Agenda Packet — Hercules City Council, April 26, 2022

INSTRUCTIONS ON HOW TO PARTICIPATE AND WATCH THE HERCULES CITY

COUNCIL AND PLANNING COMMISSION HYBRID MEETINGS
Attend in Person: Hercules City Council Chambers – 111 Civic Drive, Hercules, CA 94547 Attend via Zoom Teleconference: Details provided below and zoom webinar login, passcode and phone numbers provided on the agenda cover.

Please note: Updated COVID-19 safety protocols will be posted outside the City Council Chambers.

Please review this information before entering the Council Chambers.

How to Submit Public Comments
In Person: Attend meeting at the Hercules City Council Chambers, fill out a public speaker card located on the side table and submit it to the City Clerk.

Via Zoom: Members of the public may submit a live remote public comment via Zoom video conferencing. Download the Zoom mobile app from the Apple Appstore or Google Play. If you are using a desktop computer, you can test your connection to Zoom by clicking here or go to:
https://www.zoom.us/join. Zoom also allows you to join by phone at +1-669-900-6833 or +1-929-205- 6099 or +1-253-215-8782.
• Speakers will be asked to provide their name and city of residence, although providing this information is not required for participation.
• Each speaker will be allowed up to 3 minutes to speak and provide comment. A limit of 30 minutes will be devoted to taking 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 public comments. • Speakers will be muted until their opportunity to provide public comment.

When the Mayor opens the comment period for the item you wish to speak on, please use the “raise hand” feature (or press *9 if connecting via telephone) which will alert staff that you have a comment to provide and press *6 to unmute.

Written Comments Submitted Electronically: All comments received before 3:00 p.m. the day of the meeting will be provided to the City Council prior to the meeting and posted to the City’s agenda website and located by clicking on the “meeting details” tab. Written comments received after 3:00 p.m. will be provided to City Council and posted to the agenda website the following day. Written comments will not be read aloud during the meeting.

Email comments to [email protected]. Please indicate which item on the agenda you are commenting on in the subject line of your email.

Written comments submitted in person or via mail: Additional ways to provide your public comment is to either drop off your comment in person to the front desk receptionist located in the City Hall lobby or to mail your comment to City of Hercules, ATTN: City Clerk – Public Comment (Meeting Date), 111 Civic Drive, Hercules, CA 94547 in time to reach the City Clerk no later than 3:00 p.m. on the day of the meeting or you can submit your comment by telephone by calling (510) 799-8215 no later than 3:00 p.m. on the meeting date.

All public comments will become part of the official meeting record. The City cannot guarantee that its network and/or the website 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 3:00 p.m. on the day of the Council or Commission meeting.

OTHER WAYS TO WATCH THE MEETING

Live on Channel 28: City Council meetings will replay the following Thursday at 7:00 p.m. and Saturday at 1:00 p.m. Planning Commission meetings will replay the following Wednesday at 7:00 p.m. and Saturday at 9:00 a.m.

Video Streamed Live on the City’s Website:

To view City Council and Planning Commission meeting videos online go to: Hercules Meeting Videos.

Instructions to view Live or On-Demand Videos from the City’s website:

1. Go to: Hercules Meeting Videos or
https://hercules.legistar.com/calendar.aspx.

2. Locate the desired meeting and date.

3. Click the associated “Video” link (Video status is as follows):
· Video = Video is available for on demand viewing.
· In Progress = Video is available for viewing during live recording. · Not Available = Video is either unavailable or has not been recorded.

If none of these options are available to you, or if you need assistance with public comment, please contact: Lauren Berges, City Clerk at [email protected] or by calling (510) 799-8215.

Americans with Disabilities Act: In compliance with the Americans with Disabilities act of 1990, if you need special assistance to participate in a City Meeting or if you need a copy of the agenda, or agenda materials in an appropriate alternative format, please contact the City Clerk’s Office at (510) 799 -8215.

Notification at least one week prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.

Please note: Updated COVID-19 safety protocols will be posted outside the City Council Chambers.

Please review this information before entering the Council Chambers.

Tuesday, April 26, 2022
7:00 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
Lauren Berges, City Clerk
Meeting Agenda
Zoom ID: 889 9756 4520
Zoom Passcode: 301630
Zoom Phone Number: 1-669-900-6833
1 April 26, 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. REGULAR MEETING – 7:00 P.M. CALL TO ORDER - ROLL CALL II. PLEDGE OF ALLEGIANCE
III. MOMENT OF SILENCE
IV. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS
V. AGENDA ADDITIONS/DELETIONS
VI. 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). If attending in-person, please fill out a speaker card and provide to the City Clerk. 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.

VII. CONSENT CALENDAR

1. 22-152
Minutes
Recommendation: Approve the Regular Meeting Minutes of April 12, 2022.

April 12, 2022 Meeting MinutesAttachments:

2. 22-141 Emergency Declaration Extension
Recommendation: Adopt a Resolution extending the Declaration of Local Emergency by 30 days to June 1, 2022.

Staff Report - Emergency Delcaration Extension - 032222 Attach 1 - Resolution - Emergency Declaration Extension Attachments:

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2 April 26, 2022City Council Meeting Agenda

3. 22-149 Award of Construction Contract for the Baywood Tree Replacement Project
Recommendation: Adopt a resolution authorizing the City Manager to execute a contract with Desert Parks Landscaping for the Baywood Tree Replacement Project in the amount of $140,000 and up to a 5% contingency of $7,000 for a not to exceed total contract amount of $147,000 to replace 34 nuisance trees; and, waiving an inconsequential irregularity in Desert Parks Landscaping’s bid.

Staff Report - Baywood Tree Replacement Contract Award - 042622 Attach 1 - Resolution - Baywood Tree Replacement
Att 2 - Tree Removal & Replacement Map
Att 3 - Tree Root Exhibit
Att 4 - New Tree Exhibit
Att 5 - Bid Protest Response
Attachments:

VIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-147 Introduction of the proposed Five-Year Capital Improvement Program (CIP), FY 22-23 Sewer Enterprise and Internal Service funds budget Recommendation: Receive an introduction on the proposed Five-Year CIP, FY 22-23 Sewer Enterprise and Internal Service funds budget.

Budget Intro - CIP_Sewer_ISF_SR
Attach 1 - Introduction of a Five-Year CIP
Attach 2 - Introduction of Sewer Enterprise Fund FY 22-23 Proposed Budget Attach 3 - Introduction of Internal Service Funds FY 22-23 Proposed Budget Attachments:

2. 22-140 Military Equipment Funding, Acquisition and Use Policy Recommendation: Adopt a Resolution commencing the California Assembly Bill 481 process to authorize Hercules Police Department policy section 709; Military Equipment Funding, Acquisition, and Use (attached).

Staff Report - military equipment policy AB 481 220426 Updated Attach 1 - Resolution AB 481 220426 Updated
AB481
Equipment list
Military Equipment Funding Policy
Military Equipment PPT
Attachments:

3. 22-148 FY 2022/23 Landscaping and Lighting Engineer's Reports Recommendation: Adopt a resolution directing the filing of the Annual Engineer's Reports for the City of Hercules Landscaping and Lighting Assessment District No. 83-2, Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1, Hercules Village Landscaping and Lighting Assessment District No. 2002-2, Baywood Landscaping and

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3 April 26, 2022City Council Meeting Agenda
Lighting Assessment District No. 2004-1, and Bayside Landscaping and Lighting Assessment District No. 2005-1 pursuant to the Landscaping and Lighting Act of 1972.

Staff Report - LLAD Resolution of Initiation SR (04-26-2022) Attach 1 - LLAD Resolution 22-___
Attachments:

4. 22-151 Regulation of Single-Use Foodware Accessories and Standard Condiments in compliance with AB 1276
Recommendation: Discuss adoption of an ordinance to regulate single use foodware accessories and condiments, and provide direction to staff regarding the scope of the proposed ordinance.

Staff Report - single use plastic AB1276 - SR - 220418
Att 1 - draft AB 1276 ordinance goleta
Attach 2 - AB1276
Attachments:

5. 22-143 Adoption of a resolution approving a First Amendment to an Agreement with Hinderliter de Llamas (HdL) in the amount of $115,000 to provide overall administrative oversight of Hercules' American Rescue Plan Act (ARPA) program and to provide Economic Development staffing services for a total, not to exceed amount of $164,500
Recommendation: (1) Adopt a resolution approving a first amendment to an agreement with HdL in the amount of $115,000 to provide overall administrative oversight of Hercules' ARPA programs and to provide Economic Development staffing services for a total, not to exceed amount of $164,500; and (2) Adopt a resolution approving a budget amendment to increase the budget by $115,000 for this contract funded by ARPA fund loss of revenue component.

Staff Report - HdL Contract Amendment SR 04262022
Attach 1 - Reso HdL 1st Amendment
Attach 2 - Resolution - Budget Amendment
Attach 3 - 21-019-A1- Hinderliter de Llamas -ARPA Amendment 1 Attach 4 - Contract - 21-019_-_HdL_ECONSolutions_-_COVID-19_ARPA_Funds_Use__Administration Attachments:

6. 22-142 Authorization To Execute a Contract With Yiftee for a Shop Local/Gift program for an amount not to exceed $65,000 funded by American Rescue Plan Act (ARPA)
Recommendation: Adopt a resolution authorizing the City Manager to execute an agreement with Yiftee for a Shop Local/Gift Card program for an amount not to exceed $65,000 funded by American Rescue Plan Act (ARPA).

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4 April 26, 2022City Council Meeting Agenda
Staff Report - Yiftee Gift Card Program 04262022
Attach 1 - Resolution - Yiftee
Attach 2 - CommCard Yiftee Agreement 2022
Attach 3 - Community Gift Card Program 4-26-22
Attachments:

IX. 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.

X. 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.

XI. ADJOURNMENT
The next Regular Meeting of the City Council will be held on Tuesday, May 10, 2022 at 7:00p.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 enotice from the City’s homepage. Agendas and staff reports may also be obtained by contacting the Administrative Services Department at (510) 799-8215 (Posted: April 21, 2022)

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5 April 26, 2022City Council Meeting Agenda

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.

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6 111 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
Lauren Berges, City Clerk
6:00 PMTuesday, April 12, 2022
Zoom Meeting ID: 878 4732 8596
Zoom Passcode: 146738
Zoom Phone Number: 1-669-900-6833
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 Mayor Bailey called meeting to order at 6:00 pm
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.

1. 22-115 Pursuant to Government Code Section 54957.6 Conference With Labor Negotiators - City Negotiators: Dante Hall, City Manager; Edwin Gato, Director of Finance; relative to the following employee groups:
a. Teamsters Local 315 Employee Organizations
b. Hercules Police Officers Association
c. Hercules Senior Manager Employee Group
d. Confidential Unrepresented Employee Group
e. Mid Management Employee Group

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7 April 12, 2022City Council Meeting Minutes
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 there are no final or reportable actions to report.

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 recognizing Alice McGuigan, a long time police department volunteer who recently passed away.

VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 22-117
Proclamation Recognizing April 14th as Nepal Day in the City of Hercules
Mayor Bailey read aloud the proclamation and presented it to the Ambassador of Nepal and representative Dilli Bhattarai. Members of the City Council provided comments. The Ambassador and Mr. Bhattarai thanked the Council for recognizing April 14th as Nepal Day in Hercules.

2. 22-116
Proclamation Recognizing the Week of April 17th as Volunteer Appreciation Week in the City of Hercules
Mayor Bailey read aloud the proclamation and presented it to the City volunteers. Members of the City Council provided comments. Commander Vasquez commented.

3. 22-123
Hercules Connect Presentation
City Manager Hall introduced Kevin Strauss of GoGov who presented Hercules Connect, a constituent relationship management (CRM) application. Councilmembers commented.

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8 April 12, 2022City Council Meeting Minutes

4. 22-125 Presentation - Update on Rodeo-Hercules Fire Protection District by Interim Fire Chief Darren Johnson
Mayor Bailey pulled the item from the agenda and will have the presentation moved to a future meeting.

IX. AGENDA ADDITIONS/DELETIONS
City Manager Hall has no further additions or deletions.

X. PUBLIC COMMUNICATIONS
Written public comments were received by: Richard Taylor; Elaine Eng.

XI. PUBLIC HEARINGS
None.

XII. CONSENT CALENDAR
MOTION: A motion was made by Council Member Kelley, seconded by Vice Mayor Walker-Griffin, to adopt the Consent Calendar. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.

Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley 5 -

1. 22-126
Minutes
Recommendation: Approve the Regular Meeting Minutes of March 22, 2022.

Approved.

2. 22-120 Execution of Standard CalTrans Agreement to Receive $492,000 in Grant Funding for the Sycamore Avenue Rehabilitation Project Recommendation: Adopt a resolution authorizing the City Manager to execute CalTrans program supplement agreement No. F008 to receive $492,000 in federal grant funding for the Sycamore Avenue Rehabilitation Project.

Approved.

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9 April 12, 2022City Council Meeting Minutes

3. 22-122 Acceptance of the 2021 Streetlight Replacement Project Recommendation: Adopt a resolution accepting the 2021 Streetlight Replacement Project contract with NEMA as complete for a total amount of $142,120 and authorizing the filing of the notice of completion with the Contra Costa County Recorder's Office.

Approved.

4. 22-118
Adoption of a Resolution Amending the Internal Service Fund FY 2021-22 Budget for Information Technology Services increasing its appropriation by $400,000 and authorizing acceptance of reimbursement proceeds from cyber insurance in the amount of approximately $330,000.

Recommendation: Adopt a resolution amending the Internal Service Fund FY 2021-22 Budget for Information Technology Services increasing its appropriation by $400,000.

Approved.

XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-137
Fireworks Celebration
Recommendation: Receive a Report on the Status of the Fireworks Show Scheduled for July 4, 2022, authorize staff to enter into a cost sharing agreement with the City of Pinole.

Presentation by Parks and Recreation Director Christopher Roke.

Councilmembers provided comment. No public comment.

MOTION: Council approves the authorization of staff to enter into a cost sharing agreement with the City of Pinole. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.

Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley 5 -

2. 22-139
Authorization To Execute a Contract With Tripepi Smith, for an Amount Not to Exceed $42,300.26, for Design, Print, and Mail Services Related to the Polling and Strategic Communication Services for Ballot Measures to Extend the Utility Users Tax (UUT), and the Viability of Becoming a Charter City for the Limited Purpose of Increasing the Real Property Transfer Tax (RPTT)
RECOMMENDATION: Adopt a Resolution authorizing the city manager to execute a contract with Tripepi Smith, for an amount not to exceed $42,300.26.

Presentation by City Manager Dante Hall. Councilmembers comment. No public comment.

MOTION: A motion was made by Council Member Kelley, seconded by Council

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10 April 12, 2022City Council Meeting Minutes
Member Grimsley, to adopt Resolution 2022-025. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Council Member D. Romero, Vice Mayor A.

Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley 5 -

3. 22-121
Senate Bill 9: The California HOME Act
Recommendation: Discuss local compliance with new State legislation that provides for ministerial approval of up to two residential units and/or a lot split in residential single-family zones.

Presentation by Community Development Director Robert Reber.

Councilmembers provided comment.

Public speakers: Cordell Hindler; Selina Williams
Council directed staff to draft for Planning Commission's review an ordinance that would allow ministerial regulation of lot splits and additions in single-family residential zones using objective criteria, consistent with SB 9. Staff is to advise the Commission on the viability of criteria and considerations such as: infrastructure capacity; owner-occupancy requirements and enforcement; minimum lot frontage; privacy screening; design (e.g. height, architectural features, colors, materials, roof pitch, etc.) existence of illegal encroachments or other zoning violations; protections against large-small development.

CalMatters article provided by Councilmember Romero to the Planning Commission will be provided to the Commission as information only and is not endorsed by the full Council.

XIV. PUBLIC COMMUNICATIONS
Public speaker: Cordell Hindler
XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

AND FUTURE AGENDA ITEMS
City Staff and Councilmembers reported on local and regional meetings and events.

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11 April 12, 2022City Council Meeting Minutes
XVI. ADJOURNMENT
Mayor Bailey adjourns the meeting at 9:15 p.m.
_________________________________
Dion Bailey, Mayor
Attest:
_______________________________
Lauren Berges, CMC
City Clerk

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12 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of April 26, 2022

TO: Members of the City Council

SUBMITTED BY: Dante Hall, City Manager

SUBJECT: Emergency Declaration Extension

RECOMMENDED ACTION: Adopt a Resolution extending the Declaration of Local Emergency by 30 days to June 1, 2022.

FISCAL IMPACT OF RECOMMENDATION: None as a result of this action, though the City’s response to the coronavirus or COVID-19 pandemic is resulting in increased costs and reductions in revenues.

EXECUTIVE SUMMARY: AB361, signed by Governor Newsom on September 16, 2021, provides that if a local state of emergency remains active for more than 30 days, a local agency must every 30 days by majority vote find that the state of emergency continues to directly impact the ability of members to meet safely in person, or that State or local officials continue to impose or recommend social distancing measures.

DISCUSSION: On March 20, 2020, the City Council ratified the City Manager’s Declaration of a Local Emergency in response to the COVID-19/Coronavirus pandemic. The City Council received an updated report on April 14, 2020. Contra Costa County extended the Shelter in Place/Stay Home Health Order on June 17, 2020, which will continue to be in effect until it is extended, rescinded, superseded, or amended in writing by the Health Officer.

The City Council has extended the emergency declaration on:
 May 12, 2020
 June 23, 2020
 September 8, 2020
 November 10, 2020
 December 8, 2020
 February 23, 2021
 April 27, 2021
 July 13, 2021
 August 10, 2021
 December 2, 2021
 December 14, 2021
 January 25, 2022
 February 22, 2022
 March 22, 2022

13 On June 11, 2021, Governor Newsom issued Executive Order N-08-21, which among other things rescinded his prior Executive Order N-29-20 and set a date of October 1, 2021, for public agencies to transition back to public meetings held in full compliance with the Brown Act.

Governor Newsom signed Executive Order N -15-21 clarifying that cities may continue to meet remotely in accordance with procedures established by prior Executive Orders and on September 16, 2021, signed AB361 which allows cities to continue to meet remotely during proclaimed states of emergency under modified Brown Act requirements that are similar but not identical to the rules and procedures established by the previous Executive Brown Act Orders.

This bill which will sunset on January 1, 2024, would authorize a local agency to use teleconferencing without complying with the teleconferencing requirements imposed by the Ralph M. Brown Act when a legislative body of a local agency holds a meeting during a declared state of emergency, as that term is defined, when state or local health officials have imposed or recommended measures to promote social distancing during a proclaimed state of emergency.

As the Delta and Omicron variant has surged in California, the legislature has taken action to extend the COVID -19 exceptions to the Brown Acts’s teleconference requirements, subject to some additional safeguards. AB361 allows a local agency to use teleconferencing without complying with the Brown Act provisions in any of the following circumstances:

 The legislative body holds a meeting during a proclaimed state of emergency, and state or local officials have imposed or recommended measures to promote social distancing.  The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.  The legislative body holds a meeting during a proclaimed state of em ergency and has determined, by majority vote that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.

AB361 also provides that, if the state of emergency remains active for more than 30 days, a local agency must make the following findings by majority vote every 30 days to continue using the Bill’s exemption to the Brown Act teleconferencing rules:
 The legislative body has reconsidered the circumstances of the emergency; and either of the following circumstances exist:
o The state of emergency continues to directly impact the ability of members to meet safely in person, or
o State or local officials continue to impose or recommend social distancing measures.

The goal of AB361 is “to improve and e nhance public access to local agency meetings during the COVID-19 pandemic and future applicable emergencies, by allowing boarder access through teleconferencing options” consistent with Executive Order N-29-20. The bill contains an urgency clause which became effective upon signing with a sunset of January 1, 2024.

As such, it is recommended that the City Council adopt the attached Resolution extending the Declaration of Local Emergency for another 30 days to May 1, 2022. It is anticipated that the City Council’s next review of the Declaration of Local Emergency will take place at the regular meeting of May 24, 2022. Should the need for a Declaration of Local Emergency end, the City Council could consider terminating the Declaration at an earlier date.

14 ATTACHMENTS:

1. Resolution extending Declaration of Local Emergency to June 1, 2022. 15

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Resolution 22-

HERCULES CITY COUNCIL
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES EXTENDING THE DECLARATION OF LOCAL EMERGENCY BY 30 DAYS TO APRIL 1, 2022

WHEREAS, Section 3-106(1) of the Hercules Municipal Code empowers the Director of Emergency Services/City Manager to proclaim a local emergency if the City Council is not in session and requires that the City Council shall take action to ratify the proclamation within seven days thereafter; and

WHEREAS, conditions of extreme peril to the safety of persons and property have arisen within the City of Hercules, due to the introduction of coronavirus disease 2019 (COVID -19), commencing on or about March 3, 2020, at which time the City Council of the City of Hercules was not in session; and

WHEREAS, the City Manager acting as the Director of Emergency Services proclaim ed the existence of a local emergency within the City on the 15th day of March 2020; and

WHEREAS, on the 20th of March 2020, the City Council adopted Resolution No. 20-015 which ratified and confirmed the Proclamation of Existence of a Local Emergency, as issued by the Director of Emergency Services/City Manager; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 60 days to July 11, 2020, at a regular meeting held on May 12, 2020; and

WHEREAS, Contra Costa County extended the Shelter in Place/Stay Home Health Order on June 17, 2020, and will continue to be in effect until it is extended, rescinded, superseded, or amended in writing by the Health Officer; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 60 days to September 9, 2020, at a regular meeting held on June 23, 2020; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 60 days to November 7, 2020, at a regular meeting held on September 8, 2020; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 60 days to January 6, 2021, at a regular meeting held on November 8, 2020; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 60 days to March 7, 2021, at a regular meeting held on December 8, 2020; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 60 days to May 6, 2021, at a regular meeting held on February 23, 2021; and

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Resolution 22-
WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 60 days to July 5, 2021, at a regular meeting held on April 27, 2021; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 60 days to September 3, 2021, at a regular meeting held on July 13, 2021; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 60 days to November 2, 2021, at a regular meeting held on August 10, 2021; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 30 days to December 2, 2021 at a regular meeting held on October 26, 2021; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 30 days to January 1, 2022 at a regular meeting held on December 14, 2022; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 30 days to January 31, 2022 at a regular meeting held on December 14, 2022; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 30 days to March 2, 2022 at a regular meeting held on January 25, 2022; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 30 days to April 1, 2022 at a regular meeting held on February 22, 2022; and

WHEREAS, the Hercules City Council extended the Declaration of Local Emergency for 30 days to May 1, 2022 at a regular meeting held on March 22, 2022; and

WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order N-08-21 which among other things rescinded his prior Executive Order N -29-20 and set a date of October 1, 2021, for public agencies to transition back to public meetings held in full compliance with the Brown Act; and

WHEREAS, as the Delta and Omicron variants have surged in California the legislature has taken action to extend the COVID -19 exceptions to the Brown Act’s teleconference requirements, subject to some additional safeguards; and

WHEREAS, AB 361 allows a local agency to use teleconferencing without complying with the Brown Act provisions in any of the following circumstances:
 The legislative body holds a meeting during a proclaimed state of emergency, and state of local officials have imposed or recommended measures to promote social distancing.  The legislative body holds a meeting during a proclaimed state of emergency for the purpose of determining, by majority vote, whether as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.  The legislative body holds a meeting during a proclaimed state of emergency and has determined, by majority vote that, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees. 17

Page 3 of 3 ends

Resolution 22-

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that the state of emergency continues to directly impact the ability of members to meet safely in person and further determines that State or local officials continue to recommend social distancing measures, so that the Declaration of Local Emergency is hereby extended by 30 days to June 1, 2022.

BE IT FURTHER RESOLVED that the local emergency shall be deemed to continue to exist for this period unless terminated earlier by the City Council of the City of Hercules.

The foregoing Resolution was duly and regularly adopted at a special emergency meeting of the City Council of the City of Hercules held on the 26th day of April 2022 by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Dion Bailey, Mayor

ATTEST:

Lauren Berges, CMC
City Clerk
18 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of April 26, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Michael Roberts, Public Works Director/City Engineer

SUBJECT: Award of Construction Contract for the Baywood Tree Replacement Project

RECOMMENDED ACTION:

Adopt a resolution authorizing the City Manager to execute a contract with Desert Parks Landscaping for the Baywood Tree Replacement Project in the amount of $140,000 and up to a 5% contingency of $7,000 for a not to exceed total contract amount of $147,000 to replace 34 nuisance trees; and, waiving an inconsequential irregularity in Desert Parks Landscaping’s bid.

FISCAL IMPACT OF RECOMMENDATION:

This contract will be paid for out of the Baywood Lighting and Landscaping District (LLAD) through a no interest loan from the General Fund, which was previously approved by Council and is included in the Adopted FY 21-22 Budget. The loan will be paid off over a 10-year period using revenue from Baywood LLAD assessments.

DISCUSSION:

There are 34 nuisance trees in the Baywood neighborhood, the vast majority of which are on Baywood Lane, whose roots are damaging sewer laterals, water services, and sidewalk; rendering the irrigation system inoperable; and creating tripping hazards in the planter strip (Att #2 Location Map, Att #3 Tree Root Exhibit).

For public safety and health reasons, this project will remove the offending trees and grinding their stumps. Given the City’s steadfast commitment to tree preservation, each tree will be replaced by a more suitable street tree; specifically, Redpointe Maple (Acer Rubrum ‘Frank JR’) and Hackberry (Celtis Sinensis) (Att #4 New Tree Exhibit). The scope of work also includes removing all the roots in the planter strip, repairing the irrigation system, and replacing the sod.

This project was advertised for bids in the West County Times on March 14 & 21, 2022, and in 4 regional plan rooms. A total of 2 bids were received at the bid opening deadline of 2 pm on Thursday, April 5.

