CORONAVIRUS (COVID-19) ADVISORY
IMPORTANT INSTRUCTIONS ON HOW TO PARTICIPATE AND WATCH THE HERCULES CITY COUNCIL MEETING
On March 16, 2020, the Health Officer of Contra Costa County issued an Order through April 7, 2020 that directed that all individuals living in the county to shelter at their place of residence except that they may leave to provide or receive certain essential services or engage in certain essential activities and work for essential businesses and governmental services.
Under the Governor’s Executive Order N-25-20, this meeting may utilize teleconferencing or other virtual meeting platforms. Pursuant to the Governor’s Executive Order N-25-20, teleconferencing restrictions of the Brown Act have been suspended.
Beginning with the April 14, 2020 Hercules City Council meeting, the City Council will conduct its meeting utilizing ZOOM.
DUE TO THE SHELTER IN PLACE ORDERS AND PURSUANT TO EXECUTIVE ORDER N-25-20, direct public attendance or participation at council meetings has been suspended and the Council Chambers will be closed to the general public.
City Council and staff will participate virtually through the ZOOM application. Applicants, consultants, and others with matters before the Council will be allowed to participate via ZOOM but must make prior arrangements with the City Clerk. The public may log into the Zoom meeting to provide their public comment virtually.
Individuals wishing to address the City Council as part of the Zoom meeting are asked to provide the following information:
1. (Optional) - Name, address and contact information of person providing comments.
2. General topic or agenda item you wish to comment on.
PLEASE NOTE: For Special Closed Session meetings public comments must be submitted in written form either electronically via email, mailed in, or hand delivered prior to the meeting. The Zoom meeting credentials for closed session meetings are not shared publicly. Written public comments will be provided to City Council prior to the meeting and posted to the City’s agenda website.
For regular City Council meetings, all virtual public comments are allowed up to 3 minutes to relay their message or concern. All virtual public comments are recorded and become part of the public record. A limit of 30 minutes will be devoted to taking virtual public comment during the first public comment period on the agenda. If any speaker comments have not been accommodated prior to the initial 30 minute period, time will be reserved at the conclusion of the meeting for the remaining virtual public comments.
Please refer to the Zoom meeting information on the front cover of the Agenda.
How to watch the meeting from home:
1. Comcast Channel 28
2. Livestream online at https://hercules.legistar.com/Calendar.aspx
We are happy to accommodate written public comments. Written public comment will be accepted by email to [email protected] and will be available on the City’s website. Additional ways to provide your public comment is to mail your comment to City of Hercules, ATTN: City Clerk – Public Comment (Meeting Date), 111 Civic Drive, Hercules, CA 94547 via USPS in time to reach the City Clerk no later than 4:00 p.m. on the day of the meeting or by telephone by calling (510) 799-8215 no later than 4:00 p.m. on the meeting date. For written public comments:
1. Subject Line to contain the words “PUBLIC COMMENTS”
2. (Optional) - Name, address and contact information of person providing comments.
3. General topic or agenda item you wish to comment on.
All written comments received by the close of the public comment period will be available after the meeting as supplemental materials and will become part of the official meeting record, and they will not be read during the meeting. The City cannot guarantee that its network and/or the site will not be uninterrupted. To ensure that the City Council receives your written comments, you are strongly encouraged to submit your comments in writing in advance of the meeting by 4:00 p.m. on the day of the Council meeting.
Tuesday, March 8, 2022
6:00 PM
City of Hercules
111 Civic Drive
Hercules, CA 94547
City Council
Mayor Dion Bailey
Vice Mayor Alexander Walker-Griffin
Council Member Dan Romero
Council Member Chris Kelley
Council Member Tiffany Grimsley
Dante Hall, City Manager
Patrick Tang, City Attorney
Lori Martin, City Clerk
Meeting Agenda
Zoom Meeting ID: 823 2559 9798
Zoom Passcode: 765431
Zoom Phone Number: 1-669-900-6833
1 March 8, 2022City Council Meeting Agenda
To view webcast of meetings, live or on demand, go to the City's website at www.ci.hercules.ca.us I. SPECIAL MEETING - CLOSED SESSION – 6:00 P.M. CALL TO ORDER - ROLL CALL II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
III. CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:
1. 22-083
Pursuant to Government Code Section 54957(b) PUBLIC EMPLOYEE PERFORMANCE EVALUATION - Title: City Manager (Discuss Annual Evaluation Per Employment Agreement)
2. 22-084 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Government Code Section 54956.9 (e)(1): In one (1) matter.
IV. REGULAR MEETING – 7:00 P.M. CALL TO ORDER - ROLL CALL V. REPORT ON ACTION TAKEN IN CLOSED SESSION
VI. PLEDGE OF ALLEGIANCE
VII. MOMENT OF SILENCE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS
1. 22-085
A Proclamation Recognizing March 2022 as American Red Cross Month in the City of Hercules
Proclamation - 2022 National Red Cross.docxAttachments:
2. 22-093 Proclamation - Recognizing Women's History Month Proclamation - Womens History Month.docxAttachments:
3. 22-086 Securities Law Training
Recommendation: Receive a presentation by Stradling Yocca Carlson & Rauth, P.C., Bond and Disclosure Counsel, regarding federal securities law matters related to the offering of municipal bonds.
Staff Report - Securities Law Training.docx
Attach 1 - Presentation - Hercules City Council Disclosure Training.pptx Attachments:
IX. AGENDA ADDITIONS/DELETIONS
2 March 8, 2022City Council Meeting Agenda
X. PUBLIC COMMUNICATIONS
In accordance with Executive Order N-25-20 and guidance from the California Department of Public Health on gatherings, remote public participation is allowed as follows:
The public may log into the Zoom meeting (refer to agenda cover for Zoom login information) and provide their public comment (3 minute time limit). When the public comment period is open for the item you wish to speak on, use the "raise hand" feature in Zoom (or press *9 if connecting via phone audio only) at the time the Mayor calls for public comment. Please wait your turn and once you are brought into the meeting, state your name and city of residence for the record.
For additional alternatives to providing public comments please refer to the Notice of Important Instructions on how to Participate and Watch the Hercules City Council Meeting on the front page of the agenda.
All public comments are allowed up to 3 minutes to relay their message or concern. A limit of 30 minutes will be devoted to taking public comment at this point in the agenda. If any speakers remain at the conclusion of the initial 30 minute period, time will be reserved at the conclusion of the meeting to take the remaining comments.
XI. PUBLIC HEARINGS
1. 22-082
Mandatory Garbage/Solid Waste Disposal - Delinquent Accounts Recommendation: Conduct a Public Hearing and upon conclusion, consider adopting a Resolution confirming the report of delinquent accounts and placing liens on said properties and special assessments upon property taxes pursuant to City of Hercules Municipal Code Section 5-2.01 to 5-2.16, Mandatory Garbage/Solid Waste Disposal.
Staff Report - Garbage Liens.docx
Attach 1 - Resolution - Liens.docx
Attach 2 - Prelim Lien List.pdf
Attachments:
2. 22-091 Willow Avenue Self Storage Project - Sanitary Sewer Disposal System
Recommendation: Receive a status update on the sanitary sewer disposal system that has yet to be installed by the Developer, provide feedback on staff's proposed measures to allow the self-storage facility to open in the interim, and authorize staff to enter into negotiations on an amendment to the development agreement for Council consideration that will facilitate the completion of a public system intended to serve all properties in the Willow corridor catchment basin.
3 March 8, 2022City Council Meeting Agenda
Staff Report - Willow Self Storage Sanitary Sewer Disposal System.docx Attach 1 - Resolution 18-058 - Willow Ave Commercial Project.pdf Attach 2 - Ordinance 513 - Hercules Self Storage with Signed Developer Agreement.pdf Attach 3 - Willow Private SS Exhibit.pdf
Attach 4 - Conceptual Lift Station and Conveyance System.pdf Attach 5 - 02222022 Correspondence from Hercules Self Storage.pdf Attachments:
XII. CONSENT CALENDAR
1. 22-087 Minutes
Recommendation: Approve the regular meeting minutes of February 22, 2022.
MInutes - 022222 - Regular.pdfAttachments:
2. 22-088 Contract Amendment for First Carbon Solutions to Prepare the Environmental Review of D.R. Horton's Residential Development Proposal for 215 Skelly
Recommendation: Authorize the City Manager to execute a contract amendment for a total contract amount not to exceed $146,900.
Staff Report - Skelly Project CEQA - FCS Contract Amendment Attach 1 - Skelly Project CEQA - FCS Contract Amendment - resolution Exhibit A - Skelly Residential Project ISMND - FCS Proposal (total) Attachments:
3. 22-089 Housing Element Annual Progress Report for 2021 Recommendation: Receive report and direct staff to submit report to state agencies by April 1, 2022, deadline.
Staff Report - 2021 Annual Housing Report - CC 2022-3-8 Attach 1a - Housing Element Annual Progress Report - 2021 (PDF) Attach 1b - Housing Element Annual Progress Report - 2021 (Excel) Attachments:
XIII. DISCUSSION AND/OR ACTION ITEMS
1. 22-090 Follow Up from February 22, 2022 Council Meeting - Discussion of Potential Tax Measures: 1) Continuation of the City's Utility User Tax (UUT), and 2) Process for Becoming a Charter City for the Purpose of Increasing the Real Property Transfer Tax (RPTT)
Recommendation: Receive report, discuss, provide direction to staff regarding: 1) Extending the Utility Users Tax (UUT) beyond January 1, 2025, and 2) the proposal to become a charter city for the limited purpose of increasing the Real Property Transfer Tax (RPTT).
4 March 8, 2022City Council Meeting Agenda
Staff Report - FINAL - Follow up from February 22 Council Meeting Regarding Potential Tax Measures and Process for Becoming a Charter City for the Limited Purpose of Increasing the RPTT.docx Attach 1 - February 8, 2022, Staff Report - Polling Results Related to Extending the Existing Utility Users Tax and the Viability of Becoming a Charter City.pdf Attach 2 - Summary Report of January 2022 Community Survey Results.pdf Attach 3 - Changes in Full-Time Equivalent City Government Employees by Function Last Ten Years.pdf Attach 4 - February 25, 2020, Staff Report - Process for Becoming a Charter City.pdf Attach 5 - January 25, 2022 Staff Report to the City Council - Long-Term Financial Projection.pdf Attach 6 - FY 21-22 General Fund Five-Year Financial Forecast.pdf Attach 7 - Estimated Cost to Restore City Services to Pre-Recession Levels.pdf Attach 8 - March 23, 2021, Staff Report - Public Works Department Organizational Review and Analysis.pdf Attach 9 - March 23, 2021, City Council Presentation - Public Works Department Organizational Review and Analysis.pdf Attach 10 - March 23, 2021, Final Report - Public Works Department Organizational Review and Analysis.pdf Attach 11 - SUMMARY OF BUILT AND APPROVED RESIDENTIAL UNITS AS OF FEBRUARY 28, 2022 (1).pdf Attachments:
2. 22-094 Extension of Lew Edwards and FM3 Contract to the Lew Edwards Group Contract for Polling and Strategic Communication Services for Ballot Measures to Extend the Utility Users Tax, and the Viability of Becoming a Charter City for the Limited Purpose of Increasing the Real Property Transfer Tax
Recommendation: Adopt a Resolution authorizing the City Manager to execute an agreement for Election Opinion Poll Services with the Lew Edwards Group for an amount not to exceed $131,250 subject to the City Attorney's review and available budget appropriations.
Staff Report - Lew Edwards Contract Ext combined SRs.pdf Attach 1 - Resolution.docx
Attach 2 - Exh A - Exh B - LEG Contract Extension Exhibits A&B.pdf Attach 3 - LEG.FM3.Summary.PollingHighlights.pdf
Attach 4- 220-6254 City of Hercules Community Issues Survey - Council Briefing - D3A.pptx Attach 5 - 220-6254-F City of Hercules Community Issues Survey (Phone).pdf Attachments:
XIV. PUBLIC COMMUNICATIONS
This time is reserved for members of the public who were unavailable to attend the Public Communications period during Section X of the meeting, or were unable to speak due to lack of time. The public speaker requirements specified in Section X of this Agenda apply to this Section.
XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,
COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS
AND FUTURE AGENDA ITEMS
This is the time for brief announcements on issues of interest to the community. In accordance with the provisions of the Brown Act, matters which do not appear on this agenda but require City Council discussion may be either (a) referred to staff or other resources for factual information or (b) placed on a future meeting agenda.
5 March 8, 2022City Council Meeting Agenda
XVI. ADJOURNMENT
The next Regular Meeting of the City Council will be held on Tuesday, March 22, 2022 at 7:00 p.m. in the Council Chambers.
Agendas are posted in accordance with Government Code Section 54954.2(a) or Section 54956.
Members of the public can view electronic agendas and staff reports by accessing the City website at www.ci.hercules.ca.us and can receive e-mail notification of agenda and staff report postings by signing up to receive an e-notice from the City’s homepage. Agendas and staff reports may also be obtained by contacting the Administrative Services Department at (510) 799-8215. (Posted: March 2, 2022)
THE HERCULES CITY COUNCIL ADHERES TO THE FOLLOWING POLICIES,
PROCEDURES AND REGULATIONS REGARDING CITY COUNCIL MEETINGS
1. SPECIAL ACCOMODATIONS: In compliance with the Americans with Disabilities Act, if you require special accommodations to participate at a City Council meeting, please contact the City Clerk at 510-799-8215 at least 48 hours prior to the meeting.
2. AGENDA ITEMS: Persons wishing to add an item to an agenda must submit the final written documentation 12 calendar days prior to the meeting. The City retains the discretion whether to add items to the agenda. Persons wishing to address the City Council otherwise may make comments during the Public Communication period of the meeting.
3. AGENDA POSTING: Agendas of regular City Council meetings are posted at least 72 hours prior to the meeting at City Hall, the Hercules Swim Center, Ohlone Child Care Center, Hercules Post Office, and on the City’s website (www.ci.hercules.ca.us),
4. PUBLIC COMMUNICATION: Persons who wish to address the City Council should complete the speaker form prior to the Council's consideration of the item on the agenda.
Anyone who wishes to address the Council on a topic that is not on the agenda and is relevant to the Council should complete the speaker form prior to the start of the meeting. Speakers will be called upon during the Public Communication portion of the meeting. In accordance with the Brown Act, the City Council may not take action on items not listed on the agenda. The Council may refer to staff any matters brought before them at this time and those matters may be placed on a future agenda.
In the interests of conducting an orderly and efficient meeting, speakers will be limited to three (3) minutes.
Anyone may also submit written comments at any time before or during the meeting.
5. CONSENT CALENDAR: All matters listed under Consent Calendar are considered to be routine and will be enacted by one motion. There will be no separate discussion of these items unless requested by a member of the Council or a member of the public prior to the time the City Council votes on the motion to adopt.
6. LEGAL CHALLENGES: If you challenge a decision of the City Council in court, you may be limited to raising only those issues you or someone else raised at the meeting or in written correspondence delivered at, or prior to, the meeting. Actions challenging City Council decisions shall be subject to the time limitations contained in Code of Civil Procedure Section 1094.6.
6 March 8, 2022City Council Meeting Agenda
7 111 Civic Drive
Hercules, CA 94547City of Hercules
Legislation Details (With Text)
File #: Version: 122-083 Name:
Status:Type: Closed Session Agenda Ready
File created: In control:2/22/2022 City Council
On agenda: Final action:3/8/2022
Title: Pursuant to Government Code Section 54957(b) PUBLIC EMPLOYEE PERFORMANCE EVALUATION - Title: City Manager (Discuss Annual Evaluation Per Employment Agreement) Sponsors:
Indexes:
Code sections:
Attachments:
Action ByDate Action ResultVer.
Pursuant to Government Code Section 54957(b) PUBLIC EMPLOYEE PERFORMANCE EVALUATION - Title: City Manager (Discuss Annual Evaluation Per Employment Agreement) City of Hercules Printed on 3/2/2022Page 1 of 1
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8 111 Civic Drive
Hercules, CA 94547City of Hercules
Legislation Details (With Text)
File #: Version: 122-084 Name:
Status:Type: Closed Session Agenda Ready
File created: In control:2/22/2022 City Council
On agenda: Final action:3/8/2022
Title: CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Government Code Section 54956.9 (e)(1): In one (1) matter.
Sponsors:
Indexes:
Code sections:
Attachments:
Action ByDate Action ResultVer.
CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
(Government Code Section 54956.9 (e)(1): In one (1) matter.
City of Hercules Printed on 3/2/2022Page 1 of 1
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9 111 Civic Drive
Hercules, CA 94547City of Hercules
Legislation Details (With Text)
File #: Version: 122-085 Name:
Status:Type: Introductions/Presentation Agenda Ready
File created: In control:2/22/2022 City Council
On agenda: Final action:3/8/2022
Title: A Proclamation Recognizing March 2022 as American Red Cross Month in the City of Hercules Sponsors:
Indexes:
Code sections:
Attachments:
Proclamation - 2022 National Red Cross.pdf
Action ByDate Action ResultVer.
A Proclamation Recognizing March 2022 as American Red Cross Month in the City of Hercules City of Hercules Printed on 3/2/2022Page 1 of 1
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10 PROCLAMATION
RECOGNIZING MARCH 2022 AS AMERICAN RED CROSS MONTH
IN THE CITY OF HERCULES
WHEREAS; in times of crisis, people in the City of Hercules come together to care for one another.
This humanitarian spirit is part of the foundation of our community and is exemplified by American Red Cross volunteers and donors. March is American Red Cross Month, a special time to honor the kindness of our volunteers and neighbors who aid families in need every day as they carry out the organization’s 140-year mission of preventing and alleviating suffering; and
WHEREAS; despite the ongoing challenges presented by the COVID-19 pandemic, people have stepped up to help others in need . Whether it was responding to this year’s record -breaking wildfires, horrific tornadoes, extreme winter storm cold waves or summer heat waves, volunteers continued to roll up their sleeves to give blood when our country faced a severe blood shortage; and
WHEREAS; last year in Contra Costa County, 518 families affected by 130 devastating home fires, relied on the American Red Cross and our partners for comfort and hope, providing emotional support, addressing immediate needs and helping families recover with emergen cy financial assistance or community resources. Through our Sound the Alarm program we made 108 households safer by helping residents create a fire evacuation plan; and
WHEREAS; Contra Costa County residents donated 17,277 units of lifesaving blood; hosted 788 blood drives, including working several partner sponsored diverse blood drives to help the fight against Sickle Cell Anemia. 8,486 local community members took classes to le arn skills like first aid and CPR that save lives; 910 military members and their families received support and services; and humanitarian aid was provided internationally; and
WHEREAS; Red Cross volunteers deployed 552 times, dedicating 61,930 volunteers hours to assist neighbors in California and around the country during 41 different disaster relief operations of all sizes, including wildfires in Oregon and California and Hurricane Ida; and
WHEREAS; their work to prevent and alleviate human suffering is vital to strengthening our community’s resilience. We dedicate this month of March to all those who continue to advance the noble legacy of American Red Cross founder Clara Barton, who lived by her words, “You must never think of anything except the need, and how to meet it.” We ask others to join in this commitment to give back in our community.
NOW, THEREFORE BE IT PROCLAIMED that I, Dion Bailey, Mayor of the City of Hercules, on behalf of the entire City Council, do hereby recognize March 202 2 as American Red Cross Month in the City of Hercules. I encourage all to reach out and support its humanitarian mission.
In witness whereof, I hereunto set my hand and cause the seal of the City of Hercules to be affixed this 8th day of March 2022.
________________________________
Dion Bailey, Mayor
11 111 Civic Drive
Hercules, CA 94547City of Hercules
Legislation Details (With Text)
File #: Version: 122-093 Name:
Status:Type: Introductions/Presentation Agenda Ready
File created: In control:3/2/2022 City Council
On agenda: Final action:3/8/2022
Title: Proclamation - Recognizing Women's History Month Sponsors:
Indexes:
Code sections:
Attachments:
Proclamation - Womens History Month.pdf
Action ByDate Action ResultVer.
Proclamation - Recognizing Women's History Month
City of Hercules Printed on 3/2/2022Page 1 of 1
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12 PROCLAMATION
RECOGNIZING MARCH 2022 AS
WOMEN’S HISTORY MONTH
IN THE CITY OF HERCULES
WHEREAS, women of every race, class and ethnic background have made historic contributions to the growth and strength of Hercules in countless recorded and unrecorded ways; and
WHEREAS, women play a critical economic, cultural and social role in every sphere of life in Hercules; and
WHEREAS, particularly important in the establishment of early charitable, philanthropic and cultural institutions in our City, women have served as early leaders in the forefront of every major progressive social change movement; and WHEREAS, women have been leaders, not only in securing their own rights of suffrage and equal opportunity, but also in the abolitionist, emancipation, industrial labor, civil rights, and peace movements, which have created a more fair and just society for all; and
WHEREAS, despite these contributions, the role of women has consistently been overlooked and undervalued in the literature, leadership, teaching and study of American history and it is therefore fitting that we recognize their numerous accomplishments.
NOW, THEREFORE, I, Dion Bailey, Mayor of the City of Hercules, on behalf of the entire City Council do hereby recognize March 2022 as Women’s History Month in our City of Hercules, and I call this observance to the attention of all our citizens.
In witness whereof, I hereunto set my hand and cause the seal of the City of Hercules to be affixed this 8th day of March 2022.
Dion Bailey, Mayor
13 111 Civic Drive
Hercules, CA 94547City of Hercules
Legislation Details (With Text)
File #: Version: 122-086 Name:
Status:Type: Introductions/Presentation Agenda Ready
File created: In control:2/28/2022 City Council
On agenda: Final action:3/8/2022
Title: Securities Law Training
Recommendation: Receive a presentation by Stradling Yocca Carlson & Rauth, P.C., Bond and Disclosure Counsel, regarding federal securities law matters related to the offering of municipal bonds.
Sponsors:
Indexes:
Code sections:
Attachments: Staff Report - Securities Law Training.pdf Attach 1 - Presentation - Hercules City Council Disclosure Training.pdf Action ByDate Action ResultVer.
Securities Law Training
Recommendation: Receive a presentation by Stradling Yocca Carlson & Rauth, P.C., Bond and Disclosure Counsel, regarding federal securities law matters related to the offering of municipal bonds.
City of Hercules Printed on 3/2/2022Page 1 of 1
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14 1
STAFF REPORT TO THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY
TO THE HERCULES REDEVELOPMENT AGENCY
DATE: Regular Meeting of March 8, 2022
TO: Board of Directors of the Successor Agency to the Hercules Redevelopment Agency
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Securities Law Training (City of Hercules)
RECOMMENDED ACTION : Receive a presentation by Stradling Yocca Carlson & Rauth, P.C., Bond and Disclosure Counsel, regarding federal securities law matters related to the offering of municipal bonds.
FISCAL IMPACT OF RECOMMENDATION: None as a result of this item.
DISCUSSION: The Authority has retained the services of Stifel, Nicolaus & Company, Incorporated to act as underwriter in connection with the proposed sale of two series of bonds by the Successor Agency to the Hercules Redevelopment Agency (the “Successor Agency”) to refinance all outstanding bonds of the former Hercules Redevelopment Agency for debt service savings. The Successor Agency’s bonds will be offered to investors through a Preliminary Official Statement which is similar to a prospectus in the corporate marke t. It will contain all of the information necessary for investors to make an informed decision regarding a purchase of the Successor Agency’s bonds.
When municipal bonds are sold to investors in a public sale, certain provisions of federal securities laws apply to the offering. Specifically, the offering is governed by Securities and Exchange Commission Rule 10b(5) which makes it unlawful for an issuer of bonds to make a misstatement of a material fact or to omit to state a material fact in connection with the bond offering.
The Securities and Exchange Commission has made clear through various releases and enforcement actions that the members of the governing board of an issuer of municipal bonds have a duty to review the key elements of the preliminary official statement before bonds are sold. The Securities and Exchange Commission has also emphasized the importance of governing board 15 2
members and key staff members receive securities law training so that they are familiar with the federal securities law standards that are applicable to a sale before bonds are offered.
The purpose of this agenda item is to provide the members of the Successor Agency’s governing board (the City Council of the City of Hercules) with federal securities law training and the opportunity to ask questions regarding the process for preparing the Preliminary Official Statement for the Successor Agency’s proposed sale of bonds.
ATTACHMENT:
1. Presentation
16 Disclosure Responsibilities Under
the Federal Securities Laws
Presentation to the
City of Hercules
Presented by:
Vanessa Legbandt
Stradling Yocca Carlson & Rauth
17 Why Is Disclosure Necessary?
2 The City issues securities in the public capital
markets
Investors in municipal securities have rights
under federal securities laws
All “material” information must be disclosed
18 Federal Securities Acts
• Securities Act of 1933 – Section 17(a)
• Securities Exchange Act of 1934 – Rule 10b-5
• Both 1933 Act and 1934 Act contain antifraud
provisions, which apply to municipal securities
3 19
Federal Securities Acts
• Section 17(a), in part: It shall be unlawful for any person in the offer and sale of securities. . .
(2) to obtain money or property by means of any untrue statement of a material fact or any omission to state a material fact necessary to make the statements made, in light of the circumstances under which they were made, not misleading . . ..
• Rule 10b-5: “It shall be unlawful for any person in connection with the purchase or sale of any security . . .
a) To employ any device, scheme or artifice to defraud, b) To make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading . . . .”
4 20
The “Materiality” Standard
• “[w]hether or not there is a substantial likelihood
that a reasonable investor or prospective investor
would consider the information important in
deciding whether or not to invest.”
• Materiality is determined in context of all the facts and circumstances, but usually in hindsight
• Guidance comes primarily from court decisions and
SEC enforcement cases
5 21
When Do Disclosure Rules Apply?
• New offerings
• Ongoing Continuing Disclosure
– Annual Report under Rule 15c2-12
– Rule 15c2-12 Material Event Notices
• Any other circumstance where an Issuer is
“speaking to the market”
– Speeches and presentations by senior staff and by elected officials – Social Media
– Website
– Investor Communications
6 22
Official Statement
• Official Statement is offering document to investors
(equivalent to a prospectus)
• Must contain all material information for the
particular bond sale
• Official Statement is the City’s document
• Underwriters, municipal advisers and lawyers help
develop the Official Statement but the City is
ultimately responsible for content
7 23
What Should Be Disclosed?
• Unlike corporate securities, there is no “line item” set of rules for what goes into an Official Statement
• Look at practices in the industry; recent developments • Important to maintain Attorney-Client privilege for
sensitive issues
• Political sensitivity and confidentiality considerations are not exceptions to disclosure
8 24
Disclosure Process
• Seek input from key officials
• Empower staff at all levels
• Disclosure Counsel helps pull information together
and produces a draft Preliminary Official Statement
(“POS”)
• Draft POS reviewed by City staff and Financing Team
• City Council review and approval
9 25
Consequences of Bad Disclosure
10 SEC Active Whistleblower Program
SEC Investigation – fees for lawyers and consultants
Personal fines; Industry Bar
Reduced market access
May have to impose new procedures and oversight to settle SEC actions Rating Downgrades (triggers increased borrowing cost)
26 Questions?
Contact:
Vanessa S. Legbandt, Esq.
Stradling Yocca Carlson & Rauth
(949) 725-4073
[email protected]
11 27
111 Civic Drive
Hercules, CA 94547City of Hercules
Legislation Details (With Text)
File #: Version: 122-082 Name:
Status:Type: Public Hearing Agenda Ready
File created: In control:2/22/2022 City Council
On agenda: Final action:3/8/2022
Title: Mandatory Garbage/Solid Waste Disposal - Delinquent Accounts Recommendation: Conduct a Public Hearing and upon conclusion, consider adopting a Resolution confirming the report of delinquent accounts and placing liens on said properties and special assessments upon property taxes pursuant to City of Hercules Municipal Code Section 5-2.01 to 5-
2.16, Mandatory Garbage/Solid Waste Disposal.
Sponsors:
Indexes:
Code sections:
Attachments: Staff Report - Garbage Liens.pdf
Attach 1 - Resolution - Liens.pdf
Attach 2 - Prelim Lien List.pdf
Action ByDate Action ResultVer.
Mandatory Garbage/Solid Waste Disposal - Delinquent Accounts Recommendation: Conduct a Public Hearing and upon conclusion, consider adopting a Resolution confirming the report of delinquent accounts and placing liens on said properties and special assessments upon property taxes pursuant to City of Hercules Municipal Code Section 5-2.01 to 5-
2.16, Mandatory Garbage/Solid Waste Disposal.City of Hercules Printed on 3/2/2022Page 1 of 1 powered by Legistar™
28 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of March 8, 2022
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Lori Martin, Administrative Services Director/City Clerk
SUBJECT: Mandatory Garbage/Solid Waste Disposal – Delinquent Accounts
RECOMMENDED ACTION:
Conduct a Public Hearing and upon conclusion, consider adopting a Resolution confirming the report of delinquent accounts and placing liens on said properties and special assessments upon property taxes pursuant to City of Hercules Municipal Code Section 5 -2.01 t o 5 -2.16, Mandatory Garbage/Solid Waste Disposal.
COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:
There was no Commission or Subcommittee review of this item.
FISCAL IMPACT OF RECOMMENDATION:
In addition to the fees due Richmond Sanitary Service (the Collector), the City is authorized by the Code to establish reasonable administrative charges. In order to cover the costs incurred by the City through the lien process, a total administrative charge of $30 per delinquent account is assessed. This charge is comparable to that charged by the other cities in West County and notice of this charge has been provided to the affected property owners. This fee will be used to cover the cost of staff’s time and other costs associated with processing these delinquencies.
BACKGROUND:
Municipal Code Sections 5-2.01 to 5 -2.16, Mandatory Garbage/Solid Waste Disposal, require all property owners of occupied premises in the City to subscribe to, and pay for, garbage collection service through Richmond Sanitary Service, the City’s franchised refuse collector. Collection charges that are delinquent in a six-month period are subject to the notice and hearing process defined by the Code. This process ultimately results in an assessment lien against the property for which service was rendered to cover the delinquent garbage collection charges, penalties and City costs. The lien is placed on said property and the assessment is collected either through escrow when the property is sold or by the City with its regular property tax allocation from the County. The Collector, in turn, receives payment for the delinquent fees and charges from the City.
29 The procedure specified by the Code for the collection of these fees and charges is as follows:
1. The Collector sends notification to the affected property owners regarding the delinquency and the City lien process.
2. The Collector submits a delinquent accounts report to the City, Attachment 2.
3. Section 5-2.09 c of the Hercules Municipal Code requires the City to mail a notice of the public hearing date to the owners listed on the report not less than 10 days prior to the hearing.
This notice was mailed to delinquent property owners on February 10, 2022.
4. The City Council confirms the delinquent accounts report and orders placement of liens on said properties and special assessment upon property taxes by resolution.
5. By August 10th of each year, the City Council approves the final assessment levy and the confirmed report is submitted to the County Auditor for inclusion on the property tax rolls.
DISCUSSION:
At the July 23, 2019 City Council meeting Council gave direction to staff to m eet with Republic Services to discuss reducing the amount of times per year to conduct these public hearings from 3 times per year to 2 times per year. City staff met with representatives of Republic Services on August 13, 2019 and determined that the months of February and July would best meet the needs of both parties to get liens placed for delinquent accounts on the tax roll.
Richmond Sanitary Service has submitted a report listing all of the delinquent accounts subject to lien proceedings and has provided the required notice to property owners.
For the period May 2021 through December 2021, Richmond Sanitary Services Preliminary Lien List Report lists 207 accounts totaling $68,340.85. The attached report show s the billing and service addresses of the subject property, the date that each account became at least six month delinquent, the amount due for the delinquent garbage collection service, the amount of administrative charges due to the City and the total amount due and to be liened against the property. Richmond Sanitary Service has confirmed that all required notices and billings have been mailed to this list of property owners.
Vacant premises or billing errors, which can be substantiated, are examples of circumstances which the Council might want to consider in the process of reviewing the report. The report must then be confirmed by resolution of the City Council.
A certified copy of the report will be filed with the County Recorder’s Office for the placement of special liens against the respective parcels. Any payments made on these delinquencies after the date on the Preliminary Lien List and/or after the City Council public hearing, but prior to this filing date, will be deleted from the list and not filed with the County Recorder’s Office.
ATTACHMENTS:
1. Resolution
2. Lien List
30
Resolution 22-
RESOLUTION NO. 22-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES CONFIRMING
THE REPORT OF DELINQ UENT ACCOUNTS AND PL ACING LIENS ON SAID
PROPERTIES AND SPECIAL ASSESSMENTS UPON PROPERTY TAXES PURSUANT TO CITY OF HERCULES MUNICIPAL CODE SECTI ON 5-2.01 TO 5-2.16,
MANDATORY GARBAGE/SOLID WASTE DISPOSAL
WHEREAS, pursuant to Hercules Municipal Code Sections 5-2.01 to 5-2.16, subscription to, and payment for, waste collection service for all occupied properties in the City of Hercules is mandatory; and
WHEREAS, waste collection service has been provided by Richmond Sanitary Service to all delinquent properties described in the ‘Preliminary Lien List by Parcel Number’ report; and
WHEREAS, pursuant to the provisions of Section 5-2.01 to 5-2.16, each owner of said delinquent properties has been notified in writing of their obligation to subscribe to waste collection services and make payment for this service; and
WHEREAS, said property owners have failed to make payments for six months or more for waste collection services as required; and
WHEREAS, said property owners have been notified in writing of the commencement of lien proceedings; and
WHEREAS, the City has incurred collection and delinquency costs on the delinquent properties described above; and
WHEREAS, City staff has established an administrative charge of $30 per parcel for processing the delinquent accounts and recording the assessment lien; and
WHEREAS, the City Council held a duly noticed public hearing on March 8, 2022 which afforded each identified delinquent property owner the right to protest the assessment lien for delinquent collection charges and administrative fees; and
WHEREAS, the City Council has revised and corrected the delinquent accounts report as it deems just.
NOW, THEREFORE, BE IT R ESOLVED by the City Council of the City of Hercules as follows:
1. That th e City Council confirms the delinquent accounts report attached hereto and made a part hereof and hereby places a lien against said properties in the amounts described.
31
Resolution 22-
2. That the City Clerk is hereby directed to record a certified copy of the confirmed report with the Contra Costa County Recorder.
3. That th e City Clerk is hereby directed to deliver a copy of the Resolution of Confirmation to the Finance Director who is authorized to cause the above amounts to be collected in the manner provided by law for the collection of special items.
