The above listed bike facilities in FY26 PIP are not comprehensive or final; there is opportunity to adjust the striping plans based on the further evaluation of feasibility and community input.
The City’s Bicycle and Pedestrian Master Plan (BPMP) is a planning-level document and does not commit the City to a specific design for any individual street. Most corridor recommendations were developed without detailed feasibility analysis or corridor -specific outreach, with the understanding that additional technical study and community engagement would occur in a future project phase. Due to these constraints, not every facility type delivered through PIP matches the recommendation in the BPMP (Attachment V). In addition to PIP, bicycle facilities may also be developed through standalone complete streets projects.
Measure BB Funding
The total FY2 6 PIP budget of $ 12,870,000 is funded through Gas Tax, Road Repair and Accountability Act (RRAA/SB 1), Measure BB (Fund 212 – Local Transportation), Vehicle Registration Fees, and Street System Improvement funds.
City's FY26 Measure BB Direct Local Distribution revenue projection for Local Transportation (Fund 212) is $6,227,4315, of which the FY26 PIP will allocate $4,665,793.
Measure BB Direct Local Distribution for Pedestrian and Bicycle (Fund 213) is a separate funding source focused on pedestrian and bicycle improvements projects such as: New Sidewalks Projects, Orchard Ave Traffic Calming Program, Santa Clara Traffic Calming Implementation Project (FY26 PIP will use this funding source to stripe Santa Clara St), etc.
Based on the low est bidder’s costs, the FY26 PIP will allocate approximately $2, 000,000 toward pedestrian and bicycle improvements. These construction related expenses are mostly from curb ramp upgrades, as well as bike lane striping on A St, Hathaway Ave, Santa Clara St, Tampa Ave, Eden Shores Blvd, and Marina Blvd, crosswalk upgrades, speed humps, as well as associated mobilization and traffic control costs.
This represents approximately 43% of Measure BB funding ($ 4,665,793), exceeding the mandatory 15% minimum requirement. This percentage does not yet include costs associated with Class III bike routes, striping on Main Street, or staff administrative costs, which would further increase the total.
California Environmental Quality Act
This project is categorically exempt from environmental review under Section 15301(c) of the California Environmental Quality Act (CEQA) Guidelines for the operation, repair, maintenance, or minor alteration of existing facilities.
5 FY25-26_Sales_Tax_Projections_.xlsx
140
Community Workforce Agreement
On November 15, 2016, Council passed a resolution authorizing a Community Workforce Agreement (CWA) with the Alameda County Building Trades Council (BTC), which applies to City projects with construction costs of $1,000,000 or more. The agreement requires contractors to use local union hiring halls, encourages contractors to employ Hayward residents or Hayward Unified School District graduates, and requires hired workers to pay union dues and other benefit trust fund contributions, etc. The construction cost estimate for the FY26 PIP is more than $1,000,000, the CWA agreement applies to this project.
ECONOMIC IMPACT
The project will improve pavement conditions and generate economic benefits by:
• Reducing travel time and congestion
• Lowering fuel consumption and vehicle operating costs • Attracting business investment
• Increasing property values and neighborhood desirability • Reducing vehicle traffic through added bike lanes
• Creating local construction jobs under the Community Workforce Agreement
STRATEGIC ROADMAP
This agenda item supports the FY26 Strategic Roadmap of Invest in Infrastructure. Specifically, this item relates to the implementation of the following project(s):
• FM2 - # of miles of bike lanes added Transportation
• FM3 - # of miles of repaving completed Transportation
SUSTAINABILITY FEATURES
The project requires the contractor to recycle all construction and demolition debris generated from the project.
This project is consistent with City’s Complete Streets Policy and improves travel for all users including:
• Improved pavement for motorists
• Additional bike lanes and sharrows for bicyclists
• More visible pavement markings for pedestrians, including near school zones • New or upgraded curb ramps to meet the revised Caltrans standards for pedestrians
141
The project satisfies the following 2040 General Plan policies:
• PFS-7.10 Recycled Products or Processes for Capital Projects • HQL-2.5 Safe Routes to School
• HQL-2.6 Education on Sharing the Road
• M-1.7 Eliminate Gaps (in pedestrian networks)
• M-3.1 Serving All Users
• M-5.1 Pedestrian Needs
• M-5.6 Safe Pedestrian Crossings
• M-6.2 Encourage Bicycle Use
PUBLIC CONTACT
Immediately after the construction contract is awarded, a preliminary notice explaining the project will be posted and distributed to all residents and businesses along the affected streets. After the construction work has been scheduled, signs on barricades will be posted seventy-two hours prior to commencement of work indicating the date and time of work for each street. Residents will be advised to park their vehicles on side streets outside of the work area during the period when the streets are being treated.
NEXT STEPS
July 2026 Start of Construction
November 2026 End of Construction
Prepared by: Yama Farouqi, Senior Civil Engineer
Reviewed by: Dave Hung, Acting Deputy Director of Public Works – Engineering
Recommended by: Alex Ameri, Director of Public Works
Approved by:
______________________________
Jennifer Ott, City Manager
142
ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 26-____
Introduced by Council Member _________
RESOLUTION AWARDING A CONTRACT TO BAY CITIES PAVING & GRADING, INC., FOR THE FY 26 PAVEMENT IMPROVEMENT PROJECT, PROJECT NO. 05347
BE IT RESOLVED by the City Council of the City of Hayward as follows:
WHEREAS, by resolution on February 24, 2026, the City Council approved the plans and specifications for the FY2 6 Pavement Improvement Project, Project No. 05347 and called for bids to be received on March 17, 2026; and
WHEREAS, on March 5, 2026, Addendum No. 1 was provided to revise the plans and specifications; and
WHEREAS, on March 13 , 2026, Addendum No. 2 was provided to revise the plans and specifications; and
WHEREAS, on March 17, 2026 , seven (7) bids were received, ranging from $10,063,947.60 to $13,595,460.70; Bay Cities Paving & Grading Inc. , of Concord, California submitted the low bid in the amount of $10,063,947.60 which is 13. 6% below the engineer’s estimate of $11,650,000; and
WHEREAS, the Administrative Change Order (ACO) or contingency budget of $1,436,052.40 was not disclosed.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that Bay Cities Paving & Grading Inc., is hereby awarded the contract for the FY2 6 Pavement Improvement Project, Project No. 05347, in the amount of $ 10,063,947.60 in accordance with the plans and specifications adopted therefore and on file in the office of the City Clerk of the City of Hayward at and for the price named and stated in the bid of the hereinabove specified bidder, and all other bids are hereby rejected.
BE IT FURTHER RESOLVED that the expenditure of $ 1,436,052.40 for Administrative Change Orders is hereby authorized.
BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to execute the contract with Bay Cities Paving & Grading Inc. , in the name of and for and on behalf of the City of Hayward, in a form to be approved by the City Attorney. 143
IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2026
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
144
1 29 129
1 Albatross Rd Breaker Cir to Breaker Cir 0.2
2 Albion Ct Breaker Cir to Cul-De-Sac 0.1
3 Beachwood Ct Cul De Sac to Marshbrook Dr (End) 0.2
4 Beachwood St Marshbrook Dr to Spindrift Cir 0.2
5 Breaker Cir Marshbrook Dr to Marshbrook Dr 0.8
6 Breaker Ln Marshbrook Dr to Marshbrook Dr 0.3
7 Driftwood St Marshbrook Dr to Spindrift Cir 0.4
8 Dune Cir Sandcreek Dr to Sandcreek Dr 0.4
9 Eden Park Pl Hesperian Blvd to Cul-De-Sac 0.5
10 Marina Dr to Hesperian Blvd 0.7
11 Marina Dr to Begin PCC 0.2
12 Begin PCC to End PCC 0.4
13 End PCC to Eden Shores Dr 0.1
14 Eden Shores Ct Eden Shores Dr to Cul-De-Sac 0.1
15 Eden Shores Dr Eden Shores Blvd to Eden Shores Ct 1.3 16 Isle Ct Shellgate Cir to Cul-De-Sac 0.0
17 Jetty Wy Eden Shores Dr to Eden Shores Dr 0.2
18 Marina Dr Industrial Blvd to Eden Park Pl 1.0
19 Marshbrook Dr Eden Shores Dr to Eden Shores Dr 1.2
20 Plover Ct Marshbrook Dr to Cul-De-Sac 0.1
21 Edenshores Blvd to Tern Pl 0.3
22 Shellgate Cir to Edenshores Blvd 0.2
23 Sea Drift Cir Eden Shores Dr to Eden Shores Dr 0.5
24 Sea Drift Ln Eden Shores Dr to Sandcreek Dr 0.3
25 Sea Haven Ct Eden Shores Dr to Cul-De-Sac 0.1
26 Sea Horse Ct Eden Shores Dr to Cul-De-Sac 0.1
27 Shellgate Cir Shellgate Ct to Sandcreek Dr 0.7
28 Shellgate Ct Shellgate Cir to Cul-De-Sac 0.1
29 Spindrift Cir Marshbrook Dr to Marshbrook Dr 0.7
30 Spindrift Ct Marshbrook Dr to Cul-De-Sac 0.2
31 Sunset Dune Wy Sandcreek Dr to Shellgate Cir 0.2
32 Tern Pl Eden Shores Dr to Sandcreek Dr 0.2
Santa Clara 33 Santa Clara St A St to Winton Av 1.4
34 Foothill Blvd Mission Blvd to Apple Av 8.1
35 Harder Rd Santa Clara St To Mission Blvd 4.8
36 Hesperian Blvd City Limits to City Limits 23.5
37 Huntwood Av Whipple Rd to San Antonio St & Folsom
Ave to Gading Rd 9.2
38 Jackson St Santa Clara St to Mission Blvd 8.4
39 Mission Blvd A St to South City Limits 22.4
40 Santa Clara St Harder Rd To Winton Av 3.9
41 Tennyson Rd Hesperian Blvd To Mission Blvd 9.3
42 Whipple Rd City Limits To City Limits 1.4
43 A St Walnut Ave to I-880 NB Off-Ramp 1.8
44 Hathaway Av West A St to City Limits 0.9
45 Martin Luther King Dr Staley Ave to Burbank St 0.0
46 A St Foothill Blvd to County Limits 1.5
47 Fifth St C St to B St 0.1
48 Grace St Peralta St to Montgomery St 0.1
49 Grove Wy & Locust St Grove Wy and Locust St 0.1
50 Kimball Av Rio Vista St to Foothill Blvd 0.2
51 Main St A St to Warrant St 0.3
52 Oakview Av Rio Vista St to Foothill Blvd 0.2
53 End to End 0.2
54 Hazel Av to Rex Rd 0.1
55 Seventh St B St to End 0.1
56 Sixth St B St to C St 0.2
57 Sylvan Glen Ct Second St to End 0.2
58 Western Blvd Peralta St to City Limits 1.2
59 Western Blvd Smalley Ave to Sunset Blvd 0.0
13 91
Preventive Maintenance
(M
icro-Surfacing)
Preventive Maintenance
(C
rack Seal
and/or
Spot Repair)
Eden Shores Blvd
Sa
ndcreek Dr
City Wide
(Arterials)
Limits Treatment
FY26 PAVEMENT IMPROVEMENT PROJECT
Treated Lane-Miles
Rio Vista St
# Street
Eden Shores
North Hayward
Neighborhood
Santa Clara
Rehabilitation
(M
ill and Overlay)
ATTACHMENT III
145
1 29 129Limits Treatment
FY26 PAVEMENT IMPROVEMENT PROJECT
Treated Lane-Miles
# StreetNeighborhood
60 Austin Av Cypress Av to Huntwood Av 0.4
61 Berry Av Silverthorne Pl to ACFC (COP) 0.1
62 Edith St Sycamore Av to Lilly Av 0.2
63 Groom St Lilly Av to Cul-De-Sac 0.1
64 Lilly Av Groom St to Edith St 0.2
65 Orchard Ave Soto Rd to Joyce St 0.5
66 Pinedale Ct Mission Blvd to End 0.3
67 Sycamore Av Mission Blvd to Edith St 0.1
68 Traynor Ct Cul De Sac to Traynor St 0.1
69 Waterson Ct Traynor St to Cul De Sac 0.1
70 Ainslee Ct Cul De Sac to Whitman St 0.1
71 Colette St Sorenson Rd to South End 0.1
72 Diana Pl Luvena St to End 0.1
73 Ebony Wy Joshua St to Voltaire St 0.3
74 Fruitwood Wy Voltaire St to Whitman St 0.0
75 Jane Av Whitman St to Harder Rd 0.1
76 Laurette Pl Colette St to Cul De Sac 0.1
77 Mahogony St Edwin Wy to Cottage Park Dr 0.1
78 Sorenson Rd Collette St to Luvena Dr 0.1
79 Stanislaus Wy Stanislaus Ct to West End Cul De Sac 0.4 80 Voltaire St Stanislaus Wy to Edwin Wy 0.3
81 Adeline St Eldridge Av To Blaine Wy 0.2
82 Belvedere Ct Shepard Av to CDS 0.2
83 Brian St Bruno St to Baldwin St 0.2
84 Conant Ct Rieger Av To End 0.1
85 Eldridge Av Inglewood St To Regal Av 0.2
86 Huntwood Ct Huntwood Av to End 0.1
87 Lyford St Lytelle St To Rieger Av 0.1
88 Orchard Park Pl Schafer Rd to Cul-De-Sac 0.2
89 Ranker Pl Manon Av to CDS 0.2
90 Rieger Av Hamrick Av To End 0.9
91 Stanwood Rd Inglewood St To Underwood Rd 1.2
92 Tampa Av Tennyson Rd to Patrick Av 0.9
93 Underwood Av Inglewood St to Gomer St 0.5
94 Cinnamon Ct Ruus Rd to Cul De Sac 0.2
95 Colony Ct Folsom Av to Vagabond Ln 0.2
96 Folsom St Ruus Rd to Tampa Av 1.0
97 Foxfire Ln Logan Wy to End 0.0
98 Sebring Ct Welford Ln to Cul-De-Sac 0.1
99 Silverdell Wy Huntwood Av to Colony Ct 0.2
100 Thiel Rd Ruus Rd to End 0.7
101 Vagabond Ln Folsom Av to Colony Ct 0.3
102 Amaral St Whipple Rd to Almaden St 0.6
103 Breakwater Ct Breakwater Av to Clawiter Rd 0.2
104 Clawiter Rd Enterprise Ave to UPRR 0.0
105 Enterprise Av Clawiter Rd to Whitesell St 1.0
106 Point Eden Wy Eden Landing Rd to Cul-De-Sac 0.9
107 Research Rd Point Eden Wy to Trust Wy 0.3
108 Trust Way Resarch Rd to Eden Landing Rd 0.4
109 Viking St Diablo Av to Depot Rd 0.3
110 Anna St Denton Av to Buchanan Wy 0.2
111 Ardenwood Ct West St to Dead End 0.1
112 Bennington Ln Dodge Av to Cryer St 0.3
113 Brentwood Ct Sangamore St to End 0.1
114 Calaveras Rd Denton Av to Buchanan Wy 0.2
115 Chapman Ct Cryer St to Cul De Sac 0.1
116 Christina Ct Monument Blvd to Cul De Sac 0.1
117 Heather Ct West St to Dead End 0.1
118 La Playa Pl La Playa Dr to End 0.1
119 Stone Ct Sangamore St to End 0.1
120 Verlor Ct Sangamore St to End 0.1
121 Xavier Av Monument St to Chandler Rd 0.4
122 Yew Ct Sangamore St to West St 0.1
Industrial
Rehabilitation
(M
ill and Overlay)
24 Mt
Eden
Jackson
Triangle
Whitman Mocine
Harder
Tennyson
Tennyson
Alquire
ATTACHMENT III
146
ATTACHMENT IV
1 of 5
FY26 PAVEMENT IMPROVEMENT PROJECT
PROJECT NO. 05347
PAVEMENT REHABILITATION
PREVENTIVE MAINTENANCE
BIKE LANES
147
2 of 5
ATTACHMENT IV
FY26 PAVEMENT IMPROVEMENT PROJECT
PROJECT NO. 05347
PAVEMENT REHABILITATION
PREVENTIVE MAINTENANCE
BIKE LANES
148
3 of 5
ATTACHMENT IV
FY26 PAVEMENT IMPROVEMENT PROJECT
PROJECT NO. 05347
PAVEMENT REHABILITATION
PREVENTIVE MAINTENANCE
BIKE LANES
149
4 of 5
ATTACHMENT IV
FY26 PAVEMENT IMPROVEMENT PROJECT
PROJECT NO. 05347
PAVEMENT REHABILITATION
PREVENTIVE MAINTENANCE
BIKE LANES
150
TAXIWAY-A
TAXIWAY-F
TAXIWAY-D
TAXIWAY-E
RUNWAY 10R-28L
RUNWAY 10L-28R
CHENEY LN
5 of 5
ATTACHMENT IV
FY26 PAVEMENT IMPROVEMENT PROJECT
PROJECT NO. 05347
CRACK SEAL, OR
CRACK SEAL & SPOT REPAIR 151
Attachment V
Street Limits Bike Plan
Recommendation
Pavement Improvement Project
Recommendation Notes
A St I-880 to Hathaway Ave Class IV Class II Future designs for this street are being developed through ongoing A Street High Injury Network study.
A St Hathaway Ave To Walnut Ave Class IV Class II Buffered This may be upgraded to Class IV with a future Pavement Improvement Project depending on ongoing A Street High Injury Network study.
A St Foothill Ave To City Limits Class IV Class II Due to numerous access conflicts, Class IV would require detailed outreach and technical study.
Hathaway Av West A St To City Limits Class IV Class II Southbound, Class IV Northbound
Class IV northbound appears to be feasible and has been designed. Class IV southbound would require addressing numerous access conflicts.
Santa Clara St A St To Winton Ave Class IV Class II Santa Clara is the subject of a recent traffic calming project and striping plan reflects community input.
Main St A St To Warrant St Class IV Class II southbound. Staff studying Class IV northbound
Class II added. Class IV is feasible northbound, would be parking-protected bike lane. Many access conflicts southbound. Volumes likely lower than assumed during Bike Plan development.
Orchard Ave Soto Rd To Joyce St Class II Class III Residential, 33' width with parking. No outreach around parking conversion was performed as part of Bike Plan or Pavement Improvement Project.
Folsom Ave Ruus Rd To Tampa Ave Class II Class III Residential, 40' width with parking. No outreach around parking conversion performed as part of Bike Plan or Pavement Improvement Project.
Sand Creek Dr Eden Shores Blvd To Dune Cir Class II Class III Volumes do not warrant Class II.
Dune Cir Sand Creek Dr To Trail Head Class II Class III Volumes do not warrant Class II.
FY26 Pavement Improvement Project
List of Streets Deviating from Bicycle and Pedestrian Master Plan 152
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 26-143
DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Maintenance Services
SUBJECT
Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Five-Year Landscape Management Contract for the 92 Reliever Route with Los Loza, Inc. with a Maximum Compensation Not- to-Exceed $387,000
RECOMMENDATION
That the City Council adopts a resolution (Attachment II), authorizing the City Manager to negotiate and execute a five-year landscape management contract for the 92 Reliever Route with Los Loza, Inc. (Los Loza) with a maximum compensation not-to-exceed $387,000.
SUMMARY
Maintenance Services’Landscape Division maintains street trees and municipal landscaping throughout the City along with landscape and vegetation management in select areas. To support staff workload, the Division routinely uses external contractors to complete landscape and vegetation maintenance. In January 2026, staff released a Request for Quote (RFQ) for landscape and vegetation maintenance along Route 92/Clawiter-Whitesell Interchange and Reliever Route. Staff received and reviewed three (3) bids and recommend awarding this contract to Los Loza with a maximum compensation not-to-exceed $387,000.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
CITY OF HAYWARD Printed on 4/17/2026Page 1 of 1
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DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Maintenance Services
SUBJECT: Adopt a Resolution A uthorizing the City Manager to Negotiate and Execute a Five-Year Landscape Management Contract for the 92 Reliever Route with Los Loza, Inc. with a Maximum Compensation Not-to-Exceed $387,000
RECOMMENDATION
That the City Council adopts a resolution (Attachment II), authorizing the City Manager to negotiate and execute a five-year landscape management contract for the 92 Reliever Route with Los Loza, Inc. (Los Loza) with a maximum compensation not-to-exceed $387,000.
SUMMARY
Maintenance Services’ Landscape Division maintains street trees and municipal landscaping throughout the City along with landscape and vegetation management in select areas . To support staff workload, the Division routinely uses external contractors to complete landscape and vegetation maintenance. In January 2026, staff released a Request for Quote (RFQ) for landscape and vegetation maintenance along Route 92/Clawiter-Whitesell Interchange and Reliever Route. Staff received and reviewed three (3) bids and recommend awarding this contract to Los Loza with a maximum compensation not-to-exceed $387,000.
FISCAL IMPACT
This is a planned annual cost that is included in the annual Maintenance Services Department operating budget. The existing contract has expired, which triggered the release of a new RFQ.
There will be no new impact to the General Fund of this item.
BACKGROUND AND DISUCSSION
On January 13, 2026, staff released RFQ 26 -016 for maintenance along Route 92/Clawiter - Whitesell Interchange and Reliever Route . The scope of work included various landscape, vegetation, and bioretention activities. On February 25, 2026, staff received and evaluated three (3) bids, ranging from $63,000 to $92,000 annually. Staff recommends awarding the contract to Los Loza, the lowest bidder. Los Loza is a Hayward landscaping company with the level of service required to maintain Bay Friendly certification. Likewise, Los Loza has been previously 154
awarded other C ity contracts and has demonstrated superb ability to provide adequate maintenance, quick response times in case of emergencies, and excellent customer service. The expected yearly cost, inclusive of 3% annual CPI increase and 10% contingency, is outlined below:
Cost Type FY 27 FY 28 FY 29 FY 30 FY 31 Total
Contractual
Services
$63,360 $65,261 $67,219 $69,235 $71,312 $336,387
Contingency $9,500 $9,700 $10,000 $10,413 $11,000 $50,613 Total $72,860 $74,961 $77,219 $79,648 $82,312 $387,000
ECONOMIC IMPACT
Routine landscape maintenance provides economic benefits, such as reduced blight, increased property values, and enjoyable outdoor spaces for recreational activities.
STRATEGIC ROADMAP AND SUSTAINABILITY FEATURES
This item is a routine operational item and does not directly support Council’s Strategic Priorities or has significant sustainability features.
NEXT STEPS
If Council approves this item, the City Manager will execute an agreement with Los Loza, Inc. with a maximum compensation not-to-exceed $387,000 for five years.
Prepared by: Manny Grewal, Management Analyst
Recommended by: Todd Rullman, Director of Maintenance Services
Approved by:
______________________________
Jennifer Ott, City Manager
155
ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 26-___
Introduced by Council Member ____
RESOLUTION AUTHORIZING THE CITY MANAGER TO ADOPT A RESOLUTION
TO NEGOTIATE AND EXECUTE A FIVE -YEAR LANDSCAPE MANAGEMENT CONTRACT FOR THE 92 RELIEVER ROUTE WITH LOS LOZA, INC. WITH A MAXIMUM COMPENSATION NOT-TO-EXCEED $387,000
WHEREAS, on January 13, 2026, staff released a Request for Quote (RFQ) 26 -016 seeking a qualified landscape contractor for maintenance along Route 92/Clawiter-Whitesell Interchange and Reliever Route since the current contract is nearing the end date; and,
WEHREAS, on February 25, 2026, staff received and evaluated three (3) bids; and,
WEHREAS, Los Loza was the lowest bidder with a bid of $63,360 annually, subject to CPI increases; and,
WHEREAS, there will be no additional impact to the General Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is hereby authorized to negotiate and execute a landscape management contract with Los Loza, Inc. for the 92 Reliever Route with a maximum compensation not-to- exceed $387,000 and a contract term of five years.
IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2026
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
156
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 26-144
DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Maintenance Services
SUBJECT
Adopt a Resolution Authorizing the City Manager to Negotiate and Execute Landscape Management Contract for CalTrans Surplus Property Weed Abatement with Joe’sLandscaping and Concrete, Inc., with a Maximum Compensation Not-to-Exceed $700,000 through FY 2030
RECOMMENDATION
That City Council adopt a resolution (Attachment II) authorizing the City Manager to negotiate and execute a landscape maintenance contract for CalTrans Surplus Property Weed Abatement with Joe’s Landscaping and Concrete, Inc. (Joe’s Landscape) with a maximum compensation not-to-exceed $700,000 through Fiscal Year (FY) 2030.
SUMMARY
Maintenance Services’Landscape Division maintains street trees and municipal landscaping throughout the City along with vegetation management in select areas. Annual vegetation management services are necessary to mitigate fire hazards by completing weed abatement activities, reducing fire fuel materials, and creating fire breaks and other fire defensible spaces. To support staff workload, the Division routinely uses external contractors to complete landscape and vegetation maintenance. In November 2025, staff released a Request for Quote (RFQ) for maintenance support along specific City-owned CalTrans Parcels since the current contract expired. Staff recommends awarding the contract to Joe’s Landscape with a maximum compensation not-to-exceed $700,000, effective FY26 through FY30, and subject to annual CPI increases.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
CITY OF HAYWARD Printed on 4/17/2026Page 1 of 2
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File #:CONS 26-144
CITY OF HAYWARD Printed on 4/17/2026Page 2 of 2
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DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Maintenance Services
SUBJECT: Adopt a Resolution Authorizing the City Manager to Negotiate and Execute Landscape Management Contract for CalTrans Surplus Property Weed Abatement with Joe’s Landscaping and Concrete, Inc., with a Maximum Compensation Not-to- Exceed $700,000 through FY 2030
RECOMMENDATION
That City Council adopt a resolution (Attachment II) authorizing the City Manager to negotiate and execute a landscape maintenance contract for CalTrans Surplus Property Weed Abatement with Joe’s Landscaping and Concrete, Inc. (Joe’s Landscape) with a maximum compensation not-to-exceed $700,000 through Fiscal Year (FY) 2030.
SUMMARY
Maintenance Services’ Landscape Division maintains street trees and municipal landscaping throughout the City along with vegetation management in select areas. Annual vegetation management services are necessary to mitigate fire hazards by completing weed abatement activities, reducing fire fuel materials, and creating fire breaks and other fire defensible spaces. To support staff workload, the Division routinely uses external contractors to complete landscape and vegetation maintenance. In November 2025, s taff released a Request for Quote (RFQ) for maintenance support along specific City -owned CalTrans Parcels since the current contract expired. Staff recommends awarding the contract to Joe’s Landscape with a maximum compensation not-to-exceed $700,000, effective FY26 through FY30, and subject to annual CPI increases.
FISCAL IMPACT
This item will be funded through the Department’s yearly CIP budget through the CalTrans Parcel Group Property Fund (Fund 411). The fund has sufficient balance to cover these costs.
Fund 411 is kept separate from the General Fund to maintain and sell the Parcel Groups, but is General Fund money. It is a City and staff priority to sell these parcels to reduce the annual maintenance costs and return as much of the Fund 411 balance to the general fund.
159
As parcels are sold, the total amount in this maintenance contract will be reduced equivalently.
The annual cost for services will be budgeted as a contingency expense so no overall contract increase will occur.
BACKGROUND AND DISCUSSION
On November 18, 2025, staff released RFQ 26-013 that detailed landscape maintenance required for the CalTrans Surplus Properties. One specified criteria was the need to complete the scope of work within eight weeks. On January 14, 2026, staff received and evaluated five (5) bids, ranging from $91,140 to $500,000 annually. The lowest bidder submitted a proposal for 40 -working hours a week, which is insufficient to complete the scope of work within the given timeline. As such, staff recommends awarding the contract to the second-lowest bidder, Joe’s Landscape.
Joe’s Landscape is experienced with vegetation management, has a vast understanding of City specifications and standards and is familiar with the City-owned Route 238 parcels, and offers excellent customer service. Joe’s Landscape has performed its duties in accordance with the RFQ’s specifications and service amendments. The expected yearly cost, inclusive of a 3% annual CPI increase and a 10% contingency, is outlined below.