19 No. Bidder Name

Bid Amount
1 Desert Parks Landscaping, Inc. $140,000
2 McNabb Construction, Inc. $184,877

Desert Parks Landscaping submitted the low bid amount of $140,000 and is the parent company to Pacific Site Landscaping. Pacific Site Landscaping has been maintaining the City’s LLADs for many years now and previously removed and replaced approximately a half dozen trees on Baywood Lane.

Following the bid opening, McNabb Construction submitted a bid protest. The City’s legal counsel has determined there was a minor irregularity in Desert Parks Landscaping’s bid which was inconsequential and could be waived at the City’s discretion (Att #5 Bid Protest Response). At this time, staff is recommending Council proceed with awarding the contract to Desert Parks Landscaping and waiving the irregularity for the purpose of maintaining a record.

ATTACHMENTS:

1. Resolution

2. Tree Removal and Replacement Location Map

3. Tree Root Exhibit

4. New Tree Exhibit

5. Bid Protest Response

Financial Impact
Description: Expenditure amount not to exceed $147,000.

Funding Source:

Baywood Lighting and Landscaping District $147,000
223-5423-642-10-00

Budget Recap:

Total Estimated cost: $162,000 New Revenue: $
Amount Budgeted: $162,000 Lost Revenue: $
New funding required: New Personnel: $
Council Policy Change: Yes No

20 HERCULES CITY COUNCIL
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES AUTHORIZING THE

CITY MANAGER TO EXECUTE A CONTRACT WITH DESERT PARKS LANDSCAPING FOR THE BAYWOOD TREE REPLACE MENT PROJECT IN THE AMOUNT OF $140,000 AND UP T O A 5% CONTINGENCY OF $7,000 FOR A NOT TO EXCEED TOTAL CONTRACT AMOUNT OF $147,000 TO REPLACE 34 NUISANCE TREES; AND, WAIVING AN INCONSEQUENTIAL IRREGULARITY IN DESERT PARKS LANDSCAPING’S BID

WHEREAS, the Baywood Tree Replacement Project was a dvertised f or bi ds in the West County Times on March 14 & 21, 2022 and in 4 regional plan rooms; and

WHEREAS, a total of 2 bids were received at the bid opening deadline of 2 pm on Thursday, April 5 and upon opening and reviewing the 2 bids received, Desert Parks Landscaping, Inc. submitted the low bid in the amount of $140,000; and

WHEREAS, the second bidder McNabb Construction submitted a bid protest and the City ’s legal counsel has determined the irr egularity in Desert Parks Lan dscaping’s bid was minor an d inconse quential a nd could be waived by the City; and

WHEREAS, the project is fully funded in the FY 2021-22 Budget and will replace 34 nuisance trees that are creating a health and safety hazard.

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 a contract with Desert Parks Landscaping for the Baywood Tree Replacement Project in the amount of $140,000 and up to a 5% contingency of $7,000 for a not to exceed total contract amount of $147,000 to replace 34 nuisance trees; and, waives an inconsequential irregularity in Desert Parks Landscaping’s bid.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 26th day of April 2022 by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Dion Bailey, Mayor

ATTEST:

Lauren Berges, CMC
City Clerk
21 FROG
PAD
PARK

TREES TO BE REMOVED
SYCAMORE TREE (31)
EUROPEAN HACKBERRY (3)

BAYWOOD DISTRICT

TREE REMOVAL & REPLACEMENT

AVOCET DRIVE

SANDERLING DRIVE

BAYWOOD LANE

WILLET STREET

EXHIBIT A
22 Attachment No.3 – Tree Root Exhibit

23 Attachment No.4 – New Tree Exhibit

Redpointe Maple- Acer Rubrum ‘Frank JR’

Hackberry- Celtis Sinensis
24 City of Hercules
111 Civic Drive, Hercules, California 94547
(510) 799-8200 www.ci.Hercules.ca.us

OFFICE OF THE CITY MANAGER
Michael Roberts, Public Works Director/City Engineer

Sent via Regular Mail

April 14, 2022

Mr. David D. McNabb
McNabb Construction, Inc.
dba DK Environmental
3527 Mt. Diablo Blvd. #306
Lafayette, CA 94549-2035

Re: Baywood Tree Replacement Project | Project No. 63052

Dear Mr. McNabb,

On April 5, 2022 the City of Hercules (“City”) received and opened bids for the above- referenced project (“Project”). Desert Parks Landscaping, Inc. (“DPL”) is the apparent low bidder. This letter responds to the bid protest received on behalf of your company, McNabb Construction, Inc., dba DK Environmental (“McNabb”), dated April 6, 2022.

The protest alleges that the bid submitted by DPL is nonresponsive based on DPL’s failure to strictly comply with the corporate signature requirements in Section 3 of the Instructions to Bidders by having the second signature on its bid form provided by an officer of the corporation.

While this minor deviation from strict compliance with Section 3 of the Instructions to Bidders may constitute a minor technical irregularity in DPL’s bid, under well-established California law the City may elect to waive such “inconsequential” irregularities:

“[I]t is further well-established that a bid which substantially conforms to a call for bids may, though it is not strictly responsive, be accepted if the variance cannot have affected the amount of the bid or given the bidder an advantage or benefit not allowed other bidders or, in other words, if the variance is inconsequential” (Bay Cities Paving & Grading, Inc. v. City of San Leandro (2014) 223 Cal.App.4th 1181, 1188 (“Bay Cities”).)

DPL’s bid is guaranteed by its bid security. Legal counsel for the City has advised that the bid security is binding and enforceable regardless of DPL’s failure to strictly conform with the requirements of the Instructions to Bidders on its bid form. Moreover, this inconsequential 25 irregularity does not affect the amount of DPL’s bid and does not give DPL a benefit not allowed other bidders.

In addition, allegations of nonresponsiveness must be evaluated from a practical rather than hypertechnical perspective and based on the public interest:

“They must also be viewed in light of the public interest, rather than the private interest of a disappointed bidder. It certainly would amount to a disservice to the public if a losing bidder were to be permitted to comb through the bid proposal...of the low bidder after the fact, [and] cancel the low bid on minor technicalities, with the hope of securing acceptance of his, a higher bid. Such construction would be adverse to the best interests of the public and contrary to public policy.” (Bay Cities, supra, at 1189; internal quotation marks omitted.)

Based on the foregoing, the City’s legal counsel has determined that the City may elect to waive the inconsequential irregularity in DPL’s bid and award the contract for the Project to DPL as the lowest responsible bidder.

The City appreciates your interest in the Project and wishes you success in future bids.

Sincerely,

Michael Roberts
Public Works Director/City Engineer

c: Desert Parks Landscaping, Inc.

City Manager
City Attorney

26 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of April 26, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Edwin Gato, Director of Finance
Mike Roberts, Director of Public Works

SUBJECT: Introduction of the Proposed Five-Year Capital Improvement P rogram (CIP), and FY 22-23 Sewer Enterprise and Internal Service funds budgets

RECOMMENDED ACTION:

Receive an Introduction on the Proposed Five-Year CIP and FY 22-23 Sewer Enterprise and Internal Service funds budgets.

COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:

The Finance Commission will receive a presentation on the proposed FY 22-23 Budget at their next regular meeting on May 18, 2022. Their comments, if any, will be incorporated into the first public hearing on June 14, 2022.

FISCAL IMPACT OF RECOMMENDATION:

There is no impact from the introduction of the proposed Five-Year CIP and FY 22-23 Sewer and Internal Service funds budgets.

BACKGROUND:

The City of Hercules has worked hard to maintain quality services to the public we serve—in these trying times. Hercules remains a place where people want to lay down roots and raise their families. For continued success, it’s important to plan for the City’s long-term financial stability and preserve the essential services and critical infrastructure we all rely on. We recently asked residents to provide their input on their service priorities. The input from many residents included the following:
 Keeping our community safe
 Planning for long term financial sustainability
 Improving and maintaining public facilities and infrastructure  Keeping public areas and parks safe and clean
 Expanding public transit systems
 Keeping funds local
 Retaining/attracting local businesses
27 With these priorities in mind, this report provides financial planning recommendations for the FY 22- 27 Five-Year CIP, and the FY 22-23 Sewer and Internal Service Funds budgets to manage costs over time. The proposed CIP is a five-year capital improvement plan which identifies projects to construct and maintain the City’s infrastructure in a way that is sustainable.

DISCUSSION:

Five-Year CIP
Hercules’ CIP aims to m aintain and improve the City’s aging public infrastructure. This capital budget emphasizes:

 The unusually large amount of capital work completed and proposed, especially in light of the Regional Intermodal Transit Center (RITC) project solely funded by grants and locally matched transportation projects;
 A “fix it first” approach where proper maintenance of Hercules’ existing infrastructure is prioritized above requests for “new” infrastructure; and  The need for additional revenue to adequately maintain our existing infrastructure.

Public infrastructure includes the City’s streets, sewers, storm drains, transportation, streetlights, trees, buildings, and parks. While this budget plans for five years , the City Council will only appropriate funds for one year or FY 22-23. This CIP and budget will be proposed, along with the City’s operating budget, for adoption by the City Council on June 28, 2022.

The past decade has been a very challenging financial period for the City. Consistent with the “fix it first” approach, many key capital improvement projects were delivered, and the very most has been made of available funding. However, it has become increasingly clear a pay-as-you-go approach and deferring preventative maintenance work are no longer sustainable.

With the City’s finances improving, FY 22-23 looks to reintroduce capital planning and a more robust preventative maintenance program. With these goals in mind, a modest Parks Master Plan and Building Facilities Maintenance Plan are recommended to be funded. These plans will capture and prioritize deferred maintenance needs based upon a comprehensive assessment and identified desires of the community. Both plans will include an ADA (American Disability Act) assessment component.

A 10-year study window will allow this capital improvement work to be planned and budgeted well ahead of time. Undertaking these studies in FY 22-23 will place the City in a strong position to allocate ARPA (American Rescue Plan Act) funding in FY 23-24.

The major capital endeavor in FY 22-23 is the advancement of the Regional Intermodal Transit Center (RITC); specifically, the final design of the Utility Relocation Phase and soliciting for grant funding.

Also programmed is the construction of the Lower Sycamore Sewer Trunk Main Replacement. This $13.5M project is a carryover from the current year as it has not yet received permits from the environmental agencies. A $60K study is proposed to evaluate and potentially design new modular buildings to replace the existing ones in front of City Hall. They will house lockers, bathrooms, and showers for the Police Department using Police Development Impact Fee funds, given they have outgrown their current facilities. A training room and/or workout area may also be included. Primary consideration will be given to expanding the facilities and enhancing equity and inclusion. Lastly, Beechnut Park is scheduled to be designed and constructed using grant funding.

28 Sewer Enterprise Fund
On January 23, 2001, the cities of Hercules and Pinole entered into a joint power agreement for the operation and ownership of the Pinole/Hercules Wastewater Treatment Plant. The City has an undivided fifty percent ownership interest in the Plant, and the City of Pinole has the right and responsibility to manage and operate the Plant. The City retains responsibility for operating and maintaining its wastewater collection system. Also, the City of Pinole maintains the records and accounts for all the wastewater treatment plant transactions.

The City owns and operates the collection system in Hercules, which includes over 60 miles of underground piping and five lift stations. The effluent is treated at the Hercules-Pinole Wastewater Treatment Plant (WWTP), located and operated by the City o f Pinole. Hercules owns half of the WWTP.

The City collects approximately $6 million a year in service charges from over 8,400 connections charged through the County tax roll. Developers also pay impact fees to provide capacity for the wastewater their project generates. The estimated revenue for FY 22-23 is $6 million.

The Sewer Enterprise Fund pays for the sewer system's operations, maintenance, and capital improvement and is restricted. The revenues collected from sewer fees cannot be used for non-sewer- related purposes. FY 22 -23 proposed operating budget is estimated to be $3.4 million; Capital improvements of $2 million, and debt obligation annual payment of $2 million.

Internal Service Funds (ISF)
City operations require the use of buildings, vehicles, equipment, and information technology equipment/infrastructure. The expenditures for these areas are not consistent and fluctuate from year to year. As a result, it is very difficult and not recommended to budget these costs through the normal operating budget.

Instead, the standard for municipal governments is to establish internal service funds to accumulate capital and address these periodic and sometimes large expenditures.

For example, a City building may require a new roof every 15 to 20 years. In order to plan for this replacement and gather the funds necessary for the repair when it becomes necessary, an internal service fund can be used to collect the resources needed to cover the costs at the time it is required.

As an additional example, the City will need to purchase vehicles and expensive equipment to replace existing inventory. Vehicles and equipment often have useful lives from 5 to 10 years. An internal service fund can be u sed to gather the resources necessary to purchase these items when the replacement is required.

The use of internal service funds provides for a smoothing of the costs over the asset's useful life.

This is a better budgeting process because it does not require large allocations in one year and smaller allocations in other years. Instead, the estimate for repairs or replacement is calculated, and allocations are made from the operating budget into internal service funds so that resources are available when required.

The process is as follows:

29 1. Staff identify the costs associated with replacing assets or maintaining facilities,

2. The costs are spread over the useful life of the asset,

3. An annual contribution to the internal service fund is identified,

4. The use of assets by various departments is estimated,

5. Departments are charged their respective portions of the annual cost estimate as revenue to the internal service fund, and

6. Replacement purchases or major maintenance is funded directly from the internal service fund rather than the individual department budgets.

The City currently has three internal service funds, Vehicle replacement, Information Technology (IT) operating and replacement, and Facility Maintenance:

FY 22-23 Planned Expenditures from the Internal Service Funds

Vehicle Replacement ISF
The City will be developing a replacement cycle plan. The model that the City is developing will provide for the replacement of vehicles on a schedule based on age and mileage. There will typically be some vehicles that need to be replaced before the targeted age and mileage threshold and others that can be extended beyond the established schedule. All vehicles will be evaluated using these criteria and assessing the maintenance and gas consumption cost to determine the appropriate replacement time frame. Currently, the City replacement is on a “pay-as-you-go” basis.

For FY 22-23, the budget provides for replacing the following:

 Replace the existing three patrol vehicles that exceeded the dependable service life of a Police patrol vehicle. (Estimated cost: $176,000)

 Replace existing two Public Works vehicles, 2008 Ford F250 pick-up trucks (Estimated cost: $100,000)

Information Technology Operations and Replacement ISF
The fund accounts for Information Technology, which provides various technology-related services for the city, including networking and infrastructure technology, including servers, switching, security, cyber protection, internet connectivity, service desk, disaster recovery, and other data communication technologies. FY 22-23 proposed IT operating Budget is estimated to be $955,986 and Equipment Replacement of $316,000. Resources are from administrative charges to departments based upon their proportional share of program costs.

Facilities Maintenance ISF
The fund accounts for Facility Maintenance and provides and manages maintenance and emergency structural repair services for all City facilities. The source of revenue is reimbursement from departments for the cost of providing facility maintenance services. This interservice fund pays for the maintenance and repair of the City’s facilities which include:

 City Hall (including the Police Department)
 Senior Center
 Library
 Lupin & Hanna Kids Center
 Teen Center
30  Community Center
 Ohlone & Foxboro Community Center

Activities include contract janitorial, HVAC, plumbing and other miscellaneous activities; various repairs and improvements performed by City staff, and utilities. FY 22 -23 proposed Facilities Maintenance Budget is estimated to be $$786,992. Resources are from charges to departments based upon their proportional share of program costs using the square footage of the building they occupied.

Staff is recommending adding the creation of the following internal service funds:

Facility Replacement ISF
This fund will be used to cover the major replacement of City buildings and facilities. There is a significant backlog of large maintenance projects at City Hall, the Police Department, etc. For FY 22- 23, the City will be conducting a Citywide Facility study to address some of these backlogs.

IT Equipment Replacement ISF
Separating the IT Equipment Replacement Fund - this fund will be used to replace infrastructure and equipment used to support City technology needs (servers, switches, data security, etc.). This model has not yet been developed, and expenditures are currently charged together with IT Operations as “pay-as-you-go.”

Another essential value to creating these internal service funds is that funds will be available to ensure facilities are maintained and equipment replaced during challenging financial years when allocations to the funds from the various departments may be reduced.

The City has accumulated a cash balance for IT operations and replacement ($1.3 million) and facilities maintenance funds ($676K). Staff recommends allocating approximately 50% of these funds to fund the newly created internal service funds.

The staff will develop vehicles and IT equipment replacement models to identify the needs projected for the next 5-10 years. In addition, staff will be conducting a facilities maintenance study that looks forward 30 years to identify expected maintenance needs and improvements. This analysis will allow the staff to calculate and program funds sufficient to ensure they are adequately capitalized. The recommendation to allocate approximately 50% of the accumulated fund balance in the Internal Service funds will ensure the funds have adequate balances to provide a reserve if financial challenges require a pause in contributions to the funds.

An annual allocation to the internal service funds for FY 22-23 is calculated to be as follows:

 Fund #450 – Vehicle Replacement: $148,300
 Fund #460 – IT Operations and Equipment Replacement: $1,271,986  Fund #470 – Facility Maintenance: $786,992
 Fund #TBD – Newly created IT Equipment Replacement: Pending the outcome of the study
 Fund #TBD – Newly created Facility Replacement: Pending the outcome of the study

These contributions will come from the various department budgets and will be reassessed annually based on actual expenditures and re-evaluation of projected future expenditures. 31 ATTACHMENTS:

1. Introduction of a Five-Year CIP

2. Introduction of Sewer Enterprise Fund FY 22-23 Proposed Budget

3. Introduction of Internal Service Funds FY 22-23 Proposed Budget

32 Project Funding Source: FY 2022-23 State Gas Tax
Measure J
Return to
Source Facility Fund
Police
Development
Impact Fee
General
Fund Total Budget
Energy Conservation Measures Facility Fund -$ -$ -$ -$ -$ -$ -$ Police Dept. Expansion Police Development Impact
Fee 60,000.00$ -$ -$ -$ 60,000.00$ -$ 60,000.00$ Corporation Yard Landscaping General Fund -$ -$ -$ -$ -$ -$ -$ Building Facilites Plan General / ARPA Fund 75,000.00$ -$ -$ 75,000.00$ -$ -$ 75,000.00$ ADA Assessment Improvement Facility Fund 25,000.00$ -$ -$ 25,000.00$ -$ -$ 25,000.00$ 160,000$ -$ -$ 100,000$ 60,000$ -$ 160,000.00$ City of Hercules
Facilities CIP Summary
Funding Breakdown
33 Project Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Projection Projection Projection Projection Projection Projection Energy Conservation Measures Facility Fund 3,938,147.00$ -$ -$ -$ -$ -$ -$ -$ Police Dept. Expansion Police Development
Impact Fee 100,000.00$ 60,000.00$ 500,000.00$ -$ -$ -$ -$ 560,000.00$ Corporation Yard Landscaping General Fund 46,000.00$ -$ -$ -$ -$ -$ -$ -$ Building Facilites Plan General / ARPA Fund -$ 75,000.00$ -$ -$ -$ -$ -$ 75,000.00$ ADA Assessment Improvement Facility Fund -$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ -$ 125,000.00$ Total 4,084,147$ 160,000$ 525,000$ 25,000$ 25,000$ 25,000$ -$ 760,000.00$ City of Hercules
Facilities CIP Summary
34 Project Number: 63048
Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 3,938,147.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Facility Fund 3,938,147.00$ -$ -$ -$ -$ -$ -$ 3,938,147.00$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 3,938,147$ -$ -$ -$ -$ -$ -$ 3,938,147.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Energy Conservation Measures
This project converted to energy efficient indoor/outdoor lighting at major City public buildings and streetlights throughout town, installed energy generating solar arrays at City Hall and the Community Center, and installed a new HVAC system at City Hall.

This project saves the City money overall given the reduction in electrical billing. It also reduces greenhouse gas emissions.
35 Project Number: BDP#22-3
Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 660,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Police Development Impact Fee 100,000.00$ 60,000.00$ 500,000.00$ -$ -$ -$ -$ 660,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 100,000$ 60,000$ 500,000$ -$ -$ -$ -$ 660,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Police Dept. Expansion
The Locker room and restrooms used by the Police Staff are in greatly deteriorated condition as they are utilized 24 hours a day/seven days a week. In addition, as our Pollice staffing has become more diverse with more female officers, space needs to be reallocated to accommodate this shift. A remodel and upgrade of the locker rooms and restrooms is recommended. An initial assessment of feasibility, utilizing a portion of what is requested, to modify the space allocation with an architect will further refine the scope of the project. Expense increse: 100,000 (One- time) (Police DIF)
36 Project Number: BDP#22-4
Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 46,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed General Fund 46,000.00$ -$ -$ -$ -$ -$ -$ 46,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 46,000$ -$ -$ -$ -$ -$ -$ 46,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Corporation Yard Landscaping
Visually Screening the Corporation Yard with vegetation along the north and west fence lines parallel to Willet and sycamore respectively would cost apporximately $62K. This work would include connecting to the existing water line, installing a back flow, connecting to existing electricity, installing an irrigation controller, irrigation piping and bubblers, soil prep, and planting 5-gallon shrubs. The shrubs would need approximately 3 to 5 years grow large enough to visually screen the Corp Yard. As measure, fabric similar to the existing material could be installed.
37 Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 75,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed General / ARPA Fund -$ 75,000.00$ -$ -$ -$ -$ -$ 75,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 75,000$ -$ -$ -$ -$ -$ 75,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Building Facilities Plan
38 Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 125,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Facility Fund -$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ -$ 125,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ 125,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2021-22 through 2025-26
ADA Assessment Improvement
39 Project Funding Source: FY 2022-23
LLAD 83-2
Zone 10
Baywood LLAD
No. 2004-1
Victoria LLAD
No. 2002-1
Promenade
LLAD 2002-2
WW Grant
Funds
Prop. 64
Grant Funds
General
Funds Total Budget
Projection
Refugio Valley Lake Dredging LLAD 83-2 Zone 10 -$ -$ -$ -$ -$ -$ -$ -$ -$ Refugio Park Retaining Wall LLAD 83-2 Zone 10 -$ -$ -$ -$ -$ -$ -$ -$ -$ Baywood Tree Replacement Baywood LLAD No. 2004-1 -$ -$ -$ -$ -$ -$ -$ -$ -$ Trash Cans Replacement LLAD 83-2 Zone 10 -$ -$ -$ -$ -$ -$ -$ -$ -$ Parks Master Plan General Funds 150,000.00$ 150,000.00$ 150,000.00$ WW Grant Funds 60,000.00$ -$ -$ -$ -$ 60,000.00$ -$ -$ 60,000.00$ Prop. 64 Grant Funds 194,000.00$ -$ -$ -$ -$ -$ 194,000.00$ -$ 194,000.00$ Victoria Linear Park Victoria LLAD No. 2002-1 -$ -$ -$ -$ -$ -$ -$ -$ -$ Children With Disabilities Swingset General Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ Refugio Tennis Court Tree
Maintenance General Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ ADA Assessment LLAD 25,000.00$ 25,000.00$ -$ -$ -$ -$ -$ -$ 25,000.00$ Community Swim Center Safety
Fence Replacement General Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ Community Swim Center Gym
Floor Replacement & Misc Other General Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ Replace the Community Pool
Diving Board General Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ Victoria By The Bay - Refurbish
Gazzebo & Railing Victoria LLAD No. 2002-1 55,000.00$ -$ -$ 55,000.00$ -$ -$ -$ -$ 55,000.00$ Ohlone Dog Park Tree Removal &
Pruning LLAD 83-2 Zone 10 85,000.00$ 85,000.00$ -$ -$ -$ -$ -$ -$ 85,000.00$ Tree Planting & Removal Open
Space LLAD 83-2 Zone 10 50,000.00$ 50,000.00$ -$ -$ -$ -$ -$ -$ 50,000.00$ Aerator Reugio Valley Parks LLAD 83-2 Zone 10 60,000.00$ 60,000.00$ -$ -$ -$ -$ -$ -$ 60,000.00$ 679,000$ 220,000$ -$ 55,000$ -$ 60,000$ 194,000$ 150,000$ 679,000.00$ City of Hercules
Parks and Open Space CIP Summary
Fund Breakdown
Beechnut Park
40 Project Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Projection Projection Projection Projection Projection Projection Refugio Valley Lake Dredging LLAD 83-2 Zone 10 -$ -$ -$ -$ -$ -$ 650,000.00$ -$ Refugio Park Retaining Wall LLAD 83-2 Zone 10 -$ -$ -$ -$ -$ -$ 250,000.00$ -$ Baywood Tree Replacement Baywood LLAD No. 2004-1 157,000.00$ -$ -$ -$ -$ -$ -$ 157,000.00$ Trash Cans Replacement LLAD 83-2 Zone 10 20,000.00$ -$ -$ -$ -$ -$ -$ 20,000.00$ Parks Master Plan General Funds -$ 150,000.00$ TBD -$ -$ -$ -$ 150,000.00$ WW Grant Funds -$ 60,000.00$ -$ -$ -$ -$ -$ 60,000.00$ Prop. 64 Grant Funds -$ 194,000.00$ -$ -$ -$ -$ -$ 194,000.00$ Victoria Linear Park Victoria LLAD No. 2002-1 50,000.00$ -$ -$ -$ -$ -$ -$ 50,000.00$ Children With Disabilities Swingset General Funds 100,000.00$ -$ -$ -$ -$ -$ -$ 100,000.00$ Refugio Tennis Court Tree
Maintenance General Funds 6,000.00$ -$ -$ -$ -$ -$ -$ 6,000.00$ ADA Assessment LLAD 83-2 Zone 10 -$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ -$ 100,000.00$ Community Swim Center Safety
Fence Replacement General Funds 100,000.00$ -$ -$ -$ -$ -$ -$ 100,000.00$ Community Swim Center Gym Floor
Replacement & Misc Other General Funds 250,000.00$ -$ -$ -$ -$ -$ -$ 250,000.00$ Replace the Community Pool Diving
Board General Funds 12,000.00$ -$ -$ -$ -$ -$ -$ 12,000.00$ Victoria By The Bay - Refurbish
Gazzebo & Railing Victoria LLAD No. 2002-1 -$ 55,000.00$ -$ -$ -$ -$ -$ 55,000.00$ Ohlone Dog Park Tree Removal &
Pruning LLAD 83-2 Zone 10 -$ 85,000.00$ -$ -$ -$ -$ -$ 85,000.00$ Tree Planting & Removal Open
Space LLAD 83-2 Zone 10 -$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ 50,000.00$ -$ 200,000.00$ Aerator Reugio Valley Parks LLAD 83-2 Zone 10 -$ 60,000.00$ -$ -$ -$ -$ -$ 60,000.00$ Total 695,000$ 679,000$ 75,000$ 75,000$ 75,000$ 75,000$ 900,000$ 1,599,000$ City of Hercules
Parks and Open Space CIP Summary
Beechnut Park
41 Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 650,000.00$
Planning and Design: -$
Construction Management 62,000.00$
Construction: -$
Equipment: -$
Contingency: -$
Total: 62,000.00$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed LLAD 83-2 Zone 10 Funds -$ -$ -$ -$ -$ -$ 650,000.00$ 650,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ -$ -$ -$ 650,000$ 650,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Refugio Valley Lake Dredging
Dredge Refugio Lake and Replace Aerator Fountains
Silt has filled up the lake in several locations and needs to be removed. The aerator fountains have exceeded their useful life and frequently are out of service in repair, which allows the algae to grow. Alternative dredging methods need to be explored given removing and disposing of all the silt at one time was estimated to cost $750K-$1M.
42 Project Number:

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Project Name:

Description:

Justification:

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Total Estimated Cost: Budget
Proposed Budget: 157,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Baywood LLAD No. 2004-1 157,000.00$ -$ -$ -$ -$ -$ -$ 157,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 157,000$ -$ -$ -$ -$ -$ -$ 157,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Baywood Tree Replacement
Replace Approximately 33 Trees in Baywood
Sycamore Trees are raising sidewalks, damaging irrigation, and creating uneven planter strip between parked cars and access to sidewalk. All the trees are to be removed and replaced at one time. Work includes repacing the turf, irrigation system, and grinding the roots.
44 Project Number:

Project Name:

Description:

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Total Estimated Cost: Budget
Proposed Budget: 20,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed LLAD 83-2 Zone 10 Funds 20,000.00$ -$ -$ -$ -$ -$ -$ 20,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 20,000$ -$ -$ -$ -$ -$ -$ 20,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Trash Cans Replacement
Replace trash cans in City Parks.

