Agenda Packet — Hercules City Council, February 13, 2024

IMPORTANT NOTICE ABOUT PUBLIC COMMENTS AND MEETING

PARTICIPATION
Due to concerns with security of the Zoom format, effective October 10, 2023, Remote Public Comment will not be accepted. Public comment may be provided in-person or via email, as set forth below. Members of the public desiring to provide comments as a part of the meeting are encouraged to either submit written comments by 3:00 p.m. prior to the meeting or to attend the meeting in person.

How to Participate:

IN PERSON: Members of the public are invited to attend and participate in Person: City of Hercules Council Chambers, 111 Civic Drive, Hercules, CA. Fill out a public speaker card located on the side table and submit it to the City Clerk.

VIA ZOOM: At this time remote public comment is suspended and will not be accepted. To watch and listen only: Download the Zoom mobile app from the Apple Appstore or Google Play. If you are using a desktop computer, you can test your connection to Zoom by clicking here or go to: https://www.zoom.us/join. Zoom also allows you to join by phone at +1-669-900-6833.

Zoom Webinar ID: 863 2111 7549 Zoom Passcode: 680524
EMAIL: Public comments can also be submitted via email to [email protected]. Please note that emailed comments will not be read aloud by staff. Any public comments received up until 3:00 p.m. of the meeting date will be:

1. distributed to the Council before the meeting,

2. posted online for public inspection and

3. inserted into the meeting record.

As emails containing public meeting comments are part of the official record, note that personal contact information may be published if it is included with your email.
1 Tuesday, February 13, 2024
City of Hercules
111 Civic Drive
Hercules, CA 94547
City Council
Mayor Dan Romero
Vice Mayor Dion Bailey
Council Member Alex Walker-Griffin
Council Member Chris Kelley
Council Member Tiffany Grimsley
Dante Hall, City Manager
Patrick Tang, City Attorney
Eibleis Melendez, City Clerk
Meeting Agenda
CLOSED SESSION - 6:00 P.M., REGULAR MEETING- 7:00 P.M
In-Person in Council Chambers or to Listen Only:

Zoom ID: 863 2111 7549, Zoom Passcode: 680524
Zoom Phone Number: 1-669-900-6833
2 February 13, 2024City Council Meeting Agenda
See last pages of agenda for information regarding meeting procedures To view webcast of meetings, live or on demand, go to the City's website at www.ci.hercules.ca.us I. CLOSED SESSION – CALL TO ORDER - ROLL CALL - 6:00 P.M.

II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
III.

CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:

1. 22-770 Pursuant to Government Code section 54954.5(e), PUBLIC EMPLOYEE DISCIPLINE/DISMISSAL/RELEASE.

2. 22-771 Pursuant to Government Code Section 54957.6 Conference With Labor Negotiators - City Negotiators: Dante Hall, City Manager; Edwin Gato, Director of Finance; relative to the following employee groups:
a. Teamsters Local 315 Employee Organizations
b.

Hercules Police Officers Association
c. Hercules Senior Manager Employee Group
d. Confidential Unrepresented Employee Group
e. Mid Management Employee Group

3. 22-774
Pursuant to Government Code Section 54957(b) PUBLIC EMPLOYEE EVALUATION - Title: City Manager
IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

V. REPORT ON ACTION TAKEN IN CLOSED SESSION
VI.

PLEDGE OF ALLEGIANCE
VII. MOMENT OF SILENCE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 22-763
Proclamation Recognizing the 45th Anniversary of the Hercules Chinese Association
Proclamation - 45th Anniversary of the Hercules Chinese AssociationAttachments:

2. 22-764 Clerk Recorder and Registrar - Election Update- Kristin Connelly Presentation - Election Update - Helping Hercules Prepare for the 2024 ElectionAttachments:

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3 February 13, 2024City Council Meeting Agenda
IX. AGENDA ADDITIONS/DELETIONS
X. PUBLIC COMMUNICATIONS
This time is reserved for members of the public to address issues not included in the agenda. In accordance with the Brown Act, Council will refer to staff any matters brought before them at this time, and those matters may be placed on a future agenda.

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

XI.

PUBLIC HEARINGS
XII. CONSENT CALENDAR

1. 22-760 Meeting Minutes for the Regular Meeting of January 9, 2024 Meeting Minutes for the Regular Meeting of January 9, 2024Attachments:

2. 22-761 Meeting Minutes for the Regular Meeting of January 23, 2024 Meeting Minutes for the Regular Meeting of January 23, 2024Attachments:

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4 February 13, 2024City Council Meeting Agenda

3. 22-762 Zoning Code amendments to implement the State law pertaining to emergency shelters and low barrier navigation centers. Amendments to Hercules Municipal Code (Table 13-6.1), Chapter 13-35 (Sec.13-35.258. Emergency Shelters), and Chapter 13-60 Definitions, pursuant to California Assembly Bill 2339. Amendments to Hercules Municipal Code (Table 13-12.1,13-15.1 and 13-18.1), Chapter 13-35 (Sec.13-35-260, Family Day Care Homes, proposed to be modified to Low-Barrier Navigation Centers), and Chapter 13-60. Definitions, pursuant to California Assembly Bill 101.

RECOMMENDATION:

Staff recommends that the
City Council approve the proposed ordinance
amendments, which, consistent with State law requirements, generally accomplish the following:
· Update Hercules Municipal Code pursuant to State law, including:
o Add Emergency Shelters as a Permitted (P) Land Use in RM-L Residential Multifamily Low Density Zoning Districts Table 13-6.1.
o Modify emergency shelter objective standards in Sec.13-

35.258
o Modify the “Emergency Shelters” definition in Chapter 13-60 Definitions.
o Add Low-Barrier Navigation Center as a Permitted (P) Land Use to Historic Town Center District (HTC) Table 13-12.1, Planned Commercial Residential Mixed-Use District (PC-R) Table 13-15.1 and New Town Center District (NTC) Table 13-

18.1. o Delete Sec.13-35.260. Family Day Care Homes and replace with Sec.13-35-260 Low-Barrier Navigation Center.
o Add “Low-Barrier Navigation Centers” definition to Chapter 13 -60 Definitions.

Staff Report - Emergency Shelter - Low Barrier Nav Code Update Attach 1 - Draft Ordinance- Emergency Shelters - Low Barrier Nav Attach 2 - HCD Review of Draft Housing Element
Attachments:

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5 February 13, 2024City Council Meeting Agenda

4. 22-772 Consideration and Proposed Adoption of A Resolution Authorizing The City Manager To Execute Amendment No. 2 to The Professional Services Agreement With Regional Government Services (RGS) For Human Resources Assistance in The Amount Not To Exceed
$115,000
RECOMMENDATION:

Staff recommends City Council
adopt the attached Resolution and authorize
the City
Manager to execute Amendment No. 2 in the amount of $115,000 to the Professional Services Agreement with Regional Government Services (RGS) for human resources assistance.

Staff Report - Amendment To Professional Services Agreement With Regional Government Services (RGS) Attach 1 - Resolution
Attach 2 - Contract with RGS for HR Services
Attach 3 - Ammendment 1 to Contract with RGS for HR Services Attach 4 - Adopted FY 2023-24 Budget_RGS Services
Attach 5 - Amendment # 2 to RGS Human Resources Agreement Attachments:

XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-766 Review of Fiscal Year (FY) 22-23 Unaudited Year-End Result RECOMMENDATION:

Receive the report on FY 22-23 Unaudited Year-End Result Staff Report - Review of Preliminary General Fund FY 22-23 Year End Results Attach 1 - Unaudited General Fund Year End Results Summary as of June 30, 2023 Attach 2 - Unaudited All Funds Year End Results Summary as of June 30, 2023 Attach 3 - Unaudited Capital Projects to date Summary as of June 30, 2023 Presentation
Attachments:

2. 22-767 Remote Public Participation
RECOMMENDATION:

Provide direction to staff regarding a remote participation option for members of the public at public meetings.

Staff Report - Remote Participation
Attach 1 - Remote Participation Survey of Local Agencies Attachments:

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6 February 13, 2024City Council Meeting Agenda

3. 22-768 Cooperative Funding Agreement with West Contra Costa Transportation Advisory Committee (WCCTAC) to Receive an Additional $800K in Subregional Transportation Mitigation Program (STMP) Funding for The Hub.

RECOMMENDATION:

Adopt a resolution approving a Cooperative Funding Agreement with West Contra Costa Transportation Advisory Committee (WCCTAC) to receive $800K in Subregional Transportation Mitigation Program (STMP) funding in addition to the original $750K for a total new Agreement amount of $1.55M to advance The Hub and authorizing the City Manager to execute the Agreement on behalf of the City.

Staff Report -STMP Agreement
Attach 1 - Resolution - STMP Agreement
Attach 2 - Hercules Combined Funding Agreement-Final 2024-01-17 Attachments:

4. 22-769 Adopt A Resolution Authorizing the City Manager To Execute An Agreement With Tripepi Smith and Associates For An Amount Not To Exceed $22,000 For City Branding Services.

RECOMMENDATION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute an agreement with Tripepi Smith and Associates for an amount not to exceed $22,000 for City branding services.

Staff Report -City Branding Services
Attach 1 - Resolution
Attach 2 - Hercules Branding Proposal
Attachments:

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

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7 February 13, 2024City Council Meeting Agenda
XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

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

1. Regional Committee

2. City Council Committees and Subcommittees

3. Commission Liaisons
XVI. ADJOURNMENT
The next Regular Meeting of the City Council will be held on Tuesday, February 27, 2024 at 7:00p.m. in the Council Chambers.

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

Members of the public can view electronic agendas and staff reports by accessing the City website at www.ci.hercules.ca.us and can receive e-mail notification of agenda and staff report postings by signing up to receive an e-notice from the City’s homepage. Agendas and staff reports may also be obtained by contacting the City Clerk at (510) 799-8200 (Posted: February 8, 2024)

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

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

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8 February 13, 2024City Council Meeting Agenda
How to Submit Public Comments
In Person: Attend meeting at the Hercules City Council Chambers, fill out a public speaker card located on the side table and submit it to the City Clerk.

Via Zoom: At this time remote public comment is suspended and will not be accepted. To watch and listen only Download the Zoom mobile app from the Apple Appstore or Google Play. If you are using a desktop computer, you can test your connection to Zoom by clicking here or go to: https://www.zoom.us/join. Zoom also allows you to join by phone at +1-669-900-6833 or +1-929-205-6099 or +1-253-215-8782.

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

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

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

All public comments will become part of the official meeting record. As email containing public meeting comments are part of the official record, note that personal contact information may be published if it is included with your email. The City cannot guarantee that its network and/or the website will not be uninterrupted. To ensure that the City Council receives your written comments, you are strongly encouraged to submit your comments in writing in advance of the meeting by 3:00 p.m. on the day of the Council or Commission meeting.

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

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

Video Streamed Live on the City’s Website:

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

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

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

2. Locate the desired meeting and date.

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

Video = Video is available for on demand viewing.

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

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

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9 February 13, 2024City Council Meeting Agenda

THE HERCULES CITY COUNCIL ADHERES TO THE FOLLOWING POLICIES,

PROCEDURES AND REGULATIONS REGARDING CITY COUNCIL MEETINGS

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

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

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

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

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

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

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

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

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

Page 9 ends

10 INTRO

DUCTIONS/PRESENTATIONS/

COMMISSION REPORTS

AGENDA ITEMS

1. 22-763

2. 22-764
11 PROCLAMATION CONGRATULATING THE HERCULES CHINESE
ASSOCIATION ON THE IR 45TH ANNIVERSARY AND DECLARING FEBRUARY 25, 2024 AS CHINESE HERITAGE DAY IN THE CITY OF HERCULES WHEREAS, the Chinese Association of He rcules was established in 1979 as a non- profit mutual benefit corporation organized to be primarily social in nature, with non-political, non-sectarian, and non-discrimination values; and
WHEREAS, the Association ’s purpose is to promote friendship and cooperation among its members and community, to foster pride in the City, to promote traditional Chinese culture and to provide a strong voice for the Chinese in the Hercules community; and WHEREAS, the Association consists of more than 250 members from Hercules and surrounding communities, who participate in and support many city-sponsored events, such as community cleanup day, cultural festival, July 4th parade, and tree lighting ceremony; and WHEREAS, the Association successfully raised funds for the Hercules Library and the Earthquake relief effort in China, has organized free health and safety seminars for its members and has initiated free classes at the Hercules Senior Center, including Tai Chi and Yuen Ji Chinese Dance; and
WHEREAS, in 1990, the Association established the Academic Achieveme nt Awards Program to recognize Association members , Grades 3 -12, encouraging students to attend college and to prom ote community involvement . Since the program’s inception, awards have been presented to more than 300 scholar recipients; and WHEREAS, in 2008, the Chinese Association, in partnership with the Hercules Historical Society, installed a memorial plaque at Frog Pad Park dedicated to the memory of the Chinese workers who toiled under treacherous conditions at Hercules Pow der Works , many of whom perished in explosions; and
WHEREAS, the year 2014 marks the 100 th anniversary of the departur e of the once indispensable immigrant and California-born Chinese workforce from the powder works plant.

NOW, THEREFORE, BE IT PROCLAIMED that I, Dan Romero, Mayor of the City of Hercules, on behalf of the entire City Council and the Hercules community, do hereby recognize and congratulate the Hercules Chinese Association on their 45th anniversary and do hereby proclaim February 25, 2024 as Chinese Heritage Day in the City of Hercules.

I further call upon all citizens of Hercules to celebrate the contributions made by Chinese residents past and present and to recognize the valuable role played by the Chinese Association in Hercules.

In witness whereof, I hereunto set my hand and cause the Seal of the City of Hercules to be affixed this 13th day of February 2024.

Dan Romero, Mayor
22-763
12 INTR

ODUCTIONS/PRESENTATIONS/

COMMISSION REPORTS

AGENDA ITEM

2. 22-764
13 Contra Costa CountyContra Costa County
Kristin B. Connelly
C l e r k - R e c o r d e r - E l e c t i o n sC l e r k - R e c o r d e r - E l e c t i o n s County Clerk-Recorder-Registrar
[email protected]
925.335.7899
22-764
14 ELECTIONS
Registrar of Voters
Primary Statutory Responsibilities Include:
 Conduct elections in a fair, efficient, accurate, and timely manner;  Provide services to maintain a high level of voter registration and to ensure that all eligib
le citizens can register to vote and are able to exercise their right to vote, according to Federal and State statutory laws and regulations; 15 CLERK-RECORDER
Primary Statutory
Responsibilities Include:
 Accurately maintain, protect, and
preserve o
fficial records and indices
relating to real property and
vital records in Contra Costa County
and provide the public with easy,
convenient, and reliable access to
public documents;
 Provide micrographic capability and
equipment
to digitize, maintain, and
archive our public records.
16 CLERK-RECORDER-

ELECTIONS DEPARTMENT
• The Election Division was
selected as 1 of just 16 jurisdictions
nationwide to be a Center for Election
Excellence.
o The award is bringing nearly $2 million
in grant r
evenue through the end of 2024.
• Contra Costa Elections also received the
Democracy Award from the National
Association of Election Officials in 2022 for leading
the 11-county Coalition of Bay Area Elections
Officials (bayareavotes.org) for collaborating
to fight mis- and dis-information about elections
in our shared media market.
• We continue to collaborate on new collateral.

Recognized for Excellence
17 18

CONTRA COSTA ELECTIONS

BY THE NUMBERS
• 704,567 registered voters
o 90%-95% of ballots are cast as
Vote-By-M
ail (VBM) ballots.
o These get returned split about evenly between
secure drop
boxes and USPS.
• We moved to a central count model in 2022.
• We are authorized for just 32 permanent FTEs.
• By contrast, Santa Clara has only 400,000 more
registered voters and they have 90 permanent FTEs.
• The Presidential Primary on March 5, 2024, is first time in the history of California where we will mail every voter a ballot in a partisan presidential primary.
9th Largest County in California
19 HERCULES

BY THE NUMBERS
• 17,175 registered voters (2.4% of county)
o 10 precincts serving city voters
• Partisan breakdown of registered voters:
o 61.4% Democratic Party
o 11.8% Republican Party
o 2.9% American Independent Party
o 0.4% Green Party
o 0.6% Libertarian Party
o 0.5% Peace & Freedom Party
o 21.7% No Party Preference
o 0.6% Misc.
• 12 volunteers from Hercules have committed to
help with the Presidential Primary.
• In November 2022, the highest turnout for in-person voting was at Hercules Public Library with 230 voters
on Election Day.
20 Contra Costa County Elections Division
mailed all NPP voters a postcard in December
that gave instructions on how to request a cross-
over ballot for American Independent Party
, the
Democratic Party or the Libertarian Party.

Voters wanting to participate in the Republican,
Green Party or Peace & Freedom Party
Presidential Primary need to re-register with that
party by February 20,2024.

How to get back to us?
Voters can send us their No Party Preference Cross-
Over Ballot Notice and Application in person or by
mail. It can also be sent by
email or fax.
• Email: [email protected]
• Fax: (925) 335-7836
21 Contra Costa County Elections Division
mailed all NPP voters a postcard in December
that gave instructions on how to request a cross-
over ballot for American Independent Party
, the
Democratic Party or the Libertarian Party.

Voters wanting to participate in the Republican,
Green Party or Peace & Freedom Party
Presidential Primary need to re-register with that
party by February 20,2024.

How to get back to us?
Voters can send us their No Party Preference Cross-
Over Ballot Notice and Application in person or by
mail. It can also be sent by
email or fax.
• Email: [email protected]
• Fax: (925) 335-7836
22 VOTING EARLY IN HERCULES
24/7 Drop Box Locations
109 Civic Drive
In-Person Voting
Walnut Creek City Hall
1666 North Main Street
Friday March 1 -- 11:00 am – 6:00 pm
Saturday March 2 -- 9:00 am – 3:00 pm
Monday March 4 -- 11:00 am – 6:00 pm
23 When is the Next Election?
2024 Presidential Primary Election
E-Day -40
1/25/24
E-Day -29
2/5/24
E-Day -15
2/19/24
E-Day -4
3/1/24
E-Day
3/5/24
E-Day +7
3/12/24
Voter Information Guides mailed
Includes locations of ballot drop boxes and voting sites Ballots mailed to all voters
In-person voting begins in Martinez; drop boxes opened
Last day to register online-If haven’t received your ballot Email [email protected] or phone 925.335.7800
Five early voting sites open
Fri, Sat, Mon, and Election Day
Election Day!
Ballot postmark deadline
Drop-dead
County must receive your ballot
24 How Can You Support Elections?
• Communicate with your residents and reinforce important election information.
• For the March Primary, NPP voters need to let us know if they would like a “crossover ballot” that allows them to vote in a partisan primar
y.
• To participate in the Republican Primary, a resident needs to be registered with the Republican party.
• Encourage high school
students to become student poll
workers. Invite our staff to speak to your Youth Commission. 25 How Can You Support Elections?
• Be an ambassador for registering new voters year-round. • Reinforce safety messages with your local police department. • Support California High School Voter Education Weeks the last two weeks of April and September.
• In 2024, please do what you can to amplify information about the importance of
voting. The CA SOS, Dr. Shirley Weber plans to highlight the 60th anniversary of Fannie Lou Hamer’s 1964 speech “I’m so sick and tired of being sick and tired,” to help inspire Californians to vote.
• Check out our Website and follow us on Social Media:

ContraCostaVote.gov
26 We’re Easy to Reach!We’re Easy to Reach!
Follow us on:

Instagram TikTok
Follow us on:

Instagram TikTok
QR Code to our Instagram
Social Media:

Twitter – @cocoelections
YouTube –Contra Costa Clerk Recorder
Facebook – Contra Costa County Elections
Instagram – @contra_costa_elections
Tik Tok – @cc.clerkrec.elect
QR Code to our TikTok
27 California's Youth Vote
State
2014 Youth Turnout
Rate
2018 Youth Turnout
Rate
2022 Youth Turnout
Rate
Change in Youth
Turnout, 2018-
2022
California 10.3% 30.3% 22.1% -8.2
Youth Voter Turnout in Recent Midterm Elections: State by State CIRCLE estimates of youth voter turnout (ages 18-29) in the past three midterm elections. Turnout is the percentage of eligible voters (whether or not they were registered) who cast a ballot.
28 Five
Steps to
Safer
Elections
f r o m t h e
C o m m i t t e e f o r
S a f e a n d S e c u r e
E l e c t i o n s
29 Five
Steps to
Safer
Elections
f r o m t h e
C o m m i t t e e f o r
S a f e a n d S e c u r e
E l e c t i o n s
30 Contra Costa CountyContra Costa County
Kristin B. Connelly
C l e r k - R e c o r d e r - E l e c t i o n sC l e r k - R e c o r d e r - E l e c t i o n s County Clerk-Recorder-Registrar
[email protected]
925.335.7899
31 CONSENT CALENDAR

AGENDA ITEMS

1. 22-760

2. 22-761

3. 22-762

4. 22-772

32 111 Civic Drive
Hercules, CA 94547City of Hercules
Meeting Minutes
City Council
Mayor Dan Romero
Vice Mayor Dion Bailey
Council Member Alex Walker-Griffin
Council Member Chris Kelley
Council Member Tiffany Grimsley
Dante Hall, City Manager
Patrick Tang, City Attorney
Eibleis Melendez, City Clerk
7:00 PMTuesday, January 9, 2024
In-Person in Council Chambers or To Watch or Listen only:

Zoom ID: 898 9777 4503
Zoom Passcode: 578373
Zoom Phone Number: 1-669-900-6833
I. CLOSED SESSION – CALL TO ORDER - ROLL CALL-NONE
NONE
II.

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

NONE
IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

D. Bailey, T. Grimsley, C. Kelley, D. Romero, and A. Walker-GriffinPresent: 5 - V. REPORT ON ACTION TAKEN IN CLOSED SESSION - NO CLOSED SESSION NONE
VI. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was lead by Council Member Kelley.

VII. MOMENT OF SILENCE
Mayor Romero requested a Moment of Silence for long time resident Anton Jungherr and Oakland Police Officer Tuan Le.

Page 1 ends

22-760
33 January 9, 2024City Council Meeting Minutes
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 22-735 Police Officer of the Year Proclamation
Proclamation - Police Officer of the YearAttachments:

Mayor Romero Presented the Police Officer of The Year Proclamation to Officer Demi Gonis. Comments were provided by Chief Joseph Vasquez and Council Members. Officer Gonis also spoke and thanked the Council and her colleagues. Pictures were taken.

2. 22-747
Martin Luther King Day Proclamation
Proclamation - Martin Luther King DayAttachments:

Mayor Romero presented the proclamation. Council Members provided comment.

IX. AGENDA ADDITIONS/DELETIONS
NONE
X. PUBLIC COMMUNICATIONS
Senior Community Library Manager, Alison Peters, provided an update on upcoming events at the library as well as an update on the services that the library provides. Hercules resident Grace Sui provided public comment.

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

XI. PUBLIC HEARINGS
NONE
XII. CONSENT CALENDAR
MOTION: A motion was made by Council Member Walker-Griffin, Seconded by Council Member Kelley, to adopt the Consent Calendar. The motion carried by the following vote:

Aye: D. Bailey, T. Grimsley, C. Kelley, D. Romero, and A. Walker-Griffin5 -

1. 22-731
Meeting Minutes for the Special Meeting of December 5, 2023

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34 January 9, 2024City Council Meeting Minutes
Meeting Minutes for the Special Meeting of December 5, 2023Attachments:

APPROVED

2. 22-732 Meeting Minutes for the Regular Meeting of December 12, 2023 Meeting Minutes for the Regular Meeting of December 12, 2023Attachments:

APPROVED

3. 22-733 Recognized Obligation Payment Schedule for the period of July 1, 2024, through June 30, 2025 (ROPS 24-25)
RECOMMENDATION:

Adopt a resolution approving the Recognized Obligation Payment Schedule for the period July 1, 2024, through June 30, 2025 (ROPS 24-25).