Cost Type FY 26 FY 27 FY 28 FY 29 FY 30 Total
Contractual
Services
$119,000 $122,570 $126,247 $130,035 $133,936 $631,787
Contingency $12,213 $13,000 $13,000 $15,000 $15,000 $68,213 Total $131,213 $135,570 $139,247 $145,035 $148,936 $700,000
ECONOMIC IMPACT
This item has no direct economic impact. However, annual vegetation management creates a safer City by mitigating fire hazards through weed abatement activities, reducing fire fuel materials, creating fire breaks, and implementing other techniques that mitigate risk through the creation of defensible spaces between these parcels and inhabited dwellings and infrastructure.
STRATEGIC ROADMAP AND SUSTAINABILITY FEATURES
This item is a routine operational item and does not directly support Council’s Strategic Priorities or has significant sustainability features.
NEXT STEPS
If Council approves the attached resolution, the City Manager will execute the agreement for CalTrans Surplus Property Weed Abatement with Joe’s Landscaping and Concrete, Inc, with a maximum compensation not-to-exceed $700,000.
Prepared by: Manny Grewal, Management Analyst
160
Recommended by: Todd Rullman, Director of Maintenance Services
Approved by:
_________________________________
Jennifer Ott, City Manager
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ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 26-____
Introduced by Council Member___________
RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOT IATE AND
EXECUTE A LANDSCAPE MANAGEMENT CONTRACT FOR CALTRANS
SURPLUS PROPERTY WEED ABATEMENT WITH JOE’S LANDSCAPE AND CONCRETE, INC. WITH A MAXIMUM COMPENSATION NOT-TO-EXCEED $700,000
WHEREAS, the Landscape Maintenance Division is responsible for maintaining trees and municipal landscape throughout the City along with vegetation management; and
WHEREAS, vegetation management services are necessary to mitigate fire hazards by completing weed abatement activities, reduce fire fuel materials, and creating fire breaks and other fire defensible spaces; and
WHEREAS, in November 2025, staff released a Request for Quote (RFQ) 26 -013 that detailed landscape maintenance required for the CalTrans Surplus Properties; and
WHEREAS, staff received and evaluated five (5) bids with one important criteria of finishing the work within eight weeks; and
WEHREAS, staff recommends awarding the contract to Joe’s Landscape and Concrete, Inc, (Joe’s Landscape), the most responsive bidder, in an annual amount of $119,000, subject to CPI increases; and
WHEREAS, this contract will be funded through Fund 411 and has no impact to the General Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is hereby authorized and directed to execute a landscape management contract for CalTrans Surplus Properties Joe’s Landscape and Concrete with a maximum compensation not-to-exceed $700,000 and a contract termination date of June 30, 2030.
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IN COUNCIL, HAYWARD, CALIFORNIA, _______________________, 2026
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
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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 26-145
DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Maintenance Services
SUBJECT
Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Landscape Maintenance Contract for Cannery Place Landscape and Lighting Assessment District 13 with Los Loza, Inc. with Maximum Compensation Not-to-Exceed $470,000 Over Five Years
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) authorizing the City Manager to negotiate and execute a landscape maintenance contract for Cannery Place Landscape and Lighting Assessment District 13 with Los Loza, Inc. (Los Loza) with a maximum compensation not-to-exceed $470,000 for five years.
SUMMARY
Maintenance Services’Landscape Division maintains eighteen (18) Landscape and Lighting Assessment Districts (LLAD) and two (2) Maintenance Districts. In January 2026, staff released requests for quotes (RFQ) to seek experienced and qualified contractors to provide landscape maintenance within Cannery Place (LLAD 13). Staff received and evaluated three (3) After review, staff recommend awarding the landscape maintenance contract to Los Loza with a maximum compensation not-to-exceed $470,000. The agreement will have a five-year term and is subject to an annual CPI increase.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
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DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Maintenance Services
SUBJECT: Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Five-Year Landscape Maintenance Contract for Cannery Place Landscape and Lighting Assessment District 13 with Los Loza, Inc. with Maximum Compensation Not-to-Exceed $470,000 Over Five Years
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) authorizing the City Manager to negotiate and execute a landscape maintenance contract for Cannery Place Landscape and Lighting Assessment District 13 with Los Loza, Inc. (Los Loza) with a maximum compensation not-to-exceed $470,000 for five years.
SUMMARY
Maintenance Services’ Landscape Division maintains eighteen (18) Landscape and Lighting Assessment Districts (LLAD) and two (2) Maintenance Districts. In January 2026 , staff released requests for quotes (RFQ) to seek experienced and qualified contractors to provide landscape maintenance within Cannery Place (LLAD 13). Staff received and evaluated three (3) After review, staff recommend awarding the landscape maintenance contract to Los Loza with a maximum compensation not-to-exceed $470,000. The agreement will have a five-year term and is subject to an annual CPI increase.
FISCAL IMPACT AND
This item has no impact on the General Fund. Each LLAD collects tax assessments levied on the parcels within the community. LLAD 13 (Fund 281) has sufficient funds for this agreement.
BACKGROUND AND DISCUSSION
On January 13, 2026, staff released RFQ 26-015 LLD 13. On February 25, 2026, staff received and evaluated three (3) bids, ranging from $80,000 to $148,000 annually. Staff recommends awarding the contract to Los Loza, the lowest bidder . Los Loza is a Hayward landscaping company with the level of service required to maintain Bay Friendly certification. Likewise, Los Loza has been previously awarded other city contracts and has demonstrated superb ability to 165
provide adequate maintenance, quick response times in case of emergencies, and excellent customer service. The expected yearly cost, inclusive of 3% annual CPI increase and 10% contingency, is outlined below.
Cost Type FY 27 FY 28 FY 29 FY 30 FY 31 Total
Contractual
Services
$80,784 $83,208 $85,704 $88,275 $90,923 $428,893
Contingency $8,000 $8,000 $8,000 $8,000 $9,107 $41,107
Total $88,784 $91,208 $93,704 $96,275 $100,030 $470,000
ECONOMIC IMPACT
Routine landscape maintenance provides economic benefits, such as reduced blight, increased property values, and enjoyable outdoor spaces for recreational activities.
STRATEGIC ROADMAP AND SUSTAINABILITY FEATURES
This item is a routine operational item and does not directly support Council’s Strategic Priorities or has significant sustainability features.
NEXT STEPS
If Council approves the attached resolution, the City Manager will execute the agreement with Los Loza, Inc. for Cannery Place LLAD 13 with a maximum compensation not-to-exceed $470,000 over five years.
Prepared by: Manny Grewal, Management Analyst
Recommended by: Todd Rullman, Director of Maintenance Services
Approved by:
______________________________
Jennifer Ott, City Manager
166
ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 26_____
Introduced by Council Member _____
RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND
EXECUTE A LANDSCAPE MAINTENANCE CONTRACT FOR CANNERY PLACE LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT 13 WITH LOS LOZA, INC.
WITH A MAXIMUM COMPENSATION NOT-TO-EXCEED $470,000 OVER FIVE YEARS
WHEREAS, the Landscape Maintenance Division maintains eighteen (18) Landscape and Lighting Assessment Districts (LLAD) and two (2) Maintenance Districts; and
WHEREAS, each District collects property tax assessments levied on the parcels within the community to fund specific operating and maintenance needs for its District; and
WHEREAS, on January 13, 2026, staff released a Request for Quote (RFQ) 26- 015 for a qualified contractor to provide maintenance on landscaping, trees, bioretention areas, irrigation, and walking paths for Cannery Place (LLAD 13); and
WHEREAS, on February 25, 2026, staff received and evaluated three (3) bids; and
WHEREAS, staff recommends awarding the contract to Los Loza, Inc. , the lowest bidder, in an annual amount of $80,784, subject to annual CPI increases; and
WHEREAS, the contract term length would be for five (5) years; and
WHEREAS, Cannery Place (LLAD 13) has sufficient balance in its fund for this contract and will have no impact on the General Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is hereby authorized to negotiate and execute a landscape maintenance contract for Cannery Place Lighting and Landscape Assessment District 13 with Los Loza, Inc. with a maximum compensation not-to-exceed $470,000 for five years.
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ATTACHMENT II
IN COUNCIL, HAYWARD, CALIFORNIA, _______________________, 2026
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
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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 26-148
DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Adopt a Resolution Approving the Project List for FY 27 Road Repair and Accountability Act (RRAA) Funding for the FY 27 Pavement Improvement Project, Project No. 05360
RECOMMENDATION
That the City Council approves the project list for RRAA FY 27 funding for the FY 27 Pavement Improvement Project (PIP).
SUMMARY
A yearly application must be submitted to the California Transportation Commission (CTC) to continue receiving RRAA funding, which must include a resolution (Attachment II) approving a project list of street segments or defined regions of the City for the estimated revenue. The RRAA revenue estimate for FY27 is $4,500,000 and the project list includes the Hayward neighborhoods within the limits of Hesperian Blvd, SR-92, Industrial Blvd, Industrial Pkwy West, Mission Blvd, D St, City Limits, Foothill Blvd, and A St., as shown on Attachment III.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Map of Project Limits
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DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT Adopt a Resolution Approv ing the Project List for FY 27 Road Repair and Accountability Act (RRAA) Funding for the FY 27 Pavement Improvement Project, Project No. 05360
RECOMMENDATION
That the City Council approves the project list for RRAA FY 27 funding for the FY 27 Pavement Improvement Project (PIP).
SUMMARY
A yearly application must be submitted to the California Transportation Commission (CTC) to continue receiving RRAA funding, which must include a resolution (Attachment II) approving a project list of street segments or defined regions of the City for the estimated revenue. The RRAA revenue estimate for FY27 is $4,500,000 and the project list includes the Hayward neighborhoods within the limits of Hesperian Blvd, SR -92, Industrial Blvd, Industrial Pkwy West, Mission Blvd, D St, City Limits, Foothill Blvd, and A St. , as shown on Attachment III.
FISCAL IMPACT
There are no impacts to the General Fund or Measure C. RRAA funding is received and spent in special revenue Fund 211.
The estimated revenue from RRAA for FY27 is $4,500,000. This amount will be budgeted in the recommended FY27-FY36 CIP which is scheduled to be presented to Council for adoption later this spring.
BACKGROUND
On April 28, 2017, the Governor signed Senate Bill 1 (SB1), the RRAA of 2017, to address basic road maintenance, rehabilitation, and critical safety needs through an increase in per gallon fuel excise taxes and vehicle registration fees. 170
To receive each year’s SB1 apportionments, cities must apply to the CTC for the funds by submitting a tentative project list approved by resolution to the CTC. The project list must contain either a list of street segments or defined regions of the City undergoing rehabilitation, an estimated completion date for the project, and the estimated useful life of the paving methods utilized.
DISCUSSION
This project is part of the larger FY27 PIP. This project is scheduled to finalize a street list by November 2026, call for bids in February 2027, start construction in Summer 2027, and complete construction in Fall of 2027.
The project is funded through Senate Bill 1 (SB1), the Road Repair and Accountability Act of 2017, which provides cities and counties with formula- based revenues specifically designated for road maintenance, rehabilitation, and critical safety improvements on the local street and road system. SB 1 funds are not intended for standalone infrastructure improvements such as traffic calming devices or Rectangular Rapid Flashing Beacons (RRFBs) unless they are incidental to and directly associated with an eligibl e pavement rehabilitation scope.
The RRAA revenue estimate of $4,500,000 will be used to treat the Hayward neighborhoods within the limits of Hesperian Blvd, SR -92, Industrial Blvd, Industrial Pkwy West, Mission Blvd, D St, City Limits, Foothill Blvd, and A St (Attachment III). This area includes streets in poor condition with high number of resident requests in order to improve and increase equity in distribution of City services ( Industrial Blvd, B St, and Russell Wy). Preventative maintenance treatment estimated useful life is 5 -10 years and pavement rehabilitation treatment estimated useful life is 10-15 years.
ECONOMIC IMPACT
The PIP project will improve pavement conditions and generate economic benefits by:
• Reducing travel time and congestion
• Lowering fuel consumption and vehicle operating costs • Attracting business investment
• Increasing property values and neighborhood desirability • Reducing vehicle traffic through added bike lanes
• Creating local construction jobs under the Community Workforce Agreement
STRATEGIC ROADMAP
This agenda item supports the FY25 Strategic Roadmap of Invest in Infrastructure, Objective 1: Invest in multi-modal transportation. Specifically, this item relates to the implementation of the following project(s):
• FM2 - # of miles of bike lanes added Transportation
• FM3 - # of miles of repaving completed Transportation 171
SUSTAINABILITY FEATURES
The project requires the contractor to recycle all construction and demolition debris generated from the project.
This project is consistent with City’s Complete Streets Policy and improves travel for all users including:
• Improved pavement for motorists
• Additional bike lanes and sharrows for bicyclists
• More visible pavement markings for pedestrians, including near school zones • New or upgraded curb ramps to meet the recently revised Caltrans standards for pedestrians
The project satisfies the following General Plan policies:
• PFS-7.10 Recycled Products or Processes for Capital Projects • HQL-2.5 Safe Routes to School
• HQL-2.6 Education on Sharing the Road
• M-1.7 Eliminate Gaps (in pedestrian networks)
• M-3.1 Serving All Users
• M-5.1 Pedestrian Needs
• M-5.6 Safe Pedestrian Crossings
• M-6.2 Encourage Bicycle Use
PUBLIC CONTACT
There is no public contact associated with this action. Once the project list is finalized in November 2026, Staff will create a FY2 7 PIP project website on City’s Public Works & Utilities website and include a geographic information system (GIS) map showing upcoming project map and previously completed project maps.
NEXT STEPS
If Council approves this recommendation, staff will submit the defined regions in the City and resolution to the CTC.
May 2026 Submit RRAA funding application to CTC
November 2026 Finalize project list of streets
February 2027 C all for bids & bid opening
Summer 2027 Begin construction
Fall 2027 Complete construction
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Prepared by: Yama Farouqi, Senior Civil Engineer
Reviewed by: Dave Hung, Acting Deputy Director of Public Works – Engineering
Recommended by: Alex Ameri, Director of Public Works
Approved by:
______________________________
Jennifer Ott, City Manager
173
ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 26-____
Introduced by Council Member _____________
RESOLUTION APPROVING PROJECT LIST FOR FY 27 ROAD REPAIR AND ACCOUNTABILITY ACT (RRAA) FUNDING FOR THE FY 27 PAVEMENT IMPROVEMENT PROJECT, PROJECT NO. 05360
WHEREAS, Senate Bill 1 (SB1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 in order to address the significant multi- modal transportation funding shortfalls statewide; and
WHEREAS, SB1 includes accountability and transparency provisions that will ensure the residents of Hayward are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City must approve a list of all projects or defined regions of the City proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City will receive an estimated $ 4,500,000 in RMRA funding in Fiscal Year 2027 from SB1; and
WHEREAS, this is the ninth year in which the City of Hayward is receiving SB1 funding and will enable the City of Hayward to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB1; and
WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities; and
WHEREAS, the City will use a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high -priority and cost- effective projects that also meet the community’s priorities for transportation investment; and
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WHEREAS, the funding from SB1 will help the City maintain and rehabilitate street sections in the defined region of the City listed below in Fiscal Year 202 7 and dozens of similar projects into the future; and
WHEREAS, the 201 8 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in “ good” condition and this revenue will help us increase the overall quality of our road system and over the next decade will help maintain our streets and roads in “good” condition.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that:
1. The foregoing recitals are true and correct.
2. The fiscal year 20 26-27 list of projects planned to be funded with Road Maintenance and Rehabilitation Account revenues include:
• Hayward neighborhoods within Hesperian Blvd, SR -92, Industrial Blvd, Industrial Pkwy West, Mission Blvd, D St, City Limits.
• Preventative maintenance treatment estimated useful life is 5-10 years. • Pavement rehabilitation treatment estimated useful life is 10-15 years. • Begin construction: Spring 2027
• End construction: Fall 2027
IN COUNCIL, HAYWARD, CALIFORNIA , 2026
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
175
TAXIWAY-A
TAXIWAY-D
TAXIWAY-E
RUNWAY 10R-28L
RUNWAY 10L-28R
CHENEY LN
HESPERIAN BLVD
SR-92
INDUSTRIAL BLVD
INDUSTRIAL PKWY WEST
MISSION BLVD
FOOTHILL BLVD
D STREET
CITY LIMITS
A STREET
Project Limits for FY27 Road Repair and Accountability Act (RRAA) Funding for the FY27 Pavement Improvement Project
ATTACHMENT III
176
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 26-162
DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and the Hayward Association of Management Employees Deferring the Cost of Living Adjustment Increase Due the Pay Period Containing July 1, 2026, and Authorizing the City Manager to Execute the Agreement
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) approving a Side Letter of Agreement (Attachment IV) between the City of Hayward and the Hayward Association of Management Employees (HAME) deferring the Cost of Living Adjustment (COLA) increase from the beginning of fiscal year 2026- 27 to the end of fiscal year 2026-27 to create salary savings for the upcoming fiscal year.
SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. Under the current agreement, HAME represented employees are due a COLA increase effective with the pay period including July 1, 2026. The City and HAME met and conferred in good faith and reached tentative agreement in which HAME represented employees will defer the COLA increase for all HAME represented classifications that are not entirely funded through enterprise funds. The COLA increase initially scheduled at the start of fiscal year 2026-27 will be deferred to the end of fiscal year 2026-27; effective the beginning of the pay period containing June 30, 2027. If approved, the proposed agreement would result in City savings of approximately $465,000 in fiscal year 2026-27. As part of this agreement, the City agrees not to exercise its right to layoff employees in the HAME bargaining unit beginning upon ratification of the tentative agreement by HAME through and including June 30, 2027.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Tentative Agreement
Attachment IV Side Letter of Agreement
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File #:CONS 26-162
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DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT: Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and the Hayward Association of Management Employees Deferring the Cost of Living Adjustment Increase Due the Pay Period Including July 1, 2026, and Authorizing the City Manager to Execute the Agreement
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) approving a Side Letter of Agreement (Attachment IV) between the City of Hayward and the Hayward Association of Management Employees (HAME) deferring the Cost of Living Adjustment (COLA) increase from the beginning of fiscal year 2026-27 to the end of fiscal year 2026-27 to create salary savings for the upcoming fiscal year.
SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. Under the current agreement, HAME represented employees are due a COLA increase effective with the pay period including July 1, 2026. The City and HAME met and conferred in good faith and reached tentative agreement in which HAME represented employees will defer the COLA increase for all HAME represented classifications that are not entirely funded through enterprise funds. The COLA increase initially scheduled at the start of fiscal year 2026-27 will be deferred to the end of fiscal year 2026-27; effective at the beginning of the pay period that includes June 30, 2027. If approved, the proposed agreement would result in City savings of approximately $465,000 in fiscal year 2026-27. As part of this agreement, the City agrees not to exercise its right to layoff employees in the HAME bargaining unit beginning upon ratification of the tentative agreement by HAME through and including June 30, 2027.
FISCAL IMPACT
The proposed agreement includes a projected savings of $465,000 to the City in Fiscal year 2026-27.
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BACKGROUND
In response to the City’s current financial state, the City implemented a number of cost saving measures, including but not limited to: a transfer of Measure C funds; a use of OPEB Trust fund balance; use of CDBG funds; update of master fee schedule; cost reductions and revenue offsets in the Navigation Center; maintaining the FY 2025-26 worker’s compensation transfer amount into FY 2026-27 resulting in use of fund balance in the Worker’s Compensation Fund; public safety overtime reductions; and other police department savings. Even after all these measures are assumed, the City still projects a funding gap that needs to be closed by either labor concessions or departmental cost reductions or a combination of both.
In addition, all bargaining groups in the City were asked for a concession equivalent to forgoing upcoming scheduled COLA increases. Cost savings contributed by bargaining groups are critical to the City’s fiscal health as employee salaries and benefits costs make up over 90% of the General Fund budget.
In accordance with the Memorandum of Understanding (MOU) between the City and HAME, there is a scheduled COLA increase due for all HAME represented employees the pay period containing July 1, 2026.
DISCUSSION
In partnership with the City to help address the current financial situation, HAME and the City entered into a tentative agreement which was subsequently ratified by HAME’s membership on April 3, 2026. The tentative agreement defers the scheduled COLA increases, for all classifications that are not entirely funded through enterprise funds, to the pay period including June 30, 2027; creating a full fiscal years’ worth of salary savings from the bargaining unit. In addition, the agreement provides layoff protection for HAME represented employees from April 3, 2026, through and including June 30, 2027. The agreement includes a clause for concession parity; should another represented, non-safety unit agree to concession terms that 1) include layoff protections, and 2) result in less savings for the City as a percentage of that other bargaining unit’s total base wages, HAME may elect to accept the terms of that agreement rather than the terms reflected in the tentative agreement between the City and HAME.
The City acknowledges and appreciates the collaborative engagement of HAME in agreeing to these concessions despite being in a closed contract period. This partnership reflects a shared commitment to addressing the organization’s fiscal challenges and maintaining service continuity for the community.
STRATEGIC INITIATIVES
This agenda item is an operational item and does not relate to one of the Council’s Strategic Initiatives.
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NEXT STEPS
Staff will finalize the documents and obtain necessary review by the City Attorney and respective approval by the City Manager to execute them. The Human Resources Department will work with the Finance Department to implement these changes.
Prepared and Recommended by: Ian Tecson, Director of Human Resources
Approved by:
______________________________
Jennifer Ott, City Manager
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ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 26-____
Introduced by Council Member _________
RESOLUTION APPROVING A SIDE LETTER OF AGREEMENT WITH THE
HAYWARD ASSOCIATION OF MANAGEMENT EMPLOYEES IMPLEMENTING A COLA DEFERRAL IN FISCAL YEAR 2026-27
WHEREAS, the City of Hayward is facing a budget deficit and is taking measures to reduce costs; and
WHEREAS, the City of Hayward must realize cost saving measures for the upcoming fiscal year 2026-27; and
WHEREAS, the City has met and conferred in good faith with representatives of the Hayward Association of Management Employees (HAME); and
WHEREAS, HAME has agreed to deferring the cost of living adjustment (COLA) increase, for all HAME represented classifications not entirely funded by enterprise funds, to the pay period including June 30, 2027; and the Parties agree to layoff protections in which the City will not exercise its right to layoff employees in the bargaining unit from April 3, 2026, through and including June 30, 2027 ; and the Parties agree to concession parity, should another represented non- safety unit agree to concession terms that 1) also include layoff projections and 2) result in less savings for the City as a percentage of that other bargaining unit’s total base wages, HAME may elect to accept the terms of that agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is hereby authorized and directed to execute, on behalf of the City of Hayward, amendments to the Memoranda of Understanding through the related side letter of agreement as soon as administratively possible, and authorizes staff to execute said agreements, a copy of which will be on file in the Office of the City Clerk.
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ATTACHMENT II
IN COUNCIL, HAYWARD, CALIFORNIA, _______________________, 2026
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
183
Attachment III
184
Attachment III
185
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF HAYWARD
AND
HAYWARD ASSOCIATION OF MANAGEMENT EMPLOYEES
Representatives of the City of Hayward and the Hayward Association of Management Employees (“HAME”) have met and conferred in good faith regarding the projected revenue shortfall and budget deficit facing the City of Hayward for FY 2026-2027 and temporary measures necessary to address the projected General Fund shortfall. In partnership to stabilize City finances while maintaining essential services, the parties agree to the terms contained in this Side Letter of Agreement (“Agreement”). The Agreement amends specific provisions of the current Memoranda of Understanding between the City and HAME, through June 30, 2027 (the “HAME MOU”).
Except where specifically modified below, all other terms of the HAME MOU remain unchanged. Where conflicts exist between this Agreement and prior side letters or MOU language, this Agreement supersedes them for the duration specified. The terms become effective the first full pay period following City Council approval unless otherwise stated. 1) EƯective following City Council adoption of this agreement, Section 7.17 of the HAME MOU will be amended as follows:
7 .17 Cost of Living Adjustments
EƯective the pay period including July 1, 2024 (the date upon which the parties reach a total tentative agreement on a successor contract), base wages for employees represented by the Association shall be increased by approximately six percent (6.0%).
EƯective the pay period including July 1, 2025, base wages for employees represented by the Association shall be increased by approximately four percent (4.0%).
EƯective the pay period including July 1, 2026, base wages for employees represented by the Association in classifications for which every position is funded through enterprise funds shall be increased by approximately three percent (3.0%). For all other employees represented by the Association, base wages shall be increased by three percent (3%) eƯective the pay period included July 1, 2027. No employee shall receive more than a three percent (3%) base salary increase in FY2026-27 under this contract section.
This Section shall not be subject to the dispute resolution procedure contained in the Bargaining Unit's Memorandum of Understanding, to procedures contained in the City's Personnel Rules, or to the jurisdiction of the City's Personnel Board for any reason whatsoever.
Attachment IV
186
2) The City shall not exercise its right to layoƯ employees in HAME-represented classifications for the period beginning April 3, 2026, and ending on June 30, 2027.
For Hayward Association of
Management Employees: For City of Hayward:
Dan Magalhaes, HAME President Jennifer Ott, City Manager Alexandra Crivello, CEA/Representative Burke Dunphy, Chief Negotiator Ian Tecson, Director of Human
Resources
Dated Dated
Attachment IV
187
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 26-163
DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and the Hayward Police Management Unit Modifying Cost of Living Adjustment Increases and Authorizing the City Manager to Execute the Agreement
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) approving a Side Letter of Agreement (Attachment IV) between the City of Hayward and the Hayward Police Management Unit (HPMU) modifying the Cost-of-Living Adjustment (COLA) increases in fiscal years 2027-28; 2028-29; and 2029- 30 to create salary savings through the term of the current contract.
SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. The City and HPMU met and conferred in good faith and reached tentative agreement in which COLA increases for all HPMU represented classifications will be modified for FY 2027-28 and 2028-29 and 2029-30. The COLA increases are initially scheduled for a minimum of five percent (5%) and maximum of seven percent (7%) in the pay periods including July 1, 2027, and July 1, 2028; and based on salary survey in the pay period containing July 1, 2029. The parties agree to modify the COLA increase to four and one-half percent (4.5%) in the pay periods including July 1, 2027, and July 1, 2028; and to limit the COLA increase to a minimum of two percent (2%) and maximum of three percent (3%) in the pay period containing July 1, 2029. If approved, the proposed agreement would result in a General Fund savings of approximately $60,000 through the remaining term of the contract.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Tentative Agreement
Attachment IV Side Letter of Agreement
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File #:CONS 26-163
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DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT: Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and the Hayward Police Management Unit Modifying Cost of Living Adjustments Increases and Authorizing the City Manager to Execute the Agreement
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) approving a Side Letter of Agreement (Attachment IV) between the City of Hayward and the Hayward Police Management Unit (HPMU) modifying the Cost-of-Living Adjustment (COLA) increases in fiscal years 2027-28; 2028-29; and 2029-30 to create salary savings through the term of the current contract.
SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. The City and HPMU met and conferred in good faith and reached tentative agreement in which COLA increases for all HPMU represented classifications will be modified for FY 2027-28 and 2028- 29 and 2029-30. The COLA increases are initially scheduled for a minimum of five percent (5%) and maximum of seven percent (7%) in the pay periods including July 1, 2027, and July 1, 2028; and based on salary survey in the pay period containing July 1, 2029. The parties agree to modify the COLA increase to four and one-half percent (4.5%) in the pay periods including July 1, 2027, and July 1, 2028; and to limit the COLA increase to a minimum of two percent (2%) and maximum of three percent (3%) in the pay period containing July 1, 2029. If approved, the proposed agreement would result in a General Fund savings of approximately $60,000 through the remaining term of the contract.
FISCAL IMPACT
This side letter results in an estimated savings of approximately $30,000 in FY 2027-28 and $30,000 in FY 2028-20. In addition, this side letter reduces exposure to unknown increases based on salary schedules and aligns with changes to the HPOA MOU.
