Agenda Packet — Hercules City Council, July 12, 2022 (part 2 of 2)

Resolution 22-
RESOLUTION NO. 22-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES CONFIRMING

THE REPORT OF DELINQ UENT ACCOUNTS AND PL ACING LIENS ON SAID

PROPERTIES AND SPECIAL ASSESSMENTS UPON PROPERTY TAXES PURSUANT TO CITY OF HERCULES MUNICIPAL CODE SECTI ON 5-2.01 TO 5-2.16,

MANDATORY GARBAGE/SOLID WASTE DISPOSAL

WHEREAS, pursuant to Hercules Municipal Code Sections 5-2.01 to 5-2.16, subscription to, and payment for, waste collection service for all occupied properties in the City of Hercules is mandatory; and

WHEREAS, waste collection service has been provided by Richmond Sanitary Service to all delinquent properties described in the ‘Preliminary Lien List by Parcel Number report; and

WHEREAS, pursuant to the provisions of Section 5-2.01 to 5-2.16, each owner of said delinquent properties has been notified in writing of their obligation to subscribe to waste collection services and make payment for this service; and

WHEREAS, said property owners have failed to make payments for six months or more for waste collection services as required; and

WHEREAS, said property owners have been notified in writing of the commencement of lien proceedings; and

WHEREAS, the City has incurred collection and delinquency costs on the delinquent properties described above; and

WHEREAS, City staff has established an administrative charge of $30 per parcel for processing the delinquent accounts and recording the assessment lien; and

WHEREAS, the City Council held a duly noticed public hearing on July 12, 2022 which afforded each identified delinquent property owner the right to protest the assessment lien for delinquent collection charges and administrative fees; and

WHEREAS, the City Council has revised and corrected the delinquent accounts report as it deems just.

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

1. That th e City Council confirms the delinquent accounts report attached hereto and made a part hereof and hereby places a lien against said properties in the amounts described.

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Resolution 22-

2. That the City Clerk is hereby directed to record a certified copy of the confirmed report with the Contra Costa County Recorder.

3. That th e City Clerk is hereby directed to deliver a copy of the Resolution of Confirmation to the Finance Director who is authorized to cause the above amounts to be collected in the manner provided by law for the collection of special items.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 12th day of July 2022 by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Dion Bailey, Mayor

ATTEST:

Lauren Berges, CMC
City Clerk
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Levy Code: HU

As Of 6/02/22
Service RSS City
Owners Name Billing Address Service Address Thru Charges Charge Total Due ---------------------------------------------------------------------------------------------------------------------------------------------------------------- 3624200196
CREER SHARON LYNN 167 CAPRICE CIR 167 CAPRICE CIR 22/01 965.36 30.00 995.36 HERCULES CA 94547
3624200303
MOORE-SADLER ROBERTA C 178 CAPRICE CIR 178 CAPRICE CIR 22/01 678.05 30.00 708.05 HERCULES CA 94547
4041100142
PALMER LINDA 306 ATLAS 7 306 ATLAS 7 22/01 546.41 30.00 576.41 HERCULES CA 94547
4041100365
BABA MAKOTO & JEAN KAMEI 705 HERMES 1 705 HERMES 1 22/01 152.70 30.00 182.70 HERCULES CA 94547
4041700164
MURPHY ERIN TRE 2434 ACTON ST 115 BAY ST 22/01 546.41 30.00 576.41 BERKELEY CA 94702
4043510819
SUEHIRO THOMAS 307 ONEIL CIR 307 ONEIL CIR 22/01 546.41 30.00 576.41 HERCULES CA 94547
4043511056
LANE-SMITH YOLANDA P 136 BRENNER 136 BRENNER 22/01 546.41 30.00 576.41 HERCULES CA 94547
4044000315
ROSS JUAN D & ANGELA 192 S WILDWOOD 192 S WILDWOOD 22/01 513.55 30.00 543.55 HERCULES CA 94547
4044200824
ALMON JANET M TRE 155 SCOTTS VALLEY 155 SCOTTS VALLEY 22/01 160.86 30.00 190.86 HERCULES CA 94547
4044800219
WILLIAMS CAROLYN DELORES 1105 PROMENADE ST 1105 PROMENADE ST 22/01 532.67 30.00 562.67 HERCULES CA 94547
4044801209
ABRAHAMS WAYNE 2051 RAILROAD AVE 2051 RAILROAD AVE 22/01 408.07 30.00 438.07 HERCULES CA 94547

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Levy Code: HU

As Of 6/02/22
Service RSS City
Owners Name Billing Address Service Address Thru Charges Charge Total Due ---------------------------------------------------------------------------------------------------------------------------------------------------------------- 4045300193
LACHAUX-WADLEY AIDA 166 WATERMARK TER 166 WATERMARK TER 22/01 965.14 30.00 995.14 HERCULES CA 94547
4045400100
WU LIN-YI TRE 1129 S SHELTER BAY 1126 S SHELTER BAY 22/01 614.78 30.00 644.78 HERCULES CA 94547
4045600444
SILVA RUDOLPH D 161 OVERHILL RD 106 TRESTLE CV 22/01 317.04 30.00 347.04 ORINDA CA 94563
4046500601
TRAN CUONG & VIVIENNE 58 SILVER BIRCH LN 1111 BAYWOOD LN 22/01 521.82 30.00 551.82 DANVILLE CA 94506
4046900546
LLAMAS LUIS TRE 2108 CLARK ST 2108 CLARK ST 22/01 477.22 30.00 507.22 HERCULES CA 94547
4047000346
DU MICHELLE & RICHARD 2033 DRAKE LN 2033 DRAKE LN 22/01 546.41 30.00 576.41 HERCULES CA 94547
4047000932
HOM KEVIN 5524 HORIZON DR 2063 DRAKE LN 22/01 130.06 30.00 160.06 SAN PABLO CA 94806
4061030088
TAYLOR LISSA A 1266 CANTERBURY 1266 CANTERBURY 22/01 291.04 30.00 321.04 HERCULES CA 94547
4061030328
CHAMPION VANESSA R 164 BEDFORD 164 BEDFORD 22/01 90.52 30.00 120.52 HERCULES CA 94547
4062210127
OLIVIER MARK X & SHELLEY A 109 BELLFLOWER CT 109 BELLFLOWER CT 22/01 561.13 30.00 591.13 HERCULES CA 94547
4062510161
GRONNINGSATER RELDUN 100 BUTTERCUP CT 100 BUTTERCUP CT 22/01 543.10 30.00 573.10 HERCULES CA 94547

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Levy Code: HU

As Of 6/02/22
Service RSS City
Owners Name Billing Address Service Address Thru Charges Charge Total Due ---------------------------------------------------------------------------------------------------------------------------------------------------------------- 4063420121
EBRON JOCELYN E 151 DRIFTWOOD CV 142 MANZANITA PL 22/01 607.09 30.00 637.09 HERCULES CA 94547
4063620316
NGUYEN THINH 2249 LUPINE RD 2249 LUPINE RD 22/01 546.41 30.00 576.41 HERCULES CA 94547
4063730099
MATTOX HOSIE & DWINETH E 2304 REDWOOD RD 2304 REDWOOD RD 22/01 524.72 30.00 554.72 HERCULES CA 94547
4063910246
MENDOZA ANASTACIO A JR 255 ELDERBERRY CT 255 ELDERBERRY CT 22/01 545.05 30.00 575.05 HERCULES CA 94547
4064340146
SANCHEZ-MARTINEZ LAURA 306 PEPPERWOOD ST 306 PEPPERWOOD ST 22/01 319.65 30.00 349.65 HERCULES CA 94547
4072420013
MANINGAS MELANIO & EDNA 202 BOBOLINK WAY 202 BOBOLINK WAY 22/01 546.41 30.00 576.41 HERCULES CA 94547
4072620174
WETZEL DAVID J & NDUKE ABASI 127 TANAGER WAY 127 TANAGER WAY 22/01 243.79 30.00 273.79 HERCULES CA 94547
4072810049
GIBSON DEBORAH D 4790 SNOWY EGRET WAY 253 FALCON WAY 22/01 431.71 30.00 461.71 OAKLEY CA 94561
4072810080
CHILDS ALEX & CASSANDRA 277 FALCON WAY 277 FALCON WAY 22/01 983.28 30.00 1,013.28 HERCULES CA 94547

3622720062
STENSCHKE SHERRI 139 MIDSHIP DR 139 MIDSHIP DR 22/02 548.66 30.00 578.66 HERCULES CA 94547
3624200337
CORRIGAN KEVIN F & PAMELA 183 CAPRICE CIR 183 CAPRICE CIR 22/02 71.99 30.00 101.99 HERCULES CA 94547

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Levy Code: HU

As Of 6/02/22
Service RSS City
Owners Name Billing Address Service Address Thru Charges Charge Total Due ---------------------------------------------------------------------------------------------------------------------------------------------------------------- 4040730063
FULLERTON GINA DIANE EST OF 1015 LIBERTY ST #2 141 WOODFIELD 22/02 29.66 30.00 59.66 EL CERRITO CA 94530
4041100100
YOUNG VERNETRA KAPRI 306 ATLAS 3 306 ATLAS 3 22/02 546.80 30.00 576.80 HERCULES CA 94547
4043510082
LEE KEVIN M & DIANA L 106 WEISS 106 WEISS 22/02 548.66 30.00 578.66 HERCULES CA 94547
4043600321
CORRIGAN RICHARD K 350 N WILDWOOD 350 N WILDWOOD 22/02 533.33 30.00 563.33 HERCULES CA 94547
4043600586
WHITE LASHAUNDRA 430 N WILDWOOD 430 N WILDWOOD 22/02 548.66 30.00 578.66 HERCULES CA 94547
4044800102
MUANZA SAJI O 1171 PROMENADE ST 1171 PROMENADE ST 22/02 548.66 30.00 578.66 HERCULES CA 94547
4045000066
PENATE MARY 1072 CRAFTSMAN DR 1072 CRAFTSMAN DR 22/02 223.36 30.00 253.36 HERCULES CA 94547
4046300481
NGUYEN TRUNG DUC 1132 COTTAGE LN 1132 COTTAGE LN 22/02 87.56 30.00 117.56 HERCULES CA 94547
4046700086
JUDAN MANUEL A & MARYLYN C 1159 REGATTA POINT 2174 RAILROAD AVE 22/02 753.29 30.00 783.29 HERCULES CA 94547
4063620050
MUNOZ ANTONIO & DAISY 181 BEECHNUT DR 181 BEECHNUT DR 22/02 581.38 30.00 611.38 HERCULES CA 94547
4064430095
GRABELLE DEBRA 3052 LYNDE ST 1826 REDWOOD RD 22/02 433.90 30.00 463.90 OAKLAND CA 94601

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Levy Code: HU

3606300238
SPENCER PAULETTE AVA 1206 TURQUOISE DR 1206 TURQUOISE DR 22/03 273.61 30.00 303.61 HERCULES CA 94547
3623200148
BAPTISTE BYRON & VENUS 136 RALEIGH CT 136 RALEIGH CT 22/03 898.16 30.00 928.16 HERCULES CA 94547
3623400078
ROMERO ELIZABETH R TRE 184 MANDALAY AVE 184 MANDALAY AVE 22/03 348.59 30.00 378.59 HERCULES CA 94547
4041400542
LAM DANNY TRE 10 BUENA VISTA RD 500 ATHENA 5 22/03 322.15 30.00 352.15 SOUTH SAN FRANCISCO CA 94080
4043510322
LEWIS ANNETTE Y 250 ONEIL CIR 250 ONEIL CIR 22/03 350.86 30.00 380.86 HERCULES CA 94547
4043510926
SEIDEN MARIA JOAN 193 ONEIL CIR 193 ONEIL CIR 22/03 57.96 30.00 87.96 HERCULES CA 94547
4043600461
CARRANZA LUIS A & MARYGRACE N 314 N WILDWOOD 314 N WILDWOOD 22/03 132.68 30.00 162.68 HERCULES CA 94547

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Levy Code: HU

As Of 6/02/22
Service RSS City
Owners Name Billing Address Service Address Thru Charges Charge Total Due ---------------------------------------------------------------------------------------------------------------------------------------------------------------- 4044400358
BLAKELY CHRISTOPHER R & MONICA 181 OVERLOOK TER 181 OVERLOOK TER 22/03 573.07 30.00 603.07 HERCULES CA 94547
4044500363
TONG YING LUEN LAI & JAMES 109 LOOKOUT CT 109 LOOKOUT CT 22/03 208.97 30.00 238.97 HERCULES CA 94547
4045800226
PERALTA BEATRIZ 1129 REGATTA PT 1129 REGATTA PT 22/03 350.80 30.00 380.80 HERCULES CA 94547
4046500023
FELIX VALERIE JEAN Q 1006 AVOCET DR 1006 AVOCET DR 22/03 270.95 30.00 300.95 HERCULES CA 94547
4046500353
PONDERS ANTOINETTE 1045 SANDERLING DR 1045 SANDERLING DR 22/03 204.05 30.00 234.05 HERCULES CA 94547
4046800134
IMPERIAL JONATHAN A & JESSICA 1072 WAVERLY CIR 1072 WAVERLY CIR 22/03 481.01 30.00 511.01 HERCULES CA 94547
4047500014
SANTOS JENNY M 1796 YOSEMITE PL 1796 YOSEMITE PL 22/03 325.79 30.00 355.79 HERCULES CA 94547
4060500016
BUTLER CARRIE B 6 MANCHESTER 6 MANCHESTER 22/03 375.84 30.00 405.84 HERCULES CA 94547
4060820315
MASON LINDA L 1062 CANTERBURY 1062 CANTERBURY 22/03 373.33 30.00 403.33 HERCULES CA 94547
4061210102
MARTINEZ EDUARDO J 196 NEWBURY 196 NEWBURY 22/03 79.30 30.00 109.30 HERCULES CA 94547
4062130051
ANTHONY ANALISA A 295 VIOLET RD 295 VIOLET RD 22/03 344.10 30.00 374.10 HERCULES CA 94547

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Levy Code: HU

3606410136
SIMPSON TERRANCE T & TERRI E 1104 TURQUOISE DR 1104 TURQUOISE DR 22/04 1,303.31 30.00 1,333.31 HERCULES CA 94547
3606520124
MERCURIO RAUL & RUBI MARIE TRE 2149 PHEASANT DR 2149 PHEASANT DR 22/04 349.06 30.00 379.06 HERCULES CA 94547
3623500448
GOHAL MALKIAT S & HARBANS K 2433 CROCKER WAY 115 MONTEGO DR 22/04 105.00 30.00 135.00 ANTIOCH CA 94531
3623910043
US BANK NA TRE 3217 DECKER LAKE DR 187 CATALINA DR 22/04 353.05 30.00 383.05 WEST VALLEY CITY UT 84119
4041200165
RAMOS HILDA 216 APOLLO 2 216 APOLLO 2 22/04 210.44 30.00 240.44 HERCULES CA 94547
4041400179
ROBERTSON LANDA 406 OLYMPUS 3 406 OLYMPUS 3 22/04 159.60 30.00 189.60 HERCULES CA 94547
4043800244
MIRANDA PATRICIA SAHEL 180 S WILDWOOD 180 S WILDWOOD 22/04 146.50 30.00 176.50 HERCULES CA 94547
4044000182
SIMS GEORGE 190 S WILDWOOD 190 S WILDWOOD 22/04 353.93 30.00 383.93 HERCULES CA 94547

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Levy Code: HU

As Of 6/02/22
Service RSS City
Owners Name Billing Address Service Address Thru Charges Charge Total Due ---------------------------------------------------------------------------------------------------------------------------------------------------------------- 4044801019
SANCHEZ MATIAS E TRE 1112 EARNEST ST 1112 EARNEST ST 22/04 353.04 30.00 383.04 HERCULES CA 94547
4046900132
ZHEN MABEL 139 ELDER AVE 2108 LEWIS ST 22/04 324.53 30.00 354.53 MILLBRAE CA 94030
4047001369
LIN CATHERINA SHIH CHIEN 300 ASHLAND PL #21E 2210 TSUSHIMA ST 22/04 403.70 30.00 433.70 BROOKLYN NY 11217
4047001724
ABDELSALAM TAREK R TRE 3895 COTTONWOOD DR 2000 TSUSHIMA ST 22/04 91.25 30.00 121.25 DANVILLE CA 94506
4047600137
WU LIN-YI 1129 S SHELTER BAY 2014 JOHN MUIR PKWY 22/04 59.22 30.00 89.22 HERCULES CA 94547
4060610138
AINA MARIA CARMELLE 103 SHEFFIELD 103 SHEFFIELD 22/04 221.76 30.00 251.76 HERCULES CA 94547
4060620111
PELAYO ELIZABETH 108 WORTHING 108 WORTHING 22/04 353.04 30.00 383.04 HERCULES CA 94547
4062120037
ELHATIMY AISHA RISHARD OMAR 172 GOLDENROD DR 172 GOLDENROD DR 22/04 366.79 30.00 396.79 HERCULES CA 94547
4062910106
MONTEJO MIGUEL A 160 POPPY DR 160 POPPY DR 22/04 324.53 30.00 354.53 HERCULES CA 94547
4064330105
DAVIS MICHAEL C 1919 REDWOOD RD 1919 REDWOOD RD 22/04 379.49 30.00 409.49 HERCULES CA 94547
4064410295
GIRON TERESA DE JESUS 118 JUNIPER CT 118 JUNIPER CT 22/04 380.52 30.00 410.52 HERCULES CA 94547

