Agenda Packet — Hercules City Council, May 9, 2023

Tuesday, May 9, 2023
7:00 PM
City of Hercules
111 Civic Drive
Hercules, CA 94547
City Council
Mayor Alex Walker-Griffin
Vice Mayor Dan Romero
Council Member Dion Bailey
Council Member Chris Kelley
Council Member Tiffany Grimsley
Dante Hall, City Manager
Patrick Tang, City Attorney
Eibleis Melendez, Acting City Clerk
Meeting Agenda
In-Person in Council Chambers or
Zoom ID: 829 9644 6400
Zoom Passcode: 121619
Zoom Phone Number: 1-669-444-9171
1 May 9, 2023City Council Meeting Agenda
See last pages of agenda for information regarding meeting procedures To view webcast of meetings, live or on demand, go to the City's website at www.ci.hercules.ca.us I. CLOSED SESSION – CALL TO ORDER - ROLL CALL

NO CLOSED SESSION
II.

PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
NONE
III. CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:

NO CLOSED SESSION
IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL [7:00P.M] V. A. REPORT ON ACTION TAKEN IN CLOSED SESSION-

NO CLOSED SESSION
B. CONSIDER AND TAKE ACTION ON ANY REQUEST FROM A COUNCIL MEMBER TO

PARTICIPATE IN A MEETING REMOTELY DUE TO JUST CAUSE OR EMERGENCY CIRCUMSTANCES PURSUANT TO AB 2449
VI. PLEDGE OF ALLEGIANCE
VII. MOMENT OF SILENCE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 22-532
Asian American and Pacific Islander Heritage Month Proclamation Proclamation - Asian American and Pacific Islander Heritage Month 2023Attachments:

2. 22-533 Jewish American Heritage Month Proclamation
Proclamation - Jewish American Heritage Month 2023Attachments:

IX.

AGENDA ADDITIONS/DELETIONS

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2 May 9, 2023City Council Meeting Agenda
X. PUBLIC COMMUNICATIONS
This time is reserved for members of the public to address issues not included in the agenda. In accordance with the Brown Act, Council will refer to staff any matters brought before them at this time, and those matters may be placed on a future agenda.

Individuals wishing to address the City Council are asked to complete a form indicating the name and address of the speaker and the general topic to be addressed. Speakers must make their comments from the podium and will be allowed 3 minutes to discuss their concerns. All public comments are recorded and become part of the public record. A limit of 30 minutes will be devoted to taking public comment at this point in the agenda. If any speakers remain at the conclusion of the initial 30 minute period, time will be reserved at the conclusion of the meeting to take the remaining comments.

XI.

PUBLIC HEARINGS

1. 22-527 Membership in Marin Clean Energy
RECOMMENDATION:

1. Receive a report from City staff;

2. Ask any questions of City or MCE staff;

3. Take public comment;

4. Approve a Resolution Requesting Membership in MCE authorizing the Mayor to execute the Memorandum of Understanding with Marin Clean Energy, and authorizing the City Manager, or designee, to execute other documents to initiate membership in Marin Clean Energy; and

5. Approve the first reading of an Ordinance approving the Marin Clean Energy joint powers agreement and authorizing the implementation of a community choice aggregation program.
00Staff Report - MCE
Attach 1 - Resolution Requesting Membership in MCE
Attach 1- Exhibit 1 - MOU with MCE
Attach 1- Exhibit 2 - PG&E Load Data Forms
Attach 2 - Ordinance Approving MCE JPA
Attachments:

XII.

CONSENT CALENDAR

1. 22-522 Meeting Minutes for the Regular Meeting on April 25, 2023 Meeting Minutes for the Regular Meeting on April 25, 2023Attachments:

2. 22-521 Accept the Investment Report for the Quarter Ending March 31, 2023 RECOMMENDATION: Accept the Investment Report for the Quarter Ending March 31, 2023
Staff Report - Investment Quarterly Report Ending 03-31-2023 Attach 1 - Investment Report for Quarter Ending March 31, 2023 Attachments:

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3 May 9, 2023City Council Meeting Agenda

3. 22-523 Quarterly Review of Future Agenda Items
Staff Report - Quarterly Review of Future Agenda Items
Attach 1 - Future Agenda Items List
Attachments:

5. 22-525 Adoption of a List of Projects for Fiscal Year 2023-24 funded by SB 1:
the Road Repair and Accountability Act of 2017
RECOMMENDATION: Adopt a resolution adopting a list of projects for Fiscal Year 2023-24 funded by SB 1: the Road Repair and Accountability Act of 2017.

Staff Report - SB1 FY 23-24
Attach 1 - SB1 FY 23-24
Attachments:

6. 22-530 Authorize Display of Pride Month Commemorative Flag RECOMMENDATION: Approve Display of Commemorative Flag for the month of June - Pride Month
Staff Report - Pride Flag Display for Month of June
Attachment - Flag Policy #16
Attachments:

7. 22-531 Authorize Display of Juneteenth Commemorative Flag RECOMMENDATION: Approve Display of Juneteenth Commemorative Flag from June 17th through June 24th
Staff Report - Juneteenth Flag Display
Attach 1 - Flag Policy #16
Attachments:

XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-528 EVCS Site Host Agreement
RECOMMENDATION:

1. Receive a report from staff regarding a Site Host Agreement for EV Charging services at the Hercules Civic Center and Hercules Community Swim Center;

2. Ask any questions;

3. Take public comment; and

4. Approve a resolution authorizing the City Manager to execute a Site Host Agreement with EVCS
Staff Report - EVCS Site Host Agreement
Attach 1 - Resolution - EVCS Site Host Agreement
Attach 2 - EVCS Site Host Agreement
Attachments:

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4 May 9, 2023City Council Meeting Agenda

2. 22-529 Update on the Hercules Police Department
RECOMMENDATION: Receive an update on the Hercules Police Department
Staff Report - Hercules PD Annual Report 2022
Presentation - Hercules Police Department Review
Attachments:

3. 22-526 Consider and Approve an Amendment to Extend the Trailer Acquisition and Lease Agreement with the Hercules Historical Society (HHS)
RECOMMENDATION: Adopt a Resolution authorizing the City Manager to execute an amendment to the Trailer Acquisition and Lease Agreement between the City of Hercules and the Hercules Historical Society (HHS), to continue the lease for an additional five (5) years with an option for a five (5) year extension. A lease provision providing for payment by HHS of an annual amount of $100 to cover utility costs is included as an option for Council to consider.

Staff Report - Historical Society Trailer Lease Extension Attach 1 - Feb.14, 2023 Staff Report(with prior attach. 1-4, 20pgs) Attach 2 - February 2023 Interim Month-to-Month Lease HHS Attach 3 - Revised Proposed First Amendment to the 2013 Agreement Attach 4 - Resolution Authorizing Amendment to the Agreement Between City of Hercules and HHS Attachments:

XIV.

PUBLIC COMMUNICATIONS
This time is reserved for members of the public who were unavailable to attend the Public Communications period during Section X of the meeting, or were unable to speak due to lack of time. The public speaker requirements specified in Section X of this Agenda apply to this Section.

XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

AND FUTURE AGENDA ITEMS
This is the time for brief announcements on issues of interest to the community. In accordance with the provisions of the Brown Act, matters which do not appear on this agenda but require City Council discussion may be either (a) referred to staff or other resources for factual information or (b) placed on a future meeting agenda.

1. Regional Committees

2. City Council Committees and Subcommittees

3. Commission Liaisons

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5 May 9, 2023City Council Meeting Agenda
XVI.

ADJOURNMENT
The next Regular Meeting of the City Council will be held on Tuesday, May 23, 2023 at 7:00p.m. in the Council Chambers.

Agendas are posted in accordance with Government Code Section 54954.2(a) or Section 54956.

Members of the public can view electronic agendas and staff reports by accessing the City website at www.ci.hercules.ca.us and can receive e-mail notification of agenda and staff report postings by signing up to receive an enotice from the City’s homepage. Agendas and staff reports may also be obtained by contacting the City Clerk's Office at (510) 799-8208 (Posted: May 4, 2023)

INSTRUCTIONS ON HOW TO PARTICIPATE AND WATCH THE HERCULES CITY COUNCIL AND PLANNING

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

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6 May 9, 2023City Council Meeting Agenda
How to Submit Public Comments
In Person: Attend meeting at the Hercules City Council Chambers, fill out a public speaker card located on the side table and submit it to the City Clerk.

Via Zoom: Members of the public may submit a live remote public comment via Zoom video conferencing.

Download the Zoom mobile app from the Apple Appstore or Google Play. If you are using a desktop computer, you can test your connection to Zoom by clicking here or go to: https://www.zoom.us/join. Zoom also allows you to join by phone at +1-669-900-6833 or +1-929-205-6099 or +1-253-215-8782. • Speakers will be asked to provide their name and city of residence, although providing this information is not required for participation.
• Each speaker will be allowed up to 3 minutes to speak and provide comment. A limit of 30 minutes will be devoted to taking public comment during the first public comment period on the agenda. If any speaker comments have not been accommodated prior to the initial 30 minute period, time will be reserved at the conclusion of the meeting for the remaining public comments. • Speakers will be muted until their opportunity to provide public comment.

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

Written Comments Submitted Electronically: All comments received before 3:00 p.m. the day of the meeting will be provided to the City Council prior to the meeting and posted to the City’s agenda website and located by clicking on the “meeting details” tab. Written comments received after 3:00 p.m. will be provided to City Council and posted to the agenda website the following day. Written comments will not be read aloud during the meeting. Email comments to [email protected]. Please indicate which item on the agenda you are commenting on in the subject line of your email.

Written comments submitted in person or via mail: Additional ways to provide your public comment is to either drop off your comment in person to the front desk receptionist located in the City Hall lobby or to mail your comment to City of Hercules, ATTN: City Clerk – Public Comment (Meeting Date), 111 Civic Drive, Hercules, CA 94547 in time to reach the City Clerk no later than 3:00 p.m. on the day of the meeting or you can submit your comment by telephone by calling (510) 799-8208 no later than 3:00 p.m. on the meeting date.

If you need assistance with public comment, please contact: Eibleis Melendez City Clerk at [email protected] or by calling (510) 799-8208.

All public comments will become part of the official meeting record. The City cannot guarantee that its network and/or the website will not be uninterrupted. To ensure that the City Council receives your written comments, you are strongly encouraged to submit your comments in writing in advance of the meeting by 3:00 p.m. on the day of the Council or Commission meeting.

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7 May 9, 2023City Council Meeting Agenda

OTHER WAYS TO WATCH THE MEETING
Live on Channel 28: City Council meetings will replay the following Thursday at 7:00 p.m. and Saturday at 1:00 p.m.

Planning Commission meetings will replay the following Wednesday at 7:00 p.m. and Saturday at 9:00 a.m.

Video Streamed Live on the City’s Website:

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

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

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

2. Locate the desired meeting and date.

3. Click the associated “Video” link (Video status is as follows):

Video = Video is available for on demand viewing.

In Progress = Video is available for viewing during live recording.

Not Available = Video is either unavailable or has not been recorded.

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8 May 9, 2023City Council Meeting Agenda

THE HERCULES CITY COUNCIL ADHERES TO THE FOLLOWING POLICIES,

PROCEDURES AND REGULATIONS REGARDING CITY COUNCIL MEETINGS

1. SPECIAL ACCOMMODATIONS: In compliance with the Americans with Disabilities Act, if you require special accommodations to participate at a City Council meeting, please contact the City Clerk at 510-799-8208 at least 48 hours prior to the meeting.

2. AGENDA ITEMS: Persons wishing to add an item to an agenda must submit the final written documentation 12 calendar days prior to the meeting. The City retains the discretion whether to add items to the agenda. Persons wishing to address the City Council otherwise may make comments during the Public Communication period of the meeting.

3. AGENDA POSTING: Agendas of regular City Council meetings are posted at least 72 hours prior to the meeting at City Hall, the Hercules Swim Center, Ohlone Child Care Center, and on the City’s website (www.ci.hercules.ca.us),

4. PUBLIC COMMUNICATION: Persons who wish to address the City Council should complete the speaker form prior to the Council's consideration of the item on the agenda.

Anyone who wishes to address the Council on a topic that is not on the agenda and is relevant to the Council should complete the speaker form prior to the start of the meeting. Speakers will be called upon during the Public Communication portion of the meeting. In accordance with the Brown Act, the City Council may not take action on items not listed on the agenda. The Council may refer to staff any matters brought before them at this time and those matters may be placed on a future agenda.

In the interests of conducting an orderly and efficient meeting, speakers will be limited to three (3) minutes.

Anyone may also submit written comments at any time before or during the meeting.

5. CONSENT CALENDAR: All matters listed under Consent Calendar are considered to be routine and will be enacted by one motion. There will be no separate discussion of these items unless requested by a member of the Council or a member of the public prior to the time the City Council votes on the motion to adopt.

6. LEGAL CHALLENGES: If you challenge a decision of the City Council in court, you may be limited to raising only those issues you or someone else raised at the meeting or in written correspondence delivered at, or prior to, the meeting. Actions challenging City Council decisions shall be subject to the time limitations contained in Code of Civil Procedure Section 1094.6.

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9 Introductions/ Presentations/ Commission
Reports
10 PROCLAMATION
RECO
GNIZING MAY 2023 AS

ASIAN AMERICAN AND PACIFIC ISLANDER HERITAGE MONTH

IN THE CITY OF HERCULES
WHEREAS, Asian American and Pacific Islander Heritage Month is observed in May to celebrate and pay tribute to the contributions of Asian and Pacific American history, culture, and achievements; and
WHEREAS, by recognizing the contributions and accomplishments of Asian American and Pacific Islander men and women, we celebrate the importance of inclusion in building a brighter future; and
WHEREAS, Asian Americans and Pacific Islanders enrich our history, society, and culture as leaders across many industries; and
WHEREAS, we acknowledge the additional determination, hard work, and perseverance Asian Americans and Pacific Islanders must put forth to be heard and seen; these additional efforts are a result of inequitable institutional and systemic injustices; and WHEREAS, since the COVID-19 pandemic, many Asian Americans have faced heightened fear of increasing rates of anti-Asian harassment and violence; and WHEREAS, the City of Hercules encourages all residents to learn more about Asian American and Pacific Islander heritage and work to combat racism and xenophobia through cultural events and education activities; and
WHEREAS, the Hercules community has benefitted through the cultural richness, diversity, and generosity of its local Asian Americans and Pacific Islanders.

NOW, THEREFORE BE IT PROCLAIMED that I, Alex Walker-Griffin, Mayor of the City of Hercules, on behalf of the entire City Council, do hereby recognize May 2023 to be Asian American and Pacific Islander Heritage Month in the City of Hercules and encourage all residents to join us in celebrating the heritage, influence, and contributions of Asian American and Pacific Islander Americans.

In witness whereof, I hereunto set my hand and cause the seal of the City of Hercules to be affixed this 9
th day of May, 2023.
_______________
_________________
Alex Walker-Griffin, Mayor
11 PROCLAMATION
Recognizing May 2023 as Jewish American Heritage Month in The City of Hercules WHEREAS, from our Nation's earliest days, Jewish Americans have been an essential part of the American story, greatly contributing to the religious, cultural, political, economic, and intellectual advancement of all people even while in the face of discrimination and adversity, working tirelessly to realize their piece of the American dream with relentless spirit, and these remarkable achievements have enriched our country, stirred our conscience, and challenged us to extend the miracles of freedom and security; and
WHEREAS, as we celebrate the rich heritage of the Jewish American community, in the City of Hercules and the nation, we recognize that American Jews have worked tirelessly to strengthen the promise of religious freedom and civil rights in the United States by joining together with all faiths to reject ignorance and intolerance, teach empathy and compassion, and root out hatred wherever it exists, and through our understanding and study of the Holocaust, we know the human devastation that can come from systemic prejudice, and are compelled to “never forget”; and WHEREAS, we are reminded that the vibrant culture and life of the Jewish people has experienced prejudice and discrimination and that Jewish communities continue to confront hostility and bigotry, including in America, and the City of Hercules shares the obligation to condemn and combat anti-Semitism and hatred wherever it exists; and
WHEREAS, May 2023 is recognized as Jewish American Heritage Month by Presidential Proclamation stating that The Jewish American experience is a story of faith, fortitude, and progress. It is a quintessential American experience — one that is connected to key tenets of American identity, including our Nation’s commitment to freedom of religion and conscience. This month, we honor Jewish Americans — past and present — who have inextricably woven their experience and their accomplishments into the fabric of our national identity; and WHEREAS, during Jewish American Heritage Month, the City of Hercules celebrates the hard- fought progress won through the struggle and sacrifice of Jewish Americans, and we rededicate ourselves to building a world where diversity is cherished, and faith is protected.

NOW THEREFORE BE IT PROCLAMINED, that I, Alex Walker-Griffin, Mayor of the City of Hercules, on behalf of the entire City Council, do hereby recognize May 2023 as Jewish American Heritage Month in the City of Hercules and call upon all residents to celebrate Jewish Americans who contributed immeasurably to the fabric American history, culture, science, education and social justice, and to many aspects of our local Hercules Community, to visit www.jewishheritagemonth.gov to learn more about the heritage and contributions of Jewish Americans, and to observe this month with solemn remembrance.

In witness whereof, I hereunto set my hand and cause the seal of the City of Hercules to be affixed this 9th day of May 2023.
________________________________
Alex Walker-Griffin, Mayor
12 PUBLIC HEARINGS
13 ST

AFF REPORT TO THE CITY COUNCIL
DATE
: Regular Meeting of May 9, 2023
TO: Mayor Walker-Griffin and Members of the City Council VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, AICP, Community Development Director SUBJECT: Membership in Marin Clean Energy
RECOMMENDED ACTION:

1. Rec
eive a report from City staff;

2. Ask any questions of City or MCE staff;

3. Take public comment;

5. Approve the first reading of an Ordinance approving the Marin Clean Energy joint powers agreement and authorizing the implementation of a community choice aggregation program.

BACKGRO
UND:

Com
munity Choice Energy
Authorized by the Legislature under AB 117 in 2002, Community Choice Energy (CCE), formerly known as Community Choice Aggregation (CCA), is a program by which local, not-for-profit public agencies provide electricity and often other energy-related programs to residents and businesses in their service area. Through Community Choice, communities join together to pool (or aggregate) their electricity load in order to purchase clean energy and develop local projects and programs on behalf of their residents and businesses. Community Choice providers work in partnership with the region’s existing Investor-Owned Utility (IOU), which continues to deliver power and maintain the power grid.
14 Si
nce the launch of Marin Clean Energy (now known as MCE) in 2010, many new CCAs have formed in communities across the service territories of California’s three largest IOUs: Pacific Gas & Electric (PG&E), Southern California Edison (SCE) and San Diego Gas & Electric (SDG&E). According to Cal-CCA, the trade association representing CCAs in California, as of summer 2022, there are 24 operational CCA entities serving over 15 million people in more than 200 California cities and about half the counties in the state.

