is approximately $40 million in FY 2025. However, a portion of the water fund’s working capital reserve is

anticipated to be spent down in FY 2025 and the use of reserve will continue in the next few years in order to cushion the impacts of SFPUC’s rate increases on City residents and businesses, and to not pass the increases on to ratepayers in the form of steep rate adjustments.

Recycled Water Fund
The Recycled Water Enterprise Fund is a separate enterprise with its own rate structure.

Revenue and expense for delivering recycled water are tracked separately from water transactions. While the expenses and revenues in the Recycled Water Fund would be modest initially, they would increase as new customers are added, and future project phases are implemented.

Capital Improvement Program

Water Improvement Fund
All revenues derived from Water Facilities Fees are deposited in the Water System Capital Improvement Fund and used only for planned existing and future capital projects related to improvement and expansion of the water system, such as the System Seismic Upgrades and New Emergency Well B2 projects.

The revenues derived from Recycled Water Facilities Fees will be deposited into the Water or Sewer Improvement Fund, as appropriate, to fund projects related to expanding or improving the Recycled Water System.

STRATEGIC ROADMAP

The proposed rate adjustments align with the City’s current Strategic Priority of improved infrastructure by providing the funding necessary to maintain and improve the water distribution system and recycled water treatment and distribution system. Reliable utility services support other priorities such as housing and economic growth.

SUSTAINABILITY FEATURES

Water Conservation
Water conservation programs, such as the high efficiency fixture replacement and lawn replacement rebate programs, are funded through water rate revenue and provide customers with the tools to assist them in efficiently managing water usage.

Recycled Water
The use of recycled water will reduce the demand for drinking water and improve the reliability and availability of drinking water, while providing a sustainable and drought- proof water supply for some irrigation and eventually industrial uses. It will also reduce the volume of wastewater and associated nutrients, and residual pollutants discharged to San Francisco Bay, which is required to meet increasingly stringent discharge regulations.

Environmental Review
Section 15273 of the California Environmental Quality Act (CEQA) Guidelines includes an exemption of environmental review for revisions to rates and charges that are for the purpose of 1) meeting operating expenses; 2) purchasing or leasing supplies, equipment, and materials; 3) meeting financial reserve requirements; or 4) obtaining funds for capital projects necessary to maintain services and system reliability within existing service areas.

No additional CEQA review is required.

PUBLIC CONTACT

With the City Council’s concurrence, staff implemented the legal notice requirements of Proposition 218, which mandates written notice of the proposed rates to all affected property owners at least 45 days in advance of the public hearing. A new law, AB 2257, encourages written responses to written protests received before a public hearing.

Therefore, notices were sent 60 days in advance to accommodate sufficient time for delivery and City preparing written response to any written objections if needed. Although not required, in instances where a party, other than the property owner, is the account holder on record, notices were also sent to notify them of the proposed water rates. The notice described the proposed increases and listed current and proposed rates, and the property owners’ right to protest the rates. In addition, the notice also included resources to the City’s water conservation programs, water customer portal, and low-income discount eligibility information. Attachment IV includes a summary of the protest letters and staff’s response to the different types of protests.

Regarding the 19 protest letters related to water received through June 2, 2025, staff conducted a review of the average water consumption for each customer to assess the financial impact and explore options for mitigating the impact of the proposed rate increases. Water consumption among customers varies significantly, with daily usage ranging from a high of approximately 400 gallons to a low of 50 gallons per day per household, versus the average of 150 gallons per day. Staff may initiate outreach to discuss strategies for reducing consumption and to share information about available water conservation programs that may help lower usage and costs. For customers with higher- than-average water usage, it may not be too difficult to reduce their usage by a few percentage points to lessen the impact of the proposed rate increases.

City Council may not take action on the water or recycled water rates if a majority of affected property owners, file written protests: about 17,000 for water and about 23 for recycled water. Staff will report on the number of written protests received by the City Clerk at the close of the public hearing.

In addition to Proposition 218 notifications, the public hearing notice was published twice in the Daily Review on May 30 and June 6, and on the City’s website.

Water and Recycled Water Facilities charges are not subject to Proposition 218 requirements and were not included in the Proposition 218 notice. However, a notice of the proposed facilities fee changes was sent to developers, Building Industry Association, and

the Hayward Chamber of Commerce Government Relationship Council (GRC). Staff also presented the proposed facilities fee adjustments at the Hayward Chamber of Commerce GRC meeting and responded to questions. Information was also posted on the City’s website. A public hearing notice was published in the Daily Review on May 30 and on the City’s website.

NEXT STEPS

If approved, the new rates would be effective on October 1, 2025, and October 1, 2026.

Prior to these dates, staff will include notices in utility bills to inform customers about the rate adjustments and will update the website with the approved rates.

Prepared by: Trang Nguyen, Management Analyst II

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 AMENDING THE MASTER FEE SCHEDULE AND APPROVING

WATER AND RECYCLED WATER RATES

WHEREAS, Section 15273 of the California Environmental Quality Act Guidelines states that CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares and other charges by public agencies which the public agency finds are for the purpose of:

1. Meeting operating expenses, including employee wage rates and fringe benefits,

2. Purchasing or leasing supplies, equipment or materials,

3. Meeting financial reserve needs and requirements, or

4. Obtaining funds for capital projects necessary to maintain service within existing service areas.

WHEREAS, the City Council finds and determines that this action is exempt from CEQA based on the foregoing provisions.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward hereby amends the Master Fee Schedule and approves the following water and recycled water rates of the City of Hayward, a copy of which is on file in the Office of the City Clerk.

The approved water and recycled wat er rates shall be effective on October 1, 20 25, and October 1, 2026, as shown.

Water Usage Rates

The water usage tiers and rates, based on consumption per hundred cubic feet (ccf), shall be as follows:

Usage Rate/ccf Rate/ccf
Oct 1, 2025 Oct 1, 2026
Residential Rates
Single Family 1 - 8 ccf $8.01 $8.50
Multi-family (based on 9 - 18 ccf $9.49 $10.06
average usage per >18 ccf $11.66 $12.36
dwelling unit)

Non-Residential 1 – 110 ccf $8.69 $9.22
>110 ccf $10.20 $10.82

Irrigation 1 – 170 ccf $10.27 $10.89
>170 ccf $13.06 $13.85

Hydrant All usage $9.67 $10.26

Meter Service Charges

The bimonthly standard meter service charge for all meters (except temporary service for construction work), based on size of meter, shall be as follows:

Oct 1, 2025 Oct 1, 2026
⅝” meter $41.34 $43.82
¾" meter $57.67 $61.14
1” meter $90.37 $95.79
1 ½" meter $172.08 $182.40
2” meter $270.14 $286.35
3” meter $580.64 $615.48
4” meter $1,038.23 $1,100.52
6” meter $2,133.15 $2,261.14
8” meter $4,584.48 $4,859.55
10” meter $6,872.40 $7,284.74

The bimonthly fire service charges shall be as follows:

Oct 1, 2025 Oct 1, 2026
⅝” meter $8.80 $9.33
¾" meter $8.90 $9.43
1” meter $9.17 $9.72
1½" meter $10.12 $10.73
2” meter $11.81 $12.52
3” meter $17.83 $18.90
4” meter $28.21 $29.90
6” meter $65.44 $69.37
8” meter $129.65 $137.43
10” meter $226.25 $239.83

Meter Service Charge for Low Income Customers

Notwithstanding any other provision of the Hayward Municipal Code, Chapter 11, Article 2, the bimonthly meter service charge for Low Income Customers shall be applie d by this subsection to any customer that:

(a) Meets the City income guidelines as defined in the All City Departments section of the Master Fee Schedule; and
(b) Files with the Revenue Division of the Finance Department a discount application and adequate documentary evidence showing that the applicant meets the provision of subparagraph (a).

The bimonthly meter service charge for Low Income Customers with a standard service (⅝”, ¾", and 1”) shall be as follows:

Oct 1, 2025 Oct 1, 2026
⅝” meter, low income $14.48 $15.35
¾” meter, low income $20.20 $21.42
1” meter, low income $31.64 $33.54

Recycled Water Meter Service Charges

The bimonthly standard recycled water meter service charge for all recycled meters, based on size of meter, shall be as follows:

Oct 1, 2025 Oct 1, 2026
⅝” meter $41.34 $43.82
¾" meter $57.67 $61.13
1” meter $90.37 $95.79
1 ½" meter $172.08 $182.40
2” meter $270.14 $286.35
3” meter $580.64 $615.48
4” meter $1,038.23 $1,100.52
6” meter $2,133.15 $2,261.14
8” meter $4,584.48 $4,859.55
10” meter $6,872.40 $7,284.75

Recycled Water Usage Rate

Rate/CCF Rate/CCF
Oct. 1, 2025 Oct. 1, 2026
Tier 1 $7.70 $8.16
Tier 2 $8.70 $10.39

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 AMENDING THE MASTER FEE SCHEDULE AND APPROVING

WATER AND RECYCLED WATER FACILITIES FEES

WHEREAS, Section 15273 of the California Environmental Quality Act Guidelines states that CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares and other charges by public agencies whi ch the public agency finds are for the purpose of:

1. Meeting operating expenses, including employee wage rates and fringe benefits,

2. Purchasing or leasing supplies, equipment or materials,

3. Meeting financial reserve needs and requirements, or

4. Obtaining funds for capital projects necessary to maintain service within existing service areas.

WHEREAS, the City Council finds and determines that this action is exempt from CEQA based on the foregoing provisions.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward hereby amends the Master Fee Schedule and approves the following water and recycled water facilities fees of the City of Hayward, a copy of which is on file in the Office of the Ci ty Clerk. The approved water and recycled water connection (or facilities) fees shall be effective on September 1, 2025, as shown.

Water Connection (or Facilities) Fee

(1) Residential

The facilities fee will be based on the water meter size required to meet the indoor demand (excluding fire service demand) and outdoor demand of the residence as determined by the City, based on fixture unit count . The meter that is installed may be larger than the meter facilities fee that is charged if the service is combined with a private fire service. For multi- family complexes, the facilities fee will be based on the water meter size required to meet the indoor demand for each dwelling unit, as determined by the City, regardless of the arrangement of water meters or meter sizes at the premises.

(a) ⅝" meter $7,846.00
(b) ¾" meter $11,773.00
(c) 1" meter $19,614.00

(2) Non-residential, each separate irrigation service, and each residential unit with meter size larger than 1”

(a) ⅝" meter $7,846.00
(b) ¾" meter $11,773.00
(c) 1" meter $19,614.00
(d) 1 ½" meter $39,228.00
(e) 2" meter $62,763.00
(f) 3" meter $124,425.00
(g) 4" meter $196,141.00
(h) 6" meter $392,282.00
(i) 8" meter $627,651.00
(j) 10" meter $902,249.00

(3) Fire Service, per service regardless of size $7,846.00

For reference, below is the fixture unit count and its corresponding equivalent meter size.

Equivalent Meter Size Calculation
Total Fixture Unit Count Corresponding
Equivalent Meter Size
Maximum Flow Capacity
(GPM)
0-23 5/8" 15

23.5-40 3/4" 25

40.5-85 1" 40

85.5-150 1.5" 80

Recycled Water Connection (or Facilities) Fee

(1) The recycled water connection fee will be based on the recycled water meter size required to meet the recycled water demand of the property as determined by the City.

(a) ⅝" meter $7,846.00
(b) ¾" meter $11,773.00
(c) 1" meter $19,614.00
(d) 1½" meter $39,228.00
(e) 2" meter $62,763.00
(f) 3" meter $124,425.00
(g) 4" meter $196,141.00
(h) 6" meter $392,282.00
(i) 8" meter $627,651.00
(j) 10" meter $902,249.00

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 IV

Type of Protest
Letters/Concerns
Number of Protest
Letters Received City’s Response
General Protest stating “I protest
the water rates” without stating
any specific reasons. 9
A protest letter was received, and no response was issued as protests did not include any concerns that needed to be addressed.

Alleging the City is not in
compliance with Proposition 218 6
Provided information regarding the reason for the rate increase. The response also included water conservation resources to help reduce water use.

Experiencing Financial Hardship
or on Fixed Income 4
Provided information regarding the reason for the rate increase. In addition, a low-income discount application was included for water meter service charge to single-family residential customers who meet specific income qualifications. Information regarding water conservation resources was also included to help reduce water use.

Total Protest Letters Received
(As of June 2, 2025) 19

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: PH 25-031
DATE: June 17, 2025
TO: Mayor and City Council
FROM: Interim Director of Finance

SUBJECT
FY 2025-26 Budget/CIP Public Hearing and Adoption: Public Hearing for the Proposed FY 2025-26 Operating Budgets for the City of Hayward, Hayward Redevelopment Successor Agency, and Hayward Housing Authority; FY 2025-26 Capital Improvement Program Budget; Adoption of the FY 2025-26 Operating Budgets and Appropriations for FY 2025-26; Adoption of the FY 2025-26 Capital Improvement Program Budget and Appropriations for FY 2025-26; Adoption of the Hayward Redevelopment Successor Agency Budget; and Adoption of the Hayward Housing Authority Budget

RECOMMENDATION
That the Council: considers the Proposed FY 2025-26 Operating Budgets of the City, Redevelopment Successor Agency, Housing Authority and Capital Improvement Program (CIP); conducts a Public Hearing on each; and adopts each of the above-mentioned documents should there be no further action needed based on public testimony or at Council’s request.

SUMMARY
The Council will conduct a public hearing for the adoption of the Proposed FY 2025-26 Operating Budgets and FY 2025-26 Capital Improvement Program Budget. Should there be no needed actions following public testimony or Council direction, Council will consider adoption of the FY 2025-26 Operating Budgets, and FY 2025-26 Capital Improvement Program Budget.

ATTACHMENTS
Attachment I Staff Report
Attachment II FY 2026 Operating Budget Resolution
Attachment III FY 2026 Exhibits A & B to FY 2026 Operating Budget Resolution Attachment IV FY 2026 Budget Redevelopment Agency Successor Resolution Attachment V FY 2026 Budget Housing Authority Resolution Attachment VI FY 2026 Budget Community Agency Funding Resolution in the General Fund Social Services and Arts and Music Category with Exhibit A Attachment VII FY 2026 Budget Community Agency Funding Resolution in the CITY OF HAYWARD Printed on 6/12/2025Page 1 of 2
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File #:PH 25-031
Economic and Infrastructure Category with Exhibit A
Attachment VIII FY 2026 Budget Community Agency Funding Resolution in Public Services Category with Exhibit A-C
Attachment IX FY 2026 Capital Improvement Projects Budget Resolution Attachment X FY 2026 Budget Adoption Addendum
CITY OF HAYWARD Printed on 6/12/2025Page 2 of 2
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DATE: June 17, 2025

TO: Mayor and City Council
Redevelopment Successor Agency Board of Directors
Housing Authority Board of Directors

FROM: Acting City Manager
Interim Director of Finance

SUBJECT: FY 2025-26 Budget/CIP Public Hearing and Adoption: Public Hearing for the Proposed FY 2025-26 Operating Budgets for the City of Hayward, Hayward Redevelopment Successor Agency, and Hayward Housing Authority; FY 2025- 26 Capital Improvement Program Budget; Adoption of the FY 2025-26 Operating Budgets and Appropriations for FY 2025-26; Adoption of the FY 2025-26 Capital Improvement Program Budget and Appropriations for FY 2025-26; Adoption of the Hayward Redevelopment Successor Agency Budget; and Adoption of the Hayward Housing Authority Budget

RECOMMENDATION

That the Council: considers the Proposed FY 2025-26 Operating Budgets of the City, Redevelopment Successor Agency, Housing Authority and Capital Improvement Program (CIP); conducts a Public Hearing on each; and adopts each of the above-mentioned documents should there be no further action needed based on public testimony or at Council’s request.

SUMMARY

The Council will conduct a public hearing for the adoption of the Proposed FY 2025-26 Operating Budgets and FY 2025-26 Capital Improvement Program Budget. Should there be no needed actions following public testimony or Council direction, Council will consider adoption of the FY 2025-26 Operating Budgets, and FY 2025-26 Capital Improvement Program Budget.

BACKGROUND

The Proposed FY 2025-26 Operating Budget was delivered to Council on Thursday, May 1, 2025, in advance of the May 13, 2025, work session. The operating budget is comprised of different funding sources, with the General Fund representing the largest single fund for which the Council has the most discretion. The total City expenditure budget for the Proposed FY 2025-26 Annual Budget as provided to Council on May 1, 2025, was $445.3 million, with a General Fund budget of $232.2 million.

Since May 1, Council held a budget work session on May 13 to further discuss the proposed budget1. These work sessions included Council discussions and a time for public input on the City’s FY 2025-26 overall operating budget.

The CIP budget work session was held on May 62. No changes were recommended following the work session to the FY 2025-26 Proposed Operating and CIP Budgets. This meeting has been noticed as a public hearing on the FY 2025-26 Proposed Operating and CIP budgets and is another opportunity to receive public input. Upon closure of the public hearing, Council will provide any additional comments and direction to staff and, should there be no public testimony or Council directed changes to the FY 2025-26 Proposed Operating and CIP budgets, both documents will be considered for adoption upon the closing of the Public Hearing. Should there be public testimony and/or direction from the Council that requires changes to either the FY 2025-26 Operating or CIP budgets, the public hearing will be closed, and the Proposed FY 2025-26 Operating and CIP budgets will be presented for adoption on June 17, 2025.

DISCUSSION

The Proposed FY 2025-26 Operating Budget and CIP documents provide the foundation for the budget discussions. Through discussions at the various budget work sessions and meetings, recommended adjustments to the proposed budget are incorporated in this report, which contains a summary of the changes to date, and the impacts to the General Fund and all other operating funds.

The Proposed FY 2025-26 Operating Budget provided to Council on May 1, 2025, reflected a projected deficit of $12.6 million use of reserves. The City continues to forecast structural budget gaps in future years due to increase in operating costs. On Tuesday, May 13, 2025, Council discussed the Proposed FY 2025-26 Operating Budget during a work session.

During the May 13, 2025 Budget Work Session with City Council, City Council requested staff present additional short-term strategies to reduce the anticipated use of $12.6 million in General Fund Reserves for FY 2025-26 and long-term budget balancing strategies to regain the City’s fiscal solvency. Since the May 13 Budget Work Session, further analysis of the FY 2025-26 proposed budget was completed and staff identified an increase in the use of reserves for FY 2025-26 due to an incorrect assumption regarding reduction in overtime ($3.5 million) in Hayward Fire Department’s budget, bringing the total anticipated use of General Fund reserves for next fiscal year to $16.1 million.

Staff recommend various strategies to reduce the project deficit, found in Attachment IX, to incorporate after the FY 2025-26 budget adoption and prior to the FY 2025-26 Fall Revision.

Based on the strategies listed below, the City will realize approximately $7.2 million in savings, reducing the anticipated use of reserves to $8.9 million. These strategies are one-time

1CITY OF HAYWARD - Meeting of City Council on 5/13/2025 (legistar.com) 2 CITY OF HAYWARD - Meeting of City Council on 5/06/2025 (legistar.com)

in nature and additional discussions and analysis are required for long-term strategies to reduce the City’s expenditures and rebuild General Fund reserves. These long-term strategies will be presented during the FY 2025-26 Fall Revision.

Vacancy Management

As we work to close the General Fund structural deficit, the City has taken a disciplined approach to managing vacancies as one of several tools for containing costs. We are prioritizing positions that directly support Council-adopted priorities and provide the most critical services to the community.

This approach will continue into the new fiscal year, allowing for a more selective, case-by- case evaluation of staffing needs. By more closely examining hiring decisions without implementing across-the-board reductions, the City can remain responsive to community needs while exercising greater financial discipline during this period of fiscal constraint.

Property Sales or Leases

While the City may consider selling public assets like land or infrastructure to generate cash during a budget deficit, this may have detrimental long-term consequences. This approach only addresses one fiscal year and does not solve the underlying structural deficit moving forward.

Once sold, the City loses the ability to control any public benefit to the community resource like a park or other recreational use. There is also the loss of potential future revenue that the asset may gain. Trying to sell quickly, the City may also lose on by selling the property for less than its actual value.