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Levy Code: HU

As Of 6/02/22
Service RSS City
Owners Name Billing Address Service Address Thru Charges Charge Total Due ---------------------------------------------------------------------------------------------------------------------------------------------------------------- 4064810247
BADDIE RASHAWNDA 145 MESA CT 145 MESA CT 22/04 622.07 30.00 652.07 HERCULES CA 94547
4064810437
HARO YEZENIA 179 WADI RUN 179 WADI RUN 22/04 339.92 30.00 369.92 HERCULES CA 94547
4064910260
BIBB JAMES PRESTON PO BOX 21625 10 PEAK CT 22/04 353.04 30.00 383.04 EL SOBRANTE CA 94820
4070420056
CASTENADA MANUEL & FATIMA 360 TURQUOISE DR 360 TURQUOISE DR 22/04 365.50 30.00 395.50 HERCULES CA 94547
4070540192
BERNABE ALLAIN C & MARIA C A O 100 AMETHYST CT 100 AMETHYST CT 22/04 353.02 30.00 383.02 HERCULES CA 94547
4071930293
REYES BERNARDO LLANERAS 1969 PHEASANT DR 1969 PHEASANT DR 22/04 351.29 30.00 381.29 HERCULES CA 94547
4072320080
RIVERA MONICA J 142 SPARROW DR 142 SPARROW DR 22/04 352.76 30.00 382.76 HERCULES CA 94547
---------------------------------------------------------------------------------------------------------------------------------------------------------------- CONTROL TOTALS . . . 95 Records 39,001.89 2,850.00 41,851.89 ----------------------------------------------------------------------------------------------------------------------------------------------------------------

160
111 Civic Drive
Hercules, CA 94547City of Hercules
Meeting Minutes
City Council
Mayor Dion Bailey
Vice Mayor Alexander Walker-Griffin
Council Member Dan Romero
Council Member Chris Kelley
Council Member Tiffany Grimsley
Dante Hall, City Manager
Patrick Tang, City Attorney
Lauren Berges, City Clerk
6:00 PMTuesday, June 28, 2022
In Chamber In-Person or Zoom ID: 839 2173 7581
Zoom Passcode: 857006 Zoom Phone Number: 1-669-900-6833

JOINT MEETING OF THE HERCULES CITY COUNCIL AND HERCULES PUBLIC

FINANCING AUTHORITY
To view webcast of meetings, live or on demand, go to the City's website at www.ci.hercules.ca.us I. SPECIAL JOINT MEETING - CLOSED SESSION – 6:00 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 -
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
III. CONVENE INTO CLOSED SESSION
City Attorney Tang announced the closed session items and Mayor Bailey adjourned the meeting into closed session.

1. 22-216 Pursuant to Government Code Section 54957.6 Conference With Labor Negotiators - City Negotiators: Dante Hall, City Manager; Edwin Gato, Director of Finance; Boonmanus Seelapasay, Human Resources Administrator; relative to the following employee groups:
a. Teamsters Local 315 Employee Organizations
b. Hercules Police Officers Association
c. Hercules Senior Manager Employee Group
d. Confidential Unrepresented Employee Group
e. Mid Management Employee Group

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2. 22-217 Pursuant to Government Code Section 54957 - Public Employment Title: Chief of Police

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 reported that there is no final or reportable action on the closed session items.

VI. PLEDGE OF ALLEGIANCE
Councilmember Kelley led the Pledge of Allegiance.

VII. MOMENT OF SILENCE
Mayor Bailey requested a moment of silence for Johnnie Griffin, Vice Mayor Walker-Griffin's grandmother and a friend to Hercules, who passed away on June 7th.

VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 22-197
Presentation from West Contra Costa Unified School District Superintendent Dr. Hurst and Board Trustee, Jamela Smith-Folds Presentation by Dr. Chris Hurst of West Contra Costa County Unified School District. Board Trustee Jamela Smith-Folds provided comment.

Councilmembers provided comment.

2. 22-208
Presentation by Contra Costa Transportation Authority Executive Director Tim Haile
Presentation by CCTA Executive Director Tim Haile. Councilmembers provided comment.

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

X. PUBLIC COMMUNICATIONS
No public comment.

XI. PUBLIC HEARINGS

1. 22-213 Ordinance to amendment the Hercules Municipal Code, adding Title 10 Chapter 2 Article 9 Urban Lot Split and Title 13 Chapter 36-36

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Two Unit Development
Recommendation: Adopt proposed amendments to the Hercules Municipal Code, Land Use and Zoning Code sections to establish regulations for subdivision and two-unit developments to comply with SB 9.

Presentation by Community Development Director Tim Rood.

Councilmembers provided comment. No public comment.

MOTION: A motion was made by Council Member Romero, seconded by Council Member Kelley, to introduce the ordinance and waive the first reading. The motion carried by the following vote:

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

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

2. 22-209
Landscaping and Lighting Assessment Districts - Hold Public Hearings for LLAD Nos. 83-2, 2002-1, 2002-2, 2004-1, and 2005-1 and Adopt Resolutions Confirming Diagrams and Assessments for LLAD Nos. 83-2, 2002-1, 2002-2, 2004-1, and 2005-1 for Fiscal Year 2022/23
Recommendation:

1. Hold a Public Hearing to receive testimony regarding the assessments for Benefit Zone Nos. 1, 2, 3&4, 5A, 5B, 5C, 6, 7, 8, 9, and 10 for Fiscal Year (FY) 2022/23 for the City of Hercules Landscaping and Lighting Assessment District No. 83-2 pursuant to the Landscaping and Lighting Act of 1972; and

2. Hold a Public Hearing and Adopt a Resolution Confirming Diagram and Assessments for FY 2022/23 for the Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 pursuant to the Landscaping and Lighting Act of 1972; and

3. Hold a Public Hearing and Adopt a Resolution Confirming Diagram and Assessments for FY 2022/23 for the Hercules Village Landscaping and Lighting Assessment District No. 2002-2 pursuant to the Landscaping and Lighting Act of 1972; and

4. Hold a Public Hearing and Adopt a Resolution Confirming Diagram and Assessments for FY 2022/23 for the Baywood Landscaping and Lighting Assessment District No. 2004-1 pursuant to the Landscaping and Lighting Act of 1972; and

5. Hold a Public Hearing and Adopt a Resolution Confirming Diagram and Assessments for FY 2022/23 for the Bayside Landscaping and Lighting Assessment District No. 2005-1 pursuant to the Landscaping and Lighting Act of 1972.

Presentation by Director of Public Works Mike Roberts. Councilmembers provided comment. No public comment.

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MOTION: A motion was made by Council Member Kelley, seconded by Council Member Grimsley, to adopt Resolution 2022-047. 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 -
MOTION: A motion was made by Council Member Grimsley, seconded by Vice Mayor Walker-Griffin, to adopt Resolution 2022-048. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Vice Mayor A. Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley
4 -
Nay: Council Member D. Romero1 -
MOTION: A motion was made by Council Member Kelley, seconded by Council Member Romero, to adopt Resolution 2022-049. 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 -
MOTION: A motion was made by Council Member Kelley, seconded by Vice Mayor Walker-Griffin, to adopt Resolution 2022-050. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Vice Mayor A. Walker-Griffin, Mayor D. Bailey, and Council Member C. Kelley
4 -
Nay: Council Member D. Romero1 -
MOTION: A motion was made by Vice Mayor Walker-Griffin, seconded by Council Member Romero, to adopt Resolution 2022-051. 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. 22-210
Public Hearing on Approving Additions, Deletions and Adjustments to the Master Fee Schedule with Said Additions, Deletions and Adjustments to become effective July 1, 2022
Recommendation: Open the public hearing, receive a staff report, take public testimony, close the public hearing and consider adopting a Resolution approving the Master Fee Schedule effective July 1, 2022 Presentation by Director of Finance Edwin Gato. Councilmembers

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provided comment. No public comment.

MOTION: A motion was made by Council Member Kelley, seconded by Council Member Romero, to adopt Resolution 2022-052. 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 -

4. 22-211
Public Hearing on Proposed FY 2022-23 City of Hercules Budget Plan Including the First Year of the Five-Year 2023-2027 Capital Improvement Budget
Recommendation: Open the continued public hearing, receive a staff report, take public testimony, close the public hearing, and adopt the following Resolutions:
a) Approving the FY 2022-23 City of Hercules Budget Plan which includes the first year (2022-23 Fiscal Year) of the Five-Year (2023-2027 Fiscal Years) Capital Improvement Budget and making certain designations and fund balance adjustments, approving (29) annual contracts for services in a total amount of $4,720,936.
b) Approving the FY 2022-23 Hercules Public Financing Authority Budget Plan Consisting of Debt Service in the amount of $1,971,526. c) Establishing the Appropriations Limit for the FY 2022-23 in accordance with Proposition 111 and Article X111B.
d) Amending the Statement of Financial Principles and Policies.

Presentation by Director of Finance Edwin Gato. No public comment.

Councilmembers provided direction on the following: To increase special events allocation by $10,000 and request that the Chamber of Commerce provide a report to the City Council on activities supported by City funds.

The CIP funding status changed from public benefit fee to unfunded.

MOTION: A motion was made by Council Member Romero, seconded by Council Member Kelley, to adopt Resolution 2022-053. 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 -
MOTION: A motion was made by Council Member Kelley, seconded by Council Member Romero, to adopt Resolution 2022-054. 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 -

Page 5 ends

165
June 28, 2022City Council Meeting Minutes
MOTION: A motion was made by Council Member Grimsley, seconded by Council Member Kelley, to adopt Resolution 2022-055. 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 -
MOTION: A motion was made by Council Member Romero, seconded by Vice Mayor Walker-Griffin, to adopt Resolution 2022-056. 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 -
XII. CONSENT CALENDAR
MOTION: A motion was made by Council Member Kelley, seconded by Council Member Romero, to adopt the Consent Calendar. The motion carried by the following vote:

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

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

1. 22-212
Minutes
Recommendation: Approve the Regular Meeting Minutes of June 14, 2022.

Approved.

2. 22-206 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.

XIII. DISCUSSION AND/OR ACTION ITEMS - NONE
XIV. PUBLIC COMMUNICATIONS
No public comment.

Page 6 ends

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June 28, 2022City Council Meeting Minutes
XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

AND FUTURE AGENDA ITEMS
Director of Public Works Mike Roberts reported out on the Household Hazardous Waste event that happened on June, 25th. Parks and Recreation Director Christopher Roke made an announcement on the upcoming 4th of July festivities. Councilmembers reported out on local and regional meetings and events.

Mayor Bailey requested a future agenda item to discuss our Sister City program. Mayor Bailey also requested a future agenda item to discuss the allocation of the monetary donations received at the Community Clean-up Day.

XVI. ADJOURNMENT
Mayor Bailey adjourned the meeting at 9:51 pm.
_________________________________
Dion Bailey, Mayor
Attest:
_______________________________
Lauren Berges, CMC
City Clerk

Page 7 ends

167

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of July 12, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Tim Rood, Community Development Director

SUBJECT: Agreement with M-Group for Planning Services

RECOMMENDED ACTION:

Adopt a resolution authorizing the City Manager to execute an agreement with Metropolitan Planning Group dba M-Group in the not-to-exceed amount of $106,000 for planning services.

FISCAL IMPACT OF RECOMMENDATION:

The cost for this contract is included in the General Fund in the proposed FY 2022-23 Budget.

DISCUSSION:

M-Group is a prequalified planning consultant on the Council -adopted vendor list and has been providing the City with planning expertise since August 2021. Assistant Planner Larissa Alchin assisted the Community Development Department by responding to inquiries from the public ; reviewing development applications; researching and drafting ordinances, including the recent All- Electric and SB 9 ordinances; and preparing staff reports and resolutions. As of July 1, 2022, Ms.

Alchin has been promoted by M-Group to Associate Planner, with a corresponding change in billing rate that is reflected in the proposed agreement.

The agreement is anticipated to provide an average of 16 hours per week of Ms. Alchin’s planning services through June 30, 2023, and provide the flexibility to adapt to changing circumstances on identified tasks and on-call services for new tasks as they arise.

ATTACHMENTS:

1. Resolution

2. Agreement including scope and fee.

168

Financial Impact
Description: Expenditure amount not to exceed $106,000.

Funding Source:

General Fund $106,000
Fund No. 100-5235-611.50-00

Budget Recap:

Total Estimated cost: $106,000 New Revenue: $
Amount Budgeted: $106,000 Lost Revenue: $
New funding required: $ New Personnel: $
Council Policy Change: Yes No

169

RESOLUTION NO. ____

RESOLUTION OF THE CI TY COUNCIL OF THE CI TY OF HERCULES

AUTHORIZING THE CITY MANAGER TO EXEC UTE A CONTRACT WITH

METROPOLITAN PLANNING GROUP (DBA M -GROUP) FOR A TOT AL AMOUNT NOT TO EXCEED $106,000

WHEREAS, the City of Hercules has a need for planning consulting services to perform duties involving development application review, public information, and ordinance preparation; and

WHEREAS, the C ity has very limited staff resources for Planning services, with a permanent full-time staff of 2.0 FTE in Community Development; and

WHEREAS, M-Group is intimately familiar with the City of Hercules plans, codes, policies and procedures , having performed contract planning ser vices for the City since August 2021; and

WHEREAS, M-Group has the expertise and capacity to continue performing contract planning services in Fiscal Year 2022-23.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hercules;

1. Authorizes the City Manager to execute a contract with M-Group for a to tal amount not to exceed $106,000.

2. Funding for this contract to be provided from professional services of the General Fund budget for the Community Development Department.

The foregoing Resolution was duly and regularly adopted at a regular meeting of t he City Council of the City of Hercules held on the twelfth day of July , 2022, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Dion Bailey, Mayor
ATTEST:
________________________________
Dante Hall, City Manager
170

CITY OF HERCULES

PROFESSIONAL SERVICES AGREEMENT

This Agreement (“Agreement”) for professional services is made on June 28, 2022, between the City of Hercules, a California municipality (“City”), and Metropolitan Planning Group, Inc, dba “M- Group,” a California Stock Corporation (“Consultant”) (individually, a “Party,” and collectively, the “Parties”).

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

2. Term. This Agreement will become effective on July 1, 2022 (“Effective Date”) and will terminate upon the full and satisfact ory completion of the Services or as otherwise specified in Attachment A, unless terminated sooner in accordance with Section 10 of this Agreement. Time is of the essence with respect to all provisions of this Agreement that specify a time for performance.

3. Compensation. For the full and satisfactory completion of the Services, City will pay Consultant in an amount not to exceed ONE HUNDRED SIX THOUSAND DOLLARS ($106,000), without prior written authorization by City, pursuant to the terms set forth in Attachment B on Payment, which is attached to and incorporated in this Agreement. Consultant’s compensation is intended to encompass all costs required for performing the Services, including overhead and indirect costs. Except as expressly provided in Attachment B, Consultant will not be entitled to reimbursement for expenses it incurs to provide the Services.

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

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

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

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

171

5. Consultant’s Warranties.

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

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

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

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

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

City: Consultant:

City of Hercules Name: M-Group
111 Civic Drive Address: 2808 Adeline Street, Unit 1
Hercules, CA 94547 Berkeley, CA 94703
(510) 799-8200 Phone: (510) 473-3090
Attn: City Clerk Attn: Tom Ford

Copy to: Tim Rood
Email: [email protected] Email: [email protected]

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

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

7.1 T o the full extent permitted by law, Consultant will indemnify, defend with counsel acceptable to City, and hold harmless City, its governing body, officers, agents, employees, and volunteers (collectively, “City Indemnitees”) from and against any and all liability, demands, loss, damage, claims, settlements, expenses, and costs (including, without limitation, attorney fees, expert witness fees, and costs and fees of litigation) (collectively, “ Liability”) of every nature arising out of or in connection with Consultant’s acts or omissions with respect to this Agreement, except such Liability caused by the active negligence, sole negligence, or willful misconduct of any of the City Indemnitees. This indemnification obligation is not limited by any limitation on the amount or type of damages or compensation payable under Workers’ Compensation or other employee benefit acts, or by insurance coverage limits, and will survive the expiration or early termination of this Agreement. This Subsection 7.1 does not apply if the Services to be provided 172
under this Agreement are desi gn professional services provided by a licensed architect, landscape architect, professional engineer, or professional land surveyor.

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

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

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

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

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

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

173

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

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

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

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

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

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

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

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

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

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

174

10. Early Termination.

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

10.2 Termination for Cause. If either Party breaches this Agreement by failing to timely or satisfactorily perform any of its obligations or otherwise violates the terms of this Agreement, the other Party may terminate this Agreement by giving written notice five calendar days prior to the effective date of termination, specifying the reason a nd the effective date of the termination.