Staff Report - ROPS 24-25 SA
Attach 1 - SA Resolution - ROPS 24-25
Attach 2 - Hercules ROPS 24-25 RAD App 12.1.23-1
Attachments:

Resolution 24-001 was Approved.

4. 22-746 Posting of Political Signs in The City of Hercules RECOMMENDATION:

Receive information on the posting of political signs on public property.

Staff Report - Posting of Political Signs
Attach 1 - 2018 Staff Reprot -Election Sign Locations
Attach 2 -18-020 - City Council Resolution - Election Sign & Map Attach 3 - Map - Political Signs - 2018
Attachments:

APPROVED
XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-734 2024 Council Appointments on Regional Committees and Council Subcommittees
RECOMMENDATION:

Appoint Council Members to Regional Committees and Council Subcommittees for 2024.

Staff Report - Council Appointments to Regional Committees Attach 1 - 2023 CC Appointed Reps-Approved 01.24.23
Attachments:

Mayor Romero presented his recommended changes to the 2024 Council Appointments on Regional and Council Subcommittees. No public comment. Action was taken on this item.

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35 January 9, 2024City Council Meeting Minutes
MOTION: A motion was made by Council Member Walker-Griffin, seconded by Council Member Kelley, to approve the 2024 Council Appointments to Regional Committees and Council Subcommittees list with the additional changes. The motion carried by the following vote:

Aye: D. Bailey, T. Grimsley, C. Kelley, D. Romero, and A. Walker-Griffin5 -

2. 22-736
Adopt A Resolution To Establish A Classification Title And Salary Range For Parking Enforcement Officer As Full-Time Classification RECOMMENDATION:

It is recommended that the City Council:

1. Approve a resolution to establish a classification title and salary range for Parking Enforcement Officer as full-time classification; or

2. Alternatively, provide staff with other directions.

Staff Report - Parking Enforcement Officer
Attach 1 - Resolution
Attach 2 - Parking Enforcement Officer Job Description
Attach 3 - Salary Schedule
Attachments:

Chief Joseph Vasquez introduced and presented the item. Council asked questions and provided comment. Chief Vasquez provided a response. No public comment. Action was taken on this item.

MOTION: A motion was made by Council Member Kelley, seconded by Council Member Bailey, to approve Resolution 24-002. The motion carried by the following vote:

Aye: D. Bailey, T. Grimsley, C. Kelley, D. Romero, and A. Walker-Griffin5 - XIV. PUBLIC COMMUNICATIONS
NONE
This time is reserved for members of the public who were unavailable to attend the Public Communications period during Section X of the meeting, or were unable to speak due to lack of time. The public speaker requirements specified in Section X of this Agenda apply to this Section.

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

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

1. Regional Committee

2. City Council Committees and Subcommittees

3. Commission Liaisons
City Manager, Dante Hall, provided an over view on upcoming City Council

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36 January 9, 2024City Council Meeting Minutes
meetings and promoted the upcoming Crab Feed. City Attorney, Patrick Tang, had no announcements.

1. Regional Committee:

Council Member Bailey reported out on the December West Contra CostaTransportation Advisory Committee(WCCTAC)

2. City Council Committees and Subcommittees:

No reports were given.

3. Commission Liaisons:

No reports were given.

Community Events-
Council Members reported out on events that they attended through out the City and County.

Future Agenda Items-
Council Member Walker-Griffin requested a discussion on the City hosting a "Welcome Baby Event".

Council Member Bailey had two Future Agenda Item requests:

1. A discussion on revisiting our current policy on accepting public comment via Zoom and providing an update.

2. A discussion and update on Business License regarding invoices and business license fees that the City charges. Possibly including a grace period if the business owner has not received an invoice.

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37 January 9, 2024City Council Meeting Minutes
XVI. ADJOURNMENT
Mayor Romero closed the meeting in memory of Anton Jungherr and Oakland Police Officer Tuan Le. Mayor Romero adjourned the meeting at 8:06 P.M.
_________________________________
Dan Romero, Mayor
Attest:
_______________________________
Eibleis Melendez, City Clerk

Page 6 ends

38 CONSENT CALENDAR

AGENDA ITEM

2. 22-761

39 111 Civic Drive
Hercules, CA 94547City of Hercules
Meeting Minutes
City Council
Mayor Dan Romero
Vice Mayor Dion Bailey
Council Member Alex Walker-Griffin
Council Member Chris Kelley
Council Member Tiffany Grimsley
Dante Hall, City Manager
Patrick Tang, City Attorney
Eibleis Melendez, City Clerk
7:00 PMTuesday, January 23, 2024
In-Person in Council Chambers or To Watch or Listen only:

Zoom ID: 824 9273 1099
Zoom Passcode: 683606
Zoom Phone Number: 1-669-444-9171
I. CLOSED SESSION – CALL TO ORDER - ROLL CALL - NONE
NONE
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS - NONE
NONE
III.

CONVENE INTO CLOSED SESSION - NONE
The Hercules City Council will meet in Closed Session regarding the following:

NONE
IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

Council Member C. Kelley, Council Member T. Grimsley, Council Member A.

Walker-Griffin, Mayor D. Romero, and Vice Mayor D. Bailey

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

NO CLOSED SESSION
NONE
VI. PLEDGE OF ALLEGIANCE
Council Member Grimsley lead the Pledge of Allegiance.

Page 1 ends

22-761
40 January 23, 2024City Council Meeting Minutes
VII.

MOMENT OF SILENCE
Mayor Romero held a Moment of Silence for a close friend that passed away.

VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS
The City of Hercules Would like to Recognize the following for the Month of February:

Black History Month - February 1st, 2024
National Freedom Day - February 1st, 2024
Chinese Lunar New Year - February 10th, 2024
Mayor Romero recognized the groups and days for the upcoming month of February.

IX. AGENDA ADDITIONS/DELETIONS
NONE
X. PUBLIC COMMUNICATIONS
NONE
This time is reserved for members of the public to address issues not included in the agenda. In accordance with the Brown Act, Council will refer to staff any matters brought before them at this time, and those matters may be placed on a future agenda.

XI. PUBLIC HEARINGS

1. 22-748
Zoning Code amendments to implement the State law pertaining to emergency shelters and low barrier navigation centers. Amendments to Hercules Municipal Code (Table 13-6.1), Chapter 13-35 (Sec.13-35.258.

Emergency Shelters), and Chapter 13-60 Definitions, pursuant to California Assembly Bill 2339. Amendments to Hercules Municipal Code (Table 13-12.1,13-15.1 and 13-18.1), Chapter 13-35 (Sec.13-35-260, Family Day Care Homes, proposed to be modified to Low-Barrier Navigation Centers), and Chapter 13-60. Definitions, pursuant to California Assembly Bill 101.

RECOMMENDATION:

Staff recommends that the City Council approve the proposed ordinance amendments, which, consistent with State law requirements, generally

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41 January 23, 2024City Council Meeting Minutes
accomplish the following:
·
Update Hercules Municipal Code pursuant to State law, including:
o Add Emergency Shelters as a Permitted (P) Land Use in RM-L Residential Multifamily Low Density Zoning Districts Table 13-6.1. o Modify emergency shelter objective standards in Sec.13-35.258 o Modify the “Emergency Shelters” definition in Chapter 13-60 Definitions.
o Add Low-Barrier Navigation Center as a Permitted (P) Land Use to Historic Town Center District (HTC) Table 13-12.1, Planned Commercial Residential Mixed-Use District (PC-R) Table 13-15.1 and New Town Center District (NTC) Table 13-18.1.
o Delete Sec.13-35.260. Family Day Care Homes and replace with Sec.13-35-260 Low-Barrier Navigation Center.
o Add “Low-Barrier Navigation Centers” definition to Chapter 13-60 Definitions.

Staff Report - Emergency Shelter - Low Barrier Nav Code Update Attach 1 - Draft Ordinance- Emergency Shelters - Low Barrier Nav Attach 2 - HCD Review of Draft Housing Element
Attachments:

Community Development Director, Tim Rood, introduced and presented the item. Council asked questions and provided comments. Director Rood provided a response. No public comment. Mayor Romero opened the Public Hearing at 7:14pm. No public comment. Action was taken on this item.

MOTION: A motion was made by Council Member Kelley, seconded by Council Member Walker-Griffin, to approve Ordinance 549. The motion carried by the following vote:

Aye: Council Member C. Kelley, Council Member T. Grimsley, Council Member A.

Walker-Griffin, Mayor D. Romero, and Vice Mayor D. Bailey 5 -
XII.

CONSENT CALENDAR

NO ITEMS
XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-750 Development Update
RECOMMENDATION:

Receive a report from staff on the status of major development projects, take public comment, and ask any questions of staff or applicants present.

This item is for information only.

Staff Report - Development Update
Presentation - Development Update
Attach 1 - Ledcor Affordable Housing Accommodation Request Attachments:

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42 January 23, 2024City Council Meeting Minutes
City Manager, Dante Hall, introduced the Item. Community Development Director, Tim Rood, presented. Council asked questions and provided comment. Director Rood and City Manager Hall provided a response. No public comment. This was an information item. No action was taken.

2. 22-751
Professional Services Agreement with Gates & Associates in the amount of $76,450 for the Refugio Valley Park Area and Shade Structure Improvement Project
RECOMMENDATION:

Adopt a Resolution approving a professional services agreement with Gates & Associates in the amount of $76,450 for the Refugio Valley Park Picnic Area and Shade Structure Improvement Project and authorizing the City Manager to execute the agreement on behalf of the City Council.

Staff Report - Refugio Valley Park Picnic Area & Shade Structure Improvements
Attach 1 - Resolution - Refugio Valley Park Picnic Areas & Shade Structures Improvements
Attach 2 - 24-003-CM Gates+Associates Service Agreement - Refugio Valley Park
Attach 2a - Hercules Resumes
Attach 2b - Company Profile - Hercules
Attachments:

Public Work Director, Mike Roberts, introduced and presented the item.

Council asked questions and provided comment. Director Roberts provided a response. No public comment. Action was taken on this item.

MOTION: A motion was made by Council Member Kelley, seconded by Council Member Walker-Griffin, to adopt Resolution 23-003. The motion carried by the following vote:

Aye: Council Member C. Kelley, Council Member T. Grimsley, Council Member A.

Walker-Griffin, Mayor D. Romero, and Vice Mayor D. Bailey 5 -

3. 22-752
Professional Services Agreement with SERA Architecture in the amount of $57,918 for the Police Lobbies Security Improvement Project and Appropriation of $57,918 from the Asset Seizure Fund to fully fund the Agreement
RECOMMENDATION:

Adopt a Resolution approving a professional services agreement with SERA Architecture in the amount of $57,918 for the Police Lobbies Security Improvement Project, appropriating $57,918 from the Asset Seizure Fund to fully fund the Agreement, and authorizing the City Manager to execute the agreement on behalf of the City Council.

Staff Report - Police Lobbies Security Improvement Design Contract Attach 1 Resolution - Police Lobbies Security Improvement Design Contract
Attach 2 - 24-002-CM - SERA Architecture Services Agreement Hercules Police Lobbie
Attach 2a - QUALS - City of Hercules Resumes - 010924
Attachments:

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43 January 23, 2024City Council Meeting Minutes
Public Works Director, Mike Roberts, introduced the item. Police Chief, Joseph Vasquez, presented the item. Council asked questions and provided comment. Director Roberts, Chief Vasquez and Stewart Colby from SERA Architecture, provided a response. No public comment. Action was taken on this item.

MOTION: A motion was made by Vice Mayor Bailey, seconded by Council Member Grimsley, to adopt Resolution 24-004. The motion carried by the following vote:

Aye: Council Member C. Kelley, Council Member T. Grimsley, Council Member A.

Walker-Griffin, Mayor D. Romero, and Vice Mayor D. Bailey 5 -

4. 22-753
Library Starry Cone Leak - DIscuss Options and Recommendation to Approve Amendment N0. 1 with SERA Architecture in the amount of $71,963 to Design a Permanent Repair, for a not-to-exceed total contract amount of $81,369.

RECOMMENDATION:

Discuss options to address the Hercules Library Starry Cone leak and adopt a resolution approving Amendment No.1 with SERA Architecture in the amount of $71,963 to design a permanent repair, for a not-to-exceed total contract amount of $81,369 and authorizing the City Manager to execute the Amendment on behalf of the City Council.

Staff Report - Starry Cone Leak
Attach 1 - Resolution - Story Cone Leak
Attach 2 - Amend #1 23-067-CM SERA Design Contract Amendment 1 Attach 3- 23-067-CM SERA Design Contract Amendment 1
Attach 3a - Quals-City of Hercules Resumes-010924
Attach 4a - Story Cone Testing_Memo_1112023
Attach 4b - Hercules Library Story Cone Markups
Attachments:

Public Works Director, Mike Roberts, introduced and presented the item.

Stewart Colby from SERA Architecture, also provided background and information on the item. Melinda Manzo and Alison Peters provided public comment. Council provided comment and asked questions. Director Roberts, City Manager, Dante Hall and Alison Peters provided a response.

Action was taken on this item. The resolution was not approved but direction was provided by Council.

MOTION: A motion was made by Vice Mayor Bailey, seconded by Council Member Grimsley, to go with Option three, with instructions to Staff to reach out to the library and various associations that support the library, to find a remedy to bring the Starry Cone inside the library. Report back to Council, if possible, with estimated costs. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Mayor D. Romero, and Vice Mayor D. Bailey3 - Nay: Council Member C. Kelley1 -

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44 January 23, 2024City Council Meeting Minutes
Abstain: Council Member A. Walker-Griffin1 -

5. 22-754 1) Consider Approval of a Resolution Authorizing the City Manager to Enter into an Agreement with the Hercules Historical Society to Extend the Trailer Acquisition and Lease Agreement; 2) Review and Provide Direction Regarding a Policy for Lease of City Properties.

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

Staff Report - Historical Society Trailer Lease Extension Attach 1A - Staff Report May 9, 2023 - Historical Society Trailer Lease Extension
Attach 1B - Staff Report February 14, 2023 - HHS Trailer Lease Extension
Attach 2 - February 2023 Interim Month-to-Month Lease HHS Attach 3 - FIRST AMENDMENT TO TRAILER ACQUISITION and

LEASE AGREEMENT
Attach 4 - Resolution Authorizing Amendment to Trailer Acquisition and lease Agreement with HHS
Attach 5 - DRAFT - Public Property Lease Policy
Attachments:

City Attorney, Patrick Tang, introduced and presented the item. Jay Tucker, Hercules Historical Society President, provided public comment.

Council asked questions and provided comment. Attorney Tang provided a response. Action was taken on this item.

MOTION: A motion was made by Council Member Kelley, seconded by Council Member Walker-Griffin, to adopt Resolution 24-005, which includes provision for payment. Proposed lease language to bring back to Council for approval as a Consent item. The motion carried by the following vote:

Aye: Council Member C. Kelley, Council Member T. Grimsley, Council Member A.

Walker-Griffin, Mayor D. Romero, and Vice Mayor D. Bailey 5 -

6. 22-737
Authorization to Establish a Volunteer “Team Up to Clean Up Hercules” Pilot Program
RECOMMENDATION:

Staff recommends that the City Council:

1. Adopt a resolution establishing a six-month Volunteer “Team Up to Clean Up Hercules” Pilot Program; and

2. Appropriate $1,500 from the FY 2023-2024 General fund for the pilot program expenditures, or

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45 January 23, 2024City Council Meeting Minutes

3. Provide alternative directions.

Staff Report - Establishment of the Team Up to Clean Up Community Volunteer Pilot Program
Attach 1 - Resolution Authorizing “TEAM UP TO CLEAN UP
HERCULES” Pilot Program
Attach 2 - Draft “TEAM UP TO CLEAN UP HERCULES” Pilot Program Guidelines
Attach 3 - Liability Waiver
Attachments:

City Manager, Dante Hall, Introduced and presented this item. Council asked questions and provided comment. City Manager Hall provided a response. No public comment. Action was taken on this item.

MOTION: A motion was made by Council Member Grimsley, seconded by Council Member Kelley, to adopt Resolution 24-006. The motion carried by the following vote:

Aye: Council Member C. Kelley, Council Member T. Grimsley, Council Member A.

Walker-Griffin, Mayor D. Romero, and Vice Mayor D. Bailey 5 -
XIV. PUBLIC COMMUNICATIONS
NONE
This time is reserved for members of the public who were unavailable to attend the Public Communications period during Section X of the meeting, or were unable to speak due to lack of time. The public speaker requirements specified in Section X of this Agenda apply to this Section.

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

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

1. Regional Committee

2. City Council Committees and Subcommittees

3. Commission Liaisons
City Manager, Dante Hall, had no announcements. City Manager Hall invited Recreation Director, Christopher Roke, to the podium to advertise upcoming events in his department. City Attorney, Patrick Tang, had no announcements.

1. Regional Committees:

Vice Mayor Bailey reported out on the West County Transit Authority(WestCat) meeting.

2. City Council Committees and Subcommittees:

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46 January 23, 2024City Council Meeting Minutes
No reports were given

3. Commission Liasons:

No reports were given.

Community Events-
Council Members reported out on events they attended throughout the City and County. They highlighted the Crab Feed and Coffee with a Cop.

Future Agenda Items-
There were no requests for future agenda Items.

XVI. ADJOURNMENT
Mayor Romero adjourned the meeting at 9: 50 P.M.
_________________________________
Dan Romero, Mayor
Attest:
_______________________________
Eibleis Melendez, City Clerk

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47 CONSENT CALENDAR

AGENDA ITEM

3. 22-762

48 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 13, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, AICP, Community Development Director Larissa Alchin, Contract Planner
Christie Crowl, Assistant City Attorney
SUBJECT: Zoning Code amendments to implement the State law pertaining to emergency shelters and low barrier navigation centers. Amendments to Hercules Municipal Code (Table 13 -6.1), Chapter 13-35 (Sec.13-

35.258. Emergency Shelters), and Chapter 13 -60 Definitions, pursuant to California Assembly Bill 2339. Amendments to Hercules Municipal Code (Table 13-12.1,13-15.1 and 13-18.1), Chapter 13-35 (Sec.13-35-260, Family Day Care Homes, pr oposed to be modified to Low-Barrier Navigation Centers), and Chapter 13-60. Definitions, pursuant to California Assembly Bill 101.

RECOMMENDED ACTION:

Staff recommends that the City Council approve the proposed ordinance amendments, which, consistent with State law requirements, generally accomplish the following:
 Update Hercules Municipal Code pursuant to State law, including:
o Add Emergency Shelters as a Permitted (P) Land Use in RM-L Residential Multifamily Low Density Zoning Districts Table 13-6.1.
o Modify emergency shelter objective standards in Sec.13-35.258 o Modify the “Emergency Shelters” definition in Chapter 13-60 Definitions. o Add Low-Barrier Navigation Center as a Permitted (P) Land Use to Historic Town Center District (HTC) Table 13 -12.1, Planned Commercial Residential Mixed-Use District (PC-R) Table 13-15.1 and New Town Center District (NTC) Table 13-18.1.
o Delete Sec.13-35.260. Family Day Care Homes and replace with Sec.13- 35-260 Low-Barrier Navigation Center.
22-762
49 o Add “Low -Barrier Navigation Centers” definition to Chapter 13 -60 Definitions.

EXECUTIVE SUMMARY:

This staff report evaluates the amendments necessary for the City of Hercules to be in compliance with California Assembly Bills No. 2339 (AB 2339) and No. 101 (AB 101), both enacted to address the homelessness crisis in the State. The City of Hercules must enact amendments to zoning regulations, land use tables, and definitions to align with the provisions of AB 2339 and AB 101. These changes will enable the City to address homelessness effectively while ensuring compliance with State legislation.

This ordinance amendment was introduced at the January 23, 2024 regular City Council meeting.

BACKGROUND:

California Assembly Bill No. 2339 (AB 2339) – Emergency Shelters

AB 2339 amends Sections 65583 and 65863 of the Government Code relating to land use, effective January 1, 2023. The bill revises the requirements of the housing element in connection with zoning designations that allow residential use, including mixed -use, where emergency shelters are allowed as a permitted use without a conditional use o r another discretionary permit such as an administrative use permit. The bill deletes language regarding emergency shelter standards in relation to residential and commercial developments and instead requires that emergency shelters only be subject to spec ified written, objective standards.

AB 2339 uses the definition for emergency shelters found in the Health and Safety Code (HSC) Section 5080 1, which defines “Emergency shelter” as “housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inabili ty to pay.” The bill also specifies that emergency shelters shall include other interim interventions, including, but not limited to, navigation centers, bridge housing, and respite or recuperative care.

AB 2339 requires the City to identify zoning designations where emergency shelters are a permitted use and which include sites that meet at least one of the following prescribed standards:

1. Vacant and zoned for residential use;

2. Vacant sites zoned for nonresidential use that allow residential development, if the local government can demonstrate how the sites with this zoning designation that are being used to satisfy the requirements are located near amenities and services 50 that serve people experiencing homelessness, which may include health care, transportation, retail, employment, and social services, or that the local government will provide free transportation to services or offer services onsite; or

3. Nonvacant sites zoned for residential use or for nonresidential use that allow residential development that are suitable for use as a shelter in the current planning period, or which can be redeveloped for use as a shelter in the current planning period. A nonvacant site with an existing use shall be presumed to impede emergency shelter development absent an analysis based on substantial evidence that the use is likely to be discontinued during the planning period. The analysis shall consider current market demand for the current uses, market conditions, and incentives or standards to encourage shelter development.

The bill also require s that Emergency Shelters, a category that includes other interim interventions, including but not limited to navigation center s, bridge housing, and respite or recuperative care, shall only be subject to the following written, objective standards:

 The maximum number of beds or persons permitted to be served nightly by the facility.
 Sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone.  The size and location of exterior and interior onsite waiting and client intake areas.  The provision of onsite management.
 The proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart.
 The length of stay.
 Lighting.
 Security during hours that the emergency shelter is in operation.

California Assembly Bill No. 101 (AB 101) – Low Barrier Navigation Centers

AB 101 was signed into law in 2019 to address the growing homelessness crisis in California. AB 101 creates a particular category of homeless shelters called “Low Barrier Navigation Centers” (LBNC), the development of which is a “use by right” in areas zoned for mixed-use and nonresidential zones permitting multifamily uses if it meets specified requirements. “Use by right ” or “Permitted” use means that the development is ministerially approved through a streamlined process and exempt from review under the California Environmental Quality Act . An LBNC is unique from other homeless shelters , as it is a Housing First, low -low barrier, service-enriched shelter focused on moving people into permanent housing while providing temporary living facilities and connecting individuals to basic resources and services such as income, public benefits, and health services.
51 “Low barrier” means best practices to reduce barriers to entry and may include, but is not limited to, the following:

1. The presence of partners if it is not a population-specific site, such as for survivors of domestic violence or sexual assault, women, or youth.