An alternative to selling these assets could be exploring other alternatives like leasing the land or assisting non-government entities who partner with the City in serving the community.

County’s Financial Contribution to Homeless Services

The City is also committed to addressing emerging priorities—particularly the increasing demand to support the unhoused population and respond to the regional housing crisis. In 2024, the City saw a four percent increase in the number of unsheltered individuals living in Hayward since 2022, which represents about four and a half percent of the total population of unsheltered individuals in Alameda County.

An earlier iteration of this budget message stated that “in FY 2023-24, the City of Hayward received less than one percent of Alameda County’s total investment in homelessness services and programs.” That statement was inaccurate. The confusion stemmed from a misreading of regional data that reflected Hayward’s share of overall spending on homelessness—not the amount invested in Hayward by the County. In fact, the City of Hayward contributed approximately $3 million, or 0.7%, toward the collective investment in homelessness services across Alameda County last fiscal year.

As more residents face housing instability, Hayward remains committed to addressing this crisis through both prevention and response. We value our partnerships with Alameda County and neighboring jurisdictions and look forward to deepening collaboration through the Home Together plan and other shared efforts in FY 2025-26 and beyond.

Strategic Roadmap

The City Council held strategic planning sessions on March 8 and April 15 to set priorities for FY 2025-26. At these sessions, Council Members confirmed that the existing vision and priority areas of the Strategic Roadmap continue to be the right fit for Hayward. Council Members also participated in a dot voting exercise to rank 127 projects and metrics. Based on the dot voting results, staff are actively working on or planning to work on 98 items over the coming year. In addition, staff are analyzing the feasibility of twelve items that were raised by Council and will report back in September to finalize the work plan for FY 2025-26.

Summary of Proposed FY 2025-26 Operating Budget

The tables below illustrate the proposed FY 2025-26 Operating Budget expenditure and revenue projections as presented to Council on June 17, 2025.

Table 1 – Citywide Expenditure Budget

Unanticipated additional grant revenue was received for Fund 225, which reduced the level of General Fund subsidy required to support the program. As a result, the overall expenditures in General Fund and All Other Funds have decreased.

Table 2 – Citywide Revenue Projections

Proposed changes to revenue projections for All Other Funds include an increase in anticipated grant revenue received for Fund 225.

Table 3 - Citywide Staffing

Due to the projected budget deficit demonstrated in the Proposed FY 2025-26 Operating Budget staff is recommending no change in staffing levels. Current total City staffing remains at 956.30 employees with 700.9 being funded by General Fund. Table 3 provides an overview of those proposed changes as presented to Council.

Capital Improvement Program (CIP) FY 2026-27 – FY 2035-36

On April 10, 2025, the Planning Commission held a public hearing and found the proposed FY 2025-26 – 2034-35 CIP document in conformance with the General Plan. On April 23, 2025, the Council Infrastructure Committee (CIC) discussed the proposed CIP budget and new CIP online platform. On May 6, 2025, Council reviewed and discussed the proposed FY 2025-26 - 2034-35 CIP budget during a work session.

The FY 2025-26 CIP appropriations total approximately $161 million, and a projected total programming of $1.3 billion for the period of FY 2026-27 through FY 2035-36. Detail of the FY 2025-26 CIP is included as Attachment VI.

FISCAL IMPACT

Table 5 below summarizes the FY 2025-26 Citywide Operating & CIP expenditure budgets.

Table 5 – Summary of Citywide Operating & CIP Budgets

PUBLIC CONTACT

The Proposed FY 2025-26 Operating Budget was reviewed and discussed in public meetings by Council on May 13, 2025. The FY 2025-26 Operating Budget was discussed at the monthly Council Budget and Finance Committee starting in January 2025 through April 2025. A public notice was published in The Daily Review on June 6 and June 13 announcing the date, time, location, and subject matter of this public hearing. A notice advising residents about the Planning Commission’s public hearing on the CIP was published in The Daily Review newspaper more than the requisite ten days in advance.

The Proposed FY 2025-26 Operating Budget is currently available to the public by contacting the City Clerk’s Office at [email protected] or (510) 583-4400, and on the City’s website at: https://hayward-ca.gov/your-government/documents/budget-documents

The FY 2025-26 Capital Improvement Program Budget is currently available to the public by contacting the City Clerk’s Office at [email protected] or (510) 583-4400, and on the City’s website at: https://www.hayward-ca.gov/your-government/documents/capital- improvement-program

NEXT STEPS

Upon adoption by Council of the FY 2025-26 Operating Budget and Capital Improvement Program Budget this evening, staff will take the appropriate steps to effectuate the adoption.

Prepared by: Franchesca Hatfield, Management Analyst I Nicholas Mullins, Senior Management Analyst
Christina Crosby, Deputy Director of Finance

Recommended by: Michael Lawson, Acting City Manager
Sharif Etman, Interim Director of Finance

Approved by:

____________________________________________
Michael Lawson, J.D.

Acting City Manager

ATTACHMENT II

HAYWARD CITY COUNCIL

RESOLUTION NO. 25-___

Introduced by Council Member__________

RESOLUTION APPROVING THE OPERATING BUDGET OF THE CITY OF HAYWARD FOR FISCAL YEAR 2025-26; ADOPTING APPROPRIATIONS FOR FISCAL YEAR 2025-26, EXCEPT FOR GENERAL FUND COMMUNITY AGENCY

FUNDING

WHEREAS, the City Manager has submitted to the City Council of the City of Hayward estimates of revenues from all sources and estimates of expenditures required for the proper conduct of the activities of the City of Hayward for fiscal year 2025-26 contained in those documents entitled "City of Hayward Proposed FY 2025-26 Operating Budget," with adjustments to the Proposed Budget as discussed at the June 17, 2025 Council Public Hearing and contained herein; and

WHEREAS, a Council Work Session and a public hearing were held by the City Council of the City of Hayward, at which time all interested persons were afforded an opportunity to be heard on matters pertaining to the budget recommended by the City Manager.

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

1. That the budget presented by the City Manager in the document entitled "City of Hayward Proposed FY 2025-26 Operating Budget," with adjustments to the proposed budget as outlined in the June 17, 2025 staff report is hereby approved and adopted as the budget of the City of Hayward for FY 2025-26, with specific exception of General Fund Community Agency funding, which is separately addressed in Resolution No. 25-XXX. Copies of the budget documents and the staff reports presented by the City Manager are on file in the office of the City Clerk and are hereby referred to, incorporated herein, and made a part of this resolution as though set forth in full.

2. That except as may be otherwise provided, any and all expenditures relating to the objectives described in the budget are hereby approved and authorized and payments therefore may be made by the Director of Finance of the City of Hayward without further action of Council.

3. That for the purposes of determining whether the City Manager is authorized to execute a contract for a commodity or service pursuant to City Charter section 701 subsection 8, the City Manager shall have the authority to expend such funds and enter into and execute any and all contracts and documents necessary to carry out

the priorities and service delivery outcomes of the Council's appropriations as set forth in this budget.

4. The City Manager shall have the authority to bind and prepay all coverage and to negotiate and execute all documents necessary to obtain the insurance, third party administration services, loss fund stabilization and defense of claims budgeted for in the Liability Insurance Fund. In consultation with the City Attorney, the City Manager and/or City Attorney shall be authorized to represent the City on the board of the Exclusive Risk Management Authority of California and take any and all actions necessary or appropriate to advance the City’s interests in connection with risk management services and procuring of insurance coverage.

5. The Director of Finance is hereby authorized to transfer the amounts from one fund to another as indicated in Exhibit A at such time as he/she may determine, giving consideration to the intended purposes for which the transfers are made and available balances in each of the funds.

6. The amounts as reflected in Exhibit B are hereby appropriated for expenditure.

7. Any monies received during FY 2025-26 as a consequence of a grant application approved by the City Council are hereby appropriated for the purposes for which the grant has been approved. Such appropriation includes authorization for the City Manager to expend such monies and for the Director of Finance to make payments therefore in accordance with the terms and conditions and for the purposes of the grant.

8. The Director of Finance is directed to comply with GASB 31 (Unrealized investment gains and losses) and is authorized to make such entries as are required to the City’s financial records. In addition, the Director of Finance is authorized to make such changes to the budget as are required by GASB 31.

9. There are hereby appropriated the following amounts to the General Fund Reserve and Unassigned Fund Balances, which the Director of Finance shall enter upon the records and reflect in the financial statement of the City:

In addition to the above specified amounts, the balances in each fund that are not otherwise appropriated are hereby appropriated to Contingency Reserves in those funds.

Expenditures from Reserves or Designated Fund Balances shall require the approval of the City Council.

10. The Director of Finance is hereby authorized and directed to distribute the above appropriations, transfers, and reserves to the various accounts of the City in accordance with generally accepted accounting principles and consistent with the purposes and objectives as outlined in the approved budget.

11. Any contract for professional services included in the annual budget that will cost more than $100,000 shall be executed by the City Manager only upon approval of the contract by the City Council given at a meeting of the City Council.

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

FY 2025-2026 Fund Transfers To/From

ATTACHMENT III

EXHIBIT A
General Fund Transfers In
100-00-0000-00000-49535 210 Transfer In From Gas Tax Fund (246,000) 100-00-0000-00000-49100 231 Cost Allocation From Used Oil Fund (811) 100-00-0000-00000-49100 232 Cost Allocation From Recycling Fund (45,358) 100-00-0000-00000-49100 605 Cost Allocation From Water Fund (1,199,253) 100-00-0000-00000-49100 610 Cost Allocation From Sewer Revenue Fund (1,194,656) 100-00-0000-00000-49100 615 Cost Allocation From Stormwater Fund (189,000) 100-00-0000-00000-49100 620 Cost Allocation From Airport Fund (253,351) 100-00-0000-00000-49100 630 Cost Allocation From Recycled Water Fund (17,158) 100-00-0000-00000-49545 810 Misc. Transfer From CFD #1 for Trustee Costs (8,000) 100-00-0000-00000-49545 810 Misc. Transfer From CFD #2 for Police Services (290,000) 100-00-0000-00000-49545 810 Misc. Transfer From CFD #3 for Police & Fire Services (175,000) 100-00-0000-00000-49530 815 Transfer In From Successor RDA Fund D/S Repayment (800,000) Transfers In Total (4,418,587)
General Fund Transfers Out
100-00-0000-00000-98100 102 Transfer to Economic Development Fund 350,000 100-00-0000-00000-98110 300 Transfer Out To D/S Fire Station #7 452,854 100-00-0000-00000-98110 300 Transfer Out To D/S City Hall Debt Service 1,980,630 100-00-0000-00000-98110 300 Miscellaneous Transfer to Debt Service Fund 4,900 100-00-0000-00000-98115 405 Transfer Out To Capital Projects 500,000 100-00-0000-00000-98115 460 Capital Transfer To Transportation Systems Improvement Fund 800,000 100-00-0000-00000-98110 605 Fire Station #7 Repayment to Water Fund 137,741 100-00-0000-00000-98200 710 Liability Insurance Allocation 6,408,704 100-00-0000-00000-98100 720 OPEB Contribution 1,509,659 100-00-0000-00000-98115 726 Transfer To Facilities Management Capital Fund 95,000 100-00-0000-00000-98115 731 Transfer To Technology Replacement Fund 50,000 Transfers Out Total 12,289,488
Measure C Fund
101-00-0000-00000-98110 301 D/S Measure C 4,378,625
101-00-0000-00000-98110 301 D/S Measure C Misc DS Admin Fees 3,500 101-00-0000-00000-98115 405 Transfer Out To CIP Fund For La Vista & PD Projects 5,232,000 101-00-0000-00000-98200 710 Transfer Out To Liability Insurance 283,260 101-00-0000-00000-98100 720 OPEB Contribution 67,301
Measure C Fund 9,964,686
Economic Development Fund
102-00-0000-00000-49530 102 Transfer In From General Fund (350,000) Economic Development Fund (350,000)
OHHA Assessment Tax Fund
209-00-0000-00000-98115 210 Transfer Out To Gas Tax Fund for Pavement Rehab 181,888 OHHA Assessment Tax Fund 181,888
Special Gas Tax Fund
210-00-0000-00000-98100 100 Transfer Gas Tax to General Fund 246,000 210-00-0000-00000-49550 209 Transfer From Stromwater Fund (181,888) 210-00-0000-00000-98115 450 Transfer Out to Street Improvement 750,000 210-00-0000-00000-49550 615 Transfer From Stromwater Fund (15,000) Special Gas Tax Fund 799,112
Paratransit Fund (Measure BB)
214-00-0000-00000-98200 710 Transfer Out To Liability Insurance 10,508 214-00-0000-00000-98100 720 OPEB Contribution 2,497
Paratransit (Measure BB) Fund 13,005
Paratransit Fund (Measure B)
217-00-0000-00000-98200 710 Transfer Out To Liability Insurance 457 217-00-0000-00000-98100 720 OPEB Contribution 109
Paratransit (Measure B) Fund 566
Grant Fund
220-00-0000-00000-98200 710 Transfer Out To Liability Insurance 26,042 220-00-0000-00000-98100 720 OPEB Contribution 6,187
Grant Fund 32,229
CDBG Fund
225-00-0000-00000-98200 710 Transfer Out To Liability Insurance 15,077 225-00-0000-00000-98100 720 OPEB Contribution 3,582
CDBG Fund 18,659
State Grants Fund
230-00-0000-00000-98200 710 Transfer Out To Liability Insurance 6,396 230-00-0000-00000-98100 720 OPEB Contribution 1,520
State Grant Fund 7,916
Used Oil Fund
231-00-0000-00000-97100 100 Transfer Out Cost Allocation to General Fund 811

FY 2025-2026 Fund Transfers To/From ATTACHMENT III

EXHIBIT A
Used Oil Fund 811
Measure D Fund
232-00-0000-00000-97100 100 Transfer Out Cost Allocation to General Fund 45,358 232-00-0000-00000-98200 710 Transfer Out Liability Insurance 33,352 232-00-0000-00000-98100 720 OPEB Contribution 7,924
Measure D Fund 86,634
Housing Authority Fund
245-00-0000-00000-98200 710 Transfer Out Liability Insurance 5,939 245-00-0000-00000-98100 720 OPEB Contribution 1,411
Housing Authority Fund 7,350
Affordable Housing Fund
246-00-0000-00000-98200 710 Transfer Out To Liability Insurance 1,827 246-00-0000-00000-98100 720 OPEB Contribution 434
Affordable Housing Fund 2,261
Inclusionary Housing Fund
285-00-0000-00000-98200 710 Transfer Out To Liability Insurance 12,792 285-00-0000-00000-98100 720 OPEB Contribution 3,039
Inclusionary Housing Fund 15,831
Rent Review Program Fund
286-00-0000-00000-98200 710 Transfer Out To Liability Insurance 32,895 286-00-0000-00000-98100 720 OPEB Contribution 7,816
Rent Review Program Fund 40,711
Local Housing Trust Program Fund
288-00-0000-00000-98200 710 Transfer Out To Liability Insurance 1,371 288-00-0000-00000-98100 720 OPEB Contribution 326
Local Housing Trust Program Fund 1,697
So Hwd Bart JPA Parking District
295-00-0000-00000-98115 405 Transfer Out From City/Bart JPA To Capital Projects Fund 207,000 So Hwd Bart JPA Parking District Fund 207,000
Certificates of Participation Fund
300-00-0000-00000-49555 100 Transfer In D/S City Hall Debt Service (1,980,630) 300-00-0000-00000-49555 100 Transfer In D/S Fire Station #7 (452,854) 300-00-0000-00000-49555 100 Transfer In Misc. Transfer From General Fund (4,900) Certificates of Participation Fund (2,438,384)
Measure C Debt Service Fund
301-00-0000-00000-49555 101 D/S New Library & Education Center (4,378,625) 301-00-0000-00000-49555 101 D/S New Library & Education Center Admin Fees (3,500) Measure C Debt Service Fund (4,382,125)
Capital Projects Fund
405-00-0000-00000-49550 100 Transfer In From General Fund (500,000) 405-00-0000-00000-49550 101 Transfer In To CIP Governmental Fund for La Vista and PD Projects (5,232,000) 405-00-0000-00000-49550 295 Transfer In From City/Bart JPA (207,000) Capital Projects Fund (5,939,000)
Street System Improvement Fund
450-00-0000-00000-49550 210 Transfer Out To Gas Tax Fund (750,000) Street System Improvement Fund (750,000)
Transportation Sys Improvement Fund
460-00-0000-00000-49550 100 Transfer In To CIP Governmental Fund for La Vista and PD Projects (800,000) Transportation Sys Improvement Fund (800,000)
Water Replacement Fund
603-00-0000-00000-49550 605 Capital Transfer In From Water Maintenance & Operations Fund (7,000,000) Water Replacement Fund (7,000,000)
Water Improvement Fund
604-00-0000-00000-49550 612 Transfer In For Repayment Of Loan for Solar Project (410,000) Water Improvement Fund (410,000)
Water Maintenance & Operations Fund
605-00-0000-00000-49555 100 Transfer In From General Fund Fire Station #7 Repayment (137,741) 605-00-0000-00000-97100 100 Transfer Out Cost Allocation To General Fund 1,199,253 605-00-0000-00000-98115 603 Transfer Out Capital Reserves To Water 7,000,000 605-00-0000-00000-98100 630 Transfer Out to Recycled Water Fund 600,000 605-00-0000-00000-98200 710 Transfer Out To Liability Insurance 564,326 605-00-0000-00000-98100 720 OPEB Contribution 134,950
Water Maintenance & Operations Fund 9,360,788

