Hercules City Council
May 23, 2023

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, 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
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 234
Ordinance No. ___

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 implementation 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 235
Ordinance No. ___

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 its 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 23rd day of May, 2023, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

Alexander Walker-Griffin, Mayor
ATTEST:

Eibleis Melendez, Acting City Clerk
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Marin Energy Authority
- Joint Powers Agreement -
Effective December 19, 2008
As amended by Amendment No. 1 dated December 3, 2009
As further amended by Amendment No. 2 dated March 4, 2010 As further amended by Amendment No. 3 dated May 6, 2010 As further amended by Amendment No. 4 dated December 1, 2011 As further amended by Amendment No. 5 dated July 5, 2012 As further amended by Amendment No. 6 dated September 5, 2013 As further amended by Amendment No. 7 dated December 5, 2013 As further amended by Amendment No. 8 dated September 4, 2014 As further amended by Amendment No. 9 dated December 4, 2014 As further amended by Amendment No. 10 dated April 21, 2016 As further amended by Amendment No. 11 dated May 19, 2016 As further amended by Amendment No. 12 dated July 20, 2017 As further amended by Amendment No. 13 dated October 18, 2018 As further amended by Amendment No. 14 dated November 21, 2019 As further amended by Amendment No. 15 dated November 19, 2020 Among the Following Parties:

City of American Canyon
City of Belvedere
City of Benicia
City of Calistoga
City of Concord
Town of Corte Madera
Town of Danville
City of El Cerrito
Town of Fairfax
City of Fairfield
City of Lafayette
City of Larkspur
City of Martinez
Town of Moraga
City of Mill Valley
City of Napa
City of Novato
City of Oakley
City of Pinole
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City of Pittsburg
City of Pleasant Hill
City of Richmond
Town of Ross
Town of San Anselmo
City of San Pablo
City of San Rafael
City of San Ramon
City of Sausalito
City of St. Helena
Town of Tiburon
City of Vallejo
City of Walnut Creek
Town of Yountville
County of Contra Costa
County of Marin
County of Napa
County of Solano
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MARIN ENERGY AUTHORITY

JOINT POWERS AGREEMENT
This Joint Powers Agreement (“Agreement”), effective as of December 19, 2008, is made and entered into pursuant to the provisions of Title 1, Division 7, Chapter 5, Article 1 (Section 6500 et seq.) of the California Government Code relating to the joint exercise of powers among the parties set forth in Exhibit B (“Parties”). The term “Parties” shall also include an incorporated municipality or county added to this Agreement in accordance with Section 3.1.

RECITALS

1. The Parties are either incorporated municipalities or counties sharing various powers under California law, including but not limited to the power to purchase, supply, and aggregate electricity for themselves and their inhabitants.

2. In 2006, the State Legislature adopted AB 32, the Global Warming Solutions Act, which mandates a reduction in greenhouse gas emissions in 2020 to 1990 levels.

The California Air Resources Board is promulgating regulations to implement AB 32 which will require local government to develop programs to reduce greenhouse emissions.

3. The purposes for the Initial Participants (as such term is defined in Section 2.2 below) entering into this Agreement include addressing climate change by reducing energy related greenhouse gas emissions and securing energy supply and price stability, energy efficiencies and local economic benefits. It is the intent of this Agreement to promote the development and use of a wide range of renewable energy sources and energy efficiency programs, including but not limited to solar and wind energy production.

4. The Parties desire to establish a separate public agency, known as the Marin Energy Authority (“Authority”), under the provisions of the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.) (“Act”) in order to collectively study, promote, develop, conduct, operate, and manage energy programs.

5. The Initial Participants have each adopted an ordinance electing to implement through the Authority Community Choice Aggregation, an electric service enterprise agency available to cities and counties pursuant to California Public Utilities Code Section 366.2 (“CCA Program”). The first priority of the Authority will be the consideration of those actions necessary to implement the CCA Program. Regardless of whether or not Program Agreement 1 is approved and the CCA Program becomes operational, the parties intend for the Authority to continue to study, promote, develop, conduct, operate and manage other energy programs.
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AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions hereinafter set forth, it is agreed by and among the Parties as follows:

ARTICLE 1

CONTRACT DOCUMENTS

1.1 Definitions. Capitalized terms used in the Agreement shall have the meanings specified in Exhibit A, unless the context requires otherwise.

1.2 Documents Included. This Agreement consists of this document and the following exhibits, all of which are hereby incorporated into this Agreement.

Exhibit A: Definitions
Exhibit B: List of the Parties
Exhibit C: Annual Energy Use
Exhibit D: Voting Shares

1.3 Revision of Exhibits. The Parties agree that Exhibits B, C and D to this Agreement describe certain administrative matters that may be revised upon the approval of the Board, without such revision constituting an amendment to this Agreement, as described in Section 8.4. The Authority shall provide written notice to the Parties of the revision of any such exhibit.

ARTICLE 2

FORMATION OF MARIN ENERGY AUTHORITY

2.1 Effective Date and Term. This Agreement shall become effective and Marin Energy Authority shall exist as a separate public agency on the date this Agreement is executed by at least two Initial Participants after the adoption of the ordinances required by Public Utilities Code Section 366.2(c)(10). The Authority shall provide notice to the Parties of the Effective Date. The Authority shall continue to exist, and this Agreement shall be effective, until this Agreement is terminated in accordance with Section 7.4, subject to the rights of the Parties to withdraw from the Authority.

2.2 Initial Participants. During the first 180 days after the Effective Date, all other Initial Participants may become a Party by executing this Agreement and delivering an executed copy of this Agreement and a copy of the adopted ordinance required by Public Utilities Code Section 366.2(c)(10) to the Authority.

Additional conditions, described in Section 3.1, may apply (i) to either an incorporated municipality or county desiring to become a Party and is not an Initial Participant and (ii) to Initial Participants that have not executed and delivered this Agreement within the time period described above. 240

2.3 Formation. There is formed as of the Effective Date a public agency named the Marin Energy Authority. Pursuant to Sections 6506 and 6507 of the Act, the Authority is a public agency separate from the Parties. The debts, liabilities or obligations of the Authority shall not be debts, liabilities or obligations of the individual Parties unless the governing board of a Party agrees in writing to assume any of the debts, liabilities or obligations of the Authority. A Party who has not agreed to assume an Authority debt, liability or obligation shall not be responsible in any way for such debt, liability or obligation even if a majority of the Parties agree to assume the debt, liability or obligation of the Authority.

Notwithstanding Section 8.4 of this Agreement, this Section 2.3 may not be amended unless such amendment is approved by the governing board of each Party.

2.4 Purpose. The purpose of this Agreement is to establish an independent public agency in order to exercise powers common to each Party to study, promote, develop, conduct, operate, and manage energy and energy-related climate change programs, and to exercise all other powers necessary and incidental to accomplishing this purpose. Without limiting the generality of the foregoing, the Parties intend for this Agreement to be used as a contractual mechanism by which the Parties are authorized to participate as a group in the CCA Program, as further described in Section 5.1. The Parties intend that subsequent agreements shall define the terms and conditions associated with the actual implementation of the CCA Program and any other energy programs approved by the Authority.

2.5 Powers. The Authority shall have all powers common to the Parties and such additional powers accorded to it by law. The Authority is authorized, in its own name, to exercise all powers and do all acts necessary and proper to carry out the provisions of this Agreement and fulfill its purposes, including, but not limited to, each of the following:

2.5.1 make and enter into contracts;

2.5.2 employ agents and employees, including but not limited to an Executive Director;

2.5.3 acquire, contract, manage, maintain, and operate any buildings, works or improvements;

2.5.4 acquire by eminent domain, or otherwise, except as limited under Section 6508 of the Act, and to hold or dispose of any property;

2.5.5 lease any property;

2.5.6 sue and be sued in its own name;

2.5.7 incur debts, liabilities, and obligations, including but not limited to loans from private lending sources pursuant to its temporary borrowing powers such as Government Code Section 53850 et seq. and authority under the Act;

2.5.8 issue revenue bonds and other forms of indebtedness;

2.5.9 apply for, accept, and receive all licenses, permits, grants, loans or other aids from any federal, state or local public agency;
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2.5.10 submit documentation and notices, register, and comply with orders, tariffs and agreements for the establishment and implementation of the CCA Program and other energy programs;

2.5.11 adopt rules, regulations, policies, bylaws and procedures governing the operation of the Authority (“Operating Rules and Regulations”); and

2.5.12 make and enter into service agreements relating to the provision of services necessary to plan, implement, operate and administer the CCA Program and other energy programs, including the acquisition of electric power supply and the provision of retail and regulatory support services.

2.6 Limitation on Powers. As required by Government Code Section 6509, the power of the Authority is subject to the restrictions upon the manner of exercising power possessed by the County of Marin.

2.7 Compliance with Local Zoning and Building Laws. Notwithstanding any other provisions of this Agreement or state law, any facilities, buildings or structures located, constructed or caused to be constructed by the Authority within the territory of the Authority shall comply with the General Plan, zoning and building laws of the local jurisdiction within which the facilities, buildings or structures are constructed.

ARTICLE 3

AUTHORITY PARTICIPATION

3.1 Addition of Parties. Subject to Section 2.2, relating to certain rights of Initial Participants, other incorporated municipalities and counties may become Parties upon (a) the adoption of a resolution by the governing body of such incorporated municipality or such county requesting that the incorporated municipality or county, as the case may be, become a member of the Authority, (b) the adoption, by an affirmative vote of the Board satisfying the requirements described in Section 4.9.1, of a resolution authorizing membership of the additional incorporated municipality or county, specifying the membership payment, if any, to be made by the additional incorporated municipality or county to reflect its pro rata share of organizational, planning and other pre-existing expenditures, and describing additional conditions, if any, associated with membership, (c) the adoption of an ordinance required by Public Utilities Code Section 366.2(c)(10) and execution of this Agreement and other necessary program agreements by the incorporated municipality or county, (d) payment of the membership payment, if any, and (e) satisfaction of any conditions established by the Board.

Notwithstanding the foregoing, in the event the Authority decides to not implement a CCA Program, the requirement that an additional party adopt the ordinance required by Public Utilities Code Section 366.2(c)(10) shall not apply.

Under such circumstance, the Board resolution authorizing membership of an additional incorporated municipality or county shall be adopted in accordance with the voting requirements of Section 4.10.

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3.2 Continuing Participation. The Parties acknowledge that membership in the Authority may change by the addition and/or withdrawal or termination of Parties.

The Parties agree to participate with such other Parties as may later be added, as described in Section 3.1. The Parties also agree that the withdrawal or termination of a Party shall not affect this Agreement or the remaining Parties’ continuing obligations under this Agreement.

ARTICLE 4

GOVERNANCE AND INTERNAL ORGANIZATION

4.1 Board of Directors. The governing body of the Authority shall be a Board of Directors (“Board”) consisting of one director for each Party appointed in accordance with Section 4.2.

4.2 Appointment and Removal of Directors. The Directors shall be appointed and may be removed as follows:

4.2.1 The governing body of each Party shall appoint and designate in writing one regular Director who shall be authorized to act for and on behalf of the Party on matters within the powers of the Authority. The governing body of each Party also shall appoint and designate in writing one alternate Director who may vote on matters when the regular Director is absent from a Board meeting. The person appointed and designated as the Director or the alternate Director shall be a member of the governing body of the Party. As an alternative to appointing its own Director and alternate Director, the governing body of any Party may elect to designate another Party within the same county (the “designated Party”) to represent it on the Board with the Director and alternate Director from the designated Party (the “consolidated Parties”). Notwithstanding any provision in this Agreement to the contrary, in the case of such an election by one or more Parties in the same county, the designated Party shall have the combined votes and voting shares of the consolidated Parties and shall vote on behalf of the consolidated Parties. The governing body of a Party may revoke its designation of another Party to vote on its behalf at any time. Neither an election by a Party to designate another Party to vote on its behalf or a revocation of this election shall be effective unless provided in a written notice to the Authority.

4.2.2 The Operating Rules and Regulations, to be developed and approved by the Board in accordance with Section 2.5.11, shall specify the reasons for and process associated with the removal of an individual Director for cause. Notwithstanding the foregoing, no Party shall be deprived of its right to seat a Director on the Board and any such Party for which its 243
Director and/or alternate Director has been removed may appoint a replacement.

4.3 Terms of Office. Each Director shall serve at the pleasure of the governing body of the Party that the Director represents, and may be removed as Director by such governing body at any time. If at any time a vacancy occurs on the Board, a replacement shall be appointed to fill the position of the previous Director in accordance with the provisions of Section 4.2 within 90 days of the date that such position becomes vacant.

4.4 Quorum. A majority of the Directors shall constitute a quorum, except that less than a quorum may adjourn from time to time in accordance with law.

4.5 Powers and Function of the Board. The Board shall conduct or authorize to be conducted all business and activities of the Authority, consistent with this Agreement, the Authority Documents, the Operating Rules and Regulations, and applicable law.

4.6 Executive Committee. The Board may establish an executive committee consisting of a smaller number of Directors. The Board may delegate to the executive committee such authority as the Board might otherwise exercise, subject to limitations placed on the Board’s authority to delegate certain essential functions, as described in the Operating Rules and Regulations. The Board may not delegate to the Executive Committee or any other committee its authority under Section 2.5.11 to adopt and amend the Operating Rules and Regulations.

4.7 Commissions, Boards and Committees. The Board may establish any advisory commissions, boards and committees as the Board deems appropriate to assist the Board in carrying out its functions and implementing the CCA Program, other energy programs and the provisions of this Agreement.

4.8 Director Compensation. Compensation for work performed by Directors on behalf of the Authority shall be borne by the Party that appointed the Director.

The Board, however, may adopt by resolution a policy relating to the reimbursement of expenses incurred by Directors.

4.9 Board Voting Related to the CCA Program.

4.9.1. To be effective, on all matters specifically related to the CCA Program, a vote of the Board shall consist of the following: (1) a majority of all Directors shall vote in the affirmative or such higher voting percentage expressly set forth in Sections 7.2 and 8.4 (the “percentage vote”) and (2) the corresponding voting shares (as described in Section 4.9.2 and Exhibit D) of all such Directors voting in the affirmative shall exceed 50%, or such other higher voting shares percentage expressly set forth in Sections

7.2 and 8.4 (the “percentage voting shares”), provided that, in instances in which such other higher voting share percentage would result in any one 244
Director having a voting share that equals or exceeds that which is necessary to disapprove the matter being voted on by the Board, at least one other Director shall be required to vote in the negative in order to disapprove such matter.

4.9.2. Unless otherwise stated herein, voting shares of the Directors shall be determined by combining the following: (1) an equal voting share for each Director determined in accordance with the formula detailed in Section

4.9.2.1, below; and (2) an additional voting share determined in accordance with the formula detailed in Section 4.9.2.2, below.

4.9.2.1 Pro Rata Voting Share. Each Director shall have an equal voting share as determined by the following formula: (1/total number of Directors) multiplied by 50, and

4.9.2.2 Annual Energy Use Voting Share. Each Director shall have an additional voting share as determined by the following formula:
(Annual Energy Use/Total Annual Energy) multiplied by 50, where (a) “Annual Energy Use” means, (i) with respect to the first 5 years following the Effective Date, the annual electricity usage, expressed in kilowatt hours (“kWhs”), within the Party’s respective jurisdiction and (ii) with respect to the period after the fifth anniversary of the Effective Date, the annual electricity usage, expressed in kWhs, of accounts within a Party’s respective jurisdiction, and any additional jurisdictions which they represent, that are served by the Authority and (b) “Total Annual Energy” means the sum of all Parties’ Annual Energy Use. The initial values for Annual Energy use are designated in Exhibit C, and shall be adjusted annually as soon as reasonably practicable after January 1, but no later than March 1 of each year

4.9.2.3 The voting shares are set forth in Exhibit D. Exhibit D may be updated to reflect revised annual energy use amounts and any changes in the parties to the Agreement without amending the Agreement provided that the Board is provided a copy of the updated Exhibit D.

4.10 Board Voting on General Administrative Matters and Programs Not Involving CCA. Except as otherwise provided by this Agreement or the Operating Rules and Regulations, each member shall have one vote on general administrative matters, including but not limited to the adoption and amendment of the Operating Rules and Regulations, and energy programs not involving CCA.

Action on these items shall be determined by a majority vote of the quorum present and voting on the item or such higher voting percentage expressly set forth in Sections 7.2 and 8.4.
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4.11 Board Voting on CCA Programs Not Involving CCA That Require Financial Contributions. The approval of any program or other activity not involving CCA that requires financial contributions by individual Parties shall be approved only by a majority vote of the full membership of the Board subject to the right of any Party who votes against the program or activity to opt-out of such program or activity pursuant to this section. The Board shall provide at least 45 days prior written notice to each Party before it considers the program or activity for adoption at a Board meeting. Such notice shall be provided to the governing body and the chief administrative officer, city manager or town manager of each Party.

The Board also shall provide written notice of such program or activity adoption to the above-described officials of each Party within 5 days after the Board adopts the program or activity. Any Party voting against the approval of a program or other activity of the Authority requiring financial contributions by individual Parties may elect to opt-out of participation in such program or activity by providing written notice of this election to the Board within 30 days after the program or activity is approved by the Board. Upon timely exercising its opt-out election, a Party shall not have any financial obligation or any liability whatsoever for the conduct or operation of such program or activity.

4.12 Meetings and Special Meetings of the Board. The Board shall hold at least four regular meetings per year, but the Board may provide for the holding of regular meetings at more frequent intervals. The date, hour and place of each regular meeting shall be fixed by resolution or ordinance of the Board. Regular meetings may be adjourned to another meeting time. Special meetings of the Board may be called in accordance with the provisions of California Government Code Section 54956. Directors may participate in meetings telephonically, with full voting rights, only to the extent permitted by law. All meetings of the Board shall be conducted in accordance with the provisions of the Ralph M. Brown Act (California Government Code Section 54950 et seq.).

4.13 Selection of Board Officers.

4.13.1 Chair and Vice Chair. The Directors shall select, from among themselves, a Chair, who shall be the presiding officer of all Board meetings, and a Vice Chair, who shall serve in the absence of the Chair.

The term of office of the Chair and Vice Chair shall continue for one year, but there shall be no limit on the number of terms held by either the Chair or Vice Chair. The office of either the Chair or Vice Chair shall be declared vacant and a new selection shall be made if: (a) the person serving dies, resigns, or the Party that the person represents removes the person as its representative on the Board or (b) the Party that he or she represents withdraws form the Authority pursuant to the provisions of this Agreement.

4.13.2 Secretary. The Board shall appoint a Secretary, who need not be a member of the Board, who shall be responsible for keeping the minutes of 246
all meetings of the Board and all other official records of the Authority.

4.13.3 Treasurer and Auditor. The Board shall appoint a qualified person to act as the Treasurer and a qualified person to act as the Auditor, neither of whom needs to be a member of the Board. If the Board so designates, and in accordance with the provisions of applicable law, a qualified person may hold both the office of Treasurer and the office of Auditor of the Authority. Unless otherwise exempted from such requirement, the Authority shall cause an independent audit to be made by a certified public accountant, or public accountant, in compliance with Section 6505 of the Act. The Treasurer shall act as the depositary of the Authority and have custody of all the money of the Authority, from whatever source, and as such, shall have all of the duties and responsibilities specified in Section 6505.5 of the Act. The Board may require the Treasurer and/or Auditor to file with the Authority an official bond in an amount to be fixed by the Board, and if so requested the Authority shall pay the cost of premiums associated with the bond. The Treasurer shall report directly to the Board and shall comply with the requirements of treasurers of incorporated municipalities. The Board may transfer the responsibilities of Treasurer to any person or entity as the law may provide at the time. The duties and obligations of the Treasurer are further specified in Article 6.

4.14 Administrative Services Provider. The Board may appoint one or more administrative services providers to serve as the Authority’s agent for planning, implementing, operating and administering the CCA Program, and any other program approved by the Board, in accordance with the provisions of a written agreement between the Authority and the appointed administrative services provider or providers that will be known as an Administrative Services Agreement. The Administrative Services Agreement shall set forth the terms and conditions by which the appointed administrative services provider shall perform or cause to be performed all tasks necessary for planning, implementing, operating and administering the CCA Program and other approved programs. The Administrative Services Agreement shall set forth the term of the Agreement and the circumstances under which the Administrative Services Agreement may be terminated by the Authority. This section shall not in any way be construed to limit the discretion of the Authority to hire its own employees to administer the CCA Program or any other program.

ARTICLE 5

IMPLEMENTATION ACTION AND AUTHORITY DOCUMENTS

5.1 Preliminary Implementation of the CCA Program.
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5.1.1 Enabling Ordinance. Except as otherwise provided by Section 3.1, prior to the execution of this Agreement, each Party shall adopt an ordinance in accordance with Public Utilities Code Section 366.2(c)(10) for the purpose of specifying that the Party intends to implement a CCA Program by and through its participation in the Authority.

5.1.2 Implementation Plan. The Authority shall cause to be prepared an Implementation Plan meeting the requirements of Public Utilities Code Section 366.2 and any applicable Public Utilities Commission regulations as soon after the Effective Date as reasonably practicable. The Implementation Plan shall not be filed with the Public Utilities Commission until it is approved by the Board in the manner provided by Section 4.9.

5.1.3 Effect of Vote On Required Implementation Action. In the event that two or more Parties vote to approve Program Agreement 1 or any earlier action required for the implementation of the CCA Program (“Required Implementation Action”), but such vote is insufficient to approve the Required Implementation Action under Section 4.9, the following will occur:

5.1.3.1 The Parties voting against the Required Implementation Action shall no longer be a Party to this Agreement and this Agreement shall be terminated, without further notice, with respect to each of the Parties voting against the
Required Implementation Action at the time this vote is final. The Board may take a provisional vote on a
Required Implementation Action in order to initially
determine the position of the Parties on the Required
Implementation Action. A vote, specifically stated in the record of the Board meeting to be a provisional vote, shall not be considered a final vote with the consequences
stated above. A Party who is terminated from this
Agreement pursuant to this section shall be considered the same as a Party that voluntarily withdrew from the
Agreement under Section 7.1.1.1.

5.1.3.2 After the termination of any Parties pursuant to Section

5.1.3.1, the remaining Parties to this Agreement shall be only the Parties who voted in favor of the Required
Implementation Action.

5.1.4 Termination of CCA Program. Nothing contained in this Article or this Agreement shall be construed to limit the discretion of the Authority to terminate the implementation or operation of the CCA Program at any 248
time in accordance with any applicable requirements of state law.

5.2 Authority Documents. The Parties acknowledge and agree that the affairs of the Authority will be implemented through various documents duly adopted by the Board through Board resolution, including but not necessarily limited to the Operating Rules and Regulations, the annual budget, and specified plans and policies defined as the Authority Documents by this Agreement. The Parties agree to abide by and comply with the terms and conditions of all such Authority Documents that may be adopted by the Board, subject to the Parties’ right to withdraw from the Authority as described in Article 7.

ARTICLE 6

FINANCIAL PROVISIONS

6.1 Fiscal Year. The Authority’s fiscal year shall be 12 months commencing April 1 and ending March 31. The fiscal year may be changed by Board resolution.

6.2 Depository.

6.2.1 All funds of the Authority shall be held in separate accounts in the name of the Authority and not commingled with funds of any Party or any other person or entity.

6.2.2 All funds of the Authority shall be strictly and separately accounted for, and regular reports shall be rendered of all receipts and disbursements, at least quarterly during the fiscal year. The books and records of the Authority shall be open to inspection by the Parties at all reasonable times.

The Board shall contract with a certified public accountant or public accountant to make an annual audit of the accounts and records of the Authority, which shall be conducted in accordance with the requirements of Section 6505 of the Act.

6.2.3 All expenditures shall be made in accordance with the approved budget and upon the approval of any officer so authorized by the Board in accordance with its Operating Rules and Regulations. The Treasurer shall draw checks or warrants or make payments by other means for claims or disbursements not within an applicable budget only upon the prior approval of the Board.

6.3 Budget and Recovery Costs.

6.3.1 Budget. The initial budget shall be approved by the Board. The Board may revise the budget from time to time through an Authority Document as may be reasonably necessary to address contingencies and unexpected 249
expenses. All subsequent budgets of the Authority shall be prepared and approved by the Board in accordance with the Operating Rules and Regulations.

6.3.2 County Funding of Initial Costs. The County of Marin shall fund the Initial Costs of the Authority in implementing the CCA Program in an amount not to exceed $500,000 unless a larger amount of funding is approved by the Board of Supervisors of the County. This funding shall be paid by the County at the times and in the amounts required by the Authority. In the event that the CCA Program becomes operational, these Initial Costs paid by the County of Marin shall be included in the customer charges for electric services as provided by Section 6.3.4 to the extent permitted by law, and the County of Marin shall be reimbursed from the payment of such charges by customers of the Authority. The Authority may establish a reasonable time period over which such costs are recovered. In the event that the CCA Program does not become operational, the County of Marin shall not be entitled to any reimbursement of the Initial Costs it has paid from the Authority or any Party.

6.3.3 CCA Program Costs. The Parties desire that, to the extent reasonably practicable, all costs incurred by the Authority that are directly or indirectly attributable to the provision of electric services under the CCA Program, including the establishment and maintenance of various reserve and performance funds, shall be recovered through charges to CCA customers receiving such electric services.

6.3.4 General Costs. Costs that are not directly or indirectly attributable to the provision of electric services under the CCA Program, as determined by the Board, shall be defined as general costs. General costs shall be shared among the Parties on such basis as the Board shall determine pursuant to an Authority Document.

6.3.5 Other Energy Program Costs. Costs that are directly or indirectly attributable to energy programs approved by the Authority other than the CCA Program shall be shared among the Parties on such basis as the Board shall determine pursuant to an Authority Document.

ARTICLE 7

WITHDRAWAL AND TERMINATION

7.1 Withdrawal.
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7.1.1 General.

7.1.1.1 Prior to the Authority’s execution of Program Agreement 1, any Party may withdraw its membership in the Authority by giving no less than 30 days advance written notice of its election to do so, which notice shall be given to the Authority and each Party. To permit consideration by the governing body of each Party, the Authority shall provide a copy of the proposed Program Agreement 1 to each Party at least 90 days prior to the consideration of such agreement by the Board.

7.1.1.2 Subsequent to the Authority’s execution of Program Agreement 1, a Party may withdraw its membership in the Authority, effective as of the beginning of the Authority’s fiscal year, by giving no less than 6 months advance written notice of its election to do so, which notice shall be given to the Authority and each Party, and upon such other conditions as may be prescribed in Program Agreement 1.

7.1.2 Amendment. Notwithstanding Section 7.1.1, a Party may withdraw its membership in the Authority following an amendment to this Agreement in the manner provided by Section 8.4.

7.1.3 Continuing Liability; Further Assurances. A Party that withdraws its membership in the Authority may be subject to certain continuing liabilities, as described in Section 7.3. The withdrawing Party and the Authority shall execute and deliver all further instruments and documents, and take any further action that may be reasonably necessary, as determined by the Board, to effectuate the orderly withdrawal of such Party from membership in the Authority. The Operating Rules and Regulations shall prescribe the rights if any of a withdrawn Party to continue to participate in those Board discussions and decisions affecting customers of the CCA Program that reside or do business within the jurisdiction of the Party.

7.2 Involuntary Termination of a Party. This Agreement may be terminated with respect to a Party for material non-compliance with provisions of this Agreement or the Authority Documents upon an affirmative vote of the Board in which the minimum percentage vote and percentage voting shares, as described in Section

4.9.1, shall be no less than 67%, excluding the vote and voting shares of the Party subject to possible termination. Prior to any vote to terminate this Agreement with respect to a Party, written notice of the proposed termination and the reason(s) for such termination shall be delivered to the Party whose termination is proposed at least 30 days prior to the regular Board meeting at which such matter shall first be discussed as an agenda item. The written notice of proposed termination shall specify the particular provisions of this Agreement or the Authority Documents that the Party has allegedly violated. The Party subject to possible termination 251
shall have the opportunity at the next regular Board meeting to respond to any reasons and allegations that may be cited as a basis for termination prior to a vote regarding termination. A Party that has had its membership in the Authority terminated may be subject to certain continuing liabilities, as described in Section

7.3. In the event that the Authority decides to not implement the CCA Program, the minimum percentage vote of 67% shall be conducted in accordance with Section 4.10 rather than Section 4.9.1.

7.3 Continuing Liability; Refund. Upon a withdrawal or involuntary termination of a Party, the Party shall remain responsible for any claims, demands, damages, or liabilities arising from the Party’s membership in the Authority through the date of its withdrawal or involuntary termination, it being agreed that the Party shall not be responsible for any claims, demands, damages, or liabilities arising after the date of the Party’s withdrawal or involuntary termination. In addition, such Party also shall be responsible for any costs or obligations associated with the Party’s participation in any program in accordance with the provisions of any agreements relating to such program provided such costs or obligations were incurred prior to the withdrawal of the Party. The Authority may withhold funds otherwise owing to the Party or may require the Party to deposit sufficient funds with the Authority, as reasonably determined by the Authority, to cover the Party’s liability for the costs described above. Any amount of the Party’s funds held on deposit with the Authority above that which is required to pay any liabilities or obligations shall be returned to the Party.

7.4 Mutual Termination. This Agreement may be terminated by mutual agreement of all the Parties; provided, however, the foregoing shall not be construed as limiting the rights of a Party to withdraw its membership in the Authority, and thus terminate this Agreement with respect to such withdrawing Party, as described in Section 7.1.

7.5 Disposition of Property upon Termination of Authority. Upon termination of this Agreement as to all Parties, any surplus money or assets in possession of the Authority for use under this Agreement, after payment of all liabilities, costs, expenses, and charges incurred under this Agreement and under any program documents, shall be returned to the then-existing Parties in proportion to the contributions made by each.