2. Allowing of pets.

3. The storage of possessions.

4. Privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms.

The bill requires an LBNC to be a use by right in areas zoned for mixed -use an d nonresidential zones permitting multifamily uses if it meets specified requirements, including:

 Connected Services: It offers services to connect people to permanent housing through a services plan that identifies services staffing.  Coordinated Entry System: Use of a coordinated entry system (i.e. Homeless Management Information System).
 Code Compliant: Use of Housing First according to Welfare and Institutions Code section 8255. (Gov. Code Section 65662.)
 Homeless Management Information System: It ha s a system for entering information regarding client stays, client demographics, client income, and exit destination through the local Homeless Management Information System, as defined by Section 578.3 of Title 24 of the Code of Federal Regulations.

DISCUSSION:

AB 2339

On June 2, 2023, the Department of Housing and Community Development (HCD) provided comments to the city following a review of the City of Hercules 6th Cycle (2023- 2031) Revised Draft Housing Element. HCD noted they could not find the housing element in compliance until it demonstrates that a zone with sufficient capacity is available to permit emergency shelters without discretionary action.

Therefore, following guidance from HCD, HMC Chapter 13-6 Residential Districts (Table 13-6.1) shall be amended to allow Emergency Shelters as Permitted Use (P) in the Residential Multifamily Low Density (RM-L) zoning district requiring no subjective review, hearing, or noticing.

Additionally, the definition of “Emergency Shelters” within HMC Chapter 13-60 Definitions shall also be amended to the following:

52 “Emergency Shelters” shall mean housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. Emergency shelters shall include other interim interventions, including, but not limited to, navigation centers, bridge housing, and respite or recuperative care.

Emergency shelter objective standards contained in HMC Sec. 13-35.258 generally comply with the requirements of AB 2339, except for number 5, which states.

An emergency shelter operations/management plan shall be prepared and shall be subject to the review and approval of the Community Development Director, or th eir designee. Such plan shall include provisions for staff training, neighborhood outreach, adequate security measures to protect shelter residents and surrounding uses, screening of clients to ensure compatibility with proposed services provided, counseling (particularly for assisting in finding permanent housing and a source of income), training and treatment programs for clients, drug and alcohol dependency referrals, and an exit strategy.

Under State law, emergency shelters may only be subject to the development and management standards that apply to residential or commercial development within the same zone, except that a local government may apply written, objective standards that include all of the following:

 Maximum number of beds or persons permitted to be served nightly by the facility.  Sufficient parking to accommodate all staff working in the emergency shelter, provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone.  Size and location of exterior and interior on-site waiting and client intake areas.  Provision of on-site management.
 Proximity to other emergency shelters, provided that emergency shelters are not required to be more than 300 feet apart.
 Length of stay.
 Lighting.
 Security during the hours that the shelter is in operation.

Emergency shelter standards must be objective, encourage and facilitate shelter approval, and may not be applied in a manner that renders shelter development infeasible. As such, HMC Sec. 13 -35.258(5) shall be deleted as it is not objective and goes beyond the provisions of on-site management.

Concurrently, staff recommends replacing HMC Sec. 13 -35.258(5) with a new parking standard in compliance with AB 2339.

The emergency shelter shall provide on-site parking at a rate of one (1) space per 1,000 square feet of gross floor area or one (1) space per employee, provided that 53 the standard does not require more parking for emergency shelters than other residential or commercial uses within the same zone.

AB 101

To comply with AB 101 , all mixed-use and nonresidential zones permitting multifamily shall be amended to allow Low-Barrier Navigation Centers as a Permitted (P) Land Use.

The zoning districts subject to the requirement include all commercial and residential mixed-use districts that currently permit multifamily residential: (1) Historic Town Center District (HTC), (2) Planned Commercial Residential Mixed -Use District (PC -R), and (3) New Town Center District (NTC) . Hercules has no nonresidential zoning districts permitting multifamily, with approval of an Administrative Use Permit or Conditional Use Permit; therefore, no changes are required to existing nonresidential zones.

As a result, Historic Town Center District (HTC) Table 13 -12.1, Planned Commercial Residential Mixed -Use District (PC -R) Table 13 -15.1, and New Town Center District (NTC) Table 13-18.1. Land Use Regulations tables will be amended to add Low -Barrier Navigation Centers as a Permitted (P) land use, requiring no subjective review, hearing, or noticing. The amendment will also add a cross -reference to Chapter 13 -35 Specific Land Use Requirements in those tables.

The proposed amendment will delete the Specific Land Use Requirements related to Family Day Care Homes found in Sec. 13-35.260, which are no longer applicable, according to the Keeping Kids Close to Home Act and previous zoning amendments adopted on January 10, 2023, and replace them with Low-Barrier Navigation Center standards below.

Sec. 13-35.260 Low-Barrier Navigation Center
A low-barrier navigation center located within a zoning district in which it is allowed shall operate in a manner that is consistent with the requirements and allowances of state law, specifically Article 12 of Chapter 3 of Division 1 of Planning and Zoning Law commencing with California Government Code Section 65660.

1. Permit Required. A planning permit is required prior to establishment of any low-barrier navigation center project. The permit shall be a ministerial action without discretionary review or a hearing. The City shall notify a developer whether the developer’s application is complete within 30 days, pursuant to 54 California Government Code Section 65943. Action shall be taken within 60 days of a complete application being filed.

2. Development and Operational Standards. A low-barrier navigation center development is a use by-right in areas zoned for mixed-use and nonresidential zones permitting multifamily uses, if it meets the following requirements:

A. Connected Services. It offers services to connect people to permanent housing through a services plan that identifies services staffing.

B. Coordinated Entry System. It is linked to a coordinated entry system, so that staff in the interim facility or staff who co-locate in the facility may conduct assessments and provide services to connect people to permanent housing. “Coordinated entry system” means a centralized or coordinated assessment system developed pursuant to Section 576.400(d) or Section 578.7(a)(8), as applicable, of Title 24 of the Code of Federal Regulations, as those sections read on January 1, 2020, and any related requirements, designed to coordinate program participant intake, assessment, and referrals.

C. Code Compliant. It complies with Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.

D. Homeless Management Information System. It has a system for entering information regarding client stays, client demographics, client income, and exit destination through the local Homeless Management Information System, as defined by Section 578.3 of Title 24 of the Code of Federal Regulations.

Lastly, a definition of “Low-Barrier Navigation Centers” will be added within HMC Chapter 13-60 Definitions section as follows:
“Low-Barrier Navigation Centers” shall mean a housing-first, low-barrier, service- enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. “Low barrier” means best practices to reduce barriers to entry, and may include, but is not limited to, the following:
55 (1) The presence of partners if it is not a population-specific site, such as for survivors of domestic violence or sexual assault, women, or youth. (2) Pets.
(3) The storage of possessions.
(4) Privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms.

FISCAL IMPACT:

There is no fiscal impact associated with this action.

ENVIRONMENTAL DETERMINATION
Pursuant to Section 15001 of the California Environmental Quality Act (CEQA) Guidelines, this ordinance is exempt from CEQA in that this ordinance is not a “project” within the meaning of Section 15378 of the CEQA Guidelines, because it is an administrative activity , has no potential for resulting in physical change in the environment, as the amendments address the process by how development applications are processed and reviewed and does not itself encourage physical development; and this ordinance is not subject to CEQA under the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

ATTACHMENTS:

Staff Report - Emergency Shelters and Low Barrier Navigation Centers Attach 1 – Draft Ordinance
Attach 2 – HCD Review of Draft Housing Element dated June 2, 2023

56 ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERCULES AMENDING PROVISIONS OF HERCULES MUNICIPAL CODE (TABLE 13 -6.1), CHAPTER 13 -35 (SEC.13-35.258. EMERGENCY SHELTERS), AND CHAPTER 13 -60. DEFINITIONS, PURSUANT TO CALIFORNIA ASSEMBLY BILL 2339, AND AMENDING PROVISIONS OF HERCULES MUNICIPAL CODE (TABLE 13-12.1,13-15.1 AND 13-18.1), CHAPTER 13-35 (SEC. 13 -35.260. LOW -BARRIER NAVIGATION CENTER S), AND CHAPTER 13-60 DEFINITIONS, PURSUANT TO CALIFORNIA ASSEMBLY BILL 101.

WHEREAS, on September 28, 2022, Assembly Bill 2339 was approved by the Governor of the State of California and filed with the Secretary of State, amending Sections 65583 and 65863 of the Government Code relating to land use, specifically amending State Housing Eleme nt Law regarding the identification of zones and sites for emergency shelters; and

WHEREAS, the changes made to the Government Code by Assembly Bill 2339 took effect on January 1, 2023; and

WHEREAS, Assembly Bill 2339 applies to housing elements or amendments to the housing element prepared pursuant to subdivision (e) of Section 65588 or Section 65584.02, when a city, county, or city and county submits a draft to the Department for review pursuant t o Section 65585 more than 90 days after the effective date of the amendment; and

WHEREAS, the City of Hercules submitted its third revised draft Housing Element update for the 6 th Cycle (2023 -31) to the California Department of Housing and Community Development for review on November 13, 2023; and

WHEREAS, Assembly Bill 2339 requires local jurisdictions to identify zoning designations where emergency shelters are a permitted use without a conditional use or another discretionary permit; and

WHEREAS, Assembly Bill 2339 allows local agencies to impose only objective standards consistent with the bill’s provisions; and

WHEREAS, on July 31, 2019, Assembly Bill 101 was approved by the Governor of the State of California and filed with the Secretary of S tate, amending Sections 30035.7, 65400, 65585, and 65913.4 of, to add Sections 65589.9 and 65589.11 to, and to add and repeal Article 12 (commencing with Section 65660) of Chapter 3 of Division 1 of Title 7 of, the Government Code, to amend Sections 50199. 8, 50517.5, 50517.6, 50517.7, 50650, 50650.3, 50650.4, 50843.5, and 53545.13 of, to add Chapter 6 (commencing with Section 50216) to Part 1 of Division 31 of, to add Chapter 3.1 (commencing with Section 50515) to Part 2 of Division 31 of, and to add and Pa rt 12.5 (commencing with Section 53559) to Division 31 of, the Health and Safety Code, to add Sections 75218.1 and 75244 57 to the Public Resources Code, to amend Sections 12206, 17058, 17561, 23610.5, and 24692 of the Revenue and Taxation Code, and to amend Section 8256 of the Welfare and Institutions Code, relating to housing; and

WHEREAS, the changes made to the Government Code by Assembly Bill 101 took effect immediately; and

WHEREAS, Assembly Bill 101 creates a special category of homeless shelters called “Low Barrier Navigation Centers ,” the development of which is a “use by right” in areas zoned for mixed -use and nonresidential zones permitting multifamily uses if it meets specified requirements.

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

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

SECTION 2. ENVIRONMENTAL REVIEW. Under Public Resources Code Section 15001 of the California Environmental Quality Act (CEQA) Guidelines, this ordinance is exempt from CEQA in that this ordinance is not a “project” within the meaning of Section 15378 of the CEQA Guidelines, because it is an administrative activity has no potential for resulting in physical change in the environment, as the amendments address the process by how development applications are processed and reviewed and does not itself encourage physical development; and this o rdinance is not subject to CEQA under the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, as such the adoption of the ordinance is exempt from CEQA.

SECTION 3. AMENDMENTS. That the City Council of the City of Hercules does hereby amend Hercules Municipal Code Title 13, to read as follows:

Table 13-6.1 Land Use Regulations: Residential District RS-E RS-L RM-L RM-M RM-H See Also
Residential
Single-Family Home A A C C —
Duet (Single-Family Attached) — — A A —
Duplex — — A A —
Multifamily Dwelling — — C C C
58 Table 13-6.1 Land Use Regulations: Residential District RS-E RS-L RM-L RM-M RM-H See Also
Townhouse/Condominium — — C C C
Two-Unit Development P P — — — Chapter 13-36
Mobile Home A A A A —
Accessory Uses and Structures A(1) A(1) A(1) A A Section 13-

35.210

Rooming and Boarding Houses
(4 or less people)
A A A C —
Rooming and Boarding Houses
(5 or more people)
— — C C —
Family Daycare (14 or fewer
children)

P P P P P

Accessory Dwelling Unit P P P P P Section 13-

35.320

Senior Housing C C C C C
Emergency Shelter — — P — — Section 13-

35.258
Single-Room Occupancy Units — — — — —

Supportive Housing (Apartment
Type)
— — P P P
Supportive Housing (Residential
Care Facility Small Type)

A A P P P
Supportive Housing (Residential
Care Facility Large Type)
— — P P P
Residential Care Facility (6 or
fewer residents)
A A A A —
59 Table 13-6.1 Land Use Regulations: Residential District RS-E RS-L RM-L RM-M RM-H See Also
Residential Care Facility (7+
residents)
— — — C C
Transitional Housing (Apartment
Type)
— — A A C
Transitional Housing (Residential
Care Facility Small Type)
A A C C —
Transitional Housing (Residential
Care Facility Large Type)

A A C C C
Commercial Uses
Home Occupation A A A A A Section 13-

35.270
Bed and Breakfast Inns C C C C — Section 13-

35.250
Public and Quasi-Public Uses
Clubs and Lodges — — C C C
Libraries, Museums and Galleries — — C C C
Park and Recreation Facilities A A A A A
Public Safety Facilities A A A A A
Religious Assembly C C C C C
Schools, Public or Private C C C C —
Utility Facilities C C C C —

Key to Land Use Regulations
A Administrative Use Permit Required
60 Table 13-6.1 Land Use Regulations: Residential District RS-E RS-L RM-L RM-M RM-H See Also
C Conditional Use Permit Required
DR Design Review Required
P Permitted Use
— Use Not Allowed
(1)Single story detached accessory structures under 120 square feet total on site are exempt from use permit requirements.

Table 13-12.1 Land Use Regulations: HTC Historic Town Center HTC See Also
Commercial Uses
Retail Stores
2,000 sq ft or less A
More than 2,000 sq ft C
Grocery and/or Liquor C
Home Occupation A
Bed and Breakfast Inn/Hotel C
Outdoor Retail Sales and Services
Permanent C
Temporary A
Recreation and Entertainment C
Restaurants, Delicatessens and Bars A
With Liquor Service C
61 Table 13-12.1 Land Use Regulations: HTC Historic Town Center HTC See Also
Services and Offices
Banks and Other Financial Services A
Business and Personal Services A
Business and Professional Offices A
Residential Uses
Caretaker, Guest and Employee Housing A
Multifamily Dwelling A
Townhouse/Condominium A
Planned Unit Development A
Rooming and Boarding Houses C
Family Daycare Home (14 or fewer children) P

Senior Housing C
Single-Room Occupancy Units C Section 13-35.332
Supportive Housing (Apartment Type) P
Transitional Housing (Apartment Type) A
Low Barrier Navigation Center P Section 13-35.260

Public and Quasi-Public Uses
Daycare Facilities (for employees, visitors
and passengers)
A
Government Offices A
Libraries, Museums and Galleries A
62 Table 13-12.1 Land Use Regulations: HTC Historic Town Center HTC See Also
Park and Recreation Facilities A
Public Safety Facilities C

Accessory Uses and Structures A(1)

Key to Land Use Regulations
A Administrative Use Permit Required
C Conditional Use Permit Required
P Permitted Use
(1) Facility or use is directly related to the primary use of site.

Table 13-15.1 Land Use Regulations: PC-R Planned Commercial Residential Mixed-Use District
PC-R See Also
Commercial Uses
Home Occupation A
Recreation and Entertainment C
Retail Sales
Outdoor Sales C
Retail Stores
2,000 sq ft or less A
More than 2,000 sq ft C
63 Table 13-15.1 Land Use Regulations: PC-R Planned Commercial Residential Mixed-Use District
PC-R See Also
Restaurants and Delicatessens A
With Liquor Service C
Shopping Centers C
Services and Offices
Athletic Clubs C
Business Services A
Hotel C
Offices and Banks A
Personal Services A

Residential Uses
Accessory Dwelling Unit P Section 13-35.320
Caretaker, Manager and Employee Housing A
Family Daycare Home (14 or fewer children) P

Live-Work Units A
Multifamily Dwellings A
Townhouse/Condominiums A
Planned Unit Development A
Supportive Housing (Apartment Type) P
Transitional Housing (Apartment Type) A
Low Barrier Navigation Center P Section 13-35.260
64 Table 13-15.1 Land Use Regulations: PC-R Planned Commercial Residential Mixed-Use District
PC-R See Also
Public and Quasi-Public Uses
Daycare Facilities (for employees and visitors) A
Government Offices A
Libraries, Museums and Galleries A
Public Safety Facilities A
Urgent Medical Care C
Utility Facilities C

Accessory Uses and Structures A(1)

Key to Land Use Regulations
A Administrative Use Permit Required
C Conditional Use Permit Required
P Permitted Use
(1)Facility or use is directly related to the primary use of site.

Table 13-18.1 Land Use Regulations: NTC District
NTC
Commercial Uses
Recreational Facilities
65 Table 13-18.1 Land Use Regulations: NTC District
NTC
Athletic Clubs A
Other Commercial Athletic Facilities C
Retail Sales
Convenience Stores C
Dry Cleaners and Laundries C
Furniture, Furnishings, and Hardware Stores C
Grocery and Liquor C
Outdoor Retail Sales and Services
Permanent C
Temporary A
Recreation and Entertainment C
Restaurant, Delicatessen, and Bar A
With Liquor Service C
Retail Stores
2,000 sq ft or less A
More than 2,000 sq ft C
Services and Offices
Business Support Services A
Hotels, Motels, Inns C
Medical
Medical and Dental Clinics and Services A
66 Table 13-18.1 Land Use Regulations: NTC District
NTC
Offices and Banks
2,000 sq ft or less A
More than 2,000 sq ft C
Personal Services A
Video/Media Rentals C

Public and Quasi-Public Uses
Daycare Facilities (for employees, residents and
passengers)
A
General Daycare C
Government Offices A
Libraries, Museums and Galleries C
Park and Recreational Facilities A
Public Safety Facilities A
Transit Facilities
BART Stations C
Transit Transfer Stations C
Transit Malls C
Transit Offices and Support Facilities C
Utility Facilities C
Residential Uses
67 Table 13-18.1 Land Use Regulations: NTC District
NTC
Caretaker, Guest, and Employee Housing A
Multifamily Dwelling A
Townhouse/Condominium A
Planned Unit Development A
Family Daycare Home (14 or fewer children) P
Supportive Housing (Apartment Type) P
Transitional Housing (Apartment Type) A
Low Barrier Navigation Center P Section 13-

35.260
Accessory Uses and Structures A(1)

Key to Land Use Regulations
A Administrative Use Permit Required
C Conditional Use Permit Required
P Permitted Use
(1) Facility or use is directly related to the primary use of site.

Chapter 13-35. Specific Land Use Requirements
Sec. 13-35.258 Emergency Shelters.

An emergency shelter located within a zoning district in which it is allowed shall comply with all development and performance standards of that zoning district, as well as the following performance and design standards:

1. Emergency shelters are limited to a maximum of 30 beds/persons facility. The California Building Code defines minimum sizes based on included private amenities. 68 2. Occupancy by an individual or family may not exceed 180 days in any 365-day period unless the management plan provides for longer residency by those enrolled and regularly participating in a training or rehabilitation program.

3. A waiting area shall be provided which contains a minimum of 10 square feet per bed provided at the facility. The waiting area shall be in a location not adjacent to the public right-of-way, shall be visually screened from public view, and if located outside, shall provide consideration for shade/rain conditions.

4. On-site management and on -site security shall be provided during all hours during which the emergency shelter is in operation.

5. An emergency shelter operations/manage ment plan shall be prepared and shall be subject to the review and approval of the Community Development Director, or their designee. Such plan shall include provisions for staff training, neighborhood outreach, adequate security measures to protect shelter residents and surrounding uses, screening of clients to ensure compatibility with proposed services provided, counseling (particularly for assisting in finding permanent housing and a source of income), training and treatment programs for clients, drug a nd alcohol dependency referrals, and an exit strategy. The emergency shelter shall provide on-site parking at a rate of one (1) space per 1,000 square feet of gross floor area or one (1) space per employee, provided that the standard does not require more parking for emergency shelters than other residential or commercial uses within the same zone.

6. The facility may provide the following services in designated areas separate from sleeping areas:

A. A counseling center for job placement, education, health care, legal, or mental health services.

B. Laundry facilities to serve the clients at the shelter.

C. Central cooking and dining area(s).

D. Client storage area (for the overnight storage of bicycles and personal items).

E. Play/recreational areas for family shelters.
69 7. An emergency shelter shall not be located within 300 feet of another emergency shelter, as measured from property line to property line.

Sec. 13-35.260 Family Day Care Homes. Low-Barrier Navigation Center Family day care homes are permitted by use permit according to the size of the facility. A small family day care home with a maximum attendance of 6 or less children (with special allowances to allow up to 8 children) is considered a residential use of the property and shall be permitted by a nondiscretionary administrative use permit without imposition of any fees or taxes as per Section 1597.45 of the Health and Safety Code.

A large family day care home for 7 to 12 children (with special allowances to all ow up to 14 children) requires an administrative use permit as consistent with Section 1597.46 of the Health and Safety Code. The permit shall expire 2 years after the date of issuance or if the day care operator’s State license expires or is revoked. The facility shall meet the following standards, the standards for family day care homes pursuant to Section 1596.70 et seq. of the Health and Safety Code, and other applicable State requirements.

1. All family day care homes shall comply with the property development and performance standards for the zoning district in which it is located and the Citywide standards set forth in Division III.

2. A large family day care home shall not be located within 300 feet of another large family day care home property line.

3. Outdoor play areas shall be provided in the rear or side yards for all large family day care homes and shall be enclosed by a solid hedge, wall or fence 6 feet high. All outdoor play areas shall be separated from driveways, streets and parking areas.

4. Large family day care homes shall provide adequate on -site parking as per Chapter 13-33.

5. Large family day care homes shall provide adequate areas for the safe pick -up and drop-off of children. These areas shall be off-street in a driveway, turnaround, or parking area.
70 6. A large family day care home within a residentially zoned area may operate up to 14 hours per day with outdoor activities limited to daylight hours between 8:00 a.m. and 8:00 p.m. in order to limit noise impacts to neighboring residents.

7. All family day care homes shall obtain necessary State licenses and shall be operated in conformance with all applicable state and local regulations. If there are any conflicts between local standards within the Zoning Ordinance and State requirements for day care facilities, the State requirements shall take precedence. [Ord. 515 § 2, 2018; ZO §

35.260.]
A low-barrier navigation center located within a zoning district in which it is allowed shall operate in a manner that is consistent with the requirements and allowances of state law, specifically Article 12 of Chapter 3 of Division 1 of Planning and Zoning Law commencing with California Government Code Section 65660.

1. Permit Required. A planning permit is required prior to establishment of any low- barrier navigation center project . The permit shall be a ministerial action without discretionary review or a hearing. The City shall notify a developer whether the developer’s application is complete within 30 days, pursuant to California Government Code Sec tion 65943. Action shall be taken within 60 days of a complete application being filed.

2. Development and Operational Standards. A low -barrier navigation center development is a use by -right in areas zoned for mixed -use and nonresidential zones permitting multifamily uses, if it meets the following requirements:

A. Connected Services. It offers services to connect people to permanent housing through a services plan that identifies services staffing.

B. Coordinated Entry System. It is linked to a coordinated entry system, so that staff in the interim facility or staff who co-locate in the facility may conduct assessments and provide services to connect people to permanent housing. “Coordinated entry system” means a centralized or coordinated asses sment system developed pursuant to Section 576.400(d) or Section 578.7(a)(8), as applicable, of Title 24 of the Code of Federal Regulations, as those sections read on January 1, 2020, and any related requirements, designed to coordinate program participant intake, assessment, and referrals.
71 C. Code Compliant. It complies with Chapter 6.5 (commencing with Section 8255) of Division 8 of the Welfare and Institutions Code.