FY 2025-2026 Fund Transfers To/From ATTACHMENT III

EXHIBIT A
Sewer Maintenance & Operations Fund
610-00-0000-00000-97100 100 Transfer Out Cost Allocation to General Fund 1,194,656 610-00-0000-00000-98115 611 Transfer Out Capital Reserves to Sewer Replacement 8,500,000 610-00-0000-00000-98110 611 Transfer Out Capital Reserves to Sewer Replacement (D/S 2025 Wastewater Rev Bond) 1,431,543 610-00-0000-00000-49555 612 Transfer In D/S CA SWRCB Loan/Sewer (1,529,504) 610-00-0000-00000-98200 710 Transfer Out To Liability Insurance 613,120 610-00-0000-00000-98100 720 OPEB Contribution 144,590
Sewer Maintenance & Operations Fund 10,354,405
Sewer Replacement Fund
611-00-0000-00000-49550 610 Transfer In From Sewer Maintenance & Operations Fund (8,500,000) 611-00-0000-00000-49550 610 Transfer In From Sewer Maintenance & Operations Fund (144,590) 611-00-0000-00000-49555 610 Transfer In Capital Reserves To Sewer Replacement (D/S 2025 Wastewater Rev Bond) (1,431,543) 611-00-0000-00000-98115 612 Transfer Out From Sewer Replacement To Sewer Improvement Project 2,000,000 611-00-0000-00000-98115 612 Transfer Out From Sewer Replacement For New Admin Building Proj 270,000 611-00-0000-00000-49550 630 Transfer In From Recycled Water For Future Equipment Replacement (200,000) Sewer Replacement Fund (8,006,133)
Sewer Improvement Project
612-00-0000-00000-98115 604 Transfer Out to Water Improvement Loan for Solar Project 410,000 612-00-0000-00000-98110 610 Transfer Out to Sewer Fund for D/S CA SWRCD Loan 1,529,504 612-00-0000-00000-49550 611 Transfer In From Sewer Replacement to Sewer Improvement Project (2,000,000) 612-00-0000-00000-49550 611 Transfer In From Sewer Replacement For New Admin Building Proj (270,000) Sewer Improvement Project (330,496)
Stormwater Maint & Operations Fund
615-00-0000-00000-97100 100 Transfer Out Cost Allocation To General Fund 189,000 615-00-0000-00000-98115 210 Transfer Out to Stormwater Fund 15,000 615-00-0000-00000-98200 710 Transfer Out To Liability Insurance 104,989 615-00-0000-00000-98100 720 OPEB Contribution 27,116
Stormwater Maint & Operations Fund 336,105
Airport Operations Fund
620-00-0000-00000-97100 100 Transfer Out Cost Allocation To General Fund 253,351 620-00-0000-00000-98115 621 Transfer Out Cap Reserves To Airport Capital 2,200,000 620-00-0000-00000-98200 710 Transfer Out To Liability Insurance 106,908 620-00-0000-00000-98100 720 OPEB Contribution 25,401
Airport Operations Fund 2,585,660
Airport Capital Fund
621-00-0000-00000-49550 620 Transfer In From Airport Fund to Airport Capital (2,200,000) Airport Capital Fund (2,200,000)
Recycled Water Fund
630-00-0000-00000-97100 100 Transfer Out Cost Allocation To General Fund 17,158 630-00-0000-00000-49530 605 Transfer In from Water Operating Fund (600,000) 630-00-0000-00000-49555 610 Transfer In Sewer Replacement for Recycled Water SRF Loan (1,265,881) 630-00-0000-00000-98110 610 Transfer Out Sewer Replacement for Recycled Water SRF Loan 1,265,881 630-00-0000-00000-98115 611 Transfer Out to Sewer Replacement 200,000 630-00-0000-00000-98200 710 Transfer Out To Liability Insurance 6,853 630-00-0000-00000-98100 720 OPEB Contribution 1,845
Recycled Water Fund (374,144)
Workers' Compensation Fund
705-00-0000-00000-98200 710 Transfer Out To Liability Insurance 47,515 705-00-0000-00000-98100 720 OPEB Contribution 11,289
Workers' Compensation Fund 58,804
Risk Management Fund
710-00-0000-00000-49100 100 Transfer In Liability Insurance-General Fund (6,408,704) 710-00-0000-00000-49100 101 Transfer In Liability Insurance-Measure C Fund (283,260) 710-00-0000-00000-49100 217 Transfer In Liability Insurance-Meas BB PRTRNST (457) 710-00-0000-00000-49100 220 Transfer In Liability Insurance-Grants (26,042) 710-00-0000-00000-49100 225 Transfer In Liability Insurance-CDBG (15,077) 710-00-0000-00000-49100 230 Transfer In Liability Insurance - Federal Grants (6,396) 710-00-0000-00000-49100 232 Transfer In Liability Insurance-Recycling Program Fund (33,352) 710-00-0000-00000-49100 245 Transfer In Liability Insurance-Housing Fund (5,939) 710-00-0000-00000-49100 246 Transfer In Liability Insurance-Housing Mortg (1,827) 710-00-0000-00000-49100 285 Transfer In Liability Insurance-Inclusionary Housing (12,792) 710-00-0000-00000-49100 286 Transfer In Liability Insurance-Rent Review Program Fund (32,895) 710-00-0000-00000-49100 605 Transfer In Liability Insurance-Water Fund (564,326) 710-00-0000-00000-49100 610 Transfer In Liability Insurance-Wastewater Fund (613,120) 710-00-0000-00000-49100 615 Transfer In Liability Insurance-Stormwater Fund (104,989) 710-00-0000-00000-49100 620 Transfer In Liability Insurance-Airport Fund (106,908) 710-00-0000-00000-49100 630 Transfer In Liability Insurance-Recycled Water Fund (6,853) 710-00-0000-00000-49100 705 Transfer In Liability Insurance-Workers Comp (47,515) 710-00-0000-00000-98100 720 OPEB Contribution 8,684
710-00-0000-00000-49100 725 Transfer In Liability Insurance-Facilities Fund (104,441) 710-00-0000-00000-49100 730 Transfer In Liability Insurance-IT Fund (210,160) 710-00-0000-00000-49100 735 Transfer In Liability Insurance-Fleet Fund (96,217) 710-00-0000-00000-49100 815 Transfer In Liability Insurance-Successor RDA Fund (17,485)

FY 2025-2026 Fund Transfers To/From ATTACHMENT III

EXHIBIT A
Risk Management Fund (8,690,071)
Retiree Medical Fund
720-00-0000-00000-49530 100 OPEB Tranfer In General Fund (1,509,659) 720-00-0000-00000-49530 101 OPEB Tranfer In Measure C Fund (67,301) 720-00-0000-00000-49530 214 OPEB Transfer In Meas BB PRTRNS (2,497) 720-00-0000-00000-49530 217 OPEB Tranfer In Meas BB PRTRNS (109) 720-00-0000-00000-49530 220 OPEB Tranfer In Grants Fund (6,187) 720-00-0000-00000-49530 225 OPEB Tranfer In CDBG Fund (3,582) 720-00-0000-00000-49530 230 OPEB Transfer In State Grants Fund (1,520) 720-00-0000-00000-49530 232 OPEB Tranfer In Recycle Fund (7,924) 720-00-0000-00000-49530 245 OPEB Tranfer In Housing Fund (1,411) 720-00-0000-00000-49530 246 OPEB Tranfer In Housing Mrtg Fund (434) 720-00-0000-00000-49530 285 OPEB Tranfer In Inclusionary Fund (3,039) 720-00-0000-00000-49530 286 OPEB Tranfer In Rent Review Program Fund (7,816) 720-00-0000-00000-49530 288 OPEB Transfer In Local Housing Trust Program Fund (326) 720-00-0000-00000-49530 605 OPEB Tranfer In Water Fund (134,950) 720-00-0000-00000-49530 610 OPEB Tranfer In Wastewater Fund (144,590) 720-00-0000-00000-49530 615 OPEB Tranfer In Stormwater Fund (27,116) 720-00-0000-00000-49530 620 OPEB Tranfer In Airport Fund (25,401) 720-00-0000-00000-49530 630 OPEB Tranfer In Recycled Water Fund (1,845) 720-00-0000-00000-49530 705 OPEB Tranfer In Workers Comp Fund (11,289) 720-00-0000-00000-49530 710 OPEB Tranfer In Liability Fund (8,684) 720-00-0000-00000-49530 725 OPEB Tranfer In Facilities Fund (24,815) 720-00-0000-00000-49530 730 OPEB Tranfer In IT Fund (49,933) 720-00-0000-00000-49530 735 OPEB Tranfer In Fleet fund (22,861) 720-00-0000-00000-49530 815 OPEB Tranfer In Successor RDA Fund (3,083) Retiree Medical Fund (2,066,372)
Facilities Management Fund
725-00-0000-00000-98200 710 Transfer Out To Liability Insurance 104,441 725-00-0000-00000-98100 720 OPEB Contribution 24,815
Facilities Management Fund 129,256
Facilities Capital Fund
726-00-0000-00000-49550 100 Transfer In From General Fund 95,000 726-00-0000-00000-49550 101 Transfer In From Measure C Fund Repayment Of Energy Conser Project (2,087,000) 726-00-0000-00000-98115 101 Transfer Out From Measure C Fund Repayment Of Energy Conser Project 2,087,000 Facilities Capital Fund 95,000
Information Technology Fund
730-00-0000-00000-98200 710 Transfer Out To Liability Insurance 210,160 730-00-0000-00000-98100 720 OPEB Contribution 49,933
Information Technology Fund 260,093
Information Tech Capital Fund
731-00-0000-00000-49550 731 Transfer In From General Fund (50,000) Information Technology Capital Fund (50,000)
Fleet Management Fund
735-00-0000-00000-98200 710 Transfer Out To Liability Insurance 96,217 735-00-0000-00000-98100 720 OPEB Contribution 22,861
Fleet Management Fund 119,078
Comm Facility District Fund
810-00-0000-00000-98100 100 Transfer Out To General Fund for Trust Expenses CFD #1 8,000 810-00-0000-00000-98100 100 Transfer Out To General Fund for Police Services CFD #2 290,000 810-00-0000-00000-98100 100 Transfer Out To General Fund for Police&Fire Svcs CFD #3 175,000 Comm Facility District Fund 473,000
Successor Agency-RDA of COH
815-00-0000-00000-98100 100 Transfer Out To General Fund D/S Loan Repayment 800,000 815-00-0000-00000-98200 710 Transfer Out To Liability Insurance 17,485 815-00-0000-00000-98100 720 OPEB Contribution 3,083
Successor Agency-RDA of COH 820,568

FY 2025-26 BUDGET APPROPRIATIONS
General Fund
100
Measure C Fund
101

ATTACHMENT

III EXHIBIT B
232,065,041
17,802,489
Special Revenue Funds
102 Economic Development Fund 350,000
214 Paratransit Fund - Measure BB 1,477,653
217 Paratransit Fund - Measure B 39,454
220 Grants Fund 1,087,431
225 Community Development Block Grant Fund 2,044,564
230 Recycling Fund 615,677
231 Used Oil Fund 25,196
232 Recycling/Measure D Fund 1,178,080
245 Housing Authority 217,591
246 Affordable Housing Fund 108,676
285 Inclusionary Housing 403,297
286 Rent Review Program Fund 1,117,401
288 Local Housing Trust Program Fund 38,159
295 So. Hayward B.A.R.T. JPA 773,220
Special Revenue Fund Total 9,476,399
Enterprise Funds
605 Water 72,134,623
606 Regional Intertie 131,329
610 Wastewater 38,992,238
615 Stormwater 3,890,703
620 Airport 5,900,152
630 Recycled Water 2,426,064
Enterprise Fund Total 123,475,109
Debt Service/Non-Departmental Funds
300 Certificate of Participation 2,439,115
301 Measure C Debt Service 4,450,550
805/810 Special Assessment District 1,074,160
Debt Service Fund Total 7,963,825
Internal Service Funds
705 Worker's Compensation 11,207,019
710 Risk Management 11,815,206
720 Employee Benefits 5,690,626
725 Facilities 5,974,703
730 Information Technology 10,881,897
735 Fleet 4,611,907
Internal Service Fund Total 50,181,358
Fiduciary Funds
815 Hayward Redevelopment Successor Agency (HRSA) 4,482,790 851 Hayward Shoreline JPA 31,800
Fiducary Fund Total 4,514,590

ATTACHMENT III

EXHIBIT B

ATTACHMENT IV

REDEVELOPMENT SUCCESSOR AGENCY OF THE CITY OF HAYWARD

RESOLUTION NO. RSA 25-_____

Introduced by Agency Member

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAYWARD, ACTING AS

THE GOVERNING BOARD OF THE SUCCESSOR AGENCY FOR THE

REDEVELOPMENT AGENCY OF THE CITY OF HAYWARD, APPROVING THE

BUDGET OF THE REDEVELOPMENT SUCCESSOR AGENCY OF THE CITY OF HAYWARD AND ADOPTING APPROPRIATIONS FOR FISCAL YEAR 2025-26

WHEREAS, the City Manager has submitted to the Successor Agency of the Redevelopment Agency (the “Redevelopment Successor Agency”) of the City of Hayward estimates of revenue from all sources and estimates of expenditures required for the proper conduct of the activities of the Redevelopment Successor Agency of the City of Hayward for fiscal year 2025-26; and

WHEREAS, a public hearing was held by the Redevelopment Successor Agency of the City of Hayward, at which time all interested persons were afforded an opportunity to be heard on matters pertaining to the recommended budget.

NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Successor Agency of the City of Hayward that:

1. The budget presented by the Executive Director is hereby approved and adopted as the budget of the Redevelopment Successor Agency of the City of Hayward for FY 2025-26.

2. Any and all expenditures relating to the objectives described in the budget are hereby approved and authorized and payments therefore may be made by the Finance Director of the City of Hayward.

3. The Director of Finance is directed to comply with GASB 31 (Unrealized investment gains and losses) and is authorized to make such entries as are required to the Redevelopment Successor Agency’s financial records. In addition, the Director of Finance is authorized to make such changes to the budget as are required by GASB 31.

4. The follow ing amounts are hereby estimated resources and appropriated expenditures:

5. Except as limited in paragraph 6 of this resolution, the Executive Director is authorized without further action from the Board to enter into a contract or agreement for any commodity or service included in the annual budget of the Redevelopment Successor Agency.

6. For the purposes of determining whether the Executive Director has the authority to execute a contract for a commodity or service pursuant to section 4 above, the Executive Director shall have the authority to expend such funds and enter into and execute any and all contracts and documents necessary to carry out the objectives of the Redevelopment Successor Agency's appropriations as set forth in this budget.

7. Any contract for professional services included in the annual budget that will cost more than $100,000 shall be executed by the Executive Director only upon approval of the contract by the Redevelopment Successor Agency Board given at a meeting of the Redevelopment Successor Agency and upon final approval by the Oversight Board and Department of Finance.

IN HAYWARD, CALIFORNIA , 2025.

ADOPTED BY THE FOLLOWING VOTE:

AYES: BOARD MEMBERS:

CHAIR:

NOES: BOARD MEMBERS:

ABSTAIN: BOARD MEMBERS:

ABSENT: BOARD MEMBERS:

ATTEST:
_________________________________________________
Secretary of the Redevelopment Successor
Agency of the City of Hayward

APPROVED AS TO FORM:

_________________________________________________________ General Counsel of the Redevelopment Successor
Agency of the City of Hayward

ATTACHMENT V

HOUSING AUTHORITY OF THE CITY OF HAYWARD

RESOLUTION NO. HA 25-___________

Introduced by Board Member____________

RESOLUTION CONFIRMING THE PROPOSED HAYWARD HOUSING
AUTHORITY BUDGET FOR FISCAL YEAR 2025-26

WHEREAS, the Executive Director has submitted to the Hayward Housing Authority Board of Directors estimates of revenues from all sources and estimates of expenditures required for the proper conduct of the activities of the Hayward Housing Authority for fiscal year 20 25-26 contained in those documents entitled “ Proposed FY 20 25-26 Operating Budget;” and

WHEREAS, a public hearing was held by the Housing Authority Board of Directors, on June 17, 202 5, at which time all interested persons were afforded an opportunity to be heard on matters pertaining to the budget recommended by the Executive Director; and

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Hayward Housing Authority as follows:

1. That the budget for FY 2025-26 presented by the Executive Director in the document entitled Proposed FY 2025-26 Operating Budget is hereby accepted and confirmed as the budget of the Hayward Housing Authority for FY 2025-26. Copies of the budget documents and the staff reports presented by the Executive Director are on file in the office of the City Clerk and are hereby referred to, incorporated herein, and made a part of this resolution as though set forth in full.

2. The Director of Finance is dir ected to comply with GASB 31 (Unrealized investment gains and losses) and is authorized to make such entries as are required to the Housing Authority ’s financial records. In addition, the Director of Finance is authorized to make such changes to the budget as are required by GASB 31.

3. Except as limited in paragraph 5 of this resolution, the Executive Director is authorized without further action from the Board to enter into a contract or agreement for any commodity or service included in the annual budget of the Housing Authority.

4. For the purposes of determining whether the Executive Director has the authority to execute a contract for a commodity or service pursuant to section 3 above, the Executive Director shall have the authority to expend such funds an d enter into and execute any and all contracts and documents necessary to carry out the objectives of the Housing Authority’s appropriations as set forth in this budget.

5. Any contract for professional services included in the annual budget that will cost more than $100,000 shall be executed by the Executive Director only upon approval of the contract by the Housing Authority Board given at a meeting of the Housing Authority.

HAYWARD, CALIFORNIA, ______________________., 2025

ADOPTED BY THE FOLLOWING VOTE:

AYES: BOARD MEMBERS:

CHAIR:

NOES: BOARD MEMBERS:

ABSTAIN: BOARD MEMBERS:

ABSENT: BOARD MEMBERS:

ATTEST: _________________________________________
Secretary of the Housing Authority
of the City of Hayward

APPROVED AS TO FORM:

________________________________________________
General Counsel of the Housing Authority
of the City of Hayward

ATTACHMENT VI

HAYWARD CITY COUNCIL

RESOLUTION NO. 25-____

Introduced by Council Member

RESOLUTION AMENDING RESOLUTION S 25-064 AND 25-065 APPROVING

AND APPROPRIATING THE COMMUNITY AGENCY FUNDING
RECOMMENDATIONS FOR FISCAL YEAR 2025-2026 IN THE GENERAL FUND

SOCIAL SERVICES AND ARTS AND MUSIC CATEGORIES

WHEREAS, the Housing and Community Development Act of 1974 makes funds available to qualified cities for certain community development activities, and the City of Hayward is qualified to receive certain funds pursuant to said act; and

WHEREAS, on April 22, 2025, the City Council considered public testimony and the CDBG and General Fund Program recommendations prepared by staff and the Community Services Commission; and

WHEREAS, on May 13, 2025, the U.S. Department of Housing and Urban Development (HUD) announced CDBG entitlement allocations for Fiscal Year 2025 -2026 and the City’s entitlement exceeds what staff estimated when the City Council approved FY 2025-2026 recommendations; and

WHEREAS, the City’s Fiscal Year 2025 -2026 plan for General Fund Social Services and Arts and Music categories must be amended to program this revised allocation; and

WHEREAS, the additional funds need to be appropriated; and

WHEREAS, the revised revenue and expenditures required to program the actual HUD entitlement amount are contained in those documents entitled “City of Hayward Proposed FY 2025-2026 Operating Budget,” and contained herein.

NOW THEREFORE BE IT RESOLVED that the City Council of Hayward hereby approves and appropriates the General Fund Social Services and Arts and Music recommendations for Fiscal Year 202 5-2026, as approved by City Council on April 22, 2025 and shown in Exhibit A , in a total amount not to exceed $587,000 which is incorporated by reference herein.

BE IT FURTHER RESOLVED that except as ma y be otherwise provided, any and all expenditures relating to the objectives described in the Community Agency budget are hereby approved and authorized and payments therefore may be made by the Director of Finance of the City of Hayward without further action of City Council.

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

EXHIBIT A

ATTACHMENT VII

HAYWARD CITY COUNCIL

RESOLUTION NO. 25-_____

Introduced by Council Member

RESOLUTION AMENDING RESOLUTION 25-066 APPROVING AND

APPROPRIATING THE COMMUNITY AGENCY FUNDING RECOMMENDATIONS FOR FISCAL YEAR 2025-2026 IN THE COMMUNITY DEVELOPMENT BLOCK

GRANT (CDBG) ECONOMIC DEVELOPMENT AND INFRASTRUCTURE

CATEGORY

WHEREAS, the Housing and Community Development Act of 1974 makes funds available to qualified cities for certain community development activities, and the City of Hayward is qualified to receive certain funds pursuant to said act; and

WHEREAS, on April 22, 2025, the City Council considered public testimony and the CDBG Program recommendations prepared by staff and the Community Services Commission, a copy of which is attached and hereby referred to for further particulars; and

WHEREAS, on May 13, 2025, the U.S. Department of Housing and Urban Development (HUD) announced CDBG entitlement allocations for Fiscal Year 2025-2026 and the City’s entitlement exceeds what staff estimated when the City Council approved FY 2025- 2026 recommendations; and

WHEREAS, the City’s Fiscal Year 2025-2026 plan for CDBG Economic Development and Infrastructure Category must be amended to program this revised and increased allocation of $110,655; and

WHEREAS, the additional funds need to be appropriated; and

WHEREAS, the revised revenue and expenditures required to program the actual HUD entitlement amount are contained in those documents entitled “City of Hayward Proposed FY 2025-2026 Operating Budget,” and contained herein;

NOW THEREFORE BE IT RESOLVED that the City Council of Hayward hereby approves and appropriates the Community Agency Funding CDBG Economic Development and Infrastructure recommendations for Fiscal Year 2025-2026, as approved by City Council on April 22, 2025 and shown in Exhibit A, in a total amount not to exceed $1,032,673 which is incorporated by reference herein.

BE IT FURTHER RESOLVED that except as may be otherwise provided, any and all expenditures relating to the objectives described in the Community Agency budget are hereby approved and authorized and payments therefore may be made by the Director of Finance of the City of Hayward without further action of City Council.

