Hercules City Council
March 26, 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. A speaker card must be filled out if you wish to make a public comment. The cards are located on the side table. Please submit the completed card 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: 886 0902 6036 Zoom Passcode: 422194

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, March 26, 2024
7:00 PM
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
In-Person in Council Chambers or To Watch or Listen only:

Zoom ID: 886 0902 6036
Zoom Passcode: 422194
Zoom Phone Number: 1-669-900-6833
2 March 26, 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 - NONE
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS - NONE III. CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:

NO CLOSED SESSION
IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

V. REPORT ON ACTION TAKEN IN CLOSED SESSION-

NO CLOSED SESSION
VI. PLEDGE OF ALLEGIANCE
VII. MOMENT OF SILENCE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS
Mayor Romero would like to acknowledge the following for the Month of April - National Library Week - April 7th- 13th
National Volunteer Month
National Volunteer Week April 21-27th
The Herculean Mile Award Winners
Karen and Tony Sanchez
Jeanne Krall

1. 22-818
Proclamation Recognizing Janette Lares- Miss Hercules and Miss CA. Earth 2022
Proclamation- Miss Hercules Janette LaresAttachments:

IX. AGENDA ADDITIONS/DELETIONS

3 March 26, 2024City Council Meeting Agenda
X. PUBLIC COMMUNICATIONS
This time is reserved for members of the public to address issues not included in the agenda. In accordance with the Brown Act, Council will refer to staff any matters brought before them at this time, and those matters may be placed on a future agenda.

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

XI. PUBLIC HEARINGS

1. 22-810
Five Year Extension of the Expiration Date of the Vesting Tentative Map No. 9533 and Amendment #4 to the Development and Owner Participation Agreement (DOPA 07-01) for the Hill Town Project RECOMMENDATION:

Staff recommends that the City Council approve adoption of Hill Town Amendment #4 to extend the term of the Development and Owner Participation Agreement (DOPA 07-01) by and between the City of Hercules and the Santa Clara Valley Housing Group, Inc. and authorize the City Manager to execute the amended DOPA if it is substantially similar to the approved draft (Attachment 2A), to extend the expiration date of the Vesting Tentative Map No. 9533 for the Hill Town project and finding the actions are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).

Staff Report - DOPA & Vesting Map Amendment
Attach 2 - Draft Ordinance
Attach 2A - Draft DOPA Amendment No. 4
Attach 3 - PC Resolution Hill Town.docx
Attach 4 - Hill Town Development Short History
Attachments:

4 March 26, 2024City Council Meeting Agenda

2. 22-811 Repeal Local Density Bonus Regulations in Hercules Municipal Code and Reference State Density Bonus Law
RECOMMENDATION:

Staff recommends that the City Council adopt Ordinance No. 24-XX (Attachment 2) the proposed amended provisions of Hercules Municipal Code Sections 13-6.100, 13-6.300 and 13-30.420, amending and renumbering Sections 13-30.460 and 13-30.470, repealing Sections 13-30.430, 13-30.440 and 13-30.450 and amending Section 13-60.200 to comply with the State Density Bonus Law and finding the action exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).

Staff Report - Density Bonus
Attach 2 - Draft Ordinance
Attach 3 - 24-02 - PC Resolution Density Bonus
Attach 4 - Legislative History
Attach 5 - Pending Legislation
Attachments:

XII. CONSENT CALENDAR

1. 22-817 Meeting Minutes for the Special Meeting of March 12, 2024 Meeting Minutes for the Special Meeting of March 12, 2024Attachments:

XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-814 CCTA Feasibility Study Update for Expanded Ferry Service in Contra Costa County - Hercules Location
RECOMMENDATION:

It is recommended that the City Council receive a status update from Contra Costa County Transportation Authority (CCTA) Executive Director Tim Haile on the draft Ferry Feasibility Study for the Hercules location and discuss the information provided.

Staff Report - Ferry Feasibility
Presentation - Feasibility Study for Expanded Ferry Service Attachments:

2. 22-813 Contra Costa Countywide Smart Signals Project RECOMMENDATION:

It is recommended that the City Council receive a presentation from Contra Costa County Transportation Authority (CCTA) Planning Director John Hoang on the Contra Costa Countywide Smart Signals Project including within the City of Hercules and discuss the information provided.