Existing trash cans don’t keep the rain out, are falling apart, and unsightly. 45 Project Number:

Project Name:

Description:

Justification:

Projected Timing:

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Total Estimated Cost: Budget
Proposed Budget: 150,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed General / ARPA Fund -$ 150,000.00$ TBD -$ -$ -$ -$ 150,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 150,000$ -$ -$ -$ -$ -$ 150,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Parks Master Plan
46 Project Number:

Project Name:

Description:

Justification:

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Total Estimated Cost: Budget
Proposed Budget: 254,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Eastbay Regional Park
District WW Grant Funds -$ 60,000.00$ -$ -$ -$ -$ -$ 60,000.00$ Prop. 64 Grant Funds -$ 194,000.00$ -$ -$ -$ -$ -$ 194,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 254,000$ -$ -$ -$ -$ -$ 254,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Beechnut Park
Enhance Beechnut Park with grant funding. Improvements TBD and could include half play court with basketball hoop, play structures, picnic area, and turf play area.

Beechnut Park is the most in need of enhancing and the cost for such work is close to the available grant funding.
47 Project Number:

Project Name:

Description:

Justification:

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Total Estimated Cost: Budget
Proposed Budget: 50,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed LLAD No. 2002-1 Funds 50,000.00$ -$ -$ -$ -$ -$ -$ 50,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 50,000$ -$ -$ -$ -$ -$ -$ 50,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Victoria Linear Park
Tree Removal/Replacement in Victoria Linear Park.

Trees are encroaching onto and damaging adjacent private property. 48 Project Number:

Project Name:

Description:

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Description:

Justification:

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Total Estimated Cost: Budget
Proposed Budget: 6,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed General Funds 6,000.00$ -$ -$ -$ -$ -$ -$ 6,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 6,000$ -$ -$ -$ -$ -$ -$ 6,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Refugio Tennis Court Tree Maintenance
The tennis courts are surrounded by Eucalyptus trees that need occasional pruning and sometimes removal because of the nature of the tree (top-heavy and shallow-rooted). Some of the trees growing are volunteer trees (not planted) and need to be removed. Prune and or remove trees located at Refugio Valley Tennis as needed. Several trees are top heavy and many overhang the courts both dropping debris and raising safety concerns. 50 Project Number:

Project Name:

Description:

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Project Name:

Description:

Justification:

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Total Estimated Cost: Budget
Proposed Budget: 100,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed General Funds 100,000.00$ -$ -$ -$ -$ -$ -$ 100,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 100,000$ -$ -$ -$ -$ -$ -$ 100,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Community Swim Center Safety Fence Replacement
The safety fence surrounding the Community Swim Center needs to be replaced. The current fencing is a wood frame with a metal mesh material. The wood has broken, split, fallen off, and has rotted in many places (see photos). The facility's fence is approximately 680' linear feet and 8' feet tall. For safety purposes and to follow the code, the fence needs to be replaced with "anti-climb" safety fencing around the aquatic facility. Parks and Recreation staff have secured quotes from professional fencing companies to ensure that we would cover the cost to replace the entire fence. 52 Project Number:

Project Name:

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Total Estimated Cost: Budget
Proposed Budget: 250,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed General Funds 250,000.00$ -$ -$ -$ -$ -$ -$ 250,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 250,000$ -$ -$ -$ -$ -$ -$ 250,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Community Swim Center Gym Floor Replacement & Other Building and Deferred Maintenance The gym floor at the Community Swim Center needs to be replaced. The current flooring has been sanded and refinished many times. There are broken boards on both ends of the floor. Repairing the floor may be an option but won’t be known until the floor is pulled up in areas to assess the total damage. Parks and Recreation staff has secured quotes from professional flooring companies to ensure that this would cover the cost of replacing the entire floor, considering the cost of wood. If the floor can be repaired, the remaining money would go towards other building and deferred maintenance in the facility, including doors, interior painting, etc.
53 Project Number: BR#22-3
Project Name:

Description:

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Total Estimated Cost: Budget
Proposed Budget: 12,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed General Funds 12,000.00$ -$ -$ -$ -$ -$ -$ 12,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 12,000$ -$ -$ -$ -$ -$ -$ 12,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Replace the Community Pool Diving Board
The Diving boards are in need of replacement. The board on the 3-meter dive stand is broken and cannot be repaired.

Both boards were purchased at the same time and have gotten good use over the past decade. The cost to replace 1 board is approximately $6,000. In this case it makes sense to replace both boards for a cost of $12,000. 54 Project Number:

Project Name:

Description:

Justification:

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Total Estimated Cost: Budget
Proposed Budget: 55,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Victoria LLAD 2002-2-1 -$ 55,000.00$ -$ -$ -$ -$ -$ 55,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 55,000$ -$ -$ -$ -$ -$ 55,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Victoria By The Bay - Refurbish Gazzebo & Railing
55 Project Number:

Project Name:

Description:

Justification:

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Total Estimated Cost: Budget
Proposed Budget: 85,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed LLAD 83-2 Zone 10 -$ 85,000.00$ -$ -$ -$ -$ -$ 85,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 85,000$ -$ -$ -$ -$ -$ 85,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Ohlone Dog Park Tree Removal & Pruning
56 Project Number:

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Project Name:

Description:

Justification:

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Total Estimated Cost: Budget
Proposed Budget: 60,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed LLAD 83-2 Zone 10 -$ 60,000.00$ -$ -$ -$ -$ -$ 60,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 60,000$ -$ -$ -$ -$ -$ 60,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Aerator Reugio Valley Parks
58 Project Funding Source: FY 2022-23 State Gas Tax
Measure J
Return to
Source
Measure J
TLC Grant Solid Waste
Unfunded and
Grants General Fund Total Budget
State Gas Tax 25,000.00$ 25,000.00$ -$ -$ -$ -$ -$ 25,000.00$ Measure J Return to Source 25,000.00$ -$ 25,000.00$ -$ -$ -$ -$ 25,000.00$ State Gas Tax 25,000.00$ 25,000.00$ -$ -$ -$ -$ -$ 25,000.00$ Measure J Return to Source 25,000.00$ -$ 25,000.00$ -$ -$ -$ -$ 25,000.00$ State Gas Tax -$ -$ -$ -$ -$ -$ -$ -$ Grant Measure J SP -$ -$ -$ -$ -$ -$ -$ -$ Grant TDA Article 3 Bike -$ -$ -$ -$ -$ -$ -$ -$ Measure J Return to Source -$ -$ -$ -$ -$ -$ -$ State Gas Tax -$ -$ -$ -$ -$ -$ -$ -$ Measure J Return to Source -$ -$ -$ -$ -$ -$ -$ -$ Solid Waste -$ -$ -$ -$ -$ -$ -$ -$ State Gas Tax -$ -$ -$ -$ -$ -$ -$ -$ OBAG -$ -$ -$ -$ -$ -$ -$ -$ Measure J Return to Source -$ -$ -$ -$ -$ -$ -$ -$ Solid Waste -$ -$ -$ -$ -$ -$ -$ -$ San Pablo Sidewalk (Future -
Unfunded) Unfunded -$ -$ -$ -$ -$ -$ -$ -$ John Muir Parkway Sidewalk (Future -
Unfunded) Unfunded -$ -$ -$ -$ -$ -$ -$ -$ ADA Transition Plan Implementation State Gas Tax Fund- 262 25,000.00$ 25,000.00$ -$ -$ -$ -$ -$ 25,000.00$ Sidewalk and Safe Walkways General Fund -$ -$ -$ -$ -$ -$ -$ -$ Village Parkway Traffic Calming General Fund 22,000.00$ -$ -$ -$ -$ -$ 22,000.00$ 22,000.00$ 147,000.00$ 75,000.00$ 50,000.00$ -$ -$ -$ 22,000.00$ 147,000.00$ Traffic Claming Turquoise Drive CCC GENERAL SER 50,000.00$ 50,000.00$ 50,000.00$ ANNUAL FEE - 263-5432-642.05-20 WCCTAC 49,000.00$ 49,000.00$ 49,000.00$ AT&T and Comcast Added to 262-5432-613.10-08 5,000.00$ 5,000.00$ 5,000.00$ Signage 15,000.00$ 15,000.00$ 15,000.00$
Pothole 50,000.00$ 50,000.00$ 50,000.00$
316,000$ 125,000$ 169,000$ -$ -$ -$ 22,000$ 316,000$ 2021 Annual Street Rehabilitation
Project - Turquoise & Future Years
(63046)
Funding Breakdown
2022 Annual Street Rehabilitation
Sycamore Avenue (63047)
Annual Restriping Project
City of Hercules
Streets CIP Summary
Annual Sidewalk Repair Program
Pedestrian Sidewalk Improvements -
Willow & Palm (63042)
59 Project Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Projection Projection Projection Projection Projection Projection State Gas Tax -$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ -$ 125,000.00$ Measure J Return to Source -$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ -$ 125,000.00$ State Gas Tax -$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ -$ 125,000.00$ Measure J Return to Source -$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ -$ 125,000.00$ State Gas Tax 349,140.00$ -$ -$ -$ -$ -$ -$ 349,140.00$ Grant Measure J SP 1,005,000.00$ -$ -$ -$ -$ -$ -$ 1,005,000.00$ Grant TDA Article 3 Bike 80,000.00$ -$ -$ -$ -$ -$ -$ 80,000.00$ Measure J Return to Source -$ -$ -$ -$ -$ -$ -$ -$ State Gas Tax 530,000.00$ -$ 700,000.00$ 700,000.00$ 700,000.00$ 700,000.00$ -$ 3,330,000.00$ Measure J Return to Source -$ -$ 150,000.00$ 150,000.00$ 150,000.00$ 150,000.00$ -$ 600,000.00$ Solid Waste 100,000.00$ -$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ -$ 500,000.00$ State Gas Tax 1,026,827.43$ -$ -$ -$ -$ -$ -$ 1,026,827.43$ OBAG 492,000.00$ -$ -$ -$ -$ -$ -$ 492,000.00$ Measure J Return to Source 184,889.00$ -$ -$ -$ -$ -$ -$ 184,889.00$ Solid Waste 100,000.00$ -$ -$ -$ -$ -$ -$ 100,000.00$ San Pablo Sidewalk (Future -
Unfunded) Unfunded -$ -$ -$ -$ -$ -$ 660,000.00$ 660,000.00$ John Muir Parkway Sidewalk (Future -
Unfunded) Unfunded -$ -$ -$ -$ -$ -$ 100,000.00$ 100,000.00$ ADA Transition Plan Implementation State Gas Tax Fund- 262 15,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ -$ 140,000.00$ Sidewalk and Safe Walkways General Fund 100,000.00$ -$ -$ -$ -$ -$ -$ 100,000.00$ Village Parkway Traffic Calming General Fund 100,000.00$ 22,000.00$ -$ -$ -$ -$ -$ 122,000.00$ Total 4,082,856$ 147,000$ 1,075,000$ 1,075,000$ 1,075,000$ 1,075,000$ 760,000$ 9,289,856.43$ 2021 Annual Street Rehabilitation
Project - Turquoise & Future Years
2022 Annual Street Rehabilitation
Sycamore Avenue (63047)
Annual Restriping Project
City of Hercules
Streets CIP Summary
Annual Sidewalk Repair Program
Pedestrian Sidewalk Improvement
Willow & Palm (63042)
60 Project Number:

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Total Estimated Cost: Budget
Proposed Budget: 250,000.00$
Planning and Design: -$
Construction Management -$
Construction: 65,000.00$
Equipment: -$
Contingency: -$
Total: 65,000.00$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed State Gas Tax Fund- 262 -$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ -$ 125,000.00$ Measure J Fund- 263 -$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ -$ 125,000.00$ Adjustment -$ -$ -$ -$ -$ -$ Total -$ 50,000$ 50,000$ 50,000$ 50,000$ 50,000$ -$ 250,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Annual Sidewalk Repair Program
Repair public sidewalks throughout the City on an as-needed basis.

This work improves safety for pedestrians and reduces liability. 61 Project Number:

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Annual upkeep of markings and striping is needed.
62 Project Number: 63042
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Total Estimated Cost: Budget
Proposed Budget: 1,434,140.00$
Planning and Design: 175,000.00$
Construction Management 135,000.00$
Construction: 1,124,790.00$
Equipment: -$
Contingency: 224,958.00$
Total: 1,659,748.00$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed State Gas Tax Fund- 262 349,140.00$ -$ -$ -$ -$ -$ -$ 349,140.00$ Grant Measure J SP 1,005,000.00$ -$ -$ -$ -$ -$ -$ 1,005,000.00$ Grant TDA Article 3 Bike 80,000.00$ -$ -$ -$ -$ -$ -$ 80,000.00$ Measure J Fund- 263 -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 1,434,140$ -$ -$ -$ -$ -$ -$ 1,434,140.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Pedestrian Sidewalk Improvbement Willow & Palm
This project will install sidewalk from the Hercules Transit Center (HTC) to Palm Avenue, and then from Palm Avenue to Sycamore Avenue. A Measure J tlc grant was originally assigned to this project but was rescinded due to a drop in revenue from the pandemic. City staff is working with the Contra Costa Transportation Authority (CCTA) to find replacement funding.

Currently there is no sidewalk available for pedestrians. This project will provide connectivity to the HTC from the southeast part of town.
63 Project Number: 63046
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Total Estimated Cost: Budget
Proposed Budget: 4,430,000.00$
Planning and Design: 35,784.00$
Construction Management 50,000.00$
Construction: 783,300.00$
Equipment: -$
Contingency: 117,495.00$
Total: 986,579.00$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed State Gas Tax Fund- 262 530,000.00$ -$ 700,000.00$ 700,000.00$ 700,000.00$ 700,000.00$ -$ 3,330,000.00$ Measure J Fund- 263 -$ -$ 150,000.00$ 150,000.00$ 150,000.00$ 150,000.00$ -$ 600,000.00$ Solid Waste Fund 100,000.00$ -$ 100,000.00$ 100,000.00$ 100,000.00$ 100,000.00$ -$ 500,000.00$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 630,000$ -$ 950,000$ 950,000$ 950,000$ 950,000$ -$ 4,430,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
2021 Annual Street Rehabilitation Project - Turquoise & Future Years Rehabilitate Turquoise Avenue from Cinnabar Way to Obsidian Way including in-place asphalt recycling. The project includes traffic calming with striping.

This section of Turquoise is in very poor condition and along a downhill, wide section of road with curves. It is on a route to school. Rehabilitation the street will also allow new striping to be applied. 64 Project Number: 63047
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Total Estimated Cost: Budget
Proposed Budget: 1,803,716.43$
Planning and Design: 148,111.00$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: 148,111.00$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Gas Tax 1,026,827.43$ -$ -$ -$ -$ -$ -$ 1,026,827.43$ OBAG 492,000.00$ -$ -$ -$ -$ -$ -$ 492,000.00$ Measure J Return to Source 184,889.00$ -$ -$ -$ -$ -$ -$ 184,889.00$ Solid Waste 100,000.00$ -$ -$ -$ -$ -$ -$ 100,000.00$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 1,803,716$ -$ -$ -$ -$ -$ 1,803,716.43$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
2022 Annual Street Rehabilitation Sycamore Avenue
This project will grind and overlay Sycamore Avenue from Civic Avenue to Palm Avenue.

This project is funded with federal grants that can only be applied to arterials. 65 Project Number:

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This project will provide connectivity to the signal at Market Place into the new Safeway center. 66 Project Number:

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Total Estimated Cost: Budget
Proposed Budget: 140,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed General Fund 15,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ 25,000.00$ -$ 140,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 15,000$ 25,000$ 25,000$ 25,000$ 25,000$ 25,000$ -$ 140,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
ADA Transition Plan Implementation
To be determined improvements to sidewalks, curb ramps, and traffic signals in accordance with the ADA self- assessment.

This work is part of the ADA Transition Plan which is a federal requirement. 68 Project Number:

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Total Estimated Cost: Budget
Proposed Budget: 122,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed General Fund 100,000.00$ 22,000.00$ -$ -$ -$ -$ -$ 122,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 100,000$ 22,000$ -$ -$ -$ -$ -$ 122,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Village Parkway Traffic Calming
70 Project Funding Source: FY 2022-23
Measure J
Return to
Source
Measure J
TLC Grant STMP Fund
Development
Fees Unfunded Total Budget
Path To Transit Bayfront Development Public
Benefit Fee 500,000.00$ -$ -$ -$ 500,000.00$ -$ 500,000.00$ Environmental Monitoring Measure J TLC Grant 60,000.00$ -$ 60,000.00$ -$ -$ -$ 60,000.00$ Utility Relocation Unfunded -$ -$ -$ -$ -$ -$ -$ STMP Fund -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ -$ -$ -$ -$ Initial Rail Station Unfunded -$ -$ -$ -$ -$ -$ -$ Trails, Parks, Plazas Unfunded -$ -$ -$ -$ -$ -$ -$ Parking Garage -$ -$ -$ -$ -$ -$ -$ Measure J TLC Grant 300,000.00$ -$ 300,000.00$ -$ -$ -$ 300,000.00$ STMP Fund -$ -$ -$ -$ -$ -$ -$ 860,000$ -$ 360,000$ -$ 500,000$ -$ 860,000.00$ City of Hercules
RITC CIP Summary
Track and Signal Work
Design Utility Relocation
Funding Breakdown
71 Project Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Projection Projection Projection Projection Projection Projection Path To Transit - Conservation
Easement
Bayfront Development Public
Benefit Fee -$ 500,000.00$ -$ -$ -$ -$ -$ 500,000.00$ Environmental Monitoring Measure J SP Grant 50,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ -$ -$ -$ 230,000.00$ Utility Relocation Unfunded -$ -$ 21,769,750.00$ -$ -$ -$ -$ 21,769,750.00$ Track and Signal Work Unfunded -$ -$ -$ 32,776,768.00$ -$ -$ -$ 32,776,768.00$ Initial Rail Station Unfunded -$ -$ -$ -$ 10,640,738.00$ -$ -$ 10,640,738.00$ Trails, Parks, Plazas Unfunded -$ -$ -$ -$ -$ -$ 3,180,000.00$ 3,180,000.00$ Parking Garage Unfunded -$ -$ -$ -$ 5,000,000.00$ -$ -$ 5,000,000.00$ Measure J TLC Grant 500,000.00$ -$ -$ -$ -$ -$ -$ 500,000.00$ STMP Fund 750,000.00$ 300,000.00$ -$ -$ -$ -$ -$ 1,050,000.00$ Total 1,300,000$ 860,000$ 21,829,750$ 32,836,768$ 15,640,738$ -$ 3,180,000$ 75,647,256.00$ City of Hercules
RITC CIP Summary
Design Utility Relocation
72 Project Number:

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Total Estimated Cost: Budget
Proposed Budget: 500,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Bayfront Development
Public Benefit Fee -$ 500,000.00$ -$ -$ -$ -$ -$ 500,000.00$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 500,000$ -$ -$ -$ -$ -$ 500,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Path To Transit - Conservation Easement
Refugio Creek Conservation Easement and Endowment funding Required as a permit condition.
73 Project Number:

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Total Estimated Cost: Budget
Proposed Budget: 230,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Measure J SP Grant 50,000.00$ 60,000.00$ 60,000.00$ 60,000.00$ -$ -$ -$ 230,000.00$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 50,000$ 60,000$ 60,000$ 60,000$ -$ -$ -$ 230,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Environmental Monitoring
Post - Construction Environmental Monitoring
For Completed Phase of the RITC as required by permitting Agencies 74 Project Number:

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Proposed Budget: 21,769,750.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Unfunded -$ -$ 21,769,750.00$ -$ -$ -$ -$ 21,769,750.00$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ 21,769,750$ -$ -$ -$ -$ 21,769,750.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Utility Relocation
Relocate Shell and Kinder Morgan Fuel Oil Lines, Fiber Optic Line 75 Project Number:

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Total Estimated Cost: Budget
Proposed Budget: 32,776,768.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed -$ -$ -$ -$ -$ -$ -$ -$ Unfunded -$ -$ -$ 32,776,768.00$ -$ -$ -$ 32,776,768.00$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ 32,776,768$ -$ -$ -$ 32,776,768.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Track and Signal Work
Railroad Bridge, Track and Signal work, Creek Realignment, Retaining Walls Final Design, Construction Management, Permits
76 Project Number:

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Total Estimated Cost: Budget
Proposed Budget: 10,640,738.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Unfunded -$ -$ -$ -$ 10,640,738.00$ -$ -$ 10,640,738.00$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ -$ 10,640,738$ -$ -$ 10,640,738.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Initial Rail Station
Initial Rail Station Building, Civic Plaza Improvement Final Design. Construction Management, Permits 77 Project Number:

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Proposed Budget: 3,180,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Unfunded -$ -$ -$ -$ -$ 3,180,000.00$ 3,180,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ -$ -$ -$ 3,180,000$ 3,180,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Trails, Parks, Plazas
Bay Trail (Including Pedestrian Bridge Over Refugio Creek), Creekside Park, Promenade, Railroad Plaza, Final Design, Construction Management, Permits
78 Project Number:

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Total Estimated Cost: Budget
Proposed Budget: 5,000,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Unfunded -$ -$ -$ 5,000,000.00$ -$ -$ 5,000,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ -$ 5,000,000$ -$ -$ 5,000,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Parking Garage
Parking Garage for RITC
79 Project Number:

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Total Estimated Cost: Budget
Proposed Budget: 2,177,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Measure J TLC Grant 500,000.00$ -$ -$ -$ -$ -$ -$ 500,000.00$ STMP Fund 750,000.00$ 300,000.00$ -$ -$ -$ -$ -$ 1,050,000.00$ Unfunded -$ -$ -$ -$ -$ 627,000.00$ -$ 627,000.00$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 1,250,000$ 300,000$ -$ -$ -$ 627,000$ -$ 2,177,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Design Utility Relocation
Advance Design of RITC by Task Order
80 Project
Funding
Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Actual Budget Projection Projection Projection Projection Projection Projection Inspect & Repair Sewer Sewer -$ -$ -$ 700,000.00$ -$ -$ -$ 700,000.00$ Sycamore Ave (Lower Trunk Main) Sewer 787,313.00$ 13,500,000.00$ -$ -$ -$ -$ -$ 14,287,313.00$ Sycamore Ave (Upper Truck Main) Sewer -$ 100,000.00$ 400,000.00$ 4,078,000.00$ -$ -$ -$ 4,578,000.00$ Promenade Lift Station Sewer -$ -$ 100,000.00$ 867,000.00$ -$ -$ -$ 967,000.00$ SR-4 & Along Willow Ave. Sewer -$ -$ 100,000.00$ 230,000.00$ 800,000.00$ -$ -$ 1,130,000.00$ Foxboro Sewer Access Road Sewer 88,000.00$ -$ -$ -$ -$ -$ -$ 88,000.00$ Total 875,313$ 13,600,000$ 600,000$ 5,875,000$ 800,000$ -$ -$ 21,750,313.00$ City of Hercules
Sewer CIP Summary
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Proposed Budget: 700,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2047 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Sewer Fund - 420 -$ -$ -$ 700,000.00$ -$ -$ -$ 700,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ 700,000$ -$ -$ -$ 700,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Inspect & Repair Sewer (System Infiltration & Inflow SSMP) Clean and video inspect sewer mains sewer mainlines throughout the City and repair/replace as needed.