According to CalCCA, CCAs in California have contracted for over 10,000 megawatts (10 gigawatts) of new renewable energy capacity and over 2,600 megawatt -hours of new energy storage, avoided about 940,000 metric tons of GHG emissions per year, and supported thousands of jobs.

Enr
ollment Process
Once a city or county implements or joins a CCA program, state law requires that residential customers within a CCA member's jurisdictions be enrolled in CCA service unless they choose to opt out. The noticing process is conducted by the CCA and includes a website and telephone call center for questions. The default power product at enrollment is selected by either the CCA or the member agency’s governing body, and once enrolled, customers have the option to “opt up” or “opt down” to a different power product, or to “opt out” of the CCA entirely at no charge and continue to purchase their electricity from PG&E. Customers will receive at least two notices during a 60-day period prior to CCA service commencement and at least two additional notices during a 60- day period after CCA service commencement. These notices will inform the customer how to opt out of the program if he or she chooses to do so.

MCE
M
CE is a Joint Powers Authority that provides renewable energy services to over 331,000 customers throughout Contra Costa County. Over 88% of all electric customers in MCE’s Contra Costa County member communities receive their electric generation from MCE .

In Contra Costa County, the unincorporated County and the cities of Concord, Danville, El Cerrito, Lafayette, Martinez, Moraga, Oakley, Pinole, Pittsburg, Pleasant Hill, Richmond, San Pablo, San Ramon and Walnut Creek are members of MCE, which now serves 37 communities in Marin, Napa, Solano and Contra Costa Counties.

Lik
e most CCAs, MCE is a Joint Powers Authority (JPA), with a board made up of elected officials representing its member agencies. PG&E continues to deliver the electricity through its transmission and distribution system and provide meter reading, billing, and maintenance services for MCE and other CCA customers in its territory, as well as to provide natural gas service. The MCE charges appear as a line item on the PG&E bill.

MCE’s standard service, Light Green, has contained 60% renewable energy or more since 2017, meeting state goals 13 years ahead of schedule. Light Green is projected to be 95% GHG-free by 2023 and will increase to 85% renewable by 2029. 15 ANALYSIS:

At i
ts March 14 , 2023 meeting, the City Council directed staff to return to Council for consideration of the documents needed for the City to join Marin Clean Energy (MCE) in 2024.

Shoul
d the City of Hercules decide to join MCE as a new member community and complete the second reading of the JPA ordinance by June 30, 2023, Hercules community members would be eligible for a spring 2025 enrollment date in MCE services.

De
fault Service Option
Following the City Council discussion on March 14, 2023, MCE staff confirmed that Hercules customers would enroll at the Light Green service option, and Light Green would remain the default service option for all customers through the end of the calendar year in which enrollment occurs. Thus, if Hercules were to enroll as an MCE member in April 2025 as anticipated, Light Green would be the default from April 2025 through December 31, 2025.

In the
calendar year following enrollment, customers would move to a Deep Green default for new electric accounts (those not previously enrolled in MCE) . That would mean on January 1, 2026, Deep Green default would go into effect. This is the same as MCE's current service- area wide enrollment policy , which is that new electric accounts are automatically enrolled in Deep Green. This is subject to Deep Green still being MCE's default service option in 2025. If MCE is no longer offering a Deep Green default, this shift to Deep Green default would not apply. Customers enrolled automatically in Deep Green would still have the option of switching to Light Green if they chose.

Enr
ollment Process
The steps to enter into MCE's Joint Powers Agreement are outlined below:

1. Before June 30, 2023: City Council should adopt resolution, first and second readings of ordinance, and memorandum of understanding to join MCE;

2. City staff complete two required PG&E forms (forms 79–1030 and 79–1031). The two forms allow MCE to access Hercules customer's electric load data from PG&E. The forms are a nonbinding agreement, and do not constitute a commitment from the City of Hercules to join MCE - they simply allow MCE to access PG&E customer data.

3. Mayor signs signature page of MCE’s joint powers authority (JPA) agreement;

4. MCE conducts technical analysis;

5. MCE Board of Directors holds a vote to include prospective new communities by the end of 2023;
16 6. Enrollment of new communities begins in 2025, pending certification by the California Public Utilities Commission (CPUC).

The resolution, MOU and ordinance attached to this item would implement steps 1- 3 above and allow MCE to proceed with steps 4 and 5.

FI
SCAL IMPACT:

Ther
e is no fiscal impact associated with this action.

ATT
ACHMENTS:

1. Res
olution Requesting Membership in MCE, Memorandum of Understanding, and PG&E Load Data forms

2. Ordinance Approving MCE Joint Powers Agreement
17 RES
OLUTION NO. 23-XX
A RES

OLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES

REQUESTING MEMBERSHIP IN MARIN CLEAN ENERGY, AUTHORIZING THE

MAYOR TO EXECUTE THE MEMORANDUM OF UNDERSTANDING WITH MARIN

CLEAN ENERGY, AND AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO

EXECUTE OTHER DOCUMENTS TO INITIATE MEMBERSHIP IN MARIN CLEAN ENERGY.

WH
EREAS, the City of Hercules has been actively investigating options to provide electric services to constituents within its service area with the intent of promoting use of renewable energy and competitive retail choice and reducing energy-related greenhouse gas emissions; and WH
EREAS, Assembly Bill 117 (Stat. 2002, ch. 838; see California Public Utilities Code section 366.2 et seq.; hereinafter referred to as the "Act") authorizes any California city or county, whose governing body so elects, to combine the electricity load of its residents and businesses in a community-wide electricity aggregation program known as Community Choice Aggregation ("CCA"); and
WH
EREAS, AB32 was signed into law in 2006 establishing the goal of reducing the state's greenhouse gas emissions to 1990 levels by 2020; and
WH
EREAS, the Act expressly authorizes participation in a CCA program through a joint powers agency, and to this end, the City of He rcules has been evaluating a CCA program through Marin Clean Energy ("MCE"), established as a joint powers authority pursuant to California Government Code § 6500 et seq; and
WHE
REAS, on February 2, 2010, the California Public Utilities Commission certified the Implementation Plan of MCE, confirming MCE's compliance with the requirements of the Act; and WH
EREAS, electricity in Hercules is generated and provided by Pacific Gas and Electric (PG&E) and there is not presently an alternative provider in the City; and WH
EREAS, PG&E is currently working to add more renewable energy to its power mix under California's renewable portfolio standard and offered 48 percent renewable energy in 2021; and
WH
EREAS, the City of Hercules is committed to the development of renewable en ergy generation and energy efficiency improvements, reduction of greenhouse gases, protection of the environment, and fully supports MCE's current electricity procurement plan, which targets more than 60 percent renewable energy content; and
WHERE
AS, the City of Hercules finds it important that its residents, businesses, and public facilities have alternative choices to energy procurement beyond PG&E; and WH
EREAS, the City of Hercules finds that joining MCE will offer Hercules customers choice in their power provider and will help the City meet the State goal set out in AB32; and Attachment 1
18 WHEREAS, in order to become a member of MCE, the MCE Joint Powers Agreement requires the City to adopt an ordinance electing to implement a Community Choice Aggregation program within its jurisdiction by and through its participation in MCE; and

WHEREAS, MCE will govern and operate the CCA program on behalf of the City. The City's participation in MCE will include membership on the Board of Directors as provided in the Joint Powers Agreement; and

WHEREAS, MCE will enter into agreements with electric power suppliers and other services providers and, based on these agreements, MCE plans to provide power to residents and businesses at rates that are competitive with those of the incumbent utility; and

WH
EREAS, California Public Utilities Code § 366.2 allows customers the right to opt- out of the
MCE CCA program and continue to receive service from PG&E. Customers who desire to continue to receive service from PG&E will be able to do so at any time; and

WH
EREAS, on May 9, 2023, the City Council held a public meeting at which time interested persons had an opportunity to testify either in support or in opposition to implementation of the MCE CCA program within the City.

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

1. This resolution is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines, as it is not a "project" and has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment because it involves an organizational activity of a local government. 14 Cal. Code Regs. § 15378(a). The resolution is expressly exempt from CEQA because it is an organizational or administrative activity of governments that will not result in direct or indirect physical change in the environment. 14 Cal. Code Regs. § 15378(b)(5).

The resolution is also exempt from CEQA because it is merely a change in organization of local agencies. 14 Cal. Code Regs. § 15320. Further, the resolution is exempt from CEQA because there is no possibility that the resolution or its implementation, which would only result in the formation of a governmental organization, would have a significant negative effect on the environment. 14 Cal. Code Regs. § 15061(b)(3).

2. The City Council requests membership in Marin Clean Energy and further requests that the Board of Directors of Marin Clean Energy approve the City of Hercules as a member of MCE.

3. The City Council authorizes the Mayor to execute the Memorandum of Understanding with Marin Clean Energy (Exhibit 1).

4. The City Manager is hereby directed to forward a copy of this resolution, a Memorandum of Understanding, and a completed request for load data to MCE. The City Manager, or designee, is further authorized to execute such other documents necessary or desirable to initiate membership in Marin Clean Energy, subject to City Attorney approval. 19 ADOPT
ED by the City Council of the City of Hercules at a regular meeting of the City Council held on the day of May 9, 2023, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

Alexander Walker-Griffin, Mayor
ATTES
T:

Eibleis Melendez, City Clerk
20 Memorandum of Understanding between MCE and the City of Hercules Exploring Inclusion in MCE
This Memorandum of Understanding (MOU), regarding MCE membership consideration is entered into by and between MCE and the City of Hercules.

WHEREAS, the City of Hercules has expressed interest in exploring membership in MCE, and WHEREAS, MCE has a Policy to consider new community inclusion, subject to receipt of a complete application and subject to MCE analysis and approval, and WHEREAS, MCE and the City of Hercules are collaborating to determine the feasibility of including Hercules within MCE’s Service area and approving the City of Hercules application for membership; and
WHEREAS, MCE and the City of Hercules have a mutual interest in following the guidelines below,
NOW THEREFORE, the parties hereto agree as follows:

1. The City of Hercules agrees to assign one staff member as primary point of contact with MCE. Assigned staff member will support and facilitate communication with other City of Hercules staff and officials, as well as provide input and high-level assistance on community outreach.

2. The City of Hercules will work with MCE to conduct public outreach about the MCE program to aid in outreach and education and to collect feedback from the community.

Options to publicize include, but are not limited to, website, social media, public events, community workshops, and newsletter announcements, as well as distribution of flyers and handouts provided by MCE.

3. The City of Hercules will complete and submit ‘MCE Membership Application’ to MCE.

4. After receipt of complete Membership Application MCE will conduct a quantitative analysis to determine feasibly of adding City of Hercules to the MCE Service Area, and approve membership if analysis results are positive.

5. Subject to membership approval by the MCE Board, City of Hercules agrees to publicize and share information about MCE within its community during the 6 month enrollment period. Options to publicize include, but are not limited to, website, social media, public events, community workshops, and newsletter announcements (where feasible), as well as distribution of flyers and handouts provided by MCE at City of Hercules offices. 21 6. Subject to membership approval by the MCE Board, the City of Hercules agrees to provide desk space for up to 2 MCE staff during the 6 month enrollment period, and agrees to consider ongoing desk space availability if needed for effective and efficient outreach.

IN WITNESS WHEREOF, the parties hereto have executed this MOU.

MCE:

By: ____________________________ ______________________ Dawn Weisz, CEO Date
MCE

City of Hercules:

By: ____________________________ ______________________ Alexander Walker-Griffin, Mayor Date
City of Hercules

22 Original Cal. P.U.C. Sheet No. 23061-E
Cancelling Cal. P.U.C. Sheet No.

Pacific Gas and Electric Company
San Francisco, California
U 39

Electric Sample Form No. 79-1030
Declaration by Mayor or Chief County Administrator Regarding Investigation Pursuit or Implementation of Community Choice Aggrega

Advice Letter No: 2629-E Issued by Date Filed February 14, 2005 Decision No. 04-12-046 Karen A. Tomcala Effective February 14, 2005 Vice President Resolution No.
1C1 Regulatory Relations

Please Refer to Attached
Sample Form
23 CITY MANAGER
24 Pacific Gas and Electric Company
San Francisco, California
U 39

Revised Cal. P.U.C. Sheet No. 32646-E*
Cancelling Revised Cal. P.U.C. Sheet No. 32235-E

Electric Sample Form No. 79-1031
Community Choice Aggregator Non-Disclosure Agreement

Advice Letter No: 4221-E Issued by Date Filed May 2, 2013 Decision No. 12-11-015 Brian K. Cherry Effective May 2, 2013 D.12-08-045, D.11-07-056 Vice President Resolution No. 1C7 Regulatory Relations

Please Refer to Attached
Sample Form

25 This Non-Di sclosure Agreement (“Agreement”) is entered into by and between Pacific Gas and Electric Company (“Utility”) and _______________________________ __________________________________________________________________[name]______ ________________________, a ________________________ [describe political entity] _____________________________(“CCA”) as of _________________________ (“Effective Date”). This Agreement is executed pursuant to California Public Utilities Commission (“CPUC”) Order Instituted Rulemaking (“OIR”) 03-10-003, California Public Utilities Code (“PU Code”) Section 366.2 et seq., and applicable Utility tariffs (as modified hereafter from time to time). As used herein Utility and CCA may each be referred to individually as a “Party” and collectively as “Parties.”
The CPUC has determined that CCA/Community may obtain specified confidential customer information from Utility pursuant to Tariff Schedules E-CCAINFO-Information (as modified hereafter from time to time) (“E-CCAINFO”) as a community choice aggregator, as defined by PU Code Section 331.1, solely in order to investigate, pursue or implement community choice aggregation pursuant to PU Code Section 366.2, et seq. or confidential customer electric and gas consumption data to implement energy efficiency programs pursuant to PU Code section 381.1. The provisions of this Agreement and E-CCAINFO govern the disclosure of Utility’s confidential customer information to CCA/Community (“Disclosure Provisions”) under Schedules E-CCAINFO and E-CCA.

The Parties hereby mutually agree that:

1. Subject to the terms and conditions of this Agreement, current proprietary and confidential information of Utility regarding customers of Utility (“Utility Customers”) may be disclosed to CCA from time to time in connection herewith as provided by the Disclosure Provisions and solely for the purpose of investigating, pursuing or implementing community choice aggregation pursuant to PU Code Section 366.2, et seq. as a community choice aggregator or to implement energy efficiency programs pursuant to PU Code section 381.1. Such disclosure is subject to the following legal continuing representations and warranties by CCA:
(a) CCA represents and warrants that, pursuant to PU Code Section 331.1, (1) i
t is either (i) a city, county, or other entity as defined in PU Code Section 331.1 whose governing board has elected to combine the loads of its residents, businesses, and municipal facilities in a community wide electricity buyers program or (ii) a city, county, or other entity as defined in PU Code Section 331.1 that intends to actively investigate or pursue delivery of electric service to customers located within the geographic territory of the CCA, and (2) that to investigate, pursue or implement community choice aggregation under PU Code Section 366.2 et seq., or to implement energy efficiency programs pursuant to PU Code section 381.1;
26 (b) CCA represents and warrants that it has all necessary authority to enter into this Agreement, and that it is a binding enforceable Agreement according to its terms;

(c) CCA represents and warrants that the authorized representative(s) executing this Agreement is authorized to execute this Agreement on behalf of the CCA; and

(d) CCA confirms its understanding that the information of Utility Customers is of a highly sensitive confidential and proprietary nature, and that such information will be used as contemplated under the Disclosure Provisions solely for the purposes of investigating, pursing or implementing Community Choice Aggregation under PU Code Section 366.2 as a community choice aggregator or to implement energy efficiency programs pursuant to PU Code section 381.1, and that any other use of the information may permit Utility to suspend providing further information hereunder.

(e) CCA represents and warrants that it will implement and maintain reasonable security procedures and practices appropriate to the nature of the information, to protect the personal information from unauthorized access, destruction, use, modification, or disclosure, and prohibits the use of the data for a secondary commercial purpose not related to community choice aggregation or energy efficiency purposes without the customer’s prior consent to that use.

2. The confidential and proprietary information disclosed to CCA in connection herewith may include, without limitation, the following billing information about Utility Customers: Customer-specific information from the current billing periods as well as prior 12 months consisting of: service agreement number, name on agreement, service address with zip code, mailing address with zip code, telephone number, meter number, monthly kWh usage, monthly maximum demand where available, electrical or gas consumption data as defined in PU Code Section 8380, other data detailing electricity or gas needs and patterns of usage, Baseline Zone, CARE participation, End Use Code (Heat Source) Service Voltage, Medical Baseline, Meter Cycle, Bill Cycle, Balanced Payment Plan and other plans, HP Load and Number of Units and monthly rate schedule for all accounts within the CCA's territory. In addition, PG&E will provide the CCA the following additional information regarding customers currently enrolled in its CCA service: current and historical billing information for non-CCA services provided by PG&E or other electric service providers (collectively, “Confidential Information”). Confidential Information shall also include specifically any copies, drafts, revisions, analyses, summaries, extracts, memoranda, reports and other materials prepared by CCA or its representatives that are derived from or based on Confidential Information disclosed by Utility, regardless of the form of media in which it is prepared, recorded or retained.

27 3. Except for electric and gas usage information provided to CCA pursuant to this Agreement, Confidential Information does not include information that CCA proves (a) was properly in the possession of CCA at the time of disclosure; (b) is or becomes publicly known through no fault of CCA, its employees or representatives; or (c) was independently developed by CCA, its employees or representatives without access to any Confidential Information.

4. From the Effective Date, no portion of the Confidential Information may be disclosed, disseminated or appropriated by CCA, or used for any purpose other than to investigate, pursue or implement community choice aggregation under PU Code Section 366.2 et seq. as a community choice aggregator or to implement energy efficiency programs pursuant to PU Code section 381.1 as permitted under this Agreement and the Disclosure Provisions.

5. CCA shall, at all times and in perpetuity, keep the Confidential Information in the strictest confidence and shall take all reasonable measures to prevent unauthorized or improper disclosure or use of Confidential Information. CCA shall implement and maintain reasonable security procedures and practices appropriate to the nature of the information, to protect the personal information from unauthorized access, destruction, use, modification, or disclosure and prohibits the use of the data for a secondary commercial purpose not related to community choice aggregation or energy efficiency. Specifically, CCA shall restrict access to Confidential Information, and to materials prepared in connection therewith, to those employees or representatives of CCA who have a “need to know” such Confidential Information in the course of their duties with respect to the CCA program and who agree to be bound by the nondisclosure and confidentiality obligations of this Agreement, provided, however, that, an Energy Service Provider, agent, or any other entity, including entities that provide both direct access (as codified in Assembly Bill No. 1890, Stats. 1996, ch. 854) and community choice aggregation services shall limit their utilization of the information provided to the purposes for which it has been provided and shall not utilize such information, directly or indirectly, in providing other services, including but not limited to Direct Access services, in order to effectuate the obligations of this Agreement. Prior to disclosing any Confidential Information to its employees or representatives, CCA shall require such employees or representatives to whom Confidential Information is to be disclosed to review this Agreement and to agree in writing to be bound by the terms of this Agreement by signing the “Non- Disclosure Agreement for CCA Employees or Representatives” form attached as Exhibit A hereto. CCA shall provide Utility with copies of the signed Exhibit A forms at Utility request. CCA shall also provide Utility with a list of the names, titles, and addresses for all persons or entities to which Confidential Information is disclosed in connection herewith (“Disclosure List”). This Disclosure List shall be updated by CCA on a regular basis, and will be provided to Utility once each quarter at a minimum.
28 6. CCA shall be liable for the actions of, or any disclosure or use by, its employees or representatives contrary to this Agreement; however, such liability shall not limit or prevent any actions by Utility directly against such employees or representatives for improper disclosure and/or use. In no event shall CCA or its employees or representatives take any actions related to Confidential Information that are inconsistent with holding Confidential Information in strict confidence. CCA shall immediately notify Utility in writing if it becomes aware of the possibility of any misuse or misappropriation of the Confidential Information by CCA or any of its employees or representatives. However, nothing in this Agreement shall obligate the Utility to monitor or enforce the CCA’s compliance with the terms of this Agreement.