The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 8th day of March 2022 by the following vote of the Council:
AYES:
NOES:
ABSTAIN:
ABSENT:
____________________________
Dion Bailey, Mayor
ATTEST:
Lori Martin, MMC
Administrative Services Director/City Clerk
32 Prog: BIDIV556
Date: 2/03/22 PRELIMINARY LIEN LISTS
Time: 8:53:30 HEARING DATES
PRELIMINARY LIEN LIST NO CONSOLIDATION 10/2021 02/2022 Levy Code: HU
As Of 2/03/22
Service RSS City
APN Billing Address City Service Address Thru Charges Charge Total Due ----------------------------------------------------- ----------------------- ----------------------------------------------------------------- ------------- --- ----------- 3622720062 139 MIDSHIP DR HERCULES CA 94547 139 MIDSHIP DR 21/08 343.69 30 373.69 3622830093 121 DECATUR CT HERCULES CA 94547 121 DECATUR CT 21/05 144.54 30 174.54 3622830093 121 DECATUR CT HERCULES CA 94547 121 DECATUR CT 21/11 275.76 30 305.76 3622940025 127 HALSEY CT HERCULES CA 94547 127 HALSEY CT 21/05 70.1 30 100.1 3622940025 127 HALSEY CT HERCULES CA 94547 127 HALSEY CT 21/11 343.61 30 373.61 3623200148 136 RALEIGH CT HERCULES CA 94547 136 RALEIGH CT 21/09 850.52 30 880.52 3623400078 184 MANDALAY AVE HERCULES CA 94547 184 MANDALAY AVE 21/09 73.27 30 103.27 3623400607 5613 HASKIN CT RICHMOND CA 94806 196 BONAIRE AVE 21/06 383.77 30 413.77 3623400607 5613 HASKIN CT RICHMOND CA 94806 196 BONAIRE AVE 21/12 347.74 30 377.74 3623500174 157 GRENADINE WAY HERCULES CA 94547 157 GRENADINE WAY 21/09 344.54 30 374.54 3623820135 244 GRENADINE WAY HERCULES CA 94547 244 GRENADINE WAY 21/09 350.48 30 380.48 3623910043 3217 DECKER LAKE DR WEST VALLEY CITY UT 187 CATALINA DR 21/10 343.08 30 373.08 3623920034 232 MANDALAY AVE HERCULES CA 94547 232 MANDALAY AVE 21/10 149.7 30 179.7 3623940032 202 CATALINA DR HERCULES CA 94547 202 CATALINA DR 21/08 58.23 30 88.23 3623940073 226 CATALINA DR HERCULES CA 94547 226 CATALINA DR 21/07 178.6 30 208.6 3624200030 145 VIERRA WAY HERCULES CA 94547 145 VIERRA WAY 21/12 315.02 30 345.02 3624200196 167 CAPRICE CIR HERCULES CA 94547 167 CAPRICE CIR 21/07 608.68 30 638.68 3624200303 178 CAPRICE CIR HERCULES CA 94547 178 CAPRICE CIR 21/06 545.76 30 575.76 3624300095 109 CAPRICE CIR HERCULES CA 94547 109 CAPRICE CIR 21/10 291.05 30 321.05 3624300202 120 CAPRICE CIR HERCULES CA 94547 120 CAPRICE CIR 21/06 354.96 30 384.96 3624300202 120 CAPRICE CIR HERCULES CA 94547 120 CAPRICE CIR 21/12 344.12 30 374.12 3624300384 138 CAPRICE CIR HERCULES CA 94547 138 CAPRICE CIR 21/11 283.38 30 313.38 4040630040 130 PEARCE HERCULES CA 94547 130 PEARCE 21/08 316.01 30 346.01 33 4040820161 1225 HERCULES AVE HERCULES CA 94547 1225 HERCULES AVE 21/07 266.65 30 296.65 4040910293 133 PEARCE HERCULES CA 94547 133 PEARCE 21/06 603.35 30 633.35 4040910293 133 PEARCE HERCULES CA 94547 133 PEARCE 21/12 619.98 30 649.98 4041100142 306 ATLAS 7 HERCULES CA 94547 306 ATLAS 7 21/07 344.53 30 374.53 4041100571 602 NIKE 1 HERCULES CA 94547 602 NIKE 1 21/05 312.65 30 342.65 4041100571 602 NIKE 1 HERCULES CA 94547 602 NIKE 1 21/11 340.16 30 370.16 4041400070 965 WILSON BLVD #211 EL DORADO HILLS CA 9 407 OLYMPUS 7 21/07 166.28 30 196.28 4041400195 406 OLYMPUS 5 HERCULES CA 94547 406 OLYMPUS 5 21/05 312.65 30 342.65 4041400195 406 OLYMPUS 5 HERCULES CA 94547 406 OLYMPUS 5 21/11 340.16 30 370.16 4041400336 906 CANADA GOOSE DR SUISUN CITY CA 94585 312 ATLAS DR 5 21/10 265.37 30 295.37 4041400419 402 OLYMPUS 6 HERCULES CA 94547 402 OLYMPUS 6 21/08 354.65 30 384.65 4041500309 512 ATHENA 2 HERCULES CA 94547 512 ATHENA 2 21/09 222.84 30 252.84 4041700081 130 BAY ST HERCULES CA 94547 130 BAY ST 21/12 329.22 30 359.22 4041700115 112 BAY ST HERCULES CA 94547 112 BAY ST 21/10 56.69 30 86.69 4041700164 2434 ACTON ST BERKELEY CA 94702 115 BAY ST 21/07 344.58 30 374.58 4041700172 121 BAY ST HERCULES CA 94547 121 BAY ST 21/06 342.89 30 372.89 4041700172 121 BAY ST HERCULES CA 94547 121 BAY ST 21/12 365.71 30 395.71 4043510082 106 WEISS HERCULES CA 94547 106 WEISS 21/08 343.69 30 373.69 4043510322 250 ONEIL CIR HERCULES CA 94547 250 ONEIL CIR 21/09 344.72 30 374.72 4043510819 307 ONEIL CIR HERCULES CA 94547 307 ONEIL CIR 21/07 344.53 30 374.53 4043510926 193 ONEIL CIR HERCULES CA 94547 193 ONEIL CIR 21/09 315.02 30 345.02 4043511031 500 ALFRED NOBEL DR HERCULES CA 94547 250 124 BRENNER 21/06 341.58 30 371.58 4043511031 500 ALFRED NOBEL DR HERCULES CA 94547 250 124 BRENNER 21/12 343.4 30 373.4 4043511056 136 BRENNER HERCULES CA 94547 136 BRENNER 21/07 344.53 30 374.53 4043511080 154 BRENNER HERCULES CA 94547 154 BRENNER 21/12 324.55 30 354.55 4043600321 350 N WILDWOOD HERCULES CA 94547 350 N WILDWOOD 21/08 121.23 30 151.23 4043600487 315 N WILDWOOD HERCULES CA 94547 315 N WILDWOOD 21/12 313.33 30 343.33 4043600495 313 N WILDWOOD HERCULES CA 94547 313 N WILDWOOD 21/09 339.9 30 369.9 4043600586 430 N WILDWOOD HERCULES CA 94547 430 N WILDWOOD 21/08 343.69 30 373.69 4043900390 404 N WILDWOOD HERCULES CA 94547 404 N WILDWOOD 21/06 341.42 30 371.42 4043900390 404 N WILDWOOD HERCULES CA 94547 404 N WILDWOOD 21/12 343.37 30 373.37 4044000182 190 S WILDWOOD HERCULES CA 94547 190 S WILDWOOD 21/10 357.46 30 387.46 4044000612 231 S WILDWOOD HERCULES CA 94547 231 S WILDWOOD 21/05 312.65 30 342.65 4044000612 231 S WILDWOOD HERCULES CA 94547 231 S WILDWOOD 21/11 340.16 30 370.16 4044200295 164 SCOTTS VALLEY HERCULES CA 94547 164 SCOTTS VALLEY 21/11 218.88 30 248.88 34 4044200352 200 SCOTTS VALLEY HERCULES CA 94547 200 SCOTTS VALLEY 21/05 312.65 30 342.65 4044200352 200 SCOTTS VALLEY HERCULES CA 94547 200 SCOTTS VALLEY 21/11 340.16 30 370.16 4044200733 209 SCOTTS VALLEY HERCULES CA 94547 209 SCOTTS VALLEY 21/05 312.65 30 342.65 4044200733 209 SCOTTS VALLEY HERCULES CA 94547 209 SCOTTS VALLEY 21/11 340.16 30 370.16 4044400358 181 OVERLOOK TER HERCULES CA 94547 181 OVERLOOK TER 21/09 360.87 30 390.87 4044500363 109 LOOKOUT CT HERCULES CA 94547 109 LOOKOUT CT 21/06 174.14 30 204.14 4044700104 106 CRESTRIDGE CT HERCULES CA 94547 106 CRESTRIDGE CT 21/07 341.68 30 371.68 4044800102 1171 PROMENADE ST HERCULES CA 94547 1171 PROMENADE ST 21/08 343.69 30 373.69 4044800219 1105 PROMENADE ST HERCULES CA 94547 1105 PROMENADE ST 21/07 151.84 30 181.84 4044800516 1021 PARK ST HERCULES CA 94547 1021 PARK ST 21/08 263.09 30 293.09 4044800854 1154 PROMENADE ST HERCULES CA 94547 1154 PROMENADE ST 21/09 106 30 136 4044800987 1103 EARNEST ST HERCULES CA 94547 1103 EARNEST ST 21/06 274.51 30 304.51 4044800987 1103 EARNEST ST HERCULES CA 94547 1103 EARNEST ST 21/12 336.36 30 366.36 4044801019 1112 EARNEST ST HERCULES CA 94547 1112 EARNEST ST 21/10 342.96 30 372.96 4045000256 100 SWEET GUM CT HERCULES CA 94547 100 SWEET GUM CT 21/12 573.28 30 603.28 4045100015 136 CYPRESS CT HERCULES CA 94547 136 CYPRESS CT 21/06 339.66 30 369.66 4045100015 136 CYPRESS CT HERCULES CA 94547 136 CYPRESS CT 21/12 343.19 30 373.19 4045200336 109 MARITIME TER HERCULES CA 94547 109 MARITIME TER 21/06 603.35 30 633.35 4045200336 109 MARITIME TER HERCULES CA 94547 109 MARITIME TER 21/12 606.6 30 636.6 4045300193 166 WATERMARK TER HERCULES CA 94547 166 WATERMARK TER 21/07 606.92 30 636.92 4045300359 13 BLACK OAK LN NOVATO CA 94947 130 S ARBOR BAY 21/12 315.02 30 345.02 4045400019 1003 VICTORIA PARK HERCULES CA 94547 1003 VICTORIA PARK 21/06 339.66 30 369.66 4045400019 1003 VICTORIA PARK HERCULES CA 94547 1003 VICTORIA PARK 21/12 365.35 30 395.35 4045400373 100 NAUTICAL CV HERCULES CA 94547 100 NAUTICAL CV 21/05 552.14 30 582.14 4045400373 100 NAUTICAL CV HERCULES CA 94547 100 NAUTICAL CV 21/11 600.88 30 630.88 4045600303 441 JOAQUIN AVE SAN LEANDRO CA 94577 190 TRESTLE CV 21/05 312.65 30 342.65 4045600303 441 JOAQUIN AVE SAN LEANDRO CA 94577 190 TRESTLE CV 21/11 340.16 30 370.16 4045600444 161 OVERHILL RD ORINDA CA 94563 106 TRESTLE CV 21/07 317.04 30 347.04 4045800226 1129 REGATTA PT HERCULES CA 94547 1129 REGATTA PT 21/09 344.11 30 374.11 4045800341 1054 N SHELTER BAY HERCULES CA 94547 1054 N SHELTER BAY 21/09 315.02 30 345.02 4045900059 1045 CREPE MYRTLE DR HERCULES CA 94547 1045 CREPE MYRTLE DR 21/09 339.98 30 369.98 4045900471 1060 FLOWERING ASH D HERCULES CA 94547 1060 FLOWERING ASH D 21/12 319.27 30 349.27 4046000180 1036 LANTERN BAY HERCULES CA 94547 1036 LANTERN BAY 21/09 321.5 30 351.5 4046100139 106 FOG CUTTER CV HERCULES CA 94547 106 FOG CUTTER CV 21/11 265.37 30 295.37 4046300556 288 TITAN WAY HERCULES CA 94547 288 TITAN WAY 21/06 341.58 30 371.58 35 4046300556 288 TITAN WAY HERCULES CA 94547 288 TITAN WAY 21/12 343.4 30 373.4 4046500213 1120 AVOCET DR HERCULES CA 94547 1120 AVOCET DR 21/11 312.46 30 342.46 4046500486 1030 BAYWOOD LN HERCULES CA 94547 1030 BAYWOOD LN 21/06 342.12 30 372.12 4046500486 1030 BAYWOOD LN HERCULES CA 94547 1030 BAYWOOD LN 21/12 343.46 30 373.46 4046500585 1090 BAYWOOD LN HERCULES CA 94547 1090 BAYWOOD LN 21/11 340.16 30 370.16 4046700144 2210 RAILROAD AVE HERCULES CA 94547 2210 RAILROAD AVE 21/10 342.67 30 372.67 4046700151 2216 RAILROAD AVE HERCULES CA 94547 2216 RAILROAD AVE 21/12 269.36 30 299.36 4046800134 1072 WAVERLY CIR HERCULES CA 94547 1072 WAVERLY CIR 21/06 227.57 30 257.57 4046800134 1072 WAVERLY CIR HERCULES CA 94547 1072 WAVERLY CIR 21/12 173.27 30 203.27 4046900405 2135 LEWIS ST HERCULES CA 94547 2135 LEWIS ST 21/08 319.03 30 349.03 4046900546 2108 CLARK ST HERCULES CA 94547 2108 CLARK ST 21/07 301.67 30 331.67 4046900678 2024 CLARK ST HERCULES CA 94547 2024 CLARK ST 21/10 265.37 30 295.37 4046901049 2021 CABRILLO LN HERCULES CA 94547 2021 CABRILLO LN 21/11 343.56 30 373.56 4047000346 2033 DRAKE LN HERCULES CA 94547 2033 DRAKE LN 21/07 344.53 30 374.53 4047000874 2099 DRAKE LN HERCULES CA 94547 2099 DRAKE LN 21/06 556.49 30 586.49 4047000874 2099 DRAKE LN HERCULES CA 94547 2099 DRAKE LN 21/12 628.43 30 658.43 4047001328 2003 CENTRAL ST HERCULES CA 94547 2003 CENTRAL ST 21/09 126.36 30 156.36 4047400025 1156 GARDENIA LOOP HERCULES CA 94547 1156 GARDENIA LOOP 21/10 342.67 30 372.67 4047400231 1030 GARDENIA LOOP HERCULES CA 94547 1030 GARDENIA LOOP 21/08 54.73 30 84.73 4060500016 6 MANCHESTER HERCULES CA 94547 6 MANCHESTER 21/09 315.02 30 345.02 4060500081 107 COVENTRY HERCULES CA 94547 107 COVENTRY 21/05 320.54 30 350.54 4060500081 107 COVENTRY HERCULES CA 94547 107 COVENTRY 21/11 325.87 30 355.87 4060610138 103 SHEFFIELD HERCULES CA 94547 103 SHEFFIELD 21/10 324.76 30 354.76 4060620111 108 WORTHING HERCULES CA 94547 108 WORTHING 21/10 342.95 30 372.95 4060820125 139 BRIGHTON HERCULES CA 94547 139 BRIGHTON 21/11 57.09 30 87.09 4060820133 4235 KNOLLVIEW DR DANVILLE CA 94506 133 BRIGHTON 21/05 312.65 30 342.65 4060820133 4235 KNOLLVIEW DR DANVILLE CA 94506 133 BRIGHTON 21/11 379.19 30 409.19 4060820315 1062 CANTERBURY HERCULES CA 94547 1062 CANTERBURY 21/09 342.82 30 372.82 4060900331 286 BRIGHTON HERCULES CA 94547 286 BRIGHTON 21/08 345.19 30 375.19 4060920016 1039 COTTAGE LN HERCULES CA 94547 214 BRIGHTON 21/08 40.15 30 70.15 4061030344 33 CHICAGO WAY SAN FRANCISCO CA 941 152 BEDFORD 21/11 195.47 30 225.47 4061030443 1152 CANTERBURY HERCULES CA 94547 1152 CANTERBURY 21/05 312.65 30 342.65 4061030443 1152 CANTERBURY HERCULES CA 94547 1152 CANTERBURY 21/11 340.16 30 370.16 4061100071 190 OXFORD HERCULES CA 94547 190 OXFORD 21/10 39.79 30 69.79 4061210102 196 NEWBURY HERCULES CA 94547 196 NEWBURY 21/09 66.08 30 96.08 36 4062120037 172 GOLDENROD DR HERCULES CA 94547 172 GOLDENROD DR 21/10 340.07 30 370.07 4062130051 295 VIOLET RD HERCULES CA 94547 295 VIOLET RD 21/09 223.37 30 253.37 4062210127 109 BELLFLOWER CT HERCULES CA 94547 109 BELLFLOWER CT 21/07 344.53 30 374.53 4062410149 271 LILAC CIR HERCULES CA 94547 271 LILAC CIR 21/06 341.58 30 371.58 4062410149 271 LILAC CIR HERCULES CA 94547 271 LILAC CIR 21/12 343.4 30 373.4 4062410222 223 LILAC CIR HERCULES CA 94547 223 LILAC CIR 21/11 340.16 30 370.16 4062510161 100 BUTTERCUP CT HERCULES CA 94547 100 BUTTERCUP CT 21/07 52.84 30 82.84 4062910361 PO BOX 125 MORAGA CA 94556 163 IRIS RD 21/08 359.96 30 389.96 4063010187 121 THISTLE CT HERCULES CA 94547 130 LOTUS CT 21/10 352.55 30 382.55 4063100061 205 DEBORAH CT NOVATO CA 94949 193 POPPY CT 21/10 197.17 30 227.17 4063100244 175 EMERALD WAY HERCULES CA 94547 115 AZALEA CT 21/05 234.43 30 264.43 4063100244 175 EMERALD WAY HERCULES CA 94547 115 AZALEA CT 21/11 586.76 30 616.76 4063410320 214 MEADOWLARK WAYHERCULES CA 94547 115 MANZANITA PL 21/12 261 30 291 4063510012 2096 LUPINE RD HERCULES CA 94547 2096 LUPINE RD 21/10 103.09 30 133.09 4063620050 181 BEECHNUT DR 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MAPLE CT HERCULES CA 94547 187 MAPLE CT 21/09 626.44 30 656.44 4063920328 2124 REDWOOD RD HERCULES CA 94547 2124 REDWOOD RD 21/08 444.06 30 474.06 4064200068 118 FIR CT HERCULES CA 94547 118 FIR CT 21/12 35.2 30 65.2 4064330105 1919 REDWOOD RD HERCULES CA 94547 1919 REDWOOD RD 21/10 232.54 30 262.54 4064340146 306 PEPPERWOOD ST HERCULES CA 94547 306 PEPPERWOOD ST 21/07 162.01 30 192.01 4064410170 127 MESQUITE CT HERCULES CA 94547 127 MESQUITE CT 21/08 38.42 30 68.42 4064410220 112 MESQUITE CT HERCULES CA 94547 112 MESQUITE CT 21/05 337.31 30 367.31 4064410220 112 MESQUITE CT HERCULES CA 94547 112 MESQUITE CT 21/11 342.76 30 372.76 4064410295 118 JUNIPER CT HERCULES CA 94547 118 JUNIPER CT 21/10 343.49 30 373.49 37 4064710074 7 BASIN CT HERCULES CA 94547 7 BASIN CT 21/07 344.51 30 374.51 4064710116 1611 SYCAMORE AVE #5 HERCULES CA 94547 11 BASIN CT 21/08 176.58 30 206.58 4064710306 292 VALLEY RUN HERCULES CA 94547 292 VALLEY RUN 21/05 312.65 30 342.65 4064710306 292 VALLEY RUN HERCULES CA 94547 292 VALLEY RUN 21/11 340.16 30 370.16 4064810247 145 MESA CT HERCULES CA 94547 145 MESA CT 21/10 589.36 30 619.36 4064810510 2 TARN CT HERCULES CA 94547 2 TARN CT 21/05 263.82 30 293.82 4064810510 2 TARN CT HERCULES CA 94547 2 TARN CT 21/11 286.62 30 316.62 4064810619 12 TARN CT HERCULES CA 94547 12 TARN CT 21/11 271.61 30 301.61 4064820071 7 MORAINE CT HERCULES CA 94547 7 MORAINE CT 21/12 549 30 579 4064910260 PO BOX 21625 EL SOBRANTE CA 94820 10 PEAK CT 21/10 342.95 30 372.95 4065020069 3 PLAYA CT HERCULES CA 94547 3 PLAYA CT 21/11 315.02 30 345.02 4065020077 2 PLAYA CT HERCULES CA 94547 2 PLAYA CT 21/11 57.64 30 87.64 4065400188 1545 5TH AVE OAKLAND CA 94606 598 DUTCH ELM DR 21/11 384.39 30 414.39 4065400451 593 SILVER MAPLE DR HERCULES CA 94547 593 SILVER MAPLE DR 21/05 312.65 30 342.65 4065400451 593 SILVER MAPLE DR HERCULES CA 94547 593 SILVER MAPLE DR 21/11 340.16 30 370.16 4065500615 524 ROSEWOOD LN HERCULES CA 94547 524 ROSEWOOD LN 21/05 312.65 30 342.65 4065500615 524 ROSEWOOD LN HERCULES CA 94547 524 ROSEWOOD LN 21/11 340.16 30 370.16 4070200011 2 CRYSTAL CIR HERCULES CA 94547 2 CRYSTAL CIR 21/11 126.67 30 156.67 4070200037 10 CRYSTAL CIR HERCULES CA 94547 10 CRYSTAL CIR 21/06 315.02 30 345.02 4070200037 10 CRYSTAL CIR HERCULES CA 94547 10 CRYSTAL CIR 21/12 379.68 30 409.68 4070300167 115 JASPER CT HERCULES CA 94547 115 JASPER CT 21/08 343.69 30 373.69 4070420056 360 TURQUOISE DR HERCULES CA 94547 360 TURQUOISE DR 21/10 333.97 30 363.97 4070540192 100 AMETHYST CT HERCULES CA 94547 100 AMETHYST CT 21/10 342.8 30 372.8 4071130191 698 TURQUOISE DR HERCULES CA 94547 698 TURQUOISE DR 21/12 315.02 30 345.02 4071510087 1563 SWALLOW WAY HERCULES CA 94547 1563 SWALLOW WAY 21/11 370.69 30 400.69 4071710349 1906 PHEASANT DR HERCULES CA 94547 1906 PHEASANT DR 21/12 319.87 30 349.87 4071800157 130 ORIOLE CT HERCULES CA 94547 130 ORIOLE CT 21/07 347.58 30 377.58 4071910063 439 SPARROW DR HERCULES CA 94547 439 SPARROW DR 21/05 800.71 30 830.71 4071910063 439 SPARROW DR HERCULES CA 94547 439 SPARROW DR 21/11 842.36 30 872.36 4071920294 139 CARDINAL WAY HERCULES CA 94547 139 CARDINAL WAY 21/12 315.02 30 345.02 4071930293 1969 PHEASANT DR HERCULES CA 94547 1969 PHEASANT DR 21/07 346.06 30 376.06 4072030010 1532 PARTRIDGE DR HERCULES CA 94547 1532 PARTRIDGE DR 21/06 571.04 30 601.04 4072030010 1532 PARTRIDGE DR HERCULES CA 94547 1532 PARTRIDGE DR 21/12 603.19 30 633.19 4072040126 202 STARLING WAY HERCULES CA 94547 202 STARLING WAY 21/05 569.33 30 599.33 4072040126 202 STARLING WAY HERCULES CA 94547 202 STARLING WAY 21/11 602.99 30 632.99 38 4072040142 15605 BAYPOINT AVE SAN LEANDRO CA 94579 214 STARLING WAY 21/05 49.2 30 79.2 4072040142 15605 BAYPOINT AVE SAN LEANDRO CA 94579 214 STARLING WAY 21/11 332.76 30 362.76 4072420013 202 BOBOLINK WAY HERCULES CA 94547 202 BOBOLINK WAY 21/07 344.53 30 374.53 4072520028 2080 PHEASANT DR HERCULES CA 94547 2080 PHEASANT DR 21/12 364.01 30 394.01 4072810049 4790 SNOWY EGRET WA OAKLEY CA 94561 253 FALCON WAY 21/07 344.26 30 374.26 4072810056 259 FALCON WAY HERCULES CA 94547 259 FALCON WAY 21/05 327.86 30 357.86 4072810056 259 FALCON WAY HERCULES CA 94547 259 FALCON WAY 21/11 409.44 30 439.44 4072810080 277 FALCON WAY HERCULES CA 94547 277 FALCON WAY 21/07 622.73 30 652.73 4073010045 457 FALCON WAY HERCULES CA 94547 457 FALCON WAY 21/08 319.03 30 349.03 68,340.85 6,210.00 74,550.85
39 111 Civic Drive
Hercules, CA 94547City of Hercules
Legislation Details (With Text)
File #: Version: 122-091 Name:
Status:Type: Public Hearing Agenda Ready
File created: In control:3/2/2022 City Council
On agenda: Final action:3/8/2022
Title: Willow Avenue Self Storage Project - Sanitary Sewer Disposal System Recommendation: Receive a status update on the sanitary sewer disposal system that has yet to be installed by the Developer, provide feedback on staff's proposed measures to allow the self-storage facility to open in the interim, and authorize staff to enter into negotiations on an amendment to the development agreement for Council consideration that will facilitate the completion of a public system intended to serve all properties in the Willow corridor catchment basin.
Sponsors:
Indexes:
Code sections:
Attachments: Staff Report - Willow Self Storage Sanitary Sewer Disposal System.pdf Attach 1 - Resolution 18-058 - Willow Ave Commercial Project.pdf Attach 2 - Ordinance 513 - Hercules Self Storage with Signed Developer Agreement.pdf Attach 3 - Willow Private SS Exhibit.pdf
Attach 4 - Conceptual Lift Station and Conveyance System.pdf Attach 5 - 02222022 Correspondence from Hercules Self Storage.pdf Action ByDate Action ResultVer.
Willow Avenue Self Storage Project - Sanitary Sewer Disposal System Recommendation: Receive a status update on the sanitary sewer disposal system that has yet to be installed by the Developer, provide feedback on staff's proposed measures to allow the self- storage facility to open in the interim, and authorize staff to enter into negotiations on an amendment to the development agreement for Council consideration that will facilitate the completion of a public system intended to serve all properties in the Willow corridor catchment basin.
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40 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of March 8, 2022
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Michael Roberts, Public Works Director/City Engineer
SUBJECT: Willow Avenue Self-Storage Project – Sanitary Sewer Disposal System
RECOMMENDED ACTION:
Receive a status update on the sanitary sewer disposal system that has yet to be installed by the Developer, provide feedback on staff’s proposed measures to allow the Self-Storage Facility to open in the interim, and authorize staff to enter into negotiations on an amendment to the Development Agreement for Council consideration that will facilitate the completion of a public system intended to serve all properties in the Willow corridor catchment basin.
FISCAL IMPACT OF RECOMMENDATION:
There would be no cost to the City for the Developer, Hercules Self-Storage Management LLC, to install temporary sewer disposal facilities (portable toilets and hand washing stations) to allow their business to open for an interim period and to submit a surety, either a bond or cash deposit for $550K, to provide the City the necessary assurances that the sanitary sewer disposal system will be completed in the future.
Over the last several years, as the challenges involved with installing a stand-alone private system became increasingly apparent, the Developer and City staff have had informal discussions on how a public system could be constructed instead that would ultimately serve all 7 properties in the Willow Corridor. Such a system is estimated to cost approximately $550K. The Developer has indicated they initially intended to spend $300K in collaboration with Valley Bible Church and would be amenable to expending another $150K if they were reimbursed from any future annual revenue stream to the City from the Facility greater than the $150K originally anticipated. In this arrangement, the City could contribute the remaining $100K given the public benefit of providing reliable sewer service to the remaining property owners in the Willow sewer catchment area that would avoid overflows and avoid adverse impacts on public health and safety.
DISCUSSION:
Construction on the Willow Self-Storage Facility is nearing completion. This project was fully entitled in September 2018 (Attachment #1) and consists of 4 buildings with a total of 821 mini- storage units and an office building. With regards to sewer effluent generation, the facilities are required to provide 2 toilets and 3 sinks in the office building. 41 The Self-Storage Facility is located on a 3.4 acre parcel at 1444 Willow Avenue. There is an adjacent 2.9 acre parcel at the same site which is currently vacant. The Developer plans to develop automobile-related services at this second site in the future , which would also be served by the sanitary sewer disposal system.
Currently, there is a private wastewater conveyance system in place that serves properties on the Willow Corridor (Atachment #3). It begins in front of Valley Bible Church, where effluent is conveyed in a gravity main in Willow Avenue onto the Singh (formally Carone) property. From there, a sewer lift station pressurizes the effluent through a short force main to a public gravity main that runs on the Singh property parallel to Willow towards the Hercules Transit Station.
The private system currently serves Valley Bible Church, West Coast Drilling, and Caltrans. It was installed in Willow Avenue (i.e. the old SR-4 highway) before the street was annexed by the City from Caltrans. From the City’s perspective, the lift station is in poor condition, is unreliable, and has had numerous sanitary sewer overflows in the past. The most recent overflow occurred last month when power was lost as the system does not appear to have an overflow alarm or a backup generator. Ownership and maintenance responsibilities have been contentious in the past and the City does not have any records of the facility on file.
Given the private sewer service for the Willow catchment area was considered unreliable, the Developer was required to secure their own sanitary sewer disposal system as a condition to gain their full entitlements. Per Condition of Approval No.2:
Applicant/Developer shall design and construct a sanitary sewer disposal system to the satisfaction of the City Engineer. The system shall comply with City and/or Contra Costa County Department of Environmental Health standards. Applicant/Developer shall secure necessary approvals and easements from private property owners and/or government agencies as required to construct and maint ain the system. Applicant/Developer shall demonstrate the viability of the system to the satisfaction of the City Engineer prior to the issuance of any construction permits for the Project.
In June 2020 the Developer submitted a conceptual plan (Attachment #4) demonstrating the viability of the system, which consisted of a new lift station and piping on the north side of Willow Avenue, opposite the then Carone property (i.e. now Singh property). This option included running a new force main down the length of Willow Avenue to the Hercules Transit Center, which would be very costly, because the Developer was unable to secure rights from Carone to route the forcemain across his property to the point of connection with the public system. Since that time, the Developer has worked with Singh to secure the necessary rights. Due to all the challenges encountered to date, the Developer is now asking the City for relief (Attachment #5).
Given the contentious history of the private lift station, and the Develop er’s and Valley Bible Church’s request for assistance from the City to find a workable solution, staff is recommending a public system be installed in the public right of way similar to what is shown on the conceptual plan. Due to the challenges of the site and requirements for a public lift station (i.e. overflow alarm and standby generation secured in a building), the cost for such a system is estimated to be $550K, 42 which is $250K higher than the $300K originally budgeted by the Developer, who is partner ing on the funding with the Church.
Per the Development Agreement (DA) with Hercules Self-Storage Management LLC (Att #2), the City is entitled to 10% of the gross revenue derived from the “Base Rent” as defined in Section 3.1 of the DA. This obligation for the owner begins 3 years after completion of the mini storage portion of the project or after 90% of the units have been rented, whichever comes first. At the time the DA was agreed upon, this revenue stream was projected to be within $150K - $200K per year. However, based upon current market conditions the Developer now believes the City’s share would be closer to $250K annually. To help bridge the funding gap, one option would be for the Developer to fund an additional $150K for the sewer system up front, then be reimbursed by the City from revenue that exceeds $150K per year in the future.
Lastly, the City could elect to fund the remaining $100K given the system will be sized to serve all the properties in the Willow catchment area, including Caltrans, Singh, and West Coast Drilling. With Council’s authorization, staff is prepared to formally negotiate the terms of such an agreement that would be captured in an Amended Development Agreement that could come back to Council for consideration within 4 months.
In summary form, staff is proposing the following:
Developer
1. Designs and builds sewer lift station facility to Hercules public standards.
2. Funds construction contract cost of the lift station as follows: $300K out of pocket, reimbursed up to an additional $150K by City from future annual revenue to City for the Self-Storage Facility above $150K per year (per DA, revenue to City is 10% of Base Revenue).
3. Secures easements needed across Singh property.
4. Provides interim sanitary sewer facilities on-site (i.e. portable toilets and handwashing facilities)
until new lift station is fully operational.
5. Provides security of cash or bond equivalent to $550K, the anticipated construction cost of the new lift station.
6. Funds all design and project management costs.
City
1. In recognition of public benefit of the facility (i.e. future connections from properties in the vicinity that would need service, avoiding sanitary sewer overflows), contributes $100K to the construction contract cost.
2. For same reason, funds all plan check and inspection costs.
3. Issues a temporary certificate of occupancy until the new system is completed.
4. Reimburses Developer per 2. Above.
5. Owns and maintains new system, once accepted as complete.
This assumes a construction contract cost of $550,000. The Amended Development Agreement would be brought to Council for consideration within 4 months. 43 Financial Impact
Description: None at this time.
Funding Source:
Budget Recap:
Total Estimated cost: $ New Revenue: $
Amount Budgeted: $ Lost Revenue: $
New funding required: New Personnel: $
Council Policy Change: Yes No
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© 2022 Digital Map Products. All rights reserved.
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HERCULESCONTRA COSTA COUNTY
PROPOSED SANITARY SEWER LIFT STATION
DATE:
DATE:
DATE:
CALIFORNIANO.REVISIONSCHECKED:
DESIGNED UNDER THE DIRECTION OF:
ENGINEER
R.C.E. No./REGISTRATION EXPIRATION DATE
DATE APP BY
DESIGN:
DRAWN:
DATE
SHEET
OFSHEETS
DETAIL A - PROPOSED LIFT STATIONTYPICAL SECTION DETAIL WITH SSFH 150
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111 Civic Drive
Hercules, CA 94547City of Hercules
Legislation Details (With Text)
File #: Version: 122-087 Name:
Status:Type: Consent Agenda Ready
File created: In control:2/28/2022 City Council
On agenda: Final action:3/8/2022
Title: Minutes
Recommendation: Approve the regular meeting minutes of February 22, 2022.
Sponsors:
Indexes:
Code sections:
Attachments:
MInutes - 022222 - Regular.pdf
Action ByDate Action ResultVer.
Minutes
Recommendation: Approve the regular meeting minutes of February 22, 2022.
City of Hercules Printed on 3/2/2022Page 1 of 1
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185
111 Civic Drive
Hercules, CA 94547City of Hercules
Meeting Minutes
City Council
Mayor Dion Bailey
Vice Mayor Alexander Walker-Griffin
Council Member Dan Romero
Council Member Chris Kelley
Council Member Tiffany Grimsley
Dante Hall, City Manager
Patrick Tang, City Attorney
Lori Martin, City Clerk
6:00 PMTuesday, February 22, 2022
Zoom Meeting ID: 830 3733 3690
Zoom Passcode: 574261
Zoom Phone Number: 1-669-900-6833
I. SPECIAL MEETING - CLOSED SESSION – 6:00 P.M. CALL TO ORDER - ROLL CALL Mayor Bailey called the meeting to order at 6:10 p.m.
Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.
Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley
Present: 5 -
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
None.
III. CONVENE INTO CLOSED SESSION
City Attorney Tang announced the item listed on the agenda to be discussed in closed session.
Mayor Bailey recessed the meeting at 6:11 p.m.
1. 22-077 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Government Code Section 54956.9 (e)(1): In one (1) matter.
IV. REGULAR MEETING – 7:00 P.M. CALL TO ORDER - ROLL CALL Mayor Bailey called the meeting to order at 7:00 p.m.
Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.
Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley
Present: 5 -
V. REPORT ON ACTION TAKEN IN CLOSED SESSION
City Attorney Tang identified the item discussed in closed session and stated that no were no final or reportable actions to report.
186
February 22, 2022City Council Meeting Minutes
VI. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Vice Mayor Walker-Griffin.
VII. MOMENT OF SILENCE
Mayor Bailey called for a moment of silence for Robert Aubry, age 58 who was shot in the head in Napa, CA on Hwy 29 and is now recovering in the hospital.
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS
None.
IX. AGENDA ADDITIONS/DELETIONS
None.
X. PUBLIC COMMUNICATIONS
None.
XI. PUBLIC HEARINGS
None.
XII. CONSENT CALENDAR
Council Member Kelley made a request to pull item XII.6, Extension of Lew Edwards and FM3 Contract.
Mayor Bailey pulled item XII.6 from the consent calendar for a discussion.
Council Member Kelley stated that she pulled the item due to the cost of the contract in addition to what has already been spent and felt it merited some discussion. Council Member Kelley stated that she would like to further understand what the consultant will be polling on in regards to the real estate property transfer tax.
City Manager Hall provided a detailed staff report on the item. Members of the City Council discussed and asked questions and provided comments.
A motion was made by Council Member Kelley to continue this item and bring it back to the next meeting for further discussion and possible decision and action. The motion was seconded by Council Member Romero.
Council Member Kelley amended her motion to clarify further that the motion would be to bring this item back to the next City Council meeting for discussion with Lew Edwards in attendance to get clarification on the
187
February 22, 2022City Council Meeting Minutes
measures, wording on the polling and on the timeline dates and after the discussion vote on the measure and whether or not to move forward with the Lew Edwards proposal. The motion was seconded by Council Member Grimsley. The motion passed by the following vote:
AYES: COUNCIL MEMBERS: T. Grimsley, C. Kelley, D. Romero.
NOES: Vice Mayor A. Walker-Griffin, Mayor D. Bailey
ABSTAIN: None.
MOTION: Motion by Council Member Kelley, seconded by Vice Mayor Walker-Griffin to approve Consent Calendar Items 1 through 5.
Aye: Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.
Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley 5 -
1. 22-078
Minutes
Recommendation: Approve the special meeting minutes of February 7, 2022 and February 15, 2022 and the regular meeting minutes of February 8, 2022.
Approved.
2. 22-074 Emergency Declaration Extension
Recommendation: Adopt a Resolution extending the Declaration of Local Emergency by 30 days to April 1, 2022.
Approved.
3. 22-075
2nd Reading and Adoption of Ordinance 536, an Ordinance Amending the Hercules Municipal Code by Adding Section
13-32.500 to Allow Minimum Parking Exceptions
Recommendation: The Planning Commission and City staff recommend that the City Council adopt an Ordinance amending the City of Hercules Municipal Code by adding Section 13-32.500 to allow parking exceptions for reducing the minimum amount of required parking.
Approved.
4. 22-079
Acceptance of the Engie Energy Services Project
Recommendation: Adopt a Resolution accepting the Engie Energy Services Project as complete for a total amount of $4,005,348 and authorize the filing of a Notice of Completion with the Contra Costa County Recorder's office.
Approved.
5. 22-081
Resolution Authorizing the City to Submit Applications to CalRecycle for Grant Funding
Recommendation: Adopt a Resolution authorizing the City to submit
188
February 22, 2022City Council Meeting Minutes
applications to the California Department of Resources Recycling and Recovery (CalRecycle) for grant funding.
Approved.
6. 22-080 Extension of Lew Edwards and FM3 Contract to the Lew Edwards Group Contract for Polling and Strategic Communication Services for Ballot Measures to Extend the Utility Users Tax, and the Viability of Becoming a Charter City for the Limited Purpose of Increasing the Real Property Transfer Tax
Recommendation: Adopt a Resolution authorizing the City Manager to execute an agreement for Election Opinion Poll Services with the Lew Edwards Group for an amount not to exceed $131,250 subject to the City Attorney's review and available budget appropriations.
Item pulled from Consent Calendar.
XIII. DISCUSSION AND/OR ACTION ITEMS
1. 22-072
FY 2021-22 Mid-Year Budget Review and Miscellaneous Mid-Year Budget Appropriations and Adjustments
Recommendation: Receive a report on the FY 2021-22 mid-year budget review and adopt a Resolution approving various mid-year budget appropriations and adjustments.
City Manager Hall introduced the item and Finance Director Gato provided a staff report and presentation of the FY 2021-22 Mid-Year Budget Review.
Members of the City Council asked questions and provided comments.
Members of the City Council discussed adding appropriations to the proposed budget amendments (Attachment 2).
Mayor Bailey requested the City Clerk to take a poll for consensus on adding a $50,000 budget appropriation for a set-aside budget allocation for COVID-19 related supplies if needed. There was a unanimous vote and consensus to add this budget appropriation to Attachment 2, Proposed Budget Amendments.
Mayor Bailey requested the City Clerk to take a poll for consensus on adding an additional $50,000 to the previously approved budget allocation for an all-abilities swing set to be installed at Refugio Valley Park. There was a unanimous vote and consensus to add this budget appropriation to Attachment 2, Proposed Budget Amendments.
MOTION: Motion by Council Member Kelley, seconded by Council Member Romero to adopt Resolution 22-013, as amended.
Aye: Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.
Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley 5 -
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February 22, 2022City Council Meeting Minutes
2. 22-076 Update on Returning to In-Person Hybrid Meetings Recommendation: Receive report, discuss, and provide direction to staff.
City Manager Hall introduced the item and provided a staff report.
Members of the City Council asked questions and provided comments.
There was a consensus of Council to bring this item back in March for discussion with a possible return to in-person hybrid meetings in the Council Chambers starting in April 2022.
XIV. PUBLIC COMMUNICATIONS
None.
XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,
COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS
AND FUTURE AGENDA ITEMS
City staff and Council Members reported on attendance at events and community and regional meetings. There were no requests for future agenda items.
XVI. ADJOURNMENT
Mayor Bailey adjourned the meeting at 8:38 p.m.
_________________________________
Dion Bailey, Mayor
Attest:
_______________________________
Lori Martin, MMC
Administrative Services Director/City Clerk
190
111 Civic Drive
Hercules, CA 94547City of Hercules
Legislation Details (With Text)
File #: Version: 122-088 Name:
Status:Type: Consent Agenda Ready
File created: In control:3/1/2022 City Council
On agenda: Final action:3/8/2022
Title: Contract Amendment for First Carbon Solutions to Prepare the Environmental Review of D.R.
Horton's Residential Development Proposal for 215 Skelly Recommendation: Authorize the City Manager to execute a contract amendment for a total contract amount not to exceed $146,900.
Sponsors:
Indexes:
Code sections:
Attachments: Staff Report - Skelly Project CEQA - FCS Contract Amendment Attach 1 - Skelly Project CEQA - FCS Contract Amendment - resolution Exhibit A - Skelly Residential Project ISMND - FCS Proposal (total) Action ByDate Action ResultVer.
Contract Amendment for First Carbon Solutions to Prepare the Environmental Review of D.R.
Horton's Residential Development Proposal for 215 Skelly Recommendation: Authorize the City Manager to execute a contract amendment for a total contract amount not to exceed $146,900.
City of Hercules Printed on 3/2/2022Page 1 of 1
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191
Staff report to City Council —March 8, 2022 Page 1
STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of March 8, 2022
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Robert Reber, Community Development Director
SUBJECT: Contract Amendment for Environmental Review of D.R. Horton’s Residential Development Proposal for 215 Skelly
RECOMMENDED ACTION:
Adopt a resolution (see Attachment 1) authorizing the City Manager to execute an amendment to an existing agreement with First Carbon Solutions (FCS ) to provide planning services and to prepare an Initial Study/Mitigated Negative Declaration (IS/MND) and associated technical studies for the proposed Skelly Development Project at 215 S kelly for an amount not to exceed $146,900, as described in the proposal for services (see Exhibit A).
DISCUSSION:
Homebuilder D.R. Horton has indicated to City staff its intention to submit an application to develop the 7.3-acre former horse ranch at 215 Skelly (Assessor’s Parcel Number 404 -020-012- 5). The proposed project would remove the existing structures, trees, and vegetation and would construct 40 single-family homes. Under the California Environmental Quality Act (CEQA), the City is require d to prepare and release for public comment an environmental assessment of the project prior to approving the project. The environmental review commences with preparation of an initial study (IS) to identify and confirm the level of potential impacts. Based on staff’s preliminary understanding of the proposed project, it appears that a Mitigated Negative Declaration (MND) may be appropriate for the project.
Although D.R. Horton has not yet submitted a project application, D.R. Horton in late 2021 paid the City an $88,000 deposit fee and requested that the City initiate the required environmental review of the project so that the project would be ready sooner for public review and consideration. Thus the City in November 2021 —under the City Manager’s spending approval authority—entered into a $50,000 preliminary contract with FCS, a pre-qualified consulting firm, to immediately begin work on the environmental review . FCS provided the City a follow -up proposal to conduct and complete the project’s entire environmental review for an amount not to exceed $146,900. The Scope of Work reflects the level of effort required to prepare an IS/MND , but also includes planning entitlement services to be provided by MIG, another pre -qualified consultant services firm, in this case acting as a subcontractor to FCS. Because the full amount of 192
Staff report to City Council —March 8, 2022 Page 2
the contract exceeds the City Manager’s spending authority, City staff recommend that the City Council approve the contract amendment.
FISCAL IMPACT OF RECOMMENDATION:
Per the C ity’s Master Fee Schedule, applicants are responsible for reimbursing the City for all expenditures, plus 20%, incurred in processing a development review application. On November 9, 2021, D.R. Horton paid the City an initial deposit fee of $88,000 , sufficient to cover the initial $50,000 services agreement the City and FCS entered into on November 30. Before the City expends any funds beyond the initial $88,000 deposit amount —and no later than submittal of a development review application—D.R. Horton will be required to pay an additional $88,280 to the City ($176,000 total), to cover the full cost of the FCS contract, plus 20%. Thus D.R. Horton as the applicant bears the full cost of the entitlement review, and there is no impact to the City’s budget or finances.
ATTACHMENTS:
Attachment 1 – Resolution
o Exhibit A – First Carbon Solutions Proposal for Services 193
RESOLUTION NO. 22-
RESOLUTION OF THE CI TY COUNCIL OF THE CI TY OF HERCULES
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO AND
EXISTING AGREEMENT WITH FIRST CARBON SOLUTIO NS TO PREPARE THE
ENVIRONMENTAL REVIEW FOR THE SKELLY DEVE LOPMENT PROJECT FOR AN AMOUNT NOT TO EXCEED $146,900.
WHEREAS, D.R. Horton has indicated its intention to submit an application to develop the approximately 7.3-acre former horse ranch at 215 Skelly (Assessor’s Parcel Number 404 - 020-012-5) by removing the existing structures, trees, and vegetation and constructing 40 single- family homes; and
WHEREAS, on November 9, 2021, D.R. Horton paid the City an initial deposit fee of $88,000 and requested that the City initiate the environmental review of the project as required under the California Environmental Quality Act (CEQA); and
WHEREAS, First Carbon Solutions (FCS), a pre-qualified consulting firm for the City of Hercules, and its subcontractors have the qualifications and experience necessary to prepare the required environmental review documents for the project; and
WHEREAS, on November 30, 2021, the City —under the City Manager’s spending approval authority —entered into an agreement with F CS, to initiate the Skelly project’s environmental review for an amount not to exceed $50,000; and
WHEREAS, the full cost of FCS’s services to complete the environmental review is estimated to be $146,900, an amount that requires City Council approval, and
WHEREAS, Per the City’s Master Fee Schedule, applicants are responsible for reimbursing the City for all expenditures, plus 20%, incurred in processing a development review application, so that D.R. Horton as the applicant bears the full cost of the e nvironmental review, and there is no impact to the City’s budget or finances.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that the City Council hereby authorizes the City Manager to execute an amendment to the existing agreement with FCS to prepare the environmental review documents for the Skelly Development Project for a total amount not to exceed $146,900.
The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the eighth day of March 2022, by the following vote of the Council:
AYES:
194
NOES:
ABSTAIN:
ABSENT:
____________________________
Dion Bailey, Mayor
ATTEST:
Lori Martin
Administrative Services Director/City Clerk
EXHIBITS
Exhibit A: First Carbon Solution’s Proposal and Scope of Work to Provide Planning Services and Prepare an Initial Study/Mitigated Negative Declaration and Associated Technical Studies for the Skelly Residential Project in Hercules, California 195
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Cover Letter
October 13, 2021
Robert Reber, Community Development Director
City of Hercules
111 Civic Drive
Hercules, CA 94547
Subject: Scope of Work to Provide Planning Services and Prepare an Initial Study/Mitigated Negative Declaration and Associated Technical Studies for the Skelly Residential Project in Hercules, California
Dear Robert:
FirstCarbon Solutions (FCS) is pleased to submit this Scope of Work, schedule, and fee for planning services and preparation of an Initial Study/Mitigated Negative Declaration (IS/MND) and associated technical studies for the proposed Skelly Development Project (project) at 215 Skelly in the City of Hercules (City).
FCS has been providing planning and environmental consulting services for more than 38 years to public and private sector clients throughout the San Francisco Bay Area, including the City of Hercules and has extensive knowledge and key expertise regarding residential projects. We have completed and are completing several environmental documents and technical studies for residentials projects throughout Northern California including the Del Hombre Apartments Project Environmental Impact Report (EIR) in unincorporated Contra Costa County, CityWalk Master Plan EIR in the City of San Ramon, 100 38th Street Residential Project Initial Study/Consistency Checklist in the City of Richmond, and the Stonebridge Subdivision Project Initial Study/Mitigated Negative Declaration (IS/MND) in the City of Santa Rosa to name just a few. In addition to our in-house team of technical experts and CEQA/legal counsel, FCS is proposing a seasoned management team to oversee this project.
FCS welcomes the opportunity to continue our successful relationship with the City of Hercules and provide environmental review for the proposed project. FCS is committed to responding to project needs in a timely and cost-effective manner.
Should you have any questions regarding this Scope of Work, please contact me at 415.713.5223 or via email at [email protected] or Jason Brandman at 925.200.1656 or at [email protected].
Sincerely,
Mary Bean, Project Director
FirstCarbon Solutions
1350 Treat Boulevard, Suite 380
Walnut Creek, CA 94597
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1 Scope of Work
PROJECT UNDERSTANDING
FCS understands that the proposed project is located at 215 Skelly, in the City of Hercules, California with Assessor’s Parcel Number 404-020-012-5. The project site currently contains a single-family residence, 58 horse paddocks, a permitted 2,400 square foot storage building, and miscellaneous other outbuildings. There are mature trees throughout the site. The site is bordered by single-family homes to the north and east; Pinole Creek forms the western property line along with two single family homes located on separate lots. The BNSF rail line runs adjacent to the southern project boundary. The Pinole Senior Center Building and undeveloped land is to the south of the BNSF rail line.
The site is designated and zoned Residential Single-Family Low Density (RS-L), which allows for 2-7 units per acre, a minimum parcel size of 6,000 SF, and a maximum building height of 35 feet.
The proposed project would remove the existing trees, vegetation, and existing structures and would construct 40 single family homes on the approximately 7.3-acre site with lot sizes ranging from approximately 4,230 to 6,882 square feet. The proposed project would also include a bioretention parcel; three separate utility easement parcels; and internal streets.
It is assumed that the project applicant would provide the following studies:
• Biological Resources Assessment, including an arborist report • Phase I Environmental Site Assessment
• Geotechnical Investigation
• Hydrological Supporting Information, including a stormwater control plan showing capacity/volume of the proposed bioretention basin(s).
Based on our understanding of the proposed project, it appears that a Mitigated Negative Declaration (MND) may be appropriate. FCS recommends the preparation of an initial study (IS) to identify and confirm the level of potential impacts. The following Scope of Work reflects the level of effort required to prepare an IS/MND.
SCOPE OF WORK–PLANNING SERVICES
As a subconsultant to FCS, MIG would provide planning entitlement services. The proposed project is seeking the following entitlements:
• Planned Development Plan per Hercules Municipal Code (HMC) Chapter 13-48, including any deviations to development standards
• Tentative Subdivision Map per HMC Chapter 10-2
• Design Review per HMC Chapter 13-42
• Environmental Review
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2 Scope of Work
Planning services to be provided by MIG include the following tasks:
Task 1: Preliminary Review
Subtask 1.1: Project Initiation
At the beginning of the project, the Project Manager will participate in two meetings to initiate the project:
• Kick-off meeting with FCS and City staff to finalize protocols and communications, discuss involvement by organizations outside the City, and outline overall expectation and desired outcomes, and
• Development Review Meeting with relevant City departments
Subtask 1.2: Background Data Collection and Review
At the project initiation, MIG will gather project data and information and review relevant plans, studies, and any other pertinent data such as technical studies or previous staff reports and resolutions. Data collection will include sample public notices, staff reports, resolutions, and standard conditions of approval.
Subtask 1.3: On-Going Management
Throughout the project, MIG will coordinate with FCS, City staff and the applicant team to ensure thorough, accurate, and timely application processing. As needed, MIG will participate in meetings with City staff, the applicant team, and FCS to identify strategies for addressing issues, and maintain open communication between all parties.
Task 2: Permit Processing–Conditional Use Permit, Design Review, and Tentative Map
Subtask 2.1: Application Coordination and Initial Review MIG will prepare memoranda and circulate project information for up to three rounds of review and comment. MIG will generate letters to the applicant identifying the status of their application (e.g. complete, or incomplete) and identifying necessary materials to support project analysis. Services will focus on coordinating communication between Planning Staff, City departments, FCS, community organizations, and decision-makers.
Subtask 2.2: Analysis and Recommendations
MIG will prepare written analysis of project issues, possible responses to issues, and a comparison of project conformance with applicable state and city policies and programs, as well as conditions from the different sources mentioned above. This information will be presented as a staff report and resolution 198
3 Scope of Work
and will include a list of recommended changes that may be necessary. The analysis will be provided as an Administrative Draft, Draft, and Final report. At each stage of report development, MIG would meet with City staff and, if appropriate, the project sponsor, to explore opportunities to streamline project complexities.
Subtask 2.3: Decision Making
MIG will prepare materials (typically a PowerPoint) for presentation at public hearings before the Planning Commission and City Council. The scope of services assumes there will be one Planning Commission hearing and one City Council hearing.
Deliverables
• Transmittal Memoranda describing the project and soliciting input • Incomplete/Incompleteness Letters
• Notice of Public Hearing for 1 Planning Commission and 1 City Council meeting; this Scope of Works assumes that City staff will be responsible for sending notices to neighbors, newspaper, etc. • Planning Commission Staff Reports, Conditions of Approval, Resolution, and Exhibits • City Council Staff Reports, Conditions of Approval, Resolution, and Exhibits • Attendance and Presentation at 1 Planning Commission and 1 City Council hearing
Assumptions
• There will be no more than one round of project review to determine whether the application is complete for processing.
• Quality assurance/control will be done by MIG.
• MIG staff will visit the property; public hearings will occur virtually; all other meetings will occur by phone.
• Direct expenses, such as for any significant copying costs, will be billed at cost, and will be in addition to the above total; this would first be discussed with the City. • Notice and agenda preparation and similar administrative tasks would be the responsibility of City • Attendance at any additional meetings, changes to the project description, or expansion of this Scope of Work or level of analysis required will be billed on a time and materials basis.
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SCOPE OF WORK–INITIAL STUDY/MITIGATED NEGATIVE DECLARATION Task 1: Project Initiation and Kick-off Meeting
FCS will review relevant background material, develop an initial data needs list, and coordinate with the City to schedule a kick-off meeting via teleconference. FCS will clarify and confirm relevant aspects of the Project Description, identify key points of contact, and review pertinent background documents to ensure project understanding. FCS will also provide a Request for Information (RFI), which will detail additional information needed to complete CEQA analyses for specific technical areas (Air Quality, Energy, etc.). A site visit will be conducted as part of the project initiation process.
This Scope of Work, schedule, and fee assume that the applicant will provide the following information to FCS at the kickoff meeting:
• Existing and proposed site plans and building evaluations • Phase lengths of construction, including any overlapping of phases • Approximate start/end of construction and approximate start/end of operations • Types and number of construction equipment anticipated • On-site and off-site soil movement, in cubic yards (if any) • Sustainability project design features
• Landscape plans
• Biological Resources Assessment
• All other applicant-prepared technical studies
Task 2: Preparation of Comprehensive Project Description Using the information obtained during project initiation, FCS will prepare a comprehensive Project Description for the City’s review and approval. Pursuant to CEQA Guidelines Section 15124, the Project Description will identify the project location, describe the project characteristics, identify necessary approvals, and list other agencies that may use the document for environmental review. The Project Description will describe the relationship of the proposed project to the City’s General Plan and Zoning Ordinance. The Project Description will use graphics and tables to clearly convey relevant information to the reviewer and will include all of the information required to define the proposed project for the purposes of CEQA, including a clear explanation of the development components of the proposed project, a description of the construction and operational activities associated with the proposed project, and clearly illustrated project components displayed in exhibits based on Geographic Information System (GIS) data.