The work is included in the City's Sanitary Sewer Management Plan and required by the Regional Water Quality Control Board. Infiltration and inflow of groundwater into the mains increases the inflow into the Waste Water Treatment Plant.
82 Project Number:

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Total Estimated Cost: Budget
Proposed Budget: 14,287,313.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2047 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Sewer Fund - 420 787,313.00$ 13,500,000.00$ -$ -$ -$ -$ -$ 14,287,313.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 787,313$ 13,500,000$ -$ -$ -$ -$ -$ 14,287,313.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Sycamore Ave (Lower Trunk Main)
Replace 5,500 ft. of the City's primary 24-inch truck sewer main beginning at Duck Pond Park and ending at the influent intake to the Waste Water Treatment Plant in Pinole.

The trunk sewer, which was constructed in 1972 and has served its useful life, needs to be increased in size to a 30 -inch pipe to convey the in increased flows associated with build-out of the City. 83 Project Number:

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Total Estimated Cost: Budget
Proposed Budget: 4,578,000.00$
Planning and Design: 400,000.00$
Construction Management -$
Construction: 4,078,000.00$
Equipment: -$
Contingency: -$
Total: 4,478,000.00$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2047 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Sewer Fund - 420 -$ 100,000.00$ 400,000.00$ 4,078,000.00$ -$ -$ -$ 4,578,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 100,000$ 400,000$ 4,078,000$ -$ -$ -$ 4,578,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Sycamore Ave (Upper Truck Main)
Upsize 1,446 ft. of 20-inch Gravity main to 24-inch gravity main and 1,956 ft. of 20 and 24-inch gravity main to 27-inch gravity main along sycamore Ave. The extent of this project goes from Highway 80 on the upstream end to the convergence of the trunk sewer industrial LS Force main on the downstream end.
84 Project Number:

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Total Estimated Cost: Budget
Proposed Budget: 967,000.00$
Planning and Design: 100,000.00$
Construction Management -$
Construction: 867,000.00$
Equipment: -$
Contingency: -$
Total: 967,000.00$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2047 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Sewer Fund - 420 -$ -$ 100,000.00$ 867,000.00$ -$ -$ -$ 967,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ 100,000$ 867,000$ -$ -$ -$ 967,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Promenade Lift Station
As part of the Bay Front Development Project, the Promenade Lift Station will be taken off-line and bypassed using gravity piping. The Project includes decommissioning the Promenade Lift Station and installing 1,1200 feet of 12-inch diameter gravity main. 85 Project Number:

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Total Estimated Cost: Budget
Proposed Budget: 1,130,000.00$
Planning and Design: 250,000.00$
Construction Management -$
Construction: 1,250,000.00$
Equipment: -$
Contingency: -$
Total: 1,500,000.00$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2047 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Sewer Fund - 420 -$ -$ 100,000.00$ 230,000.00$ 800,000.00$ -$ -$ 1,130,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ 100,000$ 230,000$ 800,000$ -$ -$ 1,130,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Repair/ Replace Sewer Lines under SR-4 & Along Willow Ave.

Replace existing main under SR-4 between Willow and Foxboro in 5 years and 2 sections of main along Willow near Sycamore should be replaced as soon as possible.

Prior cleaning/video inspection has determined the pipes are in poor condition and should be repaired.

Additional analysis during design will determine extent of repair, which appears to be full replacement. 86 Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 88,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: -$
Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2047 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Sewer Fund - 420 88,000.00$ -$ -$ -$ -$ -$ -$ 88,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ Total 88,000$ -$ -$ -$ -$ -$ -$ 88,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Foxboro Sewer Access Road
Repair the sewer access road off Canterbury in Foxboro.

This manhole is a sewer hotspot, requiring frequent cleaning. The road provides all-weather access for the sewer truck.
87 Wastewater
Fund Summary - Fund 420
Fund Description / Budget Highlights
Fund Activity
FY 19-20 FY 20-21 FY 21-22 FY 22-23
Actual Actual Projection Proposed
Beginning Available Fund Balance 27,296,000$ 13,452,000$ Revenues
Charges for Services 5,719,257$ 5,769,396$ 6,054,000 6,013,000 Interest Income 501,741 4,537 120,000 40,000
Bond Proceeds - - - -
Miscellaneous Revenues - - - -
6,220,998 5,773,933 6,174,000 6,053,000
Transfers In - - - -
6,220,998 5,773,933 6,174,000 6,053,000
Expenditures
Salary and Benefits 668,089 662,073 711,000 686,419 Contractual Services 535,157 546,102 400,000 570,000 Utilities 80,528 85,647 85,000 85,343
Maintenance & Repairs 42,883 43,627 46,000 48,638 Sewer Plant Operating Expenses 1,761,811 2,075,082 1,760,000 1,750,000 Other Expenses 12,584 8,559 14,000 6,130
Cost Allocation 287,445 280,371 313,000 291,477
Capital Outlay 3,010,075 5,595 5,000 6,000
Capital Projects 84,536 1,158,482 13,700,000 751,000 Capital Outlay - Pinole (Hercules' Share) 740,000 750,000 Debt Service 723,631 1,193,797 2,244,000 2,033,000 7,206,739 6,059,335 20,018,000 6,978,007
Transfer Out - - - -
7,206,739 6,059,335 20,018,000 6,978,007
Changes in restricted reserves (1,149,440) (2,989,000) Net Annual Activity (985,741) (1,434,842) (13,844,000) (3,914,007) Ending Available Fund Balance 27,296,000$ 13,452,000$ 9,537,993$ Debt Service Coverage Ratio 1.45 1.74 1.27 1.29
Operating & Maintenance Reserve (180 days) 860,000
Capital Reserve (Equal to annual system depreciation) 529,000 Debt Service Reserve (Equivalent to 1-year of debt service) 1,600,000 This fund accounts for wastewater treatment to the cities of Hercules and Pinole and for the maintenance of the City's sewer lines and related facilities. It is a self-supporting activity which provides services on a user charge basis to residences and businesses.

PRELIMINARY DRAFT
88 INTERNAL SERVICE FUNDS

PRELIMINARY DRAFT
89 Vehicle Replacement
Fund Summary - Fund 450
Fund Description / Budget Highlights
Fund Activity
FY 19-20 FY 20-21 FY 21-22 FY 22-23
Actual Actual Budget Proposed
Beginning Available Fund Balance 642,667 $ 587,667 $ Revenues
Charges for Services 165,489 $ 159,000 $ - 148,300 Interest Income 18,041 700 - - Miscellaneous Revenues 20,637 - - - 204,167 159,700 - 148,300
Transfers In - - - - 204,167 159,700 - 148,300
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay 146,762 206,373 55,000 276,000 Debt Service - - - - 146,762 206,373 55,000 276,000
Transfer Out - - - - 146,762 206,373 55,000 276,000
Changes in restricted reserves
Net Annual Activity 57,405 $ (46,673) (55,000) (127,700) Ending Available Fund Balance 642,667 587,667 $ 459,967 $ By Department
Police 264,598
Public Works 122,613
Parks & Recreation 72,756
459,967 $
To account for the financing, operations, servicing and maintenance of fleet vehicles and major equipment utilized by City departments, of which the services are rendered on a cost reimbursement basis.

PRELIMINARY DRAFT
90 IT Equipment Replacement
Fund Summary - Fund 460
Fund Description / Budget Highlights
Fund Activity
FY 19-20 FY 20-21 FY 21-22 FY 22-23
Actual Actual Budget Proposed
Beginning Available Fund Balance 1,317,784 $ 1,221,784 $ Revenues
Charges for Services 981,207 $ 1,010,200 $ 1,051,000 $ 1,271,986 Interest Income 16,985 - - - Miscellaneous Revenues 6,517 8,077 455,000 - 1,004,709 1,018,277 1,506,000 1,271,986
Transfers In - - - - 1,004,709 1,018,277 1,506,000 1,271,986
Expenditures
Salary and Benefits 238,914 337,202 364,963 386,896 Contractual Services 11,120 18,800 525,000 30,000 Utilities 43,536 45,450 47,200 50,200 Maintenance & Repairs 235,794 273,612 310,969 386,550 Other Expenses 5,689 2,981 17,330 13,040 Cost Allocation 65,420 91,168 104,038 89,300 Capital Outlay 150,855 68,391 232,500 316,000 751,328 837,604 1,602,000 1,271,986 Transfer Out - - - - 751,328 837,604 1,602,000 1,271,986 Changes in restricted reserves
Net Annual Activity 253,381 $ 180,673 (96,000) - Ending Available Fund Balance 1,317,784 1,221,784 $ 1,221,784 $ This fund accounts for Information Technology who provide a variety of technology related services for the city, including networking and infrastructure technology including servers, switching, security, cyber protection, internet connectivity, service desk, disaster recovery and other data communication technologies. Resources are from administrative charges to departments based upon their proportional share of program costs.

PRELIMINARY DRAFT
91 Facility Maintenance
Fund Summary - Fund 470
Fund Description / Budget Highlights
Fund Activity
FY 19-20 FY 20-21 FY 21-22 FY 22-23
Actual Actual Budget Proposed
Beginning Available Fund Balance 558,783 $ 676,783 $ Revenues
Charges for Services 987,430 $ 883,150 $ 912,000 786,992 Interest Income 11,754 - - - Miscellaneous Revenues 182,790 (2) - - 1,181,974 883,148 912,000 786,992
Transfers In - - - - 1,181,974 883,148 912,000 786,992
Expenditures
Salary and Benefits 123,782 158,539 164,167 170,192 Contractual Services 46,045 13,883 60,000 180,000 Utilities 133,745 228,671 331,194 172,000 Maintenance & Repairs 181,866 68,043 140,500 169,000 Other Expenses 9,827 20,727 26,100 24,000 Cost Allocation 8,860 68,027 72,039 71,800 Capital Outlay - - - - Debt Service - - - - 504,125 557,890 794,000 786,992 Transfer Out - 440,643 - - 504,125 998,533 794,000 786,992 Changes in restricted reserves
Net Annual Activity 677,849 $ (115,385) 118,000 - Ending Available Fund Balance 558,783 $ 676,783 $ 676,783 $ This fund accounts for Facility Maintenance provides and manages maintenance and emergency structural repair services for all City facilities. The source of revenue is reimbursement from departments for the cost of providing facility maintenance services.

PRELIMINARY DRAFT
92 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of April 26, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: William Imboden; Chief of Police

SUBJECT: Military Equipment Funding, Acquisition, and Use Policy

RECOMMENDED ACTION:

Approve a resolution commencing the governing body approval process pertaining to funding, acquisition, and use of military equipment by law enforcement agencies in accordance with AB 481 requirements , and direct staff to schedule a public hearing before the City Council for consideration and approval of Hercules Police De partment policy section 709; Military Equipment Funding Acquisition and Use .

FISCAL IMPACT OF RECOMMENDATION:

There is no anticipated fiscal impact in approving this resolution. The resolution formally commences the AB 481 govern ing body approval process. There will be some administrative and staff costs associated with the military report compliance requirements, which require that a report be prepared and submitted to the governing authority annually.

EXECUTIVE SUMMARY:

AB 481, Military Equipment Funding, Acquisition, and Use was authored by Assemblymember David Chiu (D-San Francisco), and signed into law by Governor Newsom on September 30, 2021.

AB 481 imposes requirements on local agencies such as Hercules to disclose the extent to which military equipment is used by local law enforcement and requires a governing body ( the city council) to review and approve additions to law enforcement policy manuals that address the funding, acquisition, and use of military equipment by local law enforcement.

DISCUSSION:
93 On September 30, 2021, Governor Newsom signed a series of policing reform legislation aimed at increasing transparency of peace officer misconduct records, creating a system to decertify peace officers for serious misconduct, improving policing responsibility and accountability guidelines, raising eligibility standards, banning harmful restraint techniques, and creating a public forum for approval of the funding, acquisition and use of military equipment by local law enforcement. AB 481, part of th is package of reform legislation signed into law, is discussed below.

AB 481 Definition of Military Equipment
The Assembly Bill has designated the following categories of items as military equipment. The Hercules Police Department (“HPD”) has equipment that meets the criteria for 7 of the 15 categories (1,5,9,10,11,12,14):

 Unmanned, remotely piloted, powered aerial or ground vehicles (Equipment Category 1)

 Mine-resistant ambush-protected vehicles or armored personnel carriers (Equipment Category 2)

 High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached (Equipment Category 3)

 Tracked armored vehicles that provide ballistic protection to their occupants (Equipment Category 4)

 Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units (Equipment Category 5)

 Weaponized aircraft, vessels, or vehicles of any kind (Equipment Category 6)

 Battering rams, slugs, and breaching apparatuses that are explosive in nature (Equipment Category 7)

 Firearms and ammunition of .50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition (Equipment Category 8)

 Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code §30515, with the exception of standard-issue handguns (Equipment Category 9)

 Any firearm or firearm accessory that is designed to launch explosive projectiles (Equipment Category 10)
94  Noise-flash diversionary devices and explosive breaching tools (Equipment Category 11)

 Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray (Equipment Category 12)

 TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (Equipment Category 13)

 Kinetic energy weapons and munitions (Equipment Category 14)

 Any other equipment as determined by a governing body or a state agency to require additional oversight (Equipment Category 15)

Requirements of AB 481
AB 481 requires each law enforcement agency's governing body (the City Council) to commence the process of adopting a written military equipment use policy by May 1 , 2022, in order to continue the use of previously acquired military equipment. To help guide this process, Staff has attached a summary of AB 481, and a draft Policy Section to this report. Additionally, the Police Department posted the draft version of the policy on the City’s website on March 24, 2022 at least 30 days in advance of the City Council meeting where the item would be discussed, in compliance with the requirements of AB 481.

An itemized list of qualifying military equipment currently in HPD’s possession is included in this report as well as in the draft policy. Each item’s purpose and authorized use is described in specific detail in the attachment to the draft policy section to be included in the Hercules Police Department policy manual. The following are qualifying items currently in the Hercules Police Department equipment inventory:
 Unmanned, remotely piloted, powered aerial devices (2 drones)  Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units (1 Special Response Team van)  Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code §30515, with the exception of standard-issue handguns (28 - .223 caliber patrol rifles capable of firing 5.56mm ammunition)
 Noise-flash diversionary devices and explosive breaching tools (24 Noise Flash Diversionary Devices)
 Any firearm or firearm accessory that is designed to launch explosive projectiles (1 – S&W Mod. 226 37mm launcher)
95  Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray (10 - 12 ga. “penetrator” rounds capable of delivering powdered OC through thin walls or windows. Officers assigned to the County-wide Mobile Field Force are issued Def-Tech CS gas canisters while in that position)  Kinetic energy weapons and munitions (5 Kinetic Energy shotguns) AB 481 states each agency is required to establish the procedure for a person to register a complaint or concern regarding the possession or use of military equipment, and how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner. The City and the Police Department already have several avenues in place for filing a complaint with or about the Police Department; the Department will establish a procedure for responding to questions in a timely manner.

The attached Resolution if approved by Council will commence the governing body approval process in accordance with AB 481 requirements and will direct staff to schedule a public hearing where an ordinance will be presented for Council consideration and di scussion, public comment, and Council approval. Included with the ordinance and staff report will be Policy Section 709; Military Equipment Funding, Acquisition, and Use , a draft of which is provided as an attachment to this Report.

Additionally, AB 481 requires that each agency must prepare an Annual Report to include the use of military equipment, any complaints received, any internal audits or other information about violations of this Policy, the cost of such use , and other similar information. This report must be presented to the Governing Body (the City Council) as well as in a separate public forum. The City’s webpage will be utilized for distribution of any updates to the above materials as well as for public notification of the upcoming Annual Reports. The first Annual Report will be distributed on or about the one-year date after the final passage of the ordinance adopting all applicable AB 481 requirements.

ATTACHMENTS:

1. Policy Section 709; Military Equipment Funding, Acquisition, and Use

2. Military Equipment Description, Purpose, Use, Cost policy insert

3. AB 481 Resolution

4. Equipment List

5. Military Equipment Funding Policy

6. Military Equipment PPT

Page 1 of 2 ends

Resolution 22-

HERCULES CITY COUNCIL
RESOLUTION NO. 22-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES

COMMENCING THE GOVERNING BODY APPROVAL PROCESS IN
ACCORDANCE WITH CALIFORNIA ASSEMBLY BILL 481 REQUIREMENTS ,

AND DIRECTING STAFF TO RETURN TO COUNCIL WITHIN THE TIME

PROVIDED TO PRESENT FOR COUNCIL CONSIDERATION AT A NOTICED PUBLIC HEARING AN ORDINANCE COMPLYING WITH ALL AB 481

MANDATES REGARDING MILITARY EQUIPMENT FUNDING , ACQUIS ITION,

AND USE

WHEREAS, California Assembly Bill 481; Military Equipment Funding, Acquisition, and Use was adopted and signed into law by Governor Newsom on September 30, 2021; and

WHEREAS, AB 481 requires local law enforcement agencies to declare curr ently possessed “military equipment” as defined by the bill; and

WHEREAS, AB 481 requires local law enforcement agencies to seek and gain approval from their governing body to retain currently held equipment as well as prior to obtaining additional equipment; and

WHEREAS, AB 481 further requires local law enforcement agencies to adopt policy sections governing the funding, acquisition, purpose and use of qualifying military equipment; and

WHEREAS, the Hercules Police Department currently possesses some qualifying equipment as detailed in the draft Hercules Police Department policy section 709; and

WHEREAS, it is the desire of the Hercules Police Department to obtain from the City Council, who serves as the governing authority pursuant to AB 481, the authority to allow the continued possession of the equipment already in the inventory of the Hercules Police Department; and

WHEREAS, the Hercules Police Department is committed to seeking permission from the Ci ty Council of the City of Hercules prior to acquiring any additional equipment qualifying under AB 481; and

WHEREAS, the Hercules Police Department will provide an annual report on or around May First of each year on the use of any military equipment, any complaints received, any internal audits or violations of this policy, and the cost of such use.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules, the following:

Page 2 of 2 ends

Resolution 22-

1. The City Council hereby commences the governmental body approval process pursuant to the requirements of AB 481.

2. In accordance with the requirements of AB 481, the City Council hereby directs the Hercules Police Department to schedule a public hearing at an upcoming regularly scheduled City Council meeting to present an ordinance for Council consideration regarding draft policy section 709; Military Equipment Funding Acquisition and Use, to be added to the Hercules Police Department policy manual , said ordinance to contain all relevant findings required pursuant to AB 481.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 26th day of April 2022, by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dion Bailey, Mayor

ATTEST:

Lauren Berges
City Clerk
98 Assembly Bill No. 481

CHAPTER 406

An act to add Chapter 12.8 (commencing with Section 7070) to Division 7 of Title 1 of the Government Code, relating to military equipment.

[Approved by Governor September 30, 2021. Filed with Secretary of State September 30, 2021.]

legislative counsel’s digest
AB 481, Chiu. Law enforcement and state agencies: military equipment: funding, acquisition, and use.

Existing law designates the Department of General Services as the agency for the State of California responsible for distribution of federal surplus personal property, excepting food commodities, and requires the department to, among other things, do all things necessary to the execution of its powers and duties as the state agency for the distribution of fe deral personal surplus property, excepting food commodities, in accordance with specified federal law. Existing law, the Federal Surplus Property Acquisition Law of 1945, authorizes a local agency, as defined, to acquire surplus federal property without regard to any law which requires posting of notices or advertising for bids, inviting or receiving bids, or delivery of purchases before payment, or which prevents the local agency from bidding on federal surplus property. Existing federal law authorizes the Department of Defense to transfer surplus personal property, including arms and ammunition, to federal or state agencies for use in law enforcement activities, subject to specific conditions, at no cost to the acquiring agency.

This bill would require a law enforcement agency, defined to include specified entities, to obtain approval of the applicable governing body, by adoption of a military equipment use policy, as specified, by ordinance at a regular meeting held pursuant to specified open meeting laws, prior to taking certain actions relating to the funding, acquisition, or use of military equipment, as defined. The bill would also require similar approval for the continued use of military equipment acquired prior to January 1, 2022.

The bill would allow the governing body to approve the funding, acquisition, or use of military equipment within its jurisdiction only if it determines that the military equipment meets specified standards. The bill would require the governing body to annually review the ord inance and to either disapprove a renewal of the authorization for a type, as defined, of military equipment or amend the military equipment use policy if it determines, based on an annual military equipment report prepared by the law enforcement agency, as provided, that the military equipment does not comply with the above-described standards for approval. The bill would specify these provisions do not preclude a county or local municipality from implementing additional requirements and standards related to the purchase, use, and reporting of military equipment by local law enforcement agencies.

This bill would also require a state agency, as defined, to create a military equipment use policy before engaging in certain activities, publish the policy on the agency’s internet website, and provide a copy of 99 the policy to the Governor or the Governor’s designee, as specified. The bill would also require a state agency that seeks to continue use of military equipment acquired prior to January 1, 2022, to create a military equipment use policy. This bill would also include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

By adding to t he duties of local officials with respect to the funding, acquisition, and use of military equipment, this bill would impose a state-mandated local program.

The California Constitution requires local agencies, for the purpose of ensuring public access to t he meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains fi demonstrating that the enactment furthers the consti tutional requirements relating to this purpose.

This bill would make legislative findings to that effect.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

The people of the State of California do enact as follows:

SECTION 1. The Legislature finds and declares all of the following:
(a) The acquisition of military equipment and its deployment in our communities adversely impacts the public’s safety and welfare, including increased risk of civilian deaths, signific risks to civil rights, civil liberties, and physical and psychological well-being, and incurment of significant financial costs. Military equipment is more frequently deployed in low-income Black and Brown communities, meaning the risks and impacts of police militarization are experienced most acutely in marginalized communities. (b) The public has a right to know about any funding, acquisition, or use of military equipment by state or local government officials, as well as a right to participate in any government agency’s decision to fund, acquire, or use such equipment.
(c) Decisions regarding whether and how military equipment is funded, acquired, or used should give strong consideration to the public’s welfare, safety, civil rights, and civil liberties, and should be based on meaningful public input.
(d) Legally enforceable safeguards, including transparency, oversight, and accountability measures, must be in place to protect the public’s welfare, safety, civil rights, and civil liberties before military equipment is funded, acquired, or used.
100
(e) The lack of a public forum to discuss the acquisition of military equipment jeopardizes the relationship police have with the community, which can be undermined when law enforcement is seen as an occupying force rather than a public safety service.

SEC. 2. Chapter 12.8 (commencing with Section 7070) is added to Division 7 of Title 1 of the Government Code, to read:

Chapter 12.8. Funding, Acquisition, and Use of Military Equipment

7070. For purposes of this chapter, the following definitions shall apply:
(a) “Governing body” means the elected body that oversees a law enforcement agency or, if there is no elected body that directly oversees the law enforcement agency, the appointed body that oversees a law enforcement agency. In the case of a law enforc ement agency of a county, including a sheriff’s department or a district attorney’s office, “governing body” means the board of supervisors of the county. (b) “Law enforcement agency” means any of the following:
(1) A police department, including the polic e department of a transit agency, school district, or any campus of the University of California, the California State University, or California Community Colleges. (2) A sheriff’s department.
(3) A district attorney’s office.
(4) A county probation department.
(c) “Military equipment” means the following:
(1) Unmanned, remotely piloted, powered aerial or ground vehicles. (2) Mine-resistant ambush -protected (MRAP) vehicles or armored personnel carriers. However, police versions of standard consumer vehicles are specifically excluded from this subdivision. (3) High mobility multipurpose wheeled vehicles (HMMWV), commonly referred to as Humvees, two and one-half-ton trucks, five -ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. However, unarmored all -terrain vehicles (ATVs) and motorized dirt bikes are specifically excluded from this subdivision.
(4) Tracked armored vehicles that provide ballistic protection to their occupants and utilize a tracked system instead of wheels for forward motion.
(5) Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units.
(6) Weaponized aircraft, vessels, or vehicles of any kind. 101
(7) Battering rams, slugs, and breachin g apparatuses that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, or a handheld ram designed to be operated by one person, are specifically excluded from this subdivision.
(8) Firearms of .50 caliber or greater. Ho wever, standard issue shotguns are specifically excluded from this subdivision.
(9) Ammunition of .50 caliber or greater. However, standard issue shotgun ammunition is specifically excluded from this subdivision.
(10) Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to officers, agents, or employees of a law enforcement agency or a state agency.
(11) Any firearm or firearm accessory that is designed to launch explosive projectiles. (12) “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls,” excluding standard, service-issued handheld pepper spray.
(13) Taser Shockwave, microwave weapons, water cannons, and the Long Range Acoustic Device (LRAD).
(14) The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons. (15) Any other equipment as determined by a governing body or a state agency to require additional oversight.
(16) Notwithstanding paragraphs (1) through (15), “military equipment” does not include general equipment not designated as prohibited or controlled by the federal Defense Logistics Agency. (d) “Military equipment use policy” means a publicly released, written document governing the use of military equipment by a law enforcement agency or a state agency that addresses, at a minimum, all of the following:
(1) A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment. (2) The purposes and authorized uses for which the law enforcement agency or the state agency proposes to use each type of military equipment.
(3) The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment. (4) The legal and procedural rules that govern each authorized use. (5) The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any officer, agent, or employee of the law enforcement agency or the state agency is allowed to use each specific type of military equipment to ensure the full protection 102
of the public’s welfare, safety, civil rights, and civil liberties and full adherence to the military equipment use policy.
(6) The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy. (7) For a law enforcement agency, the procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the law enforcement ag ency will ensure that each complaint, concern, or question receives a response in a timely manner.
(e) “State agency” means the law enforcement division of every state office, department, division, bureau, board, and commission or other state body or agenc y, except those agencies provided for in Article IV (except Section 20 thereof) or Article VI of the California Constitution. (f) “Type” means each item that shares the same manufacturer model number. 7071. (a) (1) A law enforcement agency shall obtain app roval of the governing body, by an ordinance adopting a military equipment use policy at a regular meeting of the governing body held pursuant to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable, prior to engaging in any of the following:
(A) Requesting military equipment made available pursuant to Section 2576a of Title 10 of the United States Code.
(B) Seeking funds for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. (C) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(D) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. (E) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter. (F) Soliciting or responding to a proposal for, or entering into an agreement with, a ny other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of, military equipment. (G) Acquiring military equipment through any means not provided by this paragraph. (2) No later than May 1, 2022, a law enforceme nt agency seeking to continue the use of any military equipment that was acquired prior to January 1, 2022, shall commence a governing body approval process in accordance with this section. If the governing body does not approve the continuing use of milit ary equipment, including by adoption pursuant to this subdivision of a military equipment use policy submitted pursuant to subdivision (b), within 180 days of submission of the proposed military equipment 103
use policy to the governing body, the law enforcement agency shall cease its use of the military equipment until it receives the approval of the governing body in accordance with this section. (b) In seeking the approval of the governing body pursuant to subdivision (a), a law enforcement agency shall subm it a proposed military equipment use policy to the governing body and make those documents available on the law enforcement agency’s internet website at least 30 days prior to any public hearing concerning the military equipment at issue.
(c) The governing body shall consider a proposed military equipment use policy as an agenda item for an open session of a regular meeting and provide for public comment in accordance with the Bagley- Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable.
(d) (1) The governing body shall only approve a military equipment use policy pursuant to this chapter if it determines all of the following:
(A) The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety.
(B) The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties.
(C) If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. (D) Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance. (2) In order to facilitate public participation, any proposed or fi military equipment use policy shall be made publicly available on the internet website of the relevant law enforcement agency for as long as the military equipment is available for use.
(e) (1) The governing body shall review any ordinance that it has adopted pursuant to this section approving the funding, acquisition, or use of military equipment at least annually and, subject to paragraph (2), vote on whether to renew the ordinance at a regular meeting held pursuant to the Bagley- Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable.
(2) The governing body shall determine, based on the annual military equipment report submitted pursuant to Section 7072, whether each type of military equipment identified in that report has complied with the standards for approval set forth in subdivision (d). If the governing body determines that a type of military equipment identifi ed in that annual military equipment report has not complied with the standards for approval set forth in subdivis ion (d), the governing body shall either disapprove a renewal of the authorization for that type of military equipment or require modification to the military equipment use policy in a manner that will resolve the lack of compliance. 104
(f) Notwithstanding subdivisions (a) to (e), inclusive, if a city contracts with another entity for law enforcement services, the city shall have the authority to adopt a military equipment use policy based on local community needs.
7072. (a) A law enforcement agency that recei ves approval for a military equipment use policy pursuant to Section 7071 shall submit to the governing body an annual military equipment report for each type of military equipment approved by the governing body within one year of approval, and annually thereafter for as long as the military equipment is available for use. The law enforcement agency shall also make each annual military equipment report required by this section publicly available on its internet website for as long as the military equipment is available for use. The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment:
(1) A summary of how the military equipment was used and the purpose of its use. (2) A summary of any complaints or concerns received concerning the military equipment. (3) The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.
(4) The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.
(5) The quantity possessed for each type of military equipment. (6) If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. (b) Within 30 days of submitting and publicly releasing an annual military equipment report pursuant to this section, the law enforcement agency shall hold at least one well -publicized and conveniently located commu nity engagement meeting, at which the general public may discuss and ask questions regarding the annual military equipment report and the law enforcement agency’s funding, acquisition, or use of military equipment.
7073. (a) A state agency shall create a m ilitary equipment use policy prior to engaging in any of the following:
(1) Requesting military equipment made available pursuant to Section 2576a of Title 10 of the United States Code.
(2) Seeking funds for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. (3) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(4) Collaborating with a law enforcement agency or another state agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. 105
(5) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter. (6) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, or to apply to receive, acquire, use, or coll aborate in the use of, military equipment.
(7) Acquiring military equipment through any means not provided by this subdivision. (b) No later than May 1, 2022, a state agency seeking to continue the use of any military equipment that was acquired prior to January 1, 2022, shall create a military equipment use policy. (c) A state agency that is required to create a military equipment use policy pursuant to this section shall do both of the following within 180 days of completing the policy:
(1) Publish the military equipment use policy on the agency’s internet website. (2) Provide a copy of the military equipment use policy to the Governor or the Governor’s designee. 7074. The Legislature fi and declares that ensuring adequate oversight of the acquisition and use of military equipment is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this chapter applies to all cities, including charter cities and shall supersede any inconsistent provisions in the charter of any city, county, or city and county.
7075. Nothing in this chapter shall preclude a county or local municipality from implementing additional requirements and standards related to the purchase, use, and reporting of military equipment by local law enforcement agencies.

SEC. 3. The Legislature finds and declares that Section 1 of this act, which adds Chapter 12.8 (commencing with Section 7070) to Division 7 of Title 1 of the Government Code, furthers, within the meaning of paragraph
(7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:

Requiring local agencies to hold public meetings prior to th e acquisition of military equipment further exposes that activity to public scrutiny and enhances public access to information concerning the conduct of the people’s business.

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district under this act would result from a legislative mandate that is within the scope of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution.
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1 MILITARY EQUIPMENT INVENTORY

1. Unmanned Aerial Vehicles

a. Description, quantity, capabilities and purchase cost:

The Unmanned Aerial Vehicle (UAV) is a battery powered remote operated device with a flight time of approximately 30 – 45 minutes per battery, depending on weather and flight conditions. The UAV has been proven to be useful to public safety agencies in firefighting, search and rescue, pre-operational surveillance, and other tactical situations where aerial views enhance the safety and efficiency of law enforcement and fire personnel.

Mavic 2 Enterprise Advanced UAV, cost $6,499, quantity: 2

b. Purpose:

To be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to:

i. Major collisions investigation
ii. Search for missing persons
iii. Natural disaster management
iv. Crime scene photography
v. Critical incident, tactical or other public safety life preservation missions vi. In response to specific requests from fire authorities for fire response

c. Authorized use
Only assigned operators who have completed the required training, certification, and licensing shall be permitted to use Hercules Police Department’s UAVs during approved missions.

d. Expected lifespan
The expected lifespan of the Mavic 2 UAV is five years

e. Fiscal impact
Annual maintenance costs of approximately $0 - $500

2. Command and Control vehicles

a. Description, quantity, capabilities and purchase cost:
2008 Ford Econoline 350 transport van, Cost $0 (inner-city transfer from Parks and Recreation), quantity: 1
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This is a full-size van modified to transport Special Response Team (SRT) members and equipment to critical incidents and high-risk entry operations. The van is equipped with emergency lights and siren and is painted white with Hercules Police Department (PD) logos on it.
b. Purpose
To be used in response to critical incidents and pre-planned operations to transport personnel and equipment.

c. Authorized use
The use of the van is limited to trained Hercules Police Department SRT members.

d. Expected Lifespan
10 years

e. Fiscal Impact
Annual maintenance cost of approximately $1,000.

3. Specialized firearms and ammunition

a. Description, quantity, capabilities and purchase cost Shoulder fired rifle bored firearms capable of firing 5.56mm ammunition from high capacity magazines; shoulder fired smooth bored firearms capable of firing beanbag rounds, smoke canisters and Corson & Stoughton (CS) gas canisters also known as tear gas.

i. Colt AR-15 semi-automatic rifle for patrol use, cost: $920.00, quantity: 28 ii. Smith and Wesson Model 226 37mm canister launcher for deployment of projectile smoke or CS gas, cost $600.00, quantity: 1
iii. Remington 870 kinetic energy shotgun for patrol use, cost: $900.00, quantity: 5 iv. Defense Technologies 12 gauge powder barricade penetrator Oleoresin Capsicum (OC) rounds for barricaded subject critical incidents, cost $5.94, quantity: 10
v. Defense technology 37mm CS gas rounds used for riot control and disbursement, cost $39.50, quantity: 0
vi. Winchester Ranger 5.56mm 77 grain ammunition for patrol rifles, cost $878.00/1000 rounds, quantity: 7000
Winchester 5.56mm 55 grain ammunition for patrol rifles, Cost $359/1000 rounds, quantity: 12,000
vii. Defense Technology drag stabilized kinetic energy rounds for patrol, cost $5.35, quantity: 50

b. Purpose
To be used as precision weapons to address known threats from greater distance and behind cover, providing safer response to critical incidents involving heavily armed and protected suspect(s), to defuse vola2tile incidents with less than lethal force, to bring 108
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3 critical incidents to a close with the least amount of danger to the public, the involved subject(s) and the responding personnel.

c. Authorized use
Only personnel who have attended and passed training and certification courses approved by the Peace Officer Standards and Training (POST) Commission are authorized to possess or deploy patrol rifles, kinetic energy shotguns, or 37mm launcher.

d. Expected Lifespan

i. Colt AR-15 Rifle: 15 years
ii. S&W Mod 226 37mm launcher: 15 years
iii. Remington 870 kinetic energy shotgun: 15 years
iv. Defense technology OC rounds: no expiration date
v. Winchester 5.56mm rounds: no expiration date
vi. Kinetic energy rounds: no expiration date

e. Fiscal impact
Annual maintenance is approximately $50 for each rifle. Ammunition costs vary by availability. Approximately $2,500 annually.

4. Noise flash diversionary devices

a. Description, quantity, capabilities and purchase cost A Noise Flash Diversionary Device (NFDD) is a device that creates a bright flash and a loud explosive sound to divert the attention of subjects in the area and temporarily disorient them to additional sounds and movement. NFDD are used to temporarily incapacitate dangerous subjects by overwhelming their senses of vision and hearing.

The momentary distraction allows off icers to seize the opportunity to take control of high-risk situations.

i. Defense Technologies 12-gram low roll non-reloadable, cost $52.00, quantity: 24

b. Purpose
To produce atmospheric overpressure and brilliant white light and as a result can cause short-term (6-8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage.
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4 c. Authorized use
Diversionary devices shall only be used:

i. By SRT members who have been trained in their proper handling and use ii. In hostage or barricaded subject situations
iii. In high-risk warrant services where there may be extreme hazards to officers iv. During other high risk situations where their use would enhance officer safety v. During training exercises.

d. Expected lifespan
5 years

e. Fiscal impact
There are no maintenance costs associated with the storage of this device.

5. Munitions containing tear gas or OC

a. Description, quantity, capabilities and purchase cost Chemical agent munitions, which are commonly referred to as "tear gas," are used by the Hercules Police Department as a non-lethal tool to disperse rioting suspects and/or barricaded suspects. CS (2- Chlorobenzylidenemalonoi trile) and OC (Oleoresin Capsicum) are commonly used by law enforcement agencies across the United States.

CS is an irritating agent and lachrymator (irritates the eyes and causes tears to flow). CS has been medically tested in the UK and US, specifically by the U.S. Army. There are no known allergic reactions to CS. OC was de-regulated in California in 1996, is endorsed by the FBI, and is available to civilians to legally possess (2.5oz or less). OC is an inflammatory agent which causes involuntary closure of eyes (open 2-5 minutes) and respiratory inflammation (subsides in approximately 2 minutes).

i. Defense Technologies 12 gauge powder barricade penetrator OC for barricaded subject critical incidents, cost $5.94, quantity: 10 ii. Officers assigned to the County-Wide Mutual Aid Mobile Field Force (MAMFF) are issued Defense Technology CS gas by the Contra Costa Office of the Sheriff as part of their tactical duty gear when deployed by the MAMFF. They do not carry the CS gas as a part of their regular Patrol equipment in Hercules, however they do possess it in the event they need to respond to emergency deployment(s) elsewhere in the County. Cost $0, quantity: 2 each.

b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to:
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5 i. Self-destructive, dangerous and/or combative individuals. ii. Riot/crowd control and civil unrest incidents.
iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals.
v. Training exercises or approved demonstrations.

c. Authorized use
Only Officers who have received POST certification in the use of chemical agents are authorized to use chemical agents.

d. Expected Lifespan
Defense Technology OC rounds: No expiration date

e. Fiscal Impact
There are no maintenance costs associated with the storage of these devices 111
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****Draft**** Military Equipment Funding, Acquisition, and Use Policy pg. 1

709 Military Equipment Funding, Acquisition and
Use Policy

PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).

DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body - The elected or appointed body that oversees the Police Department

Military equipment - Includes but is not limited to the following:

• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five- ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units.

Weaponized aircraft, vessels, or vehicles of any kind.

Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of .50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.

Any firearm or firearm accessory that is designed to launch explosive projectiles.

Noise-flash diversionary devices and explosive breaching tools.

Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.

Any other equipment as determined by a governing body or a state agency to require additional oversite.
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****Draft**** Military Equipment Funding, Acquisition, and Use Policy pg. 2

709.2 POLICY
It is the policy of the Hercules Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment.

709.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this Department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying Department equipment that qualifies as military equipment in the current possession of the Department , or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Hercules Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the Department's funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the Department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.

709.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Hercules Police Department as of May 1, 2022:
• Special Respons e Team Transport Vehicle
• Patr ol R if les
• Noise flas h diversionary devices
• Tear Gas explosive canist ers when assign ed to Mutu al Aid Mobile Fie ld Force (M AMFF), powdered OC ferr et rounds
• Kin etic energy weapons
• Unmanned, remotely pilote d powered aerial devic es 113
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****Draft**** Military Equipment Funding, Acquisition, and Use Policy pg. 3

• 37mm launchers

709.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy . As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the Department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above.

709.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment used by any member of this jurisdiction shall be approved for use and in accordance with this Department policy. Military equipment used by other jurisdictions that are providing mutual aid to this jurisdiction shall comply with their respective military equipment use policies in rendering mutual aid.

709.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the Department w e b s i t e for as long as the military equipment is 114
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****Draft**** Military Equipment Funding, Acquisition, and Use Policy pg. 4

available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory .

709.8 COMMUNITY EN G A G EM EN T
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting , at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.

MILITARY EQUIPMENT INVENTORY pd
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****Draft**** Military Equipment Funding, Acquisition, and Use Policy pg. 5

116
Hercules Police
Department
Military Equipment Policy
117
Assembly Bill 481: Military Equipment Funding,
Acquisition, and Use Policy
September, 2021 Governor Newsom signed into legislation bills designed to increase transparency and reform policing.
• Releasing Records
• Decertification
• Accountability Guidelines
• Increased Eligibility Standards
• Banning Harmful Techniques
• Creating a Public Forum for Funding, Acquisition, Use of Military Equipment 118
What is “Military Equipment”?
Fifteen categories were created in the legislation to define what “Military Equipment” was for the purpose of the Bill:

1. Unmanned, remotely piloted, powered aerial or ground vehicles

2. Mine-r esistant ambush -protected vehicles or armored personnel carriers

3. High mobility multipurpose wheeled vehicles (HMMWV), two-an d-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached

4. Tracked armored vehicles that provide ballistic protection to their occupants

5. Command and control vehicles that are either built or modified to facilitate the operational control and dir
ection of public safety units

6. Weaponized aircraft, vessels, or vehicles of any kind

7. Battering rams, slugs, and breaching apparatuses that are explosive in nature

8. Firearms and ammunition of .50 caliber or greater, excluding standard-is sue shotguns and standard- issue shotgun ammunition
119
What is “Military Equipment”? Cont…

9. Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories i
dentified as assault weapons in Penal Code § 30510 and Penal Code §30515, with the exception of standard-issue handguns

10. Any firearm or firearm accessory that is designed to launch explosive projectiles

11. Noise-f lash diversionary devices and explosive breaching tools

12. Munitions containing tear gas or OC, excluding standard, service-i ssued handheld pepper spray

13. TASER® Shockwave, microwave weapons, water cannons, and long-r ange acoustic devices

14. Kinetic energy weapons and munitions

15. Any other equipment as determined by a governing body or a state agency to require additional ove
rsight
120
Requirements
of AB 481
• Begin process of adopting written policy by May 1, 2022 • Post written policy on City Website with at least 30 days notice prior to publ
ic discussion
• Provide itemized list of each item of qualifying military equipment to inc
lude:
• Description, quantity, capabilities, expected lifespan • Purpose and authorized use
• Fiscal impact including initial cost and estimated annual costs • Legal and procedural rules governing authorized use
• Prerequisite training prior to being used
• Mechanisms to ensure compliance with policy
• Procedures for complaints
• Prepare an annual report for Council as well as a public forum. 121
Inventory of qualifying HPD Military Equipment
• HPD currently has in inventory equipment in the following categories:
• Unmanned, remotely piloted, powered aerial devices
• Command and control vehicles that are either built or modified to facilitate the operational control a
nd direction of public safety units
• Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories i
dentified as assault weapons
• Noise-f lash diversionary devices and explosive breaching tools • Any firearm or firearm accessory that is designed to launch explosive projectiles • Munitions containing tear gas or OC, excluding standard, service-i ssued handheld pepper spray • Kinetic energy weapons and munitions
122
• Unmanned, remotely piloted,
p
owered aerial devices (2
drones)
123
Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units (1 Special Response Team van) 124
Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code §30515, with the exception of standard-issue handguns (28 - .223 caliber patrol rifles capable of firing 5.56mm ammunition) 125
Any firearm or firearm
accessory that is designed
to launch explosive
projectiles
(1 – S&W Mod.
226 37mm launcher)
126
Kinetic energy
weapons and
munitions
(5
Kinetic Energy
shotguns)
127
Noise-flash diversionary devices and
explosive breaching tools (24 Noise
Flash Diversionary Devices)
Munitions containing tear gas or OC,
excluding standard, service-issued
handheld pepper spray (10 - 12 ga.
“penetrator” rounds capable of
delivering powdered OC through thin
walls or windows. Officers assigned to
the County-wide Mobile Field Force are
issued Def-Tech CS gas canisters while
in that position)
128

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STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of April 26, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Michael Roberts, Public Works Director/City Engineer

SUBJECT: FY 2022/23 Landscaping and Lighting Engineer's Reports

RECOMMENDED ACTION:

Adopt a resolution directing the filing of the Annual Engineer's Reports for the City of Hercules Landscaping and Lighting Assessment District No. 83 -2, Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1, Hercules Village Landscaping and Lighting Assessment District No. 2002 -2, Baywood Landscaping and Lighting Assessment District No. 2004 -1, and Bayside Landscaping and Lighting Assessment District No. 2005-1 pursuant to the Landscaping and Lighting Act of 1972.

FISCAL IMPACT OF RECOMMENDATION:

Levying the assessments as proposed would generate revenue of approximately $3.05 million for FY 2022/23.

DISCUSSION:

As required by the Landscaping and Lighting Act of 1972 (hereinafter “the Act”), the first step in the annual process to levy and collect assessments through the City’s five (5) Landscaping and Lighting Assessment Districts (LLADs) is the preparation of an annual Engineer’s Report for each District.

The Act requires the City adopt a resolution ordering the filing of the Engineer’s Report and the Engineer’s Report identify the following:

1) The fiscal year for which the report applies.
2) Any proposed new improvements or any substantial changes in existing improvements. 3) Plans and specifications for the improvements.
4) An estimate of the cost of the improvements, including:
a) The total cost for improvements to be made that year, being the total cost of constructing or installing all proposed improvements and of maintaining and servicing all existing and 129

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proposed improvements, including all incidental expenses. This may include a reserve which shall not exceed the estimated cost of maintenance and servicing through December 31st of the fiscal year, or whenever the C ity expects to receive its first installment of special assessments and tax collections from the County, whichever is later. b) The amount of any surplus or deficit in the improvement fund to be carried over from a previous fiscal year.
c) The amount of any contributions to be made from sources other than assessments. d) The net amount to be assessed upon assessable lands within the District. 5) An assessment diagram for the District.
6) An assessment of the estimated cost of the improvements, which will:
a) State the net amount to be assessed upon assessable lands within the District. b) Describe each assessable lot or parcel of land within the District. c) Assess the net amount upon all assessable lots or parcels of land within the District by apportioning that amount among the several lots or parcels in proportion to the estimated benefits to be received by each lot or parcel from the improvements.

The adoption of the recommended resolution directs the preparation of the Engineer’s Report for each District which will be brought to the City Council for preliminary approval at the May 10, 2022 City Council meeting. At that time, the City Council may request modifications to the Engineer’s Report and will adopt a resolution declaring its intent to levy and collect assessments within each District and set a public hearing date for consideration of the assessments.

LLAD BACKGROUND INFORMATION:

1. Landscaping and Lighting Assessment District No. 83-2 Landscaping and Lighting Assessment District No. 83-2 (hereinafter “LLAD No. 83-2”) was formed on January 5, 1984 by Resolution No. 84-7. LLAD No. 83-2 originally consisted of four residential areas or zones: Zone 1 (Olympian Hills, Citation Homes West of San Pablo and Historic Homes), Zone 2 (Foxboro and Willow Glen Apartments), Zone 3 (Valley Oaks and Tiffany Ridge) and Zone 4 (Falcon Heights).

Later in 1984; Zones 3 and 4 were combined when connected by the Marsten Ranch development annexation; Zone 5 (commercial and undeveloped properties) was annexed to LLAD No. 83-2, Zone 6 (Village Parkway) a residential area was separated from Zone 5 upon development, and Zone 7 (Hanna Ranch) was annexed to the LLAD No. 83-2.

In 1991, the existing neighborhoods known as Zone 8 (Trees and Flowers) and Zone 9 (Birds and Country Run) and Zone 10 (Citywide park and recreation facilities) were annexed to LLAD No. 83- 2 following a mailed assessment ballot proceeding.

In 1997 the assessment methodology was revised to conform to the requirements of Article XIII D of the California Constitution (enacted by Proposition 218). An assessment ballot proceeding in June of 1997 confirmed LLAD No. 83-2. The June 1997 assessment ballot authorized the City to levy and collect assessments through FY 2002/03. The 1997 assessment ballot proceeding also authorized the City to increase assessments annually by the prior year’s change in the Consumer Price Index (CPI) each fiscal year through FY 2002/03.

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In FY 2003/04 the property owners approved an assessment increase commencing FY 2003/04 and approved the continuation of LLAD No. 83-2 through FY 2012/13. The 2003 assessment ballot proceeding also authorized the City to annually increase assessments by the prior year’s change in the Consumer Price Index (CPI) each fiscal year through FY 2012/13.

In May of 2010, the property owners approved three (3) major changes to LLAD No. 83-2 commencing in FY 2010/11:

1. The removal of the assessment levy sunset date of FY 2012/13 and allowing LLAD No. 83-2 to continue in perpetuity.

2. Continuation of the authorization to increase assessments annually by the prior year’s change in the Consumer Price Index (CPI).

3. Changes to the assessment methodology to recognize changes to developing areas to provide consistency throughout LLAD No. 83-2.

In FY 2016/17 the City conducted a Proposition 218 election to increase assessments in LLAD No. 83-2 Benefit Zones 1, 3&4, 5C, 6, and 7 for FY 2017/18. The assessment increase was approved by property owners in Benefit Zone 5C for FY 2017/18. In FY 2017/18 the City conducted a Proposition 218 election to increase assessments in LLAD No. 83-2 Benefit Zones 1, 3&4, 6, 7 and 9 for FY 2018/19. The assessment increase w as approved by property owners in Benefit Zone 9 for FY 2018/19. In FY 2018/19 the City conducted a Proposition 218 election to increase assessments in LLAD No. 83-2 Benefit Zone 1 and the areas of Benefit Zone 7 excluding Bay Pointe, Bravo, and Caprice for FY 2019/20. The assessment increase was approved by property owners in Benefit Zone 1 and the areas of Benefit Zone 7 excluding Bay Pointe, Bravo, and Caprice within LLAD No. 83-2 for FY 2019/20.

2. Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 The Victoria by the Bay development was required to install approximately 24 acres of landscaped medians, frontages and parks and 211 streetlights as a condition for approval of the development. The area was formerly part of Zone 5C in LLAD No. 83-2. The improvements in the Victoria by the Bay development were determined to be distinct from other improvements within existing LLAD No. 83- 2 and to require a higher level of maintenance. Therefore, the development was detached from LLAD No. 83-2 and Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 was formed on May 14, 2002 by Resolution No. 02-050 of the City Council pursuant to the Landscaping and Lighting Act of 1972.

3. Hercules Village Landscaping and Lighting Assessment District No. 2002-2 The Hercules Village development was required to extend Railroad Avenue, install approximately 50 acres of landscaped improvements, which include parkway strips, paseos, an enhanced pond and detention basins, 122 streetlights and provide slope and retaining wall maintenance adjacent to the City’s existing pedestrian pathway as a condition for approval of the development. The area was formerly part of Zone 5C in LLAD No. 83-2. The improvements in the Hercules Village development were determined to be distinct from other improvements within existing LLAD No. 83-2 and would require a higher level of maintenance. Therefore, the development was detached from LLAD No. 83- 2 and Hercules Village Landscaping and Lighting Assessment District No. 2002-2 was formed on May 14, 2002 by Resolution No. 02-049 of the City Council pursuant to the Landscaping and Lighting Act of 1972.

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Page 4 ends

4. Baywood Landscaping and Lighting Assessment District No. 2004-1 The Baywood development was required to extend Sycamore Avenue 60 feet, install approximately

4.5 acres of landscaped improvements, which include tree-lined streets, alleyways, and natural open spaces, and construct 37 streetlights as a condition for approval of the development. The area was formerly part of Zone 5C in LLAD No. 83-2. The improvements in the Baywood development were determined to be distinct from other improvements within existing LLAD No. 83-2 and would require a higher level of maintenance. Therefore, the development was detached from LLAD No. 83-2 and Baywood Landscaping and Lighting Assessment District No. 2004-1 was formed on April 13, 2004 by Resolution No. 04-034 of the City Council pursuant to the Landscaping and Lighting Act of 1972.

5. Bayside Landscaping and Street Lighting Assessment District No. 2005-1 The Bayside development was required to install a 0.67 acre neighborhood park and public street lights as a condition of approval of the development. The area was formerly part of Zone 5C in LLAD No. 83-2. The improvements in the Bayside development were determined to be distinct from other improvements within existing LLAD No. 83-2 and would require a higher level of maintenance.

Therefore, the development was detached from LLAD No. 83-2 and Bayside Landscaping and Lighting Assessment District No. 2005-1 was formed on May 10, 2005 by Resolution No. 05-060 of the City Council pursuant to the Landscaping and Lighting Act of 1972.