Staff Report - Countywide Signal Project
Presentation - Contra Costa Countywide Smart Signals
Attachments:

5 March 26, 2024City Council Meeting Agenda

3. 22-812 Draft Fiscal Year 2024-25 Capital Projects Proposed Budget and Ten-Year Capital Improvement Projects (CIP) Plan
RECOMMENDATION:

City
Council receive a report and the Draft Fiscal Year (FY) 2024-25 Proposed Budget and Ten-Year CIP plan to discuss and provide direction to staff regarding future funding options as recommended below:

1. Capital Grants

2. General Fund Reserve

3. Bond Financing
Staff Report - Ten Year CIP
Attach 1 - Summary of Completed Projects and PY Carrovers Attach 2 - Summary of CIP Spending Plan FY 2024-2034
Attach 3 - Ten Year CIP - Facility Category
Attach 4 - Ten Year CIP - Street Category
Attach 5 - Ten Year CIP - Sewer Category
Attach 6 - Ten Year CIP - Parks Category
Attach 7 - Ten Year CIP - Transportation Category
Presentation - Bond Financing Options
Attachments:

6 March 26, 2024City Council Meeting Agenda

4. 22-815 Victoria by the Bay Landscaping and Lighting Assessment District - Implementing Strategy to Balance the Budget and Eliminate the Fund Deficit.

RECOMMENDATION:

It is recommended that City Council:
a) Receive
a report from staff on the follow-up items from the February 27, 2024 Council meeting; and
b) Direct staff by minute order to begin preparing documents for a Proposition 218 property owner ballot proceeding to increase assessment rates for the Victoria by the Bay Landscaping and Lighting Assessment commencing Fiscal Year 2024/25 to balance the budget and eliminate the cumulative fund deficit over a 10-year period, to be considered for approval at a future Council meeting during the regularly scheduled, annual LLAD assessment approval process; and
c) Select by minute order the cessation of irrigation and maintenance of the landscaping on residential streets, excepting trees, as the preferred cost-cutting option to balance the budget and eliminate the deficit over a 10 -year period, should the Proposition 218 proceedings to increase the assessments not pass, and authorize staff to communicate the same to property owners in advance of said proceedings; and
d) Authorize staff by minute order to include the funding of a Lighting and Landscaping Program Supervisor in the Fiscal Year 2024/25 Budget to be considered for approval at a future Council meeting as part of the annual budget adoption process.

Staff Report - Victoria by the Bay LLAD
Attach 1 - February 27th Staff Report - Victoria by the Bay LLAD 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.

7 March 26, 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, April 9, 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: March 21, 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.

8 March 26, 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.

9 March 26, 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.

10 INTRODUCTIONS/PRESENTATIONS/

COMMISSION REPORTS

AGENDA ITEMS

1. 22-818

11 PROCLAMATION
RECOGNIZING MISS HERCULES 2020 JANETTE LARES AND

ACKNOWLEDGING HER SERVICE AND COMMITMENT TO THE

HERCULES COMMUNITY
WHEREAS, Janette Lares was born and raised in the Bay Area, a daughter of Mexican Immigrants. She attended Hannah Ranch Elementary and graduated as a Hercules Titan from Hercules High School. She obtained her bachelors degree in Marine Science from Cal State Monterey Bay in Seaside, CA.

WHEREAS, After graduating Janette returned to Hercules, her beloved community, and be gan competing in pageants to amplify her environmental advocacy. She currently holds the title of Miss Hercules 2020 where she was coronated at The Spanish Steps in the Victoria by the Bay Park and Miss California Earth 2022 at the Mission Trails Regional Park Visitor Center in San Diego.

WHEREAS, As a proud Herculean she has represented the city in various pageants on multiple stages. She was recently placed as a Top 20 semi-finalists at Miss Earth USA in Orlando, Florida in January 2023. She also walked in New York Fashion Week and San Diego Swim Week promoting sustainability and environmental conservation.

WHEREAS, Now, as a former Miss California Earth and Miss Hercules Janette continues to advocate for sustainable practices and resi lient communities. She currently leads The Bay Area Chapter of a non-profit organization called We Clean Trails. We Clean Trails is a community cleanup non-profit organization that aims to reduce the amount of litter in our local communities. The efforts of the We Clean Trails organization help alleviate the risks that litter, air pollution and plastic debris have on our community’s environment.

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 commend and express appreciation to Miss Hercules Janette Lares for her dedication to the preservation, management and restoration to the community she proudly serves.

In witness whereof, I hereunto set my hand and cause the Seal of the City of Hercules to be affixed on this 26th day of March 2024.

