Agenda Packet — Hercules City Council, June 14, 2022 (part 2 of 2)

Foxboro Sewer Access Road
Subtotal

TOTAL CAPITAL EXPENDITURES
Remaining Fund Balance
FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27
Proposed Forecast Forecast Forecast Forecast
360,000 21,829,750 32,836,768 15,640,738 3,180,000
360,000 21,829,750 32,836,768 15,640,738 3,180,000
- - - - -
- - - - -
- - - - -
60,000 60,000 60,000
21,769,750
32,776,768
10,640,738
5,000,000
300,000
360,000 21,829,750 32,836,768 15,640,738 - - - - -
360,000 21,829,750 32,836,768 15,640,738 - - - - -
Grants
Grants
FY 22-23
Proposed
FY 23-24
Forecast
FY 24-25
Forecast
FY 25-26
Forecast
FY 26-27
Forecast
-
-
259
Project Funding Source: Prior FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Police Development
Impact Fee -$ - $ 550,000.00$ -$ - $ - $ -$ 550,000.00$ General Fund (Decsion
Package FY 21-22) 100,000.00$ 60,000.00 $ - $ - $ - $ - $ -$ 60,000.00$ Corporation Yard Landscaping General Fund 62,000.00$ - $ - $ - $ - $ - $ -$ -$ 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 162,000 $ 160,000 $ 575,000$ 25,000$ 25,000$ 25,000$ - $ 810,000.00$ City of Hercules
Facilities CIP Summary
Police Dept. Expansion
260
Project Number: BDP#22-3
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Total Estimated Cost: Budget
Proposed Budget: 710,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022- 23 FY 2023-24 FY 2024-25 FY 2025- 26 FY 2026-27 FY2027-2042 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Police Development Impact Fee -$ - $ 550,000.00$ - $ - $ - $ - $ 550,000.00$ General Fund (Decsion
Package FY 21-22) 100,000.00$ 60,000.00 $ - $ - $ - $ - $ - $ 160,000.00$ Adjustment -$ - $ - $ - $ - $ - $ - $ -$ Total 100,000$ 60,000$ 550,000$ -$ - $ - $ -$ 710,000.00$ 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 Police 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 was evaluated last year but was not feasible. The project would remake the decrepit abandoned modular building in front of City Hall and replace them for police lockers, Including private restrooms and showers, and potentially a workout/Training area.

The existing facilities are two small and in poor condition. The new facilities will allow for increased diversity and inclusion
261
Project Number: BDP#22-4
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Proposed Budget: 62,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
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Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025- 26 FY 2026-27 FY2027-2042 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed General Fund 62,000.00$ -$ - $ - $ - $ - $ - $ 62,000.00$ -$ -$ - $ - $ - $ - $ - $ -$ Adjustment -$ - $ - $ - $ - $ - $ - $ -$ Total 62,000$ -$ - $ - $ - $ - $ -$ 62,000.00$ 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 $62K. This work would include connecting to the existing water line, installing a back flow, connecting to existing electricity, installing an irrigation controller, irrigation piping and bubblers, soil prep, and planting 5‐gallon shrubs. The shrubs would need approximately 3 to 5 years grow large enough to visually screen the Corp Yard. As measure, fabric similar to the existing material could be installed. 262
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Proposed Budget: 75,000.00$
Planning and Design: -$
Construction Management -$
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Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025- 26 FY 2026-27 FY2027-2042 Total Budget Carryover 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
The Building Facilities Plan will assess the condition of all city‐owned facilities and developed a prioritized schedule of needed maintenance and repairs.

The average age of City facilities is approximately30 years old. A proactive approach versus pays as you go is needed to ensure they are properly maintained.
263
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Proposed Budget: 125,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
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Contingency: -$
Total: - $
Funding Source: Prior Year 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
Assess all city‐owned building facilities for ADA accessibility.

Periodic assessment is required by law
264
Project Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Refugio Valley Lake Dredging LLAD 83-2 Zone 10 50,000.00$ -$ -$ - $ - $ - $ 650,000.00$ 50,000.00$ Refugio Park Retaining Wall LLAD 83-2 Zone 10 -$ - $ - $ - $ - $ - $ 250,000.00$ -$ Baywood Tree Replacement Baywood LLAD No. 2004-1 162,000.00$ - $ - $ - $ - $ - $ -$ 162,000.00$ Trash Cans Replacement LLAD 83-2 Zone 10 -$ - $ - $ - $ - $ - $ -$ -$ 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 984,000 $ 425,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 900,000 $ 1,634,000$ City of Hercules
Parks and Open Space CIP Summary
Beechnut Park
265
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Proposed Budget: 700,000.00$
Planning and Design: -$
Construction Management 700,000.00$
Construction: -$
Equipment: -$
Contingency: -$
Total: 700,000.00 $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025- 26 FY 2026-27 FY2027-2042 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed LLAD 83-2 Zone 10 Funds 50,000.00$ - $ - $ - $ - $ -$ 650,000.00$ 700,000.00$ -$ - $ - $ - $ - $ - $ - $ -$ -$ - $ - $ - $ - $ - $ - $ -$ Adjustment -$ - $ - $ - $ - $ - $ - $ -$ Total 50,000$ - $ - $ - $ - $ -$ 650,000$ 700,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Refugio Valley Lake Dredging
Dredge Refugio Lake
Silt has filled up the lake in several locations and needs to be removed. Alternative dredging methods need to be explored given removing and disposing of all the silt at one time was estimated to cost $750K‐$1M. 266
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Proposed Budget: 162,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025- 26 FY 2026-27 FY2027-2042 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Baywood LLAD No. 2004-1 162,000.00$ - $ - $ - $ - $ - $ - $ 162,000.00$ -$ - $ - $ - $ - $ - $ - $ -$ -$ - $ - $ - $ - $ - $ - $ -$ Adjustment -$ - $ - $ - $ - $ - $ - $ -$ Total 162,000$ - $ - $ - $ - $ - $ -$ 162,000.00$ 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.
268
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Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed LLAD 83-2 Zone 10 Funds -$ - $ - $ - $ - $ - $ - $ -$ -$ - $ - $ - $ - $ - $ - $ -$ -$ - $ - $ - $ - $ - $ - $ -$ Adjustment -$ - $ - $ - $ - $ - $ - $ -$ Total -$ - $ - $ - $ - $ - $ - $ -$ 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. 269
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Proposed Budget: 150,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
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Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025- 26 FY 2026-27 FY2027-2042 Total Budget Carryover 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
The City's parks have been maintained on a pay as you go basis for the pas t decade. Additionally, requests to repair facilities or construct new facilities are received every year.

Long‐term planning and budgeting are needed to proactively maintain the City's parks. Additionally, ARPA funding could be used for new facilities as well, which would benefit from public outreach to better understand the community's priorities.
270
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Proposed Budget: 254,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025- 26 FY 2026-27 FY2027-2042 Total Budget Carryover 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.
271
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Proposed Budget: 50,000.00 $
Planning and Design: -$
Construction Management -$
Construction: -$
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Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025- 26 FY 2026-27 FY2027-2042 Total Budget Carryover 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. 272
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Proposed Budget: 6,000.00 $
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025- 26 FY 2026-27 FY2027-2042 Total Budget Carryover 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. 274
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Proposed Budget: 125,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025- 26 FY 2026-27 FY2027-2042 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed LLAD 83-2 Zone 10 -$ 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 2022-23 through 2026-27
ADA Assessment
Assess parks facilities for ADA Accessibility.

Future years are to construct improvements.

Federal Requirement.
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Proposed Budget: 100,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
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Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Carryover 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. 276
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Proposed Budget: 250,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Carryover 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.
277
Project Number: BR#22-3
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Proposed Budget: 12,000.00 $
Planning and Design: -$
Construction Management -$
Construction: -$
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Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Carryover 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. 278
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Proposed Budget: 55,000.00 $
Planning and Design: -$
Construction Management -$
Construction: -$
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Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025- 26 FY 2026-27 FY2027-2042 Total Budget Carryover 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 Gazebo & Railing
The gazzebo and railing in Refugio Linear Park need to be refurbished. 279
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Proposed Budget: 85,000.00 $
Planning and Design: -$
Construction Management -$
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Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025- 26 FY 2026-27 FY2027-2042 Total Budget Carryover 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
The Eucalyptus trees in Ohlone Dog Park need to be removed or pruned.

Enhance Safety.
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To reduce fire hazard and claims from damage to adjacent private property. 281
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Proposed Budget: 60,000.00 $
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025- 26 FY 2026-27 FY2027-2042 Total Budget Carryover 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
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Project Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Carryover 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 223,944.00$ 60,000.00 $ 60,000.00 $ 60,000.00 $ - $ - $ - $ 403,944.00$ 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 178,911.00$ - $ - $ - $ - $ - $ - $ 178,911.00$ STMP Fund 724,602.00$ 300,000.00 $ - $ - $ - $ - $ - $ 1,024,602.00$ Total 1,127,457$ 860,000$ 21,829,750$ 32,836,768$ 15,640,738$ -$ 3,180,000$ 75,474,713.00$ City of Hercules
RITC CIP Summary
Design Utility Relocation
283
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

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.
284
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 403,944.00$
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 223,944.00$ 60,000.00$ 60,000.00$ 60,000.00$ -$ - $ - $ 403,944.00$ Adjustment -$ - $ - $ - $ - $ - $ -$ -$ Total 223,944$ 60,000 $ 60,000 $ 60,000 $ - $ - $ -$ 403,944.00$ 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 Agenci es 285
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
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 286
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

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
287
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

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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 288
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
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
289
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

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
290
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 1,830,513.00$
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 178,911.00$ - $ - $ - $ - $ - $ - $ 178,911.00$ STMP Fund 724,602.00$ 300,000.00 $ - $ - $ - $ - $ - $ 1,024,602.00$ Unfunded -$ - $ - $ - $ -$ 627,000.00$ -$ 627,000.00$ Adjustment -$ - $ - $ - $ - $ - $ - $ -$ Total 903,513$ 300,000$ - $ - $ -$ 627,000$ -$ 1, 830,513.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
Design Utility Relocation
Advance Design of RITC by Task Order
291
Project
Funding
Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Inspect & Repair Sewer Sewer -$ -$ -$ 700,000.00$ - $ - $ -$ 700,000.00$ Sycamore Ave (Lower Trunk Main) Sewer 13,700,000.00$ 751,000.00 $ - $ - $ - $ - $ -$ 14,451,000.00$ 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$ Total 13,700,000$ 851,000 $ 600,000 $ 5,875,000$ 800,000 $ - $ -$ 21,826,000.00$ City of Hercules
Sewer CIP Summary
292
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 700,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2047 Total Budget Carryover 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. 293
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 14,451,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-2047 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Sewer Fund - 420 13,700,000.00$ 751,000.00 $ - $ - $ - $ - $ - $ 14,451,000.00$ -$ -$ - $ - $ - $ - $ - $ -$ -$ -$ - $ - $ - $ - $ - $ -$ Adjustment -$ -$ - $ - $ - $ - $ - $ -$ Total 13,700,000$ 751,000$ - $ - $ - $ - $ -$ 14,451,000.00$ 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.
294
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

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.
295
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

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. 296
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

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 and 2 sections of main along Willow near Sycamore.

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.
297
Project Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2027-2042 Total Budget Carryover 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 -$ -$ 700,000.00$ 700,000.00$ 700,000.00$ 700,000.00$ -$ 2,800,000.00$ 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$ 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 215,000$ 247,000$ 1,075,000$ 1,075,000$ 1,075,000$ 1,075,000$ 760,000$ 5,522,000.00$ 2021 Annual Street Rehabilitation
Project - Turquoise & Future Years
Annual Restriping Project
City of Hercules
Streets CIP Summary
Annual Sidewalk Repair Program
298
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

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 Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2 027-2042 Total Budget Carryover 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. 299
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Annual upkeep of markings and striping is needed.
300
Project Number: 63046
Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 3,900,000.00$
Planning and Design:

Construction Management
Construction:

Equipment:

Contingency:

Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2 027-2042 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed State Gas Tax Fund- 262 -$ -$ 700,000.00$ 700,000.00$ 700,000.00$ 700,000.00$ -$ 2,800,000.00$ 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 -$ 100,000$ 950,000$ 950,000$ 950,000$ 950,000$ -$ 3,900,000.00$ 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. 301
Project Number:

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 FY2027-2 042 Total Budget Actual Budget Proposed Proposed Proposed Proposed Proposed Proposed Unfunded -$ - $ - $ - $ -$ -$ 660,000.00$ 660,000.00$ -$ - $ - $ - $ -$ - $ -$ -$ Adjustment -$ - $ - $ - $ -$ -$ -$ Total -$ - $ - $ - $ -$ -$ 660,000.00$ 660,000.00$ City of Hercules
Capital Improvement Plan
Fiscal Years 2022-23 through 2026-27
San Pablo Sidewalk
Install sidewalk on the north side of San Pablo from Sycamore Avenue to John Muir Parkway.

This project will provide connectivity to the signal at Market Place into the new Safeway center. 302
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 140,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2 027-2042 Total Budget Carryover 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. 304
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Total Estimated Cost: Budget
Proposed Budget: 122,000.00$
Planning and Design: -$
Construction Management -$
Construction: -$
Equipment: -$
Contingency: -$
Total: - $
Funding Source: Prior Year FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY2 027-2042 Total Budget Carryover 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
For FY 21‐22 complete Village Parkway Traffic Calming per City Council Decsion Package. For FY 22‐23, add 2 pilot project speed bumps for $22,000.

Traffic calming striping and signage help slow automobiles down, but vertical deflection devices can be more effective. This would be on a pilot project basis to see if speed bumps would be effective in other areas of the city too.
306

TRUST & AGENCY FUNDS
307
Assessment District 05-01 Debt Service
Fund Summary - Fund 382
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 382,262 $ 437,262 $ Revenues
Assessment 297,724$ 229,064 $ 280,000 230,910 Interest Income 11,787 (434) 2,000 2,000 Miscellaneous Revenues - 3,313,813 - - 309,511 3,542,443 282,000 232,910
Transfers In - - - - 309,511 3,542,443 282,000 232,910
Expenditures
Salary and Benefits - - - - Contractual Services 9,454 6,215 7,000 - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service 495,146 3,560,886 220,000 232,910 504,600 3,567,101 227,000 232,910
Transfer Out - - - - 504,600 3,567,101 227,000 232,910
Changes in restricted reserves
Net Annual Activity (195,089)$ (24,658) 55,000 - Ending Available Fund Balance 382,262 $ 437,262 $ 437,262 $ (Restricted for Debt Service)
This fund accounts for revenues from property tax special assessments and provides funding for bonded debt related to Reassessment District 2005-1 (John Muir Parkway). The District Bond are not general obligations of the City.
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Taylor Woodrow Maintenance LMOD
Fund Summary - Fund 501
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 70,035 $ 70,035 $ Revenues
Charges for Services - $ - $ - - Interest Income 1,389 (6) - - Miscellaneous Revenues - - - - 1,389 (6) - - Transfers In - - - - 1,389 (6) - - Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service - - - - - - - -
Transfer Out - - - - - - - -
Changes in restricted reserves
Net Annual Activity 1,389 $ (6) - - Ending Available Fund Balance 70,035 $ 70,035 $ 70,035 $ An agreement with Taylor Woodrow Homes, Inc. (project known as the "Hercules Village Project") was established with the former Redevelopment Agency to assist with the development. 15% of the residential units in the projects are provided to Low to Moderate Income. This fund is to be use for the benefit of the qualified buyers or affordable unit owners.
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Other Post-Employment Benefits (OPEB) and SOMAR
Fund Summary - Fund 511
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 3,000,208 $ 3,027,208 $ Revenues
Charges for Services - $ - $ - - Interest Income 124,144 361,114 27,000 58,000 Miscellaneous Revenues - - - - 124,144 361,114 27,000 58,000
Transfers In 108,000 60,000 60,000 60,000 232,144 421,114 87,000 118,000
Expenditures
Salary and Benefits 66,329 91,243 55,000 82,000 Contractual Services 13,381 17,593 5,000 20,000 Utilities - - - - Maintenance & Repairs - - - - Other Expenses - - - - Cost Allocation - - - - Capital Outlay - - - - Debt Service - - - - 79,710 108,836 60,000 102,000
Transfer Out - - - - 79,710 108,836 60,000 102,000
Changes in restricted reserves
Net Annual Activity 152,434 $ 312,278 27,000 16,000 Ending Available Fund Balance 3,000,208 $ 3,027,208 $ 3,043,208 $ (Restricted for OPEB)
This fund is to account for the optional monetary allowance for both safety and non-safety employees with an annual three percent adjustment on January 1st of each year to employees who retire as regulated by PERS and must have the minimum sick leave accrued as outlined in the Memorandum of Understanding (MOU), and OPEB Trust.
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PRIVATE PURPOSE TRUST
FUNDS
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Successor Agency
Fund Summary - Fund 600
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 - $ - $
Revenues
Tax Increment (RPTTF) 9,520,566 12,019,210 9,406,000 16,935,736 Interest Income 467,441 485,135 - - Miscellaneous Revenues 75,679 80,744 - - 10,063,686 565,879 9,406,000 16,935,736
Transfers In - - - - 10,063,686 565,879 9,406,000 16,935,736
Expenditures
Salary and Benefits - - - - Contractual Services - - - - Utilities - - - - Maintenance & Repairs - - - - Other Expenses 1,749,807 2,773,445 1,191,000 2,635,660 Cost Allocation - - - - Capital Outlay - - - - Debt Service 4,912,580 4,754,610 8,215,000 8,187,045 6,662,387 7,528,055 9,406,000 10,822,705
Transfer Out - - - - 6,662,387 7,528,055 9,406,000 10,822,705
Changes in restricted reserves (6,113,031)
Net Annual Activity 3,401,299 $ (6,962,176) - - Ending Available Fund Balance - $ - $ - $ The Hercules' Successor Agency was established as a separate legal entity on January 10, 2012, under the City Council adopted Resolution 12-005. All non-housing funds and assets where then turned over to the successor agency who is charged with the responsibility of paying off the former Redevelopment Agency's existing debts, disposing of the former Redevelopment Agency's properties and assets to help pay off debts and return revenues to the local government entities that receive property taxes, and winding up the affairs of the former Redevelopment Agency.
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GLOSSARY OF BUDGET TERMS
313
CITY OF HERCULES FY 2022-23 ANNUAL BUDGET GLOSSARY OF BUDGET TERMS

GLOSSARY OF BUDGET TERMS
Adopted Budget: The adopted budget is the
annual City budget approved by the City Council
on or before June 30.