ATTACHMENTS:

1. Resolution of Initiation

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Attachment 1

RESOLUTION 22-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES DIRECTING THE FILING OF THE ANNUAL ENGINEER’S REPORT FOR CITY OF HERCULES LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 83 -2, VICTORIA BY THE BAY LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 2002 -1,

HERCULES VILLAGE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 2002 -2, BAYWOOD LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 2004-1, AND BAYSIDE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 2005-1 PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972

WHEREAS, the City Council through previous resolutions has established and levied annual assessments for the City of Hercules Landscaping and Lighting Assessment District No. 83 -2, Victoria by the Bay Landscaping and Lighting Assessment District No. 2002 -1, Hercules Village Landscaping and Lighting Assessment District No. 2002 -2, Baywood Landscaping and Lighting Assessment District No. 2004-1, and Bayside Landscaping and Lighting Assessment District No. 2005-1 (hereinafter referred to as the “Districts”), pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500 ) (hereinafter referred to as the “Act”) that provides for the collection of assessments by the County of Contra Costa on behalf of the City of Hercules to pay the maintenance and services of improvements and facilities related thereto;

WHEREAS, the City Council desires to initiate proceedings for the levy of annual assessments against certain lots and parcels of land within the Districts for fiscal year 2022/23 for the landscape and lighting improvements and services that will provide be nefit to the properties within the Districts pursuant to the provisions of the Act;

WHEREAS, the City has retained Francisco & Associates (hereinafter referred to as the “Engineer”), for the purpose of assisting with the levy of such assessments, including the preparation and filing of the Engineer’s Report with the City Clerk in accordance with the Act.

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

1. The above recitals are true and correct.

2. Engineer’s Report: The City Council hereby orders the Engineer to prepare and file with the City Clerk Engineer's Reports concerning the improvements and services within the Districts and the levy of assessments within the Districts for the fiscal year commencing July 1, 2022 and ending June 30, 2023, in accordance with Chapter 3 Section 22623 of the Act. Said Engineer’s Reports shall contain a description of the improvements and services, an estimate of the costs financed by the levy of the assessments, the properties benefiting from the improvements, the method of apportioning the assessments, and any substantial changes to the existing improvements and assessments.

3. Proposed Improvements: The improvements and services include but are not limited to the maintenance, operation and incidental expenses related to: streetlighting, street trees; firebreaks and nuisance trees in open space; turf; ground cover and shrubs; irrigation and electrical systems; monuments; fountains; hardscape improvements; masonry walls and other fencing, and all necessary appurtenances and services connected with the landscaped channel ways, medians, 133
Attachment 1

parkways, entryways, parks and public easements and facilities designated and maintained as part of the District improvements. The Engineer ’s Reports prepared in connection with these proceedings shall provide a more detailed description of the improvements and services to be provided by the Districts and which properties are proposed to be assessed.

The foregoing Resolution was duly and reg ularly adopted at a regular meeting of the City Council of the City of Hercules held on the twenty-sixth day of April 2022, by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dion Bailey, Mayor

ATTEST:

Lauren Berges, City Clerk
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1 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of April 26, 2022

TO: Mayor Bailey and Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Patrick Tang, City Attorney
Michael Roberts, Public Works Director/City Engineer

SUBJECT: AB 1276 – Single-Use Plastics Reduction Enforcement Requirements

RECOMMENDED ACTION:

Accept staff report, and provide direction to staff regarding the scope of a proposed ordinance implementing AB 1276 enforcement requirements.

FISCAL IMPACT OF RECOMMENDATION:

Enforcement of the single-use plastic reduction requirements would require an as yet undetermined amount of code enforcement and administrative staff time.

EXECUTIVE SUMMARY:

The purpose of this item is to provide an update on recent state law affecting the regulation of single- use plastic items, provide information on components of ordinances addressing single -use plastic reduction including approaches utilized by other jurisdictions, and seek feedback from the Council on next steps regarding development of similar regulations for the City.

BACKGROUND:

Plastic pollution is a massive problem. Every year in the United States, an estimated 561 billion disposable items are used, resulting in 4.9 million tons of waste.1 Much of this plastic ends up in the ocean, with approximately 2.4 million tons of plastic waste each year from the United States alone.

Because plastic degrades and breaks down into pieces only very slowly, it poses a huge threat to wildlife and ecosystems and makes clean-up efforts more challenging. California communities are estimated to spend more than $428 million annually to clean up and control plastic pollution.2

In light of Governor Newsom’s signing of Assembly Bill 1276 (AB 1276), which amended existing law regulating single -use plastic straws, staff seeks input regarding the City’s approach to

1 E. Moss, R. Grousset, The Dirty Truth about Disposable Foodware, The Overbrook Foundation – February 2020. 2 Ocean Protection Council.
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2 development of regulations intended to satisfy State requirements for compliance with AB 1276, and the potential for expanding upon existing law, if directed by Council.

DISCUSSION:

On October 5, 2021, AB 1276 was signed into law by Governor Newsom. AB 1276 amends existing law to support the goal of reducing the use of, and waste generated by, all single-use food service products. Specifically, this bill prohibits a food facility from providing any single -use foodware accessory or standard condiment, as defined, unless requested by the consumer. It further prohibits these items from being bundled or packaged in a way that prohibits the consumer from taking only the item desired. Additionally, AB 1276 requires that on or before June 1, 2022, local jurisdictions shall authorize an enforcement agency to enforce the regulations. Penalties include a notice of violation for the first two violations, with any subsequent infraction punishable by a fine of $25 for each day in violation, but not to exceed $300 annually.

While AB 1276 does not ban single-use plastic foodware - it makes it only available upon request - the law specifically states that nothing in it prevents a local jurisdiction from adopting and implementing an ordinance or rule that would further restrict a fo od facility or a third -party food delivery platform from providing single -use foodware accessories or standard condiments to a consumer. Therefore, the City may choose to expand upon the existing law.

Many cities in California have expanded upon state law and have banned some single-use plastics completely. For example, Daly City, Santa Monica, and Malibu have banned plastic utensils and stirrers in favor of marine-degradable and/or compostable disposable food service ware. The penalties for failure to comply with these bans vary in severity. Many jurisdictions issue notices of violation, and others issue fines that exceed the amounts s pecified in AB 1276. In Laguna Beach, fines are cumulative and go up to $500 for the third and each subsequent day of viola tion after an initial warning.

The summaries below highlight the range of actions taken by a few cities as examples:

• Berkeley – Disposable accessory items (straws, stirrers, utensils, condiment packets, etc.) to be provided only on customer request, and all disposable accessory items must be certified compostable.

• Palo Alto – Final passage of an ordinance adopting the minimum AB 1276 requirements is scheduled to be heard by the City Council on April 18, 2022.

• Daly City - On September 13, 2021, the Daly City Council adopted a Disposable Food Service Ware Ordinance eliminating the unnecessary distribution and use of single -use plastics. The City’s new regulation will require Daly City food facilities to transition t o non- plastic alternatives. Straws, stirrers, bundled utensils, and cocktail/toothpicks (and the packaging that these individual items are wrapped in if any) must be non-plastic and compostable materials , or reusable wherever practicable. Acceptable materials include natural fiber-based products such as paper, sugarcane, wheat stalk/stem, bamboo, wood, etc. Traditional plastics (petroleum -based) and compostable plastics (aka bioplastics or polylactic acid [PLA]) shall not be allowed.
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3 Plates, bowls, cups, food trays, clamshells, boxes, deli containers, and other containers must be non -plastic and compostable, or reusable wherever practicable.

Additionally, these items shall be certified by the Biodegradable Products Institute (BPI) or an approved third party.
• Santa Barbara - The City of Santa Barbara has regulations in place that prohibit plastic straws and stirrers, and which makes plastic cutlery available upon request. These restrictions are compliant with AB 1276. Santa Barbara has adopt ed a separate ordinance that bans Polystyrene food containers.

• Carpinteria - The City of Carpinteria in 2019 banned single-use plastic foodware all together, and made non-plastic foodware only available upon request. Carpinteria is in compliance with AB 1276 and goes a step further by placing restrictions on all single-use food accessories.

• Goleta – To meet the state deadline of June 1, 2022 , for compliance with AB 1276 requirements, the City of Goleta is taking a two-step approach to proposed plastic reduction regulations. The first step is the proposed ordinance to bring the City into compliance with the state legislation (The first reading of the Ordinance is scheduled for April 19, 2022). The second step includes developing a second ordinance that would expand upon state law by prohibiting additional types of single-use plastics.

• West Hollywood - The City of West Hollywood is currently in the process of banning plastic products in food service. On October 4th, 2021, the City of West Hollywood City Council directed staff to draft an amendment to the City’s municipal code to prohibit food and beverage providers from distributing single -use non -marine-degradable disposable food service ware. This includes single-use plastic straws, utensils, containers, lids, lid plugs, cups, bowls, etc.

• Manhattan Beach - Manhattan Beach banned single use plastic foodware in 2018, and in 2019 banned meat trays, egg cartons, and has restrictions on balloons to reduce plastic pollution.

CONCLUSION:

As mentioned previously, AB 1276 requires that the City authorize an enforcement agency to enforce the new regulations by June 1, 2022. Staff will proceed with developing a draft ordinance to comply with AB 1276 requirements , based on Council direction reg arding the scope of the proposed ordinance. There are two decision points: 1) Should the City ordinance address the provision of single- use foodware accessories only on request, consistent with AB 1276, or should it be expanded to limit or entirely prohibit single-use plastic food service ware, as a number of cities have done? 2) Should the City ordinance retain the AB 1276 fine of $25 for each day in violation but not to exceed $300 annually, or set a higher violation rate such as the $100/$200/$500 admini strative citation rate provided in the existing Hercules Municipal Code?

By banning single-use plastics and/or setting a higher penalty rate, the City of Hercules would go beyond the requirements of AB 1276. If the decision is made to further restrict or ban single-use plastics, this may impose a hardship on local restaurant owners who may then have to incur the cost to re-stock with marine-degradable and/or compostable disposable food service ware. Some cities, 137

4 such as Daly City, conducted extensive outreach to local food businesses to obtain feedback and address concerns prior to adopting a ban on single-use plastics. Goleta is considering a future ban on single-use plastics to be considered for adoption after outreach to and feedback from the community, but in the short term will consider the passage of an ordinance that meets the minimum threshold requirements under AB 1276. If a ban on single-use plastics is to be considered, an effective date sometime in the future could be included, to allow restaurants time to acquire alternative food service ware.

Active enforcement of single-use plastic food service ware regulations may not be possible given current code enforcement staffing levels ; it is likely that violations would be investigated on a complaint-only basis. Issuing, administering, and collecting administrative penalties is a staff intensive effort and fines received typically do not cover the City’s cost in administering the penalty program.

Regardless of which approach is taken, an effort will need to be made to inform both residents and food businesses of their obligations under the newly adopted provisions. By implementing regulations resulting in source reductions for single-use plastic items, the City would be supporting one aspect of a more comprehensive approach to reducing plastic pollution.

Attachments:

1) Sample AB 1276 ordinance from City of Goleta (does not expand AB 1276 enforcement requirements)
2) AB 1276 Full Text

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65266.00008\34922510.1

ORDINANCE NO. 22-XX

AN ORDINANCE ADDING ARTICLE VI. REGULATING

SINGLE-USE FOODWARE ACCESSORIES AND
STANDARD CONDIMENTS, SECTIONS 8.10.910 TO

8.10.960 TO CHAPTER 8.10 OF THE GOLETA MUNICIPAL
CODE

WHEREAS,
the California State Legislature has recognized that littered plastic products have caused and continue to cause significant environmental harm and have burdened local governments with significant environmental cleanup costs (California Public Resources Code Section 42355); and

WHEREAS, in October 2021, Governor Newsom signed into law California State Assembly Bill (AB) 1276 which expands on existing law prohibiting restaurants from providing single-use plastic straws unless requested by the consumer, by prohibiting food facilities from providing any single- use foodware accessory or standard condiment, as defined, to a consumer unless requested by the consumer; and

WHEREAS, single-use foodware accessories, including napkins, straws, condiments, forks, spoons, sporks, knives, and other disposable flatware create waste and environmental hazards, and therefore should only be made available upon request in compliance with AB 1276; and

WHEREAS, over one hundred municipalities in California have adopted ordinances prohibiting or restricting single -use foodware accessories, which have reduced the volume of single-use foodware accessories in waste streams and throughout the natural environment; and

WHEREAS, the City of Goleta City Council prioritized development of regulations for single- use p lastic reduction during review of the City of Goleta’s Planning and Environmental Review Department’s Annual Work Program in 2021; and

WHEREAS, AB 1276 as amended requires the City to authorize an enforcement agency to enforce its requirements; and

WHEREAS, the City of Goleta seeks to implement AB 1276 as amended by authorizing an enforcement agency to enforce its requirements prohibiting distribution of single-use foodware accessories and standard condiment s unless requested by the consumer on or before June 1, 2022.

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65266.00008\34922510.1

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GOLETA DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Code Amendment . Article V I, Regulation of Single- Use Foodware Accessories and Standard Condiments, Sections 8.10.910 to 8.10.960 are hereby added to Chapter 8.10 (“Integrated Waste Management”) of the Goleta Municipal Code and shall read as follows:

Article VI Single -Use Foodware Accessory and Standard Condiment Reduction Ordinance

8.10.910 Title

8.10.920 Purpose and Applicability

8.10.930 Definitions

8.10.940 Requirements

8.10.950 Exemptions

8.10.960 Enforcement and Penalties

8.10.910 Title

This Chapter shall be known as “Single -Use Foodware Accessory and Standard Condiment Reduction Ordinance” and may be so cited.

8.10.920 Purpose and Applicability

The City Council finds and declares that the purpose of this Chapter is to comply with AB 1276 and mandate that all single-use foodware accessories and standard condiments be made available upon request only.

8.10.930 Definitions

(a) “AB 1276” means the California State Assembly B ill regulating the distribution of single-use foodware accessories by food vendors to be made available only upon request of the consumer. The new law applies to plastic and non-plastic single-use foodware items and standard condiments. This law requires the City of Goleta to authorize an enforcement agency on or before June 1, 2022.

(b) “Single-use Foodware Accessories” means disposable products intended for single or limited number of uses, used in the restaurant and food service industry for serving or transporting prepared, ready-to-consume food or beverages. Single- use foodware includes, but is not limited to, plates, cups, bowls, trays, hinged or lidded containers, straws, stirrers, lid plugs, lids and utensils. This does not include disposable packaging for unprepared foods.

(c) “Standard C ondiment” means relishes, spices, sauces, confections, or seasonings that require no additional preparation and that are usually used on a 140
65266.00008\34922510.1

food item after preparation, including ketchup, mustard, mayonnaise, soy sauce, hot sauce, salsa, salt, pepper, sugar, and sugar substitutes.

(d) “Food Service V endor” means any business, organization, entity, group, or individual providing prepared food or beverages for public consumption on or off its premises within the City of Goleta.

(e) “Digital Ordering Platform” means the digital technology provided by an internet website or mobile application used by customers to order food and/or schedule food delivery.

(f) “Refillable Self-service Dispenser” means a container or equipment that is used to hold disposable foodware accessories for customers to obtain at their discretion.

8.10.940 Requirements for Food Service Vendors

A. Food Service Vendors shall only distribute single-use foodware accessories and standard condiments upon the request of the customer, unless a local, county or State emergency order is in effect requiring distribution of such single- use foodware accessories and standard condiments. However, employees are not prohibited from asking customers if they would like any single -use foodware accessories or standard condiments and providing the amount requested by the customer.

B. Food Service vendors shall place signs on the premises to inform customers and employees that single-use foodware accessories and standard condiments are offered only upon request.

C. Food Service vendors shall include in their D igital Ordering Platforms for ordering food a statement that communicates that single -use foodware accessories are offered only upon request and shall include the ability for customers to select which foodware accessories or standard condiments they want. The food service vendor shall customize its menu with a list of available single-use foodware accessories and standard condiments, and only those single- use foodware accessories or standard condiments selected by the consumer shall be provided by the food facility. If a consumer does not select any single- use foodware accessories or standard condiments, no single-use foodware accessory or standard condiment shall be provided by the food facility for delivery of ready - to-eat food.

D. Food Service Vendors shall instruct employees to inform customers that single- use foodware accessories and standard condiments are offered only upon request.

E. Food Service Vendors shall not package Single-use Foodware Accessories and Standard Condiments in a manner that prohibits a custome r from taking only the type of Single- use Foodware Accessory or Standard Condiment desired without 141
65266.00008\34922510.1

also having to take a different type of Single-use Foodware Accessory or Standard Condiment.

F. Food Service Vendors may ask a drive-through customer if the consumer wants a Single -use Foodware Accessory if the Single- use Foodware A ccessory is necessary for the consumer to consume ready -to-eat food, or to prevent spills of or safely transport ready -to-eat food, or to prevent spills of or safely transport ready-to-eat food.

8.10.950 Exemptions

A. This chapter shall not apply to Refillable Self-Service Dispensers. Food Service Vendors may therefore make Standard Condiments and Single-use Foodware Accessories available for customers to obtain as needed. Food Service Vendors are encouraged to use bulk dispensers for the condiments rather than condiments packaged for single-use.

B. This chapter shall not apply to the following institutions or facilities:
a. Correctional institutions, which has the same meaning as in Section 7502 of the Penal Code.
b. Health care facilities licensed pursuant to Article 1 (commencing with Section 1250) of Chapter 2 of Division 2 of the Health and Safety Code or facilities that are owned or operated by a health care service plan licensed pursuant to Chapter 2.2 (commencing with Section 1240) of Division 2 of the Health and Safety Code.
c. Residential care facilities licensed pursuant to Division 2 (commencing with Section 1200) of the Health and Safety Code.
d. Public and private school cafeterias, as referenced in paragraph (1) of subdivision (b) of Section 113789 of the Health and Safety Code.

8.10.960 Enforcement and Penalties

A. The first and second violations of this chapter shall result in a notice of violation, and any subsequent violation shall constitute an infraction punishable by a fine of twenty-five dollars ($25) for each day in violation, but not to exceed an amount of three hundred dollars ($300) annually.

B. Unless otherwise provided for in this Chapter 8.10, the City’s procedures on imposition of administrative fines, Chapter 1.02, Sections 1.02.010 – 1.02.140, are hereby incorporated in their entirety, as modified from time to time, and shall govern the imposition, enforcement, collection, and review of administrative citations issued to enforce this article and any rule or regulation adopted pursuant to this a rticle, except as otherwise indicated in this article. This article shall only apply to those entities subject to the City’s regulatory jurisdiction.

C. The City Manager, or his/her designee, shall have primary responsibility for enforcement of this chapter and shall have authority to issue citations for violation 142
65266.00008\34922510.1

of any provision of this chapter. The City Manager, or his/her designee, may establish regulations or administrative procedures and take any actions reasonable and necessary to further the purposes of this chapter or to obtain compliance with this chapter, including, without limitation, performing an inspection of a retail establishment’s premises to verify compliance with this chapter.

D. Any violation of any of the requirements of this chapter shall constitute an infraction. Each and every day that a violation occurs shall constitute a separate violation.

E. The remedies and penalties provided in this chapter are cumulative and not exclusive, and nothing in this chapter shall preclude the Cit y from pursuing any other remedies. The City Attorney may seek legal, injunctive, or any other relief to enforce the provisions of this chapter and any regulation or administrative procedure developed pursuant hereto.

SECTION 3. No Conflict with Federal or State Law. Nothing in this Chapter is intended to create any requirement, power, or duty that is in conflict with any federal or state law.

SECTION 4 : CEQA. The City of Goleta has determined that the adoption of this Ordinance is exempt from review under the California Environmental Quality Act ("CEQA") (California Public Resources Code Section 21000, et seq.), pursuant to State CEQA Regulation §15061(b)(3) (14 Cal. Code Regs.§ 15061(b){3)) covering activities with no possibility of having a significant effect on the environment.

SECTION 5. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance.

SECTION 6. Certification. The City Clerk shall certify to the adoption of this ordinance and, within 15 days after its adoption, shall cause it to be published in accord with California Law.

SECTION 7. Effective Date. This ordinance shall take effect on the 31 st day following
adoption by the City Council.

INTRODUCED ON the ___ day of ________, 2022.

PASSED, APPROVED, AND ADOPTED this ________day of ______ 2022.

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_________________________

PAULA PEROTTE
MAYOR

ATTEST: APPROVED AS TO FORM:

__________________________ _________________________
DEBORAH S. LOPEZ MEGAN GARIBALDI

CITY CLERK CITY ATTORNEY

STATE OF CALIFORNIA )
COUNTY OF SANTA BARBARA ) ss.

CITY OF GOLETA )

I, DEBORAH S. LOPEZ, City Clerk of the City of Goleta, California, do hereby certify that the foregoing Ordinance No. 22-__ was introduced on _______, and adopted at a regular meeting of the City Council of the City of Goleta, California, held on the _______, by the following roll-call vote, to wit:

AYES:

NOES:

ABSENT:

ABSTENTIONS:

(SEAL)

_________________________
DEBORAH S. LOPEZ CITY CLERK
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148

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of April 26, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Edwin Gato, Director of Finance

SUBJECT: Adoption of a resolution approving a First Amendment to an Agreement with Hinderliter de Llamas & Associates (HDL) in the amount of $115,000 to provide overall administrative oversight of Hercules’ American Rescue Plan Act (ARPA) program and to provide Economic Development staffing services for a total, not to exceed amount of $164,500.

RECOMMENDED ACTION

Staff recommends that the City Council:

1. Adopt a Resolution Approving a First Amendment to an Agreement with HdL in the amount of $115,000 to provide overall administrative oversight of Hercules’ ARPA programs and to provide Economic Development staffing services for a total, not to exceed amount of $164,500.

2. Adopt a Resolution Approving a Budget Amendment to increase the budget by $115,000 for this contract funded by ARPA fund loss of revenue component on the following services:
a. ARPA program administration - $50,000
b. Economic Development (ED) Staffing - $65,000

FISCAL IMPACT OF RECOMMENDATION
The proposed First Amendment increases the total contract amount under this agreement by $115,000, for the total not to exceed amount of $164,500. The cost of the contract can be recouped from the revenue loss component of the ARPA fund. There are sufficient funds available in the revenue loss component of the ARPA fund to absorb the cost.

BACKGROUND AND DISCUSSION
The American Rescue Plan Act (ARPA) provides relief to local governments and enables them to lay the foundation for a robust economic recovery. In addition to helping local governments address the revenue losses they have experienced because of the pandemic’ it will help cover the costs incurred from responding to the public health emergency and provide recovery support. 149

The one-time infusion of funds will help mitigate losses incurred in the community during the pandemic, which has extended for almost two years. The sooner a recovery plan is developed, the faster the City can stabilize operations, get the local economy back on track, and support those in the community most impacted by the pandemic.

Staff recommends the City Council approve the attached first amendment to HdL contract, increasing the compensation by $115,000, for a total not to exceed the amount of $164,500, for assistance with the following:

ARPA Program Administration
The local recovery program must be carefully and thoughtfully administered to ensure optimal use of the funds in alignment with the City Council’s vision, goals, and objectives and compliance with ARPA requirements. Given the comp lexities involved in administering these federal funds, as well as limited in-house resources to assign to this program, staff recommends the City Council amend the contract with HdL to assist in the overall administrative oversight of Hercules’ ARPA programs targeted at assisting Hercules businesses, including the following:

 Business Assistance Grants
 Business Rental Relief Assistance Grants
 Marketing Assistance Program, including individualized business marketing support and Shop Local Program with the utilization of Digital Gift Card Program

The Shop Local Program or E-Gift Card Program is on the agenda tonight to authorize staff to award a contract with Yiftee for an amount not to exceed $65,000. The E-Gift program was approved during FY 21-22 Midyear Budget on February 22, 2022.

Staff recommendations on the Business Assistance Grants and Rental Relief Grants will be presented to the City Council during the FY 22-23 budget process.

These services will add $50,000 in funding for HdL to administer the ARPA programs listed above.

Economic Development (ED) Staffing Services
Additionally, HdL will provide ED staffing services, including retail attraction and development services support – as needed and directed by the City. The ED staffing support services will add not to exceed $65,000.

On June 29, 2021, the former Interim City Manager engaged HdL to assist the City with developing a strategy for COVID -19 relief and the use of federal stimulus funding coming from the ARP A not to exceed the amount of $49,500. The initial agreement (Attachment 2) and first amendment (Attachment 3) are presented for City Council approval. Based on this first amendment, the total contract amount would exceed the City Manager’s contract author ity of $100,000 on a reimbursable contract. Also, the staff recommends that the City Council approve a budget amendment to increase the General Fund budget by $115,000 ($50K for full administration of the 150

APRA programs and $65K for the ED staffing services , as needed) for this contract amendment funded by the ARPA loss of revenue component.