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BACKGROUND
In response to the City’s current financial state, the City implemented a number of cost saving measures, including but not limited to: a transfer of Measure C funds; a use of OPEB Trust fund balance; use of CDBG funds; update of master fee schedule; cost reductions and revenue offsets in the Navigation Center; maintaining the FY 2025-26 worker’s compensation transfer amount into FY 2026-27 resulting in use of fund balance in the Worker’s Compensation Fund; public safety overtime reductions; and other police department savings. Even after all these measures are assumed, the City still projects a funding gap that needs to be closed by either labor concessions or departmental cost reductions or a combination of both.
In addition, all bargaining groups in the City were asked for a concession equivalent to forgoing upcoming scheduled COLA increases. Cost savings contributed by bargaining groups are critical to the City’s fiscal health as employee salaries and benefits costs make up over 90% of the General Fund budget.
In accordance with the MOU between the City and HPMU, there are scheduled COLA increases due for all HPMU represented employees based on salary surveys for the pay periods containing July 1, 2027; July 1, 2028; and July 1, 2029. Based on most recent salary study, no increase was due for Fiscal Year 2026-27.
DISCUSSION
In partnership with the City to help address the current financial situation, HPMU and the City entered into a tentative agreement which was subsequently ratified by HPMU’s membership on April 1, 2026. The tentative agreement modifies the scheduled COLA increases, for all classifications in Fiscal Years 2027-28; 2028-29; and 2029-30 limiting exposure to a fixed amount based on future salary surveys.
The City acknowledges and appreciates the collaborative engagement of HPMU in agreeing to these concessions despite being in a closed contract period. This partnership reflects a shared commitment to addressing the organization’s fiscal challenges and maintaining service continuity for the community.
STRATEGIC INITIATIVES
This agenda item is an operational item and does not relate to one of the Council’s Strategic Initiatives.
NEXT STEPS
Staff will finalize the documents and obtain necessary review by the City Attorney and respective approval by the City Manager to execute them. The Human Resources Department will work with the Finance Department to implement these changes.
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Prepared and Recommended by: Ian Tecson, Director of Human Resources
Approved by:
______________________________
Jennifer Ott, City Manager
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ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 26-____
Introduced by Council Member _________
RESOLUTION APPROVING A SIDE LETTER OF AGREEMENT WITH THE
HAYWARD POLICE MANAGEMENT UNIT FOR IMPLEMENTATION OF A COLA REDUCTION IN FISCAL YEARS 2027-28; 2028-29; AND 2029-30
WHEREAS, the City of Hayward is facing a budget deficit and is taking measures to reduce costs; and
WHEREAS, the City of Hayward must realize cost saving measures for the upcoming fiscal year 2026-27; and
WHEREAS, the City has met and conferred in good faith with representatives of the Hayward Police Management Unit (HPMU); and
WHEREAS, HPMU has agreed to modify the cost of living adjustment (COLA) increases, for all HPMU represented classifications from a minimum of five percent (5%) and maximum of seven percent (7%) to a flat four and one- half percent (4.5%) for contract increases due the pay periods including July 1, 2027, and July 1, 2028; and to limit the COLA increase to a minimum of two percent (2%) and maximum of three percent (3%) in the pay period containing July 1, 2029.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward that the City Manager is herby authorized and directed to execute, on behalf of the City of Hayward, amendments to the Memoranda of Understanding through the related side letter of agreement as soon as administratively possible, and authorizes staff to execute said agreements, a copy of which will be on file in the Office of the City Clerk.
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ATTACHMENT II
IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2026
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
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Attachment III
195
Attachment III
196
Attachment III
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SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF HAYWARD
AND
HAYWARD POLICE MANAGEMENT UNIT
Representatives of the City of Hayward and the Hayward Police Management Unit (“HPMU”) have met and conferred in good faith regarding the projected revenue shortfall and budget deficit facing the City of Hayward for FY 2026-2027 and future fiscal years and measures necessary to address these projected General Fund shortfalls. In partnership to stabilize City finances while maintaining essential services, the parties agree to the terms contained in this Side Letter of Agreement (“Agreement”). The Agreement amends specific provisions of the current Memoranda of Understanding between the City and HPMU, through June 30, 2030 (the “HPMU MOU”).
Except where specifically modified below, all other terms of the HPMU MOU remain unchanged. Where conflicts exist between this Agreement and prior side letters or MOU language, this Agreement supersedes them for the duration specified. The terms become effective the first full pay period following City Council approval unless otherwise stated. 1) EƯective following City Council adoption of this agreement, Section 6.13 of the HPMU MOU will be amended as follows:
6.13 Salary Adjustments
Bargaining unit salaries shall be increased by eleven and eighty-two hundredths percent (11.82%), eƯective July 1, 2025.
Bargaining unit salaries eƯective the pay period including July 1, 2026, through June 30, 2027, shall have no salary increases.
The bargaining unit’s base wage shall be increased the pay period including July 1, 2027, through the last day of the pay period preceding the pay period that includes July 1, 2028, by four and one half percent (4.5%) based on the salary survey increase due to HPOA the pay period containing January 1, 2027, and tied to the established HPOA salary survey formula, which shall not be less than five percent (5%) and shall not exceed seven percent (7%).
The bargaining unit’s base wage shall be increased the pay period including July 1, 2028, through the last day of the pay period preceding the pay period that includes July 1, 2029, by four and one half percent (4.5%) based on the salary survey increase to HPOA the pay period Attachment IV
198
containing January 1, 2028, and tied to the established HPOA salary survey formula, which shall not be less than five percent (5%) and shall not exceed seven percent (7%).
The bargaining unit’s base wage shall be increased the pay period including July 1, 2029, through the last day of the pay period preceding the pay period that includes July 1, 2030, based on the salary survey increase due to HPOA the pay period containing January 1, 2029, and tied to the established HPOA salary survey formula, which shall not be less than two percent (2%) and shall not exceed three percent (3%).
Salary Survey
The salary survey will determine the diƯerence between the total compensation of a Hayward Police Captain and the average of the total compensation for Police Captain of the top four (4) agencies based on a survey of salary and benefits. The percentage shall be determined by (Total compensation average of top four (4) agencies – Total compensation of Hayward Police Captain) / Total compensation of the Hayward Police Captain, rounded to the nearest one hundredth percent (.01%). Hayward may be included in the top four (4) agencies should its compensation so indicate.
Surveyed agencies shall be: Santa Clara, Vallejo, Palo Alto, Richmond, Fremont, Berkeley, Daly City, San Mateo, Alameda, and San Leandro.
The salary survey shall be completed by May 31 of each year and include all salaries and benefits eƯective on July 1, of each year respectively, and approved by the agency's board or council. If on October 1 of each year, any of the above agencies reaches a settlement retroactive on or before July 1 of that respective year, thereby changing the average of the top four (4) agencies, a one (1) time adjustment will be made no later than November 1 of that respective year to salaries to reflect that change. Even withstanding the exceptions outlined above, the salary survey itself shall be completed annually regardless of the years where salary adjustments are not linked to it. Unless otherwise negotiated, salary increases resulting from salary surveys shall not exceed five percent (5%).
For purposes of this agreement and any mutually agreed upon successor Memorandum of Understanding, “total compensation” shall mean the top step Captain base monthly salary; employer-paid member CalPERS contributions; total employee-paid voluntary cost sharing of employer CalPERS contributions; holiday pay; uniform allowance; education incentive pay applicable to all Police Captains; continuous service pay applicable to all Police Captains; employee paid contributions towards the City’s OPEB liability; employer contributions towards the employee’s dental, life, Long Term Disability (LTD), Short Term Disability (STD), and vision care insurance premiums; and the amount the employer pays for premiums for family level health coverage. The amount to be included in the survey for family-level health coverage for the City of Hayward Police Captains shall be the amount of the family premium for the health plan in which the plurality of the HPMU members are enrolled. The amount to be included in the survey for employees’ dental, life, LTD/STD, and vision care insurance premiums shall be the maximum amount payable for each benefit by the respective Cities.
The amount to be included in the survey for Educational incentive pay, POST certification incentive pay, and Longevity pay shall be the maximum amount allowable for each incentive under each separate salary survey City’s MOU.
Attachment IV
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For Hayward Police Management Unit: For City of Hayward:
Jennifer Ott, City Manager
Burke Dunphy, Chief Negotiator
Ian Tecson, Director of Human
Resources
Dated Dated
Attachment IV
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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 26-164
DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and the International Federation of Professional and Technical Engineers, Local 21 Deferring the Cost of Living Adjustment Increase Due the Pay Period Including July 1, 2026, and Authorizing the City Manager to Execute the Agreement
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) approving a Side Letter of Agreement (Attachment IV) between the City of Hayward and the International Federation of Professional and Technical Engineers, Local 21 (Local 21) deferring the Cost of Living Adjustment (COLA) increase from the beginning of fiscal year 2026-27 to the end of fiscal year 2026-27 to create salary savings for the upcoming fiscal year.
SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. The City and Local 21 met and conferred in good faith and reached tentative agreement. The Local 21 agreement includes a COLA increase effective with the pay period including July 1, 2026. Local 21 represented employees have agreed to defer the COLA increase for all Local 21 represented classifications that are not entirely funded through enterprise funds. The COLA increase is initially scheduled at the start of fiscal year 2026-27 and will be deferred to the end of fiscal year 2026-27; effective the beginning of the pay period including June 30, 2027. If approved, the proposed agreement would result in a City savings of approximately $427,000 in fiscal year 2026-27. As part of this agreement, the City agrees not to exercise its right to layoff employees in the Local 21 bargaining unit beginning upon ratification of the tentative agreement by Local 21 through and including June 30, 2027.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Tentative Agreement
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File #:CONS 26-164
Attachment IV Side Letter of Agreement
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DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT: Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and the International Federation of Professional and Technical Engineers, Local 21 Deferring the Contracted Cost of Living Adjustment Increase Due the Pay Period Containing July 1, 2026, and Authorizing the City Manager to Execute the Agreement
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) approving a Side Letter of Agreement (Attachment IV) between the City of Hayward and the International Federation of Professional and Technical Engineers, Local 21 (Local 21) deferring the cost of living adjustment (COLA) increase from the beginning of fiscal year 2026-27 to the end of fiscal year 2026-27 to create salary savings for the upcoming fiscal year.
SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. The City and Local 21 met and conferred in good faith and reached tentative agreement. The Local 21 agreement includes a COLA increase effective with the pay period including July 1, 2026. Local 21 represented employees have agreed to defer the COLA increase for all Local 21 represented classifications that are not entirely funded through enterprise funds . The COLA increase is initially scheduled at the start of fiscal year 2026-27 and will be deferred to the end of fiscal year 2026-27; effective the beginning of the pay period including June 30, 2027. If approved, the proposed agreement would result in City savings of approximately $427,000 in fiscal year 2026-27. As part of this agreement, the City agrees not to exercise its right to layoff employees in the Local 21 bargaining unit beginning upon ratification of the tentative agreement by Local 21 through and including June 30, 2027.
FISCAL IMPACT
The proposed agreement includes a projected savings of approximately $427,000 in Fiscal Year 2026-27.
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BACKGROUND
In response to the City’s current financial state, the City implemented a number of cost saving measures, including but not limited to: a transfer of Measure C funds; a use of OPEB Trust fund balance; use of CDBG funds; update of master fee schedule; cost reductions and revenue offsets in the Navigation Center; maintaining the FY 2025-26 worker’s compensation transfer amount into FY 2026-27 resulting in use of fund balance in the Worker’s Compensation Fund; public safety overtime reductions; and other police department savings. Even after all these measures are assumed, the City still projects a funding gap that need s to be closed by either labor concessions or departmental cost reductions or a combination of both.
In addition, all bargaining groups in the City were asked for a concession equivalent to forgoing upcoming scheduled COLA increases. Cost savings contributed by bargaining groups are critical to the City’s fiscal health as employee salaries and benefits costs make up over 90% of the General Fund budget.
In accordance with the Mem orandum of Understanding (MOU) between the City and Local 21, there is a scheduled COLA increase due for all Local 21 represented employees the beginning of the pay period containing July 1, 2026.
DISCUSSION
In partnership with the City to help address the current financial situation, Local 21 and the City entered into a tentative agreement which was subsequently ratified by Local 21’s membership on April 16 , 2026 . The tentative agreement defers the scheduled COLA increases, for all classifications that are not entirely funded through enterprise funds, to the beginning of the pay period including June 30, 2027; creating a full fiscal years’ worth of General Fund salary savings from the bargaining unit. In addition, the agreement provides layoff protection for Local 21 represented employees from April 16 , 2026, through and including June 30, 2027. The agreement includes a clause for concession parity; should another represented, non-safety unit agree to concession terms that 1) include layoff protections, and 2) result in less savings for the City as a percentage of that other bargaining unit’s total base wages, the City will notify Local 21 in writing of the terms of that agreement and Local 21 may elect to accept the terms of the agreement rather than the terms reflected here.
The City acknowledges and appreciates the collaborative engagement of Local 21 in agreeing to these concessions despite b eing in a closed contract period. This partnership reflects a shared commitment to addressing the organization’s fiscal challenges and maintaining service continuity for the community.
STRATEGIC INITIATIVES
This agenda item is an operational item and does not relate to one of the Council’s Strategic Initiatives.
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NEXT STEPS
Staff will finalize the documents and obtain necessary review by the City Attorney and respective approval by the City Manager to execute them. The Human Resources Department will work with the Finance Department to implement these changes.
Prepared and Recommended by: Ian Tecson, Director of Human Resources
Approved by:
______________________________
Jennifer Ott, City Manager
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ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 26-____
Introduced by Council Member _________
RESOLUTION APPROVING A SIDE LETTER OF AGREEMENT WITH LOCAL 21,
INTERNATIONAL FEDERATION OF PROFESSIONAL AND TECHNICAL
ENGINEERS (LOCAL 21) INCLUDING IMPLEMENTATION OF A COLA DEFERRAL IN FISCAL YEAR 2026-27
WHEREAS, the City of Hayward is facing a budget deficit and is taking measures to reduce costs; and
WHEREAS, the City of Hayward must realize cost saving measures for the upcoming fiscal year 2026-27; and
WHEREAS, the City has met and conferred in good faith with representatives of the International Federation of Professional and Technical Engineers, Local 21 (Local 21); and
WHEREAS, Local 21 has agreed to deferring the cost of living adjustment (COLA) increase, for all Local 21 represented classifications not entirely funded by enterprise funds, to the start of the pay period including June 30, 2027; and the Parties agree to layoff protections in which the City will not exercise its right to layoff employees in the bargaining unit from April 16, 2026, through and including June 30, 2027 ; and the Parties agree to concession parity, should another represented non- safety unit agree to concession terms that 1) also include layoff projections and 2) result in less savings for the City as a percentage of that other bargaining unit’s total base wages, Local 21 may elect to accept the terms of that agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is her eby authorized and directed to execute, on behalf of the City of Hayward, amendments to the Memoranda of Understanding through the related side letter of agreement as soon as administratively possible, and authorizes staff to execute said agreements, a copy of which will be on file in the Office of the City Clerk.
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ATTACHMENT II
IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2026
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
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Attachment III
208
Attachment III
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SIDE LETTER AGREEMENT BETWEEN
THE CITY OF HAYWARD
AND
INTERNATIONAL FEDERATION OF PROFESSIONAL AND TECHNICAL ENGINEERS LOCAL 21
April 17, 2026
The City of Hayward (“City”) and Local 21, International Federation of Professional and Technical Engineers (“Local 21”) enter into the following side letter agreement in recognition of the City’s stated fiscal challenges, to preserve the City’s public services, while ensuring economic stability, fairness, and security for City employees. The City has met with Local 21 and received proposals to mitigate the impacts of the stated fiscal challenges. As a result of those discussions, the City and Local 21 agree as follows:
1. IFPTE Local 21 agrees to defer the wage increase of 3.0% for one (1) fiscal year, applicable to employees in classifications for which any position is funded by non- enterprise funds, subject to all conditions outlined in this proposal being met and maintained for the duration of the deferral. The wage deferral is temporary and non- precedential.
2. All fully enterprise-funded classifications will not defer wages and will receive a 3.0% cost-of-living increase on June 29, 2026, including but not limited to the following eight (8) classifications:
Job Class Position Title
T270 AIRPORT OPERATIONS SPECIALIST
T320 DEVELOPMENT REVIEW SPECIALIST
T805 LABORATORY TECHNICIAN
T807 CHEMIST
T809 WPSC INSPECTOR I
T810 WPSC INSPECTOR II
T815 SR WPSC INSPECTOR
T870 WATER RESOURCES PLANNER
3. For all remaining classifications, the 3.0% wage deferral shall take effect on June 29, 2026.
4. The City guarantees no layoffs for every regular full time and regular part time employee of the bargaining unit starting on the effective date of this agreement, through June 30, 2027.
5. Wage increases of 3.0% described in section 1, shall be fully restored no later than June 28, 2027.
Attachment IV
210
6. Should another represented, non-safety unit agree to concession terms that (i) include layoff protections and (ii) result in less savings for the City as a percentage of that other bargaining unit’s total base wages, the City will notify Local 21 in writing of the terms of that agreement and Local 21 may elect to accept the terms of that agreement rather than the terms reflected here.
For IFPTE Local 21
Name: __________________________
Title: __________________________
Date: __________________________
For City of Hayward
Name: __________________________
Title: __________________________
Date: __________________________
Bargaining Unit Representative
Name: __________________________
Title: __________________________
Date: __________________________
Human Resources / Labor Relations
Name: __________________________
Title: __________________________
Date: __________________________
Attachment IV
211
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 26-165
DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and Service Employees International Union, Local 1021 Clerical Unit Deferring the Cost of Living Adjustment Increase Due the Pay Period Including July 1, 2026, and Authorizing the City Manager to Execute the Agreement
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) approving a Side Letter of Agreement (Attachment IV) between the City of Hayward and the Service Employees International Union, Local 1021 Clerical Unit (SEIU Clerical) deferring the Cost-of-Living Adjustment (COLA) increase from the beginning of fiscal year 2026-27 to the end of fiscal year 2026-27 to create salary savings for the upcoming fiscal year.
SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. The City and SEIU Clerical met and conferred in good faith and reached tentative agreement. SEIU Clerical is due a COLA increase effective the pay period including July 1, 2026. SEIU Clerical represented employees have agreed to defer the COLA increase for all SEIU Clerical represented classifications that are not entirely funded through enterprise funds. The COLA increase is initially scheduled at the start of fiscal year 2026- 27 and will be deferred to the end of fiscal year 2026-27; effective the start of the pay period containing June 30, 2027. If approved, the proposed agreement would result in a City savings of approximately $594,000 in fiscal year 2026-27. As part of this agreement, the City agrees not to exercise its right to layoff employees in the SEIU Clerical bargaining unit beginning upon ratification of the tentative agreement by SEIU Clerical through and including June 30, 2027.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Tentative Agreement
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File #:CONS 26-165
Attachment IV Side Letter of Agreement
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DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT: Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and Service Employees International Union, Local 1021 Clerical Unit Deferring the COLA Increase Due the Pay Period Including July 1, 2026, and Authorizing the City Manager to Execute the Agreement
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) approving a Side Letter of Agreement (Attachment IV) between the City of Hayward and the Service Employees International Union, Local 1021 Clerical Unit (SEIU Clerical) deferring the Cost-of-Living Adjustment (COLA) increase from the beginning of fiscal year 2026-27 to the end of fiscal year 2026-27 to create salary savings for the upcoming fiscal year.
SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. The City and SEIU Clerical met and conferred in good faith and reached tentative agreement. SEIU Clerical is due a COLA increase effective the pay period including July 1, 2026. SEIU Clerical represented employees have agreed to defer the COLA increase for all SEIU Clerical represented classifications that are not entirely funded through enterprise funds. The COLA increase is initially scheduled at the start of fiscal year 2026-27 and will be deferred to the end of fiscal year 2026-27; effective the start of the pay period containing June 30, 2027. If approved, the proposed agreement would result in a City savings of approximately $594,000 in fiscal year 2026-27. As part of this agreement, the City agrees not to exercise its right to layoff employees in the SEIU Clerical bargaining unit beginning upon ratification of the tentative agreement by SEIU Clerical through and including June 30, 2027.
FISCAL IMPACT
The proposed agreement includes a projected savings of $594,000 in Fiscal Year 2026-27.
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BACKGROUND
In response to the City’s current financial state, the City implemented a number of cost saving measures, including but not limited to: a transfer of Measure C funds; a use of OPEB Trust fund balance; use of CDBG funds; update of master fee schedule; cost reductions and revenue offsets in the Navigation Center; maintaining the FY 2025-26 worker’s compensation transfer amount into FY 2026-27 resulting in use of fund balance in the Worker’s Compensation Fund; public safety overtime reductions; and other police department savings. Even after all these measures are assumed, the City still projects a funding gap that needs to be closed by either labor concessions or departmental cost reductions or a combination of both.
In addition, all bargaining groups in the City were asked for a concession equivalent to forgoing upcoming scheduled COLA increases. Cost savings contributed by bargaining groups are critical to the City’s fiscal health as employee salaries and benefits costs make up over 90% of the General Fund budget.
In accordance with the Memorandum of Understanding (MOU) between the City and SEIU Clerical, there is a scheduled COLA increase due for all SEIU Clerical represented employees in the pay period including July 1, 2026.
DISCUSSION
In partnership with the City to help address the current financial situation, SEIU Clerical and the City entered into a tentative agreement which was subsequently ratified by SEIU Clerical’s membership on April 16, 2026. The tentative agreement defers the scheduled COLA increases, for all classifications that are not entirely funded through enterprise funds, to the beginning of the pay period including June 30, 2027; creating a full fiscal years’ worth of salary savings from the bargaining unit. In addition, the agreement provides layoff protection for SEIU Clerical represented employees from April 16, 2026, through and including June 30, 2027 with the exception of a maximum of two employees represented by SEIU Clerical associated with restructuring of the jail operations. The agreement includes a clause for concession parity; should another represented, non-safety unit agree to concession terms that 1) include layoff protections, and 2) result in less savings for the City as a percentage of that other bargaining unit’s total base wages, SEIU Clerical may elect to accept the terms of that agreement rather than the terms reflected here.
The City acknowledges and appreciates the collaborative engagement of SEIU Clerical in agreeing to these concessions despite being in a closed contract period. This partnership reflects a shared commitment to addressing the organization’s fiscal challenges and maintaining service continuity for the community.
STRATEGIC INITIATIVES
This agenda item is an operational item and does not relate to one of the Council’s Strategic Initiatives.
215
NEXT STEPS
Staff will finalize the documents and obtain necessary review by the City Attorney and respective approval by the City Manager to execute them. The Human Resources Department will work with the Finance Department to implement these changes.
Prepared and Recommended by: Ian Tecson, Director of Human Resources
Approved by:
______________________________
Jennifer Ott, City Manager
216
ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 26-____
Introduced by Council Member _________
RESOLUTION APPROVING A SIDE LETTER OF AGREEMENT WITH SERVICE EMPLOYEES INTERNATIONAL UNION, LOCAL 10 21 CLERICAL UNIT (SEIU) IMPLEMENTATING OF A COLA DEFERRAL IN FISCAL YEAR 2026-27
WHEREAS, the City of Hayward is facing a budget deficit and is taking measures to reduce costs; and
WHEREAS, the City of Hayward must realize cost saving measures for the upcoming fiscal year 2026-27; and
WHEREAS, the City has met and conferred in good faith with representatives of the Service Employees International Union, Local 1021 Clerical Unit (SEIU); and
WHEREAS, SEIU has agreed to deferring the cost- of-living adjustment (COLA) increase, for all SEIU Clerical represented classifications not entirely funded by enterprise funds, to the pay period including June 30, 2027; and the Parties agree to layoff protections in which the City will not exercise its right to layoff employees in the bargaining unit from April 16, 2026, through and including June 30, 2027 ; and the Parties agree to concession parity, should another represented non- safety unit agree to concession terms that 1) also include layoff projections and 2) result in less savings for the City as a percentage of that other bargaining unit’s total base wages, SEIU may elec t to accept the terms of that agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is her eby authorized and directed to execute, on behalf of the City of Hayward, amendments to the Memoranda of Understanding through the related side letter of agreement as soon as administratively possible, and authorizes staff to execute said agreements, a copy of which will be on file in the Office of the City Clerk.
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ATTACHMENT II
IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2026
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
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Attachment III
219
Attachment III
220
Attachment IV
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF HAYWARD
AND
SERVICE EMPLOYEES INTERNATIONAL UNION, LOCAL
1021
Representatives of the City of Hayward and the Service Employees International Union, Local 1021 – Clerical and Related Unit (“SEIU”) have met and conferred in good faith regarding the projected revenue shortfall and budget deficit facing the City of Hayward for FY 2026-2027 and temporary measures necessary to address the projected General Fund shortfall. In partnership to stabilize City finances while maintaining essential services, the parties agree to the terms contained in this Side Letter of Agreement (“Agreement”). The Agreement amends specific pr ovisions of the current Memoranda of Understanding between the City and SEIU, through June 30, 2027 (the “SEIU Clerical MOU”).
Except where specifically modified below, all other terms of the SEIU Clerical MOU remain unchanged. Where conflicts exist between this Agreement and prior side letters or MOU language, this Agreement supersedes them for the duration specified. The terms become effective the first full pay period following City Council approval unless otherwise stated.
1) Effective following City Council adoption of this agreement, Section 9.01 of the SEIU Clerical MOU will be amended as follows:
9.01 Salaries
Salaries for classifications in the representation unit shall be as enumerated in Appendix A to this MOU. In addition to the increased cost of City provided benefits, including retirement, medical, dental and vision, all bargaining unit salary range increases shall be as follows:
Effective July 29, 2024, base wages for employees represented by the Union shall be increased by six percent (6%).
Effective the pay period including July 1, 2025, base wages for employees represented by the Union shall be increased by four percent (4%).
Effective the pay period including July 1, 2026, base wages for employees represented by the Union in classifications for which every position is funded entirely through enterprise funds shall be increased by three percent 221
Attachment IV
(3%). For all other employees represented by the Union, base wages shall be increased by three percent (3%) effective the pay period that includes June 30, 2027. No employee shall receive more than a three percent (3%) base salary increase in FY2026-27 under this contract section.
2) The City shall not exercise its right to layoff employees in SEIU-represented classifications in the Clerical and Related Unit for the period beginning April 16, 2026 through and including June 30, 2027, except that the City may lay off no more than two (2) employees represented by the Union as part of a restructuring of the City’s jail operations.
For Service Employees International Union,
Local 1021 – Clerical and Related Unit: For City of Hayward:
Jennifer Ott, City Manager
Burke Dunphy, Chief Negotiator
Ian Tecson, Director of Human
Resources
Dated
Dated
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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 26-166
DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and the Hayward Police Officers’Association Modifying Cost of Living Adjustment Increases and Extending Previous Shift Change Agreements; and Authorizing the City Manager to Execute the Agreement
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) approving a Side Letter of Agreement (Attachment IV) between the City of Hayward and the Hayward Police Officers’Association (HPOA) for modifying the Cost-of-Living Adjustment (COLA) increases in fiscal years 2026-27; 2027-28; and 2028- 29 to create salary savings through the term of the current contract.
SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. The City and HPOA met and conferred in good faith and reached tentative modifying scheduled COLA increases for all HPOA represented classifications. Under the current Memorandum of Understanding, the COLA increases are scheduled for a minimum of five percent (5%) and maximum of seven percent (7%) in the pay periods including January 1, 2027, and January 1, 2028; and based on salary survey in the pay period containing January 1, 2029. The parties agree to modify the COLA increase to four and one-half percent (4.5%) in the pay periods including January 1, 2027, and January 1, 2028; and to limit the COLA increase to a minimum of two percent (2%) and maximum of three percent (3%) in the pay period containing January 1, 2029. In addition, the parties agree to extend a previously agreed-upon side letter regarding shift changes, originally set to expire on December 31, 2026; now extended through December 31, 2027. If approved, the proposed agreement would result in new General Fund savings of approximately $1.4 million for FY 2026-27 for a total of $2.4 million in FY 2026-27 and a total of $5.6 million for the term of the contract.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Tentative Agreement
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File #:CONS 26-166
Attachment IV Side Letter of Agreement
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DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT: Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and the Hayward Police Officers’ Association Modifying Cost of Living Adjustment Increases and Extending Previous Shift Change Agreements; and Authorizing the City Manager to Execute the Agreement
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) approving a Side Letter of Agreement (Attachment IV) between the City of Hayward and the Hayward Police Officers’ Association (HPOA) modifying the Cost-of-Living Adjustment (COLA) increases in fiscal years 2026-27; 2027-28; and 2028-29 to create salary savings through the term of the current contract.
SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. The City and HPOA met and conferred in good faith and reached tentative modifying scheduled COLA increases for all HPOA represented classifications. Under the current Memorandum of Understanding, the COLA increases are scheduled for a minimum of five percent (5%) and maximum of seven percent (7%) in the pay periods including January 1, 2027, and January 1, 2028; and based on salary survey in the pay period containing January 1, 2029. The parties agree to modify the COLA increase to four and one-half percent (4.5%) in the pay periods including January 1, 2027, and January 1, 2028; and to limit the COLA increase to a minimum of two percent (2%) and maximum of three percent (3%) in the pay period containing January 1, 2029. In addition, the parties agree to extend a previously agreed-upon side letter regarding shift changes, originally set to expire on December 31, 2026; now extended through December 31, 2027. If approved, the proposed agreement would result in new General Fund savings of approximately $1.4 million for FY 2026-27 for a total of $2.4 million in FY 2026-27 and a total of $5.6 million for the term of the contract.
FISCAL IMPACT
The proposed agreement, including the previously agreed-upon side letter regarding shift changes, results in an estimated salary and overtime savings to the General Fund of:
225
• $1 million in fiscal year 2025-26 from overtime reductions • $2.4 million in fiscal year 2026-27 ($2 million in overtime reductions and $400,000 in COLA modifications), including $1.4 million in new cost savings • $1.8 million in fiscal year 2027-28 ($1 million in overtime reductions and $800,000 in COLA modifications)
• $400,000 in fiscal year 2028-29 in COLA modifications
These savings represent a projected total savings of approximately $5.6 million for the term of the contract, including current savings from FY 2025-26.
BACKGROUND
In response to the City’s current financial state, the City implemented a number of cost saving measures, including but not limited to: a transfer of Measure C funds; a use of OPEB Trust fund balance; use of CDBG funds; update of master fee schedule; cost reductions and revenue offsets in the Navigation Center; maintaining the FY 2025-26 worker’s compensation transfer amount into FY 2026-27 resulting in use of fund balance in the Worker’s Compensation Fund; public safety overtime reductions; and other police department savings. Even after all these measures are assumed, the City still projects a funding gap that needs to be closed by either labor concessions or departmental cost reductions or a combination of both.
In addition, all bargaining groups in the City were asked for a concession equivalent to forgoing upcoming scheduled COLA increases. Cost savings contributed by bargaining groups are critical to the City’s fiscal health as employee salaries and benefits costs make up approximately 90% of the General Fund budget.
In accordance with the Memorandum of Understanding (MOU) between the City and HPOA, there are scheduled COLA increases due for all HPOA represented employees the pay periods containing January 1, 2027; January 1, 2028; and January 1, 2029.
Furthermore, in an effort to mitigate overtime expenses within the City’s Police Department, in calendar year 2025, the parties entered into a side letter agreement to modify the work shifts for HPOA represented staff. The side letter is effective for calendar year 2026.
DISCUSSION
In partnership with the City to help address the current financial situation, HPOA and the City entered into a tentative agreement which was subsequently ratified by HPOA’s membership on April 13, 2026. The tentative agreement reduces the scheduled COLA increases, for all classifications in fiscal years 2026-27; 2027-28; and 2028-29; to create structural salary savings to the General Fund through the term of the current contract.
226
In addition, the side letter of agreement for shift changes signed by the parties on December 31, 2025, will be extended from December 31, 2026 through December 31, 2027 to continue projected savings in overtime costs.
The City acknowledges and appreciates the collaborative engagement of HPOA in agreeing to these concessions despite being in a closed contract period. This partnership reflects a shared commitment to addressing the organization’s fiscal challenges and maintaining service continuity for the community.
STRATEGIC INITIATIVES
This agenda item is an operational item and does not relate to one of the Council’s Strategic Initiatives.
NEXT STEPS
Staff will finalize the documents and obtain necessary review by the City Attorney and respective approval by the City Manager to execute them. The Human Resources Department will work with the Finance Department to implement these changes.
Prepared and Recommended by: Ian Tecson, Director of Human Resources
Approved by:
______________________________
Jennifer Ott, City Manager
227
ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 26-____
Introduced by Council Member _________
RESOLUTION APPROVING A SIDE LETTER OF AGREEMENT WITH THE HAYWARD POLICE OFFICERS’ ASSOCIATION FOR IMPLEMENTATION OF A COLA REDUCTION IN FISCAL YEARS 2026-27; 2027-28; AND 2028-29
WHEREAS, the City of Hayward is facing a budget deficit and is taking measures to reduce costs; and
WHEREAS, the City of Hayward must realize cost saving measures for the upcoming fiscal year 2026-27; and
WHEREAS, the City has met and conferred in good faith with representatives of the Hayward Police Officers’ Association (HPOA); and
WHEREAS, HPOA has agreed to reduce the cost -of-living adjustment (COLA) increases, for all HPOA represented classifications from a minimum of five percent (5%) and maximum of seven percent (7%) to a flat four and one- half percent (4.5%) for contract increases due the pay periods including J anuary 1, 2027, and J anuary 1, 2028; and to limit the COLA increase to a minimum of two percent (2%) and maximum of three percent (3%) in the pay period containing January 1, 2029.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is her eby authorized and directed to execute, on behalf of the City of Hayward, amendments to the Memoranda of Understanding through the related side letter of agreement as soon as administratively possible, and authorizes staff to execute said agreements, a copy of which will be on file in the Office of the City Clerk.
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ATTACHMENT II
IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2026
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
229
Attachment III
230
Attachment III
231
Attachment III
232
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF HAYWARD
AND
HAYWARD POLICE OFFICERS’ ASSOCIATIOJN
Representatives of the City of Hayward and the Hayward Police Officers’ Association (“HPOA”) have met and conferred in good faith regarding the projected revenue shortfall and budget deficit facing the City of Hayward for FY 2026-2027 and future fiscal years and measures necessary to address these projected General Fund shortfalls. In partnership to stabilize City finances while maintaining essential services, the parties agree to the terms contained in this Side Letter of Agreement (“Agreement”). The Agreement amends specific provisions of the current Memoranda of Understanding between the City and HPOA, through December 31, 2029 (the “HPOA MOU”).
Except where specifically modified below, all other terms of the HPOA MOU remain unchanged. Where conflicts exist between this Agreement and prior side letters or MOU language, this Agreement supersedes them for the duration specified. The terms become effective the first full pay period following City Council approval unless otherwise stated. 1) EƯective following City Council adoption of this agreement, Section 8.00 of the HPOA MOU will be amended as follows:
8.00 SALARIES
Salaries for classifications in this representation unit shall be enumerated in Appendix A to this Memorandum of Understanding.
Bargaining unit salaries eƯective the pay period including July 1, 2024, through the last day of the pay period preceding the pay period that includes July 1, 2025 shall be increased by ten and thirty two one hundredths percent (10.32%). During this same period, the salaries for the Police Lieutenant classification shall be increased by an additional one and one quarter percent (1.25%) for a total increase of eleven and fifty-seven one hundredths percent (11.57%).
Bargaining unit salaries eƯective the pay period including July 1, 2025 through the last day of the pay period preceding the pay period that includes January 1, 2026 shall be increased by five and one half percent (5.5%). During this same period the salaries for the Police Lieutenant classification shall be increased by an additional one and one quarter percent (1.25%) for a total increase of six and three-quarters percent (6.75%).
Attachment IV
233
The bargaining unit’s base wage shall be increased the pay period including January 1, 2026, through the last day of the pay period preceding the pay period that includes January 1, 2027, based on the established salary survey formula below but shall not exceed seven percent (7%).
The salaries for the Police Lieutenant classification shall be increased eƯective the pay period including July 1, 2026, by one and one quarter percent (1.25%).
The bargaining unit’s base wage shall be increased the pay period including January 1, 2027, through the last day of the pay period preceding the pay period that includes January 1, 2028, by four and one half percent (4.5%) based on the established salary survey formula below but shall not be less than five percent (5%) and shall not exceed seven percent (7%).
The salaries for the Police Lieutenant classification shall be increased eƯective the pay period including July 1, 2027, by one and one quarter percent (1.25%).
The bargaining unit’s base wage shall be increased the pay period including January 1, 2028, through the last day of the pay period preceding the pay period that includes January 1, 2029, by four and one half percent (4.5%) based on the established salary survey formula below but shall not be less than five percent (5%) and shall not exceed seven percent (7%).
The bargaining unit’s base wage shall be increased the pay period including January 1, 2029, through the last day of the pay period preceding the pay period that includes January 1, 2030, based on the established salary survey formula below but shall not be less than two percent (2%) and shall not exceed three percent (3%).
Salary Survey
Base salary for all classifications covered by this Memorandum of Understanding (MOU) increased by the diƯerence between the total compensation of a Hayward Police OƯicer and the average of the total compensation for Police OƯicer of the top four (4) agencies based on a survey of salary and benefits. The percentage increase shall be determined by (Total compensation average of top four (4) agencies - Total compensation of Hayward Police OƯicer)/ Total compensation of the Hayward Police OƯicer, rounded to the nearest one hundredth percent (.01%). Hayward may be included in the top four (4) agencies should its compensation so indicate.
Surveyed agencies shall be: Santa Clara, Vallejo, Palo Alto, Richmond, Fremont, Berkeley, Daly City, San Mateo, Alameda, and San Leandro.
The salary survey shall be completed by November 30 of each year and include all salaries and benefits eƯective on January 1, of each year respectively, and approved by the agencies board or council. If on July 1 of each year, any of the above agencies reaches a settlement retroactive on or prior to January 1 of that respective year, thereby changing the average of the top four (4) agencies, a one-time adjustment will be made no later than August 1 of that respective year to salaries to reflect that change. Even withstanding the exceptions outlined above, the salary survey itself shall be completed annually regardless of the years where salary adjustments are not linked to it.
Attachment IV
234
For purposes of this agreement and any mutually agreed upon successor Memorandum of Understanding, "total compensation" shall mean the top step OƯicer base monthly salary; employer-paid member CalPERS contributions; total employee-paid voluntary cost sharing of employer CalPERS contributions; holiday pay; uniform allowance; education incentive pay applicable to all Police OƯicers; continuous service pay applicable to all Police OƯicers; shift diƯerential pay applicable to all Police OƯicers; employee-paid contributions towards the City's OPEB liability; employer contributions towards the employee's dental, life, long term disability (LTD)/short term disability (STD), and vision care insurance premiums; and the amount the employer pays for premiums for family level health coverage. The amount to be included in the survey for family level health coverage for the City of Hayward Police OƯicers shall be the amount of the family premium for the health plan in which the plurality of the HPOA members are enrolled. The amount to be included in the survey for employee's dental, life, LTD/STD, and vision care insurance premiums shall be the maximum amount payable for each benefit by the respective Cities. The amount to be included in the survey for educational/POST incentive pay and continuous service pay shall be the maximum amount allowable for each incentive under each separate salary survey City's MOU. The amount to be included in the survey for shift diƯerential pay shall be one third (1/3) of the maximum allowable under each separate salary survey City's MOU. 2) Shift Change Side Letter : The Parties will extend the terms of the December 31, 2025 shift change side letter from December 31, 2026 through December 31, 2027. During the term of the shift change side letter, the Parties will meet to discuss the impacts of the shift change on special assignments within the Police Department.
For Hayward Police Officers’ Association: For City of Hayward:
Jennifer Ott, City Manager
Burke Dunphy, Chief Negotiator
Ian Tecson, Director of Human
Resources
Dat
ed Dat
ed
Attachment IV
235
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: CONS 26-168
DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT
Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and Both Units Represented by the International Association of Firefighters, Local 1909: the Hayward Firefighters Association and the Hayward Fire Officers Association, for Deferring Cost of Living Adjustment Increases and Extending Previous Cost Saving Agreements; and Authorizing the City Manager to Execute the Agreement
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) approving a Side Letter of Agreement (Attachment III) between the City of Hayward and both the Hayward Firefighters Association and the Hayward Fire Officers Association, represented by the International Federation of Firefighters, Local 1909 (Local 1909) for continuing Cost-of-Living Adjustment (COLA) increase deferrals and extending previously agreed-upon cost saving measures through fiscal year 2026-27; to create additional savings through the upcoming fiscal year.
SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. The City and Local 1909 met and conferred in good faith and reached tentative agreement in which Local 1909 represented employees will continue cost saving measures through fiscal year 2026-27, through June 30, 2027. In addition to the previous projected savings of $3.1 million in fiscal year 2025-26 and the already agreed upon savings of $2.9 million in fiscal year 2026-27, the extension of this agreement is projected to provide an additional savings of $3.3 million in fiscal year 2026-27 for a total of $6.2 million in General Fund cost savings for fiscal year 2026-27. The Union has agreed to enter discussions with the possibility of continuing the savings into future years after meeting and reviewing the City’sfinancial situation. In addition, the parties agreed to maintain the California Public Employees’Retirement System (CalPERS) employee-paid employer cost share as detailed below.
ATTACHMENTS
Attachment I Staff Report
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Attachment II Resolution
Attachment III Side Letter of Agreement
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DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Human Resources
SUBJECT: Adopt a Resolution Approving a Side Letter of Agreement between the City of Hayward and Both Units Represented by the International Association of Firefighters, Local 1909: the Hayward Firefighters Association and the Hayward Fire Officers Association, Deferring Cost of L iving Adjustment Increases and Extending Previous Cost Saving Agreements; and Authorizing the City Manager to Execute the Agreement
RECOMMENDATION
That the City Council adopts a resolution (Attachment II) approving a Side Letter of Agreement (Attachment III) between the City of Hayward and both the Hayward Firefighters Association and the Hayward Fire Officers Association, represented by the International Federation of Firefighters, Local 1909 (Local 1909) for continuing Cost-of-Living Adjustment (COLA) increase deferrals and extending previously agreed-upon cost saving measures through fiscal year 2026-27; to create additional savings through the upcoming fiscal year.
SUMMARY
The City of Hayward is facing a budget deficit and is taking measures to reduce costs. The City and Local 1909 met and conferred in good faith and reached tentative agreement in which Local 1909 represented employees will continue cost saving measures through fiscal year 2026-27, through June 30, 2027. In addition to the previous projected savings of $3.1 million in fiscal year 2025-26 and the already agreed upon savings of $2.9 million in fiscal year 2026 -27, the extension of this agreement is projected to provide an additional savings of $3.3 million in fiscal year 2026-27 for a total of $6.2 million in General Fund cost savings for fiscal year 2026-27. The Union has agreed to enter discussions with the possibility of continuing the savings into future years after meeting and reviewing the City’s financial situation. In addition, the parties agreed to maintain the California Public Employees’ Retirement System (CalPERS) employee-paid employer cost share as detailed below.
FISCAL IMPACT
This proposed agreement results in an estimated additional salary and overtime savings to the General Fund of $3.3 million for FY2026-27 ($2 million in overtime reductions and $1.3 238
million in COLA modifications) , in addition to the $2.9 million agreed upon in December 2025 for a total savings in FY2026-27 of $6.2 million.
BACKGROUND
In response to the City’s current financial state, the City implemented a number of cost saving measures, including but not limited to: a transfer of Measure C funds; a use of OPEB Trust fund balance; use of CDBG funds; update of master fee schedule; cost reductions and revenue offsets in the Navigation Center; maintaining the FY 2025-26 worker’s compensation transfer amount into FY 2026-27 resulting in use of fund balance in the Worker’s Compensation Fund; public safety overtime reductions; and other police department savings. Even after all these measures are assumed, the City still projects a funding gap that need s to be closed by either labor concessions or departmental cost reductions or a combination of both.
In addition, all bargaining groups in the City were asked for a concession equivalent to forgoing upcoming scheduled COLA increases. Cost savings contributed by bargaining groups are critical to the City’s fiscal health as employee salaries and benefits costs make up approximately 90% of the General Fund budget.
In accordance with the Mem orandum of Understanding (MOU) between the City and Local 1909 for both Firefighters and Fire Officers , there are scheduled COLA increases due for all Local 1909 represented employees the pay periods containing January 1 of each year based on the salary formula provided in the MOU.
In an effort to mitigate costs, in December 2025, the parties entered into a side letter of agreement to delay the three and eighty -two hundredths (3.82%) increase due to their members the pay period including January 1, 2026. Instead, the parties agreed the Unions will take a partial increase at the start of Fiscal Year 2026-2027 of one and one-half percent (1.5%) and delay the remaining (2.32%) to the end of the calendar year. The Parties also agreed to temporarily modify minimum staffing coverage by a total temporary reduction of five (5) through browning-out service companies; and to temporarily increase the employer- paid portion to CalPERS by an additional two percent (2%) effective approximately July 1, 2026. Additionally, effective January 1, 2028, the number of employees that may simultaneously use vacation will increase by one (1); and sick leave accrual rates will increase aligned with employees’ years of service.
DISCUSSION
In partnership with the City to help address the current and ongoing financial situation, Local 1909 and the City entered into an updated agreement which was subsequently ratified by Local 1909’s membership on April 11, 2026. The agreement builds upon the previously adopted side letter and continues a series of temporary and ongoing measures designed to support financial stability, while maintaining critical fire and emergency response services.
The updated agreement continues temporary modifications to minimum staffing associated with brownout provisions through June 30, 2027. It also extends the deferral of the January 1, 239
2026 salary adjustment through the end of fiscal year 2026 -27; where initially the parties agreed the Unions will take a partial increase at the start of Fiscal Year 2026-2027 of one and one-half percent (1.5%) and delay the remaining (2.32%) to the end of the calendar year 2026.
The updated agreement reflects the full COLA increase of three and eighty -two hundredths percent (3.82%) is now moved to the pay period including July 1, 2027, creating a full fiscal year’s savings in salary for the City.
In addition, the agreement maintains the current employee cost- sharing structure for retirement benefits at fifteen percent (15%) and continues previously established adjustments related to scheduling and leave administration.
Unless otherwise specified the temporary provisions included in the agreement will sunset on June 30, 2027. Certain ongoing provisions, including retirement cost-sharing and select leave- related updates, will remain in effect.
The City acknowledges and appreciates the collaborative engagement of Local 1909 in agreeing to continue these concessions despite b eing in a closed contract period. This partnership reflects a shared commitment to addressing the organization’s fiscal challenges and maintaining service continuity for the community.
STRATEGIC INITIATIVES
This agenda item is an operational item and does not relate to one of the Council’s Strategic Initiatives.
NEXT STEPS
Staff will finalize the documents and obtain necessary review by the City Attorney and respective approval by the City Manager to execute them. The Human Resources Department will work with the Finance Department to implement these changes.
Prepared and Recommended by: Ian Tecson, Director of Human Resources
Approved by:
______________________________
Jennifer Ott, City Manager
240
ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 26-____
Introduced by Council Member _________
RESOLUTION APPROVING A SIDE LETTER OF AGREEMENT WITH THE
BARGAINING UNITS REPRESENTED BY THE INTERNATIONAL ASSOC IATION OF FIREFIGHTERS, LOCAL 1909: THE HAYWARD FIREFIGHTERS
ASSOCIATION AND THE HAYWARD FIRE OFFICERS ASSOCIATION ; TO
AMEND THE CURRENT MEMORANDA OF UNDERSTANDING
WHEREAS, the City of Hayward is facing a budget deficit and is taking measures to reduce costs; and
WHEREAS, the City of Hayward must realize cost saving measures for the upcoming fiscal year 2026-27; and
WHEREAS, the City has met and conferred in good faith with the International Association of Firefighters, Local 1909 (Local 1909) as representatives of both the Hayward Firefighters Association and the Hayward Fire Officers Association; and
WHEREAS, the parties agree to continue temporary changes to the respective Memoranda of Under standing (MOU) through the end of fiscal year 2026 -27; including a temporary reduction in minimum staffing and deferring cost- of-living adjustment (COLA) increases from January 1, 2026 through and including the last full pay period prior to July 1, 2027; and the parties also agree to increase sick leave accrual and the number of employees that can take vacation simultaneously.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that the City Manager is hereby authorized and directed to execute, on behalf of the City of Hayward, amendments to the Memoranda of Understanding through the related side letter of agreement as soon as administratively possible, and authorizes staff to execute said agreements, a copy of which will be on file in the Office of the City Clerk.
241
ATTACHMENT II
IN COUNCIL, HAYWARD, CALIFORNIA _______________________, 2026
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
242
Local 1909, Firefighters and Fire Officers Side Letter of Agreement
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF HAYWARD
AND
THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS (IAFF)
LOCAL 1909 & HAYWARD FIRE OFFICERS ASSOCIATION (HFOA)
Representatives of the City of Hayward and IAFF, Local 1909 have met and conferred in good faith regarding the projected revenue shortfall and budget deficit facing the City of Hayward for FY 2026 27 and temporary measures necessary to address the projected FY2026 27 General Fund shortfall. The parties previously entered into a side letter agreement memorializing efforts to address the Citys FY2025 26 General Fund deficit (the Original Side Letter). In partnership to stabilize City finances while maintaining essential fire and emergency services, the parties agree to the terms contained in this Side Letter of Agreement (Agreement). The Agreement amends specific provisions of the current Memoranda of Understanding between the City and IAFF, Local 1909, Firefighter and Fire Officers Units, through December 31, 2029 (each a Current MOU and collectively, the Current MOUs) and the Original Side Letter.
Except where specifically modified below, all other terms of the Current MOUs remain unchanged. Where conflicts exist between this Agreement and prior side letters or MOU language, this Agreement supersedes them for the duration specified. The terms become effective the first full pay period following City Council approval unless otherwise stated.
1. Formal Fiscal Reassessment Process
To ensure transparency, accountability, and joint planning, the parties agree to the following:
A. Bimonthly Fiscal Review Meetings
Beginning January 2026, the parties shall meet every two months to review:
Citywide reserve and cash position
Fire Department sworn overtime expenditures and savings Progress in achieving the 2026 temporary savings targets New or anticipated revenues
B. Formal Reassessment:
a. No later than March 2027, the Parties will reconvene to discuss options for addressing salary increases in FY2027 28, including
i. Capping the survey based salary increases
ii. Splitting implementation of salary increases over time Attachment III
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Local 1909, Firefighters and Fire Officers Side Letter of Agreement iii. Increasing employee CalPERS contributions
iv. Extending the minimum staffing reduction.
b. By written mutual agreement, the parties may extend temporary modifications described herein beyond June 30, 2027.
c. Nothing in this section waives the Unions right to negotiate over mandatory subjects of bargaining.
d. The above listed items are topics for discussion and nothing in this section is or shall be construed as an agreement by either Party to any of these options.
2. Temporary Assignment Brownout
a. In addition to the other temporary measures detailed below, the parties agree to brownout the Public Information Officer (PIO) assignment, effective beginning the pay period following City Council approval of this Agreement. This temporary assignment brownout shall sunset on June 30, 2027.
3. Section 4.05 of the Current MOUs will be amended as set forth below:
4.05 Minimum Staffing
Contingent upon continuation of contractual services with Fairview Fire Protection District, the organization and staffing of the Department shall consist of nine (9) engine companies and two (2) truck companies, and one specialized rescue squad. Each engine company and truck company shall be staffed with a minimum complement of three (3): a Captain, an Apparatus Operator and a Firefighter. The specialized rescue company (squad) shall be staffed with a minimum complement of two (2) Firefighters.
Effective January 1, 2025, daily staffing shall consist of a minimum of thirty eight (38) personnel and a combined total of twelve (12) companies, and one (1) specialized rescue squad. Each engine and truck company shall be staffed with three (3) personnel qualified to function in the following roles: one (1) Captain, one (1) Apparatus Operator, and one (1) Firefighter. The specialized rescue squad shall be staffed with a minimum complement of two (2) Firefighters.
Notwithstanding any other provision of this Memorandum of Understanding, the Fire Chief or their designated representative may temporarily decrease for any reason the number of engine companies in active service for a portion of any given day provided that no more than two (2) engine companies are out of service at any one time for a period not to exceed eight (8) hours.
The following procedures will be observed on those occasions when Captains meetings or training sessions for Captains are scheduled by the Department. During the course of such meetings or training sessions two (2) engines may be temporarily taken out of service as provided in paragraph two (2) of this section above. Acting Captains and acting Apparatus Operators shall be designated from the on duty platoon and moved to fill vacancies and associated temporary re assignments caused by attendance at the meeting or training session. Acting Captains and acting Apparatus Operators shall be compensated in accordance with Section 7.10 of this Memorandum of Understanding and shall be designated by the Battalion Chief from the respective eligible lists. Off duty personnel will not be recalled to duty on an overtime basis during Captains meetings and training sessions for Captains except at the discretion of the Fire Chief.
Before January 1, 2025, i f the contract with the Fairview Fire Protection District is discontinued, minimum staffing shall revert to eight (8) engine companies and two (2) truck companies and from thirty three (33) to thirty (30) staff members. There shall be no demotion as a result of any such reduction in staff except by attrition.
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Local 1909, Firefighters and Fire Officers Side Letter of Agreement Effective January 1, 2025, if the contract with the Fairview Fire Protection District is discontinued, minimum staffing shall revert to a combined total of eleven (11) companies and one (1) specialized rescue squad and from thirty eight (38) to thirty five (35) staff members. There shall be no demotion as a result of any such reduction in staff except by attrition.
Notwithstanding the foregoing, the following provisions shall be effective beginning in the pay period including City Council adoption of this Agreement and shall sunset on June 30, 2027, unless the Parties mutually agree in writing to extend or modify this Agreement:
1) The following companies shall be temporarily browned out:
a. Engine 11: One (1) Captain, One (1) Apparatus Operator, One (1) Firefighter b. Squad 2: Two (2) Firefighters
2) Minimum daily staffing shall be thirty three (33) personnel with a combined total of eleven (11) companies, reflecting the temporary brownouts listed above. 3) No promotions will be rescinded, and no employees shall be demoted as a result of the suppression company (Engine 11 and Squad 2) temporary brownouts set forth above. 4) All affected personnel will be reclassified for calendar year 2026 into:
a. Route Captain
b. Route Apparatus Operator
c. Route Firefighter
5) For the period of January 1, 2026 through June 30, 2027, the Fairview Fire Protection District contingency language will be updated as follows:
If the contract with the Fairview Fire Protection District is discontinued, minimum staffing shall revert to eight (8) engine companies and two (2) truck companies and from thirty three (33) to thirty (30) staff members. There shall be no demotion as a result of any such reduction in staff except by attrition.
6) All other language in this section regarding acting assignments, captains meetings, and training, contingencies remains unchanged.
4. Section 6.01 of the Current MOUs will be amended as set forth below:
6.01 Retirement Plan
The City shall continue that contract with the Public Employees Retirement System (PERS), and all amendments thereto, which provide retirement benefits to members of the representation unit presently in effect. Effective January 1, 2001, the City amended its contrac t with the PERS to provide Bargaining Unit employees with the 3% @ 50 retirement formula for PERS Classic members. Effective January 1, 2013, the contract was amended to provide a 2% @ 50 or 2.7% @ 57 retirement formula for PERS PEPRA members.