7. CCA shall comply with the consumer protections concerning subsequent disclosure and use that are in Attachment B to CPUC Decision No. 12-08-045.

8. CCA acknowledges that disclosure or misappropriation of any Confidential Information could cause irreparable harm to Utility and/or Utility Customers, the amount of which may be difficult to assess. Accordingly, CCA hereby confirms that the Utility shall be entitled to apply to a court of competent jurisdiction or the CPUC for an injunction, specific performance or such other relief (without posting bond) as may be appropriate in the event of improper disclosure or misuse of its Confidential Information by CCA or its employees or representatives. Such right shall, however, be construed to be in addition to any other remedies available to the Utility, in law or equity.

9. In addition to all other remedies, CCA shall indemnify and hold harmless Utility, its affiliates, subsidiaries, parent company, officers, employees, or agents from and against and claims, actions, suits, liabilities, damages, losses, expenses and costs (including reasonable attorneys’ fees, costs and disbursements) attributable to actions or non-actions of CCA and/or its employees and/or its representatives in connection with the use or disclosure of Confidential Information.

10. If, at any time, CCA ceases its investigation, pursuit or implementation of community choice aggregation pursuant to PU Code Section 366.2 et seq., CCA shall promptly return or destroy (with written notice to Utility itemizing the materials destroyed) all Confidential Information then in its possession at the request of Utility.

Notwithstanding the foregoing, the nondisclosure obligations of this Agreement shall survive any termination of this Agreement.

11. This Agreement shall be binding on and inure to the benefit of the successors and permitted assigns of the Parties hereto. This Agreement shall not be assigned, however, without the prior written consent of the non-assigning Party, which consent 29 may be withheld due to the confidential nature of the information, data and materials covered.

12. This Agreement sets forth the entire understanding of the Parties with respect to the subject matter hereof, and supersedes all prior discussions, negotiations, understandings, communications, correspondence and representations, whether oral or written. This Agreement shall not be amended, modified or waived except by an instrument in writing, signed by both Parties, and, specifically, shall not be modified or waived by course of performance, course of dealing or usage of trade. Any waiver of a right under this Agreement shall be in writing, but no such writing shall be deemed a subsequent waiver of that right, or any other right or remedy.

13. This Agreement shall be interpreted and enforced in accordance with the laws of the State of California, without reference to its principles on conflicts of laws.

14. This Agreement shall, at all times, be subject to such changes or modifications by the CPUC as it may from time to time direct in the exercise of its jurisdiction.

IN WITNESS WHEREOF, the authorized representatives of the Parties have executed this Agreement as of the Effective Date.

PACIFIC GAS AND ELECTRIC

COMPANY
(Customer)

(Signature) (Signature)

(Type/Print Name) (Type/Print Name)

(Title) (Title)

(Date) (Date)

30 EXHIBIT A

NON-DISCLOSURE AGREEMENT

FOR CCA EMPLOYEES OR REPRESENTATIVES
I, ________________________________, de
clare under penalty of perjury that
(1)
I am employed as ____________________(title) at _____________________ ___________________________________________ (employer and address); and (2) I have personally reviewed the attached COMMUNITY CHOICE AGGREGATOR NON- DISCLOSURE AGREEMENT relating to disclosure and use of Confidential Information (as defined therein) and I agree to be bound by its provisions.

Signed:

Print Name:

Dated:
31 ORDINANCE NO . ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERCULES

APPROVING THE MARIN CLEAN ENERGY JOINT POWERS AGREEMENT AND

AUTHORIZING THE IMPLEMENTATION OF A COMMUNITY CHOICE
AGGREGATION PROGRAM.

WHEREAS, Assembly Bill (AB) 117 (Stat. 2002, ch. 838; see California Public Utilities Code section 366.2 et seq.; hereinafter referred to as the "Act") authorizes any California city or county, whose governing body so elects, to combine the electricity load of its residents and businesses in a community-wide electricity aggregation program known as Community Choice Aggregation ("CCA"); and

WHEREAS, AB 32 was signed into law in 2006 establishing the goal of reducing the State's greenhouse gas emissions to 1990 levels by 2020; and

WHEREAS, the Act expressly authorizes participation in a CCA program through a joint powers agency, and to this end, the City of Hercules has been evaluating a CCA program through Marin Clean Energy ("MCE"), established as a joint powers authority pursuant to California Government Code § 6500 et seq; and

WHEREAS, on February 2, 2010, the California Public Utilities Commission certified the Implementation Plan of MCE, confirming MCE's compliance with the requirements of the Act; and

WHEREAS, electricity in Hercules is generated and provided by Pacific Gas and Electric (PG&E) and there is not currently an alternative provider in the City. PG&E is currently working to add more renewable energy to its power mix under California's renewable portfolio standard and offered 48 percent renewable energy in 2021; and

WHEREAS, the City of Hercules is committed to the development of renewable energy generation and energy efficiency improvements, reduction of greenhouse gases, and protection of the environment and fully supports MCE's current electricity procurement plan, which targets more than 60 percent renewable energy content; and

WHEREAS, the City of Hercules finds it important that its residents, businesses, and public facilities have alternative choices to energy procurement beyond PG&E; and

WHEREAS, the City of Hercules finds that joining MCE will offer Hercules customers 32 choice in their power provider and will help the City meet the State goal set out in AB 32; and WHEREAS, in order to become a member of MCE, the MCE Joint Powers Agreement requires the City to adopt an ordinance electing to implement a CCA program within its jurisdiction by and through its participation in MCE; and WHEREAS, MCE will govern and operate the CCA program on behalf of the City. The City 's participation in MCE will include membership on the Board of Directors as provided in the Joint Powers Agreement; and
WHEREAS, MCE will enter into agreements with electric power suppliers and other services providers and, based on these agreements, MCE plans to provide power to residents and businesses at rates that are competitive with those of the incumbent utility; and WHEREAS, California Public Utilities Code § 366.2 allows customers the right to opt out of the MCE CCA program and continue to receive service from PG&E. Customers who desire to continue to receive service from PG&E will be able to do so at any time; and WHEREAS, on May 9, 2023 , the City Council held a public meeting at which time interested persons had an opportunity to testify either in support or in opposition to i mplementation of the MCE CCA program within the City.

NOW, THEREFORE, the City Council of the City of Hercules does ordain as follows:

SECTION 1. CEQA. This ordinance is exempt from the requirements of the California Environmental Quality Act ("CEQA") pursuant to State CEQA Guidelines, as it is not a "project" and has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment because it involves an organizational activity of a local government. 14 Cal. Code Regs. § 15378(a). The ordinance is expressly exempt from CEQA because it is an organizational or administrative activity of governments that will not result in direct or indirect physical change in the environment. 14 Cal. Code Regs. § 15378(b)(5). The ordinance is also exempt from CEQA because it is merely a change in organization of local agencies. 14 Cal. Code Regs. § 15320. Further, the ordinance is exempt from CEQA because there is no possibility that the ordinance or its implementation, which would only result in the formation of a governmental organization, would have a significant negative effect on the environment. 14 Cal. Code Regs. § 15061(b)(3).

SECTION 2. AUTHORIZATION TO IMPLEMENT A COMMUNITY CHOICE AGGREGATION PROGRAM. Based upon the foregoing, the City hereby elects to implement a CCA program within the jurisdiction of the City by participating in the MCE CCA program, as described in the MCE Joint Powers Agreement (Exhibit 1), and authorizes the City Manager, or designee, to execute the Joint Powers Agreement.

SECTION 3. SEVERABILITY. If any section, subsection, sentence, clause, phrase or portion of this ordinance is held for any reason to be invalid or unconstitutional by a decision 33 of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, clause, phrase or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional.

SECTION 4. EFFECTIVE DATE. This ordinance shall take effect 30 days after final adoption.

Within fifteen days after the passage of this ordinance, the City Clerk shall cause it or a summary of it to be posted in the three places designated by resolution of the City Council.

The foregoing ordinance was introduced at a regular meeting of the City Council of the City of Hercules held on the 9th day of May, 2023.

ADOPTED and ordered posted at a meeting of the City Council of the City of Hercules, held on the ___ day of ___, 2023, by the following vote of th e Cou ncil :

AYES:

NOES:

ABSTAIN:

ABSENT:

Alexander Walker-Griffin, Mayor

ATTEST:

Eibleis Melendez, City Clerk

34 CONSENT CALENDAR

AGENDA ITEMS
22-522
22-521
22-523
22-525
22-530
22-531
35 111 Civic Drive
Hercules, CA 94547City of Hercules
Meeting Minutes
City Council
Mayor Alex Walker-Griffin
Vice Mayor Dan Romero
Council Member Dion Bailey
Council Member Chris Kelley
Council Member Tiffany Grimsley
Dante Hall, City Manager
Patrick Tang, City Attorney
Eibleis Melendez, Acting City Clerk
7:00 PMTuesday, April 25, 2023
In-Person in Council Chambers or
Zoom ID: 870 2014 4877
Zoom Passcode: 954027
Zoom Phone Number: 1-669-900-6833
I. CLOSED SESSION – CALL TO ORDER - ROLL CALL

NO CLOSED SESSION
NONE
II.

PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
NONE
NONE
III. CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:

NO CLOSED SESSION
NONE
IV. REGULAR MEETING – CONVENE INTO OPEN SESSION - ROLL CALL [7:00 p.m] Mayor A. Walker-Griffin, Vice Mayor D. Romero, Council Member D. Bailey, Council Member C. Kelley, and Council Member T. Grimsley

Present: 5 -
V. A. REPORT ON ACTION TAKEN IN CLOSED SESSION

NO CLOSED SESSION
B. CONSIDER AND TAKE ACTION ON ANY REQUEST FROM A COUNCIL MEMBER TO

PARTICIPATE IN A MEETING REMOTELY DUE TO JUST CAUSE OR EMERGENCY CIRCUMSTANCES PURSUANT TO AB 2449.

NONE

Page 1 ends

22-522
36 April 25, 2023City Council Meeting Minutes
VI.

PLEDGE OF ALLEGIANCE
Pledge of Allegiance was lead by Council Member Grimsley.

VII. MOMENT OF SILENCE
A Moment of Silence was held for Nancy Orpilla. The wife of a staffer for Congressman Garamendi and former Mike Thompson staffer.

VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 22-512 National Library Week Proclamation and Presentation Proclamation - National Library WeekAttachments:

Mayor Walker-Griffin presented the proclamation. Alison Peters, Senior Community Library Manager for the City of Hercules, accepted the proclamation and spoke. Pictures were taken with City Council Members.

2. 22-511
Fair Housing Month Proclamation
Proclamation-Fair Housing MonthAttachments:

Mayor Walker-Griffin presented the proclamation. Tyra Wright and Heather Schiffman from the Contra Costa Association of Realtors, accepted the proclamation and spoke. Pictures were taken with City Council Members.

3. 22-510
RecycleMore Presentation
RecycleMore PresentationAttachments:

At the request of Council, Recyclemore was invited to present. City Manager, Dante Hall, introduced Peter HoltzClaw, Executive Director of Recyclemore- West Contra Costa Integrated Waste Management Authority.

IX.

AGENDA ADDITIONS/DELETIONS
There were no agenda additions or deletions.

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37 April 25, 2023City Council Meeting Minutes
X. PUBLIC COMMUNICATIONS
Public comment was made by residents from the Hercules By The Bay HOA regarding an election that took place that involved Council Member Kelley. Public comment was also received via Zoom. One comment was received regarding Senate Bill 379 and another public comment was received recognizing staff.

This time is reserved for members of the public to address issues not included in the agenda. In accordance with the Brown Act, Council will refer to staff any matters brought before them at this time, and those matters may be placed on a future agenda.

XI.

PUBLIC HEARINGS
NONE.

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

Aye: Mayor A. Walker-Griffin, Vice Mayor D. Romero, Council Member D. Bailey, Council Member C. Kelley, and Council Member T. Grimsley
5 -

1. 22-507
Closed Session Meeting Minutes for the Special Meeting on March 28th, 2023
Closed Session Meeting Minutes for the Special Meeting on March 28th, 2023
Attachments:

APPROVED

2. 22-508 Meeting Minutes for the Regular Meeting on March 28th, 2023 Meeting Minutes for the Regular Meeting on March 28th, 2023Attachments:

APPROVED

3. 22-509 Acceptance of the Sycamore Avenue Pavement Rehabilitation Project RECOMMENDATION: Adopt a resolution accepting the Sycamore Avenue Pavement Rehabilitation Project contract with McGuire & Hester as complete for a total amount of $889,485 and authorizing the filing of the Notice of Completion with the Contra Costa County Recorder’s Office.

Page 3 ends

38 April 25, 2023City Council Meeting Minutes
Staff Report - Sycamore Avenue Pavement Rehab Project Acceptance Attach 1 - Resolution Sycamore Ave Pavement Rehabilitation Project Acceptance
Attach 2 - Notice of Completion
Attach 3 - Project Location Map
Attachments:

APPROVED(Resolution 2023-18)
XIII.

DISCUSSION AND/OR ACTION ITEMS

1. 22-513 Budget Workshop: FY 23-24 City of Hercules Annual Proposed Budget RECOMMENDATION: No action is required at this time. It is recommended that the City Council discuss and provide direction to staff regarding the proposed Fiscal Year (FY) 23-24 annual budget.

Staff Report - Budget Workshop - FY 23-24 Proposed Annual Budget Attach 1 - FY 23-24 List of Additional Budget Request
Attach 2 - FY 23-24 Proposed General Fund - Fund Summary Attach 3 - FY 23-24 Proposed General Fund - Expenditures by Category
Attach 4 - FY 23-24 Projected General Fund Reserve Balances Attach 5 - General Fund Five-Year Forecast
Attach 6 - FY 23-24 Proposed Special Revenue - Fund Summaries Attach 7 - FY 23-24 Proposed Sewer - Fund Summaries
Attach 8 - FY 23-24 Proposed Internal Service Fund (ISF) - Fund Summaries
Attach 9 - FY 23-24 Debt Service Fund - Fund Summaries
Attach 10 - FY 23-24 Proposed CIP - Funding Sources
Presentation
Attachments:

City Manager, Dante Hall, introduced this agenda item. Financial Director, Edwin Gato, presented. Council Members provided comment. City Manager Hall and Director Gato provided a response. No Public Comment. No action was taken.

2. 22-514
Award of a Construction Contract in the amount of $1,488,622 for the Willow/Palm Sidewalk Connector Project
RECOMMENDATION: Adopt a resolution authorizing the City Manager to execute a construction contract with R&S Construction Management in the amount of $1,488,622 for the Willow/Palm Sidewalk Connector Project, authorizing an additional expenditure of up to $148,862 for a 10% contingency on said construction contract, for a total not to exceed amount of $1,637,484.

Staff Report - Willow Palm Sidewalk Award
Attach 1 - Resolution-Willow Palm Sidewalk Award
Attachments:

Page 4 ends

39 April 25, 2023City Council Meeting Minutes
Public Works Director, Mike Roberts, presented. Council Members provided comment and Director Roberts provided a response. No Public Comment. Action was taken on this item.

MOTION: A motion was made by Council Member Grimsley, seconded by Council Member Bailey, to adopt Resolution 2023-19, Willow Palm Sidewalk Award. The motion carried by the following vote:

Aye: Mayor A. Walker-Griffin, Vice Mayor D. Romero, Council Member D. Bailey, Council Member C. Kelley, and Council Member T. Grimsley
5 -

3. 22-515
Professional Services Agreement with WSP in the amount of $101,891 for the Willow/Palm Sidewalk Connector Project
RECOMMENDATION: Adopt a Resolution authorizing the City Manager to execute an agreement with WSP for a not to exceed amount of $101,891 for Construction Management Services for the Willow/Palm Sidewalk Connector Project.

Staff Report - Willow Palm Construction Management Award Attach 1 - Resolution - Willow Palm Construction Management Attach 3 - City Professional Services Agreement - WSP - Willow_Palm Ped Project
Attach 3 - Shewchuk, Bruce_CM
Attach 4 - Bohlander Matt_WSP
Attach 5 - Jon Adams_WSP
Attach 6 - Cowling_Jeff_WSP
Attachments:

Public Works Director, Mike Roberts, introduced the agenda item. John Adams, a representative from the construction management firm WSP, presented. Council Members provided comment. Vice Mayor Romero inquired about the role that the subcontractor, Kleinfelder, would have on this project and expressed his concerns and a Council discussion on the matter ensued. Ultimately, the City Council decided to move forward with the contract as is. No public comment. Action was taken on this item. A roll call vote was taken by the City Clerk.

MOTION: A motion was made by Council Member Kelley, seconded by Council Member Grimsley, to adopt Resolution 2023-20, Willow Palm Construction Management. The motion carried by the following vote:

Aye: Mayor A. Walker-Griffin, Vice Mayor D. Romero, Council Member D. Bailey, Council Member C. Kelley, and Council Member T. Grimsley
5 -

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40 April 25, 2023City Council Meeting Minutes

4. 22-516 Update on the City of Hercules Parks and Recreation Department Recommendation: Receive an update on the CIty of Hercules Parks and Recreation Department.

Staff Report - Parks and Recreation Update
Presentation- Parks and Recreation Department
Attachments:

City Manager, Dante Hall, introduced the agenda item. Recreation Director, Christopher Roke, presented and introduced staff that was present. Council Members provided comment. There was one public comment received on this agenda item. No action was taken.

XIV.

PUBLIC COMMUNICATIONS
NONE
This time is reserved for members of the public who were unavailable to attend the Public Communications period during Section X of the meeting, or were unable to speak due to lack of time. The public speaker requirements specified in Section X of this Agenda apply to this Section.

XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

1. Regional Committees

2. City Council Committees and Subcommittees

3. Commission Liaisons
City Manager, Dante Hall, introduced Eibleis Melendez as the new City Clerk. City Manager Hall also advertised the Community Clean Up Day.

City Attorney, Patrick Tang, had nothing to report.

1. Regional Committees:

Council Member Kelley attend the Contra Costa Transportation Authority(CCTA) Meeting; the Redefining Mobility Summitt was held. At the Board Meeting a status update was given on both Regional Measure 3 and the County Transportation Plan. Council Member Kelley also attended the WestCat meeting.