ATTACHMENTS:

1. Resolution – HdL Contract Amendment

2. Resolution – Budget Amendment

3. Original Agreement

4. First Amendment and Additional Consulting Work

Financial Impact
Description: HdL Contract – 1st Amendment

Funding Source: ARPA Loss Revenue Component

Budget Recap:

Total Estimated cost: $115,000 New Revenue: $
Amount Budgeted: $ Lost Revenue: $
New funding required: $ New Personnel: $
Council Policy Change: Yes No

151

1 RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES

APPROVING A FIRST AMENDMENT TO AN AGREEMENT WITH HINDERLITER DE LLAMAS & ASSOCIATES (HdL) IN THE AMOUNT OF $115,000 TO PROVIDE OVERALL ADMINISTRATIVE OVERSIGHT OF HERCULES’ AMERICAN RESCUE

PLAN ACT (ARPA) PROGRAMS AND ECONOMIC DEVELOPMENT STAFFING SERVICES FOR TOTAL NOT TO EXCEED AMOUNT OF $164,500

WHEREAS, on March 11, 2021, the American Resc ue Plan Act ( H.R. 1319), § 4001, ARPA") was signed into law providing federal funding relief for American workers, families, industries, and state and local governments; and

WHEREAS, The United States Department of Treasury released ARPA regulations and updated local government allocations on May 10, 2021 , and as part of the $1.9 trillion relief package, the City’s allocation is set at $6,285,778; and

WHEREAS, the City received $3,142,889 of its $6,285,778 in allocation on June 8, 2021; and

WHEREAS, the former Interim City Manager entered into an Agreement for $49,500 with HdL to assist the City with developing a strategy for COVID -19 relief and the use of federal stimulus funding coming from ARPA on June 29, 2021; and

WHEREAS, there continues to be the need for administering these federal funds and the continued use of HdL to assist in the overall administrative oversight of Hercules’ ARPA programs targeted at assisting Hercules businesses and to provide Economic Development st affing services, including retail attraction and development services support; and

WHEREAS, the proposed First Amendment would exceed the City Manager’s contract authority, and thereby requires City Council approval.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that the First Amendment to the Agreement with HdL is hereby approved and the City Manager is authorized to execute the First Amendment.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 26th day of April, 2022 by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Dion Bailey, Mayor
152

2 ATTEST:

Lauren Burgess, City Clerk/PIO
153

HERCULES CITY COUNCIL
RESOLUTION NO. 22-

RESOLUTION OF THE CI TY COUNCIL OF THE C ITY OF HERCULES AMENDING THE GENERAL FUND FY 2021-22 BUDGET INCREASING ITS APPROPRIATION BY $115,000

WHEREAS, the City Council has adopted the FY 2021-22 Budget on June 22, 2021, and amended it at Midyear on February 22, 2022, representing the financial plan for conducting the affairs of the City of Hercules; and

WHEREAS, staff is proposing that the General Fund expenditure appropriations be increased by $115,000 for Hinderliter de Llamas (HdL) contract amendment to provide overall administrative oversight of Hercules’ ARPA programs and to provide Economic Development staffing services funded by American Rescue Plan Act (ARPA) fund loss of revenue component; and

WHEREAS, the City Council has considered the report and recommendations of the City Manager on the budget amendments and has determined that the budget amendments are both fair, appropriate and warranted.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the Ci ty of Hercules as follows:

1. The Council hereby approves an amendment to the City’s General Fund FY 2021-22 Budget to add $ 115,000 for the Hinderliter de Llamas (HdL) contract amendment to provide overall administrative oversight of Hercules’ ARPA programs and to provide Economic Development staffing services funded by American Rescue Plan Act (ARPA) fund loss of revenue component.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 26th day of April 2022, by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

____________________________
Dion Bailey, Mayor

ATTEST:

Lauren Berges, CMC
City Clerk/PIO

154
Original Agreement No.21-019-CM
COVID-19 ARPA Funds Use & Administration
AMENDMENT NO. 1

Approving Revised Attachment A “SCOPE OF SERVICE & PAYMENT”

1. Parties. The parties to this Contract Amendment are the City of Hercules , a public body corporate and the following named Contractor:

Hinderliter de Llamas & Associates (HdL)
120 S. State College Blvd., Suite 200, Brea, CA 92821
(714) 879-5000
Attn: Barry Foster
[email protected]

The parties to this Contract Amendment do mutually agree and promise as follows:

2. Purpose. This Amendment No. 1 is being entered into to a mend an existing contract between the City and Contractor which was approved by the City Manager of the City of Hercules on June 29, 2021. Said contract shall hereinafter be referred to as the "Original Contract" and is incorporated herein by reference.

3. Original Contract Provisions. The parties hereto agree to continue to abide by those terms and conditions of the Original Contract, and any amendments ther eto, which are unaffected by this Contract Amendment Agreement.

4. Amendment. This Amendment No. 1 is intended to amend the Original Contract and previously approved amendments (collectively, the "Amended Contract") thereto to provide for additional compensation in an amount not to exceed $115,000, total contract amount $164,500.

5. Amendment Approval: This Amendment No. 1 is hereby approved by the City Council of the City of Hercules on this ____ day of __________, 2022 by Council Resolution ________.

6. Signatures. These signatures attest the parties' agreement hereto:

City of Hercules

s/_______________________________
Dante Hall, City Manager

Date: ___________________________

Approved as to form:

By ______________________________
Patrick Tang, City Attorney
Hinderliter de Llamas & Associates (HdL)

s/_______________________________

_________________________________
Name/Title

Date: ___________________________

Attachments:

Attachment A: Scope of Service & Payment

155
March 23, 2022

Dante Hall
City Manager
City of Hercules
111 Civic Drive
Hercules, CA 94547

Re: Additional Tasks for American Rescue Plan Act (ARPA) Consulting Work:

Dante:

HdL has been working as the City of Hercules’ consultant for ARPA and together we’ve made good progress in formulating an effective ARPA plan to fund projects and programs which can significantly benefit and positively impact the community in helping to recover from the COVID-19 Pandemic.

As Hercules is formulating projects and programs it will be important to design and implement them to be as effective as possible, while providing the highest-level of services possible. In recognition of Hercules’ limited staffing resources, as well as HdL’s expertise, the City of Hercules is desirous of exploring the possibility of amending the agreement for ARPA services with HdL to have HdL assume a greater role in formulating ARPA programs, as well as effectively implementing them.

Scope of Work:

Hinderliter de Llamas & Associates (HdL), hereafter referred to as the ‘Consultant’, will work with the City of Hercules, hereafter referred as the ‘City’, to assume the overall administrative oversight of Hercules’ ARPA programs targeted at assisting Hercules businesses including the following:
• Business Assistance Grants
• Business Rental Relief Assistance Grants
• Marketing Assistance Program, including individualized business marketing support and Shop Local Program with the utilization of a Digital Gift Card Program

HdL has significant experience working with several cities on designing small business grant programs, creating effective marketing programs and ‘shop local’ programs for cities, as well as working on Digital Gift Card programs for several cities (San Leandro, Lafayette, Pinole, Hawthorne, Canyon Lake) to utilize the Yiftee digital gift card platform (which is presently serving 50 California cities). Additionally, HdL recently worked with the City of San Leandro in designing and implementing a Commercial Rent Relief Grant Program that was up in running within 45 days and funded 50 grants of $15,000 each in assisting the most financially impacted small businesses with paying back rent. HdL is also working as the administrator of business assistance programs for the city of Hawthorne. HdL can work to develop a program for Hercules to be used by those businesses and business type categories most impacted by the Pandemic.

Once the overall design of the program is established, the Consultant shall be responsible for the administration of the program including 1) set up of software applications, 2) creating a custom landing page, 3) pre-screen application form, 4) program application form and 5) staffing & management of call center for questions with the on-line application process and submitting required documents. 156
Additionally, the Consultant manage the rollout of the program, screening & evaluating applications and overall management of the program including a survey to measure the impact of the grants.

Compensation:

The Consultant shall be compensated based on hours worked on the program utilizing the following hourly rate schedule.

Staff Position Hourly Rate Principal/Managing Director $250/hour
Director of Professional Srvs. $230/hour
Senior Advisor $180/hour Operations Manager $180/hour
Analyst/Call Center Specialists $100/hour

An Amendment to the Agreement for ARPA services between the City of Hercules and HdL will add an additional $50,000 in funding for ARPA services to be provided by HdL.

The Project Manager for the Consultant shall be Barry Foster-Principal/Managing Director with HdL ECONSolutions, along with staffing support from Josh Davis-Director with Professional Services, Eric Myers-Operations Manager with Professional Services, Sandra Meyer-Sr. Advisor and Fienna Cheng- Analyst with ECONSolutions, as well as Tax Specialists working the Call Support Center.

OPTIONAL SERVICE-ED STAFFING SUPPORT SERVICES
Additionally, HdL can provide Economic Development staffing services including retail attraction and/or development services support—as needed and directed by the City. HdL presently provides this service for the cities of Menlo Park, Pacific Grove, Rancho Santa Margarita and several more being added soon.

This work shall be done on an hourly basis and at the direction of the city manager with a not to exceed annual amount of $65,000 which will include $15,000 for an INSIGHT Market Analytics report package, Community Profile & Void Analysis of retailers to target for marketplace, plus up to $50,000 for staffing support services with the following hourly rates.

Principal/Managing Director $250/hour
Sr. Advisor $180/hour Analyst $100/hour

Please note that the ED Staffing Support Services in an amount not to exceed $65,000 may be compensated for out of the ARPA revenue loss component.

Please contact Barry Foster with any questions at 951.233.0414.

Accepted by

CONSULTANT (Hinderliter de Llamas Associates-HdL) CITY (City of Hercules)

___________________________________ _________________________________ 157

Professional Services Agreement Agreement No. <21-019-CM> City Attorney Approved, 112717 COVID-19 ARPA Funds Use & Administration

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CITY OF HERCULES

PROFESSIONAL SERVICES AGREEMENT

This Agreement (“Agreement”) for professional services is made on June 29, 2021, between the City of Hercules, a California municipality (“City”), and Hinderliter de Llamas & Associates (HdL), a Corporation (“Consultant”) (individually, a “Party,” and collectively, the “Parties”).

1. Scope of Services. Consultant will provide to City the professional services described in the Scope of Services, attached as Attachment A and incorporated in this Agreement (the “Services”). Only the City Council or the City Manager may authorize any change or addition to the Scope of Services specified in Attachment A.

2. Term. This Agreement will become effective on June 29, 2021 (“Effective Date”), and will terminate upon the full and satisfactory completion of the Services or as otherwise specified in Attachment A, unless terminated soone r in accordance with Section 10 of this Agreement .

Time is of the essence with respect to all provisions of this Agreement that specify a time for performance.

3. Compensation. For the full and satisfactory completion of the Services, City will pay Consultant in an amount not to exceed Forty Nine Thousand Five Hundred Dollars ($49,500), without prior written authorization by City, pursuant to the terms set forth in Attachment A on Payment, which is attached to and incorporated in this Agreement. Consultant’s compensation is intended to encompass all costs required for performing the Services, including overhead and indirect costs. Except as expressly provided in Attachment A, Consultant will not be entitled to reimbursement for expenses it incurs to provide the Services.

3.1 Payment. City will pay Consultant for Services satisfactorily provided during each calendar month within 30 days following City receipt and approval of a detailed invoice. The invoice must include, at a minimum: a description of the specific Services provided; the name of the individual providing the Services; the date(s) upon which the Services were provided; the time spent providing the Services; the amount due for the Services ; and the basis for calculating the amount due.

3.2 Additional Services. If the City requests related services beyond the Scope of Services described in Attachment A, the Con sultant will provide City a written estimate for the additional services (“Additional Services”). Consultant will not provide Additional Services until Consultant has received written authorization from the City to perform the Additional Services .

Consultant will not be entitled to payment for Additional Services performed without City’s prior written authorization or for costs to correct Consultant’s errors or omissions.

4. Independent Contractor. The Parties agree that Consultant will act as an independent contractor under this Agreement and will have control of its work and the ma nner in which the Services are performed. Consultant is not an employee of City and is not entitled to participate in any health, retirement, or similar employee benefits from the City.

Agreement No. 21-019-CM
DocuSign Envelope ID: DB47B59A-114A-4E85-BF6F-67C011D4D3A8 158

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5. Consultant’s Warranties.

5.1 Consultant warrants that all Services provided under this Agreement will be performed in accordance with generally accepted professional practic es and standards for Consultant’s profession in the Bay Area.

5.2 Consultant warrants that all Services provide d under this Agreement will be performed in accordance with applicable federal, state, and local laws and regulations, including, but not limited to, conflict of interest laws and City ordinances and policies.

5.3 Consultant warrants that Consultant has no present interest which would conflict in any manner with the performance of Services on the City’s behalf.

5.4 Consultant warrants that it will comply with the City’s Nepotism and Cronyism Policy.

6. Notice. Any notice, billing, or payment required by this Agreement must be made in writing, and sent to the other Party by personal delivery, U.S. Mail, a reliable overnight deliv ery service, or by e mail as a PDF (or comparable) file. Notice is effective upon delivery unless otherwise specified. Notice for each Party will be given as follows:

City: Consultant:

City of Hercules Hinderliter de Llamas & Associates (HdL) 111 Civic Drive 120 S. State College Blvd., Suite 200
Hercules, CA 94547 Brea, CA 92821
(510) 799-8200 (714) 879-5000
Attn: City Clerk Attn: Barry Foster
[email protected] [email protected]
Copy to: _____________________ Copy to: _____________________ Email: _______________________ Email: _______________________

7. Indemnity. Subsection 7.1 is not applicable to this Agreement if Consultant’s Services are “design professional” services as that term is used and defined in Civil Code section 2782.8.

Subsection 7.2 is applicable to this Agreement if Consultant’s Services are “design professional” services as used and defined in Civil Code section 2782.8.

7.1 To the full extent permitted by law, Consultant will indemnify, defend with counsel acceptable to City, and hold harmless City, its governing body, officers, agents, employees, and volunteers (collectively, “City Indemnitees”) from and against any and all liability, demands, loss, damage, claims, settlements, expenses, and costs (including, without limitation, attorney fees, expert witness fees, and costs and fees of litigation) (collectively, “ Liability”) of every nature arising out of or in connection with Consultant’s acts or omissions with respect to this Agreement, except such Liability caused by the active negligence, sole negligence, or willful misconduct of any of the City Indemnitees. This indemnification obligation is not limited by any limitation on the amount or type of damages o r compensation payable under Workers’ Compensation or other employee benefit acts, or by insurance coverage limits, and will survive the expiration or early termination of this Agreement. This Subsection 7.1 does not apply if the Services to be provided under this Agreement are design professional services provided by a licensed architect, landscape architect, professional engineer, or professional land surveyor.

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7.2 To the full extent permitted by law, Consultant will indemnify, defend, and hold harmless City, its City Council, officials, officers, agents, employees, and volunteers from and against any and all liability, loss, damage, claims, expenses and costs (including, without limitation, attorney fees and costs and fees of litigation) (collectively, “ Liability”) of every nature which arises out of, pertains to, or relates to the negligence, recklessness, or willful misconduct of Consultant in the performance of this Agreement, except such Liability caused by the active negligence, sole negligence or willful misconduct of City. This indemnification obligation is not limited by any limitation on the amount or type of damages or compensation payable under Workers’ Compensation or other employee benefit acts, or by insurance coverage limits, and will survive the expiration or early termination of this Agreement. This Subsection 7.2 is applicable if the Services to be provided under this Agreement are design professional services provided by a licensed architect, landscape architect, professional engineer, or professional land surveyor.

8. Insurance. Before providing any Services under this Agreement, Consultant is required to procure and provide proof of the insur ance coverage required by this S ection in the form of certificates and endorsements. Each certificate of insurance must state that the coverage afforded by the policy or policies will not be reduced, cancelled or allowed to expire without at least 30 days written notice to City, unless due to nonpayment of premiums, in which case at least 10 days written notice will be made to City. The required insurance must cover the activities of Consultant and its employees or subcontractors relating to or arising from the performance of the Services, and must remain in full force and effect at all times during the term of the Agreement. All required insurance must be issued by an insurer licensed to do business in the State of California, and each such insurer must have an A.M. Best financial strength rating of “A” or better and a financial size rating of “VIII” or better. If Consultant fails to provide any of the required coverage, City may, at its sole discretion, purchase such coverage at Consultant’s expense and deduct the cost from payments due to Consultant.

8.1 The following insurance policies and limits are required for this Agreement:

8.1.1 Commercial General Liability Insurance (“CGL”) . CGL insurance issued on an occurrence basis, including coverage of liability arising from Consultant’s acts or omissions in the performance of S ervices under this Agreement, with limits of at least $1,000,000.00 per occurrence.

8.1.2 Automotive. Commercial automotive liability coverage for owned, non - owned and hired vehicles must provide coverage of at least $1,000,000.00 combined single limit per accident for bodily injury, death, or property damage.

8.1.3 Workers’ Compensation Insurance and Emp loyer’s Liability . The policy must comply with the requirements of the California Workers’ Compensation Insurance and Safety Act, with limits of at least $1,000,000.00. If Consultant is self- insured, Consultant must provide its duly authorized Certificate of Permission to Self-Insure.

8.1.4 Professional Liability. This insurance must insure against Consultant ’s errors and omissions in the provision of Services under this Agreement , in an amount no less than $1,000,000.00 combined single limit.

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8.2 Subrogation Waiver. Each required policy must include an endorsement that the insurer agrees to waive any right of subrogation it may have against City or the City’s insurers.

8.3 The CGL policy and the automotiv e liability policy must include the following endorsements:

(1) The City, including its Council, officials, officers, employees, agents, volunteers and consultants (collectively, “ Additional Insured ”) must be named as an additional insured for all liability arising out of the operations by or on behalf of the named insured, and the policy must protect the Additional Insured against any and all liability for personal injury, death or property damage or destruction arising directly or indirectly in the performance of the Agreement.

(2) The inclusion of more than one insured will not operate to impair the rights of one insured against another, and the coverages afforded will apply as though separate policies have been issued to each insured.

(3) The insurance provided is primary and no insurance held or owned by City will be called upon to contribute to a loss.

(4) Any umbrella or excess insurance must contain or be endorsed to contain a provision that such coverage will also apply on a primary or non-contributory basis for the benefit of City before the City’s own insurance or self -insurance will be called upon to protect it as a named insured.

9. Dispute Resolution. In the event that any dispute arises between the Parties in relation to this Agreement, the Parties agree to meet face to face as soon as possible to engage in a good faith effort to resolve the matter informally. In the event that any dispute arises between the Parties in relation to this Agreement, and the dispute is not resolved by informal discussions, the Parties agree to submit the dispute to mediation.

9.1 Either Party may give written notice to the other Party of a request to submit a dispute to mediation, and a mediation session must take place within 60 days after the date that such notice is given, or sooner if reasonably practicable. The Parties will jointly appoint a mutually acceptable mediator. The Parties further agree to share equally the costs of the mediation, except costs incurred by each Party for representation by legal counsel.

9.2 Good faith participation in mediation pursuant to this S ection is a condition precedent to either Party commencing litigation in relation to the dispute.

10. Early Termination.

10.1 Termination for Convenience. City may terminate this Agreement for convenience by giving 10 calendar days written notice to Consultant. In the event City elects to terminate the Agreement without cause, it will pay Consultant for Services satisfactorily provided up to that date.

10.2 Termination for Cause. If either Party breaches this Agreement by failing to timely or satisfactorily perform any of its obligations or otherwise violates the terms of this Agreement, the other Party may terminate this Agreement by giving written notice five calendar days prior to the DocuSign Envelope ID: DB47B59A-114A-4E85-BF6F-67C011D4D3A8 161

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effective date of termination , specifying the reason a nd the effective date of th e termination.

Consultant will be entitled to payment for all Services satisfactorily provided up to the effective date of termination, except that the City may deduct from that p ayment the amount of costs the City incurred, if any, because of Consultant’s breach of the Agreement.

11. Work Product. City will be the sole owner of all rights to any work product in any form which has been prepared by Consultant on City’s behalf pursuant to this Agreement, unless otherwise specified in writing by the Parties.

12. Records. Unless otherwise specified in Attachment A, C onsultant will maintain records related to this Agreement for a period of four years from expiration or termination of this Agreement, including records of the Services performed, on a daily basis if necessary .

Consultant’s accounting systems will conform to generally accepted accounting principles, and all records will provide a breakdown of total costs charged under this Agreement, including properly executed payrolls, time records, invoices, and vouchers. Co nsultant will permit City to inspect and examine Consultant’s books, records, accounts, and any and all data relevant to this Agreement at any reasonable time.

13. General Provisions.

13.1 Assignment and Successors. Consultant may not assign its rights or obligations under this Agreement, in part or in whole, without City’s written consent. This Agreement is binding on Consultant’s and City’s lawful heirs, successors, and permitted assigns.

13.2 Third Party Beneficiaries. There are no intended third-party beneficiaries to this Agreement.

13.3 Nondiscrimination. Consultant will not discriminate in the employment of persons under this Agreement because of race, color, ancestry, national origin, religion, sex, marital status, age, medical condition, disability, or other prohibited basis. All nondiscrimination rules or regulations required by law to be included in this Agreement are incorporated by this reference.

13.4 Choice of Law and Venue . This Agreement will be governed by California law, and venue will be in the Superior Court of Contra Costa County, and no other place.

13.5 Integration. This Agreement and the documents incorporated in this Agreement constitute the final, complete, and exclusive terms of the agreement between the City and the Consultant.

13.6 Severability. If any provision of this Agreement is determined to be illegal, invalid, or unenforceable, in part or in whole, the remaining provisions of the Agreement will remain in full force and effect.

13.7 Amendment. No amendment or modification of this Agreement will be binding unless it is in a writing duly authorized and signed by the Parties to this Agreement.

13.8 Provisions Deemed Inserted. Every provision of law required to be inserted in this Agreement will be deemed to be inserted, and this Agreement will be construed and enforced as though included. If it is discovered that through mistake or otherwise that any required provision DocuSign Envelope ID: DB47B59A-114A-4E85-BF6F-67C011D4D3A8 162

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is not inserted, or not correctly inserted, this Agreement will be amended to make the insertion or correction.

13.9 Precedence. If any provision in any document attached to or incorporated in this Agreement conflicts with or is inconsistent with the provisions set forth in the body of this Agreement, the provisions set forth in the body of this Agreement will control over any such conflicting or inconsistent provisions.

13.10 Waiver. No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement will be effective unless it is in writing and signed by the Party waiving the brea ch, failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor will any waiver constitute a continuing waiver unless the writing so specifies.

13.11 Force Majeure. If either Party is delayed or hindered in or prevented from the performance of any act required under this Agreement because of strikes, lockouts, inability to procure labor or materials, failure of power, riots, insurrection, war, fire or other casualty, or other reason beyond the reasonable control of the Party delayed, excluding financial inability (“ Force Majeure Event”), performance of that act will be excused for the period during which the Force Majeure Event prevents such performance, and the period for that performance will be extended for an equivalent period. Delays or failures to perform resulting from lack of funds will not be Force Majeure Events.

13.12 Headings. The headings in this Agreement are included for convenience only and will not affect the construction or interpretation of any provision in this Agreement or any of the rights or obligations of the Parties to this Agreement.

13.13 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument.

13.14 Authorization. Each individual signing below warrants that he or she is authorized to do so by the Party that he or she represents, and that this Agreement is legally binding on that Party. If Consultant is a corporation, signatures from two officers of the corporation are required pursuant to California Corporation Code section 313.

[Signature page follows.]

DocuSign Envelope ID: DB47B59A-114A-4E85-BF6F-67C011D4D3A8 163

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The Parties agree to this Agreement as witnessed by the signatures below:

CITY: Approved as to form:

s/_______________________________ s/__________________________________

________________________________ ___________________________________ Steven Falk, Interim City Manager Patrick Tang, City Attorney

Date: ___________________________ Date: ______________________________

Attest:

s/_______________________________

_________________________________
Name/Title

Date: ___________________________

CONSULTANT: Hinderliter de Llamas & Associates (HdL)

s/_______________________________

_________________________________
Name/Title

Date: ____________________________

s/_______________________________

_________________________________
Name/Title

Date: ____________________________

Attachments:

Attachment A: Scope of Services & Payment
DocuSign Envelope ID: DB47B59A-114A-4E85-BF6F-67C011D4D3A8 7/7/2021
7/7/2021
Andrew Nickerson President/CEO
7/7/2021
164
City of Hercules – Proposal &
Qualifications for COVID-19
Relief & Economic Recovery
Program Administration for
American Rescue Plan Act
Submitted By:

HdL ECONSolutions
120 S. State College Blvd., Suite 200
Brea, CA 92821
www.hdlcompanies.com
Contact:

Barry Foster, Principal/Managing Director
714.879.5000
[email protected]
Attachment A
Scope of Services & Payment
Agreement No. 21-019-CM
COVID-19 ARPA Funds Use & Administration
DocuSign Envelope ID: DB47B59A-114A-4E85-BF6F-67C011D4D3A8 165
City of Hercules-Proposal/Qualifications for COVID-19 Relief & Economic Recovery Program Administration 6/8/2021 1 I. LETTER OF TRANSMITTAL
June 8, 2021
RE: Proposal/Qualifications for COVID-19 Relief & Economic Recovery Program Administration
Steve Falk, Interim City Manager
City of Hercules
111 Civic Drive
Hercules, CA 94547
Mr. Falk:

Thank you for the opportunity to present a proposal & our qualifications to the City of Hercules to assist with COVID -19 Relief and Economic Recovery Program Administration per the American Rescue Plan Act (ARPA) . Hinderliter de Llamas Associates (HdL) is a 37 -year old consulting firm with corporate offices in Brea California, along with offices in Pleasanton , Fresno, San Dimas, as well as offices outside of California in Texas, Colorado, Georgia and Alabama. HdL is a highly respected consulting firm working in sales ta x, property tax, tax & fee administration, revenue analysis, economic development and cannabis management. HdL ECONSolutions was formed by HdL in 2014 to provide a variety of ec onomic development products, services and special projects in further serving local governments. HdL ECONSolutions has done work for 125 local governments in California and presently is working for 20 California cities and a few private sector developers on a variety of economic development related services. Additionally, HdL is ass isting five cities with ARPA including Los Altos, Lafayette, Oakley, Hawthorne and Canyon Lake, along with several more coming soon.

HdL ECONSolutions is well positioned to assist Hercules with developing a Strategy for COVID-19 relief and use of federal stimulus funding coming from the recently enacted American Rescue Plan Act (ARPA), as well as administration of programs related to this program. During the past year, HdL ECONSolutions has worked with several cities to deal with the COVID-19 Pandemic and the negative economic impact it has delivered to cities and especially their business communities. HdL ECONSolutions has prepared Economic Recovery Action plans for the California cities of Eastvale, Menlo Park and Pacific Grove, as well as reopening plans for Calimesa and Cupertino. Additionally, we have assisted in several small business relief grant programs to deal with COVID-19 and the Pandemic. Again, we’re also presently working with five cites with ARPA support including Los Altos, Lafayette, Oakley, Hawthorne and Canyon Lake.