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

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

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

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

13. General Provisions.

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

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

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

13.3.1 Avoidance of Cronyism and Nepotism. Consultant shall comply with regulations adopted by the City of Hercules to avoid favoritism in the award of contracts. Consultant shall submit a fully executed copy of the “Contractor Acknowledgment of City of Hercules Nepotism and Cronyism Policy” as Attachment C to this Agreement.

13.3.2 Compliance with the California Equal Pay Act . Consultant shall comply with regulations adopted by the City of Hercules to allow for verification of Consultant compliance with 175
the requirements of the California Equal Pay Act. Consultant shall submit a fully executed copy of the “Contractor Acknowledgment of Compliance with the California Equal Pay Act” as Attachment D to this Agreement.

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

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

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

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

13.8 Provisions Deemed Inserted. Every provision of law required to be inserted in this Agreement will be deemed to be inserted, and this Agreement will be construed and enforced as though included. If it is discovered that through mistake or otherwise that any required provision is not inserted, or not correctly inserted, this Agreement will be amended to make the insertion or correction.

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

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

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

13.12 Headings. The headings in this Agreement are included for convenience only and will not affect the construction or interpretation of any provision in this Agreement or any of the rights or obligations of the Parties to this Agreement. 176

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

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

[Signature page follows.]

177
The Parties agree to this Agreement as witnessed by the signatures below:

CITY: Approved as to form:

s/_______________________________ s/__________________________________

________________________________ ___________________________________ Dante Hall, City Manager Patrick Tang, City Attorney

Date: ___________________________ Date: ______________________________

Attest:

s/_______________________________

_________________________________
Lauren Berges, City Clerk

Date: ___________________________

CONSULTANT: M-Group______________________________________ Business Name

s/_______________________________

_________________________________
Name/Title

Date: ____________________________

s/_______________________________

_________________________________
Name/Title

Date: ____________________________

Attachments:

Attachment A: Scope of Services
Attachment B: Payment
Attachment C: Contractor Acknowledgment of City of Hercules Nepotism and Cronyism Policy Attachment D: Contractor Acknowledgment of Compliance with the California Equal Pay Act 178
Attachment A

SCOPE OF SERVICES

179

May 24, 2022

Robert Reber, AICP
Community Development Director
City of Hercules
(510) 799-8248
[email protected]

Subject: Proposal – Community Development Staffing Assignment

Dear Robert,

Thank you for the opportunity to provide a staffing solution to the City of Hercules.

Based on our understanding, the City needs a part-time Associate Planner approximately 16 hours per week, with flexibility due to the City’s staffing needs. This commitment will begin July 1, 2022 and continue for one year.

We propose to staff the assignment with Associate Planner Larissa Alchin at a rate of $130 per hour through December 31, 2022; the rate will change to $135 per hour on January 1, 2023. The maximum contract amount would be $106,000. Please refer to our Scope and Budget enclosed below. I am attaching a 3-year Rate Sheet for M- Group’s services.

We look forward to working with you and the City again.

Sincerely,

Tom Ford, AICP
Principal
[email protected]
(510) 473-3078

Encl: Scope & Budget
Att: M- Group 3-Year Rate Sheet

180
SCOPE

M-Group will provide the City of Hercules (City) with an Associate Planner to work in the Community Development Department under the direction of the Community Development Director. The Associate Planner will work remotely via a VPN laptop provided by the City and may work up to one (1) day per week in the City’s offices. On days when the Associate Planner works on site at the City, travel time between the Assistant Planner’s home in Santa Rosa and Hercules (approximately 2 hours round trip) will be included. The work week schedule will be determined by mutual agreement of the Community Development Director and the Associate Planner. By mutual agreement, the hours per week may fluctuate due to specific staffing needs the City may have.

BUDGET

M-Group will provide staffing services in accordance with the Scope outlined above with the following terms.

Contract duration July 1, 2022 – June 30, 2023
Hours per Week +/- 16
Rate Per Hour (2022) $130
Rate Per Hour (2023) $135
Total Contract Amount - Not to Exceed $106,000

181
Attachment B

PAYMENT

182

M - G R O U P
R A TE S H E E T 202 2 – 202 4

M-GROUP STAFF HOURLY RATE
2022 2023 2024

Admin Analyst
$85 $85 $90 Planning Tech

Assistant Planner
$100 $105 $110 Assistant Urban Designer
Social Media Coordinator

$130 $135 $140 Associate Planner
Associate Urban Designer
GIS Services

Environmental Planner
$145 $150 $155 Historic Preservation Specialist
Public Art Specialist

Senior Planner
Senior Urban Designer
$155 $160 $165 Senior Environmental Planner
Project Manager

Principal Planner
Principal Environmental Planner
Principal Policy Planner
Director of Urban Design

$175 $180 $190

Principal $220-$270 $220-$270 $230-$280

Sub-Consultants require a 10%
administration fee.

183
Attachment C

CONTRACTOR ACKNOWLEDGMENT OF

CITY OF HERCULES NEPOTISM AND CRONYISM POLICY

184

CONTRACTOR ACKNOWLEDGMENT OF CITY OF HERCULES NEPOTISM AND CRONYISM POLICY SECT
ION A:

To be completed by City Representative Prior to Distribution to Contractor:

City Representative Phone Project Spec No.

Department Contract/Proposal Name
SE
CTION B:

This is an Original Revised form (check one). If Original, complete all that applies. If revised, complete Contractor Name and include any changed data.

Contractor/Consultant Name Phone
Street Address City State Zip
Type of Submission (Check One) Bid Proposal Qualification Contract/Agreement/Amendment SE
CTION C:

The undersigned Contractor’s Representative acknowledges by his or her signature the following:

It is the policy of the City of Hercules to avoid favoritism or discrimination in making decisions to award contracts for supplies, construction, maintenance, professional or other services. The awarding of a contract or the approval of payments or expenses under a contract by a City Official, to a person with whom she or he has a family relationship or a consensual romantic and/or sexual relationship, is regarded as a violation of t his Section. Nepotism and cronyism as defined in Section 2-3.402 are hereby prohibited from City contracting decisions to the full extent permitted by law.

I
have read Hercules Ordinance Number 486 and certify that I/we have not knowingly, nor will I/we in the future, enter into a contract with the City of Hercules or accept payment from the City of Hercules when to do so is in violation of Ordinance Number 486.

If
circumstances require changing the information on this form while I/we have a bid, proposal, or qualifications under review, or while we are under contract with the City, we will amend this form within five business days.

Signature Date
Print Name of Signer Position
SE
CTION D:

To Be Completed by Administrative Services Departmen t with the City of Hercules after Submission of the Completed Form by Contractor
Date Received by City By
185
Attachment D

CONTRACTOR ACKNOWLEDGMENT OF

COMPLIANCE WITH THE CALIFORNIA EQUAL PAY ACT

186

CONTRACTOR ACKNOWLEDGMENT OF COMPLIANCE WITH CALIFORNIA EQUAL PAY ACT

SECTION A:

To be completed by City Representative Prior to Distribution to Contractor:

City Representative Phone Project Spec No.

Department Contract/Proposal Name __

SECTION B:

This is an Original Revised form (check one). If Original, complete all that applies. If revised, complete Contractor Name and include any changed data.

Contractor/Consultant Name____________________ Phone

Street Address City State Zip

Type of Submission (Check One) Bid Proposal Qualification Contract/Agreement/Amendment

SECTION C:

The undersigned Contractor’s Representative acknowledges by his or her signature the following:

It is the policy of the City of Hercules to avoid awarding contracts for supplies, construction, maintenance, professional or other services to contractors who are not in compliance with the equal pay requirements of the California Equal Pay Act.. The awarding of a contract or the approval of payments or expenses under a contract by a City Official, to a person or contractor not in compliance with the California Equal Pay Act, is regarded as a violation of this Section.

I have read Hercules Ordinance Number 534 and certify that I/we have not in the past 5 years been found to be in violation of the California Equal pay Act, and I/we have not knowingly, nor will I/we in the future, enter into a contract with the City of Hercules or accept payment from the City of Hercules when to do so is in violation of Ordinance Number 534 .

If circumstances require changing the information on this form while I/we have a bid, proposal, or qualifications under review, or while we are under contract with the City, we will amend this form within five business days.

Signature Date

Print Name of Signer Position

SECTION D:

To Be Completed by Administrative Services Department with the City of Hercules after Submission of the Compl eted Form by Contractor

Date Received by City By

187
1 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of July 12, 2022

TO: Members of the City Council

VIA: Dante G. Hall, City Manager

SUBMITTED BY: Tim Rood, Community Development Director
Larissa Alchin, Contract Assistant Planner

SUBJECT: Ordinance to Amend the Hercules Municipal Code, adding Title 10 Chapter 2 Article 9 Urban Lot Split and Title 13 Chapter 36-36 Two Unit Development

RECOMMENDED ACTION:

Adopt Ordinance No. 540 to amend the Hercules Municipal Code, Land Use and Zoning Code sections to establish regulations for subdivision and two-unit developments to comply with SB 9.

FISCAL IMPACT OF RECOMMENDATION:

There are no direct fiscal impacts associated with this item.

BACKGROUND:

This ordinance was introduced at the June 28th, 2022 regular City Council meeting.

Senate Bill (SB) 9 (Atkins), signed into law by Governor Newsom on September 16, 2021, and became effective January 1, 2022, allows a single -family zoned parcel (including single-family Planned Unit Developments) to be subdivided into two parcels and/ or two residences to be constructed on each parcel lot.

The bill requires approval of the following development activities:
 Two-unit development – Two homes on an eligible single-family residential parcel (whether the proposal adds up to two new housing units or adds one new unit to one existing unit).  Urban lot split - A one-time subdivision of an existing single-family residential parcel into two parcels. This would allow up to four units (unless a jurisdiction decides to allow additional units).

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2 Following a discussion by City Council on April 12, 2022, staff was directed to draft an ordinance to amend Hercules Municipal Code, implementing Urban Lot Splits and Two Unit Developments in accordance with SB 9.

At its regular meeting on May 16, 2022, the Planning Commission reviewed and voted to recommend for Council adoption a draft ordinance with the following modification:
a. Clarify that landscaping shrubs shall be placed a maximum of 5-feet apart.

WHAT CAN BE BUILT WITH SB 9

Lots Not Being Subdivided
The statute reads “A proposed development containing not more than two residential units within a single-family residential zone shall be considered ministerially” therefore staff understands this to mean no more than two units may be proposed as part of one SB 9 project.

Homeowners may use SB 9 to build two new homes on a vacant lot. If there is an existing home, they can add one primary dwelling unit. If there is an existing Single-family home and ADU the project could propose one new single-family home. However, if the project proposes two new single-family homes and two new ADUs the project could not be considered ministerially as it proposes more than the allowed two residential units. It’s likely ADU/JADUs could be added later if they meet the existing ADU standards, however not with the SB 9 project.

Lots Being Subdivided
Homeowners that split a vacant lot will be allowed to build two new units on each of the two lots, allowing for a total of four units. If there are existing units on the lot, new homes can be added, also resulting in a total of four potential units. Similarly, to lots not being subdivided, each new lot may propose one or two residential units. The homes must conform to local objective rules, as long as those rules allow two 800 sf units on each property.

SB 9 applies in all single-family zoned parcels in Urban Areas, as defined by the US Census Bureau, except for the following:
 Environmental Sensitivity/Environmental Hazards - Properties designated as:
o Prime farmland or farmland of statewide importance
o Wetlands
o Within a very high fire hazard severity zone (with exceptions) o A hazardous waste site (with exceptions)
o Within a delineated earthquake fault zone (with exceptions) o Within a flood zone (with exceptions)
o Identified for conservation or under conservation easement o Habitat for protected species
 Ellis Act Properties where the Ellis Act was used to evict tenants at any time in the last 15 years.
 Historic Properties - Properties located in a state or local historic district, or properties designated historic landmarks.

Other restrictions
 Deed restricted affordable housing and rental housing – SB 9 projects may not demolish housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. Nor is it allowed for housing that is subject to any form of rent or price control through a public entity’s valid 189
3 exercise of its police power. Demolition is also not permitted for housin g that has been occupied by a tenant in the last three years.
 No short-term rentals – Rental terms less than 30 days are not allowed.  Limits on demolition - Projects may not demolish more than 25 percent of existing exterior structural walls unless (a) the property has not been occupied by a tenant for 3 years or (b) otherwise allowed by the jurisdiction.

Urban Lot Split-Specific Rules
 One use - Only one lot split allowed under SB 9, however further splits may be possible under regular subdivision procedures.
 Residential only - The uses on the resulting lots are limited to residential uses.  Approximately equal size - Each new parcel must be "approximately equal" in lot area provided that one parcel shall not be smaller than 40 percent the size of the original parcel  Minimum 1,200 sf parcel - No parcel shall be less than 1,200 square feet. Jurisdictions may by ordinance adopt a smaller minimum lot size subject to ministerial approval.  Intention to occupy - The subdivider must sign an affidavit stating they intend to occupy one of the units for a minimum of three years. The local jurisdiction cannot impose additional owner occupancy standards. Community land trusts and qualified nonprofits are exempted from this requirement.
 Limits on adjacent urban lot spl its - Neither the subdivider nor any person "acting in concert" with the subdivider has previously subdivided an adjacent parcel using an urban lot split. SB 9 does not define what "acting in concert" means or how it would be proven.

Local Agency Criteria
Local agencies may not impose the following;
 Regulation that require right-of-way dedications or construction of off-site improvements  Impose any other owner occupancy in addition to required owner-occupancy affidavit with a lot split.
 Require the correction of nonconforming zoning conditions as a condition of approval  Deny an application solely because it proposes adjacent or connected structures so long as structures meet building code safety standards and are sufficient to allow separate conveyance.

The City may deny a proposed SB 9 project if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project (1) would have a specific, adverse impact upon public health and safety or the physical environment and (2) there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. Hercules would rely on Contra Costa County building officials to determine if a project could be denied.

DISCUSSION

The Planning Commission requested that staff provide to City Council additional clarification on the following items:
 The minimum living area requirement of 150 square feet is as specified for “Efficiency units” by Health and Sa fety Code Section 17958.1 and is the minimum floor area allowed for occupancy by no more than two persons. While staff believes it unlikely that efficiency units would be created under SB 9 provisions, this provision is included in the ordinance because 190
4 the Health and Safety Code requires that cities not limit the number of efficiency units in an area zoned for residential use and located within one-half mile of public transit.  “High-quality transit corridor” is defined in SB 9 as a corridor with fixed route bus service with service intervals no longer than 15 minutes during peak commute hours. The bus routes serving the Hercules Transit Center currently run at approximately 40-minute intervals during peak commute hours and thus do not qualify as “high-quality transit corridors”.  “Major transit stop” means a site containing any of the following:
o An existing rail or bus rapid transit station.
o A ferry terminal served by either a bus or rail transit service. o The intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods.

There are currently no such transit stops in Hercules.

A draft Ordinance (Attachment 1) based on the Planning Commission’s resolution (Attachment 2) is provided for the City Council’s review and consideration.

ATTACHMENTS:

1. Ordinance – Senate Bill 9

2. Planning Commission Resolution No. 22-07

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EXHIBIT A

ORDINANCE NO. 540

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERCULES AMENDING HERCULES MUNICIPAL CODE TITLE 10 ( “LAND USE ”), CHAPTER 2 (“SUBDIVISIONS”) ESTABLISHING REGULATIONS FOR THE SUBDIVISION AND DEVELOPMENT OF QUALIFIED SENATE BILL 9 (SB 9) PROPERTIES AND AMENDING TITLE 13 (“ZONING ORDINANCE”) TO COMPLY WITH SB 9.

WHEREAS, the State of California has declared that a severe housing crisis exists in the state with the demand for housing exceeding the supply; and

WHEREAS, on September 16, 2021, Senate Bill 9 was approved by the Governor of the State of California and filed with the Secretary of State, amending Section 66452.6 of the California Government Code and adding to the Government Code Sections 65852.21 and 66411.7 , allowing additional housing units on properties within single family zones and providing for parcel map approval of an urban lot split; and

WHEREAS, the changes made to the Government Code by Senate Bill 9 took effect January 1, 2022; and

WHEREAS, Sena te Bill 9 requires cities and counties, including the City of Hercules, to ministerially approve a parcel map for an urban lot split and/or a proposed housing development containing a maximum of two residential units within a single -family residential zone, if the two - unit or subdivision project meets certain statutory criteria; and

WHEREAS, state law allows a local agency to adopt an ordinance to implement the provisions in Senate Bill 9; and

WHEREAS, Senate Bill 9 specifically authorizes local agencies to impose objective zoning, subdivision, and design standards consistent with the bill ’s provisions, and to adopt an ordinance implementing its provisions and Senate Bill 9.

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. Under California Government Code Sections 65852.21(j) and 66411.7(n), the adoption of an ordinance implementing the provisions of SB 9 is 192

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statutorily exempt from the requirements of the California Environmental Quality Act.