Council Member Bailey attended the WestCat meeting. They received and update on the budget. Funding is looking good to start the process on moving toward cleaner buses and possibly electric vehicles. Ridership is continuing to go up.

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41 April 25, 2023City Council Meeting Minutes
Vice Mayor Romero attended the West Contra Costa Integrated Waste Management (WCCIWMA) meeting. A presentation was given on multi family dwelling homes and SB1383. There are no shoots for organics.

Green bins need to be provided to stay in compliance with the state mandate.

2. City Council Committees and Subcommittees:

Council Member Grimsley and Vice Mayor Romero attended the Lighting and Landscaping Assessment District Meeting.

3. Commission Liasons:

No reports were given
Community Events:

Council Members attended a variety of events throughout the City and County which included Eggstravaganza, and Splashapalooza.

Future Agenda Items:

Council Member Grimsley would like to discuss a Government Day for High School Students
Vice Mayor Romero received a proclamation request to recognize May as Jewish American Heritage Month. He would also like to discuss renting the Council Chambers for half the price to government agencies.

Page 7 ends

42 April 25, 2023City Council Meeting Minutes
XVI.

ADJOURNMENT
Mayor Walker-Griffin adjourned the meeting at 10:05pm.
_________________________________
Alex Walker-Griffin, Mayor
Attest:
______________________________
Eibleis Melendez, Acting City Clerk

Page 8 ends

43 CONSENT CALENDAR
22-521
44 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 9, 2023
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Accept the Investment Report for the Quarter Ending March 31, 2023

RECOMMENDED ACTION
Accept the Investment Report for the Quarter Ending March 31, 2023

EXECUTIVE SUMMARY
Pursuant to California Government Code section 53646 and the City’s Investment Policy, a quarterly report and certification shall be provided to the City Council, City Manager, and City Auditor. The Quarterly Investment Report shall include a complete description of the portfolio, the type of investments, the issuers, maturity dates, par value and dollar amounts invested in all securities. The certification must provide assurances that investments were made consistent with the City’s Investment Policy and that the City will meet its expenditure obligations for the next six months. The Quarterly Investment Report for the quarter ending March 31, 2023, is provided as Attachment 1.

BACKGROUND AND ANALYSIS
To comply with state law and city policy, the City is required to present quarterly investment reports detailing the City's investment portfolio to the City Council and City Manager. The Council's authority to invest or reinvest funds or sell or exchange securities is delegated to the City's Finance Director, who also serves as City Treasurer. Pursuant to the Investment Policy, the City Treasurer may delegate some of their fiduciary responsibility to an outside investment management firm. An investment manager's fiduciary responsibility is a legal requirement related to registration with the Securities and Exchange Commission under the Investment Advisor Act of 1940. Due to the specialized services and expertise required to assist the City in the varied investment options available, the City has used th e Local Investment Agency Fund (LAIF) and PARS experienced investment managers. 22-521
45 This report presents the City’s investment portfolio for the quarter ending March 31, 2023.

It has been prepared to comply with regulations contained in California Government Code Section 53646 and City’s Investment Policy. The report includes all cash and investments managed by the City. It also includes City-related investments held by bond trustees for debt service obligations as well as money held in the irrevocable trust with PARS for pension and other post-employment benefits (OPEB). The report provides information on the investment type, issuer, maturity date, cost, and current market value for each security.

The City utilizes the Local Agency Investment Fund (LAIF) as a money market fund administered by the State Treasurer. LAIF has many governmental agency participants and holds securities through its administrator. LAIF provides local agencies a way to invest cash held in treasury pool that may be withdrawn as needed on a same-day basis to meet the agency’s cash flow needs while realizing interest generated by the Pooled Money Investment Account (PMIA). Moreover, the Investments held b y Bond Trustees are administered in accordance with individual bond indentures.

As of March 31, 202 3, the overall pooled investment portfolio average yield (before adjustments for changes in market value) was 2.74%, which is lower than the rate for two- year U.S. Treasury Note at 4.06% and LAIF average monthly rate of 2.83%. The market value of the pooled portfolio was $753,710 or 0.96% lower than the book value. As the City does not intend to sell its pooled investment portfolio securities prior to maturity, this will have no effect on yield.

71.11% of the total Investment Portfolio was deposi ted with LAIF as of March 31, 2023.

LAIF has 64.15% of its investments in U.S. Treasuries and agency notes, 6.48% in CDs and bank notes, and 29.37% in other types of investments. Additional economic summaries and specific information related to each of the investment advisors and LAIF are included in the Investment Portfolio Summary Report (Attachment 1).

The City invests its idle cash from all operating funds on a pooled basis to maximize returns.

Earnings are allocated to each fund based on the average cash balance. The timing of revenue collections, such as property tax, business licenses, and franchise tax, affects the quarterly investment income during the year. There is adequate cash to meet expected obligations over the next six months.

Amount
Market Over/(Under) Average
Investment Type Value Cost Yield
Petty Cash $2,005 - 0.00%
Cash in Bank 7,604,688 - 0.89%
Local Agency Investment Fund (LAIF) 55,119,374 ($753,710) 2.83% Irrevocable Trust (Pension) 2,107,346 - 3.84%
Irrevocable Trust (OPEB) 2,625,364 - 3.84%
Investments with Bond Trustees 10,359,126 - 3.46%
Total Portfolio $77,817,903 ($753,710) 2.74%
46 Governmental Accounting Standards Board (GASB) Statement 40 requires the City to recognize the fair market value of its investments at the end of each fiscal year. The market values of investments included in this report are obtained from the State Controller’s office for LAIF and from the City’s registered investment managers and bond trustees for all other investments. These market valuations are subject to daily changes. The difference between market value and historical costs, known as Unrealized Investment Gains and Losses, are temporary in nature and are not cash-related transactions. Since it is the City’s general intention to hold its investments until maturity, when they would be redeemed at par value, any unrealized gain or loss is only reported at the end of the fiscal year in the City’s Comprehensive Annual Financial Report.

Of the total cash and investments reported above, the portions held in the City’s General Fund (approximately $26.5 million, or 34%) and Internal Service Funds (approximately $1.5 million, or 2%) are unrestricted, although a portion of these amounts may be committed for existing obligations or designated for speci fic purposes. The remaining $50.6 million, or 64%, of the City’s cash and investments are restricted for specific uses, in accordance with federal, state, or local agency rules and regulations.

FISCAL IMPACT OF RECOMMENDATION
This is an information report with no fiscal impact.

ATTACHMENTS:

1. Quarterly Investment Report
47 1
INV

ESTMENT REPORT
For the Quarter Ending March 31, 2023
City of Hercules, California
48 CITY OF HERCULES

FINANCE DEPARTMENT
111 CIVIC DRIVE
HERCULES, CALIFORNIA 94547-1771
PHONE: 510-799-8200
May 9, 2023
Honorable Mayor and City Council:

I verified that this investment portfolio, as of March 31, 2023, conforms with all state laws and City’s investment policy. The City’s expenditures requirements for the next months are covered by anticipated revenues from City operations and liquidity from cash on deposit.

As of March 31, 2023, the City has sufficient funds to meet its expenditure requirements for the next six months.

Sincerely,
Edwin Gato
Finance Director/City Treasurer
49 City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended March 31, 2023
Book % of Average Market
Value Total Yield Value
Cash on Hand $2,005 $2,005
Cash on Deposit 7,604,688 7,604,688
Total Cash on Hand 7,606,693 9.68% 0.89% 7,606,693
Local Agency Investment Fund (LAIF) 55,873,084 71.11% 2.83% 55,119,374 Irrevocable Trust (Pension) 2,107,346 2.68% 3.84% 2,107,346 Irrevocable Trust (OPEB) 2,625,363 3.34% 3.84% 2,625,364 Investments with Bond Trustees 10,359,126 13.18% 3.46% 10,359,126 Total Portfolio $78,571,612 100.00% 2.74% $77,817,903
Amount over (under) Market Value vs. Book Value ($753,709) % of Portfolio -0.96%
Investments by Type
Cash on Hand
LAIF
Irrevocable Trust
(Pension)
Irrevocable Trust
(OPEB)
Investments with
Trustees
50 City of Hercules
Detail for Investment Portfolio Summary Report
For the Quarter Ended March 31, 2023
(DAYS)

BOOK PURCHASE MATURITY LIFE TO REMAINING PAR MARKET

DESCRIPTION VALUE RATE YIELD DATE DATE MATURITY LIFE VALUE VALUE

CASH ON HAND
PETTY CASH 2,005.00 0.00% 0.00% 2,005.00 $2,005.00

CASH IN BANK
MECHANICS BANK - GENERAL CHECKING 5,256,538.85 0.00% 0.00% 5,256,538.85 5,256,538.85 MECHANICS BANK - HERCULES RDA 2,321,564.95 0.00% 0.00% 2,321,564.95 2,321,564.95 MECHANICS BANK - PD ASSET SEIZURE 6,166.10 0.00% 0.00% 6,166.10 6,166.10 CalTRUST 20,418.03 3.57% 3.57% 1/1/2023 3/31/2023 89 - 20,418.03 20,418.03 TOTAL AND AVERAGES 7,604,687.93 0.89% 0.89% 89 - 7,604,687.93 7,604,687.93

LOCAL AGENCY INVESTMENT FUND (LAIF)
LAIF 55,873,083.96 2.83% 2.83% 1/1/2023 3/31/2023 89 - 55,873,083.96 55,119,374.44

IRREVOCABLE TRUST (PENSION/OPEB)
US BANK MUTUAL (PARS-OPEB) 2,625,363.70 3.84% 3.84% 1/1/2023 3/31/2023 89 - 2,625,363.70 2,625,363.70 US BANK MUTUAL (PARS-PENSION) 2,107,345.82 3.84% 3.84% 1/1/2023 3/31/2023 89 - 2,107,345.82 2,107,345.82 TOTAL AND AVERAGES 4,732,709.52 3.84% 3.84% 89 - 4,732,709.52 4,732,709.52

INVESTMENTS WITH BOND TRUSTEES
GE CAPITAL CORPORATION 4,511.99 3.03% 3.03% 1/1/2023 3/31/2023 89 - 4,511.99 4,511.99

WEBSTER BANK (STERLING NATIONAL BANK
ESCROW) 117,616.70 0.24% 0.24% 1/1/2023 3/31/2023 89 - 117,616.70 117,616.70 THE BANK OF NEW YORK (BNY) JM 05 1 RESERVE
FUND 55,797.47 0.00% 0.00% 1/1/2023 3/31/2023 89 - 55,797.47 55,797.47

THE BANK OF NEW YORK (BNY) MELLON TRUST
HERCULES PFA WW INTEREST ACCT 21 A 2,887.50 0.00% 0.00% 1/1/2023 3/31/2023 89 - 2,887.50 2,887.50

THE BANK OF NEW YORK (BNY) MELLON TRUST
HERCULES PFA WW ACQUISITION FD 21 A 8,325,000.00 0.00% 0.00% 1/1/2023 3/31/2023 89 - 8,325,000.00 8,325,000.00

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 REVENUE FUND) 514,313.08 4.35% 4.35% 1/1/2023 3/31/2023 89 - 514,313.08 514,313.08

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV PRIN ACCT) 197,243.98 4.39% 4.39% 1/1/2023 3/31/2023 89 - 197,243.98 197,243.98

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV INT ACCT) 183,473.65 4.39% 4.39% 1/1/2023 3/31/2023 89 - 183,473.65 183,473.65

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 RESERVE FD) 920,215.00 4.39% 4.39% 1/1/2023 3/31/2023 89 - 920,215.00 920,215.00

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2020 INT FD) 4,567.80 0.00% 0.00% 1/1/2023 3/31/2023 89 - 4,567.80 4,567.80

THE BANK OF NEW YORK (BNY) MELLON TRUST (SA
HERCULES 2022 A B DEBT SERVICE) - 0.00% 0.00% 1/1/2023 3/31/2023 89 - - - THE BANK OF NEW YORK (BNY) MELLON TRUST (sa
HERCULES 2022 A B INTEREST ACCT) 33,498.59 0.00% 0.00% 1/1/2023 3/31/2023 89 - 33,498.59 33,498.59 TOTAL AND AVERAGES 10,359,125.76 3.46% 3.46% 89 - 10,359,125.76 10,359,125.76 TOTAL INVESTMENT REPORT 78,571,612.17 2.74% 2.74% 89 - $78,571,612.17 $77,817,902.65 51 City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended March 31, 2023
% of
Cash Description Book Value Total
Bond Trustee $10,359,126 13%
Irrevocable Trust 4,732,710 6%
Restricted 35,484,656 45%
General Fund 26,461,447 34%
Internal Service Funds 1,533,673 2%
Total, Book Value $78,571,612 100%
Restricted:

Wastewater 20,011,978
Successor Housing 4,910,310
ARPA 2,792,889
Development Impact Fees 1,958,602
Landscape & Lighting 863,479
Gas Tax & Measure J "Street" 578,988
General Plan Update 915,473
Solid Waste 881,139
Capital Projects 486,550
Agency Fund 511,811
Successor Agency 976,084
BART (Park & Ride) 319,383
Asset Seizure 228,646
Other 49,324
35,484,656
Bond Trustee
13% Irrevocable Trust
6%
Restricted
45%
General Fund
34%
Internal Service
Funds
2%
Cash by Fund
52 March 2.831
February 2.624
January 2.425

0.00007493902135155

0.986510329
LAIF Earnings Ratio(2):

LAIF Fair Value Factor(1):

PMIA Daily(1): 2.87

2.74LAIF Apportionment Rate(2):

PMIA Quarter to Date(1): 2.63
275PMIA Average Life(1):

Treasuries

64.15%
Agencies

21.72%
Certificates of
Deposit/Bank Notes

6.48%
Time
Deposits

2.74%
Commercial
Paper

4.47%
Corporate
Bonds

0.24%
Loans

0.20%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a).

Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 03/31/23
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 03/31/23
Chart does not include $3,085,000.00 in mortgages, which equates to 0.002%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
03/31/23
$191.2 billion
53 City of Hercules
As of March 31, 2023
Presented By
Andrew Brown, CFA
City of Hercules ▎17
54 Quarter
to Date
(3 Months) 1 Year 3 Years 5 Years 10 Years
Inception
to Date
06/01/2010
Cash Equivalents 1.05 2.54 .87 1.28 .78 .61
Lipper Money Market Funds Index 1.07 2.59 .89 1.26 .74 .57 Total Fixed Income 2.97 -4.34 -.87 .96 1.42 2.38
Bloomberg US Aggregate Bd Index 2.96 -4.78 -2.77 .91 1.36 2.19 Total Equities 6.36 -8.66 16.94 7.44 9.25 10.33
Large Cap Funds 7.88 -9.29 18.29 10.05 11.60 12.15
S&P 500 Composite Index 7.50 -7.73 18.60 11.19 12.24 13.11 Mid Cap Funds 4.13 -8.65 19.18 7.94 8.90 10.55
Russell Midcap Index 4.06 -8.78 19.20 8.05 10.05 11.58
Small Cap Funds 3.39 -8.70 20.59 6.81 10.21 11.86
Russell 2000 Index 2.74 -11.61 17.51 4.71 8.04 9.59
International Equities 6.80 -4.11 12.47 2.46 4.22 5.20
MSCI EAFE Index 8.47 -1.38 12.99 3.52 5.00 6.22
MSCI EM Free Index 3.96 -10.70 7.83 -.91 2.00 2.96
REIT Funds 1.66 -19.81 9.38 5.59
Wilshire REIT Index 3.32 -21.33 11.03 5.66 5.89 8.44
Total Managed Portfolio 3.84 -5.19 4.43 3.17 5.18 6.48
Selected Period Performance
Hercules OPEB
Period Ending: 3/31/2023
City of Hercules ▎19
55 Asset Allocation – OPEB Plan
As of March 31, 2023
Current Asset Allocation Investment Vehicle
Equity Range: 20%-40% 29.16%
Large Cap Core COFYX Columbia Contrarian Core Inst3 2.79% VGIAX Vanguard Growth & Income Adm 5.47%
Large Cap Value DODGX Dodge & Cox Stock Fund 2.57%
IVE iShares S&P 500 Value ETF 1.16%
Large Cap Growth HNACX Harbor Capital Appreciation Retirement 1.64% IVW iShares S&P 500 Growth ETF 1.60%
Mid Cap Core IWR iShares Russell Mid-Cap ETF 2.56%
Small Cap Value UBVFX Undiscovered Managers Behavioral Val R6 2.10% Small Cap Growth FGROX Emerald Growth Institute 2.07%
International Core DFALX DFA Large Cap International I 2.32% International Value DODFX Dodge & Cox International Stock Fund 0.83% International Growth MGRDX MFS® International Growth R6 0.83% Emerging Markets HHHFX Hartford Schroders Emerging Mkts Eq F 2.31% Real Estate VNQ Vanguard Real Estate ETF 0.91%
Fixed Income Range: 50%-80% 65.94%
Short-Term VFSUX Vanguard Short-Term Investment-Grade Adm 13.31% Intermediate-Term DBLFX DoubleLine Core Fixed Income I 17.23% DODIX Dodge & Cox Income 17.09%
PTRQX Prudential Total Return Bond Q 17.28%
High Yield PHIYX PIMCO High Yield Instl 1.03%
Cash Range: 0%-20% 4.89%
FGZXX First American Government Oblig Z 4.89%
TOTAL 100.00%
City of Hercules ▎20
56 Quarter
to Date
(3 Months) 1 Year 3 Years 5 Years
Inception
to Date
(64 Months)
Cash Equivalents 1.05 2.54 .87 1.28 1.27
Lipper Money Market Funds Index 1.07 2.59 .89 1.26 1.25 Total Fixed Income 2.97 -4.34 -.87 .96 .77
Bloomberg US Aggregate Bd Index 2.96 -4.78 -2.77 .91 .66 Total Equities 6.36 -8.66 16.94 7.44 7.15
Large Cap Funds 7.88 -9.29 18.29 10.05 9.59
S&P 500 Composite Index 7.50 -7.73 18.60 11.19 10.52
Mid Cap Funds 4.13 -8.65 19.18 7.94 7.51
Russell Midcap Index 4.06 -8.78 19.20 8.05 7.63
Small Cap Funds 3.39 -8.70 20.59 6.81 6.72
Russell 2000 Index 2.74 -11.61 17.51 4.71 4.31
International Equities 6.80 -4.11 12.47 2.46 2.76
MSCI EAFE Index 8.47 -1.38 12.99 3.52 3.31
MSCI EM Free Index 3.96 -10.70 7.83 -.91 .07
REIT Funds 1.66 -19.81 9.38 5.59 3.50
Wilshire REIT Index 3.32 -21.33 11.03 5.66 3.75
Total Managed Portfolio 3.84 -5.19 4.43 3.17 2.93
Selected Period Performance