D. Homeless Management Information System. It has a system for entering information regar ding client stays, client demographics, client income, and exit destination through the local Homeless Management Information System, as defined by Section 578.3 of Title 24 of the Code of Federal Regulations.

Chapter 13-60. Definitions
The purposes of th is Division and Chapter are to provide definitions for the terms and phrases used within the Zoning Ordinance. The definitions shall apply throughout the zoning regulations except where the context of the regulation clearly indicates a different meaning. T he Community Development Director shall interpret the meaning of the regulations and definitions as per Section 13-2.400. [Ord. 515 § 2, 2018; ZO § 60.100.] Sec. 13-60.200 Definitions.
“Emergency shelters” shall mean a facility that provides temporary, short -term housing for homeless individuals or families that is limited to occupancy of 180 consecutive days, with minimal supportive services . housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. Emergency shelters shall include other interim interventions, including, but not limited to, navigation centers, bridge h ousing, and respite or recuperative care.
“Low-Barrier Navigation Centers” shall mean a housing-first, low-barrier, service- enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health serv ices, shelter, and housing. “Low barrier” means best practices to reduce barriers to entry, and may include, but is not limited to, the following:
(1) The presence of partners if it is not a population -specific site, such as for survivors of domestic violence or sexual assault, women, or youth. (2) Pets.
(3) The storage of possessions.
(4) Privacy, such as partitions around beds in a dormitory setting or in larger rooms containing more than two beds, or private rooms.

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 72 the validity of the remaining portions of this Ordinance. The Council hereby declares that it would have adopted the Ordinance, and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be deleted.

SECTION 5. EFFECTIVE DATE AND PUBLICATION. The City Clerk shall certify to the adoption of this Ordinance and shall publish or post the Ordinance as required by law. This Ordinance shall be effective thirty (30) days from date of final adoption.

THE FOREGOING ORDINANCE was first read at a regular meeting of the Hercules City Council on the 23rd day of January 2024, and was passed and adopted at a regular meeting of the Hercules City Council on the 13th day of February 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dan Romero, Mayor

Eibleis Melendez
City Clerk

73 STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov

June 2, 2023

Timothy Rood, Director
Community Development Department
City of Hercules
111 Civic Drive
Hercules, CA 94547

Dear Timothy Rood,

RE: City of Hercules’ 6
th Cycle (2023-2031) Revised Draft Housing Element

Thank you for submitting the City of Hercules’ (City) revised draft housing element update that was received for review on April 3, 2023. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered comments from YIMBY Law and Greenbelt Alliance, pursuant to Government Code section 65585, subdivision (c).

The revised draft element addresses many statutory requirements describe in HCD’s March 6, 2023 review; however, revisions will be necessary to substantially comply with State Housing Element Law (Gov. Code, § 65580 et seq.). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

As a reminder, the City’s 6th cycle housing element was due January 31, 2023. As of today, the City has not completed the housing element process for the 6th cycle. The City’s 5th cycle housing element no longer satisfies statutory requirements. HCD encourages the City to revise the element as described above, adopt, and submit to HCD to regain housing element compliance.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

74 Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.

HCD is committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Connor Finney, of our staff, at [email protected].

Sincerely,

Paul McDougall
Senior Program Manager

Enclosure
75 AP
PENDIX

CITY OF HERCULES

The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/planning-and-community-development/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building- blocks and includes the Government Code addressing State Housing Element Law and other resources.

A. Housing Needs Resources and Constraints

1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).)

Fair Housing Enforcement and Capacity: While the element briefly mentions sites were identified in compliance with Government Code section 8899.50 and 65008, identifying sites does not address the extent of these laws. For example, Government Code section 65008 declares any land use action null and void if it has a discriminatory effect.

The element could discuss who the City incorporates these provisions in its land use decision making process. Further, the element should discuss how the City complies with other fair housing related laws. Examples include Government Code sections 11135, 65915 (State Density Bonus Law) and 65589.50 (Housing Accountability Act).

Please see HCD’s affirmatively furthering fair housing (AFFH) (p. 29) at https://www.hcd.ca.gov/planning-and-community-development/affirmatively-furthering- fair-housing.

Identified Sites and AFFH: As noted in prior reviews, the AFFH and sites analysis should address all the income categories of identified sites with respect to location, the number of units by all income groups and how that affects the existing patterns for all components of the assessment of fair housing. If concentration of the Regional Housing Needs Allocation (RHNA) by income group exacerbates existing patterns of segregation, the element must include off-setting programs to promote inclusion and equitable quality of life throughout the community.

Contributing Factors to Fair Housing Issues: The element was not revised to address this finding. Please see HCD's prior review for additional information.

2. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the 76 planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)

Approved/Pending Projects: The housing element establishes the affordability and availability for most pending projects; however, the Hill Town development is listed as including 30 units affordable to moderate income households but still must demonstrate affordability based on actual or anticipated rents, sales prices or other mechanisms ensuring affordability (e.g., deed-restrictions). In addition, the element should also discuss any known barriers to development of the Hill Town development in the planning period such as phasing requirements or build out horizons that go beyond the eight-year planning period.

Suitability of Nonvacant Sites: While the element included additional information on the site selection process, it must still evaluate the extent existing uses impede additional development and demonstrate the potential for redevelopment on nonvacant sites.

Please see HCD’s prior review for additional information and HCD will send sample analyses under separate cover.

Electronic Sites Inventory: As a reminder, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD.

Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and- community-development/housing-elements for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.

Zoning for a Variety of Housing Types:

• Emergency Shelters: While the element revised Program H3-4 to only require sufficient parking to accommodate staff working in the shelter, it appears emergency shelters are allowed only with an administrative use permit– while administrative, apparently it is still a discretionary process. The element must demonstrate emergency shelters are permitted without a conditional use permit or other discretionary action and with sufficient capacity to accommodate the identified need for shelters or include a program to amend the zoning ordinance to meet the statutory requirements. Please note, HCD will not be able to find the housing element in compliance until it is demonstrated that a zone is available to permit emergency shelters without discretionary action.

For your information, Chapter 654, Statutes of 2022 (AB 2339), adds specificity on how cities and counties plan for emergency shelters and ensure sufficient and suitable capacity. Future submittals of the housing element may need to address these statutory requirements. For additional information and timing requirements, please see HCD’s memo at https://www.hcd.ca.gov/sites/default/files/docs/planning- and-community/ab2339-notice.pdf.

77 •
Multifamily Housing: The element was not revised to address this finding. Please see HCD's prior review for additional information.

• Accessory Dwelling Units (ADUs): While Program H2-4 commits to update the City’s ordinance to comply with state law, it includes a timeline for amendment by 2027. Program H2-4 should be revised to commit to a timeline earlier in the planning period (e.g., by 2025).

Electronic Sites Inventory: Pursuant to Government Code section 65583.3, subdivision (b), upon adoption of the housing element, the City must submit an electronic version of the sites inventory with its adopted housing element to [email protected].

Please note, the City must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/community-development/housing-element/index.shtml#element for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.

3. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including… …fees and other exactions required of developers, and local processing and permit procedures... (Gov.

Code, § 65583, subd. (a)(5).).

Processing and Permit Procedures: While the element shows compliance with AB 101, it still does not address the findings required for approval regarding “the area surrounding the project site can be planned and zoned in coordination and substantial compatibility with the proposed development.” As noted on previous reviews, this requirement should be analyzed as a potential constraint on approval certainty and should include a program(s) to address or remove identified constraints.

Housing for Persons with Disabilities: The element was not revised to address this finding. Please see HCD’s prior review for additional information.

4. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including… …requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584... (Gov. Code, § 65583, subd. (a)(6).)

Approval Time and Requests for Lesser Densities: The element was not revised to address this requirement. Please see HCD’s prior review for additional information.

78 B
. Housing Programs

1. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)

As noted in Finding A2, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types.

In addition, Program H2-8 (Development on Nonvacant Sites) should go beyond targeting development once in the planning period and should identify and pursue opportunities at least annually.

2. The Housing Element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderate- income households. (Gov. Code, § 65583, subd. (c)(2).)

Assist in Development Programs: As noted in the previous review, the element must include a program(s) with specific actions and timelines to assist in the development of housing for extremely low-, very low-, low-, and moderate-income households, including specific actions to assist housing for persons with special needs (e.g., farmworkers, elderly, homeless and persons disabilities, including developmental). Please see HCD’s prior review for additional information.

3. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).)

As noted in Findings A3 and A4, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

79 4. P romote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).)

As noted in Finding A1, the element must include a complete assessment of fair housing. Based on the outcomes of that analysis, the element must add or modify programs. As noted in the prior review, goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, metrics, milestones, and geographic targeting and, as appropriate, must address housing mobility enhancement, new housing choices and affordability in higher opportunity areas, place-based strategies for community revitalization and displacement protection.

C. Public Participation:

Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).)

As noted in the prior review, the element must still summarize the public comments and describe how they were considered and incorporated into the element. 80 CONS

ENT CALENDAR

AGENDA ITEM

4. 22-772
81 REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 13, 2024
TO: Mayor and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
SUBJECT: Consideration And Proposed Adoption Of A Resolution Authorizing The City Manager To Execute Amendment No. 2 To The
Professional Services Agreement With Regional Government Services (RGS) For Human Resources Assistance In The Amount Not To Exceed $115,000
RECOMMENDED ACTION:

Staff recommends City Council adopt the attached Resolution and authorize the City Manager to execute Amendment No. 2 in the amount of $115,000 to the Professional Services Agreement with Regional Government Services (RGS) for human resources assistance.

BACKGROUND:

The Hercules Human Resources Division is responsible for a wide range of functions, which include recruitments, managing employee relations, benefits administration, FMLA/medical leaves of absence, performance management and training, and ensuring compliance with labor laws and regulations. The Human Resourc es Division consists of a Human Resources Administrator and a part -time Human Resources Administrative Assistant. The Administrator position has been vacant since November 2023.

On January 17, 2023, the City Manager executed a contract with Regional Government Services (RGS) for an amount not to exceed $50,000 to assist with some immediate needs in human resources. As part of the FY 23 -24 Budget adoption, the Council authorized a $65,000 amendment to the RGS contract to continue addressing Human Resource needs for a total of $115,000 over two fiscal years (Amendment #1). 22-772
82 RGS is a JPA established in 2002 to provide organizational services to California public agencies. RGS has extensive human resources experience in California public agencies and provides a variety of human resources consulting services.

ANALYSIS:

The City continues to face staffing shortages within the Human Resources Division and wishes to expand the scope of the Professional Services Agreement that was executed with RGS. RGS will provide immediate ongoing Human Resources Management consulting services, which include ad hoc consultation and initiation of work on identified priority projects, including but not limited to:

 Provide professional human resources expertise regarding best practice to facilitate the effective and compliant administratio n of City’s human resources policies and practices.
 Analyze a variety of information and recommend appropriate management action; provide written documentation of analysis and recommendations as needed.  Draft specific documentation relevant to resolving a range of personnel issues; facilitate meetings and coach supervisors on conducting sensitive personnel conversations.
 Draft required management communications to employees and facilitate effective interpersonal skills and relationship building.
 Develop and/or update human resources administrative policies, procedures, forms and templates as needed to develop an effective and compliant system of human resources management practices and personnel transactions.  Confer with staff as requested to obtain input and/or feedback regarding policy and procedure recommendations, or to obtain information relevant to the resolution of personnel issues.

Staff is recommending a second amendment to the agreement for an additional $115,000 to provide much-needed assistance to the Human Resources Division for the remainder of FY 23-24.

FISCAL IMPACT:

The estimated fiscal impact of contract amendment Number 2 is for a not-to-exceed amount of $115,000. A combination of salary savings and other costs are being realized through the current vacant positions at approximately $130,000. Based on the estimated timeframe to fill the vacancy it is estimated that the cost savings will be sufficient to offset the increased cost of the contract.

83 ATTACHMENTS:

1. Resolution RGS Contract Amendment #2

2. Contract with RGS for HR Services

3. Amendment # 1 to RGS Human Resources Agreement

4. Adopted FY 2023-24 Budget – RGS Services

5. Amendment # 2 to RGS Human Resources Agreement
84 RESOLUTION NO. ____

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT WITH REGIONAL

GOVERNMENT SERVICES (RGS) FOR HUMAN RESOURCES ASSISTANCE IN THE AMOUNT OF $115,000

WHEREAS, the Hercules Human Resources Division is responsible for a wide range of functions, which include recruitments, managing employee relations, benefits administration, FMLA/medical leaves of absence, performance management and training, and ensuring compliance with labor laws and regulations; and

WHEREAS, the Human Resources Division consists of a Human Resources Administrator and a part -time Human Resources Administrative Assistant . The Administrator position has been vacant since November 2023; and

WHEREAS, On January 17, 2023, the City Manager executed a contract with Regional Government Services (RGS) for an amount not to exceed $50,000 to assist with some immediate needs in human resources; and

WHEREAS, As part of the FY 23-24 Budget adoption, the Council authorized a $65,000 amendment to the RGS contract to continue addressing Human Resource needs; and

WHEREAS, the City continues to face staffing shortages within the Human Resources Division and wishes to expand the scope of the Professional Services Agreement that was executed with RGS; and

WHEREAS, Staff is recommending a second amendment to the agreement for an additional $ 115,000 to provide much -needed assistance to the Human Resources Division for the remainder of FY 23-24.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that the City Council hereby authorizes the City Manager to execute an agreement with RGS for an amount not to exceed $115,000 for Human Resources assistance.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 13th day of February 2024 by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
85 ____________________________
DAN ROMERO, Mayor

ATTEST:

________________________________
Eibleis Melendez, City Clerk
86 CITY OF HERCULES

PROFESSIONAL SERVICES AGREEMENT

This Agreement (“Agreement”) for professional services is made on January 17, 2023, between the City of Hercules, a California municipality (“City”), and Regional Government Services (RGS), a Joint Powers Authority (JPA) Agency (“Consultant”) (individually, a “ Party,” and collectively, the “Parties”).

1. Scope of Services. Consultant will provide to City the professional services described in the Scope of Services, attached as Attachment A and incorporated in this Agreement (the “Services”). Only the City Council or the City Manager may authorize any change or addition to the Scope of Services, in accordance with Section 3.2, specified in Attachment A.

2. Term. This Agreement will become effective on January 17, 2023 (“Effective Date”), and will terminate upon the full and satisfactory completion of the Services or as otherwise specified in Attachment A, unless terminated soone r in accordance with Section 10 of this Agreement .

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

3. Compensation. For the full and satisfactory completion of the Services, City will pay Consultant in an amount not to exceed FIFTY THOUSAND DOLLARS ($50,000), without prior written authorization by City, pursuant to the terms set forth in Attachment A on Payment, which is attached to and incorporated in this Agreement. Consultant’s compensation is intended to encompass all costs required for performing the Services, including overhead and indirect costs.

Except as expressly provided in Attachment A, Consultant will not be entitled to reimbursement for expenses it incurs to provide the Services.

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

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

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

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

Notwithstanding the foregoing and for the avoidance of doubt, In the event that any Consultant employee or subconsultant providing services under this Agreement is deter mined by a court of Agreement No. 23-004-CM
DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 87 competent jurisdiction or the C ity’s Retirement Program (such as CalPERS, a pension plan, or Social Security) to be eligible for enrollment in the Retirement Program as an employee of the City, to the fullest extent of the law, C ity shall indemnify, defend, and hold harmless C onsultant for any Retirement Program contribution payment that City is required as a result to make to the Retirement Program as well as for the payment of any penalties and interest on such payments, if any.

5. Consultant’s Warranties.

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

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

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

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

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

City: Consultant:

City of Hercules Regional Government Services (RGS)
111 Civic Drive P.O. Box 1350
Hercules, CA 94547 Carmel Valley, CA 93924
(510) 799-8200 (844) 587-7300 / (650) 587-7303
Attn: City Clerk Attn: Bobbi Bennett
[email protected]
Copy to: Dante Hall Copy to: Anna Marie Will
[email protected] [email protected]
[email protected]

7. Indemnity.

7.1 To the full extent permitted by law, Consultant will indemnify, defend with counsel reasonably acceptable to City, and hold harmless City, its governing body, officers, agents, employees, and volunteers (collectively, “City Indemnitees”) from and against any and all third party liability, demands, loss, damage, claims, settlements, expenses, and costs (including, without limitation, attorney fees, expert witness fees, and costs and fees of litigation) (collectively, “Liability”) of every nature to the extent arising out of or in connection with Consultant’s negligent acts or omissions with respect to this Agreement, except such Liability caused by the negligence or willful misconduct of any of the City Indemnitees. This indemnification obligation is not limited DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 88 by any limitation on the amount or type of damages or compensation payable under Workers’ Compensation or other employee benefit acts, or by insurance coverage limits, and will survive the expiration or early termination of this Agreement.

7.2 City ’s indemnity obligations . City shall indemnify, defend and hold harmless Consultant and its officers, directors, employees and agents from any and all claims and lawsuits where such persons are named in the lawsuit solely because of a duty any of them performs in accordance with the services outlined in Exhibit B.

It is the intent of the parties here to define indemnity obligations that are related to or arise out of City’s actions as a governmental entity. Thus, City shall be required to indemnify and defend only under circumstances where a cause of action is stat ed against Consultant, its employees or agents:

a. which is unrelated to the skill they have used in the performance of the duties delegated to them under this Agreement;
b. when the allegations in such cause of action do not suggest the active fraud or other misconduct of Consultant, its employees, or agents; or c. where a City employee, if he had been acting in a like capacity, otherwise would be acting within the scope of that employment.

Whenever City owes a duty hereunder to indemnify Consultant, its employees or agents, City further agrees to pay Consultant a reasonable fee for all time spent by any Consultant employee, or spent by any person who has performed work pursuant to this Agreement, for the purpose of preparing for or testifying in any suit, action, or legal proceeding in connection with the services the assigned employee has provided under this Agreement.

8. Insurance. Before providing any Services under this Agreement, Consultant is required to procure and provide proof of the insur ance coverage required by this S ection in the form of certificates and endorsements. Each certificate of insurance must state that the coverage afforded by the policy or policies will not be reduced, cancelled or allowed to expire without at least 30 days written notice to City, unless due to nonpayment of premiums, in which case at least 10 days written notice will be made to City. The required insurance must cover the activities of Consultant and its employees or subcontractors relating to or arising from the performance of the Services, and must remain in full force and effect at all times during the term of the Agreement. All required commercial insurance must be issued by an insurer licensed to do business in the State of California, and each such insurer must have an A.M. Best financial strength rating of “A” or better and a financial size rating of “VIII” or better. Notwithstanding the foregoing and for the avoidance of doubt, City acknowledges that Consultant, as a public entity, may pursuant to California Government Code Section 990, satisfy the insura nce requirements set forth herein with a combination of self-insurance and self-insured pool insurance. If Consultant fails to provide any of the required coverage, City may, at its sole discretion, purchase such coverage at Consultant’s expense and deduct the cost from payments due to Consultant.

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

8.1.1 Commercial General Liability Insurance (“CGL”) . CGL insurance issued on an occurrence basis, including coverage of liability arising from DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 89 Consultant’s acts or omissions in the performance of S ervices under this Agreement, with limits of at least $1,000,000.00 per occurrence.

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

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

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

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

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

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

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

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

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

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

DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 90 9.1 Either Party may give written notice to the other Party of a request to submit a dispute to mediation, and a mediation session must take place within 60 days after the date that such notice is given, or sooner if reasonably practicable. The Parties will jointly appoint a mutually acceptable mediator. The Parties further agree to share equally the costs of the mediation, except costs incurred by each Party for representation by legal counsel.

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

10. Early Termination.

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

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

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

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

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

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

13. General Provisions.

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

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

13.3 Nondiscrimination. Consultant will not discriminate in the employment of persons under this Agreement because of race, color, ancestry, national origin, religion, sex, marital status, DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 91 age, medical condition, disability, or other prohibited basis. All nondiscrimination rules or regulations required by law to be included in this Agreement are incorporated by this reference.

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

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

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

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

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

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

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

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

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

13.11 Force Majeure. If either Party is delayed or hindered in or prevented from the performance of any act required under this Agreement because of strikes, lockouts, inability to procure labor or materials, failure of power, riots, insurrection, war, fire or other casualty, or other DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 92 reason beyond the reasonable control of the Party delayed, excluding financial inability (“ Force Majeure Event”), performance of that act will be excused for the period during which the Force Majeure Event prevents such performance, and the period for that performance will be extended for an equivalent period. Delays or failures to perform resulting from lack of funds will not be Force Majeure Events.

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

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

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

[Signature page follows.]

DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 93 The Parties agree to this Agreement as witnessed by the signatures below:

CITY: Approved as to form:

s/_______________________________ s/__________________________________

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

Date: ___________________________ Date: ______________________________

Attest:

s/_______________________________

_________________________________
Eibleis Melendez, Acting City Clerk

Date: ___________________________

CONSULTANT: Regional Government Services (RGS)
Business Name

s/_______________________________

_________________________________
Name/Title

Date: ____________________________

APPROVED AS TO FORM:

DATED: __________ By: ____________________________
Sky Woodruff, Authority Counsel

Attachments:

Attachment A: Scope of Services & Payment
Attachment B: Contractor Acknowledgment of City of Hercules Nepotism and Cronyism Policy Attachment C: Contractor Acknowledgment of Compliance with the California Equal Pay Act DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 Jordyn Bishop
JB
1/26/2023
1/30/2023
1/24/2023
1/25/2023
Richard H. Averett Executive Director
1/30/2023
94 P.O. BOX 1350 | CARMEL VALLEY, CA 93924 | 844- 587- 7300 | WWW.RGS.CA.GOV December 21, 2022 Via email to: [email protected] Dante Hall
City Manager
City of Hercules
111 Civic Drive
Hercules, CA 94547
RE: PROPOSED HUMAN RESOURCES SERVICES
Dear Mr. Hall:

Thank you for giving Regional Government Services (RGS) the opportunity to provide this proposal for Human Resources (HR) services to the City of Hercules (City). RGS is uniquely qualified to provide these services based on our specific and substantial expertise and experience working with public agencies throughout California and the flexible and scalable services provided by our team. Regional Government Services is a Joint Powers Authority (JPA) established in 2002 to serve the needs of cities, counties, special districts and other governmental entities throughout California. We provide a ready source of project and consulting services to meet the needs of our partner agencies in a broad range of administrative and support service areas. RGS has a proven track record working with local government agencies to successfully deliver effective HR management systems and administration in organizations which are similar in terms of demographics, size and needs as the City.

I have attached a proposal describing our HR services and current hourly rates. I look forward to further discussion with you; and to identifying a more prioritized scope of HR services that we may provide to the City. If you have any questions regarding this proposal, please feel free to contact me at (650) 587-7303 or via e-mail at [email protected].

Sincerely,
Bobbi Bennett, Human Resources Services Director

REGIONAL GOVERNMENT SERVICES

ATTACHMENT A
DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 95 PAGE 2 OF 8 HR SERVICES PROPOSAL │CITY OF HERCULES
I. ABOUT REGIONAL GOVERNMENT SERVICES
Organizational Profile
Regional Government Services (RGS) is a joint-powers authority (JPA) established in 2002 to provide organizational services to other California public agencies. We have over 130 employees throughout California serving more than 150 cities, special districts, counties, other JPAs and special consortiums of government agencies. RGS provides consulting services in the areas of human resources and financial management, organizational development, community engagement, strategic planning, and more specifically to public agencies.