ARTICLE 8

MISCELLANEOUS PROVISIONS

8.1 Dispute Resolution. The Parties and the Authority shall make reasonable efforts to settle all disputes arising out of or in connection with this Agreement. Should 252
such efforts to settle a dispute, after reasonable efforts, fail, the dispute shall be settled by binding arbitration in accordance with policies and procedures established by the Board.

8.2 Liability of Directors, Officers, and Employees. The Directors, officers, and employees of the Authority shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties pursuant to this Agreement. No current or former Director, officer, or employee will be responsible for any act or omission by another Director, officer, or employee. The Authority shall defend, indemnify and hold harmless the individual current and former Directors, officers, and employees for any acts or omissions in the scope of their employment or duties in the manner provided by Government Code Section 995 et seq. Nothing in this section shall be construed to limit the defenses available under the law, to the Parties, the Authority, or its Directors, officers, or employees.

8.3 Indemnification of Parties. The Authority shall acquire such insurance coverage as is necessary to protect the interests of the Authority, the Parties and the public.

The Authority shall defend, indemnify and hold harmless the Parties and each of their respective Board or Council members, officers, agents and employees, from any and all claims, losses, damages, costs, injuries and liabilities of every kind arising directly or indirectly from the conduct, activities, operations, acts, and omissions of the Authority under this Agreement.

8.4 Amendment of this Agreement. This Agreement may be amended by an affirmative vote of the Board in which the minimum percentage vote and percentage voting shares, as described in Section 4.9.1, shall be no less than 67%.

The Authority shall provide written notice to all Parties of amendments to this Agreement, including the effective date of such amendments. A Party shall be deemed to have withdrawn its membership in the Authority effective immediately upon the vote of the Board approving an amendment to this Agreement if the Director representing such Party has provided notice to the other Directors immediately preceding the Board’s vote of the Party’s intention to withdraw its membership in the Authority should the amendment be approved by the Board.

As described in Section 7.3, a Party that withdraws its membership in the Authority in accordance with the above-described procedure may be subject to continuing liabilities incurred prior to the Party’s withdrawal. In the event that the Authority decides to not implement the CCA Program, the minimum percentage vote of 67% shall be conducted in accordance with Section 4.10 rather than Section 4.9.1.

8.5 Assignment. Except as otherwise expressly provided in this Agreement, the rights and duties of the Parties may not be assigned or delegated without the advance written consent of all of the other Parties, and any attempt to assign or delegate such rights or duties in contravention of this Section 8.5 shall be null and void. This Agreement shall inure to the benefit of, and be binding upon, the 253
successors and assigns of the Parties. This Section 8.5 does not prohibit a Party from entering into an independent agreement with another agency, person, or entity regarding the financing of that Party’s contributions to the Authority, or the disposition of proceeds which that Party receives under this Agreement, so long as such independent agreement does not affect, or purport to affect, the rights and duties of the Authority or the Parties under this Agreement.

8.6 Severability. If one or more clauses, sentences, paragraphs or provisions of this Agreement shall be held to be unlawful, invalid or unenforceable, it is hereby agreed by the Parties, that the remainder of the Agreement shall not be affected thereby. Such clauses, sentences, paragraphs or provision shall be deemed reformed so as to be lawful, valid and enforced to the maximum extent possible.

8.7 Further Assurances. Each Party agrees to execute and deliver all further instruments and documents, and take any further action that may be reasonably necessary, to effectuate the purposes and intent of this Agreement.

8.8 Execution by Counterparts. This Agreement may be executed in any number of counterparts, and upon execution by all Parties, each executed counterpart shall have the same force and effect as an original instrument and as if all Parties had signed the same instrument. Any signature page of this Agreement may be detached from any counterpart of this Agreement without impairing the legal effect of any signatures thereon, and may be attached to another counterpart of this Agreement identical in form hereto but having attached to it one or more signature pages.

8.9 Parties to be Served Notice. Any notice authorized or required to be given pursuant to this Agreement shall be validly given if served in writing either personally, by deposit in the United States mail, first class postage prepaid with return receipt requested, or by a recognized courier service. Notices given (a) personally or by courier service shall be conclusively deemed received at the time of delivery and receipt and (b) by mail shall be conclusively deemed given 48 hours after the deposit thereof (excluding Saturdays, Sundays and holidays) if the sender receives the return receipt. All notices shall be addressed to the office of the clerk or secretary of the Authority or Party, as the case may be, or such other person designated in writing by the Authority or Party. Notices given to one Party shall be copied to all other Parties. Notices given to the Authority shall be copied to all Parties.
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ARTICLE 9

SIGNATURE
IN WITNESS WHEREOF, the parties hereto have executed this Joint Powers Agreement establishing Marin Clean Energy (formerly, Marin Energy Authority) By:

Name:

Title:- - --="Ci"t'y-'--=M=:.=.:..a:=a.g:n: =cr:e.-_ _ _ _ _ _ Date:- - ----=-J=-u=ne::...1..:.2, =2.,,,'"0"'-1"'-9_ _ _ _ _ _ Party: City of Vallejo
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Exhibit A
To the
Joint Powers Agreement
Marin Energy Authority
-Definitions-
“AB 117” means Assembly Bill 117 (Stat. 2002, ch. 838, codified at Public Utilities Code Section 366.2), which created CCA.
“Act” means the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.)
“Administrative Services Agreement” means an agreement or agreements entered into after the Effective Date by the Authority with an entity that will perform tasks necessary for planning, implementing, operating and administering the CCA Program or any other energy programs adopted by the Authority.
“Agreement” means this Joint Powers Agreement.
“Annual Energy Use” has the meaning given in Section 4.9.2.2. “Authority” means the Marin Energy Authority.
“Authority Document(s)” means document(s) duly adopted by the Board by resolution or motion implementing the powers, functions and activities of the Authority, including but not limited to the Operating Rules and Regulations, the annual budget, and plans and policies.
“Board” means the Board of Directors of the Authority.
“CCA” or “Community Choice Aggregation” means an electric service option available to cities and counties pursuant to Public Utilities Code Section 366.2. “CCA Program” means the Authority’s program relating to CCA that is principally described in Sections 2.4 and 5.1.
“Director” means a member of the Board of Directors representing a Party. “Effective Date” means the date on which this Agreement shall become effective and the Marin Energy Authority shall exist as a separate public agency, as further described in Section 2.1.
“Implementation Plan” means the plan generally described in Section 5.1.2 of this Agreement that is required under Public Utilities Code Section 366.2 to be filed with the 292
California Public Utilities Commission for the purpose of describing a proposed CCA Program.
“Initial Costs” means all costs incurred by the Authority relating to the establishment and initial operation of the Authority, such as the hiring of an Executive Director and any administrative staff, any required accounting, administrative, technical and legal services in support of the Authority’s initial activities or in support of the negotiation, preparation and approval of one or more Administrative Services Provider Agreements and Program Agreement 1. Administrative and operational costs incurred after the approval of Program Agreement 1 shall not be considered Initial Costs. “Initial Participants” means, for the purpose of this Agreement, the signatories to this JPA as of May 5, 2010 including City of Belvedere, Town of Fairfax, City of Mill Valley, Town of San Anselmo, City of San Rafael, City of Sausalito, Town of Tiburon and County of Marin.
“Operating Rules and Regulations” means the rules, regulations, policies, bylaws and procedures governing the operation of the Authority. “Parties” means, collectively, the signatories to this Agreement that have satisfied the conditions in Sections 2.2 or 3.2 such that it is considered a member of the Authority. “Party” means, singularly, a signatory to this Agreement that has satisfied the conditions in Sections 2.2 or 3.2 such that it is considered a member of the Authority. “Program Agreement 1” means the agreement that the Authority will enter into with an energy service provider that will provide the electricity to be distributed to customers participating in the CCA Program.
“Total Annual Energy” has the meaning given in Section 4.9.2.2. 293
Exhibit B
To the
Joint Powers Agreement
Marin Energy Authority
-List of the PartiesCity of American Canyon
City of Belvedere
City of Benicia
City of Calistoga
City of Concord
Town of Corte Madera
Town of Danville
City of El Cerrito
Town of Fairfax
City of Fairfield
City of Lafayette
City of Larkspur
City of Martinez
Town of Moraga
City of Mill Valley
City of Napa
City of Novato
City of Oakley
City of Pinole
City of Pittsburg
City of Pleasant Hill
City of Richmond
Town of Ross
Town of San Anselmo
City of San Pablo
City of San Rafael
City of San Ramon
City of Sausalito
St. Helena
Town of Tiburon
City of Vallejo
City of Walnut Creek
Town of Yountville
County of Contra Costa
County of Marin
County of Napa
County of Solano
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Exhibit C
Marin Clean Energy
This Exhibit C is effective as of November 19, 2020.

MCE Member Communities
- Annual Energy
Use -
This Exhibit C is effective as of November 19, 2020.

MCE Member Community kWh (2019)
City of American Canyon

76,695,933
City of Belvedere

7,577,958
City of Benicia

113,063,212
City of Calistoga

25,994,261
City of Concord

498,162,604
Town of Corte Madera

46,419,358
County of Contra Costa

673,004,355
Town of Danville

159,347,837
City of El Cerrito

57,817,586
Town of Fairfax

17,969,915
City of Fairfield*

452,596,498
City of Lafayette

94,682,154
City of Larkspur

42,611,547
City of Martinez

151,009,009
City of Mill Valley

44,571,991
County of Marin

231,346,718
Town of Moraga

43,994,965
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City of Napa

306,136,179
County of Napa 299,606,262
City of Novato

184,366,404
City of Oakley

105,972,646
City of Pinole

64,070,289
City of Pittsburg

404,506,338
City of Pleasant Hill*

125,951,493
City of Richmond

374,022,160
Town of Ross

9,855,768
Town of San Anselmo

32,381,273
City of San Ramon

301,946,012
City of Saint Helena

48,784,002
City of San Pablo

63,337,637
City of San Rafael

218,232,540
City of Sausalito

32,001,734
County of Solano*

176,902,587
Town of Tiburon

29,057,049
City of Vallejo*

332,927,602
City of Walnut Creek

344,139,693
Town of Yountville

30,941,216
MCE Total Energy Use

6,222,004,783
*2019 usage data as provided by PG&E.

All other usage data reflects MCE customer billing records for 2019.
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Exhibit D
Marin Clean Energy
- Voting Shares -
This Exhibit D is effective as of November 19, 2020.

MCE Member Community kWh (2019)
Section

4.9.2.1 Section

4.9.2.2 Voting
Share
City of American Canyon 76,695,933 1.35% 0.62% 1.97%
City of Belvedere 7,577,958 1.35% 0.06% 1.41%
City of Benicia 113,063,212 1.35% 0.91% 2.26%
City of Calistoga 25,994,261 1.35% 0.21% 1.56%
City of Concord 498,162,604 1.35% 4.00% 5.35%
Town of Corte Madera 46,419,358 1.35% 0.37% 1.72%
County of Contra Costa 673,004,355 1.35% 5.41% 6.76%
Town of Danville 159,347,837 1.35% 1.28% 2.63%
City of El Cerrito 57,817,586 1.35% 0.46% 1.82%
Town of Fairfax 17,969,915 1.35% 0.14% 1.50%
City of Fairfield* 452,596,498 1.35% 3.64% 4.99%
City of Lafayette 94,682,154 1.35% 0.76% 2.11%
City of Larkspur 42,611,547 1.35% 0.34% 1.69%
City of Martinez 151,009,009 1.35% 1.21% 2.56%
City of Mill Valley 44,571,991 1.35% 0.36% 1.71%
County of Marin 231,346,718 1.35% 1.86% 3.21%
Town of Moraga 43,994,965 1.35% 0.35% 1.70%
City of Napa 306,136,179 1.35% 2.46% 3.81%
County of Napa 299,606,262 1.35% 2.41% 3.76%
City of Novato 184,366,404 1.35% 1.48% 2.83%
City of Oakley 105,972,646 1.35% 0.85% 2.20%
City of Pinole 64,070,289 1.35% 0.51% 1.87%
City of Pittsburg 404,506,338 1.35% 3.25% 4.60%
City of Pleasant Hill* 125,951,493 1.35% 1.01% 2.36%
City of Richmond 374,022,160 1.35% 3.01% 4.36%
Town of Ross 9,855,768 1.35% 0.08% 1.43%
Town of San Anselmo 32,381,273 1.35% 0.26% 1.61%
City of San Ramon 301,946,012 1.35% 2.43% 3.78%
City of Saint Helena 48,784,002 1.35% 0.39% 1.74%
City of San Pablo 63,337,637 1.35% 0.51% 1.86%
City of San Rafael 218,232,540 1.35% 1.75% 3.11%
City of Sausalito 32,001,734 1.35% 0.26% 1.61%
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County of Solano* 176,902,587 1.35% 1.42% 2.77%
Town of Tiburon 29,057,049 1.35% 0.23% 1.58%
City of Vallejo* 332,927,602 1.35% 2.68% 4.03%
City of Walnut Creek 344,139,693 1.35% 2.77% 4.12%
Town of Yountville 30,941,216 1.35% 0.25% 1.60%
MCE Total Energy Use 6,222,004,783 50.00% 50.00% 100.00% *2019 usage data as provided by PG&E.

All other usage data reflects MCE customer billing
records for 2019.
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Consent Calendar
22-551

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 23, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Mike Roberts, Public Works Director/City Engineer Patrick Tang, City Attorney
SUBJECT: Vacation of a 1-Foot Wide, Non-Access Strip Across Skelly at the Entrance to Owl Ranch and Reversion to a Public Access Easement RECOMMENDED ACTION:

Approve a resolution to summarily vacate a one-foot wide, non-access strip over all of Lot D dedicated on the final map of Subdivision 5338.

BACKGROUND:

When the final map for Subdivision 5338 “Bayside Village Phase 2” was recorded at the County in 1983, it established a one-foot wide, non-access strip over all of Lot “D” across Skelly at the entrance to Owl Ranch, formally known as 215 Skelly or the McCloud Ranch. 300
Lot “D” of Subdivision 5338 – 1 foot wide non-access strip The intent of this one-foot wide non-access strip, which was created 40 years ago, is no longer known. D.R. Horton, the Owl Ranch developer who is the new owner of the property, is now requesting the City remove the strip from the map to formally clear access to their residential development, which is fully entitled.

ANALYSIS:

The California Streets and Highways Code Section 8333(a) provides the City Council with the authority to summarily vacate a public service easement provided the easement has not been used for the purpose for which it was dedicated for five consecutive years immediately preceding the proposed vacation.

The 1-ft wide, non-access strip over Lot D fits within the definition of “public service easement” in California Streets and Highways Code Section 8306 and has been in open and notorious use for well over the specified period.
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Once the 1’ wide non-access strip over all of Lot D as shown on the final map of Subdivision 5338 and as described and shown in said Exhibit A is summarily vacated, said Lot D shall revert to a public access and utility easement as described and shown in said Exhibit B.

FISCAL IMPACT:

There is no fiscal impact to this action.

ATTACHMENTS:

Attach 1- Resolution including Exhibits A & B
302
RESOLUTION NO. 23-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES CALIFORNIA TO SUMMARILY VACATE THE 1’ WIDE NON-ACCESS STRIP OVER ALL OF LOT D DEDICATED ON THE FINAL MAP OF SUBDIVISION 5338 WHEREAS, a 1’ wide non-access strip over all of Lot D as shown on the final map of Subdivision 5338 was dedicated to the City per said final map of Subdivision 5338. The proposed easement to be vacated is more particularly described and shown in Exhibit A attached hereto and made a part hereof; and
WHEREAS, California Streets and Highways Code Section 8333(a) provides the City Council with the authority to summarily vacate a public service easement provided the easement has not been used for the purpose for which it was dedicated for five consecutive years immediately preceding the proposed vacation; and WHEREAS, a non-access strip fits within the definition of “public service easement” in California Streets and Highways Code Section 8306; and
WHEREAS, after consideration of all evidence submitted, the City Council finds and determines that the 1’ wide non-access strip over all of Lot D described in said Exhibit A has not been used for the purpose for which it was dedicated for the five consecutive years immediately preceding this vacation, said 1’ wide non-access strip over all of Lot D is excess and is not needed for present or future use, and said Lot D shall revert to a public access and utility easement as more particularly described and shown in Exhibit B attached hereto and made a part hereof.

NOW, THEREFORE, the City Council of the City of Hercules DOES RESOLVE and order as follows:

Section 1. The 1’ wide non-access strip over all of Lot D as shown on the final map of Subdivision 5338 as described and shown in said Exhibit A shall be hereby summarily vacated, and said Lot D shall revert to a public access and utility easement as described and shown in said Exhibit B.

Section 2. The City Clerk shall cause a certified copy of this resolution to be recorded in the Office of the Recorder of the County of Contra Costa, State of California, in accordance with the provisions of California Street and Highways Code Section 8336.

Upon such recordation, the vacation and reversion are complete.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 23rd day of May 2023 by the following vote of the Council:

AYES:

NOES:
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ABSTAIN:

ABSENT:
___________________________
Alexander Walker-Griffin, Mayor
ATTEST:

Eibleis Melendez
Acting City Clerk
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EXHIBIT A
(Legal description and plat of 1’ wide non-access strip attached hereto) 305

EXHIBIT B
(Legal description and plat of public access and utility easement attached hereto) 306
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Consent Calendar
22-559

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 23, 2023
TO: Mayor and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
SUBJECT: Informational Report on Domain Name Change and Updates on Cyber Hygiene and Website Review
RECOMMENDED ACTION:

Receive a report on information technology updates and provide comments, if any.

EXECUTIVE SUMMARY:

Protecting the City’s technology and information is vital to the City and its ability to serve residents. However, local governments across the country are being increasingly targeted for cyber-attacks. It’s imperative that cybersecurity be made a priority. The purpose of this report is to provide information about the DOTGOV Act of 2019 to help guard against cyberattacks, an update on how the City is improving its cyber hygiene, and an update on making our City website more user friendly.

BACKGROUND AND ANALYSIS:

Not so long ago, local government agencies operated with filing cabinets stuffed with paper documents, fax machines and paper calendars. Our timecards and records were kept by hand, and resident engagement only happened in-person or over the phone.

Today, most interaction with the public has moved online. This change has made many aspects of modern life more efficient. But this digital revolution is happening quickly, often at a pace faster than many can keep up with. As a result, individuals and institutions alike have been left vulnerable to hackers and ransomware.

Domain Name Change - In 2020, S.2749 - DOTGOV Act of 2019 was passed to transfer the “.gov” internet domain program from the General Services Administration to the Cybersecurity and Infrastructure Security Agency (CISA) and provides support for 312
expanding “.gov” usage among public entities. Only bona fide U.S.-based government organizations are authorized to obtain a “.gov” domain to show the public their online services are official.

The City’s current domain name is www.ci.hercules.ca.us. Staff seeks to change the main domain name to www.herculesca.gov. for the following reasons:
 Better cybersecurity
 Simpler search that makes it easier to find information and services online  More adaptable to phones, tablets, laptops, and computers  Integration with city social media accounts
To build on these improvements, staff have also reviewed the City’s current website presence and examined the City’s network cybersecurity landscape.

S.2749 directs CISA to make .gov domain name registration services, as well as supporting services, generally available to any federal, state, local, tribal, or territorial government entity, or other publicly controlled entity that complies with the requirements for registration developed by CISA. “.gov” is one of the six original top-level domains (TLD) in the internet’s domain name system (DNS). DNS is the internet service that translates the names humans prefer into the numbers computers need to route a user to a website or to send an email. Only bona fide U.S.-based government organizations are authorized to obtain a .gov domain, and governments use .gov to show the public their online services are official. “.gov” is used by each branch of the Federal Government and is considered critical infrastructure for cybersecurity.

The use of the City’s domain name, ci.hercules.ca.us, has dated back to over 25 years, when the standard for most cities was to use the ci.xxxx.ca.us naming convention:

Naming Convention for “ci.xxxx.ca.us” Domain Name
ci Abbreviated for “city”
xxxx Refers to a city’s name
ca Abbreviated for “California”
us Abbreviated for “United States”
In recent years, we’ve witnessed local municipalities shift from this standard to domain names that are easier for the public to remember. A survey of what our neighbors are currently using is outlined below:
.gov domain sanpabloca.gov
alamedaca.gov
antiochca.gov
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sf.gov
.org domain walnut-creek.org
pleasanthillca.org
cityofconcord.org
el-cerrito.org
.net domain cityofvallejo.net
still using ci.xxx.ca.us ci.pinole.ca.us
ci.richmond.ca.us
ci.benicia.ca.us
Although it seems that there is no standard naming convention, the federal government, through the Cybersecurity and Infrastructure Security Agency (CISA), is committed to promoting .gov as a trusted space for government agencies. The new .gov domain also makes it more difficult for malicious actors and scammers to co-opt government websites.

Using less secure domains such as .com or .org allows cybercriminals and malicious actors to impersonate government officials more easily in attempts to defraud the public.

Guidelines set for city and county .gov domains must include the two-letter state abbreviation. Exceptions are made for unique or well-known cities that may not require a state reference, for example, sf.gov.

Most governments that want to transition to a new domain name have already established an online home – a website and/or email address – that has been maintained and published for years. Domain names show up not just online but printed on paper (letterhead, business cards, flyers, etc.), on vehicles, and on public signage. This change will impact all things that involve or touch the City website. Printed materials will start to reference the new herculesca.gov web address. This will include the website address you see in the footer of documents, agendas, minutes, envelopes, business cards, flyers, letterhead, fleet vehicle decals, etc. Existing City material with the www.ci.hercules.ca.us naming convention on hand will be used up and transitioned to the new address with future new orders and upon regular life-cycle replacements. We will continue to control the www.ci.hercules.ca.us address indefinitely and will redirect it to the new herculesca.gov address as needed.

City staff and City Councilmember email addresses will also eventually change to @herculesca.gov email addresses on printed material and our website. This will provide an overlap period and the opportunity for an orderly transition so that all contacts can be updated.

Cyber Hygiene – Following CISA’s recommendations, new password policies and multifactor authentication were implemented and enforced in the 2nd quarter of 2022. The City then contracted with a digital advising firm to perform annual network penetration testing.

The first network penetration test, completed at the end of 2022, identified some immediate exploitable issues which staff were able to remediate immediately.

Recommendations with longer term fixes were remediated within the first quarter of 2023. 314
Ongoing, the City will provide social engineering training to City staff to expand its virtual firewall. The first phase of the social engineering project is scheduled to begin in June 2023. To further improve network security, staff is also researching new software solutions that will aid in streamlining the application of software updates and security patches.

Website Review - A review of the City’s website, which was last redesigned in April 2018, was initiated with a usability survey and interviews with current users. Of the 40 responses received, 70% of users surveyed said that they did not have any trouble navigating our City website. When asked about features that could improve the user experience, participants suggested adding online reporting, up to date pool hours, and more pictures of Hercules. Interviews supported the survey results with comments that pictures of Hercules portraying current activities and major projects should be more prominently displayed. Additionally, suggestions to include more news articles on the home page would help to keep residents informed of current events.

An evaluation of Google analytics on the City’s website revealed that the top page views included the home page, aquatics, WebTrac (the City’s online recreation class registration portal), and the police log. The Recreation and Police department home pages were also frequently visited.

With the goal of a more user-centric website, staff is currently making improvements include the following:
 Placing shortcut buttons to top visited pages on the home page.  Using the News/Updates section of the website to closely follow articles posted on social media, allowing for users to access multiple platforms and up-to-date information.
 Conduct a thorough review of all departmental webpages to ensure pages are current.
 Rotating photographs on the home page highlighting city projects, landmarks, programs, and services will be updated on a quarterly basis.

FISCAL IMPACT:

Although there is no cost to register a .gov domain name with CISA, they do not provide DNS hosting services. A DNS server will need to be built in the demilitarized zone of the City’s network to accommodate this service. Staff, with the assistance of the City’s networking consultants, estimates the server build, and the reconfiguration of network and email servers, to take no more than 10 hours, or $2,500. There is sufficient funding available to sustain this initiative.
.
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316
Discussion and/or Action
Agenda Items
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22-558
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STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 23, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, AICP, Community Development Director SUBJECT: Update on the City of Hercules Community Development Department RECOMMENDED ACTION:

Receive an update on the City of Hercules Community Development Department.

BACKGROUND:

The Community Development Department (CDD) oversees the maintenance and growth of the City in order to preserve its character, enhance its economy, and embrace diversity by encouraging the development of a range of housing options that meet the community and region’s needs. The department is responsible for processing development applications in accordance with the City’s adopted General Plan, zoning ordinance and construction codes. They provide staff support to the City Council and Planning Commission as well as advisory services to the public interested in learning about zoning, land use, use permits, and development standards. The Community Development Department is also responsible for fostering the City’s economic development, including developing and implementing business assistance grants and incentives and pursuing public-private partnerships for special projects such as electric vehicle charging stations.

As the primary point of contact for development services applicants, Community Development staff calculates and collects transportation impact and other development impact fees. The department also administers the City’s on-call consultant solicitations for engineering as well as planning services. The 2023 on-call list for planning and engineering services is being prepared and will be brought to the Council in June for authorization. 317
22-548
The CDD consists of 2 (soon to be 3) full-time staff employees and three part-time contract staff, who together staff the Planning, Building, Code Enforcement and Economic Development divisions. Figures 1 and 2 show the 2022 and 2023 organizational charts for the department.

Fig. 1. Community Development Department organizational chart (2022) Fig. 2. Community Development Department organizational chart (2023) Director
Contract Planner
(Current)
Contract Planner
(Wireless)
Community
Development
Specialist
Contract Code
Enforcement
Officer
Senior Planner
318
Planning
The Planning division consists of the Director and a contract Associate planner who works two days per week. Wireless applications and lease negotiations are handled by a contract planner who specializes in wireless telecommunications and reports to the Director. The new Senior Planner position authorized in February 2023 will oversee the Planning division and report to the Director.

In the past year, division staff issued 58 Planning permits, each of which required a notification mailing and/or newspaper notice prepared by Community Development staff.

As the point of customer contact for the Development Services core service area, Community Development coordinates the review of all Planning applications by Public Works, Police, and other City departments, as well as with outside agencies such as the Rodeo-Hercules Fire Protection District.

Common types of Planning permits include administrative use permits, administrative design review permits, and temporary use permits for special events. Major Planning approvals in the past year included the Skelly (Owl Ranch) residential subdivision project approved in September 2022. Lot Line adjustments were also approved as part of the implementation of the approved Sycamore Canyon, Franklin Canyon RV resort, and America’s Tire projects.

Planning staff prepares the agenda materials for the bi-monthly Planning Commission meetings and as needed for Council meetings, including ordinance amendments, Council approvals, and appeals and call-ups of items approved by the Director or Planning Commission. In the past year, staff has prepared, and the Council has approved, ordinance amendments needed to bring the City’s Municipal Code in line with state law regarding child care and supportive housing, Accessory Dwelling Units, and SB 9 urban lot splits and two-unit developments, as well as to adopt the 2022 Building, Electrical and Fire Codes.

The Planning division is responsible for maintaining and updating the City’s long-range plans and preparing the required reports to the state. In March 2023, the Council approved the 2022 Annual Housing Element Progress Report, which defines how many new residential units were constructed in the reporting period, broken down by income levels, and then compares this information to the regional housing needs allocation (RHNA) assigned to the City for the entire Housing Element period (2015–2023). The report also looks at the City’s housing policies and reports on the progress in achieving those goals. In 2023, the division also prepared the City’s first General Plan Annual Progress Report, which is required under state law. The report inventoried the state of the various elements of the General Plan, including some that have not been updated in decades.

Upcoming long-range planning work program items include updating the City’s Local Hazard Mitigation Plan (LHMP), a component of the General Plan Safety Element, by participating in the countywide LHMP update; and preparation of the City’s first Climate 319
Action Plan by 2026, as called for in the LHMP. In the longer term, after the new staff are brought on board, a comprehensive update of the General Plan is recommended to bring the older elements in line with current conditions and forecasts and to reflect the conclusions and priorities of the Parks and Recreation Facilities Master Plan anticipated to be adopted in the fall of 2023. Funding for a comprehensive update is available from the General Plan Update Fee collected on development permit applications.

Due to the small size of City staff, the Planning division also supports the Public Works Department by preparing the required annual reports for the County’s Growth Management program (Measure J) and assisting with review of transportation projects affecting Hercules through the West Contra Costa County Transportation Advisory Committee Technical Advisory Committee (WCCTAC-TAC). The Director participates in the regular meetings of the Contra Costa Planning Directors and the Countywide Transportation Electrification Coordination Group. The Director also co-manages or supports special interdepartmental projects such as the Parks and Recreation Facilities Master Plan and The Hub.

Accomplishments in the past year include concluding negotiations with Ledcor on the Waterfront parking agreement and a successful Transit and Intercity Rail Program (TIRCP) grant for The Hub in partnership with Capitol Corridor.

Building
The Building division consists of the Community Development Specialist, who staffs the counter, takes in Planning and Building permit applications, reviews Building plan submittals, and works in conjunction with permitting, specialized plan review and inspection staff in the Contra Costa County Department of Conservation and Development to provide building permitting and inspection services. Each year the division issues approximately 1,000 building permits in coordination with the County. Common project types include solar panels, window and furnace replacements, interior remodels, and additions. The CD Specialist also works with the Finance department to handle the department’s invoice processing and deposit account reconciliation.

Code Enforcement
The Code Enforcement division consists of a contract Code Enforcement Officer (CEO) who reports to the Director and works two days per week. The CEO follows up on service requests from residents entered in Hercules Connect and proactively identifies and follows up on code violations as well. In the past year, 801 code enforcement cases were opened and 695 were closed. Common topics include junk and debris on private property, inoperable vehicles, fences and hedges, and unpermitted construction. In the past year, the CEO has identified and ensured the removal of a substandard, unpermitted living space (an illegal garage conversion without adequate ventilation or fire separation), which posed immediate dangers to human life and health. The goal is always voluntary compliance, but in cases of non-cooperation, citations and fines may be imposed. The department contracts with a vendor that provides citation processing and hearing officer services when citations are appealed. While many residents and business owners cooperate voluntarily with 320
courtesy notices and information postings from the CEO, some of the most complex code cases, such as hoarder properties, may require dozens of CEO contacts and follow-up visits before the case can be closed.