The approved Project Description will form the basis for evaluating the proposed project in the IS/MND.
The draft Project Description will be submitted to the City for review and approval prior to the development of the Administrative Draft IS/MND. It is assumed that the City will provide one set of consolidated, vetted comments (with tracked changes in the Word document) on the draft Project 200
5 Scope of Work
Description and a complete RFI to FCS within 2 weeks of submittal. Changes to the Project Description made after the City has issued their approval may require a Change Order and may extend the project schedule.
Deliverable
• Electronic version (via email in Microsoft Word and PDF) of the Project Description to the City
Task 3: Technical Analysis and Peer Review of Applicant-Prepared Studies Subtask 3.1: Air Quality, Greenhouse Gas Emissions, and Energy Analysis FCS will prepare an air quality, Greenhouse Gas (GHG) Emissions, and energy analysis. The analysis will include an evaluation of short-term (construction) and long-term (operation) impacts. The analysis will be performed in accordance with CEQA Guidelines and applicable standards and guidance from the Bay Area Air Quality Management District (BAAQMD). The analysis will be wholly contained in the IS/MND and supporting technical data will be appended to the document. The tasks below will be required to perform the analysis.
Air Quality Analysis
FCS will include a general discussion and quantitative estimate of potential short-term construction and long-term operational regional criteria air pollutant and precursor emissions. Emissions will be quantified using the latest version of the California Emissions Estimator Model (CalEEMod). The modeling will incorporate the type and size of the proposed uses, construction phasing schedule, and other construction data (duration of construction, area of land to be disturbed/graded, etc.).
Long-term (i.e., operational) regional criteria air pollutant and precursor estimates will include emissions from the proposed project’s area-, stationary-, and mobile-sources. Mobile-source emissions will be based, in part, on the traffic analysis to be prepared for this project. Stationary sources, if any are proposed as part of the proposed project, will be quantified using appropriate emission factors and methodologies from BAAQMD, California Air Resources Board (ARB), and/or U.S. Environmental Protection Agency (EPA).
Greenhouse Gas Emissions Analysis
FCS will quantify the project’s construction and operational GHG emissions using assumptions and methodologies consistent with those used in the air quality analysis. Estimated GHG emissions will be evaluated against appropriate cumulative significance thresholds established in the BAAQMD CEQA Guidelines. BAAQMD quantitative thresholds of significance will be used to determine if the proposed project’s generation of GHG emissions, based on its mass emissions or GHG efficiency (GHG emissions per service population where service population equals the sum of residents and employees), is considered a significant impact. Pursuant to the CEQA Guidelines Appendix G, FCS will also evaluate the project’s design and purpose in the context of consistency with applicable GHG reduction plans. The 201
6 Scope of Work
GHG Emissions Analysis will also address the California Supreme Court ruling on the Newhall Ranch project and will utilize current approved methods for quantifying GHG impacts. Additional measures or design considerations will be proposed, as necessary, to reduce potential impacts to less than significant.
Energy Analysis
FCS will provide an analysis of energy impacts consistent with the current CEQA Guidelines Appendix F Energy analysis requirements. The analysis will summarize relevant federal, state, and local regulations and policies that address energy consumption and demand, alternative fuels, and nonrenewable resources, to determine whether the proposed project would conflict with or obstruct any required policies or mandatory measures related to energy conservation. Using the model inputs and assumptions associated with the air quality and greenhouse gas emissions analyses, FCS will provide energy consumption estimates associated with anticipated operation of the proposed project, dependent on the level of detail provided by the applicant. Specifically, the analysis will calculate on-site construction equipment fuel and electricity consumption, off-site construction vehicle fuel consumption, and project operation electricity, natural gas, and vehicle fuel consumption. The analysis will consider project design features that may affect the energy efficiency of the proposed project.
Health Risk Assessment
There are two scenarios that result in toxic air contaminant (TAC) exposure: when a generator of TACs is constructed near a sensitive receptor, or when a sensitive receptor is placed near a source of TACs.
Based on the proximity of sensitive receptors (residential land uses located within 50 feet of the project’s west, north, and east boundaries), FCS recommends performing a health risk assessment (HRA) to evaluate potential construction-related toxic air contaminant (TAC) impacts.
The major TAC that affects health impacts in the air is diesel particulate matter (DPM). DPM from the operation of diesel trucks and heavy construction equipment has been identified by the California Air Resources Board (ARB) as a carcinogen that can result in long-term health impacts. The proposed project has the potential to generate substantial DPM emissions during construction that would expose nearby sensitive receptors to elevated levels of TACs. The following tasks will be required for the HRA:
• Define what a sensitive receptor is and identify nearby sensitive receptors. • Identify applicable federal, State, and BAAQMD rules and regulations. • Identify health risk standards and acceptable cancer risk and the chronic and acute non-cancer risk thresholds from diesel emissions that are detailed in the HRA Guidelines. • Obtain the on-site construction equipment DPM emissions rates that were calculated in the air quality analysis prepared for the proposed project.
• Obtain the daily construction truck trip estimates used in the air quality analysis and calculate each truck trip’s DPM emissions rates.
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• Calculate the DPM concentrations at the nearby sensitive receptors associated with the on-site construction equipment and off-site truck emissions up to 1,000 feet from the project site, using the emissions rates provided in the previous steps and the methodology described in the HRA Guidelines. • Utilize the prior task’s calculated toxic air emission levels to calculate the cancer risk and the chronic and acute non-cancer health impacts at the nearby residential uses from construction of the proposed project.
There are no known existing major TAC sources in the project vicinity, therefore FCS assumes that an operational HRA will not be warranted to identify and quantify the potential cumulative health risks during project operation. However, in the process of evaluating operational air quality emissions, FCS will confirm whether potential operation emission levels would warrant an operational HRA; if an operational HRA is required, it would be accomplished as an additional service not included in this Scope of Work.
Data Needs and Assumptions
FCS will provide the applicant with an RFI that includes all necessary construction and operational parameters required for modeling. This Scope of Work assumes relevant data (e.g., heavy-duty equipment, hours of use for equipment or emergency generators, if proposed) for the construction and operational analysis will be provided by the applicant. However, if project-specific information is not available, FCS can work with the applicant to develop reasonable assumptions based on professional experience. If changes are made to the Project Description that would require re-modeling for the above Scope of Work, it would be accomplished as an additional service not included in this Scope of Work.
Subtask 3.2: Peer Review of Biological Resources Assessment FCS will peer review the applicant-provided Biological Resources Assessment (BRA) to ensure the BRA is prepared according to established industry best practices and accurately characterizes the project site.
The information will be reviewed for consistency, completeness, and adequacy for purposes of CEQA. As part of the peer review process, a qualified FCS Biologist will perform a field visit to verify the existing conditions of the project site. FCS will provide a brief peer review memorandum to the City that documents the peer review findings. Should the peer review result in revisions to the BRA, FCS will review a revised report for a second round of revision (this subtask assumes two rounds of peer review and one peer review memorandum). Once the BRA is deemed complete by the City, FCS will incorporate the applicant-provided BRA and additional information provided from the field visit into the Biological Resources Section of the IS/MND. This information will be appended to the CEQA document.
Deliverables
• Electronic version (via email in PDF) of the peer review memorandum to the City • Two rounds of peer review of the applicant-provided BRA
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Subtask 3.3: Cultural Resources Analysis
FCS will assess the potential for existing and undiscovered cultural and tribal cultural resources (TCRs) on the project site. The Phase I Cultural Resources Assessment (PI CRA) will detail the results of the field investigation, record searches, and any additional resources discovered because of the cultural resources analysis. This analysis will include recommendations for further study and/or mitigation within the project site, as needed. Copies of all correspondence and site survey photographs will be included in the appendices. The analysis will be provided in a stand-alone PI CRA and will require the following tasks.
Note that this Scope of Work assumes only one round of City comments and revisions to the PI CRA.
Record Searches
FCS will review and incorporate records search information from the Northwest Information Center affiliated with Sonoma State University and located in Rohnert Park. The record search will include a search of previous studies and identified cultural resources within the project site and a 0.5-mile radius.
The National Register of Historic Places (NRHP), the California Register of Historical Resources (CRHR), the California Historical Resources Inventory, the California Historical Landmarks, the California Points of Historical Interest listings, and the Historic Property Data File, historic maps, and photographs will be consulted along with other pertinent historic data.
FCS will obtain a paleontological records search from the Regional Paleontological Locality Inventory at the University of California, Berkeley. The records search will provide information regarding the relative sensitivity of the parcel to contain fossils. The results of the records search will be included in the Geology and Soils section of the IS/MND.
As part of the records search, FCS will prepare and submit a request to the Native American Heritage Commission (NAHC) to check their Sacred Lands File for Tribal Cultural Resources that may be adversely impacted by the proposed project. The request will include lists of Native American representatives that may wish to consult on the project pursuant to Public Resources Code Sections 21080.3.1 and 21080.3.2 (also known as Assembly Bill [AB] 52). FCS will reach out to the Tribal Representatives for additional information about the project site. Please note that compliance with tribal notification and consultation under AB 52 are the responsibilities of lead agencies under CEQA. FCS is available to assist in the process if so desired, and additional consultation services beyond the current Scope of Work are available upon request.
FCS will also attempt to locate and contact local historical societies that may have additional information about the project site, or interest in the proposed project. All records search results and correspondence will be included in an appendix.
Pedestrian Field Survey
A pedestrian field survey will be conducted for the approximately 7.3-acre project site by an FCS Project Archaeologist utilizing standard 15 meter transect intervals and will include all portions of the project area, where possible.
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Subtask 3.3.1: Historic Assessment Report
As a subconsultant to FCS, South Environmental will provide historical consulting services with regards to performing a survey and evaluation of the horse training and boarding facility. Review of the history of the historic topographic maps of the project site has revealed that there may have been buildings and structures on the site since 1873.
The tasks associated with this Scope of Work will include the following:
Property Survey
A qualified Cultural Resources Specialist will survey all accessible exterior portions of the built environment within the project site, taking detailed photographs of each building, structure, and object on the site, including close-ups of windows and building materials. Overviews of the property showing the larger setting and spatial relationships between buildings are also necessary to analyze this property type.
Property Evaluation
South Environmental will complete a historic significance evaluation of the property in consideration of NRHP , CRHR, and local designation criteria to determine if the property is considered an historical resource for the purposes of the CEQA (Guidelines Section 15064.5). This may include accessing local libraries, archives, and contacting relevant historical societies. South Environmental will also review all available building permits and construction documents to determine the nature and extent of alterations made to the property overtime. The property will be evaluated on the required State of California Department of Parks and Recreation Series 523 Forms (DPR forms).
Historic Assessment Report
South Environmental will prepare an Historic Assessment Report in conformance with all state and local requirements that will summarize the results of the property significance evaluation. The report will also discuss the proposed project description, regulatory framework, all sources consulted, research and field methodology, and will analyze the proposed project’s potential to impact historical resources under CEQA. All DPR forms will be included as an appendix to the report. Note that this Scope of Work assumes only one round of City comments and revisions to the report.
Deliverables
• Electronic version (via email in Microsoft Word and PDF) of the draft PI CRA to the City. • Electronic version (via email in PDF) of the PI CRA to the City. • Electronic version (via email in Microsoft Word and PDF) of the draft Historic Assessment Report to the City.
• Electronic version (via email in PDF) of the Historic Assessment Report to the City.
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Subtask 3.4: Noise Analysis
FCS will complete a noise analysis that will include an evaluation of short-term (construction) and long- term (operation) noise impacts to satisfy the City’s noise impact analysis requirements. The analysis will be wholly contained in the IS/MND and the supporting technical data will be appended to the document; it is assumed no stand-alone study will be prepared. To perform this analysis, the tasks below are required.
Compile and Summarize Background Information
The general characteristics of sound and the categories of audible noise will be described. The City’s regulatory framework related to noise, including applicable plans, policies, and standards will be summarized. The dominant noise source on the project site is traffic from adjacent roadways and the railroad noise (the rail line is located approximately 65-feet south of the project stie). Therefore, the existing noise environment will be documented through traffic noise modeling and reference to the City’s railroad noise contour data. A long-term (minimum 24-hour) ambient noise monitoring effort will also be performed to document the existing ambient noise levels on the project site.
Conduct Construction Noise and Vibration Impact Analysis Construction of the proposed project would require the short-term operation of heavy equipment.
United States Environmental Protection Agency (EPA) recommended noise emission levels will be used for the construction equipment. The construction noise impact will be evaluated in terms of maximum levels (Lmax) or hourly equivalent continuous noise levels (Leq) and their frequency of occurrence. The analysis will determine if construction noise would generate a substantial temporary increase in ambient noise levels that would result in annoyance or sleep disturbance of nearby sensitive receptors. FCS will also analyze potential vibration impacts associated with construction activities through application of the methodology used in the Transit Noise and Vibration Impact Assessment Manual (September 2018), prepared by the Federal Transit Administration.
Conduct Operational Noise Impact Analysis
A quantitative assessment of noise impacts from project-specific and cumulative vehicular traffic trips will be performed. Traffic noise impacts will be assessed using the United States Federal Highway Administration (FHWA) Traffic Noise Prediction Model (FHWA-RD-77-108, December 1978). Required model input data include without-project and with-project average daily traffic (ADT) volumes on adjacent roadway segments, based on the traffic study prepared for the project. Traffic impacts will be determined based on whether the proposed project would generate a substantial increase in traffic noise levels in the project vicinity in excess of standards established in the General Plan or noise ordinance.
Potential noise impacts from project-related stationary noise sources, such as mechanical system operations, will also be evaluated to determine if the proposed project would generate a substantial increase in ambient noise levels in excess of the City’s operational noise performance standards. 206
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Data Needs and Assumptions
This Scope of Work assumes necessary project data, including site plan, traffic data, and mechanical system plans, will be provided by the applicant. If changes are made to the Project Description that would require re-modeling for the above Scope of Work, it would be accomplished as an additional service not included in this scope.
Subtask 3.5: Transportation Analysis
FCS has teamed with TJKM to prepare a transportation analysis for the proposed project considering current thresholds and guidance from the State. The analysis will be provided in a stand-alone technical report. The study would include the trip generation, trip distribution, and trip assignment for the proposed project. TJKM will verify existing conditions and collect weekday a.m. and p.m. peak hour turning movement counts at the following study intersection:
• Hercules Avenue and Skelly
• Hercules Avenue and San Pablo Avenue
For Hercules Avenue and San Pablo Avenue, TJKM will be guided by current and cumulative traffic volumes contained in the General Plan in order to deal with any reduced volumes due to Covid-19 conditions. TJKM will make new counts at both study intersections and make appropriate adjustments.
TJKM will conduct a level of service (LOS) traffic operations analysis using synchro software for the weekday a.m. and p.m. peak hours at the study intersections under the following scenarios. • Existing Conditions
• Existing plus Project Conditions
• Cumulative Conditions
• Cumulative plus Project Conditions
TJKM will conduct a Vehicle Miles Traveled (VMT) analysis for the proposed project along with an analysis of site access and on-site circulation and analysis of potential impacts to bicycle, pedestrian, and transit facilities.
Once these analyses are complete, TJKM will identify significant impacts and provide recommendations to mitigate those impacts. Impacts of the proposed project on the study intersections will be identified by comparing the results of the project level of service calculations for Existing and Cumulative Conditions to the results for plus Project Conditions. If there are significant issues with VMT, they will recommend mitigation measures. They will determine expected maximum (95th percentile) queue lengths at each intersection approach under all scenarios. TJKM will evaluate peak hour signal warrants and recommend appropriate intersection controls. Finally, TJKM will prepare a draft Traffic Report consistent with the City of Hercules standards that summarizes the analysis and recommendations that 207
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will be submitted to the City. If necessary, minor comments from the City regarding the Traffic Report will then be incorporated into a final Traffic Report.
Deliverables
• Electronic version (via email or Dropbox in Microsoft Word and PDF) of the draft Traffic Report to the City
• Electronic version (via email or Dropbox in PDF) of the final Traffic Report to the City
Task 4: Preparation of Administrative Draft IS/MND
FCS will prepare an Administrative Draft IS/MND for City staff review that will evaluate the proposed project’s impacts. The IS/MND format will include separate sections for discussion of each CEQA Guidelines Appendix G Environmental Checklist impact category, and it will be adequately supported by exhibits (including color GIS mapping, as appropriate). The IS/MND will evaluate project impacts against each question on the Appendix G Environmental Checklist and determine whether a potentially significant impact could occur that requires mitigation or if impacts would be less than significant and would not require mitigation. If potentially significant impacts are identified, FCS will draft mitigation measures that would reduce the impact to a less than significant level.
The following issues will be evaluated in the IS/MND:
• Aesthetics • Land Use
• Agriculture and Forestry Resources • Mineral Resources • Air Quality • Noise
• Biological Resources • Population and Housing
• Cultural and Tribal Cultural Resources • Public Services • Geology, Soils, and Seismicity • Recreation
• Greenhouse Gas Emissions • Transportation
• Energy • Utility Systems
• Hazards and Hazardous Materials • Wildfires
• Hydrology and Water Quality
Deliverables
• Electronic version (via Dropbox in Microsoft Word and PDF) of the Administrative Draft IS/MND to the City
Task 5: Preparation of Screencheck Draft IS/MND
This Scope of Work assumes the City will provide one set of consolidated, vetted comments (with tracked changes in the Word document) on the Administrative Draft IS/MND. Once FCS receives these comments, FCS will complete revisions and prepare a Screencheck Draft IS/MND for final review. 208
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Note that this Scope of Work assumes only one round of City comments and revisions to the Administrative Draft IS/MND. Should hours spent on this task exceed the cost identified herein, FCS shall coordinate with the City regarding the need for additional funds to ensure implementation of all comments in the Screencheck Draft IS/MND.
Deliverable
• Electronic version (via Dropbox in Microsoft Word and PDF) of the Screencheck Draft IS/MND to the City.
Task 6: Preparation of Public Review Draft IS/MND
Following receipt of any City comments on the Screencheck Draft IS/MND, FCS will complete revisions and prepare the Draft IS/MND. The City will distribute copies of the Draft IS/MND to responsible agencies and the public for a 30-day public review period. FCS will post the Draft IS/MND, NOC, and Summary Form to the State Clearinghouse’s online portal, CEQAnet, to formally commence the 30-day review period. This Scope of Work assumes that the City will be responsible for local distribution and noticing, including but not limited to newspaper noticing or radius mailing and preparation of the Notice of Intent to Adopt (NOI) an IS/MND pursuant to Section 15072(a) of the CEQA Guidelines.
Deliverables
• Electronic version (via Drobox in PDF) of the Draft IS/MND to the City • Electronic submittal of the Draft IS/MND (including appendices), Summary Form, and NOC to the State Clearinghouse via CEQAnet
Task 7: Preparation of Administrative Final IS/MND
The CEQA Guidelines indicate that lead agencies are not required to respond to written comments submitted in response to Draft IS/MND. However, lead agencies often request that written responses be provided to all written comments in order to demonstrate that the lead agencies considered the concerns, questions, or objections raised by public agencies or private parties. Accordingly, FCS has budgeted 40 hours of the Project Manager’s time to prepare responses to written comments that would be included in the Staff Report prepared for the meeting(s) at which the IS/MND would be considered for adoption.
Should the volume of comments or the level of technical detail require more than 40 hours of key staff time, FCS will require approval of an augment to cover the additional time. Note that FCS has budgeted for one (1) round of City comments on the draft Responses to Comments prior to finalizing them for inclusion in the Staff Report. FCS will also upload the Final IS/MND to the City’s website.
Deliverable
• Electronic version (via email in Microsoft Word and PDF) of the Administrative Draft Final IS/MND to the City.
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Task 8: Preparation of Screencheck Final IS/MND
This Scope of Work assumes the City will provide one set of consolidated, vetted comments (with tracked changes in the Word document) on the Administrative Final IS/MND. Once FCS receives these comments, FCS will complete revisions and prepare a Screencheck Final IS/MND for final review. Note that this Scope of Work assumes only one round of City comments and revisions to the Screencheck Final IS/MND. Should hours spent on this task exceed the cost identified herein, FCS shall coordinate with the City regarding the need for additional funds to ensure implementation of all comments in the Screencheck Final IS/MND.
Deliverable
• Electronic version (via email in Microsoft Word and PDF) of the Screencheck Final IS/MND to the City.
Task 9: Preparation of Final IS/MND
Upon approval of the Screencheck Final IS/MND, FCS will finalize the Final IS/MND (which will include RTCs and Errata). FCS will reproduce the Final IS/MND electronically for City use and distribution. This Scope of Work assumes that City staff will be responsible for distribution of copies of the Final IS/MND to agencies, organizations, and individuals who submitted comments.
Deliverable
• Electronic version (via email in PDF) of the Final IS/MND to the City.
Task 10: Preparation of Mitigation Monitoring and Reporting Program FCS will prepare a comprehensive Mitigation Monitoring and Reporting Program (MMRP), pursuant to CEQA Guidelines Section 15097. The MMRP will contain all mitigation measures identified in the Draft IS/MND. This comprehensive MMRP will provide the City with a single source of reference to the full range of mitigation measures to be implemented. For each measure or group of similar measures, the agency responsible for ensuring proper implementation will be identified, along with the timing and method of verification.
Once FCS receives consolidated, vetted comments (with tracked changes in the Word document) on the MMRP , FCS will complete revisions and provide the City with a final MMRP .
Deliverables
• Electronic version (via email in Microsoft Word and PDF) of the draft MMRP to the City. • Electronic version (via email in PDF) of the MMRP to the City.
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Task 11: Attend Public Hearings
This scope of work assumes that FCS’s Project Director or Project Manager will attend up to two, two- hour long meetings (Planning Commission and/or City Council) in Hercules and/or teleconference. A not- to-exceed budget has been established to cover attendance at the public hearings. If the City staff and/or the applicant requests additional meeting attendance by FCS staff, or if the amount of time involved in these meetings exceeds the initial budget allocation, FCS will notify the applicant of the additional costs and obtain authorization for the extra meeting time.
Task 12: Preparation of Notice of Determination
FCS will prepare the Notice of Determination (NOD). Pursuant to CEQA Guidelines Sections 15075 and 15094, City staff would be responsible for filing the NOD with the Contra Costa County Clerk’s Office within 5 business days of IS/MND adoption. The applicant will be responsible for paying the associated filing fees: CEQA filing fee (currently $2,480.25) and any County filing fees (currently $50).
Deliverable
• Electronic version (via email in PDF) of the Notice of Determination (in PDF) to the Town
Task 13: Project Management and Meetings
In addition to the research, analysis, communications, and report writing tasks described above, FCS will perform a variety of project management duties to ensure that the IS/MND meets the City’s standards of quality, and that it is delivered on time and within budget. These duties will include team supervision and coordination, oral and written communications with City staff, the applicant Team, project accounting, and quality assurance review by FCS’s Project Director and Technical Editor of all deliverable products. These services will also include ongoing support to City staff, such as providing input to staff reports, regular schedule updates, and discussions of technical issues. FCS’s Project Director or Project Manager will attend up to three, hour-long virtual team meetings. A not-to-exceed budget has been established to cover attendance at these meetings. If the City staff requests additional meeting attendance by FCS staff, or if the amount of time involved in these meetings exceeds the initial budget allocation, FCS will notify the City of the additional costs and obtain authorization for the extra meeting time. This task assumes 30 hours of Project Director and/or Project Manager time over the duration of the project.
Tasks Outside the Scope of Work
The following are tasks FCS has identified as falling outside its scope of work for the proposed project.
Newspaper Noticing/Local Noticing
FCS assumes that City staff will be responsible for any public noticing related to the certification of the IS/MND.
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Notice of Determination Filing/Payment of Fees
FCS assumes the applicant will be responsible for filing the Notice of Determination with the Contra Costa County Clerk’s Office within 5 business days of certification of the IS/MND.
SCHEDULE
FCS has prepared the following schedule outlining the anticipated timing of each task.
Task Week
Planning Services 1-Ongoing
Task 1: Project Initiation and Kick-off Meeting 1-2
Task 2: Preparation of Comprehensive Project Description 2-4 Task 3: Technical Analyses and Peer Review of Applicant-Prepared Studies1, 2 4-14 Subtask 3.1: Air Quality, Greenhouse Gas Emissions, and Energy Analysis 14 Subtask 3.2: Peer Review of Biological Resources Assessment 4 Subtask 3.3: Cultural Resources Analysis 3 6-8
Subtask 3.4: Noise Analysis 6
Subtask 3.5: Transportation Analysis 7
Task 4: Preparation of Administrative Draft IS/MND 16
City review of Administrative Draft IS/MND 18
Task 5: Preparation of Screencheck Draft IS/MND 20
City review of Screencheck Draft IS/MND 21
Task 6: Preparation of Public Review Draft IS/MND 22
30-day review period 22-26
Task 7: Preparation of Administrative Final IS/MND 4 28 City review of Admin Final IS/MND 29
Task 8: Preparation of Screencheck Final IS/MND 30
City review of Screencheck Final IS/MND 30
Task 9: Preparation of Final IS/MND 31
Task 10: Preparation of Mitigation Monitoring and Reporting Program 31 Task 11: Attend Public Hearings To Be Determined
Task 12: Preparation of Notice of Determination within 5 days of IS/MND certification
Task 13: Project Management and Meetings Ongoing
File NOD by City Staff To Be Determined
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Task Week
Note:
1 Assumes the Transportation Analysis is complete within 7 weeks of project initiation. Air quality analysis will be conducted 7 weeks after receipt of the Transportation Analysis and the responses to the RFI, whichever is later. 2 All analyses will be incorporated directly into the Draft IS/MND; stand-alone technical reports are not part of this Scope of Work.
3 Assumes receipt of record search results from the Northwest Information within 4-6 weeks. 4 Dependent on the volume and complexity of public comments
BUDGET
FCS has prepared the following budget identifying the costs of each task.
Task Fee
Planning Services $36,800
Task 1: Project Initiation and Kick-off Meeting $2,700
Task 2: Preparation of Comprehensive Project Description $2,900 Task 3: Technical Analyses and Peer Review of Applicant-Prepared Studies Subtask 3.1: Air Quality, Greenhouse Gas Emissions, and Energy Analysis $12,400 Subtask 3.2: Peer Review of Biological Resources Assessment $3,900 Subtask 3.3: Cultural Resources Analysis $5,400
Subtask 3.3.1: Historic Assessment Report $6,900
Subtask 3.4: Noise Analysis $5,800
Subtask 3.5: Transportation Analysis $21,700
Task 4: Preparation of Administrative Draft IS/MND $18,600 Task 5: Preparation of Screencheck Draft IS/MND $7,500
Task 6: Preparation of Public Review Draft IS/MND $2,200 Task 7: Preparation of Administrative Final IS/MND $5,500 Task 8: Preparation of Screencheck Final IS/MND $2,300
Task 9: Preparation of Final IS/MND $1,000
Task 10: Preparation of Mitigation Monitoring and Reporting Program $800 Task 11: Attend Public Hearings $1,900
Task 12: Preparation of Notice of Determination $300
Task 13: Project Management and Meetings $6,700
Direct Costs $1,600
Total Fee $146,900
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Assumptions
The assumptions used in determining the above project schedule are:
• Receipt of all approved project description and conceptual plans, project-related information, base maps, photographs, and previous environmental documentation at the project initiation meeting.
• Receipt of all technical information and confirmation of a stable project description by Week 2. • The periods shown assume a set amount of time for concurrent review of the document by the City for each submittal. If review schedules change, the elapsed time of other tasks will be maintained.
• Up to one round of revisions to the reports and analysis described in this Scope of Work shall be provided based on comments provided by the City. Please note that this Scope of Work assumes that comments and revisions to the reports will not require re-modeling or additional site visits. If a remodeling effort or additional site visits are requested, a budget augment would be required. • The review period for the IS/MND will be the State-mandated 30 days.
The assumptions used in calculating the above fees are:
• Reimbursable expenses have been included in the table above. These direct costs, including, but not limited to those items presented below, will be reimbursable upon provision of proper documentation:
- Purchases of project materials
- Reproduction, reprographics, document production, printing and photographic - Postage, messenger, delivery, and overnight mailing
- Mileage, noticing, and record searches
- Other miscellaneous costs directly related to the project • There will be no significant revisions to the development application once submitted. If there is a change in the project description by the applicant, a budget adjustment will be required to account for the project revisions.
• The fee is valid for up to 30 days from the date of this scope, after which it may be subject to revision.
• This price is based on completion of the work within the proposed schedule. If delays occur, an amendment of the price would be warranted to accommodate additional project management and other costs and to reflect adjustments for updated billing rates. • Costs have been allocated to tasks based upon FCS’s proposed approach. During the work, FCS may, on its sole authority, re-allocate costs among tasks and/or direct costs, as circumstances warrant, so long as the adjustments maintain the total price within its authorized amount. 214
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• The FCS Project Manager will be the primary representative at the project meeting and public hearing.
• Printing costs are based on the method of printing and binding proposed, numbers of copies proposed as work products, and estimated page lengths. Document printing costs are estimated and will be finalized at the time of printing. On further clarification of the documents and Town’s (paper and/or digital CD) that Town staff will need during the preparation effort, FCS will specifically identify a detailed reproduction work plan with more specific costs.
Invoice Billing
Invoices will be submitted monthly and will identify project progress on a percent complete basis. 215
111 Civic Drive
Hercules, CA 94547City of Hercules
Legislation Details (With Text)
File #: Version: 122-089 Name:
Status:Type: Consent Agenda Ready
File created: In control:3/1/2022 City Council
On agenda: Final action:3/8/2022
Title: Housing Element Annual Progress Report for 2021
Recommendation: Receive report and direct staff to submit report to state agencies by April 1, 2022, deadline.
Sponsors:
Indexes:
Code sections:
Attachments: Staff Report - 2021 Annual Housing Report - CC 2022-3-8 Attach 1a - Housing Element Annual Progress Report - 2021 (PDF) Attach 1b - Annual Progress Report.xlsm
Action ByDate Action ResultVer.
Housing Element Annual Progress Report for 2021
Recommendation: Receive report and direct staff to submit report to state agencies by April 1, 2022, deadline.
City of Hercules Printed on 3/2/2022Page 1 of 1
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1 STAFF REPORT TO THE CITY COUNCIL
DATE: March 8, 2022
TO: Members of the City Council
SUBMITTED BY: Robert Reber, Community Development Director Larissa Alchin, M-Group Contract Planner
SUBJECT: 2021 Annual Housing Element Progress Report
RECOMMENDED ACTION:
Approve via minute action the annual Housing Element Progress Report for the 2021 calendar year and direct staff to submit the report to the appropriate state and regional agencies.
COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:
There was no commission or subcommittee review of the item.
FISCAL IMPACT OF RECOMMENDATION:
No direct financial impact of filing the annual housing report; however, failing to file the annual housing report can negatively impact the potential receipt of various grant and regional funds.
DISCUSSION:
Government Code Section 65400 requires each local gover nment to complete a Housing Element A nnual Progress Report (APR) on the status and progress in implementing the jurisdiction’s Housing Element of the General Plan, using forms and definitions adopted by the Department of Housing and Community Development (HCD). Each jurisdiction must submit its APR to HCD and the Office of Planning and Research (OPR) by April 1 each year. Cities and counties with a compliant housing element and up-to-date submissions of APRs gain access to SB 2 Building Homes and Jobs Act funds.
Attached is the draft Hercules 2021 Annual Housing Element Progress Report as part of the 2015–2023 Housing Element cycle.
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2 The annual report defines how many new residential units were constructed in the reporting period, broken down by income levels, and then compares this information to the regional housing needs allocation (RHNA) assigned to the City for the entire Housing Element period (2015–2023). The report also looks at the City’s housing policies and reports on the progress in achieving those goals.
For the 20 19 calendar year, additional information was required to meet SB 35, including the number of housing units receivi ng all discretionary entitlements, building permits, and certificates of occupancy. Prior to 2019, all information was only based on when a building permit was issued. Also new in 2019, AB 879 authorized HCD to evaluate the reasonableness of local fees charged under the Mitigation Fee Act. Accordingly, Table A2 in the Annual Housing Report for 2021 requires the reporting of the following for every housing unit:
When entitlements are approved;
When building permits are issued;
When certificates of occupancy are approved;
Affordability of all units in any phase of development; Additional information regarding other ancillary information.
For the 2020 calendar year, new APR reporting requirements included AB 83 (mobile home park preservation), AB 1255 (surplus land reporting), and AB 101 [Local Early Action Planning (LEAP) grant reporting], and other information such as financial assistance programs (HEAP: Homeless Emergency Aid Program; HHAP: Homeless Housing, Assistance and Prevention Program, HKEY: Homekey).
There are no new APR reporting requirements for the 2021 calendar year.
Key housing information for 2021 reflected in the report includes:
Table A: No new applications for housing submitted in 2021; Table A2: Received entitlement, building permit or certificate of occupancy, including:
o Bayfront Blocks Q & R —“The Grand” at Bayfront —received temporary Certificate of Occupancy for 232 apartments, including 15 low income (60% AMI) units.
o Four (4) accessory dwelling units received building permits. o Three (3) accessory dwelling units received building final/certificate of occupancy.
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3 Table B: Progress on Regional Housing Needs Allocation (RHNA) for 2015– 2023 housing cycle:
o 513 above-moderate affordable (i.e., market rate units) built, 269 units above RHNA of 244 units;
o 217 moderate affordable units (i.e., affordable at up to 120% of area median income), 117 units above RHNA of 100 units;
o 16 low affordable units (i.e., affordable at up to 80% of area median income), 112 units short of RHNA of 118 units;
o Zero (0) very low affordable units (i.e., affordable at up to 50% of area median income), 220 units short of RHNA of 220 units. Table C: No sites identified or rezoned to accommodate additional housing. Table D: Progress on implementing various goals and programs of the Housing Element (limited given the dissolution of redevelopment, lack of funding for housing activities, and lack of staffing).
Table E: No commercial development bonuses approved.
Table F: No affordable units rehabilitated, preserved, or acquired Table G: No City-owned land sold, leased, or otherwise disposed. Table H: No City-owned surplus lands.
LEAP Reporting: Local Early Action Planning grant received. o City received LEAP grant award in 2021 of $150,000 to apply towards the update of the Housing Element for next Housing Cycle (2023–2031).
HCD requires that the approved Annual Progress Report be considered at a public meeting prior to the City Council approving the Report for submittal to the HCD and OPR. In the Bay Area, copies of the approved report are also forwarded to Association of Bay Area Governments (ABAG) and Contra Costa Transportation Authority (CCTA) as well. Council can approve the report via minute action instead of by Resolution.
ATTACHMENTS:
1. 2021 Annual Housing Element Progress Report
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DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
HOUSING ELEMENT ANNUAL PROGRESS
REPORT (APR) INSTRUCTIONS
INTRODUCTION
Note: Some instructions and definitions can be found in the column headers of the tables. (Cells with red markers) Government Code section 65400 requires that each city, county, or city and county, including charter cities, prepare an annual progress report (APR) on the status of the housing element of its general plan and progress in its implementation, using forms and definitions adopted by the Department of Housing and Community Development (HCD). The following form is to be used for satisfying the reporting requirements of Government Code section 65400, subdivision (a)(2).
These forms and instructions, originally adopted March 27, 2010, have been updated to incorporate new Housing Element APR requirements pursuant to Chapter 374, Statutes of 2017 (Assembly Bill 879); Chapter 366, Statutes of 2017 (Senate Bill 35), Chapter 664, Statutes of 2019 (Assembly Bill 1486), Chapter 159, Statues of 2019 (Assembly Bill 101), Chapter 661, Statutes of 2020 (Assembly Bill 1255), Chapter 15, and Statutes of 2020 (Assembly Bill 83).
How to submit the Housing Element Annual Progress Report (APR) The APR must be submitted to the Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (OPR) on or before April 1 of each year using the forms and tables specified by HCD. The APR provides information for the previous calendar year and must be submitted separately to both HCD and OPR (Gov. Code, § 65400.). There are two methods available for submitting APRs:
1. Online Annual Progress Reporting System - This allows jurisdictions to upload directly into HCD’s database, limiting the risk of errors. To use the online system, email [email protected], and request login information for your jurisdiction. Please note: Using the online system only provides the information to HCD. The APR must still be submitted to OPR. Their email address is [email protected].
2. Email - Jurisdictions complete the Excel APR forms and submit to HCD at [email protected] and to OPR at [email protected].
When using the email method, send the electronic version as an Excel workbook attachment. Do not send a scanned copy of the tables. In addition to submitting Housing Element APRs, jurisdictions must also submit General Plan Annual Progress Reports to both HCD and OPR. Please email these documents to [email protected] and [email protected].
NOTE: When submitting successor entity reporting data as required pursuant to California Health and Safety Code 34176.1, the data must be identified as an addendum to the APR and emailed to [email protected] concurrently with the APR submittal. When using the online system, this report should be sent separately to the APR email box to satisfy the Government Code section 65400 reporting requirement.
TABLE OF CONTENTS
INTRODUCTION
DEFINITIONS
FORM INSTRUCTIONS
GENERAL INFORMATION
START HERE
TABLE A Housing Development Applications Submitted
TABLE A2 Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units TABLE B Regional Housing Needs Allocation Progress – Permitted Units Issued By Affordability TABLE C Sites Identified or Rezoned to Accommodate Shortfall Housing Need TABLE D Program Implementation Status pursuant to Government Code section 65583 TABLE E Commercial Development Bonus Approved pursuant to Government Code section 65915.7 TABLE F Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1, subdivision (c)(2)
TABLE G Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of, pursuant to Government Code section 65400.1
Table H - Locally Owned or Controlled Lands Declared Surplus Pursuant to Government Code section 54221, or Identified as Excess Pursuant to Government Code section 50569
DEFINITIONS
1. “Above moderate income” means households earning more than 120 percent of area median income.
2. “Annual Progress Report (APR)” means the housing element annual progress report required by Government Code section 65400 and due to HCD by April 1 of each year reporting on the prior calendar year’s activities.
3. “Application submitted” means an application submittal that has been determined complete by the jurisdiction.
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4. “Area Median Income (AMI)” means the median household income based on household size of a geographic area of the state, as annually updated by the California Department of Housing and Community Development (HCD), pursuant to Health and Safety Code section 50093.
5. “Certificate of occupancy date” is the date(s) the certificate(s) of occupancy, or other evidence of readiness for occupancy (e.g., final inspection, notice of completion), was/were issued.
6. “Committed Assistance” is when a local government has entered into a legally enforceable agreement within a specific timeframe spanning from the beginning of the RHNA projection and may be executed throughout the planning period. Committed Assistance includes obligating funds or other in-kind services for affordable units available for occupancy within two years of the agreement.
7. “Completed Entitlement” means a housing development or project which has received all the required land use approvals or entitlements necessary for the issuance of a building permit. This means that there is no additional action required to be eligible
8. “Density Bonus” as defined in Government Code section 65915.
9. “Extremely low-income” means a household earning less than 30 percent of area median income pursuant to Health and Safety Code, section 50105.
10. “Infill housing unit” is defined as being a unit located within an urbanized area or within an urban cluster on a site that has been previously developed for urban uses, or a vacant site where the properties adjoining at least two sides of the project site are, or previously have been, developed for urban uses. For the purposes of this definition, an urbanized area or an urban cluster is as defined by the United States Census Bureau.
11. “Locality” or “local government” means a city, including a charter city, a county, including a charter county, or a city and county, including a charter city and county.
12. “Lower-income or Low-Income” means a household earning less than 80 percent of area median income pursuant to Health and Safety Code, section 50079.5.
13. “Moderate income” means households whose income does not exceed 120 percent of area median income pursuant to Health and Safety Code, section 50093.
14. “Permitted units” mean units for which building permits for new housing construction have been issued by the local government during the reporting calendar year. For this purpose, “new housing unit” means housing units as defined by the Department of Finance for inclusion in the Department of Finance’s annual “E-5 City/County Population and Housing Estimates” report, which is the same as the Census definition of a housing unit.
Note: Accessory dwelling units (ADU) and junior accessory dwelling units (JADU) pursuant to Government Code sections 65852.2 and 65852.22 meet the definition above.
15. “Production report” or “Annual Progress Report (APR)” means the information reported pursuant to subparagraph (D) of paragraph (2) of subdivision (a) of Section 65400 of Government Code.
16. “Project” or “Development” refers to a housing related activity where new construction of a unit(s) is proposed or has had a building permit and/or certificate of occupancy issued during the reporting calendar year. This may include single family, mixed use, multifamily, accessory dwelling unit, or any other developments where housing units, as defined by the U.S. Census Bureau and the California Department of Finance, are a component of the project.
17. “Realistic Capacity” means an estimate of the number of units that can be accommodated on each site in the inventory. The estimate must include adjustments to reflect land use controls and site improvement requirements but may rely on established minimum density standards.
18. “Reporting period” means the prior calendar year’s activities for the housing element annual progress report required by Government Code section 65400 and due to HCD by April 1 of each year and utilized to create the determination for which locality is subject to the Streamlined Ministerial Approval (SB35 Streamlining) Provisions.
19. “RHNA” means the local government’s share of the regional housing need allocation pursuant to Government Code section 65584 et seq.
20. Unit Category: type of units that are classified under the following categories:
• Single Family-Detached Unit (SFD)- a one-unit structure with open space on all four sides. The unit often possesses an attached garage.
• Single Family-Attached Unit (SFA)- a one-unit structure attached to another unit by a common wall, commonly referred to as a townhouse, half-plex, or row house. The shared wall or walls extend from the foundation to the roof with adjoining units to form a property line. Each unit has individual heating and plumbing systems. • 2-, 3-, and 4-Plex Units per Structure (2-4)- a structure containing two, three, or four units and not classified as single-unit attached structure.
• 5 or More Units per Structure (5+)- a structure containing five or more housing units. 221
• Accessory Dwelling Unit (ADU) - means a unit that is attached, detached or located within the living area of the existing dwelling or residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel on which the single-family dwelling is situated pursuant to Government Code section 65852.2. An ADU also includes the following: an efficiency unit, as defined in Section 17958.1 of the Health and Safety Code or a manufactured home, as defined in Section 18007 of the Health and Safety Code. • Mobile Home Unit/Manufactured Home – a one-unit structure that was originally constructed to be towed on its own chassis.
Please note: Spaces in a mobile home park can be counted towards RHNA, if the spaces counted are new hook-ups/spaces rather than new mobile home park residents moving onto existing lots.
21. “Very low-income” means households earning less than 50 percent of area median income pursuant to Health and Safety Code, section 50105.
AUTHORITY CITED: Government Code section 65400.
FORM INSTRUCTIONS
GENERAL INFORMATION
Fields in gray auto-populate. No data entry is needed.
Some of the cells are locked to ensure data can be automatically uploaded to the online system.
Tables A and A2 of the worksheet are currently configured to accept up to 1,000 lines of data. Insert rows if needed.
Projects are now tracked at all stages of development, from initial application to final certificate of occupancy.
All dates must be entered as month/date/year (e.g., 6/1/2018).
The form works best with macros enabled in Excel.
Begin with the “Start Here” tab, as previous years’ information will pre-populate in Table B after the jurisdiction’s name is entered.
START HERE
Enter general contact and report information in the “Start Here” tab.
It is important to start with this worksheet because the answers entered will affect how information is displayed (e.g. permit numbers from prior years are pre-populated when jurisdiction’s name is entered).
Information to enter includes:
• City or County name
• Reporting calendar year (e.g., 2019). Please note: The reporting year will always be from January 1 – December 31 of the previous year.
• Contact person
• Title
• Email
• Phone
• Mailing address
This sheet includes instructions regarding submitting the Housing Element APR to HCD and OPR.
TABLE A
Housing Development Applications Submitted
Only include data on housing units and developments for which an application was deemed complete between January 1st and December 31st of the reporting year identified on the “Start Here” tab. In table A, an “application” is a formal submittal of a project for approval. This application is either an application for a discretionary entitlement, or where only a ministerial process is required (e.g., zoned by right).
1. Project Identifier: Include the Current Assessor Parcel Number (APN) and street address. The Prior APN, Project Name and Local Jurisdiction Tracking ID are optional.
• Prior APN – Enter an APN previously associated with the parcel, if applicable (optional field). • Current APN – Enter the current available APN. If necessary, enter additional APNs in the notes section field number 10. • Street Address – Enter the number and name of street. • Project Name – Enter the project name, if available (optional field). • Local Jurisdiction Tracking ID – This may be the permit number or other identifier (optional field).
2. Unit Types: Each development should be categorized by one of the following codes. Refer to “Unit Category” in the Definitions section for additional descriptions. Use the drop-down menu to select one of the following options:
• SFA (single-family attached unit)
• SFD (single-family detached unit)
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• 2-4 (two- to four-unit structures)
• 5+ (five or more unit structure, multifamily) • ADU (accessory dwelling unit)
• MH (mobile home/manufactured home)
3. Tenure: Identify whether the units within the development project are either proposed or planned at initial occupancy for either renters or owners. Use the drop-down menu to select one of the following options:
• Renter occupant (R) or
• Owner occupant (O)
4. Date Application Submitted: Enter the date the housing development application was submitted. If the application was incomplete at the time of submittal, enter the date the application was determined complete by the local government (refer to “application submitted” under definitions). Enter date as month/day/year (e.g., 6/1/2020).
5. Proposed Units Affordability by Household Incomes: For each development, list the number of units proposed in the application by affordability level and whether the units are deed restricted or non-deed restricted. Refer to the Definitions section for additional descriptions:
Very low-income households: 0-50% AMI
Low-income households: 50-80% AMI
Moderate-income households: 80-120% AMI
Above-moderate households: above 120%
To verify income levels, refer to the income limit charts on HCD’s website at http://www.hcd.ca.gov/grants-funding/income- limits/state-and-federal-income-limits.shtml (see section for Official State Income Limits).