RGS is a virtual government agency, and has developed a unique network of geographically distributed Advisors who work both onsite at partner agency offices on a limited basis, and through various remote access technologies to deliver services to partner agencies, reducing overhead and expanding our ability to provide high-quality services throughout the state. RGS Advisors form ad hoc teams to provide services and project delivery, and do not operate in a traditional organizational hierarchy.

Our Executive Director and Chief Financial Officer, Richard Averett, has worked with the Board of Directors since the JPA’s inception to implement the Authority’s strategic plan. Sophia Selivanoff, Deputy Executive Director, joined RGS in 2009. Bobbi Bennett, Human Resources Services Director, who has worked with RGS since 2015, supervises all human resources team members throughout the Authority.

At RGS, we believe in striving to be a partner to the agencies we serve, not simply a consultant or contractor. We believe in relationships that are lasting and mutually respectful and beneficial. In order to establish a mutually respectful relationship as well as a productive one, RGS has adopted the following values and business methods.

Our Values
• Expert Services: RGS serves exclusively public sector agencies with its team of public sector experts.
• Innovation: RGS encourages and develops innovative and sustainable services to help each agency meet its challenges through new modes of service provision. • Customer Driven: RGS customizes solutions to achieve the right level and right kind of service at the right time for each agency’s unique organizational needs. • Perseverance: Sometimes the best solutions are not immediately apparent. RGS listens, works with you, and sticks with it until a good fit with your needs is found. • Open Source Sharing: RGS tracks emerging best practices and shares them, our clients and our advisors learn openly from each other’s hard-won experience. • Commitment: Government agencies are the public’s sole provider for many services, public trust is earned and must be used wisely. Each agency should and will know how RGS sets its rates. RGS’ pledge to you is that we will act with honesty, openness, and full transparency.

DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 96 PAGE 3 OF 8 HR SERVICES PROPOSAL │CITY OF HERCULES
II. PROPOSED HUMAN RESOURCES SERVICES
Human Resources Consulting Services
RGS Advisors have extensive human resources experience in public agencies in California, and provide a variety of HR consulting services. In addition to a core team of experienced HR generalists with outstanding communication, interpersonal, analysis and problem-solving skills, we have assembled a staff of subject-matter experts.

RGS consulting staff anticipate delivering comprehensive generalist HR consultation and administration services. The areas of services listed below can be included within an ongoing HR service model based on the City’s needs. In addition, more specifically-scoped HR services and projects not listed may also be added at the City’s request or RGS’ recommendation. • Recruitment and Selection/Employment Administration: Develop and administer effective and compliant recruitment and selection/skills-testing processes (written tests, skills test, interviews, etc. as needed), pre-employment and hiring practices (post offer/pre- employment background checks and physical exams), and on-boarding of new staff. • Classification and Compensation Administration: Develop classification and compensation policies and models, review and update job descriptions, establish study protocols and compensation evaluation guidelines; perform analytic classification studies and conduct compensation surveys; and ensure alignment with state and federal laws related to compensation including pay equity, minimum wages and compliance with Fair Labor Standards Act requirements.
• Benefit Administration Services: Review and can assist with pay changes and benefit forms, provide related education and information to employees and supervisors; address problems with benefit providers and systems. This may also include assisting employees with retirement processing and with life or disability insurance claims. RGS can assist to resolve day-to-day issues that occur in the interpretation and application of complex regulations and systems, particularly in the following areas:
o Medical Leave Administration: Identifying pay and benefit requirements and formulating appropriate communications, ensuring legal compliance and recordkeeping, monitoring eligibility, managing modified work issues, and following up as needed with return to work or end of employment planning.
o COBRA Benefits: Identifying requirements and formulating appropriate communications, ensuring legal compliance and recordkeeping, monitoring eligibility, enrolling and ending services.
o ADA Administration: Identifying a schedule for reviewing and updating essential functions and physical demands contained in job descriptions; serving as the interactive DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 97 PAGE 4 OF 8 HR SERVICES PROPOSAL │CITY OF HERCULES
process coordinator; and ensuring appropriate communications and records are made regarding agreed-upon temporary or permanent accommodations. • HR Recordkeeping: Develop appropriate employment event documentation templates, and recordkeeping systems and standards as needed.
• NeoGov Support: Using a comprehensive, integrated HR solution is a best practice, however, getting things established and running smoothly requires a great deal of effort. Relying on a team of NEOGOV support experts can make all the difference in a successful implementation project and allow your team to focus on their core responsibilities. • Benefits Design and Communication: Analyze benefit policies, plans and offerings and their usage and functionality, and communicate information to employees about benefit offerings ; RGS will also determine best practices and benefit integration strategies to maximize benefits while achieving cost containment. As needed, RGS can provide strategic guidance in the development of new or enhanced benefit offerings; and carry out effective implementation of selected benefits.
• Performance Management: Develop performance and behavioral expectations and standards and an evaluation system to support Agency standards. As needed, RGS can provide performance management training and coaching to supervisors, facilitate employer-employee communication, and address issues that impact performance. RGS can also support formal performance corrections by drafting and administering performance improvement plans and disciplinary documents.
• Personnel Policy and Procedures Development: Update or develop new policies and procedures consistent with current legal standards and organizational objectives; and develop implementation and training plans for required changes. • Employee Relations Administration: Review, interpret, and apply various provisions of policies, procedures, employment agreements and compensation resolutions; provide related education and information to employees and supervisors; write clarifying language and obtain agreement to same when needed. RGS can advise managers on the resolution of complaints and disputes, conduct research and prepare documents to support effective problem-solving, and facilitate formal and informal communications between employees and/or management to achieve agreements that result in a productive and positive workplace. Assist with employee grievance hearing and serve as hearing officer. Assist with coordination of discipline hearings. • Labor Relations: Assist with labor grievance hearing and serve as hearing officer. RGS can provide chief or co-labor negotiator services as well as negotiation planning and communications, table support and document management, financial analysis of proposals and development of recommended MOU language.
• Training: Develop organizational training plans, and can handle administration of training on behalf of the organization. RGS can provide legally required training (sexual harassment DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 98 PAGE 5 OF 8 HR SERVICES PROPOSAL │CITY OF HERCULES
prevention, etc.) as well as training in performance management, supervisory roles, problem- solving, communication skills, and more as needs are identified and/or training is requested. • Selected Employment-Related Risk Management Functions: RGS can oversee or assist with workers’ compensation third-party (TPA) claims management, ensure compliance with HIPAA and other medical privacy laws; and manage administrative leave and fitness for duty situations. RGS may also develop, deliver, and provide training and programs for a variety of employee health, wellness and safety issues upon request. • Strategic Human Resources Planning: Assess current and long-range organizational needs and priorities and review assigned functions and roles with associated competencies for the purpose of developing plans and timelines to improve organizational capacity and skills and to enhance organizational and administrative structures.

RGS staff prides itself on its ability to work collaboratively with appropriate stakeholders to deliver accurate, professional products and services within reasonable timelines, meet deadlines, and provide clear, honest, and effective communications, all of which help to promote good relations throughout our partnership. RGS Advisors will be reasonably available to perform services during the normal work week and within the agreed upon schedule.

III. PROJECT TEAM APPROACH AND QUALIFICATIONS
RGS is a virtual government agency, and has developed a unique network of geographically distributed Advisors who work both through various remote access technologies and, when needed, onsite to deliver services to partner agencies, reducing overhead and expanding our ability to provide high-quality services throughout the state.

RGS delivers ongoing HR Management Services through a team of Advisors. For the City, the core team will consist of a Lead Advisor who will carry out activities to ensure timely delivery of HR functions. The Lead Advisor will serve as the City’s primary service provider and point of contact, and will identify, prioritize, and resolve or recommend resolution actions regarding employment-related issues. Together this core team will provide continuity of services and ensure that identified deliverables are provided.

At times, it may be of value to have a RGS HR Advisor be onsite. While not all members of the assigned team will be in close geographical proximity to the City’s offices, RGS will make every effort to ensure that travel costs are minimized through effective remote service delivery.

IV. SIMILAR ENGAGEMENTS AND REFERENCES
RGS understands and remains current on all requirements for effective public agencies HR functions. RGS presently serves as a full-service HR Department for a number of California public agencies, and has provided this service for over approximately 10 years. Additionally, RGS serves as the comprehensive HR management provider with as-needed services for multiple public DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 99 PAGE 6 OF 8 HR SERVICES PROPOSAL │CITY OF HERCULES
agencies. RGS also provides various HR supplemental and project support services to dozens of other agencies throughout California.

References may be provided upon request.

V. SERVICE COST/BILL RATES
RGS provides services on an hourly basis, plus direct costs. Work is performed as agreed, and subsequently billed each month based on hours actually worked. At the time of this proposal, the City anticipates the need for services for a period of six months. The contract will not exceed $50,000. Bill rates are as follows:

Title Hourly Rate
Chief Operating Officer $140 to $230
Deputy Chief Operating Officer $135 to $205
Senior/Lead Advisor $130 to $200
Advisor $120 to $170
Project Advisor $110 to $130
Project Coordinator $90 to $125
Technical Specialist $80 to $120
RGS Advisors are skilled at prioritizing projects and working within the budget of partner agencies. Additional HR services and projects may be scoped in any way mutually agreed upon between RGS and the City, and project estimates or not-to-exceed amounts will be provided upon request. While it is anticipated that expenses for travel, advertising, training or testing materials, and other direct external costs will be minimal, such expenses are not included in hourly rates, and will be invoiced to the City at cost with no markup. Mileage for site visits will be calculated/invoiced at the Advisor’s hourly rate up to two hours one way.

DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 100
PAGE 7 OF 8 HR SERVICES PROPOSAL │CITY OF HERCULES
DRAFT Scope of Services
Subject to the terms and conditions of this Agreement, RGS shall assign RGS employee(s) to serve as Advisors to the City of Hercules, hereafter “City”, which may require performing any or all of the functions described below:

1. Provide immediate as needed human resources consulting services to the City. Consulting services include implementation of work on identified priority projects, and also include the following activities as needed:

1.1 Development and coordination of executive and non-executive level recruitments.

1.2 Provide coaching and guidance to City human resources staff on various issues as needed. Recommend trainings as appropriate.

1.3 Review of the City’s current NeoGov system and assist with the data coordination to streamline and maximize the use of the system.

1.4 Coordinate and assist with leave management, including but not limited to workers’ compensation, medical leaves, and reasonable accommodation.

1.5 Analyze a variety of information and recommend appropriate management action; provide written documentation of analysis and recommendations as needed.

1.6 Draft specific documentation relevant to resolving a range of human resources issues; coach managers as needed on effective actions and communications to achieve resolution; coach supervisors on conducting sensitive personnel conversations.

1.7 Draft required communications, including administrative policies, procedures, forms and templates as needed to develop an effective and compliant system of human resources management practices and transactions.

1.8 Review of classification descriptions and FLSA designation and recommend updates as needed.

1.9 Conduct salary surveys of comparable agencies As requested, assist with various employee/labor related issues, including but not limited to grievances and labor negotiations.

2. Be reasonably available to perform the services during the normal work week. Meet as often as necessary for the purpose of consulting about the scope of work performed with the appropriate City project manager and with the RGS Lead Advisor or Advisors.

3. RGS will maintain open communication lines with City staff through written documentation, video conference calls, phone, and e-mail.

4. The City will only be invoiced for the actual hours worked. Projects and activities may be modified on request of the City. The work will be done remotely. RGS Advisors may only work onsite with the authority of the RGS Human Resources Director.

DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 101
PAGE 8 OF 8 HR SERVICES PROPOSAL │CITY OF HERCULES

5. The RGS team assigned will be led by a Lead Advisor, who will both perform work and direct projects to other RGS staff as needed. RGS staff, with equal or lower bill rates, will be assigned to projects or tasks at Lead Advisor’s discretion.

DocuSign Envelope ID: 90C5B6E8-8821-4421-A58B-FA25FB201F11 102

AMENDMENT NO. 1 TO MANAGEMENT AND ADMINISTRATIVE

SERVICES AGREEMENT

This first amendment to the Professional Services Agreement between the CITY OF HERCULES (“Agency”) and Regional Government Services Au thority, hereinafter called “RGS” is made and entered into this 26th day of July 2023.

RECITALS

The A gency and RGS entere d into an A greement for services dated January 17, 2023 .

This Amendment is entered into with reference to the following facts and circumstances:

A. Section 3, Compensation, is amended to increase the Not To Exceed (NTE) amount by $65,000, to a revised total of $115,000.

B. All other terms and conditions of the Agreement s hall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this Additional Services Amendment to b e executed on the date first above written by their respective officers duly authorized in that behalf.

Dated: Dated:

Agency

RGS

Dante Hall, City Manager
E: [email protected]
Sophia Selivanoff, Executive Director

DocuSign Envelope ID: 72F2C47B-9B1A-4598-9FF9-D22F95ADF786 7/31/2023 7/26/2023
103
overall assumption used as a baseline:
• Salaries and Benefits
The most significant cost is driven by its
labor. Labor accounts for almost 60% of
total expenditures. Below are significant
assumptions used to estimate the cost of
salaries and benefits:
• Regular Salaries – Personnel services costs
included a 4.5% wage increase and a 3% one-
time retention bonus based on the two-year
labor agreements with the employee groups.
• PERS Miscellaneous and Public Safety
Normal Cost and Unfunded Actuarial
Liability (UAL) rates are projected as follows
based on CalPERS actuarial assumptions:
• Health care costs, including medical, dental
and vision, are projected to increase by 3%
from the FY 22-23 Kaiser rate.
• 1% of employee salaries will be contributed
towards IRS Section 115 Pension Trust per
policy direction established by the City
Council.
• All other expenditures are estimated to
increase by 3%.

As part of the budget process, City
departments requested additional requests
over their baseline budgets to enhance service
delivery, to respond to legislative mandates,
and to implement special and capital projects.

These various funding requests were
presented to the Council as part of the FY
2023-2024 Proposed Budget and summarized
as follows:

The City’s annual budget is a planning
tool that matches the services desired by
the community to the estimated resources
available to provide those services, such as
police, parks and recreation, community
development, public works and administration.

The budget provides a detailed plan for the
next fiscal year and five-year forecast to
anticipate future needs and opportunities.

General Fund Budget
A portion of the All-Funds budget includes
the General Fund. The General Fund
comprises general-purpose revenues, such
as taxes, fines and fees, interest, and other
income that may be used to support general
governmental operations. The FY 2023-
2024 Annual General Fund Budget totals
$18.4 million in revenue and $18 million in
operating expenditures.

The General Fund’s primary revenue sources
are Sales Tax, Utility Users Tax (UUT),
Property Tax (including Motor Vehicle
License Fee in-lieu), Franchise Fees, and
Business License. Together they comprise
83% of total revenues. Overall, General
Fund revenues in FY 23-24 are projected
to increase by approximately 7% compared
to what was projected in FY 22-23. The
revenue increase is substantially driven by
proceeds from sales tax and the program
fees from re-opening the Parks & Recreation
programs. The revenue projections are based
on the staff’s analysis of local conditions and
reflect the information received from several
sources, including the City’s UUT, Sales and
Property Tax consultant, and the County
Assessor’s office.
•Sales Tax is the largest revenue source
for the City’s General Fund is remitted
to the City from the State monthly. Sales
Tax revenues are projected to increase
significantly based on quarter three analysis
generated from the data from the Board of
Equalization (BOE). However, total sales
tax revenues are highly concentrated within
a few major operators and substantially
generated from business-to-business
sources. Its top three producers generate
over 50% of the City’s sales tax revenues.

When one or more of these key revenue
sources deviate from projections, funding
for future programs and services may be
affected. If one or more of these key revenue
sources were to cease local operations
within Hercules, the resulting drop in sales
tax revenue would likely have a significant
negative impact on the provision of programs
and services.

The City continues to benefit from the
ongoing implementation of the Wayfair court
decision that resulted in an increase in local
government’s share of online sales and the
more significant number of purchases made
online. These trends are part of the City’s
share of the County pool. The following
chart depicts the source of the City’s sales tax
revenues by industry group.
•Utility User’s Tax (UUT) are revenues
collected from the consumption of utility
services, including (but not limited to)
electric, gas, water, sewer, telephone
(including cell phone and long-distance),
sanitation, and cable television. The City
determines the tax rate and the use of its
revenues. UUT revenues are estimated at
$3.7 million for FY 23-24. Based on the trend
and its consumption rate, the City continues
to see erosion in Wireless Telecom’s UUT
revenues due to the update in allocations of
the bundled packages from the respective
providers. These updated allocations shifted
a more significant percentage toward data
that is not taxable. On November 8, 2022,
the Hercules voters approved Measure N,
which removed the sunset provision that
would have caused the expiration of the UUT
in January 2025. The City’s UUT revenue
is approximately 20% of the general fund
budget.
•The City of Hercules has been classified as
a low-to-no property tax jurisdiction. The

LETTER FROM THE CITY MANAGER
CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
Ongoing costs:

Senior Planner 188,000 188,000
Standby and Call back pay 1,700 74,300 76,000
Maintenance Supervisor (36,000) 36,000 -
Contract CIP Engineer 250,000 250,000
Animal Control Services 27,000 27,000
Recreation Specialist 5,750 5,750
Overall Operating Cost 165,000 165,000
Cellebrite 9,000 9,000
Tri-City Consortium 40,000 40,000
Special Event 85,000 85,000
General Liability & Worker's Compensation Insurance 200,000 200,000 Total, Ongoing costs 685,450 360,300 1,045,750
One-Time Costs:

Media Services 24,000 24,000
Regional Government Services (RGS) 65,000 65,000
Grant Writing Services 50,000 50,000
Business Attraction Grant 100,000 100,000
Eat Local Program 50,000 50,000
Total, Ongoing costs 289,000 - 289,000

BUDGET IMPACT
General Fund Other Funds TOTAL
104

CITY OF HERCULES
FY 2023-24 LIST OF ADDITIONAL BUDGET REQUEST
FY 23-24 LIST OF ADDITIONAL BUDGET REQUEST
CITY OF HERCULES FY 2023-24 ANNUAL BUDGET
1 City of Hercules
FY 23-24 List of Additional Budget Request
Title Fund Department Description Justification General Fund Other Funds Total Ongoing costs:

Senior Planner General Fund Community
Development
This request is to create a new, permanent Senior
Planner position in the Community Development
Department, reporting to the Community
Development Director. The Senior Planner would
perform professional land use and urban planning
work, including current and long-range
(advanced) planning, implementing the General
Plan, reviewing complex zoning and
development applications, and coordinating
special projects. Development fees will partially
offset the cost of this position.

This will enable the department to successfully manage the volume of professional work required to respond to inquiries from the public; process the City's planning applications; develop and update the City's long-range plans; maintain and update the Zoning ordinance and other City regulations; staff the Planning Commission, regional advisory committees, and interdepartmental planning efforts; implement new requirements of state law, such as online permitting; and develop and implement new programs, policies, and resources to further fair housing and otherwise implement the City’s 2023-31 Housing Element, once adopted. The Senior Planner would also assist the Director in implementing Council priorities such as business recruitment, additional community engagement, and development of user-friendly handouts explaining common Planning application types and requirements.
$188,000 $188,000
Standby and Call back
pay
All Funds Public Works Currently the Public Works Superintendent is “on- call” 24 hours a day 365 days a year. Hercules is
one of the last remaining agencies in the County
adhering to this practice. With the rotation, each
staff person will be on standby for a 1-week
rotation.

Implementing a rotation will make urgent/emergency coverage during non-working hours more sustainable, provide employees a professional growth opportunity, include cross training, and based upon experience gained be a step forward for succession planning and raise the level of performance of the Maintenance & Operations Division overall.

Additionally, it will be more effective as it will allow the Superintendent to focus on higher level duties, such as management, supervision, and operational planning. Based on the current allocation, the General Fund impact is approximately $1,700/year. $1,700 $74,300 $76,000
Maintenance
Supervisor
All Funds Public Works This request is to promote a Maintenance Worker II to a Maintenance Supervisor.

Efficiency in the Maintenance unit. The savings will offset the total cost by eliminating the intern position and a Maintenance Worker II. Based on the current allocation, this change has no General Fund impact.
($36,000) $36,000 $0
Contract CIP Engineer Capital
Projects Fund
Public Works Limited term to manage assigned CIPs. To manage the CIP projects. The contract will be part of the CIP costs funded by multiple funding sources and will execute the following CIPs: ADA Transition Plan (Parks, Buildings, and Streets); Parks Master Plan; Beechnut Park; and Community Center Repairs. $250,000 $250,000
Animal Control
Services
General Fund Public Works An increase in Animal Control and sheltering services provided through an agreement with the
Contra Costa County Animal Service Department
from $210,000 to $237,000 annually.

Although the City’s costs will increase under the proposed agreement, City staff believes it is beneficial to the City to execute the new agreement with more clarity and commitment from Animal Services on service levels and contributes to the financial sustainability of Animal Service programs.
$27,000 $27,000
Recreation Specialist General Fund Parks & Recreation Increase work hours from 25 to 30 hours a week. These changes will help the Recreation unit continue to deliver a broad range of programmed activities, as well as maximizing the appropriate use of recreation assets, and reserve the use of facilities, courts, fields, and picnic sites. $5,750 $5,750
Overall Operating
Cost
General Fund Parks & Recreation Return to pre-pandemic service level. Returning to pre-pandemic service level will increase the operating cost by $310K and offset by increase in program revenues by $145K.
$165,000 $165,000
Cellebrite General Fund Police Increase to Other Miscellaneous Services Cellebrite is a hardware/software system used to extract data from cell phones for investigative purposes which is only authorized pursuant to a warrant. We currently have a Cellebrite device which is inoperable due to outdated software/ hardware. The additional request is to keep the system functioning to assist detective's investigations with serious violent crimes.
$9,000 $9,000
Tri-City Consortium General Fund Police Increase to Other Government Agency Charges The City of Hercules contracts with the City of San Pablo and the City of Pinole (Tri-City Consortium) for ispatch and record’s management services. Both services are critical for the police department. The cost of these services has increased by an additional $40,000 annually over the next five years.
$40,000 $40,000
Special Event General Fund Parks & Recreation Increase to contractual services for Special Event The past few years the Hercules City Council has authorized money to be spent on special events including events like the Fourth of July celebration, National Night Out, Bayfront Run and Festival, Bottles and Bites and the Cultural Festival. Anticipating the Council’s desire to continue to offer these special events to the community staff is recommending $85,000.00 to be appropriated for special events in FY 2023-24. $85,000 $85,000
General Liability &
Worker's
Compensation
Insurance
General Fund General
Liability/Worker's
Compensation
Increase in Liability Insurance Premium Based on MPA renewal rates for FY 23-24. $200,000 $200,000 Total, Ongoing Costs $685,450 $360,300 $1,045,750
One-Time Costs:

Media Services General Fund Police Increase to professional services for Media Services.