Economic Development
The Economic Development division consists of the Director, who administers the City’s “Shop Local” Yiftee gift card program and other economic development initiatives, such as proposed grant programs to attract restaurants and encourage use of local caterers. The Director manages the economic consultant and works to develop new business attraction and retention programs under the City Manager’s direction. In this capacity, the CD Director meets regularly with the Bayfront Chamber of Commerce, local commercial real estate brokers, and existing and potential business owners. The Director participates in the East Bay Economic Development Alliance’s Economic Development Directors Council, the Northern Waterfront Initiative, monthly meetings with Bayfront Chamber of Commerce staff, and annual Business Roundtable events.

ANALYSIS:

In 2022, the City engaged Baker Tilly (formerly Management Partners) to conduct an organizational and staffing assessment of the Community Development Department. In addition to reviewing the staffing and management structure, the consultants examined the effectiveness of contract planners, available informational materials, turnaround times, customer perceptions, and staff suggestions to identify opportunities for improving community development services. They conducted numerous interviews that included city staff, contractors, and elected officials to gather input.

The team also conducted a high-level comparison of the department with community development departments in four similar cities, comparable in population size and permit volume: Pinole, Moraga, El Cerrito, and Orinda. Baker Tilly’s research revealed that the Hercules Community Development Department has a lean staff compared with its peers.

Staffing levels and the Department’s organizational structure have remained unchanged since being reduced by 40% a decade ago due to financial hardship.

Baker Tilly recommended adding two new positions to the department; a senior planner to oversee counter and consultants, current and long-range planning and business systems implementation, and a flexibly staffed assistant/associate planner to focus on transportation planning, special projects, economic development, and current planning support. They also suggest adding hours to the existing contract for code enforcement if needed to catch up on the workload backlog. Staff is working to implement these recommendations over the coming years.

The full list of recommendations from the study is as follows:

Recommendation 1. Develop and maintain handouts to explain to the public how the community development process works for the most often requested permits. 321
Recommendation 2. Develop handouts that explain important code enforcement rules and regulations.

Recommendation 3. Provide regular updates to the City Council on administrative permits issued.

Recommendation 4. Hire a Senior Planner to be responsible for all current planning operations, oversight of contract planners, oversight of the front counter operation and implementation of new business systems.

Recommendation 5. Hire a full-time Associate Planner, allocating 50% of their time to economic development, and 50% of their time to current planning activities.

Recommendation 6. Add more hours to the Code Enforcement contract to catch up on the backlog.

Recommendation 7. Convene weekly meetings with all departments and agencies involved in the development review process to coordinate comments and provide a consolidated list of requirements for applicants.

Recommendation 8. Update the City’s website to clearly identify those permits which require approval by Contra Costa County and link directly to the County site.

Recommendation 9. Develop a tracking system for permit expiration dates.

Recommendation 10. Implement an online Land Management System for all Community Development Records.

Recommendation 11. Update the City’s forms so that applicants can fill out the form and submit it to the Department online.

Recommendation 12. Conduct a fee study and update the fee schedule for development-related services to reduce or eliminate any subsidies of such services.

Recommendation 13. Utilize the new OpenGov software to more effectively track City expenditures on development applications and better manage developer deposits and required reimbursements.

Recommendation 14. Update the purchasing policy to allow for multi-year contracts with vendors to provide consistent contractor support to the Department.

The next several years will present a unique opportunity for organizational change. A key member of the CDD workforce, who has been with the City for decades, could retire in the next 5 years. Evolving state laws and reporting requirements, as well as new state mandates for fair housing programs, ordinance changes, and permit streamlining, are driving changes in priorities and the associated need to reallocate resources.

The changes needed for CDD to be successful in the future are already underway. The Council’s approval of the Senior Planner position in 2023 will help improve customer service, provide more continuity of counter services, and enable succession planning for the department. Recruitment is underway for this position. 322
However, much remains to be done. Succession planning, staffing levels, and potential changes to the CDD organizational structure will all need to be carefully evaluated, planned, and then implemented to meet the demands of the future. Fortunately, the City’s financial position has been steadily improving and staff remains optimistic about the future of the Department.

FISCAL IMPACT:

There is no fiscal impact associated with receiving this report.

ATTACHMENTS:

1. Presentation
323
Community
Development
Update Hercules City Council 05/23/2023
324
Meet the Team
2 Tim Rood
Director
Shiva Matinpour
CD Specialist
Larissa Alchin
Associate Planner
(contract)
James Jonte
Code Enforcement Officer
(contract)
Bob Ross
Wireless planner
(contract)
325
3 Organizational Chart
Senior Planner
(1.0 FTE)
Recruitment
underway
326
Planning
Current Planning:
• Use Permits
• Design Review Permits
• Lot Line Adjustments
• Staff Planning
Commission/Council
• Review Building permits for
zoning/permit conformance
• Public Information
• Wireless applications, permits
and leases
327
Major
Development
Projects in
Hercules
Owl
Ranch
Sycamore Crossing
Hampton Inn Hotel
“The Mint” (Bayfront
Blocks M-P)
328
Owl Ranch
Approved residential subdivision
consisting of 40 single-family residential
lots on a 7.44-acre site at 215 Skelly, the
former McLeod Ranch property.

Developer: D.R. Horton
Demolition complete, grading
underway; site improvements currently
under review
6 329
Hampton Inn &
Suites Hotel,
Sycamore Crossing
Approved 4-story, 105-guest room hotel
on a 1.8-acre site within the approved

12.8-acre Sycamore Crossing mixed-use
project bounded by Sycamore Avenue,
San Pablo Avenue and Tsushima Drive
Master Developer: The Lewis Group
Site improvements currently under
review
Potential construction in 2023
7 330
The Mint at
Bayfront
Approved 325-unit multi-family
residential development within the
approved 90-acre mixed-use Bayfront
project
Developer: Ledcor
Currently under Building review
Potential construction in 2023
8 331
Planning
Long Range Planning • Ordinance Updates • General Plan • Housing Element Update • LHMP update • Future comprehensive update?
• Potential Climate Action Plan • Mandatory Reporting
9 332
Housing
Draft 2023-31 Housing Element commits the City to many new programs, including:
• Provide affordable housing incentives, outreach and streamlining • Support at least one voucher-based housing development project • Provide financial assistance to low-income homeowners for minor repairs • Revise code standards for senior housing, manufactured housing, etc. as needed • Expand by-right processes and flexibility for adaptive reuse of nonresidential existing buildings
• Issue RFP/RFQ for targeted residential development
• Assist in pursuing funding applications for low-income housing projects 1 0
333
Building Division
About 1,000 building permits issued per year
in coordination with County
Intake, completeness check, payment for
Planning and Building applications
Impact fee collection
Counter service (public information)
Noticing
Project accounting and invoicing
1 1
334
Code Enforcement
801 cases opened,
695 closed in past
year
1 2
335
Economic Development • Yiftee Buy-One-Get-One promotions • Business Assistance Grants • EV Charging at City Facilities • Outreach to Major Employers, Businesses, Brokers, Bayfront Chamber
• Northern Waterfront Economic Development Initiative • County Economic Development Group • East Bay EDA Development Directors Council 1 3
336
Public Engagement
Bayfront Blocks ABCD
workshops
Parks and Recreation Facilities
Master Plan workshops and
Steering Committee
Social media coordination
1 4
337
Transportation Planning
• Hercules Hub
• WETA Vision 2050/
Joint Ferry Feasibility Study
• Measure J Biannual reports and
presentations
• Caltrans SR-4 Vision Plan
• I-80 Alternatives Assessment
• MTC Transit-Oriented
Communities Policy
• OBAG-3 Grant Application
1 5
A Regional Model for
Transit-Oriented Development
338
Departmental Assessment – Key Recommendations
Update website
Update application forms
Regular development review
coordination meetings
Senior Planner hire (in process)
Create handouts
Future Associate/Assistant
Planner (staff)
Permit tracking/land
management system
1 6
339
Land Management System Example
1 7
340
Thank you!
Hercules City Council 05/23/2023
341
342
Discussion and/ or Action Agenda Item
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STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 23rd, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Joseph Vasquez, Chief of Police
SUBJECT: Military Equipment Use and Acquisition
RECOMMENDED ACTION:

Annual Approval of Hercules Police Department military equipment inventory and usage per policy section 709 in conformance with the requirements of California Assembly Bill 481; Military Equipment Funding, Acquisition, and Use (attached).

BACKGROUND:

On September 30, 2021, Governor Newsom signed a series of policing reform legislation aimed at increasing transparency of peace officer misconduct records, creating a system to decertify peace officers for serious misconduct, improving policing responsibility and accountability guidelines, raising eligibility standards, banning harmful restraint techniques, and creating a public forum for the funding, acquisition and use of military equipment.

AB 481, Military Equipment Funding, Acquisition, and Use was authored by Assemblymember David Chiu (D-San Francisco) to address the funding, acquisition, and use of military equipment.

ANALYSIS:

AB 481 Definition of Military Equipment
The Assembly Bill has designated the following categories of items as military equipment.

The Hercules Police Department has equipment that meets the criteria for 7 of the 15 categories (1,5,9,10,11,12,14):
 Unmanned, remotely piloted, powered aerial or ground vehicles (Equipment Category 1)
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 Mine-resistant ambush-protected vehicles or armored personnel carriers (Equipment Category 2)
 High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached (Equipment Category 3)
 Tracked armored vehicles that provide ballistic protection to their occupants (Equipment Category 4)
 Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units (Equipment Category 5)  Weaponized aircraft, vessels, or vehicles of any kind (Equipment Category 6)  Battering rams, slugs, and breaching apparatuses that are explosive in nature (Equipment Category 7)
 Firearms and ammunition of .50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition (Equipment Category 8)  Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code §30515, with the exception of standard-issue handguns (Equipment Category 9)
 Any firearm or firearm accessory that is designed to launch explosive projectiles (Equipment Category 10)
 Noise-flash diversionary devices and explosive breaching tools (Equipment Category 11)
 Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray (Equipment Category 12)
 TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (Equipment Category 13)
 Kinetic energy weapons and munitions (Equipment Category 14)  Any other equipment as determined by a governing body or a state agency to require additional oversight (Equipment Category 15)
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Requirements of AB 481
AB 481 requires each law enforcement agency's governing body to conduct annual meetings every year to continue the use of previously acquired equipment designated as “Military Equipment.” To help guide this process, staff have attached a summary of AB 481, and Policy Section to this report. Additionally, the Police Department posted an adopted version of the policy on the City website May 10, 2023, in advance of the City Council meeting where the item would be discussed, in compliance with the requirements of AB 481.

An itemized list of qualifying military equipment currently in HPD’s possession is included in this report as well as in the draft policy. Each item’s purpose and authorized use is described in specific detail in the attachment to the draft policy section to be included in the Hercules Police Department policy manual. The following are qualifying items currently in the Hercules Police Department equipment inventory:
 Unmanned, remotely piloted, powered aerial devices (2 drones)  Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units (1 Special Response Team van)
 Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code §30515, with the exception of standard-issue handguns (28 - .223 caliber patrol rifles capable of firing 5.56mm ammunition)
 Noise-flash diversionary devices and explosive breaching tools (24 Noise Flash Diversionary Devices)
 Any firearm or firearm accessory that is designed to launch explosive projectiles (1 – S&W Mod. 226 37mm launcher)
 Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray (10 - 12 ga. “penetrator” rounds capable of delivering powdered OC through thin walls or windows. Officers assigned to the County-wide Mobile Field Force are issued Def-Tech CS gas canisters while in that position)
 Kinetic energy weapons and munitions (5 Kinetic Energy shotguns) AB 481 states each agency is required to establish the procedure for a person to register a complaint or concern regarding the possession or use of military equipment, and how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner. The City and the Police Department already have several avenues in place for filing a complaint with or about the Police Department, the Department will establish a procedure for responding to questions in a timely manner.
345
Additionally, each agency must prepare an Annual Report to include the use of military equipment, any complaints received, any internal audits or other information about violations of this Policy, the cost of such use and other similar information. This report must be presented to the Governing Body as well as in a separate public forum. The City’s webpage will be utilized for distribution of any updates to the above materials as well as for public notification of the Annual Report.

FISCAL IMPACT OF RECOMMENDATION:

There is no anticipated fiscal impact in reviewing this annual report. Failure to continue authorization of the military inventory and usage will result in the destruction of some previously acquired equipment and limit the Police Department’s response capabilities.

ATTACHMENTS:

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

2. 2022 Annul Military Equipment Report, Purpose, Use, and Cost

3. AB 481

4. Ordinance
346
347
Policy
709
Hercules Police Department
Hercules PD Policy Manual
Copyright Lexipol, LLC 2023/04/19, All Rights Reserved.

Published with permission by Hercules Police Department Military Equipment - 1
Military Equipment
709.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072).
709.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body – The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.
348
Hercules Police Department
Hercules PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2023/04/19, All Rights Reserved.

Published with permission by Hercules Police Department Military Equipment - 2
709.2 POLICY
It is the policy of the Hercules Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. 709.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Hercules Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department’s funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
709.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:
[Insert attachment here]
709.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
349
Hercules Police Department
Hercules PD Policy Manual
Military Equipment
Copyright Lexipol, LLC 2023/04/19, All Rights Reserved.

Published with permission by Hercules Police Department Military Equipment - 3
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 709.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment should not be used by any other law enforcement agency or member in this jurisdiction unless the military equipment is approved for use in accordance with this policy. 709.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 709.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.
350
Hercules Police Department
Updated May 16, 2023
1 HERCULES POLICE DEPARTMENT

ANNUAL MILITARY EQUIPMENT REPORT
2022
351
Hercules Police Department
Updated May 16, 2023
2 INTRODUCTION
On September 30, 2021, the Governor of the State of California approved Assembly Bill 481 (codified as Chapter 12.8 of the California Government Code) requiring law enforcement agencies such as the Hercules Police Department to have a military use policy approved by the City Council prior to requesting, seeking funding, acquiring, or using military equipment.

Assembly Bill 481 allows the governing body to approve the policy within its jurisdiction only if it determines that the military equipment meets specified standards.

On June 14, 2022, the City of Hercules City Council Approved Ordinance 537 approving Hercules Police Department Policy #709: Military Equipment Funding, Acquisition, and Use. As required by Assembly Bill 481 and the Ordinance, annually the Hercules Police Department must prepare a report on the use of each type of military equipment approved in the Policy over the last year. Subsequently, the City Council must then review the Ordinance, Policy, and Annual Report, and determine whether the Department’s use of military equipment in the past year complied with the Policy, and whether to continue the Ordinance and Policy, take action (by ordinance) to modify the Policy or repeal the Ordinance.

As set forth in the Policy, the Hercules Police Department retains and employs limited military equipment to safeguard its community. Hercules officers, certified instructional staff, and specialized units receive training throughout the year on the use of military equipment approved under the Policy.

This Annual Report outlines the Hercules Police Department’s military equipment inventory and usage, community complaints over use of military equipment, and internal audits from January 1, 2022, through December 31, 2022. The Department will submit its Military Equipment Annual Report to the City Council after December 31st of every year in compliance with AB 481.
352
Hercules Police Department
Updated May 16, 2023
3 HPD MILITARY EQUIPMENT

1. Unmanned Aerial Vehicles
a. Description, quantity, capabilities and purchase cost:

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

Mavic 2 Enterprise Advanced UAV, purchase cost was $6,499 quantity: 2
b. Purpose:

To be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to:
i. Major Collisions Investigation
ii. Search for missing persons
iii. Natural disaster management
iv. Crime scene photography
v. Critical incident, tactical or other public safety life preservation missions
vi. In response to specific requests from fire authorities for fire response
c. Authorized use
Only assigned operators who have completed the required training, certification, and licensing shall be permitted to use Hercules Police Department’s UAVs approved missions.
353
Hercules Police Department
Updated May 16, 2023
4 d. Expected lifespan
The expected lifespan of the Mavic 2 UAV is 5 years
e. Fiscal impact
Annual maintenance costs of approximately $0 - $500

f. All department UAV operators are licensed by the Federal Aviation Administration for UAV operation. Once all operators are completely certified, they will train monthly in the use of UAV’s.

2. Command and Control vehicles
a. Description, quantity, capabilities and purchase cost:
2008 Ford Econoline 350 transport van, Cost $0 (inner-City transfer from Parks and Recreation), quantity: 1
This is a full-size van modified to transport Special Response Team members and equipment to critical incidents and high-risk entry operations. The van is equipped with emergency lights and sirens. It is painted white with Hercules Police Department (PD) logos on it. b. Purpose
To be used in response to critical incidents and pre-planned operations to transport personnel and equipment.
c. Authorized use
The use of the van is limited to trained Hercules Police Department SRT members and department range training equipment
transportation.
d. Expected Lifespan
10 years
e. Fiscal Impact
Annual maintenance cost of approximately $1,000.
354
Hercules Police Department
Updated May 16, 2023
5 3. Specialized firearms and ammunition
a. Description, quantity, capabilities and purchase cost Shoulder fired rifle bored firearms capable of firing 5.56mm ammunition from standard- capacity magazines; shoulder fired smooth bored firearms capable of firing beanbag rounds, smoke canisters and CS gas canisters.
i. Colt M4 Carbine semi-automatic rifle for patrol use, cost:
$920.00, quantity: 33
ii. Smith and Wesson Model 226 37mm canister launcher for deployment of projectile smoke or CS gas, cost $600.00, quantity: 1
iii. Remington 870 kinetic energy shotgun for patrol use, cost:
$900.00, quantity: 5
iv. Defense Technologies 12-gauge powder barricade penetrator OC rounds for barricaded subject critical incidents, cost $5.94, quantity: 10
v. Defense technology 37mm CS gas rounds used for riot control and disbursement, cost $39.50, quantity: 0
vi. Winchester Ranger 5.56mm 77 grain ammunition for patrol rifles, cost $878.00/1000 rounds, quantity: 7000
Winchester 5.56mm 55 grain ammunition for patrol rifles, Cost $359/1000 rounds, quantity: 12,000
vii. Defense Technology drag stabilized kinetic energy rounds for patrol, cost $5.35, quantity: 50
b. Purpose
To be used as precision weapons to address known threats from greater distance and behind cover, providing safer response to critical incidents involving heavily armed and protected suspect(s), to defuse volatile incidents with less than lethal force, to bring critical incidents to a close with the least amount of danger to the public, the involved subject(s) and the responding personnel.
355
Hercules Police Department
Updated May 16, 2023
6 c. Authorized use
Only personnel who have attended and passed training and certification courses approved by the Peace Officer Standards and Training (POST) Commission are authorized to possess or deploy patrol rifles, kinetic energy shotguns, or 37mm launcher. d. Expected Lifespan
i. Colt M4-Carbine Rifle: 15 years
ii. S&W Mod 226 37mm launcher: 15 years
iii. Remington 870 kinetic energy shotgun: 15 years
iv. Defense technology OC rounds: no expiration date
v. Winchester 5.56mm rounds: no expiration date
vi. Kinetic energy rounds: no expiration date
e. Fiscal impact
Annual maintenance is approximately $50 for each rifle. Ammunition costs vary by availability. Approximately $2,500 annually.

4. Noise Flash Diversionary Devices
a. Description, quantity, capabilities and purchase cost A Noise Flash Diversionary Device (NFDD) is a device that creates a bright flash and a loud explosive sound to divert the attention of subjects in the area and temporarily disorient them to additional sounds and movement. NFDD are used to temporarily incapacitate dangerous subjects by overwhelming their senses of vision and hearing. The momentary distraction allows officers to seize the opportunity to take control of high-risk situations.
i. Defense Technologies 12-gram low roll non-reloadable, cost $52.00, quantity: 24
356
Hercules Police Department
Updated May 16, 2023
7 b. Purpose
To produce atmospheric overpressure and brilliant white light and as a result can cause short-term (6-8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage. c. Authorized use
Diversionary devices shall only be used:
i. By SRT members who have been trained in their proper handling and use
ii. In hostage or barricaded subject situations
iii. In high-risk warrant services where there may be extreme hazards to officers
iv. During other high-risk situations where their use would enhance officer safety
v. During training exercises.
d. Expected lifespan
5 years
e. Fiscal impact
There are no maintenance costs associated with the storage of this device.

5. Munitions containing Tear Gas or OC
a. Description, quantity, capabilities and purchase cost Chemical agent munitions, which are commonly referred to as "tear gas," are used by the Hercules Police Department as a non-lethal tool to disperse rioting suspects and/or barricaded suspects. CS (2- Chlorobenzylidenemalonoi trile) and OC (Oleoresin Capsicum) are commonly used by law enforcement agencies across the United States.
357
Hercules Police Department
Updated May 16, 2023
8 CS is an irritating agent and lachrymator (irritates the eyes and causes tears to flow). CS has been medically tested in the UK and US, specifically by the U.S. Army. There are no known allergic reactions to CS. OC was de-regulated in California in 1996, is endorsed by the FBI, and is available to civilians to legally possess (2.5oz or less). OC is an inflammatory agent which causes involuntary closure of eyes (open 2-5 minutes) and respiratory inflammation (subsides in approximately 2 minutes).
i. Defense Technologies 12-gauge powder barricade penetrator OC for barricaded subject critical incidents, cost $5.94, quantity: 10
ii. Officers assigned to the County-Wide Mutual Aid Mobile Field Force are issued Defense Technology CS gas by the Contra Costa Office of the Sheriff as part of their tactical duty gear when deployed by the MAMFF. They do not carry the CS gas as a part of their regular Patrol equipment in Hercules, however they do possess it in the event they need to respond to emergency deployment(s) elsewhere in the
County. Cost $0, quantity: 2 each.
b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to:
i. Self-destructive, dangerous and/or combative individuals. ii. Riot/crowd control and civil unrest incidents.
iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals.
v. Training exercises or approved demonstrations.
c. Authorized use
Only Officers who have received POST certification in the use of chemical agents are authorized to use chemical agents.
358
Hercules Police Department
Updated May 16, 2023
9 d. Expected Lifespan
Defense Technology OC rounds: No expiration date
e. Fiscal Impact
There are no maintenance costs associated with the storage of these devices
Equipment Purchase and Training Use
2022 Purchases
Military
Equipment
Quantity Cost Date of Purchase
Winchester 5.56
77 or BTHP
1000 $987.00 10/12/2022
Winchester 5.56
55 or FMJ
6000 $2718.00 10/12/2022
Colt M4 Carbine
semi-automatic rifle
5 $4,650 6/13/2022
2022 Training/ Military Equipment Utilized
Training Military
Equipment
Quantity Date of Use
Department Quarterly
Training
Colt M4

5.56 Ammo
6800 4/5/2022, 7/12/202,
10/11/2022
Active Shooter
Instructor Training
Colt M4

5.56 Ammo
1000 10/11/2022
Less Lethal New
Officer
Orientation Training
12-Guage
Bean Bag
Amo
2 7/14/2022
Less Lethal New
Officer
Orientation Training
12-Guage
Bean Bag
Amo
2 11/11/2022
359
Hercules Police Department
Updated May 16, 2023
10 Community Concerns and Complaints
In some instances, the possession and use of military equipment may cause questions and/or concerns for members of the community. It is vitally important that community members’ questions and/or complaints regarding Hercules Police Department’s possession and use of military equipment are addressed.

The Hercules Police Department is committed to a full and fair investigations of community complaints. As such, the Department has sound internal procedures for thorough and impartial investigations of community complaints. Resolving complaints in a fair, impartial, and expeditious manner will ensure the consistent high level of integrity and efficiency maintained by the Department. 2022 Community Concerns, Complaints & PD Internal Investigations Related to Military Equipment Use
Community Concerns Community Complaints PD Internal
Investigations
0 0 0
Internal Inventory & Audit (HPD Military Equipment)
Per Hercules Police Department policy 709.3 (c), the Department’s military equipment coordinator, designated as a Department Range Instructor, is required to complete an internal inventory of all military equipment within the possession of the Department at least once annually. During the calendar year 2022, an internal inventory of the Department’s military equipment was completed on October 12, 2022, which identified all the Department’s military equipment in preparation to fulfill the obligations set by Assembly Bill 481. The Department did not add any new military equipment during 2022 to its inventory since that inventory was completed. All current military equipment inventory was found to be in good shape and working order.
360
Hercules Police Department
Updated May 16, 2023
11 2022 Critical Incident/ Military Equipment Utilized
Case # Date Equipment Used Reason for Use
H22-840 8/30/22 2008 Ford Econoline
350 transport van
Marijuana Cultivation Investigation
Conclusion
This Annual Military Equipment Report reaffirms the Hercules Police Department’s commitment to providing transparency and information to our communities and elected officials in addition to ensuring compliance with California State law. The equipment, resources, and training outlined in this report allow Hercules Police Officers to better serve and protect Hercules, enhance the safety of officers and community, and bring critical incidents to a safe resolution. 361
Assembly Bill No. 481
CHAPTER 406
An act to add Chapter 12.8 (commencing with Section 7070) to Division 7 of Title 1 of the Government Code, relating to military equipment.
[Approved by Governor September 30, 2021. Filed with Secretary of State September 30, 2021.] legislative counsel’s digest
AB 481, Chiu. Law enforcement and state agencies: military equipment: funding, acquisition, and use.

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

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

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

This bill would also require a state agency, as defined, to create a military equipment use policy before engaging in certain activities, publish the policy on the agency’s internet website, and provide a copy of 362
the policy to the Governor or the Governor’s designee, as specified. The bill would also require a state agency that seeks to continue use of military equipment acquired prior to January 1, 2022, to create a military equipment use policy. This bill would also include findings that the changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities.

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

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

This bill would make legislative findings to that effect.

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

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

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

SECTION 1. The Legislature finds and declares all of the following:
(a) The acquisition of military equipment and its deployment in our communities adversely impacts the public’s safety and welfare, including increased risk of civilian deaths, signific risks to civil rights, civil liberties, and physical and psychological well-being, and incurment of significant financial costs. Military equipment is more frequently deployed in low-income Black and Brown communities, meaning the risks and impacts of police militarization are experienced most acutely in marginalized communities. (b) The public has a right to know about any funding, acquisition, or use of military equipment by state or local government officials, as well as a right to participate in any government agency’s decision to fund, acquire, or use such equipment.
(c) Decisions regarding whether and how military equipment is funded, acquired, or used should give strong consideration to the public’s welfare, safety, civil rights, and civil liberties, and should be based on meaningful public input.
(d) Legally enforceable safeguards, including transparency, oversight, and accountability measures, must be in place to protect the public’s welfare, safety, civil rights, and civil liberties before military equipment is funded, acquired, or used.
363
(e) The lack of a public forum to discuss the acquisition of military equipment jeopardizes the relationship police have with the community, which can be undermined when law enforcement is seen as an occupying force rather than a public safety service.