PARS/PRSP MODERATELY CONSERVATIVE HM
Account ****050104
Period Ending: 3/31/2023
City of Hercules ▎21
57 Asset Allocation – Pension
As of March 31, 2023
Current Asset Allocation Investment Vehicle
Equity Range: 20%-40% 29.16%
Large Cap Core COFYX Columbia Contrarian Core Inst3 2.79% VGIAX Vanguard Growth & Income Adm 5.47%
Large Cap Value DODGX Dodge & Cox Stock Fund 2.57%
IVE iShares S&P 500 Value ETF 1.16%
Large Cap Growth HNACX Harbor Capital Appreciation Retirement 1.64% IVW iShares S&P 500 Growth ETF 1.60%
Mid Cap Core IWR iShares Russell Mid-Cap ETF 2.56%
Small Cap Value UBVFX Undiscovered Managers Behavioral Val R6 2.10% Small Cap Growth FGROX Emerald Growth Institute 2.07%
International Core DFALX DFA Large Cap International I 2.32% International Value DODFX Dodge & Cox International Stock Fund 0.83% International Growth MGRDX MFS® International Growth R6 0.83% Emerging Markets HHHFX Hartford Schroders Emerging Mkts Eq F 2.31% Real Estate VNQ Vanguard Real Estate ETF 0.91%
Fixed Income Range: 50%-80% 65.94%
Short-Term VFSUX Vanguard Short-Term Investment-Grade Adm 13.31% Intermediate-Term DBLFX DoubleLine Core Fixed Income I 17.23% DODIX Dodge & Cox Income 17.09%
PTRQX Prudential Total Return Bond Q 17.28%
High Yield PHIYX PIMCO High Yield Instl 1.03%
Cash Range: 0%-20% 4.89%
FGZXX First American Government Oblig Z 4.89%
TOTAL 100.00%
City of Hercules ▎22
58 1-Month 3-Month Year-to- 1-Year 3-Year 5-Year 10-Year Fund Name Return Return Date Return Return Return Return Columbia Contrarian Core Inst3 4.58 8.73 8.73 -8.62 18.20 10.94 11.97 Dodge & Cox Stock I -1.60 1.50 1.50 -6.78 23.34 9.43 11.37 Harbor Capital Appreciation Retirement 8.41 18.32 18.32 -14.66 14.36 10.80 13.99 iShares S&P 500 Value ETF 1.30 5.13 5.13 -0.34 18.91 9.29 9.98 Vanguard Growth & Income Adm 2.58 6.47 6.47 -8.16 19.11 10.89 12.18 iShares S&P 500 Growth ETF 5.83 9.58 9.58 -15.47 16.63 11.70 13.42 S&P 500 TR USD 3.67 7.50 7.50 -7.73 18.60 11.19 12.24
iShares Russell Mid-Cap ETF -1.55 4.03 4.03 -8.90 19.01 7.90 9.88 Russell Mid Cap TR USD -1.53 4.06 4.06 -8.78 19.20 8.05 10.05 Undiscovered Managers Behavioral Val R6 -5.32 0.53 0.53 -3.97 32.79 8.40 10.28 Emerald Growth Institutional -2.90 4.12 4.12 -11.72 14.43 5.69 10.08 Russell 2000 TR USD -4.78 2.74 2.74 -11.61 17.51 4.71 8.04 Dodge & Cox International Stock I 0.88 6.15 6.15 -0.46 17.30 2.91 5.06 DFA Large Cap International I 2.53 7.93 7.93 -1.26 14.85 3.91 5.18 MFS International Growth R6 5.19 9.22 9.22 1.03 13.16 6.73 6.87 MSCI EAFE NR USD 2.48 8.47 8.47 -1.38 12.99 3.52 5.00
Hartford Schroders Emerging Mkts Eq F 2.96 5.16 5.16 -10.26 7.86 -0.55 2.64 MSCI EM NR USD 3.03 3.96 3.96 -10.70 7.83 -0.91 2.00
Source: SEI Investments, Morningstar Investments

INTERNATIONAL EQUITY FUNDS
Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.

CITY OF HERCULES
For Period Ending March 31, 2023

LARGE CAP EQUITY FUNDS

MID CAP EQUITY FUNDS

SMALL CAP EQUITY FUNDS
City of Hercules ▎23
59 1-Month 3-Month Year-to- 1-Year 3-Year 5-Year 10-Year Fund Name Return Return Date Return Return Return Return Vanguard Real Estate ETF -2.10 1.77 1.77 -20.12 9.80 5.80 5.78 DoubleLine Core Fixed Income I 2.02 3.56 3.56 -5.03 -0.56 0.68 1.70 Dodge & Cox Income I 1.79 3.13 3.13 -3.03 0.13 1.93 2.35 Vanguard Short-Term Investment-Grade Adm 1.54 1.88 1.88 -0.19 0.75 1.59 1.59 PGIM Total Return Bond R6 1.90 3.17 3.17 -6.05 -1.14 0.99 2.07 Bloomberg US Agg Bond TR USD 2.54 2.96 2.96 -4.78 -2.77 0.91 1.36 PIMCO High Yield Instl 1.83 3.98 3.98 -2.66 4.55 2.94 3.73 Source: SEI Investments, Morningstar Investments

REAL ESTATE FUNDS

BOND FUNDS
Returns less than one year are not annualized. Past performance is no indication of future results. The information presented has been obtained from sources believed to be accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.

CITY OF HERCULES
For Period Ending March 31, 2023
City of Hercules ▎24
60 CONSENT CALENDAR
22-523
61 STA

FF REPORT TO THE CITY COUNCIL
DATE: R
egular Meeting of May 9, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBJECT: Quarterly Review of Future Agenda Items
RECOMMENDED ACTION:

Recei
ve, r eview, and comment on the quarterly review of future City Council agenda items.

BACKGROUND:

The purp
ose of this item is to identify issues presently known to staff or which members of the City Council wish to place on an upcoming City Council agenda. Council comment on these future agenda items is limited by the Brown Act to clarifying questions, brief announcements, or requests for additional information in connection with an item when it is discussed.

FIS
CAL IMPACT:

There i
s no direct fiscal impact associated with this report.

ATTACHM
ENTS:

Futur
e Agenda Items List
22-523
62 Scheduled Meeting
Date Item Staff Responsible Presentation Public Hearing Consent Discussion Only Discussion/Action 5/9/2023 Quarterly Investment Report Gato X
Quarterly Review of Future Agenda Items Hall X
Police Department Updates Vasquez X
List of Road Repair Project for SB1 Funding in FY 2023-24 Roberts X Notice by 4/28 MCE Intorduction of Ordinance Rood X
Historical Society Trailer Amendement Tang X
Pride Month Flag Tang X
Juneteenth Commemoration and Flag Tang X
EVCS Site Host Agreement Rood X
Asian American and Pacific Islander Heritage Month Proclamation X Jewish American Heritage Month X
Scheduled Meeting
Date Item Staff Responsible Presentation Public Hearing Consent Discussion Only Discussion/Action 5/23/2023 Community Development Dept. Update Rood X
MCE 2nd Reading of Ordinance Rood X
General Plan Annual Progress Report Rood X
PSMP Update X
Student Government Day X
Rodeo- Hercules Fire District Meeting Hall X
Compensatioin for Council Members Gato X
Notice by 5/11 Introduction of FY 23-27 Annual Budget and Five Year CIP Gato X MOU with Recylemore(educational Outreach) SB1383 Roberts X LLAD - 5yr Projection, Staff Recommendations for FY 23-24 Rates Roberts X AB 481 Military Equipment Vasquez X
Pride Month Proclamation X
WestCat Presentation X
Future Agenda Items List
63 Scheduled Meeting
Date Item Staff Responsible Presentation Public Hearing Consent Discussion Only Discussion/Action 6/13/2023 Annual renewals of LLADS X
Annual Fiber Optic Broadband per Resolution 16-084 Tang X Notice by 6/1 Adoption of FY 23-27 Annual Budget and Five Year CIP Gato X Master Fee Schedule - Council Review(Finance Commission and CLSC review first) Gato X
Juneteenth Proclamation X
Proclamation Honoring June12th as Phillipine Indepedence Day X Garbage Liens Melendez X
Special Events Update Roke X
Scheduled Meeting
Date Item Staff Responsible Presentation Public Hearing Consent Discussion Only Discussion/Action 6/27/2023 Finance Dept. Update Gato X
Master Fee Schedule- Adoption Gato X
LLAD - Adopt Resolution of Intention and Approve Prelliminary Engineer's Reports Roberts X
Authorization of New On Call List Rood X
Economic Dev. Prog. Business Attraction Grant Rood X
Economic Dev. Prog. Catering Incentive Program Rood X
LEDCOR/ Waterfront Parking Agreement Rood X
Scheduled Meeting
Date Item Staff Responsible Presentation Public Hearing Consent Discussion Only Discussion/Action 7/11/2023 LLAD - Public Hearing - Approve Final Engineer's Report and Approve Assessment Rates Roberts X
Preferred Parking District Victoria By the Bay Discussion Roberts X Housing Element Adoption(tentative date) Rood X
Scheduled Meeting
Date Item Staff Responsible Presentation Public Hearing Consent Discussion Only Discussion/Action 7/25/2023 Animal Services Department Presentation X
Scheduled Meeting
Date Item Staff Responsible Presentation Public Hearing Consent Discussion Only Discussion/Action 8/8/2023
64 Scheduled Meeting
Date Item Staff Responsible Presentation Public Hearing Consent Discussion Only Discussion/Action 9/12/2023 City Managers Eval
Quarterly Review of Future Agenda Items X
City Attorney Eval
Scheduled Meeting
Date Item Staff Responsible Presentation Public Hearing Consent Discussion Only Discussion/Action 9/26/2023 Hispanic Heritage Month Proclamation X
Scheduled Meeting
Date Item Staff Responsible Presentation Public Hearing Consent Discussion Only Discussion/Action 10/10/2023 Quarterly Investment Report Gato X
Amend Conflict of Interest Code(even numbered years) X
Scheduled Meeting
Date Item Staff Responsible Presentation Public Hearing Consent Discussion Only Discussion/Action 10/24/2023
Scheduled Meeting
Date Item Staff Responsible Presentation Public Hearing Consent Discussion Only Discussion/Action 11/14/2023 2024 Meeting Calendar Approval Melendez X
1st Quarter Revenue & Expenditure Report Gato
Commission Interviews X
Scheduled Meeting
Date Item Staff Responsible Presentation Public Hearing Consent Discussion Only Discussion/Action 12/12/2023 Reorganization of Council X
Commission Appointments X
Quarterly Review of Future Agenda Items X
Maddy Act X
AB1600 Report X
65 CONSENT CALENDAR
22-525
66 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 9, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Michael Roberts, Public Works Director/City Engineer SUBJECT: Adoption of a List of Projects for Fiscal Year 2023-24 funded by SB 1: the Road Repair and Accountability Act of 2017.

RECOMMENDED ACTION:

Adopt a resolution adopting a list of projects for Fiscal Year 2023-24 funded by SB 1: the Road Repair and Accountability Act of 2017.

BACKGROUND:

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

SB 1 includes accountability and t ransparency provisions to ensure interested residents are aware of the projects proposed for funding in Hercules. Specifically, the City is required under the Act to approve a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1. In addition to the project name, the project list must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement.
22-525
67 ANALYSIS:

The City’s SB1 list consists of projects in the Capital Improvement Program (CIP) for FY 2023-24 that meet the eligibility criteria of SB1. This includes maintenance, active transportation, and safety projects.

Following is the list of proposed projects which will be funded in-part or solely with Fiscal Year 23-24 Road Maintenance and Rehabilitation Account revenues:

Project Title: Willow/Palm Sidewalk Connector Project
Project Description: Sidewalk installation, street light installation, slurry seal, striping.

Project Locations: Willow Avenue from the Hercules Transit Center to Palm Avenue, Palm Avenue from Willow Avenue to Sycamore Avenue Project Duration: May – September 2023
Useful Life: 30 years
Project Title: Falcon Way Rehabilitation Project
Project Description: Base failure repair, grind, asphalt overlay, striping, ramp replacements.

Project Locations: Wren Court to Refugio Valley Way.

Project Duration: January 2024 through October 2025
Useful Life: 20 years
Project Title: 2023-2024 Striping Project
Project Description: Install STOP bars and legends, leader lines, centerline stripes, crosswalks.

Project Locations: Islands, Astronauts, and Foxboro neighborhoods.

Project Duration: July 2023-October 2024
Useful Life: 7 years
Project Title: 2024 Pedestrian Safety & ADA Improvements Project Description: Upgrade curb ramps, landing pads, pedestrian push buttons to current standards
Project Locations: Intersection of Sycamore Avenue and San Pablo Avenue Project Duration: January-June 2024
Useful Life: 20 years
FISCAL IMPACT:

The City will receive an estimated $645,000 in Road Maintenance and Rehabilitation Account funding. The Road Maintenance and Rehabilitation Account was created by SB1 and is funded by fuel taxes and vehicle fees.
68 ATTACHMENTS:

Attach 1 - Resolution
69 RESOLUTION NO._______

RESOLUTION ADOPTING A LIST OF PROJECTS FOR THE CITY OF HERCULES FOR FISCAL YEAR 2023-24 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City of Hercules, will receive an estimated $645,000 in RMRA funding in Fiscal Year 2023-24 from SB 1; and
WHEREAS, this is the seventh year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and
WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost- effective projects that also meet the communities priorities for transportation investment; and
70 WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate streets and add active transportation throughout the City this year and similar projects into the future; and
WHEREAS, the 2018 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an “At-Risk” condition and this revenue will help us with the overall quality of our road system and over the next decade; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

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

1. The foregoing recitals are true and correct.

2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2023-24 Road Maintenance and Rehabilitation Account revenues:

Project Title: Willow/Palm Sidewalk Connector Project
Project Description: Sidewalk installation, street light installation, slurry seal, striping.

Project Locations: Willow Avenue from the Hercules Transit Center to Palm Avenue, Palm Avenue from Willow Avenue to Sycamore Avenue Project Duration: May – August 2023
Useful Life: 30 years
Project Title: Falcon Way Rehabilitation Project
Project Description: Base failure repair, grind, asphalt overlay, striping, ramp replacements.

Project Locations: Wren Court to Refugio Valley Way.

AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Alex Walker-Griffin, Mayor
ATTEST:

Eibleis Melendes, City Clerk
72 CONSENT CALENDAR
22-530
73 STAFF REPORT TO THE CITY COUNCIL
DATE:

Regular Meeting of May 9, 2023
TO: Mayor
Walker-Griffin and Members of the City Council
VIA:

Dante Hall, City Manager
SUBMI
TTED BY: Patrick Tang, City Attorney
Eibleis Melendez, City Clerk
SUBJE
CT: Authorize Display of Pride Month Commemorative Flag RECOM
MENDED ACTION: Approve Display of Commemorative Flag for the month of June – Pride Month.

FIS
CAL IMPACT OF RECOMMENDATION: None as a result of this action.

DISCU
SSION: Pursuant to the City’s approved Flag Policy, this item is being presented to allow the City Council to consider and approve a request by a member of the Hercules City Council to display the Pride Flag at the Hercules Civic Center during the month of June.

If
the Council also approves the display of the Juneteenth Flag from June 17th through June 24th, the Pride Flag will be displayed for the entirety of the month of June except for June 17th through June 24th.

ATTACHM
ENTS:

Attachment 1 - Flag Policy – Administrative Policy #16
22-530
74 75
76 CONSENT CALENDAR
22-531
77 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 9, 2023
TO: Mayor Walker-Griffin and Members of the City Council VIA: Dante Hall, City Manager
SUBMITTED BY: Patrick Tang, City Attorney
Eibleis Melendez, City Clerk
SUBJECT: Authorize Display of Juneteenth Commemorative Flag RECOMMENDED ACTION: Approve Display of Juneteenth Commemorative Flag from June 17th through June 24th
FISCAL IMPACT OF RECOMMENDATION: None as a result of this action.

DISCUSSION: Officially designated Juneteenth National Independence Day and also known as Jubilee Day and Black Independence Day, Juneteenth has been celebrated on June 19th in various parts of the United States since 1865. In celebration of this historically significant event, in 2022 the City Council approved raising the Juneteenth Flag at the Hercules Civic Center from June 17th through June 24th of 2022.

Pursuant to the City’s approved Flag Policy, this item is being presented to allow the City Council to consider and approve a request by a member of the Hercules City Council to display the Juneteenth Flag this year at the Hercules Civic Center starting June 17th until June 24th.

June is also Pride Month, and the Council traditionally approves flying the Pride Flag for the entire month except that in 2022 for the intervening period around Juneteenth, the Juneteenth Flag was displayed. Pursuant to the City’s Flag Policy, only one commemorative flag can be flown at a time at the designated location at Civic Center.

ATTACHMENTS:

Attachment 1 - Flag Policy – Administrative Policy #16
22-531
78 79
80 DICUSSION AND /OR ACTION
ITEMS
22-528
22-529
22-526
81 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 9, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, AICP, Community Development Director SUBJECT: EVCS Electric Vehicle Charging Site Host Agreement RECOMMENDED ACTION:

1. Receive a report from staff regarding a Site Host Agreement for EV Charging services at the Hercules Civic Center and Hercules Community Swim Center;

2. Ask any questions;

3. Take public comment; and

4. Approve a resolution authorizing the City Manager to execute a Site Host Agreement with EVCS
BACKGROUND:

At a special “shirtsleeves” meeting on sustainability initiatives held on January 17, 2023, the City Council requested that staff return with more information on options for accelerating deployment of public Electric Vehicle (EV) charging facilities in Hercules.

Given the specialized nature of EV charging permitting, installation, maintenance, funding and reporting, it is common fo r site hosts to partner with vendors who specialize in providing EV charging as a service . These vendors bundle multiple sites into a grant application that could be more competitive, provide gap funding, and then install, own, and operate the chargers under a site hosting agreement with the property owner.

In consultation with Contra Costa County Public Works staff, City staff identified the opportunity to install publicly accessible charging stations at the Hercules Civic Center and Community Swim Center with no material cost to the City. This opportunity would be created through a public private partnership with Electric Vehicle Charging Services, Inc. 22-528
82 (EVCS). EVCS would own, operate, and maintain the charging units and will establish new electrical service meters with PG&E to supply sites with dedicated electrical capacity.

EVCS would be responsible for all material and labor costs associated with design, construction, maintenance, and operation of the charging units, including electricity costs.

These charging units would be open to the public and not dedicated to City fleet use.

The Bay Area Air Quality Management District (BAAQMD) offers a grant program to provide funding to offset the cost of purchasing and installing publicly accessible, pay-for- use EV chargers. The Charge! Program provides grant funding to offset the cost of purchasing and installing new chargers for light-duty electric vehicles (EV) at workplaces, destinations, transit parking locations, along transportation corridors, and multi -unit dwelling facilities. In a coordinated effort to expand the infrastructure network in Solano County, the Solano Transportation Authority (STA) contacted six vendors from the air district-approved vendors list and identified Electric Vehicle Charging Solutions , Inc. (EVCS) as the most responsive EV charger vendor.