Optional Benefits, Cost Sharing (PERS Contributions)
(A) Employees Hired Before January 1, 2013
Attachment III
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Local 1909, Firefighters and Fire Officers Side Letter of Agreement The provisions described in this Section A apply only to CalPERS eligible employees hired before January 1, 2013, or to eligible employees hired after that date who qualify for pension reciprocity pursuant to Government Code Section 7522.02 (c). Referred to as CalPERS Classic Members. The City shall continue to provide CalPERS Classic Me mbers with retirement benefits in accordance with the existing contract with PERS, and all amendments to that contract, including:
1. Section 21362.2 3% @ 50 Retirement Formula;
2. Section 20042 Final Compensation one (1) year;
3. Section 20965 Unused Sick Leave Credit;
4. Section 21547.7 Alternative Death Benefit for Local Fire Members Credited with twenty (20) or More Years of Service;
5. Section 21573 1959 Survivor Benefits Level three (3);
6. Section 21329 2% Annual Cost
of Living Allowance Increase;
7. Section 20516 Member Sharing Cost of Optional Benefit;
8. Section 20903 Additional Service Credit two (2) Years;
9. Section 21551 Pre Retirement Death Benefit to Continue after Remarriage;
10. Section 21027 Military Service Credit for Retired Persons;
11. Section 21024 Military Service Credit for as Public Service;
12. Section 21635 Post Retirement Survivor Allowance to Continue after Remarriage;
13. Section 21624/21626 Post Retirement Survivor Allowance;
14. Section 21620 Retired Death Benefit; and
15. Section 20055 Prior Service.
Upon implementation of this agreement, Classic employees shall continue to pay a total of fifteen percent (15%) of reportable wages to fund employee pensions until such time that a successor agreement is negotiated. This contribution represents the employees fifty percent (50%) of normal cost as determined by CalPERS. The balance, if any, of this contribution shall constitute employee payment of a portion of the employers fifty percent (50%) of normal cost as determined by CalPERS. The fifteen percent (15%) of reportable wages is comprised of the nine percent (9%) mandated CalPERS published employee rate, plus an additional six percent (6%) employee contribution under Government Code Section 20516 Cost Sharing into the employees account that will reduce the City contribution by 6% that would otherwise be required to pay to CalPERS for these employees.
The term normal cost is defined in section 7522.04(g) of the Government Code as the portion of the present value of projected benefits under the defined benefit that is attributable to the current year of service, as determined by the public retirement systems actuary according to the most recently completed valuation.
(B) Employees Hired On or After January 1, 2013
This Section B shall apply to CalPERS eligible employees hired on or after January 1, 2013, who do not qualify for pension reciprocity pursuant to Government Code Section 7522.02(c). Referred to as CalPERS New Members. The retirement plan for these employees shall be the retirement plan which the City is required to provide for new members pursuant to California Public Employees Pension Reform Act of 2013.
i. As required by Government Code Section 7522.25, the safety Option Plan Two (2% @ 50 2.7% @ 57) pension formula shall apply.
Attachment III
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Local 1909, Firefighters and Fire Officers Side Letter of Agreement ii. As required by Government Code Section 7522.32, for the purposes of determining a retirement benefit for these employees, final compensation shall mean the highest average annual pensionable compensation earned during thirty six (36) consecutive months of service. iii. As required by Government Code Section 7522.30, employees shall have an initial contri bution rate of fifty percent (50%) of the total normal cost rate as defined in Section 7522.04 (g). iv. Other contracted benefits include:
1. Section 20965 Unused Sick Leave Credit;
2. Section 21547.7 Alternative Death Benefit for Local Fire Members Credited with twenty (20) or More Years of Service;
3. Section 21573 1959 Survivor Benefits Level three (3);
4. Section 21329 2% Annual Cost of Living Allowance Increase;
5. Section 20516 Member Sharing Cost of Optional Benefit;
6. Section 20903 Additional Service Credit two (2) Years;
7. Section 21551 Pre Retirement Death Benefit to Continue after Remarriage;
8. Section 21027 Military Service Credit for Retired Persons;
9. Section 21024 Military Service Credit for as Public Service;
10. Section 21635 Post Retirement Survivor Allowance to Continue after Remarriage;
11. Section 21624/21626 Post Retirement Survivor Allowance;
12. Section 21620 Retired Death Benefit; and
13. Section 20055 Prior Service.
New members shall continue to pay a total of fifteen percent (15%) of reportable wages to fund their pension until such time that a successor agreement is negotiated. The fifteen percent (15%) of reportable wages is comprised of the CalPERS published employee rate, plus the additional contribution to the Citys employer rate that the City would otherwise be required to pay to CalPERS for these employees. Under Section 20516, the additional contributions are as follows:
Effective the pay period including July 1, 2013 3.75%
Effective the pay period including July 1, 2016 5.25%
Effective the pay period in cluding July 1, 2020 4.50%
Following the 2018 Valuation Report, under Section 20516, effective July 1, 2020, employees contributing contribution will be adjusted to four and one half percent (4.50%). If CalPERS enacts a change to the employee rate as reflected in the Annual Valuation Report, the parties will amend this section to ensure it accurately reflects new members pay a total of fifteen percent (15%) of reportable wages to fund their pension. This contribution represents the employees fifty percent (50%) of normal cost as determined by CalPERS. The balance, if any, of this contribution shall constitute employee payment of a portion of the employers fifty percent (50%) of normal cost as determined by CalPERS.
In no event shall the employee contribution be less than fifty percent (50%) of the total normal cost rate, as required by Government Code Section 7522.30.
Attachment III
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Local 1909, Firefighters and Fire Officers Side Letter of Agreement
5. Section 7.12 of the Current MOU with the IAFF, Local 1909, Fire Officers Unit will be amended as set forth below:
7.12 Salaries
In the pay period that includes January 1 of each year, while the Memorandum of Understanding remains in effect, the City shall provide a salary adjustment for the me mbers of the bargaining unit in the amount that results from application of the salary formula below, except for the caps and exceptions that are referenced within this section:
Except as specified above, b Base salary for all classifications covered by this MOU shall be increased by the difference between the total compensation of a Hayward Firefighter and the average of the total compensation for firefighter of the top four (4) agencies based on a survey of salary and benefits.
Hayward may be included in the top four (4) agencies should its total compensation for firefighter so indicate. The percentage increase shall be determined by (Total Compensation average of top four (4) agencies Total Compensation of Hayward Firefighter)/Base pay of Hayward Firefighter, rounded to the nearest one hundredth of a percent (.01%).
Total Compensation shall mean the sum of the following: top step base monthly salary; employer paid member PERS contributions; education incentive pay applicable to all firefighters; uniform allowance; maximum annual vacation credit; paramedic pay; EMT pay; holiday pay; and health coverage. The amount to be included in the survey for health coverage for the City of Hayward IAFF Local 1909 shall be the amount of the Kaiser Region 1 subscriber +2 premium for the health, dental, and vision plans. For the purpose of this survey, the value of vacation shall be determined as follows: maximum vacation hours divided by twelve (12) multiplied by maximum base hourly rate. For the City of Berkeley only, the longevity pay scale shall be used for the purpose of calculating Total Compensation.
Salary adjustments are to be made annually on the basis of the Survey Formula, the survey shall be completed by November 30th of each year and shall include all salaries and benefits effective on January 1 of each year of the adjustment, and approved by the agencys board or council. If on July 1 of the year of the adjustment, any of the agencies in the survey reaches a settlement retroactive to January 1, thereby changing the average of the top four (4) agencies, a one time adjustment will be
made to salaries to reflect that change within three (3) months of July 1.
For the term of this agreement, salary adjustments will be based on the following cities: Alameda, Berkeley, Daly City, Fremont, Hayward, Palo Alto, Richmond, Alameda County Fire Department, San Mateo Consolidated, Santa Clara, and Vallejo.
Notwithstanding the foregoing, the 3.82% salary adjustment to which members of Local 1909 would be entitled effective January 1, 2026, based on the criteria set forth above, will be deferred as follows:
- 3.82% will be deferred effective January 1, 2026 through and including the last full pay period prior to July 1, 2027;
Unless otherwise mutually agreed, the salary survey will be conducted for calendar year 2027 consistent with the terms set forth above and will be the subject of discussions between the City and the Union scheduled for no later than March 2027. Any wage increases resulting from the calendar year 2027 survey will be implemented in the pay period that includes July 1, 2027 unless otherwise mutually agreed. Any other modifications to this section, including any additional salary increase deferrals shall only be effective if they are part of a signed, mutual written agreement that has been approved by both Local 1909s membership and the City Council.
Attachment III
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Local 1909, Firefighters and Fire Officers Side Letter of Agreement The base rate for the classification of Battalion Chief shall be fourteen and one half percent (14.5%) greater than the highest ranking classification within the MOU between the City of Hayward and the Hayward Firefighters IAFF Local 1909, with applicable conversion for forty (40) hour versus fifty six (56) hour rates.
The base rate for the classification of Fire Training Officer and the Fire Marshal shall be ten percent (10%) greater than the base rate for Battalion Chief (40 hour).
6. Section 7.12 of the Current MOU with the IAFF, Local 1909, Firefighter Unit will be amended as set forth below:
7.12 Salaries
In the pay period that includes January 1 of each year, while the Memorandum of Understanding remains in effect, the City shall provide a salary adjustment for the members of the bargaining unit in the amount that results from application of the salary formula below, except for the caps and exceptions that are referenced within this section:
Except as specified above, base salary for all classifications covered by this MOU shall be increased by the difference between the total compensation of a Hayward Firefighter and the average of the total compensation for firefighter of the top four (4) agencies based on a survey of salary and benefits.
Hayward may be included in the top four (4) agencies should its total compensation for firefighter so indicate. The percentage increase shall be det ermined by (Total Compensation average of top four (4) agencies Total Compensation of Hayward Firefighter)/Base pay of Hayward Firefighter, rounded to the nearest one hundredth of a percent (.01%).
Total Compensation shall mean the sum of the following: top step base monthly salary; employer paid member PERS contributions; education incentive pay applicable to all firefighters; uniform allowance; maximum annual vacation credit; paramedic pay; EMT pay; holiday pay; and health coverage. The amount to be included in the survey for health coverage for the City of Hayward IAFF Local 1909 shall be the amount of the Kaiser Region 1 subscriber +2 premium for the health, dental, and vision plans. For the purpose of this survey, the value of vacation shall be determined as follows: maximum vacation hours divided by twelve (12) multiplied by maximum base hourly rate. For the City of Berkeley only, the longevity pay scale shall be used for the purpose of calculating Total Compensation.
Salary adjustments are to be made annually on the basis of the Survey Formula, the survey shall be completed by November 30th of each year and shall include all salaries and benefits effective on January 1 of each year of the adjustment and approved by the agencys board or council. If on July 1 of the year of the adjustment, any of the agencies in the survey reaches a settlement retroactive to January 1, thereby changing the average of the top four (4) agencies, a one time adjustment will be made to salaries to reflect that change within three (3) months of July 1.
For the term of this agreement, salary adjustments will be based on the following cities: Alameda, Berkeley, Daly City, Fremont, Hayward, Palo Alto, Richmond, Alameda County Fire Department, San Mateo Consolidated, Santa Clara, and Vallejo.
Notwithstanding the foregoing, the 3.82% salary adjustment to which members of Local 1909 would be entitled effective January 1, 2026, based on the criteria set forth above, will be deferred as follows:
- 3.82% will be deferred effective January 1, 2026 through and including the last full pay period prior to July 1, 2027;
Attachment III
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Local 1909, Firefighters and Fire Officers Side Letter of Agreement Unless otherwise mutually agreed, the salary survey will be conducted for calendar year 2027 consistent with the terms set forth above and will be the subject of discussions between the City and the Union scheduled for no later than March 2027. Any wage increases resulting from the calendar year 2027 survey will be implemented in the pay period that includes July 1, 2027 unless otherwise mutually agreed. Any other modifications to this section, including any additional salary increase deferrals shall only be effective if they are part of a signed, mutual written agreement that has been approved by both Local 1909s membership and the City Council.
7. Section 9.04 of the Current MOU with the IAFF, Local 1909, Firefighter Unit will be amended as set forth below:
9.04 Scheduling of Vacation Leave for Fifty Six (56) Hour Employees Vacation leave shall start on any scheduled work shift throughout each calendar year, subject to the needs of the service and the approval of the Fire Chief. Consideration shall be given to seniority in actual scheduling of vacation leaves. In the event an employee is transferred between platoons for the convenience of the department, vacation periods previously approved by the Fire Chief shall not be canceled for this reason. Co mpensatory time off credits may be used in conjunction with vacation leave if found feasible by the Fire Chief. However, total off duty time for any one (1) period shall not exceed fifty one (51) calendar days except upon specific approval of the Fire Chief. Five (5) employees of any given rank on the same shift may use vacation leave simultaneously. Effective January 1, 2028, six (6) employees of any given rank on the same shift may use vacation leave simultaneously.
Requesting Compensatory/Vacation Time Off
The Fire Chief or designated representative must approve any revisions in scheduled vacation and compensatory time off. In the event an employees remaining vacation leave balance or compensatory time balance is less than twelve (12) hours, the Fire Chief may authorize the employee using a combination of the two (2) to total a twelve (12) hour increment. Requests for the use of vacation or compensatory time off shall normally be made through a Battalion Chief.
Number of Employees Allowed Off
No more than five (5) employees shall be guaranteed the use of vacation leave on any given day. If le ss than five (5) employees are scheduled off on vacation, employees using compensatory time may also be scheduled off up to a combined total of five (5) persons. Effective January 1, 2028, this number will increase to no more than six (6) employees shall be guaranteed the use of vacation leave on any given day. If less than six (6) employees are scheduled off on vacation, employees using compensatory time may also be scheduled off up to a combined total of six (6) persons. There shall be no restriction on the number of persons in each rank who may simultaneously use compensatory time off. The scheduling of compensatory time off will be on a first come first served basis, but such time off may not be scheduled less than twenty four (24) hours in advance, nor more than ninety (90) days in advance.
More than five (5) employees may be allowed off simultaneously for the use of vacation or compensatory time in the event staffing levels so permit. The number of employees allowed off on leave at one (1) time shall not be affected by employees who are absent because of non occupational illness or injury and who are using compensatory time or vacation because of having exhausted sick leave benefits; nor shall absences of management employees requiring bargaining unit members to act in their stead be considered.
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Local 1909, Firefighters and Fire Officers Side Letter of Agreement Vacation/Compensatory Leave Increments
Vacation and/or compensatory time off must be used in increments of twelve (12) hours, either 0800 hours to 2000 hours or 2000 hours to 0800 hours the following day. As an exception to the foregoing, a Battalion Chief may grant the use of leave in excess of twelve (12) hours but less than twenty four (24) hours if such approval does not prevent other employees from using a twelve (12) hour leave period. In case of such conflicts, the first requesting employee shall be given the choice of extending the leave to a full twenty four (24) hour period, or having the approved period of leave modified to twelve (12) hours only.
Vacation Selection Process
Vacation time off will be selected in advance, and the selection process shall commence in December prior to the calendar year in which the vacation time will be used. Two (2) rounds of vacation selection activity shall be permitted, and selections so made on each shift shall be on the basis of departmental seniority. In each round, employees may select one (1) to six (6) shifts of vacation leave which must fall entirely within one (1) designated vacation period. One (1) vacation period is defined as three (3) contiguous sets. An employees turn in the selection process is defined as either a PASS, or the selection of from one (1) to six (6) shifts of vacation time off. Once the two (2) rounds of vacation selection have been completed, the remaining days will be made a vailable on a first come first served basis.
Cancellation of Scheduled Vacation
Scheduled vacation shall not be canceled with less than ten (10) days advance notice. Scheduled vacation may be canceled with less than ten (10) days advance notice only in the event of illness of the employee, or illness of a family member which qualifies the employee for use of family sick leave (physicians verification required in both instances); use of funeral leave; or if less than four (4) employees are scheduled off on vacation and/or compensatory time on the day(s) to be canceled. As an exception to the foreg oing, vacation may be canceled with twenty four (24) hours advance notice
provided the vacation period in question was approved within the preceding ten (10) calendar days.
Notification of Canceled Vacation Days
All stations shall be notified of canceled vacation days within twenty four (24) hours via station printer or equivalent means of communication. All employees on the same shift, starting with the employee who is next senior to the employee canceling the vacation and proceeding thereafter on the basis of seniority, shall have twenty four (24) hours within which to select the canceled vacation period or a portion thereof after which the remaining time shall be available on a first come first served basis.
8. Section 10.03 of the Current MOUs will be amended as set forth below:
10.03 Sick Leave Allowance
After completing three (3) months of continuous, full time satisfactory service, full time employees other than temporary and provisional employees shall be eligible for sick leave according to the following schedule.
Employees who work a for ty (40) hour workweek shall accrue three and ninety six hundredths (3.96) hours of sick leave credit per payroll period.
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Local 1909, Firefighters and Fire Officers Side Letter of Agreement Effective the pay period containing January 1, 2028, employees who work a forty (40) hour workweek shall accrue sick leave based on their years of service as follows:
E mployees with 015 years of service: increase from 3.96 hours per pay period to 4.946 hours per pay period
E mployees with more than 15 years of service: increase from 3.96 hours per pay period to
5.94 hours per pay period
Employees who work a fifty six (56) hour workweek shall accrue five and fifty four hundredths (5.54) hours of sick leave credit per payroll period.
Effective the pay period containing January 1, 2028, employees who work a fifty six (56) hour workweek shall accrue sick leave based on their years of service as follows:
Employees with Zero (0) to fifteen (15) years of service shall accrue six and ninety two hundredths (6.92) hours of sick leave credit per payroll period.
E mployees with more than fifteen (15) years of service shall accrue eight and thirty one hundredths (8.31) hours of sick leave credit per payroll period.
There shall be no limit on the number of unused hours of sick leave which may be accumulated by an employee. Employees who (1) have a balance of six hundred (600) hours or more as of December 31 of each calendar year, and (2) have not used more than two (2) shifts for fifty six (56) hour employees and twenty four (24) hours for forty (40) hour employees during the calendar year shall receive an additional twenty four (24) hours added to their vacation balance on the first paycheck in February of the following year.
Temporary or part time employees who do not qualify for sick leave under the provisions of this MOU may be entitled to sick leave in accordance with Administrative Rule 2.46, Paid Sick Leave.
Sick leave records shall be maintained on an hourly basis. Sick leave shall be taken in periods of no less than one (1) hour. No sick leave shall be earned during leaves of absence without pay. An employee unable to return to work after a further period allowed on sick leave without pay may be retired for disability or separated.
A new parent may use up to one hundred and twenty (120) hours of earned sick leave upon the birth of a child or when a child begins residence with an employee who has commenced adoption proceedings.
Any leave granted under this provision shall run concurrently with FMLA/CFRA leave and must be used within one (1) year of the birth or placement of the child.
9. Reopener / Restoration
A. If the March 2027 formal reassessment set forth in Section 1 of this Agreement demonstrates that the Citys financial condition has materially improved, the parties agree to a decision based meet and confer to: (a) restore deferred COLA components; (b) restore staffing as described in the Current MOU; and (c) evaluate reinstatement or expansion of browned out companies.
B. Nothing in this Agreement waives the Unions right to negotiate over mandatory subjects of bargaining.
C. Any modification to this Side Letter of Agreement or the MOU shall occur only by mutual written agreement executed by authorized representatives of both parties. In the event of impasse, all existing terms and conditions of the agreements shall remain in full force and effect.
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Local 1909, Firefighters and Fire Officers Side Letter of Agreement
10. Duration/Sunset
A. Unless otherwise specified, the concessionary amendments to Sections 4.05 (Minimum Staffing) and the suspension of the salary adjustments (7.12) will sunset on June 30, 2027 without further action, unless mutually extended through a signed written agreement.
B. The amendments to Section 6.01 (Retirement Plan) Section 9.04 (Scheduling of Vacation and Leave for 56 Hour Employees) and 10.03 (Si ck Leave) do not sunset.
11. Miscellaneous Provisions
A. Governing Law/Venue. The formation, construction, and performance of this Agreement, and any dispute arising from the relationship between the parties shall be subject to binding arbitration.
B. Entire Agreement. This Agreement constitutes the entire agreement between the City and the Union pertaining to the subject matters covered and may only be modified in writing signed by both parties.
C. Severability. If any provision of this Agreement is held invalid, illegal, or unenforceable, such invalidity, illegality, or unenforceability shall not affect the remaining provisions.
For Local 1909 For City of Hayward
Andrew Ghali, Local 1909 President Jennifer Ott, City Manager Jeff Dimick, HFOA President Burke Dunphy, Chief Negotiator Ian Tecson, Director of Human Resources
Dated Dated
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CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: PH 26-018
DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Maintenance Services
SUBJECT
Stratford Village Proposition 218 Hearing: Proposition 218 Public Hearing to Receive and Tabulate Property Owner Ballots Regarding the Establishment and Levying of a New Assessment for the Stratford Village Flood Control Facilities Improvement Assessment District (MD1); Adopt a Resolution Establishing the New Stratford Village Flood Control Facilities Improvement Assessment (MD1-2026); Approve the Final Engineer’s Report; and Order Levy and Collection of Assessments for Fiscal Year 2027
RECOMMENDATION
That the City Council conducts a public hearing pursuant to Proposition 218 to consider objections and protests to the proposed Stratford Village Flood Control Facilities Improvement Assessment (MD1-2026).
If tabulation of the property-owner ballots results in approval of the proposed assessment, that Council adopts a resolution (Attachment II) establishing the proposed Assessment, approving the Final Engineer’sReport (Attachment III), and ordering the levy and collection of the approved assessments for Fiscal Year 2027.
SUMMARY
Maintenance District 1 (District) was established in 1995 as a financial funding mechanism to fund the operation, maintenance, and the capital repair and replacement of the Stratford Village Storm Water Lift Station (SWLS), the critical flood protection infrastructure for the neighborhood. Thirty years later, the funds generated from the annual assessment revenue are no longer sufficient to provide proper operation, maintenance, and the capital repair and replacement of the District’s storm water drainage and pumping infrastructure. To meet this need, staff recommended a Proposition 218 assessment balloting procedure to propose a new assessment at the January 27, 2025, City Council Meeting.
On January 27, the City Council took formal action to initiate the Proposition 218 election process. Since then, ballot materials were mailed to all property owners of record 45 days prior to this Public Hearing.
This Public Hearing on April 21 is to receive the ballot tabulation and consider objections and protests. If it is determined that the assessment ballots submitted in opposition to the proposed assessments do not exceed the assessment ballots submitted in favor of the assessments (weighted by the proportional financial obligation of the property for which ballots are submitted), staff recommends the City Council CITY OF HAYWARD Printed on 4/17/2026Page 1 of 2
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File #:PH 26-018
financial obligation of the property for which ballots are submitted), staff recommends the City Council take action to approve the imposition of assessments for fiscal year 2027 (July 2026 through June 2027) and each fiscal year thereafter. The levy and collection of the assessments would continue year to year until terminated by the City Council. Pursuant to the Council’s approval, the assessment roll will be forwarded to the County for collection with annual property taxes.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment III Final Engineer’s Report
CITY OF HAYWARD Printed on 4/17/2026Page 2 of 2
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DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Maintenance Services
SUBJECT: Stratford Village Proposition 218 Hearing: Proposition 218 Public Hearing to Receive and Tabulate Property Owner Ballots Regarding the Establishment and Levying of a New Assessment for the Stratford Village Flood Control Facilities Improvement Assessment District (MD1 ); Adopt a Resolution Establishing the N ew Stratford Village Flood Control Facilities Improvement Assessment (MD1 -2026); Approve the Final Engineer’s Report; and Order Levy and Collection of Assessments for Fiscal Year 2027
RECOMMENDATION
That the City Council conducts a public hearing pursuant to Proposition 218 to consider objections and protests to the proposed Stratford Village Flood Control Facilities Improvement Assessment (MD1 -2026). If tabulation of the property -owner ballots results in approval of the proposed assessment, that Council adopts a resolution (Attachment II) establishing the proposed Assessment, approving the Final Engineer’s Report (Attachment III), and ordering the levy and collection of the approved assessments for Fiscal Year 2027.
SUMMARY
Maintenance District 1 (District) was established in 1995 as a financial funding mechanism to fund the operation, maintenance, and the capital repair and replacement of the Stratford Village Storm Water Lift Station (SWLS), the critical flood protection infrastructure for the neighborhood. Thirty years later, the funds generated from the annual assessment revenue are no longer sufficient to provide proper operation, maintenance, and the capital repair and replacement of the District’s storm water drainage and pumping infrastructure. To meet this need, staff recommended a Proposition 218 assessment balloting procedure to propose a new assessment at the January 27, 2025, City Council Meeting.
On January 27, the City Council t ook formal action to initiate the Proposition 218 election process. Since then, ballot materials were mailed to all property owners of record 45 days prior to this Public Hearing. This Public Hearing on April 21 is to receive the ballot tabulation and consider objections and protests. If it is determined that the assessment ballots submitted in opposition to the proposed assessments do not exceed the assessment ballots submitted in favor of the assessments (weighted by the p roportional financial obligation of the property 256
for which ballots are submitted), staff recommends the City Council take action to approve the imposition of assessments for fiscal year 202 7 (July 2026 through June 2027) and each fiscal year thereafter. The levy and collection of the assessments would continue year to year until terminated by the City Council. Pursuant to the Council’s approval, the assessment roll will be forwarded to the County for collection with annual property taxes.
FISCAL AND ECONOMIC IMPACT
This action has no impact on the City’s General Fund.
The District funds the operations and maintenance of the SWLS through its assessments.
Presently, $42,456 in assessment revenue is collected annually, with each of the 174 property owners contributing $243.92 per year. The annual maximum charge rate (Assessment) was established and set when the District was established in 1995 and cannot be legally increased without official property owner approval completed through a formal assessment balloting procedure. Currently, there are insufficient funds to properly maintain or replace the SWLS, increasing the risk of neighborhood flooding.
If a majority of property -owner ballots approve the proposed assessment and the City Council proceeds with establishing the new Assessment, it would be levied in addition to the existing MD1 Assessment. Should the proposed ballot ing be performed and not pass, the condition of the Stratford Village SWLS would continue to degrade and would not be able to perform its flood control duties as originally designed and intended.
The estimated fiscal year 2027 cost of providing the Services to be funded by this proposed assessment is $17,020.23 This cost results in a maximum proposed assessment rate per single-family equivalent benefit unit of $97.82. If approved, these rates may be increased in future years by an amount equal to the annual change in the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index – All Urban Consumers (CPI) for the Northern California Consumer Price Index, SAN FRANCISCO -OAKLAND-HAWYARD, not to exceed 3% per year. The February -to-February CPI will be used to calculate the CPI. The CPI adjustment will be applied to the sum of the existing 1995 assessment and the proposed new assessment
.
BACKGROUND
The Stratford Village neighborhood is located within a large drainage basin , with the Ward Creek
1 drainage facilities running along the western edge of the neighborhood. In 1992, as part of the Stratford Village neighborhood pre-development analysis, it was determined that the neighborhood was located below the 100-year flood zone. Due to the increased risk of flooding, the conditions of development required extensive grading to raise the elevation of the property to receive approvals from the City.
1 URL – Ward Creek – Old Alameda Creek Watershed
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Development of the neighborhood was eventually made possible with the construction of a dedicated SWLS , built in 1995, designed solely to service this specific development. The SWLS was constructed at the end of Pacheco Way to pump storm water runoff from the developed area adjacent to Alameda County Flood Control and Water Conservation District’s (ACFCWCD) Line B, Zone No. 3A, Ward Creek. The SWLS was designed with capacity to only process the stormwater run-off generated by the 174-lot development, a portion of Ruus Lane, Stratford Road, and the Stratford Village Park. No added capacity was constructed for run-off from other areas outside those mentioned above.
The Stratford Village SWLS , located at the end of Pacheco Way in the southwestern corner of Stratford Village, pumps water out of the neighborhood and into a drainage facility (Ward Creek). The ACFCWCD
2, through an agreement with the City, provides a range of construction, repair, maintenance, operations, and upgrades to the district’s storm drainage and pump station improvements. These improvements protect the usefulness, utility, desirability, and livability of all properties within its jurisdictional area by preventing flooding.