Please feel free to call me if you have questions or require additional information. I can be reached at 951.233.0414 or by email at [email protected]. If HdL ECONSolutions is elected to do the work in Hercules, I will serve as the Project Manager, with significant support from Angela Tsui, Senior Advisor (who is based in Pleasanton CA).

Sincerely,
Barry Foster
Principal/Managing Director
Agreement No. 21-019-CM
COVID-19 ARPA Funds Use & Administration
DocuSign Envelope ID: DB47B59A-114A-4E85-BF6F-67C011D4D3A8 166
City of Hercules-Proposal/Qualifications for COVID-19 Relief & Economic Recovery Program Administration 6/8/2021

2 II. KEY PERSONNEL

Team of Professionals for the Hercules Project

For the Hercules project, HdL ECONSolutions will use a team of four professionals that have more than 60 years of experience working in economic development and public administration.

HdL ECONSolutions Team
Barry Foster
Barry Foster has more than 35 years of local government experience including nearly 30 years in Southern California working for t he cities of Moreno Valley, Rancho Mi rage, Monrovia, and Loma Linda, as well as nearly 7 years with the HdL Compan ies. Mr. Foster has more than 29 years of economic development experience. As a Principal & Managing Director with HdL, Barry Foster started the ECONSolutions Division for HdL and has worked with 120 local governments in a variety of economic development related services. Additionally, he worked as a Development Consultant with five developers and retail advisors in Southern California. Over the years, he has helped facilitate more than 32 million square feet of new development projects including logistics -distribution, shopping centers, commercial retail/office, medical -healthcare, hotels, and auto centers. Mr. Foster is member of the International Council of Shopping Centers, as well as being a past President of the Municipal Management Assistants of Southern California (MMSASC). He holds a Bachelor of Science degree from Minnesota State University- Mankato and a Master of Public Administration from the University of Kansas.

Angela Tsui
Angela Tsui came to work for HdL in 2019 as a Senior Advisor working out the Pleasanton office.

Before working for HdL, Ms. Tsui worked over 22 years in the public sector, including for the cities of Fremont and Cupertino, where she was the Economic Development Manager for 7 years.

With HdL ECONSolutions, Angela has worked on numerous studies and is the primary economic development staffing person for the cities of Cupertino and Menlo Park. Additionally, Angela has recently worked on Economic Recovery Action Plans for the cities of Eastvale, Menlo Park and Pacific Grove, as well as numerous programs and issues related to the Pandemic and economic recovery efforts in Cupertino. Angela holds a Bachelor of Arts degree in Political Science from the University of California-Berkley.

Fienna Cheng
Fienna Cheng joined HdL early in 2020 and works on a variety of analytics and revenue analysis project, as well as supporting the divisions administration needs. Ms. Cheng has experience in the private sector in the healthcare and insurance industries. Fienna received a Bachelor of Arts in Economics from the University of California Irvine.

Jason Moncayo
Jason Moncayo joined HdL in 2020. Jason recently received his Master of Public Administration from the University of Southern California and has his undergraduate degree from California State University at Fullerton.

Agreement No. 21-019-CM
COVID-19 ARPA Funds Use & Administration
DocuSign Envelope ID: DB47B59A-114A-4E85-BF6F-67C011D4D3A8 167
City of Hercules-Proposal/Qualifications for COVID-19 Relief & Economic Recovery Program Administration 6/8/2021

3 III. QUALIFICATIONS AND SCOPE OF WORK

Qualifications

HdL and the HdL ECONSolutions Team are uniquely qualified to assist the City of Hercules with work related to COVID-19 relief and formulating an economic recovery program, along with administration support with funding coming from the American Rescue Plan Act (ARPA).

• HdL ECONSolutions has significant experience working with California cities to help deal with COVID-19 and the Pandemic and economic recovery efforts including working on Economic Recovery Action Plans (ERAP’s) for the cities of Eastvale, Menlo Park and Pacific Grove, as well as numerous small business grant programs and focused economic recovery strategies. HdL is currently assisting five cities with ARPA support including Los Altos, Lafayette, Oakley, Hawthorn and Canyon Lake, along with several more cities coming on soon. • HdL ECONSolutions is recognized as one of the leading consultants in the economic development field in California, having worked with 120 local governments on a variety of programs and projects during the past 7 years.
• The HdL ECONSolutions Team is highly experienced in economic development and brings over 60 years of experience in economic development, along with working for and with cities. Barry Foster, a Principal and Managing Director will serve as the Project Manager for the Hercules project. • HdL is a premiere consulting firm in California and is presently working with over 400 local governments and is recognized as a leader in sales tax and property tax management, budgeting and revenue projections, tax & fee administration, economic development and cannabis management.

References

The following is a sampling of references appropriate for the Lafayette project.

City of Lafayette
• Niroop Srivatsa, City Manager 925.299.3206
City of Menlo Park
• Starla Jerome-Robinson, City Manager 650.330.6610

City of Oakley
• Joshua McMurray, Interim City Manager 925.625.7004

City of Pacific Grove
• Ben Harvey, City Manager 213.364.2699
Scope of Work

The following represents the scope of work for the project.

Agreement No. 21-019-CM
COVID-19 ARPA Funds Use & Administration
DocuSign Envelope ID: DB47B59A-114A-4E85-BF6F-67C011D4D3A8 168
City of Hercules-Proposal/Qualifications for COVID-19 Relief & Economic Recovery Program Administration 6/8/2021

4 HdL ECONSolutions believes the most effective scope of work for the project in Hercules to expend the $6,285,778 in Federal funding from the American Rescue Plan should focus on formulating a comprehensive COVID-19 Relief & Economic Recovery Program for both near term and lasting economic recovery including but not limited to the following components.

Task 1
• Assist city professional staff with understanding submission to State and Federal Government for ARPA funds.
• Assist the City of Hercules in designing and developing a Recovery Strategy (the ‘Strategy’) to effectively expend the $6,285,778 coming to the City of Hercules from the American Rescue Plan Act (ARPA). Tactics for doing so will include site inspections of public facilities and local circumstances, using citizen surveys and community outreach, and meeting with key stakeholders such as City Council members, City staff, the Chamber of Commerce, developers and local business representatives from the hardest hit business sectors.

Task 2
• Screen ARPA expenditures and serve as on-call resource, as necessary, to ensure that Hercules’ ARPA expenditures are consistent with ARPA rules and guidelines. Assist the professional city staff in the development of protocols and systems that ensure expenditures are appropriate and qualify for ARPA funding.
• Assist the professional city staff in establishing procedures for using, tracking, coding and reporting ARPA expenditures to the Federal Government. Provide assistance to city professional staff, as necessary, with any preparation of an audit or ARPA compliance reports.

IV. COMPENSATION

Understanding the effort and time commitment to undertake the two tasks identified above is challenging, so therefore HdL is suggesting doing the work on an hourly basis, with a not -to-exceed amount, plus a 10% overall contingency.

Task 1
Not-to-exceed amount of $31,000

Task 2
Not-to-exceed amount of $14,000

Hourly Consulting Rates
Staff Position Hourly Rate
Principal $250
Sr. Advisor $180
Analyst $100

Total Estimated Cost=$45,000

10% Contingency=$4,500

Total Compensation – Not-to-Exceed $49,500
Agreement No. 21-019-CM
COVID-19 ARPA Funds Use & Administration
DocuSign Envelope ID: DB47B59A-114A-4E85-BF6F-67C011D4D3A8 169

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of April 26, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Edwin Gato, Director of Finance

SUBJECT: Authorization To Execute a Contract With Yiftee for a Shop Local/Gift Card program for an amount not to exceed $65,000 funded by American Rescue Plan Act (ARPA) Funds

Recommendation
Adopt a resolution authorizing the City Manager to execute an agreement with Yiftee for a Shop Local/Gift Card program for an amount not to exceed $65,000 funded by American Rescue Plan Act (ARPA) Funds.

Fiscal Impact
The Gift Card Program will be funded through the ARPA funds.

Background
On February 22, 2022, City Council meeting, the Council received a report on the FY 21-22 mid- year budget. It adopted a resolution approving various mid -year budget appropriations and adjustments, including appropriations for several ARPA priority items. One of the priority items approved was to utilize $65,000 towards a pilot Gift Card Program.

Municipalities use three community digital gift card platforms, including Factor4, Giverrang, and Yiftee, with Yiftee being the most popular and with the best customer service rating. Yiftee, based in Menlo Park in the Si licon Valley, is currently doing community digital gift card programs in many Bay Area and Northern California cities, including Alameda, Benicia, Berkeley, Brentwood, Cupertino, El Cerrito, Fremont, Hayward, Lafayette, Livermore, Martinez, Merced, Nevada City, Newark, Oakley, Pinole, Pleasanton, Sacramento, San Leandro, Selma, and South Lake Tahoe.

Several cities (Benicia, Brentwood, Cupertino, Fremont, and Sacramento) initially funded their community digital gift card programs from the CARES Act and, beca use they have been so successful, have funded additional rounds utilizing ARPA monies. 170

Yiftee Gift Card Program
The Yiftee Community Digital Gift Card program is a cost -effective way to stimulate the local economy and assist small businesses in recovery. It also provides additional savings to residents who shop locally. As an example, the proposed gift card pilot program would have a resident buy a gift card valued at $50, with the initial investment from the resident being $25. Then they receive a ‘purchase bonus’ amount of another $25 paid by the city through ARPA funding. In other words, it is ‘buy one and get one free’ for residents. Attachment 1 is a presentation Yiftee uses to introduce its program to new clients.

To initiate the program, the City would enter into Yiftee’s Community Card Customer Agreement (Attachment 2). There is no set-up or monthly costs. Staff is recommending that the approved allocation of $65,000 of ARPA monies be utilized to pay for:

 The $1+5% eDelivery fee (purchaser fee) plus a $1 bonus gift fee per card  A bonus gift card to incentivize use of the program and provide a benefit to all community members
 Branding costs associated with development of the “shop local Hercules” campaign  Marketing costs for advertisement and promotion of the program and related point-of-sale signage and posters for participating businesses

Staff recommends approval of the proposed resolution authorizing the City Manager to execute an agreement with Yiftee for a Shop Local/Gift Card program.

Attachments

1. Resolution

2. Yiftee Community Gift Card Customer Agreement

3. Yiftee Community Gift Card Presentation
171

HERCULES CITY COUNCIL
RESOLUTION 21-

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH

YIFTEE FOR A SHOP LOCAL/GIFT CARD PROGRAM FOR AN AMOUNT NOT TO EXCEED $65,000 FUNDED BY AMERICAN RESCUE PLAN ACT (ARPA) FUNDS

WHEREAS, the COVID-19 worldwide p ublic health pandemic has resulted in num erous detrimental impacts on a global scale and includes national, regional, and local impacts; and

WHEREAS, the City of Hercules, its residents and busin ess community have experienced these impacts which includes significant impacts on Hercules’ business community; and

WHEREAS, the Mayor and the City Council seek to assist the City of Hercules ’ business community in their recovery from the impacts of the pandemic; and

WHEREAS, the staff has evaluated assi stance programs and recommended an e-gift card program available through Yiftee, Inc.; and

WHEREAS, the Mayor and the City Council have determined that entering into an agreement with Yiftee Inc. for the purposes of establishing the Hercules Shop Local/Gift Card program is a necessary and prudent action in support of the Hercules business community.

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

1. That the City Counci l hereby authorizes the City Manager to ex ecute an agreement with Yiftee, Inc . in a n amount not to exceed $65,000 in accordance with the agreement attached hereon and incorporated herein.

2. That the City Council hereby authorizes the expenditure of an amount not to exceed $65,000 using ARPA fun ds as approved by the City Council at its Midyear Budget Update on February 22, 2022.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 26th day of April, 2022 by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________
DION BAILEY, Mayor

ATTEST:

________________________________
172
LAUREN BERGES, City Clerk/PIO

173
Community Card Customer Agreement

THIS AGREEMENT (the “Agreement”) is made effective as of __________, 2022 (the “Effective Date”) by and between Yiftee Inc., a Delaware corporation, with an address at 325 Sharon Park Drive #215, Menlo Park, CA 94025 (“Yiftee”) and _____________________________________ with an address at _________________________________________(“Customer”). The parties agree a follows:

1. Definitions.

1.1 “Merchant” means a merchant, prospect or other contact that may be using or desire to use Yiftee Services to redeem eGifts.

1.2 “Participant” means a Merchant who has opted to participate in a Community Card by running an Activation Card and agreeing to the Merchant Agreement.

1.3 “Yiftee Services” means Yiftee’s gift-giving platform. It is the technology foundation for Community Cards.

1.4 “Purchaser” means a person or entity that purchases or redeems eGifts.

1.5 “eGift” means a digital virtual gift voucher used as payment for goods or services at a Participant.

1.6 “Offer” or “Offers” mean specific benefits that Participants provide to consumers who use their Community Cards in their store, as determined by the Participants and posted on their eGift Card web page.

2. Merchant Enrollment.

2.1 Merchant Enrollment Obligations
(a) Customer will collect a set of Merchants who have elected to participate in the Yiftee Services.

Merchants must all be located in the same state in the USA, due to varying gift card laws by state. Each Merchant must agree to the Yiftee Community Card Merchant Agreement located on the Yiftee.com website. Merchants who have not agreed to the Merchant Agreement will not be able to utilize the Yiftee Services to redeem eGifts. Customer will upload into the Yiftee Services or provide the names of the Merchants who intend to participate to Yiftee. Upon the agreed upon launch date, the billing for the Yiftee Services will begin (“Commencement Date”). This billing will include the agreed-upon cost for each Participant or group thereof as defined in Appendix A. (b) Yiftee will provide to Customer or directly to Merchants, upon receipt of the set of Merchant names in 2.1a, a set of unique Activation Cards to be run by each Merchant. Customer will inform Merchants of their individual Activation Card and provide instructions on its use. Additionally, Customer will inform Merchants that running the Activation Card implies consent to the Merchant Agreement located on the Yiftee.com website.
(c) As Merchants run the Activation Cards, they will be included in the set of Merchants enabled to participate in the Yiftee Services, i.e. the Participants. Participant may also post their Offers to be available for eGift Card holders who redeem gifts in their stores. 174
(d) Yiftee will bill Customer or Merchants as described in Appendix A. Customer can add or remove Participants and fees will be adjusted accordingly, if applicable. There will be no retroactive adjustments allowed by Yiftee (that is, a cancelled Participant’s billing obligation will result in that Participant’s cost to Customer, as defined in Appendix A, to be eliminated beginning only on the next annual billing cycle).

A Participant may be added to the list of Participants at any time (“Enrollment Time”), with billing adjustment for said Participant to begin immediately and to be included in the current month’s billing. (e) Each party shall comply with good, ethical and moral business practices and all applicable laws and regulations in engaging in any activities here under.
(f) Fees and payment terms applicable to the subject matter here under shall be as set forth in Appendix A. Customer is not entitled to compensation other than what is described in Appendix A. (g) Customer is responsible and liable for any disputes or liability arising out of its relationships with Merchants and Participants, except with respect to any liability of Yiftee under this agreement.

2.2 Yiftee Materials.

Yiftee may provide Customer with certain materials for use in conjunction with promoting the Yiftee Services here under (“Yiftee Materials”). No rights or licenses, express or implied, are granted in those Yiftee Materials or otherwise, except as expressly and unambiguously set forth in this Agreement.

2.3 Limited Licenses.

Subject to the terms and conditions of this Agreement, Yiftee hereby grants to Customer, a non- exclusive, non-transferable, non-assignable, non-sublicensable right and license to access and use the Yiftee Services and Yiftee Materials solely for the purposes of Customer’s performance of this Agreement.

2.4 Trademark License.

Subject to the terms and conditions of this Agreement, Yiftee hereby grants Customer and Customer hereby grants Yiftee a non-exclusive, non-transferable, non-assignable, non-sublicensable, royalty-free license to use Yiftee’s or Customer’s name, trade names, trademarks, service marks, and logos (collectively, a party’s “Marks”) solely in connection with Customer’s and Yiftee’s promotion and marketing of the Yiftee Services, subject to written usage guidelines, if any, made mutually available.

3. Ownership. As between the parties, Yiftee owns all right, title and interest in and to the Yiftee Services, Yiftee’s Marks and the Yiftee Materials. Customer owns all right, title and interest in and to Customer’s Marks.

4. Warranties Disclaimer. YIFTEE AND ITS LICENSORS MAKE NO WARRANTIES TO CUSTOMER,

EXPRESS OR IMPLIED, AND SPECIFICALLY DISCLAIM ALL IMPLIED WARRANTIES OF MERCHANTABILITY,

NONINFRINGEMENT, AND FITNESS FOR A PARTICULAR PURPOSE, AND ALL WARRANTIES ARISING OUT OF USAGE OR TRADE, COURSE OF DEALING AND COURSE OF PERFORMANCE.

5. Liability Limitation. EXCEPT FOR LIABILITY ARISING UNDER SECTION 7, NEITHER PARTY (NOR ITS

LICENSORS) WILL BE LIABLE OR OBLIGATED WITH RESPECT TO ANY SUBJECT MATTER OF THIS

AGREEMENT OR UNDER ANY CONTRACT, TORT, STRICT LIABILITY OR OTHER LEGAL OR EQUITABLE

THEORY, WHETHER OR NOT ADVISED OF THE POSSIBILITY OF SUCH DAMAGES WHATSOEVER, FOR ANY

SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY, PUNITIVE, RELIANCE OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF PROFITS, REVENUE, DATA OR USE AND IN NO EVENT SHALL EITHER PARTY’S 175
LIABILITY EXCEED THE GREATER OF $500 OR THE AMOUNTS PAID AND/OR PAYABLE BY YIFTEE TO

CUSTOMER (AND/OR BY CUSTOMER TO YIFTEE, IF PAYMENTS ARE PAYABLE BY CUSTOMER TO YIFTEE IN ACCORDANCE WITH PROPOSAL) HEREUNDER IN THE TWELVE (12) MONTH PERIOD PRECEDING THE APPLICABLE CLAIM.

6. Term and Termination.

6.1 Term. This Agreement shall be effective as of the Effective Date and shall continue in full force on an annual period from the Effective Date, and thereafter shall automatically renew annually, unless and until either party terminates this Agreement pursuant to Section 6.2.

6.2 Termination.
(a) Either party may, at its option, terminate this Agreement upon thirty (30) days written notice to the other party for any reason or for no reason whatsoever. (b) Either party may terminate this Agreement if the other party materially breaches a term of this Agreement and fails to cure such breach within fifteen (15) days after receipt of written notice of such breach from the non-breaching party.
(c) Participants are obligated to honor all outstanding eGifts issued by Yiftee for the entire duration of those eGift's validity periods. Termination does not relieve Participants from honoring conditions outlined in the Merchant Agreement.

6.3 Effect of Termination. Upon any termination: (a) Customer shall immediately cease all promotion of the Yiftee Services and shall immediately return to Yiftee, or at the option of Yiftee, destroy, all Confidential Information (as defined below) of Yiftee disclosed to Customer, Yiftee Materials, and any Yiftee Services, hardware and software provided to Customer here under, (b) Yiftee shall immediately return to Customer, or at the option of Customer, destroy, all Confidential Information of Customer disclosed to Yiftee here under, and (c) all licenses granted under this Agreement shall immediately cease. The following Sections shall survive termination and remain in effect 1, 3, 4, 5, 6.3, 7 and 8. Any termination of this Agreement shall be without prejudice to any other rights or remedies available under this Agreement or at law.

7. Confidentiality. Because of this Agreement, the parties may have access to information that is confidential to the disclosing party (“Confidential Information”). Confidential Information shall include, without limitation, Purchaser lists and information relating to the parties’ products and pricing and all information designated as confidential by the disclosing party at the time of disclosure. A party’s Confidential Information shall not include any information which (i) becomes generally publicly available through no wrongful act or omission of the receiving party; (ii) is lawfully acquired by the receiving party from a third party without any breach of a confidentiality obligation; or (iii) is independently developed without use of or reference to the disclosing party’s Confidential Information. Each party agrees to maintain the confidentiality of the other party’s Confidential Information using the same degree of care that it uses with regard to its confidential information of like nature, but in no event less than reasonable care, and to protect as a trade secret any portion of the other party’s Confidential Information by preventing any unauthorized copying, use, distribution, installation or transfer of possession of such information. If required by law, the receiving party may disclose Confidential Information of the disclosing party, but will give adequate prior notice of such disclosure to the disclosing party to permit the disclosing party to intervene and to request protective orders or other confidential treatment therefor. The parties acknowledge that money damages will not be an adequate 176
remedy if this Section 7 is breached and, therefore, either party may, in addition to any other legal or equitable remedies, seek an injunction or other equitable relief against such breach or threatened breach without the necessity of posting any bond or surety.

8. Non-solicitation
During the term of this Agreement, neither party will (on behalf of itself or any other person or entity) solicit any Purchaser or Merchant of the other party to restrict, limit, or terminate such Purchaser’s or Merchant’s participation in the other party’s products and services.

9. Miscellaneous

9.1 Choice of Law. This contract shall be governed by and construed in accordance with the laws of the State of California, without regard to the provisions of the conflict of laws thereof. The parties will resolve any disputes in the state or federal courts located in Santa Clara County, California, to whose exclusive jurisdiction and venue they irrevocably submit. Notwithstanding anything to the contrary, either party may pursue injunctive or other equitable relief in any court of competent jurisdiction.

9.2 Notices. Any notice or other communication required or permitted in this Agreement shall be in writing and shall be deemed to have been duly given on the day of service if served personally or by facsimile transmission with confirmation, or three (3) days after mailing if mailed by First Class mail, registered or certified, postage prepaid, and addressed to the respective parties at the addresses set forth above, or at such other addresses as may be specified by either party pursuant to the terms and provisions of this section.

9.3 Assignment. Customer may not assign or otherwise transfer, without the prior written consent of Yiftee, its rights, duties or obligations under this Agreement to any person or entity, in whole or in part. Yiftee may freely assign or otherwise transfer this Agreement in connection with the sale of all or substantially all of its business or assets. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

9.4 Severability. Any provision of this Agreement that is determined to be unenforceable or unlawful shall not affect the remainder of the Agreement and shall be severable therefrom, and the unenforceable or unlawful provision shall be limited or eliminated to the minimum extent necessary to that this Agreement shall otherwise remain in full force and effect and enforceable.

9.5 Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes any and all prior agreements between them, whether written or oral, with respect to the subject matter hereof, and may not be amended, modified or provision hereof waived, except in a writing signed by the parties hereto. No waiver by either party, whether express or implied, of any provision of this Agreement, or of any breach thereof, shall constitute a continuing waiver of such provision or a breach or waiver of any other provision of this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

Customer (Print): YIFTEE, INC.

By: By:

Name, Title: Name, Title: Donna Novitsky, Yiftee CEO 177
Community Card Customer Agreement

APPENDIX A
Pricing

Customer and Participants are not required to pay Yiftee a subscription fee or a revenue share. Yiftee does not take a percentage of the cards that are redeemed in the Participants’ stores.

Charges:

Purchasers pay the face value of the card plus a $1+5% of the eGift Card value eDelivery fee at the time of purchase. Bulk purchases of one thousand dollars ($1000) or more, and enterprise accounts may qualify for a reduced eDelivery fee by depositing funds into their Yiftee eGifting accounts by check or ACH and disabling credit cards.

Participants pay Mastercard processing fees for a card-not-present (CNP) transaction upon redemption.

Yiftee does not control these fees, they are set by the Merchant Acquirer who is their credit card processor.

Subject to applicable laws, Yiftee will implement a monthly maintenance fee on eGift Cards that have been inactive (i.e. no spending on the Card) for periods of greater than 12 months. This will be made clear to cardholders on the face of the eGift Card when implemented, as is required by law.

Yiftee eGift Cards do not generally expire. Subject to applicable laws, in some cases eGift Cards given by corporations or merchants as promotions, rewards and awards may have expiration dates. In the case of eGift Cards expiring, Yiftee retains 10% of the original eGift Card value not to exceed the remaining unspent funds and refunds the balance to the purchaser’s Yiftee eGift Card account. eDelivery fees are not refunded.

Participants may choose, at their discretion, to post Offers to encourage Purchasers to use their Community Cards in their stores.

Participants may choose, at their discretion, to offer rebates as fund raisers to local groups such as schools, churches and other non-profits. Such programs are an incentive for the local groups to sell Community Cards to their members, and for the Purchasers to use them in specific stores who are offering rebates. Yiftee will work with the Participants and Purchasers to execute such programs.

No tipping is allowed on Yiftee eGift Cards.
178
Community Gift Card Program
179
• The City Council, at its 2/22/2022 meeting, received a report on the FY 21-22 mid-year budge
t
• At that meeting the Council adopted a resolution approving appropriati
ons for several ARPA priority items
• One of the priority items approved was to utilize $65,000 towards a pilot Gift Card Pr
ogram
Community Gift Card Program
180
• Community Digital Gift Card programs can stimulate the local econom
y, assist small businesses in recovery and provide some additional savings to residents to shop locally
• Both the Business Needs Survey and the Community Survey showed str
ong support for the use of a gift card program
• The Yiftee program is the most popular and offers the best customer service ra
ting
181
• The Yiftee Community Digital Gift Card program is a cost- eff
ective way to assist small businesses in recovery and can also provide additional savings to residents who shop locally • The proposed gift card pilot program would be a ‘buy one and get one
free’ for residents.
• There is no set-up fee or monthly costs.
182
The $65,000 of ARPA monies would pay for:
• The $1+5% eDelivery fee plus a $1 bonus gift fee per card • A bonus gift card
• Branding costs
• Marketing costs
183

RECOMMENDATION

APPROVE THE PROPOSED RESOLUTION AUTHORIZING

THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH
YIFTEE FOR A SHOP LOCAL/GIFT CARD PROGRAM.
184
Questions ?
185

Hercules City CouncilApril 26, 2022

Hercules City Council
April 26, 2022