Media services have been an area of concern for quite some time. We have relied heavily on a volunteer Reserve Police Officer for PIO duties, we have supervisors who have never been trained on issuing written press releases, and we have been running a social media program without proper training and oversight which may expose our city to future legal liability issues. For multiple years we have looked for PIO training, but we have not been able to find training anywhere in Northern California.
$24,000 $24,000
Regional Government
Services (RGS)
General Fund Human Resources Increase to professional services for Human Resources Services
To provide the City with HR management services. $65,000 $65,000 Grant Writing Services General Fund City Manager Increase to professional services for Grant Writing Services
To hire a consultant who specialize in grant writing, grants management, and prospect identification. The consultant will assit in identifying grant to fund various projects. $50,000 $50,000
Business Attraction
Grant
General Fund Community
Development
Business attraction grant program Assist certain types of desired new retail businesses with move-in costs associated with occupying a vacant storefront spaces in Hercules. The funding will be used for a pilot Business Attraction matching grant program with a goal of incentivizing small businesses that increase vibrancy and provide amenities to locate in Hercules. $100,000 $100,000
Eat Local Program General Fund Community
Development
Eat Local Bonus Gift Card pilot Program Eat Local Hercules will be an incentive program to use local restaurant catering services. $50,000 $50,000 Total, One-Time Costs $289,000 $0 $289,000
Total $974,450 $360,300 $1,334,750
Budget ImpactBudget Impact
105

AMENDMENT NO. 2 TO MANAGEMENT AND ADMINISTRATIVE

SERVICES AGREEMENT

This second amendment to the Professional Services Agreement between the CITY OF HERCULES (“Agency”) and Regional Government Services Au thority, hereinafter called “RGS” is made and entered into this 13th day of February 2024.

RECITALS

The A gency and RGS entere d into an A greement for services dated January 17, 2023 .

This Amendment is entered into with reference to the following facts and circumstances:

A. Section 3, Compensation, is amended to increase the Not To Exceed (NTE) amount by $115,000, to a revised total of $230,000.

B. Exhibit A, Item V. Service Cost/Bill Rates, is amended to increase site visit travel from two hours to three hours [last sentence under rate table].

C. All other terms and conditions of the Agreement s hall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this Additional Services Amendment to b e executed on the date first above written by their respective officers duly authorized in that behalf.

Dated: Dated:

Agency

RGS

Dante Hall, City Manager
E: [email protected]
Sophia Selivanoff, Executive Director

DocuSign Envelope ID: E9A327ED-A57D-45BA-81D6-E280EDC80E74 2/8/2024
106

DISCUSSION AND/OR ACTION

AGENDA ITEMS

1. 22-766

2. 22-767

3. 22-768

4. 22-769
107

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 13, 2024
TO: Mayors and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Review of Fiscal Year (FY) 22-23 Unaudited Year-End Result RECOMMENDED ACTION:

Receive the report on FY 22-23 Unaudited Year-End Result EXECUTIVE SUMMARY:

This financial report provides an overview of the General Fund's unaudited financial position and a summary of non-general funds as of June 30, 2023. The General Fund is the primary focus as it is the chief operating fund of the City. The report summarizes the activities of the City's General Fund to provide an overview of the City's general fiscal condition and also a snapshot of non-general funds.

DISCUSSION:

We are pleased to present the Unaudited General Fund and a summary of other funds Year- End Result for FY 2 2-23. This report was prepared without the final audit results and is subject to change depending on the audit results in progress. It is anticipated that the final audit results will be concluded by the end of February.

Note that the basis of accounting used for financial reporting purposes in accordance with Generally Accepted Accounting Principles (GAAP) is not necessarily the same basis used in preparing the budget document. For example, governmental funds are required to use the modified accrual basis of accounting in GAAP financial statements. In contrast, the cash basis of accounting or the "cash plus encumbrances" basis of accounting may be used in those same funds for budgetary purposes. Disparities between GAAP and the budgetary basis of accounting often occur because regulations governing budgeting (e.g., laws or ordinances of the state, county, City, or other jurisdiction) differ from GAAP. Thus, the City adopts its budgets each fiscal year on a cash plus encumbrances basis of accounting, which results in some items budgeted as expenditures, such as transfers to reserves, being reflected in the audit as balance sheet adjustments/designation of fund balance. 22-766
108
When the City Council developed and adopted the FY 202 3-24 Budget, the estimated beginning fund balance (the estimated ending fund balance for FY 22-23) was based on the information we knew then. Most activities are not received until after June 30 and are accrued back into the prior fiscal year. While much effor t went into developing the projections, we estimated conservatively. We did so with the uncertainty of the economic climate and the recession in our minds then. In addition, we actively managed our expenditure to minimize costs with even greater scrutiny as we ended the year. Fortunately, we did finish FY 22-23 better than anticipated.

General Fund
Overall, the total FY 22-23 General Fund revenues were significantly higher than the estimate, and expenditures came slightly higher than the budget. Below is the summary of the General Fund net annual results:

Hercules has experienced strong economic recovery after the challenging financial environment caused by the COVID-19 pandemic, which resulted in the closure of most of the Parks & Recreation programs, significantly impacting the department’s program revenues. As consumer demand increased and services returned to normal, the City ended the fiscal year in a positive financial position.

General Fund Revenue Analysis
About 82% of the General Fund revenues comes from taxes in the following categories:
 Utility Users Tax
 Sales Tax
 Property Taxes
 Vehicle License Fees (VLF)
 Business License Fees
 Document Transfer Tax
 Franchise Fees
 Transient Occupancy Tax

These general tax revenues levied to fund general government purposes go into the General Fund. Voters must approve general taxes imposed by local governments.

Budget Actual Variance
Beginning Available Balance 977,254 $ 977,254 $ - $ Revenues 17,464,461 19,530,255 2,065,794
Expenditures 18,351,166 18,698,947 (347,781)
Net Annual Results (886,705) 831,308 1,718,013 Ending Available Balance $90,549 $1,808,562 $1,718,013
109
General Fund Revenues by Category

The chart below shows the comparison of General Fund ongoing revenues compared to prior years:

Taxes
82%
Program
Revenues
10%
Cost Allocation
3%
Use of Money &
Property
4%
Others
1%
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 $3.2 $4.0 $4.2 $4.8
$6.3 $6.2
$3.8
$3.5 $3.5
$3.6
$3.8 $4.0
$3.8 $3.1 $2.1 $1.3
$1.5 $2.0
$2.3 $2.1
$2.2 $2.3
$2.4
$2.5 $1.3 $1.4
$1.4 $1.5
$1.5
$1.6 $1.0 $1.5
$1.2 $1.3
$1.4
$1.6
$1.2 $1.2
$1.3 $1.3
$1.5
$1.4
(In Millions)
Sales Tax Utility User Tax Program Revenues
Vehicle License Fee (VLF) Property Taxes Miscellaneous
Other Taxes
110
The chart above shows that overall general fund revenues have increased by 21% compared to FY 20-21 during the pandemic. The significant increases are due to sales tax, UUT and reopening of Parks & Recreation programs. Much of the credit is attributable to the diverse local economy, talented workforce, mild climate, and outstanding quality of life, making Hercules an ideal business location.

Sales Tax
Sales Taxes, the largest revenue source for the City’s General Fund, are remitted to the City from the State monthly. This tax exceeded the revenue projections by $794K or 15%. The total Sales Tax revenue is highly concentrated within a few major operators and is substantially generated from business-to-business sources. Over 50% of the City’s sales tax is generated by its top three producers. The following depicts the summary history of the City’s sales tax revenues by business category:

The City’s sales tax base has proven to be more resilient than many other communities’ given its concentration in the business -to-business and home improvement categories.

Hercules’s total sales tax revenues grew significantly over the period between 2019 to 2023 as shown in the chart above.

Utility Users Tax (UUT)
The Utility User's Tax (UUT) is imposed by the City on the consumption of utility services, including (but not limited to) electricity, gas, water, sewer, telephone, and cable television.

The City determines the tax rate and the use of its revenues. This tax fluctuates with consumer consumption and is assessed based on a percentage of gross receipts. As of June 30, 2023, the City has collected close to $4 million, which is about $400K or 11% higher than projected in the forecast. On November 8, 2022, Measure N was approved extending the term of the UUT at the existing rate until it is ended by the voters or repealed by the City Council.
111
The following is the history of total revenues from UUT collected by each fiscal year:

Property Tax
The City of Hercules has been classified as a low-to-no property tax jurisdiction. The City's share of the base 1% property tax rate is lower than most other jurisdictions at just a little over 5% of Hercules's total base property taxes, see below chart. Property Tax and related taxes collected through June 30, 2023, which are the current year secured and unsecured, were slightly higher compared to the budget.

The information below is based on FY 22-23 Weighted Average Shares by Agency:

Parks and Recreation Program Revenues
The Parks & Recreation program was closed during the pandemic, and the programs were fully reopened these couple of years and are steadily returning to normal. The actual program receipts showed $267K or 23% higher than the forecast, meaning the program reopening was overwhelmingly more successful than anticipated.

3.8 3.5 3.5

3.6 3.8

4.0 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 UUT Growth Trend 2018-2023
(In Millions)
112
General Fund - Expenditure Analysis

The chart below shows the comparison of General Fund ongoing expenditures compared to prior years:

This section discusses the General Fund expenditures. It includes encumbrances, which are obligations in the form of purchase orders or contracts chargeable to the budget for which a part of the budget is reserved. The total FY 22-23 budget, as revised, was $18.8 million, of which $17.1 million was ongoing and $1.1 million was one -time. Operating expenses in total are tracking slightly higher than the budget figure due to Parks & Recreation reopening of programs and some emergency services caused by the storm. A summary of the year -to-date status of General Fund expenditures is presented in Attachment 1.

The Parks & Recreation expenditures were about $290K higher than the budget. The variance, however, was offset by higher program fee revenues due to fully reopened programs.

General Fund – Net Annual Results and Available Fund Balance As a result, the net General Fund ended the year with a positive $1.8 million of available cash balance, $1.7 million better than the FY 22-23 Budget, as discussed above and as presented in Attachment 1.

F Y 1 7- 18 F Y 1 8- 19 F Y 1 9- 20 F Y 2 0- 21 F Y 2 1- 22 F Y 2 2- 23 $6.41 $6.81 $7.41 $7.46 $7.76 $8.43
$4.57
$6.15 $5.00 $4.35 $4.65
$5.29
$2.08
$2.13
$2.17
$1.42
$1.95
$2.41
$0.44
$0.62
$0.61
$0.79
$0.72
$0.51
$0.47
$0.28
$0.31
$0.29
$0.31
$0.42
(IN MILLIONS)
Police Administration/Other Parks and Recreation Community Development Public Works 113

The City Council amended the financial policy that the General Fund surplus will be allocated as follows:
 25% to Pension (Section 115 Trust).
 25% to operating reserve until it reaches 25% of total operating expenses.  50% to fund unmet/deferred infrastructure and maintenance needs.

General Fund Operating Reserve
The General Fund Operating Reserve is a measure of the financial resources available. It is like a savings account for the general fund. Over the years, it has built up because of revenues exceeding expenditures, primarily due to one-time savings and higher revenues as anticipated. As of June 30, 2023, the General Fund Operating Reserve is $4.3 million or 25% of total expenditures, which is at the reserve policy.

Non-General Funds

SEWER ENTERPRISE FUND
The Enterprise Fund group consists of the City's Sewer Fund and requires proprietary fund balance reporting, including cash, reserves, fixed assets, and related long -term debt.

Sufficient resources are maintained to ensure the completion of current projects and programs and to cover debt service. The Sewer Fund's ending available fund balance as of June 30, 2023, is $11.5 million.

SPECIAL REVENUE FUNDS
The Special Revenue Funds are driven by grants or other specific funding sources for specific purposes, such as transportation, building permit counter activity, other restricted programs, etc. Such funding sources are restricted, requiring revenues and expenditures to be tracked differently from the City’s primary operating fund, the General Fund. On June 30, 2023, there is sufficient funding for the completion of current projects or programs except for Victoria by the Bay Lighting and Landscaping Assessme nt District (LLAD) and the Stormwater fund, which has negative fund balances of $437K and $157K, respectively. Staff are working on raising tax revenues to address the deficits. The addition of new programs or projects depends on the availability of future funding sources. The Special Revenue Funds has a collective balance of $5.3 million as of June 30, 2023.

CAPITAL PROJECT FUNDS
These funds derive their revenues from a combination of fees from new development, Gas Tax, and Regional Measure J, most of w hich generate revenues and expenditures in different patterns from the City’s other operating funds. Because these funds are budgeted multi-year, the project may experience some cost overruns. Typical reasons for these overruns include underestimating cos ts in initial project proposals and field changes required to complete a project but were unanticipated when the contract was awarded. To mitigate the risk of cost overruns, the Finance Department continues to work with the Departments to ensure processes are in place to prevent overspending, including providing project balances are kept up to date, and adequate contingencies are in place before the 114
commencement of the project. The Capital Improvement Projects Funds had an aggregate expense of $52 million through June 30, 2023, as illustrated in Attachment 3. There is sufficient funding to complete the projects.

DEBT SERVICE FUNDS
The Debt Service Funds group accounts for the long-term debt of the City. As of June 30, 2023, the unaudited fund balances of all debt service funds were $2 million. Sufficient funds are transferred from a variety of sources to meet debt service obligations as they come due.

The funding source is dependent upon the purpose of the debt.

INTERNAL SERVICE FUNDS
The Internal Service Funds group includes those funds created for the accumulation of reserves for vehicle replacement, technology and equipment replacement, and facility maintenance. Revenues for these funds are derived from administrative (cost recovery) charges to other funds, primarily the General Fund. The fund balance of the Internal Service Funds group was $2 million as of June 30, 2023.

FIDUCIARY FUNDS
The Fiduciary Funds group includes the assessment district bond that are not obligations of the City and a trust fund established for the Other Post-Employment Benefits (OPEB).

SUCCESSOR AGENCY
The Successor Agency is an entity separate from the City and accounted for in separate trust funds that are used to account for tax increment monies received and payments of items approved by the Oversight Board in the Required Obligation Payment Schedule (ROPS). The responsibility of the successor agency is to wind down the affairs of the former Redevelopment Agency and pay off any debt obligations incurred by the Redevelopment Agency.

FISCAL IMPACT OF RECOMMENDATION:

The review of the FY 22-23 Unaudited Year-End Result is an informational report only with no fiscal impact currently.

ATTACHMENTS:

1. Unaudited General Fund Year End Results Summary as of June 30, 2023

2. Unaudited All Funds Year End Results Summary as of June 30, 2023

3. Unaudited Capital Projects to date Summary as of June 30, 2023

4. Presentation

115
General Fund
Fund Summary - 100
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23
Audited Actual Audited Actual Budget
Unaudited
Actual Variance
Beginning Available Balance $ 1,847,113 $ 2,138,829 $ 977,254 977,254$ -$ Revenues
Taxes
Utility User Tax 3,590,649 3,828,410 3,589,000 3,996,274 407,274 Sales Tax 4,775,496 6,263,066 5,398,000 6,192,500 794,500 Property Taxes 1,451,716 1,524,791 1,571,000 1,638,581 67,581 Franchise Fees 862,104 970,054 905,000 988,108 83,108 Business Licenses 268,697 257,289 274,000 274,540 540 Transfer Tax 126,488 199,673 146,000 120,539 (25,461) Transient Occupancy Tax 7,635 25,778 114,000 30,518 (83,482) Vehicle License Fee (VLF) and Other
Intergovernmental 2,285,392 2,391,327 2,511,000 2,527,866 16,866 Fines & Forefeitures 36,586 48,663 38,000 46,057 8,057 Program Revenues -
Community Development 824,891 329,134 285,000 349,874 64,874 Parks and Recreation 396,290 1,034,173 1,156,000 1,423,642 267,642 Police 65,915 136,878 139,000 196,189 57,189 Public Works 46,908 10,464 38,000 30,776 (7,224) Other 10,571 6,723 11,000 12,231 1,231 Use of Money & Property 511,188 347,905 286,000 794,570 508,570 Cost allocated to other funds 602,677 624,568 684,000 588,529 (95,471) Transfers In 150,000 396,816 150,000 150,000 - 16,013,203 18,395,712 17,295,000 19,360,794 2,065,794 Expenditures
Police 7,463,163 7,759,504 8,447,501 8,430,069 17,432 Public Works 292,566 313,571 447,026 417,265 29,761 Community Development 788,933 724,190 556,443 511,989 44,454 Parks and Recreation 1,422,635 1,952,419 2,119,184 2,408,847 (289,663) City Council 407,588 330,296 345,630 329,843 15,787 City Manager 358,241 496,216 605,623 491,141 114,482 Human Resources 239,395 308,009 337,075 258,427 78,648 Legal 154,562 209,134 273,000 193,487 79,513 City Clerk 438,344 377,112 453,700 408,679 45,021 Finance 1,100,735 1,114,284 1,281,897 1,281,043 854 Workers Comp/General Liability 1,076,945 1,135,659 1,265,554 1,241,404 24,150 Non-Department 255,536 260,000 260,000 260,000 - Transfers Out 321,914 423,542 801,513 822,559 (21,046) 14,320,557 15,403,936 17,194,146 17,054,753 139,393 The General Fund is the City of Hercules Chief Operating Fund. This fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as police, planning, engineering, public works, operations and maintenance, and legal and administrative services. 116
General Fund
Fund Summary - 100
Fund Description / Budget Highlights
Fund Activity
FY 20-21 FY 21-22 FY 22-23
Audited Actual Audited Actual Budget
Unaudited
Actual Variance
The General Fund is the City of Hercules Chief Operating Fund. This fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as police, planning, engineering, public works, operations and maintenance, and legal and administrative services.

Net Annual Activity
Ongoing Operations 1,692,646 2,991,776 100,854 2,306,041 2,205,187 One-Time Revenues 600,750 1,431,000 169,461 169,461 - One-Time Expenditures (2,001,680) (2,652,580) (1,157,020) (1,644,194) (487,174) Reserve per Council Policy (2,931,771)
Ending Available Balance 2,138,829$ 977,254 90,549$ 1,808,562$ 1,718,013$ Operating Reserve:

Beginning Balance 4,034,517$ 4,209,129$ 4,222,158$ 4,222,158$ Current Year Contribution
Interest Earned 174,612 13,029 103,221 Ending Balance 4,209,129$ 4,222,158$ 4,222,158$ 4,325,379$ % of Projected Operating
Expenditures 29% 27% 25% 25%
117
FY 22-23 Annual Results - All Funds
As of June 30, 2023
General Fund
Fund Number Fund Name
Beginning
Available
Balance
Revenues and
Transfers In
Expenditures
and Transfers
Out
Net Annual
Activities
Outstanding
Encumbrance
Ending
Available
Balance
100 GENERAL FUND 977,254 19,530,255 18,226,849 1,303,406 472,098 1,808,562 977,254 19,530,255 18,226,849 1,303,406 472,098 1,808,562 Special Revenue Funds
Fund Number Fund Name
Beginning
Available
Balance
Revenues and
Transfers In
Expenditures
and Transfers
Out
Net Annual
Activities
Outstanding
Encumbrance
Ending
Available
Balance
101 ASSET SEIZURE 69,395 162,585 11,617 150,968 13,717 206,646 201 AB 3229 COPS Program 18,011 165,272 150,000 15,272 - 33,283 220 CITYWIDE L&L DIST 83-2 (235,297) 2,129,351 1,787,897 341,454 36,171 69,986 221 VICTORIA BY THE BAY L&L (315,422) 482,898 574,931 (92,033) 29,573 (437,028) 222 HERCULES VILLAGE L&L DIST 179,767 170,010 193,644 (23,634) 13,324 142,809 223 BAYWOOD ASSESS 04-1 L&L 202,309 160,752 288,195 (127,443) 824 74,042 224 BAYSIDE ASSESS DIST L&L 146,428 153,246 168,025 (14,779) 5,750 125,899 225 ARTERIAL ROADWAYS 574,312 311,978 423,871 (111,893) 824 461,595 231 STORMWATER ASSESSMENT (183,570) 461,987 422,703 39,284 13,335 (157,621) 241 DIF-GEN PUBLIC FACILITIES 143,087 3,314 - 3,314 - 146,401 242 COMMUNITY DEVELOPMENT FND 166,708 4,161 - 4,161 - 170,869 243 DEVELOPMENT FEE FUND 71,122 1,453 - 1,453 - 72,575 244 DIF-POLICE FACILITIES 262,940 6,031 4,259 1,772 - 264,712 246 DIF-FIRE FACILITIES 821 888 - 888 - 1,709 247 DIF-PARK & REC 184,426 4,578 - 4,578 39,766 149,238 249 PUBLIC BENEFIT FEE 964,565 19,938 - 19,938 - 984,503 261 DIF-TRAFFIC FACILITIES 153,233 5,898 33,003 (27,105) - 126,128 262 STATE GAS TAX FUND 686,466 676,642 926,232 (249,590) 188,017 248,859 263 MEASURE "C" STREET FUND 42,356 512,515 418,300 94,215 - 136,571 264 STMP TRAFFIC IMPACT FUND - - - - - - 267 GENERAL PLAN UPDATE - 1,126,251 168,202 958,049 8,726 949,323 291 SOLID WASTE AND RECYCLING 828,648 195,605 246,571 (50,966) 6,864 770,818 This fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City. The General Fund includes activities for police, planning, public works, operations and maintenance, and legal and administration.

Special Revenue Funds account for the proceeds of specific revenue sources (other than trusts for individuals, private organizations, or other governments, or for major capital projects) that are restricted or committed to expenditures for specified purposes. 118
FY 22-23 Annual Results - All Funds
As of June 30, 2023
521 REGIONAL WATER QUALITY 51,144 1,044 - 1,044 - 52,188 266 BART (PARK & RIDE) 275,882 75,803 31,237 44,566 - 320,448 268 SB1 (RMRA) - 1,183,415 612,116 571,299 145,587 425,712 4,287,331 8,015,615 6,460,803 1,554,812 502,478 5,339,665 Enterprise Funds
Fund Number Fund Name
Beginning
Available
Balance
Revenues and
Transfers In
Expenditures
and Transfers
Out
Net Annual
Activities
Outstanding
Encumbrance
Ending
Available
Balance
420 WASTEWATER - OPERATION 23,267,142 6,273,226 17,057,784 (10,784,558) 935,584 11,547,000 421 WASTEWATER - CAPITAL - 13,700,000 3,185,367 10,514,633 10,514,633 - 23,267,142 19,973,226 20,243,151 (269,925) 11,450,217 11,547,000 Internal Service Funds
Fund Number Fund Name
Beginning
Available
Balance
Revenues and
Transfers In
Expenditures
and Transfers
Out
Net Annual
Activities
Outstanding
Encumbrance
Ending
Available
Balance
450 VEHICLE REPLACEMENT FUND 645,487 154,350 484,213 (329,863) - 315,624 460 IT EQUIPMENT REPLACEMENT 755,054 1,277,362 1,064,954 212,408 - 967,462 470 FACILITY MAINTENANCE FUND 838,182 787,000 782,512 4,488 114,791 727,879 2,238,723 2,218,712 2,331,679 (112,967) 114,791 2,010,965 Debt Service Funds
Fund Number Fund Name
Beginning
Available
Balance
Revenues and
Transfers In
Expenditures
and Transfers
Out
Net Annual
Activities
Outstanding
Encumbrance
Ending
Available
Balance
672 2003B DEBT SERVICE PFA 158,687 360,649 514,769 (154,120) - 4,567 673 2009 DEBT SERVICE PFA 1,993,825 978,719 908,671 70,048 - 2,063,873 388 EQUIPMENT LEASE - 226,432 226,432 - - - 2,152,512 1,565,800 1,649,872 (84,072) - 2,068,440 This fund accounts for wastewater treatment to the cities of Hercules and Pinole and for the maintenance of the City's sewer lines and related facilities. It is a self-supporting activity which provides services on a user charge basis to residences and businesses.

These funds account for activities related to vehicle replacement, IT equipment replacement, and facilities maintenance.