Dan Romero, Mayor
22-818
12 PUBLIC HEARINGS

AGENDA ITEMS

1. 22-810

2. 22-811

13 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of March 26, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, AICP, Community Development Director SUBJECT: Five Year Extension of the Expiration Date of the Vesting Tentative Map No. 9533 and Amendment #4 to the Development and Owner Participation Agreement (DOPA 07-01) for the Hill Town Project RECOMMENDED ACTION:

Staff recommends that the City Council approve adoption of Hill Town Amendment #4 to extend the term of the Development and Owner Participation Agreement (DOPA 07 -01) by and between the City of Hercules and the Santa Clara Valley Housing Group, Inc. and authorize the City Manager to execute the amended DOPA if it is su bstantially similar to the approved draft (Attachment 2A), to extend the expiration date of the Vesting Tentative Map No. 9533 for the Hill Town project and finding the action s are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).

PLANNING COMMISSION RECOMMENDATION:

On March 4, 2024, at their regularly scheduled meeting, the Planning Commission approved Resolution No. 24-01 (Attachment 3), recommending City Council approval of the adoption of Amendment #4 to extend the term of the Development and Owner Participation Agreement (DOPA 07 -01) by and between the City of Hercules and the Santa Clara Valley Housing Group, Inc. a nd to extend the expiration date of the Vesting Tentative Map No. 9533 for the Hill Town project for a period of five (5) years, with a new expiration date of April 14, 2029.
22-810
14 BACKGROUND:

The Applicant, Santa Clara Valley Housing Group, Inc. ( SCVHG), has requested an entitlement extension of DOPA 07-01 and the Vesting Tentative Map No. 9533. Pursuant to their letter of request, dated February 13, 2024 (Attachment 4), the current request for the fourth DOPA revision and the extension of the Vesting Tentative Map is due to financial constraints, rising construction costs and inflation. The requested extension is for five (5) years, which would end on April 14, 2029.

Project Overview
As approved, Hill Town would include 30 Moderate -Income affordable units per its development agreement and conditions of approval. This is 23% of the City’s Moderate - Income Regional Housing Needs Allocation (RHNA) for the 6th cycle (2023-31).

Project conditions of approval require the following community benefits:
 5% of units affordable to Moderate-Income residents (30 affordable units);  Bus facilities such as turnouts along San Pablo Avenue and “Dial -A-Ride” passenger pick-up areas within the Hill Town development;  $5,000 per unit in-lieu fee (approximately $3 million total) for the City to use at its discretion for parks and recreation; and,
 Multiple parks, a new traffic signal on San Pablo, and a new sidewalk connecting from the top of San Pablo to Safeway.

The Hill Town site ranges in elevation from 20 to 160 feet, with many steep slopes. Due to the site’s location, condition and topography, extensive corrective grading, geotechnical work and fill are required to create level sites for development to occur. The site has active oil lines, EBMUD transmission mains and PG&E transmission lines, all of which need to be relocated outside of the development area. A less efficient grading operation is required to keep the existi ng lines active while the new alignments and facilities are constructed before the switchover. The site requires a 1,200 -foot off -site sewer extension, estimated at $558,000 (September 2022). Total off-site improvements were estimated at $4,477,000, equivalent to about $7,500 per unit. Phase 1 total sitework and onsite infrastructure costs were estimated at $37.9 million.

If the entitlements lapse as scheduled on April 14, 2024, the site will revert from the approved Planned Development Plan to underlying zoning of PC-R Planned Commercial- Residential Mixed-Use District

Rezoning any housing site to a lower density or non -residential use, or approval of a subsequent project with fewer units than assumed in the Housing Plan, will require the City to make up the lost housing capacity by upzoning other sites per the “no net loss” provisions of Government Code Section 65863 (SB 330). The City’s Housing Plan shows only 12 units of “surplus capacity” for moderate -income units based on the state - mandated density assumptions for vacant and underutilized sites. Therefore, losing the 15 Hill Town project’s 30 moderate -income units would create a deficit of 18 moderate - income units that would need to be accommodated elsewhere in the city.

Prior DOPA Amendments
The City Council previously approved three (3) amendments to the original DOPA for the Hill Town site:

DOPA Amendment 1 – Approved by Ordinance 509 on May 8, 2018. The City and Property Owner amended the DOPA for the following reasons:

 Clarify that the Owner is responsible for all design, construction, and installation of required stormwater control and clean water requirements applicable to the project at time of construction.

 Clarify that the in-lieu sports facility fee of $5,000 per unit (approximately $3 million total) can be used by the City for any recreational and park related purpose.

 Clarify the Owner’s obligation to provide affordable housing.

DOPA Amendment 2 – Approved by Ordinance 516 on January 8, 2019. The City and Property Owner amended the DOPA for the following reason:
 A four (4) month extension to allow the Developer to explore retail opportunities on the subject property.