The District was formed as a financial mechanism for the property owners to fund the station’s operation, maintenance, and capital replacement in perpetuity. This station is the only privately built SWLS in the City, initially funded by the developer, and able to be operated and maintained, with capital items being repaired and replaced solely with assessment revenue collected by the benefited property owners.
Presently, each of the 174 property owners contribute $243.92 per year for the operation, maintenance, and capital repair and replacement of this critical flood protection infrastructure.
Annually, $42,442 in assessment revenue is collected. These funds are maintained and spent only for the operation, maintenance, repair, and replacement of this neighborhood’s SWLS. The annual maximum charge rate (Assessment) was established and set when the District was established in 1995 and cannot be legally increased without official property owner approval completed through a formal assessment balloting procedure.
Thirty years later, the funds generated from the annual Assessment are no longer sufficient to properly operate and maintain the Stratford Village SWLS and to provide for repair and replacement of its critical infrastructure assets.
On January 27, 2026, the City Council adopted Resolutions No. 26-004 and No. 26-005, initiating proceedings pursuant to Government Code Section 53753, and Prop. 218 (California Constitution Article XIIIC and XIIID; Government Code Section 53753) preliminarily approving the Engineer’s Report, providing notice of public hearing in compliance with Prop. 218, and approving the mailing of ballots and adopting Proposition 218 Assessment Ballot Proceedings Procedures for the Stratford Village Flood Control Facilities Improvement Assessment (MD1- 2026). Council also set the date for the public hearing for the ballots to be counted at the April 21, 2026 City Council meeting.
2 URL – ACFCWCD Site
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DISCUSSION
Properties in the Stratford Village neighborhood are currently at an increased risk for flooding if the SWLS is not operating properly . The proposed A ssessment will fund capital improvements, increase in maintenance, operations, and improvement activities to reduce the likelihood of SWLS failure and reduce the threat of flooding, thereby significantly reducing the risk of property damage potential and loss of life associated with floods. Proper flood control operation, maintenance, and capital repair and replacement help to protect, and specifically benefits, all properties in the District.
Based upon input from the Stratford Village neighborhood, the City has decided to proceed with the establishment of a new assessment (MD1-2026) which incorporates several critical improvements to the existing assessment including:
1.) A cost -of-living adjustment mechanism in order to ensure that the flood control infrastructure is properly funded over time for operations and maintenance.
2.) An annual augmentation of approximately $7,544 (2025 -26 dollars) to the annual operating budget.
3.) A capital investment of $379,049, to be financed over 40 years to fund the Pump and Equipment Replacement Fund/2030 Pump replacement.
An Engineer’s Report has been prepared by SCI (Attachment III ) and serves as the basis for this proposed new Assessment (MD1-2026) to fund a specific portion of these critically needed improvements.
PUBLIC CONTACT
Through a series of mailers, in- person and virtual community meetings, flyers delivered to each of the 174 properties in the neighborhood, and Council meetings, staff have sought to inform and receive input from Stratford Village property owners and Council regarding the best path forward to protect Stratford Village from flooding.
NEXT STEPS
If a majority of property-owner ballots approve the proposed assessment, the City Council may proceed with approving the Final Engineer’s Report and ordering the levy and collection of the approved assessments for Fiscal Year 2027. Pursuant to the Council’s approval, the assessment roll will be forwarded to the County for collection with annual property taxes.
If a majority of property-owner ballots protest the proposed assessment, the assessment will not be imposed. City Council may move forward with the process of levying the existing MD1 assessment for FY 2027, and staff will begin evaluating options to achieve fiscal solvency, such as reducing maintenance or dissolving the District.
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Prepared by: Manny Grewal, Management Analyst
Recommended by: Todd Rullman, Director of Maintenance Services
Approved by:
__________________________________
Jennifer Ott, City Manager
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ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 26-__
Introduced by Council Member_____________
RESOLUTION ESTABLISHING THE STRATFORD VILLAGE FLOOD CONTROL FACILITIES IMPROVEMENT ASSESSMENT (MD1 -2026), APPROVING THE FINAL ENGINEER’S REPORT, AND ORDERING LEVY AND COLLECTION OF ASSESSMENTS FOR FISCAL YEAR 2027
WHEREAS, on June 6, 1995, by Resolution No. 95-103, the City Council ordered the formation Maintenance District No. 1 - Storm Drainage Pumping Station and Storm Drain Conduit – Pacheco Way, Stratford Road, and Ruus Lane (“MD1”) to provide for the operation and maintenance of the storm drainage improvements and the stormwater pumping facility to serve the area commonly known as Stratford Village; and
WHEREAS, the funds generated from the MD1 Assessment are no longer adequate to continue to provide proper operation, maintenance, and capital replacement of the drainage and pump facilities; and
WHEREAS, Chapter 26 of Part 3 of Division 7 of the Streets and Highways Code of the State of California, authorizes formation of a maintenance district, and imposition of assessments to finance construction, improvement, and maintenance of drainage facilities; and
WHEREAS, the City of Hayward (“City”) initiated proceedings for establishing the Stratford Village Flood Control Facilities Improvement Assessment (MD1-2026) pursuant to Government Code Section 53753 and Article XIIID of the California Constitution, to provide improved maintenance and operations services and improvements to the drainage and pump facilities within the proposed district; and
WHEREAS, Proposition 218 was adopted on November 6, 1996, adding Articles XIIIC and XIIID to the California Constitution; and
WHEREAS, Articles XIIIC and XIIID of the California Constitution and implementing statutes impose certain procedural and substantive requirements relating to assessments (as defined); and
WHEREAS, a Final Engineer’s Report (“Report”) has been prepared by SCI Consulting Group ( “Engineer of Work”) and submitted to the City Council, in which a new assessment is proposed to fund the cost to provide maintenance and operations services and improvements to the drainage and pump facilities within the proposed district boundaries; and
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ATTACHMENT II
WHEREAS, this proposed assessment shall be described as the “ Stratford Village Flood Control Facilities Improvement Assessment (MD1-2026)” ( “Assessment”); and
WHEREAS, Resolutions No. 26-004 and No. 26-005 were adopted by the City Council on January 27, 2026 which initiated proceedings pursuant to Government Code Section 53753, and Article XIIID of the California Constitution, and set a date and time for Prop. 218 hearing at 7:00 p.m. on April 21, 2026; and
WHEREAS, in compliance with the requirements of Article XIIID of the California Constitution and Government Code section 53753, ballots were mailed to all record owners of property within the proposed A ssessment district and a notice of the April 21, 2026 Public Hearing; and
WHEREAS, on April 21, 2026 at 7:00 PM or as soon thereafter as was practicable, the City Council held a public hearing, at which it heard and considered oral and written testimony from all interested persons; and
WHEREAS, following the public input portion of the Public Hearing, all assessment ballots that had been returned to the City were tabulated pursuant to the procedures set forth in Resolution 26-005, which was adopted by Council on January 27, 2026; and
WHEREAS, based on the tabulation, the City Council determined that a majority protest, as defined by Article XIII D, Section 4(e) of the California Constitution and Section 53753 of the California Government Code did not exist with respect to the proposed Assessment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward as follows:
1. The above recitals are true and correct.
2. Establishment of New Assessment. Pursuant to Government Code Section 53753, and Article XIIID of the California Constitution, the Stratford Village Flood Control Facilities Improvement Assessment (MD1 -2026) is hereby established.
The Assessment will be in addition to the existing MD1 assessment.
3. Confirmation of Final Engineer’s Report. SCI Consulting Group, the Engineer of Work, has prepared the Report in accordance with Article XIIID of the California Constitution and Government Code section 53750, 54710 et seq. The Report has been made, filed with the City Clerk, and duly considered by the City Council and is hereby approved and confirmed and incorporated herein by reference, including, but not limited to, the following:
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ATTACHMENT II
A. The description of the services to be funded with Assessment proceeds;
B. The estimate of the annual cost of such services;
C. The description of the assessable parcels of land within the d istrict and subject to the Assessment;
D. The description of the proportionate special and general benefits conferred on property by the Assessment;
E. The description of the boundaries of the Assessment district;
F. The specification of the amount to be assessed upon various types of assessable land to fund the cost of the services.
4. Findings of Special Benefit. Based on the oral and documentary evidence offered and received, including the Report, the City Council expressly finds and determines:
A. That each of the parcels in the Assessment d istrict will be specially benefitted by the improvements at least in the amount, if not more than the amount, of the assessment apportioned against the parcel; and
B. That there is substantial evidence to support this finding and determination as to special benefit; and
C. That no assessment imposed on any parcel exceeds the reasonable cost of the proportional special benefit conferred on that parcel.
5. Maximum Assessment Rate. The public interest, convenience, and necessity require that a levy on each lot of parcels in the Assessment district be no more than NINETY-SEVEN DOLLARS AND EIGHTY-TWO CENTS ($97.82) per single family equivalent benefit unit as described in the Report.
These rates may be increased in future years by an amount equal to the annual change in the U.S. Department of Labor, Bureau of Labor Statistics Consumer Price Index – All Urban Consumers (“CPI”) for the San Francisco -Oakland- Hayward, CA MSA1 Consumer Pric e Index for All Urban Consumers (CPI -U), not to exceed 3% per year. The February- to-February CPI will be used to calculate the CPI. The CPI adjustment will be applied to the sum of the existing 1995 assessment and the proposed new assessment. Any CPI in ex cess of 3% may be used in subsequent years when the CPI is less than 3%. In the case of a negative February to February CPI, a 0.0% CPI will be used.
6. Levy of Assessments. The adoption of this Resolution constitutes the levy of the Assessments for Fiscal Year 2027 and in future years at the rates and upon the parcels described in this Resolution, in the Final Engineer’s Report 263
ATTACHMENT II
including the Assessment Roll, all incorporated herein by reference. The City of Hayward Director of Finance is hereby authorized and directed to order the collection of the Assessments stated herein.
7. Immediately upon the adoption of this resolution, the City Clerk shall file a certified copy of this resolution, and Engineer’s Report with the Treasurer-Tax Collector of the County of Alameda. The A ssessments shall be collected at the same time and in the same manner as county taxes are collected, and all laws providing for the collection and enforcement of county taxes shall apply to the collection and enforcement of the assessments. After collectio n by the County of Alameda, the net amount of the assessm ents, after deduction of any compensation due the county of collection, shall be paid to the City of Hayward and received by the Director of Finance.
8. Upon receipt of monies representing assessments collected by the County, the Director of Finance of the City of Hayward shall deposit the monies in the City Treasury to the credit of the Assessment d istrict. Monies deposited to the credit of the Assessment d istrict shall be expended only for the services and improvements set forth in the Report , which is incorporated by reference herein.
IN COUNCIL, HAYWARD, CALIFORNIA, _______________________, 2026
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
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THE CITY OF HAYWARD
STRATFORD VILLAGE FLOOD CONTROL FACILITIES IMPROVEMENT
ASSESSMENT (MD1-2026)
FINAL ENGINEER’S REPORT
APRIL 2026
PURSUANT TO CHAPTER 26 OF PART 3 OF DIVISION 7 OF THE STREETS AND HIGHWAYS CODE OF THE STATE OF CALIFORNIA, AND CHAPTER 10, ARTICLE 10, SECTION 10-
10.25 OF THE HAYWARD MUNICIPAL CODE, AND ARTICLE XIIID OF THE CALIFORNIA
CONSTITUTION
ENGINEER OF WORK:
SCIConsultingGroup
4745 MANGELS BOULEVARD
FAIRFIELD, CALIFORNIA 94534
PHONE 707.430.4300
FAX 707.430.4319
WWW.SCI-CG.COM
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CITY OF HAYWARD
CITY COUNCIL
Mark Salinas, Mayor
Julie Roche, Mayor Pro Tempore
Angela Andrews
Ray Bonilla Jr.
Dan Goldstein
George Syrop
Francisco Zermeño
CITY MANAGER
Jennifer Ott
CITY ATTORNEY
Michael Lawson
CITY CLERK
Miriam Lens
ENGINEER OF WORK
SCI Consulting Group
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TABLE OF CONTENTS
INTRODUCTION....................................................................................................................... 1 SPECIAL FLOOD HAZARD AREAS ....................................................................................... 3 LEGAL ANALYSIS OF PROPOSITION 218 TO FUND FLOOD CONTROL ..................................... 3 ASSESSMENT PROCESS AND FUTURE CONTINUATION OF ASSESSMENTS .............................. 6 DESCRIPTION OF FACILITIES IMPROVEMENTS ........................................................................... 7 FACILITY IMPROVEMENTS ................................................................................................. 7 COST AND BUDGET ESTIMATE ................................................................................................ 9 METHOD OF APPORTIONMENT ............................................................................................... 10 DISCUSSION OF BENEFIT ................................................................................................ 10 FLOOD CONTROL IS A SPECIAL BENEFIT TO PROPERTIES .................................................. 11 BENEFIT FACTORS ......................................................................................................... 12 GENERAL VERSUS SPECIAL BENEFIT .............................................................................. 16 ASSESSMENT APPORTIONMENT ...................................................................................... 20 METHOD OF ASSESSMENT .............................................................................................. 21 FLOOD RISK FACTORS (PARCEL SPECIFIC FACTOR I) ....................................................... 22 FLOOD DAMAGE FACTORS (PARCEL SPECIFIC FACTOR II) ................................................ 22 SHARED FACILITY FACTORS (PARCEL SPECIFIC FACTOR III) ............................................. 22 WEIGHTED PARCEL FACTOR SUBTOTALS ........................................................................ 22 LAND USE FACTORS TO DETERMINE REPLACEMENT FACTORS ........................................... 22 SFES AND RATE FACTORS ............................................................................................. 22 CRITERIA AND POLICIES ................................................................................................. 23 ASSESSMENT ...................................................................................................................... 26 ASSESSMENT DIAGRAM ........................................................................................................ 28 APPENDICES ....................................................................................................................... 29 APPENDIX A – ASSESSMENT ROLL, FY 2027 ................................................................... 29
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LIST OF TABLES
TABLE 1 – PROPOSED CAPITAL IMPROVEMENTS ....................................................................... 8 TABLE 2 – PROPOSED BUDGET ............................................................................................... 9 TABLE 3 – EQUATIONS.......................................................................................................... 21
LIST OF FIGURES
FIGURE 1 – AREAS BENEFITED FROM PROPOSED IMPROVEMENTS ............................................. 3 FIGURE 2 – STRATFORD VILLAGE FLOOD CONTROL ASSESSMENT DIAGRAM FY 2027 ............... 28
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INTRODUCTION
On January 5, 1993, the City of Hayward (the “City”) City Council, by Resolution No. 93-010, approved Tentative Tract Map 6472, which authorized the subdivision of land on both sides of Stratford Road into 148 single-family home lots commonly known as Stratford Village. On April 4, 1995, the City Council, by Resolution No. 95-6, approved Tentative Tract Map 6682, which authorized the subdivision of the two existing properties at 1362 and 1384 Ruus Lane into 27 single-family homes. The storm drainage system serving these properties necessitates pumping the storm water run-off into Ward Creek. Conditions of Approval for the tentative map of Tract 6472 and Tract 6682 included provisions for storm drainage improvements and construction of an approved storm water pumping facility.
The drainage basin includes 29.1 acres of which 24.7 acres are residential, 1.9 acres are for Stratford Village Park, and 2.5 acres are for the collector streets of Stratford Road and Ruus Lane. Pacheco Way does not drain into this basin system nor does the industrial property to the south. The total number of lots in the drainage basin is approximately 175.
A Storm Water Lift Station (“SWLS”) was constructed at the end of Pacheco Way to pump storm water runoff for the developed area adjacent to Alameda County Flood Control and Water Conservation District’s (“ACFCD”) Line B, Zone No. 3A, Ward Creek. The SWLS was designed with capacity for only the development of the area encompassing the 175 potential lots, a portion of Stratford Road, Ruus Lane and the Stratford Village Park. No added capacity was constructed for run-off from other areas such as the Georgian Manor and Spanish Ranch Mobile Home Parks, although there is space for additional pumps if they wish to connect in the future. The mobile home parks are presently served by privately owned and operated pumping facilities located within each mobile home park.
On June 6, 1995, by Resolution No. 95-103, the City Council ordered the formation of Maintenance District No. 1 (“MD1”) to provide for the operation and maintenance of the storm drainage improvements and the stormwater pumping facility to serve the drainage basin.
The maximum annual assessment rate is $243.92 per parcel, and it may not be increased to reflect any change in the Consumer Price Index.
On August 29, 1995, an agreement between the City and the ACFCD transferred ownership of the SWLS to the Flood Control District. The agreement states that the Flood Control District concurred with the SWLS transfer subject to the City providing the Flood Control District with the funds to operate, maintain, and provide for capital equipment replacement and for modifications that may become necessary for the optimal performance of the SWLS.
Each year the City evaluates the need to increase assessments to ensure there are adequate funds to continue to provide proper operation, maintenance, and capital replacement of the storm water pumping facilities. As part of this effort, the County of Alameda updated their capital replacement study to determine whether the MD1 is 269
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adequately funded. Currently there are not sufficient funds to replace the MD1 capital facilities when they reach the end of their useful life.
Based upon input from the Stratford Village neighborhood, the City has decided to proceed with the formation of a new assessment which incorporates several critical improvements to the existing assessment including:
1.) A cost-of-living adjustment mechanism in order to ensure that the flood control infrastructure is properly funded over time for operations and maintenance.
2.) An annual augmentation of approximately $7,544 (2025-26 dollars) to the annual operating budget.
3.) Creation of the “2030 Pump Replacement” dedicated fund, which is a capital investment of $379,049, to be financed over 40 years to fund the pump and equipment replacement.
This Engineer’s Report serves as the basis for this proposed new assessment to fund a specific portion of these critically needed storm water pumping facilities. This assessment, if approved by property owners, will be in addition to the existing MD1 assessment, adding a new assessment designated as MD1-2026.
The area that will benefit from the proposed flood includes 29.1 acres, of which 24.7 acres are residential, 1.9 acres are for a park site, and 2.5 acres are for the collector streets associated with Stratford Road and Ruus Lane. Pacheco Way does not drain into this drainage basin system nor does the industrial property to the south. The area is characterized by relatively flat terrain, low elevation and drains into the ACFCD’s Line B, Zone No. 3A. The area is served by a pump station to manage storm runoff and avoid any surface flooding.
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The boundary of the District is shown in Figure 1.
FIGURE 1 – AREAS BENEFITED FROM PROPOSED IMPROVEMENTS
SPECIAL FLOOD HAZARD AREAS
A Special Flood Hazard Area is defined by FEMA as a high-risk area in which land would be inundated by a flood having a one percent chance of occurring in any given year. Owners of properties within a Special Flood Hazard Area are 1) Required to purchase flood insurance if they have federally-backed mortgages, and 2) Required to make significant improvements to their property prior to any development or major renovation, including raising the elevation of the property to above the base flood level.
FEMA is responsible for creating and updating maps which indicate Special Flood Hazard Areas within flood-prone communities throughout the United States. The current maps adopted in August 2009 for the City of Hayward indicate that within MD1 15 single-family parcels, the park, and several street areas fall within a Special Flood Hazard Area.
LEGAL ANALYSIS OF PROPOSITION 218 TO FUND FLOOD CONTROL The proposed assessment complies with Proposition 218, The Right to Vote on Taxes Act, which was approved by the voters of California on November 6, 1996, and is now Article XIIIC and XIIID of the California Constitution. Proposition 218 provides for benefit assessments to be levied to fund the cost of providing services and improvements, as well 271
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as maintenance and operation expenses of a public improvement which provides a special benefit to the assessed property.
Proposition 218 imposes a number of important requirements, including property-owner balloting, for the formation and continuation of assessments, and these requirements are satisfied by the process being used to establish this proposed assessment.
Funding for flood control is a well-supported and appropriate use of a benefit assessment.
In fact, when Proposition 218 was initially approved in 1996, it allowed for certain types of assessments, including flood control, to be “grandfathered” in, and these were exempted from the property–owner balloting requirement. Proposition 218 is manifested as Article XIIID of the State Constitution, and states in part in Section 5:
“Beginning July 1, 1997, all existing, new, or increased assessments shall comply with this article. Notwithstanding the foregoing, the following assessments existing on the effective date of this article shall be exempt from the procedures and approval process set forth in Section 4:
“(a) Any assessment imposed exclusively to finance the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood control, drainage systems (emphasis added) or vector control. Subsequent increases in such assessments shall be subject to the procedures and approval process set forth in Section 4.”
Specific mention of “flood control and drainage systems” underscores the fact that the drafters of Proposition 218 were satisfied that funding for such activities is an appropriate use of benefit assessments, and therefore confers a direct and special benefit to property.
SILICON VALLEY TAXPAYERS ASSOCIATION, INC. V SANTA CLARA COUNTY OPEN SPACE AUTHORITY (2008) 44 CAL.4TH 431
On July 14, 2008, the California Supreme Court issued its ruling on the Silicon Valley Taxpayers Association, Inc. v. Santa Clara County Open Space Authority (“Silicon Valley”).
Several of the most important elements of the ruling included further emphasis that:
Benefit assessments are for special, not general benefit The services and/or improvements funded by assessments must be clearly defined Special benefits are directly received by and provide a direct advantage to property in the Assessment District
DAHMS V. DOWNTOWN POMONA PROPERTY (2009) 174 CAL.APP.4TH 708 On June 8, 2009, the 4th District Court of Appeal amended its original opinion upholding a benefit assessment for property in the downtown area of the City of Pomona. On July 22, 2009, the California Supreme Court granted review and transferred the case to the Court for Appeal for reconsideration in light of the Supreme Court’s discussion in the above cited Silicon Valley. In Dahms, the Appellate Court on reconsideration upheld the assessment that was 100% special benefit (i.e., 0% general benefit) on the rationale that the services and improvements funded by the assessments were directly provided to property in the 272
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assessment district. The Court also upheld discounts and exemptions from the assessment for certain properties.
BONANDER V. TOWN OF TIBURON (2009) 46 CAL.4TH 646
On December 31, 2009, the California Supreme Court overturned a benefit assessment approved by property owners to pay for placing overhead utility lines underground in an area of the Town of Tiburon. The Court invalidated the assessments on the grounds that the assessments had been apportioned to assessed property based in part on relative costs within sub-areas of the assessment district instead of proportional special benefits.
BEUTZ V. COUNTY OF RIVERSIDE (2010) 184 CAL.APP.4TH 1516 On May 26, 2010, the 4th District Court of Appeal issued a decision on the Steven Beutz v.
County of Riverside (“Beutz”) appeal. This decision overturned an assessment for park maintenance in Wildomar, California, primarily because the general benefits associated with improvements and services were not explicitly calculated, quantified and separated from the special benefits.
GOLDEN HILL NEIGHBORHOOD ASSOCIATION V. CITY OF SAN DIEGO (2011)199 CAL.APP.4TH 416
On September 22, 2011, the 4th District Court of Appeal issued a decision in the Golden Hill Neighborhood Association v. City of San Diego. This decision overturned an assessment for street and landscaping maintenance in the Greater Golden Hill neighborhood of San Diego, California. The court described two primary reasons for its decision. First, as in Beutz, the court found the general benefits associated with services were not explicitly calculated, quantified, and separated from the special benefits. Second, the court found that the City had failed to document the basis for the assessment on its own parcels.
COMPLIANCE WITH CURRENT LAW
This Report is consistent with the requirements of Article XIIIC and XIIID of the California Constitution and with the Silicon Valley decision because the Services to be funded are clearly defined; the Services and Improvements are available to and will be directly provided to all benefited property in the proposed assessment district; the Services and Improvements provide a direct advantage to property in the Assessment District that would not be received in absence of the assessment, and are benefits that are over and above general benefits conferred on real property located in the district or to the public at large by other public entities that make up the membership of the District.
This Report is consistent with Dahms because, similar to the Downtown Pomona assessment validated in Dahms, the services and improvements will be directly provided to property in the Assessment District. More specifically, as discussed hereafter, the services and improvements afford benefits specifically unique and supplied only to property owners within the District with a corresponding effect that is not shared by other parcels outside of the District or real property in general including the public at large.
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The Report is also consistent with Bonander because the Assessment has been apportioned based on the proportional special benefit to each property. Furthermore, the Assessment is consistent with Beutz and Golden Hill because the general benefits have been explicitly calculated, quantified, and excluded from the assessment.
ASSESSMENT PROCESS AND FUTURE CONTINUATION OF ASSESSMENTS Following submittal of this Report to the City for preliminary approval, the City of Hayward City Council may, by Resolution, call for an assessment ballot proceeding and public hearing on the proposed establishment of a Flood Control Facilities Improvement Assessment.
If the City Council approves such a Resolution, a notice of assessment and assessment ballot shall be mailed to each property owner within the proposed Assessment District boundaries who will be subject to the proposed assessment. Such notice will include a description of the services and improvements to be funded by the proposed assessments, the total amount of the proposed assessment chargeable to the entire Assessment District and the amount chargeable to the specific owner’s parcel, the reasons for the proposed assessments and the basis upon which they were calculated, and an explanation of the process for submitting a ballot. Each notice would also include a postage prepaid return envelope and a ballot on which the property owner may mark his or her approval or disapproval of the proposed assessments as well as affix his or her signature.
After the ballots are mailed to property owners in the Assessment District, a minimum 45- day time period must be provided for the return of the assessment ballots. Following this balloting time period, a public hearing must be held for the purpose of allowing public testimony regarding the proposed assessments. At the public hearing, the public will have the opportunity to speak on the issue.
If it is determined that the assessment ballots submitted in opposition to the proposed assessments do not exceed the assessment ballots submitted in favor of the assessments (weighted by the proportional financial obligation of the property for which ballots are submitted), the City Council may take action to approve the imposition of assessments for fiscal year 2026 (July 2026 through June 2027) and each fiscal year thereafter. The levy and collection of the assessments would continue year to year until terminated by the City Council.
The authority granted by the ballot proceeding would be for a Fiscal Year 2026 maximum assessment rate of $97.82 per parcel, with a possible adjustment each subsequent year by the annual change of the U.S. Department of Labor, Bureau of Labor Statistic Consumer Price Index – All Urban Consumers (“CPI”) for the San Francisco-Oakland-Hayward, CA MSA Consumer Price Index for All Urban Consumers (CPI-U), not to exceed 3% per year.
The CPI adjustment may be applied to the sum of the existing 1995 assessment and the proposed new assessment for each parcel.
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DESCRIPTION OF FACILITIES IMPROVEMENTS
The City of Hayward, through an agreement between the City and the ACFCD, provides a range of construction, repair, maintenance, operations, and upgrades to its storm drainage and pump station improvements. These improvements protect the usefulness, utility, desirability, and livability of property within its jurisdictional area by preventing flooding.
The additional improvements (the “Improvements”) proposed to be undertaken by the City and the cost thereof to be paid from the levy of the annual assessment provide special benefit to Assessor Parcels within the Assessment District as defined in the Method of Assessment herein. These proposed Improvements are over and above the current level of service of the existing facilities.
The formula below describes the relationship between the final level of Services, the baseline level of Service if the assessment is not instituted, and the enhanced level of services funded by the assessment.
In this case, the Baseline Level of Service is that which is provided by the existing flood control facilities. The Enhanced Level of Service will be provided by the City’s Stratford Village Flood Control Improvements.
Below is a more detailed description of these improvements that are proposed to be provided for the special benefit of property in the Assessment District.
FACILITY IMPROVEMENTS
The existing facilities, which have been constructed within the City's MD1 boundaries, and which will be operated, maintained, and serviced and are generally described as follows:
The Stratford Village Storm Water Lift Station (SWLS):
2 - 15 H.P. Pumps
1 - 5 H.P. Pump
1 - 3 H.P. Dewatering Pump
1 - Generator
1 - Supervisory Control and Data Acquisition (SCADA) System 1 - Masonry Building to house the SCADA System and Generator
These existing facilities are approximately 30 years old. A recent evaluation of the flood control facilities shows that various elements of the facility need repair, replacement, or rehabilitation. Those improvements are detailed below in Table 1. 275
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Table 1 – Proposed Capital Improvements
Element Cost EstimateEvaluation / Design 41,560.00$ SCADA Upgrades 255,000.00 Pump Rehabilitation 49,248.00 Other Improvements 33,241.00 TOTAL 379,049.00$
The Improvements will include the installation and maintenance of the Stratford Village Storm Water Lift Station as referenced above, as well as financing costs and other expenses associated with the financing for the improvements, and incidental expenses.