6. Total Proposed Units by Project: This field auto-populates with the total number of units proposed, as entered in #5 (total of deed restricted & non-deed restricted units for Very Low-, Low-, Moderate- and Above Moderate- income households).
7. Total Approved Units by Project: Enter the number of units that the jurisdiction approved for this project application.
8. Total Disapproved Units by Project. If the project is denied or total number of units is reduced, please enter the number of units denied or reduced. This value should equal Total Proposed Units by Project minus “Total Approved Units by Project.”
9. Was “Application Submitted” pursuant to Government Code section 65913.4, subdivision (b) (Streamlined Ministerial Approval Process (SB 35 Streamlining))? Use the drop-down menu to select one of the following options:
• No
• Yes – But no action taken
• Yes – Approved
• Yes – Denied
10. Was a Density Bonus application received for this project? Answer yes or no.
11. Was the Density Bonus application approved for this project? Answer yes or no.
12. Please indicate the status of the application. Use the drop-down to select one of the following options:
• Approved
• Pending
• Disapproved
13. Notes: Use this field to enter any applicable notes about the project or development. Completion of this field is optional.
TABLE A2
Annual Building Activity Report Summary – New Construction, Entitled, Permits and Completed Units Fields 1 through 15 Housing Development Information
This table requires information for very low, low, moderate and above moderate income housing affordability categories and for mixed-income projects. Include data on net new housing units and developments that have received any one of the following:
• An entitlement
• A building permit
• A certificate of occupancy or other form of readiness that was issued during the reporting year.
Please note: Only building permits are used for the purposes of determining progress towards RHNA (fields 7, 8 and 9 of this table, described below).
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New housing units : For the APR, “new housing unit” means housing units as defined by the Department of Finance for inclusion in the Department of Finance’s annual “E-5 City/County Population and Housing Estimates” report, which is the same as the census definition of a housing unit.
Development activity spanning multiple years : It is highly likely that the same project will be reported in multiple years of APRs. For example, a project should be listed in three separate APRs if it is entitled in one year, receives the building permit next year, and the certificate of occupancy in the year following.
In scenarios where development activity spans multiple years, the jurisdiction should only report activity that occurred within the reporting year. For example, if a project received building permits in 2018 , but received entitlements in 2017 , the 2018 APR should only report the building permit information (fields 7, 8 and 9), and not include entitlement information (fields 4, 5 and 6).
Separate living quarters : A house, an apartment, a mobile home, a group of rooms, or a single room occupied as separate living quarters, or if vacant, intended for occupancy as separate living quarters. Separate living quarters are those in which the occupants live separately from any other individuals in the building and which have direct access from outside the building or through a common hall. For vacant units, the criteria of separateness and direct access are applied to the intended occupants whenever possible.
Please note: Group quarters facilities, such dormitories, student houisng, bunkhouses, and barracks cannot be counted as housing units.
Net new units: If a building is being demolished to build the new units, the APR should report net new units. For example, if 10 units are being demolished on a site to build a 100-unit building, the APR should report 100 new units and 10 units in the demolished/destroyed column. In the case of new construction where fewer units are being built than were there previously, do not report negative permits.
To assist in reporting demolished/destroyed units, refer to section number 20 below (Table A2, column 20).
All new unit information is to be listed in the following fields:
Fields 1 through 3 – Project Identifier and Unit Types
1. Project Identifier: Include the Current Assessor Parcel Number (APN) and street address. The prior APN, project name or local jurisdiction tracking ID are optional.
• Prior APN – Enter an APN previously associated with the parcel, if applicable (optional field). • Current APN – Enter the current available APN. This field allows a maximum of 40 characters. If necessary enter additional APNs in the notes section field number 21.
• Street Address – Enter the number and name of street. • Project Name – Enter the project name, if available (optional field). • Local Jurisdiction Tracking ID – This may be the permit number or other identifier (optional field).
2. Unit Category Codes: Each development should be categorized by one of the following codes: Refer to “Unit Category” in the Definitions section for additional descriptions. Use the drop-down menu to select one of the following options:
• SFA (single-family attached unit)
• SFD (single-family detached unit)
• 2-4 (two- to four-unit structures)
• 5+ (five or more unit structure, multifamily) • ADU (accessory dwelling unit)
• MH (mobile home/manufactured home)
3. Tenure: Identify whether the units within the development project are either proposed or planned at initial occupancy for either renters or owners. Use the drop-down menu to select one of the following options:
• Renter occupant (R) or
• Owner occupant (O)
Fields 4 through 6 – Completed Entitlement
4. Affordability by Household Income – Completed Entitlement: For each development, list the number of units that have been issued a completed entitlement during the reporting year by affordability level and whether the units are deed restricted or non- deed restricted. Refer to the Definitions section for additional descriptions:
• Very low-income households: 0-50% AMI
• Low-income households: 50-80% AMI
• Moderate-income households: 80-120% AMI
• Above-moderate households: above 120%
To verify income levels, refer to the income limit charts on HCDs website at http://www.hcd.ca.gov/grants-funding/income- limits/state-and-federal-income-limits.shtml (see section for Official State Income Limits).
5. Entitlement Date Approved: Enter the date within the reporting year that all required land use approvals or entitlements were issued by the jurisdiction; leave blank if entitlement was approved outside the reporting year. Enter date as month/day/year (e.g., 6/1/2018). Refer to definition of “Completed Entitlement.”
6. # of Units Issued Entitlements: This is an auto-populated field. This field reflects the total number of units that were entitled for very-low, low, moderate, and above moderate income, as entered in field 4 on this table.
Fields 7 through 9 – Building Permit
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7. Affordability by Household Income – Building Permits: For each development, list the number of units that have been issued a building permit during the reporting year by affordability level and whether the units are deed restricted or non-deed restricted.
Refer to the Definitions section for additional descriptions:
• Very low-income households: 0-50% AMI
• Low-income households: 50-80% AMI
• Moderate-income households: 80-120% AMI
• Above-moderate households: above 120%
To verify income levels, refer to the income limit charts on HCDs website at http://www.hcd.ca.gov/grants-funding/income- limits/state-and-federal-income-limits.shtml (see section for Official State Income Limits).
8. Building Permits Date Issued: Enter the date within the reporting year that the building permit was issued by the jurisdiction; leave blank if building permit was issued outside the reporting year. Enter date as month/day/year (e.g., 6/1/2018). Refer to definition of “Permitted Units.”
9. # of Units Issued Building Permits: This is an auto-populated field. This field will sum units that were permitted for very-low, low, moderate, and above moderate income, as entered in field 7 on this table.
Fields 10 through 12 – Certificates of Occupancy
10. Affordability by Household Income – Certificates of Occupancy: For each development, list the number of units that issued certificates of occupancy or other form of readiness (e.g., final inspection, notice of completion) during the reporting year by affordability level and whether the units are deed restricted or non-deed restricted. Refer to the Definitions section for additional descriptions:
• Very low-income households: 0-50% AMI
• Low-income households: 50-80% AMI
• Moderate-income households: 80-120% AMI
• Above-moderate households: above 120%
To verify income levels, refer to the income limit charts on HCDs website at http://www.hcd.ca.gov/grants-funding/income- limits/state-and-federal-income-limits.shtml (see section for Official State Income Limits).
11. Certificates of Occupancy (or other forms of Readiness) Date Issued: Enter the date the certificate of occupancy or other form of readiness (e.g., final inspection, notice of completion) was issued for the project. For most jurisdictions, this is the final step before residents can occupy the unit. Leave blank if certificate of occupancy was not issued in the reporting year. Enter date as month/day/year (e.g., 6/1/2018).
12. # of Units Issued Certificates of Occupancy or other forms of Readiness: This is an auto-populated field. This field will sum units that were issued a certificate of occupancy for very-low, low, moderate, and above moderate income, as entered in field 10 on this table.
13. How many of the Units were Extremely-Low Income Units (Optional): To gain a greater understanding of the level of building activity to meet the needs of extremely low-income households in the state, HCD asks that you estimate, to the extent possible, the number of units affordable to extremely-low income households. This number will be a subset of the number of units affordable to very low-income households, as indicated in fields 4, 7 and 10 above. Please note: The number entered in the very low section will not be reduced by the number entered here. Although completion of this field is optional, your input would be greatly appreciated.
14. Was Project approved using Government Code section 65913.4, subdivision (b) (Streamlined Ministerial Approval Process (SB 35 Streamlining))? Use the drop-down menu to select one of the following options:
• “Y” if jurisdiction approved the project application pursuant to the streamlined ministerial approval process (SB 35 Streamlining).
• “N” for all other situations.
15. Are these infill units? To gain a greater understanding of the level of infill housing activity in the state, HCD asks that you clarify if the housing units reported are infill by selecting “Yes” or “No.” Although completion of this field is optional, your input would be greatly appreciated. See Definitions section for “infill housing units” definition.
Fields 16 through 18: Please note, if any units are reported as very-low, low, or moderate income in fields 4, 7 or 10 then information in fields 16, 17 and/or 18 must be completed to demonstrate affordability. In the absence of justification that the unit is affordable to a very- low, low, and moderate income household, the unit must be counted as above-moderate income.
Fields 16 and 17 Housing with Financial Assistance and/or Deed Restrictions For all housing units developed or approved with public financial assistance and/or have recorded affordability deed restriction or covenants, identify funding sources and/or mechanisms that enable units to be affordable.
16. Assistance Programs Used for Each Development: Enter information here if units received financial assistance from the city or county and/or other subsidy sources, have affordability restrictions or covenants, and/or recapture of public funds upon resale.
Use the drop-down menu to select the acronym of the applicable funding program(s), as listed below. To select more than one funding source click once then select the cell again and click another source. • Acq/Rehab: CalHFA Acquisition/Rehab Loan Program • AHP: Affordable Housing Program - Fed Home Loan 225
• AHSC: Affordable Housing and Sustainable Communities • CalHOME: CalHOME
• CDBG: Community Development Block Grant
• CDLAC: CDLAC Bonds (CA Debt Limit Allocation Committee) • CESH: CA Emergency Solutions & Housing
• ESG: Emergency Solutions Grant
• GSAF: Golden State Acquisition Fund
• HEAP: Homeless Emergency Aid Program
• HHAP: Homeless Housing, Assistance and Prevention Program • HKEY: Homekey
• HOME: Housing Investment Partnership Program
• HOPWA: Housing Opportunities for Persons with AIDS • IIG: Infill Infrastructure Grant
• LHTF: Local Housing Trust Funds
• LIHTC: CTCAC/Low Income Housing Tax Credits
• MHP: Multifamily Housing Program - HCD
• MHSA: Mental Health Services Act Funding
• MPRROP: Mobilehome Park Rehab & Resident Ownership Program • MRB: Mortgage Revenue Bonds
• MyHOME: MyHome Down Payment Assistance
• NHTF: National Housing Trust Fund
• NPLH: No Place Like Home
• PBS8: Section 8 Project-Based Rental Assistance • PDLP: Predevelopment Loan Program
• RAD: Rental Assistance Demonstration Program
• RDA: Redevelopment Agency or Successor Agency Funds • Sec 202: HUD Section 202 Housing for the Elderly • Sec 811: Section 811 Project Rental Assistance • SERNA: Joe Serna Jr Farmworker Housing Program • SHMHP: Supportive Housing MHP
• SNHP: Special Needs Housing Program - CalHFA
• TOD: Transit Oriented Development Program
• USDA: USDA Rural Development Housing Programs • VHHP: Veterans Housing and Homeless Prevention Program • Other: Describe in Notes
17. Deed Restriction Type: Enter information here if units in the project are considered affordable to very-low, low, and/or moderate income households due to a local program or policy, such as an inclusionary housing ordinance, regulatory agreement, or a density bonus. This field should not be used to enter the number of deed restricted units. Identify the mechanism used to restrict occupancy based on affordability to produce “deed restricted” units. Use the drop-down menu to select one of the following options
• “INC” if the units were approved pursuant to a local inclusionary housing ordinance. • “DB” if the units were approved using a density bonus. • “Other” for any other mechanism. Describe the source in notes section number 21.
18. Housing without Financial Assistance or Deed Restrictions: Enter information here if the units are affordable to very-low, low and moderate income households without financial assistance and/or deed restrictions. In these cases, affordability must be demonstrated by proposed sales price or rents.
• Sales prices and rents must meet the definition of affordable as defined in Health and Safety Code Section 50052.5 for owner- occupied units or Health and Safety Code section 50053 for renter-occupied units. • Describe how the newly constructed rental or ownership housing units were determined to be affordable to very- low, low, and moderate income households without either public subsidies or restrictive covenants. This may be based on various methods considering sales prices or rents relative to the income levels of households such as through a survey of comparable units in the area that show the unit would be affordable to very-low, low, or moderate income households. o The jurisdiction can consider comparable rental prices or new sales prices (actual or anticipated). The jurisdiction should consider costs for renters (i.e., 30% of household income for rent and utilities) or owners (e.g., 30% of household income for principal, interest, taxes, insurance and utilities, pursuant to Title 25 CCR Section 6920) • In the absence of justification that the unit is affordable to a very- low, low, and moderate income household, the unit must be counted as above-moderate income.
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19. Term of Affordability or Deed Restriction: If units have committed financial assistance and/or are deed restricted, enter the duration of the affordability or deed restriction. If units are affordable in perpetuity, enter 1,000. If multiple funding sources or deed restrictions on the development have different terms of affordability, please enter the longest term of affordability. Although completion of this field is optional, your input would be greatly appreciated.
20. Demolished/Destroyed Units: This section is to report if the project and associated APN, has a permit, entitlement or certificate of occupancy in the reporting year, and the APN previously had demolished or destroyed units. • Enter the “Number of Demolished or Destroyed Units” in the reporting calendar year. • From the drop down menu select “demolished” if the units were torn down. Select “Destroyed” if the units were lost due to fire or other natural disaster.
• From the drop down menu “Demolished/Destroyed Units Owner or Renter” select “R” for renter or “O” for owner.
Fields 21 through 24 Density Bonus Detail: The following fields must be completed for at least a sample of density bonus projects reported by the jurisdiction and should only be completed if “DB” is one of the selections in section 17.
21. Density bonus: This section and the sections to follow are for reporting if the project received a density bonus, including concessions, incentives, waivers, or other modifications. The first field asks for the percentage of density bonus that was applied to the project.
• If the planning area's maximum allowable density is calculated based on the allowable number of units, express your response as a percentage (New total number of units - Old total number of units)/(Old total number of units); NOTE THAT WE ARE NOT PROPOSING TO EXPRESS THE DENSITY AS UNITS PER ACRE.
• Alternatively, if the planning area's maximum allowable density is form- or volume-based, express your response as a percentage (New maximum allowable residential gross floor area - Old maximum allowable residential gross floor area)/(Old maximum allowable residential gross floor area)
22. Percentage of deed-restricted units: Enter the percentage of deed-restricted units in the project expressed as (percentage of deed-restricted units) / (total number of units) NOTE THAT THIS CALCULATION MIGHT ALSO BE PROBLEMATIC IF THERE ARE DEED-
RESTRICTED UNITS MANDATED BY ANOTHER SUBSIDY PROGRAM
23. Number of incentives and other modifications: Enter the total number of other incentives, concessions, waivers, or other modifications given to the project (exclude parking waivers or parking reductions). List the specific incentives, concessions, waivers, or other modifications given to the project using the drop-down menu. • On-Site Improvements
• Off-Site Improvements
• Development Standards Modification
• Other
24. Reductions or waivers of parking standards:
• Did the project receive a reduction or waiver of parking standards? Answer Yes or No.
25. Notes: Use this field to enter any applicable notes about the project or development.
TABLE B
Regional Housing Needs Allocation Progress – Permitted Units Issued By Affordability Table B is a summary of prior permitting activity in the current planning cycle, including permitting activity for the calendar year being reported. Please note, the last year of the 5th cycle will only contain units with permit dates that occurred before the end of the cycle. The first year of the 6th cycle will only contain units with permits that occurred on or after the beginning of the cycle. To assist jurisdictions in completing this form, HCD has pre-filled permit data as reported to HCD on prior APRs. Past unit information will auto-populate when the jurisdiction’s name in the general information section of the “Start Here” tab is entered. Current year permitted units will auto-populate from data reported in table A2. If permit activity for current year is inaccurate, jurisdictions should make adjustments on field number 7, Affordability by Household Income – Building Permits in table A2.
Please contact HCD at [email protected] if data from previous years does not populate or if different than the information supplied in Table B. Any changes made by localities to previous years’ data in Table B will not update prior APR records maintained by HCD.
Table B reports the number of units for which permits were issued to demonstrate progress in meeting the jurisdiction’s share of regional housing need for the planning period.
1. Regional Housing Needs Allocation by Income Level: Lists the jurisdiction’s assigned RHNA for the planning cycle by income group. This field will be auto-populated once the jurisdiction’s name is entered in the “Start Here” tab.
2. Year: Lists the building permit data for each year of the RHNA planning cycle beginning in the first year and ending with the data from the current reporting year which can be found in Table A2.
3. Total Units to Date (all years): Totals the number of units permitted in each income category.
4. Total Remaining RHNA by Income Level: This field uses the information from the “Total Units to Date” category and deducts the units by income category from the jurisdiction’s assigned RHNA number. Note: The total units remaining to meet the RHNA allocation is in the bottom right hand corner.
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TABLE C
Sites Identified or Rezoned to Accommodate Shortfall Housing Need Please note: This table should only be filled out when a city or county identified an Unaccommodated Need of sites from the previous planning period Government Code section 65584.09, has Shortfall of Sites as identified in the housing element Government Code section 65583, subdivision (c)(1); or is identifying additional sites required by No Net Loss law pursuant to Government Code section 65863. The data in this inventory serves as an addendum to the housing element sites inventory. This table should not include rezoning for a specific project.
1. Project Identifier: Include the Assessor Parcel Number (APN) and street address. The project name and local jurisdiction tracking ID are optional.
2. Date of Rezone: If rezone was required, identify the date the rezone occurred. Enter date as month/day/year (e.g., 6/1/2018).
3. RHNA Shortfall by Household Income Category: For each development or site, list the number of units that are affordable to the following income levels (refer to Definitions section for more detail):
• Very low-income households: 0-50% AMI
• Low-income households: 50-80% AMI
Note: rezoning is not required to accommodate moderate or above moderate RHNA shortfall.
4. Rezone Type: From the dropdown list, select one of the following for each project:
• No Net Loss (Government Code section 65863): When a jurisdiction permits or causes its housing element sites inventory site capacity to be insufficient to meet its remaining unmet RHNA for lower and moderate-income households. In general, a jurisdiction must demonstrate sufficient capacity on existing sites or make available adequate sites within 180 days of there being insufficient sites to meet the remaining RHNA.
• Unaccommodated Need (Government Code section 65584.09): When a jurisdiction failed to identify or make adequate sites available in the prior planning period to accommodate its RHNA by income category. Note: When this condition occurred, the housing element in the current planning period in most cases will have a program to make available adequate sites to address the unmet RHNA by income category in the first year of the planning period. • Shortfall of Sites (Government Code section 65583, subdivision (c)(1)): When a jurisdiction does not identify adequate sites to accommodate its RHNA by income category in the current planning period. Note: When this condition occurred, the housing element for the current planning period must have included a program to make available adequate sites to address the unmet RHNA by income category. For jurisdictions on an eight year planning period, the rezones must be complete within the first three years of the planning period.
5. Parcel Size (Acres): Enter the size of the parcel in acres.
6. General Plan Designation: Enter the new General Plan Land Use designation. If no change was made, enter the current designation.
7. Zoning: Enter the new zoning designation for the parcel. If no change was made, enter the current zoning designation.
8. Density Allowed: Enter the minimum and maximum density allowed on each parcel. This is the density allowed after any zoning amendments are made. If no maximum density enter N/A.
9. Realistic Capacity: Enter the estimated realistic unit capacity for each parcel. Refer to Definitions for more information about “Realistic Capacity.”
10. Vacant/Non-vacant: From the drop-down list, select if the parcel is vacant or non-vacant. If the parcel is non-vacant, then enter the description of existing uses in Field 11.
11. Description of Existing Uses: Include a description of existing uses. Description must be specific (i.e. SFR, MF, surplus school site, operating business, vacant commercial building, parking lot). Classifications of uses (i.e. “commercial”, “retail”, “office”, or “residential”) are not sufficient.
TABLE D
Program Implementation Status pursuant to Government Code section 65583 Report the status/progress of housing element program and policy implementation for all programs described in the housing element:
1. Name of Program: List the name of the program as described in the element.
2. Objective: List the program objective (for example, “Update the accessory dwelling unit ordinance”).
3. Timeframe in Housing Element: Enter the date the objective is scheduled to be accomplished.
4. Status of Program Implementation: List the action or status of program implementation.
For your information, the following list includes the statutory requirements for housing element programs:
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• Adequate sites (Gov. Code, § 65583, subd. (c)(1)). Please note: Where a jurisdiction has included a rezone program pursuant to Government Code section 65583.2, subdivision (h) to address a shortfall of capacity to accommodate its RHNA, Table C must include specific information demonstrating progress in implementation including total acres, brief description of sites, date of rezone, and compliance with by-right approval and density requirements. • Assist in the development of low- and moderate-income housing (Gov. Code, § 65583, subd. (c)(2)). • Remove or mitigate constraints (Gov. Code, § 65583, subd. (c)(3)). • Conserve and improve existing affordable housing (Gov. Code, § 65583, subd. (c)(4)).
Promote and affirmatively further fair housing opportunities (Gov. Code, § 65583, subd. (c)(5)). • Preserve units at-risk of conversion from low-income use (Gov. Code, § 65583, subd. (c)(6).
Please note: Jurisdictions may add additional rows in Table D to include all Housing Element programs, or to provide clarification or information relevant to demonstrating progress towards meeting RHNA objectives.
TABLE E
Commercial Development Bonus Approved pursuant to Government Code section 65915.7 Government Code section 65915.7 states:
“(a) When an applicant for approval of a commercial development has entered into an agreement for partnered housing described in subdivision (c) to contribute affordable housing through a joint project or two separate projects encompassing affordable housing, the city, county, or city and county shall grant to the commercial developer a development bonus as prescribed in subdivision (b). Housing shall be constructed on the site of the commercial development or on a site that…” meets several criteria.
I
f the jurisdiction has approved any commercial development bonuses during the reporting year, enter the following information:
1. Project Identifier: Include the parcel’s APN number and street address. The project name and local jurisdiction tracking ID are optional.
2. Units Constructed as Part of the Agreement: For each development, list the number of units that are affordable to the following income levels (refer to definitions for more detail):
• Very low-income households: 0-50% AMI
• Low-income households: 50-80% AMI
• Moderate-income households: 80-120% AMI
• Above-moderate households: above 120%
3. Description of Commercial Development Bonus: Include a description of the commercial development bonus approved by the jurisdiction.
4. Commercial Development Bonus Date Approved: Enter the date that the jurisdiction approved the commercial development bonus. Enter date as month/day/year (e.g., 6/1/2018).
TABLE F
Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1, subdivision (c)
Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.
Units that Do Not Count Toward RHNA: The jurisdiction may list for informational purposes only, units that do not count toward RHNA but were substantially rehabilitated, acquired or preserved.
Units that Count Toward RHNA: To enter units in this table as progress toward RHNA, please contact HCD at [email protected]. HCD will provide a password to unlock the grey fields.
In order to count units reported in this table as progress towards RHNA, the jurisdiction will need to provide information that demonstrate the units meet the standards set forth in Government Code section 65583.1, subdivision (c). These program requirements are summarized on the Alternative Adequate Sites Checklist.
If HCD finds that the units meet the standards set forth in Government Code section 65583.1, subdivision (c) these units may credit up to 25 percent of the jurisdiction’s adequate sites requirement per income category.
Table G
Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of, pursuant to Government Code section 65400.1 X0A0T
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Chapter 664, Statutes of 2019 (AB 1486) added to the Government code section 65400.1, which requires jurisdictions to include in this APR a listing of sites owned by the locality that were included in the housing element sites inventory and were sold, leased, or otherwise disposed of during the reporting year.
The listing of sites must include the entity to whom the site was transferred, and the intended use of the site.
Table H
Locally Owned or Controlled Lands Declared Surplus Pursuant to Government Code section 54221, or Identified as Excess Pursuant to Government Code section 50569 Chapter 661, Statutes of 2019 (AB 1255) amended Government Code section 54230 to require cities and counties to create an inventory of surplus lands defined in subdivision (b) of Section 54221, and all lands in excess of its foreseeable needs, if any, identified pursuant to Section 50569, located in all urbanized areas and urban clusters, as designated by the United States Census Bureau, within the jurisdiction of the county or city that the county or city or any of its departments, agencies, or authorities owns or controls. Please note: Jurisdictions are only required to report on property located in an urban area or urbanized cluster. For a map of urban areas and urban clusters, please see HCD website here:
https://cahcd.maps.arcgis.com/apps/webappviewer/index.html?id=5a63b04d7c494a6ebb2aa38a2c3576f5 Cities and counties must make a description of each parcel described in paragraph (1) of Government Code section 54230 and the present use of the parcel a matter of public record and shall report this information to the Department of Housing and Community Development no later than April 1 of each year, beginning April 1, 2021, in a form prescribed by the department, as part of its annual progress report submitted pursuant to paragraph (2) of subdivision (a) of Section 65400. “Surplus land” means land owned in fee simple by any local agency for which the local agency’s governing body takes formal action in a regular public meeting declaring that the land is surplus and is not necessary for the agency’s use. Land shall be declared either “surplus land” or “exempt surplus land,” as supported by written findings, before a local agency may take any action to dispose of it consistent with an agency’s policies or procedures. A local agency, on an annual basis, may declare multiple parcels as “surplus land” or “exempt surplus land.”
“Surplus land” includes land held in the Community Redevelopment Property Trust Fund pursuant to Section 34191.4 of the Health and Safety Code and land that has been designated in the long-range property management plan approved by the Department of Finance pursuant to Section 34191.5 of the Health and Safety Code, either for sale or for future development, but does not include any specific disposal of land to an identified entity described in the plan.
Parcel Description must include the following:
1. APN: Enter the parcel number of the identified property.
2. Street Address/Intersection: Enter the street address of the property. If no street address is available, enter the closest known intersection.
3. Existing Use: Select the existing use of the property. Use the drop-down menu to select one of the following options:
• Residential
• Commercial
• Industrial
• Public Facilities
• Vacant
• Air Rights
• Other
4. Number of Units: If the existing use is residential, enter the number of units on the property.
5. Surplus Designation: Please identify if the property has been designated surplus or exempt surplus pursuant to Government Code section 54221, or excess pursuant to Government Code section 50569.
6. Parcel Size (in acres): Enter the parcel size in acres.
7. Notes (Optional): Please include any applicable notes providing additional property description. This could include description of any characteristics of the property.
Local Early Action Planning (LEAP) Grant Reporting
Pursuant to Health and Safety Code section 50515.04, recipients of Local Early Action Planning (LEAP) grants shall annually report by April 1 of the year following receipt of those funds on the status of proposed uses in the application. The report shall address the housing impact within the jurisdiction, including a summary of building permits, certificates of occupancy or other completed entitlements. Data sources may include the LEAP application (e.g., Attachment 1: Project Timeline and Budget), re-imbursement requests, other portions of the annual progress reports and other summary records of program activities.
1. Total Award Amount: Utilizing the LEAP application and award letter, fill in the total award amount for all proposed LEAP activities.
230
2. Task: Utilizing Attachment 1: Project Timeline and Budget from the LEAP application, fill in all project level tasks. Do not fill in sub-tasks. For example, an application might include a project level task to prepare and adopt a downtown specific plan. In this case, simply fill in downtown specific plan and do not fill in sub-tasks such as outreach, traffic studies, drafting and adoption.
3. $ Amount Awarded: Utilizing Attachment 1: Project Timeline and Budget from the LEAP application, fill in the total amount awarded for each project level task.
4. $ Cumulative Reimbursement Requested: Utilizing reimbursement requests sent to the Department, add up all requested amounts for each project level task. Note, this is reimbursement “requested” and not reimbursement “received”. At the time of reporting, some reimbursement requests may be in process. The table does not need to address reimbursements in process.
5. Task Status: Provide a brief description of the status of project level tasks. This description should address recently completed, upcoming milestones, anticipated completion dates and any schedule slippage. In addition, task status may express progress as a percentage of completion (e.g., 50% complete).
6. Other Funding: Note any other funding sources by amount being utilized to complete each project level task. If no other funding sources are being utilized, enter N/A. Examples of other funding includes SB 2 planning grants program, SB 1 sustainability planning grants program and local general funds.
7. Notes: Enter any other relevant information related to progress and impacts such as reasons for delays, anticipated numerical outcomes, etc.
8. Summary of Entitlements, Building Permits and Certificates of Occupancy: These tables will auto-populate from Table A2. 231
Frequently Asked Questions
Can I leave a row blank? Yes, you may leave blank rows in between rows that have information. However, you may not leave more than 10 rows in a row blank in between rows with information.
How do I delete rows? Click on a cell in the row(s) and type Ctrl-d .
Note: Macros must be enabled
Why are the rows not summing correctly? The summary tab and sum rows only include activities that occurred during the reporting year , according to the year entered in the "Start Here" tab.
Why are some cells highlighted yellow or green?
Yellow Cells: Required cells for each row become highlighted yellow once any cell in the row contains a character. The affordability descriptions become highlighted and required once any lower or moderate income units are entered into the form.
Green Cells: Cells highlighted green are where you indicate the number of units by affordability. This is required for any project in Table A. This is also required for the applicable sections (completed entitlement, issued building permits, issued certificates of occupancy) of Table A2. For example, if a project in Table A2 was issued a building permit, but not an entitlement or certificate of occupancy during the reporting year, you would enter the unit count in one of the green cells in the building permit section only. You may leave the other sections blank even though they are highlighted green, since they wouldn't apply to this example. Once a value is entered into this range, the range will no longer be highlighted green.
Why are the date cells highlighted red?
Cells can be highlighted red for two reasons:
Date cells: Sometimes, dates that are copied and pasted into this form are formatted as text. When pasting dates into the form please paste with the "match destination formatting" option. If the date cells are still highlighted red, they contain text. These must be converted to dates. To do so, open a blank workbook and paste in the dates that are formatted as text. In an adjacent column, enter the function =DATEVALUE and refer the function to the cell with date formatted as text.
This will result in a 5-digit number. Copy and paste these 5-digit numbers back into the APR form, then change the format of the cells to "Short Date" (i.e., 3/4/2012).
Text cells: Cells can also be highlighted red if the length of the text entered into the cell exceeds the character limit.
Can the same project be included in both Table A and Table A2? Yes. Table A tracks all applications for residential development that were received and deemed complete during the reporting year. Table A2 tracks all entitlements, building permits, and certificates of occupancy for residential development that were issued in the reporting year. If a project was applied for and received entitlements, building permits, and/or certificates of occupancy during the reporting year, that project would be listed in both Table A and Table A2.
What if I have nothing to report? At minimum, the "Start Here" tab and Table D must be completed. If you have nothing to report in any of the other tables, please leave them blank, do NOT put N/A or something similar.
How do I correct or update the values in Table B? Table B contains data HCD has received from prior APR submittals as of October 6, 2020. If the numbers do not match your records, please contact HCD.
Do I need to take the form to my Council or Board prior to submitting the APR? Government Code section 65400 requires the planning agency to provide this report to the legislative body (i.e. local Council or Board), HCD, and OPR by April 1 of each year. The statute does not specify in which order they be provided, and HCD does not require the report to be submitted to the legislative body prior to submitting it to HCD.
Can I use this form for a prior year?
You can use this form for 2018 -2020. Make sure to change the reporting year in row 5 of the "Start Here" tab. Table G is not required for 2018. Table H and LEAP are not required for 2018-2019.
For the years 2017 and prior, you must use the old version of the APR. Please contact HCD at [email protected] to obtain.Does submitting the Housing Element APR fulfill the requirements of submitting a General Plan APR? No. Government Code section 65400 requires jurisdictions to also submit a General Plan Annual Progress Report to OPR and HCD. These can be emailed to [email protected] and [email protected]
232
Jurisdiction Name
Reporting Calendar Year
First Name
Last Name
Title
Email
Phone
Street Address
City
Zipcode
v 1_13_2022
Optional: Click here to import last year's data. This is best used when the workbook is new and empty. You will be prompted to pick an old workbook to import from. Project and program data will be copied exactly how it was entered in last year's form and must be updated. If a project is no longer has any reportable activity, you may delete the project by selecting a cell in the row and typing ctrl + d.
111 Civic Drive
Hercules
94547
Please Start Here
General Information
2021
Hercules
Contact Information
Robert
Reber
Community Development Director
[email protected]
5107998248
Mailing Address
Annual Progress Report January 2020
233
Optional: This runs a macro which checks to ensure all required fields are filled out. The macro will create two files saved in the same directory this APR file is saved in. One file will be a copy of the APR with highlighted cells which require information. The other file will be list of the problematic cells, along with a description of the nature of the error.
Optional: Save before running. This copies data on Table A2, and creates another workbook with the table split across 4 tabs, each of which can fit onto a single page for easier printing. Running this macro will remove the comments on the column headers, which contain the instructions. Do not save the APR file after running in order to preserve comments once it is reopened.
Optional: This macro identifies dates entered that occurred outside of the reporting year. RHNA credit is only given for building permits issued during the reporting year.
Link to the online system: https://apr.hcd.ca.gov/APR/login.do Submittal Instructions
Please save your file as Jurisdictionname2021 (no spaces). Example: the city of San Luis Obispo would save their file as SanLuisObispo2021 Housing Element Annual Progress Reports (APRs) forms and tables must be submitted to HCD and the Governor's Office of Planning and Research (OPR) on or before April 1 of each year for the prior calendar year; submit separate reports directly to both HCD and OPR pursuant to Government Code section 65400. There are two options for submitting APRs:
1. Online Annual Progress Reporting System - Please see the link to the online system to the left. This allows you to upload the completed APR form into directly into HCD’s database limiting the risk of errors. If you would like to use the online system, email [email protected]
and HCD will send you the login information for
your jurisdiction. Please note: Using the online system only provides the information to HCD. The APR must still be submitted to OPR. Their email address is [email protected].
2. Email - If you prefer to submit via email, you can complete the excel Annual Progress Report forms and submit to HCD at [email protected] and to OPR at
[email protected]. Please send the Excel workbook, not a scanned or PDF copy of the tables.
234
Jurisdiction Hercules ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Year 2021 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 5th Cycle 01/31/2015 - 01/31/2023
Date
Application
Submitted
Total
Approved
Units by
Project
Total
Disapproved
Units by
Project
Streamlining
2 3 4 6 7 8 9
Prior APN+ Current APN Street Address Project Name+ Local Jurisdiction Tracking ID+
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Date
Application
Submitted+
(see
instructions)
Very Low-
Income Deed
Restricted
Very Low-
Income Non
Deed
Restricted
Low-Income
Deed
Restricted
Low-Income
Non Deed
Restricted
Moderate-
Income Deed
Restricted
Moderate-
Income
Non Deed
Restricted
Above
Moderate-
Income
Total PROPOSED
Units by Project
Total
APPROVED
Units by project
Total
DISAPPROVED
Units by Project
Was APPLICATION
SUBMITTED
Pursuant to GC
65913.4(b)?
(SB 35
Streamlining)
Was a Density
Bonus requested
for this housing
development?
Summary Row: Start Data Entry Below 0 0 0 0 0 0 0 0 0 0 0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Table A
Housing Development Applications Submitted
Cells in grey contain auto-calculation formulas
51 Project Identifier Unit Types Proposed Units - Affordability by Household Incomes (CCR Title 25 §6202)
Density Bonus
10 235
Jurisdiction Hercules ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2021 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey conta Planning Period 5th Cycle 01/31/2015 - 01/31/2023
Table A2
Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units 23 56
Prior APN+ Current APN Street Address Project Name+ Local Jurisdiction Tracking ID+
Unit Category
(SFA,SFD,2 to
4,5+,ADU,MH)
Tenure
R=Renter
O=Owner
Very Low-
Income Deed
Restricted
Very Low-
Income Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate-
Income Deed
Restricted
Moderate-
Income Non
Deed
Restricted
Above
Moderate-
Income
Entitlement
Date Approved # of Units issued
Entitlements
Very Low-
Income Deed
Restricted
Very Low-
Income Non
Deed
Restricted
Summary Row: Start Data Entry Below 0000 0 00 0 00
407-092-015 178 Agate Way BIR21-006337 ADU O 4/14/2020 0 362-340-052 148 Bonaire Ave BIR20-011540 ADU O 0
404-480-037 100 Talle y Way BIR20-009876 ADU O 0
404-480-067 2045 Railroad BIR21-007346 ADU O 0
404-100-014 160 Dunham C t BIR20-001170 ADU O 0
362-320-028 296 Carson BIR21-008434 ADU O 0
404-730-013 2200 John Muir
Parkway BIMR18-007391 5+ R 0
0 0
Note: "+" indica
t
Project Identifier
(CCR Title 25 §6202)
1 Unit Types Affordability by Household Incomes - Completed Entitlement Afforda 4 236
ain auto-calculation formulas
Streamlining Infill
89 11 12 13 14 15
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate-
Income Deed
Restricted
Moderate-
Income Non
Deed
Restricted
Above
Moderate-
Income
Building Permits
Date Issued
# of Units Issued
Building Permits
Very Low-
Income Deed
Restricted
Very Low-
Income Non
Deed
Restricted
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate-
Income Deed
Restricted
Moderate-
Income Non
Deed
Restricted
Above
Moderate-
Income
Certificates of
Occupancy or other
forms of readiness
(see instructions)
Date Issued
# of Units
issued
Certificates of
Occupancy or
other forms of
readiness
How many of
the units were
Extremely Low
Income?+
Was Project
APPROVED using
GC 65913.4(b)?
(SB 35
Streamlining)
Y/N
Infill Units?
Y/N+
0 0 0 0 4 4 0 0 15 0 0 0 220 235 00
1 7/14/2021 1 1 12/1/2021 1 N
1 1/27/2021 1 0N
0 1 11/12/2021 1 N
1 11/18/2021 1 0N
0 1 2/26/2021 1 N
1 10/7/2021 1 0N
0 15 217 7/7/2021 232 N
0 0
0 0
tes an optional field
ability by Household Incomes - Building Permits Affordability by Household Incomes - Certificates of Occupancy 7 10
237
Housing without Financial
Assistance or Deed
Restrictions
Term of Affordability
or Deed Restriction Notes
16 17 18 19 20 21 22 23 24 25
Assistance Programs
for Each Development
(may select multiple -
see instructions)
Deed Restriction
Type
(may select multiple
- see instructions)
For units affordable without
financial assistance or deed
restrictions, explain how the
locality determined the units
were affordable
(see instructions)
Term of Affordability or
Deed Restriction (years)
(if affordable in perpetuity
enter 1000)+
Number of
Demolished/Des
troyed Units
Demolished or
Destroyed Units
Demolished/De
stroyed Units
Owner or
Renter
Total Density Bonus Applied
to the Project (Percentage
Increase in Total Allowable
Units or Total Maximum
Allowable Residential Gross
Floor Area)
Number of Other
Incentives,
Concessions, Waivers,
or Other Modifications
Given to the Project
(Excluding Parking
Waivers or Parking
Reductions)
List the incentives,
concessions,
waivers, and
modifications
(Excluding Parking
Waivers or Parking
Modifications)
Did the project receive a
reduction or waiver of
parking standards? (Y/N)
Notes+
00 Other 55 Bayfront Development a
Housing with Financial Assistance
and/or Deed Restrictions Demolished/Destroyed Units Density Bonus 238
Jurisdiction Hercules ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2021 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 5th Cycle 01/31/2015 - 01/31/2023 (CCR Title 25 §6202) 1 3 4
RHNA Allocation
by Income Level 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Units to Date (all years)
Total Remaining RHNA
by Income Level
Deed Restricted - - - - - - - - - Non-Deed Restricted - - - - - - - - - Deed Restricted - - - - - - - - - Non-Deed Restricted - 1 - - 15 - - - - Deed Restricted - - - - - - - - - Non-Deed Restricted - - - - 217 - - - - Above Moderate 244 190 30 41 227 17 4 4 - - 513 - 682
190 31 41 227 249 4 4 - - 746 322 Note: units serving extremely low-income households are included in the very low-income permitted units totals and must be reported as very low-income units.
Please note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at [email protected]. -
-
This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs.
217 Moderate
220
118
100
Please contact HCD if your data is different than the material supplied here 16 2
Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
220
102
Please note: For the last year of the 5th cycle, Table B will only include units that were permitted during the portion of the year that was in the 5th cycle. For the first year of the 6th cycle, Table B will include units that were permitted since the start of the planning period.
Total RHNA
Total Units
Income Level
Very Low
Low
239
Jurisdiction Hercules ANNUAL ELEMENT PROGRESS REPORT
Reporting Year 2021 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 5th Cycle 01/31/2015 - 01/31/2023
Date of Rezone Rezone Type
2 4 5 6 7 9 10 11
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Date of Rezone Very Low-Income Low-Income Moderate-Income Above Moderate- Income
Rezone Type Parcel Size
(Acres)
General Plan
Designation Zoning Minimum
Density Allowed
Maximum
Density Allowed
Realistic
Capacity Vacant/Nonvacant Description of Existing
Uses
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
Summary Row: Start Data Entry Below
83 Project Identifier RHNA Shortfall by Household Income Category Sites Description 1 Sites Identified or Rezoned to Accommodate Shortfall Housing Need and No Net-Loss Law Table C
(CCR Title 25 §6202)
240
Jurisdiction Hercules
Reporting Year 2021 (Jan. 1 - Dec. 31)
1 2 3 4
Name of Program Objective Timeframe in H.E Status of Program Implementation Program 1a: Section 8
Housing Choice Vouchers
Program 1a: Section 8 Housing Choice
Vouchers Ongoing Activity of the Housing Authority of the County of Contra Costa, as the City of Hercules is not a designated Successor Housing Agency.
Program 1a: Section 8
Housing Choice Vouchers
Assist the County in advertising this
program through the City web site,
public counters, and bulletin boards in
order to meet the HUD requirements that
70% of new Section 8 vouchers be used
by extremely-low-income households.
Ongoing
Since the dissolution of the Redevelopment Agency (RDA), the City's web site has been modified to remove all RDA components. The City's web site has been revamped to provide a link to the Housing Authority's web site and its online database of currently available housing. Have not yet received hard copy materials from Housing Authority or other agencies.
Program 1b: Affordable
Housing Development
Incentives and Outreach
Maintain a list of interested and qualified
affordable housing developers. Actively
and annually publicize to affordable
housing developers the opportunities to
develop affordable housing in Hercules,
available incentives, and financing
options provided by the City or other
agencies.
Annual
During the public hearing process through which the City adopted its current Housing Element in 2015, the City contacted non-profit housing developers. Since then, there has not been separate outreach regarding affordable housing development opportunities as the City does not have funding incentives available.
Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.
Table D
Program Implementation Status pursuant to GC Section 65583
ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
(CCR Title 25 §6202)
241
Program 1b: Affordable
Housing Development
Incentives and Outreach
Utilize State and Federal assistance
programs, such as HOME, LIHTC, and
CHFA funds, on an ongoing basis to the
fullest extent possible to develop
affordable lower income housing for
seniors, families, and persons with
disabilities, including persons with
developmental disabilities. Support
funding applications by developers if the
proposed projects are consistent with
the goals and policies of the City's
General Plan. Annually, the City will
pursue funding opportunities.
Ongoing Table
Program 1b: Affordable
Housing Development
Incentives and Outreach
Work with developers in the Central
Hercules Plan area and other areas of
new development on an ongoing basis
to ensure that the City's housing goals
of providing a wider mix of housing
types and affordability levels are
achieved. The City will provide
incentives, including density bonus,
expedited processing, and flexible
development standards to encourage a
variety of housing in the community,
including projects that set aside units
for households with extremely low
incomes. With limited funding available,
the City anticipates only a goal of eight
affordable units.
2018 and ongoing
City responded to inquiries regarding the potential to develop single-family, multi- family, and/or senior housing at Lavender Place and Skelly, as well as at the Waterfront/Bayfront and Hilltown aread.
Program 1c: Density
Bonus Program
Continue to monitor the effectiveness of
the Density Bonus program and provide
technical assistance to developers in the
use of the City's program.
Ongoing No developers pursued density bonuses for residential projects, and therefore the use of the density bonus program was not applicable.
242
Program 1d: Extremely
Low Income Households
Explore incentives to encourage
developers to include units affordable to
extremely low income households,
including but not limited to additional
density or floor-area ratio increases,
flexible development standards (such as
parking, height limit) and priority
processing. The objective is to create
three affordable units for extremely low
income households over the planning
period.
Ongoing See Programs 1B and 1C.
Program 1d: Extremely
Low Income Households
Explore incentives to encourage
developers to include units affordable to
extremely low income households,
including but not limited to additional
density or floor-area ratio increases,
flexible development standards (such as
parking, height limit) and priority
processing. The objective is to create
three affordable units for extremely low
income households over the planning
period.
Ongoing No opportunities to offer such incentives occurred in 2021.
Program 2a: Code Continue to implement the code Ongoing The City has a small group of volunteers in the Police Department that performs some basic, pro-active code enforcement. In response to complaints filed, the Building Department has also sent out voluntary compliance letters to owners of reported properties.
Program 2a: Code
Enforcement
Continue installation of automatic gas
shut-off valves to improve resident
safety.
Ongoing
This program continues to be implemented as every house that is sold or permitted for improvements exceeding $25,000 is required to have an automatic gas shut-off valve installed.