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

Chapter 12.8. Funding, Acquisition, and Use of Military Equipment 7070. For purposes of this chapter, the following definitions shall apply:
(a) “Governing body” means the elected body that oversees a law enforcement agency or, if there is no elected body that directly oversees the law enforcement agency, the appointed body that oversees a law enforcement agency. In the case of a law enforcement agency of a county, including a sheriff’s department or a district attorney’s office, “governing body” means the board of supervisors of the county. (b) “Law enforcement agency” means any of the following:
(1) A police department, including the police department of a transit agency, school district, or any campus of the University of California, the California State University, or California Community Colleges. (2) A sheriff’s department.
(3) A district attorney’s office.
(4) A county probation department.
(c) “Military equipment” means the following:
(1) Unmanned, remotely piloted, powered aerial or ground vehicles. (2) Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. However, police versions of standard consumer vehicles are specifically excluded from this subdivision. (3) High mobility multipurpose wheeled vehicles (HMMWV), commonly referred to as Humvees, two and one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. However, unarmored all-terrain vehicles (ATVs) and motorized dirt bikes are specifically excluded from this subdivision.
(4) Tracked armored vehicles that provide ballistic protection to their occupants and utilize a tracked system instead of wheels for forward motion.
(5) Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units.
(6) Weaponized aircraft, vessels, or vehicles of any kind. 364
(7) Battering rams, slugs, and breaching apparatuses that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, or a handheld ram designed to be operated by one person, are specifically excluded from this subdivision.
(8) Firearms of .50 caliber or greater. However, standard issue shotguns are specifically excluded from this subdivision.
(9) Ammunition of .50 caliber or greater. However, standard issue shotgun ammunition is specifically excluded from this subdivision.
(10) Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to officers, agents, or employees of a law enforcement agency or a state agency.
(11) Any firearm or firearm accessory that is designed to launch explosive projectiles. (12) “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls,” excluding standard, service-issued handheld pepper spray.
(13) Taser Shockwave, microwave weapons, water cannons, and the Long Range Acoustic Device (LRAD).
(14) The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons. (15) Any other equipment as determined by a governing body or a state agency to require additional oversight.
(16) Notwithstanding paragraphs (1) through (15), “military equipment” does not include general equipment not designated as prohibited or controlled by the federal Defense Logistics Agency. (d) “Military equipment use policy” means a publicly released, written document governing the use of military equipment by a law enforcement agency or a state agency that addresses, at a minimum, all of the following:
(1) A description of each type of military equipment, the quantity sought, its capabilities, expected lifespan, and product descriptions from the manufacturer of the military equipment. (2) The purposes and authorized uses for which the law enforcement agency or the state agency proposes to use each type of military equipment.
(3) The fiscal impact of each type of military equipment, including the initial costs of obtaining the equipment and estimated annual costs of maintaining the equipment. (4) The legal and procedural rules that govern each authorized use. (5) The training, including any course required by the Commission on Peace Officer Standards and Training, that must be completed before any officer, agent, or employee of the law enforcement agency or the state agency is allowed to use each specific type of military equipment to ensure the full protection 365
of the public’s welfare, safety, civil rights, and civil liberties and full adherence to the military equipment use policy.
(6) The mechanisms to ensure compliance with the military equipment use policy, including which independent persons or entities have oversight authority, and, if applicable, what legally enforceable sanctions are put in place for violations of the policy. (7) For a law enforcement agency, the procedures by which members of the public may register complaints or concerns or submit questions about the use of each specific type of military equipment, and how the law enforcement agency will ensure that each complaint, concern, or question receives a response in a timely manner.
(e) “State agency” means the law enforcement division of every state office, department, division, bureau, board, and commission or other state body or agency, except those agencies provided for in Article IV (except Section 20 thereof) or Article VI of the California Constitution. (f) “Type” means each item that shares the same manufacturer model number. 7071. (a) (1) A law enforcement agency shall obtain approval of the governing body, by an ordinance adopting a military equipment use policy at a regular meeting of the governing body held pursuant to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable, prior to engaging in any of the following:
(A) Requesting military equipment made available pursuant to Section 2576a of Title 10 of the United States Code.
(B) Seeking funds for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. (C) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(D) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. (E) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter. (F) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of, military equipment. (G) Acquiring military equipment through any means not provided by this paragraph. (2) No later than May 1, 2022, a law enforcement agency seeking to continue the use of any military equipment that was acquired prior to January 1, 2022, shall commence a governing body approval process in accordance with this section. If the governing body does not approve the continuing use of military equipment, including by adoption pursuant to this subdivision of a military equipment use policy submitted pursuant to subdivision (b), within 180 days of submission of the proposed military equipment 366
use policy to the governing body, the law enforcement agency shall cease its use of the military equipment until it receives the approval of the governing body in accordance with this section. (b) In seeking the approval of the governing body pursuant to subdivision (a), a law enforcement agency shall submit a proposed military equipment use policy to the governing body and make those documents available on the law enforcement agency’s internet website at least 30 days prior to any public hearing concerning the military equipment at issue.
(c) The governing body shall consider a proposed military equipment use policy as an agenda item for an open session of a regular meeting and provide for public comment in accordance with the BagleyKeene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable.
(d) (1) The governing body shall only approve a military equipment use policy pursuant to this chapter if it determines all of the following:
(A) The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety.
(B) The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties.
(C) If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety. (D) Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance. (2) In order to facilitate public participation, any proposed or fi military equipment use policy shall be made publicly available on the internet website of the relevant law enforcement agency for as long as the military equipment is available for use.
(e) (1) The governing body shall review any ordinance that it has adopted pursuant to this section approving the funding, acquisition, or use of military equipment at least annually and, subject to paragraph (2), vote on whether to renew the ordinance at a regular meeting held pursuant to the BagleyKeene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2) or the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5), as applicable.
(2) The governing body shall determine, based on the annual military equipment report submitted pursuant to Section 7072, whether each type of military equipment identified in that report has complied with the standards for approval set forth in subdivision (d). If the governing body determines that a type of military equipment identified in that annual military equipment report has not complied with the standards for approval set forth in subdivision (d), the governing body shall either disapprove a renewal of the authorization for that type of military equipment or require modification to the military equipment use policy in a manner that will resolve the lack of compliance. 367
(f) Notwithstanding subdivisions (a) to (e), inclusive, if a city contracts with another entity for law enforcement services, the city shall have the authority to adopt a military equipment use policy based on local community needs.
7072. (a) A law enforcement agency that receives approval for a military equipment use policy pursuant to Section 7071 shall submit to the governing body an annual military equipment report for each type of military equipment approved by the governing body within one year of approval, and annually thereafter for as long as the military equipment is available for use. The law enforcement agency shall also make each annual military equipment report required by this section publicly available on its internet website for as long as the military equipment is available for use. The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment:
(1) A summary of how the military equipment was used and the purpose of its use. (2) A summary of any complaints or concerns received concerning the military equipment. (3) The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response.
(4) The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.
(5) The quantity possessed for each type of military equipment. (6) If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment. (b) Within 30 days of submitting and publicly releasing an annual military equipment report pursuant to this section, the law enforcement agency shall hold at least one well-publicized and conveniently located community engagement meeting, at which the general public may discuss and ask questions regarding the annual military equipment report and the law enforcement agency’s funding, acquisition, or use of military equipment.
7073. (a) A state agency shall create a military equipment use policy prior to engaging in any of the following:
(1) Requesting military equipment made available pursuant to Section 2576a of Title 10 of the United States Code.
(2) Seeking funds for military equipment, including, but not limited to, applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers. (3) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(4) Collaborating with a law enforcement agency or another state agency in the deployment or other use of military equipment within the territorial jurisdiction of the governing body. 368
(5) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body pursuant to this chapter. (6) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, or to apply to receive, acquire, use, or collaborate in the use of, military equipment.
(7) Acquiring military equipment through any means not provided by this subdivision. (b) No later than May 1, 2022, a state agency seeking to continue the use of any military equipment that was acquired prior to January 1, 2022, shall create a military equipment use policy. (c) A state agency that is required to create a military equipment use policy pursuant to this section shall do both of the following within 180 days of completing the policy:
(1) Publish the military equipment use policy on the agency’s internet website. (2) Provide a copy of the military equipment use policy to the Governor or the Governor’s designee. 7074. The Legislature fi and declares that ensuring adequate oversight of the acquisition and use of military equipment is a matter of statewide concern rather than a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this chapter applies to all cities, including charter cities and shall supersede any inconsistent provisions in the charter of any city, county, or city and county.
7075. Nothing in this chapter shall preclude a county or local municipality from implementing additional requirements and standards related to the purchase, use, and reporting of military equipment by local law enforcement agencies.

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

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

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district under this act would result from a legislative mandate that is within the scope of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution.
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ORDINANCE NO. 537

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

EQUIPMENT FUNDING, ACQUISITION, AND USE
WHEREAS, on September 30, 2021, the Governor signed into law Assembly Bill 481 (“AB 481”; Government Code sections 7070 et seq.) relating to the use of military equipment by law enforcement agencies; and
WHEREAS, AB 481 requires law enforcement agencies to obtain approval of the governing body, by way of an ordinance adopting a military equipment use policy, prior to taking certain actions relating to the funding, acquisition, or use of “military equipment” as defined in Government Code section 7070; and
WHEREAS, AB 481 further requires that such a policy include certain components, including but not limited to those listed in Government Code section 7070(d); and WHEREAS, the Hercules Police Department has reviewed Lexipol LLC’s Policy 709:

Military Equipment (the “Policy”) and has found it to be in compliance with the requirements of AB 481; and
WHEREAS, the City Council has determined that the Policy complies with the requirements of AB 481 and that with respect to the Policy: (1) the identified equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety; (2) the Policy will serve to safeguard the public’s welfare, safety, civil rights, and civil liberties; (3) in future instances in which equipment is to be purchased, the equipment will be reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety; and (4) any required corrective action has been taken to remedy use of military equipment inconsistent with the Policy and future compliance is ensured; and
WHEREAS, approval of the Policy authorizes funding, acquisition, and use of military equipment only as allowed by the Policy and requires annual reporting and approval in accordance with the Policy; and,
WHEREAS, adoption of this Ordinance is not a project as defined by the California Environmental Quality Act (“CEQA”) because it is an organizational or administrative activity that will not result in direct or indirect physical changes to the environment pursuant to CEQA Guidelines 15378(b)(5); and,
WHEREAS, this Ordinance was first presented to the City Council at a regularly scheduled and properly noticed City Council meeting on May 10, 2022 and was approved for introduction.

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

DocuSign Envelope ID: B3AF1753-A82C-4513-ABFC-D5586C182CC9 370
SECTION 1. RECITALS. The City Council hereby incorporates the above recitals into this Ordinance by this reference.

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

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

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

A copy of approved Policy 709 has been added to the City’s website for continuous access by the Council, staff and the public.

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

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

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

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

SECTION 6. NO CODIFICATION
This ordinance shall not be codified in the Hercules Municipal Code THE FOREGOING ORDINANCE was introduced at a regular meeting of the Hercules City Council on the 10 day of May, 2022, and was passed and adopted at a regular meeting of the Hercules City Council on the 14th day of June, 2022, by the following vote:

AYES: COUNCIL MEMBERS: T. Grimsley, C. Kelley, D. Romero, Vice Mayor A.

Walker-Griffin, Mayor D. Bailey
NOES: None.

ABSTAIN: None.

ABSENT: None.
_________________________________
Dion Bailey, Mayor
ATTEST:
______________________________
Lauren Berges
City Clerk
DocuSign Envelope ID: B3AF1753-A82C-4513-ABFC-D5586C182CC9 371
Hercules Police Department
Hercules Police Department Policy Manual
****Draft**** Military Equipment Funding, Acquisition, and Use Policy pg. 1
709 Military Equipment Funding, Acquisition and
Use Policy

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

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

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

Weaponized aircraft, vessels, or vehicles of any kind.

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

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

Noise-flash diversionary devices and explosive breaching tools.

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

Any other equipment as determined by a governing body or a state agency to require additional oversite.

DocuSign Envelope ID: B3AF1753-A82C-4513-ABFC-D5586C182CC9 372
Hercules Police Department
Hercules Police Department Policy Manual
****Draft**** Military Equipment Funding, Acquisition, and Use Policy pg. 2
709.2 POLICY
It is the policy of the Hercules Police Department that members of this department comply with the provisions of Government Code § 7071 with respect to military equipment. 709.3 MILITARYEQUIPMENT COORDINATOR
The Chief of Police should designate a member of this Department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying Department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Hercules Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the Department's funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the Department website (Government Code § 7072).
(g) Establishing the procedure for a person to register a complaint or concern, or how that person may submit a question about the use of a type of military equipment, and how the Department will respond in a timely manner.
709.4 MILITARYEQUIPMENTINVENTORY
The following constitutes a list of qualifying equipment for the Hercules Police Department as of May 1, 2022:
• Special Response Team Transport Vehicle
• PatrolR if les
• Noise flash diversionary devices
• Tear Gas explosive canisters when assigned to Mutual Aid Mobile Field Force (MAMFF), powdered OC ferret rounds
• Kinetic energy weapons
• Unmanned, remotely piloted powered aerial devices
DocuSign Envelope ID: B3AF1753-A82C-4513-ABFC-D5586C182CC9 373
Hercules Police Department
Hercules Police Department Policy Manual
****Draft**** Military Equipment Funding, Acquisition, and Use Policy pg. 3
• 37mm launchers
709.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the Department website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 709.6 COORDINATION WITH OTHER JURISDICTIONS
Military equipment used by any member of this jurisdiction shall be approved for use and in accordance with this Department policy. Military equipment used by other jurisdictions that are providing mutual aid to this jurisdiction shall comply with their respective military equipment use policies in rendering mutual aid.
709.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the Department w e b s it e for as long as the military equipment is DocuSign Envelope ID: B3AF1753-A82C-4513-ABFC-D5586C182CC9 374
Hercules Police Department
Hercules Police Department Policy Manual
****Draft**** Military Equipment Funding, Acquisition, and Use Policy pg. 4
available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 709.8 COMMUNITY ENG A G EM ENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.

MILITARY EQUIPMENT INVENTORY pd
DocuSign Envelope ID: B3AF1753-A82C-4513-ABFC-D5586C182CC9 375
Hercules Police Department
Hercules Police Department Policy Manual
****Draft**** Military Equipment Funding, Acquisition, and Use Policy pg. 5
DocuSign Envelope ID: B3AF1753-A82C-4513-ABFC-D5586C182CC9 376
Hercules Police Department
Updated February 22, 2022
1 MILITARY EQUIPMENT INVENTORY

1. Unmanned Aerial Vehicles
a. Description, quantity, capabilities and purchase cost:

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

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

To be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to:
i. Major collisions investigation
ii. Search for missing persons
iii. Natural disaster management
iv. Crime scene photography
v. Critical incident, tactical or other public safety life preservation missions vi. In response to specific requests from fire authorities for fire response c. Authorized use
Only assigned operators who have completed the required training, certification, and licensing shall be permitted to use Hercules Police Department’s UAVs during approved missions.
d. Expected lifespan
The expected lifespan of the Mavic 2 UAV is five years
e. Fiscal impact
Annual maintenance costs of approximately $0 - $500

2. Command and Control vehicles
a. Description, quantity, capabilities and purchase cost:
2008 Ford Econoline 350 transport van, Cost $0 (inner-city transfer from Parks and Recreation), quantity: 1
DocuSign Envelope ID: B3AF1753-A82C-4513-ABFC-D5586C182CC9 377
Hercules Police Department
Updated February 22, 2022
This is a full-size van modified to transport Special Response Team (SRT) members and equipment to critical incidents and high-risk entry operations. The van is equipped with emergency lights and siren and is painted white with Hercules Police Department (PD) logos on it.
b. Purpose
To be used in response to critical incidents and pre-planned operations to transport personnel and equipment.
c. Authorized use
The use of the van is limited to trained Hercules Police Department SRT members. d. Expected Lifespan
10 years
e. Fiscal Impact
Annual maintenance cost of approximately $1,000.

3. Specialized firearms and ammunition
a. Description, quantity, capabilities and purchase cost Shoulder fired rifle bored firearms capable of firing 5.56mm ammunition from high capacity magazines; shoulder fired smooth bored firearms capable of firing beanbag rounds, smoke canisters and Corson & Stoughton (CS) gas canisters also known as tear gas.
i. Colt AR-15 semi-automatic rifle for patrol use, cost: $920.00, quantity: 28 ii. Smith and Wesson Model 226 37mm canister launcher for deployment of projectile smoke or CS gas, cost $600.00, quantity: 1
iii. Remington 870 kinetic energy shotgun for patrol use, cost: $900.00, quantity: 5 iv. Defense Technologies 12 gauge powder barricade penetrator Oleoresin Capsicum (OC) rounds for barricaded subject critical incidents, cost $5.94, quantity: 10
v. Defense technology 37mm CS gas rounds used for riot control and disbursement, cost $39.50, quantity: 0
vi. Winchester Ranger 5.56mm 77 grain ammunition for patrol rifles, cost $878.00/1000 rounds, quantity: 7000
Winchester 5.56mm 55 grain ammunition for patrol rifles, Cost $359/1000 rounds, quantity: 12,000
vii. Defense Technology drag stabilized kinetic energy rounds for patrol, cost $5.35, quantity: 50
b. Purpose
To be used as precision weapons to address known threats from greater distance and behind cover, providing safer response to critical incidents involving heavily armed and protected suspect(s), to defuse vola
2 tile incidents with less than lethal force, to bring
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Hercules Police Department
Updated February 22, 2022
3 critical incidents to a close with the least amount of danger to the public, the involved subject(s) and the responding personnel.
c. Authorized use
Only personnel who have attended and passed training and certification courses approved by the Peace Officer Standards and Training (POST) Commission are authorized to possess or deploy patrol rifles, kinetic energy shotguns, or 37mm launcher.
d. Expected Lifespan
i. Colt AR-15 Rifle: 15 years
ii. S&W Mod 226 37mm launcher: 15 years
iii. Remington 870 kinetic energy shotgun: 15 years
iv. Defense technology OC rounds: no expiration date
v. Winchester 5.56mm rounds: no expiration date
vi. Kinetic energy rounds: no expiration date
e. Fiscal impact
Annual maintenance is approximately $50 for each rifle. Ammunition costs vary by availability. Approximately $2,500 annually.

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

The momentary distraction allows off icers to seize the opportunity to take control of high-risk situations.
i. Defense Technologies 12-gram low roll non-reloadable, cost $52.00, quantity: 24 b. Purpose
To produce atmospheric overpressure and brilliant white light and as a result can cause short-term (6-8 seconds) physiological/psychological sensory deprivation to give officers a tactical advantage.

DocuSign Envelope ID: B3AF1753-A82C-4513-ABFC-D5586C182CC9 379
Hercules Police Department
Updated February 22, 2022
4 c. Authorized use
Diversionary devices shall only be used:
i. By SRT members who have been trained in their proper handling and use ii. In hostage or barricaded subject situations
iii. In high-risk warrant services where there may be extreme hazards to officers iv. During other high risk situations where their use would enhance officer safety v. During training exercises.
d. Expected lifespan
5 years
e. Fiscal impact
There are no maintenance costs associated with the storage of this device.

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

CS is an irritating agent and lachrymator (irritates the eyes and causes tears to flow). CS has been medically tested in the UK and US, specifically by the U.S. Army. There are no known allergic reactions to CS. OC was de-regulated in California in 1996, is endorsed by the FBI, and is available to civilians to legally possess (2.5oz or less). OC is an inflammatory agent which causes involuntary closure of eyes (open 2-5 minutes) and respiratory inflammation (subsides in approximately 2 minutes). i. Defense Technologies 12 gauge powder barricade penetrator OC for barricaded subject critical incidents, cost $5.94, quantity: 10 ii. Officers assigned to the County-Wide Mutual Aid Mobile Field Force (MAMFF) are issued Defense Technology CS gas by the Contra Costa Office of the Sheriff as part of their tactical duty gear when deployed by the MAMFF. They do not carry the CS gas as a part of their regular Patrol equipment in Hercules, however they do possess it in the event they need to respond to emergency deployment(s) elsewhere in the County. Cost $0, quantity: 2 each.
b. Purpose
To limit the escalation of conflict where employment of lethal force is prohibited or undesirable. Situations for use of the less lethal weapon systems may include, but are not limited to:

DocuSign Envelope ID: B3AF1753-A82C-4513-ABFC-D5586C182CC9 380
Hercules Police Department
Updated February 22, 2022
5 i. Self-destructive, dangerous and/or combative individuals. ii. Riot/crowd control and civil unrest incidents.
iii. Circumstances where a tactical advantage can be obtained. iv. Potentially vicious animals.
v. Training exercises or approved demonstrations.
c. Authorized use
Only Officers who have received POST certification in the use of chemical agents are authorized to use chemical agents.
d. Expected Lifespan
Defense Technology OC rounds: No expiration date
e. Fiscal Impact
There are no maintenance costs associated with the storage of these devices DocuSign Envelope ID: B3AF1753-A82C-4513-ABFC-D5586C182CC9 381
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Discussion and/or Action Item
22-558

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 23, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Michael Roberts, Public Works Director/City Engineer SUBJECT: Landscape and Lighting Assessment Districts – Review of the Draft 5-year Financial Projections, Recommended Rates for FY 2023-24, and Additional Program Evaluation
RECOMMENDED ACTION:

It is recommended that the City Council:
1) Receive a draft report on the 5-year financial projections and overall health of each of the 5 Landscaping and Lighting Assessment Districts (LLADs); and 2) Provide feedback to staff on the recommended assessment rates for FY 2023-24 for inclusion in the Preliminary Engineer’s Reports scheduled for review by City Council at their June 27, 2023 meeting; and
3) Provide direction on the need to perform additional program evaluation, if any, including addressing the fund deficit for LLAD No. 2002-1 (Victoria by The Bay).

BACKGROUND:

The City of Hercules annually levies and collects special assessments to maintain certain improvements within the City’s five LLADs that encompass the entire City. Each LLAD provides continued maintenance, servicing, administration, and operations of various landscape and lighting improvements and other facilities benefiting parcels within each LLAD. Each property is assessed only for the cost of the improvements from which benefit is received.

The five LLADs in Hercules provide for well-maintained, attractive landscaping and serviceable streetlighting along public streets as well as fire breaks adjacent to open space. They also provide for the upkeep of playgrounds, fields, park furniture, tennis courts, graffiti abatement, lighting, landscaping, water features, and trails in City parks. 383
22-558
The expenses associated with the maintenance of these LLADs include labor, material, equipment, utilities, repairs, and administration.

ANALYSIS:
5-Year Financial Projections
On February 14, 2023, Hercules City Council adopted Resolutions initiating the FY 2023- 24 LLAD annual approval process and authorizing the preparation of 5-year financial projections for the City’s five LLADs to evaluate their long-term financial health by forecasting revenues and expenditures. The attached 5-year Financial Projections Analysis and Findings Draft Report (“Report”) for the LLADs is being presented for City Council consideration this evening in advance of the scheduled June 27, 2023 City Council meeting, at which time City Council will be asked to preliminarily approve the FY 2023-24 LLAD Engineer’s Reports including the assessment rates. The Report will also be brought back in its final form for approval. The attached Report includes, for each LLAD/Benefit Zone, a 5-year financial projection through FY 2027-28, a trend graph of the 5-year financial projections, and a capital replacement table to determine the recommended target reserve levels.

Please note the attached 5-year financial projections include costs for programmed 5- year Capital Improvement Projects anticipated to be funded by each LLAD but does not account for the replacement of existing park improvements in LLAD No. 83-2 Benefit Zone 10 (Citywide Parks) or projects in the Parks Master Plan as that data is still pending.

These park improvements are intended to be funded with grants and other funding sources that become available, to the extent possible.

In summary, the operating budgets for LLAD No. 83-2 (comprised of eleven Benefit Zones), LLAD No. 2004-1 (Baywood), and LLAD No. 2005-1 (Bayside) are trending positively over the 5-year projections. This is in part due to successful Proposition 218 proceedings conducted between FY 2017-18 to FY 2021-22 approving increases to LLAD assessments for six (6) Benefit Zones of LLAD No. 83-2. LLAD No. 2002-1 (Victoria by the Bay) and LLAD No. 2002-2 (Promenade) are currently experiencing annual operating deficits primarily due to the need for increased irrigation watering due climate change, East Bay Municipal Utility District water rate increases which have exceeded the allowable annual consumer price index increase, and higher-level tree pruning work associated with the trees maturing.

Recommended Assessment Rates for FY 2023-24
Based on the attached 5-year financial projections, City staff is recommending proceeding with the LLAD assessments for FY 2023-24 as shown in Table A and discussed below.

Please first note though the applicable annual change in the Consumer Price Index (CPI) for FY 2023-24 is 5.3%. However, City Council authorized an assessment increase below the maximum for FY 2022-23 and therefore, the maximum allowable increase is 7.5% for FY 2023-24 for all Districts/Zones, except LLAD No. 2004-1 (Baywood) which has a much higher maximum allowable increase.
384
Summary of Districts/Zones recommended to be assessed below their respective maximum assessment rates:

Zone 2 (Foxboro) – City staff is proposing no assessment increase from prior fiscal year for this Zone because it is currently generating sufficient revenue to cover annual operating and maintenance expenditures and has adequate reserves.

Zone 5A (Business Park) – Increasing assessments by the 5.3% annual change in the CPI vs. the maximum of 7.5% will generate sufficient revenue to cover annual operating and maintenance expenditures and continue building healthy reserves.

Zone 5B (Commercial Parcels) – City staff is proposing no assessment increase from prior fiscal year for this Zone because it is currently generating sufficient revenue to cover annual operating and maintenance expenditures and has adequate reserves.

Zone 8 (Trees and Flowers) – Increasing assessments by the 5.3% annual change in the CPI vs. the maximum of 7.5% will generate sufficient revenue to cover annual operating and maintenance expenditures and continue building healthy reserves.

LLAD No. 2004-1 (Baywood) – Increasing assessments by 7.5% will generate sufficient revenue to cover annual operating and maintenance expenditures and repay a loan corresponding to the replacement of trees throughout the neighborhood. If approved, this increase will result in an annual assessment amount of $2,048, which is well below the maximum annual assessment of $2,807 for FY 2023-24.

Summary of Districts/Zones recommended to be assessed at their respective maximum assessment rates (7.5% increase from prior fiscal year):

Zone 1 (Hercules by the Bay) – The maximum assessment rate is needed to continue gradually eliminating the Zone deficit and repay a loan corresponding to the replacement of deteriorated wooden pole streetlights with cost-effective LED lighting on metal poles.

Zone 3&4 (The Gems/Birds) – The maximum assessment rate is needed to continue repaying a loan corresponding to the replacement of deteriorated wooden pole streetlights with cost-effective LED lighting on metal poles and continue building adequate reserves.

Zone 5C (Misc. Parcels) – The maximum assessment rate is needed to continue gradually eliminating the Zone deficit.
385
Zone 6 (Village Parkway) – The maximum assessment rate is needed to continue gradually eliminating the Zone deficit and repay a loan corresponding to the replacement of deteriorated wooden pole streetlights with cost-effective LED lighting on metal poles.

Zone 7 (Heights) – The maximum assessment rate is needed to continue repaying a loan corresponding to the replacement of deteriorated wooden pole streetlights with costeffective LED lighting on metal poles and continue building adequate reserves.

Zone 9 (Birds and Country Run) – The maximum assessment rate is needed to continue gradually eliminating the Zone deficit.

Zone 10 (Citywide Parks) – The maximum assessment rate is needed to fund annual operating and maintenance expenditures.

LLAD No. 2002-1 (Victoria by the Bay) – This District is anticipated to experience a significant operating deficit for Fiscal Year 2023-24. The maximum assessment rate is needed to fund operating and maintenance expenditures. City staff is recommending undertaking Proposition 218 proceedings in the fall of 2023 to provide funding for the City to continue the same levels of service.

LLAD No. 2002-2 (Promenade) – This District is anticipated to experience a significant operating deficit for Fiscal Year 2023-24. The maximum assessment rate is needed to fund operating and maintenance expenditures. This District has sufficient operating reserves to cover the operating deficit for Fiscal Year 2023-24. However, City staff recommends evaluating this District again in calendar year 2024.

LLAD No. 2005-1 (Bayside) – The maximum assessment rate is needed to fund annual operating and maintenance expenditures and continue building adequate reserves.

Below is a summary table of the recommended assessments for Districts/Zones for FY 2023-24.
386
Table A
Additional Program Evaluation
The Report contains the 5-year financial projections as directed at the February 14, 2023 meeting. If so desired, Council could direct staff at this time to have the Landscaping and Lighting Assessment District program evaluated more comprehensively this calendar year. While staff has an intimate knowledge of the program, it may be beneficial to contract with an outside, 3rd party, who can offer a fresh and new perspective.

LLAD No. 2002-1 (Victoria by the Bay)
Victoria by the Bay is operating in a fund deficit. Staff is recommending steps be taken to allow services to be maintained at the same level into the future (i.e. no service cuts).

In the past, this entailed initiating Proposition 218 proceedings to allow residents to vote to increase rates. Staff is recommending this occur in the fall of 2023.

FISCAL IMPACT:

The FY 2023-24 assessment rates for the City’s five LLADs will be based on direction provided by City Council this evening and will be included in the LLAD Engineer’s Reports scheduled to be preliminarily approved at the June 27, 2023 City Council meeting. 387
If assessments for the LLADs are not levied, there would be an estimated revenue loss of $3.2 million for FY 2023-24 to fund the maintenance and operations associated with the City’s public parks, landscaping, streetlighting, and open space areas.

ATTACHMENTS:

Attachment 1 LLADs 5-Year Financial Projections Analysis and Findings Report 388
Draft
Landscaping and Lighting
Assessment Districts
5-year Financial Projections
Analysis and Findings Report
May 23, 2023
389

TABLE OF CONTENTS
Page No.

Executive Summary................................................................................................. 1 Section I - LLAD No. 83-2 ...................................................................................... I-1 5-year Financial Projections, Trend Graph, and Capital Replacement Analysis:

Benefit Zone 1 (Hercules by the Bay)....................................................... I-2 Benefit Zone 2 (Foxboro) ......................................................................... I-6 Benefit Zone 3&4 (Gems/Birds) ............................................................. I-10 Benefit Zone 5A (Business Park) ........................................................... I-14 Benefit Zone 5B (Commercial)............................................................... I-18 Benefit Zone 5C (Misc. Parcels)............................................................. I-22 Benefit Zone 6 (Village Parkway)........................................................... I-25 Benefit Zone 7 (Heights) ........................................................................ I-29 Benefit Zone 8 (Trees and Flowers)....................................................... I-33 Benefit Zone 9 (Birds and Country Run) ................................................ I-37 Benefit Zone 10 (Citywide Parks)........................................................... I-41 Section II – LLAD No. 2002-1 (Victoria by the Bay)............................................ II-1 5-year Financial Projections, Trend Graph, and Capital Replacement Analysis Section III – LLAD No. 2002-2 (Promenade)....................................................... III-1 5-year Financial Projections, Trend Graph, and Capital Replacement Analysis Section IV – LLAD No. 2004-1 (Baywood)..........................................................IV-1 5-year Financial Projections, Trend Graph, and Capital Replacement Analysis Section V – LLAD No. 2005-1 (Bayside).............................................................. V-1 5-year Financial Projections, Trend Graph, and Capital Replacement Analysis 390

EXECUTIVE SUMMARY
The City of Hercules annually levies and collects special assessments to maintain certain improvements within the City’s five Landscape and Lighting Assessment Districts (LLADs). Each LLAD provides continued maintenance, servicing, administration, and operations of various landscape and lighting improvements and other facilities benefiting parcels within each respective LLAD. Each property is assessed only for the cost of the improvements from which benefit is received.

The five LLADs in Hercules provide for well-maintained, attractive landscaping and serviceable streetlighting along public streets as well as fire breaks adjacent to open space. They also provide for the upkeep of playgrounds, fields, park furniture, tennis courts, graffiti abatement, lighting, landscaping, water features, and trails in City parks.

The expenses associated with the maintenance of these LLADs include labor, material, equipment, utilities, repairs, and administration.

On February 14, 2023, Hercules City Council adopted Resolutions initiating the FY 2023- 24 LLAD annual approval process and authorizing the preparation of 5-year financial projections for the City’s five LLADs to evaluate their long-term financial health by forecasting revenues and expenditures. This report includes, for each LLAD/Benefit Zone, a 5-year financial projection through FY 2027-28, a trend graph of the 5-year financial projections, and a capital replacement table to determine the recommended target reserve levels for FY 2023-24.