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

EXHIBIT A

ATTACHMENT VIII

HAYWARD CITY COUNCIL

RESOLUTION NO. 25-____

Introduced by Council Member

RESOLUTION AMENDING RESOLUTION 25 -063 APPROVING AND

APPROPRIATING THE COMMUNITY AGENCY FUNDING RECOMMENDATIONS FOR FISCAL YEAR 2025-2026 IN THE COMMUNITY DEVELOPMENT BLOCK

GRANT (CDBG) PUBLIC SERVICES CATEGORY AND AUTHORIZING THE CITY

MANAGER TO APPLY FOR FEDERAL ASSISTANCE UNDER THE COMMUNITY

DEVELOPMENT BLOCK GRANT PROGRAM

WHEREAS, the Housing and Community Development Act of 1974 makes funds available to qualified cities for certain community development activities, and the City of Hayward is qualified to receive certain funds pursuant to said act; and

WHEREAS, on April 22, 2025, the City Council considered public testimony and the CDBG Program recommendations prepared by staff and the Community Services Commission, a copy of which is attached and hereby referred to for further particulars; and WHEREAS, on May 13, 2025, the U.S. Department of Housing and Urban Development (HUD) announced CDBG entitlement allocations for Fiscal Year 2025-2026 and the City’s entitlement exceeds what staff estimated when the City Council approved FY 2025- 2026 recommendations; and

WHEREAS, the City’s Fiscal Year 2025 -2026 plan for CDBG Services Category must be amended to program this revised and increased allocation of $90,000; and

WHEREAS, the additional funds need to be appropriated; and

WHEREAS, the revised revenue and expenditures required to program the actual HUD entitlement amount contained in those documents entitled “City of Hayward Proposed FY 2025-2026 Operating Budget,” and contained herein.

NOW THEREFORE BE IT RESOLVED that the City Council of the City of Hayward hereby approves the updated CDBG Program Consolidated Plan and authorizes the City Manager on behalf of the City of Hayward to execute and submit the required applications and all implementing documents in connection therewith.

BE IT FURTHER RESOLVED that the City Council of Hayward hereby approves and appropriates the Community Agency Funding Community Development Block Grant Public Services recommendations for Fiscal Year 2025-2026, as approved by City Council on April 22, 2025 and shown in Exhibit A , in a total amount not to exceed $314,284 which is incorporated by reference herein.

BE IT FURTHER RESOLVED that the City Council of Hayward hereby approves and appropriates the Community Development Block Grant funding allocations recommendations for Program Year 202 5 as shown in Exhibit B , in a total amount of $1,664,884 including $1,346,957 in recommended CDBG funds as part of the Fiscal Year 2025-2026 Community Agency Funding Process.

BE IT FURTHER RESOLVED that the City Council of Hayward hereby approves the CDBG Consolidated Plan and Program Year 2025 priority needs and goals, and not limited to but including the recommended planned sample activities for HUD Program Year 2025 as shown in Exhibit C.

BE IT FURTHER RESOLVED that except as may be otherwise provided, any and all expenditures relating to the objectives described in the Community Agency budget are hereby approved and authorized and payments therefore may be made by the Director of Finance of the City of Hayward without further action of City Council.

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

EXHIBIT A

EXHIBIT B

COMMUNITY DEVELOPMENT BLOCK GRANT HUD PROGRAM YEAR 2025

ANNUAL ACTION PLAN FUNDING ALLOCATION
No. Project Category Program Year 2025 (FY 2025-2026) Funding Allocation

1. Administration & Planning $317,927

2. Public Facilities & Infrastructure $165,152

3. Public Services $314,284

4. Housing Programs $375,000

5. Economic Development $492,521
TOTAL $1,664,884

EXHIBIT C

COMMUNITY DEVELOPMENT BLOCK GRANT
HUD PROGRAM YEAR 2025 PRIORITY NEEDS, GOALS, PLANNED SAMPLE ACTIVITIES Priority Needs Goals Sample Activities

1. Expand & Improve Public
Infrastructure & Facilities
1a. Improve access to & capacity
of public facilities and
infrastructure
Non-profit agency roof
replacement; public park
renovation

2. Preserve, Protect, and
Produce Housing Stock

2a. Preserve existing
homeownership housing
Home repairs for older
adults
2b. Develop new affordable
housing
Grants to affordable
housing developers

3. Public Services & Quality of
Life Improvements

3a. Provide supportive services
for special needs populations
Public services programs
for homeless individuals or
victims of domestic
violence
3b. Provide vital services for
low-to-mod income households
Homelessness, elderly,
youth, and family
education services and
legal services

4. Economic Development 4a. Provide for small business
assistance
Technical assistance to
childcare providers and
entrepreneurs; small
business loans and grants

ATTACHMENT IX

HAYWARD CITY COUNCIL

RESOLUTION NO. 25-_____

Introduced by Council Member ______________

RESOLUTION APPROVING CAPITAL IMPROVEMENT PROJECTS FOR FISCAL YEAR 2025-26

WHEREAS, the City Manager has submitted to the City Council of the City of Hayward estimates of revenues from all sources and estimates of expenditures required for the proper conduct of the activities of the City of Hayward for Fiscal Year 2025-26 contained in the document entitled “Proposed Capital Improvement Program FY 2026-35”; and

WHEREAS, a public hearing was held by the City Council of the City of Hayward, at which time all interested persons were afforded an opportunity to be heard on matters pertaining to the Capital Improvement Program budget recommended by the City Manager; and

WHEREAS, by Resolution No. 25-xxx, dated June 17, 2025, the City Council adopted the budget and appropriated funds for operating expenses for Fiscal Year 2025-26.

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

1. That the Capital Improvement Projects for Fiscal Year 2025-26, as embodied in the Proposed Capital Improvement Program FY 20 26-35, are hereby adopted as the Capital Improvement Program for F iscal Year 2025-26. Copies of the budget documents and the staff reports presented by the City Manager are on file in the office of the City Clerk and are hereby referred to, incorporated herein, and made a part of this resolution as though set forth in full.

2. That, except as may be otherwise provided, any and all expenditures relating to the objectives described in the Capita l Improvement Program budget are hereby approved and authorized and payments therefore may be made by the Director of Finance without further action of Council.

3. That, for the purposes of determining whether the City Manager is authorized to execute a cont ract for a commodity or service pursuant to City Charter section 701 subsection 8, the City Manager shall have the authority to expend such funds and enter into and execute any and all contracts and documents necessary to carry out the objectives of the Council's appropriations as set forth in this Capital Improvement Program budget.

4. The following are hereby approved for expenditure:

I. CAPITAL PROJECTS EXPENDITURE APPROPRIATIONS

Fund Amount
Gas Tax Fund (210) $3,736,000
SB1 (211) $5,300,000
Measure BB Tax Fund (Local Transportation) (212) $6,906,000 Measure BB Tax Fund (Pedestrian & Bicycle) (213) $2,385,000 Measure B Tax Fund (Local Transportation) (215) $237,500 Measure B Tax Fund (Pedestrian & Bicycle) (216) $107,500 Vehicle Registration Fee Fund (218) $400,000
Measure BB Tax Fund (Paratransit) (219) $0
Capital Projects (Governmental) Fund (405) $18,093,914
Measure C Capital Fund (406) $2,444,000
Route 238 Corridor Improvement Fund (410) $50,000
Route 238 Settlement Administration Fund (411) $1,038,000 Street System Improvements Fund (450) $4,218,000
Transportation System Improvements Fund (460) $7,402,706 Water Replacement Fund (603) $7,445,000
Water Improvement Fund (604) $20,727,000
Sewer Replacement Fund (611) $14,701,000
Sewer Improvement Fund (612) $58,613,012
Airport Capital Fund (621) $2,596,000
Facilities Capital Fund (726) $300,000
Information Technology Capital Fund (731) $1,345,000
Fleet Management Capital Fund (736) $2,271,000
Fleet Management Enterprise Fund (737) $647,000
TOTAL: ALL CAPITAL FUNDS $160,963,632

5. The Director of Finance is hereby authorized to transfer the following amounts from one fund to another as indicated below at such time as she may determine, giving consideration to the intended purposes for which the transfers are made and available balan ces in each of the funds.

II. FUND TRANSFERS

FROM FUND TO FUND AMOUNT
General (100) Capital Projects (Governmental) (405) $500,000 General (100) Transportation System Improvement (460) $800,000 General (100) Facilities Capital (726) $95,000
General (100) Information Technology Capital (731) $50,000 OHHA (209) Gas Tax (210) $181,888
Gas Tax (210) Street System Improvements (450) $750,000 South Hayward BART JPA (295) Capital Projects (Governmental) (405) $207,000 Water Operations (605) Water Replacement (603) $7,000,000 Sewer Operations (610) Sewer Replacement (611) $8,500,000 Sewer Replacement (611) Sewer Improvement (612) $2,270,000 Sewer Improvement (612) Water Improvement (604) $410,000 Stormwater Operating (615) Gas Tax (210) $15,000
Airport Operations (620) Airport Capital (621) $2,200,000 Recycled Water (630) Sewer Replacement (611) $200,000

In order to provide for completion of work on projects previously authorized but not completed as of June 30, 2025, in addition to the above appropriations for capital expenditures, appropriation balances remaining as of June 30, 2025, for capital projects previously authorized but uncompleted, are hereby appropriated for expenditure in fiscal year 2024.

6. Any monies r eceived during fiscal year 2025-26 as a consequence of a grant application approved by the City Council are hereby appropriated for the purposes for which the grant has been approved. Such appropriation includes authorization for the City Manager to expend such monies and for the Finance Director to make payments therefore in accordance with the terms and conditions and for the purposes of the grant.

7. The Director of Finance is hereby authorized and directed to distribute the above appropriations to the va rious accounts of the City in accordance with generally accepted accounting practices and consistent with the purposes and objectives as outlined in the approved budget.

8. The budget for capital projects for fiscal year 2025-26, as contained in the document entitled "Proposed Capital Improvement Program FY 2026-35,” is hereby approved.

9. Any contract for professional services included in the annual budget that will cost more than $100,000 shall be executed by the City Manager only upon approval of the contract by the City Council given at a meeting of the City Council.

IN COUNCIL, HAYWARD, CALIFORNIA ___________, 2025.

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

ATT ACHMENT X

FY 2025-26 Budget Adoption Addendum

The one-time budget adjustments listed below are meant to reduce the use of General Fund Reserves for FY 2025-26. Upon budget adoption, staff will implement the proposed adjustments.

Reduction in IT Software and Transfer to General Fund $100,000 Reduction in Fleet Capital Budget and Transfer to General Fund $800,000 Reduction in General Liability Insurance General Fund Transfer $1,300,000 Reduction in Economic Development Fund General Fund Transfer $250,000 Reduction in City Manager’s Supplies & Services $50,000 Removal of Development Services Contracts $94,000
Property Acquisition Management Project Transfer to General Fund $600,000 Additional Vacancy Savings from Frozen Positions $1,396,860 Transfer of Route 238 Property Fund Balance to General Fund $2,650,000 Total Savings $7,240,860.00

Projected Deficit $16.1 million – Total Savings $7,240,860 Updated Projected Deficit = $8,859,140 ($8.9 million)

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: PH 25-033
DATE: June 17, 2025
TO: Mayor and City Council
FROM: Interim Finance Director

SUBJECT
Gann Limit Adoption: Adopt a Resolution Establishing a Gann Appropriations Limit for Fiscal Year 2026

RECOMMENDATION
That the City Council adopts a resolution (Attachment II) establishing a Gann appropriations limit for Fiscal Year 2025-26.

SUMMARY
Each fiscal year, the City is required to calculate and establish its appropriations limit. The Gann Limit for FY 2025-26 is calculated at $425,748,211, and the appropriations subject to limit total is $173,649,993.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III FY 2025-26 Gann Appropriation Limit
Attachment IV Gann Adjustment Factor
CITY OF HAYWARD Printed on 6/12/2025Page 1 of 1
powered by Legistar™

DATE: June 17, 2025

TO: Mayor and City Council

FROM: Interim Director of Finance

SUBJECT Gann Limit Adoption: Adopt a Resolution Establishing a Gann Appropriations Limit for Fiscal Year 2025-26

RECOMMENDATION

That the City Council adopts a resolution (Attachment II) establishing a Gann appropriations limit for Fiscal Year 2025-26.

SUMMARY

Each fiscal year, the City is required to calculate and establish its appropriations limit. The Gann Limit for FY 2025-26 is calculated at $425,748,211, and the appropriations subject to limit total is $173,649,993.

BACKGROUND

State Proposition 4, commonly known as the Gann Initiative, was approved by California voters in November 1979. Proposition 4 created Article XIIIB of the State Constitution, which places limits on the amount of revenue that can be spent by government agencies. This is referred to as the Gann Appropriation Limit, or Gann Limit.

A subsequent related State Initiative, Proposition 111, was approved by the voters in June 1990 and provided new adjustment formulas to make the Gann Limit more responsive to local growth issues and to address concerns regarding the accountability of local governments in adopting their limits. Prior to each fiscal year, city councils must adopt by resolution the Gann Appropriation Limit for the city for the upcoming year. In addition, cities are required to conduct a review of their limits during annual financial audits.

The appropriations limitation imposed by Propositions 4 and 111 creates a restriction on the amount of revenue that can be appropriated in any fiscal year. The limit is based on actual appropriations during the 1978-79 fiscal year and is increased each year using population and inflation growth factors. Only revenues that are classified as "proceeds of taxes" are subject to the limit. The use of "non-tax proceeds" (user fees, rental income, franchise fees, Gas Tax revenue) is not restricted.

DISCUSSION

During any fiscal year, a city may not appropriate any proceeds of taxes it receives in excess of its established limit. Excess funds received in any year may be carried into the subsequent year for use if the city is below its limit for that year. Any excess funds remaining after the second year would be required to be returned to local taxpayers by reducing tax rates or fees.

As an alternative, a majority of the voters may approve an "override" to increase the city's appropriations limit.

Senate Bill 1352 requires that the governing body of each local jurisdiction shall, by a legislative action, establish its appropriations limit at a regularly scheduled or special meeting and that the documentation used in the determination of the appropriations limit shall be made available to the public fifteen days before that meeting. Government Code Section 7910 requires that the City adopt its appropriations limit prior to the beginning of each fiscal year.

The Finance Department of the City of Hayward compiles the data and makes calculations incident to the determination of the XIIIB appropriations limit. The resolution establishes the appropriations limit FY 2025-26 to be $425,748,211.

STRATEGIC ROADMAP

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

FISCAL IMPACT

There are no present fiscal impacts related to establishing the limit for FY 2025-26. The amount of appropriations subject to the limit is the budgeted proceeds of taxes (e.g., all taxes levied; transfers from an enterprise fund to the extent those transfers exceed the cost of providing the services; discretionary state subventions; interest earned from the investment of proceeds of taxes, etc.), and the total of these budgeted revenues cannot exceed the total appropriations limit.

The City’s actual appropriations in each fiscal year have been significantly below the limit, as will be for FY 2025-26. The table below summarizes the limit for FY 2025-26 and the preceding five years.

PUBLIC CONTACT

The amount of the Fiscal Year 2025-26 appropriations limit and the documentation substantiating this determination are available for review by the public by contacting the Office of the City Clerk.

Prepared by: Nicholas Mullins, Senior Management Analyst

Recommended by: Sharif Etman, Interim Director of Finance

Approved by:

Michael Lawson, J.D.

Acting City Manager

ATTACHMENT II

HAYWARD CITY COUNCIL
RESOLUTION NO. 25-__________
Introduced by Council Member

ADOPTION OF APPROPRIATIONS LIMIT FOR FISCAL YEAR 20 25-26

PURSUANT TO ARTICLE XIII B OF THE CONSTITUTION OF THE STATE OF

CALIFORNIA

WHEREAS, on November 6, 1979, the citizens of the State of California approved Proposition 4, which added Article XIII B to the Constitution of the State of California to place various limitations on the fiscal powers of State and local government; and

WHEREAS, Senate Bill 1352, Government Code Section 7900, et. seq. enacted by the California Legislature, provides for the implementation of Article XIII; and WHEREAS, the City is required to establish its appropriations limit at a regularly scheduled meeting or noticed special meeting, and 15 days prior to such meeting, the documentation used in the determination of the appropriations limit shall be made available to the public; and
WHEREAS, the Gann Limit for FY 2025-26 is calculated at $425,748,211, and the appropriations in FY 2025-26 subject to this limit total $173,649,993; and WHEREAS, the FY 2025-26 Gann Limit was calculated using the change in the cost of living based on the change in California per capita personal income, and the change in population based on the percentage change in population within Alameda County.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Hayward that at its meeting of June 17, 202 5, Council will adopt a Resolution that establishes the appropriations limit for the FY 2025 -26 pursuant to Article XIII B of the Constitution of the State of California.

BE IT FURTHER RESOLVED that the documentation used in the determination of the appropriations limit for FY 2025-26 is available for public review by contacting the Office of the City Clerk of the City of Hayward.

IN COUNCIL, HAYWARD, CALIFORNIA June 17, 2025.

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
City of Hayward
Gann Appropriations
Limit

FY 2026
Gann Limit
City of Hayward
Appropriations Limit Calculation
FY 2026 Adjustment Factors

1. Population (0.27+ 100)/100 100.27%

2. Per Capita Income (2.75 + 100)/100 102.75%
Total Adjustment Factor: 103.027%
$41
3,237,748
103
.03%
FY 2025 Limit:

FY 2026 Adj Factor:

New Limit Amount: $42
5,748,211
FY 2026 Limit: $425,748,211
Reference

1. Population: County Population Change

2. Per Capita Income: CA PCI Change

ATTACHMENT IV

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: LB 25-016
DATE: June 17, 2025
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Electrification Reach Code: Introduction of Revised Electrification Reach Code Ordinance with Minor Modifications Required by California Building Standards Commission; Adoption of a Resolution Making Findings in Support of Local Modifications to the 2022 California Building Standards Code, and Finding that the Action is Exempt from CEQA Review

RECOMMENDATION
That the City Council adopts a resolution (Attachment II) making findings supporting the necessity for adoption of local modifications to the 2022 California Building Standards Code, introduces the revised Electrification Reach Code ordinance (Attachment III) to modify the California Green Building Standards Code, and finds the action to be exempt from review pursuant to the California Environmental Quality Act (CEQA). The ordinance includes amendments to the Off-Street Parking Regulations to modify electric vehicle charging requirements.

SUMMARY
On January 21, 2025, the City Council adopted a Reach Code ordinance to modify the electric vehicle (EV) charging requirements included in the California Green Building Standards Code (CalGreen). After adoption by the City Council, the Reach Code ordinance was submitted to the California Building Standards Commission (CBSC) for review and filing. The CBSC requested that the City provide a revised ordinance including definitions that are consistent with CalGreen. Staff made the necessary revisions to the ordinance, which if adopted by Council, will be forwarded to the CBSC. The revisions in the attached draft ordinance do not include substantive differences from the ordinance adopted by the City Council on January 21, 2025.

ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Ordinance
CITY OF HAYWARD Printed on 6/12/2025Page 1 of 2
powered by Legistar™
File #:LB 25-016
CITY OF HAYWARD Printed on 6/12/2025Page 2 of 2
powered by Legistar™

DATE: June 17, 2025

TO: Mayor and City Council

FROM: Director of Public Works & Director of Development Services

SUBJECT Electrification Reach Code: Introduction of Revised Electrification Reach Code Ordinance with Minor Modifications Required by California Building Standards Commission; Adoption of a Resolution Making Findings in Support of Local Modifications to the 2022 California Building Standards Code, and Finding that the Action is Exempt from CEQA Review

RECOMMENDATION

That the City Council adopts a resolution (Attachment II) making findings supporting the necessity for adoption of local modifications to the 2022 California Building Standards Code, introduces the revised Electrification Reach Code ordinance (Attachment III) to modify the California Green Building Standards Code, and finds the action to be exempt from review pursuant to the California Environmental Quality Act (CEQA). The ordinance includes amendments to the Off-Street Parking Regulations to modify electric vehicle charging requirements.

SUMMARY

On January 21, 2025, the City Council adopted a Reach Code ordinance to modify the electric vehicle (EV) charging requirements included in the California Green Building Standards Code (CalGreen). After adoption by the City Council, the Reach Code ordinance was submitted to the California Building Standards Commission (CBSC) for review and filing. The CBSC requested that the City provide a revised ordinance including definitions that are consistent with CalGreen. Staff made the necessary revisions to the ordinance, which if adopted by Council, will be forwarded to the CBSC. The revisions in the attached draft ordinance do not include substantive differences from the ordinance adopted by the City Council on January 21, 2025.