Program 2a: Code
Enforcement
Continue referring code compliance
violations to available residential
rehabilitation programs to bring those
homes up to standards.
Ongoing
Since the dissolution of the Redevelopment Agency (RDA), the City's web site has been modified to remove all RDA components. The City's web site has been revamped to provide a link to the Housing Authority's web site and its online database of currently available housing. Have not yet received hard copy materials from Housing Authority or other agencies.
Program 6a: Energy
Conservation
Promote mixed-use/transit-oriented
development that provides opportunities
for energy conservation.
Ongoing
In 2020, the City approved entitlements for the Hill Town project, comprising 598 multi-family units and 4,000 square feet of retail within 1/2-mile of the existing bus transit center and less than one mile from the future Regional Intermodal Transportation Center.
243
Program 6a: Energy
Conservation
Encourage developers to exceed the
California Green Building Code
requirements in incorporating energy
conservation features and techniques.
Ongoing
The City Council encourages approved developments to provide "dark fiber" conduit to prepare for future high-speed internet service, which can help accommodate telecommuting opportunities, thus reducing greenhouse gases.
Program 2b: Foreclosure
Prevention Assistance
Advertise the program through City
website and provide brochure at public
counters.
Ongoing
Since the dissolution of the Redevelopment Agency (RDA), the City's web site has been modified to remove all RDA components. The City's web site has been revamped to provide a link to the Housing Authority's web site and its online database of currently available housing. Have not yet received hard copy materials from Housing Authority or other agencies.
Program 2c: Owner-
Occupied Single-Family
Residential Rehabilitation
Advertise the program through City
website and provide brochure at public
counters.
Ongoing
Since the dissolution of the Redevelopment Agency (RDA), the City's web site has been modified to remove all RDA components. The City's web site has been revamped to provide a link to the Housing Authority's web site and its online database of currently available housing. Have not yet received hard copy materials from Housing Authority or other agencies.
Program 3a: Provision of
Adequate Sites
Continue to pursue/implement the
projects on available sites as outlined in
Table 46. Monitor the City's progress in
meeting the RHNA and work with
developers to achieve an income
distribution that meets the City's
remaining RHNA units.
Ongoing
Catalyst Housing Group in partnership with CalCHA and support from the City purchased Bayfront Block N consisting of 172 units multi-family units to be deed restricted 'middle income" housing (80% AMI). Bayfront Blocks Q & R recieved tempoary certificate of occupancy, for 232 market-rate and 15 "low income" affordable multi-family units.
Program 3a: Provision of
Adequate Sites
Update the City's sites inventory every
two years to monitor the consumption of
residential and mixed-use properties
and continued ability to fulfill the RHNA.
2015, and every two years
thereafter
The residential sites inventory was updated in 2015 with the update of the 2015- 2023 Housing Element. No properties were rezoned for residential in 2020.
Program 3a: Provision of
Adequate Sites
Encourage sustainable development
patterns by continuing to offer
reductions in Traffic Facilities Impact
Fees for projects that are located within
one-half mile of a transit station and for
mixed-use projects where 50% or more
of the building space is used for
residential purposes. Offer Traffic
Facility Fee reductions to mixed-use
projects, subject to funding availability.
Ongoing
In 2019, the City updated impact fees for transportation facilities. Certain projects may still qualify for lower impact fees for Traffic Facilities based on the project's consistency with Section 66005.1 of the Mitigation Fee Act. Qualifying factors include, but are not limited to, proximity and access to transit and the amount of residential space and parking provided on-site. Reduced Traffic Facilities impact fees are negotiated and approved through a Development Agreement by the Office of the City Manager.
244
Program 4a: Development
Standards and Procedures
Annually review the development
standards, fees, and procedures and
make adjustments as appropriate and
legally feasible to encourage the
development of a variety of housing in
the community.
Ongoing
In 2020, the City drafted a new accessory dwelling unit ordinance to ensure consistency with recently enacted State of California accessory dwelling unit laws (ordinance adopted in February 2021).
Program 5a: Fair Housing
Continue to support the County and
refer any complaints and inquiries to the
County for resolution and services.
Ongoing
Since the dissolution of the Redevelopment Agency (RDA), the City's web site has been modified to remove all RDA components. The City's web site has been revamped to provide a link to the Housing Authority's web site and its online database of currently available housing. Have not yet received hard copy materials from Housing Authority or other agencies.
Program 5a: Fair Housing
Advertise fair housing services of the
County at public counters, through the
City website, and at various community
locations, including the City Library,
Community Centers, and Senior Center.
Ongoing
Since the dissolution of the Redevelopment Agency (RDA), the City's web site has been modified to remove all RDA components. The City's web site has been revamped to provide a link to the Housing Authority's web site and its online database of currently available housing. Have not yet received hard copy materials from Housing Authority or other agencies.
Program 5b: Reasonable
Accommodation
Advertise the program through City
website and provide brochure at public
counters.
Ongoing
Since the dissolution of the Redevelopment Agency (RDA), the City's web site has been modified to remove all RDA components. The City's web site has been revamped to provide a link to the Housing Authority's web site and its online database of currently available housing. Have not yet received hard copy materials from Housing Authority or other agencies.
Program 5b: Reasonable
Accommodation
Provide technical assistance regarding
the application requirements and
procedures to persons/entities seeking
reasonable accommodation.
Ongoing Building Department staff address questions as they come up.
Program 5b: Reasonable
Accommodation
Within one year of the Housing Element
adoption, revise the Reasonable
Accommodation Ordinance to remove
the primary residence requirement,
thereby allowing the application of
reasonable accommodation to all
dwellings, including secondary homes.
Completed
The City Council on June 28, 2016, adopted Ordinance 496, approving Zone Amendment #ZA 16-02, which amended the City's Zoning Ordinance, Chapter 6 (Residential Districts) and Chapter 53 (Reasonable Accommodations for Persons with Disabilities) to clarify provisions of transitional/supportive housing in the RM- L zone as similar uses in the same zone.
245
Program 5c: Cooperation
with Contra Costa Health
Services Homeless
Program
Advertise the program through the City
website and provide brochure at public
counters.
Ongoing
Since the dissolution of the Redevelopment Agency (RDA), the City's web site has been modified to remove all RDA components. The City's web site has been revamped to provide a link to the Housing Authority's web site and its online database of currently available housing. Have not yet received hard copy materials from Housing Authority or other agencies.
Program 5c: Cooperation
with Contra Costa Health
Services Homeless
Program
Participate in County Homeless Program
biennial Point-in-Time count and
participate in other regional studies and
efforts in reducing homelessness.
2015, and every two years
thereafter
City supported County's biennial point-in-time count in 2019; there was no biennial point-in-time count in 2020.
246
Jurisdiction Hercules ANNUAL ELEMENT PROGRESS REPORT
Reporting Period 2021 (Jan. 1 - Dec. 31) Housing Element Implementation Planning Period 5th Cycle 01/31/2015 - 01/31/2023
Description of Commercial
Development Bonus
Commercial Development Bonus
Date Approved
3 4
APN Street Address Project Name+ Local Jurisdiction
Tracking ID+
Very Low
Income
Low
Income
Moderate
Income
Above Moderate
Income
Description of Commercial
Development Bonus
Commercial Development Bonus
Date Approved
Summary Row: Start Data Entry Below
Units Constructed as Part of Agreement
Commercial Development Bonus Approved pursuant to GC Section 65915.7 Table E
Note: "+" indicates an optional field
Project Identifier
1 2
Cells in grey contain auto-calculation
formulas
(CCR Title 25 §6202)
Annual Progress Report January 2020
247
Jurisdiction Hercules ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Period 2021 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas Planning Period 5th Cycle 01/31/2015 - 01/31/2023 (CCR Title 25 §6202) Extremely Low-
Income+ Very Low-Income+ Low-Income+ TOTAL UNITS+
Extremely Low-
Income+
Very Low-
Income+ Low-Income+ TOTAL UNITS+
Rehabilitation Activity
Preservation of Units At-Risk
Acquisition of Residential Units
Mobilehome Park Preservation
Total Units by Income
Table F
Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.
Activity Type
Units that Do Not Count Towards RHNA+
Listed for Informational Purposes Only
Units that Count Towards RHNA +
Note - Because the statutory requirements severely limit what can be counted, please contact HCD to receive the password that will enable you to populate these fields. The description should adequately document how each unit complies with subsection (c) of Government Code
Section 65583.1+
Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) Annual Progress Report January 2020
248
Jurisdiction Hercules
Reporting Period 2021 (Jan. 1 - Dec. 31)
Planning Period 5th Cycle 01/31/2015 - 01/31/2023 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation
2 3 4
APN Street Address Project Name+ Local Jurisdiction
Tracking ID+
Realistic Capacity
Identified in the
Housing Element
Entity to whom the site
transferred Intended Use for Site
1 Summary Row: Start Data Entry Below
Note: "+" indicates an optional field
Cells in grey contain auto-calculation
formulas
(CCR Title 25 §6202)
Table G
Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of Project Identifier
NOTE: This table must only be filled out if the housing element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting year.
249
Jurisdiction Hercules
Note: "+" indicates
an optional field
Reporting Period 2021
(Jan. 1 - Dec.
31)
Cells in grey
contain auto-
calculation formulas
Designation Size Notes
1 2 3 4 5 6 7
APN Street Address/Intersection Existing Use Number of
Units
Surplus
Designation
Parcel Size (in
acres) Notes
Summary Row: Start Data Entry Below
Parcel Identifier
ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
(CCR Title 25 §6202)
Table H
Locally Owned Surplus Sites
250
Jurisdiction Hercules
Reporting Year 2021 (Jan. 1 - Dec. 31)
Planning Period 5th Cycle 01/31/2015 - 01/31/2023
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
4 4
Units by Structure Type Entitled Permitted Completed
SFA 0 0 0
SFD 0 0 0
2 to 4 0 0 0
5+ 0 0 232
ADU 0 4 3
MH 0 0 0
Total 0 4 235
0 0
0 0
0 0
0 0
Income Rental Ownership Total
Very Low 0 0 0
Low 0 0 0
Moderate 0 0 0
Above Moderate 0 0 0
Total 0 0 0
Cells in grey contain auto-calculation formulas
Income Level
Very Low
Low
Moderate
Above Moderate
Units Constructed - SB 35 Streamlining Permits
Number of Streamlining Applications Approved
Total Developments Approved with Streamlining
Total Units Constructed with Streamlining
Total Housing Applications Submitted:
Number of Proposed Units in All Applications Received:
Total Housing Units Approved:
Total Housing Units Disapproved:
Total Units
Housing Applications Summary
Use of SB 35 Streamlining Provisions
Note: Units serving extremely low-income households are included in the very low-income permitted units totals Number of Applications for Streamlining
Building Permits Issued by Affordability Summary
251
Jurisdiction Hercules
Reporting Year 2021 (Jan. 1 - Dec. 31)
Total Award Amount Total award amount is auto-populated based on amounts entered in rows 15-26.
Task $ Amount Awarded $ Cumulative Reimbursement
Requested
Other
Funding Notes
Housing Element consultant
initiation $1,000.00 $0.00
Local
General
Fund
Housing Element and document
assessment $5,000.00 $0.00
Local
General
Fund
Preliminary RHNA site
identification $9,000.00 $0.00
Local
General
Fund
Community engagement $22,000.00 $0.00
Local
General
Fund
Draft Housing Element $40,000.00 $0.00 REAP $20,000 REAP Grant Public review of draft Housing
Element $5,000.00 $0.00
Local
General
Fund Pending
General Plan/Zoning consistency
analysis $7,000.00 $0.00
Local
General
Fund
Housing Element review &
adoption hearings $12,000.00 $0.00
Local
General
Fund Pending
HCD review / coordination /
approval $6,500.00 $0.00
Local
General
Fund Pending
Final Housing Element $2,500.00 $0.00
Local
General
Fund Pending
CEQA document $40,000.00 $0.00
Local
General
Fund
Summary of entitlements, building permits, and certificates of occupancy (auto-populated from Table A2) Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
0 0
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
4 4
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 15
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
220
235
ANNUAL ELEMENT PROGRESS REPORT
Local Early Action Planning (LEAP) Reporting
(CCR Title 25 §6202)
In Progress
Other (Please Specify in Notes)
Please update the status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction, as applicable, categorized based on the eligible uses specified in Section 50515.02 or 50515.03, as applicable.
150,000.00$
Task Status
Completed
Completed
Other (Please Specify in Notes)
In Progress
In Progress
In Progress
Other (Please Specify in Notes)
In Progress
Other (Please Specify in Notes)
Total Units
Certificate of Occupancy Issued by Affordability Summary Income Level
Very Low
Low
Moderate
Above Moderate
Moderate
Above Moderate
Total Units
Completed Entitlement Issued by Affordability Summary
Income Level
Very Low
Low
Moderate
Above Moderate
Total Units
Building Permits Issued by Affordability Summary
Income Level
Very Low
Low
252
Gateway
https://hercules.legistar.com/gateway.aspx?M=F&ID=23d21f2e-ed71-46dd-9412-dfbde4ec306e.xlsm[3/2/2022 8:10:07 PM] This record is currently unavailable.
253
111 Civic Drive
Hercules, CA 94547City of Hercules
Legislation Details (With Text)
File #: Version: 122-090 Name:
Status:Type: Discussion/Action Item Agenda Ready
File created: In control:3/1/2022 City Council
On agenda: Final action:3/8/2022
Title: Follow Up from February 22, 2022 Council Meeting - Discussion of Potential Tax Measures: 1) Continuation of the City's Utility User Tax (UUT), and 2) Process for Becoming a Charter City for the Purpose of Increasing the Real Property Transfer Tax (RPTT) Recommendation: Receive report, discuss, provide direction to staff regarding: 1) Extending the Utility Users Tax (UUT) beyond January 1, 2025, and 2) the proposal to become a charter city for the limited purpose of increasing the Real Property Transfer Tax (RPTT).
Sponsors:
Indexes:
Code sections:
Attachments: Staff Report - FINAL - Follow up from February 22 Council Meeting Regarding Potential Tax Measures Attach 1 - February 8, 2022, Staff Report - Polling Results Related to Extending the Existing Utility Attach 2 - Summary Report of January 2022 Community Survey Results.pdf Attach 3 - Changes in Full-Time Equivalent City Government Employees by Function Last Ten Attach 4 - February 25, 2020, Staff Report - Process for Becoming a Charter City.pdf Attach 5 - January 25, 2022 Staff Report to the City Council - Long-Term Financial Projection.pdf Attach 6 - FY 21-22 General Fund Five-Year Financial Forecast.pdf Attach 7 - Estimated Cost to Restore City Services to Pre-Recession Levels.pdf Attach 8 - March 23, 2021, Staff Report - Public Works Department Organizational Review and Attach 9 - March 23, 2021, City Council Presentation - Public Works Department Organizational Attach 10 - March 23, 2021, Final Report - Public Works Department Organizational Review and Attach 11 - SUMMARY OF BUILT AND APPROVED RESIDENTIAL UNITS AS OF FEBRUARY 28, Action ByDate Action ResultVer.
Follow Up from February 22, 2022 Council Meeting - Discussion of Potential Tax Measures: 1) Continuation of the City's Utility User Tax (UUT), and 2) Process for Becoming a Charter City for the Purpose of Increasing the Real Property Transfer Tax (RPTT) Recommendation: Receive report, discuss, provide direction to staff regarding: 1) Extending the Utility Users Tax (UUT) beyond January 1, 2025, and 2) the proposal to become a charter city for the limited purpose of increasing the Real Property Transfer Tax (RPTT).
City of Hercules Printed on 3/2/2022Page 1 of 1
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REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of March 8, 2022
TO: Mayor Bailey and Members of the City Council
SUBMITTED BY: J. Patrick Tang, City Attorney
Dante Hall, City Manager
SUBJECT: Follow up from February 22 Council meeting – Discussion of Potential Tax Measures: 1) Renewal of the City’s Existing Voter Approved Utility Users Tax (UUT), and 2) Process for Becoming a Charter City for the Limited Purpose of Increasing the Real Property Transfer Tax (RPTT), which is Only Paid by Buyers or Sellers of Real Property
RECOMMENDED ACTION:
Receive report, discuss, provide direction to staff regarding: 1) Extending the City’s existing, voter-approved Utility Users Tax (UUT) beyond January 1, 2025 and, 2) placing a potential charter city measure on the ballot, for the limited purpose of increasing the Real Property Transfer Tax (RPTT).
FISCAL IMPACT OF RECOMMENDATION:
If the Council moves forward with one or more of the proposed ballot measures, costs will be incurred for staff time, consulting, and ballot related expenses.
EXECUTIVE SUMMARY:
Two potential tax measures are discussed in this report. The first is a renewal of the existing Utility Users Tax (UUT), which if not renewed by an affirmative vote of a majority of voters, will expire January 1, 2025. The second is an increase in the Real Property Transfer Tax (RPTT). Hercules is a general law city, and only charter cities can increase the RPTT beyond the statutorily mandated amount for general law cities. In order to increase the RPTT, the Council must place a ballot measure before the voters at a general election to become a 255
charter city for that limited pu rpose. The Council has directed that both options be considered for placement on the November 8, 2022 ballot.
BACKGROUND:
At the February 8, 2022 Council meeting, the City’s consultants, the Lew Edwards Group and FM3 Research (“Consultants”) , provided polling results related to extending the existing Utility Users Tax (UUT) currently set to expire in January 2025, and the viability of becoming a Charter City for the limited purpose of increasing the Real Property Transfer Tax (RPTT) (Attachments 1 and 2). After receiving the presentation and after a discussion of options, the Council declined to move forward with a ballot measure in June 2022 for renewing the UUT (this would have required the adoption of a fiscal emergency declaration by a unanimous vote of the Council), and instead directed that staff work with Consultants to determine the viability of placing on the November 2022 ballot:
1) A measure to renew the existing, voter -approved UUT, which if not continued would expire in January 2025; and
2) A measure to become a Charter City for the limited purpose of increasing the RPTT; and
3) In conjunction with 2 above, approval of an ordinance increasing the RPTT to an as yet unspecified amount above the current statutory amount of $0.55 per $1,000 of property value.
The direction from Council to explore the placement of all of the above measures on the November ballot necessitates retention of one or more consultants for additional polling and survey work. At the February 22, 2022 Council meeting, staff presented Council with a contract extension for Lew Edwards and FM3 Research to undertake the work required to determine the viability of placing both the UUT and City Charter/RPTT measures on the November ballot. The Council had a number of questions regarding both of the proposed measures, and agreed to defer action on approval of additional funding for Consultants until the Council could first have additional discussion at tonight’s meeting regarding both the UUT and City Charter/RPTT matters.
DISCUSSION:
What is the UUT? The Utility Users Tax (UUT), pursuant to Title 8, Chapter 8 of the Hercules Municipal Code, is a tax approved in two different elections by Hercules voters and collected by the service provider on the use of various utilities by Hercules residents, covering telecommunications, electricity, natural gas, water, and video service usage. The 256
UUT is currently assessed at 8%, and the UUT will exp ire on January 1, 2025. The City receives approximately $3.5 million a year from the UUT.
The City is a lean organization and has not fully recovered from the staff and budgetary cuts necessitated by the Great Recession. With the dissolution of the redevelopment agency in 2012 by Sacramento, the City has lost a significant funding source for funding capital improvements. In FY 2011, the City reduced its workforce by 30% and made significant service cuts to bring expenditures in line with its revenues. The attached chart identifies the changes in the number of full-time employees from FY 2011 through FY 2020 (Attachment 3). While these changes saved the City from near bankruptcy, it did not cure the long-term structural deficit, nor contemplate a plan for financial sustainability.
The City relies on UUT proceeds to fund a wide range of services including maintenance of public properties, staffing, and providing for public safety. If the UUT is allowed to expire in January 2025 without being continued, the loss of approximately $3.5 million a year in revenue would drastically impair the City’s ability to provide even a minimal level of service. If we are required to make budget cuts that may include police and neighborhood patrols, street maintenance, parks, senior services, youth programs, and economic development, we risk a decline in our quality of life.
What is the RPTT? The Real Property Transfer Tax (RPTT), pursuant to Title 8, Chapter 3 of the Hercules Municipal Code, is a n existing tax collected by the County Clerk -Recorder which is only paid by buyers or sellers of real property . It is imposed on each deed, instrument or writing by which any land or other realty sold within the City of Hercules is granted, assigned, transferred or otherwise conveyed to any other person or persons, at the rate established by state law for general law cities of $1.10 for each $1,000 of property value.
The tax proceeds received are split, with $.055 per $1,000 going to the County, and the $.055 per $1,000 going to the City. The amount of RPTT the City received in 2021 for all properties sold during that year was a total of $120,000.00.
To increase the RPTT, a general law city must become a charter city. To become a charter city, a general law city must receive voter approval via a ballot measure. Becoming a charter city requires approval by a simple majority of voters at a general elect ion. Other East Bay/Bay Area cities such as Alameda, Albany, Berkeley, El Cerrito, Emeryville, and Hayward have taken this step to expand their authority to collect a larger percentage of these transactions. If the City increases its share of RPTT in this manner, the County would continue to receive $0.55 per $1,000 of property value, but the City would retain the rest of the amount authorized by the tax measure.
At the February 22 meeting, the questions and comments by Council included:
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Can the UUT be renewed at a higher rate than the current 8%? How about 9% or 10%?
Answer: Yes. The UUT can be set higher than the current 8% rate; however, the polling to date by Consultants did not contemplate an increase to the current UUT rate of 8% and an increase might poll significantly differently from a renewal with no rate increase. Every increase of 1% of UUT would result in additional revenue of approximately $437,500 based on current UUT revenue of approximately $3.5 million a year.
Should Consultants be provided a specific amount or a range of potential RPTT amounts prior to undertaking additional polling of voters?
Answer: Yes. To fully understand public sentiment of a potential RPTT increase, Council direction on a tax rate range (a low and high dollar amount) would be important to establish prior to polling, so consultants can test that range. Depending on feedback from the polling results, the Council would be able to select a viable RPTT t ax measure amount for placement on the November 2022 ballot.
How have other cities determined the amount of RPTT increase to be sought?
Answer: Most of the cities surveyed have established an increased RPTT rate based in large part on a projection of future need. For example in the case of Emeryville in 2014, which is 95% inside a redevelopment area, the amount of RPTT to be collected, $12 per $1,000 of property value, was calculated based on how much funding for budget and capital impr ovements was lost as a result of redevelopment dissolution, and how much funding would be needed for additional critical capital improvements.
As a point of reference, the chart below identifies the base RPTT rates applied in nearby charter cities. The median tax rate selected by these cities is $12 per $1,000 of property value. The RPTT rate for all charter cities in California has been previously reported and is included in the agenda materials from past Council reports, attached to this report (Attachment 4).
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CITY CITY TAX (PER
THOUSAND DOLLARS)
Alameda $12.00
Albany $15.00
Berkeley $15.00
El Cerrito $12.00
Emeryville $12.00
Oakland $15.00
Piedmont $13.00
Richmond $7.00
San Leandro $11.00
Median $12.00
For Hercules, General Fund expenditures are projected to increase at the estimated rate of 3% a year . Expenditure projections for a 5 -year forecast period through 2027 range from $16.8 to $18.6 million assuming the current service levels are preserved. A structural deficit of approximately $2 million will begin in FY 24-25 without additional revenue streams and if the UUT is not renewed beyond its January 2025 expiration date (Attachments 5 and 6).
This forecast does not include the future expectations of the Council and citizens regarding the potential for expanded service levels and public infrastructure needs and improvements.
As mentioned above, in 2011 the City made significant service cuts in the attempt to bring expenditures in line with its revenues. Even if an extension of the UUT at its current rate of 8% were approved by the voters, an additional $3 million annually would still be needed to restore City services to pre - recession levels (or FY 2011) (Attachment 7) .
Should Hercules become a charter city and increase its RPTT, the revenue comparison chart below shows the annual revenue that would be received using the average annual RPTT amounts received for Fiscal Years 2014-2019:
Tax Rate $0.55/1,000 $4/1,000 $8/1,000 $12/1,000 $16/1000 Estimated
Annual Revenue $115K $838K $1.6M $2.5M $3.3M
Therefore, curing the structural deficit projected to begin in FY 24 -25 and restoring prior service levels to meet community de mand would require a 259
renewal of the UUT at its current 8% rate, and an additional $3 million annually. Given the staff shortag es in the Public Works Department (Attachments 8, 9 and 10), the current lack of a dedicated code enforcement unit, understaffing in the Planning Department, and the perceived need to increase public safety expenditures to meet future needs resulting from a projected increase in 1,509 residentials units (Attachment 11), staff recommends that Consultants be directed to poll voters regarding the Charter City/RPTT proposal based on a range from $8 to $16 per $1,000 to achieve the revenue amounts illustrated in the above table.
What is the timeline for each of the proposed measures?
UUT: A proposed measure to continue the UUT must be submitted at least eighty-eight (88) days before the November 8, 2022 election. The City Council would need to vote on submission of the ballot measure no later than the August 9, 2022 council meeting.
Charter City/RPTT:
Prior to approving submission of the charter to the voters, the City Council must hold at least two public hearings on the proposal of the charter and the content of the charter, and notice of those hearings must be published at least twenty one (21) calendar days before the date of each hearing. The second public hearing must be held at least thirty (30) days after the first hearing, and at least one of the hearings must be held outside of normal business hours.
The City Council may not vote on submission of the charter to the voters until twenty one (21) days after the second public hearing. A charter proposal can only be voted on at a regular general election, absent a declaration of a fiscal emergency. In order for the City Council to place a charter measure on the ballot for November 2022, the City would need to adhere to the following timeline:
The City Council must vote to submit the proposed charter to the voters at least eighty-eight (88) days before the election, and hold at least two public hearings.
City Council holds first public hearing on proposed charter May 10, 2022
Notice of the hearing must be given 21 days in advance
City Council holds second public hearing on proposed charter 260
June 14, 2022
Must occur at least 30 days after first public hearing
City Council votes on submission of the proposed charter to the voters no later than August 9, 2022.
Election Date: November 8, 2022
CONCLUSION:
Staff seeks further direction from Council regarding the proposed tax measures discussed in this report.
Attachments:
1. February 8, 2022, Staff Report - Polling Results Related to Extending the Existing Utility Users Tax and the Viability of Becoming a Charter City
2. February 4, 2022, Summary Report of January 2022 Community Survey Results
3. Changes in Full-Time Equivalent City Government Employees by Function Last Ten Years
4. February 25, 2020, Staff Report - Process for Becoming a Charter City
5. January 25, 2022, Staff Report - Long-Term Financial Projection
6. FY 21-22 General Fund Five-Year Financial Forecast
7. Estimated Cost to Restore City Staffing Levels to Pre-recession Levels
8. March 23, 2021, Staff Report - Public Works Department Organizational Review and Analysis
9. March 23, 2021, City Council Presentation - Public Works Department Organizational Review and Analysis
10. March 23, 2021, Final Report - Public Works Department Organizational Review and Analysis
11. Summary of Built and Approved Residential Units as of February 28, 2022
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REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 8, 2022
TO: Mayor Kelley and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
SUBJECT: Report on Polling Results Related to Extending the E xisting Utility Users Tax and the Viability of Becoming a Charter City for the Limited Purpose of Increasing the Real Estate Property Transfer Tax RECOMMENDATION ACTION:
Staff recommends that the City Council:
1. Receive the report from the Lew Edwards Group and direct staff to proceed with planning for the placement of the Utility Users Tax measure on the City’s regularly scheduled Municipal Election in November of 2022, or
2. Provide alternate direction
FISCAL IMPACT:
There is no fiscal impact to receiving this report. Based on the Council’s direction, staff will return to the Council to request additional funds.
EXECUTIVE SUMMARY:
In October of 2021, the City awarded a contract to the Lew Edwards Group, and FM3 Research to determine the public opinion of registered voters regarding 1) the feasibility of going to the voters in November 2022 or November 2024 to extend the existing Utility Users Tax (UUT) prior to its expiration on January 1, 2025, and 2) the viability of becoming a charter city for the limited purpose of increasing the Real Property Transfer Tax (RPTT).
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Lew Edwards and FM3 Research have completed the public opinion survey and will be making a presentation about their findings and recommendations related to the UUT and RTTP initiatives (ATTACHMENT 1).
BACKGROUND AND ANALYSIS:
At its May 25 th, 2021 meeting, the Council engaged in a discussion regarding the feasibility of becoming a charter city for the limited purpose of increasing the real Property Transfer Tax, the Council requested that the Charter City/RPTT item come back for additional discussion and further directed that a companion report be prepared regarding the need to extend the UUT which will otherwise expire on January 1, 2025.
The City of Hercules relies on the UUT to provide sufficient ongoing revenues to sustain current levels of service. The UUT sunsets January 1, 2025 and is estimated to generate a projected $ 3.5 million in revenue in the fiscal year which ends June 30, 202 2. Without these revenues, the city would not be in the position to continue to provide the services important to our community even at the current reduced level. While there has been some improvement in revenues overall, Hercules still receives a low share of the property taxes compared to other cities in Contra Costa County, and its retail tax base while largely weathering the effects of Covid -19 is not significant enough to support current service levels without the UUT.
Attachments:
1. Summary Report of January 2022 Community Survey Result
2. January 2022 Community Opinion Survey Questions
3. November 9, 2021 Staff Report – Lew Edwards Group award of contract
4. Resolution
5. Election Opinion Poll Services
263
To: Hercules City Manager Dante Hall
From: Lew Edwards Group and FM3 Research
Date: February 4, 2022
Re: Summary Report of January 2022 Community Survey Results
INTRODUCTION
Together with City Executive Staff, Lew Edwards Group (LEG) and FM3 Research (FM3) designed an updated 2022 City of Hercules Community Survey to evaluate customer satisfaction, resident priorities for services, and community interest in potential local funding measures.
Survey interviews were conducted by FM3 January 3 -17th. LEG/FM3 is pleased to report 324 completed interviews, which is more tha n the 245 respondents willing to respond in the last survey conducted in the City in 2015 . The Margin of Error on the full sample is +/ - 5.4% at the 95% confidence level.
VIEWS OF THE CITY
Having serv ed the City ’s sustainability needs over the course of the past decade, LEG /FM3 have a unique view on how resident perspectives have evolved over time.
2022 survey respondents clearly view life in Hercules through a more positive lens. Today, those who say things are off on the wrong track are at a record low, and 56% of respondents feel the City is headed in the “right direction” -- a 25 point increase from when we started our collaboration with the City in 2012.
A majority of respondents feel the City is doing an “excellent” or “good” job providing services, and a plurality believe the City is doing a good job managing its budget and finances . At the same time, perceptions of city inefficiency and corruption have continued to steadily decline since 2012 , with perceptions of c orruption, cronyism, waste, or inefficiency dropping from a high of 63% in 2012 to 24% today.
While confidence has softened since our 2015 collaboration, it is still stronger than many other cities are currently experiencing and is likely due to the uncertain COVID times . This is a testament to City leadership’s hard work during these trying times.
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MEASURE VIABILITIES
There were three measures evaluated in the 2022 study.
Renewal of Existing Voter-Approved UUT, with No Increase in Tax Rate
The City is in a strong position to renew its existing, voter-approved utility users tax (UUT) measure in November 2022 . The following ballot question (reviewed and approved by the City Attorney) was tested three times in the study:
CITY OF HERCULES NO TAX INCREASE/FINANCIAL STABILITY MEASURE: Shall an ordinance to maintain Hercules’ long -term financial stability and essential city services, such as neighborhood police patrols; crime prevention; street and pothole repair; and youth an d senior programs, by renewing an existing, voter -approved 8% utility users’ tax, generating approximately $3,600,000 annually until ended by voters, with no tax increase, low -income exemptions, independent citizens’ oversight, annual audits, and funding that cannot be taken by Sacramento, be adopted?
This simple majority requirement measure be gins with a 67% viability threshold on the first ballot test, stays consistent at 69% on the second test, and remains at 66% on the final, third ballot test. As there is no statistical difference in these perce ntages, this measure is strongly supported by respondents and remains remarkably consistent through the entire progression of the survey.
Based on this evaluation, LEG/FM3 recommend the City proceed with planning for placement of this measure on the City’s regularly scheduled Municipal Election.
City Charter Measure
Each of the two following measures were tested once in the study:
CITY OF HERCULES CITY CHARTER/LOCAL CONTROL MEASURE. To enhance local control over funding essential city services, shall the City of Hercules Charter be adopted to establish Hercules as a Charter City with the ability to adopt a local real property transfer tax, subject to voter approval? The City Council’s powers otherwise remain unchanged and are limited by State general law, and any other powers as a charter city would have to be approved by voters. Do yo u think you would vote “yes” or “no” on this measure?
This simple majority-requirement Charter measure receives 39% support. While this percentage is not unusual for other LEG cities who have enacted similar measures, it bea rs noting that in Hercules's case, the percentage opposition to this measure is also 39%, whic h is far higher than in our other successful cities. The percentage of undecideds are therefore much lower in Hercules (around 20%) than in other successful jurisdictions.
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Based on t he community ’s current reaction to this measure LEG/FM3 advise a longer runway of preparation for the 2024 election cycle to provide time for the City to educate the community about this measure concept if desired.
Real Property Transfer Tax (RPTT) Measure
The following companion rev enue measure to the Charter Measure was also tested once in the survey:
CITY OF HERCULES ESSENTIAL SERVICES PROTECTION MEASURE. Shall an ordinance to expand locally controlled funding for essential city services such as improving 911 r esponse times, disaster preparedness/ safe routes to school; retaining/ attracting businesses; keeping public areas/ parks safe/ clean; by enacting a real property transfer tax (paid only by buyers and sellers of property at the time of sale), until ended by voters and requiring annual audits, no funds for Sacramento, be adopted?
The test of t his simple majority-requirement companion RPTT measure is at 53% which is within the MOE for the survey. As this type of funding mechanism is reliant on the companion Charter Measure being adopted, as noted above, deferring consideration of this measure package until 2024 is strongly advised due to the relatively low scoring reactions to both at this time.
TOP SCORING COMMUNITY PRIORITIES
An extensive battery of City services /objectives was evaluated in the study . The following seven services/objectives scored the most intensively and highly:
▪ Maintaining long-term financial stability - 88%
▪ Preventing funds being taken by Sacramento - 87%
▪ Meeting water quality health standards - 86%
▪ Maintaining fiscal accountability - 86%
▪ Maintaining 911 response times - 85%
▪ Keeping public areas and parks safe and clean - 84%
▪ Keeping funds local - 81%
INFORMATIONAL STATEMENTS
The following paraphrased informational facts resonated most strongly and effectively with survey respondents.
Budget Implications: Without this funding, the City will lose $3.6 million every year, which is over 20% of the City's budget. T he City may have no choice but to slash basic city services just to balance its budget, including police and neighborhood patrols, street maintenance, parks, senior services, youth programs, economic development, and others.
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Maintaining Local Public Safety Services : Measure C has maintained police services. I f it is not renewed, the City will be forced to seriously consider major cuts to our police department, which could impact crime prevention and 911 response times.
Quality of Life: Hercules is a place where people desire to live and raise families. If the City is forced to continue cutting basic city services, the character of our community and its quality of life will decline. Renewing local funding helps protect and maintain esse ntial City services that make our community a safe, well-maintained place to live.
Finally, it b ears noting that the study found that virtually half of Hercules respondents were concerned about the am ount they were paying in utilities -- viewing it as an “extremely” or “very” serious problem. In these uncertain COVID times LEG/FM3 would caution the City about over - reaching to consider any increase or changes to the actual UUT rate . These results show your constituents clearly value maintaining existing voter-approved funding for the City’s long-term fiscal stability with no tax rate increase, but do not speak to the viability of a potential increase in the rate.
RECOMMENDATIONS/ NEXT STEPS
Educating and engaging your residents around the City’s budget, service needs and local priorities is vital to maintaining measure viability. LEG/FM3 re commend the City educate and engage the community during the upcoming budget process to collect more input and keep the public updated on your challenges.
As in past collaborations with the City, LEG’s recommended Public Information toolkit will include the following:
▪ Informational Speakers’ Bureau : City staff should visit those organizations in -person or through their scheduled online meetings to solicit feedback and provide information , which was highly effective and well-received by the community in past collaborations.
▪ Opinion Leader Communications and Outreach : Communicating the results of this survey provides the City with an opportunity to engage opinion leaders and expand the conversation with high-level leaders.
▪ Website/Newsletters/Social Media: Facts and information about the City’s financial condition should be placed on the City’s website, Facebook Page and Twitter feed. LEG will be recommending an E -Update & Social Media Plan to engage the public, get more feedback, and provide information.
▪ Media Response & Earned Media: Any opportunity to respond to the media should be treated with high importance and an opportunity to share information with the community.
▪ City Newsletter: Producing and mailing printed City Newsletters are recommended to engage and inform the Community about City service needs and priorities. While the Speakers’ 267
Bureau and Opinion Leader letters are extremely effective forms of communication, direct mail remains one essential component of a comprehensive, multi-disciplinary communications plan especially for seniors.
▪ Citizens Advisory Committee engagement: In LEG /FM3’s past collaborations with the City, the Her cules Citizens Advisory Committee has always been involved a s a highly credible community messenger, and we look forward to collaborating with the Committee again.
THUMBNAIL TIMELINE IF PREPARING FOR A NOVEMBER 2022 PLACEMENT
LEG/FM3 are looking forward to finalizing a graph presentation of Community Survey highlights for presentation to the City Council on February 8th. The following is a thumbnail outline of the timetable and key activities if planning for a November 2022 measure:
February – May: Update City Council, authorize continued project planning Engage Influentials and Community at Large
Solicit additional community feedback, report back to public Utilize budget consideration/adoption engagement and
messaging opportunities
June – July: Prepare ballot measure documents
Place measure on Municipal Election ballot
August – November: Submit ballot measure documents to County ROV Develop Municipal Election Communications Toolkit
Provide Municipal Election/Measure Information to public Thank the community for participating
November – December: Evaluate 2022 activities
If desired, commence assessment, planning and engagement for charter/RPTT activities
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City of Hercules
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
For the Fiscal Year Ended June 30, Compared to
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 FY 2011 % Function
General Government 12.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 11.00 (1.00) -8% Public Safety 29.00 26.00 23.00 24.00 24.00 24.00 24.00 26.00 26.00 28.00 (1.00) -3% Public Works
(a) 14.00 18.00 14.00 13.00 11.00 11.00 11.00 11.00 11.00 11.00 (3.00) -21% Community Development 5.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 (3.00) -60% Parks and Recreation 9.00 6.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 (5.00) -56%
69.00 62.00 53.00 53.00 51.00 51.00 51.00 53.00 53.00 56.00 (13.00) -19% Housing Authority (b) 3.00 3.00
Total 72.00 65.00 53.00 53.00 51.00 51.00 51.00 53.00 53.00 56.00 (13.00) NOTE:
(a) Public Works includes Wastewater and Solid Waste
(b) The Housing Authority became a separate legal entity during Fiscal Year 2011-12 Source: City of Hercules Operating Budget
0 10
20 30
40 50
60 70
80 FTE's
General Government Public Safety Public Works (a)
Community Development Parks and Recreation Housing Authority (b) 269
1 REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 25, 2020
TO: Mayor Esquivias and Members of the City Council
SUBMITTED BY: J. Patrick Tang, City Attorney
David Biggs, City Manager
SUBJECT: Process for Becoming a Charter City for the Purpose of Increasing the Real Property Transfer Tax (RPTT)
RECOMMENDED ACTION:
Receive report, discuss, and provide direction, if any.
COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:
There was no commission or subcommittee review of this item.
FISCAL IMPACT: There is no direct cost associated with the preparation of this report. Future steps of considering a ballot measure, including possible polling, preparing a proposed charter , undertaking the process to place the measure on the ballot, and conducting an election, would all incur costs. The exact amount of the impact would depend on what type of community engagement the Council would want.
Any process would involve staff and city attorney time. If a ballot measure were approved by the voters, Hercules would see an increase in RPTT revenue. The amount of increase would depend upon the RPTT rate set by the City; various estimates are provided in the Revenue Rate Comparison Table, see page 4.
However, it is uncertain whether voters would approve an increased RPTT.
BACKGROUND: At its January 14, 2020 regular meeting, the City Council directed the city attorney and staff to prepare a report for Council information regarding the process for becoming a charter city, for the limited purpose of setting real property transfer tax (RPTT) rates beyond the rate set by state law for general law cities.
DISCUSSION: Cities in California are organized as either general law cities or charter cities. The City of Hercules is a general law city. Cities are general law cities by default, but may go through a process to 270
2 become charter cities. A general law city has the authority to exercise its police powers to act locally, but its acts must be consistent with all general laws adopted by the State Legislature. This is why general law cities are “locked in” to receiving a real property transfer tax (RPTT) rate of $0.55 per $1,000 as set by the state. In contrast, a charter city may use its “home rule” authority to adopt local laws regarding “municipal affairs” that vary from state laws, so that a charter city has more control over local affairs than a general law city. A significant authority possessed by charter cities is the authority, with voter approval, to impose a higher RPTT rate. Charter law cities are not subject to state law regarding RPTT because the setting of RPTT rates is deemed a municipal affair. As a result, charter cities may impose RPTT at a rate higher than the maximum statutory rate otherwise received by general law cities. A list of al l California general law and charter cities, along with their respective RPTT rates, is provided as Attachment 1.
There are other reasons why a general law city may seek to become a charter city other than to set RPTT rates, including but not limited to changing the number of elected officials, establishing district elections, and providing for a strong mayor form of government (see Attachment 2), but given Council’s direction to limit the discussion to becoming a charter city for the sole purpose of adjusting RPTT rates, other reasons for becoming a charter city are not discussed in this report. An example of the type of limiting language that can be included in a charter to restrict the scope of local authority to setting the RPTT rate is provided below:
“The City may exercise the powers of a charter city to generate revenue by imposing a tax on the conveyance of real property, based upon the price paid for the real property ("real property transfer tax"). Any real property transfer tax imposed by the City shall be in addition to any similar tax authorized by the general laws of the State of California. Except as provided in this Charter, the powers of the City shall otherwise be constrained by, subject to, and governed by the general laws of the State as now and hereafter existing relating to cities organized under such general laws.“
It should be noted that , while other governance changes may not be in consideration as part of the approval of an initial charter, charter city status does expand the po ssible universe of both council and voter-initiated changes to governance and other matters via the electoral process that may otherwise not be possible as a General Law City. However, once a charter is adopted by the voters, it can only be changed by an affirmative vote of a majority of the electorate. And, once a RPTT rate has been approved by the voters, as a general tax it cannot be changed without receiving the affirmative vote of a majority of the electorate. In other words, the C ouncil could not change the charter without voter approval , nor could the Council change the RPTT rate without voter approval.
What is RPTT? The real property transfer tax (RPTT) applies to transactions involving the sale and purchase of all improved property with homes or commercial structures , and all unimproved land with no structures. The tax is paid when ownership transfers from the seller of the property to the purchas er of the property. Generally, the tax can be paid by either the seller or the purchaser, or the tax can be shared between the seller and the purchaser. It is a one-time expense related to the transfer of ownership, and is unrelated to the annual payment of property taxes. Currently under the California Revenue and Taxation Code, property in general law ci ties when it is sold is assessed a county transfer tax of $1.10 for every $1,000 of the real estate’s sales price. Counties then split that tax with the cities, so that the city where 271
3 the sale took place receives $0.55 for every $1,000 of sale price. Hercules thus currently receives an RPTT of the maximum allowed for general law cities of $0.55 per $1,000 of value.
Recently a number of general law cities have utilized the legal process to become charter cities for t he limited purpose of setting RPTT rates beyond the baseline rate of $0.55 per $1,000 established for general law cities.1 Under State law and the California Constitution, cities cannot impose, increase or extend any tax unless the tax is approved by the voters. Accordingly, a measure to become a charter city, and an increase to the RPTT, would require voter approval by a simple majority of the electorate.
How much does the property buyer pay? Property owners/sellers in general law cities in California pay a RPTT of $1.10 p er thousand dollars of sales price or $275 on a $250,000 property sale; by way of example, that means $550 on a $500,000 property sale; $825 on a $750,000 property sale, and; $1,100 on a $1,000,000 property sale. The RPTT amounts above are split between the county and the city, so that the city receives half. Should the City become a Charter City and enact a higher RPTT, the full $1.10 per thousand provided for under State law would go to the County, and the City rate authorized under the Charter would be i n addition to the base $1.10 per thousand that the C ounty would receive. The local increase to the RPTT is essentially a local tax measure; u nlike the property tax where the City gets back less than 4 cents per dollar, all of the additional RPTT amount would flow to the City, with none of it going to the State and the County receiving only the statutory allocation of $1.10 per $1,000.
The table below shows the RPTT paid under the General Law city provisions now in effect , and four additional illustrations on what a possible Charter City rate would impose. As you can see, under the charter city examples, the amount that goes to the County remains the same, regardless of the RPTT rate set by the City:
TAX RATE COMPARISON TABLE
Gen. Law RPTT
$1.10/1,000
Charter RPTT
$4/1,000
Charter RPTT
$8/1,000
Charter RPTT
$12/1,000
Charter RPTT
$16/1,000
Property Sale
Price
City/County City/County City/County City/County City/County $250,000 137.50/137.50 1,000/275 2,000/275 3,000/275 4,000/275 $500,000 275/275 2,000/550 4,000/550 6,000/550 8,000/550 $750,000 412.50/412.50 3,000/825 6,000/825 9,000/825 12,000/825 $1,000,000 550/550 4,000/1,100 8,000/1,100 12,000/1,100 16,000/1,100
1 Six cities attempted to increase their RPTT rates at the 2018 general election. Voters in five of the six cities approved the RPTT increases. Two of the cities, El Cerrito and Union City, were general law cities that sought to become charter cities for that limited purpose; El Cerrito voters approved becoming a charter city and increasing their RPTT to $12.00 per thousand, while Union City voters did not approve a similar measure . Emeryville became a charter city to increase RPTT rates in 2014.