SECTION 3. AMENDMENTS.

Chapter 10-2.900 “Urban Lot Splits” is hereby added to the Hercules Municipal Code to read in its entirety as follows:

Sec. 10-2.901 Purpose
This Chapter establishes exceptions to the Subdivision Ordinance and Zoning Ordinance and provides permit procedures to allow urban lot splits allowed by Senate Bill No. 9 (2021), as codified in Government Code Section Sections 66452.6 and 66411.7. The provisions of this Chapter shall supersede any other provision to the contrary in the Sub division Ordinance or the Zoning Organization. Subdivision standards provided for in the Subdivision Ordinance that are not affected by this Chapter shall remain in effect.

Sec. 10-2.902 Definitions
Unless otherwise specifically provided, or required by the context, the following terms have the meanings set forth for the purposes of this Section and Section 13-36.

“A person acting in concert with the owner ” means a person that has a common ownership or control of the subject parcel with the owner of the adjacent parcel, a person acting on behalf of, acting for the predominant benefit of, acting on the instructions of, or actively cooperating with, the owner of the parcel being subdivided.

“Adjacent parcel ” means any parcel of land that is (1) touching the parcel at any point; (2) separated from the parcel at any point only by a public right of way, private street or way, or public or private utility, service, or access easement; or (3) separated from anothe r parcel only by other real property which is in common ownership or control of the applicant.

“Sufficient for separate conveyance ” means that each attached or adjacent dwelling unit is constructed in a manner adequate to allow for the separate sale of e ach unit in a common interest development as defined in Civil Code Section 1351 (including a residential condominium, planned development, stock cooperative, or community apartment project) or into any other ownership type in which the dwelling units may be sold individually.

“Two-Unit Development” means a development that proposes no more than two units or proposes to add one new unit to one existing unit and that meets all the criteria and standards set forth in Chapter 13-36.

“Urban lot split ” means a ministerial application for a parcel map to subdivide an existing parcel located within a single -family residential zone into two parcels, as authorized by Section 66411.7 of the Government Code.

Sec. 10-2.902 Applicability
A parcel map for an urban lot split shall be considered ministerially on parcels satisfying all of the 193

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following general requirements:
(a) Zoning District. A parcel that is located within a single-family residential zone. (b) Historic Property. A parcel that is not listed on the City of Hercules Historic Resource Inventory or located in a Historic District.
(c) Legal Parcel. A parcel which has been legally created in compliance with the Subdivision Map Act (Government Code Section 66410 et seq.) a nd Subdivision Ordinance, as applicable at the time the parcel was created. The Community Development Department may require a certificate of compliance to verify conformance with this requirement. (d) Hazardous Waste Site. A parcel that is not identified as a hazardous waste site pursuant to Government Code Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the St ate Department of Public Health, State Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use. (e) Flood Zone. A parcel that is not located within a special flood hazard area subject to inundation by the 1 percent annual chance flood (100 -year flood) on the official maps published by the Federal Emergency Management Agency, unless a Letter of Map Revision prepared by the Federal Emergency Management Agency has been issued or if the proposed primary dwelling unit(s) is constructed in compliance with the provisions of Chapter 21.22 (Flood Damage Prevention) as determined by the floodplain administrator. (f) Earthquake Fault Zone. A parcel that is not located within a delineated earthquake fault zone as deter mined by the State Geologist on any official maps published by the State Geologist, unless the proposed housing development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under th e California Building Standards Law (Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code). (g) Natural Habitat. A parcel that is not recognized by the City as a habitat for protected species identified as candidate, sensitive , or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter

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paved with either concrete or pavers, consistent with the Fire Code as determined by the fire chief.
(c) Lot Lines. The side lines of all parcels, so far as possible, shall be at right angles to streets or radial or approximately radial to curved streets and to center points of cul -de-sac turning circles.
(d) Minimum Lot Size. Each new parcel shall be approximately equal in lot area provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision. In no event shall a new parcel be less than 1,200 square feet in lot area. (e) Minimum lot width. Each new parcel shall ma intain a minimum lot width of 30 -feet. The calculation of lot width for a flag lot shall exclude the access corridor. (f) Minimum Public Frontage. Each new parcel shall have frontage upon a street dedicated as a public street with a minimum frontage dimension of 30-feet, except for flag -lots which shall have a minimum frontage dimension of 12-feet.
(g) Number of Lots. The parcel map to subdivide an existing parcel shall create no more than two new parcels.
(h) Utilities. Parcels created through an urban lot split shall provide for separate utilities. (i) Accessory Dwelling Unit. Accessory Dwelling Units and Junior Accessory Dwelling Units shall not be permitted on parcels resulting from an urban lot split created under the authority contained within this section. Parcels created through an urban lot split which have the effect of separating an existing accessory dwelling unit from the primary dwelling, shall submit concurrently for a new SB 9 primary dwelling unit on the parce l containing only an accessory dwelling unit.

Sec. 10-2.905 General Requirements and Restrictions
The following requirements and restrictions apply to all proposed urban lot splits allowed by this Chapter:
(a) Adjacent Parcels. Neither the owner of the parce l being subdivided nor any person acting in concert with the owner has previously conducted an urban lot split to create an adjacent parcel as provided for in this Chapter.
(b) Dedication and Easements. The Community Development Department shall not require dedications of rights -of-way nor the construction of offsite improvements, however, may require recording of easements necessary for the provision of public services and facilities. (c) Existing Structures. Existing structures or structures constructed in the same location and to the same dimensions as an existing structure, located on a parcel subject to an urban lot split shall not be subject to a setback requirement. However, any such existing structures shall not be located across the shared property line r esulting from an urban lot split, unless the structure is converted to an attached townhome so long as the structures comply with applicable building codes and are sufficient to allow separate conveyance. All other existing structures shall be modified, demolished, or relocated prior to recordation of a parcel map. (d) Intent to Occupy. The owner shall sign and record an affidavit provided by the Community Development Director placing a covenant that will run with the parcel attesting that the applicant intends to occupy one of the newly created parcels as their principal residence for 195

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a minimum of three years from the date of the approval of the urban lot split. The affidavit shall be recorded on the title of the parcel concurrently with recordation of the par cel map.

This requirement shall not apply to an applicant that is “community land trust, ” as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code, or a “qualified nonprofit corpor ation” as described in Section 214.15 of the Revenue and Taxation Code.
(e) Non-Conforming Conditions. The City shall not require, as a condition of approval, the correction of nonconforming zoning conditions. However, no new nonconforming conditions may result from the urban lot split other than as specified by Section 10-2.905(c). (f) Number of Remaining Units. No parcel created through an urban lot split shall be allowed to include more than two existing dwelling units as defined by Government Code section 66411.7(j)(2). Any excess dwelling units that do not meet these requirements shall be relocated, demolished, or otherwise removed prior to approval of a parcel map. (g) Prior Subdivision . A parcel created through a prior urban lot split may not be further subdivided under the provisions of this Chapter. The subdivider shall sign a covenant provided by the Community Development Director documenting this restriction. The convent shall be recorded on the title of each parcel concurrent with recordation of the parcel map.
(h) Restrictions on Demolition. The proposed urban lot split shall not require the demolition or alteration involving removal of more than 25 percent of the existing exterior structural walls of any of the following types of housing:

1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income;

2. Housing that is subject to any form of rent or price control through a public entity ’s valid exercise of its police power;

3. Housing that has been occupied by a tenant in the last three years. (i) Stormwater Management. The subdivision shall comply with the requirements of the City’s National Pollution Discharge Elimination System (NPDES) Permit as implemented by Sec. 5 -8.050 and as demonstrated by a grading and drainage plan prepared by a registered civil engineer.

Sec. 10-2.906 Approval Process
Applications for urban lot splits shall be submitted and processed in compliance with the following requirements:

A. Application Type. An urban lot split shall be submitted to the Community Development Department as a ministerial application for a tentative parcel map.

B. Application Filing. An application for a parcel map for an urban lot split, including the required application materials and filing fee, shall be filed with the Community Development Department in complia nce with Sec. 10 -2.501 (Form and Content of Parcel Map).

C. Referral. The Community Development Director shall refer the parcel map application to the Public Works Director, Fire Chief, and utility agencies for review prior to recordation. 196

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D. Denial. The Commun ity Development Director may deny an urban lot split only if the building official makes a written finding, based upon a preponderance of the evidence, that a proposed housing development located on the proposed new parcels would have a specific, adverse i mpact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

E. Appeals. A decision of the Community Development Director on a parcel map for an urban lot split is a ministerial action and not appealable.

Chapter 13-36 “Two-Unit Development” is hereby added to the Hercules Municipal Code to read in its entirety as follows:

Sec. 13-36.100 Purpose
This Chapter establishes exceptions to the Zoning Ordinance and provides permit procedures to allow Two -Unit Developments within single-family re sidential zone district s allowed by Senate Bill No. 9 (2021), as codified in Government Code Section Sections 66452.6 and 66411.7.

Sec. 13-36.200 Definitions
Unless otherwise specifically provided, or required by the context, the following terms have the meanings set forth for the purposes of this Section and Section 10-2.

“Adjacent parcel ” means any parcel of land that is (1) touching the parcel at any point; (2) separated from the parcel at any point only by a public right of way, private street or way, or public or private utility, servic e, or access easement; or (3) separated from another parcel only by other real property which is in common ownership or control of the applicant.

“Sufficient for separate conveyance ” means that each attached or adjacent dwelling unit is constructed in a manner adequate to allow for the separate sale of each unit in a common interest development as defined in Civil Code Section 1351 (including a residential condominium, planned development, stock cooperative, or community apartment project) or into any other ownership type in which the dwelling units may be sold individually.

“Urban lot split ” means a ministerial application for a parcel map to subdivide an existing parcel located within a single -family residential zone into two pa rcels, as authorized by Section 66411.7 of the Government Code.
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Sec. 13-36.300 Applicability
A proposed housing development may only be created on parcels satisfying all of the following general requirements:

1. Zoning District. A parcel that is located within a single-family residential zone.

2. Historic Property. A parcel that is not listed on the City of Hercules Historic Resource Inventory or located in a Historic District.

3. Legal Parcel. A parcel which has been legally created in compliance with the Subdi vision Map Act (Government Code Section 66410 et seq.) and Subdivision Ordinance, as applicable at the time the parcel was created. The Community Development Department may require a certificate of compliance to verify conformance with this requirement.

4. Hazardous Waste Site. A parcel that is not identified as a hazardous waste site pursuant to Government Code Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the State Department of Public Health, State Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use.

5. Flood Zone. A parcel that is not located within a special flood hazard area subje ct to inundation by the 1 percent annual chance flood (100 -year flood) on the official maps published by the Federal Emergency Management Agency unless a Letter of Map Revision prepared by the Federal Emergency Management Agency has been issued or if the proposed primary dwelling unit(s) is constructed in compliance with the provisions of Sec. 10 -7 (Flood Damage Prevention) as determined by the floodplain administrator.

6. Earthquake Fault Zone. A parcel that is not located within a delineated earthquake faul t zone as determined by the State Geologist on any official maps published by the State Geologist, unless the proposed housing development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law (Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code).

7. Natural Habitat. A parcel that is not recognized by the City as a habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter

1. Building Height/Number of Stories. The maximum building height and maximum number of stories shall be as specified by the applicable zoning district. 198

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2. Lot Coverage. The maximum lot coverage shall be as specified by the applicable zoning district, except if this standard would have the effect of physically precluding the construction of two units or would result in a unit size of less than 800 square feet. Any modifications of development standards shall be the minimum modifications necessary to avoid physically precluding two units of 800 square feet on each parcel.

3. Minimum Living Area. The minimum living area of a primary dwelling unit shall be 150 square feet, subject to the restrictions specified by Health and Safety Code Section 17958.1.

4. Parking. One (1) parking stall per primary dwelling unit shall be required, except for proposed housing developments located on parcels within one-half mile walking distance of either a high -quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code, or within one block of a car share vehicle operating in accordance with California Vehicle Code section 22507.1. Parking stalls may either be uncovered or covered (garage or carport) in compliance with the development standards o f the applicable zoning district and Sec. 13-32. (Off-Street Parking and Loading Facilities)

5. Usable Open Space. Each parcel shall maintain a minimum of 500 square feet of private open space per primary dwelling unit e xcept if this standard would have the e ffect of physically precluding the construction of two units or would result in a unit size of less than 800 square feet. Any modifications of development standards shall be the minimum modifications necessary to avoid physically precluding two units of 80 0 square feet on each parcel.

6. Setbacks. Proposed housing developments shall be subject to the setback and building separation requirements specified by Table 13 -6.1 (Land Use Regulations: Residential District), except no more than 4 feet is required for r ear and interior side setbacks. No setback shall be required for an existing structure, or a structure constructed in the same location and to the same dimensions as an existing structure.

7. Paving. Proposed paving shall be as specified by Sec. 13 -30.750 (P aving Within Residential Front, Rear, and Side Yard Areas.), except to allow a driveway with a width dimension not exceeding ten feet.

Sec 13-36.500 Objective Design Review Standards
The following objective design review standards apply to construction of new primary dwelling units and to any addition and/or alteration to existing primary dwelling units as part of a proposed housing development. Existing features inconsistent with these standards may remain provided they are not altered or removed.

1. Existing Unit Conformity. If the proposed project contains an existing primary dwelling unit, new units shall conform to the design characteristics of the existing residence. A determination of conformity shall be made if the new unit utilizes all of the following features of the existing residence: architectural features, building materials, and paint color.

2. Balconies/Decks. Rooftop terraces and decks are prohibited. Balconies shall only be permitted on the front elevation of a primary dwelling unit(s). 199

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3. Front Doors. Front door openings shall not exceed a width of 6 feet or a height of 9 feet.

Front entry doors for duplex units in a side -by-side configuration shall be separated by a distance equal to half the linear length of the structure’s front elevation.

4. Front Step-back. Second-story wall(s) that front a public street shall be recessed by 5 feet from the first-story exterior walls, as measured wall to wall.

5. Garages. Garages placed on the front elevation of a primary dwelling unit shall not exceed 50% of the linear extent of the front elevation.

6. Stairways. Exposed exterior stairways are prohibited. Stairways necessary to access a dwelling unit located on a second floor shall be entirely enclosed within the structure and shall be included in the allowable floor area of the dwelling unit that it serves.

7. Windows. All second -story windows less than eight feet from rear and interior -side property lines shall be clerestory with the bottom of the glass at least six feet above the finished floor. All other second-story windows shall be limited to the minimum number and minimum size as necessary for egress purposes as required by the Building Code.

8. Landscaping. A hedge, consisting of 15 -gallon minimum evergreen shrubs at maximum 5- foot intervals, shall be planted along th e parcel line (and outside of any easement) adjacent to the wall of the SB 9 dwelling unit that is closest to the parcel line.

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.

THE FOREGOING ORDINANCE was first read at a regular meeting of the Hercules City Council on the 28th day of June 2022, and was passed and adopted at a regular meeting of the Hercules City Council on the 12th day of July 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dion Bailey, Mayor

Lauren Berges
City Clerk
200

HERCULES PLANNING COMMISSION
RESOLUTION NO. 22-07

A RESOLUTION OF THE PLANNING COMMISSION RECOMMENDING THE CITY COUNCIL ADOPT AN ORDINANCE TO IMPLEMENT SENATE BILL NO. 9 (2021), AS CODIFIED IN GOVERNMENT CODE SECTIONS 66452.6 AND 66411.7,

TO REGULATE LOT SPLITS AND TWO -UNIT RESIDENTIAL PROJECTS IN SINGLE-FAMILY RESIDENTIAL (RS) ZONE DISTRICTS.

WHEREAS, the State of Califo rnia has declared a severe housing crisis exists in the state with the demand for housing exceeding the supply; and

WHEREAS, on September 16, 2021, Senate Bill 9 was approved by the Governor of the State of California and filed with the Secretary of State , amending Section 66452.6 of the California Government Code and adding to the Government Code Sections 65852.21 and 66411.7, allowing additional housing units on properties within single family zones and providing for parcel map approval of an urban lot split; and

WHEREAS, the changes made to the Government Code by Senate Bill 9 took e ffect January 1, 2022; and

WHEREAS, Senate Bill 9 requires cities and counties, including the City of Hercules, to ministerially approve a parcel map for an urban lot split and/or a proposed housing development containing a maximum of two residential units within a single -family residential zone, if the two-unit or subdivision project meets certain statutory criteria; and

WHEREAS, state law allows a local agency to adopt an ordinance to implement the provisions in Senate Bill 9; and

WHEREAS, Senate Bill 9 specifically authorizes local agencies to impose objective zoning, subdivision and design standards consistent with the bill’s provisions, and to adopt an ordinance implementing its provisions , and Senate Bill 9 further provides that such ordinances are statutorily exempt under the California Environmental Quality Act (CEQA); and

WHEREAS, on April 12, 2022, the City Council direct ed staff to draft recommendations to amend the Hercules Municipal Code for the purpose of implementing Senate Bill 9 to regulate lot splits and two -unit residential projects in single -family residential (RS) zone districts in a manner that complies with the new state law and is consistent with California government code Sections 65852. 21 and 66411. 7 as amended; and

WHEREAS, on May 16, 2022, the Planning Commission held a duly noticed public hearing to consider these amendments and did hear and use its independent judgment to consider all said reports, recommendations, and testimony hereinabove set forth.