“Installation” means the construction or installation of improvements, including, but not limited to, land preparation, such as grading, leveling, cutting, and filling.
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COST AND BUDGET ESTIMATE
The City of Hayward developed a long-range financial plan which includes ongoing operating and maintenance costs as well as the capital improvement costs described above. The District budget showing the first four years of the financial plan is shown in Table 2 below.
TABLE 2 – PROPOSED BUDGET
Total Amount
Beginning Unrestricted Net Assets $0.00
Current Annual Operating Costs $50,000.00
Pump and Equipment Replacement Dedicated Fund/(or 2030 Pump Replacement)$9,476.23 Total Annual Costs $59,476.23
Assessment Calculator
Total Annual Costs $59,476.23
Less Contribution from Current Funding Sources ($42,456.00) Balance to Assessment $17,020.23
Benefit Units(a) SFE Rate(b) (a)*(b)
174.00 $97.82 $17,020.23
Total Assessment Amount = $17,020.23
The financial plan includes the establishment of a fund balance equal to at least half of the annual operating costs to ensure positive cash flow while revenues lag approximately six months.1 The plan also includes a reasonable additional fund balance to allow for occasional major maintenance expenses in future years to ensure the pump station retains its capacity and reliability.
Article XIIID of the California Constitution (Proposition 218) limits the assessment amount to reasonable costs of the proportional special benefit conferred. Therefore, future assessments may be set below the maximum allowable in order not to exceed that limit.
1 Assessments are collected on the property tax bills. Proceeds from those collections are not sent to the City until approximately six months into each fiscal year. 277
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METHOD OF APPORTIONMENT
This section includes an explanation of the special benefits to be derived from the maintenance, operations and repair activities, the criteria for the expenditure of assessment funds and the methodology used to apportion the total assessments to properties within the proposed Assessment District. The proposed Assessment District area consists of all Assessor Parcels included within the Stratford Village boundaries.
The method used for apportioning the assessment is based upon the proportional special benefits conferred to the properties over and above the general benefits conferred to real property in the Assessment District, or to the public at large. Special benefit is calculated for each parcel in the District using the following process:
1.) Identification of all benefit factors derived from the Improvements
2.) Calculation of the proportion of these benefits that are general
3.) Determination of the relative special benefit within different areas of the Assessment District
4.) Determination of the relative special benefit per property type
5.) Calculation of the specific assessment for each individual parcel based upon special vs. general benefit, zones, property type and other supporting attributes
DISCUSSION OF BENEFIT
California Streets and Highways Code Section 5820 et seq. allows agencies which provide flood control and drainage services, such as the City, to levy assessments for those Services. Section 5821 states that the governing body may:
“… in its resolution declaring its intention to order work done or improvements made or by separate resolution, declare its intention to order that the expenses of maintaining and operating any or all of said improvements or any or all other improvements such as are permitted to be constructed herein, including the cost of necessary repairs, replacements, fuel, power, electrical current, care, supervision, and any and all other items necessary for the proper maintenance and operation thereof, shall be assessed, either partly or wholly, upon the real property or upon the land only lying within the district to be benefited by and to be assessed to pay the cost of the construction of said improvement.”
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In addition, California Government Code Section 53750 defines the terms “drainage” and “flood control” as follows:
e) “Drainage System” means any system of public improvement that is intended to provide for erosion control, for landslide abatement, or for other types of water drainage.”
f) "Flood control" means any system of public improvements that is intended to protect property from overflow by water.
Therefore, the maintenance, operational and improvement activities to be provided by the proposed Assessment District fall within the scope of Services that may be funded by assessments under the Code.
The assessments can be levied based only on the special benefit to property. This benefit is received by property over and above any general benefits. Moreover, such benefit is not based on any one property owner’s specific use of the maintenance, operations and improvements activities or a property owner’s specific demographic status. With reference to the requirements for assessments, Proposition 218, as codified in Article XIIID of the California Constitution, has confirmed that assessments must be based on the special benefit to property:
"No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel."
Since assessments are levied on the basis of special benefit, they are not a tax and are not governed by Article XIIIA of the California Constitution.
The benefit factors below, when applied to property in the proposed Assessment District, confer special benefits to property and ultimately protect property in the proposed Assessment District and improve the safety, utility, and functionality of such property.
FLOOD CONTROL IS A SPECIAL BENEFIT TO PROPERTIES
The Engineer’s Report concludes that enhanced flood control is a special benefit directly to the property that is being protected from flooding. The proposed Maintenance and Operations Services and Improvements, which would be over and above the baseline level, will result in the storm drainage and pump facilities being maintained to a much higher standard, and accordingly will reduce the risk of flooding and the associated damage to property.
The following Benefit Factors section describes how and why the Services and Improvements specially benefit properties. This benefit is particular and distinct from its effect on property in general or to the public at large.
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BENEFIT FACTORS
The primary special benefit from the Services and Improvements is the significantly reduced risk of damage to property from flooding. In addition, this section describes other special benefits conferred to residential and other lots and parcels resulting from the Services and Improvements that will be provided. These types of special benefit are summarized as follows:
REDUCED RISK OF DAMAGE TO REAL PROPERTY ASSETS FOR ALL PROPERTY OWNERS WITHIN THE
ASSESSMENT DISTRICT
Properties in the proposed Assessment District are currently at higher risk of flooding. The proposed Assessments will fund an increase in maintenance, operations, and improvement activities to reduce the likelihood of pump station failure and reduce the threat from flooding, thereby significantly reducing the risk of property damage potential and loss of life associated with floods. Flood control maintenance helps to protect and specifically benefits all properties in the Assessment District. The following citations illustrate the importance of the proposed maintenance, operational and improvement activities:
1.) Pump stations are one of the more vulnerable features of a flood risk management project. The failure of a pump station during a flood could result in considerable damage within the protected area.2
2.) [T]he one flood variable that is always expected to be associated with an increase in flood damages is the depth of flooding or flood stage. As the water gets deeper, damages increase.3
2 US Army Corps of Engineers, Mechanical and Electrical Design of Pump Stations, Engineers Manual, April 30, 2020 (https://www.publications.usace.army.mil/Portals/76/Users/182/86/2486/EM1110-2%20-3105.pdf) 3 US Army Corps of Engineers, National Economic Development (NED) Procedures Manual for Flood Damage Reduction (http://www.hq.usace.army.mil/nedp/DB%20Pages/Content.asp?ID=17)
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3.) During and after Hurricane Katrina, many of those levees and floodwalls were overtopped and several were breached, allowing billions of gallons of water from the Gulf of Mexico, Lake Borgne, and Lake Pontchartrain to flow into New Orleans and flood major portions of the city. As of August 2, 2006, 1,118 people were confirmed dead in Louisiana as a result of Hurricane Katrina.
Another 135 people are still missing and presumed dead.
Thousands of homes were destroyed. Direct damage to residential and non-residential property is estimated at $21 billion, damage to public infrastructure another $6.7 billion. Nearly half the region’s population has not yet returned after evacuating.4
4.) The flood that followed inundated the town of Olivehurst and 15 square miles of farmland and towns. One man is known dead and two other people are missing, 180 homes and businesses were destroyed and another 480 were damaged, according to the state Office of Emergency Services, which put preliminary damage estimates at $200 million.5
5.) After natural disasters such as hurricanes, tornadoes, and floods, excess moisture and standing water contribute to the growth of mold in homes and other buildings.6
REDUCED RISK OF LOSS OF LIFE OR HARM TO PROPERTY FROM FLOODING The proposed Assessments will fund maintenance, operations, and improvement activities to reduce the likelihood of pump station failure and reduce the threat from flooding. These services will reduce the loss of life, injuries, and other public health issues associated with flooding. The reduced risk of direct and indirect contact with flood water will increase public safety and will provide positive health benefits in the Assessment District. These are special benefits to property in the Assessment District because property is ultimately more desirable and valuable in areas that are safer and have less risk of harmful flooding. The following citations illustrate the importance of robust flood protection measures for the health and safety of the community:
4 American Society of Civil Engineers, The New Orleans Hurricane Protection System, What Went Wrong and Why (http://www.asce.org/files/pdf/ERPreport.pdf) 5 San Francisco Chronicle, January 12, 1997, Page C 1
6 Centers for Disease Control and Prevention, “Protect Yourself from Mold” (http://www.bt.cdc.gov/disasters/mold/protect.asp)
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1.) Annually, the nation experiences an average of 100 flood-related fatalities.7
2.) Every effort should be made to limit contact with flood water due to potentially elevated levels of contamination associated with raw sewage and other hazardous substances.8
3.) Six inches of water will reach the bottom of most passenger cars causing loss of control and possible stalling. A foot of water will float many vehicles. Two feet of rushing water can carry away most vehicles including sport utility vehicles (SUV’s) and pick-ups.9
PROTECTION OF TRANSPORTATION SYSTEMS AFFECTING PROPERTY The proposed Assessment District will provide funding for maintenance, operational and improvement activities that will reduce the risk of significant disruption and harm in the Assessment District. The maintenance, operations and improvement activities will also better protect the roads and transportation systems in the Assessment District that are crucial for maintaining access for residents, goods movement, maintenance of utilities, and emergency vehicles. Without reliable roads and access, the value of property in the Assessment District would be diminished. Therefore, another special benefit to property is the protection of the local transportation systems.
ELIMINATION OF LIMITATIONS ON DEVELOPMENT/RENOVATION RESULTING FROM SHFA
DESIGNATION BY FEMA
The Assessments would fund Improvements that may prevent additional properties in the proposed district from being mapped in a Special Flood Hazard Area (“SFHA”) flood zone.
Without such funding for the Improvements, additional properties within the proposed Assessment District may be designated as being in a SFHA by the Federal Emergency Management Agency (“FEMA”). Additional SFHA designations would result in limitations on property development; therefore, prevention of limitations on development is another tangible and direct special benefit to property in the proposed Assessment District.
7 "’Be Aware and Be Prepared’ Weather Service Issues Annual Flood Outlook”, National Weather Service Press Release 99-20
(http://www.publicaffairs.noaa.gov/releases99/mar99/noaa99-20.html) 8 US Environmental Protection Agency, “Response to 2005 Hurricanes – Health Precautions” (http://www.epa.gov/katrina/precautions.html) 9 FEMA FloodSmart web site (http://www.fema.gov/hazard/flood/fl_during.shtm)
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Our findings support the hypothesis that increases in flood risk decrease values for residential properties within the 100-year floodplain. Unlike other studies which conclude that there are uniform impacts within the floodplain, we find declining effects with reduced risk. Furthermore, there is evidence suggesting that flooding events heighten sensitivity to such risks and raise the property price premium associated with a given level of flood risk.10
10 “Using GIS To Evaluate The Effects Of Flood Risk On Residential Property Values “, Bartosova et. al, Proceedings of “Environmental Problem Solving with Geographical Information Systems: A National Conference”, U.S. EPA, September 22-24, 1999, Cincinnati, Ohio
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GENERAL VERSUS SPECIAL BENEFIT
Proposition 218 requires any local agency proposing to increase or impose a special assessment to “separate the general benefits conferred on a parcel.”11 The rationale for separating special and general benefits is to ensure that property owners are not charged a benefit assessment in order to pay for general benefits. Thus, a local agency carrying out a project that provides both special and general benefits may levy an assessment to pay for the special benefits, but must acquire separate funding to pay for the general benefits.12
In other words:
However, flood control operations, such as the Services, provide only special benefits.
Special benefits are benefits that are “peculiar and distinct over and above general benefits located in the district or to the public at large.”13 Because flood control infrastructure protects particular identifiable parcels (including residents of the parcel and any appurtenant facilities or improvements) from damage due to inundation or force by rising floodwaters, the benefits are provided directly to those parcels, and to no other parcels. By contrast, general benefits provided to the public at large are discussed in terms of general enhanced property values, provision of general public Services such as police and fire protection, and recreational opportunities that are available to people regardless of their location.14
The issue of general benefits merits further discussion, however, because flood control Services and improvements have an obvious indirect relationship to the provision of general benefits. For example, the Services may protect restaurant and/or recreation facilities in the Assessment District that may be used by people regardless of whether they own property in the District. But this indirect relationship does not mean that the Services and Improvements themselves will provide any general benefits. Rather, the Services will provide direct special benefits to parcels that may themselves be used in the provision of general benefits.
More to the point, the public at large will be paying for the general benefits provided to benefiting “public use” property, and specially benefited property owners’ assessments will not be used to subsidize general benefits provided to the public at large or to property outside
11 California Constitution Article XII D 4
12 Silicon Valley Taxpayers’ Association, Inc. v. Santa Clara County Open Space Authority (2008) 44 Cal 4th 431,450
13 California Constitution Article XII D 2(i)
14 Silicon Valley Taxpayers’ Association, Inc. v. Santa Clara County Open Space Authority (2008) 44 Cal 4th 431, 450-56
Total Benefit = General Benefit + Special Benefit
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the Assessment District. All property that is specially benefited by the Services and Improvements will be assessed, including the parcels used in the provision of general benefits. Thus, the general public will pay for a portion of the provision of the flood control Services and Improvements because the assessed public agencies will use general taxes and other public revenue to pay their Assessments, and privately-owned parcels (such as restaurants) will collect revenue from customers to pay for any “general benefits.”
The Assessment Engineer finds that the Services and Improvements are of distinct and direct special benefit to the property within the Assessment District.
The Assessment Engineer conducted a parcel-by-parcel analysis and has developed an approach, described below as the industry standard. In any case, following is a description of the separation of general benefit from special benefit, and the quantification of the general benefit, in the District. In each step of this analysis, conservative assumptions and determinations have been used in order to ensure that the total calculated general benefit is maximized which reduces the special benefit assessed on any one parcel.
A formula to estimate the general benefit is listed below:
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GENERAL BENEFIT TO PROPERTY OUTSIDE, BUT PROXIMATE, TO THE ASSESSMENT DISTRICT An inundation analysis15 shows that only one parcel outside the boundaries of the District may benefit from the City’s pump station: Parcel number 464 -0120-009-00, which contains a mobile home community with approximately 265 home sites. Of those sites, approximately 92 home sites have the potential to be
affected by ponding water up to one foot
in depth in the scenario in which all the
pumps fail.
Such flooding events can cut off or
temporarily interrupt access by
residents, movements of goods, and
response times for emergency
vehicles. In order to evaluate the
relative impacts of interruptions to
access, the primary metric used was
average daily trips by residents.
Parcels within the District are single
family residential; parcel number 464 -
0120-009-00 is an age-restricted
mobile home park. According to a study
conducted by the San Diego Association of
Governments (SANDAG), the average daily trips for these two residential land uses is 10 and 3, respectively. Therefore, trips within the District are estimated at (174 x 10 =) 1,740, and trips attributed to the 92 affected home sites in the parcel number 464 -0120-009-00 is estimated at (92 x 3 =) 276, which is 16% of the trips within the District.
However, a telephone conversation with the authors16 of the inundation analysis confirmed that the on-site drainage system of parcel 464-0120-009-00 was not factored into the analysis. They agreed that, while not known precisely, it is reasonable to assume that the on-site drainage system (consisting of a piping system and a privately-owned pump station) could alleviate all or most of the flooding on that parcel caused by a complete failure of the District’s pump station. Therefore, the home sites on parcel number 464-0120-009-00 may not receive any benefit from the District’s pump station. The true benefit received by this parcel is within the range of zero to 16% and is likely to be at the lower end of that range.
For this Report, that benefit is conservatively estimated at half of the maximum, or 8%.
TOTAL GENERAL BENEFIT TO PROPERTIES OUTSIDE, BUT PROXIMATE, TO THE DISTRICT = 8%
15 “Zone 3A - Stratford Pump Station Assessment Summary”, Wood Rogers, Feb. 2020 16 Jeremiah McMahon, Satish Kumar; Wood Rogers, April 26, 2021 286
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GENERAL BENEFIT TO PROPERTY WITHIN THE ASSESSMENT DISTRICT The “indirect and derivative” benefit to property within the Assessment District is particularly difficult to calculate. A solid argument can be presented that all benefits within the Assessment District are special because the improvements are clearly “over and above” and “particular and distinct” when compared with the baseline level of service and the unique proximity of and access to the improvements enjoyed by benefiting properties in the Assessment District. Percentage of parcels receiving indirect and derivative benefit = 0% TOTAL GENERAL BENEFIT TO PROPERTIES WITHIN THE ASSESSMENT DISTRICT = 0%
GENERAL BENEFIT TO THE PUBLIC AT LARGE
The Stratford Village Park within Stratford Village is used almost exclusively by property owners within the Assessment District. While there is some occasional use by non-property owners, with no connection with property owners, including bikers, walkers, picnickers, etc., the Park itself derives no benefit from the Improvements and Services due to its elevation (no inundation) and adequate access during a flood event. Therefore, there is no benefit under this category.
G ENERAL BENEFIT TO THE PUBLIC AT LARGE = 0%
TOTAL GENERAL BENEFITS
Using a sum of these three measures of general benefit, we find that 8% of the benefits conferred by the Improvements may be general in nature and must be funded by sources other than the assessment.
General Benefit Calculation8% Property outside the District+ 0% Property within the District+ 0% Public at large8% TOTAL General Benefit
SPECIAL NOTE ON GENERAL BENEFITS
In the 2009 Dahms case, the court upheld an assessment that was 100% special benefit on the rationale that the Services funded by the assessments were directly provided to property in the assessment district. Similar to the assessments in Pomona that were validated by Dahms, the Assessments described in this Engineer’s Report fund Flood Control Services that are directly provided to property in the assessment area. Moreover, as noted in this Report, the Services directly reduce flood risk on all property in the assessment area.
Therefore, Dahms establishes a basis for minimal or zero general benefits from the Assessments. However, in this report, the general benefit is more conservatively estimated and described and then budgeted so that it is funded by sources other than the assessment. 287
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THE CURRENT GENERAL BENEFIT CONTRIBUTION FROM THE CITY
This general benefit cannot be funded from the Assessments; it must be funded from other sources such as the City’s General Fund or other non-District funds. These contributions can also be in the form of in-lieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City of Hayward will contribute both monetary and in-lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the District’s Assessments.
A summary and quantification of these other contributions from the City is discussed below:
The City of Hayward owns, maintains, rehabilitates, and replaces curb and gutter along the border of the District Improvements. This curb and gutter serve to support, contain, retain, and manage stormwater flows. The contribution from the City towards general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 3%.
The City owns and maintains a storm drainage system throughout the District. This system serves to prevent flooding and associated damage to the Improvements; and to manage urban runoff including local pollutants loading from the Improvements. The contribution from the City towards general benefit from the maintenance, and operation of the local storm drainage system is conservatively estimated to be 3%.
The City owns and maintains local public streets along the border of the District Improvements. These public streets provide access to the Improvements to facilitate efficient maintenance. The contribution from the City towards general benefit from the maintenance of local public streets is conservatively estimated to be 3%.
The value of the construction of the improvements can be quantified and monetized as an annuity. Since this construction was performed and paid for by non-assessment funds, this “annuity” can be used to offset general benefit costs and is conservatively estimated to contribute 10%.
The total General Benefit is liberally quantified at 8% which is entirely offset by the conservatively quantified total non-assessment contribution towards general benefit described above of 19%. Therefore, no additional General Benefit must be funded by the City.
ASSESSMENT APPORTIONMENT
In the process of determining the appropriate method of assessment, various alternatives were considered. For example, a fixed or flat assessment for all properties was deemed to be inappropriate because properties less likely to be affected by flooding would be assessed the same as properties more likely to be affected. Hence, the appropriate method of 288
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assessment should be based on the type and use of the property, the relative size of the property, and the level of potential damage to property. This method is further described below.
ZONES OF BENEFIT
Many assessment districts, including assessment districts to fund flood protection, confer different types and amounts of special benefit on parcels in different areas of the assessment district. Therefore, the creation of zones of benefit, corresponding to these various areas, are routinely considered in the development of an assessment district for flood control.
However, this District contains a relatively homogenous community in which zone partitions are not of value. As such, no zones are differentiated.
METHOD OF ASSESSMENT
The next step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a "benchmark" property, a single family detached dwelling on one parcel (one “Single Family Equivalent Unit” or “SFE”). This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefits. In this Engineer’s Report, all properties are assigned an SFE value, which is each property’s relative benefit in relation to a single-family home on one parcel.
The relative benefit to properties from maintenance, operational and improvement activities that reduce the potential for flooding is described by the following equations:
TABLE 3 – EQUATIONS
Equation
1 parcelparcel Assessment Benefit Special
2 Factors)Specific ParcelFactors,tReplacemenRateAssessment zoneparcel (f 3 Factor Zone Relative* Rate BaseRatezone
4 SFEs
CostsRate Base
The special benefit conferred to property is a function of flood risk factors, flood damage factors, shared facilities factors, and land use factors. The derivation of these factors is described in the sections below.
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FLOOD RISK FACTORS (PARCEL SPECIFIC FACTOR I)
Flood risk factors are typically derived from an analysis of the relative risks corresponding to specific sections of flood protection system; and then assigned to specific corresponding geographic zones. However, all parcels within the proposed Assessment District are equally protected by the storm drainage system of gutters, pipes, and pumps, all with the same relative risk of failure. Therefore, the relative risk factors are the same for all parcels.
FLOOD DAMAGE FACTORS (PARCEL SPECIFIC FACTOR II)
Flood damage is a function of the depth of flooding, with higher water levels causing greater damage to structures and property. Flood Inundation maps were used to evaluate elevation data and the risk to property improvements in the event that the pump station failed to operate during a 100-year storm event. Inundation levels were determined to be below the levels of any permanent residential units on private property. While there are some private improvements that will be inundated such as roadways, driveways, walkways and landscaping, no permanent damage is anticipated beyond minor clean up after flood waters have receded. Based on the foregoing, the flood risk factors are the same for all parcels.
SHARED FACILITY FACTORS (PARCEL SPECIFIC FACTOR III)
Shared facilities factors affect zones of parcels in similar ways. A weighted system is used based upon an equal distribution for each of the four critical shared facilities to model the effect of the degradation of these facilities in different zones during a flood event. Three of the categories (water, sewer, and power) will experience minimal disruption. The fourth (access) will experience a more pronounced interruption to access by residents, movements of goods, and response times for emergency vehicles. However, the level of disruption for all four categories will be the same for all parcels within the District.
WEIGHTED PARCEL FACTOR SUBTOTALS
Within the proposed Assessment District boundaries, Flood Risk Factors, Flood Damage Factors and Shared Facility Factors describe the relative benefit to each parcel within a group and are adjusted by their relative importance (weighting). However, since all three factors are equal across all parcels in the District, there is no differentiation to be made.
LAND USE FACTORS TO DETERMINE REPLACEMENT FACTORS
The final step in determining the apportionment is to factor in the land use, or replacement value for each type of use within a Group. There are no permanent residential improvements at risk in this District. As a result, the Land Use Factors are considered to be embedded in the analysis above and no further weighting is warranted.
SFES AND RATE FACTORS
The metric used for assessments is the Single-Family Equivalent (SFE), which is defined as the special benefit received by the benchmark property (single-family residential).
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SINGLE-FAMILY RESIDENTIAL
The residential portion of the District is made up of 174 single-family residential units. Each of the rate factors were determined to be equal among all residential parcels. As the benchmark property, these are assigned one SFE each.
PUBLICLY OWNED PARCELS
Article XIIID, Section 4 of the California Constitution states that publicly owned properties shall not be exempt from assessment unless there is clear and convincing evidence that those properties receive no special benefit.
Publicly owned parcels were individually reviewed and assigned the most appropriate property type. The only public parcel within this District is the Stratford Village Park, which contains a playground, sport court, skate park, and a turf area – none of which will be inundated in a flood event. Furthermore, access during a flood event is likely not necessary (due to the associated extreme weather). Therefore, this parcel will not be impacted by a flood event nor benefited by the drainage facilities; it receives no special benefit and is exempt from the assessment.
ASSESSMENT RATES
Assessment rates are determined by dividing the total benefit by the number of Single- Family Equivalents (SFEs) in order to determine an assessment rate per SFE. The base rate for a single-family home is set at ($17,020 ÷ 174 =) $97.82 per parcel.
CRITERIA AND POLICIES
PARCEL CHANGES
The signatory Assessment Engineer is responsible for a parcel-by-parcel analysis, and determination of special benefit and assessment amount for each parcel in the proposed Assessment District. Each year, the Assessment Engineer will re-analyze and re-calculate individual benefits and corresponding assessments for each parcel, incorporating parcel splits and combinations, land use changes, specific flood risks, etc. The Assessment Engineer shall use the lien date roll obtained from the County of Alameda, or a third-party distributor of this data as the basis for the levy roll. Review of aerial photos and other data including real estate data, and site visits are anticipated.
APPEALS OF ASSESSMENTS LEVIED TO PROPERTY
Any property owner who feels that the assessment levied on their property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the Maintenance Services Director of the City of Hayward or his or her designee. Any such appeal is limited to correction of an assessment during the then current fiscal year. Upon the filing of any such appeal, the Maintenance Services Director or his or her designee will promptly review the appeal and any information provided by the property owner. If the Maintenance Services Director or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the assessment 291
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roll. If any such changes are approved after the assessment roll has been filed with the County for collection, the Maintenance Services Director or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the Maintenance Services Director or his or her designee shall be referred to the City Manager of the City of Hayward and the decision of the City Manager shall be final.
DURATION OF THE ASSESSMENT
If approved by property owners in an assessment ballot proceeding conducted pursuant to the Article and Government Code Section 53750 et seq., the assessments can be levied annually commencing with Fiscal Year 2026.
COST OF LIVING ADJUSTMENTS TO ASSESSMENT RATE
The assessment cannot be increased in future years without approval from property owners in another assessment ballot proceeding, except for an annual adjustment tied to the annual change of the U.S. Department of Labor, Bureau of Labor Statistic Consumer Price Index – All Urban Consumers (“CPI”) for San Francisco-Oakland-Hayward, CA MSA Consumer Price Index for All Urban Consumers (CPI-U), not to exceed 3% per year. The February-to- February CPI will be used to calculate the CPI. Any CPI in excess of 3% will be used in subsequent years when the CPI is less than 3%. In the case of a negative February to February CPI, a 0.0% CPI will be used. The CPI adjustment will be applied to the sum of the existing 1995 assessment and the proposed new assessment for each parcel to obtain the maximum allowable rate. The actual rate applied each year may be less than or equal to the maximum allowable rate and will be determined by the City Council based on the needs within MD1.
This sub-section describes the criteria that shall govern the expenditure of assessment funds and ensures equal levels of benefit for properties of similar type. The criteria established in this Report, as finally confirmed, cannot be substantially modified; however, the Council may adopt additional criteria to further clarify certain criteria or policies established in this Report or to establish additional criteria or policies that do not conflict with this Report.
ASSESSMENT FUNDS MUST BE EXPENDED WITHIN THE PROPOSED ASSESSMENT DISTRICT The net available assessment funds, after incidental, administrative and other costs, shall be expended exclusively for Improvements that protect property within the boundaries of the proposed Assessment District.
SENIOR AND LOW-INCOME EXEMPTIONS
The Government Code does not provide for exemptions to assessments for senior citizen or low-income property owners.
Government Code § 53759.1 and 53759.2
AB 2257, effective January 1, 2025, codifies Government Code §§ 53759.1 and 53759.2.