Allocated Costs: Interfund transactions
that constitute reimbursements to a fund for
expenditures or expenses initially made from it but
that properly apply to another fund.

Appropriation: An appropriation is the legal
authorization granted by the City Council to make
expenditures and incur obligations for a specific
purpose within a specific time frame.

Assessed Valuation: A dollar placed on real estate
or other property by the County as a basis for
levying property taxes.

Beginning Fund Balance: Fund balance available
in a fund from the end of the prior year for use in
the following year.

Bond: A City may raise capital by issuing a
written promise to pay a specified sum of money,
called the face value or principal amount, at a
specified date or dated in the future, together with
periodic interest at a specified rate.

Budget: A plan of financial and program operation
listing an estimate of proposed appropriations or
expenses and the proposed means of financing
them, for a particular time period. The budget
is proposed or preliminary until it has been
adopted by the City Council. Hercules’ budget
encompasses one fiscal year.

Capital Budget: Annual appropriations for capital
improvement projects such as street improvements
and building construction. Capital projects are
supported by a five-year expenditure plan, which
details funding sources and expenditure amounts.

They often are multi-year projects, which require
funding beyond the one-year budget period.

Capital Projects Fund: A fund created to account
for all resources to be used for the constructions
or acquisition of designated fixed assets by a
governmental until except those financed by a
proprietary or fiduciary funds.

Debt Service: Payment of the principal and
interest on an obligation resulting from the
issuance of bonds, notes or leasing arrangements.

Department: An organizational until comprised
of divisions or programs. It is the basic until of
service responsibility that may include a broad
mandate or related activities. It is possible for a
department to have only one division.

Division: A subsection (or activity) within a
department, which furthers the objectives of the
City Council by providing specific services or
programs.

Enterprise Fund: A type of fund established for
total costs of those governmental facilities and
services, which are operated in a manner similar
to private enterprises. These programs are entirely
or predominantly self-supporting. The city of
Hercules maintains a Sewer Enterprise Fund.

Expenditures: Monies spent, including current
operating expenses, debt service and capital
outlays.

Fiduciary Funds: These funds account for assets
held by the City in a trustee capacity. The budget
does not appropriate fiduciary funds.

Fiscal Year (FY): The City’s year for accounting
and budgeting purposes, that begins on July 1 and
ends June 30.
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CITY OF HERCULES FY 2022-23 ANNUAL BUDGET GLOSSARY OF BUDGET TERMS Full-Time Equivalent (FTE): The amount of
time a regular full time or part-time position has
been budgeted for in terms of the amount of time
an employee works in a year.

Fund: An independent fiscal and accounting
entity used to record all financial transactions
related to the specific purpose for which the fund
was created. These are four types for funds:

General, Special Revenue, Enterprise, and
Fiduciary.

Fund Balance: The amount of financial resources
available for use. Generally, this represents the
excess of assets over the sum of liabilities and
restricted reserves. For enterprise funds, it is the
excess of current assets over current liabilities.

Gann Appropriations Limit: Article XIIIB of
the State constitution was amended by Proposition
4 (Gann initiative) in 1979. Article XIIIB limits
growth in the spending of tax proceeds to tax
proceeds appropriated in the “base year” of the
1978-79 times the product of the allowable annual
percentage change in a cost-of-living factor and
the allowable annual percentage change in a
population change factor. The cost-of-living factor
is the larger of the annual percentage change in
the State per capita personal income or the annual
percentage change in the local non-residential
assessed valuation due to new construction. The
population change factor is the larger of the annual
percentage change of the jurisdiction’s population
or the annual percentage population change of the
country in which the jurisdiction is located.

General Fund: The primary fund used to account
for all revenues and expenditures of the City not
legally restricted as to use. The fund is used to
offset the cost of the City’s general operations.

Examples of departments financed by the General
Fund include the Police, Public Works and
Administrative Departments.

Grant: Contributions, gifts of cash or other assets
from another governmental entity to be used
or expended for a specific purpose, activity or
facility.

Guaranteed Investment Contract (GIC):

A contract that guarantees repayment of
principal and a fixed or floating interest rate for
predetermined period of time.

Infrastructure: Facilities on which the
continuance and growth of a community depend,
such as streets and roads, sewers, public buildings,
parks, etc.

Interfund Transfer In/Out: Monies transferred
from one fund to another. Such money is
transferred to finance the operations of another
fund or to reimburse the fund for certain
expenditures.

Internal Service Funds: These funds provide
services to City departments and recover
their costs through user charges. The Vehicle
Replacement Fund is an Internal Service Fund
managing the replacement and maintenance of the
City fleet.

Method of Accounting: The City’s General Fund
budget is developed using modified accrual basis
of accounting, with revenues being recorded when
measureable and available, and expenditures
recorded when the liability is incurred. Enterprise
funds and Internal Service Funds are budgeted
on a generally accepted accounting principles
(GAAP) basis, which for Proprietary Funds is on a
full accrual accounting basis.

Operating Budget: Annual appropriation funds
for on-going program cost, including salaries and
benefits, services and supplies, debt service and
capital outlay.
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CITY OF HERCULES FY 2022-23 ANNUAL BUDGET GLOSSARY OF BUDGET TERMS Operating Capital Outlay: A budget
appropriation category which budgets all
equipment having a unit cost of more than $2,500
and an estimated useful life of over one year.

These are considered an operating expense and
are differentiated from capital expenditures by the
amount of money they cost. Any expenditure over
$2,500 with an estimated useful life over one year
is capitalized.

Operating Transfer: Amounts transferred
between funds; not considered a revenue or
expense. For example, legal authorized transfers
from a fund receiving revenue to the fund through
which the resources are to be expected.

Ordinance: A formal legislative enacted by the
City Council. It has the full force and the effect
of law within the City boundaries unless it is
in conflict with any higher form of law such
as a State statute or constitutional provision.

An ordinance has higher legal standing than a
resolution.

Program: A program is an activity or division
within a department, which furthers the objectives
of the City Council by providing services or a
product.

Reserve: Represents the portion of fund balance
set aside for financing future capital improvements
or the outlay of capital projects in any given year,
and addressing one-time emergency needs.

Resolution: A special order of the City Council,
which has lower legal standing than an ordinance.

Revenues: Monies received or anticipated by
a local government from both tax and non-tax
sources during the fiscal year.

Salaries and Benefits: A budget category which
generally accounts for full-time and parttime
employees, overtime expenses and all employee
benefits, such as medical, dental and retirement.

Services and Supplies: Expenditures for supplies,
materials and services which ordinarily are
consumed within a fiscal year and which are not
included in inventories.

Special Revenue Funds: These funds account
for the proceeds derived from specific revenue
sources that are legally restricted to expenditures
for specified purposes.
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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: 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
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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.

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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:

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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
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 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. 321

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

322

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of May 10, 2022

TO: Members of the City Council

SUBMITTED BY: Dante Hall, City Manager
Edwin Gato, Director of Finance

SUBJECT: Introduction of FY 22-23 City of Hercules General Fund and Other Restricted Funds Proposed Budget

RECOMMENDED ACTION:

Receive an Introduction of FY 22-23 City of Hercules General Fund and Other Special Revenue Funds Proposed Budget. No action is required at this time. It is recommended that the City Council discuss and provide direction to staff regarding the proposed Fiscal Year (FY) 22-23 budget and policies. The first public hearing for the budget has been set for June 14, 2022. City Council will consider adopting the proposed FY 22-23 Budget after the second public hearing scheduled for June 28, 2022.

COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:

FISCAL IMPACT OF RECOMMENDATION:

There is no impact from the introduction of the proposed FY 22-23 General Fund and Other Restricted Funds Budget.

BACKGROUND:

This is the second phase of the budget introduction. The proposed FY 22-23 General Fund budget provides a thoughtful balance between one-time and ongoing investments which would best meet the community’s needs within the city’s financial resources, and long-term financial stability strategies. Going forward, staff is recommending a process where the budget reflects the community’s long-term vision, strategic plans, and established priorities.

Not only will this adjustment to the budget process allow our City to make better short-term resource allocation decisions (based on the relative priority of the programs and services), it also provides a new way to link budget decisions to the strategic results and outcomes that the City wishes to achieve for the long-term.

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Budget Process
The proposed budget is introduced in May when the City Manager’s recommended annual budget is presented to the Council and made available to the public. Budget deliberations begin shortly thereafter with a City Council Budget Public Hearing, and adoption of the recommended annual budget in June.

DISCUSSION:

This year, the City’s goal is to responsibly set the course to fiscal stability. Due to the impacts of COVID, the City reduced services, specifically to Parks & Recreation. Fortunately, the economy is beginning to rebound from the financial impacts of the pandemic, and the receipt of one-time American Rescue Plan Act (ARPA) funds, in the amount of $6.2 million will help back-fill some pandemic-related revenue losses, thereby avoiding reductions in service.

However, one-time funding does not support long -term planning for adequate levels of ongoing services. A portion of ARPA Funding was allocated mid -year to address some community needs related to COVID impacts. A list of ARPA expenditures previously approved can be found on Attachment 2.

While the FY 21 -22 budget was a relatively flat budget due to the economic uncertainty facing effects of the COVID -19 pan demic, the proposed FY 22 -23 budget reflects the cautious projections for recovery of the local economy, and incorporates the opportunities presented by ARPA.

The City Manager’s proposed operating budget remains consistent with the Council’s commitment to long-term solvency. The revenue estimates and expenditure appropriation in the budget are for the General Fund and other restricted funds. They include general operations, debt, capital and internal transfers (for all programs and support functions of the City), fund summaries and financial schedules (showing prior year actual results), and the FY 22-23 proposed budget compared to last year’s adopted budget.

A fund is grouping of related accounts, which are used to maintain control over resources that have been segregated for specific activities or objectives. The discussion section of this report provides information for the following sections:
:

I. General Fund Revenue Estimates
II. General Fund Expenditures Projections
III. General Fund Projected Net Annual Results
IV. ARPA Fund
V. Non-General Fund Programs
VI. Proposed Additions to the Financial Principles and Policy

General Fund
The General Fund is the chief operating fund of the City. This fund is used to record all resource inflows and outflows that are not associated with special -purpose funds. The activities being paid for through the general fund constitute the core administrative and operational tasks of the City.

I. General Fund Revenue Estimates
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As shown in the graph and as detailed in attachment 1, General Fund revenues in FY 22-23 are projected to increase by approximately 8% compared to FY 20 -21 actual receipts. The revenue increase is substantially driven by proceeds from sales tax and the program fees from the re-opening of the Parks & Recreation programs.

The bulk of General Fund revenues come from taxes (Utility User’s Tax (UUT), Sales Tax, Property Tax, Real Property Transfer Tax (RPTT), Transient Occupancy Tax (TOT) and other taxes).

 Sales Tax
The largest revenue source for the City’s General Fund is remitted to the City from the State monthly. Sales Tax revenues are conservatively estimated to increase by 5% compared to FY 20-21 actual receipts based on the quarter three analysis generated from the Board of Equalization (BOE) data. Total sales tax revenues are highly concentrated within a few major operators. Hercules sales tax revenue is substantially generated from business-to-business sources. Its top 3 producers generate over 50% of the City’s sales tax. However, the City continues to benefit from the ongoing implementation of the Wayfair decision regarding online sales and the more significant number of purchases made online due to the Pandemic. These trends are part of the City’s share of the County pool.

The following chart depicts the source of the City’s sales tax revenues by industry group.

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Annual Per Capital Sales Tax
(Based on Actual Receipts)

 Utility User’s Tax
Utility User’s Tax (UUT) are revenues collected from the consumption of utility services, including (but not limited to) electric, gas, water, sewer, telephone (including cell phone and long-distance), sanitation, and cable television. The City determines the tax rate and the use of its revenues. UUT revenues are estimated to stay relatively flat compared to FY 20-21 actual receipts. Based on the trend and its consumption rate, the City continues to see erosion in Wireless Telecom’s UUT revenues due to the update in allocations of the bundled packages from the respective providers. These updated allocations shifted a more significant percentage towards data, which is not taxable.

Annual Per Capita UUT
(Based on Actual Receipts)

On June 4, 2013, the voters approved Ordinance #475, increasing the 6% to 8%.

The Utility User’s Tax will automatically sunset, and its provisions shall become ineffective on January 1, 2025, unless extended by a vote of the electorate. The City’s UUT revenue makes up $3.6 Million or approximately 20% of the general fund budget. If the UUT we’re not renewed, this would cause a significant 2017 2018 2019 2020 2021
30 33 42 36 42
12 13
17 25
26 15 15
16 18
19 12 12
12 11
20 9 10
10 7
8 4
4 4 4
4 General Retail
Transportation
Food Products
Construction
County Pool
Business to Business
2017 2018 2019 2020 2021
16 14 15 15 20
47 48 46 48 48
37 34 28 23 20
18 22 24 27 29
19 22 21 21 20 Cable
Water
Telephone
Electricity
Gas
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decrease in general fund revenue needed to continue to provide vital services to the community.

 Property Tax
The City of Hercules has been classified as a low-to-no property tax jurisdiction.

The City's share of the base 1% property tax rate is lower than most other jurisdictions at just a little over 5% of Hercules's total base property taxes. This year the Assessor's office applied a CPI factor of 2% to non-Prop 8 parcels. It is estimated that the City share of 1% assessed property value tax is calculated to be $1.5 million for FY 22-23.

 Transient Occupancy Tax (TOT) – For the privilege of occupancy, each transient is subject to a 10% of the rent charged by operator. The TOT is a general tax which is deposited into the City’s General Fund. TOT revenue is expected to increase by approximately $100,000 in FY 22-23 due to new development.

 Parks & Recreation Program Revenues
During the COVID-19 pandemic and mandatory closure, the Parks & Recreation program was heavily impacted. The revenues from this program were significantly reduced in the prior year due to the suspension of programs and offerings and facility rentals. The FY 22 -23 revenue estimates reflect the re - opening of suspended programs, and revenues are projected conservatively equal to approximately 75% of total pre-pandemic actual receipts ($1.1 million).

 Fees for Service - The City charges fees to the community based on the costs of services provided. These fees are documented in the City’s Master Fees & Charges Schedule. The Master Fees & Charges schedule is approved periodically by the City Council, and individual fees may be amended from time to time during a fiscal year. However, there must be a nexus to the costs of the provision of those services. The following is the summary of fees projected to be collected by the General Fund:
o Parks & Recreation: $1.1 million
o Building Permits: $145,000
o Police Fees: $139,000
o Encroachment, Grading and Subdivision Fees: $38,000

 Cell Tower Leases – The revenue collected from the leases on cell towers is projected to increase by 4%.

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II. General Fund Expenditure Projections

The graph and as detailed in attachment 1 shows that General Fund expenditures are projected to increase by 7% compared to the prior year's budget. The following categories explain the assumption used to arrive at the estimated cost:

A. Salaries and Benefits
The most significant cost in the General Fund is driven by its labor. Labor accounts for almost 60% of total expenditures. Below are significant assumptions used to estimate the cost of salaries and benefits:

1. Regular Salaries – Unless directed otherwise, for the preliminary budget, personnel services costs will include a 3% wage increase placeholder pending the results of labor negotiations of the City's employee groups.