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4 By way of comparison, a Hercules resident who buys a $25,000 automobile in Contra Costa County pays $2,187.50 in sales tax, based on the current 8.75% tax rate, of which the City receives $375.00. How much additional revenue would the city receive if the city adopted an increase to the RPTT? The amount of additional revenue would depend on what RPTT rate was selected. Below is a chart showing the annual revenue that would be received using the average annual RPTT amounts received by Hercules for Fiscal Years 2014-2019 ($115,248), and based on a range of RPTT rates:
REVENUE RATE COMPARISON TABLE
$0.55/1,000 $4/1,000 $8/1,000 $12/1,000 $16/1000
City County City County City County City County City County $115K $115K $838K $230K $1.6M $230K $2.5M $230K $3.3M $230K
What is the process for becoming a charter city?
Becoming a charter city requires approval by a simple majority of voters. Prior to approving submission of the charter to the voters, the City Council must hold at least two public hearings on the proposal of the charter and the content of the charter, and notice of those hearings must be published at least twenty one (21) calendar days before the date of each hearing. The second public hearing must be held at least thirty (30) days after the first hearing, and at l east one of the hearings must be held outside of normal business hours. The City Council may not vote on submission of the charter to the voters until twenty one (21) days after the second public hearing. A charter proposal can only be voted on at a regula r general election, absent a declaration of a fiscal emergency. In order for the City Council to place a charter measure on the ballot for November 3, 2020, the City would need to hold the first formal public hearing on a proposed charter at the first meeting in May 2020.
An increased RP TT is not itself established by the charter. Rather, the RP TT would be established by a separate ordinance submitted simultaneously to the voters. The ordinance would include the RP TT rate along with other administrative rules. Since the draft charter would prohibit the City from exercising any of the powers of a charter city except for the enactment of an increased RPTT, becoming a charter city and the transfer tax are inextricably linked.
It is common for cities looking to adopt a charter to launch a community engagement process to inform the public about what becoming a charter city would entail and receive feedback prior to placing a charter measure on the ballot. Because becoming a charter city is a complicated issue that can easily cause confusion, it is strongly recommended that if the Council decided to try and become a charter city that communications professionals be retained to help explain to the public what becoming a charter city entails.
If the Council wished to explore this further, it would want to make some preliminary decisions about the RPTT, such as the proposed rate, before beginning the community engagement process. In addition, the need to renew the expiring existing Utility Users base rate and ove rride by no later than 2024 or 2025, should be considered. These and other factors could also be assessed by undertaking polling to determine 273
5 the voter’s reactions to a number of possible options. This would normally be one of the first steps before deciding to place a matter on the ballot. The City last undertook polling in 2015 prior to opting to place a measure on the ballot to renew the sales tax override, and the measure was crafted based on the information garnered from professional polling.
Ultimately, the Council would have the ability to make changes and adjustments prior to submitting the measure to the voters , based on feedback received during the engagement process and upon further review.
Possible options for community engagement could include all or some of the following:
• Conduct polling to gauge community interest before placing the measure on the ballot. This could include both scientific and unscientific polling; or • Appoint a community committee to make recommendations regar ding the draft charter and RPTT;
• Conduct official town hall meetings to provide information about the charter and RPTT to the community, as well as allow an opportunity for the public to ask questions and the Council to receive feedback;
• Mail information including FAQs to residents about becoming a charter city.
The above list of community engagement options is non-exhaustive and is intended only as an example of possible types of outreach. The more extensive the outreach, the more community feedback can be expected, but there would be a greater increase in staff time and costs to implement.
SUMMARY CONCLUSION: Becoming a charter city is an option that a number of general law cities have pursued, for varying reasons. Most recently, cities that have plac ed charter city measures on the ballot have done so primarily to allow local control over the setting of RPTT rates, and have opted to expressly exclude additional powers that are otherwise available to charter cities.
ATTACHMENTS:
1. RPTT Rates Statewide
2. League of California Cities Summary
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California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
ALAMEDA COUNTY $ 1.10 $ 1.10
ALAMEDA Chartered $ 12.00 $ 1.10 $ 13.10
ALBANY Chartered $ 11.50 $ 1.10 $ 12.60
BERKELEY Chartered
1.5% for up to
$1.5M value $ 1.10 $ 16.10
2.5% properties
over $2.5M $ 1.10 $ 26.10
DUBLIN General Law $ 0.55 $ 0.55 $ 1.10
EMERYVILLE Chartered $ 12.00 $ 1.10 $ 13.10
FREMONT General Law $ 0.55 $ 0.55 $ 1.10
HAYWARD Chartered $ 8.50 $ 1.10 $ 9.60
LIVERMORE General Law $ 0.55 $ 0.55 $ 1.10
NEWARK General Law $ 0.55 $ 0.55 $ 1.10
OAKLAND Chartered 1% up to $300k $ 1.10 $ 11.10
1.5% $300k -$2M $ 1.10 $ 16.10
1.75% $2M–$5M $ 1.10 $ 18.60
2.5% over $5M $ 1.10 $ 26.10
PIEDMONT Chartered $ 13.00 $ 1.10 $ 14.10
PL EASANTON General Law $ 0.55 $ 0.55 $ 1.10
SAN LEANDRO Chartered $ 6.00 $ 1.10 $ 7.10
UNION CITY General Law $ 0.55 $ 0.55 $ 1.10
ALPINE COUNTY $ 1.10 $ 1.10
AMADOR COUNTY $ 1.10 $ 1.10
AMADOR General Law $ 0.55 $ 0.55 $ 1.10
IONE General Law $ 0.55 $ 0.55 $ 1.10
JACKSON General Law $ 0.55 $ 0.55 $ 1.10
PLYMOUTH General Law $ 0.55 $ 0.55 $ 1.10
SUTTER CREEK General Law $ 0.55 $ 0.55 $ 1.10
BUTTE COUNTY $ 1.10 $ 1.10
BIGGS General Law $ 0.55 $ 0.55 $ 1.10
CHICO Chartered $ 0.55 $ 0.55 $ 1.10
GRIDLEY General Law $ 0.55 $ 0.55 $ 1.10
OROVILLE Chartered $ 0.55 $ 0.55 $ 1.10
PARADISE General Law $ 0.55 $ 0.55 $ 1.10
CALAVERAS COUNTY $ 1.10 $ 1.10
ANGELS CAMP General Law $ 0.55 $ 0.55 $ 1.10
COLUSA COUNTY $ 1.10 $ 1.10
COLUSA General Law $ 0.55 $ 0.55 $ 1.10
WILLIAMS General Law $ 0.55 $ 0.55 $ 1.10
CONTRA COSTA COUNTY $ 1.10 $ 1.10
ANTIOCH General Law $ 0.55 $ 0.55 $ 1.10
BRENTWOOD General Law $ 0.55 $ 0.55 $ 1.10
CLAYTON General Law $ 0.55 $ 0.55 $ 1.10
CONCORD General Law $ 0.55 $ 0.55 $ 1.10
DANVILLE General Law $ 0.55 $ 0.55 $ 1.10
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California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
EL CERRITO Chartered $ 12.00 $ 1.10 $ 13.10
HERCULES General Law $ 0.55 $ 0.55 $ 1.10
LAFAYETTE General Law $ 0.55 $ 0.55 $ 1.10
MARTINEZ General Law $ 0.55 $ 0.55 $ 1.10
MORAGA General Law $ 0.55 $ 0.55 $ 1.10
OAKLEY General Law $ 0.55 $ 0.55 $ 1.10
ORINDA General Law $ 0.55 $ 0.55 $ 1.10
PINOLE General Law $ 0.55 $ 0.55 $ 1.10
PITTSBURG General Law $ 0.55 $ 0.55 $ 1.10
PL EASANT HILL General Law $ 0.55 $ 0.55 $ 1.10
RICHMOND Chartered 0.7% under $1M $ 1.10 $ 8.10
1.25% $1M-$3M $ 1.10 $ 13.60
2.5% $3M-$10M $ 1.10 $ 26.10
3% over $10m $ 1.10 $ 31.10
SAN PABLO General Law $ 0.55 $ 0.55 $ 1.10
SAN RAMON Chartered $ 0.55 $ 0.55 $ 1.10
WALNUT CREEK General Law $ 0.55 $ 0.55 $ 1.10
DEL NORTE COUNTY $ 1.10 $ 1.10
CRESCENT CITY General Law $ 0.55 $ 0.55 $ 1.10
EL DORADO COUNTY $ 1.10 $ 1.10
PLACERVILLE General Law $ 0.55 $ 0.55 $ 1.10
SOUTH L AKE TAHOE General Law $ 0.55 $ 0.55 $ 1.10
FRESNO COUNTY $ 1.10 $ 1.10
CLOVIS General Law $ 0.55 $ 0.55 $ 1.10
COALINGA General Law $ 0.55 $ 0.55 $ 1.10
FIREBAUGH General Law $ 0.55 $ 0.55 $ 1.10
FOWLER General Law $ 0.55 $ 0.55 $ 1.10
FRESNO Chartered $ 0.55 $ 0.55 $ 1.10
HURON General Law $ 0.55 $ 0.55 $ 1.10
KERMAN General Law $ 0.55 $ 0.55 $ 1.10
KINGSBURG Chartered $ 0.55 $ 0.55 $ 1.10
MENDOTA General Law $ 0.55 $ 0.55 $ 1.10
ORANGE COVE General Law $ 0.55 $ 0.55 $ 1.10
PARLIER General Law $ 0.55 $ 0.55 $ 1.10
REEDLEY General Law $ 0.55 $ 0.55 $ 1.10
SANGER General Law $ 0.55 $ 0.55 $ 1.10
SAN JOAQUIN General Law $ 0.55 $ 0.55 $ 1.10
SELMA General Law $ 0.55 $ 0.55 $ 1.10
GLENN COUNTY $ 1.10 $ 1.10
ORLAND General Law $ 0.55 $ 0.55 $ 1.10
WILLOWS General Law $ 0.55 $ 0.55 $ 1.10
HUMBOLDT COUNTY $ 1.10 $ 1.10
ARCATA General Law $ 0.55 $ 0.55 $ 1.10
BLUE LAKE General Law $ 0.55 $ 0.55 $ 1.10
EUREKA Chartered $ 0.55 $ 0.55 $ 1.10
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California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
FERNDALE General Law $ 0.55 $ 0.55 $ 1.10
FORTUNA Chartered $ 0.55 $ 0.55 $ 1.10
RIO DELL General Law $ 0.55 $ 0.55 $ 1.10
TRINIDAD General Law $ 0.55 $ 0.55 $ 1.10
IMPERIAL COUNTY $ 1.10 $ 1.10
BRAWLEY General Law $ 0.55 $ 0.55 $ 1.10
CALEXICO General Law $ 0.55 $ 0.55 $ 1.10
CALIPATRIA General Law $ 0.55 $ 0.55 $ 1.10
EL CENTRO Chartered $ 0.55 $ 0.55 $ 1.10
HOLTVILLE General Law $ 0.55 $ 0.55 $ 1.10
IMPERIAL General Law $ 0.55 $ 0.55 $ 1.10
WESTMORLAND General Law $ 0.55 $ 0.55 $ 1.10
INYO COUNT Y $ 1.10 $ 1.10
BISHOP General Law $ 0.55 $ 0.55 $ 1.10
KERN COUNTY $ 1.10 $ 1.10
ARVIN General Law $ 0.55 $ 0.55 $ 1.10
BAKERSFIELD Chartered $ 0.55 $ 0.55 $ 1.10
CALIFORNIA CITY General Law $ 0.55 $ 0.55 $ 1.10
DELANO General Law $ 0.55 $ 0.55 $ 1.10
MARICOPA General Law $ 0.55 $ 0.55 $ 1.10
MCFARLAND General Law $ 0.55 $ 0.55 $ 1.10
RIDGECREST General Law $ 0.55 $ 0.55 $ 1.10
SHAFTER Chartered $ 0.55 $ 0.55 $ 1.10
TAFT General Law $ 0.55 $ 0.55 $ 1.10
TEHACHAPI General Law $ 0.55 $ 0.55 $ 1.10
WASCO General Law $ 0.55 $ 0.55 $ 1.10
KINGS COUNTY $ 1.10 $ 1.10
AVENAL General Law $ 0.55 $ 0.55 $ 1.10
CORCORAN General Law $ 0.55 $ 0.55 $ 1.10
HANFORD General Law $ 0.55 $ 0.55 $ 1.10
LEMOORE Chartered $ 0.55 $ 0.55 $ 1.10
LAKE COUNTY $ 1.10 $ 1.10
CLEARLAKE General Law $ 0.55 $ 0.55 $ 1.10
LAKEPORT General Law $ 0.55 $ 0.55 $ 1.10
LASSEN COUNT Y $ 1.10 $ 1.10
SUSANVILLE General Law $ 0.55 $ 0.55 $ 1.10
LOS ANGELES COUNTY $ 1.10 $ 1.10
AGOURA HILLS General Law $ 0.55 $ 0.55 $ 1.10
ALHAMBRA Chartered $ 0.55 $ 0.55 $ 1.10
ARCADIA Chartered $ 0.55 $ 0.55 $ 1.10
ARTESIA General Law $ 0.55 $ 0.55 $ 1.10
AVALON General Law $ 0.55 $ 0.55 $ 1.10
AZUSA General Law $ 0.55 $ 0.55 $ 1.10
BALDWIN PARK General Law $ 0.55 $ 0.55 $ 1.10
BELL Chartered $ 0.55 $ 0.55 $ 1.10
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California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
BELLFLOWER General Law $ 0.55 $ 0.55 $ 1.10
BELL GARDENS General Law $ 0.55 $ 0.55 $ 1.10
BEVERLY HILLS General Law $ 0.55 $ 0.55 $ 1.10
BRADBURY General Law $ 0.55 $ 0.55 $ 1.10
BURBANK Chartered $ 0.55 $ 0.55 $ 1.10
CALABASAS General Law $ 0.55 $ 0.55 $ 1.10
CARSON General Law $ 0.55 $ 0.55 $ 1.10
CERRITOS Chartered $ 0.55 $ 0.55 $ 1.10
CLAREMONT General Law $ 0.55 $ 0.55 $ 1.10
COMMERCE General Law $ 0.55 $ 0.55 $ 1.10
COMPTON Chartered $ 0.55 $ 0.55 $ 1.10
COVINA General Law $ 0.55 $ 0.55 $ 1.10
CUDAHY General Law $ 0.55 $ 0.55 $ 1.10
CULVER CITY Chartered $ 4.50 $ 1.10 $ 5.60
DIAMOND BAR General Law $ 0.55 $ 0.55 $ 1.10
DOWNEY Chartered $ 0.55 $ 0.55 $ 1.10
DUARTE General Law $ 0.55 $ 0.55 $ 1.10
EL MONTE General Law $ 0.55 $ 0.55 $ 1.10
EL SEGUNDO General Law $ 0.55 $ 0.55 $ 1.10
GARDENA General Law $ 0.55 $ 0.55 $ 1.10
GLENDALE Chartered $ 0.55 $ 0.55 $ 1.10
GLENDORA General Law $ 0.55 $ 0.55 $ 1.10
HAWAIIAN GARDENS General Law $ 0.55 $ 0.55 $ 1.10
HAWTHORNE General Law $ 0.55 $ 0.55 $ 1.10
HERMOSA BEACH General Law $ 0.55 $ 0.55 $ 1.10
HIDDEN HILLS General Law $ 0.55 $ 0.55 $ 1.10
HUNTINGTON PARK General Law $ 0.55 $ 0.55 $ 1.10
INDUSTRY Chartered $ 0.55 $ 0.55 $ 1.10
INGLEWOOD Chartered $ 0.55 $ 0.55 $ 1.10
IRWINDALE Chartered $ 0.55 $ 0.55 $ 1.10
LA CANADA FLINTRIDGE General Law $ 0.55 $ 0.55 $ 1.10
LA HABRA HEIGHTS General Law $ 0.55 $ 0.55 $ 1.10
LAKEWOOD General Law $ 0.55 $ 0.55 $ 1.10
LA MIRADA General Law $ 0.55 $ 0.55 $ 1.10
LANCASTER Chartered $ 0.55 $ 0.55 $ 1.10
LA PUENTE General Law $ 0.55 $ 0.55 $ 1.10
LA VERNE General Law $ 0.55 $ 0.55 $ 1.10
LAWNDALE General Law $ 0.55 $ 0.55 $ 1.10
LOMITA General Law $ 0.55 $ 0.55 $ 1.10
LONG BEACH Chartered $ 0.55 $ 0.55 $ 1.10
LOS ANGELES Chartered $ 4.50 $ 1.10 $ 5.60
LYNWOOD General Law $ 0.55 $ 0.55 $ 1.10
MALIBU General Law $ 0.55 $ 0.55 $ 1.10
MANHATTAN BEACH General Law $ 0.55 $ 0.55 $ 1.10
MAYWOOD General Law $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 4 of 16 278
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
MONROVIA General Law $ 0.55 $ 0.55 $ 1.10
MONT EBELLO General Law $ 0.55 $ 0.55 $ 1.10
MONTEREY PARK General Law $ 0.55 $ 0.55 $ 1.10
NORWALK General Law $ 0.55 $ 0.55 $ 1.10
PALMDALE Chartered $ 0.55 $ 0.55 $ 1.10
PALOS VERDES ESTATES General Law $ 0.55 $ 0.55 $ 1.10
PARAMOUNT General Law $ 0.55 $ 0.55 $ 1.10
PASADENA Chartered $ 0.55 $ 0.55 $ 1.10
PICO RIVERA General Law $ 0.55 $ 0.55 $ 1.10
POMONA Chartered $ 2.20 $ 1.10 $ 3.30
RANCHO PALOS VERDES General Law $ 0.55 $ 0.55 $ 1.10
REDONDO BEACH Chartered $ 2.20 $ 1.10 $ 3.30
ROLLING HILLS General Law $ 0.55 $ 0.55 $ 1.10
ROLLING HILLS ESTATES General Law $ 0.55 $ 0.55 $ 1.10
ROSEMEAD General Law $ 0.55 $ 0.55 $ 1.10
SAN DIMAS General Law $ 0.55 $ 0.55 $ 1.10
SAN FERNANDO General Law $ 0.55 $ 0.55 $ 1.10
SAN GABRIEL General Law $ 0.55 $ 0.55 $ 1.10
SAN MARINO General Law $ 0.55 $ 0.55 $ 1.10
SANTA CLARITA General Law $ 0.55 $ 0.55 $ 1.10
SANTA FE SPRINGS General Law $ 0.55 $ 0.55 $ 1.10
SANTA MONICA Chartered $ 3.00 $ 1.10 $ 4.10
SIERRA MADRE General Law $ 0.55 $ 0.55 $ 1.10
SIGNAL HILL Chartered $ 0.55 $ 0.55 $ 1.10
SOUTH EL MONTE General Law $ 0.55 $ 0.55 $ 1.10
SOUTH GATE General Law $ 0.55 $ 0.55 $ 1.10
SOUTH PASADENA General Law $ 0.55 $ 0.55 $ 1.10
TEMPLE CITY Chartered $ 0.55 $ 0.55 $ 1.10
TORRANCE Chartered $ 0.55 $ 0.55 $ 1.10
VERNON Chartered $ 0.55 $ 0.55 $ 1.10
WALNUT General Law $ 0.55 $ 0.55 $ 1.10
WEST COVINA General Law $ 0.55 $ 0.55 $ 1.10
WEST HOLLYWOOD General Law $ 0.55 $ 0.55 $ 1.10
WESTL AKE VILLAGE General Law $ 0.55 $ 0.55 $ 1.10
WHITTIER Chartered $ 0.55 $ 0.55 $ 1.10
MADERA COUNTY $ 1.10 $ 1.10
CHOWCHILLA General Law $ 0.55 $ 0.55 $ 1.10
MADERA General Law $ 0.55 $ 0.55 $ 1.10
MARIN COUNTY $ 1.10 $ 1.10
BELVEDERE General Law $ 0.55 $ 0.55 $ 1.10
CORTE MADERA General Law $ 0.55 $ 0.55 $ 1.10
FAIRFAX General Law $ 0.55 $ 0.55 $ 1.10
LARKSPUR General Law $ 0.55 $ 0.55 $ 1.10
MILL VALLEY General Law $ 0.55 $ 0.55 $ 1.10
NOVATO General Law $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 5 of 16 279
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
ROSS General Law $ 0.55 $ 0.55 $ 1.10
SAN ANSELMO General Law $ 0.55 $ 0.55 $ 1.10
SAN RAFAEL Chartered $ 2.00 $ 1.10 $ 3.10
SAUSALITO General Law $ 0.55 $ 0.55 $ 1.10
TIBURON General Law $ 0.55 $ 0.55 $ 1.10
MARIPOSA COUNTY $ 1.10 $ 1.10
MENDOCINO COUNTY $ 1.10 $ 1.10
FORT BRAGG General Law $ 0.55 $ 0.55 $ 1.10
POINT ARENA General Law $ 0.55 $ 0.55 $ 1.10
UKIAH General Law $ 0.55 $ 0.55 $ 1.10
WILLITS General Law $ 0.55 $ 0.55 $ 1.10
MERCED COUNTY $ 1.10 $ 1.10
ATWATER General Law $ 0.55 $ 0.55 $ 1.10
DOS PALOS General Law $ 0.55 $ 0.55 $ 1.10
GUSTINE General Law $ 0.55 $ 0.55 $ 1.10
LIVINGSTON General Law $ 0.55 $ 0.55 $ 1.10
LOS BANOS General Law $ 0.55 $ 0.55 $ 1.10
MERCED Chartered $ 0.55 $ 0.55 $ 1.10
MODOC COUNTY $ 1.10 $ 1.10
ALTURAS General Law $ 0.55 $ 0.55 $ 1.10
MONO COUNTY $ 1.10 $ 1.10
MAMMOTH L AKES General Law $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 6 of 16 280
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
MONTEREY COUNTY $ 1.10 $ 1.10
CARMEL-BY-THE-SEA General Law $ 0.55 $ 0.55 $ 1.10
DEL REY OAKS General Law $ 0.55 $ 0.55 $ 1.10
GONZALES General Law $ 0.55 $ 0.55 $ 1.10
GREENFIELD General Law $ 0.55 $ 0.55 $ 1.10
KING CITY Chartered $ 0.55 $ 0.55 $ 1.10
MARINA Chartered $ 0.55 $ 0.55 $ 1.10
MONTEREY Chartered $ 0.55 $ 0.55 $ 1.10
PACIFIC GROVE Chartered $ 0.55 $ 0.55 $ 1.10
SALINAS Chartered $ 0.55 $ 0.55 $ 1.10
SAND CITY Chartered $ 0.55 $ 0.55 $ 1.10
SEASIDE General Law $ 0.55 $ 0.55 $ 1.10
SOLEDAD General Law $ 0.55 $ 0.55 $ 1.10
NAPA COUNTY $ 1.10 $ 1.10
AMERICAN CANYON General Law $ 0.55 $ 0.55 $ 1.10
CALISTOGA General Law $ 0.55 $ 0.55 $ 1.10
NAPA Chartered $ 0.55 $ 0.55 $ 1.10
SAINT HELENA General Law $ 0.55 $ 0.55 $ 1.10
YOUNTVILLE General Law $ 0.55 $ 0.55 $ 1.10
NEVADA COUNTY $ 1.10 $ 1.10
GRASS VALLEY Chartered $ 0.55 $ 0.55 $ 1.10
NEVADA CITY General Law $ 0.55 $ 0.55 $ 1.10
TRUCKEE Chartered $ 0.55 $ 0.55 $ 1.10
ORANGE COUNTY $ 1.10 $ 1.10
ALISO VIEJO General Law $ 0.55 $ 0.55 $ 1.10
ANAHEIM Chartered $ 0.55 $ 0.55 $ 1.10
BREA General Law $ 0.55 $ 0.55 $ 1.10
BUENA PARK Chartered $ 0.55 $ 0.55 $ 1.10
COSTA MESA General Law $ 0.55 $ 0.55 $ 1.10
CYPRESS Chartered $ 0.55 $ 0.55 $ 1.10
DANA POINT General Law $ 0.55 $ 0.55 $ 1.10
FOUNTAIN VALLEY General Law $ 0.55 $ 0.55 $ 1.10
FULLERTON General Law $ 0.55 $ 0.55 $ 1.10
GARDEN GROVE General Law $ 0.55 $ 0.55 $ 1.10
HUNTINGTON BEACH Chartered $ 0.55 $ 0.55 $ 1.10
IRVINE Chartered $ 0.55 $ 0.55 $ 1.10
LAGUNA BEACH General Law $ 0.55 $ 0.55 $ 1.10
LAGUNA HILLS General Law $ 0.55 $ 0.55 $ 1.10
LAGUNA NIGUEL General Law $ 0.55 $ 0.55 $ 1.10
LA HABRA General Law $ 0.55 $ 0.55 $ 1.10
LAKE FOREST General Law $ 0.55 $ 0.55 $ 1.10
LA PALMA General Law $ 0.55 $ 0.55 $ 1.10
LOS ALAMITOS Chartered $ 0.55 $ 0.55 $ 1.10
MISSION VIEJO General Law $ 0.55 $ 0.55 $ 1.10
NEWPORT BEACH Chartered $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 7 of 16 281
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
ORANGE General Law $ 0.55 $ 0.55 $ 1.10
PLACENTIA Chartered $ 0.55 $ 0.55 $ 1.10
RANCHO SANTA MARGARITA General Law $ 0.55 $ 0.55 $ 1.10 SAN CLEMENTE General Law $ 0.55 $ 0.55 $ 1.10
SAN JUAN CAPISTRANO General Law $ 0.55 $ 0.55 $ 1.10
SANTA ANA Chartered $ 0.55 $ 0.55 $ 1.10
SEAL BEACH Chartered $ 0.55 $ 0.55 $ 1.10
STANTON General Law $ 0.55 $ 0.55 $ 1.10
TUSTIN General Law $ 0.55 $ 0.55 $ 1.10
VILLA PARK General Law $ 0.55 $ 0.55 $ 1.10
WESTMINSTER General Law $ 0.55 $ 0.55 $ 1.10
YORBA LINDA General Law $ 0.55 $ 0.55 $ 1.10
PLACER COUNTY $ 1.10 $ 1.10
AUBURN General Law $ 0.55 $ 0.55 $ 1.10
COLFAX General Law $ 0.55 $ 0.55 $ 1.10
LINCOLN General Law $ 0.55 $ 0.55 $ 1.10
LOOMIS General Law $ 0.55 $ 0.55 $ 1.10
ROCKLIN General Law $ 0.55 $ 0.55 $ 1.10
ROSEVILLE Chartered $ 0.55 $ 0.55 $ 1.10
PLUMAS COUNTY $ 1.10 $ 1.10
PORTOLA General Law $ 0.55 $ 0.55 $ 1.10
RIVERSIDE COUNTY $ 1.10 $ 1.10
BANNING General Law $ 0.55 $ 0.55 $ 1.10
BEAUMONT General Law $ 0.55 $ 0.55 $ 1.10
BLYTHE General Law $ 0.55 $ 0.55 $ 1.10
CALIMESA General Law $ 0.55 $ 0.55 $ 1.10
CANYON LAKE General Law $ 0.55 $ 0.55 $ 1.10
CATHEDRAL CITY General Law $ 0.55 $ 0.55 $ 1.10
COACHELLA General Law $ 0.55 $ 0.55 $ 1.10
CORONA General Law $ 0.55 $ 0.55 $ 1.10
DESERT HOT SPRINGS Chartered $ 0.55 $ 0.55 $ 1.10
EASTVALE General Law $ 0.55 $ 0.55 $ 1.10
HEMET General Law $ 0.55 $ 0.55 $ 1.10
INDIAN WELLS Chartered $ 0.55 $ 0.55 $ 1.10
INDIO General Law $ 0.55 $ 0.55 $ 1.10
JURUPA VALLEY General Law $ 0.55 $ 0.55 $ 1.10
LAKE ELSINORE General Law $ 0.55 $ 0.55 $ 1.10
LA QUINTA Chartered $ 0.55 $ 0.55 $ 1.10
MENIFEE General Law $ 0.55 $ 0.55 $ 1.10
MORENO VALLEY General Law $ 0.55 $ 0.55 $ 1.10
MURRIETA General Law $ 0.55 $ 0.55 $ 1.10
NORCO Chartered $ 0.55 $ 0.55 $ 1.10
PALM DESERT Chartered $ 0.55 $ 0.55 $ 1.10
PALM SPRINGS Chartered $ 0.55 $ 0.55 $ 1.10
PERRIS General Law $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 8 of 16 282
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
RANCHO MIRAGE Chartered $ 0.55 $ 0.55 $ 1.10
RIVERSIDE Chartered $ 1.10 $ 1.10 $ 2.20
SAN JACINTO General Law $ 0.55 $ 0.55 $ 1.10
TEMECULA General Law $ 0.55 $ 0.55 $ 1.10
WILDOMAR General Law $ 0.55 $ 0.55 $ 1.10
SACRAMENTO COUNTY $ 1.10 $ 1.10
CITRUS HEIGHTS General Law $ 0.55 $ 0.55 $ 1.10
ELK GROVE General Law $ 0.55 $ 0.55 $ 1.10
FOLSOM Chartered $ 0.55 $ 0.55 $ 1.10
GALT General Law $ 0.55 $ 0.55 $ 1.10
ISLETON General Law $ 0.55 $ 0.55 $ 1.10
RANCHO CORDOVA General Law $ 0.55 $ 0.55 $ 1.10
SACRAMENTO Chartered $ 2.75 $ 1.10 $ 3.85
SAN BENITO COUNTY $ 1.10 $ 1.10
HOLLISTER General Law $ 0.55 $ 0.55 $ 1.10
SAN JUAN BAUTISTA General Law $ 0.55 $ 0.55 $ 1.10
SAN BERNARDINO COUNTY $ 1.10 $ 1.10
ADELANTO Chartered $ 0.55 $ 0.55 $ 1.10
APPLE VALLEY General Law $ 0.55 $ 0.55 $ 1.10
BARSTOW General Law $ 0.55 $ 0.55 $ 1.10
BIG BEAR LAKE Chartered $ 0.55 $ 0.55 $ 1.10
CHINO General Law $ 0.55 $ 0.55 $ 1.10
CHINO HILLS General Law $ 0.55 $ 0.55 $ 1.10
COLTON General Law $ 0.55 $ 0.55 $ 1.10
FONTANA General Law $ 0.55 $ 0.55 $ 1.10
GRAND TERRACE General Law $ 0.55 $ 0.55 $ 1.10
HESPERIA General Law $ 0.55 $ 0.55 $ 1.10
HIGHLAND General Law $ 0.55 $ 0.55 $ 1.10
LOMA LINDA Chartered $ 0.55 $ 0.55 $ 1.10
MONTCLAIR General Law $ 0.55 $ 0.55 $ 1.10
NEEDLES Chartered $ 0.55 $ 0.55 $ 1.10
ONTARIO General Law $ 0.55 $ 0.55 $ 1.10
RANCHO CUCAMONGA General Law $ 0.55 $ 0.55 $ 1.10
REDLANDS General Law $ 0.55 $ 0.55 $ 1.10
RIALTO General Law $ 0.55 $ 0.55 $ 1.10
SAN BERNARDINO Chartered $ 0.55 $ 0.55 $ 1.10
TWENTYNINE PALMS General Law $ 0.55 $ 0.55 $ 1.10
LAGUNA WOODS General Law $ 0.55 $ 0.55 $ 1.10
UPLAND General Law $ 0.55 $ 0.55 $ 1.10
VICTORVILLE Chartered $ 0.55 $ 0.55 $ 1.10
YUCAIPA General Law $ 0.55 $ 0.55 $ 1.10
YUCCA VALLEY General Law $ 0.55 $ 0.55 $ 1.10
SAN DIEGO COUNTY $ 1.10 $ 1.10
CARLSBAD Chartered $ 0.55 $ 0.55 $ 1.10
CHULA VISTA Chartered $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 9 of 16 283
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
CORONADO General Law $ 0.55 $ 0.55 $ 1.10
DEL MAR Chartered $ 0.55 $ 0.55 $ 1.10
EL CAJON Chartered $ 0.55 $ 0.55 $ 1.10
ENCINITAS General Law $ 0.55 $ 0.55 $ 1.10
ESCONDIDO General Law $ 0.55 $ 0.55 $ 1.10
IMPERIAL BEACH General Law $ 0.55 $ 0.55 $ 1.10
LA MESA General Law $ 0.55 $ 0.55 $ 1.10
LEMON GROVE General Law $ 0.55 $ 0.55 $ 1.10
NATIONAL CITY General Law $ 0.55 $ 0.55 $ 1.10
OCEANSIDE Chartered $ 0.55 $ 0.55 $ 1.10
POWAY General Law $ 0.55 $ 0.55 $ 1.10
SAN DIEGO Chartered $ 0.55 $ 0.55 $ 1.10
SAN MARCOS Chartered $ 0.55 $ 0.55 $ 1.10
SANTEE Chartered $ 0.55 $ 0.55 $ 1.10
SOLANA BEACH General Law $ 0.55 $ 0.55 $ 1.10
VISTA Chartered $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 10 of 16 284
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
SAN FRANCISCO COUNTY
SAN FRANCISCO Chartered
SAN JOAQUIN COUNTY $ 1.10 $ 1.10
ESCALON General Law $ 0.55 $ 0.55 $ 1.10
LATHROP General Law $ 0.55 $ 0.55 $ 1.10
LODI General Law $ 0.55 $ 0.55 $ 1.10
MANTECA General Law $ 0.55 $ 0.55 $ 1.10
RIPON General Law $ 0.55 $ 0.55 $ 1.10
STOCKTON Chartered $ 0.55 $ 0.55 $ 1.10
TRACY General Law $ 0.55 $ 0.55 $ 1.10
SAN LUIS OBISPO COUNTY $ 1.10 $ 1.10
ARROYO GRANDE General Law $ 0.55 $ 0.55 $ 1.10
ATASCADERO General Law $ 0.55 $ 0.55 $ 1.10
EL PASO DE ROBLES General Law $ 0.55 $ 0.55 $ 1.10
GROVER BEACH General Law $ 0.55 $ 0.55 $ 1.10
MORRO BAY General Law $ 0.55 $ 0.55 $ 1.10
PISMO BEACH General Law $ 0.55 $ 0.55 $ 1.10
SAN LUIS OBISPO Chartered $ 0.55 $ 0.55 $ 1.10
SAN MATEO COUNTY $ 1.10 $ 1.10
ATHERTON General Law $ 0.55 $ 0.55 $ 1.10
BELMONT General Law $ 0.55 $ 0.55 $ 1.10
BRISBANE General Law $ 0.55 $ 0.55 $ 1.10
BURLINGAME General Law $ 0.55 $ 0.55 $ 1.10
COLMA General Law $ 0.55 $ 0.55 $ 1.10
DALY CITY General Law $ 0.55 $ 0.55 $ 1.10
EAST PALO ALTO General Law $ 0.55 $ 0.55 $ 1.10
FOSTER CITY General Law $ 0.55 $ 0.55 $ 1.10
HALF MOON BAY General Law $ 0.55 $ 0.55 $ 1.10
HILLSBOROUGH General Law $ 0.55 $ 0.55 $ 1.10
MENLO PARK General Law $ 0.55 $ 0.55 $ 1.10
MILLBRAE General Law $ 0.55 $ 0.55 $ 1.10
PACIFICA General Law $ 0.55 $ 0.55 $ 1.10
PORTOLA VALLEY General Law $ 0.55 $ 0.55 $ 1.10
REDWOOD CITY Chartered $ 0.55 $ 0.55 $ 1.10
SAN BRUNO General Law $ 0.55 $ 0.55 $ 1.10
SAN CARLOS General Law $ 0.55 $ 0.55 $ 1.10
SAN MATEO Chartered 0.5% of value $ 1.10 $ 6.10
SOUTH SAN FRANCISCO General Law $ 0.55 $ 0.55 $ 1.10
WOODSIDE General Law $ 0.55 $ 0.55 $ 1.10
SANTA BARBARA COUNTY $ 1.10 $ 1.10
BUELLTON General Law $ 0.55 $ 0.55 $ 1.10
CARPINTERIA General Law $ 0.55 $ 0.55 $ 1.10
GOLETA General Law $ 0.55 $ 0.55 $ 1.10
GUADALUPE General Law $ 0.55 $ 0.55 $ 1.10
Over $100,000 AV => 0.5%, Over $250,000 AV => 0.68%
Ov er $1 million AV => 0.75%, Over $5 million AV => 2.25% Ov er $10 million AV => 2.75%, ov er $25 million => 3.00% Discounts for certain solar & seismic improvments.
mjgc rev15Sept2019 CaliforniaCityFinance.com page 11 of 16 285
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
LOMPOC General Law $ 0.55 $ 0.55 $ 1.10
SANTA BARBARA Chartered $ 0.55 $ 0.55 $ 1.10
SANTA MARIA Chartered $ 0.55 $ 0.55 $ 1.10
SOLVANG Chartered $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 12 of 16 286
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
SANTA CLARA COUNTY $ 1.10 $ 1.10
CAM PBELL General Law $ 0.55 $ 0.55 $ 1.10
CUPERTINO General Law $ 0.55 $ 0.55 $ 1.10
GILROY Chartered $ 0.55 $ 0.55 $ 1.10
LOS ALTOS General Law $ 0.55 $ 0.55 $ 1.10
LOS ALTOS HILLS General Law $ 0.55 $ 0.55 $ 1.10
LOS GATOS General Law $ 0.55 $ 0.55 $ 1.10
MILPITAS General Law $ 0.55 $ 0.55 $ 1.10
MONTE SERENO General Law $ 0.55 $ 0.55 $ 1.10
MORGAN HILL General Law $ 0.55 $ 0.55 $ 1.10
MOUNTAIN VIEW Chartered $ 3.30 $ 1.10 $ 4.40
PALO ALTO Chartered $ 3.30 $ 1.10 $ 4.40
SAN JOSE Chartered $ 3.30 $ 1.10 $ 4.40
SANTA CLARA Chartered $ 0.55 $ 0.55 $ 1.10
SARATOGA General Law $ 0.55 $ 0.55 $ 1.10
SUNNYVALE Chartered $ 0.55 $ 0.55 $ 1.10
SANTA CRUZ COUNTY $ 1.10 $ 1.10
CAPITOLA General Law $ 0.55 $ 0.55 $ 1.10
SANTA CRUZ Chartered $ 0.55 $ 0.55 $ 1.10
SCOTTS VALLEY General Law $ 0.55 $ 0.55 $ 1.10
WATSONVILLE Chartered $ 0.55 $ 0.55 $ 1.10
SHASTA COUNTY $ 1.10 $ 1.10
ANDERSON General Law $ 0.55 $ 0.55 $ 1.10
REDDING General Law $ 0.55 $ 0.55 $ 1.10
SHASTA LAKE General Law $ 0.55 $ 0.55 $ 1.10
SIERRA COUNTY $ 1.10 $ 1.10
LOYALTON General Law $ 0.55 $ 0.55 $ 1.10
SISKIYOU COUNT Y $ 1.10 $ 1.10
DORRIS General Law $ 0.55 $ 0.55 $ 1.10
DUNSMUIR General Law $ 0.55 $ 0.55 $ 1.10
ETNA General Law $ 0.55 $ 0.55 $ 1.10
FORT JONES General Law $ 0.55 $ 0.55 $ 1.10
MONTAGUE General Law $ 0.55 $ 0.55 $ 1.10
MOUNT SHASTA General Law $ 0.55 $ 0.55 $ 1.10
TULELAKE General Law $ 0.55 $ 0.55 $ 1.10
WEED General Law $ 0.55 $ 0.55 $ 1.10
YREKA General Law $ 0.55 $ 0.55 $ 1.10
SOLANO COUNTY $ 1.10 $ 1.10
BENICIA General Law $ 0.55 $ 0.55 $ 1.10
DIXON General Law $ 0.55 $ 0.55 $ 1.10
FAIRFIELD General Law $ 0.55 $ 0.55 $ 1.10
RIO VISTA General Law $ 0.55 $ 0.55 $ 1.10
SUISUN CITY General Law $ 0.55 $ 0.55 $ 1.10
VACAVILLE General Law $ 0.55 $ 0.55 $ 1.10
VALLEJO Chartered $ 3.30 $ 1.10 $ 4.40
mjgc rev15Sept2019 CaliforniaCityFinance.com page 13 of 16 287
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
SONOMA COUNTY $ 1.10 $ 1.10
CLOVERDALE General Law $ 0.55 $ 0.55 $ 1.10
COTATI General Law $ 0.55 $ 0.55 $ 1.10
HEALDSBURG General Law $ 0.55 $ 0.55 $ 1.10
PETALUMA Chartered $ 2.00 $ 1.10 $ 3.10
ROHNERT PARK General Law $ 0.55 $ 0.55 $ 1.10
SANTA ROSA Chartered $ 2.00 $ 1.10 $ 3.10
SEBASTOPOL General Law $ 0.55 $ 0.55 $ 1.10
SONOMA General Law $ 0.55 $ 0.55 $ 1.10
WINDSOR General Law $ 0.55 $ 0.55 $ 1.10
STANISLAUS COUNTY $ 1.10 $ 1.10
CERES General Law $ 0.55 $ 0.55 $ 1.10
HUGHSON General Law $ 0.55 $ 0.55 $ 1.10
MODESTO Chartered $ 0.55 $ 0.55 $ 1.10
NEWMAN General Law $ 0.55 $ 0.55 $ 1.10
OAKDALE General Law $ 0.55 $ 0.55 $ 1.10
PATTERSON General Law $ 0.55 $ 0.55 $ 1.10
RIVERBANK General Law $ 0.55 $ 0.55 $ 1.10
TURLOCK General Law $ 0.55 $ 0.55 $ 1.10
WATERFORD General Law $ 0.55 $ 0.55 $ 1.10
SUTTER COUNTY $ 1.10 $ 1.10
LIVE OAK General Law $ 0.55 $ 0.55 $ 1.10
YUBA CITY General Law $ 0.55 $ 0.55 $ 1.10
TEHAMA COUNTY $ 1.10 $ 1.10
CORNING General Law $ 0.55 $ 0.55 $ 1.10
RED BLUFF General Law $ 0.55 $ 0.55 $ 1.10
TEHAMA General Law $ 0.55 $ 0.55 $ 1.10
TRINITY COUNTY $ 1.10 $ 1.10
TULARE COUNTY $ 1.10 $ 1.10
DINUBA Chartered $ 0.55 $ 0.55 $ 1.10
EXETER Chartered $ 0.55 $ 0.55 $ 1.10
FARMERSVILLE General Law $ 0.55 $ 0.55 $ 1.10
LINDSAY Chartered $ 0.55 $ 0.55 $ 1.10
PORTERVILLE Chartered $ 0.55 $ 0.55 $ 1.10
TULARE Chartered $ 0.55 $ 0.55 $ 1.10
VISALIA Chartered $ 0.55 $ 0.55 $ 1.10
WOODLAKE Chartered $ 0.55 $ 0.55 $ 1.10
TUOLUMNE COUNTY $ 1.10 $ 1.10
SONORA General Law $ 0.55 $ 0.55 $ 1.10
VENTURA COUNTY $ 1.10 $ 1.10
CAMARILLO General Law $ 0.55 $ 0.55 $ 1.10
FILLMORE General Law $ 0.55 $ 0.55 $ 1.10
MOORPARK General Law $ 0.55 $ 0.55 $ 1.10
OJAI General Law $ 0.55 $ 0.55 $ 1.10
OXNARD General Law $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 14 of 16 288
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
PORT HUENEME Chartered $ 0.55 $ 0.55 $ 1.10
SAN BUENAVENTURA Chartered $ 0.55 $ 0.55 $ 1.10
SANTA PAULA General Law $ 0.55 $ 0.55 $ 1.10
SIMI VALLEY General Law $ 0.55 $ 0.55 $ 1.10
THOUSAND OAKS General Law $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 15 of 16 289
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
YOLO COUNTY $ 1.10 $ 1.10
DAVIS General Law $ 0.55 $ 0.55 $ 1.10
WEST SACRAMENTO General Law $ 0.55 $ 0.55 $ 1.10
WINTERS General Law $ 0.55 $ 0.55 $ 1.10
WOODLAND General Law $ 0.55 $ 0.55 $ 1.10
YUBA COUNTY $ 1.10 $ 1.10
MAR YSVILLE Chartered $ 0.55 $ 0.55 $ 1.10
WHEATLAND General Law $ 0.55 $ 0.55 $ 1.10
Source
: CaliforniaCityFinance.com
mjgc rev15Sept2019 CaliforniaCityFinance.com page 16 of 16 290
General Law City v. Charter City
Characteristic General Law City Charter City
Ability to Govern
Municipal Affairs
Bound by the state’s general law, regardless
of whether the subject concerns a municipal
affair.
Has supreme authority over “municipal
affairs.” Cal. Const. art. XI, § 5(b).
Form of Government
State law describes the city’s form of
government For example, Government
Code section 36501 authorizes general law
cities be governed by a city council of five
members, a city clerk, a city treasurer, a
police chief, a fire chief and any subordinate
officers or employees as required by law.
City electors may adopt ordinance which
provides for a different number of council
members. Cal. Gov’t section 34871. The
Government Code also authorizes the “city
manager” form of government. Cal. Gov’t
Code § 34851.