On March 7, 2023, the Contra Costa County Board of Supervisors approved an item authorizing County Public Works staff to negotiate Site Host Agreements wit h EVCS for Direct Current Fast Chargers (DCFCs) at over 20 County -owned library locations and other County-owned facilities. The County agreement with EVCS served as a template for the City’s agreement under similar terms, as allowed by the consolidation p rovisions of the California Public Contract Code.

On March 14, 2023, the Council received an informational update from staff and EVCS regarding their Charging as a Service model and BAAQMD Charge! grant application.

With the approval of the City Manager, EVCS’s 2023 grant application included two City- owned sites in Hercules: the Civic Center and the Community Swim Center.

EVCS was founded in 2018 and currently is one of the larger electric vehicle charging networks on the West Coast. Its fast chargers are powered by 100% renewable energy and offer a turn-key approach that utilizes public and private funding sources to promote more installations . According to the company, its mission is to cut emissions while simultaneously improving air quality by enabling the rapid adoption of zero -emission electric vehicles.

In 2022, EVCS announced it had raised $68.8 million in funding to help expand its presence to over thirty -five new cities in California, Oregon, and Washington .

Previously, EVCS had secured over $50 million in government funding and implemented nearly 150 partner sites to establish its net zero carbon charging network. EVCS currently has active agreements with Contra Costa and Solano Counties and the Cities of Fairfield, Vallejo and Vacaville. EVCS will receive and manage grants and there is no local match required. The estimated completion time ranges from 18 to 30 months. 83 ANALYSIS:

EVCS staff have indicated that they have discussed their Charge! Grant application with BAAQMD staff and are optimistic that the grant will be awarded. EVCS also has other funding sources available. In order to move forward expeditiously if the grant is approved, staff requests the Council authorize the City Manager to execute the Site Host Agreement with EVCS in the substantially same form as the attached for the two City-owned sites.

Key deal points, as negotiated by City staff, include:
 Each of the two sites would receive 8 DCFC stations and 2 Level II stations, for a total of 16 DCFC stations and 4 Level II stations
 Chargers would be located under existing solar canopies at both sites  Contra Costa County agreement used as a template
 No deposit required from the City as Site Host
 Revenue sharing to the City of $0.07 cents per kilowatt-hour of electricity sold  Ten (10) year term with optional ten (10) year extension Jessie Guo, Director of N etwork Growth for EVCS, will be available to respond to questions.

FISCAL IMPACT:

If the City Council approves the Site Host Agreement with EVCS, the design, permitting, construction, maintenance, operation, and other services would be provided by EVCS at no cost to the City. The c ontract would generate revenue for the City at a rate of $0.07/kilowatt hour (kWh) of electricity sold. The estimated annual revenue to the City is $7,000 per charger , or $70,000 per charger for the term of the agreement. City project management would be undertaken by Community Development staff.

ATTACHMENTS:

Attach 1 – Resolution
Attach 2 – EVCS Site Host Agreement with Exhibits
84 HERCULES CITY COUNCIL
RESOLUTION NO. 23-XXX

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

CITY MANAGER TO EXECUTE A SITE HOST AGREEMEN T WITH ELECTRIC VEHICLE CHARGING SERVICES, I NC. FOR ELECTRIC VEHICLE CHA RGING SERVICES AT CITY

FACILITIES
WHEREAS, On March 7, 2023, the Contra Costa County Board of Supervisors approved an item authorizing County Public Works staff to negotiate Site Host Agreements with Electric Vehicle Charging Services, Inc. (EVCS) for Direct Current Fast Chargers (DCFCs) at over 20 County-owned library locations and other County- owned facilities.; and
WHEREAS, The County agreement with EVCS served as a template for the City of Hercule s’s agreement under similar terms, as allowed by the consolidation provisions of the California Public Contract Code; and WHEREAS, EVCS through negotiations with the City adjusted their scope to include Level II as well as Direct Current Fast Chargers at each location and increased their revenue sharing with the City from $0.05 cents to $0.07 cents per kilowatt-hour of electricity sold; and
WHEREAS, contracting for this service will allow the City to improve the availability and reliability of electric vehicle charging systems.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that the City Council hereby authorizes the City Manager to execute a ten-year Site Host Agreement with EVCS for electric vehicle charging services at the Hercules Civic Center and the Hercules Community Swim Center.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 9th day of May 2023 by the following vote of the Council:

AYES: COUNCIL MEMBERS:

NOES:

ABSTAIN:

ABSENT:
____________________________
Alex Walker-Griffin, Mayor
ATTEST:

Eibleis Melendez, City Clerk
85 SITE HOST AGREEMENT

This Site Host Agreement (hereafter the “Agreement”) is effective as of __5/9/2023________ (hereafter the “Effective Date”) by and between EV Charging Solutions, Inc., a California for benefit corporation with its principal at 11800 Clark Street, Arcadia, California 91006 (hereafter “EVCS”), and the City of Hercules, a political subdivision of the State of California (hereafter “Site Host”). EVCS and Site Host may collectively be referred to herein as the “Parties" or individually as “Party.”

RECITALS

WHEREAS, EVCS has access to public and/or private funding to install and operate Level II Charging and/or Direct Current Fast Charging (“DCFC”) stations (hereafter the "Equipment");

WHEREAS, this funding is intended to improve the availability and reliability of electric vehicle charging systems;

WHEREAS, Site Host agreed to allow the construction, operation, and/or maintenance of one or more DCFC and/or Level II charging stations on its real property (hereafter “Property” and/or “Site”) in the location more specifically identified herein and also agreed to allow public use of the equipment;

WHEREAS, the Parties wish to collaborate by utilizing their respective resources to promote the promulgation of the electric transportation sector;

WHEREAS, the Parties agree to revenue share the proceeds from the sale of electricity stemming from placement of the Electric Vehi cle Supply Equipment (“EVSE”) charging equipment by EVCS onto Site Host’s property as outlined in sector four (4) of the agreement titled “Revenue Sharing”;

WHEREAS, Termination Date is defined as (10) years from the commissioning date (i.e., date when the chargers are placed in service).

NOW, THEREFORE, in consideration of the promises set forth herein, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, EVCS and Site Host agree as follows:

1. Recitals
The Parties agree that the foregoing Recitals are true, correct, and accurate.

86 2. EVCS’ General Obligations for Equipment and Services

EVCS shall provide the following equipment and services:

a) Purchase of (See Exhibit_B) DCFC Station(s) and Level II Stations the general specifications for which are detailed in Exhibit A , and incorporated herein by reference, together with all other mechanical, electrical, and physical components necessary for the installation, connection, and operation of the Charging Station(s) in accordance with this Agreement (“Equipment”); Equipment used may be the same or substantially similar to the equipment listed in Exhibit A;

b) Preparation of the Property and installation of the Equipment at the location(s) approved, specified, and identified by Site Host and performed by qualified and licensed contractor(s) in accordance with local codes and all applicable laws, permitting, and inspection requirements (the "Project Site"), and as detailed in Exhibit B, and incorporated herein by reference. EVCS shall obtain all the necessary permits and/or governmental approvals required for installation of the Equipment. Execution of this Agreement in no way constitutes approval by any County or City department with permitting authority over EVCS' activities. For the purposes of initially creating a rebate application and reserving funding for the Project, EVCS and Site Host may mutually agree to leave Exhibit B blank upon initial execution. Once funding is reserved and further feasibility and recommendations are made by EVCS1 electrical contractor in accordance with Site Host's written approval, the Parties shall further specify the approved location(s) and Site design by mutual written agreement on Exhibit B;

c) Payment of all costs of its contractors associated with the delivery, site preparation, installation, and setup of the Equipment at the Project Site;

d) Design, installation, wiring, connection and integration of the charging system, consumption/use meters, and related equipment into the public power grid in a manner sufficient to allow operation of the charging station(s) and the ongoing metering of power usage from each charging port. EVCS has final say on all above listed matters.

Note: Each DCFC needs 480V l O0Am, level II 208V 40Am, load balance or power sharing may also be used as an option;

e) Ongoing maintenance/repairs of the Equipment for the term of the Agreement;

f) All necessary communications, instructions, and network systems to facilitate public charging;

g) Periodic reports on the utilization of the charging station; and

87 h) Return the Refundable Deposit if collected (as referenced in Section 3) to Site Host upon successful installation of the Equipment.

3. Site Host General Obligations
Site Host will:
a) Provide necessary access for placement, use, and operation of DCFC Stations and Level II Stations at the Project Site as detailed in Exhibit B for the full term of this Agreement;
b) Not remit a five thousand dollar ($5,000) refundable deposit (hereafter "Refundable Deposit") as the deposit is waived;
c) Provides the necessary temporary construction access for EVCS and its contractors for preparation of the Project Site and for installation of the Equipment; d) Provides necessary ongoing utility easements and / or access for installation, usage, and maintenance of power lines, conduits, meters and Equipment; e) Allow necessary ongoing access to the Project Site and Equipment in order for EVCS to collect, use, and distribute data;
f) Not knowingly allow the Equipment to be opened, accessed, modified, or repaired by anyone other than EVCS or its licensed contractors. g) Not transfer, assign, encumber or otherwise pledge the Equipment; h) Use commercially reasonable efforts to prevent damage and vandalism of any type to the Equipment;
i) Not open, move, modify, reverse engineer, or disassemble the whole or any part of the Equipment or any part thereof in any manner. Note: If Site Host needs to move the Equipment, EVCS will do the work, but Site Host will have to pay the cost of moving which involve new infrastructure before (utility side) and after (facility side) meter;
j) Not uninstall the Equipment;
k) Allow EVCS and its approved contractors necessary access to the Project Site for installation, maintenance, repair, replacement and approved de- installation of the Equipment;
l) Shall cause the Premises to be maintained in a clean, safe, and orderly condition to at least the same standard as to which other areas at the Property that are under the Site Host's control are maintained;
m) Will assign to EVCS all interest in all and any rebates that Site Host may receive relating to the Equipment, and/or this Agreement; and n) Grant EVCS rights to claim environmental credits (e.g., carbon credits) relating to the Equipment, and/or this Agreement;
88 o) Grant EVCS the rights to enroll the Equipment into a Demand Response program and claim any economic benefit arising from such an emolument.

EVCS must provide reasonable notice to Site Host prior to enrollment in Demand Response programs. EVCS must also notify Site Host when any charging unit is off-line or otherwise not operational due to participation in Demand Response programs. If Demand Response program benefits credits the Site Host utility bill, the utility bill credit will be used to offset cost electricity described in paragraph (4) and subchapter (d) (4.d,) and Demand Charges described in paragraph (4) and subchapter € (4.e,) and if the Demand Response credits are more than Demand Charges and cost of electricity, EVCS can request Site Host for reimbursement of such excess. The Site Host agrees to issue such a reimbursement within forty-five (45) days of request by EVCS.

4. Revenue Sharing
a) The Parties agree that the Equipment installed by EVCS will generate revenue through the patronage of customers utilizing the Equipment placed with the Site Host;
b) EVCS shall set the price/rate at which electricity shall be sold to consumers utilizing the Equipment.
c) EVCS will pay Site Host $0.07 cents for each kWh sold; Further, in the event the Site Host is responsible to pay for the cost of electricity, then EVCS will pay Site Host
$0.07 cents per kWh plus the cost of electricity utilized by the EV Chargers. In the event Site Host chooses to offer certain customers free or discounted charging, EVCS will offset any revenue share amounts owed to Site Host by an amount proportionate to the reduction in revenue caused by said free or discounted charging.

EVCS agrees to waive any and all fees related to the charging of Any Site Host- owned vehicles, thus there wi11 be no reduction in revenue related to the charging of Site Host-owned vehicles. In the event there is a balance owed from Site Host to EVCS as a result of said free or discounted charging, Site Host shall remit payment to settle said balance within forty-five (45) days of receipt of said balance from EVCS. Should the Parties mutually agree to enter a Five-Year Extension, per section 5(a) of this Agreement, this revenue-sharing clause will be reassessed by the Parties, for possible re-negotiation no less than sixty (60) days prior to the Five-Year Extension;
89 d) In the event Site Host incurs any incremental demand charges strictly in connection with the operation of the installed Equipment that are assessed by the electrical utility company providing the service, Site Host shall present these charges, inc luding any support and back-up documentation that substantiates the charges to EVCS, and EVCS shall reimburse Site Host for these charges within ninety (30) days of receipt; e) EVCS at its sole option will have the right to own the electricity service meter and/or utility service account servicing the Equipment;
f) EVCS will collect the proceeds generated from the sale of electricity from the Equipment and will then perform the necessary revenue share calculations by taking the number of kWh sold multiplied by $0.07 cents to determine Site Host's total revenue share amount portion and will remit said revenue share portion to Site Host;
g) EVCS will use its best, commercially reasonable efforts to install a separate electric meter as allowed by the utility provider at the Site through which electrical costs shall be tracked. In the event EVCS deems installing a separate meter is impractical or uneconomical for any reason, the EV chargers shall be connected to Site Host's existing electrical meter. To allow EVCS to perform the revenue sharing calculation, Site Host will provide EVCS with a hard copy or electronic/digital copy of Site Host's electricity bills or will allow EVCS to view the bills electronically on an on-going basis; for EVCS to be able to reimburse electricity cost to Site Host. h) EVCS will have thirty (30) days after the end of each billing cycle to remit the appropriate revenue share portion to Site Host. The billing cycle will begin on the first day of the month and end on the last day of that same month. EVCS shall provide Site Host with a monthly accounting statement within thirty (30) business days following the end of the previous month indicating the total amount of revenue generated, including any offsets or reductions to revenue, and the resulting net revenue share amount owed to Site Host.

5. Term of Agreement:

The term hereof shall begin upon the Effective Date. The date the Equipment becomes operational will hereafter be referred to as the "Commencement Date." The term hereof shall expire (unless renewed or extended) ten (10) years from the Commencement Date (hereafter the "Termination Date”), unless sooner terminated in accordance with the provisions hereof.
90 a) Optional Five (10) Year Extension Option
At least ninety (90) days but no earlier than one hundred & eighty (180) days prior to the expiration of the initial Term, EVCS reserves the right to provide written notice of Ten-Year Extension to Site Host. In the event of said Ten-Year Extension, EVCS reserves the right to replace the Equipment at the Project Site with equipment that is comparable or better to Equipment that was previously installed. If EVCS notifies the Site Host of such intent EVCS will then replace the Equipment no later than one hundred & twenty (120) days after the Termination Date. The terms of this Agreement will remain in effect during that 120 -day period after the Termination Date. Site Host will take all reasonable steps to allow EVCS to remove the pre -existing Equipment and replace the pre -existing Equipme nt with new Equipment. EVCS shall bear the cost to remove and replace the pre -existing Equipment. The removed pre -existing Equipment will then become the exclusive property of EVCS. If EVCS elects to replace the Equipment, this will cause the termination date of the Agreement to extend for an additional ten (10) year term from the termination date of the initial Term. If the existing Equipment is replaced with new Equipment during or at the conclusion of the original Term, site host grants all interest to EVCS of any rebate(s) and/or environmental credits associated with the equipment replacement.
b) Automatic One (1) Year Renewal Clause
Provided EVCS (or the Parties) have not exercised the Ten (10) Year Extension Option, this agreement will automatically renew at the end of each Term for a further term of one (1) year unless either party gives the other written notice of termination at least thirty (30) days but no earlier than ninety (90) days prior to the end of the relevant term.
c) Equipment & Software Transfer
At the end of the initial Term (or any renewal term, if extended) if Site Host desires to take on operation and maintenance of the Equipment, EVCS shall offer assistance to Site Host with a transition of software and networking and provide basic training to Site Host and its designated employees for a period of up to 90- days at no additional cost.
d) Early Termination Clause
This Agreement may be terminated upon 30 (thirty) days written notice to either party without penalty or fee in the following instances:

In the case of EVCS, at any time and for any reason prior to the submission of the permit application for construction of the Equipment at the Project Site, or thereafter at any time in the event that EVCS determines that the construction or continued operation of the Equipment is impracticable or uneconomical. 91 In the case of Site Host, in the event the Commencement Date has not occurred within eighteen (18) months following the Agreement Date, provided that Site Host’s rights to terminate shall expire upon the Commencement Date.

6. Ownership of Equipment and Content
EVCS shall retain t itle to and ownership of the Equipment. All the information, content, services and software displayed on, transmitted through, stored within, or otherwise used in connection with the use and operation of the Equipment, including, but not limited to data, text, photographs, images, illustrations, video, html, source and object code, software, internet account access, advertising, and the like (collectively, the “Content”) is owned exclusively by EVCS. Once this Agreement is terminated EVCS shall remove equipment at no cost to the Site Host.

7. Installation Activities
EVCS shall, at its sole cost and expense, be responsible for all installation activities (hereafter "Installation Activities") required to support the operation of the Equipment, and services therewith, including the hiring and coordination of all vendors and contractors; the installation of electrical equipment, utility lines, hardware, and software; site preparation, trenching, repaving, and landscaping. All installation activities will be overseen by site host.

8. Limitations on Use of Project Site
The Project Site and related parking spaces made available to the Project Site may be used for providing publicly-accessible electric vehicle charging. Site Host shall provide EVCS, its employees and contractors with reasonable access to the parking spaces and Equipment and shall otherwise provide to EVCS the same amenities and services Site Host provides to other users of Site Host’s parking facilities.

9. Utility Charges
EVCS shall be responsible for all electricity costs associated with both the operation of the Equipment and the charging of electric vehicles from the Equipment. Site Host shall cooperate with EVCS efforts regarding provision of electricity to the Equipment. Neither Site Host nor EVCS has any responsibility or liability for interruption, curtailment, failure, or defect in the supply of utilities furnished to the Equipment.

10. Allocation of Environmental Benefits
Site Host shall assign to EVCS any renewable energy credits, allowances, or other indicators of environmental ben efit attributable to the presence of the Equipment for the entirety of the time the originally installed Equipment is installed at the site but for a minimum of ten (10) years. If this Agreement extends under paragraph 5 and subchapter a (5.a.) or renews under paragraph 5 and subchapter b (5.b.), then paragraph 10 shall continue to remain in effect through the updated termination date. 92 11. Signage
EVCS shall have the right to place project-related signage to denote the location of the Equipment and the services available and may place other signage or advertising at the Property as EVCS reasonably determines to be practicable or appropriate. All Signages & signage locations shall be subject to approval by Site Host.

12. Publicity
During the term of this Ag reement, neither party will use the other party’s name, logos, trademarks or service marks in any manner without the other party’s prior written approval, which will not be unreasonably withheld or delayed.

13. Media Content
It is agreed that EVCS shall hav e sole control over the solicitation, contracting, and distribution of any and all media content relating to the Equipment, including but not limited to, any media content data transmitted to or from the Equipment and displayed using the Equipment. EVCS will use commercially reasonable efforts to avoid distributing media content that actually and directly conflicts with Site Host’s media and advertising.