Government Code § 53759.1 authorizes public agencies to implement an exhaustion of 292
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administrative remedies requirement in the context of a proposed Proposition 218 property related fee or assessment. If the local agency complies with certain specified requirements, property owners are required to submit a written objection regarding a proposed property related fee or assessment during the ratemaking process and by a specified deadline no less than 45 days after mailing of notice pursuant to Proposition 218, and prohibited from challenging the property related fee or assessment in litigation if they did not submit a timely written objection. To implement this requirement, the local agency is required, among other things, to prepare written responses to the timely submitted objections and present them to the local agency governing body, which will make certain specified determinations prior to the close of the Proposition 218.
Government Code § 53759.2 specifies the scope of a Court’s review of the administrative record of the underlying ratemaking proceeding, if the local agency complied with Government Code § 53759.1 in adopting the property related fee or assessment being challenged.
MD1-2026 intends to comply with and implement Government Code § 53759.1 with respect to the proposed assessment. Property owners will be informed of the deadline and process to submit a written objection, and other dates related to MD1-2026 compliance with this provision.
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ASSESSMENT
WHEREAS , the City Council of the City of Hayward is proceeding with the proposed formation of the Stratford Village Flood Control Facilities Improvement Assessment District under Chapter 26 of Part 3 of Division 7 of the Streets and Highways Code of the State of California, and Chapter 10, Article 10, Section 10-10.25 of the Hayward Municipal Code, and Article XIIID of the California Constitution, to proceed with the proposed levy of assessments;
WHEREAS, the undersigned Engineer of Work has prepared and filed a report presenting an estimate of costs, a diagram for the Assessment District and an assessment of the estimated costs of the Improvements upon all assessable parcels within the Assessment District;
NOW, THEREFORE, the undersigned, by virtue of the power vested in me under State law and the order of the City Council, hereby makes the following assessment to cover the portion of the estimated cost of said Improvements, and the costs and expenses incidental thereto to be paid by the Assessment District.
The amount to be paid for said Improvements and the expense incidental thereto, to be paid by the Assessment District for the fiscal year 2026 is generally as follows:
Element Cost EstimateTotal Annual Costs $ 59.476.23Less Contribution from current funding sources 42,456.00$ TOTAL ASSESSMENT AMOUNT 17,020.23$ An Assessment Diagram is hereto attached and made a part hereof showing the exterior boundaries of said Assessment District. The distinctive number of each parcel or lot of land in said Assessment district is its Assessor Parcel Number appearing on the Assessment Roll.
I do hereby assess and apportion said net amount of the cost and expenses of said Improvements, including the costs and expenses incident thereto, upon the parcels and lots of land within said Assessment District, in accordance with the special benefits to be received by each parcel or lot, from the Improvements, and more particularly set forth in the Cost Estimate and Method of Assessment hereto attached and by reference made a part hereof.
The maximum allowed assessment is subject to an annual adjustment tied to the annual change of the U.S. Department of Labor, Bureau of Labor Statistic Consumer Price Index – All Urban Consumers (“CPI”) for the San Francisco-Oakland-Hayward, CA MSA Consumer Price Index for All Urban Consumers (CPI-U), not to exceed 3% per year. The 294
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February to February CPI will be used to calculate the CPI. The CPI adjustment will be applied to the sum of the existing 1995 assessment and the proposed new assessment.
In the event that the actual assessment rate for any given year is not increased by an amount equal to the maximum of 3% or the yearly CPI change plus any CPI change in previous years that was in excess of 3%, the maximum authorized assessment shall increase by this amount. In such event, the maximum authorized assessment shall be equal to the base year assessment as adjusted by the increase to the CPI, plus any and all CPI adjustments deferred in any and all prior years. The CPI change above 3% will be used in a future year when the CPI adjustment is below 3%.
If property owners, in an assessment ballot proceeding, approve the initial fiscal year benefit assessment for the special benefits to their property including the CPI adjustment schedule, the assessment may be levied annually and may be adjusted by up to the maximum annual CPI adjustment without any additional assessment ballot proceeding.
In the event that in future years the assessments are levied at a rate less than the maximum authorized assessment rate, the assessment rate in a subsequent year may be increased up to the maximum authorized assessment rate without any additional assessment ballot proceeding.
Each parcel or lot of land is described in the Assessment Roll by reference to its parcel number as shown on the Assessor's Maps of the County of Alameda for the fiscal year 2026. For a more particular description of said property, reference is hereby made to the deeds and maps on file and of record in the office of the County Recorder of Alameda County.
I hereby place opposite the Assessor Parcel Number for each parcel or lot within the Assessment Roll, the amount of the assessment for the fiscal year 2026 for each parcel or lot of land within the said Assessment District.17
Dated: April 2, 2026
Engineer of Work
By
John Bliss, License No. C052019
17 Each parcel has a calculated assessment based on the estimated level of special benefit to the property.
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ASSESSMENT DIAGRAM
The Assessment District includes all properties within the proposed boundaries of the Stratford Village Flood Control Facilities Improvement Assessment. The boundaries of the Assessment District are displayed on the following Assessment Diagram. The lines and dimensions of each lot or parcel within the Assessment District are those lines and dimensions as shown on the maps of the Assessor of the County of Alameda, for fiscal year 2026, and are incorporated herein by reference, and made a part of this Diagram and this Report.
FIGURE 2 – STRATFORD VILLAGE FLOOD CONTROL ASSESSMENT DIAGRAM FY 2026
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APPENDICES
APPENDIX A – ASSESSMENT ROLL, FY 2027
The Assessment Roll is made part of this report and is available for public inspection during normal office hours. Each lot or parcel listed on the Assessment Roll is shown and illustrated on the latest County Assessor records and these records are, by reference, made part of this report. These records shall govern all details concerning the description of the lots or parcels.
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Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: PH 26-017
DATE: April 21, 2026
TO: Mayor and City Council
FROM: Development Services Director
SUBJECT
Business Friendly Hayward: Proposed Text Amendments to Hayward Municipal Code Chapter 10 Articles 1, 2, 24, and 28 and Chapter 6 Article 2; Proposed Zoning Map Revisions; and Proposed Master Fee Schedule Updates Related to the Business-Friendly Hayward Project.
RECOMMENDATION
That the City Council adopt the Resolutions (Attachments II and III) supporting the amendments to Hayward Municipal Code Chapter 10 Articles 1, 2, 24, and 28 and Chapter 6, Article 2, and related Zoning Map Amendments (Attachment IV) containing updates related to the Business-Friendly Hayward project upon determining that no further environmental review is required pursuant to the California Environmental Quality Act.
SUMMARY
The Business-Friendly Hayward Project aims to accomplish a series of Strategic Roadmap projects and Downtown Specific Plan implementation programs by focusing on the following objectives:
· Streamline entitlement and permitting processes for desirable businesses across the City’s commercial and mixed-use zoning districts.
· Activate vacant and underutilized properties and storefronts Downtown.
To date, City staff has reviewed best practices from nearby jurisdictions, analyzed Hayward’s existing codes and practices related to commercial and mixed-use districts, conducted an analysis of commercial businesses in the Downtown area, and facilitated a series of public outreach efforts aimed at getting feedback from businesses, the public, and other community stakeholders.
Based on these efforts and feedback received from the Planning Commission and City Council, revisions to the Municipal Code and Zoning Map are being proposed. These include a new organization and simplification of the Commercial Districts section of the Zoning Ordinance; relaxed permitting requirements for popular business types; strategic new land use controls; new simple permit types to better support emerging businesses to help activate the City’s commercial areas; and rezonings of CITY OF HAYWARD Printed on 4/17/2026Page 1 of 2
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properties to consolidate and simplify the number of zoning districts reflected in the City’s Zoning Map.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution Text Amendments
Attachment III Resolution Master Fee Update
Attachment IV Ordinance
Attachment IV, Exhibit A Commercial Districts - Clean
Attachment IV, Exhibit B Commercial Districts - Redline Attachment IV, Exhibit C Industrial Districts - Redline Attachment IV, Exhibit D General Regulations - Redline
Attachment IV, Exhibit E Alcoholic Beverage Outlets - Redline Attachment IV, Exhibit F Major Conditional Use Permit - New Attachment IV, Exhibit G Definitions - Redline
Attachment IV, Exhibit H Off Street Parking Regulations - Redline Attachment IV, Exhibit I Mission Boulevard Code - Redline Attachment IV, Exhibit J Downtown Development Code - Redline Attachment IV, Exhibit K Cabarets - Redline
Attachment IV, Exhibit L Maps of Properties to be Rezoned Attachment V Written Public Correspondence
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DATE: April 21, 2026
TO: Mayor and City Council
FROM: Development Services Director
SUBJECT: Business Friendly Hayward : Proposed Text Amendments to Municipal Code Chapter 10 Articles 1, 2, 24, and 28 and Chapter 6 Article 2; Proposed Zoning Map Revisions ; and Proposed Master Fee Schedule Updates Related to the Business-Friendly Hayward Project
RECOMMENDATION
That the City Council adopt the Resolutions (Attachments II and III) supporting the amendments to Hayward Municipal Code Chapter 10 Articles 1, 2, 24, and 28 and Chapter 6, Article 2, and related Zoning Map Amendments (Attachment IV) containing updates related to the Business-Friendly Hayward project upon determining that no further environmental review is required pursuant to the California Environmental Quality Act .
SUMMARY
The Business-Friendly Hayward Project aims to accomplish a series of Strategic Roadmap projects and Downtown Specific Plan implementation programs by focusing on the following objectives:
• Streamline entitlement and permitting processes for desirable businesses across the City’s commercial and mixed-use zoning districts.
• Activate vacant and underutilized properties and storefronts Downtown.
To date, City staff has reviewed best practices from nearby jurisdictions, analyzed Hayward’s existing codes and practices related to commercial and mixed -use districts, conducted an analysis of commercial businesses in the Downtown area, and facilitated a series of public outreach efforts aimed at getting feedback from businesses, the public, and other community stakeholders.
Based on these efforts and feedback received from the Planning Commission and City Council, revisions to the Municipal Code and Zoning Map are being proposed . These include a new organization and simplification of the Commercial Districts section of the Zoning Ordinance; relaxed permitting requirements for popular business types; strategic new land use controls; new simple permit types to better support emerging businesses to help activate the City’s 300
commercial areas; and rezonings of properties to consolidate and simplify the number of zoning districts reflected in the City’s Zoning Map.
FISCAL IMPACT
Consultant Rincon’s approved contract and associated budget, is $99,877 and has been paid for out of the Planning Division’s consultant budget for FY 2025. To reduce consultant costs for this project, staff entirely led the extensive outreach efforts and h ave taken the lead in drafting revisions to the Municipal Code.
BACKGROUND
In partnership with Rincon Consultants and Metrovation Retail Resources, staff reviewed best practices from other jurisdictions used to create lively and thriving commercial areas, completed an analysis of the City’s codes and practices related to commercial and mixed-use districts, and conducted a commercial analysis that identifies community preferences and impediments to business attraction and retention. In addition, staff led a series of public outreach efforts aimed at getting feedback from businesses, the public, and other community stakeholders. A summary of the feedback is discussed in further detail with in the Public Outreach and Discussion sections below. The proposed Muni Code and Zoning Map revisions are discussed in greater detail in the Discussion section below.
Downtown Specific Plan. In 2019, the City Council adopted the Downtown Specific Plan, 1 which provides a strategy to achieve the community’s vision of a resilient, safe, attractive, and vibrant historic Downtown. It has a series of implementation programs which will be fully implemented by this project, including:
• Program LU 2: Update zoning regulations to allow temporary uses such as temporary structures on vacant lots, temporary uses in existing structures, pop -up shops, fruit stands, and mobile businesses, especially in vacant or underutilized spaces (including vacant storefronts) to increase small-scale business opportunities and to temporarily fill gaps in the urban fabric.
• Program LU 4: Update zoning regulations to modernize land use regulations and allow uses consistent with the vision for Downtown, such as neighborhood and regional serving retail, destination dining, entertainment, and indoor recreation that serve a diverse population including students, families, seniors, creative class professionals, and artists.
• Program ED 2: Modify zoning regulations to allow on- site retailing with small -scale production or processing at the same location.
• Program ED 6: Improve and streamline the entitlement process to attract investment and development and for projects involving the expansion and upgrades of existing [Downtown] businesses, including for code-compliance upgrades.
1 Hayward Downtown Specific Plan: https://www.hayward-ca.gov/sites/default/files/documents/DSD-Planning-Hayward-Downtown-Specific-Plan.pdf 301
Summary of Best Practices Report. The Summary of Best Practices Report2 provides an overview of ordinance amendments and other initiatives taken by jurisdictions throughout the region to enliven their commercial districts and support business vitality. Some key takeaways that provide good models for Hayward include allowing flexibility in land use regulations to adapt to varying marketing conditions, streamlining small live performances through the use of live entertainment permits, and promoting pop-up and temporary uses.
Analysis of Hayward Codes and Practices. The Analysis of Hayward Codes and Practices3 Report provides a deep dive into the portions of the City’s Municipal Code that govern commercial and mixed-use districts. The Report identifies land use regulations, permitting processes, development standards, and organizational issues that serve as obstacles towards attracting desirable businesses and activities, and offers recommendations for business -friendly code amendments. Key recommendations include: establishing simplified permitting processes for temporary uses, outdoor dining, and small -scale live entertainment; reducing permitting requirements for popular uses to better align with community preferences and market demand; and consolidating the number of commercial zoning districts to make the zoning map easier to navigate for staff and the business community alike.
Appendix A includes an analysis and breakdown of Downtown Hayward’s commercial conditions and market dynamics. The analysis identifies specific barriers to business attraction and retention, and evaluates physical conditions, tenant mixes, market strengths, and opportunities for improvement in the Downtown core, particularly around B Street, Foothill Boulevard, and the Cinema Place area. Key findings indicate that Downtown Hayward lacks a balanced mix of entertainment venues, experiential businesses, and local-serving retail that would better serve a younger demographic and draw outside visitors. Additionally, vacant storefronts and underutilized spaces create opportunities for pop -up businesses and placemaking interventions, which further support economic development and business entrepreneurship.
PUBLIC OUTREACH
Public outreach for the project was broadly divided into two rounds . The first round , conducted in Spring and Summer 2025, was aimed at soliciting feedback from businesses, community members, and decision-makers on what kinds of businesses they wanted to see in Hayward. This also helped staff better understand the regulatory and processing barriers that prevented businesses from opening and thriving in our community. The second round of public outreach, conducted in Winter and Spring 2026, was focused on garnering feedback on the proposed draft Municipal Code revisions and rezonings to ensure any additional adjustments were made prior to Ordinance adoption. Additional details on both rounds of public outreach are discussed in greater detail below.
2 Summary of Best Practices Report: https://www.hayward-ca.gov/sites/default/files/documents/DSD-PL-Business-Friendly-Hayward-Code-Updates.pdf 3 Analysis of Hayward Codes and Practices: https://www.hayward-ca.gov/sites/default/files/documents/DSD-PL-Analysis-of-Hayward-Codes-and-Practices.pdf 302
First Round Outreach
Council Economic Development Committee Meeting. On February 3, 20254, staff met with the Council Economic Development Committee (CEDC) to kick off the project . The CEDC provided their first impressions of the project and provided direction on the areas they wanted staff to focus on. These areas included:
• Expanding “Personal Services” 5 as a use that is permitted by right throughout commercially zoned areas.
• Encouraging community amenities, entertainment uses, and meeting spaces. • Allowing a more streamlined permitting process for pop -up events and temporary uses.
First Planning Commission Work Session. On August 28, 20256, staff presented the project to the Planning Commission at a work session to receive preliminary feedback following the completion of the background research, analysis, and public outreach phases of the project.
The Commission expressed overall enthusiasm for the project and support for the creation of Limited Entertainment Permits as well as streamlined permitting requirements for many popular land uses, including breweries and wineries.
The Commission did, however, express concern regarding Accessory Commercial Units (ACUs).
Commissioners felt that introducing ACUs at this time could compound existing challenges related to sidewalk vending. T he Commission also emphasized the importance of tailoring strategies to align with Hayward’s unique history and identity. Commissioners cautioned against adopting programs solely based on practices observed in other jurisdictions and underscored their desire for staff to prioritize initiatives that enhance and preserve the character that makes Hayward distinctive.
First City Council Work Session . On September 23, 2025 7, staff conducted a similar work session with the City Council. Like the Planning Commission, the Council was generally supportive of staff’s recommendations, including making popular uses more permissible, such as beer and wine sales , and allowing small-scale live entertainment activities with a simplified permitting process. However, they differed from the Commission in that they directed staff to continue pursuing Accessory Commercial Units (ACUs) in limited areas.
Additional Outreach. Below is a list of the additional public outreach that staff conducted to solicit feedback from the public, community stakeholders, and business owners.
• Tabling at Summer Street Parties: June 12, July 17, and August 21, 2025 • Downtown Hayward Improvement Association Meeting: July 10, 2025 • Online Survey to Business Owners and Community Members: July 2025 • Business Member Focus Group: October 15, 2025
4 CEDC Meeting, February 3, 2025: https://hayward.legistar.com/LegislationDetail.aspx?ID=7113515&GUID=6D3A2952-4DA3-48A7-8E1F-1B1BEAB593F9&Options=&Search= 5 Personal services typically include uses such as barber shops and beauty salons; nail salons, dry cleaners; locksmiths; shoe repair shops; and tailors. 6 First Planning Commission Work Session, August 28, 2025: https://hayward.legistar.com/LegislationDetail.aspx?ID=7522956&GUID=93022E04-89DD-4E5C-BA27- D3F563F6B9F1&Options=&Search=
7 First City Council Work Session, September 23, 2025: https://hayward.legistar.com/LegislationDetail.aspx?ID=7665579&GUID=0B307C48-14CC-461F-82B8- 28C235C6E1DF&Options=&Search =
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• Community Member Focus Group; October 16, 2025
Business owners identified licensing requirements and compliance with health and safety regulations as challenges . They also highlighted concerns related to perceptions of public safety, particularly in the Downtown area, and expressed frustration with existing restrictions on certain activities, such as live music and beer/wine sales.
Members of the public expressed interest in having additional recreational uses in Hayward, such as skating rinks, axe throwing, and uses that cater towards families and children.
Community members specifically indicated they would spend more time and money in Downtown Hayward if there were more businesses, events, or nightlife available. Castro Valley, Pleasanton, and Dublin were often cited as places Hayward community members enjoy visiting, because of the perceived safety, walkability , and low vacancy rates in these communities. Additional detail on the data collected from the community outreach efforts is available on the project webpage.8
Second Round Outreach
Second Planning Commission Work Session. On January 22, 2026 9, staff held a second work session with the Planning Commission. This work session was intended to get feedback on the specific Municipal Code changes and new permit types proposed by staff in response to the first round of public outreach and the analysis conducted . Overall, the Planning Commission expressed support of staff ’s proposed recommendations; however, they did request that staff further examine which industrial districts are the most appropriate for data centers. Additionally, the Commission also expressed interest in adopting an ACU pilot program for some areas outside of D owntown to ensure the pilot program is successful.
Staff’s response to these comments is discussed in further detail later in the report.
Second City Council Work Session . On January 27, 2026 10, staff held a similar work session with the City Council. Like the Planning Commission, the Council was supportive of the majority of staff’s recommendations, including establishing new Limited Entertainment Permits, ACUs, and Minor Temporary Use Permits. They also expressed similar concerns regarding data center locations and asked that staff look at expanding the land use to be allowed in the Industrial Park (IP) zoning district, subject to City Council approval.
Rezoning Property Owner Outreach. Staff held two separate community meetings, on February 12, 2026, and March 18, 2026, with property owners and stakeholder groups related to proposed rezoning and consolidation of commercial districts. Following these meetings, staff made changes to the proposed rezonings to address community concerns, which are addressed in the Discussion section below.
Industrial Stakeholder Outreach. Following Planning Commission and City Council feedback on the proposed Municipal Code revisions, staff held a meeting with industrial stakeholders on February 19, 2026, to review and discuss the proposed changes to the industrial districts.
8 Project Webpage: https://www.hayward-ca.gov/your-government/departments/planning-division/business-friendly-hayward-project 9 Second Planning Commission Work Session, January 22, 2026: https://hayward.legistar.com/LegislationDetail.aspx?ID=7805963&GUID=42641ABB-C13A-4A50-B73B- 3F3815EE9C04&Options=&Search=
10 Second City Council Work Session, January 27, 2026: https://hayward.legistar.com/LegislationDetail.aspx?ID=7828157&GUID=A43BDDBD-EB66-4CCB-98CE- 665F705706DA&Options=&Search=
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Several developers and property owners expressed concerns with some of the proposed changes. In response, staff held two additional community meetings with industrial stakeholders and several one- on-one meetings to discuss further code refinement. These refinements are detailed in the Discussion section below.
Planning Commission Public Hearing. On April 9, 2026, staff held a public hearing with the Planning Commission to review the final proposed Municipal Code text amendments, Zoning Map amendments, and related updates to the Master Fee Schedule. The Planning Commission was overall very supportive of staff’s proposal and unanimously voted (6 -0) to recommend approval of the project to the City Council.
DISCUSSION
Based on the research and analysis presented above and the feedback garnered from the business community, public, and decision makers, a series of revisions to the Municipal Code and Zoning Map are proposed to achieve the project’s goals of making Hayward more business friendly in line with community priorities and market demands. The proposed revisions are presented in greater detail in Attachment IV and are summarized below.
Organization and Simplification . To make the Zoning Ordinance easier to navigate, the commercial zoning districts have been consolidated from their current eight sections into one (shown in Attachment IV, Exhibits A and B). The proposed revisions include new land use and development standard tables that allow prospective businesses and developers to easily identify which types of businesses are allowed in each district. Additionally, the list of land uses has been consolidated into fewer, simpler categories, which allow for a wide variety of businesses and provide greater flexibility for new and emerging uses.
As a part of this simplification process, staff originally proposed changing the definition of truck terminal to be more descriptive of the range of uses that staff interprets to fall within this category. It became clear during the City’s two industrial area community meetings and various meetings with individual stakeholders, that staff’s proposed definition was not adding the clarity that we had hoped for and was in fact creating concern that uses that are currently allowed by right would now be considered truck terminals under the new definition, thus making current uses legal nonconforming. While staff is interested in refining this definition to better serve not only staff but also the industrial community, this effort will require additional staff time and resources and as such, will be prioritized when resources become available. As a result, the proposed change to the truck terminal definition has been removed from the Business Friendly Hayward project.
Relaxed Permitting Requirements. As part of the proposed updates, s taff is recommending relaxing some of the permitting requirements for a number of land uses in the City’s commercial and mixed-use zoning districts to make it easier for businesses to open and operate, as reflected in Attachment IV, Exhibits A, B, I, and J . Notably, t his includes reducing the permitting requirements for businesses selling or serving beer, wine, or alcoholic cider and allowing day care centers, recreational facilities, and cultural facilities/community centers by right in most commercial and mixed-use districts, as these uses are highly desired by the community. In addition, staff is recommending reducing the permitting requirements for tattoo shops and 305
amending the definition of Cultural Facility to include event spaces that may be rented out for events that end by 11:00 p.m. Conversely, banquet halls which propose operations that go past 11:00 p.m. would require a Conditional Use Permit in all zoning districts. This approach was recommended by the Police Department as typically there are no calls for service for these events before 11:00 p.m.
Strategic New Land Use Controls. In addition to relaxing the entitlement process for the above uses, staff is also recommending increasing the entitlement requirements for two specific land uses that necessitate additional control to ensure public health, safety, and general welfare.
First, staff is recommending a Conditional Use Permit be required to operate a massage establishment in the Downtown area (Attachment IV, Exhibit J ). Currently, these uses are permitted by right in the Downtown area with little discretion. This update is proposed in response to a request from the Hayward Police Department, which became aware of instances of commercial prostitution at both permitted and unpermitted massage businesses operating within the city. As a result of this illicit activity , the City Council approved a temporary moratorium on the establishment of new massage businesses until stricter land use and operational controls for these establishments can be put into place. 11 Requiring a CUP for massage establishments in the Downtown area will close the current “by-right” loophole and ensure that all massage businesses in Hayward are required to go through the same screening and discretionary permitting process, which includes review by the Planning Division and Hayward Police Department. Further revisions to the Massage Ordinance will be brought forward to the Council separately by the City Attorney’s Office and Police Department in a separate item on tonight’s agenda.
Additionally, given the operational characteristics and potential impacts to sensitive receptors, staff originally recommended that all data centers be subject to a CUP and limited to the General Industrial (IG) zoning district. However, based on feedback from community stakeholders, the Planning Commission, and City Council, staff is now recommending data centers be permitted in the Industrial Park (IP) zoning district, in addition to the IG zoning district, which will allow data centers to be strategically located in areas of Hayward that contain sufficient electrical utility infrastructure. As currently proposed, data center uses in these districts will be required to obtain approval of a CUP if their energy generating capacity is less than 50 megawatts and approval of a new permit type, a Major Conditional Use Permit (MCUP), if their generating capacity is 50 megawatts or greater.
New Permit Types. In addition to the above-described revisions to the Municipal Code, staff is also proposing new permit types to better support emerging businesses and help activate the City’s commercial areas and promote economic development.
• Zoning Conformance Permit for Accessory Commercial Units (ACUs). Accessory Commercial Units (ACUs) are similar to Accessory Dwelling Units (ADUs), except that they serve as small commercial storefronts at people’s homes, often in garage conversions (Attachment IV, Exhibit D). Staff originally recommended allowing ACUs within districts that allow detached residential units within the Downtown and Mission Boulevard corridor. Limiting ACUs geographically is intended to “pilot” the ACU concept
11 City Council Meeting, December 16, 2025,: https://hayward.legistar.com/LegislationDetail.aspx?ID=7783347&GUID=EE9C5E0D-279D-484F-89D8-1B6B8405D515&Options=&Search= 306
in areas that already have a mixed -use character to further promote walkability and strengthen connection within these areas, while also allowing new businesses the opportunity to incubate and gain customers and traction. Based on Planning Commission and City Council feedback, staff is now recommending that the pilot launch also include properties with one single family residence south of Tennyson Road. This will allow for a broader pilot area and prevent the over concentration of new opportunities in the Downtown area. The proposed fee for the Zoning Conform ance Permit for an ACU is $498, which covers two hours of staff time.
The range of permitted ACU uses is intentionally limited and focused primarily on low- impact retail and service uses such as beauty salons, pet grooming, fitness studios, tutoring, and coffee shops. Staff also considered the Planning Commission and City Council’s concerns regarding the potential for ACUs to inadvertently encourage unpermitted restaurant uses to pop up in residences. As a result, restaurants are not proposed to be included as a permitted use at this time, but could be considered as part of a future code amendment , if the pilot program is successful and the City Council supports this revision.
• Limited Entertainment Permit . To streamline the permitting process for live entertainment uses, staff is proposing a new Limited Entertainment Permit (Attachment IV, Exhibit D ). This permit type is intended to facilitate small -scale entertainment activities that are ancillary to primary uses while maintaining appropriate safeguards for surrounding uses. These activities may include an open-mic night at a coffee shop, karaoke at a restaurant, or live music or trivia night at a brewery. The proposed fee for this permit type is $249, which covers one hour of staff time.
The proposed Limited Entertainment Permit is specifically designed for small entertainment uses and is not meant to accommodate higher-intensity activities such as nightclubs or large entertainment venues, which would continue to be regulated by the City’s Cabaret Ordinance. This approach allows the City to support a more active and engaging commercial environment without removing regulatory oversight, focusing instead on right- sizing regulations to match the scale and impact of the proposed activity.
• Minor Temporary Use Permit. To address the current issue of all temporary uses requiring an Administrative Use Permit, which can be a costly and lengthy process, staff is proposing a new Minor Temporary Use Permit, which would allow for small-scale temporary uses (Attachment IV, Exhibit D). This permit would function similarly to a Zoning Conformance Permit which could be approved if applicants meet certain operational standards, but the permit would not be subject to public noticing or go through the same level of interdepartmental review as a permanent use. Processing time is anticipated to be less than one month, and a flat application fee of $747, which covers three hours of staff time . The types of temporary uses that could be allowed 307