BACKGROUND

State law allows local jurisdictions to adopt ordinances that amend the California Building Standards Code. The ordinances are commonly referred to as reach codes. More than sixty local governments in California have adopted reach codes to encourage or require all- electric construction as well as electric vehicle charging infrastructure. The City of Hayward has had a reach code since 2020.

Following review and a recommendation from the City Council Sustainability Committee, the City Council introduced a Reach Code ordinance with updated requirements for EV charging infrastructure on December 17, 20241. On January 21, 20252, the City Council adopted the ordinance establishing local amendments to CalGreen and amending the City’s Off-Street Parking Regulations (Chapter 10, Article 2 of the City’s Municipal Code). The Reach Code ordinance, all previous Council reports, as well as checklists for builders and developers are available on the City’s Reach Code webpage3.

DISCUSSION

Once adopted, Reach Codes are required to be filed with the CBSC. Following the January adoption, staff submitted Hayward’s updated Reach Code and CBSC staff responded requesting a revised ordinance that includes definitions that are consistent with those in CalGreen. The attached ordinance includes the correct definitions as well as other minor modifications to the language for non-residential EV charging requirements for clarification. The ordinance has also be updated to include amendments to the City’s Building Code, Chapter 9 of the municipal code, to reference the EV charging requirements.

The ordinance does not include substantive changes from what was adopted on January 21, 2025. The numbers and types of EV charging spaces required in the ordinance remain the same.

ECONOMIC IMPACT

The Reach Code requirements for EV charging infrastructure do increase the cost of construction; however, future residents or employees can benefit from the cost savings of operating an EV compared to a gasoline vehicle. For a detailed discussion of the economic impacts, please refer to the December 17, 2024, City Council report.

FISCAL IMPACT

Updates to the Reach Code with new EV charging requirements do not impact the General Fund. Staff has been working with a consultant, TRC Companies, Inc., to prepare the technical revisions to the Reach Code ordinance. The cost of the consultant’s assistance, including work completed in 2024 and 2025, will not exceed $13,000 and will be paid from existing Environmental Services Division funds.

STRATEGIC ROADMAP

This agenda item supports the Strategic Priority to Champion Climate Resilience & Environmental Justice, and specifically relates to implementation of the following Project under that heading:

1 https://hayward.legistar.com/LegislationDetail.aspx?ID=7059334&GUID=CA8E7E66-F1E3-43D5-B983-E7AF7A763B31&Options=&Search= 2 https://hayward.legistar.com/LegislationDetail.aspx?ID=7096311&GUID=2BC22DF9-CD92-4678-8626-04A92CEA3393&Options=&Search= 3 https://www.hayward-ca.gov/reach-code

Reduce Greenhouse Gases and Dependency on Fossil Fuels:

Project CP1: Implement Year 1 Programs from the adopted GHG Roadmap(Climate Action Plan).

SUSTAINABILITY FEATURES

The use of electric appliances in homes and businesses avoids indoor air pollution associated with the burning of natural gas. Ending the use of natural gas and providing the infrastructure needed for a transition to electric vehicles are both necessary to meet the City’s long term GHG reduction goals, which include:
 30% below 2005 levels by 2025
 55% below 2005 levels by 2030
 work with the community to develop a plan that may result in the reduction of community based GHG emissions to achieve carbon neutrality by 2045

ENVIRONMENTAL REVIEW

Adoption of the revised Electrification Reach Code is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility that the action approved may have a significant effect on the environment. CEQA applies only to actions that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, the proposed action would have no or only a de minimis effect on the environment. The Ordinance is also exempt from CEQA under CEQA Guidelines section 15308, because it is a regulatory action for the protection of the environment.

PUBLIC CONTACT

No public contact was made regarding the adoption of the revised Electrification Reach Code.

NEXT STEPS

If the City Council approves the attached resolution, a second reading of the ordinance will be scheduled for a subsequent meeting. If the ordinance is adopted, it will be filed with the California Building Standards Commission.

Prepared by: Erik Pearson, Environmental Services Manager

Recommended by: Alex Ameri, Director of Public Works
Sara Buizer, Development Services Director

Approved by:

________________________________
Michael Lawson, J.D.

Acting City Manager

ATTACHMENT II

HAYWARD CITY COUNCIL

RESOLUTION NO. 25-

Introduced by Council Member

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAYWARD FINDING

AND DETERMINING THE NEED FOR ADOPTION OF LOCAL MODIFICATIONS TO THE 2022 CALIFORNIA BUILDING STANDARDS CODE AND FINDING THAT

THE ACTION IS EXEMPT FROM CEQA REVIEW

WHEREAS, scientific evidence has established that greenhouse gas (“GHG”) accumulation in the atmosphere as the result of human activity is the primary cause of the global climate crisis; and

WHEREAS, on September 8, 2016, California Governor Jerry Brown signed Senate Bill 32 (Pavley), setting a statewide GHG reduction target of 40% below 1990 levels by 2030; and

WHEREAS, on September 18, 2018, California Governor Jerry Brown signed Executive Order B-55-18, committing California to achieving carbon neutrality no later than 2045, and achieving and maintaining net negative emissions thereafter; and

WHEREAS, on January 15, 2019, the Hayward City Council unanimously approved a resolution endorsing the declaration of a climate emergency. The Declaration states that climate change threatens our community, as well as cities across the globe, and requests regional collaboration in restoring a safe concentration of GHG in our atmosphere; and

WHEREAS, in June 2020, the Hayward City Council adopted goals to reduce GHG emissions by 30% below 2005 baseline levels by 2025, 55% by 2030, and to work with the community to develop a plan that may result in the reduction of community based GHG emissions to achieve carbon neutrality by 2045; and

WHEREAS, the City of Hayward targets utilize a baseline different from the State of California’s but Hayward’s GHG reduction targets are equivalent to the State’s; and

WHEREAS, according to Hayward’s 2023 community-wide GHG inventory, transportation accounts for approximately 56 percent of total GHG emissions; and

WHEREAS, on January 30, 2024, the Hayward City Council adopted an updated Climate Action Plan as an amendment to the 2040 General Plan; and

WHEREAS, Hayward’s Climate Action Plan calls for continued enforcement of the Electric Vehicle (EV) Charging Reach Code requiring electric vehicle charging infrastructure above and beyond that required by the California Green Building Standards Code (CalGreen); and

WHEREAS, various state orders and statutes are targeted to reduction of GHG emissions including Executive Order N-79-20 and the Advanced Clean Cars II program which prohibits the sale of internal combustion passenger vehicles beyond 2035, and the California Green Building Standards Code which contains mandatory green building provisions including EV charging infrastructure; and

WHEREAS, an earlier version of Hayward’s Reach Code was adopted by the City Council on January 21, 2025; and

WHEREAS, Hayward’s Reach Code ordinance was reviewed by the California Building Standards Commission and Commission staff requested that the City provide a revised ordinance that includes definitions that are consistent with those in CalGreen; and

WHEREAS, Hayward staff prepared a revised ordinance the appropriate definitions and minor amendments for clarification; and

WHEREAS, the provisions in this Ordinance are designed to reduce greenhouse gas emissions; increase resource conservation; provide durable and sustainable buildings that are efficient and economical to own and operate; promote the health and productivity of residents, workers, and visitors to the City recognize and conserve the energy and reduce the environmental footprint of new developments; and reduce disturbance of natural ecosystems; and

WHEREAS, adoption of the reach codes as part of the 2022 California Building Standards Code is consistent with and would advance goals and policies contained in the Hayward 2040 General Plan related to climate change, greenhouse gas reductions, and public health and safety; and

WHEREAS, California Health and Safety Code section 17958 requires that cities adopt building regulations that are substantially the same as those adopted by the California Building Standards Commission and contained in the California Building Standards; and

WHEREAS, California Health and Safety Code Sections 17958.5, 17958.7 and 18941.5 provide that the City may make changes or modifications to the building standards contained in the California Building Standards based upon express findings that such changes or modifications are reasonably necessary because of local climatic, geological or topographical conditions; and

WHEREAS, the City Council of the City of Hayward finds that each of the amendments, additions and deletions to the 2022 California Building Standards Code contained in this ordinance are reasonably necessary because of local climatic, geological or topographical conditions described in Section 1.

NOW, THEREFORE, BE IT RESOLVED that the aforementioned amendments to the 2022 California Building Standards Code, are based on local climatic, geological, or topographical conditions. The "Findings of Facts" contained herein addresses present local conditions which either singularly or in combination cause the aforementioned amendments to be adopted.

SECTION 1: FINDINGS AND DETERMINATIONS.

The following local climatic, conditions justify modifications to the California Building Standards Code.

1. The City of Hayward is already experiencing the repercussions of excessive greenhouse gas emissions including increased temperatures and more extreme weather events, decreased precipitation, and increased wildfire risk.

2. Portions of the City of Hayward are situated along a wildland-urban interface and are extremely vulnerable to wildfires, and human activities releasing greenhouse gases into the atmosphere cause increases in worldwide average temperature, drought conditions, vegetative fuel, and length of fire seasons—all of which contribute to the likelihood and consequences of fire.

3. Marginalized communities in the City of Hayward and worldwide—including people of color, immigrants, indigenous communities, low-income people, those with disabilities, and the unhoused—are already disproportionately affected by climate change and are especially vulnerable to heat events.

4. City of Hayward residents suffer from asthma and other health conditions associated with poor indoor and outdoor air quality exacerbated by the combustion of fossil fuels.

5. Local conditions have a definite impact upon buildings in Hayward. Therefore, it is found to be reasonably necessary that the 2022 California Building Standards Code be changed or modified to mitigate the effects of the above conditions.

SECTION 2. CEQA Finding.

The City Council finds that this Ordinance is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility that the action approved may have a significant effect on the environment. CEQA applies only to actions which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, the proposed action would have no or only a de minimis effect on the environment. The Ordinance is also exempt from CEQA under CEQA Guidelines section 15308, because it is a regulatory action for the protection of the environment. The foregoing determination is made by the City Council in its independent judgment.

BE IT FURTHER RESOLVED that the City Clerk is hereby directed to cause a copy of this resolution, together with the modifications or changes to the 2022 California Building Code, to be filed with the California Building Standards Commission.

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

ORDINANCE NO. _

AN ORDINANCE AMENDING REACH CODES FOR THE CITY OF
HAYWARD BY AMENDING THE CITY’S OFF-STREET PARKING
REGULATIONS (CHAPTER 10, ARTICLE 2); AND AMENDING

THE BUILDING CODE OF THE CITY OF HAYWARD (CHAPTER
9, ARTICLE 1) OF THE HAYWARD MUNICIPAL CODE

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

Section 1. Purpose and Intent. It is the purpose and intent of this Ordinance to expressly enact local amendments to the 2022 California Building Code and will comply with and exceed the 2025 California Building Code applicable to new construction to provide standards for new buildings to improve community health and safety while reducing greenhouse gas emissions.

Section 2. This ordinance shall become effective 30 days after adoption by the City Council. The following are hereby adopted as local amendments to Part 11 (California Green Building Standards Code) of the California Building Standards Code (Title 24 of the California Code of Regulations):

Amend CALGreen Chapters 2, 4, and 5 to add requirements for ELECTRIC VEHICLE

CHARGING INFRASTRUCTURE

Chapter 9 of the Hayward Municipal Code
(Building Code)

Section 9-1.01 - Summary of Local Amendments. This section is amended by adding the following:

Code Section Added
to Code
Code
Change
Deleted
from
Code
Notes/Justification
California Green
Building
Standards Code,
Title 24 Part 11
X Adds definitions and increased
requirements for electric vehicle
charging infrastructure for new
construction

Attachment III

Section 9-1.02 - Local Amendments to the Code By Chapter. This section is amended by adding the following:

California Green Building Standards Code, Title 24 Part 11– Electric Vehicle Charging Infrastructure Amendments

Chapter 2 Definitions is amended to add the following definitions:

 Assigned Parking
 Direct Current Fast Charging
 Level 2 EV Capable
 Level 2 EV Charging Receptacle
 Level 2 EV Ready
 Low Power Level 2 EV Ready
 Unassigned or Common Use Parking
 Unbundled Parking

And modifies the following definitions:

 Automatic Load Management to provide electric specifications

Section 4.106.4 is amended to require one more parking space in single family home to be Level 2 EV Ready.

Section 5.106.5.3 is amended to:
 Create an exception for unbundled parking for the direct wiring requirements.
 Increase Level 2 EVCS Requirement from 15% to 30% of parking spaces for offices and retail buildings.
 Increase Level 2 EV Capable requirements from 5% to 20% of parking spaces for offices and retail buildings.

Table 5.106.5.3.6 is formatted differently so the requirements are easier to understand.

However, the requirements are the same.

Attachment III

Amend CALGreen Chapters 2, 4, and 5 to add requirements for ELECTRIC VEHICLE

CHARGING INFRASTRUCTURE

Chapter 10, Article 2 of the Hayward Municipal Code
(Off-Street Parking Regulations)

Section 4.106.4 and Section 5.106.5.3 of the California Green Building Standards Code is amended as follows:

Chapter 10, Article 2 is amended as follows:

Section 202 of the California Green Building Standards Code is amended as follows:

Section 10.2.100 – Definitions. This section is amended by adding the following definitions:

a. ‘Assigned Parking’. The words ‘Assigned Parking’ shall mean parking spaces in a residential parking facility that are assigned or designated for use by a specific living unit within the building or residence.
b. ‘Automatic Load Management Systems (ALMS).’ The words ‘Automatic Load Management Systems (ALMS)’ shall mean a control system designed to manage load across one or more electric vehicle supply equipment (EVSE), circuits, or panels, and share electrical capacity and/or automatically manage power at each connection point. ALMS systems must be designed to deliver no less than 3.3 kVa (208/240 volt, 16-ampere) to each EV Capable, EV Ready or EVCS space served by the ALMS, and meet the requirements of California Electrical Code Article 625. The connected amperage to the building site for the EV charging infrastructure shall not be lower than the required connected amperage per California Green Building Standards Code, Title 24 Part 11.

c. ‘Direct Current Fast Charging (DCFC). The words ‘Direct Current Fast Charging (DCFC)’ shall mean a parking space provided with electrical infrastructure that meets the following conditions:

1) A minimum of 48 kVa (480 volt, 60-ampere) branch circuit. 2) Electric vehicle supply equipment (EVSE) located within three (3) feet of the parking space providing a minimum capacity of 80-ampere. c.
1) A minimum of 48 kVa (480 volt, 10060-ampere) capacity wiring. 2) Electric vehicle supply equipment (EVSE) located within three (3) feet of the parking space providing a minimum capacity of 80-ampere.
d. ‘Electric Vehicle Charging Station (EVCS).’ The words ‘Electric Vehicle Charging Station (EVCS)’ shall mean a parking space that includes installation of electric vehicle Attachment III

supply equipment (EVSE) at an EV Ready space. An EVCS space may be used to satisfy EV Ready space requirements. EVSE shall be installed in accordance with the California Electrical Code, Article 625.
e. ‘Electric Vehicle Supply Equipment (EVSE).’ The words ‘Electric Vehicle Supply Equipment (EVSE)’ shall mean the conductors, including the ungrounded, grounded, and equipment grounding conductors and the electric vehicle connectors, attachment plugs, personnel protection system, and all other fittings, devices, power outlets, or apparatus installed specifically for the purpose of transferring energy between the premises wiring and the electric vehicle.
d. ‘Electric Vehicle Charging Station (EVCS).’ One or more electric vehicle charging spaces served by EVSE or receptacles.
e. ‘Electric Vehicle Supply Equipment (EVSE).’ The words ‘Electric Vehicle Supply Equipment (EVSE)’ shall mean the conductors, including the ungrounded, grounded, and equipment grounding conductors and the electric vehicle connectors, attachment plugs, personnel protection system, and all other fittings, devices, power outlets, or apparatus installed specifically for the purpose of transferring energy between the premises wiring and the electric vehicle.
f. ‘Level 2 Electric Vehicle (EV) Charger.’ A 208/240-volt 30-ampere minimum electric vehicle charger connected to the premises electrical system capable of charging electric vehicles.
f.g. ‘Level 2 EV Capable.’ The words ‘Level 2 EV Capable’ shall mean a parking space provided with electrical infrastructure that meets the following requirements:
1) Conduit that links a listed electrical panel with sufficient capacity to a junction box or receptacle located within three (3) feet of the parking space. 2) The conduit shall be designed to provide at least 8.3 kVa (208/240 volt, 40- ampere) per parking space. Conduit shall have a minimum nominal trade size of 1 inch inside diameter and may be sized for multiple circuits as allowed by the California Electrical Code. Conduit shall be installed at a minimum in spaces that will be inaccessible after construction, either trenched underground or where penetrations to walls, floors, or other partitions would otherwise be required for future installation of branch circuits, and such additional elements deemed necessary by the Building Official. Construction documents shall indicate future completion of conduit from the panel to the parking space, via the installed inaccessible conduit.
3) The electrical panel shall reserve a space for a 208/240 volt, 40-ampere overcurrent protective device space(s) for EV charging, labeled in the panel directory as “EV CAPABLE.”
4) Electrical load calculations shall demonstrate that the electrical panel service capacity and electrical system, including any on-site distribution transformer(s), have sufficient capacity to simultaneously charge all EVs at all required EV spaces at a minimum of 208/240 volt, 40 amperes.
5) The parking space shall contain signage with at least a 12” font adjacent to the parking space indicating the space is EV Capable in accordance with Caltrans Traffic Operations Policy Directive 13-01 (Zero Emission Vehicle Signs and Pavement Markings) or its successor(s).

Attachment III

g.h. ‘Level 2 Electric Vehicle (EV) Charging Receptacle’. The words ‘Level 2 Electric Vehicle (EV) Charging Receptacle’ shall mean a 208/240-volt 40-ampere minimum branch circuit and a receptacle.
h.i. ‘Level 2 EV Ready.’ The words ‘Level 2 EV Ready’ shall mean a parking space that is served by a complete electric circuit with the following requirements:
1) A minimum of 8.3 kVa (208/240 volt, 40-ampere) capacity wiringbranch circuit. 2) A receptacle labeled “Electric Vehicle Outlet” or electric vehicle supply equipment located within three (3) feet of the parking space. If EVSE is provided the minimum capacity of the EVSE shall be 30-ampere.
i.j. ‘Low Power Level 2 EV Ready.’ The words ‘Low Power Level 2 EV Ready’ shall mean a parking space that is served by a complete electric circuit with the following requirements:
1) A minimum of 4.1 kVA (208/240 Volt, 20-ampere) branch circuit.capacity wiring.
2) A receptacle labeled “Electric Vehicle Outlet” or electric vehicle supply equipment located within three (3) feet of the parking space. If EVSE is provided the minimum capacity of the EVSE shall be 16-ampere.
3) Conduit oversized to accommodate future Level 2 EV Ready (208/240 volt, 40- ampere) at each parking space.
k. ‘Unassigned Or Common Use Parking’. The words ‘Unassigned Or Common Use Parking’ shall mean parking spaces in a residential parking facility that are not reserved for or assigned to a specific living unit within the building or residence, including guest, staff, or other non-resident parking.
j.l. ‘Unbundled Parking.’ Vehicular parking for sale or lease to residents of a building separate from the sale or lease of living units within that residential building.

Section 10.2.200 – Application. This section is amended by adding the following:

Section 301.3, Section 4.106.4, and Section 5.106.5.3 of the California Green Building Standards Code is amended as follows:

1. The Off-Street Electric Vehicle Charging requirements in this Article shall apply at the time of construction of any new building.

2. For EV charging infrastructure requirements for existing nonresidential buildings, see Section 5.106.5.4 of the California Green Building Standards Code.

3. For EV charging infrastructure requirements for existing residential buildings, see Section 4.106.4.3 of the California Green Building Standards Code.

4. For additional EV infrastructure requirements for select nonresidential buildings, see Section 5.106.5.5 of the California Green Building Standards Code.