2. PERS Miscellaneous and Public Safety Normal Cost and Unfunded Actuarial Liability (UAL) rates applied are projected as follows and is based on CalPERS actuarial assumptions:

3. Health care costs, including medical, dental and vision, are projected to increase by 3% from the FY 21-22 Kaiser rate.

4. 1% of employee salaries will be contributed towards IRS Section 115 Pension Trust per policy direction established by the City Council.
-
2,000,000.00
4,000,000.00
6,000,000.00
8,000,000.00
10,000,000.00
12,000,000.00
14,000,000.00
16,000,000.00
18,000,000.00
FY 17-18
Actual
FY 18-19
Actual
FY 19-20
Actual
FY 20-21
Actual
FY 21-22
Budget
FY 22-23
Projection
Debt Obligations/Other
Insurance
Administration
City Council
Parks and Recreation
Community Development
Public Works
Police
Normal Unfunded
Cost Liability
Police Classic 23.75% $774,069
Police 2nd-Tier 21.84% $2,333
Police PEPRA 12.78% $6,834
Misc Classic 10.32% $636,385
Misc PEPRA 7.47% $3,898
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B. Overall expenditures were estimated to increase by 5% within the Bay Area Consumer Price Index CPI from February to February of 5.2%.

C. One-time expenditures include the Department of Finance (DOF) settlement, and other capital projects.

III. General Fund Projected Net Annual Results
The General Fund is projected to end the year with approximately $750K, of which $600K is ongoing and about $167K is one-time, and $4.3 million in operating reserve.

The reserve balance is equivalent to 25% of the General Fund budget. This balance is $1.5 million above the Council’s reserve target goal of 16%. Staff will propose fiscal policies for Council to re view and approve on the level of unrestricted fund balance maintained in the general fund for GAAP and budgetary purposes and allocation of net General Fund revenues.

IV. American Rescue Plan Act (ARPA)
To further assist government entities with the pandemic response and recovery, on March 11, 2021, the American Rescue Plan Act of 2021 (ARPA) was signed into law, making funding available through the State and Local Fiscal Recovery Funds (SLFRF) to assist states, tribal governments, and local governments. On May 10, 2021, the United States Department of Treasury released regulations and updated the local government allocation. As part of the 1.9 trillion relief package, the City of Hercules became eligible for $6,285,778 to be paid in two installments. The City received the first payment equal to one -half of the City of Hercules’ allocation for $3,142,889 in mid-July 2021. The second half will be distributed in July 2022. The following is the summary for the use of Fiscal Recovery Funds:

1. General Fund Revenue Loss Incurred by the City - ARPA recipients may use payments from the Fiscal Recovery Funds for the provision of government services to the extent of the reduction in revenue experienced due to the COVID‐19 public health emergency. Section 603(c)(1)(C) of the ARPA allows recipients facing budget shortfalls to use payments from the Fiscal Recovery Funds to avoid cuts to government services. This is envisioned to enable local governments to continue to provide valuable services and ensure that budget deficits, tax increases, and reductions in public expenditures do not continue to delay a city’s broader economic recovery. Based on the Department of the Treasury’s revenue loss formula which includes all sources of revenue, the City of Hercules experienced a $2,918,338 shortfall in general revenues for the period ending December 31, 2020, due to the COVID–19 public health emergency. This total amount, or any portion thereof, is an eligible expense under ARPA funding rules.

2. The American Rescue Plan Act provides that Fiscal Recovery Funds may also be used for the following:

a. To respond to the public health emergency or its negative economic impacts, including assistance to households, small businesses, and 329
nonprofits, or aid to impacted industries such as tourism, travel, and hospitality;
b. To respond to workers performing essential work during the COVID‐ 19 public health emergency by providing premium pay to eligible workers;
c. To make necessary investments in water, sewer, or broadband infrastructure.

On October 20, 2020, the City distributed the Business and Community needs survey to better understand the impact of the COVID-19 pandemic on Hercules’ businesses.

On January 11, 2022, the City Council approved the set of principles to assist staff in developing the plan for the use of the ARPA funds. On February 22, 2022, the City Council approved, as part of the FY 21-22 Midyear Update, several priority projects as summarized in attachment 2 (ARPA – Eligible Expense List) , including the assistance from HdL for the administration of the ARPA programs that aligned with the adopted set of guiding principles.

FY 22 -23 proposed the following projects and programs are summarized in attachment 3 (the detailed list of ARPA proposed projects and programs). Should the City council wish to amend this list of projects and programs, staff requests additional direction. Staff will return to the City Council with a complete list of proposals at the full introduction of the budget on May 24, 2022. This gives the City Council ample time to review the proposals for approval and adoption of the budget in June. Does the City Council desire to set aside ARPA funding for one -time non-profit grants? If so, how much funding should be set aside for the one -time grant program?

V. Non-General Fund Programs

Special Revenue funds
The Special Revenue Funds are driven by grants or other specific funding sources used for particular purposes, such as transportation, building permit counter activity, other restricted programs, etc. Such funding sources are restricted, requiring revenues and expenditures to be tracked differently from the City’s primary operating fund, the General Fund. There is sufficient funding for the completion of current projects or programs, but the addition of any new programs or projects is dependent on the availability of future funding sources. The following are funds under Special Revenue:

A. Asset Seizure (Fund #101) – The City maintains a forfeited assets fund to account for monies received from Police confiscated drug money a nd property. Funds are held until the final court disposition is received. The funds are restricted to police-related activities only. FY 22-23 projected ending available balance is $42K.

B. AB 3229 COPS Program (Fund #201) – California State Legislature created the Citizens Options for Public Safety (COPS) program. The funds are restricted to front -line law enforcement services. The City receives 330
approximately $150K a year transferred to Ge neral Fund to offset police services.

C. Landscaping and Lighting Assessment Districts (LLADs) – This Funding is restricted to landscaping and lighting maintenance and capital improvements in City parks, major roads, and each of the 5 LLADs. The 5 LLADs include approximately 8,500 parcels that are projected to generate $3.07M in assessments in FY 22-23. The following are the projected FY 22-23 ending available fund balances:

1. LLAD 83-2 (Zones 1-10): $633,959

2. LLAD 2002-1, Victoria by the Bay: Negative Balance of $244,709

3. LLAD 2002-2, Hercules Village: $115,028

4. LLAD 2004-1, Baywood: $93,093

5. LLAD 2005-1, Bayside: $181,071

D. Stormwater (Fund #231) – This fund accounts for the activities associated with the acquisition, construction, maintenance, and operation of stormwater facilities to comply with the State stormwater permit requirements. FY 22-23 projected ending available balance is negative $177,445

E. Development Impact Fees (DIF) – Under California Mitigation Fee Act (AB 1600) cities and counties have the authority to implement DIFs. This allows cities and counties to collect funds from new development projects to cover public infrastructure, facilities, improvements, service, and community amenity costs related to the new development’s proportionate share of impact on those facilities. DIFs are prohibited from funding operation and maintenance and cannot be collected or used to cover existing capital or infrastructure deficiencies. The City DIF funds are categorized as follows and their respective available fund balance projected in FY 22-23:

1. Public Facilities: $335,776

2. Police Facilities: $107,047

3. Fire Facilities: $0 (Revenues remitted to the Fire District)

4. Parks & Recreation: $136,960

5. Public Benefit Fee: $496,323

6. Transportation Facilities: $67,474

7. Sub-regional Transportation Mitigation Program (S TMP): $0 (Revenues collected are remitted to West Contra Costa
Transportation Advisory Committee (WCCTAC) in accordance with the Master Cooperative Agreement)

F. State Gas Tax (Fund #262) - The Gas Tax is a special revenue fund used to account for the revenue received from the State of California derived from gasoline taxes. These funds may only be used for street purposes as specified in the State Streets and Highways Code, so they have always been an important revenue source for the City’s Streets Capital Improvement Program. The revenue estimate for FY 22-23 is a little under $760K and the 331
proposed budget is approximately $700K. The projected FY 22-23 ending available balance is $169,589.

G. Measure J Street Fund (Fund #263) – The Measure J Fund is a special revenue fund used to account for the revenue received from the County’s ½ cent sales tax measure and can only be used for street purposes per F. above, similar to the Gas Tax. The revenue estimate for FY 22-23 is $450K and the estimated ending available balance is $368,039.

H. Solid Waste and Recycling (Fund #291) – This special revenue fund is used to comply with recycling and diversion programs required by State legislation (AB 939). Qualifying expenditures include street repair to mitigate damage from garbage trucks , s treet sweeping, trash removal from the stormwater system, and enforcing the plastic bag ban. FY 22 -23 estimated ending available balance is $750,734.

I. Regional Water Quality (Fund #521) - This fund accounts for the Regional Water Quality. Created by the State Legislature in 1967, the Board protects water quality by setting statewide policy, coordinating, and supporting the Regional Water Board efforts, and reviewing petitions that contest Regional Board actions. There are nine regional water quality control boards that exercise rulemaking and regulatory activities by basins. FY 22-23 ending available balance is $51,569.

J. BART Park & Ride (Fund #266) – This fund is to account for BART Park & Ride fees. The revenue is restricted to the maintenance of the parking lot.

The ending available balance projected in FY 22-23 is $280,737.

Debt Service Funds
The Debt Service Fund is used to account for the accumulation of financial resources for the payment of principal, interest, and related costs for general long-term debt paid primarily from taxes levied by the City. Debt is issued as needed to provide for infrastructure improvements. The following is the summary of the City’s long-term debt and FY 22-23 debt service payment obligations:

VI. Proposed Policies
Hercules recently obtained a strong rating from credit agencies that track the City’s credit. These high ratings reflect a variety of factors, including the strength and diversity of the regional economy, moderate City debt levels, and current strong fiscal management, including the provision of adequate reserves. The City is committed to implementing and maintaining strong financial policies and fiscal stewardship. The City last prepared an update of its financial policies in December 2015. Since 2015, Principal Interest Total
2020 PFA Lease Revenue Refunding Bonds Fund #672 $386,663 $125,606 $512,269 2009 PFA Taxable Lease Revenue Bonds Fund #673 $235,000 $672,371 $907,371 SunTrust Lease Fund #383 $100,180 $2,369 $102,549
Equipment Lease Purcchase Agreement (Engie) Fund #388 $114,900 $111,531 $226,431 332
the City has established a Fiscal Neutrality Fund (or Operating Reserve), financial principles, and policies.

Although the City’s finances are stable today, expenses continue to grow, and future challenges associated with pension costs, workforce retention and attraction, and aging infrastructure also loom. The Fund Balance Reserve Policy specifies annual reserve levels that provide the City with the flexibility to adapt to local, regional, and state-wide economic changes and to stabilize the delivery of City services during periods of economic recession or disaster response. Staff is recommending adding the following to the Statement of Financial Principles and Policies adopted on December 16, 2015.

The following are staff’s recommended additions:

a. Service Level Expectations - Defining the types and levels of services expected in a given year includes a process of public engagement, understanding current services, identifying the City’s mission, long-term vision, and goals of the community. Based on the goals established by the City Council, the City Manager identifies the resources required to deliver services, how best to organize those resources to achieve the City Council’s vision for the community , and presents those recommendations in the proposed Budget for the City Council review, consideration, and direction. In a service-oriented organization such as a city, it takes a combination of staff and consultants to provide services. As important as it is for a city to invest in its physical capital, it is just as important for a city to ens ure it is investing appropriately in its human capital and to determine what is the proper level of staffing and the necessary skill sets required to deliver on the city’s mission.

City staff is currently evaluating potential needs for additional personnel and resources necessary to accomplish tasks related to the established priorities.

In FY 202 1-2022, services are being provided by 58 FTE (Full -Time Equivalent) City employees and equivalent to 28 part-time/seasonal staff. For the FY 2022-2023 Budget, the City Manager is proposing upgrading one part- time position to a full-time Senior Clerk I position for general administration support managed by the City Clerk’s Office. The proposed change is cost neutral and comparable to the salary of the part-time position paid at a higher class pay. Furthermore, the City will evaluate the current level of staffing to meet City Council’s strategic directives identified during its strategic planning workshop held on April 30, 2022.

b. Reserve Policy - The current general fund reserve policy calls for a 16% limit (equal to two months of the general fund operating budget) to be available in a fiscal emergency. Staff is recommending increasing the general fund reserve policy limit from 16% to 25% (equal to three months of the General Fund Operating Budget) to protect the City from fluctuations in the economy or other significant unplanned needs. Once a 25% funding level is reached, available surplus funds would be directed to other Council priorities. Does the 333
City Council agree that the reserve policy should be increased from 16% to 25%?

c. Long-Term Capital Improvement Project Funding – As staff mentioned during the April 26, 2022, Budget Workshop, the current funding strategy for capital projects entails a detail ed analysis of the long -term capital improvement project funding needs based on a 5-year forecast. This strategy assumes a “pay as you go” philosophy that does not anticipate the use of debt financing.

Does the City Council agree that a funding model be em ployed that proactively funds long-term capital improvement projects from existing resources and operating transfers into capital improvement reserves?

d. General Fund Surplus Allocation – A surplus occurs when income exceeds expenditures. The term is often referred to in government as savings. A surplus is an indication that the City's finances are being effectively managed.

Staff recommends that Available resources as determined annually through the closing of the financial records will be used as a basi s for the following allocation:

1. 25% to Contribution to Pension/OPEB - The City has established an Internal Revenue Service Code Section 115 irrevocable trust which achieves a higher rate of return on investments than that earned on the pooled investment portfolio, LAIF. Staff recommends that 25% of the available fund balance shall be put into a Trust Fund or directly into paying off the CalPERS unfunded liability for either pensions or post-employment benefits. Does the City Council agree that 25% of any available general fund surplus should be put into a Trust Fund or directly into paying off the CalPERS unfunded liability?

2. 25% to Operating Reserve – As mentioned above, staff recommends increasing the general fund reserve policy limit to 25%. As a means to maintain this limit, staff recommends that 25% of the available fund balance be put into operating reserves up to the 25% policy limit.

Does the City Council agree that 25% of the available general fund surplus should be put into Operating Reserves up to 25% of the General Fund?

3. 50% to Contribution to unmet/deferred infrastructure and maintenance needs – A funding mechanism to fund projects included in the Long -Term Capital Improvement Project Funding , as described in section c above . Does the City Council agree that 50% of the available general fund surplus should be put into Long-Term Capital Improvement Project Funding?

These available resources or available fund balances are generally one -time in nature as derived from one -time revenues or one-time expenditure savings. The actual amounts to be allocated will be based upon the prior year’s financial statements from the most recent audit.
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ATTACHMENTS:

1. FY 22-23 Proposed General Fund Budget and Balancing Spreadsheet

2. FY 22-23 Proposed Special Revenue Budget - Fund Summaries

3. FY 22-23 Proposed Debt Service Budget - Fund Summaries

4. FY 22-23 Proposed ARPA Programs and Projects

5. ARPA Funds Expenditure Summary and Remaining Balance

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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
6:30 PMTuesday, May 24, 2022
In-Person in Council Chambers or
Zoom ID: 824 7016 7417
Zoom Passcode: 059522
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 – 6:30 P.M. CALL TO ORDER - ROLL CALL 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. Mr. Tang also notated the Claimant's name is spelled Velasco.

Mayor Bailey recessed the meeting into closed session.

1. 22-184
Conference With Legal Counsel - Liability Claim
(Government Code Section 54956.95) In one (1) matter.

Claimant: Velasquez- Claim #GL-014171
IV. REGULAR MEETING – 7:00 P.M. CALL TO ORDER - ROLL CALL 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 item discussed in closed session and stated

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May 24, 2022City Council Meeting Minutes
there are no final or reportable actions to report.

VI. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Councilmember Kelley.

VII. MOMENT OF SILENCE
Mayor Bailey called for a moment of silence to observe the loss of life at the Robb Elementary School shooting.

VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 22-185 Presentation from West Contra Costa Unified School District Board Trustee, Jamela Smith-Folds
This presentation item was postponed to a future regular meeting date.

2. 22-188 Farewell to Community Development Director, Robert Reber City Manager Hall and Councilmembers provided comment to outgoing Community Development Director Robert Reber.

3. 22-189 Welcome to the new Community Development Director, Tim Rood City Manager Hall and Councilmembers provided comment welcoming new Community Development Director Tim Rood.

IX. AGENDA ADDITIONS/DELETIONS
Mayor Bailey announced request to move Discussion Item XIII.4 to be discussed as the first item under this agenda section.

City Manager Hall had no further additions or deletions.

X. PUBLIC COMMUNICATIONS
Public Speakers: Carmen Rodriguez; Frank Hahn; Sarah Creeley; Tanya Little; Susan Keeffe
This time is reserved for members of the public to address issues not included in the agenda. In accordance with the Brown Act, Council will refer to staff any matters brought before them at this time, and those matters may be placed on a future agenda.