14. Indemnification
a) EVCS shall indemnify and hold harmless Site Host, and any tenant, guest, customer, patron, or employee of Site Host, from and against any and all liability and expense of any kind, including reasonable attorneys’ fees, arising from injuries or damages to persons or property resulting in any way from the negligence or willful misconduct of EVCS, its contractors, agents, or employees. EVCS' indemnification obligations herein shall extend only up to the limit of any insurance coverage held by EVCS and insuring it against any such liability. It is a condition of this indemnification provis ion that EVCS shall receive prompt notice from Site Host of any claim against Site Host for which indemnification from EVCS is claimed.
b) Site Host agrees to indemnify EVCS, its officers, board, employees, and agents, and hold all of same harmless from and against any and all liability and expense of any kind, including reasonable attorneys' fees, arising from injuries or damages to persons or property resulting in any way from any act or negligence or willful misconduct of Site Host, its contractors, agents or employees. It is a condition of this indemnification provision that Site Host shall receive prompt notice from EVCS of any claim against EVCS.

15. Breach and Opportunity to Cure
If either party breaches this Agreement and fails to cure such breach within thirty (30) days after receipt of written notice of that breach, then the non -breaching party may terminate this Agreement effective as of the end of such thirty (30) day period. Additionally, either party may terminate this Agreement immediately if the other party (i) ceases to do business 93 in the ordinary course; or (ii) either voluntarily or involuntarily files a bankruptcy petition which is not vacated within thirty (30) days of filing. No such termination will be deemed a waiver of any claim for damages by the non-terminating party.

If the Site Host breaches or wrongfully terminates the Agreement prior to the Termination Date, Site Host will be required to reimburse EVCS for all costs incurred relating to the installation of the Equipment within thirty (30) days of receipt of an invoice from EVCS.

The Site Host will also be required to reimburse EVCS for the total amount of any rebates EVCS would have received relating to the Equipment, and/or this Agreement had the Agreement not been breached or wrongfully terminated . Site Host is not responsible for any reimbursements to EVCS if termination is the result of the a breach by EVCS

16. Insurance
A. Without limiting EVCS's obligation to indemnify Site Host, EVCS must procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work under this Agreement and the results of that work by EVCS, EVCS's agents, representatives, employees, or subcontractors.

B. Minimum Scope of Insurance
Coverage must be at least as broad as:
(1) Insurance Services Office Commercial General Liability coverage ( occurrence Form CG 00 01).
(2) Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto).
(3) Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.

C. Minimum Limits of insurance
EVCS must maintain limits no less than:
( 1) General Liability: $2,000,000 per occurrence for bodily injury, personal (Including operations, products injury, and property damage, or the full per and completed operations.) occurrence limits of the policy, whichever is greater. If Commercial General Liability
insurance or other form with a general
aggregate limit is used, either the general
aggregate limit shall apply separately to this
project/location or the general aggregate limit
shall be twice the required occurrence limit.

94 (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage. (3) Workers' Compensation: As required by the State of California. (4) Employer's Liability: $1,000,000 per accident for bodily injury or disease.

D. Additional Insurance Coverage
To the extent coverage is applicable to EVCS's services under this Agreement, EVCS must maintain the following insurance coverage:
(1) Cyber Liability: $1,000,000 per incident with the aggregate limit twice the required limit to cover the full replacement value
of damage to, alteration of, loss of, or destruction
of electronic data and/or information property of
the Site Host that will be in the care, custody or
control of EVCS under this Agreement.
(2) Professional Liability: $2,000,000 combined single limit per claim and in the aggregate. The policy shall remain in full force
and effect for no less than 5 years following the
completion of work under this Agreement.

E. If EVCS maintains higher limits than the minimums shown above, Site Host is entitled to coverage for the higher limits maintained by EVCS. Any insurance proceeds in excess of the specified limits and coverage required, which are applicable to a given loss, shall be available to the Site Host. No representation is made that the minimums shown above are sufficient to cover the indemnity or other obligations of the EVCS under this Agreement.

F. Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by Site Host. At the option of Site Host, either:
(1) The insurer will reduce or eliminate such deductibles or self-insured retentions with respect to Site Host, its officers, officials, agents, employees, and volunteers; or (2) EVCS must provide a financial guarantee satisfactory to Site Host guaranteeing payment of losses and related investigations, claim administration, and defense expenses.

G. Other Insurance Provisions
(1) The general liability and automobile liability policies must contain, or be endorsed to contain, the following provisions:
(a) The Site Host, its officers, officials, agents, employees, and volunteers must be included as additional insureds with respect to liability arising out of automobiles owned, leased, hired, or borrowed by or on behalf of EVCS; and with respect to liability arising out of work or operations performed by or on behalf of EVCS including materials, parts or equipment furnished 95 in connection with such work or operations. General Liability coverage shall be provided in the form of an Additional Insured endorsement (CG 20 10 11 85 or both CG 20 10 and CG 20 37 if later ISO revisions are used or the equivalent) to EVCS's insurance policy, or as a separate owner's policy.

The insurance afforded to the additional insureds shall be at least as broad as that afforded to the first named insured.
(b) For any claims related to work performed under this Agreement, EVCS's insurance coverage must be primary insurance with respect to the Site Host, its officers, officials, agents, employees, and volunteers. Any insurance maintained by Site Host, its officers, officials, agents, employees, or volunteers is excess of EVCS' s insurance and shall not contribute to it. (2) If EVCS's services are technologically related, Professional Liability coverage shall include, but not be limited to claims involving infringement of intellectual property, copyright, trademark, invasion of privacy violations, information theft, release of private information, extortion, and network security. The policy shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to such obligations. The policy shall also include, or be endorsed to include property damage liability coverage for damage to, alteration of, loss of, or destruction of electronic data and/or information "property" of the Site Host in the care, custody, or control of the EVCS. If not covered under EVCS's Professional Liability policy, such "property" coverage of the Site Host may be endorsed onto EVCS's Cyber Liability Policy. (3) Should any of the above-described policies be cancelled prior to the policies' expiration date, EVCS agrees that notice of cancellation will be delivered in accordance with the policy provisions.

H. Waiver of Subrogation
(1) EVCS agrees to waive subrogation which any insurer of EVCS may acquire from EVCS by virtue of the payment of any loss. EVCS agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation.
(2) The Workers' Compensation policy must be endorsed with a waiver of subrogation in favor of Site Host for all work performed by EVCS, its employees, agents, and subcontractors.

I. Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A: VII unless otherwise acceptable to Site Host.

J. Verification of Coverage
(1) EVCS must furnish Site Host with all insurance documents to include original Certificates of Insurance plus Additional Insured Endorsements effecting coverage required by this Agreement.
(2) The endorsements should be on forms provided by Site Host or, if on other than Site Host's forms, must conform to Site Host's requirements and be acceptable to Site Host. (3) Site Host must receive and approve all certificates and endorsements before work commences.
96 (4) However, failure to provide the required certificates and endorsements shall not operate as a waiver of these insurance requirements.
(5) Site Host reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage described above at any time.

17. Limitation of Liability

NO WARRANTY, CONDITION OR REPRESENTATION, EXPRESSED,

IMPLIED, ORAL OR STATUTORY, IS PROVIDED TO THE SITE HOST OR

ANY THIRD PARTY, INCLUDING, WITHOUT LIMITATION, ANY
WARRANTY, CONDITION OR REPRESENTATION: (A) OF

MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,

SATISFACTORY QUALITY, OR ARISING FROM A COURSE OF DEALING, USAGE, OR TRADE PRACTICE; (B) THAT THE EQUIPMENT WILL BE FREE

FROM INFRINGEMENT OR VIOLATION OF ANY RIGHTS, INCLUDING INTELLECTUAL PROPERTY RIG HTS OF THIRD PARTIES; OR (C) THAT

THE OPERATION OF ANY SOFTWARE OR HARDWARE SUPPLIED WILL BE UNINTERRUPTED OR ERROR FREE. THIS DISCLAIMER AND EXCLUSION

SHALL APPLY EVEN IF THE EXPRESS WARRANTY HEREIN FAILS OF ITS ESSENTIAL PURPOSE. THE SITE HOST'S SOLE AND EXCLUSIVE

REMEDIES HEREUNDER AND THE ONLY LIABILITY OF SITE HOST IS EXPRESSLY LIMITED TO THE TERMS OF THE AGREEMENT. EVCS SHALL

NOT BE LIABLE TO THE SITE HOST, OR ANY THIRD PARTY, FOR ANY

OTHER SPECIAL, CONSEQUENTIAL, INCIDENTAL, EXEMPLARY OR

INDIRECT COS TS OR DAMAGES, INCLUDING WITHOUT LIMITATION,

LITIGATION COSTS, LOSS OF DATA, LOSS OF PRODUCTION, AND/OR LOSS

OF PROFIT ARISING FROM ANY CAUSE WHATSOEVER, REGARDLESS OF

THE FORM OF THE ACTION, WHETHER IN CONTRACT, TORT (INCLUDING

NEGLIGENCE), STRICT LIABILITY, OR OTHERWISE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH COSTS OR DAMAGES.

FOR PURPOSES OF THIS PROVISION, EVCS INCLUDES EVCS' DIRECTORS,

OFFICERS, EMPLOYEES, AGENTS, REPRESENTATIVES, AFFILIATES, CONTRACTORS, SUBCONTRACTORS, AND SUPPLIERS.

NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, ANY

CLAIMS FOR DAMAGES BY EITHER PARTY ARISING UNDER OR IN

CONNECTION WITH THIS AGREEMENT SHALL BE LIMITED TO ACTUAL RECOVERIES UNDER SUCH PARTY’S INSURANCE POLICIES.

18. Disputes
This Agreement is governed by, and must be construed and enforced in accordance with, the laws of California, excluding principles of conflicts of laws. For every dispute regarding this Agreement: (i) the prevailing party is entitled to its costs, expenses, and reasonable attorney fees (whether incurred at trial, on appeal, or otherwise), in addition to 97 all other damages or awards to which the party may be entitled; (ii) each party consents to the jurisdiction of the courts within Los Angeles County, California and agrees that those courts have personal jurisdiction over each party; (iii) venue must be within Los Angeles County, California; and (iv) the parties must submit the dispute to mediation held within the City of Los Angeles. Every mediation must be completed within 3 months of the date when the initial notice demanding mediation was provided by any party. If, for any reason, the dispute is not resolved through mediation within the 3-month period, then the parties may continue seeking to resolve the dispute by use of any process, inclu ding litigation by trial. No waiver of any provision or breach hereof is a waiver of any other provision or breach. All rights and remedies are cumulative and nonexclusive.

19. Notices
All notices and other communications provided hereunder must be in wri ting and will be deemed given: (i) on the date of hand -delivery; (ii) on the date when sent by facsimile (with confirmation of transmission); (iii) on the date when sent by email, with confirmation of receipt; (iv) the day after sending by a nationally recognized overnight delivery service (with confirmation of transmission); or (v) 3 days after sending by certified mail (return receipt requested).

For purposes of this Agreement, addresses for notification, unless changed from time to time in writing, shall be:

FOR EVCS:

EV Charging Solutions, Inc.

Attn: Ian Vishnevsky
11800 Clark Street
Arcadia, California 91006
[email protected]
323.400.EVCS (3827)
FOR SITE HOST:

City of Hercules
Attn: Dante Hall, City Manager
111 Civic Drive
Hercules CA 94547
[email protected]
510-799-8200
98 20. Successors and Assigns
The covenants, conditions and agreements contained herein shall bind and inure to the benefit of EVCS and Site Host and their respective successors and assigns. EVCS may freely and in its sole discretion assign this Agreement to a third party upon written notice to Site Host. Site Host may not assign this Agreement to any third party without prior written consent of EVCS.

21. Entire Agreement
This Agreement contains all the agreements between the parties hereto and may not be modified in any manner other than by agreement in writing signed by both the parties hereto and their successors in interest.

IN WITNESS WHEREOF, this Agreement is executed by both parties, to become effective on the date last executed.

EVCS
By:______________________________
Printed Name:______________________
Title:___________________________ _
Date:____________________________

SITE HOST
By:______________________________
Printed Name:______________________
Title: _________________________
Date:____________________________
99 EXHIBIT A - Electric Vehicle Charging Station Equipment Specifications 100
101
102
EXHIBIT B – Project Site Info
Utility/Electric Provider (e.g., PG&E, SCE, LA DWP): ________PG&E______________________ Electric Provider Acct. #: ______________________________ Total Estimated Parking Spaces: __________ / Estimated Number of ADA Spaces: ____________ Other: ______________________________________________
103
104
EXHIBIT C – Credit Card Authorization for Initial Deposit

CARDHOLDER INFORMATION
Name:

Billing Street Address:

City: State: Postal Code:

Email
Direct Telephone: ______________________
I hereby affirm that I am the owner of the below referenced credit card and that my name is listed on the front of the credit card. I hereby authorize EV Charging Solutions, Inc. to charge my credit card (listed below) in the amount of $_______________ for payment of the initial Refundable Deposit.

Cardholder Signature X Date: ______________

CREDIT CARD INFORMATION
Credit Card Type: □ MasterCard □ Visa □ American Express □ Discover Card Card Number: _______________________________________________________________ Expiration Month: Expiration Year: Security Code: ____________ 105
EXHIBIT D – Site Host Banking Information (for ACH Payment Purposes) Name on Account:

Name of Bank:________________________________________________________________ Bank Routing Number:

Account Number:
106
EXHIBIT E – Form Easement Agreement
107

DISCUSSION AND/OR ACTION
ITEM
22-529
108

STAFF REPORT TO THE CITY COUNCIL
DATE: May 9, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Joseph Vasquez, Chief of Police
SUBJECT: Update on the Hercules Police Department
RECOMMENDED ACTION: Receive an update on the Hercules Police Department BACKGROUND:

The Hercules Police Department is a professional , full-service, high-quality department which provides law enforcement with fairness and equality to all. Services include public safety, crime prevention, traffic enforcement, response to medical emergencies, keeping the peace, and participating in a variety of community engagement programs.

Our department is committed to being fully inclusive and strives to recruit and retain personnel with high morals and good character. The department currently has 26 full-time sworn personnel, four full -time administrative support staff, one part-time administrative support member, two part -time Parking Enforcement Officers, and one Reserve Police Officer. We are currently in the process of hiring one more Police Officer and hope to have another complete the testing process soon to fill our final vacancy , which will bring our total number of Police Officers to 27. Our staff is also supported by six volunteers who are critical to maintaining our fleet amongst other miscellaneous duties, and four Police Chaplains who provide services during highly emotional and sensitive circumstances.

The organizational structure of the department includes a Chief of Po lice, two Police Commanders, five Police Sergeants, four Police Corporals, two Detectives, eleven Police Officers and one Traffic Enforcement Officer. One Commander is assigned to the Patrol Division, which includes parking enforcement, property and evidence, and fleet maintenance. The other Commander oversees the Administrative Division , which includes the investigations unit and Records personnel. This Commander is also 22-529
109
responsible for hiring, training, policies, and public records act requests. Bot h Commanders also assist with internal affairs investigations/complaints and keeping members of the public informed on social media.

ANALYSIS:

This year began with the implementation of our new report management system , RIMS.

This was a project that inv olved three different law enforcement agencies from three different cities, which spanned over three years before we were prepared to incorporate these services. Prior to going live with this system, an extensive and highly coordinated effort to provide comprehensive training at every level for all three agencies was conducted. On April 7, 2022, we finally went live with RIMS, which also allowed us to be in compliance with new legislation, including the Racial Identifying Profiling Act , and the California Incident-Based Reporting System. These were two critical areas we have been preparing to comply with for years.

A ripple effect was caused by the unanticipated retirement of Chief William Imboden. A sense of uncertainty surfaced before the City Manager first decided to keep the recruitment for a replacement internal, and ultimate ly selected Commander Joseph Vasquez as the next Chief of Police. A retired Hercules Police Sergeant was brought back as an Interim Police Commander to assist with a selection process for the vacant Administrative Police Commander position. He was also responsible for training the new Commander, which was determined to be Sergeant Chris Kim.

As a result of this examination, a Sergeant’s Exam was facilitated to replace the vacancy left by the newly appointed Commander Kim, and to possibly fill the anticipated vacancy left by Sergeant Dan Barazoto, who announced he will be retiring in June 2023. Corporal Chris Costa was selected as Patrol Sergeant, and was appointed in February of this year.

Corporal Jose Moreno also participated in this examination and is scheduled to be appointed Patrol Sergeant in May.

A Corporal’s Examination was conducted, and three Officers were selected to fill three positions, which had been vacant for over two years. These Officers will also serve as Field Training Officers and will be responsible for training all new Officers , while monitoring the progress of probationary Officers.

This year, we also hired two Police Officers, one of whom was recruited by our first Recruit Training Officer assigned to the Contra Costa County Sheriff’s Academy, the first such recruit in almost thirteen years. We also hired an additional full -time Police Support Specialist to assist with the growing demands in the records unit.

The Police Department remain s committed to being proactive as we handled almost 23,000 calls for service, investigated 1,445 part 1 & 2 crimes, made 5 28 arrests, and issued over 900 traffic related citations in calendar year 2022 . Despite the volume of 110
arrests, only 13 use of force incidents were reported during this annual report. This is a testament to the patience, professionalism, and de-escalation tactics used by our Officers to resolve issues at a lower level.

There were many significant cases investigated by our officers this year , which include the arrest of two subjects with ATM skimming devices at Bank of America. These subjects were found to be in possession of $18,000 in cash, and 55 stolen EBT debit cards. They were also wanted by several other California Law Enforcement Agencies and were suspected of stealing over $1,000,000 of EBT funds.

Another significant case included the apprehension of a commercial burglary suspect responsible for committing three commercial burglaries in the City of Hercules, and multiple commercial burglaries in the City of San Pablo. The suspect was apprehended after an observant officer saw a person wearing similar clothing and had a physical description like a suspect in two previous commercial burglaries, walking afterhours in a shopping center on Willow Ave. It was determined the subject had just committed a third burglary in this shopping center but was apprehended before he could take anything.

The Hercules Police Department assisted and facilitated many public events including the 4th of July fireworks, National Night Out, Halloween Trunk or Treat, multiple Coffee with a Cop events including a first ev er weekend edition. We also held our first ever Breakfast with a Badge, where we served a free breakfast to the senior community on Valentine’s Day. The year was also highlighted by bringing back our first Citizen’s Academy in three years with over 20 citizens participating.

During this year, we have worked hard at establishing continuity and consistency. Regular monthly staff meetings and weekly command staff meetings were implemented. With the assistance of all staff members and members of the Hercules community, we adopted a new mission and vision statement, as well as new core values . We are continuing to create fresh and authentic events to engage our community as we move forward in a new era of policing.

Our focus on the incoming year, will be to create a viable and sustainable short and long- term succession plan. Building a robust Officer Wellness Program will be a major priority, as well as re -establishing our Special Response Team to handle high -risk critical incidents. We will work on providing our staff with the resources and training needed to be in compliance with new legislative mandates while providing our citizens with the highest level of service. We look forward to having another highly successful year, building on recent progress, and serving our community with honor. 111
FISCAL IMPACT:

There is no fiscal impact associated with receiving this report.