Charter can provide for any form of
government including the “strong mayor,”
and “city manager” forms. See Cal. Const.
art. XI, § 5(b); Cal. Gov’t Code § 34450 et
seq.
Elections Generally
Municipal elections conducted in accordance
with the California Elections Code. Cal. Elec.
Code §§ 10101 et seq..
Not bound by the California Elections Code.
May establish own election dates, rules, and
procedures. See Cal. Const. art. XI, § 5(b);
Cal. Elec. Code §§ 10101 et seq..
Methods of Elections
Generally holds at-large elections whereby
voters vote for any candidate on the ballot.
Cities may also choose to elect the city
council “by” or “from” districts, so long as the
election system has been established by
ordinance and approved by the voters. Cal.
Gov’t Code § 34871. Mayor may be elected
by the city council or by vote of the people.
Cal. Gov’t Code §§ 34902.
May establish procedures for selecting
officers. May hold at-large or district
elections. See Cal. Const. art. XI, § 5(b).
City Council Member
Qualifications
Minimum qualifications are:
1. United States citizen
2. At least 18 years old
3. Registered voter
4. Resident of the city at least 15 days
prior to the election and throughout
his or her term
5. If elected by or from a district, be a
resident of the geographical area
comprising the district from which he
or she is elected.
Cal. Elec. Code § 321; Cal. Gov’t Code §§
34882, 36502; 87 Cal. Op. Att’y Gen. 30
(2004).
Can establish own criteria for city office
provided it does not violate the U.S.
Constitution. Cal. Const. art. XI, § 5(b), 82
Cal. Op. Att’y Gen. 6, 8 (1999).
291
Characteristic General Law City Charter City
Public Funds for Candidate
in Municipal Elections
No public officer shall expend and no
candidate shall accept public money for the
purpose of seeking elected office. Cal. Gov’t
Code § 85300.
Public financing of election campaigns is
lawful. Johnson v. Bradley, 4 Cal. 4th 389
(1992).
Term Limits
May provide for term limits. Cal. Gov’t Code
§ 36502(b).
May provide for term limits. Cal. Const. art.
XI, § 5(b); Cal Gov’t Code Section 36502 (b).
Vacancies and Termination
of Office
An office becomes vacant in several
instances including death, resignation,
removal for failure to perform official duties,
electorate irregularities, absence from
meetings without permission, and upon non-
residency. Cal. Gov’t Code §§ 1770, 36502,
36513.
May establish criteria for vacating and
terminating city offices so long as it does not
violate the state and federal constitutions.
Cal. Const. art. XI, § 5(b).
Council Member
Compensation and
Expense Reimbursement
Salary-ceiling is set by city population and
salary increases set by state law except for
compensation established by city electors.
See Cal. Gov’t Code § 36516. If a city
provides any type of compensation or
payment of expenses to council members,
then all council members are required to
have two hours of ethics training. See Cal.
Gov’t Code §§ 53234 - 53235.
May establish council members’ salaries.
See Cal. Const. art. XI, § 5(b). If a city
provides any type of compensation or
payment of expenses to council members,
then all council members are required to
have two hours of ethics training. See Cal.
Gov’t Code §§ 53234 - 53235.
Legislative Authority
Ordinances may not be passed within five
days of introduction unless they are urgency
ordinances. Cal. Gov’t Code § 36934.
Ordinances may only be passed at a regular
meeting, and must be read in full at time of
introduction and passage except when, after
reading the title, further reading is waived.
Cal. Gov't Code § 36934.
May establish procedures for enacting local
ordinances. Brougher v. Bd. of Public Works,
205 Cal. 426 (1928).
Resolutions
May establish rules regarding the
procedures for adopting, amending or
repealing resolutions.
May establish procedures for adopting,
amending or repealing resolutions. Brougher
v. Bd. of Public Works, 205 Cal. 426 (1928).
Quorum and Voting
Requirements
A majority of the city council constitutes a
quorum for transaction of business. Cal.
Gov’t Code § 36810.
All ordinances, resolutions, and orders for
the payment of money require a recorded
majority vote of the total membership of the
city council. Cal. Gov't Code § 36936.
Specific legislation requires supermajority
votes for certain actions.
May establish own procedures and quorum
requirements. However, certain legislation
requiring supermajority votes is applicable to
charter cities. For example, see California
Code of Civil Procedure section 1245.240
requiring a vote of two-thirds of all the
members of the governing body unless a
greater vote is required by charter.
292
Characteristic General Law City Charter City
Rules Governing
Procedure and Decorum
Ralph Brown Act is applicable. Cal. Gov’t
Code §§ 54951, 54953(a).
Conflict of interest laws are applicable. See
Cal. Gov’t Code § 87300 et seq..
Ralph Brown Act is applicable. Cal. Gov’t
Code §§ 54951, 54953(a).
Conflict of interest laws are applicable. See
Cal. Gov’t Code § 87300 et seq..
May provide provisions related to ethics,
conflicts, campaign financing and
incompatibility of office.
Personnel Matters
May establish standards, requirements and
procedures for hiring personnel consistent
with Government Code requirements.
May have “civil service” system, which
includes comprehensive procedures for
recruitment, hiring, testing and promotion.
See Cal. Gov't Code § 45000 et seq.
Meyers-Milias-Brown Act applies. Cal. Gov't
Code § 3500.
Cannot require employees be residents of
the city, but can require them to reside within
a reasonable and specific distance of their
place of employment. Cal. Const. art. XI, §
10(b).
May establish standards, requirements, and
procedures, including compensation, terms
and conditions of employment for personnel.
See Cal. Const. art. XI, § 5(b).
Procedures set forth in Meyers-Milias-Brown
Act (Cal. Gov't Code § 3500) apply, but note,
“[T]here is a clear distinction between the
substance of a public employee labor issue
and the procedure by which it is resolved.
Thus there is no question that 'salaries of
local employees of a charter city constitute
municipal affairs and are not subject to
general laws.'” Voters for Responsible
Retirement v. Board of Supervisors, 8
Cal.4th 765, 781 (1994).
Cannot require employees be residents of
the city, but can require them to reside within
a reasonable and specific distance of their
place of employment. Cal. Const. art. XI,
section 10(b).
Contracting Services
Authority to enter into contracts to carry out
necessary functions, including those
expressly granted and those implied by
necessity. See Cal. Gov't Code § 37103;
Carruth v. City of Madera, 233 Cal. App. 2d
688 (1965).
Full authority to contract consistent with
charter.
May transfer some of its functions to the
county including tax collection, assessment
collection and sale of property for non-
payment of taxes and assessments. Cal.
Gov't Code §§ 51330, 51334, 51335.
293
Characteristic General Law City Charter City
Public Contracts
Competitive bidding required for public works
contracts over $5,000. Cal. Pub. Cont. Code
§ 20162. Such contracts must be awarded to
the lowest responsible bidder. Pub. Cont.
Code § 20162. If city elects subject itself to
uniform construction accounting procedures,
less formal procedures may be available for
contracts less than $100,000. See Cal. Pub.
Cont. Code §§ 22000, 22032.
Contracts for professional services such as
private architectural, landscape architectural,
engineering, environmental, land surveying,
or construction management firms need not
be competitively bid, but must be awarded
on basis of demonstrated competence and
professional qualifications necessary for the
satisfactory performance of services. Cal.
Gov't Code § 4526.
Not required to comply with bidding statutes
provided the city charter or a city ordinance
exempts the city from such statutes, and the
subject matter of the bid constitutes a
municipal affair. Pub. Cont. Code § 1100.7;
see R & A Vending Services, Inc. v. City of
Los Angeles, 172 Cal. App. 3d 1188 (1985);
Howard Contracting, Inc. v. G.A. MacDonald
Constr. Co., 71 Cal. App. 4th 38 (1998).
Payment of Prevailing
Wages
In general, prevailing wages must be paid on
public works projects over $1,000. Cal. Lab.
Code § 1771. Higher thresholds apply
($15,000 or $25,000) if the public entity has
adopted a special labor compliance program.
See Cal. Labor Code § 1771.5(a)-(c).
Historically, charter cities have not been
bound by state law prevailing-wage
requirements so long as the project is a
municipal affair, and not one funded by state
or federal grants. Vial v. City of San Diego,
122 Cal. App. 3d 346, 348 (1981). However,
there is a growing trend on the part of the
courts and the Legislature to expand the
applicability of prevailing wages to charter
cities under an analysis that argues that the
payment of prevailing wages is a matter of
statewide concern. The California Supreme
Court currently has before them a case that
will provide the opportunity to decide
whether prevailing wage is a municipal affair
or whether it has become a matter of
statewide concern.
294
Characteristic General Law City Charter City
Finance and Taxing Power
May impose the same kinds of taxes and
assessment as charter cities. See Cal. Gov't
Code § 37100.5.
Imposition of taxes and assessments subject
to Proposition 218. Cal. Const. art.XIIIC.
Examples of common forms used in
assessment district financing include:
• Improvement Act of 1911. Cal. Sts.
& High. Code § 22500 et seq..
• Municipal Improvement Act of 1913.
See Cal. Sts. & High. Code §§
10000 et seq..
• Improvement Bond Act of 1915. Cal.
Sts. & High. Code §§ 8500 et seq..
• Landscaping and Lighting Act of
1972. Cal. Sts. & High. Code §§
22500 et seq..
• Benefit Assessment Act of 1982.
Cal. Gov't Code §§ 54703 et seq..
May impose business license taxes for
regulatory purposes, revenue purposes, or
both. See Cal. Gov't Code § 37101.
May not impose real property transfer tax.
See Cal. Const. art. XIIIA, § 4; Cal. Gov't
Code § 53725; but see authority to impose
documentary transfer taxes under certain
circumstances. Cal. Rev. & Tax. Code §
11911(a), (c).
Have the power to tax.
Have broader assessment powers than a
general law city, as well as taxation power as
determined on a case-by case basis.
Imposition of taxes and assessments subject
to Proposition 218, Cal. Const. art. XIIIC, §
2, and own charter limitations
May proceed under a general assessment
law, or enact local assessment laws and
then elect to proceed under the local law.
See J.W. Jones Companies v. City of San
Diego, 157 Cal. App. 3d 745 (1984).
May impose business license taxes for any
purpose unless limited by state or federal
constitutions, or city charter. See Cal. Const.
art. XI, § 5.
May impose real property transfer tax; does
not violate either Cal. Const art. XIIIA or
California Government Code section 53725.
See Cohn v. City of Oakland, 223 Cal. App.
3d 261 (1990); Fielder v. City of Los
Angeles, 14 Cal. App. 4th 137 (1993).
Streets & Sidewalks
State has preempted entire field of traffic
control. Cal. Veh. Code § 21.
State has preempted entire field of traffic
control. Cal. Veh. Code § 21.
Penalties & Cost Recovery
May impose fines, penalties and forfeitures,
with a fine not exceeding $1,000. Cal. Gov’t
Code § 36901.
May enact ordinances providing for various
penalties so long as such penalties do not
exceed any maximum limits set by the
charter. County of Los Angeles v. City of Los
Angeles, 219 Cal. App. 2d 838, 844 (1963).
295
Characteristic General Law City Charter City
Public Utilities/Franchises
May establish, purchase, and operate public
works to furnish its inhabitants with electric
power. See Cal. Const. art. XI, § 9(a); Cal.
Gov't Code § 39732; Cal. Pub. Util. Code §
10002.
May grant franchises to persons or
corporations seeking to furnish light, water,
power, heat, transportation or
communication services in the city to allow
use of city streets for such purposes. The
grant of franchises can be done through a
bidding process, under the Broughton Act,
Cal. Pub. Util. Code §§ 6001-6092, or
without a bidding process under the
Franchise Act of 1937, Cal. Pub. Util. Code
§§ 6201-6302.
May establish, purchase, and operate public
works to furnish its inhabitants with electric
power. See Cal. Const. art. XI, § 9(a); Cal.
Apartment Ass’n v. City of Stockton, 80 Cal.
App. 4th 699 (2000).
May establish conditions and regulations on
the granting of franchises to use city streets
to persons or corporations seeking to furnish
light, water, power, heat, transportation or
communication services in the city.
Franchise Act of 1937 is not applicable if
charter provides. Cal. Pub. Util. Code §
6205.
Zoning
Zoning ordinances must be consistent with
general plan. Cal. Gov't Code § 65860.
Zoning ordinances are not required to be
consistent with general plan unless the city
has adopted a consistency requirement by
charter or ordinance. Cal. Gov’t. Code §
65803.
296
297
298
.
STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of January 25, 2022
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Finance Director
SUBJECT: Long-Term Financial Projection for the General Fund and Approval of a Resolution to unanimously declare a fiscal emergency in the City of Hercules
RECOMMENDATION: Review and discuss the long -term financial projection for the General Fund, and approval of a resolution to unanimously declare a fiscal emergency in the City of Hercules related to the expiration of the City’s Utility Users Tax on January 1, 2025.
FISCAL IMPACT OF RECOMMENDATION
There is no direct impact from the preparation and review of an updated long-term forecast. It is a planning tool that can be used to guide future fiscal decisions.
BACKGROUND AND DISCUSSION
The City’s finances are managed through four major efforts each year. The development and adoption of a budget for each fiscal year which starts July 1st is generally considered the first point in the annual cycle. This is generally followed by the completion and the acceptance of the audit for the prior fiscal year, with the goal of having that completed by December 31st or earlier.
The completion of the annual audit typically sets the stage for the mid-year budget review in February or March and can include some adjustments or additional appropriations or designations of reserves.
The preparation of an update to the long-term forecast would typically be received by the Council in March/April timeframe to set the stage for the development of the budget for the next fiscal year.
However, this year due to the Utility Users Tax, which will sunset in January 2025, staff prepared the long-term financial projections early to show the fiscal impact of the discontinuance of the UUT to the City’s bottom line and to start the voter approval process to continue its UUT.
With the audit being received by the City Council tonight, it is time to review an updated Long-Term Financial Projection. The forecast has been updated to reflect the FY 20-21 audit results with the FY 21-22 Adopted Budget and the preliminary look of the FY 22-23 projections. A long-term forecast was prepared for the General Fund for the time period from FY 23-24 through FY 27-28. 299
The five-year forecast is an essential tool that reflects the City’s commitment to fiscal health and sustainability. This model is used to evaluate the immediate impact of budgetary decisions and the costs of decisions over multiple years. The tool is updated based on current revenue and expenditure information. Though individual variables and assumptions may change over time, the fiv e-year forecast provides a consistent model to realistically forecast the City’s fiscal performance. The five- year forecast includes all aspects of the General Fund. It models and forecasts all General Fund revenues (property tax, sales tax, utility users tax, etc.) and expenditures in detail. The City updates the five-year forecast as part of the regular budget update to the Council. These updates are part of developing the budget for the upcoming fiscal year, as explained above.
The five-year forecast (FY 22-23 through 26-27) marks the first look at the FY 22-23 annual budget.
It includes projected General Fund financials over the next five years based on current service levels and information on revenues.
SIGNIFICANT CHANGES FROM PRIOR YEAR
The COVID-19 Pandemic began to directly impact City operations in mid -March 2020 when the initial County Health Order resulted in a stay-home order for all but essential services workers.
Now, nearly two years later, we continue to operate under a County Health Order, which has been updated and revised. Over time, we have also had to comply with the Governor's Executive Orders as they have evolved. Also, the City Manager declared a local emergency in response to the COVID- 19 Pandemic initially on March 15, 2020. That local emergency declaration was ratified by the City Council and extended by the City Council's action every 60 days after that.
Also, we would like to acknowledge that the City of Hercules is the only City Hall in the county that did not close during the COVID event. As essential services workers, City employees continued to work unless they had COVID-related health or childcare issues. We were fortunate that our physical facilities and level of staffing lent themselves to operate on-site in a safe manner with all reasonable and required precautions taken to protect our employees and customers. Of course, we could not continue in-person City Council and other public meetings and transitioned to the Zoom platform.
We continue to utilize this platform in compliance with the Governor’s Executive Order.
REVENUE PROJECTION AND ASSUMPTIONS USED: The General Fund major revenue categories are summarized on Attachment 2. The City derives a significant portion of its General Fund revenues from economically sensitive sources such as property taxes, sales taxes (1% Bradley-Burns and Measure B), and utility users’ taxes. When one or more of these key revenue sources deviates from projections, funding for future programs and services may be affected.
As shown in the following graph, General Fund revenues are projected to increase at the rate of 2% a year and include estimated revenues from new development . Revenue projections for a 5 -year forecast period through 2027 range from $17.5 to $16.7 million. The following explains the major revenue assumptions used to estimate General Fund revenues.
300
Utility Users Tax (UUT) are revenues collected from the consumption of utility services, including (but not limited to) electric, gas, water, sewer, telephone (including cell phone and long-distance), sanitation, and cable television. The City determines the rate of the tax and the use of its revenues. Based on the trend and its consumption rate, the City continues to see erosion in Wireless Telecom’s UUT revenues due to the update in allocations of the bundled packages from the respective providers. These updated allocations shifted a more significant percentage towards data, which is not taxable.
On June 4, 2013, the voters approved Ordinance #475, increasing the tax rate from 6% to 8%. The Utility Users Tax will automatically sunset, and its provisions shall become ineffective on January 1, 2025. The five-year forecast assumes that the tax will sunset in mid FY 24-25. To avoid catastrophic impacts to City services due to a severe and sudden loss of revenue, Staff recommends going back to the voters to extend the tax imposed on utilities.
Total Sales Tax revenue is highly concentrated with two producers generating over 50% of the City's sales tax. Based on the report received from MuniServices, Hercules’s sales tax revenue is substantially generated from business and industry sources. However, the City continues to benefit from the ongoing implementation of the Wayfair decision regarding online sales and the more significant amount of purchases being made online due to the Pandemic, with these trends being found as part of the City's share in the County pool. It should also be noted that the Wayfair decision's full effect is anticipated to have occurred by the end of the FY 20/21 fiscal year. After that, any increases from the County pool will be driven primarily by the underlying economic trends.
The City is realizing a stable property tax-related revenue growth and assumed the following: The California Consumer Price Index (CCPI) for FY 2021-22 that has been approved by the State is 1.036%. In year two of the forecast, the CIP growth is estimated -
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
FY 22-23
Forecast
FY 23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
General Fund
5-Year Forecast - Operating Revenues
Taxes
Taxes on New Development
Intergovernmental
Program Revenues
Use of Money & Property/Other
Admin Cost Allocation
Transfers In
301
at 1.5% and in years 3 -5 of the forecast, the CCPI has been forecast at the maximum allowable rate of 2%.
This year the Assessors applied the CCPI factor of 1.036%. It is important to note that all properties that have been granted Proposition 8 reductions between 2008 and 2012, and in some counties in 2020 due to lower sale price trends in 2019, are required to be reviewed each year outside of the CCPI adjustment and any positive adjustment to those properties will likely exceed the 1.036% if properties are granted value restorations.
The new general tax revenues that will be generated from new developments, such as Muir Pointe, Bayfront, Sycamore Crossing, Willow Auto Site, and Hilltown are estimated based on residential unit impact, assuming an average of 2.5 people per unit using FY 19- 20 projected tax revenues as a base.
The effect of COVID-19 mandatory closures to the Parks & Recreation program resulted in a reduction of $1.1 million of program revenues in FY 20-21 as adjusted at Midyear.
Childcare programs, contract classes, sports programs, and facility rentals were all suspended since March 2020, with very limited offerings underway now. The five-year projections assumed that all programs would be restored starting FY 21-22.
EXPENDITURE PROJECTION AND ASSUMPTIONS USED: As shown in the following graph, General Fund expenditures are projected to increase at the estimated rate of 3% a year.
Expenditure projections for a 5-year forecast period through 2027 range from $16.8 to $18.6 million assuming the same service level. The following chart shows the growth in General Fund expenditures.
1. The most significant cost in the General Fund is driven by its labor. Labor accounts for almost 60% of total expenditures. Below are significant assumptions used to estimate the cost of salaries and benefits:
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
20,000,000
FY 22-23
Forecast
FY 23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
General Fund
5-Year Forecast - Operating Expenditures
Non-Department/Transfers
Workers Comp/General Liability
Administration
Parks and Recreation
Community Development
Public Works
Police
302
a. Regular Salaries – Cost of living (COLA) increase by 3% per year.
b. PERS Miscellaneous and Public Safety Normal Cost rate applied are projected as follows based on CalPERS actuarial assumptions:
c. PERS Unfunded Accrued Liability (UAL) contribution amounts are projected as follows based on CalPERS actuarial assumptions.
2. Parks & Recreation programs have been suspended since March 2020. The five -year forecast assumed that programs would be restored starting FY 21-22.
3. The City of Hercules has been navigating a series of financial difficulties dating back to the Great Recession in FY 2007-08, the elimination of redevelopment in 2011, in addition to financial mismanagement which occurred under a former City Manager who resigned in 2011. While much progress has been made and the City has been able to build up its reserves by making financially prudent decisions and adopting balanced budgets which also use one -time monies for strategic purposes, ensuring the ongoing financial sustainability of the City, and lingering issues associated with the State dissolution of redevelopment in 2011 have not been fully resolved.
On April 8, 2020, the City entered into a settlement agreement implementing an installment payment plan for the Other Funds Due Diligence Review payment. The outstanding $3.6 million payment will be made by the City and Successor Agency to the Contra Costa County Auditor-Controller according to the following schedule, which the initial payment was made on May 1, 2020:
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27
Police Classic 23.70% 23.70% 23.70% 23.70% 23.70%
Police 2nd-Tier 21.80% 21.80% 21.80% 21.80% 21.80%
Police PEPRA 13.10% 13.10% 13.10% 13.10% 13.10%
Miscellaneous Classic 10.30% 10.30% 10.30% 10.30% 10.30% Miscellaneous PEPRA 7.60% 7.60% 7.60% 7.60% 7.60%
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27
Police Classic 747,000 $ 797,000 $ 847,000 $ 873,000 $ 896,000 $ Police 2nd-Tier 2,000 2,100 2,200 400 400 Police PEPRA 6,200 4,900 5,800 6,000 6,200 Miscellaneous Classic 614,000 651,000 691,000 711,000 730,000 Miscellaneous PEPRA 3,400 4,200 4,800 5,000 5,100 1,372,600 $ 1,459,200 $ 1,550,800 $ 1,595,400 $ 1,637,700 $ 303
This $3.6 million are funds advanced by the City in 2011 to the Redevelopment Agency to make a bond payment in order to avoid a default on the Redevelopment Agency’s bonds due to the dramatic decline in property values as a result of the Great Recession. The City advanced these funds in April 2011, and the Redevelopment Dissolution Act approved by the State Legislature and signed by then Governor Brown, made this type of transfer illegal after the fact later in 2011. The DDR completed in 2015 identified that this amount needed to be returned to the former Redevelopment Agency by the City.
The City is working with Senator Skinner regarding a bill which, if passed by the State Legislature and signed by the Governor, would make the City eligible for a Finding of Completion which would allow for the repayment of City loans made by the former Redeployment Agency. While more than $50 million in City loans are reflected as being outstanding, it is anticipated that the State Department of Finance will not find the supporting documentation acceptable for loans beyond an estimated $ 3 to $4 million.
Once that determination is made, any remaining accounts receivable related to loans from the City to the former Redevelopment Agency will have to be reduced by the loans disallowed, and that will be done once a final determination is made.
4. In August 2020, the City refinanced the proceeds of the Library Lease Revenue Bonds, Series 2003B. The City structured the refinancing to achieve all of the cash flow savings in the first three years which is reflected in the forecast.
5. On October 18, 2013, the City agreed with CalHFA to extend the term of the loan on Housing Enabled by Local Partnership (HELP) and Residential Development Loan Program (RDLP) through April 11, 2027, and August 15, 2026, respectively. At that time, payments of the remaining loan balance s are due in full. Prior to the end of the loan term, the City will work with CalHFA to negotiate a further extension to repay the remaining loan balance.
NET ANNUAL RESULTS
Based on the current information known, the General Fund will end the fiscal years with a positive net revenue until year three. On January 1, 2025, the Utility Users Tax (UUT) will sunset. Also, per our agreement with the California Housing Finance Agency (CalHFA), the remaining loan balances are due no later than April 11, 2027, and August 15, 2026, for HELP and RDLP loans, respectively.
Therefore, a structural deficit will start in FY 24-25 assuming the same service level, the UUT is not renewed, and the accelerated payments on CalHFA loans are not renegotiated. The FY 2 2-23 projections will be further updated and refined during the adoption of the budget in June 2022.
RECOMMENDATION
Staff recommends going back to the voters (a separate agenda item in the future ) to extend the UUT, a tax imposed on utilities. In order to be submitted on the ballot for a state primary election, the City must first adopt a declaration of a fiscal emergency by unanimous vote of the Council. 304
The California Constitution requires the election for a general tax measure such as this to be held on a regularly scheduled general municipal election, except in cases of emergency declared by a unanimous vote of the City Council . Declaring a fiscal emergency allows flexibility on when to place the renewal on the ballot. Placing the UUT tax renewal on a n upcoming ballot before the tax expires will allow for an uninterrupted collection of the UUT and a seamless funding of critical city services.
ATTACHMENTS:
1. Resolution
2. General Fund Long-Term Financial Forecast
305
General Fund
Five-Year Financial Forecast
Year 1 Year 2 Year 3 Year 4 Year 5
FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 Audited
Actuals
Audited
Actuals Adopted Forecast Forecast Forecast Forecast Forecast Beginning Available Balance $ 2,412,068 $ 1,847,112 2,138,983$ 1,071,458 1,317,948 2,636,463 2,698,978$ -$ Revenues
Taxes
Utility User Tax 3,483,843 3,590,649 3,509,000 3,618,000 3,644,000 1,833,000 Sales Tax 4,212,285 4,775,496 4,654,675 4,962,649 5,059,649 5,158,649 5,258,649 5,360,649 Property Taxes 1,415,995 1,451,716 1,520,000 1,433,000 1,462,000 1,492,000 1,522,000 1,553,000 Franchise Fees 948,503 862,104 896,000 897,000 915,000 933,000 951,000 969,000 Business Licenses 251,418 268,697 198,000 279,000 284,000 290,000 296,000 302,000 Transfer Tax 142,850 126,488 132,000 130,000 133,000 136,000 139,000 142,000 Transient Occupancy Tax 6,179 7,635 5,000 8,000 8,000 8,000 8,000 8,000 Intergovernmental 2,151,433 2,285,392 2,418,000 2,394,866 2,471,866 2,555,866 2,642,866 2,695,000 Fines & Forefeitures 62,582 36,586 37,000 38,000 39,000 40,000 41,000 42,000 Revenues from New Developments 302,000 924,000 1,428,000 1,662,000 1,851,000 Program Revenues
Community Development 675,556 824,891 242,000 540,000 552,000 564,000 576,000 588,000 Parks and Recreation 1,020,758 396,290 1,753,000 1,789,000 1,826,000 1,863,000 1,900,000 1,938,000 Police 483,110 48,958 219,000 123,000 125,000 127,000 129,000 131,000 Public Works 28,588 46,908 68,000 48,000 49,000 50,000 51,000 52,000 Other 6,770 10,571 11,000 11,000 11,000 11,000 11,000 11,000 Use of Money & Property 600,707 511,191 244,000 249,000 254,000 260,000 266,000 272,000 Cost allocated to other funds 534,992 619,634 719,325 616,000 629,000 642,000 655,000 669,000 Transfers In 227,335 150,000 150,000 150,000 150,000 150,000 150,000 150,000 16,252,904 16,013,206 16,776,000 17,588,515 18,536,515 17,541,515 16,258,515 16,733,649 Expenditures
Police 7,564,927 7,549,028 7,545,685 8,019,000 8,284,000 8,558,000 8,810,000 9,068,000 Public Works 305,464 292,525 374,592 310,000 317,000 325,000 333,000 342,000 Community Development 611,297 792,456 725,810 820,000 845,000 870,000 895,000 922,000 Parks and Recreation 2,165,547 1,434,988 2,787,803 2,761,000 2,843,000 2,925,000 3,005,000 3,085,000 City Council 376,082 407,588 331,114 420,000 430,000 441,000 452,000 463,000 City Manager 385,675 360,115 409,908 368,000 378,000 389,000 400,000 411,000 Legal 284,709 154,562 265,000 164,000 169,000 174,000 179,000 184,000 Administrative Services 700,608 679,926 718,643 659,000 678,000 698,000 717,000 736,000 Finance 1,044,931 1,106,024 1,155,608 1,178,000 1,215,000 1,253,000 1,290,000 1,327,000 Workers Comp/General Liability 1,084,650 1,080,572 1,235,837 1,138,000 1,172,000 1,207,000 1,241,000 1,276,000 Non-Department 766,112 375,912 260,000 712,000 765,000 763,000 561,000 563,000 Transfers Out 205,099 214,819 423,000 330,000 236,000 236,000 245,000 256,000 15,495,101 14,448,515 16,233,000 16,879,000 17,332,000 17,839,000 18,128,000 18,633,000 Net Annual Activity
Baseline Operations 757,803$ 1,564,691$ 543,000 709,515 1,204,515 (297,485) (1,869,485) (1,899,351) One-Time Revenues 1,723,486 600,747 1,056,000 141,000 114,000 360,000 416,000 438,000 One-Time Expenditures (1,234,170) (2,062,500)
DOF Settlement (1,812,075) (604,025) (604,025) (604,025) CalHFA Loan Repayments (3,900,000) (1,300,000)
Draw/(Return) from Reserve (1,269,542) 2,654,507 1,380,010 Ending Available Balance 1,847,112$ 2,138,983$ 1,071,458$ 1,317,948 2,636,463 2,698,978 - (1,381,341)$ Operating Reserve:
Beginning Balance 3,797,650$ 2,764,975$ 4,034,517$ 4,034,517 4,034,517 4,034,517 4,034,517$ 1,380,010$ Current Year Contribution 236,867
Return/(Draw) - reserve (1,269,542) 1,269,542 (2,654,507) (1,380,010) Ending Balance 2,764,975$ 4,034,517$ 4,034,517$ 4,034,517 4,034,517 4,034,517 1,380,010$ -$ % of Projected Operating
Expenditures 18% 28% 25% 24% 23% 23% 8% 0%
* Assumed discontinuation of Utility User Tax starting January 1, 2025 per ordinance. 306
Position Title Function FTE Cut Revised
Accounting Technician General Government 3 (1) 2 Admin Srvc Director/City Clerk General Government 1 1
City Manager General Government 1 1
Finance Director General Government 1 1
Human Resources Administrator General Government 1 1
Information Systems Administrator General Government 1 1 Office Assistant General Government 1 (1) 0
Personnel Technician General Government 1 (1) 0 Senior Accountant General Government 1 1
Senior Clerk General Government 1 1
Information Systems Specialist General Government 1 1 Management Analyst General Government 1 1
Police Assistant Public Safety 1 1
Police Commander Public Safety 1 1
Police Officer Public Safety 19 (1) 18
Police Sergeant Public Safety 6 6
Administrative Specialist Public Safety 2 2
Assistant Engineer Public Works 1 1
Maintenance Aide Public Works 1 (1) 0
Maintenance Worker Public Works 8 1 9
Real Property Manager Public Works 1 (1) 0
Public Works Superintendent Public Works 1 1
Public Works Technician Public Works 1 (1) 0 Office Assistant Public Works 1 (1) 0
Assistant/Senior Planner Community Development 1 (1) 0 Chief Building Official Community Development 1 (1) 0 Development Services Technician Community Development 1 1 Permit Technician Community Development 1 (1) 0 Community Development Director Community Development 1 1 Parks and Recreation Director Parks and Recreation 1 1 Estimate Approx.
Recreation Coordinator Parks and Recreation 7 (4) 3 FY 21-22 in Restoring Cost Recreation Program Manager Parks and Recreation 1 (1) 0 Budget FY 2011 FTE Increase 69 -13 56 -19% $15,278,000 $18,333,600 $3,055,600
307
STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of March 23, 2021
TO: Members of the City Council
SUBMITTED BY: David Biggs, City Manager
Mike Roberts, Public Works Director/City Engineer
SUBJECT: Public Works Department Organizational Review and Analysis
RECOMMENDED ACTION: Receive a presentation on the Public Works Department Organizational Review and Analysis, discuss, provide direction, if any.
FISCAL IMPACT OF RECOMMENDATION: There is no financial impact associated with receiving this report. Any cost associated with the recommendations will be evaluated in the future, at the time a specific recommendation is being considered for implementation.
At the last Council meeting of March 9, Decision Package #22-7 was introduced which would create a new Public Works Specialist/Inspector Classification utilizing an existing vacant FTE .
Implementing this recommendation, which is the highest priority identified in the study, would be cost neutral to the General Fund. Additional information will be provided at the time the FY 21-22 budget is being considered for adoption.
DISCUSSION: The Public Works Department provides broad range of services including oversight of the City’s transportation network, sewer collection system, stormwater system, landscaping and lighting, facilities maintenance, capital improvements, and engineering revie w for private development projects. These services have been delivered with an organizational structure, staffing level, and staffing configuration that have remained constant since 2014, following staffing reductions that occurred due to the City’s financial hardship.
Given the time that has passed as well as the changes the City has undergone since 2014, MRG was retained to evaluate the Public Works Department and provide recommendations to ensure services are as efficient and effective as possible and the department remains responsive to the public.
In addition to drawing upon their in- house expertise, MRG’s organizational assessment process included reviewing the City’s financial documents and interviewing staff and Council. They also completed a departmental comparison with four other similar cities in Contra Costa County. This included a comparison by related functions as summarized in the table below.
308
Table 1 – Comparative Municipalities Public Works Related Functions
Agency Population1
Public
Roads
(maintained
miles)2
Collection
System
(miles)
Engineering
Staff
O&M
Staff
Total
Public
Works
Employees
Total PW
Employees/
10,000
Population
Pinole 19,500 53 49 3 10 13 6.7
El
Cerrito 25,000 72 NA 5 14 19 7.6
Orinda 19,000 92 NA 7 53 12 6.3
Moraga 16,900 63 NA 5 6 11 6.5
Comp
City
Avg
20,100 70 49 5 9 14 6.8
Hercules 25,500 55 63 2.54 8.54 11 4.3
1California Department of Finance Population Estimates - May 2020 2Caltrans California Public Road Data - December 2020
3O&M staffing reduced to 5 from 7 in FY 2020-2021 to address COVID financial impact 4The Public Works Superintendent position was estimated to split time equally between Engineering and Maintenance
MRG’s recommendations cover three functional areas: staffing, organizational modifications, and technical & equipment enhancements. They are summarized below and covered in detail in the report.
I. Staffing
• Reclassify a vacant Maintenance Worker I/II position and create a new Public Works Specialist (Inspector) classification.
• Consider creating a new Public Works Supervisor classification. • Consider shifting janitorial duties for all City buildings and potentially park restrooms from full-time staff to contract services.
• Consider creating a Maintenance Aide classification and shifting the weekend parks and facilities duties from two full- time Maintenance Workers to one full -time Maintenance Worker supported by part-time staff.
• Consider using the Maintenance Worker I/II as a flexibly staffed classification and/or better differentiate between the two levels.
• Consider creating a Senior Civil Engineer classification.
II. Organizational Modifications
• Ensure that Engineering staff coordinates and reviews outside reviewer comments for development projects prior to forwarding to developers/applicants. • Provide enhanced oversight of the City-wide landscape contract. • Relocate the Public Works Superintendent to the Maintenance Yard. • Establish performance or workload measures for the Department. • Establish clear timelines for response to the most common requests for service. • Clarify expectations, standards, and frequency of inspection for the Maintenance & Operations Division’s monthly public right-of-way inspection program. 309
• Consider establishing a standby procedure and rotation that incorporates all qualified maintenance staff.
• Ensure performance evaluations are completed consistently and in a timely manner. • Establish consistent and well -defined expectations and lines of authority in t he Superintendent’s absence and clarify when “Additional Duties” pay will be applied. • Better define the “lead worker” language in the Local 315 MOU.
III. Technical and Equipment Enhancements
• Implement a basic work order and tracking system to begin tracking work output and scheduling recurring preventative maintenance activities. • Start mapping and inventorying maintained assets during the monthly inspection program. • Develop an agreement with Pinole or another neighboring agency to gain access to pavement patching equipment to improve road maintenance.
These recommendations cover a broad range of functional areas and could be phased in over time as resource levels allow. Staff looks forward to using the Organizational Review and Analysis as a guide to ensure the Public Works Department is optimally configured to best serve the public and the City’s needs into the foreseeable future.
MRG will be in attendance tonight to present their Public Works Organizational Review and Analysis as well as answer any questions.
ATTACHMENTS:
1. Presentation on Public Works Department Organizational Review and Analysis
2. Public Works Department Organizational Review and Analysis
Financial Impact
Description:
Funding Source:
Budget Recap:
Total Estimated cost: $ New Revenue: $
Amount Budgeted: $ Lost Revenue: $
New funding required: $ New Personnel: $
Council Policy Change: Yes No
310
City Council Meeting – March 23,2021
City of Hercules
Public Works Department
Organizational Review
and Analysis
1 311
PURPOSE OF THE PROJECT
The MRG project team conducted a high-level staffing,
service delivery and organizational structure analysis of the Public Works Department to achieve the following
objectives:
•Im
prove service delivery and outcomes
•In crease efficiencies and effectiveness
•Clarif y employee roles and responsibilities
•Streamline management oversight
2 312
PROJECT METHODOLOGY
The project methodology included the following:
•Review of the City’s budget documents, staff cost
allo
cations, Comprehensive Annual Financial Reports,
Lighting and Landscape District Engineer Reports,
organizational chart, and job descriptions
•Interviews with City staff and each Council Member
•Desk review of the organizational structure of four
c
omparative municipalities in Contra Costa County:
•El Cerrito
•Pinole
•Moraga
•Orinda
3 313
KEY FINDINGS
•Extensive use of outside consultants and contractors
•Significant staff reductions between 2012 to 2014 from high of 1 8 to current 11
•Management staff spend virtually all their time performing staff le
vel work or managing everyday work functions
•Insufficient capacity to perform strategic planning, implement w
ork productivity systems and oversee staff
•No formal work order or work productivity systems in place •Limited inspection of encroachment permit work and
d
evelopment projects
•Limited review and coordination of outside engineering firms •Desire for enhanced oversight of the landscape contractor 4 314
COMPARATIVE
AGENCY
ANALYSIS
5 Table 1 – Comparative Municipalities Public Works Related Functions
Agency Population1
Public
Roads
(maintained
miles)2
Collection
System
(miles)
Engineering
Staff
O&M
Staff
Total
Public
Works
Employees
Total PW
Employees/
10,000
Population
Pinole 19,500 53 49 3 10 13 6.7
El Cerrito 25,000 72 NA 5 14 19 7.6
Orinda 19,000 92 NA 7 53 12 6.3
Moraga 16,900 63 NA 5 6 11 6.5
Comp
City Avg 20,100 70 49 5 9 14 6.8
Hercules 25,500 55 63 2.54 8.54 11 4.3
1California Department of Finance Population Estimates - May 2020 2Caltrans California Public Road Data - December 2020
3O&M staffing reduced to 5 from 7 in FY 2020-2021 to address COVID financial impact 4The Public Works Superintendent position was estimated to split time equally between Engineering and Maintenance 315
RECOMMENDATIONS
Create a new Public Works Specialist (Inspector) classification •Fund by reclassifying vacant Maintenance Worker I/II position •Addresses many of the Department’s most pressing issues:
• Frees the Superintendent to oversee maintenance staff and implement w
ork order and other management tools
• Provides needed oversight of development projects and encroachment p
ermit-related work in the City’s right-of-way
• Provides additional time for the Associate Engineer to review and c
oordinate the work of outside consultants by reassigning work to the new position
• Satisfies the City Council’s and other stakeholders’ goal for enhanced o
versight of the landscape contractor by assigning oversight to this new position, trained and experienced in inspecting contract work and enforcing contract provisions
6 316
RECOMMENDATIONS
•Create a new Public Works Supervisor classification
•Fill as funds become available or by upgrading a Maintenance W
orker I/II position
•Assist in the oversight of outside contractors and vendors •Clear line of authority in the absence of the Superintendent •Path of succession and promotion within the Division
•Assist in the development and implementation of needed s
ystem improvements
•Consider shifting janitorial duties for all City buildings an
d potentially park restrooms to contract services
and/or part-time staff
•Implement a variety of work productivity and
p
erformance measurement systems to improve
effectiveness 7
317
PROPOSED ORGANIZATIONAL
STRUCTURE
•Reallocates Department staff to areas of greatest need – publ
ic works inspection, outside engineering consultant
oversight, and landscape contract oversight through the creation of a Public Works Specialist position
•Creates a Public Works Supervisor classification that
pr
ovides for both staff development opportunities and
succession planning
•Reallocates staff resources and responsibilities to provide a
dequate management and supervisory-level staff to
develop and implement necessary procedures and
systems for performance and workload management
8 318
PROPOSED ORGANIZATIONAL
STRUCTURE
9 319
Post Office Box 561 Wilton, California 95693 916-261-7547 [email protected]
CITY OF HERCULES
Public Works Department
Organizational Review and Analysis
Prepared by:
Mike Bakaldin
Charlene Harris
Mike Oliver
Municipal Resource Group, LLC
March 2021
320
City of Hercules - Public Works Department Organizational Review and Analysis Page i Municipal Resource Group, LLC Report
TABLE OF CONTENTS
Page
EXECUTIVE SUMMARY ................................ ................................ ................................ .....1 BACKGROUND ................................ ................................ ................................ ................. 1 ORGANIZATIONAL ASSESSMENT PROCESS AND METHODOLOGY ................................ .....2 A. Document Review ................................ ................................ ................................ 2 B. Staff and Customer Interviews ................................ ................................ .............2 C. Comparative Municipality Review ................................ ................................ ........3 KEY OBSERVATIONS AND FINDINGS ................................ ................................ ................. 3 A. Public Works Department ................................ ................................ .................... 3 B. Engineering Division ................................ ................................ ............................. 4 C. Maintenance & Operations Division ................................ ................................ .....5 COMPARATIVE AGENCIES ................................ ................................ ................................ 9 RECOMMENDATIONS ................................ ................................ ................................ ....10 A. Staffing ................................ ................................ ................................ .............. 10 B. Organizational Modifications ................................ ................................ .............13 C. Technical and Equipment Enhancements ................................ ........................... 16 PROPOSED ORGANIZATIONAL STRUCTURE ................................ ................................ ....17 CONCLUSION ................................ ................................ ................................ ................. 17
ATTACHMENTS
Attachment A List of Interviewees
Attachment B List of Interview Questions
Attachment C-1 City of Pinole Organizational Chart
Attachment C-2 City of Orinda Organizational Chart
Attachment C-3 Town of Moraga Organizational Chart
Attachment C-4 City of El Cerrito Organizational Chart
Attachment D Hercules Public Works Department Proposed Organizational Structure
321
City of Hercules - Public Works Department Organizational Review and Analysis Page 1 Municipal Resource Group, LLC Report
EXECUTIVE SUMMARY
The City of Hercules (“City”) engaged Municipal Resource Group, LLC (“MRG”) to assist the City’s Public Works Department (“Department”) in determining an organizational structure and staffing configuration that would improve service delivery and outcomes , increase efficiencies and effectiveness, clarify employee roles and responsibilities, and streamline management oversight.
The process included a review of provided documentation and data ; individual interviews of identified Department staff, the City Manager, and each member of the City Council; and a review of data from comparative municipalities. The data and subsequent analysis were incorporated into a series of findings and recommendations.
MRG’s most critical recommendation is to reclassify a currently vacant Maintenance Worker I/II position to a new Public Works Specialist (Inspector) classification . This one recommendation addresses many of the Department’s most pressing issues, in that it would:
• Free the Public Works Superintendent to provide the necessary oversight and direction to maintenance staff and the time to implement a work order system, performance or workload measures and other management tools;
• Provide needed oversight of development projects and encroachment of permit-related work in the City’s right-of-way;
• Provide additional time for the Associate Engineer to review and coordinate the work of outside consultants by reassigning work to the new position; and • Satisfy the City Council ’s and other stakeholders ’ goal for enhanced oversight of the landscape contractor by assigning oversight to this new position, who would be trained and experienced in inspecting contract work and enforcing contract provisions.
Other key recommendations include:
• Consider creating a new Public Works Supervisor classification; • Shifting janitorial duties for all City buildings and potentially park restrooms from full-time staff to contract services and/or part-time staff; and
• Implementing a v ariety of work productivity, performance measurement and accountability systems to improve effectiveness.
BACKGROUND
The Department is tasked with overseeing the construction, rehabilitation , and maintenance of the City’s infrastructure. The Department ope rates with a limited number of staff supported by outside consultants and contractors for a wide variety of designated services. While the City has continued to develop and grow (9% population growth since 2011), and infrastructure and infrastructure maint enance requirements have increased along with service delivery expectations, t he number of Department staff has remained constant since 201 4, following staffing reductions to address fiscal impacts brought on by the Great Recession. The Department 322
City of Hercules - Public Works Department Organizational Review and Analysis Page 2 Municipal Resource Group, LLC Report
operated with an average staffing of 14.75 FTEs between the years 2011 through 2014. Beginning in Fiscal Year 2015, the staffing level was reduced and has remained at 11.0 FTEs.
The MRG project team conducted a high -level staffing, service delivery and organizational structure analysis of the Public Works Department to achieve the following objectives:
• Evaluate service delivery methods and outcomes, utilizing City Council, City Manager, and Public Works staff input, and provide reco mmendations to improve service delivery and outcomes;
• Evaluate staffing levels, positions, and contracted services in relation to the workload to provide recommendations as to appropriate staffing levels; and • Evaluate the Public Works Department’s organiz ational structure and provide recommendations for improved efficiency and service delivery.