XI. PUBLIC HEARINGS

1. 22-181
All-Electric Building Ordinance
Amendments to the Hercules Municipal Code, Title 9 - Building Regulations, modifying Chapter 5 - Electrical Code
Presentation by Community Development Director Robert Reber.

Councilmembers provided comments and concerns.

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May 24, 2022City Council Meeting Minutes
Public Speakers: Frank Hahn; Igor Tregub; Tanya Little
MOTION: A motion was made by Vice Mayor Walker-Griffin, seconded by Council Member Grimsley, to introduce Ordinance No. 539. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Vice Mayor A. Walker-Griffin, and Mayor D. Bailey3 - Nay: Council Member D. Romero, and Council Member C. Kelley2 - XII. CONSENT CALENDAR
A motion was made by Council Member C. Kelley, seconded by Council Member D. Romero, to adopt the Consent Calendar. The motion passed. 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. 22-183
Minutes
Recommendation: Approve the Regular Meeting Minutes of May 10, 2022.

Approved.

2. 22-178 Emergency Declaration Extension
Recommendation: Adopt a resolution authorizing virtual city council, commission and committee meetings during a declared state of emergency pursuant to government code 54953 (AB 361).

Approved.

3. 22-177 AB 1276 - Single-Use Foodware Reduction Enforcement Requirements
Recommendation: Waive the Second Reading and Approve Final Adoption of an Ordinance Adding Title 5, Chapter 12, Sections 5-12.01 to 5-12.06 to the Hercules Municipal Code Regulating the Provision of Single-Use Foodware Accessories and Standard Condiments.

Approved.

4. 22-179
Accept the Investment Report for the Quarter Ending March 31, 2022 Recommendation: Accept the investment report for the quarter ending March 31, 2022.

Approved.

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May 24, 2022City Council Meeting Minutes
XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-186 Adoption of City Council Strategic Plan 2022-2023 and Multi-Year Priorities
Recommendation: Receive and file report on Strategic Planning Workshop and adopt by Resolution the Hercules City Council 2022-2023 and Multi-Year Priorities.

Presentation by City Manager Dante Hall and Christine Butterfield of Management Partners. Councilmembers provided comment. No public comment.

A motion was made by Council Member C. Kelley, seconded by Council Member T. Grimsley, to adopt Resolution 2022-040. The motion passed. 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. 22-175
Program Design Considerations for Yiftee Digital Gift Card Pilot Program
Recommendation: Approve the Yiftee Pilot Digital Card program components and implementation measures.

Presentation by Director of Finance Edwin Gato and Sandra Meyer of HdL.

Councilmembers provided comment. No public comment.

MOTION: A motion was made by Council Member Romero, seconded by Vice Mayor Walker-Griffin, to adopt Resolution 2022-041. 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. 22-187
Contract with Contra Costa County to Provide Animal Control Services
Recommendation: Staff recommends that the City Council approve a Resolution authorizing the City Manager to execute an updated agreement with the Contra Costa County Animal Services Department ("Animal Services").

Presentation by Steve Burdo of Contra Costa County Animal Services Department. Councilmembers and Staff provided comments. City Attorney Tang mentions a typo in the last recital of resolution to change the meeting type from "emergency" to "regular".

Public Speakers: Lisa Kirk; Annie Wright; Lisa Fulton; Wild Life; Written Communications Received By: Lisa Kwietniak; Bonnie Andrews; Lisa Kirk MOTION: A motion was made by Council Member Kelley, seconded by Council Member Grimsley, to adopt Resolution 2022-042. The motion carried by the following vote:

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May 24, 2022City Council Meeting Minutes

Aye: Council Member T. Grimsley, Vice Mayor A. Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley
4 -
Nay: Council Member D. Romero1 -

4. 22-182 Discussion Regarding Juneteenth Commemoration and Administrative Requirements for Display of a Ceremonial Pan-African or Juneteenth Flag
Recommendation: Receive report, discuss, and provide direction to staff.

Item moved to be heard first. Presentation by City Clerk Lauren Berges.

Councilmembers provided comment. The Pan-African Flag will be raised on June 17th, with a small public ceremony, and flown until June 24th.

Public Speakers: Marna Pantsil-Anning; Sarah Creeley; Susan Keeffe; Tanya Little; Written Comments Received by: Marna Pantsil-Anning XIV. PUBLIC COMMUNICATIONS
Public Speakers: Cordell Hindler
XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

AND FUTURE AGENDA ITEMS
City Manager Hall announces the Executive Leadership Team will be discussing the newly implemented strategic goals and priorities tomorrow, May 25th. Mr. Hall also announces the two upcoming Community Waterfront Master Plan Workshops scheduled for June 7th (virtual) and June 15th (in-person).

Councilmembers report out on local and regional meetings and events.

No future agenda items requested.

XVI. ADJOURNMENT
Mayor Bailey adjourned the meeting at 10:13 pm.
_________________________________
Dion Bailey, Mayor
Attest:
_______________________________
Lauren Berges, CMC
City Clerk

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STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of June 14, 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:

Staff recommends that the City Council waive the second reading and approve for final adoption the attached Ordinance No. 537 adopting Hercules Police Department Policy No. 709: Military Equipment; Acquisition, Funding, and Use.

FISCAL IMPACT OF RECOMMENDATION:

If approved there will be minimal administrative and staff costs associated with the Military Equipment report compliance requirements, which require that a report be prepared and submitted to the governing authority annually.

EXECUTIVE SUMMARY:

On May 10, 2022, Staff introduced a Draft Ordinance complying with all AB 481 mandates regarding Military Equipment Funding, Acquisition, and Use as defined by the C a l i f o r n i a Legislature. Council waived the first reading and approved introduction of the ordinance.

BACKGROUND:

As reported in previous Staff Reports (see attached), on September 30, 2021, the Governor signed California Assembly Bill 481 (AB 481) into law. AB 481 adds new Sections 7070 et seq. to the Government Code requiring law enforcement agencies to obtain the approval of their governing bodies, through the adoption by ordinance of a Military Equipment Use Policy, prior to taking certain actions relating to the funding, acquisition, 341
or use of military equipment. AB 481 further requires the Council to review the ordinance on an annual basis.

New California Government Code Section 7070 provides a list the of types of equipment that are to be considered “Military Equipment” for purposes of compliance with AB 481.

The Hercules Police Department had seven (7) items that qualified as “Military Equipment”. The Department does not currently possess any other equipment that meets the definition of Military Equipment in Section 7070.

DI S CUSS IO N:

As noted above, AB 481 requires law enforcement agencies to obtain the approval by ordinance of their governing bodies, of a Military Equipment Use Policy, prior to taking certain actions relating to the funding, acquisition, or use of military equipment.

Aside from the aforementioned “qualifying items”, the Hercules Police Department receives mutual aid from and collaborates with the Contra Costa County Sheriff Office and other agencies within the mutual aid Operational Area. Military equipment used by these Departments in providing mutual aid to the City shall comply with their respective military equipment use policies.

Like many other police departments in the State of California and throughout the United States, the Hercules Police Department utilizes the services of Lexipol LLC for the preparation of its policy manuals, training bulletins and consulting services. Such services are provided on a subscription basis. Lexipol has provided its member entities with a “Policy - Military Equipment, Acquisition, Funding and Use” that is in compliance with the provisions of AB 481 (the “Policy.”) The Hercules Police Department has reviewed the Policy and believes it should be accepted and approved. Staff is now recommending that the City Council review and adopt an ordinance approving the Policy. Use of an ordinance for policy adoption, as opposed to a resolution, is mandated by AB 481 as a means of creating a better public forum to discuss the acquisition and use of military equipment.

The general AB 481 requirements are discussed in detail in the previously referenced prior report.

Policy Approval

California Government Code Section 7071(d) stipulates that the City Council shall only approve the Policy if it determines all of the following:

1. The military Equipment is necessary because there is no reasonable alternative that can achieve the same objective of Officer and civilian safety.

2. The proposed Military Equipment Use Policy will safeguard the public’s welfare, safety, civil rights and civil liberties.
342

3. 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.

4. Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if the 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.

Once the Policy has been adopted, California Government Code Section 7070(e) states that the Hercules Police Department is responsible for delivering to the City Council an Annual Military Equipment Report, which the City Council can use to confirm compliance with the Military Equipment Use Policy.

RECOMMENDATION:

Staff recommends waiving the second reading and approving for final adoption the ordinance attached hereto, adopting Hercules Police Department Policy 709: Military Equipment Acquisition, Funding, and Use.

ATTACHEMENTS:

1. Ordinance No. 537

2. 10 May 2022 Staff Report

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

4. Military Equipment Description, purpose, use, cost policy insert

343
ORDINANCE NO. 537

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERCULES ADOPTING HERCULES POLICE DEPARTMENT POLICY 709; MILITARY

EQUIPMENT FUNDING, ACQUISITION, AND USE

WHEREAS, on September 30, 2021, the Governor signed into law Assembly Bill 481 (“AB 481”; Government Code sections 7070 et seq.) relating to the use of military equipment by law enforcement agencies; and

WHEREAS, AB 481 requires law enforcement agencies to obtain approval of the governing body, by way of an ordinance adopting a military equipment use policy, prior to taking certain actions relating to the funding, acquisition, or use of “military equipment” as defined in Government Code section 7070; and

WHEREAS, AB 481 further requires that such a policy include certain components, including but not limited to those listed in Government Code section 7070(d); and

WHEREAS, the Hercules Police Department has reviewed Lexipol LLC’s Policy 709:

Military Equipment (the “Policy”) and has found it to be in compliance with the requirements of AB 481; and

WHEREAS, the City Council has determined that the Policy complies with the requirements of AB 481 and that with respect to the Policy: (1) the identified equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety; (2) the Policy will serve to safeguard the public’s welfare, safety, civil rights, and civil liberties; (3) in future instances in which equipment is to be purchased, the equipment will be reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety; and (4) any required corrective action has been taken to remedy use of military equipment inconsistent with the Policy and future compliance is ensured; and

WHEREAS, approval of the Policy authorizes funding, acquisition, and use of military equipment only as allowed by the Policy and requires annual reporting and approval in accordance with the Policy; and,

WHEREAS, adoption of this Ordinance is not a project as defined by the California Environmental Quality Act (“CEQA”) because it is an organizational or administrative activity that will not result in direct or indirect physical changes to the environment pursuant to CEQA Guidelines 15378(b)(5); and,

WHEREAS, this Ordinance was first presented to the City Council at a regularly scheduled and properly noticed City Council meeting on May 10, 2022 and was approved for 344
introduction.

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

SECTION 1. RECITALS. The City Council hereby incorporates the above recitals into this Ordinance by this reference.

SECTION 2. AMENDMENT. Hercules Police Department Policy 709; Military Equipment Funding, Acquisition, and Use Approved.

The City Council hereby approves City of Hercules Police Department Policy 709:

Military Equipment, a copy of which is attached hereto and by this reference incorporated herein.

A copy of approved Policy 709 has been added to t h e C i t y ’ s w e b s i t e f o r co n t i n u o u s access by the Council, staff and the public.

SECTION 3. CEQA DETERMINATION
The City Council finds that adoption of this Ordinance is not a project as defined by the California Environmental Quality Act (“CEQA”) because it is an organizational or administrative activity that will not result in direct or indirect physical changes to the environment pursuant to CEQA Guidelines 15378(b)(5).

SECTION 4. SEVERABILITY. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decisions shall not affect the validity of the remaining portions of this Ordinance. The Council hereby declares that it would have adopted the Ordinance, and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be deleted.

SECTION 5. EFFECTIVE DATE AND PUBLICATION. The City Clerk shall certify to the adoption of this Ordinance and shall publish or post the Ordinance as required by law.

This Ordinance shall be effective thirty (30) days from date of final adoption.

SECTION 6. NO CODIFICATION
This ordinance shall not be codified in the Hercules Municipal Code

THE FOREGOING ORDINANCE was introduced at a regular meeting of the Hercules City Council on the 10 day of May, 2022, and was passed and adopted at a regular meeting of the Hercules City Council on the 14th day of June, 2022, by the following vote:

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AYES:

NOES:

ABSENT:

ABSTAIN:

_________________________________
Dion Bailey, Mayor

______________________________
Lauren Berges, City Clerk

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STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of May 10, 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:

Staff recommends that the City Council waive first reading and approve for introduction the attached Ordinance adopting Hercules Police Department Policy No. 709: Military Equipment; Acquisition, Funding, and Use.

FISCAL IMPACT OF RECOMMENDATION:

EXECUTIVE SUMMARY:

At the regular meeting of the City Council on April 26, 2022, the City Council approved a resolution (2022-028) directing Staff to commence the governing body approval process in accordance with Assembly Bill 481 requirements and directed 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, Acquisition, and Use as defined by the Legislature.

BACKGROUND:

On September 30, 2021, the Governor signed California Assembly Bill 481 (AB 481) into law. AB 481 adds new Sections 7070 et seq. to the Government Code requiring law enforcement agencies to obtain the approval of their governin g bodies, through the adoption by ordinance of a Military Equipment Use Policy, prior to taking certain actions relating to the funding, acquisition, or use of military equipment. The new provisions require the Council to approve the funding, acquisition, or use of military equipment within its jurisdiction only if it determines that the military equipment meets specified standards.

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AB 481 further requires the Council to review the ordinance on an annual basis and to either disapprove a renewal of the authorization for a type of military equipment or amend the military equipment use policy if it determines, based on an Annual Military Equipment Report prepared by the Police Department, that the military equipment does not comply with established standar ds for approval.

New California Government Code Section 7070 provides a list the of types of equipment that are to be considered “Military Equipment” for purposes of compliance with AB 481. The Hercules Police Department had seven (7) items that qualified as “Military Equipment” . Additionally, Hercules Officers while assigned to the County -Wide Mobile Field Task Force train with and use one additional item which qualifies as “Military Equipment”. The Department does not currently possess any other equipmen t that meets the definition of Military Equipment in Section 7070, nor has it obtained or does it utilize any equipment procured from the United States Department of Defense through the Law Enforcement Support Program known as the 1028 or 1033 program.

DISCUSSION:

A. General AB 481 Requirements

At a minimum AB 481 requires the Policy to include the following:

1. Each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions;

2. The purpose and authorized uses for which the law enforcement agency proposes to use each type of military equipment;

3. The fiscal impact of each type of military equipment, including initial acquisition and 348
maintenance costs;

4. The legal and procedural rules that govern each authorized use;

5. The training that must be completed before each type of military equipment can be used in order to ensure the full protection of the public’s welfare, safety, civil rights, and civil liberties;

6. The means to ensure compliance with the military equipment use policy; and

7. The procedures by which members of the public may register complaints or concerns or submit questions about the use of specific types of military equipment, and how such complaints and questions will be responded to and/or answered.

B. Policy Approval

California Government Code Section 7071(d) stipulates that the City Council shall only approve the Policy if it determines all of the following:

1. The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety.

2. The proposed Military Equipment Use Policy will safeguard the public's welfare, safety, civil rights, and civil liberties.

3. 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.

4. 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.

RECOMMENDATION
Staff recommends waiving the first reading and introducing the ordinance attached hereto, adopting Hercules Police Department Policy 709: Military Equipment Acquisition, Funding, and Use.

Second reading and formal adoption of the ordinance will be scheduled for a regular meeting of the City Council in accordance with the City’s Ordinance Adoption Policy.

ATTACHMENTS:

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

3. Military Equipment Description, Purpose, Use, Cost policy insert 350
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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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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 352
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• 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 353
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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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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 357
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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 360

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of June 14, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Lauren Berges, City Clerk

SUBJECT: November 8, 2022 General Municipal Election

RECOMMENDED ACTION: Staff recommends adoption of the following:

1. Adopt Resolution Calling for the Holding of a General Municipal Election to be held on Tuesday, November 8, 2022 for the Election of Two Members of the City Council for the Full Term of Four Years.

2. Adopt a Resolution Requesting the Contra Costa Board of Supervisors to Consolidate a General Municipal Election to be held on Tuesday, November 8, 2022 with the Statewide General Election to be Held on the Same Date.

3. Adopt a Resolution Adopting Regulations for Candidates for Elective Office Pertaining to Candidates Statements Submitted to the Voters at an Election to be held on Tuesday, November 8, 2022.

FISCAL IMPACT OF RECOMMENDATION:

Election costs have been estimated to be between $33,950 and $55,169 and this cost will be included in the proposed Fiscal Year 2022-23 budget.