Please note the 5-year financial projections in this report includes costs for programmed 5-year Capital Improvement Projects anticipated to be funded by each LLAD but does not account for the replacement of existing park improvements associated with LLAD No. 83- 2 Benefit Zone 10 (Citywide Parks) or projects in the Parks Master Plan as that data is still pending. These park improvements are intended to be funded with grants and other funding sources that become available, to the extent possible.

In short, the operating budgets for LLAD No. 83-2 (comprised of eleven Benefit Zones), LLAD No. 2004-1 (Baywood), and LLAD No. 2005-1 (Bayside) are trending positively over the 5-year projections, in large part due to successful Proposition 218 proceedings conducted between FY 2017-18 to FY 2021-22 approving increases to LLAD assessments for six (6) Benefit Zones of LLAD No. 83-2. LLAD No. 2002-1 (Victoria by the Bay) and LLAD No. 2002-2 (Promenade) are currently experiencing annual operating deficits primarily due to the need for increased irrigation watering, East Bay Municipal Utility District water rate increases, and additional work associated with regular tree pruning.
391

SECTION I
LLAD NO. 83-2
5-YEAR FINANCIAL PROJECTIONS, TREND GRAPH,

AND CAPITAL REPLACEMENT ANALYSIS
392
BENEFIT ZONE 1

HERCULES BY THE BAY
• 5-YEAR FINANCIAL PROJECTIONS
• TREND GRAPH
• CAPITAL REPLACEMENT ANALYSIS
393
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $143 $150 $157 $165 $173 Assessments $100,412 $105,433 $110,704 $116,239 $122,051General Benefit Contribution $892 $1,146 $1,002 $1,299 $1,118 TOTAL REVENUES: $101,304 $106,578 $111,706 $117,539 $123,169 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $18,846 $19,788 $20,778 $21,817 $22,907Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $27,703 $34,045 $35,019 $32,403 $33,903Landscaping, Open Space, and Associated Repairs $9,000 $9,180 $9,364 $9,551 $9,742Tree Trimming $0 $10,000 $0 $12,000 $0Electricity and Streetlight Repairs $10,000 $10,500 $11,100 $11,700 $12,300Landscape and Facilities Water $5,000 $6,000 $7,000 $8,000 $9,000Assessment Engineering Cost $820 $861 $904 $949 $997Incidental / Direct Admin Cost $0 $0 $0 $0 $0County Fees $947 $947 $947 $947 $947 TOTAL ANNUAL EXPENDITURES: $72,316 $91,321 $85,112 $97,366 $89,796 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement $0 $0 $0 $0 $0Street Light Pole Replacement (10-year loan repayment) $20,259 $20,259 $20,259 $20,259 $20,259 TOTAL CIP EXPENDITURES: $20,259 $20,259 $20,259 $20,259 $20,259 TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $92,575 $111,580 $105,371 $117,625 $110,055 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 ($56,399) ($47,670) ($52,672) ($46,337) ($46,423)Reserve Collection Increase/(Decrease) $8,729 ($5,002) $6,336 ($87) $13,114 Ending Balance - Projected June 30 ($47,670) ($52,672) ($46,337) ($46,423) ($33,309)Recommended Operating Reserves $46,288 $55,790 $52,685 $58,813 $55,028Available Operating Reserves ($47,670) ($52,672) ($46,337) ($46,423) ($33,309)Target Capital Reserves $152,126 $159,733 $167,719 $176,105 $184,910Available Capital Reserves $0 $0 $0 $0 $0*EDU = Equivalent Dwelling Unit. Assumes rates will be increased by 7.5% to the maximum allowable rate for FY 2023-24.

The Cottage Ln, Coventry, and Olympian Hills developments within Zone 1 have a lower maximum allowable assessment rate ($85.21 per EDU for FY 2023-24) because their interior streetlighting is owned and maintained by an HOA.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 1 - HERCULES BY THE BAY)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2027-28
394
($47,670)
($52,672) ($46,337) ($46,423)
($33,309)
($80,000)($60,000)($40,000)($20,000)
$0
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
Landscaping and Lighting Assessment District No. 83-2
Zone 1 (Hercules by the Bay)
Projected Ending Fund Balance Trend
Prior to Fiscal Year 2019-20, Zone 1 (Hercules by the Bay) property owners approved an increase to their LLAD assessment to finance the replacement of deteriorated wooden pole streetlights in their neighborhood and gradually eliminate the Zone's fund deficit. Zone 1 is now on pace to fully repay the loan for the wooden pole streetlight replacements and is expected to decrease the fund deficit over the next five years. The trend graph below assumes the Zone 1 assessment rate will be increased by 7.5% from prior year to the maximum allowable rate for Fiscal Year 2023-24, and projects 5% annual assessment increases through Fiscal Year 2027-28. 395
Railroad Park - LLAD 83-2 (Zone 1)
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Benches - Steel 4 EA $1,000 $4,000 30 0 $4,000 $4,000
Miscellaneous Irrigation System Replacement 12,800 SF $0.05 $640 1 0 $640 $640 Irrigation Controller 1 EA $15,000 $15,000 15 0 $15,000 $15,000 Picnic Tables - Wood with steel base 3 EA $1,000 $3,000 25 0 $3,000 $3,000Playground (Ages 5-12) - Little Tykes 1 EA $40,000 $40,000 20 2 $42,436 $38,192Pathway - Concrete Repair 3,500 SF $10 $3,500 50 20 $6,321 $3,793 Swing Set - Landscape Structures 2 EA $4,000 $8,000 20 0 $8,000 $8,000 Trash Cans - Concrete with Metal Tops 2 EA $750 $1,500 30 0 $1,500 $1,500 *Assumes 3% annual inflation. $74,125
Landscaping & Lighting - LLAD 83-2 (Zone 1)
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Miscellaneous Median Irrigation System Replacement 5,000 SF $0.10 $500 1 0 $500.00 $500.00Decorative Pavers 1,500 SF $5.00 $7,500 30 0 $7,500.00 $7,500.00Miscellaneous Cul-de-Sac Irrigation System Replacement 4,500 SF $0.10 $450 1 0 $450.00 $450.00 Irrigation Controller 2 EA $15,000 $30,000 15 0 $30,000.00 $30,000.00 Street Light - Single Head 119 EA $4,000 $476,000 30 29 $1,121,725.18 $37,390.84 Street Light - Double Head 5 EA $5,500 $27,500 30 29 $64,805.55 $2,160.19 *Assumes 3% annual inflation. Totals $541,950.00 $78,001.02 FY 2023-24 Total Target Capital Reserve for Zone 1: $152,126.26 LLAD No. 83-2 (ZONE 1 - HERCULES BY THE BAY) CAPITAL REPLACEMENT ANALYSIS 396
5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 BENEFIT ZONE 2

FOXBORO
 5-YEAR FINANCIAL PROJECTIONS
 TREND GRAPH
 CAPITAL REPLACEMENT ANALYSIS
397
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $130 $130 $130 $130 $130Assessments $82,960 $82,960 $82,960 $82,960 $82,960General Benefit Contribution $608 $655 $703 $752 $802 TOTAL REVENUES: $83,569 $83,616 $83,663 $83,712 $83,762 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $18,846 $19,788 $20,778 $21,817 $22,907Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $20,871 $25,649 $26,383 $24,412 $25,542Landscaping, Open Space, and Associated Repairs $3,000 $3,060 $3,121 $3,184 $3,247Tree Trimming $0 $0 $0 $0 $0Electricity and Streetlight Repairs $5,000 $5,300 $5,600 $5,900 $6,200Landscape and Facilities Water $2,000 $3,000 $4,000 $5,000 $6,000 Assessment Engineering Cost $820 $861 $904 $949 $997Incidental / Direct Admin Cost $0 $0 $0 $0 $0County Fees $750 $750 $750 $750 $750 TOTAL ANNUAL EXPENDITURES: $51,287 $58,408 $61,536 $62,011 $65,644 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement $0 $0 $0 $0 $0Other Capital Improvement Projects $0 $0 $0 $0 $0 TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $51,287 $58,408 $61,536 $62,011 $65,644 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 $67,358 $99,639 $124,847 $146,974 $168,675Reserve Collection Increase/(Decrease) $32,282 $25,207 $22,128 $21,701 $18,119Ending Balance - Projected June 30 $99,639 $124,847 $146,974 $168,675 $186,794Recommended Operating Reserves $25,644 $29,204 $30,768 $31,006 $32,822Available Operating Reserves $25,644 $29,204 $30,768 $31,006 $32,822Target Capital Reserves $28,904 $30,349 $31,867 $33,460 $35,133Available Capital Reserves $73,996 $95,642 $116,206 $137,670 $153,972 LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 2 FOXBORO)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2027-28
*EDU = Equivalent Dwelling Unit. Assumes rates will not be increased for FY 2023-24 through 2027-28. 398
$99,639 $124,847
$146,974
$168,675
$186,794
$0
$55,000
$110,000$165,000$220,000
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
Landscaping and Lighting Assessment District No. 83-2
Zone 2 (Foxboro)
Projected Ending Fund Balance Trend
Zone 2 (Foxboro) is generating sufficient assessment revenue to pay for annual operating and maintenance expenditures and is in strong position to continue building reserves for future capital improvement and replacement projects.

The trend graph below assumes the Zone 2 assessment rates will not be increased through Fiscal Year 2027-28. 399
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Miscellaneous Median Irrigation System Replacement 11,000 SF $0.10 $1,100 1 0 $1,100 $1,100 Irrigation Controller 1 EA $15,000 $15,000 15 0 $15,000 $15,000Street Light - Single Head 38 EA $4,000 $152,000 30 29 $358,198 $11,940Street Light - Double Head 2 EA $5,500 $11,000 30 29 $25,922 $864 *Assumes 3% annual inflation. Totals $179,100 $28,904
FY 2023-24 Total Target Capital Reserve for Zone 1: $28,904 LLAD No. 83-2 (ZONE 2 - FOXBORO) CAPITAL REPLACEMENT ANALYSIS 400
5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 BENEFIT ZONE 3&4

GEMS/BIRDS
 5-YEAR FINANCIAL PROJECTIONS
 TREND GRAPH
 CAPITAL REPLACEMENT ANALYSIS
401
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $139 $146 $153 $161 $169Assessments $118,006 $123,907 $130,102 $136,607 $143,438General Benefit Contribution $901 $963 $1,036 $1,110 $1,188 TOTAL REVENUES: $118,907 $124,870 $131,138 $137,718 $144,625 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $18,846 $19,788 $20,778 $21,817 $22,907
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $28,345 $34,834 $35,831 $33,154 $34,689Landscaping, Open Space, and Associated Repairs $6,000 $6,120 $6,242 $6,367 $6,495 Tree Trimming $0 $0 $0 $0 $0Electricity and Streetlight Repairs $9,000 $9,500 $10,000 $10,500 $11,100Landscape and Facilities Water $9,000 $10,000 $11,000 $12,000 $13,000Assessment Engineering Cost $820 $861 $904 $949 $997Incidental / Direct Admin Cost $500 $1,000 $2,000 $3,000 $4,000County Fees $883 $883 $883 $883 $883 TOTAL ANNUAL EXPENDITURES: $73,394 $82,986 $87,638 $88,670 $94,071 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement $0 $0 $0 $0 $0Street Light Pole Replacement (10-year loan repayment) $42,192 $42,192 $42,192 $42,192 $42,192 TOTAL CIP EXPENDITURES: $42,192 $42,192 $42,192 $42,192 $42,192 TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $115,586 $125,178 $129,830 $130,862 $136,263 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 $68,218 $71,540 $71,231 $72,539 $79,395Reserve Collection Increase/(Decrease) $3,321 ($309) $1,308 $6,856 $8,363 Ending Balance - Projected June 30 $71,540 $71,231 $72,539 $79,395 $87,758Recommended Operating Reserves $57,793 $62,589 $64,915 $65,431 $68,131Available Operating Reserves $57,793 $62,589 $64,915 $65,431 $68,131Target Capital Reserves $84,880 $89,124 $93,580 $98,259 $103,172Available Capital Reserves $13,746 $8,642 $7,624 $13,964 $19,626*EDU = Equivalent Dwelling Unit. Assumes rates will be increased by 7.5% to the maximum allowable rate for FY 2023-24.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 3 & 4 - THE GEMS/BIRDS)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2027-28
402
$71,540
$71,231 $72,539 $79,395
$87,758
$0
$25,000$50,000$75,000
$100,000
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
Landscaping and Lighting Assessment District No. 83-2
Zone 3 & 4 (The Gems/Birds)
Projected Ending Fund Balance Trend
Prior to Fiscal Year 2021-22, Zone 3&4 (The Gems/Birds) property owners approved an increase to their LLAD assessment to finance the replacement of deteriorated wooden pole streetlights in their neighborhood. Zone 3&4 is on pace to fully repay the loan for the wooden pole streetlight replacements and is in strong position to build reserves for future capital improvement and replacement projects. The trend graph below assumes the Zone 3&4 assessment rate will be increased by 7.5% from prior year to the maximum allowable rate for Fiscal Year 2023-24, and projects 5% annual assessment increases through Fiscal Year 2027-28. 403
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Miscellaneous Cul-de-Sac Irrigation System Replacement 8,000 SF $0.10 $800 1 0 $800 $800Cul-de-Sac - Concrete Repair 8,000 SF $10 $8,000 50 10 $10,751 $8,601 Miscellaneous Roadside Irrigation System Replacement 40,000 SF $0.05 $2,000 1 0 $2,000 $2,000 Irrigation Controller 2 EA $15,000 $30,000 15 0 $30,000 $30,000Street Light - Single Head 137 EA $4,000 $548,000 30 29 $1,291,398 $43,047Street Light - Double Head 1 EA $5,500 $5,500 30 29 $12,961 $432 *Assumes 3% annual cost increase. Totals $594,300 $84,880 FY 2023-24 Total Target Capital Reserve for Zone 3&4: $84,880 LLAD No. 83-2 (ZONE 3&4 - THE GEMS/BIRDS) CAPITAL REPLACEMENT ANALYSIS I-13
404
5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 BENEFIT ZONE 5A

BUSINESS PARK
 5-YEAR FINANCIAL PROJECTIONS
 TREND GRAPH
 CAPITAL REPLACEMENT ANALYSIS
405
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $147 $154 $162 $170 $178Assessments $93,420 $98,091 $102,995 $108,145 $113,552General Benefit Contribution $1,329 $1,420 $1,506 $1,593 $1,681 TOTAL REVENUES: $94,749 $99,511 $104,501 $109,738 $115,233 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $11,716 $12,302 $12,917 $13,563 $14,241Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $20,824 $25,591 $26,323 $24,356 $25,484Landscaping, Open Space, and Associated Repairs $12,000 $12,240 $12,485 $12,734 $12,989Tree Trimming $0 $0 $0 $0 $0Electricity and Streetlight Repairs $6,000 $6,300 $6,700 $7,100 $7,500Landscape and Facilities Water $30,000 $33,000 $35,000 $37,000 $39,000Assessment Engineering Cost $820 $861 $904 $949 $997Incidental / Direct Admin Cost $5,600 $6,000 $7,000 $8,000 $9,000County Fees $310 $310 $310 $310 $310 TOTAL ANNUAL EXPENDITURES: $87,270 $96,603 $101,639 $104,013 $109,521 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement $0 $0 $0 $0 $0Other Capital Improvement Projects $0 $0 $0 $0 $0 TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $87,270 $96,603 $101,639 $104,013 $109,521 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 $93,630 $101,109 $104,017 $106,880 $112,605Reserve Collection Increase/(Decrease) $7,479 $2,907 $2,863 $5,725 $5,712Ending Balance - Projected June 30 $101,109 $104,017 $106,880 $112,605 $118,317Recommended Operating Reserves $43,635 $48,302 $50,819 $52,006 $54,760Available Operating Reserves $43,635 $48,302 $50,819 $52,006 $54,760Target Capital Reserves $46,872 $49,216 $51,677 $54,260 $56,973Available Capital Reserves $57,475 $55,715 $56,060 $60,599 $63,557*EDU = Equivalent Dwelling Unit. Assumes rates will be increased by CPI (5.3%) for FY 2023-24.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 5A - BUSINESS PARK)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2027-28
406
$101,109 $104,017 $106,880 $112,605
$118,317
$0
$37,500$75,000
$112,500$150,000
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
Landscaping and Lighting Assessment District No. 83-2
Zone 5A (Business Park)
Projected Ending Fund Balance Trend
Zone 5A (Business Park) is generating sufficient assessment revenue to pay for annual operating and maintenance expenditures and is in strong position to continue building reserves for future capital improvement and replacement projects. The trend graph below assumes the Zone 5A assessment rate will be increased by the applicable annual change in the Consumer Price Index (5.3%) from prior year, and projects 5% annual assessment increases through Fiscal Year 2027-28. 407
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Miscellaneous Median Irrigation System Replacement 20,500 SF $0.10 $2,050 1 0 $2,050 $2,050Miscellaneous Median Irrigation System Replacement 23,000 SF $0.10 $2,300 1 0 $2,300 $2,300Miscellaneous Median Irrigation System Replacement 12,500 SF $0.10 $1,250 1 0 $1,250 $1,250Irrigation Controller 2 EA $15,000 $30,000 15 0 $30,000 $30,000Street Light - Single Head 29 EA $4,000 $116,000 30 29 $273,362 $9,112 Street Light - Double Head 5 EA $5,500 $27,500 30 29 $64,806 $2,160*Assumes 3% annual cost increase. Totals $179,100 $46,872 FY 2023-24 Total Target Capital Reserve for Zone 5A: $46,872 LLAD No. 83-2 (ZONE 5A - BUSINESS PARK) CAPITAL REPLACEMENT ANALYSIS I-17
408
5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 BENEFIT ZONE 5B

COMMERCIAL
 5-YEAR FINANCIAL PROJECTIONS
 TREND GRAPH
 CAPITAL REPLACEMENT ANALYSIS
409
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $140 $140 $140 $140 $140 Assessments $49,820 $49,820 $49,820 $49,820 $49,820General Benefit Contribution $322 $353 $389 $425 $462 TOTAL REVENUES: $50,142 $50,173 $50,209 $50,245 $50,282 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $11,716 $12,302 $12,917 $13,563 $14,241Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $11,616 $14,276 $14,684 $13,587 $14,216Landscaping, Open Space, and Associated Repairs $1,000 $1,020 $1,040 $1,061 $1,082Tree Trimming $0 $0 $0 $0 $0Electricity and Streetlight Repairs $120 $200 $300 $400 $500Landscape and Facilities Water $0 $0 $0 $0 $0Assessment Engineering Cost $820 $861 $904 $949 $997Incidental / Direct Admin Cost $2,200 $3,000 $4,000 $5,000 $6,000County Fees $267 $267 $267 $267 $267 TOTAL ANNUAL EXPENDITURES: $27,739 $31,926 $34,113 $34,827 $37,303 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement $0 $0 $0 $0 $0Other Capital Improvement Projects $0 $0 $0 $0 $0 TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $27,739 $31,926 $34,113 $34,827 $37,303 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 $194,774 $217,177 $235,424 $251,520 $266,938Reserve Collection Increase/(Decrease) $22,403 $18,247 $16,096 $15,418 $12,978Ending Balance - Projected June 30 $217,177 $235,424 $251,520 $266,938 $279,916Recommended Operating Reserves $13,870 $15,963 $17,056 $17,414 $18,652Available Operating Reserves $13,870 $15,963 $17,056 $17,414 $18,652Target Capital Reserves $2,287 $2,402 $2,522 $2,648 $2,780Available Capital Reserves $203,307 $219,461 $234,464 $249,524 $261,265*EDU = Equivalent Dwelling Unit. Assumes rates will not be increased for FY 2023-24 through 2027-28.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 5B - COMMERCIAL)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2027-28
410
$217,177 $235,424
$251,520 $266,938
$279,916
$0
$87,500
$175,000$262,500$350,000
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
Landscaping and Lighting Assessment District No. 83-2
Zone 5B (Commercial)
Projected Ending Fund Balance Trend
Zone 5B (Commercial) is generating sufficient assessment revenue to pay for annual operating and maintenance expenditures and is in strong position to continue building reserves for future capital improvement and replacement projects. The trend graph below assumes the Zone 5B assessment rates will not be increased through Fiscal Year 2027-28. 411
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Miscellaneous Roadside Irrigation System Replacement 9,000 SF $0.05 $450 1 0 $450 $450Miscellaneous Median Irrigation System Replacement 3,300 SF $0.10 $330 1 0 $330 $330 Medians - Concrete Repair 1,000 SF $10 $1,000 50 10 $1,344 $1,075 Street Light - Double Head 1 EA $5,500 $5,500 30 29 $12,961 $432 *Assumes 3% annual cost increase. Totals $7,280 $2,287
FY 2023-24 Total Target Capital Reserve for Zone 5B: $2,287 LLAD No. 83-2 (ZONE 5B - COMMERCIAL PARCELS) CAPITAL REPLACEMENT ANALYSIS I-21
412
5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 BENEFIT ZONE 5C
MISC. PARCELS
 5-YEAR FINANCIAL PROJECTIONS
 TREND GRAPH
413
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $67 $71 $74 $78 $82Assessments $30,653 $32,186 $33,795 $35,485 $37,259General Benefit Contribution $180 $192 $221 $250 $280 TOTAL REVENUES: $30,833 $32,378 $34,016 $35,735 $37,539 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $5,858 $6,151 $6,458 $6,781 $7,120Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $14,902 $18,314 $18,838 $17,430 $18,237Landscaping, Open Space, and Associated Repairs $0 $0 $0 $0 $0Tree Trimming $0 $0 $0 $0 $0Electricity and Streetlight Repairs $250 $300 $400 $500 $600Landscape and Facilities Water $0 $0 $0 $0 $0Assessment Engineering Cost $820 $861 $904 $949 $997Incidental / Direct Admin Cost $1,800 $2,000 $3,000 $4,000 $5,000County Fees $292 $292 $292 $292 $292 TOTAL ANNUAL EXPENDITURES: $23,922 $27,918 $29,892 $29,953 $32,246 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement $0 $0 $0 $0 $0Other Capital Improvement Projects $0 $0 $0 $0 $0 TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $23,922 $27,918 $29,892 $29,953 $32,246 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 ($13,801) ($6,890) ($2,430) $1,694 $7,476 Reserve Collection Increase/(Decrease) $6,911 $4,460 $4,124 $5,782 $5,293 Ending Balance - Projected June 30 ($6,890) ($2,430) $1,694 $7,476 $12,768 Recommended Operating Reserves $11,961 $13,959 $14,946 $14,976 $16,123Available Operating Reserves ($6,890) ($2,430) $1,694 $7,476 $12,768Target Capital Reserves** $0 $0 $0 $0 $0Available Capital Reserves $0 $0 $0 $0 $0*EDU = Equivalent Dwelling Unit. Assumes rates will be increased by 7.5% to the maximum allowable rate for FY 2023-24.**There are no local improvements associated with Benefit Zone 5C and therefore there is no Capital Replacement Analysis required for this Zone. Zone 5C generates revenue to pay for its share of Arterial Roadway landscaping and streetlighting improvements.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE 5C - MISC. PARCELS)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2027-28
414
($6,890)
($2,430)
$1,694
$7,476
$12,768
($10,000)
($5,000)
$0
$5,000
$10,000$15,000
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
Landscaping and Lighting Assessment District No. 83-2
Zone 5C (Misc. Parcels)
Projected Ending Fund Balance Trend
Prior to Fiscal Year 17-18, Zone 5C (Misc. Parcels) property owners approved an increase to their LLAD assessment to eliminate the Zone's annual operating and maintenance deficit and cumulative fund deficit. Zone 5C is now generating sufficient revenue to pay annual operating and maintenance expenditures and is expected to begin building reserves in Fiscal Year 2025-26. The trend graph below assumes the Zone 5C assessment rate will be increased by 7.5% from prior year to the maximum allowable rate for Fiscal Year 2023-24, and projects 5% annual assessment increases through Fiscal Year 2027-28. 415
5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 BENEFIT ZONE 6

VILLAGE PARKWAY
 5-YEAR FINANCIAL PROJECTIONS
 TREND GRAPH
 CAPITAL REPLACEMENT ANALYSIS
416
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $118 $124 $130 $137 $144 Assessments $97,708 $102,593 $107,723 $113,109 $118,765General Benefit Contribution $653 $700 $750 $1,041 $1,093 TOTAL REVENUES: $98,361 $103,293 $108,473 $114,150 $119,857 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $18,846 $19,788 $20,778 $21,817 $22,907Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $24,794 $30,470 $31,341 $29,000 $30,343Landscaping, Open Space, and Associated Repairs $3,000 $3,060 $3,121 $3,184 $3,247Tree Trimming $0 $0 $0 $12,000 $12,000Electricity and Streetlight Repairs $6,000 $6,300 $6,700 $7,100 $7,500Landscape and Facilities Water $3,000 $4,000 $5,000 $6,000 $7,000Assessment Engineering Cost $820 $861 $904 $949 $997Incidental / Direct Admin Cost $0 $0 $0 $0 $0County Fees $982 $982 $982 $982 $982 TOTAL ANNUAL EXPENDITURES: $57,442 $65,461 $68,826 $81,031 $84,976 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement $0 $0 $0 $0 $0Street Light Pole Replacement (10-year loan repayment) $17,637 $17,637 $17,637 $17,637 $17,637 TOTAL CIP EXPENDITURES: $17,637 $17,637 $17,637 $17,637 $17,637 TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $75,079 $83,098 $86,463 $98,668 $102,613 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 ($134,354) ($111,072) ($90,876) ($68,867) ($53,385)Reserve Collection Increase/(Decrease) $23,282 $20,195 $22,009 $15,482 $17,244 Ending Balance - Projected June 30 ($111,072) ($90,876) ($68,867) ($53,385) ($36,141)Recommended Operating Reserves $37,539 $41,549 $43,232 $49,334 $51,306 Available Operating Reserves ($111,072) ($90,876) ($68,867) ($53,385) ($36,141)Target Capital Reserves $55,279 $58,043 $60,945 $63,993 $67,192Available Capital Reserves $0 $0 $0 $0 $0*EDU = Equivalent Dwelling Unit. Assumes rates will be increased by 7.5% to the maximum allowable rate for FY 2023-24.