The report that follows represents the results of that review and analysis, which included interviews with Department staff, the City Manager, and each member of t he City Council. The results were based upon these interviews as well as a review of best practices and organizational design, other municipal models, and an assessment of the current departmental environment.
ORGANIZATIONAL ASSESSMENT PROCESS AND METHODOLOGY
The organizational assessment consisted of the following three steps:
A. Document Review
MRG reviewed the City’s budget documents, staff cost allocations, Lighting and Landscape District Engineer Reports, and Department job descriptions to develop an und erstanding of the City’s and Department’s financial position and organizational structure.
B. Staff and Customer Interviews
On January 14, 2021, the project was officially kicked off with a n online meeting that included City Manager David Biggs, Public Works Director/City Engineer Michael Roberts, and MRG Consultants Mike Oliver, Mike Bakaldin and Charlene Harris. Mr. Biggs and Mr. Roberts provided a background overview of the Department as well as critical input and perspective on the history, culture and effectiveness of the City and the Department. The team also discussed and finalized the project scope of services and timeline.
On January 27, 2021 , MRG held on-site interviews with the City Manager, the Public Works Director, and selected Department staff. The interviews focused on the individuals’ roles and responsibilities, their Division’s performance, service delivery, measurements of effectiveness, resource allocation and potential opportunities for improvement. MRG held follow -up phone interviews with the Public Works Director and Superintendent to clarify details and ensure the accuracy of the report findings.
323
City of Hercules - Public Works Department Organizational Review and Analysis Page 3 Municipal Resource Group, LLC Report
In late January and early February of 2021, MRG interviewed each member of the City Council .
The interviews generally focused on service delivery and potential opportunities for improvement.
The complete list of interviewees is found in Attachment A. The interview questions are provided as Attachment B. These served as a guidepost for the interviews, and subse quent questions were asked as issues were further identified or additional clarification was needed.
C. Comparative Municipality Review
The Consultants conducted a desk review of the organizational structures and assigned functions of four comparative municipalities in Contra Costa County . These municipalities included El Cerrito, Pinole, Moraga, and Orinda.
KEY OBSERVATIONS AND FINDINGS
The review and analysis process led to the following key observations and findings. They identify opportunities for improv ement in the Department ’s organizational structure and serve as a roadmap to improve service delivery, operations, efficiencies, and management oversight. The recommendations in the next section are derived from the key observations and findings.
A. Public Works Department
The Public Works D epartment consists of two Divisions: Engineering and Maintenance & Operations.
The Public Works Director/City Engineer manages both Divisions, but is primarily focused on the Engineering Division in his capacity a s the City Engineer . The Public Works Superintendent manages the Maintenance & Operations Division, while dedicating a significant portion of his time to support the Engineering Division. Key findings and observations regarding the Department include:
• The Public Works Department utilizes outside consultants and contractors to provide a significant portion of the Department’s services. Department staff is tasked with managing the contracts and overseeing the work product. The contract model appears to work well for the Department and allows for greater flexibility in managing the resources necessary to deliver services. However, there are challenges in managing the number of contracts and adequately overseeing the work product.
• The Department experienced sig nificant personnel reductions between 2011 and 2014 , dropping from a high of 18 full-time positions to the current 11 full-time positions. • Due to the currently “lean” organizational structure, both the Department’s management personnel (Public Works Director/City Engineer and Public Works Superintendent) spend virtually all of their time performing staff -level work or managing everyday work functions. Currently, neither position has sufficient capacity to perform strategic planning 324
City of Hercules - Public Works Department Organizational Review and Analysis Page 4 Municipal Resource Group, LLC Report
or d evelop and implement new procedures and systems to i mprove infrastructure reliability and work productivity.
• The Department does not perform regular personnel performance evaluations, except for probationary employees and employees eligible for step increa ses, and lacks performance standards and workload measures for most of the key functions .
Consequently, the Department is hindered by a lack of clear expectations within an agreed framework of planned goals, standards, and competence requirements. • The Department does not utilize a work order or computerized maintenance management system (CMMS) . Work assignments are typically distributed verbally and currently there is no formal or informal follow -up process. City -wide, there has been a recent effort by the City Manager’s office to track citizen complaints and service requests via a spreadsheet with an expectation that each complain t/request will be tracked up to final resolution. The City is also exploring implementation of an off-the-shelf work order system that could potentially be used by all departments to issue and track complaints, service requests and internally generated work.
• The Department lacks a succession plan , and the organizational structure does not provide a clear line o f succession for the two leadership positions, Public Works Director/City Engineer and Public Works Superintendent.
B. Engineering Division
The Engineering Division administers the City’s Capital Improvement Program ; reviews and inspects grading and public i mprovements on private development projects ; reviews traffic engineering; issues encroachment and grading permits ; and administers the City’s clean water and sewer lateral certification program s. Engineering staff primarily provide s counter service, address public inquiries, and manage outside consultants and contractors who perform the bulk of the development plan reviews, capital project design, and capital project construction management.
The Division is staffed by a Public Works Director/City Engineer and an Associate Engineer, and is supported by the Public Works Superintendent, who performs public works inspections on encroachment permits and private development projects and assists with capital projects. Key findings and observations for the Engineering Division include:
• Prior to his appointment in 2014 as the Public Works Superintendent, the incumbent served as the City’s Public Works Inspector for over 20 years. Because t he Inspector position has not been filled, the Superinte ndent continues to serve as the primary inspector for development projects, encroachment permits and sewer lateral repairs and replacements. These dual roles result in the Superintendent spending less than the required time managing the maintenance activities. The Associate Engineer serves as his backup. The Superintendent estimates that, on average, inspection and Engineering Division-related responsibilities account for 30 to 40% of his time. • Engineering staff reports that they do not have the capacity to inspect a significant portion of the encroachment permit work, especially the work performed by public utilities. Staff 325
City of Hercules - Public Works Department Organizational Review and Analysis Page 5 Municipal Resource Group, LLC Report
also has limited capacity to actively inspect development projects and ensure compliance with conditions of approval.
• The Engineering Division relies heavily on outside consultants to review plans and specifications for new developments. Staff members report that they no longer have the capacity to review the outside consultant’s development plan review comments . As a result, plan review comments are typically transmitted directly from the consultant to the developer without review by City staff. Further, City staff has limited time to coordinate and manage the outside staff. The lack of City staff review , and coordination of development plan reviews can lead to uneven conformance with City specifications and conditions of approval.
• Virtually, all capital project design, construction management, and project inspection activities are performed by outside consultants. On occasion , Engineering staff will manage a small capital project and perform the construction inspection in-house.
C. Maintenance & Operations Division
The Maintenance & Operations Division is responsible for the following:
• Maintaining the City’s public parks, landscape medians, streets, sidewalks, and facilities; • Ensuring clean stormwater and compliant wastewater discharge into San Pablo Bay through the City’s creek and storm drain maintenance, street sweeping and sewer collection programs;
• Graffiti abatement;
• Addressing illegal dumping; and
• Oversight of the City-wide Lighting and Landscaping Assessment District contracts.
Maintenance & Operations staff’s primary duties include:
• Providing janitorial service to City facilities except for City Hall; • Performing light building maintenance;
• Cleaning and light maintenance of City parks;
• Replacing and repairing streetlights and street signs; • Inspecting sewer lift stations;
• Removing graffiti and illegally dumped materials;
• Temporarily patching potholes;
• Responding to sewer overflows; and
• Performing limited pavement and curb marking maintenance. 326
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The Division is also responsible for overseeing outside contractors who:
• Maintain t he Ci ty’s park and median landscaping, traffic signals, vehicles, sidewalks, roadways, and building and sewer system mechanical and electrical systems; • Provide street cleaning, weed abatement, and pest control services; and • Clean and repair the sewer collection system.
The Maintenance & Operations Division is staff ed by a Public Works Superintendent , four Maintenance Worker I I positions and four Maintenance Worker I positions, with one of the Maintenance Worker I/II positions currently vacant. Key findings and observations include:
• The Public Works Superintendent has insufficient time to organize, direct, and supervise the work of the Maintenance & Operations Division. In addition to his inspection duties, the incumbent supports the Engineering Division as needed, which on average, takes up to 40% of his time. Over the past year, the Superintendent estimated that he spent up to 50% of his time overseeing the City’s energy efficiency and conservation project (Engie).
In effect, the Superintendent has had approximately 10% of available time in the last year to oversee the Maintenance & Operations Division. The Superintendent’s primary office is located at City Hall, with a secondary office at the maintenance yard. • As a result of the Superintendent’s mu ltiple responsibilities, Maintenance & Operations Division s taff is primarily self -directed. Each Maintenance Worker is assigned several parks and buildings to maintain during their workweek. The first half of the typical weekday is spent performing janito rial work in the City’s buildings and park restrooms, inspecting sewer lift stations, and opening and inspecting parks and buildings. The second half of the day is spent resolving issues discovered during the morning, responding to public complaints and se rvice requests, working on minor projects assigned by the Superintendent, inspecting contract maintenance work, or inspecting an assigned zone for issues.
• The Division does not have clearly established standards or expectations for the various routine daily tasks that the staff perform. For example, once a maintenance worker cleans and opens a building and restroom, there is no accepted or set standard as to the minimum number of times the maintenance worker should return to each facility during the day to ensure cleanliness and safety. Further, there is little to no day-to-day supervision of maintenance staff by the Superintendent. Consequently, staff performance and facility conditions are inconsistent due to a lack of clear expectations, accountability, and oversight.
• The Division does not have clearly established response time expectations for the most common requests for service, including pothole repair, street light repair or graffiti removal. Staff members stated that graffiti and illegal dumping requests for service are typically handled within 48 hours, and that street light outages can take up to a week. • The Division does not have the equipment or materials for asphalt work beyond the temporary repair of potholes with cold patch . More permanent asphalt repairs are prioritized and either performed under the annual asphalt maintenance contract or 327
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incorporated into the City’s asphalt management program and performed in later years.
It is the City’s practice to defer permanent patching and repairs to either the annual contracted repair project or the CIP program, which can take years to implement. • Maintenance is primarily conducted in a reactive mode, although there has been an effort to be more proactive. Recently, staff divided the City into eight zones to match the number of budgeted maintenance workers. Each worker is expected to drive through the assigned zone at leas t once during the calendar month to identify potholes, faded pavement markings and street signs, graffiti, and any other potential issues. The zones are rotated each month so that there is a fresh set of eyes looking for items in need of repair or replacement.
• The Division does not formally track completed or outstanding work, resulting in the lack of a potential work backlog. However, Division staff members were consistent in the belief that there were no outstanding items or projects in need of immediate attention.
That belief is partially supported by the following:
▪ In the last two years, the Division had the entire sewer collection system cleaned and video inspected by contract. Per the Public Works Superintendent, the City only experiences, on average, one sanitary sewer overflow per year; ▪ In the last two years, all street name signs were replaced by staff; ▪ The vast majority of the City’s streetlights are newer LED fixtures, which have an anticipated service life of at least 15 years, thereby minimizing the number of bulb replacements needed as compared to the older high-pressure sodium streetlights that require replacement every three to five years; and
▪ None of the interviewed staff or Council members highlighted serious issues with the City’s facilities or infrastructure , except for concerns with the condition of the City’s roadways and a perceived long lag time to perform necessary repairs. • Maintenance s taff’s perception that there is no work backlog suggests that the Maintenance & Operations Division is adequately staffed for the amount of work that it performs in relation to the amount of work that is cont racted out. A widely accepted standard is that properly functioning maintenance organizations should have a work order backlog of approximately four weeks.
The backlog allows for proper planning and procurement of necessary contractors, equipment, or supplies prior to the start of work. Longer backlogs lead to poor employee morale due to overwork, loss of confidence that work will be done , and the slow degradation of infrastructure. Shorter backlogs lead to difficulty in keeping maintenance staff focused on priority work, increase unplanned work, and result in falling productivity.
However, the lack of a work order system and historic work and performance data does not allow for quantitative verification that the Division is properly resourced. • Under the City’s Memorandum of Understanding with Local 315, “two Public Works Maintenance Workers will be designated as "Lead Workers" and will receive 5% additional duties pay.” The MOU does not define the expected duties and responsibilities 328
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of th e “ Lead Worker.” The Department practice has been to give lead pay to one Maintenance Worker II to assist the Public Works Superintendent in overseeing the landscape contract and for another Maintenance Worker II to assist the Public Works Superintendent in overseeing the street lighting system and sewer lift stations. The actual authorities and expectations of the two maintenance workers designated as “Lead Workers,” both in terms of contract oversight and providing direction or technical and functional supervision to other maintenance workers, is not clearly defined or understood by staff. Typically, a Lead Worker, consistent with position classification standards, is defined as an employee who has one or more employees assigned to their area of expertise and who directs, plans, schedules, assigns, and reviews the work of assigned employee(s). Lead Workers do not have supervisory authority. • In the absence of the Public Works Superintendent (vacations, etc.) , it has been the practice to assign one of the two “Lead Workers” to assume some of the duties of the Public Works Sup erintendent. The acting assignments do not typically come with additional pay unless the absence is for two weeks or more. Additionally, there appears to be inconsistent communication to maintenance staff when an acting assignment is made. This results in a lack of clarity about assigned duties and reporting expectations during the acting assignment.
• The Division has not instituted an employee standby procedure for after -hours emergencies. The c urrent practice is for Police Dispatch to first contact the Superintendent for after-hours emergencies . The Superintendent is expected to be available for requests for service or assistance. When the Superintendent is not available, Police Dispatch works down the list of maintenance workers, and if no staff are contacted, the issue goes unaddressed. One exception are sewer overflow calls, where Dispatch has the option to call the City of Pinole collection staff for assistance. • The Division provides weekend coverage fo r parks and facilities with full -time staff by assigning two Maintenance Workers a Wednesday through Saturday shift and two Maintenance Workers a Sunday through Wednesday shift. All other maintenance staff work Monday through Thursday , except for the Supe rintendent, who works Tuesday through Friday to ensure adequate staffing and oversight on Friday. • All maintenance staff have credit cards and procure necessary parts by driving to hardware stores and other suppliers. The maintenance yard does not have a central storeroom, nor does there appear to be a system to minimize the number of visits to retail outlets or to procure and store commonly used parts and supplies at the maintenance yard.
• The Division has not mapped or inventoried many of the asset s that it operates and maintains, such as pavement markings, street signs, and trees. The City, as a whole, does not have a Geographical Information System (GIS).
• There currently are staff that have been in the entry-level Maintenance Worker I classification for over 10 years, even though they may have the requisite experience and qualifications to function as a Maintenance Worker II. Operationally, there is no clear distinction between the duties and responsibilities performed by the Maintenance 329
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Worker I or II. While the Maintenance Worker I/II classification could function as a flexible staff classification, the Department is not managing the classification in that way.
COMPARATIVE MUNICIPALITIES
MRG conducted a desk review of the organizational struc ture and functions of public works- related functions in four selected compara ble California municipalities. The four selected municipalities are all small cities or towns in Contra Costa County that rely heavily on contract support to deliver services. All four deliver a range of services similar to the services provided by Hercules, with one exception. Pinole is the only other municipality that operates and maintains a sewer collection system. Pinole is additionally unique in that it is the only selected municipality that operates a wastewater treatment plant, which coincidentally also serves Hercules. Copies of the organizational charts for the four comparative municipalities are provided in Attachments C- 1 through C-4.
All the comparable municipalities are structured differently, with some assigning park maintenance, facility maintenance, janitorial, and median maintenance to their parks and recreation departments. MRG accounted for all positions performing services matching those of Hercules’ Public Works Department, regardless of department. Positions performing functions not found in Hercules, such as wastewater treatment plant staff in Pinole, or recycling center staff in El Cerrito, were excluded from employee counts. The key data are referenced in Table 1, below:
Table 1 – Comparative Municipalities Public Works-Related Functions Agency Population1
Public Roads
(maintained
miles)2
Collection
System
(miles)
Engineering
Staff
O&M
Staff
Total
Public
Works
Employees
Total PW
Employees
/10,000
Population
Pinole 19,500 53 49 3 10 13 6.7
El Cerrito 25,000 72 NA 5 14 19 7.6
Orinda 19,000 92 NA 7 53 12 6.3
Moraga 16,900 63 NA 5 6 11 6.5
Comp
City Avg 20,100 70 49 5 9 14 6.8
Hercules 25,500 55 63 2.54 8.54 11 4.3
1 California Department of Finance Population Estimates - May 2020. 2 Caltrans California Public Road Data - December 2020. 3 O&M staffing reduced to 5 from 7 in FY 2020-2021 to address COVID financial impact. 4 The Public Works Superintendent position was estimated to split time equally between Engineering and Maintenance & Operations.
A review of the organizational charts of the comparable municipalities indicates that each of the four organizations have more management and supervisory positions allocated to oversee public works-related functions relative to Hercules. The higher level of management and supervisory positions allow for increased levels of staff supervision and contract oversight, additional capacity for strategic planning and implementation of workload and performance measurement systems, and improved succession planning.
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As shown in Table 1, above, the data suggests that the Department, as a whole, is understaffed in comparison to the other municipalities, especially after normalizing the number of employees per 10,000 population . When combined with the key findings and observations, MRG believes that the Engineering Division, more specifically, requires additional resources. The primary areas of need are public works inspection and oversight and coordination of outside consultants.
The municipality comparison suggests that the Operations & Maintenance Division is also understaffed. However, t he key findings and observations indicate that the Division could be adequately staf fed and that the existing Maintenance Worker vacancy could be partially reallocated to areas of greater need and priority. A more meaningful assessment of the resource needs of the Department would require at least a year’s worth of workload and performanc e measurement data performed at the desired level of service . The Department could then more accurately ascertain the work that can and needs to be done as opposed to the work that is being done with existing staff and contract support levels.
RECOMMENDATIONS
While it is tempting to assume that increases in staff would solve most operational issues, the reality is that there are limits on the City’s ability to fund increases in permanent staff. For that reason, it is incumbent upon management to implement operational best practices and systems that create efficiencies and enhance the utilization of current resources ; adopt standardized expectations for quality service delivery ; and establish processes that ensure current personnel are as knowledgeable and widely trained as is practicable. With these considerations in mind, the recommendations in this report are focused on enhancing the operations and effectiveness of the Public Works Department.
Our recommendations are organized into three categories to facilitate review and analysis. The recommendations are focused on developing practical and implementable suggestions that will improve the Department’s organizational effectiveness and sustainability. These recommendations are not intended to be i mplemented all at the same time. Some of the personnel recommendations can be considered immediately due to the current vacanc y in the Department, while others can be scheduled for implementation over a longer period of time.
A. Staffing
Staffing recommendations are designed to provide options for addressing the findings. They are not described in absolute terms, but may be modified and implemented in combination with operational modifications. They include responses to address long-term organizational needs and seek to improve employee efficiency.
• Reclassify a vacant Maintenance Worker I/II position an d create a new Public Works Specialist (Inspector) classification.
The creation of a dedicated Public Works Specialist (Inspector) position addresses several of the Department’s most pressing issues:
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▪ By removing the inspection duties from the Superintendent, it frees the Superintendent to provide the necessary oversight and direction to maintenance staff and the time to implement a work order system, performance or workload measures and other management tools.
▪ A common theme during the interviews was that there was inadequate oversight of development projects and encroach ment permit-related work in the City’s right -of- way. A full-time dedicated inspector would ensure a more regular and consistent set of eyes in the field.
▪ The new position could assume some of the duties currently performed by the Associate Engineer, such a s overseeing the sewer later al inspection program and viewing the sewer lateral CCTV footage, freeing the Associate Engineer to review and coordinate the work of outside consultants.
▪ The Specialist could be assigned oversight of the City-wide landscaping c ontract, which would partially offset the loss of the Maintenance Worker position by freeing up the Superintendent and Maintenance Worker II currently tasked with overseeing the contractor.
▪ The City Council and other stakeholders have expressed a desire f or enhanced oversight of the landscape contractor. Assigning the new position to an individual who is trained and experienced in inspecting contract work and enforcing contract provisions, would satisfy that goal.
▪ By titling the new position as a “Specialist” rather than an “Inspector,” the City can add administrative and project management duties to the job specification to make the position more versatile and supportive of other Engineering Division functions .
The City of Pinole uses the Public Works Specialist title for its Inspector role. • Consider creating a new Public Works Supervisor classification.
The creation of a working s upervisor position addresses several of the Maintenance & Operations Division’s most pressing issues:
▪ An appropriately classified position to assist in the oversight and management of the City’s numerous outside contractors and vendors.
▪ A clear line of authority in the absence of the Superintendent. ▪ A path of succession and promotion within the Division. ▪ A position to assist in the development and implementation of needed system improvements discussed in the recommendations below.
The City could consider filling this position as additional funding becomes available.
Alternatively, this position could be eval uated in anticipation of a vacancy in the Maintenance & Operations Division.
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• Consider shifting janitorial duties for all City buildings and potentially park restrooms from full-time staff to contract services.
Currently, full -time maintenance workers prov ide janitorial services to City facilities except for City Hall, which has a janitorial contract. Several maintenance workers spend the first hours of each daily shift cleaning all City facilities, including park restrooms.
Interviewed staff believed that janitorial service could be provided more efficiently and cost-effectively by a janitorial contractor , with building cleaning occurring after hours in the evenings. The City could consider this transition as additional funding becomes available. Alternatively, this transition could be evaluated in anticipation of a vacancy in the Maintenance & Operations Division. In the absence of a work order system, the Department would first need to track staff hours spent on janitorial services to verify the staffing c urrently committed to janitorial services, obtain an estimate of the square footage of all City buildings, determine a potential range of costs for contract janitorial services, and determine if there are cost savings and service benefits to replacing staf f with contract services.
• Consider creating a Maintenance Aide classification and shifting the weekend parks and facilities duties from two full-time Maintenance Workers to one full-time Maintenance Worker supported by part-time staff.
Two full -time mainte nance workers provide janitorial and porter services during the weekends to City parks and other open facilities. The two full -time employee configuration is not varied by season or usage , resulting in potential overstaffing during bad weather or off -season and potential understaffing on holiday or peak usage weekends. Using part-time staff to perform the mostly menial weekend duties would be more cost-efficient and allow greater flexibility in staffing. Greater numbers of staff could be brought in for busy weekends and lower numbers for off-season, low-usage weekends.
The City could consider this transition as additional funding becomes available.
Alternatively, this recommendation could be evaluated as part of the recommendation to consider expanding the contract janitorial service s in anticipation of a vacancy in the Maintenance & Operations Division.
• Consider using the Maintenance Worker I/II as a flexibly staffed classification and/or better differentiate between the two levels.
Using the Maintenance Worker I/II as a flexibly staffed classification allows qualified staff to progress from Maintenance Worker I to Maintenance Worker II once the employee’s performance, experience, skills, and knowledge clearly demonstrate a promotion is warranted. Flexible staffing is a commonly used administrative tool that recognizes positions where the organizational need for assigning work spans more than one class level. In a flexibly staffed p osition, an employee may be initially appointed to one class level (e.g., the entry level), and then be promoted to the next level (e.g., the journey level) without a competitive process. The most common flexible staffing involves entry - and journey-level classifications. Certain positions may be permanently allocated at the lower 333
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level because the duties do not warrant an upgrade to the higher level no matter how well an incumbent performs the duties. However, this does not appear to be the situation in the Department, since no clear distinction is made between the work performed by the Maintenance Worker I and II classifications. A decision to use the Maintenance Worker I/II classification as a flexibl y staffed classification would allow maintenance wor ker incumbents to promote from the entry -level to the journey-level classification once the employee’s performance clearly demonstrates a promotion is warranted. • Consider creating a Senior Civil Engineer classification.
Adding a Senior Civil Engineer classification gives the Department the flexibility to promote qualified staff from Assistant to Associate to Senior once the employee’s performance, experience, skills, and licensing clearly demonstrate a promotion is warranted. Adding the classification would potentially increase retention, which is critical for the Department, since there is only one Engineer position. Additionally, if the Department hires or promotes to the senior level classification, it provides a more likely potential candidate for Public Works Director/City Engineer for purposes of succession planning and organizational continuity.
B. Organizational Modifications
These recommendations focus on improving the D epartment’s effectiveness. The recommendations also include enhancem ent of support services and realignment of internal assignments.
• Ensure that Engineering staff coordinates and reviews outside reviewer comments for development projects prior to forwarding to developers/applicants.
Currently, Engineering staff does not have the capacity to review and coordinate the work of its consultants tasked with reviewing development project plans. If the City creates and fills the recommended Public Works Specialist position and reassigns some of the Associate Engineer’s current duties to the Specialist, such as overseeing the sewer lateral inspection program and viewing the sewer lateral CCTV footage, the Associate Engineer will have additional capacity to review and coordinate the work of outside consultants. • Provide enhanced oversight of the City-wide landscape contract.
As previously mentioned, the proposed Public Works Specialist /Inspector would be a fitting position to oversee the City-wide landscape contractor. The new position would primarily be field oriented and expected to drive throughout the City inspecting work in the City’s right -of-way. Monitoring the landscape work is a sensible add-on to the position’s field duties , and provides the City with a higher level of oversight , since the Specialist will be trained and experienced in inspecting contract work and enforcing contract provisions.
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Alternatively, the proposed Public Works Supervisor position could oversee the City-wide landscape contractor , and the Public Works Specialist /Inspector could be assigned additional duties in the Engineering Division to allow the Associate Engineer to focus more time on outside consultant oversight.
• Relocate the Public Works Superintendent to the Maintenance Yard.
The Public Works Superintendent should be permanently housed at the Maintenance Yard to provide appropriate oversight, coordinate work, and generally be more visible to Maintenance & Operations staff.
• Establish performance or workload measures for the Department.
It is important to establish performance measures and goals to ensure that staff is delivering projects and services within established standards and expectations.
Performance and workload measures also provide a meaningful way to justify additional resources, if necessary.
The best measures are derived from the perspective or expectations of the customer. For permits and approvals, that would include residents, contractors, or developers, while for capital projects and mainte nance services , that would include either residents, other departments, or a combination of both. Performance measures should cover timeliness, quality of services, customer satisfaction and/or cost. A typical outcome -based service objective may be to process an encroachment permit within a specified time period. The objective would be confirmed by the public as a desirable level of service. The actual performance measure would be the percent of permits over a given period of time processed within the desired timeline.
The absence of performance measurement does not necessarily mean that the staff does not focus on its customers or is not effective. However, a properly implemented performance measurement system ensures that staff understand s its customers’ needs and can focus on meeting and/or exceeding those expectations. • Establish clear timelines for response to the most common requests for service.
Develop a response matrix for the most common service requests that includes a timeline for resp onse. In setting the timelines, staff should be realistic with its ability to consistently meet the timeline. Customers typically are understanding in non-emergency situations if they are informed of the expected response time and observe that the issue was addressed in the stated time. Both staff and customers will generally be more satisfied with a 99% response rate for a two workday graffiti abatement timeline rather than a 50% response rate with a one workday graffiti abatement timeline. As a possible enhancement to c learly communicat ing the response commitment to internal staff, citizens, and the City Council at the time of the request, the response matrix could be posted to the City’s website. If properly tracked and managed, the response matrix could be used as a performance measure.
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• Clarify expectations, standards, and frequency of inspection for the Maintenance & Operations Division’s monthly public right-of-way inspection program.
Develop a checklist that clarifies expectations for the Maintenance Workers assigned to perform the monthly inspections of the City’s infrastructure. This would be a good task to track via the work order system.
• Consider establishing a standby procedure and rotation that incorpora tes all qualified maintenance staff.
The current practice of solely relying on the Superintendent for after -hours emergency calls is not sustainable. The maintenance staff could be cross trained in the practices and procedures of the most common after hour emergency situations and be given the opportunity to be placed on a standby list. The City has an existing standby provision in the MOU with Local 315, which may need to be modified to ensure it meets the City’s needs and budget limitations. As it stands now, the City is obligated to pay a cash amount on top of an hourly rate for standby, which is a fairly generous provision. With the proliferation of cell phones, standby is no longer the burden it was in the past, where a standby employee could not leave his/her house while on call or had to find a phone after being paged . Today, a standby employee is free to leave their home , with only the limitation of staying within one hour’s driving distance of the City. Another potential cost saving measure would be to assign weekend standby to employees normally assigned to work weekends. A final consideration is to incentivize staff to resolve emergency situations by phone, where appropriate, without having to respond in person. A typical provision would be to pay a half-hour minimum for any call resolved by phone. • Ensure performance evaluations are completed consistently and in a timely manner.
The City does not have a formal performance management program. Rather, department heads are expected to complete annual e mployee performance evaluations for each respective performance evaluation period. While the Public Works Department has done a good job of completing performance evaluations for probationary staff on a timely basis, performance evaluations have not been completed in a consistent or timely manner for Department staff who have successfully completed their probationary periods. Performance evaluations will be especially important once the Department implements performance and workload measures. Late performance evaluations send a message that employees are not important enough to set aside sufficient time to conduct evaluations in a timely manner, which can negatively impact morale and productivity. The Public Works Director should ensure that evaluations for all Department employees are conducted in a timely manner.
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• Establish consistent and well -defined expectations and lines of authority in the Superintendent’s absence and clarify when “Additional Duties” pay will be applied.
Currently, there is a lack of clarity regarding who is in charge when the Superintendent is absent. One of the issues appears to be inconsistent communicati on about which “Lead Worker” is in charge, especially during absences of a week or less. Another issue appears to be that the “ Lead Workers” don’t understand or accept the expected responsibilities during brief absences, since it appears they are not given “Additional Duties” pay. These issues of “ Additional Duties” pay and “ Lead Worker” assignment s would be resolved should the Department adopt the recommendation to establish a Public Wo rks Supervisor classification. Typically, the assignment of duties to cover during an absence is assigned to a lower -level classification within the organizati on’s classification hierarchy.
With the addition of the Public Works Supervisor, any work necessitated by the absence of the Public Works Superintendent would be assign ed to the Public Works Supervisor.
Nevertheless, the City should develop a policy or procedure that clarifies when either the “Additional Duties” or “work in a higher-class” MOU provisions apply when an employee is requested to assume some or all of the duties of his/her supervisor. • Better define the “lead worker” language in the Local 315 MOU.
The City should clarify the expectations and responsibilities of those maintenance workers receiving the “Lead Worker” pay . Better definition will help clarify lines of authority, especially in the absence of the Superintendent.
C. Technical and Equipment Enhancements
These recommendations focus on enhancing operational effectiveness, providing essential systems management and equipment to improve productivity, and providing data to avoid costly repairs or service interruptions.
• Implement a basic work order and tracking system to begin tracking work output and scheduling recurring preventative maintenance activities.
There are numerous off -the-shelf work order systems or computerized maintenance management systems (CMMS) that the Department could implement fairly quickly and inexpensively. Such a system would allow the Department to start scheduling and tracking work to ensure items are not missed. The system, if properly installed and managed, will assist in establishing appropriate accountability measures , allow perform ance measurement of responses to service requests, and reporting work output and performance measures to the City Manager, City Council and the public. A work order system will also allow the Maintenance & Operations Division to schedule recurring maintenance items, such as storm and roof drain and gutter cleaning , and ensure they are completed on schedule and documented. Implementation of the system will require a significant up -front effort on the part of the Superintendent or the proposed Public Works Supervisor position.
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• Start mapping and inventorying maintained assets during the monthly inspection program.
As part of their monthly inspections, assign maintenance staff to begin mapping and inventorying the inspected assets within their inspection zones. The initial mapping and inventorying could be done on paper. Once mapped and inventoried, an employee should be designated as the keeper of the master inventory list and map to ensure all additions, deletions, or corrections are funneled through one person. Ultimately, the data could be added to a City-wide Geographic Information System.
• Develop an agreement with the City of Pinole or another neighboring agency to gain access to pavement patching equipment to improve road maintenance.
Gaining access to an asphalt patch truck on a scheduled basis will allow the Maintenance & Operations Division to make more permanent repairs in -house. This would resolve concerns about the length of time involved in making the repairs via the annual pavement contracts.
PROPOSED ORGANIZATIONAL STRUCTURE
A recommended Department organizational design model is provided in Attachment D. The recommended model is based on an objective analysis of interview input, available data, MRG knowledge of organizational design practices, and where appropriate, reference to the comparative municipal analysis. The rationale for the recommended structural changes is specified throughout the report. The recommended organizational structure provides the following benefits:
• Reallocates Department staff to areas of greatest need – public works inspection, outside engineering consultant oversight, and landscape contract oversight through the creation of a Public Works Specialist position.
• Creates a Public Works Supervisor classification that provides for both staff development opportunities and succession planning.
• Reallocates staff resources and responsibilities to provide adequate management and supervisory-level staff to develop and implement necessary procedures and systems for performance and workload management.
CONCLUSION
The Public Works Department provides important services to the community. Our proposed recommendations are intended to provide the Department an unbiased and objective view of the organization’s current status and potential o pportunities to address the identified areas of improvement. The process to implement the proposed recommendations will take time and perseverance, considering current staffing and resource limitations. A measured and incremental approach, combined with strong leadership in the Department, and a partnership with the City 338
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Council in making budget decisions and setting priorities, can be successful in implementing the proposed recommendations and in ensuring a more efficient and effective Public Works Department. The outcome will be enhanced quality services to the community. We thank the City Councilmembers, City Manager, and participating Department staff for the opportunity to assist in this process.
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City of Hercules - Public Works Department Organizational Review and Analysis ATTACHMENT A Municipal Resource Group, LLC Report
ATTACHMENT A
LIST OF INTERVIEWEES
City Council Members
Chris Kelley, Mayor
Dion Bailey, Vice Mayor
Alexander Walker-Griffin, Councilmember
Dan Romero, Councilmember
Tiffany Grimsley, Councilmember
City Staff
David Biggs, City Manager
Michael Roberts, Public Works Director
Jeff Brown, Public Works Superintendent
Jose Pacheco, Associate Engineer
Eric Wright, Maintenance Worker II
Vergel Botin, Maintenance Worker I
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ATTACHMENT B
LIST OF INTERVIEW QUESTIONS
City Council Interview Questions
1. Which Public Works Department services – development services, capital projects, and maintenance - are you most familiar with as a Council Member? as a customer?
2. For each of the three broad Public Works areas of responsibility - development services, capital projects, and maintenance – what is your overall experience or impression?
3. What do you believe is working well in the Public Works Department?
4. What do you believe needs improvement in the Public Works Department?
5. Given funding and staffing constraints, which services or responsibilities do you believe deserve the highest priority?
6. Do you have any specific recommendations for service enhancement, efficiency gains, or additional sources of revenue to fund improvements?
7. Is there anything you would like to add that we have not covered today?
City Staff Interview Questions
1. How long have you worked for the City in your current position? overall?
2. What are your key duties and what percentage of your time is spent on each key duty?
3. Are your duties, performance expectations, and work unit goals clearly defined and understood by you?
4. In your absence, who performs your duties?
5. Do you or anyone in your unit manage any outside staff or contracts? a. What is the annual value of each contract and how much time is spent managing each contract?
b. Do you believe that contracting is the best way to service those functions? c. Are there any other functions that you believe could be better performed or supported by contract, another department or outside agency?
6. Do you have the appropriate resources and authority to achieve the objectives of your work unit? If not, what do you believe you need?
7. What are the most critical issues facing your work unit right now? Over the next 3 years?
8. What are your unit’s strengths? Its weaknesses?
9. What do you believe your work unit should be doing that it is not? Projects? Tasks?
10. Do you believe your work unit is staffed properly? What changes would you recommend?
11. Do you have any suggestions related to your unit’s or Department’s current organizational structure/assignment of tasks to make it more effective and efficient?
12. What do you feel is working well with the Public Works Department overall?
13. What needs to improve with the Public Works Department overall?
14. Is there anything you would like to add that we have not covered today? 341
City of Hercules - Public Works Department Organizational Review and Analysis ATTACHMENT C-1 Municipal Resource Group, LLC Report
ATTACHMENT C-1
CITY OF PINOLE
Organizational Chart
Development Services
Director/City Engineer
Public Works Manager
Public Works
Supervisor
Maintenance Worker
(5)
Treatment Plant
Manager
(not counted)
Public Works
Supervisor
(Collections)
Maintenance Worker
(2)
Senior Project
Manager
Public Works Specialist
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ATTACHMENT C-2
CITY OF ORINDA
Organizational Chart
Assistant City
Manager/Public
Works Director
City Engineer
Senior Civil
Engineer (2)
Public Works
Inspector
Assistant
Engineer
Public Works
Maintenance
Supervisor
Maintenace
Worker III
Maintenance
Worker II
Sr. Admin
Assistant
Director of Parks
& Recreation
(not counted)
Facilities & Parks
Supervisor
Facility
Maintenance
Worker II
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ATTACHMENT C-3
TOWN OF MORAGA
Organizational Chart
Public Works
Director/Town
Engineer
Senior Civil
Engineer
Associate Civil
Engineer
Engineering
Technician
Manager Public
Works/Parks
Maintenance
Senior
Maitenance
Worker
Lead
Maintenance
Worker
Maintenance
Worker (3)
Administrative
Assistant
344
City of Hercules - Public Works Department Organizational Review and Analysis ATTACHMENT C-4 Municipal Resource Group, LLC Report
ATTACHMENT C-4
CITY OF EL CERRITO
Organizational Chart
Public Works
Director/City Engineer
Senior Engineer
Associate Engineer
Engineering Technician
Operations &
Environmental
Services Manager (0.5)
Maintenance
Superintendent
Maintenance
Leadworker (2)
Maintenance Worker
(4)
Management Assistant
Management Assistant
Recreation Director
(not counted)
Aquatics & Facilities
Supervisor (0.5)
Custodial Maintenance
Lead Worker
Custodians (4)
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City of Hercules - Public Works Department Organizational Review and Analysis ATTACHMENT D Municipal Resource Group, LLC Report
ATTACHMENT D
HERCULES PUBLIC WORKS DEPARTMENT
Proposed Organizational Structure
Public Works
Director/City
Engineer
Public Works
Superintendent
Public Works
Supervisor
(New)
Maintenance
Worker I/II (6 or 7)
Associate Engineer
Public Works
Specialist/Inspector
(New)
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SUMMARY OF BUILT AND APPROVED RESIDENTIAL UNITS AS OF FEBRUARY 28, 2022
Since January 1, 2020, the following residential projects have been completed and received certificates of occupancy:
• Bayfront Block N (“The Exchange”): 172 multi-family units (162 apartments, plus 10 townhouses) • Bayfront Blocks Q & R (“The Grand”): 232 apartments
Other projects which have approved entitlements but which have not yet applied for building permits include:
• Bayfront Blocks M & P (“The Mint”): 267 apartments
• Bayfront Block O (“The Harbor House”): 120 apartments • Sycamore Crossing: 120 townhouses
• Hill Town: 598 multi-family units
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111 Civic Drive
Hercules, CA 94547City of Hercules
Legislation Details (With Text)
File #: Version: 122-094 Name:
Status:Type: Discussion/Action Item Agenda Ready
File created: In control:3/2/2022 City Council
On agenda: Final action:3/22/2022
Title: Extension of Lew Edwards and FM3 Contract to the Lew Edwards Group Contract for Polling and Strategic Communication Services for Ballot Measures to Extend the Utility Users Tax, and the Viability of Becoming a Charter City for the Limited Purpose of Increasing the Real Property Transfer Tax
Recommendation: Adopt a Resolution authorizing the City Manager to execute an agreement for Election Opinion Poll Services with the Lew Edwards Group for an amount not to exceed $131,250 subject to the City Attorney's review and available budget appropriations.
Sponsors:
Indexes:
Code sections:
Attachments: Staff Report - Lew Edwards Contract Ext combined SRs.pdf Attach 1 - Resolution.pdf
Attach 2 - Exh A - Exh B - LEG Contract Extension Exhibits A&B.pdf Attach 3 - LEG.FM3.Summary.PollingHighlights.pdf
Attach 4- 220-6254 City of Hercules Community Issues Survey - Council Briefing - D3A.pdf Attach 5 - 220-6254-F City of Hercules Community Issues Survey (Phone).pdf Action ByDate Action ResultVer.
Extension of Lew Edwards and FM3 Contract to the Lew Edwards Group Contract for Polling and Strategic Communication Services for Ballot Measures to Extend the Utility Users Tax, and the Viability of Becoming a Charter City for the Limited Purpose of Increasing the Real Property Transfer Tax
Recommendation: Adopt a Resolution authorizing the City Manager to execute an agreement for Election Opinion Poll Services with the Lew Edwards Group for an amount not to exceed $131,250 subject to the City Attorney's review and available budget appropriations.
City of Hercules Printed on 3/2/2022Page 1 of 1
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REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of March 8, 2022
TO: Mayor and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
SUBJECT: Extension of Contract with Lew Edwards and FM3 for Polling and Strategic Communication Services related to Ballot Measures to Renew the existing Utility Users Tax, and the Viability of Becoming a Charter City for the Limited Purpose of Increasing the Real Property Transfer Tax
BACKGROUND:
At the Council meeting of February 22, the Council received a report and recommendation from staff regarding the adoption of a resolution authorizing the City Manager to execute an agreement for Election Opinion Poll Services with the Lew Edwards Group for an amount not to exceed $131,250 subject to the City Attorney’s review and available budget appropriations.
At the February 22 meeting, Council directed that the matter be continued until the next regular meeting, to follow a broader Council discussion regarding the UUT and Charter City/RPTT proposals.
Earlier this evening a further discussion of the proposed measures took place, and so the matter of the Consultant’s contract is now before you. The staff report from the February 22 meeting is attached, for your information.
RECOMMENDATION ACTION:
Adopt a resolution authorizing the City Manager to execute an agreement for Election Opinion Poll Services with the Lew Edwards Group for an amount not to exceed $131,250 subject to the City Attorney’s review and available budget appropriations.
Attachments:
349
1. Staff Report and related agenda items from the meeting of February 22, 2022 Regarding the Extension of Contract with Lew Edwards and FM3 350
REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 22, 2022
TO: Mayor and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
SUBJECT: Extension of Contract with Lew Edwards and FM3 Contract to the Lew Edwards Group for Polling and Strategic Communication Services for Ballot Measures to Extend the Utility Users Tax, and the Viability of Becoming a Charter City for the Limited Purpose of Increasing the Real Property Transfer Tax
RECOMMENDATION ACTION:
Adopt a resolution authorizing the City Manager to execute an agreement for Election Opinion Poll Services with the Lew Edwards Group for an amount not to exceed $131,250 subject to the City Attorney’s review and available budget appropriations.
FISCAL IMPACT:
The total contract extension costs for the next phase of Polling and Strategic Communication Services is a not -to-exceed amount of $131,250. Task o ne services , detailed in Exhibit A, shall not exceed $63,750, and project management services will be charged a rate not to exceed $7,500 per month for a 9-month period, or $67,500.
The cost of designing, printing , and mailing informational mailers is not included in t he contract extension. The proposed Lew Edwards Group scope of work presumes that the consultant will provide word copy content for educational materials and the City will procure for design/print/mail services separately. Staff will return to Council for an additional allocation for educational materials in the near future.
EXECUTIVE SUMMARY:
In late 2021, the City awarded a contract to the Lew Edwards Group, and FM3 Research to determine the public opinion of registered voters regarding 1) the feasibility of going to 351
the voters in November 2022 or November 2024 to extend the existing Utility Users Tax (UUT) prior to its expiration on January 1, 2025, and 2) the viability of becoming a charter city for the limited purpose of increasing the Real Property Transfer Tax (RPTT).
Lew Edwards and FM3 Research completed the public opinion survey and made a presentation about their findings and recommendations related to the UUT and RTTP initiatives on February 9, 2022. A summary of the polling results and the associated PowerPoint presentation is attached for your review (Attachment 1 and Attachment 2).
The results of the public opinion survey revealed that City is in a strong position to renew its existing, voter-approved utility users tax (UUT) measure in November 2022. The public opinion of Hercules becoming a Charter City for the purpose of adopting a local Real Property Transfer Tax (RPTT) was mixed. Thirty-nine percent (39%) of voters polled were in support, thirty -nine percent (39%) were opposed, and twenty percent (20%) were undecided. Based on these findings, Lew Edwards recommended that the City further educate and engage the community around the potential Charter City/RPTT measure and conduct another public opinion survey to further evaluate its feasibility for placement on the November 2022 or 2024 election ballots.
After receiving the report, Council directed staff to return with a proposal from Lew Edwards and FM3 for additional education and polling services.
BACKGROUND AND ANALYSIS:
The Lew Edwards Group and FM3 propose to provide the following consulting services to the City of Hercules (beginning March 1, 2022, and projected to end on November 15, 2022):
• Through subcontractor FM3 Research, develop a second dual-mode survey questionnaire of approximately 20 minutes for up to 400 City of Hercules respondents to assess additional measure viabilities (phone interviews will have English/Spanish language capacity)
• Design, recommend and provide word copy content for Communications Toolkit and informational materials/outreach (City to design, print and mail at its own expense outside of this agreement)
• Review survey data, analyze results , and present a detailed analysis of poll findings
• Prepare briefing materials to the City Council and complete a Final Report • Review and advise on all ballot measure components and staff reports.
Attachments:
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1. Attachment 1 - Resolution Authorizing the City Manager to Execute an Agreement Extension with the Lew Edwards Group and FM3 Research for an amount not to exceed $131,250 for Tax Measure Advisory Work
2. Attachment 2 - Exhibit A – Task One Scope of Services & Exhibit B – Comp Schedule for Task Two
3. Attachment 3 - Summary Report of January 2022 Community Survey Result
4. Attachment 4 – Council Presentation on January 2022 Community Survey Result
5. Attachment 5 - January 2022 Community Opinion Survey Questions
6. Attachment 6 - November 9, 2021 Award of Contract to the Lew Edwards Group 353