BACKGROUND:

Section 2-1.04 of the Hercules Municipal Code provides for a General Municipal Election to be held in the City of Hercules on the date of the Statewide General Election, the first Tuesday after the first Monday in November of each even-numbered year. Members of the City Council are elected to four (4) year terms. T wo (2) seats on the Hercules City Council will expire in December 20 22. The Members of City Council that have term expirations at the end of this year are:

1. Dion Bailey, Mayor

2. Chris Kelley, Council Member

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DISCUSSION:

The California Elections Code requires that certain resolutions be adopted preparatory to holding that election. On Tuesday, November 8, 2022 two (2) members of the City Council will be elected to full terms of four (4) years. The resolutions presented for Council’s consideration this evening calls for the holding of the November 8, 2022 General Municipal Election, requests election consolidation services from Contra Costa County, and adopts regulations with regard to candidate statements and reimbursement to the City for the expense of printing the candidate statements.

In prior years Contra Costa County Elections staff has provided the cost for submitting a candidate statement to the voters in the sample ballot which is collected by the City Clerk at the time nomination documents, including the candidate statement is received. Due to the redistricting process in other cities and unincorporated areas of the County , County elections staff cannot provide the cost for Candidate’s Statements nor the actual election cost until after the cities’ resolutions calling for the election are provided to the Elections Office and State. In prior years the candidate statement amount was collected as a deposit, then a true up of the cost was done after the election and depending on the actual cost, the candidate would either be billed for the difference or receive a refund of the remaining funds in their deposit account.

It should also be noted that the Candidate’s Statement cost is estimated to increase 15 to 20% for the November 8th election, partially due to the substantial rise in paper costs. To put this into perspective, the Candidate’s Statement cost for the 2020 General Election was set at $405.80 for the City of Hercules for a candidate statement not exceeding 250 words. At this time, staff recommends setting a deposit amount of $465 for a Candidate’s Statement not exceeding 250 words.

It is possible the County will provide the exact Candidate’s Statement cost before the nomination period begins on July 18th; should this be the case, candidates will be informed of the cost when they pull nomination papers from the City Clerk.

Resolution #1, Section 11 sets forth a procedure in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) the City Council will determine the tie by lot. Pursuant to State law, the two options to resolve a tie vote are to draw lots, or to hold a special runoff election. In past elections City Council has opted to resolve tie votes by lot and therefore Resolution #1 was prepared with this option. If Council desires to resolve a tie vote by holding a special runoff election, adoption of provisions in Elections Code 15651(b) would need to occur prior to the conduct of the election resulting in the tie vote.

Resolution #2 makes a request to the Contra Costa County Board of Supervisors to consolidate the Hercules General Municipal Election with the County Statewide Presidential General Election to be held on the same date.

Resolution #3 adopts regulations for candidates for elective office pertaining to Candidate Statements submitted to the voters at an Election to be held on Tuesday, November 8, 2022.

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Attachment #4 is a copy of the Notice of Election that will be posted and publ ished in the West County Times by June 24th, 2022.

Once the election process has been initiated with the adoption of the three (3) resolutions tonight, the next steps are the public noticing of the election and the opening of the nomination filing period. The nomination filing period for the November 8, 2022 General Municipal Election is July 18, 2022 to August 12, 2022. In the event an incumbent does not file by the August 12, 2022 filing deadline, the nomination period will be extended to August 17, 2022 by 5:00 p.m.

During the nomination filing period, any registered voter residing in the City of Hercules who is not disqualified by the laws of the State of California from holding a civil office can pull and file nomination papers for candidacy. State law requires that the filing of nomination papers occur during the agency’s regular business hours. Anyone wishing to pull or file papers during the filing period should make an appointment with the City Clerk during regular business hours, Monday through Thursday 8:00 a.m. – 5:00 p.m., closed on Fridays, with the exception of Friday, August 12, 2022 the last day of the filing period the regular business hours will be 8:00 a.m. – 5:00 p.m.

ATTACHMENTS:

1. Resolution Calling for the Holding of a General Municipal Election to be held on Tuesday, November 8, 2022 for the Election of Two Members of the City Council for the Full Term of Four Years

2. Resolution Requesting the Contra Costa Board of Supervisors to Consolidate a General Municipal Election to be held on Tuesday, November 8, 2022 with the Statewide Presidential General Election to be Held on the Same Date

3. Resolution Adopting Regulations for Candidates for Elective Office Pertaining to Candidates Statements Submitted to the Voters at an Election to be held on Tuesday, November 8, 2022

4. Notice of Election

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Page 1 of 2 ends

CITY OF HERCULES RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES, CALIFORNIA, CALLING

FOR THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 20 22 FOR THE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY THE

PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES

WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election shall be held on November 8, 2022, for the election of Municipal Officers; and

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERCULES, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of Hercules, California, on Tuesday, November 8, 2022, a General Municipal Election for the purpose of electing Two (2) Members of the City Council for the full term of four (4) years.

SECTION 2. That the ballots to be used at the election shall be in form and content as required by law . .

SECTION 3. That the City Clerk is authorized, instructed and directed to coordinate with the County of Contra Costa Registrar of Voters/Clerk -Recorder to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

SECTION 4. That the polls for the election shall be open at seven o’clock a.m. of the day of the election and shall remain open continuously from that time until eight o’clock p.m. of the same day when the polls shall be closed, pursuant to Election Code § 10242, except as provided in § 14401 of the Elections Code of the State of California.

SECTION 5. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 6. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 7. That in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the County of Contra Costa Registrar of Voters/Clerk- Recorder, the City Council, in accordance with Election Code § 15651(a), shall set a date and time and place and summon the candidates who have received the tie votes to appear and will determine the tie by lot .

SECTION 8. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

SECTION 9. The City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 14th day of June 2022 by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

364

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_____________________________
Dion Bailey, Mayor

ATTEST:

Lauren Berges, CMC
City Clerk

365

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CITY OF HERCULES RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

HERCULES, CALIFORNIA, REQUESTING THE BOARD OF

SUPERVISORS OF THE COUNTY OF CONTRA COSTA TO

CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE
HELD ON NOVEMBER 8, 20 22, WITH THE STATEWIDE

GENERAL ELECTION TO BE HELD ON THE DATE PURSUANT
TO § 10403 OF THE ELECTIONS CODE.

WHEREAS, the City Council of the City of Hercules called a General Municipal Election to be held on November 8, 2022, for the purpose of the election of two (2) Members of the City Council, and;

WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the city the precincts, polling places and election officers of the two elections be the same, and that the county election department of the County of Contra Costa canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERCULES DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That pursuant to the requirements of § 10403 of the Elections Code, the Board of Supervisors of the County of Contra Costa is hereby requested to conse nt and agree to the consolidation of a General Municipal Election with the Statewide General election on Tuesday, November 8, 2022, for the purpose of the election of two (2) Members of the City Council.

SECTION 2. That the county election department is a uthorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the statewide election.

SECTION 3. That the Board of Supervisors is requested to issue instructions to the county election department to take any and all steps necessary for the holding of the consolidated election.

SECTION 4. That the City of Hercules recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.

SECTION 5. That the City Clerk is hereby directed to file a certified copy of thi s resolution with the Board of Supervisors and the County Election Department of Contra Costa County.

SECTION 6. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 14th day of June 2022 by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

366

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_____________________________
Dion Bailey, Mayor

ATTEST:

Lauren Berges, CMC
City Clerk

367

Page 1 of 2 ends

CITY OF HERCULES RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES, CALIFORNIA,

ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING

TO CANDIDATES STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022

WHEREAS, §13307 of the Elections Code of the State of California provides that the governing body of any local agency adopt regulations pertaining to materials prep ared by any candidate for a municipal election, including costs of the candidates statement;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERCULES, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. GENERAL PROVISIONS. That pursuant to §13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at an Election to be held in the City of Hercules on November 8, 2022 may prepare a candidate’s statement on an appropriate form provided by the City Clerk. The statement may include the name, age and occupation of the candidate and a brief description of no more than 2 50 words of the candidate’s education and qualifications expressed by the candidate himself or herself. The stat ement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed in typewritten form in the office of the City Clerk at the time the candidate’s nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period.

SECTION 2. FOREIGN LANGUAGE POLICY.

A. Pursuant to the Federal Voting Rights Act, candidate’s statements will be translated into all languages required by the County of Contra Costa. The County is required to translate candidate’s statements into the following languages: Spanish and Chinese.

B. The County will print and mail separate voter information guides and candidates statements in Spanish and Chinese to only those voters who are on the county voter file as having requested a voter information guide in a particular language. The County will make the voter information guides and candidates statements in the required languages available at all polling places, on the County’s website, and in the Election Official’s office.

SECTION 3. PAYMENT.

A. Translations:

1. The candidate shall be required to pay for the cost of translating the candidates statement into any required foreign language as specified in (A) of Section 2 above pursuant to Federal and\or State law.

B. Printing:

1. The candidate shall be required to pay for the cost of printing the candidate statement in a foreign language required in (A) of Section 2 above, in the main voter pamphlet.

The Contra Costa County Registrar of Voters/Clerk -Recorder shall provide the total cost of printing, handling, translating, and mailing the candidate’s statements filed pursuant to this section, including costs incurred as a result of complying with the Voting Rights Act of 1965 (as amended), and require each candidate filing a statement to pay in advance to the local agency his or her pro rata share as a condition of having his or her statement included in the voter’s pamphlet.

SECTION 4. MISCELLANEOUS.

A) All translations shall be provided by professionally-certified translators. 368

Page 2 of 2 ends

B) The City Clerk shall comply with all recommendations and standards set forth by the California Secretary of State regarding occupational designations and other matters relating to elections.

SECTION 5. ADDITIONAL MATERIALS. No candidate will be permitted to include additional materials in the voter information guide.

SECTION 6. That the City Clerk shall provide each candidate or the candidate’s representative a copy of this Resolution at the time nominating petitions are issued.

SECTION 7. That all previous resolutions establishing council policy on payment for candidate’s statements are repealed.

SECTION 8. That this resolution shall apply only to the election to be held on November 8, 2022 and shall then be repealed.

SECTION 9. That the City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 14th day of June 2022 by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

_____________________________
Dion Bailey, Mayor

ATTEST:

Lauren Berges, CMC
City Clerk

369

NOTICE OF ELECTION

NOTICE IS HEREBY GIVEN that a General Municipal Election will be held in the City of Hercules on Tuesday, November 8, 2022, for the following Elected Officials:

For (2) Members of the City Council (Full term of four (4) years)

The nomination period for these offices begins on July 18, 2022 and closes on August 12, 2022 at 5:00 p.m.

If nomination papers for an incumbent officer of the city are not filed by August 12, 2022 (the 88th day before the election) the voters shall have until the 83 rd day before the election, August 17, 2022, to nominate candidates other than the person(s) who are the incumbents on the 88th day before the election, for that incumbent’s elective office. This extension is not applicable where there is no incumbent eligible to be elected.

If no one or only one person is nominated for an elective office, appointment to the elective office may be made as prescribed by § 10229, Elections Code of the State of California.

The polls will be open between the hours of 7:00 a.m. and 8:00 p.m.

/s/ Lauren Berges, CMC City Clerk
Dated: June 24, 2022

370
1 CITY COUNCIL STAFF REPORT

DATE: June 14, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Tim Rood, Community Development Director Larissa Alchin, M-Group, Contract Planner

SUBJECT: Amendment to the Hercules Municipal Code, Title 9 —Building Regulations, modifying Chapter 5—Electrical Code

RECOMMENDED ACTION:

Staff recommends that the City Council waive the second reading and approve final adoption of Ordinance No. 539 amending the City’s existing Building Regulations to require that certain new and rebuilt buildings be required to be built as “all-electric,” that is, without natural gas infrastructure.

FISCAL IMPACT OF RECOMMENDATION:

There are no direct fiscal impacts associated with this item.

BACKGROUND & DISCUSSION:

State law establishes a process that allows local adoption of energy standards that are more stringent than the statewide standards permitted by Title 24 of the California Code of Regulations (CCR), which is commonly referred to as “the Building Code.” These local amendments to energy standards are called “Reach Codes” because they are reaching beyond the minimum requirements with the goal of decreasing greenhouse gas (GHG) emissions.

In mid-2021, the City Council directed Staff to bring forward potential Reach Code recommendations that would apply to new construction. At the September 28, 2021, meeting, following staff’s presentation on the health, safety, and environmental concerns associated with natural gas use in buildings (see Attachment 3), Council directed staff to return with additional information regarding the range of ordinance types, example ordinance, feasibility, and California power grid capacity. Staff returned for the January 11, 2022, City Council meeting with the requested information (s ee Attachment 4). Because the City of Hercules contracts with Contra Costa County’s Building Department for building plan check services and inspections, Council weighed the options of adopting a stand-alone ordinance or adopting by reference the County’s All-Electric Ordinance, and directed City staff to report back at a later date once the County adopted its own ordinance. 371
2 Following the Contra Costa County Board of Supervisors adoption of an All-Electric Ordinance on January 18, City staff returned to the Hercules Council on February 8, 2022, to present the County’s ordinance and request direction on drafting an ordinance for Hercules (see Attachment 5). The County ordinance requires all newly constructed buildings that are any of the following to be al l-electric buildings:
 Residential
 Detached accessory dwelling units
 Hotel
 Office
 Retail (including restaurants)

Rather than adopting the County’s ordinance by reference, the City Council directed staff to draft an all-electric ordinance to amend the 20 19 California Building Standards Code to require all of the following newly constructed buildings be all-electric, with no natural gas infrastructure:
 Residential
 Hotel
 Office
 Accessory dwelling units

At its regular meeting on April 12, 2022, the Planning Commission reviewed and voted to recommend for Council adoption a draft ordinance aligned with Council’s prior direction but with the following modifications:
a. Change “Accessory Dwelling Units” to “Detached Accessory Dwelling Units”; b. Clarify that rebuilding of existing structures would be subject to the ordinance; and c. Revise the exception for laboratories and medical buildings to apply only to laboratory- and research-specific functions and not for general heating and appliance purposes.

The all-electric building requirements of the ordinance would not apply to any of the following uses:
 Emergency facilities and emergency generators
 Restaurants
 Retail

The o rdinance (Attachment 1) based on Planning Commission’s resolution (Attachment 2) is provided for the City Council’s review and consideration.

This ordinance amendment was introduced at the May 24, 2022 regular City Council meeting.

372
3 ATTACHMENTS:

1. Ordinance No. 539 – All-Electric Building Decarbonization

2. Planning Commission Resolution No. 22-06

3. Staff Report to City Council – September 28, 2021

4. Staff Report to City Council – January 11, 2022

5. Staff Report to City Council – February 8, 2022
373

Ordinance No. 539

Page 1 of 4 ends

ORDINANCE NO. 539

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERCULES AMENDING C H A P T E R 5 O F TITLE 9 OF THE H E R C U L E S M U N I C I P A L C O D E

TO REQUIRE CERTAIN NEWLY CONSTRUCTED BUILDINGS TO BE ALL - ELECTRIC BUILDINGS.

WHEREAS, the 2022 Edition of the California Building Standards Code (CBSC) will take effect throughout California on January 1, 2023, and provides standards for both the use of natural gas and electricity for substantially the same purposes, such as heating buildings, cooking food, etc.; and

WHEREAS, Health and Safety Code Sections 17958.5 and 18941.5 authorizes local agencies to establish more restrictive building standards than those specified in the CBSC, including, but not limited to, green building standards that are reasonably necessary because of local climatic, geological, or topographical conditions based on and in accordance with the findings required by Health and Safety Code Section 17958.7 and the other requirem ents imposed by Section 17958.7; and

WHEREAS, consistent with Health and Safety Code sections 17922, 17958, 17958.5, 17958.7, and 18941.5 as well as Public Resources Code section 25402.1(h)(2) and Government Code sections 50020 through 50022.10, the City of Hercules desires to establish more restrictive standards than those contained in the 2022 California Energy Code to require all newly constructed residential buildings, hotels, and office buildings to be constructed as all-electric buildings without natural gas infrastructure.

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

SECTION 1. RECITALS. The above recitals are true and correct. The City Council hereby incorporates the above recitals into this Ordinance by this reference.

SECTION 2. ENVIRONMENTAL REVIEW. This amendment is Categorically Exempt from CEQA pursuant to Section 15061(b)(3) (the “ common sense exemption”) as it can be seen with certainty that there is no possibility the project will have a significant effect on the environment and thus is not subject to CEQA. Adoption of these building standards does not require or authorize any construction or physical impact to the environment, and the standards themselves are intended to reduce greenhouse gas emissions.

SECTION 3. AMENDMENTS. That the City Council of the City of Hercules does hereby amend Hercules Municipal Code, Title 9, Chapter 5, to read as follows:

Sec. 9-5.01 Administration.

These regulations shall be known as the “Electrical Code,” and may be so cited, and will 374

Ordinance No. 539

Page 2 of 4 ends

be referred to herein as “this Chapter.”

This Code is one of the technical codes of Building Regulations and is administered under Title 9, Chapter 5 of the Hercules Municipal Code. (Ord. 254 Div. 6 (part), 1987)

Sec. 9-5.02 Adoption by Reference.