The Westwood Duet development within Zone 6 has a higher maximum allowable assessment rate ($195.67 per EDU for FY 2023-24) because their interior streetlighting is owned and maintained by the City.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 6 - VILLAGE PARKWAY)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2027-28
417
($111,072)
($90,876)
($68,867)
($53,385) ($36,141)
($120,000)
($90,000)($60,000)($30,000)
$0
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
Landscaping and Lighting Assessment District No. 83-2
Zone 6 (Village Parkway)
Projected Ending Fund Balance Trend
Prior to Fiscal Year 2021-22, Zone 6 (Village Parkway) property owners approved an increase to their LLAD assessment to finance the replacement of deteriorated wooden pole streetlights in their neighborhood, restore maintenance service levels, and gradually eliminate the Zone's cumulative fund deficit. Zone 6 is on pace to fully repay the loan for the wooden pole streetlight replacements and is expected to significantly decrease the fund deficit over the next five years. The trend graph below assumes the Zone 6 assessment rate will be increased by 7.5% from prior year to the maximum allowable rate for Fiscal Year 2023-24, and projects 5% annual assessment increases through Fiscal Year 2027-28. 418
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Miscellaneous Median Irrigation System Replacement 8,000 SF $0.10 $800 1 0 $800 $800 Decorative Pavers 1,100 SF $5 $5,500 30 0 $5,500 $5,500 Miscellaneous Median Irrigation System Replacement 10,300 SF $0.10 $1,030 1 0 $1,030 $1,030 Irrigation Controller 2 EA $15,000 $30,000 15 0 $30,000 $30,000 Street Light - Single Head 53 EA $4,000 $212,000 30 29 $499,592 $16,653 Street Light - Double Head 3 EA $5,500 $16,500 30 29 $38,883 $1,296 *Assumes 3% annual cost increase. Totals $265,830 $55,279 FY 2023-24 Total Target Capital Reserve for Zone 6: $55,279 LLAD No. 83-2 (ZONE 6 - VILLAGE PARKWAY) CAPITAL REPLACEMENT ANALYSIS I-28
419
5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 BENEFIT ZONE 7

HEIGHTS
 5-YEAR FINANCIAL PROJECTIONS
 TREND GRAPH
 CAPITAL REPLACEMENT ANALYSIS
420
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $148 $156 $163 $172 $180 Assessments $119,431 $125,403 $131,673 $138,256 $145,169General Benefit Contribution $745 $779 $818 $857 $897 TOTAL REVENUES: $120,176 $126,182 $132,490 $139,113 $146,066 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $21,305 $22,370 $23,489 $24,663 $25,896Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $32,054 $39,392 $40,519 $37,492 $39,228Landscaping, Open Space, and Associated Repairs $2,000 $2,040 $2,081 $2,122 $2,165Tree Trimming $0 $0 $0 $0 $0Electricity and Streetlight Repairs $12,000 $12,600 $13,300 $14,000 $14,700Landscape and Facilities Water $0 $0 $0 $0 $0Assessment Engineering Cost $820 $861 $904 $949 $997Incidental / Direct Admin Cost $0 $0 $0 $0 $0County Fees $1,102 $1,102 $1,102 $1,102 $1,102 TOTAL ANNUAL EXPENDITURES: $69,281 $78,365 $81,394 $80,328 $84,088 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement $0 $0 $0 $0 $0Street Light Pole Replacement (10-year loan repayment) $33,867 $33,867 $33,867 $33,867 $33,867 TOTAL CIP EXPENDITURES: $33,867 $33,867 $33,867 $33,867 $33,867 TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $103,148 $112,232 $115,261 $114,195 $117,955 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 $61,734 $78,762 $92,712 $109,941 $134,858Reserve Collection Increase/(Decrease) $17,028 $13,950 $17,229 $24,918 $28,112 Ending Balance - Projected June 30 $78,762 $92,712 $109,941 $134,858 $162,970Recommended Operating Reserves $51,574 $56,116 $57,631 $57,098 $58,977Available Operating Reserves $51,574 $56,116 $57,631 $57,098 $58,977Target Capital Reserves $40,847 $42,889 $45,034 $47,286 $49,650Available Capital Reserves $27,188 $36,596 $52,310 $77,760 $103,993*EDU = Equivalent Dwelling Unit. Assumes rates will be increased by 7.5% to the maximum allowable rate for FY 2023-24.The Bay Pointe, Bravo, and Caprice developments within Zone 7 have a lower maximum allowable assessment rate ($86.07 per EDUfor FY 2023-24) because their interior streetlighting is owned and maintained by an HOA.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 7 - HEIGHTS)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2027-28
421
$78,762
$92,712
$109,941
$134,858 $162,970
$0
$40,000$80,000
$120,000$160,000$200,000
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
Landscaping and Lighting Assessment District No. 83-2
Zone 7 (Heights)
Projected Ending Fund Balance Trend
Prior to Fiscal Year 2021-22, Zone 7 (Heights) property owners approved an increase to their LLAD assessment to finance the replacement of deteriorated wooden pole streetlights in their neighborhood. Zone 7 is on pace to fully repay the loan for the wooden pole streetlight replacements and is in strong position to build reserves for future capital improvement and replacement projects. The trend graph below assumes the Zone 7 assessment rate will be increased by 7.5% from prior year to the maximum allowable rate for Fiscal Year 2023-24, and projects 5% annual assessment increases through Fiscal Year 2027-28. 422
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Street Light - Single Head 130 EA $4,000 $520,000 30 29 $1,225,414 $40,847 *Assumes 3% annual cost increase. Totals $520,000.00 $40,847 FY 2023-24 Total Target Capital Reserve for Zone 7: $40,847 LLAD No. 83-2 (ZONE 7 - HEIGHTS) CAPITAL REPLACEMENT ANALYSIS I-32
423
5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 BENEFIT ZONE 8

TREES AND FLOWERS
 5-YEAR FINANCIAL PROJECTIONS
 TREND GRAPH
 CAPITAL REPLACEMENT ANALYSIS
424
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $125 $132 $138 $145 $152 Assessments $200,889 $210,934 $221,481 $232,555 $244,182General Benefit Contribution $2,269 $2,378 $2,490 $2,608 $2,729 TOTAL REVENUES: $203,158 $213,312 $223,971 $235,163 $246,911 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $21,335 $22,402 $23,522 $24,698 $25,933Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $52,304 $64,278 $66,117 $61,177 $64,010Landscaping, Open Space, and Associated Repairs $27,000 $27,540 $28,091 $28,653 $29,226 Tree Trimming $0 $0 $0 $0 $0Electricity and Streetlight Repairs $55,000 $57,800 $60,700 $63,800 $67,000Landscape and Facilities Water $8,000 $9,000 $10,000 $11,000 $12,000Assessment Engineering Cost $820 $861 $904 $949 $997Incidental / Direct Admin Cost $0 $0 $0 $0 $0County Fees $1,299 $1,299 $1,299 $1,299 $1,299 TOTAL ANNUAL EXPENDITURES: $165,758 $183,179 $190,632 $191,576 $200,464 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement $0 $0 $0 $0 $0Other Capital Improvement Projects $0 $0 $0 $0 $0 TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $165,758 $183,179 $190,632 $191,576 $200,464 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 $241,585 $278,986 $309,119 $342,457 $386,044Reserve Collection Increase/(Decrease) $37,401 $30,133 $33,338 $43,587 $46,448Ending Balance - Projected June 30 $278,986 $309,119 $342,457 $386,044 $432,491Recommended Operating Reserves $82,879 $91,590 $95,316 $95,788 $100,232Available Operating Reserves $82,879 $91,590 $95,316 $95,788 $100,232Target Capital Reserves $209,674 $220,158 $231,166 $242,724 $254,860Available Capital Reserves $196,107 $217,529 $247,141 $290,256 $332,259*EDU = Equivalent Dwelling Unit. Assumes rates will be increased by CPI (5.3%) for FY 2023-24.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 8 - TREES AND FLOWERS)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2027-28
425
$278,986
$309,119
$342,457 $386,044
$432,491
$0
$125,000$250,000$375,000$500,000
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
Landscaping and Lighting Assessment District No. 83-2
Zone 8 (Trees and Flowers)
Projected Ending Fund Balance Trend
Zone 8 (Trees and Flowers) is generating sufficient assessment revenue to pay for annual operating and maintenance expenditures and is in strong position to continue building reserves for future capital improvement and replacement projects.

The trend graph below assumes the Zone 8 assessment rate will be increased by the applicable annual change in the Consumer Price Index (5.3%) from prior year, and projects 5% annual assessment increases through Fiscal Year 2027-28. 426
Beechnut Park - LLAD 83-2 (Zone 8)
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Benches - Wood 2 EA $1,000 $2,000 10 0 $2,000.00 $2,000.00 Miscellaneous Irrigation System Replacement 10,000 SF $0.05 $500 1 0 $500.00 $500.00 Irrigation Controller 1 EA $15,000 $15,000 15 0 $15,000.00 $15,000.00 Park Lighting - Wood Pole with glass head 1 EA $1,600 $1,600 20 0 $1,600.00 $1,600.00Asphalt Resurface 7,000 SF $5 $35,000 30 0 $35,000.00 $35,000.00Swing Set - with Sand Surface 1 EA $6,500 $6,500 20 0 $6,500.00 $6,500.00Trash Cans - Concrete with Plastic Tops 1 EA $750 $750 30 0 $750.00 $750.00Pathway - Concrete Repair 1,100 SF $10 $1,100 50 10 $1,478.31 $1,182.65 *Assumed 3% annual cost increase. Totals $62,450.00 $62,532.65 Landscaping & Lighting - LLAD 83-2 (Zone 8)
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Irrigation Controller 6 EA $15,000 $90,000 15 0 $90,000 $90,000 Miscellaneous Cul-de-Sac Irrigation System Replacement 31,200 SF $0.10 $3,120 1 0 $3,120 $3,120 Cul-de-Sac - Concrete Repair 31,200 SF $10 $31,200 50 10 $41,930 $33,544 Miscellaneous Median Irrigation System Replacement 3,350 SF $0.10 $335 1 0 $335 $335 Medians - Concrete Repair 3,350 SF $10 $3,350 50 10 $4,502 $3,602Miscellaneous Median Irrigation System Replacement 4,450 SF $0.10 $445 1 0 $445 $445 Medians - Concrete Repair 4,450 SF $10 $4,450 50 10 $5,980 $4,784Street Light - Single Head 36 EA $4,000 $144,000 30 29 $339,345 $11,312 *Assumes 3% annual cost increase. Totals $276,900 $147,142 FY 2023-24 Total Target Capital Reserve for Zone 8: $209,674 LLAD No. 83-2 (ZONE 8 - TREES AND FLOWERS) CAPITAL REPLACEMENT ANALYSIS I-36
427
5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 BENEFIT ZONE 9

BIRDS AND COUNTRY RUN
 5-YEAR FINANCIAL PROJECTIONS
 TREND GRAPH
 CAPITAL REPLACEMENT ANALYSIS
428
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $111 $116 $122 $128 $135Assessments $94,006 $98,706 $103,641 $108,823 $114,264General Benefit Contribution $1,153 $1,226 $1,302 $1,382 $1,464 TOTAL REVENUES: $95,158 $99,932 $104,944 $110,205 $115,729 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $18,888 $19,832 $20,824 $21,865 $22,958Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $27,695 $34,035 $35,009 $32,393 $33,893Landscaping, Open Space, and Associated Repairs $4,000 $4,080 $4,162 $4,245 $4,330Tree Trimming $0 $0 $0 $0 $0Electricity and Streetlight Repairs $31,000 $32,600 $34,300 $36,100 $38,000Landscape and Facilities Water $2,000 $3,000 $4,000 $5,000 $6,000 Assessment Engineering Cost $820 $861 $904 $949 $997Incidental / Direct Admin Cost $0 $0 $0 $0 $0County Fees $925 $925 $925 $925 $925 TOTAL ANNUAL EXPENDITURES: $85,328 $95,333 $100,123 $101,477 $107,103 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement $0 $0 $0 $0 $0Other Capital Improvement Projects $0 $0 $0 $0 $0 TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $85,328 $95,333 $100,123 $101,477 $107,103 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 $9,778 $19,608 $24,207 $29,028 $37,755Reserve Collection Increase/(Decrease) $9,831 $4,599 $4,820 $8,728 $8,626Ending Balance - Projected June 30 $19,608 $24,207 $29,028 $37,755 $46,381Recommended Operating Reserves $42,664 $47,667 $50,062 $50,739 $53,551Available Operating Reserves $19,608 $24,207 $29,028 $37,755 $46,381Target Capital Reserves $53,913 $56,609 $59,440 $62,412 $65,532Available Capital Reserves $0 $0 $0 $0 $0*EDU = Equivalent Dwelling Unit. Assumes rates will be increased by 7.5% to the maximum allowable rate for FY 2023-24.

LANDSCAPING AND LIGHTING DISTRICT NO. 1983-2
(ZONE NO. 9 - BIRDS AND COUNTRY RUN)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2027-28
429
$19,608
$24,207
$29,028
$37,755 $46,381
$0
$15,000$30,000$45,000$60,000
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
Landscaping and Lighting Assessment District No. 83-2
Zone 9 (Birds and Country Run)
Projected Ending Fund Balance Trend
Prior to Fiscal Year 18-19, Zone 9 (Birds and Country Run) property owners approved an increase to their LLAD assessment to eliminate the Zone's annual operating and maintenance deficit and cumulative fund deficit. Zone 9 is now generating sufficient assessment revenue to pay annual operating and maintenance expenditures and is expected to continue building reserves. The trend graph below assumes the Zone 9 assessment rate will be increased by 7.5% from prior year to the maximum allowable rate for Fiscal Year 2023-24, and projects 5% annual assessment increases through Fiscal Year 2027-28. 430
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Miscellaneous Median Irrigation System Replacement 1,500 SF $0.10 $150 1 0 $150 $150 Medians - Concrete Repair 500 SF $10 $500 50 10 $672 $538 Miscellaneous Cul-de-Sac Irrigation System Replacement 7,000 SF $0.10 $700 1 0 $700 $700Irrigation Controller 3 EA $15,000 $45,000 15 0 $45,000 $45,000 Cul-de-Sac - Concrete Repair 7,000 SF $10 $7,000 50 10 $9,407 $7,526*Assumes 3% annual cost increase. Totals $53,350 $53,913 FY 2023-24 Total Target Capital Reserve for Zone 9: $53,913 LLAD No. 83-2 (ZONE 9 - BIRDS AND COUNTRY RUN) CAPITAL REPLACEMENT ANALYSIS I-40
431
5-YEAR FINANCIAL PROJECTIONS ANALYSIS AND FINDINGS REPORT LLAD NO. 83-2 BENEFIT ZONE 10

CITYWIDE PARKS
 5-YEAR FINANCIAL PROJECTIONS
 TREND GRAPH
432
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $150 $157 $165 $173 $182 Assessments $1,231,584 $1,293,164 $1,357,822 $1,425,713 $1,496,998Transfers from LLAD Zones 1 and 7 (Repayment for Street Lights) $54,126 $54,126 $54,126 $54,126 $54,126General Benefit Contribution $23,508 $25,801 $26,626 $28,394 $27,809 TOTAL REVENUES: $1,309,219 $1,373,090 $1,438,573 $1,508,233 $1,578,933 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $387,997 $407,397 $427,767 $449,155 $471,613Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $0 $0 $0 $0 $0Landscaping, Open Space, and Associated Repairs $360,000 $367,200 $374,544 $382,035 $389,676Tree Trimming $0 $60,000 $50,000 $85,000 $0Electricity and Streetlight Repairs $25,000 $26,300 $27,700 $29,100 $30,600Landscape and Facilities Water $170,000 $185,000 $195,000 $205,000 $216,000Assessment Engineering Cost $2,460 $2,583 $2,712 $2,848 $2,990Incidental / Direct Admin Cost $223,400 $235,000 $247,000 $260,000 $273,000County Fees $6,565 $6,565 $6,565 $6,565 $6,565 TOTAL ANNUAL EXPENDITURES: $1,175,422 $1,290,045 $1,331,288 $1,419,703 $1,390,444 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement $100,000 $50,000 $50,000 $50,000 $50,000Other Capital Improvement Projects $60,000 $50,000 $50,000 $50,000 $50,000 TOTAL CIP EXPENDITURES: $160,000 $100,000 $100,000 $100,000 $100,000 TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $1,335,422 $1,390,045 $1,431,288 $1,519,703 $1,490,444 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 $167,754 $141,551 $124,596 $131,882 $120,412Reserve Collection Increase/(Decrease) ($26,203) ($16,954) $7,286 ($11,470) $88,490 Ending Balance - Projected June 30 $141,551 $124,596 $131,882 $120,412 $208,902Recommended Operating Reserves $667,711 $695,022 $715,644 $759,851 $745,222Available Operating Reserves $141,551 $124,596 $131,882 $120,412 $208,902Target Capital Reserves** $0 $0 $0 $0 $0Available Capital Reserves $0 $0 $0 $0 $0 *EDU = Equivalent Dwelling Unit. Assumes rates will be increased by 7.5% to the maximum allowable rate for FY 2023-24.**The replacement of existing park improvements associated with LLAD 83-2 Benefit Zone 10 (Citywide Parks) and projects in the ParksMaster Plan are intended to be funded with grants and other funding sources that become available, to the extent possible. Therefore, thereis no Zone 10 Capital Replacement Analysis included in this report.

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 83-2
(ZONE NO. 10 - CITYWIDE PARKS)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2027-28
433
$141,551
$124,596 $131,882 $120,412
$208,902
$0
$60,000
$120,000$180,000$240,000
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
Landscaping and Lighting Assessment District No. 83-2
Zone 10 (Citywide Parks)
Projected Ending Fund Balance Trend
Zone 10 (Citywide Parks) is generating sufficient assessment revenue to pay for annual operating and maintenance expenditures. At the current assessment rates, major capital improvement projects will need to be funded with grants or other alternative funding sources. The trend graph below assumes the Zone 10 assessment rate will be increased by 7.5% from prior year to the maximum allowable rate for Fiscal Year 2023-24, and projects 5% annual assessment increases through Fiscal Year 2027-28.

I-43
434

SECTION II
LLAD NO. 2002-1

VICTORIA BY THE BAY
5-YEAR FINANCIAL PROJECTIONS, TREND GRAPH, AND

CAPITAL REPLACEMENT ANALYSIS
435
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $603 $633 $665 $698 $733Assessments $508,538 $533,965 $560,663 $588,696 $618,131General Benefit Contribution $12,048 $12,720 $13,296 $13,840 $14,432 TOTAL REVENUES: $520,585 $546,684 $573,959 $602,536 $632,563

ESTIMATED ANNUAL EXPENDITURES
Personnel $100,632 $105,664 $110,947 $116,494 $122,319
Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $27,554 $33,862 $34,831 $32,229 $33,721Landscaping, Open Space, and Associated Repairs $168,000 $171,360 $174,787 $178,283 $181,849Tree Trimming $27,000 $27,000 $30,000 $30,000 $30,000Electricity and Streetlight Repairs $16,000 $16,800 $17,700 $18,600 $19,600Landscape and Facilities Water $250,000 $272,000 $286,000 $301,000 $317,000Supplies and Vehicle Repairs $0 $0 $0 $0 $0 Assessment Engineering Cost $4,100 $4,305 $4,520 $4,746 $4,984Incidental / Direct Admin Cost $35,800 $38,000 $40,000 $42,000 $45,000County Fees $854 $854 $854 $854 $854 TOTAL ANNUAL EXPENDITURES: $629,940 $669,845 $699,639 $724,206 $755,326

CAPITAL IMPROVEMENT PROJECTS (CIP)
Tree Replacement $0 $0 $0 $0 $0Other Capital Improvement Projects $0 $0 $0 $0 $0 TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0

TOTAL EXPENDITURES
TOTAL ANNUAL AND CIP EXPENDITURES: $629,940 $669,845 $699,639 $724,206 $755,326

FUND BALANCE INFORMATION
Beginning Balance - July 1 ($358,132) ($467,487) ($590,647) ($716,328) ($837,998) Reserve Collection Increase/(Decrease) ($109,355) ($123,161) ($125,680) ($121,671) ($122,763)Ending Balance - Projected June 30 ($467,487) ($590,647) ($716,328) ($837,998) ($960,762)Recommended Operating Reserves $314,970 $334,922 $349,820 $362,103 $377,663Available Operating Reserves ($467,487) ($590,647) ($716,328) ($837,998) ($960,762)Target Capital Reserves (Based on attached Capital Replacement Analysis) $321,143 $337,200 $354,060 $371,763 $390,351Available Capital Reserves $0 $0 $0 $0 $0*EDU = Equivalent Dwelling Unit. Assumes rates will be increased by 7.5% to the maximum allowable rate for FY 2023-24.

LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 2002-1 (VICTORIA BY THE BAY)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2027-28
436
($467,487)
($590,647)
($716,328)
($837,998) ($960,762)
($1,000,000)
($800,000)($600,000)($400,000)($200,000)
$0
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
LLAD No. 2002-1 (Victoria by the Bay)
Projected Ending Fund Balance Trend
Extreme drought conditions over the last several years have required a significant increase in irrigation watering to keeplandscaping alive and healthy. Additionally, East Bay Municipal Utility District water rates have increased 46% over the last fiveyears. As a result, water costs have increased dramatically for LLAD maintained areas. Additionally, trees in the new urbanist developments north of I-80 have matured, both in height and width, such that they now need to be pruned regularly by a contract tree trimming company. This is new, additional work is beyond the scope of the current landscaping contract and is an additional cost to the LLADs. The Victoria by the Bay LLAD has been most impacted by these increases in cost and is experiencing a rapidly increasing operating and fund deficit, which is expected to continue at the current levels of service. The trend graph below assumes the LLAD 2002-1 assessment rate will be increased by 7.5% from prior year to the maximum allowable rate for Fiscal Year 2023-24, and projects 5% annual assessment increases through Fiscal Year 2027-28. 437
Inventory Item Quantity
Unit of
Measure
Current Unit Cost
(In 2023 dollars)
Total Cost
(In 2023 dollars)
Useful Life
(Yrs)
Remaining Life
(yrs)
Recommended Capital Reserve*
at the end of Useful Life
Target Capital
Reserve for FY 2023-24
Miscellaneous Roadside Irrigation System Replacement 150,000 SF $0.05 $7,500 1 0 $7,500 $7,500 Irrigation Controller 16 EA $15,000 $240,000 15 0 $240,000 $240,000 Street Light - Single Head 233 EA $4,000 $932,000 30 29 $2,196,319 $73,211 Street Light - Double Head 1 EA $5,500 $5,500 30 29 $12,961 $432 *Assumes 3% annual cost increase. Totals $1,185,000.00 $321,143 FY 2023-24 Total Target Capital Reserve for LLAD 2002-1: $321,143 LLAD No. 2002-1 (VICTORIA BY THE BAY) CAPITAL REPLACEMENT ANALYSIS II-4
438

SECTION III
LLAD NO. 2002-2

PROMENADE
5-YEAR FINANCIAL PROJECTIONS, TREND GRAPH, AND

CAPITAL REPLACEMENT ANALYSIS
439
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $759 $797 $837 $879 $922 Assessments $174,570 $183,298 $192,463 $202,086 $212,191General Benefit Contribution $4,414 $4,638 $4,887 $5,079 $5,274 TOTAL REVENUES: $178,984 $187,936 $197,350 $207,165 $217,465 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $47,829 $50,220 $52,731 $55,368 $58,136Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $7,513 $9,233 $9,497 $8,787 $9,194Landscaping, Open Space, and Associated Repairs $54,000 $55,080 $56,182 $57,305 $58,451 Tree Trimming $27,000 $27,000 $30,000 $30,000 $30,000Electricity and Streetlight Repairs $12,000 $12,600 $13,300 $14,000 $14,700Landscape and Facilities Water $62,000 $68,000 $72,000 $76,000 $80,000Supplies and Vehicle Repairs $0 $0 $0 $0 $0Assessment Engineering Cost $2,460 $2,583 $2,712 $2,848 $2,990 Incidental / Direct Admin Cost $15,000 $16,000 $17,000 $18,000 $19,000County Fees $421 $421 $421 $421 $421 TOTAL ANNUAL EXPENDITURES: $228,223 $241,137 $253,843 $262,729 $272,893 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement $0 $0 $0 $0 $0Other Capital Improvement Projects $0 $0 $0 $0 $0 TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $228,223 $241,137 $253,843 $262,729 $272,893 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 $139,453 $90,214 $37,014 ($19,479) ($75,043)Reserve Collection Increase/(Decrease) ($49,239) ($53,201) ($56,493) ($55,564) ($55,428) Ending Balance - Projected June 30 $90,214 $37,014 ($19,479) ($75,043) ($130,472)Recommended Operating Reserves $114,111 $120,569 $126,921 $131,365 $136,447 Available Operating Reserves $90,214 $37,014 ($19,479) ($75,043) ($130,472)Target Capital Reserves $130,423 $136,944 $143,791 $150,981 $158,530Available Capital Reserves $0 $0 $0 $0 $0*EDU = Equivalent Dwelling Unit. Assumes rates will be increased by 7.5% to the maximum allowable rate for FY 2023-24.

LANDSCAPING AND LIGHTING DISTRICT NO. 2002-2
(PROMENADE)
5-YEAR PROJECTION THROUGH FISCAL YEAR 2027-28
440
$90,214
$37,014
($19,479)
($75,043)
($130,472) ($150,000)
($100,000)
($50,000)
$0
$50,000
$100,000
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
LLAD No. 2002-2 (Promenade)
Projected Ending Fund Balance Trend
Extreme drought conditions over the last several years have required a significant increase in irrigation watering to keep landscaping alive and healthy. Additionally, East Bay Municipal Utility District water rates have increased 46% over the last five years. As a result, water costs have increased dramatically for LLAD maintained areas. Additionally, trees in the new urbanist developments north of I-80 have matured, both in height and width, such that they now need to be pruned regularly by a contract tree trimming company. This is new, additional work is beyond the scope of the current landscaping contract and is an additional cost to the LLADs. The Promenade LLAD has been significantly impacted by these increases in cost and is experiencing an annual operating deficit which is expected to continue at the current levels of service. The trend graph below assumes the LLAD 2002-2 assessment rate will be increased by 7.5% from prior year to the maximum allowable rate for Fiscal Year 2023-24, and projects 5% annual assessment increases through Fiscal Year 2027-28. 441
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Miscellaneous Roadside Irrigation System Replacement 50,000 SF $0.05 $2,500 1 0 $2,500 $2,500 Miscellaneous Median Irrigation System Replacement 4,500 SF $0.10 $450 1 0 $450 $450 Irrigation Controller 5 EA $15,000 $75,000 15 0 $75,000 $75,000 Street Light - Single Head 167 EA $4,000 $668,000 30 29 $1,574,186 $52,473*Assumes 3% annual cost increase. Totals $745,950.00 $130,423 FY 2023-24 Total Target Capital Reserve for LLAD 2002-2: $130,423 LLAD No. 2002-2 (PROMENADE) CAPITAL REPLACEMENT ANALYSIS 442

SECTION IV
LLAD NO. 2004-1

BAYWOOD
5-YEAR FINANCIAL PROJECTIONS, TREND GRAPH, AND

CAPITAL REPLACEMENT ANALYSIS
443
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $2,048 $2,151 $2,258 $2,371 $2,490Assessments $166,246 $174,558 $183,286 $192,451 $202,073General Benefit Contribution $3,030 $3,182 $3,355 $3,490 $3,628 TOTAL REVENUES: $169,277 $177,741 $186,641 $195,941 $205,702 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $44,951 $47,199 $49,558 $52,036 $54,638Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $2,651 $3,257 $3,351 $3,100 $3,244Landscaping, Open Space, and Associated Repairs $41,000 $41,820 $42,656 $43,510 $44,380Tree Trimming $12,000 $12,000 $14,000 $14,000 $14,000Electricity and Streetlight Repairs $4,000 $4,200 $4,500 $4,800 $5,100Landscape and Facilities Water $32,000 $35,000 $37,000 $39,000 $41,000Supplies and Vehicle Repairs $0 $0 $0 $0 $0Assessment Engineering Cost $2,460 $2,583 $2,712 $2,848 $2,990Incidental / Direct Admin Cost $14,800 $16,000 $17,000 $18,000 $19,000County Fees $311 $311 $311 $311 $311 TOTAL ANNUAL EXPENDITURES: $154,173 $162,370 $171,089 $177,605 $184,663 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement (10-year loan repayment) $14,700 $14,700 $14,700 $14,700 $14,700Other Capital Improvement Projects $0 $0 $0 $0 $0 TOTAL CIP EXPENDITURES: $14,700 $14,700 $14,700 $14,700 $14,700 TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $168,873 $177,070 $185,789 $192,305 $199,363 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 $87,505 $87,909 $88,579 $89,432 $93,068Reserve Collection Increase/(Decrease) $404 $671 $852 $3,636 $6,339 Ending Balance - Projected June 30 $87,909 $88,579 $89,432 $93,068 $99,406Recommended Operating Reserves $84,436 $88,535 $92,894 $96,152 $99,681Available Operating Reserves $84,436 $88,535 $89,432 $93,068 $99,406Target Capital Reserves $280,191 $294,201 $308,911 $324,356 $340,574Available Capital Reserves $3,472 $44 $0 $0 $0*EDU = Equivalent Dwelling Unit. Assumes rates will be increased by 7.5% over the FY 2022-23 Applied rate for FY 2023-24.

The FY 2023-24 Maximum Rate = $2,806.57
LANDSCAPING AND LIGHTING DISTRICT NO. 2004-1
(BAYWOOD)
5-YEAR PROJECTION WITH PROPOSED ASSESSMENT INCREASE
444
$87,909 $88,579 $89,432
$93,068
$99,406
$80,000$85,000$90,000$95,000
$100,000
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
LLAD No. 2004-1 (Baywood)
Projected Ending Fund Balance Trend
Historically, the Baywood LLAD properties have been assessed well below their maximum assessment rates. The assessment rates for this LLAD will need to be increased by 7.5% for Fiscal Year 2023-24 to generate sufficient revenue to keep up with inflationary cost increases, repay a loan for the replacement of trees that were a safety hazard for the neighborhood, and to perform regular tree pruning. The trend graph below assumes the LLAD 2004-1 Fiscal Year 2023-24 assessment rate will be increased by 7.5% over the Fiscal Year 2022-23 Applied Rate, and projects 5% annual assessment increases through Fiscal Year 2027-28. These proposed assessment rates are well below the maximum allowable assessment rates for LLAD 2004-1. 445
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Street Light - Single Head 37 EA $4,000 $152,000 30 29 $358,198 $11,940 Fencing - Wood 1,850 LF $15 $27,750 30 11 $38,412 $24,328 Decorative Pavers 45,000 SF $5 $225,000 30 11 $311,453 $197,253 Irrigation Controller 3 EA $15,000 $45,000 15 0 $45,000 $45,000 Miscellaneous Median Irrigation System Replacement 3,200 SF $0.10 $320 1 0 $320 $320Miscellaneous Roadside Irrigation System Replacement 27,000 SF $0.05 $1,350 1 0 $1,350 $1,350 *Assumes 3% annual cost increase. Totals $451,420.00 $280,191 FY 2023-24 Total Target Capital Reserve for LLAD 2004-1: $280,191 LLAD No. 2004-1 (BAYWOOD) CAPITAL REPLACEMENT ANALYSIS
446

SECTION V
LLAD NO. 2005-1

BAYSIDE
5-YEAR FINANCIAL PROJECTIONS, TREND GRAPH, AND

CAPITAL REPLACEMENT ANALYSIS
447
REVENUES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Assessment Rates per EDU (Single-Family Home Equivalent)* $277 $290 $305 $320 $336 Assessments $159,093 $167,048 $175,401 $184,171 $193,379General Benefit Contribution $2,611 $2,739 $2,873 $3,010 $3,149 TOTAL REVENUES: $161,705 $169,787 $178,274 $187,180 $196,528 ESTIMATED ANNUAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Personnel $35,375 $37,144 $39,001 $40,951 $42,999Transfer for Arterials/Major Roads Landscape and Lighting Maintenance $18,789 $23,090 $23,751 $21,977 $22,994Landscaping, Open Space, and Associated Repairs $50,000 $51,000 $52,020 $53,060 $54,122 Tree Trimming $0 $0 $0 $0 $0Electricity and Streetlight Repairs $12,000 $12,600 $13,300 $14,000 $14,700Landscape and Facilities Water $20,000 $22,000 $24,000 $26,000 $28,000Supplies and Vehicle Repairs $0 $0 $0 $0 $0Assessment Engineering Cost $2,460 $2,583 $2,712 $2,848 $2,990 Incidental / Direct Admin Cost $10,100 $11,000 $12,000 $13,000 $14,000County Fees $618 $618 $618 $618 $618 TOTAL ANNUAL EXPENDITURES: $149,342 $160,035 $167,402 $172,454 $180,423 CAPITAL IMPROVEMENT PROJECTS (CIP) FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Tree Replacement $0 $0 $0 $0 $0Other Capital Improvement Projects $0 $0 $0 $0 $0 TOTAL CIP EXPENDITURES: $0 $0 $0 $0 $0
TOTAL EXPENDITURES FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 TOTAL ANNUAL AND CIP EXPENDITURES: $149,342 $160,035 $167,402 $172,454 $180,423 FUND BALANCE INFORMATION FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 Beginning Balance - July 1 $146,456 $158,818 $168,570 $179,442 $194,168Reserve Collection Increase/(Decrease) $12,362 $9,752 $10,871 $14,726 $16,105 Ending Balance - Projected June 30 $158,818 $168,570 $179,442 $194,168 $210,273Recommended Operating Reserves $74,671 $80,018 $83,701 $86,227 $90,211Available Operating Reserves $74,671 $80,018 $83,701 $86,227 $90,211Target Capital Reserves $200,452 $210,475 $220,998 $232,048 $243,651Available Capital Reserves $84,147 $88,553 $95,740 $107,941 $120,062*EDU = Equivalent Dwelling Unit. Assumes rates will be increased by 7.5% to the maximum allowable rate for FY 2023-24.