ATTACHMENTS:

1. Presentation
112

HERCULES
POLICE

DEPARTMENT
2022
113
Hercules Police Department
Vision Statement
We focus on being
professional and compassionate
while committing to public safety.
114
Hercules Police Department
Core Values
Loyalty Duty
Respect
Service
Perseverance
Integrity
Humility
Core Values- Tips of the Star: LDRSHIP
Loyalty- Committed to our community
Duty- To uphold the law
Respect- Treat everyone equally
Service- Meeting the needs of the public
Humility- We demonstrate modesty and dignity
Integrity- We consciously do the right thing to defend
against
corruption
Perseverance- Never give up for the good of the
department and the community
115
Promotions &
Retirements
 July 2022- Joshua Goldstein was hired as a Police
Officer
 October 2022- Chief William Imboden Retired
 October 2022- Joseph Vasquez appointed to Chief
 October 2022- Mory Saengsourith appointed to
Detective
 November 2022- Illeana Gutierrez was hired as a full
time Police Support Specialist
 January 2023- Chun Kim appointed to Commander
 February 2023- Chris Costa appointed to Sergeant
 February 2023- Karson Kauffroath, Michael Thompson
and Chris Hallford were all appointed to Corporal
 February 2023- Kevin Bassi was hired as a Police
Officer
 May 2023- Jose Moreno is currently scheduled to be
appointed to Sergeant
 May 2023- Ezra Tafesse will be appointed to Detective Sergeant
 June 2023- Dan Barazoto will be retiring
116
Report Management System
 After three years of collaborating with two other local law enforcement agencies and multiple vendors, we finally obtained our new Report Management System, RIMS.
 RIMS allows for in-field reporting and can keep our department in compliance with new legislation, such as RIPA (Racial Identifying Profiling Act) and CIBRS (California Incident Based Reporting System).
 We are currently in the process of negotiating a new five-year contract with our Tri-City consortium, which is currently working off a one-year extension from the original five-year contract. 117
2022 Statistics
7 5
0 1
0 0 0 0
0 1
2 3
4 5
6 7
8 Hercules Police Department
2022 Response to Resistance Chart
22953 Calls for Service
Part 1 & 2 Crimes: 1445
Arrests: 528
Traffic Violations: 902
118
Significant Cases
 Fraud Via Used of Stolen Access Cards and
Possession of Skimmers: On December 1, 2022, at
6:56 am, officers w
ere dispatched to Bank of America
at 1611 Sycamore Ave. for a fraud in progress. Bank
of America Security called to report that there were
subjects at the ATM using fraudulent debit cards to
steal money from the bank. Officers arrived on scene
located two subjects at the ATM. One subject ran to
the rear of Big Lots and was detained. The subject
who ran was determined to be a 30-year-old male,
and the other subject was a 29-year-old subject, both
were from Southern California. Both subjects were
determined to be on a crime spree and wanted in
numerous cities for skimming and using stolen EBT
debit cards. The subjects had approximately $18,000
in cash on them and approximately 55 stolen debit
cards. Both were transported to MDF. H22-01342
119
Significant Cases
 Attempted Burglary: On December 13, 2022,
at 3:15am, and officer conducted a pedestrian
stop on a subject standing near a broken
window
at the Zaiqa Restaurant located at 848
Willow Ave. The officer observed the suspect
was wearing clothing that matched video
surveillance footage from two other prior
burglaries at restaurants in Hercules. DOB-
2/2/84 The subject was determined to be a 38-
year-old transient out of Oakland, and he w
as
taken into custody without incident. A records
check of the subject revealed he had an open
case for burglary in Oakland and he was a
suspect in multiple burglaries in the City of San
Pablo. He was found to be in possession of a
window punch and a chisel. The subject was
booked at MDF for two counts of burglary,
attempted burglary, and possession of burglary
tools H22-1390.
120
Community
Engagement
Coffee with a Cop
 We have thoroughly
enjoyed connecting with
our community through
Coffee with a Cop.
 Keep an eye on our
Facebook and Instagram
to see when our next
event will be.
 We have also recently
added weekends to our
calendar!
121
Community Engagement
Reading Across America National Night Out 4 th of July Fireworks 122
Community Engagement
123
Community
Engagement
Breakfast with a Badge
 This was the Hercules Police
Department’s first-time
hosting Breakfast with a
Badge. We were honored
to serve breakfast to over
one hundred seniors. We
hope to make this an
annual event!
124
Community Engagement
Citizen’s Police Academy
 Our first Citizen’s Police Academy in
three years was highly successful.

Over 20 citizens participated over the
course of eight weeks.
125
Organization Chart
Chief of Police
Administrative
Specialist Crofoot
Patrol Commander
Collard
Patrol Sergeant
Tafesse
Corporal
Thompson
Officer
Mendieta
Officer
Lawson
Officer
Goldstein
Patrol Sergeant
Miller
Corporal
Kauffroath
Officer
Sanchez
Officer
Lazo
Officer
Bassi
Traffic
Officer
Moreno
Patrol Sergeant
Montenegro
Corporal
Hallford
Officer
Vallejo
Officer
Scholl
Patrol Sergeant
Costa
Corporal
Fernandez
Officer
Gonis
Officer
Johnson
Officer
Garcia
Parking
Enforcement
Officer Najarro
Parking
Enforcement
Officer
Osmani
Property and
Evidence Clerk
Hernandez
Admin Commander
Kim
Detective
Sergeant
Barazoto
Detective
Tellez
Detective
Saengsourith
Records
Specialist
Nubla
Records
Specialist
Gutierrez
Records
Specialist Ford
126
Future Challenges
 Restrictive and Time-Consuming Legislation
 Hiring- Lack of Qualified Applicants
 Retention/Opportunities
 Youth/Growing Pains
 Resources/Facilities
 True Succession Plan
 Traffic Issues- San Pablo Ave, Sycamore Ave, Refugio Valley Road 127
Future Events
 Breaking Bread With A Badge – April 20, 2023
 Team Building – May 1-4, 2023
 Commander Collard will attend the FBI National Academy in Quantico VA. – Fall 2023
 $20,000 Officer Wellness Grant was received. It has been used to purchase new gym equipment and will go towards Peer Support Training and revamping our Officer Wellness Program
 In the process of receiving a $115,000 grant through the Office of Traffic and Safety (OTS). These funds will be used for a new traffic trailer, DUI check point, and target traffic enforcement such as speeding, stop sign, and traffic signal violations  Working towards reinstating the Special Response Team (SRT)  Mutual Aid Patrol
 Addition of a 4th Detective
128
Mission Statement
Serving with Honor
Thank you
129

DISCUSSION AND/OR ACTION
ITEM
22-526
130
REPO

RT TO THE CITY COUNCIL
DATE: R
egular Meeting of May 9, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Patrick Tang, City Attorney
SUBJECT: Consider and Approve an Amendment to Extend the Trailer Acquisition and Lease Agreement with the Hercules Historical Society (HHS)
RECOMMENDED ACTION:

Adopt
a Resolution authorizing the City Manager to execute an amendment to the Trailer Acquisition and Lease Agreement between the City of Hercules and the Hercules Historical Society (HHS), to continue the lease for an additional five (5) years with an option for a five (5) year extension. A lease provision providing for payment by HHS of an annual amount of $100 to cover utility costs is included as an option for Council to consider.

BACKGROUND:

On F
ebruary 14, 2023, the City Council considered an extension of a Trailer Acquisition and Lease Agreement Between the City of Hercules and the Hercules Historical Society (the “Agreement”) for use of a surplus trailer located adjacent to City Hall. See Attachment 1, February 14, 2023 Staff Report, for details. The original Agreement was for five years, with a five -year extension, which expired February 14, 2023. The HHS has not been required to pay rent or utilities, but as reported to Council on February 12, 2013, HHS incurred the expense of acquiring the trailer from William Scotsman Inc., who originally leased the trailer to the City, thus relieving the City of its obligation to pay the monthly rent owed for the structure. HHS is also required to purchase and maintain liability insurance coverage naming the City as additionally insured.
22-526
131
At the February 14, 2023 meeting the Council deferred action on the proposed lease extension agreement. Instead, Council: 1) Directed staff return to Council with additional information regarding rental and/or lease arrangements with other non-profit groups using City property; 2) Discussed whether a nominal annual payment of $100 should be made by HHS to cover utility costs; and 3) Because the Original Agreement was set to expire, directed staff to enter into a temporary month -to-month lease agreement with HHS until the matter could be brought back to Council for further discussion.

DIS
CUSSION:

An in
terim month-to-month lease was entered into on or about February 23, 2023 per Council direction and is in now effect , s ee Attachment 2. Included with the agenda materials is a proposed lease extension agreement that provides an option for a $100 annual payment intended to compensate the City for utilities, see Attachment 3.

With respect to rental and/or lease arrangements with other non- profit groups for use of City property or facilities, according to Parks and Recreation Director Christopher Roke, the arrangements vary depending on circumstances. C urrently there are 14 City Recognized Nonprofit Groups. City recognized non-profit groups receive two hours of facility space at no charge per week, or eight hours per month. The two hours a week of facility space is usually used for hosting regular meetings of the non-profit groups.

Meetings must be off-peak hours and cannot displace a paid rental.

In addition, each recognized non-profit group must contribute 80 hours of volunteer time to the City per year. The City typically gets assistance from the non-profit groups at four annual events:

1. Cleanup Day

2. Fourth of July

3. Tree Lighting, and

4. Trunk or Treat
Thos
e City recognized non-profits that have additional arrangements with the City for use of City space are as follows:

The Community Garden . Operates on City property within a fenced-in area at Ohlone Park. There is a water meter for the entire park but not specifically for the garden, so the cost of water used at the Community Garden is included in the usage for the entire park. No other utilities are used on the Garden property.

The Friends of the Hercules Library. This nonprofit has a room within the library dedicated for the sale of used books and does not pay rent for this use. All libraries in the County were built with a dedicated room (the size of a small office) to act as a bookstore. In the case of Hercules, the bookstore is staffed by volunteers from the Friends of the Hercules Library. They do not pay rent or any utilities. Additionally, the Friends of the Hercules 132
Library hold a semi-annual book sales event and use the Large Library conference room for this event. They do not pay any fees for the use of the conference room for the book sale events.

The other City recognized nonprofits do not lease or occupy City property on an ongoing or continuing basis but do benefit from the reduced banner and facility rental fees afforded these recognized nonprofits. A brief description of nonprofit activities on City property follows:
• Friends of Hercules Senior Center (FHSC) Runs up to 4 events a year at the Senior Center, and staffs the front desk with volunteers 5 days a week. • Bayfront Chamber - B anner & facility rental s at nonprofit rates. Holds events, City sponsored with special contract.
• Boy Scouts: Troop 76 - 2hr/week meeting space.
• Chinese Association - Mainly facility rental at nonprofit rates. • Democratic Club - No use yet (only 2 years as City Recognized Nonprofit group)
• Hercules Education Foundation (HEF) - Banner & facility rental at nonprofit rates. Holds fundraising events for schools. • Library Foundation – Takes donations, holds fundraisers, writes grants. • Sister City Association - Occasional banner space.
• Rotary - Occasional banner space or meeting space.
• Senior Citizens Club of Hercules - Mainly facility rental or meeting space
• West Contra Costa Youth Soccer League (WCCYSL) – Banner and field space rental at Hanna Ranch
CONCL
USION:

Adop
ting a Resolution to continue the lease for an additional five (5) years with an option for a five (5) year extension will allow HHS to continue to store historically significant materials in a safe environment. The trailer facility is used for storage and is not a regular meeting place and is not otherwise staffed or open to the public, so utility usage is minimal. HHS is agreeable to paying an annual amount of $100 to cover utility costs, and this annual payment is included as an option i n the draft lease terms for Council to consider.
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FISCAL IMPACT:

Ther
e is no fiscal impact to the City in approving this Amendment.

ATT
ACHMENTS:

Atta
ch1- February 14, 2023 Staff Report (with prior Attachments 1-4) Attach 2 - February 2023 Interim Month-to-Month Agreement Attach 3 - Revised Proposed First Amendment to the 2013 Agreement (5 years with 5 year option) with option for Utility Payment
Attach 4 - Resolution Authorizing Amendment to the Agreement 134
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'NTERIMAGREEIVENT TO CONTINUE THE TRAILER LEASE BETWEEN CITY OF HERCULES AND THE HERCULES HISTORICAL SOCIETY ON A MONTH-TO· rvDN·m IBAS:JS PEN:DJNG FORfrJli\L.AIPPR·OVA'.L OF A LEASE ;E.KTEINSION The parties to this Interim Agreement to Continue the Trailer Acguisftion & Lease Agreement Between City of Hercules. California and Hercules Historical Society are the City of Hercules.

Cal ornia (hereinater he City) and t e Herc les H·storical Society (hereinafterthe HHS)~ Recitals
WHERE.AS. HHS and City executed a 5 year Trailer Acguisition & Lease Agreement Between C~y of Hercules and Hercules Historical Society (hereinafter the Original Agreement). effective Fe ruary 14, 2012; a d
EREAS# prior othe expiration of e Original. reement. the City exeicuted a , ice and Addendum to the Trailer Acguisition and Lease Agreement (hereinafter the Addendum) extending the term of the .Agreement until February 14. 2023; and EREAS. t e Cit Council a their reg lar meefrag off ebruary 1 • 2023 d~t:ede t e City Ma a er to ente into a tem orary interim agree ~nt to con inue the rorij -~nal Lease on a month to-mo nth basis until such time as Fina I Approva I of .Amendment 1 that would extend the Origin al Agreement and Addendum for a definite and defined term is approved by C ouncit 0 THEREFORE THE PARTIES REE AS FOLLO S:

T e Parties hereto agree to extend on a month-to-- on h basis the Original Jlgreeme I and Addendum to continue to grant solely to the HHS the exclusw e right to access and lease the Property. eff ectr.J e until such time as the City Council form ally approves an Amendment 1 to the Origi al .Agreement and Ad endum,
This Interim Agreement is pursuant to and consistent with City Council direction at the regular council meeting of February 14. 2023.

HERCULES HISTORICAL SOCIETY
By: /)~~~
P°'rr-~ I J. /uc..,ker
Oate: *3~

CITY OF HERCULES
f ~~~e t?.ij~ger ---
Date: 1 ~ /1"'3 _
155

FIRST AMENDMENT TO THE TRAILER ACQUISITION & LEASE AGREEMENT

BETWEEN THE CITY OF HERCULES, CALIFORNIA AND THE HERCULES

HISTORICAL SOCIETY

Parties to the First Amendment

The parties to this First Amendment to the Trailer Acquisition & Lease Agreement Between City of Hercules, California and Hercules Historical Society are the City of Hercules, California (hereinafter the City) and the Hercules Historical Society (hereinafter the HHS).

Recitals

WHEREAS, HHS and City executed a Trailer Acquisition & Lease Agreement Between City of Hercules and Hercules Historical Society (hereinafter the Agreement), effective February 14, 2012, a copy of which is attached hereto as Exhibit A and incorporated herein by reference; and
WHEREAS, the Agreement provided HHS the exclusive right to access and lease the land owned by City (hereinafter the Property) directly beneath and encompassing the trailer (hereinafter the Building) located adjacent to the northwest end of Hercules City Hall, as more fully described in the Agreement; and
WHEREAS, the grant of exclusive right to HHS for use of the Property was for a period of five (5) years pursuant to Section 3 of the Agreement, unless extended for an additional five (5) years pursuant to Section 2.1 of the Agreement; and WHEREAS, prior to the expiration of the Agreement, the City executed a Notice and Addendum to the Trailer Acquisition and Lease Agreement (hereinafter the Addendum) extending the term of the Agreement pursuant to Section 2.1 of the Agreement until February 14, 2023, a copy of which is attached hereto as Exhibit B and incorporated herein by reference; and
WHEREAS, the Agreement does not provide for extension of the grant of exclusive right to the HHS beyond the expiration of the time specified in the Addendum; and WHEREAS, the Parties now wish to amend the Agreement to extend the term of the Agreement for five (5) additional years beyond the expiration of the Addendum period, with an option to renew this grant of exclusive right to the HHS for an additional five (5) years upon written notice to the HHS.
156
NOW THEREFOR THE PARTIES AGREE AS FOLLOWS:

1. The Parties hereto wish to amend the original Agreement and Addendum to continue to grant solely to the HHS the exclusive right to access and lease the Property for an additional five (5) year period commencing on February 14, 2023, and in effect until February 14, 2028.

2. Prior to the expiration of this First Amendment, the City may renew this grant of exclusive right to HHS for up to an additional five (5) years upon written notice to the HHS.

3. [OPTION TO PAY FEE FOR UTILITIES] For the term of this First Amendment, HHS shall pay to City annually, by December 31 of each calendar year, the amount of $100.00 to compensate the City for the expense of utilities provided to the Building. All other terms and conditions within the original Agreement and Addendum that are not in conflict with the terms of this First Amendment shall remain in full force and effect for the effective life of this First Amendment.

This First Amendment is pursuant to and consistent with City Council Resolution No. 23-_____, adopted by the City Council on May 9, 2023.

HERCULES HISTORICAL SOCIETY

By: ______________________ Date: ______________

CITY OF HERCULES

By:_______________________ Date: ________________
Dante Hall, City Manager

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RESOLUTION NO. 23-___

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE TRAILER

ACQUISITION & LEASE AGREEMENT BETWEEN CITY OF HERCULES AND THE

HERCULES HISTORICAL SOCIETY TO CONTINUE THE LEASE TERM FOR FIVE YEARS

WITH AN UP TO FIVE YEAR EXTENSION

WHEREAS, On February 12, 2013, the City Council approved a Resolution authorizing the City Manager to execute a Trailer Acquisition and Lease Agreement Between the City of Hercules and the Hercules Historical Society (the “Agreement”) for use of a surplus trailer located adjacent to City Hall; and

WHEREAS, the use of the trailer has provided HHS the ability to safely store the HHS collection of historical artifacts that chronicle the history of Hercules; and

WHEREAS, the original Agreement was for five years, and provided for a five year extension; and

WHEREAS, the five year extension to the original Agreement was granted via a Notice and Addendum effective February 14, 2018, and expires February 14, 2023; and

WHEREAS, the HHS requests an amendment to the original Agree ment for the sole purpose of extending the term of the original Agreement, with no additional modifications to the terms and conditions; and
WHEREAS, allowing HHS continued use of the trailer assures that historical artifacts relevant to the history of the City of Hercules are retained in a safe and secure manner ; and
WHEREAS, the original Agreement and Extension have expired, and the lease has been continued by agreement of the Parties on a month-to-month basis.

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

The City Council hereby authorizes the City Manager to execute an amendment to the original Acquisition and Lease Agreement with the Hercules Historical Society relative to the modular building located adjacent to the northwest end of City Hall, to extend the term of the original Agreement for five (5) years with up to a five (5) year extension, [optional requirement for Council consideration in RED] including the provision for payment by HHS to the City of an annual $100 fee to cover the cost of utilities, with no additional modifications to the original terms and conditions .
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The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council held on the 9th day of May, 2023 by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT

____________________
Alex Walker-Griffin, Mayor

ATTEST:

______________________
Eibleis Melendez, City Clerk

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Hercules City CouncilMay 9, 2023

Hercules City Council
May 9, 2023