DocuSign Envelope ID: 34FDCF6C-E2D0-4AA7-8C56-6E8A4F3A24C2 201

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.

NOW, THEREFORE, BE IT FURTHER RESOLVED THAT THE PLANNING

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

1. Find that this draft ordinance (Exhibit A hereto) is Statutorily Exempt from CEQA as provided by California Government Code Sections 65852.21(j) and 66411.7(n), which state that th e adoption of an ordinance implementing the provisions of SB 9 is exempt from the requirements of the California Environmental Quality Act.

2. Amend the Hercules Municipal Code and Zoning Ordinance by amending Title 10 (“Land Use”), Chapter 2 (“Subdivisions”) and adding to the Zoning Ordinance (Title 13 of the Hercules Municipal Code) Chapter 13-36, “Two-Unit Housing Development,” as noted by the additions and deletions shown in Exhibit A hereto.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the Planning Commission of the City of Hercules held on the 16th day of May 2022, by the following vote of the Commission:

AYES: Rubio, Morrison, Schaufenbil
NOES: None
ABSTAIN: None
ABSENT: Sacramento

Hector Rubio, Planning Commission Chair

ATTEST:

Timothy Rood
Community Development Director

Exhibit A: Draft Ordinance amending Hercules Municipal Code, Title 10 Chapter 2 and Title 13 Chapter 36
DocuSign Envelope ID: 34FDCF6C-E2D0-4AA7-8C56-6E8A4F3A24C2 202

EXHIBIT A

ORDINANCE NO.

WHEREAS, the State of California has declared that a severe housing crisis exists in the state with the demand for housing exceeding the supply; and

WHEREAS, on September 16, 2021, Senate Bill 9 was approved by the Governor of the State of California and filed with the Secretary of State, amending Section 66452.6 of the California Government Code and adding to the Government Code Sections 65852.21 and 66411.7, allowing additional housing units on properties within single family zones and providing for parcel map approval of an urban lot split; and

WHEREAS, the changes made to the Government Code by Senate Bill 9 took effect January 1, 2022; and

WHEREAS, Senate Bill 9 requires cities and counties, including the City of Hercules, to ministerially approve a parcel map for an urban lot split and/or a proposed housing development containing a maximum of two residential units within a single -family residential zone, if the two - unit or subdivision project meets certain statutory criteria; and

WHEREAS, state law allows a local agency to adopt an ordinance to implement the provisions in Senate Bill 9; and

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. U nder California Government Code Sections 65852.21(j) and 66411.7(n), the adoption of an ordinance implementing the provisions of SB 9 is DocuSign Envelope ID: 34FDCF6C-E2D0-4AA7-8C56-6E8A4F3A24C2 203
statutorily exempt from the requirements of the California Environmental Quality Act.

SECTION 3. AMENDMENTS.

Chapter 10-2.900 “Urban Lot Splits” is hereby added to the Hercules Municipal Code to read in its entirety as follows:

Sec. 10-2.901 Purpose
This Chapter establishes exceptions to the Subdivision Ordinance and Zoning Ordinance and provides permit procedures to allow urban lot splits allowed by Senate Bill No. 9 (2021), as codified in Government Code Section Sections 66452.6 and 66411.7. The provisions of this Chapter shall supersede any other provision to the contrary in the Subdivision Ordinance or the Zoning Organization. Subdivision standards provided for in the Subdivision Ordinance that are not affected by this Chapter shall remain in effect.

Sec. 10-2.902 Definitions
Unless otherwise specifically provided, or required by the context, the following terms have the meanings set forth for the purposes of this Section and Section 13-36.

“Adjacent parcel ” means any parcel of land that is (1) touching the parcel at any point; (2) separated from the parcel at any point only by a public right of way, private street or way, or public or private utility, servic e, or access easement; or (3) separated from another parcel only by other real property which is in common ownership or control of the applicant.

“Sufficient for separate conveyance ” means that each attached or adjacent dwelling unit is constructed in a manner adequate to allow for the separate sale of each unit in a common interest development as defined in Civil Code Section 1351 (including a residential condominium, planned development, stock cooperative, or community apartment project) or into any other ownership type in which the dwelling units may be sold individually.

Sec. 10-2.902 Applicability
A parcel map for an urban lot split shall be considered ministerially on parcels satisfying all of the DocuSign Envelope ID: 34FDCF6C-E2D0-4AA7-8C56-6E8A4F3A24C2 204
following general requirements:
(a) Zoning District. A parcel that is located within a single-family residential zone. (b) Historic Property. A parcel that is not listed on the City of Hercules Historic Resource Inventory or located in a Historic District.
(c) Legal Parcel. A parcel which has been legally created in compliance with the Subdivision Map Act (Government Code Section 66410 et seq.) and Subdivision Ordinance, as applicable at the time the parcel was created. The Community Development Department may require a certificate of compliance to verify conformance with this requirement. (d) Hazardous Waste Site. A parcel that is not identified as a hazardous waste site pursuant to Government Code Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the State Department of Public Health, Sta te Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use. (e) Flood Zone. A parcel that is not located within a special flood hazard area subject to inundation by the 1 percent annual chance flood (100- year flood) on the official maps published by the Federal Emergency Management Agency, unless a Letter of Map Revision prepared by the Federal Emergency Management Agency has been issued or if the proposed primary dwelling unit(s) is constructed in compliance with the provisions of Chapter 21.22 (Flood Damage Prevention) as determined by the floodplain administrator. (f) Earthquake Fault Zone. A parcel that is not located within a delineated earthquake fault zone as determined by the State Geologist on any official maps published by the State Geologist, unless the proposed housing development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law (Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code). (g) Natural Habitat. A parcel that is not recognized by the City as a habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter

1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code)
Sec. 10-2.904 Subdivision Standards
The following objective subdivision standards supersede any other standards to the contrary that may be provided in the Subdivision Ordinance, Zoning Ordinance , or applicable Planned Unit Development as they pertain to creation of an urban lot split under Section 66411.7 of the Government Code.
(a) Subdivision Map Act. The urban lot split shall conform to all applicable objective requirements of the Subdivision Map Act (Division 2 (commencing with Section 66410)), except as otherwise expressly provided in this section. (b) Flag Lots. The access corridor of a flag lot parcel shall be in fee as pa rt of the parcel and shall be of a minimum width of 12- feet and a maximum width of 15- feet and be entirely DocuSign Envelope ID: 34FDCF6C-E2D0-4AA7-8C56-6E8A4F3A24C2 205
paved with either concrete or pavers, consistent with the Fire Code as determined by the fire chief.
(c) Lot Lines. The side lines of all parcels, so far as possible, shall be at right angles to streets or radial or approximately radial to curved streets and to center points of cul -de-sac turning circles.
(d) Minimum Lot Size. Each new parcel shall be approximately equal in lot area provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision. In no event shall a new parcel be less than 1,200 square feet in lot area. (e) Minimum lot width. Each new parcel shall maintain a minimum lot width of 30- feet. The calculation of lot width for a flag lot shall exclude the access corridor. (f) Minimum Public Frontage. Each new parcel shall have frontage upon a street dedicated as a public street with a minimum frontage dimension of 30- feet, except for flag -lots which shall have a minimum frontage dimension of 12-feet.
(g) Number of Lots. The parcel map to subdivide an existing parcel shall create no more than two new parcels.
(h) Utilities. Parcels created through an urban lot split shall provide for separate utilities. (i) Accessory Dwelling Unit. Accessory Dwelling Units and Junior Accessory Dwelling Units shall not be permitted on parcels resulting from an urban lot split created under the authority contained within this section. Parcels created through an urban lot split which have the effect of separating an existing accessory dwelling unit from the primary dwelling, shall submit concurrently for a new SB 9 primary dwelling unit on the parcel containing only an accessory dwelling unit.

Sec. 10-2.905 General Requirements and Restrictions
The following requirements and restrictions apply to all proposed urban lot splits allowed by this Chapter:
(a) Adjacent Parcels. Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously conducted an urban lot split to create an adjacent parcel as provided for in this Chapter.
(b) Dedication and Easements. The Community Development Department shall not require dedications of rights -of-way nor the construction of offsite improvements, however, may require recording of easements necessary for the provision of public services and facilities. (c) Existing Structures. Existing structures or structures constructed in the same location and to the same dimensions as an existing structure, located on a parcel subject to an urban lot split shall not be subject to a setback requirement. However, any such existing structures shall not be located across the shared property line resulting from an urban lot split, unless the structure is converted to an attached townhome so long as the structures comply with applicable building codes and are sufficient to allow separate conveyance. All other existing structures shall be modified, demolished, or relocated prior to recordation of a parcel map. (d) Intent to Occupy. The owner shall sign and record an affidavit provided by the Community Development Director placing a covenant that will run with the parcel attesting that the applicant intends to occupy one of the newly created parcels as their principal residence for DocuSign Envelope ID: 34FDCF6C-E2D0-4AA7-8C56-6E8A4F3A24C2 206
a minimum of three years from the date of the approval of the urban lot split. The affidavit shall be recorded on the title of the parcel concurrently with recordation of the parcel map.

This requirement shall not apply to an applicant that is “ community land trust,” as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code, or a “ qualified nonprofit corporation” as described in Section 214.15 of the Revenue and Taxation Code.
(e) Non-Conforming Conditions. The City shall not require, as a condition of approval, the correction of nonconforming zoning conditions. However, no new nonconforming conditions may result from the urban lot split other than as specified by Section 10-2.905(c). (f) Number of Remaining Units. No parcel created through an urban lot split shall be allowed to include more than two existing dwelling units as defined by Government Code section 66411.7(j)(2). Any excess dwelling units that do not meet these requirements shall be relocated, demolished, or otherwise removed prior to approval of a parcel map. (g) Prior Su bdivision. A parcel created through a prior urban lot split may not be further subdivided under the provisions of this Chapter. The subdivider shall sign a covenant provided by the Community Development D irector documenting this restriction. The convent shall be recorded on the title of each parcel concurrent with recordation of the parcel map.
(h) Restrictions on Demolition. The proposed urban lot split shall not require the demolition or alteration involving removal of more than 25 percent of the existing exterior structural walls of any of the following types of housing:

1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income;

2. Housing that is subject to any form of rent or price control through a public entity’ s valid exercise of its police power;

3. Housing that has been occupied by a tenant in the last three years. (i) Stormwater Management. The subdivision shall comply with the requirements of the City’s National Pollution Discharge Elimination System (NPDES) Permit as implemented by Sec. 5- 8.050 and as demonstrated by a grading and drainage plan prepared by a registered civil engineer.

Sec. 10-2.906 Approval Process
Applications for urban lot splits shall be submitted and processed in compliance with the following requirements:

A. Application Type. An urban lot split shall be submitted to the Community Development Department as a ministerial application for a tentative parcel map.

B. Application Filing. An application for a parcel map for an urban lot split, including the required application materials and filing fee, shall be filed with the Community Development Department in compliance with Se c. 10-2.501 (Form and Content of Parcel Map).

C. Referral. The Community Development Director shall refer the parcel map application to the Public Works Director, Fire Chief, and utility agencies for review prior to recordation.

DocuSign Envelope ID: 34FDCF6C-E2D0-4AA7-8C56-6E8A4F3A24C2 207
D. Denial. The Community Development Director may deny an urban lot split only if the building official makes a written finding, based upon a preponderance of the evidence, that a proposed housing development located on the proposed new parcels would have a specific, adverse impact, as d efined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

E. Appeals. A decision of the Community Development Director on a parcel map for an urban lot split is a ministerial action and not appealable.

Chapter 13-36 “Two-Unit Development” is hereby added to the Hercules Municipal Code to read in its entirety as follows:

Sec. 13-36.100 Purpose
This Chapter establishes exceptions to the Zoning Ordinanc e and provides permit procedures to allow Two -Unit Developments within single-family residential zone districts allowed by Senate Bill No. 9 (2021), as codified in Government Code Section Sections 66452.6 and 66411.7.

Sec. 13-36.200 Definitions
Unless otherwise specifically provided, or required by the context, the following terms have the meanings set forth for the purposes of this Section and Section 10-2.

“Adjacent parcel ” means any parcel of land that is (1) touching the parcel at any point; (2) separated from the parcel at any point only by a public right of way, private street or way, or public or private utility, service, or access easement; or (3) separated from another parcel only by other real property which is in common ownership or control of the applicant.

“Sufficient for separate conveyance ” means that each attached or adjacent dwelling unit is constructed in a manner adequate to allow for the separate sale of each unit in a common interest development as defined in Civil Code Section 1351 (including a residential condominium, planned development, stock cooperative, or community apartment project) or into any other ownership type in which the dwelling units may be sold individually.

DocuSign Envelope ID: 34FDCF6C-E2D0-4AA7-8C56-6E8A4F3A24C2 208

Sec. 13-36.300 Applicability
A proposed housing development may only be created on parcels satisfying all of the following general requirements:

1. Zoning District. A parcel that is located within a single-family residential zone.

2. Historic Property. A parcel that is not listed on the City of Hercules Historic Reso urce Inventory or located in a Historic District.

3. Legal Parcel. A parcel which has been legally created in compliance with the Subdivision Map Act (Government Code Section 66410 et seq.) and Subdivision Ordinance, as applicable at the time the parcel was created. The Community Development Department may require a certificate of compliance to verify conformance with this requirement.

4. Hazardous Waste Site. A parcel that is not identified as a hazardous waste site pursuant to Government Code Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the St ate Department of Public Health, State Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use.

5. Flood Zone. A parcel that is not located within a special flood hazard area subject to inundation by the 1 percent annual chance flood (100- year flood) on the official maps published by the Federal Emergency Management Agency unless a Letter of Map Revision prepared by the Federal Emergency Management Agency has been issued or if the proposed primary dwelling unit(s) is constructed in compliance with the provisions of Sec. 10- 7 (Flood Damage Prevention) as determined by the floodplain administrator.

6. Earthquake Fault Zone. A parcel that is not located within a delineated earthquake fault zone as determined by the State Geologist on any official maps published by the State Geologist, unless the proposed housing development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law (Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code).

1. Building Height/Number of Stories. The maximum building height and maximum number of stories shall be as specified by the applicable zoning district.

DocuSign Envelope ID: 34FDCF6C-E2D0-4AA7-8C56-6E8A4F3A24C2 209

3. Minimum Living Area. The minimum living area of a primary dwelling unit shall be 150 square feet, subject to the restrictions specified by Health and Safety Code Section 17958.1.

4. Parking. One (1) parking stall per primary dwelling unit shall be required, except for proposed housing developments located on parcels within one-half mile walking distance of either a high -quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code, or within one block of a car share vehicle operating in accordance with California Vehicle Code section 22507.1. Parking stalls may either be uncovered or covered (garage or carpor t) in compliance with the development standards of the applicable zoning district and Sec. 13-32. (Off-Street Parking and Loading Facilities)

5. Usable Open Space. Each parcel shall maintain a minimum of 500 square feet of private open space per primary dwell ing unit e xcept if this standard would have the effect of physically precluding the construction of two units or would result in a unit size of less than 800 square feet. Any modifications of development standards shall be the minimum modifications necessary to avoid physically precluding two units of 800 square feet on each parcel.

6. Setbacks. Proposed housing developments shall be subject to the setback and building separation requirements specified by Table 13 -6.1 (Land Use Regulations: Residential District), except no more than 4 feet is required for rear and interior side setbacks. No setback shall be required for an existing structure, or a structure constructed in the same location and to the same dimensions as an existing structure.

7. Paving. Proposed paving shall be as specified by Sec. 13 -30.750 (Paving Within Residential Front, Rear, and Side Yard Areas.), except to allow a driveway with a width dimension not exceeding ten feet.

1. Existing Unit Conformity . If the proposed project contains an existing primary dwelling unit, new units shall conform to the design characteristics of the existing residence. A determination of conformity shall be made if the new unit utilizes all of the following features of the existing residence: architectural features, building materials, and paint color.

2. Balconies/Decks. Rooftop terraces and decks are prohibited. Balconies shall only be permitted on the front elevation of a primary dwelling unit(s).

DocuSign Envelope ID: 34FDCF6C-E2D0-4AA7-8C56-6E8A4F3A24C2 210

3. Front Doors. Front door openings shall not exceed a width of 6 feet or a height of 9 feet.

Front entry doors for duplex units in a side -by-side configuration shall be separated by a distance equal to half the linear length of the structure’s front elevation.

4. Front Step-back. Second-story wall(s) that fro nt a public street shall be recessed by 5 feet from the first-story exterior walls, as measured wall to wall.

5. Garages. Garages placed on the front elevation of a primary dwelling unit shall not exceed 50% of the linear extent of the front elevation.