The California Electrical Code, 2019 Edition (California Code of Regulations, Title 24 Part 3) based on the 2017 Edition of the National Electrical Code, as published by the National Fire Protection Association, as modified by the State of California and published in the “California Code of Regulations,” is adopted by reference and made a part of this Chapter as though fully set forth herein, subject to the additions and deletions set forth in this Chapter. (Ord. 526 § 6 (part), 2019)

Sec. 9-5.03 Copies on File.

One (1) copy of the 2019 California Electrical Code as adopted by Section 9-5.02 is on file in the office of the Chief Building Official for inspection by the public. (Ord. 526 § 6 (part), 2019)

Sec. 9-5.04 Amendments, Additions and Deletions.

(a) Addition to Chapter 1, Section 101 Scope to read as an additional paragraph as follows:

(1) The Administrative part of this chapter is in addition to the City of Hercules Building Regulations Administrative Code, Title 9, Chapter 1 of the Hercules Municipal Code. Where conflicts occur between this chapter and Title 9, Chapter 1 of the Hercules Municipal Code, the provisions of Title 9, Chapter 1 of the Hercules Municipal Code shall govern. (Ord. 254 Div. 6 (part), 1987)

(b) The 2019 California Energy Code (“CEnC”) is amended by the changes, additions, and deletions set forth in this chapter. Section numbers used below are those of the 2022 California Energy Code.

(1) Section 100.0(e)(2)(A) of CEnC Subchapter 1 (All Occupancies - General Provisions) is amended to read:

A. All newly constructed buildings.

(i) Sections 110.0 through 110.12 apply to all newly constructed buildings and rebuilt buildings within the scope of Section 100.0(a), where rebuilt involves demolition and reconstruction of a building or structure involving the repair or replacement of fifty (50) percent or more of the exterior walls or involving work that exceeds one-half (½) of the appraised value of the structure. In addition, newly constructed buildings shall meet the requirements of Subsection B, C, D, or E, as applicable.
375

Ordinance No. 539

Page 3 of 4 ends

(ii) A newly constructed building that is any of the following building types shall be an all-electric building:

a. Residential

b. Detached Accessory Dwelling Units

c. Hotel

d. Office

Exceptions to Section 100.0(e)(2)(A)(ii):
 Laboratory- and research-specific functions within laboratories and medical buildings (general heating and appliance purposes within laboratories and medical facilities are not exempt).
 Emergency facilities and emergency generators;
 Development projects that have obtained vested rights before the effective date of this subsection pursuant to a development agreement in accordance with Government Code section 65866, a vesting tentative map in accordance with Government Code section 66998.1, or other applicable law.

(1) Section 100.1(b) (Definitions) of CEnC Subchapter 1 (All Occupancies – General Provisions) is amended by adding the following definition:

ALL-ELECTRIC BUILDING means a building that has no natural gas or propane plumbing installed within the building, and that uses electricity as the sole source of energy for its space heating (including heating of all indoor and outdoor spaces of the building), water heating (including heating of indoor and outdoor pools and spas), cooking appliances, and clothes drying appliances. An all -electric building may utilize natural gas for emergency generators.

Sec. 9-5.05 Permits Required.

It shall be unlawful for any person, firm or corporation to install, alter, repair, replace or remodel any electrical system or equipment regulated by this Code. (Ord. 288 Div. 1 (part), 1990)

Sec. 9-5.06 Unsafe Electrical Systems.

All electrical systems or equipment regulated by this Code which are unsafe, or which constitute a fire hazard, or are otherwise dangerous to human life are, for the purpose of this Section, unsafe. A ny use of electrical systems or equipment regulated by this Code constituting a hazard to safety, health or public welfare by reason of inadequate maintenance, dilapidation, obsolescence, fire hazard, disaster, damage or abandonment is, for the purpose of this Section, an unsafe use.
376

Ordinance No. 539

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All such unsafe electrical systems or equipment are declared to be public nuisances and shall be abated by repair, rehabilitation, demolition or removal in accordance with the procedures set forth in the Uniform Code for the A batement of Dangerous Buildings or such alternate procedure as may be adopted by this jurisdiction. As an alternative, the Building Official or other employee or official of this jurisdiction as designated by the governing body may institute any other appr opriate action to prevent, restrain, correct or abate the violation. (Ord. 288 Div. 1 (part), 1990)

SECTION 20. SEVERABILITY. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decisions shall not affect the validity of the remaining portions of this Ordinance. The Council hereby declares that it would have adopted the Ordinance, and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be deleted.

SECTION 21. EFFECTIVE DATE AND PUBLICATION. The City Clerk shall certify to the adoption of this Ordinance and shall publish or post the Ordinance as required by law. This Ordinance shall be effective thirty (30) days from date of final adoption.

THE FOREGOING ORDINANCE was first read at a regular meeting of the Hercules City Council on the 24th day of May 2022 and was passed and adopted at a regular meeting of the Hercules City Council on the 14th day of June, 2022 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dion Bailey, Mayor

Lauren Berges, CMC
City Clerk
377

PC Resolution 22-04 – All-Electric Building Ordinance 1

RESOLUTION NO. 22-04

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF HERCULES RECOMMENDING THAT THE CITY COUNCIL AMEND CHAPTER 5 OF TITLE 9

OF THE HERCULES MUNICIPAL CODE TO REQUIRE CERTAIN NEWLY CONSTRUCTED BUILDINGS TO BE ALL-ELECTRIC BUILDINGS.

WHEREAS, Health and Safety Code Sections 17958.5 and 18941.5 authorizes local agencies to estab lish more restrictive building standards than those specified in the CBSC, including, but not limited to, green building standards that are reasonably necessary because of local climatic, geological, or topographical conditions based on and in accordance with the findings required by Health and Safety Code Section 17958.7 and the other requirements imposed by Section 17958.7; and

WHEREAS, after the staff presentation at its regular meeting on September 28, 2021 , the City Council directed staff to return to Council with additional information regarding the range of ordinance types, example ordinance, feasibility, and power grid capacity; and

WHEREAS, after the staff presentation at its regular meeting on January 11, 2022, the City Council directed staff to return to Council following the Contra Costa Board of Supervisors adoption of the County’s All-Electric reach code ordinance; and

WHEREAS, after the staff presentation at its regular meeting on February 8, 2022, the City Council directed staff to draft recommendations to amend the 2022 California Building Standards Code to require all newly constructed residential buildings, hotels, and office buildings to be constructed as all -electric buildings without natural gas infrastructure and to present a draft ordinance amendment incorporating such recommendations to the Planning Commission for its consideration and recommendations; and

WHEREAS, on April 18, 2022, the Planning Commission held a duly noticed public hearing to consider these amendments and did he ar and use its independent judgment to consider all said reports, recommendations, and testimony hereinabove set forth.

NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF HERCULES

DOES HEARBY RESOLVE AS FOLLOWS

The foregoing recitals are true and correct and made a part of this Resolution.

378

PC Resolution 22-04 – All-Electric Building Ordinance 2

NOW, THEREFORE, BE IT FURTHER RESOLVED THAT THE PLANNING

COMMISSION OF THE CITY OF HERCULES RECOMMENDS THAT THE CITY COUNCIL:

1. Find that the ordinance is Categorically Exempt from CEQA pursuant to Section 15061(b)(3) (the “common sense exemption”) as it can be seen with certainty that there is no possibility the project will have a significant effect on the environment and thus is not subject to CEQA. Adoption of these building standards does not require or authorize any construction or physical impact to the environment, and the standards themselves are intended to reduce greenhouse gas emissions

2. Adopt the ordinance attached hereto as Exhibit A a mending the Hercules Municipal Code and its Building Regulations by modifying Chapter 5 of Title 9, with the following revisions to the Section 100.0(e)(2)(A)(ii) of the ordinance:

a. Change subsection (b) from “Accessory Dwelling Units” to “Detached Accessory Dwelling Units”;
b. Clarify that rebuilding of existing homes would be subject to the ordinance; and c. Revise the exception for laboratories and medical building s to apply only to laboratory- and research-specific functions and not for general heating and appliance purposes.

The foregoing Resolution was duly adopted at a regular meeting of the Planning Commission of the City of Hercules held on the 18th day of April 2022, by the following vote of the Commission:

AYES: Morrison, Rubio, Sacramento, Schaufenbil
NOES:

ABSTAIN:

ABSENT:

Hector Rubio, Planning Commission Chair

ATTEST:

Robert Reber
Community Development Director

Exhibit A: Draft Ordinance amending Chapter 5 of Title 9 of the Hercules Municipal Code (Building Regulations)
379

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of September 28, 2021

TO: Members of the City Council

SUBMITTED BY: Robert Reber, Community Development Director Larissa Alchin, Contract Assistant Planner

SUBJECT: Discussion of building decarbonization through possible adoption of all- electric building code amendment

RECOMMENDED ACTION:

Discuss and p rovide direction if and w hat type of a ll-electric ordinance should or should not be pursued.

COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:

No Commission or Subcommittee actions or recommendations are yet applicable for this action. If an ordinance were to be considered, it would require Planning Commission review. If Council directs staff to initiate adoption of an all-electric ordinance, staff recommends that the process be completed early enough that it can be approved by the California Energy Commission (CEC) no later than September 2022, prior to the start of the next building code cycle that will take effect January 1, 2023.

FISCAL IMPACT OF RECOMMENDATION:

If Council desires an ordinance be drafted, additional but unknown staff and attorney time will be needed to draft the o rdinance, notice and hold required public hearings, and then implement a mandatory program, which would also affect costs of construction in Hercules.

BACKGROUND:

The primary component in natural gas is methane. Methane is a short -lived pollutant whose contribution to climate change (“global warming potential”) is, pound for pound, 25 times greater than carbon dioxide over a 100-year period. In addition to being a source of greenhouse gas emissions, natural gas has other attributes negatively affecting public health and safety. Indoor natural gas use, particularly for cooking, worsens indoor air quality, which disproportionately harms children, who are 42% more likely to develop asthma as a result of exposure. Ruptures in natural gas lines caused by earthquakes pose a secondary hazard of fires (half of the fires in San Francisco after the 1989 Loma Prieta earthquake were due to ruptured gas lines). Reducing a community’s reliance on the natural 380
g
as system improves its physical resilience, reduces fire risk , simplifies building systems and maintenance, and reduces greenhouse gas emissions.

In September 2018, Governor Jerry Brown signed two bills aimed at reducing greenhouse gas emissions from buildings, SB 1477 and AB 3232. SB 1477 calls on the California Public Utilities Commission (CPUC) in consultation with the California Energy Commission (CEC) to develop two new programs: the Building Initiative for Low Emissions Development (BUILD) program and the Technology and Equipment for Clean Heating (TECH) program to promote the use of high efficiency building appliances. AB 3232 required the CEC to develop a feasibility assessment (Building Decarbonization Assessment) for reducing greenhouse gas emission of buildings to 40 percent below 1990 levels by 2030. According to the
California Building Decarbonization Assessment – Final
Commission Report presented to the CEC on August 11, 2021,1 residential and commercial buildings jointly account for 25 percent of greenhouse gas (GHG) emissions and 70 percent of electricity use in the state. The assessment concludes that reducing building emissions is an essential component of meeting California’s GHG reduction targets.

State Building Code

Every three years, the State of California adopts new building standards that are codified in Title 24 of the California Code of Regulations, referred to as the California Building Standards Code (“Building Code”). This regular update is referred to as a “code cycle.” The current code cycle is for the year 2019 and was adopted by Hercules, via Ordinance No. 526 with amendments adopted by Contra Costa County and the Rodeo–Hercules Fire Protection District. The next code cycle will be for the year 2022 and will become effective statewide on January 1, 2023.

On August 11, 2022, the CEC approved the 2022 Energy Code which includes elements to incentivize all-electric construction for newly constructed and renovated buildings to increase efficiency and lower emissions. The 2022 Energy Code focuses on four key areas in newly constructed buildings:

• Encouraging electric heat pump technology for space and water heating, which consumes less energy and produces fewer emissions than gas-powered units. • Establishing electric-ready requirements for single-family homes to position owners to use cleaner electric heating, cooking, and electric vehicle (EV) charging options whenever they choose to adopt those technologies.
• Expanding solar photovoltaic (PV) system and battery storage standards to make clean energy available onsite and complement the state’s progress toward a 100% clean electricity grid. • Strengthening ventilation standards to improve indoor air quality.

The proposed 2022 Energy Code stops short of requiring new buildings to be exclusively electric (gas ban); nevertheless, the code does require homes to be electric-ready, with dedicated 240-volt outlets and space (with plumbing for water heaters) so electric appliances can eventually replace installed gas appliances (see Attachment 2 for 2022 Building Energy Efficiency Standards Summary passed by the CEC). The proposed code update for 2022 does not dictate the type of energy to be used in buildings (as between such options as natural gas, propane, or electricity). Rather, the code applies prescriptive or performance-based standards to each individual building design submitted for review.

1 https://efiling.energy.ca.gov/GetDocument.aspx?tn=239311 381
The
2022 update next moves to the California Building Standards Commission (CBSC) for approval and is scheduled for consideration in December 2021. If approved, the building standards will go into effect January 1, 2023, to provide time for all interested parties to prepare for the changes.

DISCUSSION:

The State of California allows cities to amend the California Building Standards Code to make them more restrictive by adopting “Reach Codes.” When a local government adopts a reach code, that agency must make an official finding that the new requirements save energy and are cost-effective.

To be cost effective, the money saved from the reduced energy costs needs to be enough to cover the initial cost within a reasonable period of time. Therefore, exploring cost-effectiveness is a key step for local governments in California interested in establishing a reach code. There is no official method for determining cost effectiveness, but local governments must make a cost -effectiveness determination, based on the method they deem appropriate, and provide such evidence to the California Energy Commission.

In practice, cost-effectiveness is often measured by a benefit-to-cost ratio, whereby the benefit is the total energy bill savings expected from the energy conservation measure(s) , and the cost is the incremental cost of installing the measure(s). A ratio of at least 1.0 is considered cost -effective, indicating the benefit exceeds the cost.

Another commonly used measure of cost-effectiveness is “simple payback,” which is calculated by dividing the up-front installation cost by the annual utility savings. The resulting value indicates the number of years it takes to pay back the initial cost. Generally, an energy -efficiency measure is considered cost-effective when it pays back in less than 15 years. The exact cutoff value is a matter of opinion and depends on the context, but usually falls between 10 and 20.

Each cost-effectiveness study sets out to evaluate a specific set of energy conservation measures (e.g., home energy efficiency measures) for one or more specific building types (e.g., new single-family homes). The studies start with a digital building model that reasonably represents a typical building of that type in California. Next, installation costs are typically estimated for each measure by surveying building contractors. Then software is used to simulate the energy needs of the building with and without the measures. From these simulations, savings estimates are derived. B esides measuring benefit-to-cost ratio, cost-effectiveness studies also present additional results related to how much energy, money, and emissions are saved. As weather patterns and utility rates differ across the state, the cost-effectiveness energy-efficiency measures may differ from one location to another.

Cost-effectiveness studies model cost-effectiveness using climate zones to approximate the local weather pattens.

Cost-effectiveness studies can be funded directly by a city, but most studies are developed with the California Energy Codes & Standards Reach Codes Subprogram which is funded by ratepayer funds.

Using an automated online tool
2 provided through this statewide utility program, City staff have generated a preliminary sample estimate of co st effectiveness in Hercules for possible energy efficiency measures (see Attachment 3).

Some cities and counties in California have already adopted reach codes to go above and beyond the statewide building code to require building electrification using an array of building code approaches. 2 Cost Effectiveness Explorer: https://explorer.localenergycodes.com/ 382
A
ccording to the Sierra Club, as of September 2021, 49 cities and counties (about 10% of jurisdictions statewide) have adopted reach codes to reduce their reliance on gas. In addition, the California Green Building Standards (“CAL Green” Part 11 of Title 24) includes voluntary reach standards and offers model building code language for local governments that wish to adopt reach codes that exceed the minimum statewide requirements. Table 1 below offers a sample of recently adopted reach codes and the range of approaches.

Table 1 – Adopted Electrification Ordinances
City Residential Commercial Remodels Exemptions Date
Adopted
Fairfax Yes Yes No Commercial kitchens 8/4/2021
Emeryville Yes No Remodels of
50% or more
Nonresidential
buildings but must be
pre-wired for future
electric appliances
7/20/2021
Petaluma Yes Yes Substantial
remodels or
addition of 50%
or more
Essential Services
Buildings and backup
power facilities for
Essential Services
Buildings.
5/3/2021
Daly City Yes Yes No 100% affordable
housing, ADUs,
commercial kitchens,
and laboratories
4/27/2021
Piedmont Yes Yes Based on project
evaluation and
Home Energy
Score
A Home Energy Score
Report demonstrating
a Home Energy Score
of 7
2/1/2021
Millbrae Yes Yes No Laboratories, and most
residential buildings
may have non-electric
cooking and fireplaces
10/27/2020
East Palo Alto Yes Yes No Affordable housing,
and commercial
kitchens
10/6/2020

In addition to the adopted reach codes referenced above, Contra Costa County’s Sustainability Commission voted on August 23, 2021, to present a letter and report to the Board of Supervisors in support of adopting building electrification reach codes for new construction.