LANDSCAPING AND LIGHTING DISTRICT NO. 2005-1
(BAYSIDE)
5-YEAR PROJECTION WITH PROPOSED ASSESSMENT INCREASE
448
$158,818 $168,570 $179,442
$194,168
$210,273
$0
$60,000
$120,000$180,000$240,000
FY 2023-24
(June 30, 2024)
FY 2024-25
(June 30, 2025)
FY 2025-26
(June 30, 2026)
FY 2026-27
(June 30, 2027)
FY 2027-28
(June 30, 2028)
LLAD No. 2005-1 (Bayside)
Projected Ending Fund Balance Trend
LLAD No. 2005-1 (Bayside) is generating sufficient assessment revenue to pay for annual operating and maintenance expenditures and is in strong position to continue building reserves for future capital improvement and replacement projects. Trees and planter strips for LLAD No. 2005-1 (Bayside) are maintained by an HOA. The trend graph below assumes the LLAD 2005-1 assessment rate will be increased by 7.5% from prior year to the maximum allowable rate for Fiscal Year 2023-24, and projects 5% annual assessment increases through Fiscal Year 2027-28. 449
Bayside Park - LLAD 2005-1 (Bayside)
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Calculation Year Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Recommended Capital Reserve at the end of Useful Life Target Capital Reserve for FY 2023-24 Benches - Steel/Dumor Inc. 10 EA $1,000 $10,000.00 30 2006 13 $14,685 $14,685 $8,321.69 Drinking Fountain - Steel/Wall Attached 1 EA $1,500 $1,500.00 20 2006 3 $1,639 $1,639 $1,393.23 Gazebo - Steel 1 EA $7,500 $7,500.00 40 2006 23 $14,802 $14,802 $6,290.81 Miscellaneous Irrigation System Replacement 21,600 SF $0.05 $1,080.00 1 2006 0 $1,080 $1,080 $1,080.00 Irrigation Controller 2 EA $15,000 $30,000.00 15 2006 0 $30,000 $30,000 $30,000.00 Park Lighting - Decorative 8 EA $2,000 $16,000.00 25 2006 8 $20,268 $20,268 $13,782.46 Playground (Ages 5-12) - Miracle 1 EA $40,000 $40,000.00 20 2006 3 $43,709 $43,709 $37,152.72 Bathroom - Refurbish 2 EA $10,000 $20,000.00 20 2006 3 $21,855 $21,855 $18,576.36Tot-Lot - Miracle 1 EA $20,000 $20,000.00 20 2006 3 $21,855 $21,855 $18,576.36Pathway - Concrete Repair* 3,900 SF $10 $3,900.00 50 2006 33 $10,344 $10,344 $3,517.00 Trash Cans - Plastic Coated Steel 3 EA $750 $2,250.00 25 2006 8 $2,850 $2,850 $1,938.16 Toy Structures - Steel/Plastic 2 EA $1,500 $3,000.00 15 2006 0 $3,000 $3,000 $3,000.00 Columns - Brick Masonry 6 EA $500 $3,000.00 50 2006 33 $7,957 $7,957 $2,705.38 Fencing - Steel 215 LF $25 $5,375.00 30 2006 13 $7,893 $7,893 $4,472.91 Totals $201,937.52 $150,807.07
Landscaping & Lighting - LLAD 2005-1 (Bayside)
Inventory Item Quantity Unit of Measure Current Unit Cost (In 2023 dollars) Total Cost (In 2023 dollars) Useful Life (Yrs) Calculation Year Remaining Life (yrs) Recommended Capital Reserve* at the end of Useful Life Recommended Capital Reserve* at the end of Useful Life Target Capital Reserve for FY 2023-24 Street Light - Single Head 158 EA $4,000.00 $632,000.00 30 2022 29 $1,489,349.40 $1,489,349.40 $49,644.98 *Assumes 3% annual cost increase. Totals $1,489,349.40 $49,644.98 FY 2023-24 Total Target Capital Reserve for LLAD 2005-1: $200,452.05 LLAD No. 2005-1 (BAYSIDE) CAPITAL REPLACEMENT ANALYSIS
450
451
Discussion and/or Action Item
22-550

STAFF REPORT TO THE CITY COUNCIL
DATE: May 23, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Tim Rood Community Development Director
SUBJECT: 2022 Annual General Plan Progress Report
RECOMMENDED ACTION:

Direct staff to submit the 2022 General Plan Annual Progress Report to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (OPR).

BACKGROUND:

California state law requires each city and county to adopt a general plan “for the physical development of the county or city, and any land outside its boundaries which in the planning agency’s judgment bears relation to its planning”. 1 The general plan expresses
the community’s development goals and embodies public policy relative to the distribution of future public and private land uses. The California Supreme Court has described general plans as the “charter to which [zoning] ordinance[s] must conform.” Still, the general plan extends far beyond zoning and land use.2 A general plan is more than the legal underpinning for land use decisions; it is a vision of how a community will grow, reflecting community priorities and values while shaping the future.

Per Government Code Section 65400(a)(2)(A), beginning January 1, 2019, the City is required to submit an annual report to the State on the City’s progress in implementing the General Plan. The State-mandated General Plan (GP) Annual Progress Report (APR) provides information regarding the City’s progress in meeting the community’s goals through implementation of the GP. The General Plan APR allows OPR to identify statewide trends and how local planning and development activities relate to statewide 1 Gov. Code § 65300
2 Lesher Communications, Inc. v. City of Walnut Creek (1990) 52 Cal.3d 531, 540 452
22-550
planning goals and policies. The APR may inform future updates to OPR’s General Plan Guidelines and help track local jurisdictions’ progress in updating General Plans.

In the past several years since the requirement went into effect, staffing and workload limitations have prevented Community Development staff from preparing and submitting Annual Progress Reports on the full General Plan, although the required Housing Element Annual Progress Reports have been consistently submitted.

ANALYSIS:

Community Development staff have prepared the City’s first General Plan Annual Progress report for 2022. The report was presented to the Planning Commission for information on May 15, 2023.

Unlike the Housing Element APR, the State does not prescribe a specific report format, and cities are advised to highlight measures associated with the implementation of the GP, such as GP and Zoning Ordinance amendments, policy actions by the City Council, Citywide initiatives, and City-initiated projects.

As detailed in the attached report, in 2022 the City initiated or continued a number of activities implementing the General Plan, which include:
 Franklin Canyon RV Resort entitlement approvals
 Owl Ranch entitlement approvals
 Hercules Hub planning, design and grant applications
 All-Electric Ordinance adoption
 ADU and Senate Bill 9 Ordinance amendments
 Parks and Recreation Facilities Master Plan preparation and public outreach FISCAL IMPACT:

There is no direct financial impact of filing the GP annual progress report.

ATTACHMENTS:

Attach 1 - 2022 Annual General Plan Progress Report
453
General Plan Annual Progress Report 2022
City of Hercules
454
Table of Contents
General Plan Annual Progress Report 2022 .................................................................................................................1 Introduction...................................................................................................................................................................3 General Plan Elements...................................................................................................................................................3 Amendments to the General Plan .................................................................................................................................4 Specific Plans and Planned Developments....................................................................................................................5 New Specific Properties Specific Plan...........................................................................................................5 Waterfront District Master Plan...................................................................................................................5 Central Hercules Plan ...................................................................................................................................6 Major Projects ...............................................................................................................................................................7 Bayfront (Waterfront) ..................................................................................................................................7 Hill Town.......................................................................................................................................................8 Sycamore Crossing........................................................................................................................................8 Franklin Canyon............................................................................................................................................9 Owl Ranch...................................................................................................................................................10 The Hercules Hub .......................................................................................................................................11 General Plan Overview ................................................................................................................................................11 Land Use Element...........................................................................................................................................11 FEMA Floodplain Review............................................................................................................................12 Circulation Element ........................................................................................................................................12 Housing Element.............................................................................................................................................13 Housing Unit Production ............................................................................................................................13 Accessory Dwelling Units............................................................................................................................14 Senate Bill 9 ................................................................................................................................................14 Open Space & Conservation Element.............................................................................................................14 Parks and Recreation Facilities Master Plan...............................................................................................15 Conservation Projects.................................................................................................................................15 Safety Element................................................................................................................................................15 Local Hazard Mitigation Plan......................................................................................................................16 All-Electric Ordinance ................................................................................................................................17 Noise Element.................................................................................................................................................17 Hazardous Waste Management ....................................................................................................................18 Economic Development..................................................................................................................................18 Growth Management.....................................................................................................................................19 General Plan Compliance with OPR’s General Plan Guidelines and State Legislation.................................................20 Comprehensive General Plan Update .........................................................................................................................21 455
Introduction
California state law requires each city and county to adopt a general plan “for the physical development of the county or city, and any land outside its boundaries which in the planning agency’s judgment bears relation to its planning” (Gov. Code § 65300). The general plan expresses the community’s development goals and embodies public policy relative to the distribution of future public and private land uses. The California Supreme Court has described general plans as the “charter to which [zoning] ordinance[s] must conform.” Still, the general plan extends far beyond zoning and land use (Lesher Communications, Inc. v. City of Walnut Creek (1990) 52 Cal.3d 531, 540). A general plan is more than the legal underpinning for land use decisions; it is a vision of how a community will grow, reflecting community priorities and values while shaping the future.

Government Code Sections 65400 and 65700 mandate that all cities and counties submit an annual report on the status of the General Plan and progress in implementing its Goals, Objectives, and Policies. The General Plan Annual Progress Report (APR) is submitted along with the Housing Element Annual Progress Report (APR) to Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (OPR) by April 1st of each year. The General Plan APR allows OPR to identify statewide trends and how local planning and development activities relating to statewide planning goals and policies. The APR may inform future updates to OPRs General Plan Guidelines and help track local jurisdictions’ progress in updating General Plans.

Effective January 1, 2019, the City of Hercules must submit both the Housing Element APR and a General Plan APR. This General Plan APR is the first report produced by the City of Hercules.

The City of Hercules has submitted an annual report on the Housing Element of the General Plan each year since 2014. The Housing Element APR was compiled separately and includes more detailed reporting on housing production and Housing Element progress. Housing Element APRs from 2014 through 2021 are on the City of Hercules Planning website.

General Plan Elements
The State of California requires General Plans to include a minimum of seven mandated “Elements”: Land Use, Circulation, Housing, Conservation, Open Space, Noise, and Safety. Cities and counties in the San Joaquin Air Pollution Control District must also address air quality in their general plans. Cities and counties that have identified disadvantaged communities must also address environmental justice in their general plans. The City of Hercules is not located in the San Joaquin Air Pollution Control District, nor does it have an identified disadvantaged community.

The City of Hercules last adopted a comprehensive General Plan update in 1998. Since then, elements of the General Plan have been updated on a rotating schedule and per state law. By statute, the general plan is required to be updated “periodically.” While there is no requirement for how often to update the general plan, the planning period has traditionally been 15-20 years. The Housing Element is the only element required to be updated regularly. There have been five previous housing element update “cycles” to date. Hercules is currently preparing its sixth cycle housing element update. 456
Table 1 - General Plan Elements
Element Adopted Amended Related Plans
Land Use* 1998 2008  Waterfront District Master Plan
 New Pacific Properties Specific Plan
 Regulating Code for the Central
Hercules Plan
Circulation* 2018
Housing* 2015  Housing Element 2023 - 2031
Open Space* & Conservation* 1998 2015 (AB 162)  Refugio Creek Watershed Vision Plan Safety* 2021  Local Hazard Mitigation Plan
Noise* 1998
Hazardous Waste
Management Plan
1990 2008
Economic Development 1991
Growth Management 2013  Contra Costa County Measure J
*Required Element
Amendments to the General Plan
The Hercules General Plan has been amended over time, including amendments made as development projects were approved.

General Plan Amendment 09-02 (Resolution 11-141) amended the city's General Plan by rezoning approximately 2.6 acres of the Waterfront District from Residential Single-Family Low-Density (RS-L) to Historic Town Center (HTC) as part of the Hercules Bayfront Project.

On November 12, 2013, the City Council adopted Resolution #13-118 approving a General Plan Amendment (GPA 13-02) to revise the Growth Management Element for Compliance with Measure J.

On April 14, 2015, the City Council adopted Resolution #15-025 approving General Plan Amendment #15-01, which amended the full Housing Element and portions of the Safety and the Open Space/Conservation Elements of the General Plan. The State Department of Housing and Community Development (HCD) certified the adopted housing element on April 22, 2015.

General Plan Amendment No. 17-01 (Resolution 17-070) changed the land use designation for the 6.75-acre site (Assessor’s Parcel Number 404-040-040) located at the northeast corner of Sycamore Avenue and San Pablo Avenue to allow construction of a Safeway grocery and fuel center. The GPA changed the land use designation from New Town Center (NTC) to General Commercial (GC) and modified the Circulation Element policy regarding future traffic studies for development in the New Town Center area.

On September 10, 2019, as part of the mixed-use Sycamore Crossing project, the City Council adopted General Plan Amendment No. 17-02 (Resolution 19-050), which changed the Land Use designation on approximately

8.88 acres of the 12.88-acre project site from General Commercial (GC) to 6.86 acres of Planned Commercial– Residential (P-CR) and 2.02 acres of Public/Semi-Public Open Space (P/SP-OS). The city prepared an Addendum to prior Environmental Impact Reports for the project site. 457
Waterfront District Master Plan Map
Specific Plans and Planned Developments
New Specific Properties Specific Plan
The neighborhood, now known as Victoria By the Bay, is built on a former refinery site. The Pacific Refinery Company operated in Hercules from 1966 to 1995 and dedicated the land to the City in 2000. In April 2000, the city adopted the New Pacific Properties Specific Plan, which was intended to provide for the orderly and efficient development of the Specific Plan area in accordance with the provisions of the City of Hercules General Plan. The plan contains development standards and design guidelines that apply only to properties within the Specific Plan area which are intended to implement the goals, objectives, and policies of the City’s General Plan. The plan area included 206.3 acres of land, flanked by San Pablo Bay to the west, the community of Rodeo to the north, Interstate 80 to the east, and North Shore Business Park and the future Hilltown project to the south.

Waterfront District Master Plan
The Hercules Bayfront is envisioned as a transit-oriented, traditional neighborhood mixed-use project within the Hercules Waterfront District. The Hercules Bayfront has been initiated as the final stages of the Hercules Waterfront District Master Plan (HWDMP), a Planned Development plan prepared in 1999-2000 and unanimously adopted on July 25, 2000. To implement the mixed-use district concept called for by the General Plan and Zoning Ordinance, the Waterfront District Master Plan organizes development within its boundaries as a traditional neighborhood and several distinct mixed-use sub-districts.

In 2008 the city amended the Waterfront District Master Plan by voter initiative, establishing a form-based code to regulate and provide detailed development and design standards for the undeveloped portions of the Historic Town Center, Transit Village, and Hercules Point sub-districts. The 2008 Initiative facilitates the completion of the Hercules Waterfront as a transit-oriented neighborhood mixed-use project by:

Waterfront District Master Plan build-out illustration
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 Amending the General Plan Diagrams, Land Use Element, Open Space/Conservation Element, Growth Management Element and Hazardous Waste Management Element, and the Zoning Ordinance to:
o designate the Hercules Point as Open Space and allow both active and passive uses subject to any needed remediation;
o allow mixed-use neighborhood and residential uses within the Historic Town Center planning area;
o add the Administration Building of the former Hercules Powder Company to the buildings to be retained for public or private use or access;
o add marina use, including boat slips and docks, to the permissible uses for submerged and tidal land to the north and south of Hercules Point and permit the inclusion of public restroom facilities within areas designated as Waterfront Commercial (WC); o increase allowable residential density to 40 units per acre and permissible building height to no more than eight stories within areas designated as Planned Commercial-Residential (PCR); and o rezone property within various designated sub-districts, including bringing the Civic Arts building property and the Masonic building property within the Central Hercules Plan area.

Central Hercules Plan
In July 2001, the City of Hercules created the vision for the Central Hercules Plan (CHP) through a design session
involving the community and a team of design professionals.

Traditional urban design conventions were applied to create a palette of street types that form the Central Hercules Plan area's four districts: the Waterfront District, the Central Quarter, the Civic Center/Hospitality Corridor, and the Hilltown. The Regulating Code is further divided into eight distinct street types: Four‐Lane Avenue; Two‐Lane Avenue; Main Street; Town Center Street; Neighborhood Street;
Neighborhood Land; Two‐Way Edge Drive; and One‐Way
Edge Drive. The Central Hercules Plan was codified by
adopting the New Town Center Zoning district, which still applies to the area between Willow Avenue and State Route

4. Since its adoption, development within the CHP area has been of a conventional suburban character, and portions of the CHP area were rezoned to General Commercial or
Community Commercial as shopping centers were
developed.

Central Hercules Plan
459
Central Hercules Plan Regulating Code Diagram
Major Projects
Hercules approved two significant projects in 2022, Franklyn Canyon and Owl Ranch. As this is the first General Plan Annual Progress Report developed by the City, it also discusses major projects accomplished prior to 2022.

Each project was consistent with the goals and policies of the General Plan.

Bayfront (Waterfront)
In September 2011, the City Council certified the Hercules Bayfront Project EIR. On March 13, 2012, the City Council approved the Hercules Bayfront Project, including a Vesting Development Agreement, Vesting Tentative Map 9290, General Plan Amendment No. 09-02, Zoning Designation Change No. 09-01, and amendments to the Hercules Waterfront District Master Plan (Zoning Text Amendment) No. 09-03.

The Exchange - On May 1, 2017, the Planning Commission approved Bayfront Block N (“The Exchange”), a mixed-use 4-story transit-oriented development for 172 multi-family residential units and 12,000 square feet of retail space with underground parking (10% of which is required to be shared parking in the future) within the Waterfront Priority Development Area (PDA), one block from the future Hercules Hub project and adjacent to the Bay Trail. The Exchange received Certificates of Occupancy for 172 multi-family units in 2020.

In 2021, the City became an Additional Member of the California Community Housing Agency (CalCHA), a joint powers authority focused on middle-income housing, to support and facilitate the purchase and sale of The Exchange to Catalyst Housing Group. Catalyst Housing Group added The Exchange to its partnership with CalCHA to provide additional middle-income rental housing in Hercules.

The Grand - On May 2018, the Planning Commission approved Bayfront Blocks Q & R (“The Grand at Bayfront”), a mixed-use 4-story transit-oriented development of 232 multi-family residential units (including 24 affordable units), 12,000 square feet of amenity space, and structured parking garage (10% of which is required to be shared parking in the future) within the Waterfront Priority Development Area (PDA), one block 460
from the future Hercules Hub project and adjacent to the Bay Trail. The Grand received Certificates of Occupancy in 2021.

The Mint - On May 6, 2019, the Hercules Planning Commission approved Bayfront Blocks M & P (“The Mint”) and O (“The Harbor House”), a 4-6 story transit-oriented development of 387 multi-family residential units (including 23 affordable units), which together make up the third phase of growth in The Village area of the Bayfront project. As of spring 2023, building permit review is underway.

Hill Town
On April 14, 2020, the City Council approved
the Hill Town project, including a Final
Planned Development Plan #19-01, Vesting
Tentative Map #9533, Conditional Use
Permit #19-91, and Design Review Permit
#19-02, subject to certain conditions, for a
mixed-use commercial and residential
development consisting of up to 598
attached multi-family residential units and
4,200 square feet of neighborhood
commercial uses, to be developed in four
construction phases, on a 44.2-acre site
adjacent to and west of Interstate 80,
adjacent to and east of San Pablo Avenue,
and adjacent to and north of John Muir
Parkway. After a delay due to Covid-19, the
City approved a Minor Subdivision Map for the project in 2021 to facilitate Project financing and construction.

Sycamore Crossing
Sycamore Crossing is an approved project consisting of approximately 29,511 square feet of retail/commercial uses, including a major drug store/pharmacy (13,111 square feet), with the remaining retail, uses in three additional buildings with parking and landscaping located on the eastern portion of the site east of Ohlone Creek; a four-story, 105-room hotel (approx. 63,163 square feet) with parking and landscaping in the approximate center of the site adjacent to the west side of Ohlone Creek; and up to 120 attached residential dwellings units on the western portion of the site (east of Tsushima Street).

Hill Town Project Rendering
461
On September 10, 2019, the City Council approved an Initial Study (#12-02), General Plan Amendment (#17- 02), Zoning Amendment (#17-02), Vesting Tentative Map (#9477), Initial/Final Planned Development Plan (#17- 02), Conditional Use Permit (#17-04), Minor Exception (#19-02) and Master Sign Program.

On February 28, 2023, the City Council approved Lot Line Adjustment (#22-02) to facilitate the development of the proposed hotel by adjusting the boundaries of the existing Lot 1, the hotel site, consistent with the approved Sycamore Crossing Initial/Final Planned Development Plan FPDP #14-01 The Sycamore Crossing site is currently constrained by utility lines that cross the property above and below ground; City staff is working with the developer to remove those constraints and to grade the site to facilitate development.

Franklin Canyon
The Franklin Canyon Area refers to areas of rolling hills in the easternmost portion of the City of Hercules and its Sphere of Influence. Historically used for grazing, Franklin Canyon provides watershed, plant and animal habitat, recreation, views proximity to nature, and a rural contrast to the built-up parts of the city. In 2004, the City of Hercules voters passed Measure M, which stopped proposed development (including housing development) and preserved the land for primarily agricultural, recreational, and open space purposes. The Franklin Canyon Area includes:
 162-acre Franklin Canyon Golf Course within City limits; approved in 2022 for redevelopment as a destination RV resort;
 484 acres of open space, trails, and grazing (referred to as Franklin Canyon) within City limits immediately south of the golf course; acquired by the John Muir Land Trust in 2010 and open to the public; and
 327 acres of land outside the City Limits within the City’s Sphere of Influence and owned by multiple property owners.

Sycamore Crossing Site Map
462
The Franklin Canyon RV Resort Project includes the redevelopment of the existing 161.5-acre 18-hole Franklin Canyon Golf Course with a recreation vehicle resort/campground with 158 spaces for recreation vehicles, 22 walk-in tent bungalow campsites, a new 10,500-square foot-clubhouse, and putting course, with approximately 70 acres to be deeded as open space to John Muir Land Trust. On February 8, 2022, the City Council gave final approval of the Franklin Canyon RV Resort, including the Initial Study & Mitigated Negative Declaration (#20-01), Lot Line Adjustment (#20-01), Vesting Tentative Map (#20-01) with Parcel Subdivision; and Design Review (#20-01).

The project was found to be consistent with Ordinance No. 401, an Ordinance of the People of the City of Hercules – Hercules General Plan Amendment and Land Use Designation for the Franklin Canyon Area, in that;

1. The proposed use is a low-intensity outdoor recreation and pastimes predominantly for active participants that are compatible with preserving the natural qualities of the area;

2. The proposed use is for nature observation, study, or enjoyment;

3. The proposed use accommodations for short-term occupancy and provision of food and drink (including low-intensity campgrounds and picnic facilities), predominantly for persons engaged in outdoor recreation or nature observation, study, or enjoyment;

4. The proposed use facilitates outdoor recreation that does not interfere substantially with the use of land for agriculture or cause lasting environmental harm or adverse visual effects, Owl Ranch
Owl Ranch (Skelly Residential Project) is an
approved residential subdivision consisting
of 40 single-family residential lots on an
approximately 7.44-acre former ranch
property in the Residential Single-Family
Low Density (RS-L) land use designation and
zoned RS-L. The project use and densities
are consistent with the General Plan. The
project will be built at 5.4 dwelling units per
acre (40 units), well within the 2-7 dwelling
units per acre allowed in the Residential
Single-Family General Plan designation. The
project includes one deed restricted lowincome and one deed restricted medianincome inclusionary residence. The project will advance the goals, objectives, policies, and programs of the General Plan by expanding residential opportunities within the city.

On September 27, 2022, the City Council approved an Initial Study & Mitigated Negative Declaration, Final Planned Development Plan (#22-01), Design Review Permit (#22-01), Lot Line Adjustment (#22-01), Vesting Tentative Map (#22-01) with Parcel Subdivision; and Design Review (#20-01).

The project applicant applied for building permits in 2023, and the project will be constructed in accordance with the city’s 2022 All-Electric Ordinance.

Owl Ranch Site Plan
463
The Hercules Hub
The Hercules Hub is a regional, state-of-the-art housing and transportation development on the Hercules Waterfront. It will connect thousands of housing units with a new train stop along the Capitol Corridor, bicycle and pedestrian pathways, bus routes, carpool options, and a future ferry service.

Since the Hub will be within walking distance of the Bayfront transit-oriented development, it will generate new transit ridership without putting more cars on the street. It will expand commute options for a nearby Community of Concern, with easy access to carpool, bus, ferry, and rail services. It will provide direct access to retail and other services close to home and reduce overall trip demand, contributing to social, environmental, economic, and health benefits.

The City has been working to secure funding and build the necessary infrastructure for the Hub for over two decades, and three phases have already been completed – Bay Trail East, Path to Transit, and Bay Trail West.

These improvements enabled direct access from highways to the Hub site through the extension of John Muir Parkway, created a new Bayfront Boulevard crossing and bridge over Refugio Creek, provided 4,000 feet of the multi-purpose path connecting the Bay Trail to the north and south, and cleared the way for 3,000 new feet of passenger station track to serve the new station.

General Plan Overview
This section provides an overview of the current City of Hercules General Plan and major long-range planning initiatives undertaken by various City departments.

Land Use Element
The Land Use Element’s central role is correlating all land use issues into coherent and consistent development visions and implementing policies.

Its goals, objectives, policies, and programs relate directly to all other Elements. The Land Use Element designates the proposed general distribution, location, and extent of land uses for housing, business, industry, open space, education, public buildings and grounds, waste disposal facilities, and other public and private land uses.

The 1998 Land Use Element was written when Hercules’ population was approximately 18,900, residing in 6,345 housing units. According to the 2020 Census, Hercules’s population has increased to 26,016, living in 9,165 housing units.

The Land Use Element was developed at a time when much of Central Hercules was still awaiting development, and the Hercules Redevelopment Agency had the power to assemble land, use Tax Increment Financing, and generally facilitate project development in ways that the dissolution of redevelopment agencies in 2011 has made no longer possible. While the Land Use Element and corresponding Land Use Map have been amended to change land use designations related to specific projects, a comprehensive update of the Element would provide an opportunity to envision the future of the community’s land use in a Reasons to Update
Land Use Element
 Population/employment
based on 1990 Census.
 Missing subsequent
major developments
o Safeway
o Hilltown
o Central Hercules Plan
o Waterfront initiative
 References to
redevelopment agency.
 City reached 2010
housing projection as of
2020 but has 5,000
fewer jobs than 2010
projection.
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holistic and internally consistent manner, update goals and objectives as needed to reflect today’s situation, identify necessary infrastructure upgrades, and consider updated or additional policies and programs.

FEMA Floodplain Review
California Government Code Section 65302(a) requires the Land Use Element to identify areas covered by the General Plan subject to flooding and mandates that the General Plan shall be reviewed annually concerning those areas.

As development occurred during the proceeding years, flood control improvements were constructed to eliminate flood hazards in each neighborhood and subdivision. The 1998 Land Use Element identified Refugio Creek, which traverses the City from southeast to northwest, as a source of flooding hazards. However, in 1998 the portion of the Refugio Creek basin west of San Pablo Avenue had not been developed. Before approval of the Bayfront development, flood control improvements were made to eliminate flood hazards which are reflected in Letters of Map Revision from the Federal Emergency Management Agencies.

A Letter of Map Revision (LOMR) is the Federal Emergency Management Agency’s (FEMA) modification to an effective Flood Insurance Rate Map (FIRM), Flood Boundary and Floodway Map (FBFM), or both. LOMRs are generally based on implementing physical measures that affect a flooding source's hydrologic or hydraulic characteristics.
 In 2005 (FEMA) issued a Letter of Map Revision (LOMR) for the west branch of Refugio Creek from approximately 100 feet downstream of Sycamore Avenue to just downstream of Union Pacific Railroad and Refugio Creek approximately 150 downstream of San Pablo Avenue.  In 2009, FEMA issued a (LOMR) for Refugio Creek just downstream of Coronado Street to approximately 3,500 feet upstream of Refugio Valley Road.  In 2011, FEMA issued a (LOMR) for Refugio Creek just downstream of Coronado Street to just downstream of Refugio Valley Road.
 In 2017, FEMA updated Hercules Flood Insurance Rate Maps (FIRM) to incorporate new information and changed conditions.
 In 2019, FEMA issued a (LOMR) for the west branch of Refugio Creek from approximately 750 feet downstream of Sycamore Avenue to just downstream of Sycamore Avenue and Refugio Creek upstream of Tsushima Street bridge to just downstream of San Pablo Avenue. This LOMR was to reissue a portion of a previously approved LOMR that was inadvertently not incorporated into the 2017 FIRM panel update.

Circulation Element
On February 27, 2018, the City of Hercules adopted a comprehensive update to the Circulation Element, which updated the city’s previous Circulation Element adopted in 1998. The update was needed given the land use and regulatory changes over the last 20 years within Hercules and the region. The updated Circulation Element includes policies that promote the development of “Complete Streets” in accordance with Assembly Bill 1358, the California Complete Streets Act.