These funds are used to account for money that will be used to pay the interest and principal of long-term debts. Bonds used by a government to finance major construction projects, to be paid by tax levies over a period of years, require a deby service fund to account for their repayment. The debts of special assessment and proprietary funds are serviced within 119
FY 22-23 Annual Results - All Funds
As of June 30, 2023
Capital Projects Funds
Fund Number Fund Name
Beginning
Available
Balance
Revenues and
Transfers In
Expenditures
and Transfers
Out
Net Annual
Activities
Outstanding
Encumbrance
Ending
Available
Balance
295 FEDERAL GRANTS - 492,000 492,000 - - - 296 STATE GRANTS - 189,979 189,979 - - - 300 CITY CAPITAL PROJ-SINGLE 1,265,837 500,000 1,288,400 (788,400) 135,575 341,862 301 ENERGY CONSERVATION PROJECT 117,303 385 - 385 1,450 116,238 387 WATER QUALITY RET BASIN 182,539 59,233 10,747 48,486 - 231,025 1,565,679 1,241,597 1,981,126 (739,529) 137,025 689,125 Agency Funds
Fund Number Fund Name
Beginning
Available
Balance
Revenues and
Transfers In
Expenditures
and Transfers
Out
Net Annual
Activities
Outstanding
Encumbrance
Ending
Available
Balance
382 ASSMT DIST 05-01 DEBT SVC 386,115 237,457 229,374 8,083 - 394,198 501 TAYLOR WOODROW MAINT LMOD 69,457 1,419 - 1,419 - 70,876 511 GASB 45 OPEB LIABILITY 2,629,051 184,555 140,254 44,301 - 2,673,352 3,084,623 423,431 369,628 53,803 - 3,138,426 These funds are used to account for the construction or acquisition of fixed assets, such as buildings, equipment and roads. Depending on its use, a fixed asset may instead be financed by a special revenue fund or a proprietary fund. A capital project fund exists only until completion of the project.

These funds are used to account for assets held in trust by the City for the benefit of individuals or other entities. Financial Statements may further distinguish fiduciary funds as either trust or agency funds; a trust fund generally exists for a longer period of time than an agency fund. 120
City of Hercules
FY 22-23 Year-to-date Capital and Maintenance Project Report For Fiscal Year Ending June 30, 2023
As of 06/30/2023 % Expensed
Project
Number Description Previous Years As of 06/30/2023
Year-to-Date
Total Previous Years As of 06/30/2023
Year-to-Date
Total
Outstanding
Encumbrances
Remaining
Budget
and
Encumbered
63001 HERCULES RAIL STATION 46,377,537 - 46,377,537 46,377,537 - 46,377,537 - - 100% 63041 SEWER TRUNK LINE REHAB - 14,351,000 14,351,000 - 3,185,367 3,185,367 11,165,633 - 100% 63042 WILLOW/PALM PEDESTRIAN - 1,681,940 1,681,940 - 92,688 92,688 - 1,589,252 6% 63047 2021 REHAB PROJ SYCAMORE - 1,803,716 1,803,716 - 919,923 919,923 - 883,793 51% 63049 UPPER SEWER TRUNK LINE 100,000 100,000 40,396 - 40,396 - 59,604 40% 63052 BAYWOOD TREE REPLACEMENT 162,000 - 162,000 - 140,000 140,000 - 22,000 86% 63054 POLICE DEPT EXPANSION 100,000 60,000 160,000 - 4,259 4,259 - 155,741 3% 63056 HERCULES HUB - 1,694,531 1,694,531 - 632,226 632,226 - 1,062,305 37% 63063 BEECHNUT PARK - 254,000 254,000 - - - - 254,000 0% ARP212 WILLOW/PALM SIDEWALK INST 250,000 - 250,000 - - - - 250,000 0% ARP213 REFUGIO TENNIS COURT TREE 6,000 - 6,000 - - - - 6,000 0% ARP214 SIDEWALK & SAFE WALKWAYS 100,000 - 100,000 - 64,708 64,708 - 35,292 65% ARP215 CMMTY SWIM CTR FENCE REPL 100,000 - 100,000 - 91,987 91,987 - 8,013 92% ARP216 BLDG & DEFRRED MAINTENANC - 250,000 250,000 - 88,105 88,105 - 161,895 35% ARP221 BUILDING FACILITIES PLAN - 75,000 75,000 - - - - 75,000 0% ARP222 PARKS MASTER PLAN - 150,000 150,000 150,000 150,000 - - 100% BR2202 SWING SETS 100,000 - 100,000 - - - - 100,000 0% BR2207 TRAFFIC CALMING VILLAGE P 100,000 22,000 122,000 14,870 73,277 88,147 - 33,853 72% LLD231 REFURNISH GAZEBBO/RAILING - 55,000 55,000 - - - - 55,000 0% LLD232 OHLONE DOG PK TREE REM/PR - 85,000 85,000 - - - - 85,000 0% LLD233 TREE PLANTING/REM OPEN SP - 50,000 50,000 - 50,000 50,000 - - 100% LLD234 AERATOR REF VALLEY PARKS - 60,000 60,000 - 42,744 42,744 - 17,256 71% PW0004 REPAIR LEAK IN LIBRARY - 100,000 100,000 - - - - 100,000 0% PW2303 PW EMERGENCY REPAIRS 250,000 250,000 - 246,944 246,944 - 3,056 99% 47,295,537 21,042,187 68,337,724 46,432,803 5,782,228 52,215,031 11,165,633 4,957,060 93%

FUNDING SOURCES
DIF-POLICE FACILITIES 100,000 60,000 160,000 4,259 4,259 DIF-PARK & REC 50,000 50,000 -

DIF-TRAFFIC FACILITIES - -
GENERAL FUND 606,000 1,562,579 2,168,579 14,870 1,286,504 1,301,374 GRANTS 46,377,537 2,985,752 49,363,289 46,377,537 623,993 47,001,530 FACILITY REPLACEMENT 100,000 100,000 - LLAD 83-2 ZONE 10 195,000 195,000 92,744 92,744 LLAD 2002-1 VICTORIA BY THE BAY 55,000 55,000 - LLAD 2004-1 BAYWOOD 162,000 162,000 140,000 140,000 SEWER 14,451,000 14,451,000 40,396 3,185,367 3,225,763

STATE GAS TAX - -
MEASURE J RETURN TO SOURCE 184,889 184,889 - SB1 (RMRA) 1,347,967 1,347,967 349,361 349,361

BART - -
SOLID WASTE 100,000 100,000 100,000 100,000 47,295,537 21,042,187 68,337,724 46,432,803 5,782,228 52,215,031 Budget Actual Expenditures-to-date
121
Preliminary Annual Financial Results
For the year ending June 30, 2023

COUNCIL REGULAR MEETING OF
FEBRUARY 13, 2024
122
Presentation
– Receive
Update
General Fund Preliminary
Year-End Results
Non-General fund Preliminary
Year-End Results
Capital projects Update
123
General Fund
Highlights
 Steady revenue growth
improves the City’s financial
position
 General Tax revenues
continue to show positive
results
 Overall, the General Fund
revenues were higher than
anticipated
124
General Fund
Total Revenues
About 82% of the General Fund revenues
comes from voter-approved taxes and
these tax revenues levied to fund general
government services.
125
General Fund
Revenues – Preliminary Results
Overall General Fund revenues
have increased 21% compared
to FY 20-21 during pandemic.
• Sales tax revenue exceeded revenue
projections by 15% or $749K.
• The City collected close to $4 million
in UUT, about $407K higher than the
forecast.
• Due to risin
g interest rates (post-
pandemic), the City’s investment
income was higher b
y $508K
compared to the estimate.
• Parks & Recreation program revenues
have increased due to the reopening
of programs.
126
General Fund
Expenditures – Preliminary Results
Overall General Fund
expenditures have increased
compared to FY 20-21 by 19%
The increase in Ongoing
Expenditures is attributed to
the following:
• Salary Increases
• Operating Cost
Increases, and
• Reopening
of Parks &
Recreation Programs
127
General Fund Summary
Budget Actual Variance
Beginning A vailable Balance 977,254 $ 977,254 $ - $ Revenues 17,464,461 19,530,255 2,065,794
Expenditures 18,351,166 18,698,947 (347,781)
Net Annual Results (886,705) 831,308 1,718,013
Ending A vailable Balance $90,549 $1,808,562 $1,718,013 128
Non-General Funds Year End Results
Special Revenue Funds
account for the proceeds of
specific revenue sources
restricted or committed to
expenditures for specified
purposes. As of June 30, 2023,
the collective ending balance
was $5.3 million. However, two
of the special revenue funds
were at negative fund
balances. Staff are working on
additional revenue sources to
address the deficits.

Enterprise Fund accounts for
the wastewater treatment of
Pinole and Hercules and the
maintenance of the City's
sewer lines and related
facilities. It is a self-supporting
activity that provides services
to residences and businesses
on a user-charge basis. As of
June 30, 2023, the ending
available fund balance was
$11 million, including the
commitments from major CIP,
the Sycamore Avenue Lower
Trunk Main project, of
approximately $14 million.
129
Non-General Funds
Year End Results,
Cont’d.
 Capital Projects funds account for the
construction or acquisition of fixed
assets, such as buildings, equipment and
roads. Depending on its use, a fixed
asset may instead be financed by a
special revenue fund or a proprietary
fund. A capital project fund exists only
until completion of the project. The
Capital Improvement Projects Funds had
an aggregate expense of $52 million
through June 30, 2023, as illustrated in
attachment 3. There is sufficient funding
to complete the projects.
 Debt Service funds accounts for the
long-term debt of the City. Sufficient
funds are transferred from a variety of
sources to meet debt service obligations
as they come due.
130
Non-General Funds Year
End Results, Cont’d.
 Internal Service funds includes funds
created for the accumulation of reserves
for vehicle replacement, technology and
equipment replacement, and facili
ty
maintenance. Revenues for these funds
are derived from administrative (cost
recovery) charges to other funds,
primarily the General Fund. The fund
balance of the Internal Service Funds
group was $2 million as of June 30, 2023.
131
Non-General Funds Year
End Results, Cont’d.
 The Fiduciary Funds group includes the assessment
district bond that is not an obligations of the City
and a trust fund established for the Other Post-
Employment Benefits (OPEB). As of June 30, 2023,
the OPEB account has accumulated $2.7 million.
 The Successor Agency is an entity separate from
the City and accounted for in separate trust funds
that are used to account for tax increment monies
received and payments of items approved by the
Oversight Board in the Required Obligation
Payment Schedule (ROPS). The responsibility of the
successor agency is to wind down the affairs of the
former Redevelopment Agency and pay off any
debt obligations incurred by the Redevelopment
Agency.
132
Questions?
133
DISCU

SSION AND/OR ACTION

AGENDA ITEM

2. 22-767
134

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 13, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Eibleis Melendez, City Clerk
Patrick Tang, City Attorney
SUBJECT: Policy Regarding Remote Public Participation
RECOMMENDED ACTION:

Provide direction to staff regarding a remote participation option for members of the public at public meetings.

BACKGROUND:

At the January 9, 2024, City Council meeting, the Council approved a request from Council Member Bailey for staff to provide an update on the City’s current policy suspending public comment via Zoom.

The Brown Act (CA Government Code Sections 54950 et seq.) requires that the City Council conduct business in open, public, and noticed meetings. Before the Covid-19 Pandemic, all City Council meetings were held in person and there were no options for “real time” remote participation , although comment could be submitted in writing in advance of the meetings. During COVID-19, the City implemented technology upgrades to accommodate the Zoom platform as a format for the public to engage in public meetings remotely and safely. The City Council and Planning Commission meetings were organized to provide the public with remote participation options. This allowed for public participation that otherwise would not have been possible due to the Covid lockdown.

In late 2023, cities in the surrounding area and throughout the State that, like Hercules, added the capability for remote public participation experienced an uptick in organized 22-767
135
attacks by remote participants who made racist, homophobic, and antisemitic comments via Zoom, a phenomenon known as “Zoom Bombing”. These attacks take advantage of the Zoom open participation platform and are clearly intended to spread a hateful ideology. It is a cynical strategy that hijacks a public entity’s efforts to expand citiz en outreach to instead spread dissension and hate. Out of an abundance of caution, and to prevent the City’s technology and electronic outreach from being misused in such a manner, staff recommended, and the City Council concurred, that remote participation should be suspended for the foreseeable future . During the suspension of remote participation, the public has been able to listen and watch via Zoom, but unable to provide public comment from remote locations. Currently, if a member of the public would like to provide a public comment, they can attend the meeting in -person or submit th eir public comment in advance via email to the City Clerk.

Based on anecdotal information it appears that instances of Zoom Bombing decreased towards the end of 2023. This may be the result of the responsible hate groups becoming less active, but could also be due to the measures taken by various public agencies t o prevent being targeted by reducing or eliminating the option for remote public participation. However, coordinated Zoom Bombing is still occurring and remains a real possibility as long as the City provides a platform that can be exploited by such attack s.

It has come to the attention of Staff that a Zoom Bombing occurred as recently as February 6, 2024, during a City of Richmond council meeting.

There are hundreds of public entities in California. Assuming these attacks are random in nature, the chances of Hercules being targeted may appear slim . However with many public entities eliminating remote public access (see City Clerk’s Survey, attached) , the probability increases that a public entity in the remaining pool of entities offering remote participation will eventually be targeted.

ANALYSIS:

The City Clerk’s office surveyed surrounding agencies (Attachment 1). Out of twenty-five (25) cities, twelve (12) cities either no longer offer the option to attend City Council meetings remotely or have not returned to remote participation due to the “Zoom Bombing” that their city experienced. Seven (7) cities offer a hybrid option with limitations, such as limiting general public comment to in person attendees or reducing the amount of time allowed for public comment. The remaining six (6) cities never suspended remote participation. Below is a list of potential opportunities and obstacles in allowing remote participation via Zoom.

Opportunities:
 Remote participation allows for an additional means for the public to communicate with their elected officials.
136
 Provides greater accessibility to citizens who have mobility or childcare issues and are unable to attend a public meeting in person.
 Having the ability to watch a meeting and comment remotely may increase public participation.
 Even if a coordinated attack were to occur, the City could respond by affirming its core values and making it clear the City rejects and condemns the hate speech.

Obstacles:

 The addition of remote public comment makes public entities vulnerable to nefarious groups outside the jurisdiction, possibly out of the State, that would use the remote participation option to mount coordinated attacks to spread hate speech.
 These hate groups are highly organized and disruptive and they actively seek out opportunities to use the broadcast of public meetings as a forum for spreading hate and dissention.
 The use of Zoom for public comment creates challenges in controlling disruptive behavior during public meetings since participants on Zoom can be anonymous.  The organized nature of the attacks can “crowd out” local citizens who want to participate remotely. This could have a chilling effect on the free speech of Hercules residents who may avoid participating in public meetings and/or sharing personally identifying information for fear of being personally targeted by organized hate groups.

The following are a list of options to consider moving forward:
 Return to allowing remote public comment by way of Zoom before the suspension was implemented.
 Accept remote public comment only for specific items on the agenda. According to the City Attorney this would p rovide only limited ability to address content based speech.
 Accept public comment both in person and remotely but the time the public is allowed to speak would be reduced from the three (3) minutes that is currently in place. This option would mean that citizens who appear in person to speak to their elected officials would also be subject to the shortened comment period.  Continue to provide a hybrid option to watch and listen to the meeting , but public comment can only be received in person or via email.

Pursuant to California Government Code, t he City is not obligated to provide remote participation options in meetings; most public agencies provide it as a courtesy. If the City Council directs staff to bring back the use of Zoom for remote public comments, applicable 137
law would not allow the City to impose restrictions upon remote participants (such as residency restrictions or requiring speakers to identify themselves).

During the remote participation suspension period, October 2023 to present, the City has not received complaints from the public regarding the modified participation policy . It should also be noted that during the period that remote public speaker pa rticipation was allowed, the option was rarely utilized, suggesting that a continuation of the suspension would not materially affect the level of public participation in public meetings in Hercules.

FISCAL IMPACT:

There is no additional fiscal impact associated with the list of options moving forward identified above.

ATTACHMENTS:

1. Remote Participation Survey of Local Agencies

138
Remote Participation Survey of Local Agencies (As of January 1, 2024) Agency/ Body Targeted Current Zoom Status (As of January 1, 2024) Notes City of Alameda Hybrid with limitations Remote Public Comm ent on Agenda Items Only City of Albany Hybrid with limitations
City of Antioch Discontinued Remote Public Comment
City of Berkeley Never Suspended Remote Participation
City of Brentwood Hybrid with limitations Remote Public Comment on Agenda Items Only City of Concord Discontinued Remote Pubic Comment
City of Danville Discontinued Remote Pubic Comment
City of Dublin Never Suspended Remote Participation
City of El Cerrito Discontinued Remote Pubic Comment
City of Fremont Discontinued Remote Pubic Comment
City of Hayward Hybrid with limitations
City of Lafayette Never Suspended Remote Participation
City of Livermore Discontinued Remote Pubic Comment
City of Martinez Never Suspended Remote Participation
City of Newark Discontinued Remote Pubic Comment
City of Oakland Never Suspended Remote Participation
City of Oakley Discontinued Remote Pubic Comment
City of Orinda Discontinued Remote Pubic Comment
City of Piedmont Hybrid with limitations
City of Pinole Hybrid with limitations
City of Pittsburg Discontinued Remote Pubic Comment
City of Pleasanton Discontinued Remote Pubic Comment
Public Comment only if Council Member is
Remote
City of Richmond Never Suspended Remote Participation
City of San Leandro Hybrid with limitations
City of San Ramon Discontinued Remote Pubic Comment
139
DISCU

SSION AND/OR ACTION

AGENDA ITEM

3. 22-768
140

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 13, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Michael Roberts, Public Works Director/City Engineer SUBJECT: Cooperative Funding Agreement with West Contra Costa Transportation Advisory Committee (WCCTAC) to Receive an Additional $800K in Subregional Transportation Mitigation Program (STMP) Funding for The Hub
RECOMMENDED ACTION:

Adopt a resolution approving a Cooperative Funding Agreement with West Contra Costa Transportation Advisory Committee (WCCTAC) to receive $ 800K in Subregional Transportation Mitigation Program (STMP) funding in addition to the original $750K for a total new Agreement amount of $1.55M to advance The Hub and authorizing the City Manager to execute the Agreement on behalf of the City.

BACKGROUND:

The STMP was adopted by WCCTAC in 1997 and funds regionally significant transportation projects that mitigate traffic impacts caused by growth. The progr am is funded by fees charged to new development in West County and disbursements , which are competitively based, are made on an on-going basis as funding allows.

The Hub is an eligible project under the STMP program and will create a regional, state- of-the-art housing and transportation community on the waterfront overlooking the San Pablo Bay. The Hub will connect thousands of housing units with a new train stop along the Capitol Corridor, bicycle and pedestrian pathwa ys, bus routes, carpool options, and ferry service. To date $46M in capital improvements has been constructed for this facility and the City is fully engaged in securing the remaining funding needed to complete the design and construct the remaining infrastructure that will allow the Capitol Corridor train 22-768
141
to serve the Hub. STMP funding can be used to advance the design and as a match for state and federal grant funding, so is highly advantageous to secure.

ANALYSIS:

The cooperative funding agreement with WCCTAC for $750K in STMP funding to advance the design of The Hub was originally executed in 2019 . Of this $750K, approximately $146K has been expended, $427K has been committed but not yet spent, and $177K remains available.

In September 2 023 the WCCTAC Board of Directors approved an appropriation of an additional $800K for The Hub and at their January 26, 2024 meeting approved the funding agreement for a total combined amount of $1.55M which includes the new $800K in funding and extends the eligibility date of the original $750K.

The cooperative funding agreement has been reviewed by the City Attorney and City Engineer and is recommended for approval.

Under a separate agreement, an additional $300K in STMP funding was allocated to the City by the WCCTAC Board in 2001, which will be brought to the City for an extension later this year.

FISCAL IMPACT:

The $800K in STMP funding will provide additional financial resources to advance The Hub, including design and as a match for state and federal grants.

ATTACHMENTS:

Attach 1- Resolution
Attach 2 – Agreement

142
RESOLUTION NO. 23-

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

A COOPERATIVE FUNDIN G AGREEMENT WITH WES T CONTRA COSTA TRANSPORTATION ADVIS ORY COMMITTEE (WCCTA C) TO RECEIVE $800K IN

SUBREGIONAL TRANSPORTATION MITIGATION PR OGRAM (STMP) FUNDING IN ADDITION TO THE ORIGINAL $750 K FOR A TOTAL NEW AGREEMENT AMOUNT OF $1.55M TO ADVANCE THE HUB AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT ON BEHALF OF THE CITY.

WHEREAS, the STMP was adopted by WCCTAC in 1997 and funds regionally significant transportation projects that mitigate traffic impacts caused by growth; and

WHEREAS, a cooperative funding agreement with WCCTAC for $750K in STMP funding to advance the design of The Hub was originally executed in 2019; and

WHEREAS, in Sept ember 2023 the WCCTAC Board of Directors approved an appropriation of an additional $800K for The Hub and at their January 26, 2024 meeting approved a funding agreement with Hercules for a total combined amount of $1.55M which includes the new $800K in fun ding and extends the eligibility date of the original $750K; and

WHEREAS, the additional $800K in S TMP funding can be used to advance the design of The Hub and serve as a local match for State and Federal grants.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that the City Cou ncil hereby approves a Cooperative Funding Agreement with West Contra Costa Transportation Advisory Committee (WCCTAC) to receive $800K in Subregional Transportation Mitigation Program (STMP) funding in addition to the or iginal $750K for a total new Agreement amount of $1.55M to advance The Hub and authorizing the City Manager to execute the Agreement on behalf of the City.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the thirteenth day of February, 2024 by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

____________________________
Dan Romero, Mayor

143

ATTEST:

Eibleis Melendez, City Clerk
144
CO

OPERATIVE FUNDING AGREEMENT BETWEEN

WEST CONTRA COSTA TRANSPORTATION ADVISORY COMMITTEE
AND
City of Hercules

Hercules Hub Final Design Project

This AGREEMENT is made and entered into as of __________, (the “Effective Date”) by and between the West Contra Costa Transportation Advisory Committee (“WCCTAC”), a Joint Exercise of Powers Agency organized pursuant to California Government Code Section 6500, et. seq., among the cities of El Cerrito, Hercules, Pinole, Richmond, and San Pablo, the County of Contra Costa, and the transit agencies AC Transit, Bay Area Rapid Transit District, and Western Contra Costa Transit Authority, with offices located at 6333 Potrero Avenue, Suite 100, El Cerrito, CA 94530, and City of Hercules, a municipal corporation.

WCCTAC and City of Hercules (“Agency”) shall sometimes be referred to collectively herein as the “Parties” and individually as a “Party.”