Attachment III

Chapter 10, Article 2 is further amended by adding a new Part VIII as follows:

VIII. REQUIREMENTS FOR EV CHARGING INFRASTRUCTURE
SEC. 10-2.800 ELECTRIC VEHICLE (EV) CHARGING SPACES

Electric vehicle (EV) charging infrastructure shall be provided and maintained for projects whenever off-street parking is provided. The infrastructure shall be provided in accordance with the requirements of the California Green Building Standards Code, Title 24 Part 11, and the requirements in this Section, whichever provides greater number of off- street parking spaces with access to EV charging infrastructure. All accessibility provisions shall meet California Building Code Chapters 11A and 11B and Part VII of this Article. All signage provisions shall meet Caltrans Traffic Operations Policy Directive 13-01 (Zero Emission Vehicle Signs and Pavement Markings) or its successor(s).

All such spaces shall count toward the minimum required parking spaces. Where two or more primary uses occupy a single site, the EV infrastructure required for each use shall be calculated separately. Calculations for the required minimum number spaces with EV infrastructure shall be rounded up to the nearest whole number. Requirements represent the minimum charging infrastructure required, and increases in installed infrastructure, such as EV Supply Equipment and delivered power, shall be permissible.

Sections 4.106.4.1, 4.106.4.2, and 5.106.5.3 of the California Green Building Standards Code are amended as follows:

SEC. 10-2.810 Electric Vehicle Charging Requirements by Use.

Uses EV Charging Infrastructure Required 1
Single-Family Dwellings
and Townhomes
 Each of the first two parking spaces per dwelling unit shall be provided with a Level 2 EV Ready space.

Multiple-Family Dwellings
with Assigned Parking
 All dwelling units with parking spaces shall be provided with at least one Low Power Level 2 EV Ready space.
 Automatic Load Management Systems (ALMS) shall be permitted to reduce load when multiple vehicles are charging.
 EV charging receptacles in multifamily parking facilities at assigned parking spaces shall be provided with a dedicated branch circuit

1 When Level 2 EV Chargers are installed in a number greater than the minimum percent of parking spaces required by Section 10-2.810, the number of low power Level 2 EV Ready or Level 2 EV Ccapable spaces required may be reduced by a number equal to the number of EV chargers installed over the percent required.

Attachment III

connected to the dwelling unit’s electrical meter panel, unless determined as infeasible by the project builder or designer and subject to concurrence of the local enforcing agency. Unbundled Parking spaces, as defined as vehicular parking for sale or lease to residents of a building separate from the sale or lease of living units within that residential building, are also exempt from this requirement.

Multiple-Family Dwellings
with Unassigned or
Common use Parking
 Where dwelling units are provided with unassigned parking spaces equal to or greater than the number of dwelling units:
o At least one Level 2 Ready with a Level 2 EV Chargers and Electric Vehicle Charging Station (EVCS) shall be provided at an unassigned parking space for a minimum of 25% of
total dwelling units.
o All remaining unassigned parking spaces shall be provided with at least one Low Power Level 2 EV Ready space.
o The total number of EV charging spaces shall be equal to one-hundred percent (100%) of dwelling units or one-
hundred percent (100%) of parking spaces, whichever is
less.
 Where the total number of dwelling units exceeds the number of unassigned parking spaces:
o For unassigned or common use parking, a minimum of
twenty-five (25%) of spaces shall be equipped with Level 2 EV chargers and shall be made available for use by all
residents or guests.
o All remaining unassigned parking spaces shall be provided with at least one Low Power Level 2 EV Ready space.
o The total number of EV charging spaces shall be equal to one-hundred percent (100%) of dwelling units or one-
hundred percent (100%) of parking spaces, whichever is
less.

 EV chargers shall be equipped with J1772 or J3400 connectors.

Offices and Retail  A minimum of 20% of parking spaces provided shall be provided with a Level 2 Ready and EVCS; and
 A minimum of 50% of parking spaces provided shall be provided with a Level 2 Ready and EVCS or are Level 2 EV Capable.A minimum of 20% of parking spaces provided shall be Level 2 EV Ready with Level 2 Chargers installed.
 A minimum of 30% of parking spaces provided shall be Level 2 EV Capable.

 ALMS shall be permitted to reduce load when multiple vehicles are charging.

Hotels and Motels  A minimum of 15% of parking spaces provided shall be provided with a Level 2 Ready and EVCS; and
 A minimum of 40% of parking spaces provided shall be provided with a Low Power Level 2 Ready and EVCS or are Low Power Level 2 EV Attachment III

Ready.A minimum of 25% of parking spaces provided shall be Level 2 EV Ready with Level 2 Chargers installed.
 A minimum of 40% of parking spaces provided shall be Low-Power Level 2 EV Ready.
 ALMS shall be permitted to reduce load when multiple vehicles are charging.
 EV chargers shall be equipped with J1772 or J3400 connectors.

All Other Non-Residential
Uses
 A minimum of 10% of parking spaces provided shall be provided with a Level 2 Ready and EVCS; and
 A minimum of 20% of parking spaces provided shall be provided with a Level 2 Ready and EVCS, or are Level 2 EV Capable.A minimum of 10% of parking spaces provided shall be Level 2 EV Ready with Level 2 Chargers installed.
 A minimum of 10% of parking spaces provided shall be Level 2 EV Capable.
 ALMS shall be permitted to reduce load when multiple vehicles are charging.

SEC. 10-2.820 Direct Current Fast Charging stations.
a. One DCFC may be substituted for up to five (5) Level 2 EV chargers EVCS to meet the requirements of Section 10-2.810.
b. Where ALMS serve DCFC stations, the power demand from the DCFC shall be prioritized above Level 2 spaces.

SEC. 10-2.830 Receptacle Configurations.
a. 208/240V EV charging receptacles shall comply with one of the following configurations:
1) For 20- ampere receptacles, NEMA 6-20R
2) For 30- ampere receptacles, NEMA 14-30R
3) For 50- ampere receptacles, NEMA 14-50R

Sec. 10-2.833 EV Charger Connectors
EV chargers shall be equipped with SAE J1772 with a maximum output 240 Volts AC or SAE J3400 connectors. When using level 2 SAE J3400 SAE connectors, supplied by a 480 V 3- phase service, then at least 20 percent of the EV charger connectors shall be SAE J1772 with a maximum output 240 Volts AC.

Section 5.106.5.3.6 of the California Green Building Standards Code is amended as follows:

SEC. 10-2.835 Electric vehicle charging stations (EVCS)—power allocation method.

Attachment III

a. The power allocation method may be used as an alternative to the requirements in Section 5.106.5.3.1, Section 5.106.5.3.2 and associated Table 5.106.5.3.1.

Use Table 5.106.5.3.6 to determine the total power in kVA required based on the total number of actual parking spaces.
b. Power allocation method shall include the following:
1) Use any kVA combination of EV capable spaces, low power Level 2, Level 2 or DCFC EVSEs.
2) At least one Level 2 EVSE shall be provided.

TABLE 5.106.5.3.6

FACILITY
TYPE

MINIMUM TOTAL
kVA @ 6.6 kVA1
MAXIMUM kVA

ALLOWED FOR EV
CAPABLE SPACES1, 2
MINIMUM kVA REQUIRED

IN ANY COMBINATION OF
LOW POWER LEVEL 2,
LEVEL 2, OR DCFC1, 3,
Office &
Retail
50% of actual
parking spaces x 6.6
30% of actual parking
spaces x 6.6
20% of actual parking
spaces x 6.6
All Other 20% of actual
parking spaces x 6.6
10% of actual parking
spaces x 6.6
10% of actual parking
spaces x 6.6

1. Calculation for spaces shall be rounded up to the nearest whole number.

2. If EV capable spaces are utilized, they shall meet the requirements of Section 5.106.5.3.1 EV capable spaces.

3. Level 2 EVSE @ 6.6 kVA minimum.

Section 4.106.4 and Section 5.106.5.3 of the California Green Building Standards Code is amended as follows:

SEC. 10-2.840 Exceptions.
a. Where there is no local utility power supply, or the local utility is unable to supply adequate power.
b. Where there is evidence suitable to the local enforcing agency substantiating that additional local utility infrastructure design requirements directly related to the implementation of Section 10-2.81081030-0.3 may increase construction cost by an average of $4,500 per parking space. EV infrastructure shall be provided up to the level that would not exceed this cost for utility service. c. Spaces accessible only by automated mechanical car parking systems are excepted from providing EV charging infrastructure.

d. Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU) without additional parking facilities and without electrical panel upgrade or new Attachment III

panel installation. Detached ADUs, attached ADUs, and JADUs without additional parking but with electrical panel upgrades or new panels must have reserved breakers and electrical capacity according to the requirements of 4.106.4.1. e. Decisions on the above exceptions may be appealed pursuant to Section 10-2.430.

Section 3. Enactment of Local Amendments to the California Building Standards Code, Title 24, Part 11 (Amendments to Chapters 9 and 10 of the Hayward Municipal Code).

The local amendments to the 2022 California Building Standards Code, Title 24, Part 11, are hereby enacted.

Section 4. Severability. The provisions of this Ordinance are severable, and if any clause, sentence, paragraph, provision, or part of this Ordinance, or the application of this Ordinance to any person, is held to be invalid or preempted by state or federal law, such holding shall not impair or invalidate the remainder of this Ordinance. If any provision of this Ordinance is held to be inapplicable, the provisions of this Ordinance shall nonetheless continue to apply with respect to all other covered development projects and applicants. It is hereby declared to be the legislative intent of the City Council that this Ordinance would have been adopted had such provisions not been included or such persons or circumstances been expressly excluded from its coverage.

Section 5. Effective Date. This ordinance shall become effective 30 days after adoption by the City Council.

Attachment III

INTRODUCED at a regular meeting of the City Council of the City of Hayward, held the 17th day of June, 2025, by Council Member .

ADOPTED at a regular meeting of the City Council of the City of Hayward held the ___th day of June, 2025, by the following votes of members of said City Council.

AYES: COUNCIL MEMBERS:

MAYOR:

NOES: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

APPROVED: __________________________
Mayor of the City of Hayward

DATE:

ATTEST:

City Clerk of the City of Hayward

APPROVED AS TO FORM:

City Attorney of the City of Hayward

CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: RPT 25-055
DATE: June 17, 2025
TO: Mayor and City Council
FROM: Director of Public Works

SUBJECT
Update on City Fleet Electrification and Electric Vehicle Charging

RECOMMENDATION
That the City Council receives this informational report.

SUMMARY
This report presents a summary of a study analyzing the costs and charging infrastructure needed to electrify the City’sfleet, including all non-emergency light, medium and heavy-duty vehicles. The report shows that the costs to acquire electric vehicles are currently approximately 60 to 80 percent more than those for vehicles with internal combustion engines. This report also addresses the charging infrastructure needed for the City’s fleet as well as charging infrastructure for use by City employees.

Transitioning to a fleet of electric vehicles, including the required charging infrastructure, will require significant City resources. To support a 15-year replacement cycle, the City currently budgets $3.2M annually on its non-emergency fleet, including new vehicle purchases and the operation and maintenance of existing vehicles, the actual annual expenditure spent on replacement varies year to year based on available dollars. Even with a reduction in maintenance costs (approximately 40%), transitioning to electric vehicles is estimated to cost approximately $5.5M per year, or $2.3M more per year.

The first significant installation of EV charging infrastructure to support the City’sEV fleet will be at the Corporation Yard where a solar carport and battery storage will be installed in partnership with Ava Community Energy. Combining these projects presents an opportunity to reduce total overall costs.

ATTACHMENTS
Attachment I Staff Report
Attachment II City of Hayward Fleet Electrification Assessment CITY OF HAYWARD Printed on 6/12/2025Page 1 of 2
powered by Legistar™
File #:RPT 25-055
CITY OF HAYWARD Printed on 6/12/2025Page 2 of 2
powered by Legistar™

DATE: June 17, 2025

TO: Mayor and City Council

FROM: Director of Public Works & Director of Maintenance Services

SUBJECT Update on City Fleet Electrification and Electric Vehicle Charging

RECOMMENDATION

That the City Council receives this informational report.

SUMMARY

This report presents a summary of a study analyzing the costs and charging infrastructure needed to electrify the City’s fleet, including all non-emergency light, medium and heavy- duty vehicles. The report shows that the costs to acquire electric vehicles are currently approximately 60 to 80 percent more than those for vehicles with internal combustion engines. This report also addresses the charging infrastructure needed for the City’s fleet as well as charging infrastructure for use by City employees. Transitioning to a fleet of electric vehicles, including the required charging infrastructure, will require significant City resources. To support a 15-year replacement cycle, the City currently budgets $3.2M annually on its non-emergency fleet, including new vehicle purchases and the operation and maintenance of existing vehicles, the actual annual expenditure spent on replacement varies year to year based on available dollars. Even with a reduction in maintenance costs (approximately 40%), transitioning to electric vehicles is estimated to cost approximately $5.5M per year, or $2.3M more per year.

The first significant installation of EV charging infrastructure to support the City’s EV fleet will be at the Corporation Yard where a solar carport and battery storage will be installed in partnership with Ava Community Energy. Combining these projects presents an opportunity to reduce total overall costs.

BACKGROUND

In June 2020, the City Council adopted ambitious goals to reduce greenhouse gas (GHG) emissions 55% below 2005 levels by 2030 and to work with the community to develop a plan that may result in the reduction of community-based GHG emissions to achieve carbon neutrality by 2045. Of Hayward’s total GHG emissions, the transportation sector accounts for close to 65%. While active transportation (walking, biking, etc.), ridesharing, public

transit, and other strategies will be important to achieving needed reductions in Hayward’s transportation emissions, the electrification of cars and trucks will also be a key part of reducing overall emissions.

In 2020, Council adopted, as part of its Strategic Roadmap, a goal of transitioning 15% of the City’s fleet to EV or hybrid models by June 2023. While this goal is not listed in the current Strategic Roadmap, staff continues to stive to add more EV and hybrid models to the City’s fleet. Of the City fleet of 333 vehicles, 53 (16%) are EV or Hybrid. Uncertainty in global EV production, regulatory changes and supply chain issues have continued to make EV acquisition more difficult and cost prohibitive than traditional combustion engine vehicles. In 2024, staff had ordered eight hybrid police patrol vehicles, but the manufacturer had supply chain problems and could not deliver. Unfortunately, those vehicles had to be purchased as conventional internal combustion engine (ICE) vehicles.

Shifts in government incentives, tariffs and the availability of critical minerals continue to contribute to this instability.

Advanced Clean Fleet Regulations – In October 2022, the California Air Resources Board (CARB) adopted new rules for medium- and heavy-duty vehicles. The regulations require that, effective January 1, 2024, at least 50 percent of annual vehicle purchases must be zero-emission vehicles (ZEV) and beginning January 1, 2027, 100 percent must be ZEV.

Emergency vehicles are exempt from the rules. In addition, exemptions may be approved by CARB if a required ZEV is not available to purchase in the same configuration as a vehicle needing to be replaced. CARB also maintains a ZEV Purchase Exemption List1 with common vehicle body configurations that are not available. The list would allow fleet owners to purchase new ICE vehicles without applying for an exemption in advance. Since January 2024, the City has purchased three electric medium-duty vehicles, including a Ford Lightning pickup truck and two Ford E-Transit vans. There are several specialized trucks used by City staff on a daily basis that are currently not available as electric vehicles.

Nonetheless, staff expects to comply with the ACF regulations in the foreseeable future.

Council Sustainability Committee – On January 8, 20242, staff presented to the Council Sustainability Committee (CSC) a report summarizing the fleet electrification study completed with Ava Community Energy. The Committee requested that the report be presented to the full City Council. Since the CSC meeting, to fund the installation of EV chargers, staff explored opportunities including potential financing through Ava Community Energy as well as a grant opportunity with the California Energy Commission.

Unfortunately, the Ava financing did not come to fruition and the CEC grant was not successful.

Critical Municipal Facilities Projects – On October 15, 20243, the City Council authorized a power purchase agreement with Ava Community Energy to install solar and battery storage at four City facilities. The project includes a solar carport and battery storage at the Corporation Yard. After several delays and funding modifications, Ava Community Energy

1 https://ww2.arb.ca.gov/resources/fact-sheets/advanced-clean-fleets-regulation-exemptions-and-extensions-overview 2 https://hayward.legistar.com/LegislationDetail.aspx?ID=6465958&GUID=F6A51C0F-7AA5-4ED3-88F5-C69519C4047C&Options=&Search= 3 https://hayward.legistar.com/LegislationDetail.aspx?ID=6892959&GUID=3604BC5C-F8EB-40B1-873F-2BCCB9FB1CC7&Options=&Search=

has selected a new engineering and construction contractor and construction is scheduled to begin this fall.

DISCUSSION

In 2023, staff worked with Ava Community Energy and their consultants to prepare the City of Hayward Fleet Electrification Assessment (see Attachment II). The report, prepared by a consultant team led by Frontier Energy with support from Ava Community Energy, analyzed the impacts of electrifying the City’s fleet of 240 light-, medium- and heavy-duty vehicles located at various City facilities. The report includes the following sections:

 10-year cost summary
 Charging equipment for fleet vehicles
 Charging equipment for employees
 Fleet Transition Planner
 Advanced Clean Fleet (ACF) Compliance
 Fuel/Maintenance Cost Savings
 Greenhouse Gas Emission Reduction Benefits.

The report presents the cost of electrification (“EV Transition”) compared to current costs (“Baseline”). The analysis shows that, over the next 10 years, transitioning the City’s municipal fleet to electric vehicles would increase the City’s net costs by about $22.5M. This includes a decrease in operating expenses by approximately $3M when compared to the Baseline scenario over a ten-year period. These costs include the charging equipment needed to support the new fleet of EVs. More detail regarding these costs is provided in Table 1 below.

Table 1. 10-Year Summary of Costs (2024 – 2034)

Baseline EV Transition
Cost Cost
$ Above
Baseline
Vehicle Capital Expenditures $22,185,934 $39,365,958 $17,180,024 Vehicle Operational Expenditures $2,070,319 $1,279,137 -$791,182 Insurance $1,408,555 $3,477,358 $2,068,803
Registration $894,784 $1,483,173 $588,389
Fuel Costs $5,478,678 $3,227,646 -$2,251,032
Fleet Chargers Capital Expenditures $4,848,700 $4,848,700 Fleet Charger Operational Expenditures $898,390 $898,390 Total $32,038,270 $54,580,362 $22,542,092

It is important to note that the electrification costs in this report are preliminary estimates.

After construction-level documents are prepared for charger installations, it is possible that costs will change if additional infrastructure upgrades (transformers, electrical panels, etc.) are found to be necessary. Operational costs, including fuel, electricity and maintenance, are also estimates. The costs of procuring electric vehicles are based on market conditions

as of the fall of 2023. The attached report is a 10-year plan. It assumes that the City will continue its practice of replacing most of its non-emergency vehicles every 15 years.

Therefore, depending on vehicle availability, the complete transition to an all-electric fleet is expected to take at least 15 years.

Compliance with CARB’s Advanced Clean Fleet Regulations will be very expensive. In addition to the high cost of EVs that are currently available, charging equipment will be expensive and may take a long time to install. New transformers can take many months to receive and coordination with PG&E can also result in significant delays. Staff cannot purchase new electric cars and trucks until the charging infrastructure is installed and funds to install charging infrastructure are limited.

Charging Equipment for Fleet Vehicles – The report recommends 146 Level 2 chargers and 6 direct current fast chargers (DCFC). While some infrastructure, such as service and transformer upgrades would need to be installed in the near term, chargers would be installed in phases as electric vehicles area added to the fleet. All recommended chargers would be dual-port chargers so they would provide charging for 304 fleet vehicles.

Preliminary analysis shows that several facilities would need electrical upgrades (transformers, switchgear, etc.). These improvements are likely to require long lead times to procure the necessary equipment and schedule installations with PG&E. Table 2 below lists the number of chargers recommended for each location as well as the need for electrical upgrades.

Table 2. Recommended Fleet Chargers by Location

Location
Existing
Chargers
Number of
chargers4
recommended
Electrical Upgrades Needed?
L2 Fast L2 Fast
Airport 2 3
Yes. May be completed along other
electrical upgrades planned for
the Airport.