The Circulation Element is consistent with and helps to implement other regional plans, including Plan Bay Area, Regional Transportation Improvement Program, Countywide Comprehensive Transportation Plan, Countywide Congestion Management Program, Countywide Bicycle and Pedestrian Plan, and Measure J Transportation and Growth Management Program.
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As discussed in the Growth Management Element section, the Measure J Growth Management Program (GMP) requires local jurisdictions within Contra Costa County to adopt a Growth Management Element and participate in a cooperative, multi-jurisdictional planning process, among other requirements. As part of the multi-jurisdictional planning process, jurisdictions work with Regional Transportation Planning Committees (RTPCs) to develop Action Plans for routes of regional significance. The RTPC that Hercules participates in is the West Contra Costa Transportation Advisory Committee (WCCTAC). The intent is that jurisdictions work together to ensure that the transportation impacts of local land use decisions are planned for and mitigated countywide.

Housing Element
The Housing Element identifies ways in which the housing needs of existing and future residents can be met and responds specifically to conditions and policy directives unique to Hercules. Every eight years, future housing needs are determined for each region of the state, based on growth over a specified period (projection period), through the regional housing needs allocation (RHNA) process. The RHNA process uses projected population growth to determine housing and affordability needs relative to household incomes and estimates how many new units are needed to meet those needs.

Government Code §65400 requires that each city, county, or city and county, including charter cities, prepare an annual progress report (APR) on the status of the housing element, using forms (Excel tables) and definitions adopted by HCD. The APR is submitted to HCD and the Office of Planning and Research (OPR) by April 1. The Housing Element Annual Progress Report provides a detailed analysis of the progress toward each individual Housing Element program. The City Council approved the City’s Housing Element APR for 2022 on March 14, 2023. During 2022 the primary focus of the housing effort was on the update of the city’s 2015-2023 Housing Element; however, the implementation of the Housing Element did continue during the update.

Housing Unit Production
The 2015-2023 Regional Housing Needs Allocation (RHNA) and Housing Element period is referred to as the “fifth cycle” since it is the fifth required update since the housing element law was revised by the state legislature in 1980. The City’s progress toward its Regional Housing Needs Allocation (RHNA) targets is measured by reporting the total number of units that received a building permit. Table 2 shows the progress made toward the city’s RHNA allocation for the planning period of 2015-2022.

Table 2 - Regional Housing Needs Allocation Progress
Income Level RHNA
Allocation
2015-2021
Progress
2022
Progress
Total
Progress
Remaining
Allocation
Very Low
Deed Restricted
220
0 0 0 220 Non-Deed Restricted 0
Low
Deed Restricted
118
0 0 16 102 Non-Deed Restricted 16
Moderate
Deed Restricted
100
0 0 217 0
Non-Deed Restricted 217
Above
Moderate 244 513 3 760 0
Total 682 746 3 993 322
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In addition to tracking building permits issued, the City also monitors the number of housing entitlements approved. Since 2020, the City of Hercules has approved two housing projects that have yet to obtain a building permit and thus were not counted toward the RHNA target in the 2022 annual report.

Accessory Dwelling Units
In February 2021, the City Council adopted an updated Accessory Dwelling Unit (ADU) ordinance to align with prior changes to state law. State legislation was passed in late 2019 that streamlined and clarified the state’s evolving ADU requirements, expanded opportunities for new ADUs, and limited the applicability of local zoning controls and requirements for certain ADUs. The City approved planning and building permits for three accessory dwelling units in 2022. In January 2023, the City Council amended the ADU ordinance in response to comments from HCD and recent state legislation.

Senate Bill 9
Senate Bill (SB) 9 (Atkins) was signed into law by Governor Newsom on September 16, 2021, and became effective January 1, 2022. It allows a single-family zoned parcel (including single-family Planned Unit Developments) to be subdivided into two parcels and two residences to be constructed on each parcel and to be approved ministerially if certain requirements are met. On June 6, 2022, the City Council adopted Ordinance No. 543, implementing SB 9 to provide guidance and procedures for the city's second units and urban lot splits.

The City developed objective design standards for SB 9 Two-Unit Developments and Urban Lot Splits and created applications, handouts, and a website to explain the new law. To date, Theren has minimal interest in such projects, and staff has fielded fewer than five inquiries.

Open Space & Conservation Element
The Open Space and Conservation Element provides direction for land use decisions regarding recreation, open space, and natural resourceoriented uses, consistent with the goals, objectives, and policies of the Land Use Element. In addition, the element addresses the management of these open space uses and natural resources. The Open Space and Conservation Element was last amended in 2015 with the 5th Cycle Housing Element in accordance with Assembly Bill (AB) 162, which revised California Government Code Section 65302. AB 162 requires Conservation and Safety Elements to consider the extent to which those elements address the flooding and hydrology issues within the jurisdiction.

Hercules is a semi-urban, largely built-out community with several natural resources, including upland open space hills, waterfront, creeks, and wetlands. The city has approximately 800 acres of open space with trails, predominately located along Refugio Creek and the hills on the city’s east side. Sensitive habitats exist in the wetlands along the San Francisco Bay shoreline, along Refugio Creek, and in the open space hills.

The 55-acre Refugio Valley Park consists of Refugio Lake, which acts as a water collection and filtering body for the upper watershed of Refugio Creek and adjacent neighborhoods. The 26-acre San Pablo Bay Reasons to Update
Open Space &
Conservation
Element
 Ideal time to update
following approval of
the Parks & Recreation
Facilities Master Plan.
 Should be updated along
with Land Use Element
for consistency
 Based on a 1996
population of 19,400.
 Standards for parks and
open space acreage may
need reconsideration
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waterfront park is a buffer for sea-level rise, and the East Bay State Regional Park District lands pond acts as a rainwater capture and filter for upland road and property run-off before exiting to the Bay. A 1986 Shoreline Feasibility Study identified future trail alignments for pedestrian, bicycle, and equestrian trails linking the shoreline and Historic Hercules to San Pablo Avenue, many of which have been constructed. Boardwalks are planned over the marsh/wetlands inland and parallel to the shoreline. These conservation areas are important for climate change resiliency and reducing vehicle miles traveled by single occupancy vehicles.

Parks and Recreation Facilities Master Plan
In 2022, the City of Hercules began creating its first-ever Parks and Recreation Facilities Master Plan to identify needs and priorities for its parks and recreation facilities. The plan will help the City strategically allocate resources and leverage grant opportunities to ensure community needs can be met. The Master Plan will assess the existing park system and identify new parks and recreation facilities. The project team is currently identifying needs and opportunities through open houses, workshops, online surveys, and pop-up events. The plan is anticipated to be completed and adopted in 2023 and will help to inform future updates of the Open Space and Conservation Element.

Conservation Projects
Several existing and proposed open space conservation projects in various stages of development should also be reflected in any future update of the Open Space and Conservation Element. These include the John Muir Land Trust’s acquisition of 484 acres of open space, trails, and grazing in Franklin Canyon and the City’s November 2022 agreement with the John Muir Land Trust for evaluation of the Refugio Creek Conservation Easement prior to the potential transfer of the easement and its mitigation obligation. The City invested time and resources toward the potential restoration of the 12-acre Chelsea wetlands, which received nearly $2 million in grants for planning and environmental work and has a certified Final Initial Study/Mitigated Negative Declaration. The 2008 Waterfront Now! The initiative amended the General Plan to designate as open space Hercules Point, a roughly 11-acre peninsula of City-owned land that is currently cut off by railroad tracks from the rest of the waterfront. A future update of the Open Space and Conservation Element could include goals, objectives, and policies to further the objective of providing safe public access to the Point via a gradeseparated crossing of the railroad.

Safety Element
On May 25, 2021, the City of Hercules adopted a comprehensive update to the Safety Element. An update of the Safety Element was needed given the land use and regulatory changes that took place over the last 20 years and in response to the ongoing technological evolution. The Safety Element is the primary document linking land use and conservation decisions to local safety planning. The goal of the element is to reduce the potential short- and long-term unreasonable risk of death, injuries, property damage, and economic impacts resulting from the effects of natural and non-natural hazards. In addition to legally mandated content, other issues included in the Safety Element are at the discretion of the local government. This element includes general hazard, risk reduction, and avoidance strategies; climate change vulnerability and measures to address those vulnerabilities; emergency response priorities; and comprehensive hazard mitigation to minimize disruption and expedite recovery following disasters.

The element responds to state legislation that requires cities to update their safety elements:
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Senate Bill 379 – Climate Change
The impacts of climate change pose an increasing and growing challenge to the safety and well-being of the residents of Hercules. California will continue to experience the effects of climate change in different ways, including increased likelihood of drought, flooding, wildfires, heat waves, severe weather, and sea-level rise.

In addition to climate change planning becoming necessary on its own merits, SB 379 requires cities to update their safety element to address adaptation and resiliency strategies applicable to that city.

Senate Bill 535 – Disadvantaged Communities
Disadvantaged communities in California are specifically targeted for the investment of proceeds from the State’s greenhouse gas cap-and-trade program. These investments aim to improve public health, quality of life, and economic opportunity in California’s most burdened communities while reducing pollution that causes climate change. Hercules does not have disadvantaged communities defined within the city limits and would not qualify for targeted investments.

Senate Bill 1000 – Environmental Justice
As part of updating the Safety Element, the planning team reviewed the requirements for adding a stand-alone Environmental Justice (EJ) Element to the General Plan or integrating EJ goals and policies into the Safety Element Update. Local jurisdictions must incorporate EJ in their general plan if they have a disadvantaged community and are concurrently adopting or revising two or more elements of their general plan. CalEPA’s Office of Environmental Health Hazard Assessment developed CalEnviroScreen to provide statewide data that can be used to identify communities disproportionately impacted by environmental pollution and identify disadvantaged communities. CalEnviroScreen identifies 20 indicators measuring exposure, Environmental Effects, Sensitive Populations, and Socioeconomic Factors. After reviewing the cumulative score for the city, the steering committee concluded that an Environmental Justice Element would not be relevant to the community’s needs at this time.

The Safety Element links by attachment to the City of Hercules Local Hazard Mitigation Plan.

Local Hazard Mitigation Plan
Coordination with members of the public, stakeholders, the steering committee, and agencies was essential to developing the City’s first Local Hazard Mitigation Plan and Safety Element update in 2021. Opportunities for the public to comment on the plan during the drafting and for neighboring communities, local and regional agencies involved in hazard mitigation activities, and agencies that have the authority to regulate development, as well as businesses, academia, and other private and non-profit interests to be involved in the planning process, was accomplished through the following actions. The public identified the following areas of concern and generally incorporated into the plan.
 Earthquake — The risk associated with earthquakes was identified as the top concern for the residents of Hercules, with 68% of respondents to the community online survey stating they were extremely or very concerned about the risk. Earthquakes also ranked high in the city’s risk assessment on page 24 of this plan.
 Wildfire Hazard — The wildfire risk ranking was modified to reflect the community’s concerns regarding wildfire hazards and the increased risks to the city due to climate change. The planning team incorporated comments received during the workshops and from the community survey,showing that 52% of respondents were extremely or very concerned about the city’s wildfire risk. 469
 Drought and Severe Weather Hazard — While drought was one of the top public concerns expressed in the survey, the probability and impact on the city remain low. However, this plan addresses the risk of severe weather in the form of heavy rain, atmospheric rivers, thunderstorms, hail, extreme heat, and damaging winds. Severe weather and drought are certainly connected, as an increase in extreme heat and fewer periods of heavy rain would likely lead to drought conditions in the future. The planning team will continue examining drought risk as new data and tools become available.  Community Education — Comments received during the workshops and nearly 80% of respondents to the community survey expressed the need for additional education and programs that promote citizen actions to reduce exposure to the risks associated with natural hazards. Many of the objectives and actions beginning on page 80 of this plan focus on educating the public on the risk from natural hazards and increasing awareness, preparation, mitigation, response, and recovery activities.

While the 2021 Local Hazard Mitigation Plan is in effect through 2026, to efficiently leverage City resources, the City of Hercules plans to participate in the 2023 Countywide LHMP update, which will be at no cost to the City, rather than continue to prepare its own LHMP updates on a different cycle.

All-Electric Ordinance
The primary component of natural gas is methane. Methane is a short-lived pollutant whose contribution to climate change (“global warming potential”) is, pound for pound, 25 times greater than carbon dioxide over a 100-year period. In addition to being a source of greenhouse gas emissions, natural gas has other attributes negatively affecting public health and safety. Indoor natural gas use, particularly for cooking, worsens indoor air quality, which disproportionately harms children, who are 42% more likely to develop asthma as a result of exposure. Ruptures in natural gas lines caused by earthquakes pose a secondary hazard to fires (half of the fires in San Francisco after the 1989 Loma Prieta earthquake were due to ruptured gas lines). Reducing a community’s reliance on the natural gas system improves its physical resilience, reduces fire risk, simplifies building systems and maintenance, and reduces greenhouse gas emissions. On May 24, 2022, the City of Hercules City Council adopted Ordinance No. 539, amending the building code to require certain newly constructed buildings to be all-electric buildings.

Noise Element
California Government Code Section 65302(f) requires that general plans contain a Noise Element to identify and quantify potential noise problems and provide effective noise control and mitigation policies. The city’s Noise Element, adopted in 1998, remains compliant with OPR’s Guidelines for the Preparation and Content of the Noise Element of the General Plan.

However, a comprehensive update to the General Plan, including the Noise Element, would likely identify changed noise conditions in the community due to increased development and traffic in Hercules.

To the extent practicable, the element analyzes and quantifies current and projected noise levels in the community. Information provided by noise exposure contours for both near and long-term levels of growth and traffic activity becomes a guideline for use in the development of the land use element to achieve noise-compatible land use. The noise exposure contours also provide baseline noise levels and noise source identification for local noise ordinance enforcement. The noise element includes Reasons to Update
Noise Element
 Outdated noise contour
maps.
 New technologies and
mitigation measures.
 Increased development
and changed noise
sources.
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policies that address existing and foreseeable noise problems. The adopted noise element is a guideline for compliance with the state's noise insulation standards.

Hazardous Waste Management
In the 1900s, the City of Hercules began as a company town known for producing dynamite and gunpowder.

In 1964, the production of fertilizer replaced the production of dynamite and black powder. Hazardous materials, utility production, and distribution have historically existed in the community side-by-side with residential and commercial uses. Pacific Gas and Electric (PG&E) maintains an electric substation along Willow (formerly Bayberry) Avenue, east of the I-80 off-ramp. Underground oil and gas pipelines traverse the city, and a gas pipeline pumping station in a PG&E easement on City-owned land. In addition, a waterfront railway distributes goods and hazardous materials through the city to Chevron and waterfront shipyards in Richmond.

In September 1986, Assembly Bill 2948 was passed, authorizing counties and cities in California to prepare Hazardous Waste Management Plans (HWMPs). Subsequently, Hercules prepared a plan to conform with federal, state, and county hazardous waste laws, policies, and regulations. The City intended to develop an integrated approach to hazardous waste management at the local level and enhance cooperation between the City and other affected jurisdictions. The Hazardous Waste Management Plan is not a required Element of the General Plan and therefore has not been updated regularly.

The Hazardous Waste Management Plan recognizes that the safe and effective management of hazardous waste will protect public health and the environment in the City of Hercules. The Element focuses on land uses and facility siting criteria, inventory of existing waste facilities, hazardous material transportation, and effective management.

Since 1990, industrial production and storage of hazardous materials have ceased, and large areas of legacy contamination have been cleaned up. A comprehensive update to the Hazardous Waste Management Plan, or review of the continued need for such a plan, would be beneficial in prioritizing the use of City resources.

Economic Development
The Economic Development Element of the General Plan provided the policy basis and conceptual framework for pursuing economic development in Hercules. In August 1989, the City Council initiated a process for establishing an economic development program for the city following a period of rapid growth and anticipated continued growth in residential, retail, commercial, and industrial development. The first step of developing an economic plan was to appoint a twenty-one-member Economic Development Strategy Planning Task Force. The Task Force developed a series of development goals, strategies, and objectives, which the City Council adopted as the Economic Development Strategy Plan (Element).

Since the Economic Development Element was prepared and adopted in the near quarter-century, significant developments have significantly altered the City’s economic situation. These include external economic cycles such as the 2001 “Dot-Bomb” recession, the 2007-2009 Great Recession, and the 2020 Covid-19 Recession, Reasons to Update
Economic Development
 References to redevelopment
agency should be removed.
 Not a required element but
related to many required
elements and must be
consistent.
 New mixed-use and
commercial developments
should be analyzed and
included in the element.
 Changed economic climate
with growth of online
shopping and remote work.
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as well as the state’s 2011 elimination of redevelopment agencies and the City’s own financial and governance crisis in approximately 2007-2011. The industry-wide contraction in retail space demand due to the rapid growth in online shopping, combined with retail developers’ reliance on suburban formats with ample onsite parking, have made it challenging to lease the ground-floor retail spaces in new urban mixed-use developments across the United States, and Hercules is no exception.

Beginning in 2022, Covid-19 relief funding helped the City develop and implement new economic development programs, including a popular “Shop Local” bonus gift card redeemable at local merchants. The City is participating in regional economic development forums along Contra Costa County’s Northern Waterfront, prepared a community profile and retail “leakage” analysis in 2022, and is considering new City programs to help attract new restaurants by assisting with move-in costs for vacant retail spaces. An updated Economic Development Element would present a possibility to take a fresh look at the potential for employment and retail growth in Hercules, the types of spaces needed to attract new businesses to Hercules, and the policies, goals, and objectives for economic development.

Growth Management
The Measure J Growth Management Program, adopted by voters of Contra Costa County in November 2004, requires each local jurisdiction to meet the following six requirements:
 Adopt a development mitigation program;
 Address housing options;
 Participate in an ongoing cooperative, multi-jurisdictional planning process;  Adopt an Urban Limit Line (ULL);
 Develop a five-year capital improvement program; and
 Adopt a Transportation Systems Management (TSM) Ordinance or Resolution.

The 2013 Growth Management Element was updated to comply with the Measure J Growth Management Program (GMP) requirements. By adopting and implementing this Element, the city intends to establish a comprehensive, long-range program that will match the demands for multi-modal transportation facilities and services generated by new development with plans, capital improvement programs, and development mitigation programs. The Urban Limit Line is intended to promote compact urban development patterns that encourage efficient use of existing and future infrastructure and restrict infrastructure extension into areas where urban development is not planned.

The Measure J GMP, adopted by voters of Contra Costa County in November 2004, is a 25-year extension of the previous Measure C Contra Costa Transportation Improvement and Growth Management Program approved by voters in 1988. Both programs include a ½ percent transportation and retail transactions and use tax intended to address existing major regional transportation problems; Measure J extended the countywide sales tax through the year 2034. Measure J requires that tax revenues be dedicated to transportation projects in Contra Costa County and to implementing a Growth Management Program by all the cities and the County.

The Growth Management component is intended to ensure that future residential, business and commercial growth pays for the facilities required to meet the demands resulting from that growth. 472
General Plan Compliance with OPR’s General Plan
Guidelines and State Legislation
The Governor’s Office of Planning and Research (OPR) adopts and periodically revises General Plan Guidelines for preparing and content general plans, including detailed information on statutory requirements for the mandated general plan elements. This report found that the City’s General Plan elements mostly comply with OPR’s 2017 General Plan Guidelines. Some elements and topics could be updated to further the community’s vision, improve usability, and remain relevant.

Element Recommendation Update Timeline
Land Use* (1998)  Comprehensive update to remain
relevant given changed conditions
 Reflect on recent plans/projects
 Consider development feasibility
absent redevelopment power
Not programmed
Circulation* (2018)  Element is compliant Not programmed Housing* (2015)  Element will be compliant when
adopted
Currently being updated for 2023
Open Space* &
Conservation* (1998)
 Comprehensive update to remain
relevant given changed conditions
 Reflect Parks & Recreation Facilities
Master Plan recommendations
 Climate change policies
Not programmed
Safety* (2021)  Element is compliant
 Climate Change
Not programmed
Noise* (1998)  Comprehensive update to remain
relevant given changed conditions
Not programmed
Hazardous Waste
Management Plan (1990)
 Comprehensive update to remain
relevant given changed conditions
Not programmed
Economic Development
(1991)
 Comprehensive update to remain
relevant given changed conditions
Not programmed
Growth Management
(2013)
 Periodic updates in accordance with
Measure J
Not programmed
*Required Element
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Comprehensive General Plan Update
The Community Development Department continues to evaluate the process and budget to undertake a comprehensive update to the current General Plan. Considerable funding has accumulated from the General Plan Update fee collected on permits, but staffing limitations and competing priorities have limited the Department’s ability to take on this work. The City Council’s 2023 decision to reauthorize a Senior Planner position that had previously been eliminated will provide the opportunity to adequately manage such a major new initiative.

Several of the oldest elements – land use, open space and conservation, and economic development – are highly interrelated and would benefit from a comprehensive look at current development, economic and environmental trends, and initiatives. During outreach and engagement for the Safety Element, there was considerable public advocacy to enhance climate change policies in the General Plan.

A comprehensive update could identify priorities for optimizing City codes and policies to attract the desired types of development on sites that have long remained vacant or underutilized. The update would provide the opportunity to make the entire General Plan current, consistent, and compliant with state laws and guidelines.

It would also provide Herculeans and the City with a valuable and relevant guiding document for their community’s future over the coming decades.
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General Plan
Annual Progress
Report 2022 Hercules City Council 05/23/2023
475
General Plan
The General Plan is a vision of how the City of
Hercules will grow and reflects the values and
priorities of the community.

California state law requires each city and county to adopt a general plan “for the physical development of the county or city, and any land
outside its boundaries which in the planning
agency’s judgment bears relation to its planning”
(Gov. Code § 65300).

Government Code Section 65400 and 65700
mandates that all cities and counties submit an
annual report on the status of the General Plan
and progress in implementing its Goals,
Objectives, and Policies.
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General Plan Element Review
3 Element Adopted Amended Related Plans
Land Use* 1998 2008 • Waterfront District Master Plan
• New Pacific Properties Specific Plan
• Regulating Code for the Central Hercules Plan
Circulation* 2018
Housing* 2015 • Housing Element 2023 - 2031
Open Space* & Conservation* 1998 2015
(AB 162)
• Refugio Creek Watershed Vision Plan
Safety* 2021 • Local Hazard Mitigation Plan
Noise* 1998
Hazardous Waste Management
Plan
1990 2008
Economic Development 1991
Growth Management 2013 • Contra Costa County Measure J
* Required Element
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Recent Amendments
• GPA #09-02 amended the General Plan by rezoning approximately 2.6 acres of the Waterfront District from Residential Single-Family Low-Density (RS-L) to Historic Town Center (HTC) as part of the Hercules Bayfront Project. • GPA #13-02 amended Growth Management Element for Compliance with Measure J. • GPA #15-01, adopted Housing Element 2015-2023 and amended portions of the Safety and the Open Space/Conservation Elements of the General Plan. • GPA #17-01 changed the Land Use designation for the 6.75-acre Safeway site. The GPA changed the land use designation from New Town Center (NTC) to General Commercial (GC)
• GPA #17-02 changed Land Use designation for approximately 8.88 acres of the Sycamore Crossing project site from General Commercial (GC) to Planned Commercial–Residential (P-CR) and Public/Semi-Public Open Space (P/SP-OS). 8 / 0 5 / 2 0 X X 4
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Specific Plans and Planned
Developments
• New Specific Properties Specific Plan
• Waterfront District Master Plan
• Central Hercules Plan
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Major Projects
Bayfront (Waterfront)
The Exchange – A mixed-use 4-story transit-oriented development for 172 multi-family residential units and 12,000 square feet of retail space.

The Grand – A mixed-use 4-story transit-oriented development of 232 multi-family residential units (including 24 affordable units), and 12,000 square feet of amenity space.

The Mint – A 4-6 story transit-oriented development of 387 multi-family residential units (including 23 affordable units).

Hill Town
A mixed-use commercial and residential development consisting of up to 598 attached multi-family residential units and 4,200 square feet of neighborhood commercial uses.

Sycamore Crossing
A mixed-use commercial and residential development of 29,511 square feet of commercial uses, a four-story, 105-room hotel and up to 120 attached residential dwellings.
8 / 0 5 / 2 0 X X 6
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Major Projects
Franklin Canyon
A redevelopment project of the Franklin Canyon Golf Course with 158 RV spaces, 22 walk-in tent bungalow campsites, clubhouse, putting course, and approximately 70 acres deeded as open space to John Muir Land Trust.

Owl Ranch
A residential subdivision consisting of 40 single-family residential lots, including 1 deed restricted low income and 1 deed restricted median-income inclusionary residence.

The Hercules Hub
The Hercules Hub is a regional, state-of-the-art housing and transportation development on the Hercules Waterfront. It will connect thousands of housing units with a new train stop along the Capitol Corridor, bicycle and pedestrian pathways, bus routes, carpool options, and future ferry service. 8 / 0 5 / 2 0 X X 7
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Land Use Element (1998)
• The Land Use Element
envisions the future of
Hercules
• Amended in 2008 by the
“Waterfront Master Plan
Initiative”
• Land Use Map has been
amended related to specific
projects
• Comprehensive update
recommended
8 / 0 5 / 2 0 X X 8
482
Circulation Element (2018)
• Comprehensive update to the 1998 Circulation
Element
• Compliant with Complete Streets Act (AB 1358)
• Consistent with and implements other regional
plans, including Plan Bay Area, Regional
Transportation Improvement Program,
Countywide Comprehensive Transportation
Plan, Countywide Congestion Management
Program, Countywide Bicycle and Pedestrian
Plan, and Measure J Transportation and Growth
Management Program
8 / 0 5 / 2 0 X X 9
483
Housing Element (2015-2023)
• State-mandated 8-year update cycle
• Housing Element APR submitted yearly
• Must plan for city’s “fair share” of regional
housing needs (regional housing needs
allocation or RHNA)
• RHNA projects population growth to
determine housing and affordability needs
to estimate number of units are needed.
• 2023 – 2031 Housing Element is currently
under review with HCD
8 / 0 5 / 2 0 X X 1 0
Income Level RHNA
Allocatio
n
Total
Progres
s
Through
2022
Remaining
Allocation
Very Low
Deed Restricted
Non-Deed Restricted 220 0 220
Low
Deed Restricted
Non-Deed Restricted 118 16 102
Moderate
Deed Restricted
Non-Deed Restricted 100 217 0
Above Moderate 244 760 0
Total 682 993 322
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Open Space & Conservation
Element (1998)
• Amended in 2015 with the 5th Cycle
Housing Element to comply with AB 162
• AB 162 requires Conservation and Safety
Elements to consider flooding and
hydrology
• Parks and Recreation Facilities Master
Plan anticipated to be adopted in 2023
• Comprehensive update recommended to
reflect changed conditions and
conservation projects
8 / 0 5 / 2 0 X X 1 1
485
Safety Element (2021)
• Comprehensive update to the 1998 Safety
Element
• The Safety Element includes general hazard,
risk reduction, and avoidance strategies;
climate change vulnerability and measures to
address those vulnerabilities; emergency
response priorities; and comprehensive
hazard mitigation to minimize disruption and
expedite recovery following disasters.
• Local Hazard Mitigation Plan
8 / 0 5 / 2 0 X X 1 2
486
Noise Element (1998)
The Noise Element analyzes and quantifies, to the
extent practicable, current and projected noise levels in the community and must consider noise levels from;
• Highways/freeways
• Arterial & major local streets
• Passenger/freight railroad
• Rapid transit systems
• Commercial and military aviation and airport
operations
• Local industrial plants
• Other local noise contributing sources
1 3
487
Hazardous Waste Element (1990)
• Not a required element
• Since 1990, industrial production and
storage of hazardous materials has
ceased, and large areas of legacy
contamination have been cleaned up.
• Amended in 2008 by the “Waterfront
Master Plan Initiative” to acknowledge
hazardous waste clean-up activities in the
Waterfront District since 1985.
• A comprehensive update or review of the
continued need for element, would be
beneficial in prioritizing the use of City
resources.
1 4
488
Economic Development
Element (1991)
• Not a required element
• Since the Economic Development
Element was prepared and adopted,
major developments have altered the
City’s economic situation significantly
• 2022 Covid-relief funding helped develop
and implement new economic
development programs
• Comprehensive update recommended
1 5
489
Growth Management Element (2013)
• Not a required state element
• Required by Measure J
• Growth Management Element was updated in
2013 to comply with the requirements of the
Measure J Growth Management Program
(GMP).
1 6
490
Compliance
1 7
Element Recommendation Update Timeline
Land Use* (1998)  Comprehensive update to remain relevant given changed conditions
 Over 20 years old
 Reflect recent plans/projects
 Consider development feasibility absent
redevelopment power
Not programed
Circulation* (2018)  Element is compliant Not programed Housing* (2015)  Element will be compliant when adopted Currently being updated for 2023 Open Space* & Conservation*
(1998)
 Comprehensive update to remain relevant given
changed conditions
 Over 20 years old
 Reflect Parks & Recreation Facilities Master Plan
recommendations
 Climate change policies
Not programed
Safety* (2021)  Element is compliant
 Climate Change
Not programed
Noise* (1998)  Comprehensive update to remain relevant given changed conditions
 Over 20 years old
Not programed
Hazardous Waste Management
Plan (1990)
 Comprehensive update to remain relevant given
changed conditions
 Over 20 years old
Not programed
Economic Development (1991)  Comprehensive update to remain relevant given changed conditions
 Over 20 years old
Not programed
Growth Management (2013)  Periodic updates in accordance with Measure J Not programed General Plan elements
mostly comply with OPR’s
2017 General Plan
Guidelines.

Some elements and topics
could be updated to further
the community’s vision,
improve usability, and
remain relevant.
*Required Element
491
8 / 0 5 / 2 0 X X
The Community Development Department
continues to evaluate the process and
budget to undertake a comprehensive update
to the current General Plan.

A comprehensive update would provide the
opportunity to make the entire General Plan
current, consistent and compliant with state
laws and guidelines.
1 8
Comprehensive GP Update
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Recommended Action
City Council: Direct Staff to submit the 2022 General Plan Annual Progress Report to HCD and OPR.
8 / 0 5 / 2 0 X X 1 9
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