7. Windows. All second -story windows less than eight feet from rear and interior -side property lines shall be clerestory with the bottom of the glass at least six feet above the finished floor. All other second-story windows shall be limited to the minimum n umber and minimum size as necessary for egress purposes as required by the Building Code.

8. Landscaping. A hedge, consisting of 15- gallon minimum evergreen shrubs at maximum 5- foot intervals, shall be planted along the parcel line (and outside of any easement) adjacent to the wall of the SB 9 dwelling unit that is closest to the parcel line.

THE FOREGOING ORDINANCE was first read at a regular meeting of the Hercules City Council on the ___ day of 2022, and was passed and adopted at a regular meeting of the Hercules City Council on the ____ day of 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dion Bailey, Mayor

Lauren Berges
City Clerk
DocuSign Envelope ID: 34FDCF6C-E2D0-4AA7-8C56-6E8A4F3A24C2 211

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of July 12, 2022

TO: Members of the City Council

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

SUBJECT: Extension of Professional Services Agreement with Doherty Law Group for Legislative Advocacy Services

RECOMMENDED ACTION
Staff recommends that the City Council of the City of Hercules adopt a resolution to extend the Doherty Law Group agreement from April to June 2022 for an additional cost of $18,000.

FISCAL IMPACT OF RECOMMENDATION
The proposed sixth amendment increases the total contract amount under this agreement by $18,000, for a total amount of $222,000.

The General Fund has sufficient available cash balance for the additional cost of this contract amendment.

EXECUTIVE SUMMARY
On October 23, 2019, the City of Hercules retained the services of Doherty Law Group (“Doherty”) to assist the City’s efforts to receive a finding of completion from the State of California regarding certain Successor Agency (formerly known as Hercules Redevelopment Agency) financial obligations. The efforts have not been completed and are Contract Approval
Contract
Approval Date
Authorized
Amount
Original Contract City Manager's Approval 10/23/2019 25,500$ 1st Amendment City Manager's Approval 2/18/2020 18,500$ 2nd Amendment Council Resolution #20-020 4/14/2020 50,000$ 3rd Amendment Council Resolution #21-003 2/9/2021 50,000$ 4th Amendment Council Resolution #21-041 7/13/2021 24,000$ 5th Amendment Council Resolution #21-066 10/12/2021 36,000$ 6th Amendment Recommended 7/12/2022 18,000$
Total 222,000$
212

ongoing, but the City’s funding allocation was exhausted on March 30, 2022. The City Council must allocate $18,000 for additional work or services incurred through June 30, 2022.

BACKGROUND
On October 23, 2019, the City of Hercules retained the services of Doherty Law Group to assist the City’s efforts to receive a finding of completion from the State of California regarding certain Successor Agency financial obligations. Specifically, the City is interested in having the State Department of Finance grant a Finding of Completion (FOC) to the City of Hercules for certain financial obligations incurred by its now defunct Redevelopment Agency.

When granted, the FOC will benefit all local entities including the City, local school districts, and other taxing agencies because it would facilitate refinancing and pre-payment options of existing redevelopment debt that are estimated to generate additional income over the next 20 years (front- loaded in first 5 years) for local public entities ranging from $35 to $42 million dollars with $20 to $25 million going to local public schools, and up to $2 million for local affordable housing development.

This effort will not add cost to the State of California and will help local entities fund existing programs by taking advantage of the historically low cost of credit and financing. The City, last year, concluded that attaining a FOC from the State Department of Finance will require a skilled legislative effort, and retained the Doherty Law Group to manage that task.

DISCUSSION
The Doherty Law Group worked diligently in the fiscal year 2021 to craft a trailer bill for consideration and approval by the State legislature. The due date for the State Budget to be passed was June 15, 2021, and, for most of the last decade, all trailer bills were completed by June 30. While the State legislature passed a budget in June 2021, the Governor has yet to sign it, so the State is running behind its typical schedule. The Legislature continued working on trailer bills in July, August, and September 2021. Due to the pandemic and the tight deadline to submit the proposed language in September, staff and the consultant decided to postpone it to the next meeting in January 2022. However, given the large view approach of the Governor's budget produced each year, Hercules's proposal was not included in the public budget on January 10, 2022.

Doherty Law Group's Contract expired on March 30, 2022. Still, since the City's trailer bill was not included in January 2022, the firm continued to work on the legislative portion of the process to add the City's desired budget item to Senate Budget. The firm worked with the City in hammering out the exact numbers that the State and the City could agree upon.

Staff recommends extending the Doherty agreement thru June 30, 2022, to reimburse the firm for the services incurred through June 2022 for $18,000. This will be the final contract amendment for this effort.

213

ATTACHMENTS:

1. Resolution

2. Original Contract and Amendment Nos: 1, 2, 3, 4 and 5

3. Contract Amendment No. 6

Financial Impact
Description: Doherty Law Group, Lobbyist.

Funding Source: General Fund

Budget Recap:

Total Estimated cost: $18,000 New Revenue: $
Amount Budgeted: $ Lost Revenue: $
New funding required: $ New Personnel: $
Council Policy Change: Yes No

214

1 RESOLUTION NO. 23-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES

APPROVING A FIFTH AMENDMENT TO AN AGREEMENT WITH DOHERTY LAW

GROUP TO PROVIDE LEGISLATIVE ADVOCOCAY SERVICES

WHEREAS, the City Manager entered into an Agreement with Doherty Law Group to provide legislative advocacy services on October 23, 2019, for $25,500; and

WHEREAS, the City Manager approved a First Amendment to said contract on February 18, 2020, to increase the total amount of the Agreement to $44,000; and

WHEREAS, the City Council approved a Second Amendment to said contract on April 14, 2020, to increase the total amount of the Agreement to $94,000; and

WHEREAS, the City Council approved the Third Amendment to said contract on February 9, 2021, to increase the total amount of the Agreement to $144,000; and

WHEREAS, the City Council approved a Fourth Amendment to said contract on July 13, 2021, to increase the total amount of the Agreement to $168,000; and

WHEREAS, the City Council approved a Fifth Amendment to said contract on October 12, 2021, to increase the total amount of the Agreement to $204,000; and

WHEREAS, the City was successful in having SB 1300 introduced by Senator Skinner into the prior session of the State Legislature, and the City wishes to continue pursuit of legislation related to redevelopment dissolution issues in the current legislative session, given the direct benefits to the City; and

WHEREAS, there continues to be the need for legislative advocacy services and the continued use of Doherty Law Group through the proposed Sixth Amendment to increase the not to exceed contract amount to $222,000 and requires City Council approval.

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

215

2 The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 12th of July 2022 by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Dion Bailey, Mayor

ATTEST:

Lauren Berges, City Clerk
216
217
218
219
220
221
222
223
224
225
226
227
228
229
Original Agreement No. 1'1-05"1
Cily Coune/l lf~.soluh°*? ~ . a20-()2./J
AMENDMENT NO. 2 .

Approving a Revised Exhibit B "PAYMENT."

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

Doherty Law Group
121 L Street, Suite 700
Sacramento, CA 95814
(916) 207-7852
Attn: John Doherty
[email protected]
The parties to this Contract Amendment do mutually agree and promise as follows:

2. Purpose. This Amendment No. 2 is being entered into to amend an existing contract between the City and Contractor which was approved by the City Manager of the City of Hercules on October 24, 2019, as amended by Amendment No. 1 dated February 18, 2020. Said contract shall hereinafter be referred to as the "Original Contract" and "Amendment no. l" and are incorporated herein by reference.

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

4. Amendment. This Amendment No. 2 is intended to amend the Original Contract and previously approved amendments (collectively, the "Amended Contract") thereto to provide for additional compensation in an amount not to exceed $50,000, total contract amount $94,000, per a revised Attachment B "PAYMENT" attached.

5. Amendment Approval: This Amendment No. 2 is was approved by the City Council of the City of Hercules on April 14, 2020.

6. Signatures. These signatures attest the parties' agreement hereto:
:ifyotp;~
David Biggs, City Manager
Date: _~ ______ /U.__.......,_/_UJ_U __ _
I I
Approved as to form:

By lf?i\ ..... ,L r; -¥'
Patfick Tang, City Attorney
ctor: Doherty Law Group
Name/Title
Date: sf J c;;3- I [ O
7 Doherty Amendment 2
_____________ [email protected]
230
Attachment B

PAYMENT
City will compensate Consultant through a monthly retainer of $8,500 for the first four month, and $10,000, a month thereafter, not to exceed a total of $94,000. <Jrl,gi1'4 / ~'llln&I"( Nd. 11-dS~
Amo-idmrUJ t No. 2.
~ Co11,,t:il ~'.ult.d1C~N" . .tetJ~0"2()
231
Original Agreement No.19-056
City Council Resolution No. 21-003
Legislative Related Advocacy - Amendment 3
AMENDMENT NO. 3

Approving a Revised Attachment B “PAYMENT.”

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

Doherty Law Group
121 L Street, Suite 700
Sacramento, CA 95814
(916) 207-7852
Attn: John Doherty
[email protected]

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

2. Purpose. This Amendment No. 3 is being entered into to amend an existing contract between the City and Contractor which was approved by the City Manager of the City of Hercules on October 24, 2019, as amended by Amendment s No. 1 dated February 18, 2020 , and Amendment No. 2 dated Said contract shall hereinafter be referred to as the "Original Contract" and “Amendment No. 1” and “Amendment No. 2” and are incorporated herein by reference.

4. Amendment. This Amendment No. 3 is intended to amend the Original Contract and previously approved amendments (collectively, the "Amended Contract") thereto to provide for additional compensation in an amount not to excee d $50,000, total contract amount $144,000, per a revised Attachment B “PAYMENT” attached.

5. Amendment Approval: This Amendment No. 3 was approved by the City Council of the City of Hercules on February 9, 2021.

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

City of Hercules

s/_______________________________
David Biggs, City Manager

Date: ___________________________

Approved as to form:

By ______________________________
Patrick Tang, City Attorney
Doherty Law Group

s/_______________________________

_________________________________
Name/Title

Date: ___________________________

Attachments:

Attachment: Revised Attachment B “PAYMENT”

DocuSign Envelope ID: 1A310C0F-C20C-44E0-BED6-A3CAFCC7553E 2/11/2021
John Doherty
Principal
2/17/2021
DocuSign Envelope ID: 92552999-5D2D-42E1-9FCD-635C284EA552 232
Agreement No. 19-056 - Amendment 3
City Council Resolution No. 21-003
Legislative Related Advocacy

Attachment B

PAYMENT

City will compensate Consultant through a monthly retainer of $8,500 for the first four month, and $10,000, a month thereafter when services are rendered, returning to $8,500 a month starting January 1, 2021, not to exceed a total of $144,000.

DocuSign Envelope ID: 1A310C0F-C20C-44E0-BED6-A3CAFCC7553E DocuSign Envelope ID: 92552999-5D2D-42E1-9FCD-635C284EA552 233
Original Agreement No.19-056
City Council Resolution No. 21-041
Doherty Law Group Amendment No. 4
AMENDMENT NO. 4

Approving a Revised Attachment B “PAYMENT”

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

Doherty Law Group
121 L Street, Suite 700
Sacramento, CA 95814
(916) 207-7852
Attn: John Doherty
[email protected]

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

2. Purpose. This Amendment No. 4 is being entered into to a mend an existing contract between the City and Contractor which was approved by the City Manager of the City of Hercules on October 24, 2019, as amended by Amendments No. 1 dated February 18, 2020 and Amendment No. 2 dated April 14, 2020 by adoption of Resolution 20-020, and Amendment No. 3 dated February 9, 2021 by adoption of Resolution 21 -003. Said contract shall hereinafter be referred to as the "Original Contract" and is incorporated herein by reference.

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

4. Amendment. This Amendment No. 4 is intended to amend the Original Contract and previously approved amendments (collectively, the "Amended Contract") thereto to provide for additional compensation in an amount not to exceed $24,000, total contract amount $168,000.

5. Amendment Approval: This Amendment No. 4 is hereby approved by the City Council of the City of Hercules on this 13th day of July 2021 (Resolution 21-041).

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

City of Hercules

s/_______________________________
Steven Falk, Interim City Manager

Date: ___________________________

Approved as to form:

By ______________________________
Patrick Tang, City Attorney
Doherty Law Group

s/_______________________________
John Doherty, Principal

Date: ___________________________

DocuSign Envelope ID: 92552999-5D2D-42E1-9FCD-635C284EA552 7/26/2021
8/3/2021
234
Original Agreement No. 19-056
City Council Resolution No. ______
Doherty Law Group Amendment No. 5
Legislative Related Advocacy
AMENDMENT NO. 5
Approving a Revised Attachment B “PAYMENT”

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

Doherty Law Group
121 L Street, Suite 700
Sacramento, CA 95814
Attn: John Doherty
(916) 207-7852 / [email protected]
The parties to this Contract Amendment do mutually agree and promise as follows:

2. Purpose. This Amendment No. 5 is being entered into to ame nd an existing contract between the City and C ontractor which was approved by the City Manager of the City of Hercules on October 24, 2019, as amended by Amendments No. 1 dated February 18, 2020 and Amendment No. 2 dated April 14, 2020 by adoption of Resolution 20-020, Amendment No. 3 dated February 9, 2021 by adoption of Resolution 21-003, and Amendment No. 4 dated July 13, 2021 by adoption of Resoluti on 21-041. Said contract shall hereinafter be referred to as the "Original Contract" and is incorporated herein by reference.

3. Original Contract Provisions. The parties hereto agree to continue to abide by those terms and conditions of the Orig inal Contract, and any amendmen ts thereto, which are unaffected by this Contract Amendment Agreement.

4. Amendment. This Amendment No. 5 is intended to amend the Original Contract and previously approved amendments (collectively, the "Amended Cont ract") thereto to provide for additional compensation in an amount not to exceed $36,000, total contract amount $204,000 .

5. Amendment Approval: This Am endment No. 5 is hereby approved by the City Council of the City of Hercules on this 12
th day of October, 2021 (Resolution _______).

6. Signatures. These signature s attest the parties' agreement hereto:

City of Hercules
s/_______________________________
Dante Hall, City Manager
Date: ___________________________
Approved as to form:

By ______________________________
Patrick Tang, City Attorney
Doherty Law Group
s/_______________________________
_________________________________
John Doherty, Principal
Date: ___________________________
Attachments:

Attachment B: Payment
21-066
21-066
DocuSign Envelope ID: 07E83036-685B-4CC1-9C15-AB7BF40E1BA2 10/19/2021
10/19/2021
235
Attachment B

PAYMENT
The City will compensate the Consultant through a reduced monthly retainer of $6,000 a month when services are rendered effective October 1, 2021, and expires March 31, 2022, or six months for additional compensation in an amount not to exceed $36,000, total contract amount ($168,000+$36,000=$204,000).

DocuSign Envelope ID: 07E83036-685B-4CC1-9C15-AB7BF40E1BA2 236
Original Agreement No.19-056
Resolution No._________
Doherty Law Group Amendment No.6
Legislative Related Advocacy
AMENDMENT NO. 6

Approving a Revised Attachment B “PAYMENT”

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

Doherty Law Group
Attn: John Doherty
121 L Street, Suite 700, Sacramento, CA 95814
(916)207-7852/[email protected]

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

2. Purpose. This Amendment No. 6 is being entered into to a mend an existing contract between the City and Co ntractor which was approved by the City Manager of the City of Hercules on October 24, 2019, as amended by Amendment No. 1 dated February 18, 2020, Amendment No. 2 dated April 14, 2020 by adoption of Resolution 20 -020, Amendment N o.3 dated February 9, 2021 by adoption of Resolution 21 -003, Amendment No. 4 dated July 13, 2021 by adoption of Resolution 21 -041, and Amendment No. 5 dated October 12, 2021 by adoption of Resolution 21 -066. Said contract shall hereinafter be referred to as the "Original Contract" and is incorporated herein by reference.

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

4. Amendment. This Amendment No. 6 is intended to amend the Original Contract and previously approved amendments (collectively, the "Amended Contract") thereto to provide for additional compensation in an amount not to exceed $18,000, total contract amount $222,000.

5. Amendment Approval: This Amendment No. 6 is hereby approved by the City Council of the City of Hercules on this 12 day of July, 2022 (Resolution ________).

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

City of Hercules

s/_______________________________
Dante Hall, City Manager

Date: ___________________________
Approved as to form:

By ______________________________
Patrick Tang, City Attorney
Doherty Law Group

s/_______________________________

_________________________________
John Doherty, Principal

Date: ___________________________

DocuSign Envelope ID: 685B40A9-C44A-40BB-927F-70B98C956CF5 6/29/2022
237

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of July 12, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

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

SUBJECT: Update on the Sanitary Sewer Disposal System to be installed by the Developer for the Willow Avenue Self-Storage Project

RECOMMENDED ACTION:

Receive a status update on the public sanitary sewer disposal system to be installed on Willow Avenue by Hercules Self-Storage Management, the Developer for the Self-Storage Project at 1444 Willow Avenue.

FISCAL IMPACT OF RECOMMENDATION:

There is no fiscal impact associated with this update.