Removing natural gas as an energy option would reduce the carbon footprint of buildings in Hercules by removing or reducing a source of greenhouse gas emissions from buildings. If Hercules adopts an all-electric ordinance, the building code amendment could remove natural gas as a possible energy source for new construction and remodels as directed by the City Council. Should the City Council direct staff to proceed with the development of an all- electric ordinance requiring new buildings and/or substantial remodels to be all-electric, an initial discussion of parameters would be helpful to enable staff to develop a proposed ordinance.

383
G
eneral Steps to Develop All-Electric Ordinance
Figure 1 below provides a generalized timeline for implementing the following steps necessary to adopt and implement a reach code ordinance (actual time to implement may vary depending on the scope and nature of the ordinance and the resources available):

1. Develop idea for a reach code ordinance:
o Ideas for reach codes can come from several places, including direction from City Council, General Plan policies, and neighboring jurisdictions.

2. Work with stakeholders:
o Both internal and external stakeholders such as elected officials, building officials and staff, local developers and contractors, environment advocacy groups , and others involved in implementing and enforcing the reach code.

3. Obtain a cost-effectiveness study

4. Develop and draft an ordinance
o All-electric reach codes typically include the purpose of the reach code, what types of buildings and actions trigger the reach code, whether there are any exceptions to or exemptions from reach code requirements, relevant definitions and interpretations and any additional administrative requirements. (See Attachment 2 for a model ordinance)

5. Public process and revisions
o The proposed draft ordinance would initially be considered by the Planning Commission followed by review and consideration by the City Council.

6. Formal adoption process
o Since a reach code is a local ordinance, it is adopted by the City Council.

7. Application for approval by California Energy Commission o Once the local reach code is adopted, but before it can be enforced, the ordinance must be submitted to the CEC. The CEC will verify that the reach code is at least as stringent as the California Energy Code and then post the reach code and accept comments on it for 60 days.

Figure 1 - BAYREN Generalized Timeline

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TTACHMENTS:

1. 2021 Building Energy Efficiency Standards Summary

2. All-Electric Model Code Ordinance
(version of the Menlo Park all-electric code, edited by Peninsula Clean Energy and Silicon Valley Clean Energy for use as a model)

3. Sample estimate of cost effectiveness results for Hercules 385
1 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of January 11, 2021

TO: Members of the City Council

VIA: Dante G. Hall, City Manager

SUBMITTED BY: Robert Reber, Community Development Director Larissa Alchin, Contract Assistant Planner

SUBJECT: Continued discussion from City Council meeting held September 28, 2021, on decarbonizing buildings through possible adoption of an all-electric building code amendment

RECOMMENDED ACTION:

Discuss and provide direction if and what type of all-electric ordinance should or should not be pursued.

COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:

FISCAL IMPACT OF RECOMMENDATION:

BACKGROUND:

At the regular City Council meeting held on September 28, 2021, following a presentation by staff, City Council members present agreed to continue the discussion to a date uncertain to enable the full City Council an opportunity to provide feedback to staff. The September 28 staff report to City Council provided an in -depth look at all -electric ordinances (see Attachment 1) . During the September 28 meeting, Council members asked staff to provide additional information regarding the range of ordinance types, example ordinance, feasibility, and power grid capacity. 386
2 DISCUSSION:

Types of Reach Codes

Local jurisdictions have adopted two types of reach codes:
 Prescriptive codes, which require one or more specific energy efficiency measures; and  Performance codes, which require buildings perform more efficiently based on accepted computer modelling and allow trade-offs between energy efficiency measures.

Additionally, some related codes do not specifically require increased energy efficiency, but they may cause less energy to be used or they may increase the likelihood of electrification and therefore reduced greenhouse gas emissions. Examples of this type of code are requiring EV charging stations or requiring a home energy audit.

Table 1 - Prescriptive & Performance Reach Codes
Reach Code Type Examples
Prescriptive Banning new natural gas infrastructure;
Requiring all-electric power source for new construction in most common occupancy types;
Requiring all-electric power source for new construction and substantial remodels.

See Attachment 2: All-Electric Model Reach Code
Performance Fuel-Neutral Reach Code requir ing stricter energy efficiency, renewable energy, and energy storage requirements for newly constructed buildings regardless of energy power source (electricity and natural gas OR electricity only). All new mixed-fuel buildings must comply with stricter performance standards or prescriptive requirements such as being all-electric.

See Attachment 3: Electric-Preferred Model Reach Code

Local jurisdictions have adopted a variety of reach codes for the current (2019) three-year code cycle which took effect January 1, 2020. These adopted reach codes include performance-based “Fuel- Neutral” ordinances (such as those adopted by the cities of San Rafael and Albany), which require new buildings comply with greater energy performance levels regardless of building power source.

The “Electric Preferred” ordinance adopted by Marin County requires only mixed-fuel buildings comply with greater energy performance levels to offset the effects of continued natural gas use. Some prescriptive “All-Electric” reach codes, such as that adopted by the City of Campbell, ban natural gas for specific appliance uses such as water and space heating while still allowing gas for fireplaces and cooking. The cities of Petaluma and Berkeley have adopted “Gas Ban” or “All-Electric” ordinances whereby no new gas lines or hookups are allowed in certain new construction.

As of September 2021, 49 local justifications in California had adopted reach codes to reduce their reliance on natural gas and improve energy efficiency (see Attachment 4). On February 18, 2020, Richmond was the first city in Contra Costa County to adopt a reach code banning natural gas for 387
3 space/water heating and cloth dryers in new single-family and low-rise multifamily units. Richmond is currently working on an update to its reach codes to make it more stringent in anticipation of the upcoming Title 24 update. On December 14, 2021, the Contra Costa County Board of Supervisors voted to waive the first reading and set a date of January 18, 2022, for a public hearing to consider adoption of an ordinance amending the County’s building code to require all newly constructed residential buildings, hotels, offices, and retail buildings to be constructed as all-electric buildings without natural gas infrastructure (see Attachment 5).

Figure 1- Adopted Reach Codes

Feasibility of All-Electric Ordinance
The feasibility of switching to all-electric energy sources compared to the current hybrid model of gas and electric power depend on the installation of solar photovoltaic (PV) systems, battery storage, and improving efficiencies. Starting with the 2019 Title 24 update, all new single-family and low-rise multi-family buildings are required to install PV systems that cover the projected annual electrical usage. With the 2022 Title 24 update, current solar requirements will be coupled with PV battery storage to increase the availability of energy when needed at night and on cloudy/smoky days .

Additionally, s tarting in 202 3, new high-rise multifamily units, hotels -motels, schools, and commercial buildings will also be required to install PV and battery systems. The solar systems must also be sized to provide for the full annual energy usage of the building, based on the floor area of the building and climate zone where the building is located. Nevertheless, there are exceptions to the PV mandate, like a property being too shaded or having too small a roof to install solar panels.

Local weather patterns impact how much energy a building consumes and accordingly the amount of energy certain measures may save. Provisions in the California Energy Code account for climate variation by dividing the state into sixteen climate zones. Hercules contains two climate zones: 91.8% 388
4 of the existing building stock is located in Climate Zone 3, and 8.2% is located in Climate Zone 12.1 Cost effectiveness studies model energy performance using weather patterns from each climate zone to better approximate energy savings and therefore cost -effectiveness in each climate zone . The California Energy Codes & Standards Study ( Attachment 6) contains the full methodology, assumptions and building prototypes used in the low-rise residential cost-effectiveness studies. Cost effectiveness studies analyze two different metrics (utility bill impacts and time-dependent valuation) to assess cost-effectiveness in newly constructed residential buildings. Both methodologies require estimating and quantifying the incremental costs and energy savings associated with energy efficiency measures. The main difference between the methodologies is the way they value energy and thus the cost savings of reduced or avoided energy use.

 Utility Bill Impacts (On-Bill): Customer-based Lifecycle Cost (LCC) approach that values energy based upon estimated site energy usage and customer on-bill savings using electricity and natural gas utility rate schedules over a 30-year duration, accounting for discount rate and energy cost inflation.

 Time-Dependent Valuation (TDV): This methodology is intended to capture the “societal value or cost” of energy use including long-term projected costs such as the cost of providing energy during peak periods of demand and other societal costs such as projected costs for carbon emissions, as well as grid transmission and distribution impacts. This metric values energy use differently depending on the fuel source (gas, electricity, and propane), time of day, and season. Electricity used (or saved) during peak periods has a much higher value than electricity used (or saved) during off -peak periods. The Energy Commission uses this methodology in evaluating cost-effectiveness for efficiency measures in Title 24, Part 6.

The cost-effectiveness study measures the benefit-to-cost ratio of multiple energy saving measures over a 30-year time frame, taking into account future savings, costs, and financing of incremental first costs. Energy efficiencies studied include but are not limited to cool roofs, slab insulation, wall & attic insulation, and HVAC duct measures. Results are presented as On-Bill benefit-to-cost (B/C) ratio or Time Dependent Valuation (TDV) B/C ratio. A value equal to one is equivalent to the incremental cost and a value greater than one represents a positive return on investment. The tables below show the results from the Cost-Effectiveness report for new low-rise single-family homes and multi-family units in Hercules. The City of Hercules Climate Zone 3 cost-effectiveness study also provide s calculations for new and existing office, retail, and hotel buildings (see Attachment 7).

1 Climate Zone 3 is typified by hot dry summers and warm winters (distinct wet and dry seasons; low rainfall and low humidity; no extreme cold but can be cool in winter; hot to very hot summers common; significant diurnal temperature range). Climate Zone 12 experiences cooler winters and hotter summers than Climate Zone 3, with some lower areas receiving frost on winter nights. 389
5 Table 2 – Benefit-to-Cost Ratios of Energy Options for New Single-Family Homes in Hercules

Table 3 – Benefit-to-Cost Ratios of Energy Options for New Low-Rise Multifamily Units in Hercules
Package B/C TDV B/C
High-Efficiency Appliances 1.73 1.58
EE + PV 2.43 1.73
EE + PV + Battery 1.32 1.64
Electrification 0.58 1.46
Electrification + EE + PV 4.18 ∞
Electrification + PV (neutral cost) ∞ ∞

The following Energy Efficiencies (EE) were included as part of the climate zone 3 new single-family home packages: verified low-leakage ducts in condition spaces, R-10 perimeter slab insulation, basic compact hot water distribution design credit, 0.35 cfm (cubic feet p er minute) HVAC system, minimum code compliant PV, and 5-kWh battery storage. No Energy Efficiency packages alone were found to be cost-effective and therefore not included for multifamily units. The only package which did not show a positive On-Bill ratio was the Electrification package which compares a 2019 code compliant all-electric home with a 2019 code compliant mixed -fuel home, and does not include improved efficiencies, HE appliances, increased PV scaling, or battery storage.

The cost-effectiveness study for climate zones 3 and 12 show reach codes requiring all-electric fuel in new construction would result in a positive return on investment in nearly all new residential and nonresidential construction in Hercules. Furthermore, requiring new construction to be electric-ready as the new 2022 Title 24 update proposes would likely make mixed-fuel buildings more costly to build as they require the added cost of gas lines.

Power Grid Capacity
According to a 2019 study by Energy and Environmental Economics, Inc.,4 the California grid is a summer peaking system, with peak electricity demand driven by residential and commercial air conditioning. This means that the summer peak load is used to plan systemwide capacity additions and investments. Residential and commercial building electrification will lead to an increase in winter

2 Ratios listed “∞” indicate cases where there are both first cost savings and annual utility bill savings; upgrade and benefits are realized immediately.
3 The cost savings for the all-electric code compliant home ("Electrification" package) is invested in a larger PV system, sized to result in a lifetime incremental cost of zero based on the On-Bill approach, relative to a mixed-fuel home. 4 Residential Building Electrification in California:
https://www.ethree.com/wp-content/uploads/2019/04/E3_Residential_Building_Electrification_in_California_April_2019.pdf Package B/C TDV B/C
Energy Efficiency (EE) 2.60 2.36
High-Efficiency Appliances 1.76 1.62
EE + PV 2.22 1.68
EE + PV + Battery 1.50 1.58
Electrification 0.55 1.53
Electrification + EE + PV 2.88 ∞2
Electrification + PV (neutral cost)3 ∞ ∞
390
6 electricity demand across all climate zones. However, as the study suggests, even in a relatively high residential building electrification future, buildings’ contribution to statewide winter electricity demand is likely to remain lower than the residential summer peak demand levels. Currently, most natural gas consumption is attributed to water and space heating in the home, which generally increase in the winter months during off-peak electricity demand.

Without additional energy efficiency measures, widespread use of electric space and water heating could increase California’s overall electricity use by approximately 19 percent . However, when coupled with energy efficiencies, PV systems, and batteries (as required by the energy code), those grid impacts would be reduced. In California, space heating accounts for 40 percent of natural gas use in residential and commercial buildings combined. Electric heat pumps are an energy-efficient heating and cooling system that can heat buildings by moving heat from outdoors to indoors (during winter) and cool buildings by moving heat from indoors to outdoors (during summer). Similarly, induction cooktops, heat pump electric clothes dryers, and electric water heat pumps and solar hot water heaters are high efficiency and reduce the impact of increased electric grid use.

Furthermore, a 2018 Synapse Energy Economics 5 study that modeled the impacts of building electrification scenarios on the grid in the winter and summer, confirmed that California’s electricity infrastructure is well equipped for electrification and that the new winter demand from space and water heating needs would remain below the summer peak demand. Northern California PG&E customers (including Hercules) consume the majority of natural gas in the state. Under a n “unmanaged” scenario in which 50 percent of the natural gas used in new and existing building is converted to electric for space and water heating, PG&E’s winter peak loads would begin to surpass summer peak loads as shown in Figure 4. Converting 50 percent of buildings to electric space and water heating will be a slow process with natural gas currently accounting for 86 percent of space heating and 90 percent of water heating in residential buildings. Similarly, natural gas is used to heat water in 95 perc ent of commercial buildings and for 80 percent of space heating in Northern California. Nonetheless, according to the Synapse study, if PG&E becomes a winter-peaking utility in the future , it is unlikely to require additional generation supply but could req uire additional transmission and distribution upgrades to serve load in its territory.

5 Decarbonization of Heating Energy Use in California Buildings:
https://www.synapse-energy.com/sites/default/files/Decarbonization-Heating-CA-Buildings-17-092-1.pdf 391
7 Figure 2 – PG&E electrification impacts in a 50% building electrification scenario

During the summer months, electrification will result in relatively minor additional load from water heating, but very little additional load from space heating. The graphs below depict the expected hourly load shapes from water and space heating on a peak summer day and a peak winter day.

Figure 3 - Residential peak summer and winter space and water heating

The graphs indicate that water heating load is highest during the morning and late evening hours.

Electric water heating in the summer would likely draw energy form the grid. However, a portion of 392
8 the load could be shifted to off peak hours through time-of-use rates and through water heaters’ ability to heat water during off-peak hours and store it for use during peak hours.

With increased Title 24 energy efficiency standards for 2022, including heat pump technology use for space and water heating, PV systems and batteries sized to provide the total electricity usage of a home, all electric newly constructed buildings would likely have minimal impact on the summer and winter grid demand.

Direction to Staff
As described above, reach codes can be either prescriptive codes, which require one or more specific energy efficiency measures, or performance codes, which require buildings perform more efficiently through a variety of optional measures regardless of fuel source. Performance reach codes require energy modeling to craft policies which exceed minimum building energy performance by a certain percentage and are generally more complicated to develop and enforce . The prescriptive and performance approaches can also be combined as a hybrid reach code.

Staff is requesting the Council provide direction on the following:

1. Does the Council wish to adopt a building decarbonization ordinance (Electrification Ordinance)?

2. If so, does the Council wish to adopt by reference the County’s pending ordinance, or adopt an ordinance of its own?

3. If the latter, does Council prefer a prescriptive or a performance-based ordinance?

4. What projects would be subject to the ordinance?
o New single-family residential
o New multi-family residential
o New accessory dwelling units
o New commercial buildings
o Substantial remodel of existing buildings

5. Will any exceptions be allowed?
o Affordable housing projects
o Cooking appliances (commercial and/or residential)
o Outdoor fireplaces/pits and grills
o Medical
o Laboratories
o Emergency facilities

6. When will the ordinance take effect?
o Immediately upon approval, which effects the current 2019 building code o With the 2022 update which takes effect January 1, 2023

393
9 ATTACHMENTS:

1. Staff Report to the City Council – September 28, 2021

2. All-Electric Model Reach Code

3. Electric-Preferred Model Reach Code

4. 2019 Code-cycle adopted reach codes

5. Contra Costa County Ordinance No. 2022-02 All-Electric Buildings

6. California Energy Codes & Standards Study

7. Summary Cost-Effectiveness results for Hercules Climate Zone 3

394
1 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of February 8, 2022

TO: Members of the City Council

VIA: Dante G. Hall, City Manager

SUBMITTED BY: Robert Reber, Community Development Director Larissa Alchin, Contract Assistant Planner

SUBJECT: Continued discussion from City Council meeting held January 11, 2022, on decarbonizing buildings through possible adoption of an all -electric building code amendment

RECOMMENDED ACTION:

Discuss and provide direction if and what type of all -electric ordinance should or should not be pursued.

COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:

No Commission or Subcommittee actions or recommendations are yet applicable for this action. If an ordinance were to be considered, it would require Planning Commission review. If Council directs staff to initiate adoption of an all -electric ordinance, staff recommends that the process be completed early enough that it can be approved by the California Energy C ommission (CEC) no later than September 2022, prior to the start of the next building code cycle that will take effect January 1, 2023.

FISCAL IMPACT OF RECOMMENDATION:

If Council desires an ordinance be drafted, additional but unknown staff and attorney time will be needed to draft the ordinance, notice and hold required public hearings, and then implement a mandatory program, which would also affect costs of construction in Hercules.

BACKGROUND:

At the regular City Council meeting held on September 28, 2021, following a presentation by staff, City Council members present agreed to continue the discussion to a date uncertain to enable the full City Council an opportunity to provide feedback to staff. The September 28 staff report to City 395
2 Council provided an in-depth look at all-electric ordinances (see Attachment 1). At the regular City Council meeting held January 11, 2022, following a presentation by s taff, Council members requested staff return w ith an update following Contra Costa Board of Supervisors vote on the County’s All-Electric reach code ordinance (see Staff Report Attachment 2)

Additionally, Council requested clarification on the cost associated with construction of an all - electric building to Hercules residents. The new Energy Code adopted by the State in August 2021 and effective on January 1, 2023, will require the following in newly constructed homes and businesses in Hercules and t hrough the State regardless of the City adopting an All -Electric Ordinance.

 Extend PV systems and introduces battery storage standards to the following building types:
o High-rise multifamily (apartments and condos)
o Hotel-motel
o Tenant space
o Office, medical office, and clinics
o Retail and grocery stores
o Restaurants
o Schools
o Civic (theaters, auditoriums, and convention centers)

 Require single-family homes to be electric-ready, including:
o Electrical circuits for space heating, water heating, cooking/ovens, and clothes dryers.
o Electrical panel, branch circuits, and transfer switch for battery storage. o Dedicated circuits and panels to easily convert from natural gas to electric in the future

Require most new homes and buildings statewide to be equipped with at least one heat pump for either space heating or water heating or face higher energy efficiency requirements. o Additionally, even if they don’t install an electric heat pump, they must provide the wiring and space to make it easy to install one in the future.

DISCUSSION:

On January 18, 2022, Conta Costa Board of Supervisors adopted Ordinance No. 2022-02 (Attachment 3) which amends the 2019 California Energy Code to require all newly constructed residential buildings, detached accessory dwelling units, hotels, offices, and retail buildings to be constructed as all-electric buildings without natural gas infrastructure. As previously stated, the ordinance applies only to new construction, however, it also covers any reconstruction of structures that are lost due to fire or natural disaster.

Direction to Staff

Staff is requesting the Council provide direction on the following:
396
3 1. Does the Council wish to adopt by reference the County’s adopted ordinance, or adopt an ordinance of its own?

2. If adopting the County’s code by reference would Council like to add exceptions? o Affordable housing projects
o Accessory Dwelling Units when the existing primary dwelling also has natural gas infrastructure.
o Medical
o Laboratories
o Emergency facilities

3. If the Council prefers to adopt its own ordinance would a prescriptive or a performance - based ordinance be preferred?

4. What projects would be subject to the ordinance?
o New single-family residential
o New multi-family residential
o New accessory dwelling units
o New commercial building
o Substantial remodel of existing buildings

5. When will the ordinance take effect?
o Immediately upon approval, which affects the
current 2019 building code
o With the 2022 update which takes effect January 1,
2023

ATTACHMENTS:

1. Staff Report to City Council – September 28, 2021

2. Staff Report to City Council – January 11, 2022

3. Contra Costa County Ordinance No. 2022-02 (adopted January 18, 2022)

397

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of June 14, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

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

SUBJECT: List of Projects for Fiscal Year 2022-23 Funded by SB 1: the Road Repair and Accountability Act of 2017

RECOMMENDED ACTION:

Adopt by resolution a list of projects for Fiscal Year 2022-23 funded by SB 1: the Road Repair and Accountability Act of 2017.

FISCAL IMPACT OF RECOMMENDATION:

It is projected the City will receive $590K in SB 1 funding in FY 2022-23. The next scheduled project that could receive this funding is the Sycamore Avenue Roadway Rehabilitation Project, which is scheduled for construction in Summer 2022. The Project will resurface Sycamore Avenue from Civic to Palm and is estimated to cost $1.5M.

The Sycamore Avenue Project is recommended to be the sole project on Hercules’ SB1 list since in addition to being the next available project it will also expend all the available SB1 funding . The California Transportation Commission (CTC) requires an approved list be submitted to them for each fiscal year. The list can be modified in the future if needed.

DISCUSSION:

Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017, was passed by the Legislature and signed into law by the Governor in April 2017 in order to address transportation funding shortfalls statewide.

SB 1 includes accountability and transparency provisions to ensure interested residents are aware of the projects proposed for funding in Hercules. Specifically, the City is required under the Act to approve a list of all projects proposed to r eceive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1. In addition to the project name, the project list must include a description and the location of each proposed street , a proposed schedule for the project’s completion, and the estimated useful life of the improvement.

398

It is therefore proposed the Sycamore Avenue Roadway Rehabilitation Project be listed as the sole project on Hercules’ SB 1 project list for FY 2020-21 and include the following project information:

Project Title: Sycamore Avenue Roadway Rehabilitation Project Project Description: Base failure repair, grind, overlay, stripe, sidewalk ramp replacements.

Project Locations: Sycamore Avenue from Civic Drive to Palm Avenue.

Project Duration: Summer 2022
Useful Life: 20 years

ATTACHMENTS:

1. Resolution

2. Street Maintenance Location Map

Financial Impact
Description: $590,000 in SB1 funding for Fiscal Year 2022-23.

Funding Source:

Gas Tax Fund $490,000
Fund No. 262-0000-313-09-00

Budget Recap:

Total Estimated cost: $590,000 New Revenue: $
Amount Budgeted: $590,000 Lost Revenue: $
New funding required: $ New Personnel: $
Council Policy Change: Yes No

399
RESOLUTION NO. 22 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2021-22 FUNDED BY
SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017

WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and

WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and

WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and

WHEREAS, the City will receive an estimated $590,000 in RMRA funding in Fiscal Year 2022-23 from SB 1; and

WHEREAS, this is the fifth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and

WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and

WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and

WHEREAS, the funding from SB 1 will help the City rehabilitate Sycamore Avenue in the City next year and complete similar projects into the future; and

WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an “At Risk” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “Good” condition; and

400
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Hercules, State of California, as follows:

1. The foregoing recitals are true and correct.

2. The following list of proposed projects will be funded in-part or solely with fiscal year 2022-23 Road Maintenance and Rehabilitation Account revenues:

Project Title: Sycamore Avenue Roadway Rehabilitation Project Project Description: Base failure repair, grind, asphalt overlay, striping, ramp replacements.

Project Locations: Sycamore Avenue from Civic Drive to Palm Avenue.

Project Duration: Summer/Fall 2022
Useful Life: 20 years

PASSED AND ADOPTED by the City Council of the City of Hercules, State of California this 14th day of June 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Dion Bailey, Mayor
ATTEST:

STREET REHABILITATION PROJECT- SYCAMORE AVENUE
402

Staff report to City Council — June 14, 2022 Page
1 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of June 14, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Tim Rood, Community Development Director Edward Samson, Housing Consultant (MIG)

SUBJECT: Update of the City’s Housing Element for 2023-2031

RECOMMENDED ACTION:

Receive a presentation from City staff and housing consultants from MIG, presenting an update on the City’s General Plan Housing Element to meet the State’s 6 th Cycle Regional Housing Needs Allocation (RHNA) requirements.

DISCUSSION:

Every eight years, State law requires that all County and City jurisdictions update the Housing Elements of their respective General Plans and receive certification from the California Department of Housing and Community Development (HCD). Hercules adopted its last Housing Element in April 2015 for the 5th cycle (plan period from 2015–2023). For the Association of Bay Area Governments (ABAG) region, the 6th cycle (2023–2031) Housing Element must be adopted and submitted to HCD by January 31, 2023. By complying with State law and having a certified Housing Element, the City will meet a threshold requirement for many transportation- and housing-related grants for which the City will be applying, including those needed to construct the Regional Intermodal Transportation Center (RITC).

Since the initial presentation to the City Council on October 30, 2021, City staff and housing consultant MIG have conducted stakeholder outreach and interviews, had working sessions with the City Council and the Planning Commission, conducted an on-line survey, and held two community presentations. The community engagement was utilized primarily to inform and gather input from the community regarding housing issues and planning strategies related to housing to inform the Housing Plan. The Housing Plan, a component of the updated Housing Element, consists of quantifiable goals, policies, and actions that will enable the City of Hercules to meet the RHNA for the 6th cycle in an equitable and just manner.

The purpose of the introduction presentation (see Attachment 1) is to:
 Inform and update the City Council on the status of the Administrative Draft 6 th Cycle Housing Element: 2023-2031
403

Staff report to City Council — June 14, 2022 Page
2  Share high-level information on the community engagement process  Share prospective timeframes for next steps in the approval of the 6th Cycle Housing Element:
2023-2031
 Answer any questions and receive any preliminary input from the City Council.

ATTACHMENTS:

Attachment 1 – Presentation on Draft 6th Cycle Housing Element: 2023-2031

404

CITY OF HERCULES

HOUSING ELEMENT UPDATE
City Council Meeting
June 14, 2022
405
Summary Contents
• Housing Element Overview
• Housing Element Summary
• Next Steps
406

HOUSING

ELEMENT

OVERVIEW
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Housing Element Requirements
• Must be updated every 8 years
• Identifies required number of units (RHNA)
• Identifies locations for new housing
• State review r equired by California
Housing and Community Development
Department (HCD)
• Adoption deadline: January 2023
• Non-c ompliance has consequences
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Hercules 2023 – 2031 RHNA
995 units Allocated by income categories:
• 344 Very Low – U p to 50% of Area
Median Income (AMI)
• 198 Low – 51 to 80% of AMI
• 126 Moderate – 81 to 120% of AMI
• 327 Above Moderate – 120% + of AMI
34%
20%13%
33%
Very Low Income
Low Income
Moderate Income
Above Moderate Income
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Constraints to
Housing
Development
• Governmental
• Market
• Environmental
• Infrastructure
Resources and
Sites Inventory
• Sites for all
Income Levels
• Public / Private
Partnerships
• Financial
Resources
Previous
Accomplishments
• Progress toward
Implementing
Previous Housing
Element
Needs Assessment
• Demographic
Trends
• Housing Market
Trends
• Special Needs
Groups
Affirmatively Furthering
Fair Housing
• Five Categories of
Analysis
• Existing Condition and
Distribution of RHNA
Sites
• Meaningful Actions
Components of the Housing Element
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HOUSING

ELEMENT

SUMMARY
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HE: Needs Assessment
• 25,075 r esidents
• Seniors ages 65+ : 16% Singles living alone: 19% of
residents
• Families: 34% of households (2,831)
• Large households (over 5 people):
• 12% hom eowners and 3% renters
• People with disabilities: 9 % of residents
412
HE: Previous Accomplishments
• Progress toward Implementing Previous Housing Element • Provides context for Housing Plan programs and policies • Three areas of goal assessment:
• Retain – required by law; addresses a stated need
• Retain with modification – required by law; informed by staff capacity or change in condition • Discontinue – funding may have ended; goal accomplished • Many of the goals are required by law so it is formulaic 413
HE: Housing Constraints
• Provides context for Housing Needs Analysis and Housing R
esources
• Four categories of analysis
• Governmental
• Market
• Environmental
• Infrastructure
• Primarily justifies the need or lack of need for the Housing Plan programs and policies
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HE: Policies and Programs Requirements
• Provide opportunities for a variety of housing choices to meet the diverse n
eeds of the community
• Facilitate the development of affordable housing, particularly for those with lo
wer income
• Remove barriers to creating housing
• Improve the condition of existing housing
• Preserve existing affordable housing
• Promote fair housing
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HE: Needs Assessment Summary
• Housing Options – 65% single-family homes
• More Variety Suggested
• Aging population – 16% residents 65+ and growing
• Increased from 8% in 2010
• Limited vacancy for rent or for sale
• 3.1% Vacancy rate
• 32% of households cost- burdened; 41% Renters, 30% Owners • 60% of cost- burdened households are severely cost-burdened (>50% of income allocated to housing costs)
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HE: Housing Resources
Table H-6.2: Approved and Proposed Projects
Project
Project
Status
Extremely/
Very Low
Income (0-
50% AMI)
Low Income
(50-80% AMI)
Moderate
Income (80-
120% AMI)
Above
Moderate-
Income
(+120%) Total
Bayfront Phase III Entitled - 20 - 367 387
Hill Town Entitled - - 30 568 598
Skelly Drive Proposed - 1 1 38 40
Sycamore Crossing Entitled - - - 120 120
Total - 21 31 1,093 1,145

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HE: Housing Resources
Table H-6.4: Vacant Mixed-Use Sites (NTC)
General Plan
Designation Zoning
Maximum
Density
Assumed
Density
Vacant
Acres
Potential
Dwelling
Units
Affordability
Level
New Town Center New Town
Center 75 du/acre 60 du/acre 6.7 405 Very Low
Total 6.7 405
Source: Potential dwelling units do not reflect straight application of maximum density to vacant land. The number of potential dwelling units has been reduced to 80 percent of the maximum density to reflect the possibility of commercial development or individual site constraints on the parcel.

Table H-6.5: Underutilized Mixed-Use Sites (NTC)
General Plan
Designation Zoning
Maximum
Density
Assumed
Density
Vacant
Acres
Potential
Dwelling
Units
Affordability
Level
New Town Center New Town
Center 75 du/acre 30 du/acre 6.24 187
Moderate/
Low/Very
Low
New Town Center New Town
Center 75 du/acre 30 du/acre 8.83 265
Moderate/
Low/Very
Low
New Town Center New Town
Center 75 du/acre 30 du/acre 2.39 72
Moderate/
Low/Very
Low
Source: Potential dwelling units do not reflect straight application of maximum density to vacant land. The number of potential dwelling units has been reduced to 40 percent of the maximum density to reflect the possibility of commercial development or individual site constraints on the parcel. Dwelling units are calculated at minimum density of 30 du/acre.

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HE: Housing Resources
Table H-6.8: Comparison of Sites, Pipeline Projects, and RNHA Project
Extremely/
Very Low-
Income (0-50%
AMI)
Low-Income
(50-80% AMI)
Moderate-
Income (80-
120% AMI)
Above
Moderate-
Income
(+120%) Total
2023 – 2031 RHNA 344 198 126 327 995
Approved and
Proposed Projects - 20 31 1,094 1,145
Vacant Mixed-Use
Sites 405 - - - 405
Underutilized
Mixed-Use Sites 76 229 218 - 524
Total 481 250 249 1,094 2,074
Surplus RHNA Sites 137 52 123 767 1,079

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HE: Housing Resources
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HE: Affirmatively Furthering Fair Housing
(AFFH) Requirements
• Five categories of analysis
• Fair Housing Enforcement and
Out
reach
• Integration and Segregation Patterns
a
nd Trends
• Concentrations of Wealth and Poverty
• Disparities in Access to Opportunities
• Disproportionate Housing Needs
(
including displacement)
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HE: AFFH Summary
• One (1) fair housing case reported
• Hercules is a very diverse community
• Hercules is a “moderate” community with
n
o distinctive pockets of wealth or poverty
• “Areas of opportunity” consistent across
t
he City, with some improving – no very low
or very high resources areas
• Housing needs assessment does point to
ne
ed in senior housing and housing variety
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Next Steps
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Opportunities for Public Input
• Public Comment Draft Published Mid-J une (30 days)
• Response to Public Comment (10 days)
• Submission to HCD Early-A ugust (up to 90 days)
• Public Draft Edits Early November
• Final Draft Public Hearings at Planning Commission and City Counc
il in November
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Hercules City CouncilJune 14, 2022

Hercules City Council
June 14, 2022