Animal Shelter 3 No
City Hall Garage 23 2 Yes. electrical service upgrade and new service panel
Corp Yard 68 2
Yes, new pad-mounted utility
transformer; new switchboard;
and service panels
Facilities &
Landscape
Maintenance
1 4
No

4 Types of EV chargers:
 Level 1 – 15-20 Amps, providing a driving distance of 3-4 miles/hour of charge.  Level 2 – 40 Amps, providing a driving distance of 25-30 miles/hour of charge.  Direct Current Fast Charger (DCFC) – 80 – 400 Amps, providing a driving distance of 125-1,000 miles/hour of charge.

Fire Station 1 3 No
Fire Station 2 2 Yes, new service panel
Fire Station 6 3 1 No
Fire Station 7 1 Likely no, but further analysis
needed.

Fire Station 9 1 No
Police Dept 18 2 Yes, new step-down transformer
and sub-panel
North District
Police 4 Yes, new step-down transformer
and sub-panel
Utilities Center 2 8 No
Water Resource
Recovery Facility 2 6 No (New Admin building will
provide new infrastructure.)
Weekes Library 1 No
Total 7 0 146 6

The cost to install the chargers is estimated to be approximately $4.8 million and the cost to operate the chargers is estimated to be approximately $90,000 per year.

Installing solar photovoltaic (PV) systems along with the chargers, would reduce operational costs and provide covered parking opportunities for the City’s fleet which would protect the vehicles and improve comfort for staff. As noted above, staff is working with Ava Community Energy to install solar and battery storage at some facilities to improve resiliency to grid outages. Even with solar and batteries, staff may need to upgrade existing diesel generators to keep fleet vehicles charged during an extended grid outage.

EV Procurement – The cost of procuring EVs over the next ten years is projected to be $39.4M compared to $22.2M if the City were to only purchase internal combustion engine vehicles. However, because most vehicles are replaced every 15 years, full electrification of the City’s fleet is expected to take approximately 15 years. As noted above, the ACF requires, effective January 1, 2024, at least 50 percent of medium- and heavy-duty purchases must be zero-emission vehicles (ZEV) and beginning January 1, 2027, 100 percent must be ZEV. The consultant team prepared an ACF compliance tool to help plan medium- and heavy-duty vehicle purchases to ensure compliance with the ACF CARB rule and to ensure enough chargers are installed and operational before the delivery of EVs.

Current costs for electric vehicles are much higher than comparable vehicles with internal combustion engines (ICE). The difference in cost for medium and heavy-duty (MD/HD) vehicles is even more significant. For example, the cost of an ICE street sweeper is approximately $375,000, whereas an EV street sweeper is approximately $850,000.

Production of MD/HD EV trucks continues to be slow-paced. Chassis manufacturers have focused on hauler-type chassis like flatbeds, grain and car haulers and buses. Many of the City’s MD/HD trucks require power take-off (PTO) to enable dump bodies, hydro- excavator, sewer vacuum trucks, grapple buckets and cranes. None of the traditional major manufacturers are producing a chassis that supports this type of service-body in full EV models. It is vital that the City acquire trucks and chassis that are ZNE/EV from reputable manufacturers that will support service needs and parts over the full 15-year life-cycle of

the vehicle. Staff recommends procurement solely from reputable manufacturers that have a long history of quality chassis production and service/parts support.

Fuel/Maintenance Cost Savings – A significant benefit of transitioning to electric vehicles is the reduced fuel and maintenance costs. Maintenance costs for EVs are estimated to be 50% of the equivalent ICE vehicle maintenance cost. While Low Carbon Fuel Standard (LCFS) credits can reduce charging costs, the costs to fuel an electrified fleet would still be lower than a conventionally powered fleet, even without LCFS credits. Over the next 10 years, if the recommended EVs are purchased and charging equipment installed, total savings on maintenance and fuel are expected to be approximately $3M.

Charging Equipment for City Employees – While transitioning the City’s fleet to zero emission or electric vehicles is required by state regulations, Council has also expressed interest in providing EV charging for employees. Such an amenity may help to attract and retain employees and may also help to incentivize employees to purchase EVs. Staff recommended to the CSC the installation of 145 dual-port Level 2 chargers, which would provide 290 parking spaces for charging vehicles. However, given the current lack of funding and that most EVs have sufficient range to handle a daily round-trip commute, staff recommends that the City prioritize charging infrastructure for fleet vehicles and consider the possibility of chargers for employee vehicles after necessary fleet charging is installed.

If or when the City installs EV charging for employees, staff would recommend the chargers as identified in Table 3.

Table 3. Proposed EV Chargers for Employees

Location # of
Employees
# of
Employees
on Largest
Shift
Existing
# of
Level 2
Chargers
Recommended
# of Level 2
Chargers
Airport 11 11 2 3
Animal Shelter 19 16 5
City Hall Parking Structure* 293 271 68
Corp Yard 69 69 1 17
Fire Station 1 21 7 5
Fire Station 2 15 5 4
Fire Station 3 9 3 2
Fire Station 4 9 3 2
Fire Station 5 9 3 2
Fire Station 6 9 3 4 2
Fire Station 7 21 7 5
Fire Station 8 9 3 2
Fire Station 9 9 3 2
Landscape & Facilities 27 27 1 7
Police Department – Main** 259 77 0
Police Department - North 10 10 3
Utilities Center 29 29 7

Water Pollution Control
Facility 26 20 2 7
Weekes Library 6 6 2
Totals 860 496 10 145
* Employee count for City Hall parking structure includes City Hall and main Library staff. ** Given the uncertainty of the long term use of the Police Department building, staff proposes a small number of chargers to be shared among fleet and employee vehicles.

While the costs for chargers for employees can be considered separately from the chargers for fleet vehicles, they need to be considered collectively prior to preparing detailed construction plans. When possible, the electrical infrastructure at each site will be sized to handle all the chargers at a given location. The cost to install the chargers for employees is estimated to be approximately $3.5 million and the cost to operate the chargers is estimated to be approximately $78,000 per year.

Staff recommends that employees pay some amount to help offset electricity costs.

Determining the actual cost of electricity may require additional metering infrastructure, so staff recommends developing a nominal time-based fee for employees. In a survey of other public agencies, staff found that most require their employees to pay for charging, however most do not have rates that cover the full cost. For agencies that do provide free charging, they only have a small number of chargers.

EV Charger Installations at Corp Yard – With the construction of the solar carport, battery and associated equipment scheduled to begin this fall, staff recommends coordinating the installation of EV chargers. At a minimum, staff would like to install the underground electrical conduit for the EV chargers at the same time other conduit is installed for the solar carport and battery. This approach would save money and avoid the need to repair asphalt or repave the yard multiple times. Staff will work with an engineering contractor to prepare the necessary plans.

FISCAL IMPACT

The recommended FY26 Capital Improvement Program includes $50,000 in FY25 and $200,000 in FY26, for a total of $250,000 for Citywide EV Charging Upgrades (Project 06923). Upon the completion of a detailed engineering design, staff will return to Council with a cost estimate for EV charger installations for the Corp Yard.

As noted above, over the next ten years, transitioning the City’s fleet to electric vehicles is estimated to increase overall fleet costs by approximately $22.5M. This cost includes vehicles, charging infrastructure and operations. While fuel and maintenance costs are expected to decrease by approximately $3M, registration and insurance costs will increase so that overall operating costs will increase approximately $500K when compared to the Baseline scenario over the next 10 years. It is important to note that these costs are only for the first 10 years of the planned transition to electric vehicles. Fleet vehicles are replaced every 15 years, so the complete transition will take at least 15 years. The operating budget currently includes approximately $2.2M per year for non-emergency vehicle replacements.

The transition to only purchasing electric vehicles will require approximately $4M per year.

In addition to the cost to install fleet EV charging infrastructure, providing charging equipment for City employees would cost approximately $3.5M. The annual cost to operate the employee chargers would be approximately $78,000 and may be offset by rates paid by employees.

Light-duty EVs may be eligible for a Qualified Plug-in Electric Drive Motor Vehicle Credit of up to $7,500. The credit, available under Section 30D of the Internal Revenue Code, was modified with the passage of the Inflation Reduction Act. Guidance from the IRS indicates that the City should be able to benefit from the tax credit even though it doesn’t have federal tax liability. Staff will monitor actions of the federal government to see if this credit remains available. Finally, staff had expected that the Federal Infrastructure Bill could support development of the City’s EV charging infrastructure, however, new federal grants are not likely under the current administration.

ECONOMIC IMPACT

Electrification of the City’s fleet and providing EV charging for City employees are not expected to significantly impact the Hayward economy.

STRATEGIC ROADMAP

This agenda item relates to the Strategic Priority of Champion Climate Resilience and Environmental Justice. This item specifically relates to the following Projects:

Reduce Greenhouse Gases and Dependency on Fossil Fuels
Project CP1: Implement Year 1 Programs from the adopted GHG Roadmap (Climate Action Plan)
Project CP3: Present a plan on EV charging for city facilities to CIC (for fleet and employee commuters)
This agenda item also relates to the following actions in Hayward’s Climate Action Plan:

T 7.1 Establish and adopt Zero-emission Fleet Conversion and Purchase Policy that requires new, and replacement municipal fleet vehicle purchases are EVs or ZEVs. The policy will also include a schedule for replacement of fleet vehicles to meet a 100% carbon neutral fleet by 2040.

T 7.2 Conduct feasibility and cost assessment to determine the number of EV/ZEV chargers and funds needed to support the fleet transition to 50% EV/ZEV by 2030. Expand EV/ZEV charging infrastructure for city fleet and employees in alignment with feasibility study.

SUSTAINABILITY FEATURES

Electrification of the City’s fleet and vehicles throughout the community is necessary to meet the City’s long-term greenhouse gas (GHG) emissions reduction goals. According to the fleet electrification assessment, it is estimated that the City can reduce its GHG

emissions by approximately 45% (from 16,040 to 8,857 metric tons of carbon dioxide equivalent ) over the next 10 years by converting the City’s fleet to all electric vehicles.

PUBLIC CONTACT

No public contact was made for this agenda item.

NEXT STEPS

Staff will continue to seek external funding for EV charging and will purchase electric or zero emission vehicles when possible. In the near term, staff will proceed with installation of EV chargers at the City’s Corporation Yard.

Prepared by: Erik Pearson, Environmental Services Manager Justin Temores, Fleet Maintenance Manager
Allen Koscinski, Facilities and Building Maintenance Manager Rodney Affonso, JR., Deputy Director of Maintenance Services

Recommended by: Alex Ameri, Director of Public Works
Todd Rullman, Director of Maintenance Services

Approved by:

__________________________________________
Michael S. Lawson, J.D.

Acting City Manager

City of Hayward Fleet Assessment – December 2023 Click here for webpage and data visualizations 1

City of Hayward Fleet Electrification Assessment
Fleet electrification offers local governments economic benefits that include lower lifecycle costs and reduced risk of fuel price volatility when compared to internal combustion engine (ICE) vehicles. Deployment of electric vehicles (EV) in municipal fleets also benefits the local population through the use of clean electricity as fuel, which helps reduce criteria air pollutants and greenhouse gas (GHG) emissions.

To assist local government partners in overcoming barriers to municipal fleet electrification, Ava Community Energy (Ava) commissioned a consultant team to develop a plan on behalf of the City of Hayward (City) that evaluates the short- and long-term cost savings associated with the transition to EVs, determines impacts and benefits to the City, and outlines steps to efficiently and cost-effectively integrate EVs and charging infrastructure at municipal facilities.

The purpose of this assessment was to evaluate the current municipal fleet composition and make recommendations for transitioning from ICE vehicles to EVs by 2033 to the extent feasible. Commitment to fleet electrification will help move the city closer to achieving its climate mitigation goals while leading by example in the community. Click here for more information on EV technology and currently available models.

This assessment was created using data provided by the City and supplemental information gathered during subsequent meetings and interviews. The objective of this analysis is to evaluate the current municipal fleet composition and make recommendations about transitioning from light-duty ICE vehicles to EVs by 2033 to the extent feasible. This analysis should align closely with the City’s climate commitments and goals. Click here to view the Hayward Climate Action Plan. Our recommendations address 2024-2026 procurement cycles in detail and 2027-2033 procurement cycles more generally to ensure fiscally responsible procurement and deployment of EVs as well as proposed charging infrastructure.

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City of Hayward Fleet Assessment – December 2023 Click here for webpage and data visualizations 2

Analysis Overview

The team analyzed the impacts of electrifying the City’s fleet of 240 light-, medium- and heavy- duty vehicles domiciled in various locations and adding chargers for employee’s use. The team recommends the deployment of Level 2 (L2) electric vehicle supply equipment (EVSE), Direct Current slow (DC slow) chargers, and Direct Current Fast Chargers (DCFC). Two transition scenarios are presented along with the baseline scenario:
• Baseline Scenario: Business as usual case where the city would continue using ICE vehicles.
• Dedicated Transition Scenario: The City would purchase EVs and install EVSE (L2, DC slow and DCFCs) so that each EV has its own charging plug and parking space (except for employee chargers).

Our analysis shows that transition of the City’s municipal fleet to electric vehicles would cost the city about $25M and increase operating expenses by $1.3M when compared to the Baseline scenario over a ten-year period. This transition should also reduce GHG emissions by 7,183 MTCO2e over the same period. The cost reductions in the transition scenarios are driven by vehicle incentives, Low Carbon Fuel Standard (LCFS) credits, fuel cost savings and lower maintenance costs.

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City of Hayward Fleet Assessment – December 2023 Click here for webpage and data visualizations 3

Charging Infrastructure Recommendations
In the Dedicated Transition scenario, we are recommending the City install six dual-port 150 kW DCFC in addition to the 109 dual-port L2s, and 37 DC slow chargers. This will provide 255 dedicated slots for charging vehicles using shared L2s and DC (slow) chargers.

For employee charging, we are recommending the City install 145 dual-port L2s. This will provide 290 shared slots for charging vehicles using shared L2s.

Two vehicles may be charged simultaneously at the DCFCs. We are assuming “take home” vehicles would be charged at home or at an available charger during operating hours.

The Transition of the City’s fleet to EVs will cost the City about $5.3M which will provide 94% more charging capacity than is needed to power the EV fleet. The EVSE Utilization rate is estimated by dividing the total daily kWh demand of the fleet by the total time available for charging at the peak charging rate. EVSE will only charge at peak rates when the vehicle’s onboard charger will allow it and when the battery is fully discharged, so this metric should be viewed as a rough estimate of unused charging capacity. The visualization below includes maps of proposed EVSE installations along with their associated capital and operating costs.

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City of Hayward Fleet Assessment – December 2023 Click here for webpage and data visualizations 4

Charging Employees for EVSE usage
The table below is a sampling of how other state agencies in California are managing their employee’s usage of agency owned EVSE.

Alameda County makes paid public charging a priority on their website, but it does not list free employee charging as an employee incentive like it does with free carpool parking and free shuttle service.

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City of Hayward Fleet Assessment – December 2023 Click here for webpage and data visualizations 5

Detailed EVSE Assumptions

OVERVIEW
The estimated planning level project (capital) costs to install chargers at the City’s fleet facilities include many items in addition to the EV chargers themselves which represent a small fraction of the total project costs for most charger installations. The full project costs include hard costs such as the purchase and installation of EVSE, associated materials, and ancillary equipment along with site restoration as well as soft costs such as project design and permitting, utility fees and contingencies.

The entire motorized fleet, including medium- and heavy-duty (M/HD) vehicles were included in this analysis. The light-duty (LD) vehicles were evaluated in the previous study conducted in 2022.

The charger recommendations for each domicile location are detailed in the section below. The summaries for each location will also document what has changed in the recommendations from the previous LD study, and what additional constraints and considerations could be required for the M/HD charging infrastructure.

All recommended Level 2 (L2) and DC Fast chargers (DCFC) would be dual-port unless otherwise specified; low output L2 chargers rated at 6.6 kW; medium output L2 chargers rated at 12 kW; single-port low output DC slow chargers rated at 12.8 kW; high output DCFC rated at 150 kW.

Site visits were conducted in 2022 for the LD analysis. The recommendations and assumptions are based on those findings, as-built drawings, and discussions with city staff.

FLEET CHARGING RECOMMENDATIONS SUMMARY
Fleet vehicle assignments, existing and proposed EV chargers, and information on electrical service are summarized below for each fleet domicile location. Fleet charger analysis for the five fire stations in this summary does not account for fire engines. Police pursuit vehicles have

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also been excluded from this analysis. The Corp Yard, Facilities Maintenance, Animal Control, Landscape Maintenance, and Utilities Center are all adjacent to each other and form a campus- like location. For the purpose of this analysis as well as for operational convenience by each City department, these sites have been divided into individual facilities to clearly represent how many chargers and associated infrastructure are required for the vehicles assigned to each of the five sub-locations.

Airport at 20301 Skywest Drive: A total of five fleet vehicles are domiciled at this location, four of which are light duty and one of which is medium duty. Fleet vehicles park on the north end of the property in a gated area. There is one existing dual-port L2 which is for public charging and will not be considered for fleet charging. The Dedicated scenario would require three low output L2s. The main electrical room is located on the southwest end of the building. Field verification was not done at the airport, but based on discussions with city staff, the existing electrical service does not have available capacity for the proposed chargers for either scenario.

Therefore, an electrical upgrade is recommended including a new step down transformer to accommodate the proposed electrical demand. Installation would require surface mounted and/or trenched conduit from the main electrical room to wall-mounted or pedestal-mounted chargers adjacent to the fleet parking stalls.

Animal Control at 16 Barnes Court: A total of four light-duty fleet vehicles are domiciled at this location, one is light duty and three are medium duty. The Dedicated scenario requires one low and two medium output L2 chargers. The fleet vehicles park adjacent to the southeast end of the property. The main electrical room with an 800A switchboard is on the southeast end of the property as well. Based on review of as-built drawings and field verification, panel “LP” in the main electrical room has spare capacity for the proposed chargers. Additional electricity upgrades are not required. The chargers could be installed along the wall to the east of the electrical room. Installation would involve surfaced mounted conduit feeding power from the main electrical room to the exterior of the building. Additional surface mounted conduit could feed power to wall-mounted chargers adjacent to the fleet parking stalls.

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City of Hayward Fleet Assessment – December 2023 Click here for webpage and data visualizations 7

City Hall Parking Garage at 871 B Street: A total of 45 LD vehicles are domiciled at this location.

There are 10 existing L2s on the ground floor of the garage which are currently used for public charging and are not considered for fleet charging. Fleet vehicles park on the third floor, which is restricted by a gate for employee and fleet access only. The Dedicated scenario would require 22 low output L2s, one medium output L2, and two supplemental DCFC.

The main electrical room is located on the northwest end of the building, with equipment in an enclosed room and on the exterior of the building. As-built drawings were not provided for this location but based on the proposed electrical demand and field verification, an electrical service upgrade would be required to meet the projected electrical load from fleet EV charging.

Further coordination with PG&E would be required to confirm the existing capacity and determine the size of the service upgrade. Installation would include a new service panel with surface mounted conduit feeding power from the first-floor electrical room vertically to the third-floor fleet parking stalls. Surface mounted conduit would carry power to wall-mounted chargers adjacent to the fleet parking stalls.

Corp Yard at 24505 Soto Road: There are 104 fleet vehicles domiciled at this location consisting of 21 LD and 83 M/HD vehicles. The Dedicated scenario would require 11 low output L2s, 26 medium output L2s, 31 single-port low output DC chargers, and two high output DCFCs.

Fleet vehicles park to the east and south of the main building in marked outdoor stalls. Based on review of as-built drawings, field verification, and discussion with City staff, electrical upgrades are recommended to meet the additional proposed electrical demand. A new pad- mounted utility transformer could be installed south of the main Corp Yard building to feed a new switchboard and service panels. Conduit would need to be trenched from the new panels to pedestal-mounted chargers installed in the paved fleet parking areas.

Facilities Maintenance at 16 Barnes Court: Five LD vehicles are domiciled at this location. The Facilities Maintenance fleet shares the same warehouse building as Animal Control and Landscape Maintenance, with the facilities vehicles parking near the northwest end of the warehouse.