RECITALS

WHEREAS, the members of WCCTAC signed a Master Cooperative Agreement pertaining to the 2006 Subregional Transportation Mitigation Fee Program (“2006 STMP”) in West Contra Costa County, including a list of eleven specific projects and the STMP funding commitments to those projects; and

WHEREAS, at its December 14, 2018 meeting, the WCCTAC Board of Directors approved an appropriation of up to seven hundred fifty thousand dollars ($750,000) in 2006 STMP funds to the Agency under the Capitol Corridor Improvements category, project three of the eleven projects identified in the 2006 STMP category; and

WHEREAS, due to a variety of issues with project development and funding, the Project was delayed; and

WHEREAS, the members of WCCTAC signed a subsequent Master Cooperative Agreement pertaining to the 2019 Subregional Transportation Mitigation Fee Program Update (“2019 STMP”) in West Contra Costa County, including a list of twenty specific projects and the STMP funding commitments to those projects; and

WHEREAS, at its September 29, 2023 meeting, the WCCTAC Board of Directors approved an appropriation of eight hundred thousand dollars ($800,000) in 2019 STMP funds to Agency towards the Subsequent Project under the Hercules Regional Intermodal Transportation Center category, project ten of twenty projects identified in the 2019 STMP; and

WHEREAS, the original funding allocation of $750,000 provided under the 2006 STMP expired on June 20, 2021; and
145
W
HEREAS, the WCCTAC Board authorized an extension of the original funding allocation at its meeting on September 29, 2023; and

WHEREAS, at its September 29, 2023 meeting, the WCCTAC Board of Directors further approved combining the original funding allocation of $750,000 and the subsequent funding allocation of $800,000 into a single funding agreement of one million, five hundred and fifty thousand dollars ($1,550,000) in STMP funds to Agency; and

WHEREAS, Agency’s proposed use of funds, as further described in the Scope of Work, attached as Exhibit A, which is incorporated herein (“Project”); and

WHEREAS, plans, studies, cost estimates and design for Agency’s Project are eligible uses for the STMP funds; and

Now, therefore, the Parties hereby agree as follows:

SECTION 1

SCOPE OF WORK

1.1 Scope of Work. Subject to the terms and conditions set forth in this Agreement, Agency shall perform or cause to perform the work described in the scope of work attached as Exhibit A, and incorporated herein (the “Scope of Work”), at the time and place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail.

1.2 Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on January 29, 2028, and Agency shall complete the work described in Exhibits A and B on or before that date, unless the term of the Agreement is otherwise terminated or extended. The time provided to Agency to complete the services required by this Agreement shall not affect WCCTAC’s right to terminate the Agreement.

1.3 Standard of Performance. Agency shall perform or cause to be performed all services required in Exhibit A according to the standards observed by a competent practitioner of the profession in which Agency’s consultants or contractors are engaged.

1.4 Assignment of Personnel. Agency shall retain only competent personnel to perform the Project to this Agreement. In the event that WCCTAC, in its sole discretion, desires the reassignment of any such persons, Agency shall, upon receiving notice from WCCTAC, of such desire of WCCTAC, reassign such person or persons.

1.5 Time is of the Essence. Time is of the essence. Agency shall devote such time to the performance of the Project pursuant to this Agreement as may be reasonably necessary to timely finish the Scope of Work.

1.6 Public Works and Department of Industrial Relations Requirements. Because the Project and Scope of Work described in Exhibit A may include “work performed during the design and preconstruction phases of construction including, but not limited 146
t
o, inspection and land surveying work,” the Project may constitute a public works within the definition of Section 1720(a)(1) of the California Labor Code. In accordance with California Labor Code Section 1773.2, WCCTAC notifies Agency that this Project is subject to the general prevailing wages in the locality in which the services described in Exhibit A are to be performed. Agency shall cause to be paid prevailing wages for each craft or type of work needed to be as published by the State of California Department of Industrial Relations, Division of Labor Statistics and Research, a copy of which Agency shall make available on request by contractors and consultants. The Agency, its consultant and contractors engaged in the performance of the Scope of Work described in Exhibit A shall pay no less than these rates to all persons engaged in performance of the services described in Exhibit A. Agency is also required to comply all relevant provisions of the Labor Code applicable to public works, including enforcement of the contractor registration requirements of the California State Department of Industrial Relations.

SECTION 2

FUNDING OBLIGATIONS

2.1 Funding. In accordance with the WCCTAC Master Cooperative Agreement pertaining to the 2006 and 2019 STMP, and subject to available funding, WCCTAC hereby agrees to fund Agency’s Project in a sum not to exceed one million, eight hundred and eleven thousand dollars, ($1,811,000) notwithstanding any contrary indications that may be contained in Agency or any third-party proposal for services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Agency’s Scope of Work, attached as Exhibit A, regarding the amount of compensation, the Agreement shall prevail.

The payments specified herein shall be the only payments from WCCTAC to Agency pursuant to this Agreement. Agency shall submit all invoices to WCCTAC in the manner specified herein. Agency shall not bill WCCTAC for duplicate services performed by more than one person.

WCCTAC and Agency acknowledge and agree that funding paid by WCCTAC to Agency under this Agreement is based upon Agency’s estimated costs of funding Agency’s Project, including salaries and benefits of employees, consultants and contractors of Agency. WCCTAC has no responsibility for such contributions beyond the amount set forth under this Agreement.

2.2 Invoices. Agency shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost it incurs for services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information:

a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;
b. The beginning and ending dates of the billing period; 147
c. A
task summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion;
d. Such other information as reasonably requested by WCCTAC.

2.3 Monthly Payment. WCCTAC shall make monthly payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable costs incurred. WCCTAC shall have 60 days from the receipt of an invoice that complies with all of the requirements above to pay Agency.

2.4 Total Payment. In no event shall Agency submit any invoice for an amount in excess of the maximum amount of compensation provided in Section 2.1, above, either for a task or for the entire Agreement, unless the Agreement is modified in writing prior to the submission of such an invoice by a properly executed change order or amendment.

2.5 Reimbursable Expenses. Reimbursable expenses shall not include a mark-up and are billed as a direct cost. In no event shall expenses be advanced by WCCTAC to the Agency. Reimbursable expenses are included in the total amount of compensation provided under this Agreement that shall not be exceeded.

2.6 Payment of Taxes. Agency and its contractors and consultants are solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes.

2.7 Payment upon Termination. In the event that WCCTAC or Agency terminates this Agreement pursuant to Section 3.4, WCCTAC shall compensate the Agency for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date of written notice of termination. Agency shall maintain adequate logs and timesheets to verify costs incurred to that date.

2.8 Authorization to Perform Services. The Agency is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from WCCTAC’s Executive Director or his designee.

2.9 Funding Request. Agency shall submit the request for funds for specific components of the Project, detailing project scope, schedule and proposed funding plan, at least four (4) months in advance of the initial anticipated cash flow need or reimbursement; to submit subsequent requests at least two (2) months in advance of anticipated need; and to apply any funds received under this Agreement to the Project consistent with the terms and conditions of an approved funding appropriation.

2.10 Progress Reports. Progress reports shall be submitted along with the funding request in Section 2.9. Agency shall submit progress reports in a form satisfactory to WCCTAC based on the cost for services performed.

148

2.11 Records Keeping. All reports, studies, plans, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Agency prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be made available to WCCTAC at WCCTAC’s request. .

2.12 Agency Financial Records. Agency shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to WCCTAC under this Agreement for a minimum of 3 years, or for any longer period required by law, from the date of final payment to the Agency to this Agreement.

2.13 Inspection and Audit of Records. Any records or documents that Sections 2.11 and

2.12 of this Agreement requires Agency to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request by WCCTAC. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds $10,000.00, the Agreement shall be subject to the examination and audit of the State Auditor, at the request of WCCTAC or as part of any audit of WCCTAC, for a period of 3 years after final payment under the Agreement.

SECTION 3

GENERAL PROVISIONS

3.1 Funding Limitations and Contingencies. If, in response to the Request for Proposal(s), it appears that Project costs including contingency, will exceed the funding set forth in Section 2.1, the Parties agree that they shall meet to revise Scope of Work to meet available funding. Funding of Agency’s Project is strictly contingent upon WCCTAC having received, appropriated and allocated sufficient STMP funds for the Agency’s Project. Funding is also contingent upon WCCTAC receiving a fully executed Agreement from Agency. If the Scope of Work cannot be revised to meet available funding, then WCCTAC reserves the right to terminate this Agreement, or suspend funding, until such time that additional STMP funds are available and allocated to Agency’s Project.

3.2 Acceptance. Upon completion of the Project, Agency shall submit a report documenting that the Project is substantially complete. Agency shall be responsible for filing the appropriate notice of completion for the Project and shall provide a copy to WCCTAC for its records.

3.3 Alternative Dispute Resolution. All disputes that arise in connection with interpretation or performance of the Agreement shall first attempted to be resolved informally by the Parties. If not resolved, prior to instituting legal action, the Parties agree to participate in mediation with a mediator jointly selected by the Parties. If the 149
di
spute is not resolved by mediation, then the Parties will retain any and all remedies that they otherwise would have at law or equity.

3.4 Termination. This Agreement shall be subject to termination as follows:

a. Either Party may terminate this Agreement at any time for cause pursuant to a power created by the Agreement or by law, other than for breach, by giving written notice of termination to either Party, which notice shall specify both the cause and the effective date of termination. Notice of termination under this provision shall be given at least ninety (90) days before the effective date of such termination. All obligations that are still executory will be discharged but any right based upon prior breach or performance shall survive. b. This Agreement may be terminated by a Party for breach of any obligation, covenant, or condition by the other Party, upon notice to the breaching Party.

With respect to any breach that is reasonably capable of being cured, the breaching Party shall have thirty (30) days from the date of the notice to initiate steps to cure. If the breaching Party diligently pursues cure, such Party shall be allowed a reasonable time to cure, not to exceed sixty (60) days from the date of the initial notice, unless a further extension is granted by the non-breaching Party.

On termination, the non-breaching Party retains the same rights as a Party exercising its right to terminate under the provisions of Section 3.4, except that the non-breaching Party also retains any remedy for breach of the whole contract or any unperformed balance.
c. By mutual consent of both Parties, this Agreement may be terminated at any time. d. This Agreement may be terminated by WCCTAC if funding for Agency’s Project is no longer available by operation of law, or by action taken by the WCCTAC Board of Directors to reallocate funds.
e. In no event shall the Parties terminate this Agreement if such termination would conflict with, cause a default under, or otherwise violate the terms or conditions of any revenue bonds.

3.5 Waiver of Claims Against WCCTAC. Agency waives all claims by Agency, its directors, supervisors, officers, employees, or agents against WCCTAC, its commissioners, officers, employees, or agents for damages, loss, injury and/or liability, direct or indirect, resulting from Agency’s participation in the Project. Agency’s waiver shall not apply to liability arising from and caused by the sole negligence or willful misconduct of WCCTAC, its commissioners, officers, employees, or agents.

3.6 Indemnity. Agency shall defend, indemnify and hold harmless WCCTAC, its governing board, member agencies, officers, employees, and agents from and against any and all liability, loss, damage, claims, expenses, and costs (including without limitation, reasonable attorney’s fees and costs and fees of litigation) (collectively, “Liability”) of every nature arising out of or in connection with Agency’s performance of any work under this Agreement, except such Liability caused by the sole negligence 150
or
willful misconduct of WCCTAC. With respect to any claims brought against Agency by a third party, Agency waives any and all rights of any type to express or implied indemnity by WCCTAC.

3.7 Notices. All notices (including requests, demands, approvals or other communications) under this Agreement shall be in writing. Notice shall be sufficiently given for all purposes as follows:

a. When delivered by first class mail, postage prepaid, notice shall be deemed delivered three (3) business days after deposit in the United States Mail. b. When mailed by certified mail with return receipt requested, notice is effective upon receipt if delivery is confirmed by a return receipt. c. When delivered by overnight delivery by a nationally recognized overnight courier, notice shall be deemed delivered one (1) business day after deposit with that courier.
d. When personally delivered to the recipient, notice shall be deemed delivered on the date personally delivered.
e. The place for delivery of all notices under this Agreement shall be as follows:

If to WCCTAC:

John Nemeth, Executive Director
West Contra Costa Transportation Advisory Committee
6333 Potrero Avenue, Suite 100
El Cerrito, CA 94530

with a Copy to:

Kristopher J. Kokotaylo, Legal Counsel
Meyers Nave
1999 Harrison Street, 9
th Floor
Oakland, CA 94612

If to Agency:

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

3.8 Additional Acts and Documents. Each Party agrees to do all such things and take all such actions, and to make, execute, and deliver such other documents and instruments, as shall be reasonably requested to carry out the provisions, intent, and purpose of this Agreement.
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3.9 Integration. This Agreement represents the entire agreement of the Parties with respect to the subject matter. No representations, warranties, inducement, or oral agreements have been made by any of the Parties except as expressly set forth in this Agreement.

3.10 Governing Law. The laws of the State of California shall govern this Agreement.

Agency and any consultants and contractors shall comply with all laws, including, but not limited, all statutes, regulations, local ordinances, and decisional authority, applicable to the Scope of Work hereunder. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Agency and any subcontractors shall comply with all applicable rules and regulations to which WCCTAC is bound by the terms of such fiscal assistance program.

3.11 Amendment. This Agreement may not be changed, modified, or rescinded except by the written approval, and any attempt of oral modification of this Agreement shall be void and of no effect.

3.12 Independent Contractor. Agency and WCCTAC render their services under this Agreement as independent contractors. None of the agents or employees of either shall be agents or employees of the other.

3.13 Assignment. This Agreement may not be assigned, transferred, hypothecated, or pledged by any Party without the express written consent of the other Party.

3.14 Successors and Assigns. This Agreement shall be binding upon the successors, assignees, or transferees of WCCTAC or Agency as the case may be. This provision shall not be constructed as an authorization to assign, transfer, hypothecate, or pledge this Agreement other than as provided above.

3.15 Severability. Should any part of this Agreement be determined to be unenforceable, invalid, or beyond the authority of either Party to enter into or carry out, such determination shall not affect the validity of the remainder of this Agreement, which shall continue in full force and effect, so long as the remainder, absent the excised portion, can be reasonably interpreted to give effect to the intentions of the parties.

3.16 Jurisdiction and Venue. In the event that either party brings any action against the other under this Agreement, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Contra Costa or in the United States District Court for the Northern District of California.

3.17 Attorney’s Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

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3.18 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.

3.19 Counterparts. This Agreement may be executed in counterparts.

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and attested by their respective officers, duly authorized so to act, as of the date set forth in the first paragraph of this Agreement.

City of Hercules

West Contra Costa Transportation
Advisory Committee

Dante Hall, City Manager

John Nemeth, Executive Director

Approved as to Form: Approved as to Form:

City Attorney Kristopher Kokotaylo, Legal Counsel

3852446.1
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EX

HIBIT A

SCOPE OF WORK
The Agency agrees to:

1. To act as the lead agency and take responsibility for evaluating prospective consultants and contractors retained by Agency and subsequent award of work consistent with this Agreement.

2. To act as the lead agency and retain, as appropriate, consulting services consistent with this Agreement.

3. To be responsible for providing management of consultant and contractor activities, including responsibility for scheduling, budgeting, and oversight of the services, consistent with the scope of the project.

4. To advance or complete all or a portion of following STMP project identified as funding categories: 2006 STMP Project # 3: Capitol Corridor Improvements and 2019 STMP Project # 10: Hercules Regional Intermodal Transportation Center.

5. To use the STMP funds (Explain how the project will use the STMP funds.) as a local match to seek additional grant funds and to advance the final design work.

6. To produce or complete (List what work products and/or improvements will result from the funding.) the plans, specifications and estimates.

7. To complete the over-all project based on the following initial schedule for the project:
(Provide an estimated schedule for completing the entire project.) TASK MONTH or QUARTER and YEAR
Begins Ends
Preliminary Engineering Q2 2012
Detailed Design (including PS&E) Q1 2020 Q2 2027
Advertise Construction Q2 2027 Q3 2027
Award Contract Q3 2027 Q3 2027
Construction Begins Q3 2027 Q3 2029
Construction Complete/ Open to the
Public
Q3 2029 Q3 2029
Project Close-Out Q1 2030 Q1 2030

8. To complete the STMP-funded portion of the project based on the estimated completion date of (Insert the estimated timeframe for completing the work funded by STMP.) Q2 2027.

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DISCU

SSION AND/OR ACTION

AGENDA ITEM

4. 22-769
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REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 13, 2024
TO: Mayor and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
SUBJECT: Adopt A R esolution Authorizing the City Manager To Execute An Agreement With Tripepi Smith and Associates For An Amount Not To Exceed $22,000 For City Branding Services
RECOMMENED ACTION:

BACKGROUND:

Hercules has evolved over the last few decades to become a more vibrant and inclusive community with many new developments . More families, professionals, and businesses are attracted to the City due to its growth into a transit-oriented community, convenient location to major job centers, and lifestyle opportunities. Therefore, staff believes the City of Hercules could benefit from building brand awareness by utilizing various public relations strategies and activities. A public relations firm could perform a range of duties that will familiarize residents, visitors, and the region with the distinctive qualities of the City and the opportunities that come with residing, visiting, and investing in the City.

ANALYSIS:

In late 2021, t he City engaged Tripepi Smith and Associates for a two -phase project regarding the City’s communications process and effectiveness with respect to community engagement. A comprehensive analysis of the City’s strategic communications with improvement recommendations was completed in the first phase.

The second phase is built on those recommendations by assisting with the implementation of desired improvements. Tripepi Smith has worked with the City of 22-769
156
Hercules to provide communication services over the past few years with great success.

Their ability to provide branding services for the City would build on the existing communication achievements and provide continuity to further establish a unique brand.

The initial focus of this branding initiative is on internal and external collateral and signage that could include future items such as employee business cards and identification cards, email signatures, memos, letters, website, vehicle decals, uniforms, promotional items, event marketing/cross-promotion, and some city signage.

The proposed scope of work includes the following:
 Logo Development
o Brand Research & Report
o Kickoff interview with committee and stakeholder outreach o Providing drafts for review
o Finalize Design
o Providing a logo library

 Branding Guidelines – Developing a Style Guide

 Developing Templates
o Business cards
o Email signature blocks
o Presentation backgrounds (zoom/teams)
o Word templates
o Flyer template

Tripepi Smith has provided similar branding services for cities like Livermore, San Leandro, and Norwalk to name a few.

FISCAL IMPACT:

Funds for this agreement have been appropriated in the FY 2023 -2024 Budget - City Council Professional Services Fund (100-4010-611.90-00). No additional funding is being requested.

ATTACHMENTS:

1. Resolution Authorizing the City Manager to Execute an Agreement with Tripepi Smith for An Amount Not To Exceed $22,000 for City Branding Services

2. Exhibit A – Proposal: Branding for the City of Hercules 157
RESOLUTION NO. ____

A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AGREEMENT WITH TRIPEPI SMITH AND ASSOCIATES FOR AN AMOUNT NOT TO EXCEED $22,000 FOR CITY BRANDING SERVICES

WHEREAS, the City of Hercules has evolved over the last few decades to become a more vibrant and inclusive community with many new developments; and

WHEREAS, more families, professionals, and businesses are attracted to the City due to its growth into a transit-oriented community, convenient location to major job centers, and lifestyle opportunities; and

WHEREAS, the City of Hercules could benefit from building brand awareness by utilizing various public relations strategies and activities; and

WHEREAS, A public relations firm could perform a range of duties that will familiarize residents, visitors, and the region with the distinctive qualities of the City and the opportunities that come with residing, visiting, and investing in the City; and

WHEREAS, in late 2021, the City engaged Tripepi Smith and Associates to evaluate and assist with improving the City’s communications process and effectiveness with respect to community engagement; and

WHEREAS, working with Tripepi Smith would build on the existing communication achievements and provide continuity to further establish a unique brand.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that the City Council hereby authorizes the City Manager to execute an agreement with Tripepi Smith and Associates for an amount not to exceed $22,000 for City branding services.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 13th day of February 2024 by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

____________________________
DAN ROMERO, Mayor
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ATTEST:

________________________________
Eibleis Melendez, City Clerk
159
Proposal:

BRANDING

FOR CITY OF HERCULES

Submitted by Ryder Todd Smith, President
Jennifer Vaughn, Director
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Page 2 of 5 ends

COVER LETTER

Thank you for this opportunity to partner with the City of Hercules on your branding efforts. It’s been a pleasure to work with you over the last few years on your communication and see your city receive recognition for its many accomplishments. This proposal identifies Tripepi Smith’s qualifications to provide branding services for the City. Our professional, highly trained team is well-positioned to help the City execute on its public information and outreach activities.

Tripepi Smith has a strong record of working with public agencies throughout California to better engage and connect with residents. We have provided branding services for cities like Livermore, San Leandro, and Norwalk to name a few.

As President of Tripepi Smith, I have legal authority to bind the company to contracts and the proposed terms in this letter. This proposal to amend our existing Agreement is valid for thirty (30) days following the submission of this letter.

Ryder Todd Smith, Co-Founder & Chief Executive Officer
Tripepi Smith
PO Box 52152, Irvine, CA 92619
[email protected]
(626) 536-2173

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Page 3 of 5 ends

SCOPE OF WORK
Tripepi Smith estimates the following for branding items:

Deliverable Price Notes
Logo Development ~$15,000 o Brand Research &
Report
o Kickoff interview
with committee &
stakeholder
outreach TBD
o Provide drafts for
review
o Finalize Design
o Provide logo library
Brandin g Guidelines ~$1,500 o Style Guide/Cheat
Sheet

Templates ~$4,300 o Business cards
o Email signature
o Presentation
backgrounds
(zoom/teams)
o Word templates
o Flyer template
o Provide drafts &
revise

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AGREEMENT TERMS AND COST PROPOSAL

AD HOC RATES & INVOICING
For any additional work outside the scope outlined above, please see our FY 2023-24 Ad Hoc hourly standard rates below. Tripepi Smith would provide a supplemental invoice at the end of each month in which Ad Hoc work was performed. As Hercules is a valued retainer client, you are eligible for the discounted rates below.

Tripepi Smith bills time in 15-minute increments – i.e. we invoice our time in the following examples:

4.0, 1.25, 6.5 or 0.75 hours.

Title Hourly - Standard Hourly - Retainer
Principal $350 $295
Director $240 $215
Art/Creative Director $240 $215
Senior Business Analyst $190 $165
Business Analyst $130 $110
Junior Business Analyst $105 $90
Senior Videographer/Animator $190 $165
Senior Photographer $160 $135
Senior Graphic Designer $175 $145
Graphic Designer $120 $100
Junior Graphic Designer $105 $90
Web Developer $195 $165
Drone Operator $195 $165
Photographer $105 $90

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Payments
Tripepi Smith will invoice the retainer on the 15th of each month and the ad hoc fees at the end of each month.

Retainer Discount
When client monthly retainers exceed six-thousand-five-hundred dollars ($6,750) a month, have access to our reduced Hourly – Retainer rates noted above. Otherwise, any ad hoc work done outside the scope of the Retainer would be at the Hourly – Standard rates.

Annual Increase
Tripepi Smith will increase the hourly rates and retainer fees for all resources by five percent (5%) or the national BLS Consumer Price Index (CPI)—whichever is higher—each year on the anniversary of the contract, starting on the first anniversary of any contract when the contract duration is longer than on year. Otherwise, new rates will be negotiated with each new contract renewal period.

Other Fees
Because Tripepi Smith offers a broad set of services, including extensive content production, we have some other content production-related fees that may come up during our engagement.

Travel Costs
Travel costs must be pre-authorized and then will be reimbursed by the City for any requested travel. Travel costs to be covered are for airfare, lodging and car rental or mileage. If Tripepi Smith is requested to be onsite, we will invoice for travel time at half rate of the resource’s Hourly Rate.

Equipment Fees
Tripepi Smith offers some services that require equipment, such as drone operations and video production. All such expenses will be authorized by the organization prior to fee being assessed. As such, in those cases, the following rates apply:
• $600 for a full day of video equipment use (includes full set of video equipment). “Full day” is defined as a shoot lasting four (4) or more hours.
• $400 for a half day of video equipment use. “Half day” is defined as anything up to four (4) hours of video production.
• $500/day drone fee. This excludes the drone operator’s time, which Tripepi Smith bills at the Videographer hourly rate.
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Hercules City CouncilFebruary 13, 2024

Hercules City Council
February 13, 2024