DISCUSSION:

At their March 8, 2022 meeting, City Council provided direction to staff authorizing temporary sewer disposal facilities at the new Self-Storage Facility at 1444 Willow Avenue and to enter into negotiations on an amendment to the Development Agreement with Hercules Self -Storage Management that will facilitate the completion of a public system intended to serve all properties in the Willow corridor catchment basin. Negotiation points and other related information is discussed in the staff report (Att #1).

It was originally anticipated that the amendment would be before Council within 4 months; however, additional time is needed. Since the City received the first draft of the amendment on Friday, June 17, staff has completed their first review and is in discussions with the Developer. On a related note, a consultant has been hired by the City to review the lift station plans and that activity will be beginning shortly. At this time it is anticipated that the amendment will be brought back to Council at the Council meeting on August 9.

Attachments:

1. March 8, 2022, Staff Report

238

Financial Impact
Description: None at this time.

Funding Source:

Budget Recap:

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

239

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of March 8, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

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

SUBJECT: Willow Avenue Self-Storage Project – Sanitary Sewer Disposal System

RECOMMENDED ACTION:

Receive a status update on the sanitary sewer disposal system that has yet to be installed by the Developer, provide feedback on staff’s proposed measures to allow the Self-Storage Facility to open in the interim, and authorize staff to enter into negotiations on an amendment to the Development Agreement for Council consideration that will facilitate the completion of a public system intended to serve all properties in the Willow corridor catchment basin.

FISCAL IMPACT OF RECOMMENDATION:

There would be no cost to the City for the Developer, Hercules Self-Storage Management LLC, to install temporary sewer disposal facilities (portable toilets and hand washing stations) to allow their business to open for an interim period and to submit a surety, either a bond or cash deposit for $550K, to provide the City the necessary assurances that the sanitary sewer disposal system will be completed in the future.

Over the last several years, as the challenges involved with installing a stand-alone private system became increasingly apparent, the Developer and City staff have had informal discussions on how a public system could be constructed instead that would ultimately serve all 7 properties in the Willow Corridor. Such a system is estimated to cost approximately $550K. The Developer has indicated they initially intended to spend $300K in collaboration with Valley Bible Church and would be amenable to expending another $150K if they were reimbursed from any future annual revenue stream to the City from the Facility greater than the $150K originally anticipated. In this arrangement, the City could contribute the remaining $100K given the public benefit of providing reliable sewer service to the remaining property owners in the Willow sewer catchment area that would avoid overflows and avoid adverse impacts on public health and safety.

DISCUSSION:

Construction on the Willow Self-Storage Facility is nearing completion. This project was fully entitled in September 2018 (Attachment #1) and consists of 4 buildings with a total of 821 mini- storage units and an office building. With regards to sewer effluent generation, the facilities are required to provide 2 toilets and 3 sinks in the office building. 240

The Self-Storage Facility is located on a 3.4 acre parcel at 1444 Willow Avenue. There is an adjacent 2.9 acre parcel at the same site which is currently vacant. The Developer plans to develop automobile-related services at this second site in the future , which would also be served by the sanitary sewer disposal system.

Currently, there is a private wastewater conveyance system in place that serves properties on the Willow Corridor (Atachment #3). It begins in front of Valley Bible Church, where effluent is conveyed in a gravity main in Willow Avenue onto the Singh (formally Carone) property. From there, a sewer lift station pressurizes the effluent through a short force main to a public gravity main that runs on the Singh property parallel to Willow towards the Hercules Transit Station.

The private system currently serves Valley Bible Church, West Coast Drilling, and Caltrans. It was installed in Willow Avenue (i.e. the old SR-4 highway) before the street was annexed by the City from Caltrans. From the City’s perspective, the lift station is in poor condition, is unreliable, and has had numerous sanitary sewer overflows in the past. The most recent overflow occurred last month when power was lost as the system does not appear to have an overflow alarm or a backup generator. Ownership and maintenance responsibilities have been contentious in the past and the City does not have any records of the facility on file.

Given the private sewer service for the Willow catchment area was considered unreliable, the Developer was required to secure their own sanitary sewer disposal system as a condition to gain their full entitlements. Per Condition of Approval No.2:

Applicant/Developer shall design and construct a sanitary sewer disposal system to the satisfaction of the City Engineer. The system shall comply with City and/or Contra Costa County Department of Environmental Health standards. Applicant/Developer shall secure necessary approvals and easements from private property owners and/or government agencies as required to construct and maint ain the system. Applicant/Developer shall demonstrate the viability of the system to the satisfaction of the City Engineer prior to the issuance of any construction permits for the Project.

In June 2020 the Developer submitted a conceptual plan (Attachment #4) demonstrating the viability of the system, which consisted of a new lift station and piping on the north side of Willow Avenue, opposite the then Carone property (i.e. now Singh property). This option included running a new force main down the length of Willow Avenue to the Hercules Transit Center, which would be very costly, because the Developer was unable to secure rights from Carone to route the forcemain across his property to the point of connection with the public system. Since that time, the Developer has worked with Singh to secure the necessary rights. Due to all the challenges encountered to date, the Developer is now asking the City for relief (Attachment #5).

Given the contentious history of the private lift station, and the Develop er’s and Valley Bible Church’s request for assistance from the City to find a workable solution, staff is recommending a public system be installed in the public right of way similar to what is shown on the conceptual plan. Due to the challenges of the site and requirements for a public lift station (i.e. overflow alarm and standby generation secured in a building), the cost for such a system is estimated to be $550K, 241

which is $250K higher than the $300K originally budgeted by the Developer, who is partner ing on the funding with the Church.

Per the Development Agreement (DA) with Hercules Self-Storage Management LLC (Att #2), the City is entitled to 10% of the gross revenue derived from the “Base Rent” as defined in Section 3.1 of the DA. This obligation for the owner begins 3 years after completion of the mini storage portion of the project or after 90% of the units have been rented, whichever comes first. At the time the DA was agreed upon, this revenue stream was projected to be within $150K - $200K per year. However, based upon current market conditions the Developer now believes the City’s share would be closer to $250K annually. To help bridge the funding gap, one option would be for the Developer to fund an additional $150K for the sewer system up front, then be reimbursed by the City from revenue that exceeds $150K per year in the future.

Lastly, the City could elect to fund the remaining $100K given the system will be sized to serve all the properties in the Willow catchment area, including Caltrans, Singh, and West Coast Drilling. With Council’s authorization, staff is prepared to formally negotiate the terms of such an agreement that would be captured in an Amended Development Agreement that could come back to Council for consideration within 4 months.

In summary form, staff is proposing the following:

Developer

1. Designs and builds sewer lift station facility to Hercules public standards.

2. Funds construction contract cost of the lift station as follows: $300K out of pocket, reimbursed up to an additional $150K by City from future annual revenue to City for the Self-Storage Facility above $150K per year (per DA, revenue to City is 10% of Base Revenue).

3. Secures easements needed across Singh property.

4. Provides interim sanitary sewer facilities on-site (i.e. portable toilets and handwashing facilities)
until new lift station is fully operational.

5. Provides security of cash or bond equivalent to $550K, the anticipated construction cost of the new lift station.

6. Funds all design and project management costs.

City

1. In recognition of public benefit of the facility (i.e. future connections from properties in the vicinity that would need service, avoiding sanitary sewer overflows), contributes $100K to the construction contract cost.

2. For same reason, funds all plan check and inspection costs.

3. Issues a temporary certificate of occupancy until the new system is completed.

4. Reimburses Developer per 2. Above.

5. Owns and maintains new system, once accepted as complete.

This assumes a construction contract cost of $550,000. The Amended Development Agreement would be brought to Council for consideration within 4 months. 242

Financial Impact
Description: None at this time.

Funding Source:

Budget Recap:

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

243

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of July 12, 2022

TO: Members of the City Council

VIA: Dante Hall, City Manager

SUBMITTED BY: Edwin Gato, Director of Finance

SUBJECT: Receive the Finance Commission’s Annual Report on Measures B and C for the Fiscal Year Ending June 30, 2021

RECOMMENDED ACTION: Receive the Finance Commission’s Annual Report on Measures B and C for the Fiscal Year Ending June 30, 2021.

COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION: The Finance Commission recommends that the City Council receive their Fiscal Year Ending June 30, 2021, Annual Report on Measures B and C.

FISCAL IMPACT OF RECOMMENDATION: None as a result of this action, though Measures B and C provide a significant level of revenues in support of the City’s General Fund.

DISCUSSION: The City’s Finance Commission serves as the citizen’s oversight body for Measures B and C, which are voter-approved local sales tax and utility user tax measures respectively. Each year, the Finance Commission undertakes a review of the revenues generated in the prior fiscal year by these Measures as required by the Measures. The Finance Commission review takes place after the City’s independent auditors completed their annual audit and the Agreed-Upon-Procedures (AUP) Report for each measure. The Finance Commission reviewed and approved the annual report on May 18, 2022. A copy of the report is attached for the City Council’s review and receipt.

ATTACHMENT:

1. Finance Commission Annual Report on Measures B and C for the year ended June 30, 2021.

244

City of Hercules

111 Civic Drive
Hercules, CA 94547

Report to City Council on
Measure B and C Revenue
for Fiscal Year 2021

Prepared by Finance Commission
Measure B and Measure C Sub-Committee:

Commissioner Dennis Esselsagoe
Commissioner Edward Ulle

Prepared May 18, 2022

245

City of Hercules Finance Commission
Measure B and Measure C Annual Report
Fiscal Year Ending June 30, 2021

Page 2 of 18 ends

Table of Contents
• Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 • Conclusions
o Measure B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 o Measure C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 • Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 • Reporting Period and Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 • Actions Taken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 • Findings
o Measure B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 o Measure C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 • Effect on General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 • Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 • Appendices
o Appendix 1: Measure “O” Background . . . . . . . . . . . . . . . . . . . . . . . . . . 14 o Appendix 2: Measure “A” Background . . . . . . . . . . . . . . . . . . . . . . . . . . 15 o Appendix 3: Measure “B” and Measure “C” Background . . . . . . . . . . . . 16 o Appendix 4: Finance Commission Background . . . . . . . . . . . . . . . . . . . 17 246

City of Hercules Finance Commission
Measure B and Measure C Annual Report
Fiscal Year Ending June 30, 2021

Page 3 of 18 ends

Purpose
This is the Annual Report by the Finance Commission as the Oversight Committee for Measure B - Transactions and Use Tax Revenues (originally adopted as Measure O in June 2012) and Measure C - Utility Users Tax Rate Revenues (originally adopted as Measure A in June 2013). This report fulfills the Finance Commission requirements specified in City of Hercules Municipal Code to:
● Provide oversight under Title 8 (Finance Revenue and Taxation), Chapter 9 (Temporary Transaction and Use Tax).
● Provide oversight under Title 8 (Finance Revenue and Taxation), Article 4 (Continuation of Increase to Utility Users Tax Rate).

Conclusions
Measure B:

For Fiscal Year ending June 30, 2021, the local add-on half cent (0.50%) transaction and sales tax revenues, approved by Hercules voters, was $1,847,749. These tax revenues were spent in accordance with the voter approved Measure O adopted in June 2012 and subsequently extended by the voter approved Measure B adopted November 2015.

Measure B would retain the half cent (0.50%) add-on until such time as the City Council determines it is no longer necessary.

Henceforth in this document, we will use Measure B to reference this voter approved measure.

Measure C:

For Fiscal Year ending June 30, 2021, the incremental two percent (2%) Utility User Tax (UUT) funds, approved by Hercules voters, was $1,287,687. These funds were spent in accordance with the voter approved Measure A adopted in June 2013 and subsequently extended by the voter approved Measure C adopted November 2015.

The City of Hercules established a UUT of six percent (6%) which will expire on January 1, 2025. In 2013 voters approved measure A which established a two percent (2%) increase to the UUT to a total of eight percent (8%) which would expire in 2018. In 2015 voters approved measure C which would extend the two percent (2%) UUT increase until January 1, 2025.

Henceforth in this document, we will use Measure C to reference this voter approved measures.
247

City of Hercules Finance Commission
Measure B and Measure C Annual Report
Fiscal Year Ending June 30, 2021

Page 4 of 18 ends

Recommendations
● Recommend that the incremental transaction and use tax provided for in Measure B be retained since the City of Hercules has not yet achieved long term financial stability with adequate financial reserves.
● Recommend that the incremental Utility User tax provided for in Measure C be retained since the City of Hercules has not yet achieved long term financial stability with adequate financial reserves.
● Monitoring of revenue from Measures B and C shall be a part of every regularly scheduled meeting of the Finance Commission.

Reporting Period and Scope
This annual report covers the Fiscal Year ending June 30, 2021. This report focuses on the General Fund because it provides the funding for the concerns expressed on the Measure B and Measure C ballot measures.

Actions Taken
The Finance Commission provided Oversight for Measure “B” and Measure “C” by the following actions:

1. The Finance Commission met seven time in 2021, on Feb. 17, Apr. 14, Apr. 28, May 19, May 26, July 21, Nov. 17, and on Mar. 16, 2022 to review various financial reports submitted to the commission by staff. The May 19 meeting included the review of the Finance Subcommittee Report on Measure B & C for FY 2020. The FY 2020 report was presented to the Hercules City Council at their June 8, 2021 meeting. On Mar. 16, 2022 the audited Measure B & C Revenues for FY 2021 were provided to the commission by staff, at which time a subcommittee was formed to prepare this report.

2. Reviewed the Budgets, Financial Reports and variance analyses for the Fiscal Year ending June 30, 2021.

3. Reviewed periodic Long-Term Forecasts and Working Cash Balance reports prepared by City of Hercules Finance staff.

4. Reviewed City of Hercules audited Annual Financial Reports for the fiscal years ending June 30, 2021.

5. Reviewed The Pun Group report on “Independent Accountants’ Report on Applying Agreed-Upon Procedures on Measure B Transactions and Use Tax Revenue” 6.

6. Reviewed The Pun Group report on “Independent Accountants’ Report on Applying Agreed-Upon Procedures on Measure C Utility Users Tax Rate Revenue” 12. 248

City of Hercules Finance Commission
Measure B and Measure C Annual Report
Fiscal Year Ending June 30, 2021

Page 5 of 18 ends

Findings
Measure B:

Measure B Transaction and Use Tax Revenue receipts are summarized as follows:

For Fiscal Year 2021 the tax revenue received for Measure B was $1,847,749. The budgeted tax revenue for Measure B was $1,181,0001. This resulted in a net excess revenue of $666,749.

Fiscal Year
(Ending June 30)
Actual Received Per General Ledger
20142 $952,255
20152 $863,323
20163 $1,181,605
20173 $1,130,251
20183 $1,275,479
20194 $1,403,874
20205 $1,473,913
20216 $1,847,749

249

City of Hercules Finance Commission
Measure B and Measure C Annual Report
Fiscal Year Ending June 30, 2021

Page 6 of 18 ends

Transaction and Use Tax revenue received in Fiscal Year 2021 under Measure B has been properly collected and paid into the General Fund as required per Ordinance 470 Section

8.9.12 “Use of Tax Proceeds” which states that “All proceeds of the tax levied and imposed under this Article shall be paid into the general fund for use by the City of Hercules.” This conclusion is based on the Finance Commission’s review of the City’s audited Annual Financial Reports, the Quarterly Financial Statements, and The Pun Group report on “Independent Accountants’ Report on Applying Agreed-Upon Procedures on Measure B Transactions and Use Tax Revenue” - January 19, 2022, which states that “Proceeds of taxes levied and confirmed under Measure B were paid into the City’s General Fund for use by the City with no exceptions”.

Measure C:

Measure C Utility Users Tax (UUT) Rate Revenues are summarized as follows:

For Fiscal Year 2021 the tax revenue received for Measure C was $1,287,687. The budgeted tax revenue for Measure C was $1,263,5001. This resulted in a net excess revenue of $24,187.

Fiscal Year
(Ending June 30)
Actual UUT w/
Measure C
Estimated UUT
w/o Measure C
Increase in
Revenue due
to Measure C
20147 $3,182,013 $2,201,950 $980,063
20157 $3,439,914 $2,163,601 $1,276,313
20168 $3,515,565 $2,224,000 $1,291,565
20179 $3,576,053 $2,306,607 $1,269,446
20189 $3,642,120 $2,310,030 $1,332,091
201910 $3,502,264 $2,219,720 $1,282,545
202011 $3,483,843 $2,200,886 $1,282,957
202112 $3,590,649 $2,302,961 $1,287,687

250

City of Hercules Finance Commission
Measure B and Measure C Annual Report
Fiscal Year Ending June 30, 2021

Page 7 of 18 ends

Utility Users Tax revenue received under Measure C has been properly collected and paid into the General Fund per Ordinance 481, Section 8-8.402 “Use of Additional Tax Proceeds” which states that “All proceeds of the tax levied and imposed under this Article shall be paid into the general fund fo r use by the City of Hercules”. This conclusion is based on the Finance Commission’s review of the City’s audited Annual Financial Report for the Fiscal Year ending June 30, 2021, and The Pun Group report on ““Independent Accountants’ Report on Applying Agreed-Upon Procedures on Measure C Utility Users Tax Rate Revenue” – January 19, 2022. 251

City of Hercules Finance Commission
Measure B and Measure C Annual Report
Fiscal Year Ending June 30, 2021

Page 8 of 18 ends

Effect on General Fund
The General Fund had a net increase in Fiscal Years ending June 30, 2014-June 30, 2019 as shown by the Annual Reports for each respective year. However, for Fiscal Year ending June 30, 2020 the General Fund had a net decrease, primarily due to the DOF Settlement of $1,812,075. For Fiscal Year ending June 30, 2021 the General Fund had a net surplus of $2,327,475 of which $766,219 was transferred, reducing the surplus to $1,561,256. $150,000 was received due to AB 3229 COPS grant for Public Safety, ($312,194) was transferred out for debt service payment for Suntrust Lease and for 2020 Library Lease Revenue Bond, and ($604,025) was transferred out for Department of Finance Due Diligence Review Annual Settlement payment.