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There is one existing L2 mounted on the exterior of the east side of the building, which is used for employee charging and will not be considered for fleet charging. The Dedicated scenario would require three low output L2s.

The nearest electrical room is southeast of the fleet parking, and the newest panel “HDP1” is located on the west end property mounted on the wall, in the same warehouse room as the fleet vehicles. No as-builts were provided for this location but based on field verification, panels “HDP1” and “LDC” have spare circuit breakers that could accommodate the electrical demand.

Note that the proposed chargers for the Landscape Maintenance fleet could also be fed from the same power source, and the existing electrical capacity should be enough to meet electrical demands for both domiciles. Installation would include surface mounted conduit from the existing panel carrying power to wall-mounted chargers near the fleet vehicles.

Fire Station 1 at 22690 Main Street: One LD vehicle and four M/HD vehicles are domiciled at this facility. There is one existing wall-mounted L2 on the northeast exterior of the main building. The following charger recommendations are in addition to the one existing charger.

The Dedicated scenario requires one low output L2, and two medium output L2s.

The vehicles park in a gated parking area on the northeast end of the property. The main electrical room is at the south end of the property with an 800A main switchboard. Based on review of as-built drawings and field visits, existing electrical capacity is sufficient to meet charging demand. Panels “A”, “EA”, “EC”, and “ED” have spare breakers and available capacity to service the fleet chargers. Surface mounted conduit could be installed from the main electrical room to the exterior of the building on the eastside. Conduit would then need to be trenched to feed the pedestal mounted chargers in the landscaped area adjacent to the parking stalls.

Fire Station 2 at 360 West Harder Road: Three medium-duty fleet vehicles are domiciled at this location. The vehicles park in a gated area on the south end of the property in unmarked parking areas. The Dedicated scenario requires two medium output L2s. The main 400A switchboard is located outside in this area, adjacent to the east side of the main building, with

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spare 25A and 100A breakers. As-built drawings were not provided for this location, but based on field review, a new service panel for the fleet chargers is recommended to be installed on the east or south walls of the building. Installation would involve surface-mounted or trenched conduit from the service panel (dependent on its location) carrying the power to pedestal mounted chargers installed in pavement adjacent to fleet vehicles.

Fire Station 6 at 1535 West Winton Avenue: Only one heavy-duty vehicle is domiciled at this location, so only one low output DC charger is needed. A field visit was not conducted at this site as it was still under construction during the time of this analysis. Based on reviews of as- built drawings provided, existing electrical capacity is available for fleet charging needs. Panels “LP-B1A”, “LP-B1B” and “LPH-B1A” could be used to feed the proposed charger. Installation would involve surface mounted conduit carrying power to the exterior of the property, with conduit trenched in pavement carrying power to a pedestal mounted charger adjacent to the fleet parking.

Fire Station 7 at 28595 Hayward Boulevard: Two medium-duty vehicles are domiciled at this location, so just one medium output L2 is needed. Fleet vehicles park on the east side of the property in a gated area.

There is a 600A switchboard outside on the northeast end of the site. An additional 600A distribution switchboard is located in the electrical room on the north end of the main building.

As-built drawings were not provided for this location, but based on field review, existing electrical capacity is likely sufficient for the proposed charger. Panel “LC”, mounted in the interior of the main building, has spare circuit breakers potentially available for charging, but further analysis is recommended to confirm electrical capacity. Additionally, the distribution switchboard in the main electrical room has a spare 225A circuit breaker that could be used for a new service panel for fleet charging. Surface mounted conduit could be installed from the existing panel to the exterior of the building, and conduit would be trenched in the pavement to feed pedestal mounted chargers installed by the parking stalls.

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Fire Station 9 at 24912 Second Street: Only one medium-duty fleet vehicle is domiciled at this location, which is parked in a gated area on the north end of the property. Only one medium output L2 is needed. A 400A main switchboard is in a covered outdoor area on the northwest corner of the property, adjacent to the living quarters. No as-built drawings were provided for this location, but based on field review, existing electrical capacity is sufficient for the proposed electrical demand. Panels “REA” and “A” have spare breakers which could be used to feed the proposed L2. Installation would require surface mounted conduit and trenched-in-pavement conduit carrying power from the existing panel to the pedestal-mounted charger installed near the east fence, south of the Fire Station building.

Landscape Maintenance at 16 Barnes Court: Two LD vehicles are domiciled at this location.

Fleet vehicles park in the northwest corner of the property adjacent to the Facilities Maintenance fleet. The Dedicated scenario requires just one low output L2. As previously noted in the Facilities Maintenance section, the same panels “HDP1” and “LDC” could be used to power the chargers for the Landscape Maintenance fleet. Construction would involve surface mounted conduit from the existing panel carrying power to wall-mounted chargers near the fleet vehicles.

Library at 27300 Patrick Avenue: Only one medium-duty fleet vehicle is domiciled at this location, parked in a public parking lot north of the library building. The Dedicated scenario would require one low output L2. The main electrical room with 600A main switchboard is located on the southwest corner of the building. No as-built drawings were provided for this site, however it was confirmed during the site visit that the existing electrical capacity should be sufficient for electrical demand from fleet EV charging. Panels “B” and “C” have spare breakers which could be used for the L2 charger. Surface mounted conduit could be installed from the existing panel to the north end of the building, and conduit can be trenched through the landscaping to a pedestal mounted charger adjacent to a parking stall.

Hayward Police Department at 300 West Winton Avenue: A total of 35 fleet vehicles are domiciled at this location, with 28 LD vehicles and seven M/HD vehicles. Fleet vehicles are

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parked in a gated area south of the main building in marked parking stalls. The Dedicated scenario requires 14 low output L2s, three medium output L2s, one low output DC charger, and two supplemental high output DCFCs.

The main electrical room with a 2500A switchboard is at the south end of the main building, adjacent to the fleet parking area. Based on the site visit, most electrical panels seem to be at capacity and additional electrical upgrades are recommended to meet the proposed electrical demand. A new step down transformer and sub-panel could be installed in the electrical room.

Surface mounted conduit would be installed to bring power to the exterior of the building, and trench-in-pavement conduit could be installed to power pedestal mounted chargers installed on raised curb or asphalt adjacent to the parking stalls.

Hayward Police Department Northern District at 22701 Main Street: A total of eight LD police fleet vehicles are domiciled at this location which has 4 existing L1s. These fleet vehicles park in an outdoor lot south of the main building that is also used by employees for parking. The following charger recommendations are in addition to the existing L1s. The Dedicated scenario requires four low output L2s. No as-built drawings were provided for this location, but based on field review, electrical upgrades are recommended. An exterior 200A main switchboard supplies the building, and existing panels inside the main building do not have spare capacity. A new step down transformer and service panel could be installed at the southeast side of the building. Surface mounted conduit could be installed to feed the wall-mounted chargers on the east exterior side of the building. Additional chargers could be installed in the landscape areas to the south, adjacent to the parking stalls, which would require trenched conduit.

Utilities Center at 24499 Soto Road: Nine LD vehicles are domiciled at this location. These park in an outdoor gated parking lot to the south of the building, and the lot is also used for employee parking. There are two existing L2s adjacent to the parking area. The Dedicated scenario requires five low output L2s.

The electrical room with 800A main switchboard is in the northeast end of the main building.

No as-built drawings were provided for this location, but based on the site visit, there is existing

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electrical capacity for the proposed charging demand. Panels “EP” and “LP1” have spare circuit breakers which should be sufficient for the proposed EV chargers. Construction would require surface mounted conduit carrying power from the main electrical room out to the exterior of the building. Conduit trenched in pavement will carry power to pedestal-mounted chargers adjacent to the parking stalls, installed in landscape or in pavement.

Water Pollution Control Facility at 3700 Enterprise Avenue: A total of 12 vehicles are domiciled at this location, with five LD vehicles and seven M/HD vehicles. There are two existing dual-port L2s which are for employee charging and will not be considered for fleet charging. Fleet vehicles are parked throughout the property and are not assigned to specific parking stalls. City staff at this facility indicated that they are flexible with the charging locations for the electrified fleet. The Dedicated scenario requires three low output L2s, two medium output L2s, and four low output DC chargers.

The main electrical building is on the northeast corner of the property. No as-builts were provided for this location, but from the field visit and discussions with city staff, the existing electrical capacity should be sufficient to meet the proposed charging demand. Additionally, there is a new administration building being designed for this domicile that will modify the current parking area on the east end of the property. New service panels will be installed for this administration building that can be an option for use for the fleet chargers. New junction boxes and conduit pathways will also be installed from the 12kV substation, which could be utilized for the proposed EVSE. Further coordination is needed as the plans for the administration building are developed. Construction would require surface mounted conduit carrying power from service panels or the electrical room to the exterior of the building.

Conduit trenched in pavement would feed pedestal mounted chargers installed on raised curbs adjacent to parking stalls. Coordination is needed to confirm fleet parking locations.

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PLANNING LEVEL COST ESTIMATES
Each of these categories of project capital costs are explained and listed below.

The following tables summarize the six cost categories that are considered in the cost estimates, including needed EVSE quantities by charger type and their purchase costs, material costs, civil/site restoration, contracting/design, permitting, and utility upgrade costs.

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City of Hayward Fleet Assessment – December 2023 Click here for webpage and data visualizations 14

Dedicated Transition Scenario

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HARD COSTS:

1. EV Chargers
This includes:
• Level 1 EV chargers (120V receptacles)
• Level 2 EV chargers (ChargePoint CT4000 or equivalent) • Power cords and cable management for Level 1 or 2 chargers • DC Fast Chargers (150 kW Blink/BTC/ABB or equivalent) • Gateway Module/ Load Management Devices
Note: this excludes costs for warranties because the standard warranty that vendor offers is part of the cost estimate tool.

2. Materials/Equipment
This includes costs of purchasing and installing materials typically required for fleet EV charging projects (other than the EV chargers themselves) including the following items:
• Wiring (Note 50 feet of conduit, wiring assumed per Level 1 and 100 feet per Level 2 and DC Fast charger)
• Conduit Systems (underground and/or surface-mounted)
• Trenching and/or directional drilling
• Pull Boxes (installed in the ground and/or surface mounted) • Aerial wire spans
• Footings for installation of EV charger pedestals and electrical service panels • Bollards
• Wheel stops
• Step Down transformers
• Electrical service panels including sub panels
• Circuit breakers

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• Signage
• Striping for parking stalls

3. Site restoration
Site restoration covers the costs to install Civil/Landscaping improvements to restore the site following excavation and other construction activities including:
• Minor restoration for civil infrastructure such as roadway and/or sidewalk repaving • Minor curb and gutter restoration
• Minor surface water (drainage infrastructure) restoration • Minor landscaping restoration such as replanting
SOFT COSTS:

4. Contracting/Design
An estimated 20% mark-up has been applied to the total project costs to include:
• Engineering design fees
• Contractor profits

5. Permitting
Each local authority with jurisdiction mandates electrical permits for installation of EV chargers:
• Electrical permit fees charged by local jurisdictions, typically $5k per site plus $1k for labor and contingency.

6. Utility fees
This consists of fees charged by the electrical utility (Ava) to bring additional power to the fleet charging depot to power the EV chargers, including:

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• Electrical upgrade design
• Transformer replacement/new utility transformer

7. Contingencies
A 20% mark-up has been applied to the project costs for each cost category (categories #1, #2, #3, #5, and #6 including contracting/design) consistent with public agency capital project budgeting.

SUMMARY
The Dedicated Transition scenario offers a more convenient solution and reduces the risk of EVs becoming discharged, and can possibly eliminate the need for active fleet charging management that would be necessary to ensure all vehicles remain adequately charged during operating hours.

The EVSE costs per EV at the Airport, Library, and Fire Stations #6 and #9 are high. These costs could be eliminated if EVs domiciled there charge at another facility.

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City of Hayward Fleet Assessment – December 2023 Click here for webpage and data visualizations 18

Electric Vehicle Transition Planner
Recognizing that there are many ways to achieve full fleet electrification, a Transition Planner (see visualization below) will allow the City to consider many different approaches to achieving this goal. For example, the City may prioritize the replacement of the oldest vehicles first, or it may decide to replace vehicles by facility, based on availability of EVSE. Use the Transition Planner visualization below to explore ways to adjust costs and timelines to fit anticipated budgets. The average replacement year can be used to track the average time vehicles remain in service beyond their planned useful life.

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City of Hayward Fleet Assessment – December 2023 Click here for webpage and data visualizations 19

Electric Vehicle Procurements
Many light-duty EVs in the market today could meet the City’s needs and are reasonably priced.

However, it might take five or more years for Class 3 – 8 EVs to reach sticker price and range parity with their conventionally-fueled equivalents.

The City might also consider replacing some of its medium duty vehicles with light-duty vehicles (e.g., Ford F-250 replaced with a Ford F-150) where increased towing and hauling capacity is not needed. The Ford F-150 Lightning loses around 50% of its range when towing equipment, but this might still be acceptable performance for some of the City’s duty cycles.

For M/HD vehicles that haul or tow short distances, there are a number of EV options available now. Some vehicle types are better suited to electrification than others. For example, bucket trucks, yard tractors, buses and panel vans typically have duty cycles where an EV alternative is suitable. Other vehicle types are much more difficult to electrify, such as dump trucks, vacuum trucks and rodders, which require significant amounts of energy to operate. Battery electric refuse trucks and sweepers are available now, though their range and performance is still rather limited.

Ancillary LED lighting and cabin air conditioning/heating do not require much energy, particularly if high efficiency heat pumps are used. However, cabin heating using resistance heating does draw significant amounts of power. One advantage of EVs is that they can provide power to equipment, lifts and lights without needing an engine to be idling.

Electric vehicles typically recharge where they park. For light-duty EVs, L2 charging adds 10-20 miles of range per hour and can recharge a battery in 6-12 hours. Larger vehicles have bigger batteries and need either more time to charge (8-to-12 hours) or to be charged at a DCFC.

No EV replacements have been included in the 10-year analysis period. Frontier expects the City will instead prioritize replacement of ICE vehicles before replacing EVs in order to more effectively meet it’s climate action and sustainability goals. No vehicle battery replacements are

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anticipated, since any loss in a vehicle’s battery capacity is not likely to affect its usability given the relatively short distances most vehicles travel each day.

The visualization below provides more details on the electric vehicle capital costs considered in this assessment. Adjust the slider lever to show the marginal increase in cost each year for EV acquisitions for either Transition scenario, as compared to the Baseline scenario. The timeframe scale can be adjusted to view a single year or up to the full ten (10) years covered in this analysis. The net increase in cost for the timeframe being considered is shown in the box labeled “Transition minus Baseline.”

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City of Hayward Fleet Assessment – December 2023 Click here for webpage and data visualizations 21

ACF Compliance Tool
Inflation Reduction Act
The Advanced Clean Fleet (ACF) Compliance tool can be used to help plan medium- and heavy- duty vehicle purchases to ensure compliance with the ACF CARB rule and to ensure enough chargers are installed and operational before the delivery of EVs. The Pass/Fail table automatically updates to indicate whether or not the replacement vehicles above comply with either the Procurement Pathway or the Milestone Pathway.

How to use this tool:

1. Click on the green or red bars to select a replacement vehicle from the dropdown list.

2. Move the green or red bars left or right to line up with the desired replacement year.

3. To add/remove a vehicle from the table calculations, check/uncheck the box on the far left.

4. To expand/contract the existing vehicle table, click on the |-> symbol at the top.

5. To filter the dropdown list by vehicle class, select the toggle at the top “Filter by Class”.

6. To search on any field, use the search bar at the top next to the icon.

7. To open the tool in a new tab, click on the new tab icon in the upper right corner.

8. To save a configuration, click on the icon in the upper right to “Export Current Configuration”. This action will download an excel spreadsheet to your computer. Send this file to [email protected] so it can be uploaded into this webpage. Once this is completed, your new configuration will be saved as the new starting state (but not until then).

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Inflation Reduction Act
Light-duty EVs may be eligible for a Qualified Plug-in Electric Drive Motor Vehicle Credit of up to $7,500. The credit, available under Section 30D of the Internal Revenue Code, was modified with the passage of the Inflation Reduction Act. Guidance from the IRS indicates that the City should be able to benefit from the tax credit even though it doesn’t have federal tax liability.

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Fuel/Maintenance Cost Savings
A significant benefit of transitioning to electric vehicles is the reduced fuel and maintenance costs. In the visualization below, the green bars represent the total fuel costs of the transition fleet (gasoline, diesel & electricity), which is significantly less than the fuel costs in the Baseline scenario (gasoline & diesel), as indicated by the black bars.

Maintenance costs for EVs were estimated to be 50% of the equivalent ICE vehicle cost by Consumer Reports.

The costs to fuel an electrified fleet would still be lower than a conventionally powered fleet, even without LCFS credits. Fuel cost savings are based on the transition of the City’s existing conventional fleet to electric vehicles.

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Greenhouse Gas Emission Reductions
Over this study’s 10-year evaluation period, we estimate that the City can reduce its GHG emissions by 7,183 metric tons of carbon dioxide equivalents (MT CO2e) by converting the City’s fleet to all electric vehicles. The visualization below shows GHG emission reductions on an annual basis, as the current fleet is replaced with EVs following the City’s normal replacement schedule. Any delays in EV acquisitions will slow the progress of GHG reductions during this period. The time frame can be adjusted using the slider lever to set the view to anywhere between one and ten years and/or to individual facilities to see the GHG emissions at that level.

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GHG Analysis Approach
Full Fuel Cycle Approach
• GHG emissions are calculated using “carbon intensity” (CI) values for fuels as defined in the LCFS program.
• The CI represents all GHG emissions associated with the production, transport, distribution, and end use of the fuel.

Emissions (MT) = Fuel Volume x CI x Energy Density / 1,000,000

Carbon Intensity Assumptions
• Gasoline – 99.44 gCO2e/MJ (per CARB LCFS)
• Electricity – 0.00 gCO2e/MJ (assumed for Ava’s Renewable 100 mix of renewable electricity generation)

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Energy Densities
• Gasoline – 115.83 MJ per gallon
• Electricity – 3.6 MJ per kWh
Greenhouse Gas Emissions Projections
• GHG emissions and energy consumption metrics for light duty fleets are calculated based on projected fuel/electricity use under the Baseline and Transition scenarios.

Values are shown for the cumulative analysis period as well as each calendar year.

Activity and emissions are calculated on a vehicle-by-vehicle basis for each calendar year.

GHG Emissions Factors
• GHG emissions reflect well-to-wheels emissions using the LCFS program methodology.

Gasoline, diesel, and CNG values use current LCFS program “lookup table” values for these fuels. Their values are not assumed to decline over the analysis period. • Electricity supplied by PV systems or under Ava Community Energy’s Renewable 100 zero carbon electricity program is assumed to have a zero carbon intensity.

Relation to GHG Protocol Framework
• GHG Protocol refers to Scopes 1 & 2 emissions (see figure above). Scope 1 covers direct equipment and facility emissions and is essentially equivalent to “Tank-to-Wheels” emissions. EVs have no Scope 1 emissions, while all combustion vehicles have Scope 1 emissions.
• Emissions from production of electricity used to charge EVs falls into Scope 2. For electricity produced by wind and solar generation, Scope 2 emissions are zero. • GHG Protocol does not clearly address GHG emissions associated with fuel feedstock production, refining, etc and is not included in our analysis.

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City of Hayward Fleet Assessment – December 2023 Click here for webpage and data visualizations 27

Conclusion
The transition of the City’s motor vehicle fleet will require the purchase of EVs to replace conventional ICE vehicles and the installation of EVSE and related infrastructure to support the transition. L2 and DC charging infrastructure installations are recommended at various locations to offer dedicated charging spaces for EVs. The transition of the City’s fleet to EVs is expected to cost the City approximately $25M as compared to the Baseline scenario, and also cost the City $1.3M in additional operational expenses over the next 10 years. The City’s EV fleet transition is estimated to provide GHG emission reductions of 7,183 MTCO2e over a ten-year period.

For more information about this report, please contact:

Thomas Paddon, Frontier Energy – [email protected]

Zac Thompson, Ava Community Energy –– [email protected]

In Partnership with

ATTACHMENT II