Fiscal Year General Fund
Revenue13
General Fund
Expenses13
(Deficit) / Surplus
2014 $12,638,059 $11,200,782 $1,437,277
2015 $13,573,615 $10,213,252 $3,360,363
2016 $14,018,112 $11,046,540 $2,971,572
2017 $14,859,520 $11,784,637 $3,074,883
2018 $16,490,956 $12,929,170 $3,561,786
2019 $17,563,562 $14,615,734 $2,947,828
2020 $16,706,848 $18,541,346 ($1,834,498)
2021 $16,463,953 $14,136,478 $2,327,475

Measure B and Measure C revenues increased revenue to the General Fund starting in Fiscal Year 2014.
252

City of Hercules Finance Commission
Measure B and Measure C Annual Report
Fiscal Year Ending June 30, 2021

Page 9 of 18 ends

The following is a summary for the fiscal years ending June 30, 2014 through June 30, 2021:

Fiscal Year
Revenue Source
General Fund Measure B Measure C Total
2014 $10,844,803 $952,256 $841,000 $12,638,059
2015 $11,588,959 $863,323 $1,121,333 $13,573,615
2016 $11,544,942 $1,181,605 $1,291,565 $14,018,112
2017 $12,459,823 $1,130,251 $1,269,446 $14,859,520
2018 $13,883,386 $1,275,479 $1,332,091 $16,490,956
2019 $14,827,597 $1,403,874 $1,332,091 $17,563,562
2020 $13,949,978 $1,473,913 $1,282,957 $16,706,848
2021 $13,328,517 $1,847,749 $1,287,687 $16,463,953

Fiscal Year
Revenue Source
General Fund Measure B Measure C Total
2014 85.8% 7.5% 6.7% 100%
2015 85.4% 6.4% 8.3% 100%
2016 82.4% 8.4% 9.2% 100%
2017 83.9% 7.6% 8.5% 100%
2018 84.2% 7.7% 8.1% 100%
2019 84.4% 8.0% 7.6% 100%
2020 83.5% 8.8% 7.7% 100%
2021 81.0% 11.2% 7.8% 100%
253

City of Hercules Finance Commission
Measure B and Measure C Annual Report
Fiscal Year Ending June 30, 2021

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Without the Measure B or Measure C revenues, the City would have had a deficit in Fiscal Year 2014 and would have had much smaller surpluses for the Fiscal Years 2015 through 2019 and a deficit for Fiscal Years 2020 and 2021.

The following is a summary for Fiscal Years ending June 30, 2014 to June 30, 2021 if Measure B and C Revenues were excluded.

Fiscal Year Revenue
(excluding Measures B & C)
Expenditures (Deficit) / Surplus
2014 $10,844,803 $11,200,782 $(355,979)
2015 $11,588,959 $10,213,252 $1,375,707
2016 $11,544,942 $11,046,540 $498,402
2017 $12,459,823 $11,784,637 $675,186
2018 $13,883,386 $12,929,170 $954,216
2019 $14,827,597 $14,615,734 $211,863
2020 $13,949,978 $18,541,346 ($4,591,368)
2021 $13,328,517 $14,136,478 ($807,961)

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The General Fund is used to account for all revenue and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as police, planning, engineering, public works, operations and maintenance, and legal and administrative services.

The General Fund provides the funding for the issues expressed in the Measure “O” and Measure “A” ballot language:

1. Measure O (MeasureB): "Local Temporary Emergency Funding Measure. To address Hercules' Fiscal Emergency, stabilize city finances, offset budget shortfalls/the impact of State budget cuts on local services, prevent reductions to the number of police officers/crime investigators, protect/maintain crime prevention, childcare, youth sports and recreation programs and other general City services, shall the City of Hercules establish a 1/2 cent sales tax legally ending after 4 years, with Independent Citizens' Oversight, Independent Audits and no money for Sacramento?”

2. Measure A (Measure C): “City of Hercules Fiscal Accountability/Services Protection Measure. To restore Hercules to financial stability, enhance fiscal accountability, continue to maintain our own local Police Department, and prevent drastic cuts to neighborhood police officers, youth/senior programs, and other services, shall Hercules modernize its utility users tax with equal treatment of taxpayers regardless of technology, increase the rate by 2% for 5 years, maintain current low-income exemptions, with citizens’ oversight, independent audits, and local control of revenues.” Based on the impartial ballot analysis by the City Attorney, Measure “O” did not limit use of Measure “O” funding to a specific purpose:
“Because Measure O does not limit the use of tax revenue to a specific purpose, the proposed tax is a general tax, requiring a majority vote (approval by more than fifty percent (50%) of City voters voting in the election) for passage. Therefore, the City shall use the funds for a variety of purposes, including but not limited to addressing the City's Fiscal Emergency; increasing police officer staffing, which is below Recommended Safety Levels; maintaining cur rent levels of emergency services; providing additional funding for neighborhood police patrols, emergency response times, crime prevention and investigation resources; earthquake preparedness; after-school programs for children and teens; senior services; and parks.”
Based on the impartial ballot analysis by the City Attorney, Measure “A” did not limit the Measure “A” funding to a specific purpose:
“Because Measure A does not limit the use of tax revenue to a specific purpose, the City may use the funds for a variety of purposes, including but not limited to maintaining financial stability and accountability; maintaining the Hercules Police Department; 255

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maintaining neighborhood police patrols, improving 9-1-1 response times; expanding neighborhood crime prevention programs; attracting business to Hercules; and preventing cuts to street maintenance.”
The City of Hercules balance in the Fiscal Neutrality Fund is $4,034,517 for Fiscal Year 2021 as reported in the 2020-2021 Annual Comprehensive Report, page 98.

Finance Commission Members:

Andrew Gabriel, Chair
Edward Ulle, Vice-Chair
Dennis Esselsagoe
Lori Risby
Orit Sampson
Report approved by the Finance Commission on May 18, 2022 256

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References

1. Fiscal Year 2020-21 Annual Budget Pg. 87 (Measure O)

2. Fiscal Year 2014 and Fiscal Year 2015 were based on Gallina, LLP reports on Agreed Upon Procedures – Measure B for the periods July 1, 2012 through June 30, 2015

3. For periods July 1, 2016 through June 30, 2018 were based on CliftonLarsonAllen, LLP report on Agreed Upon Procedures – Measure O for the period ending June 30, 2016 and Agreed Upon Procedures- Measure B for the period ending June 30, 2017 and June 30, 2018.

4. For period July 1, 2018 through June 30, 2019 is based on CliftonLarsonAllen, LLP report “Measure B – Transaction and Use Tax Revenues, Agreed-Upon Procedures”, November 21, 2019.

5. For period July 1, 2019 through June 30, 2020 is based on The Pun Group report on Independent Accountants’ Report On Applying Agreed-Upon Procedures – Measure B for the period ending June 30, 2020

6. For period July 1, 2020 through June 30, 2021 is based on The Pun Group report on “Independent Accountants’ Report on Applying Agreed-Upon Procedures on Measure B Transactions and Use Tax Revenue” - January 19, 2022

7. For the periods July 1, 2013 through June 30, 2015 based on Gallina LLP’s reports on Agreed Upon Procedures for Measure A

8. For FY 2016 the CliftonLarsonAllen, LLP’s report “Agreed-Upon Procedures Measure A – Utility Users Tax Rate Revenues, June 30, 2016“

9. For FY 2017 and 2018 “Agreed Upon Procedures Measure C- Utility Users Tax Rate Revenues, June 30, 2017 and June 30, 2018”

10. For period July 1, 2018 through June 30, 2019 is based on CliftonLarsonAllen, LLP report on Agreed Upon Procedures – Measure C for the period ending June 30, 2019

11. For period July 1, 2019 through June 30, 2020 is based on The Pun Group report on Independent Accountants’ Report On Applying Agreed-Upon Procedures – Measure C for the period ending June 30, 2020

12. For period July 1, 2020 through June 30, 2021 is based on The Pun Group report on “Independent Accountants’ Report on Applying Agreed-Upon Procedures on Measure C Utility Users Tax Rate Revenue” – January 19, 2022

13. Audited Year End Results, including transfer to reserves and outstanding encumbrances.

14. Fiscal Year 2020-2021 Annual Budget page 31

15. General Fund Audited Results for FY 2021
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Appendix 1: Measure “O” Background
On July 24, 2012, Measure O, “Transactions and Use Tax Revenues” was passed by a majority vote of the City of Hercules and the Hercules City Council passed and adopted Ordinance 470 amending the Hercules Municipal Code by establishing a four year temporary transactions and use tax of 0.50% to be administered by the State Board of Equal ization.

Per Section 8.9.13 of Ordinance 470:
“The Finance Commission, created pursuant to Title 2, Chapter 2, Article 6, shall meet pursuant to Section 2-2.607 to oversee expenditures of the revenues received by the City from the sales and use taxes imposed pursuant to this Chapter, and to ensure that tax revenues are spent by the City in a manner consistent with the voter approved measure adopting this Chapter as well as any voter approved or Council approved priorities adopted to implement the provisions of this Chapter. (Ord. 528 § 1 (part), 2020: Ord. 488 § 1 (part), 2015: Ord. 481 § 3 (part), 2014: Ord. 470 § 2 (part), 2012)”
Per Section 8-9.14 paragraph (a) of Ordinance 470:
(a) The Commission is charged with the following responsibilities: (1) reviewing all appropriations of revenues received by the City from the sales and use taxes imposed pursuant to the provisions of this Chapter to determine whether such funds are to be used as provided for in this Chapter and the voter approved measure that adopted this Chapter; (2) reviewing the audit prepared by an independent auditor retained by the City to perform the City’s Comprehensive Annual Financial Report to determine whether such funds have been spent as provided for in this Chapter and the voter approved measure; (3) prepare and issue the Commission’s own annual report setting forth their findings in regard to the foregoing; and (4) determining when the City has met its goal of achieving long term financial stability with adequate financial reserves, and issuing a report to Council detailing such findings, pursuant to Sec. 8-9.01(d).

(b) The Commission shall, for the purpose of fulfilling oversight responsibilities pursuant to Measure O, confine itself specifically to funds received by the City from the sales and use taxes imposed pursuant to the provisions of this Chapter.

(c) In order to preserve the integrity and independence of the oversight process, Commission members will not play a formal role in decision -making on spending priorities, financing plans, or tax rate projections or assumptions. (Ord. 488 § 1 (part), 2015: Ord. 481 § 3 (part), 2014:

Ord. 470 § 2 (part), 2012. Formerly 8-9.17)

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On August 20, 2014, the Measure O Citizen’s Oversight Committee approved the Measure O Annual Report for the Fiscal Year 2013 (July 1, 2012 to June 30, 2013). 259

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Appendix 2: Measure “A” Background
On June 4, 2013, Measure A “Utility Users Tax Rate Revenues” was passed by a majority vote of the City of Hercules and the Hercules City Council passed and adopted Ordinance 475 modernizing Title 8, Chapter 8 of the Hercules Municipal Code with respect to the existing 6% Utility Users Tax, and establishing a five year temporary increase of 2% to the Utility Users Tax. The Ordinance established citizens’ oversight with the existing Citizens Finance Advisory Committee (which became the Citizen’s Finance Commission) appointed by the Hercules City Council.

Per Section 8-8.404 of Ordinance 475,:

The Finance Commission, created pursuant to Title 2, Chapter 2, Article 6, or a subcommittee of the Commission established for this purpose, shall meet pursuant to Section 2-2.607 and review all revenues and expenditures under this Chapter in order to ensure that the funds are spent in accordance with the voter approved measure adopting this Chapter as well as any voter approved or Council approved priorities adopted to implement the provisions of this Chapter. (Ord. 528 § 1 (part), 2020: Ord. 489 § 1 (part), 2015: Ord. 481 § 2 (part), 2014: Ord. 475 § 1 (part), 2013)
Per Section 8-8.406 of Ordinance 475:
(a) The Commission is charged with the following responsibilities: (1) reviewing all appropriations of revenues received by the City from the sales and use taxes imposed pursuant to the provisions of this Chapter to determine whether such funds are to be u sed as provided for in this Chapter and the voter approved measure that adopted this Chapter; (2) reviewing the audit prepared by an independent auditor retained by the City to perform the City’s Comprehensive Annual Financial Report to determine whether such funds have been spent as provided for in this Chapter and the voter approved measure; (3) prepare and issue the Commission’s own annual report setting forth their findings in regard to the foregoing; and (4) determining when the City has met its goal of achieving long term financial stability with adequate financial reserves, and issuing a report to Council detailing such findings, pursuant to Section 8-8.409.

(b) In order to preserve the integrity and independence of the oversight process, Commission members will not play a formal role in contracting, project management, construction, or any other aspect of the funding. In addition, the Commission is not charged with decision -making on spending priorities, construction schedules, project details, fun ding source decisions (e.g., leveraged funds, developer fees, etc.), financing plans, tax rate assumptions, or selection of consultants, design, and construction firms. (Ord. 489 § 1 (part), 2015: Ord. 481 § 2 (part), 2014: Ord. 475 § 1 (part), 2013)
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Appendix 3: Measure “B” and Measure “C” Background
On July 28, 2015 the Hercules City Council unanimously approved placing the City of Hercules Financial Stability and Essential Services Continuation Measures, on the November 3, 2015 ballot to protect and maintain essential city services and fiscal stability.

On November 3, 2015, Measure B, “Transactions and Use Tax Revenues” was passed by a majority vote of the City of Hercules. Measure B extends indefinitely the Measure “O” half-cent per dollar local sales tax previously scheduled to end in 2016.

Measure B states, “Whereas the tax extension would be in effect until the Finance Commission finds, and the City Council approves by a 2/3 vote, that the City has achieved long term financial stability with adequat e financial reserves.” On November 3, 2015, Measure C “Utility Users Tax Rate Revenues” was passed by a majority vote of the City of Hercules. Measure C extends the Measure “A” 2 percent utility user’s tax that was previously scheduled to sunset in 2018, now scheduled to sunset in 2025.

Measure C states, “Measure C would extend the 2013 voter approved two percent (2%) UUT increase. If adopted, Measure C would make the eight percent (8%) total rate effective until January 1, 2025. The City Council could terminate the two percent (2%) increase at any time before January 1, 2025 and reduce the total UUT rate to six percent (6%) either on its own initiative or at the recommendation of the City’s Finance Commission upon a determination that the addition al two percent (2%) increase provide for in Measure C is no longer necessary because the City has met its goal of achieving long term financial stability with adequate financial reserves.”
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Appendix 4: Finance Commission Background
On November 23, 2014, the Hercules City Council passed and adopted Ordinance 481 amending the Hercules Municipal Code as follows:

1. Added Title 2, article 6, Section 202.601 through Section 2-2.609 to create the Finance Commission.

2. Amended Title 8, Chapter 8, Article 4, to provide for the Finance Commission oversight of Measure A, “Utility Users Tax Rate Revenues”

3. Amended Title 8, Chapter 8, Article 9, to provide for the Finance Commission oversight of Measure O, “Transactions and Use Tax Revenues”
Per Section 2.2.609 of Ordinance 481:

The Finance Commission shall be advisory to the City Council with no authority to direct staff, and shall have the following duties:
(a) Quarterly review of City’s financial status; review and comment on audit reports; review and comment on the proposed budget; and review and comment on items of extraordinary financial impact.
(b) Make recommendations to the City Council with respect to budget priorities. (c) Review and comment on the City’s annual operating and capital improvement budgets. (d) Advise the City Council on matters of policy and public interest related to the management of the City’s finances and budget.
(e) Serve as the Oversight Committee for Measure “A,” including providing an annual report, to ensure that utility user tax funds are spent in accordance with the voter approved measure adopted in June 2013.
(f) Serve as the Oversight Committee for Measure “O,” including providing an annual report, to ensure that the sales tax revenues approved by Hercules voters are spent in accordance with the voter approved measure adopted in June 2012.
(g) Take on any additional review and advisory functions assigned by the City Council by duly adopted resolution. (Ord. 519 § 2 (part), 2019: Ord. 481 § 1 (part), 2014) 262

Hercules City CouncilJuly 12, 2022

Hercules City Council
July 12, 2022