DOPA Amendment 3 – Approved by Ordinance 525 on December 10, 2019. The City and Property Owner amended the DOPA for the following reasons:
 Modified the Land Use Term of the DOPA to “ June 30, 2020 or the date four months after the date on which the City Council opens the first public hearing on the tentative map application for the Project, whichever is later…”.

 Created a payment date for the remaining Environmental Impact Report funds.

 Clarified the Affordable Housing timing, “… an Affordable Housing Plan to be agreed to and executed by the Parties prior to issuance of the first residential unit building permit for the Project.”

Administrative Extension
On September 27, 2022, at the Applicant’s request, based upon the cost of off-site sewer improvements and the approval of a Final Map on September 14, 2021, the Vesting Tentative Map No. 9533 approval was administratively extended for 48 months pursuant to California Government Code 66452.6(a) and is set to expire on April 14, 2024 if not extended. While an extension application is under review, State law provides for an 16 automatic extension of the Vesting Tentative Map expiration for up to 60 days, pursuant to California Government Code 66542.6(e).

ANALYSIS:

Under the Original DOPA and Hercules Municipal Code Section 10-8.402, the procedure for proposing and adopting an amendment to the development agreement is the same as the procedure for entering into an agreement in the first place. Modification of the DOPA, in this instance, therefore, requires a public hearing review by the Planning Commission with a recommendation in the form of a Resolution to the City Council followed by a public hearing before the City Council and consideration of an Ordinance.

Development and Owner Participation Agreement (DOPA 07-01):

Section 10-8.301 of the Municipal Code, Determination by Planning Commission, allows the Planning Commission to make a recommendation to the City Council only if certain findings (listed below) are made with supporting facts. The City Council, likewise, in Hercules Municipal Code Section 10 -8.302, may accept, modify or disapprove the recommendation of the Planning Commission. Further, the City Council may not approve the development agreement unless it finds that the provisions of the agreement are consistent with the General Plan and any applicable specific plans:

Finding #1: Is consistent with the objectives, policies, general land uses and programs specified in the general plan and any applicable specific plan.

Facts: The proposal to extend the expiration date of DOPA 07-01 does not bring the Hill Town project out of complian ce with the objectives, policies, general land uses and programs in the Gen eral Plan. Further, compliance was confirmed through the original approvals.

Finding #2: Is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located.

Facts: The proposal to extend the expiration date of DOPA 07-01 does not modify the previously approved uses, thereby allowing the Hill Town project to remain compatible with applicable uses and regulations.

Finding #3: Is in conformity with public convenience, general welfare and good land use practice.

Facts: The proposal to extend the expiration date of DOPA 07-01 does not modify the original approvals for the Hill Town project, therefore the project continues to be in conformity with public convenience, general welfare and good land use practice.

17 Finding #4: Will not be detrimental to the health, safety and general welfare.

Facts: Modification of the expiration date of DOPA 07 -01 will not result in physical modifications to the site or to the approved design, therefore health, safety and general welfare will be maintained.

Finding #5: Will adversely affect the orderly development of property or the preservation of property values.

Facts: The proposal to extend the expiration date of DOPA 07 -01 will not alter the approved entitlements. Rather, it will provide an additional five (5) years for the Development Team to start construction per the adopted plan. The allowance of additional time will not adversely affect the orderly development of property or preservation of property values.

Vesting Tentative Map (VTM #9533):

Hercules Municipal Code Section 10 -2.3.105(c) requires a Vesting Tentative Map to be processed in the same manner as a Tentative Map. Per Hercules Municipal Code Sections 10 -2.306-311, a Tentative Map is subject to a Public Hearing before the Planning Commission with a recommendation, via Resoluti on, to the City Council. The City Council, likewise, processes the Vesting Tentative Map through a public hearing and issues a decision through an Ordinance.

Section 10 -2.3.103 of the Municipal Code, Consistency, allows an extension of entitlement related to the vesting tentative map only if the finding (listed below) is made with a supporting fact:

Finding #1: No land shall be subdivided and developed pursuant to a vesting tentative map for any purpose which is inconsistent with the Hercules General Plan and any applicable specific plan or not permitted by the zoning ordinance or other applicable provisions of this Code.

Facts: Extending the approval timeframe of the Vesting Tentative Map and the DOPA for a period of five (5) years, until April 14, 2029, does not bring the Hill Town project out of compliance with the objectives, policies, general land uses and programs in the Ge neral Plan, and compliance was confirmed through the original approvals. No specific plan is applicable to this area. Compliance with the zoning ordinance and other applicable Municipal Code provisions was also confirmed through the original approvals, and extending the approval timeline does not bring the Hill Town project out of compliance.

ENVIRONMENTAL REVIEW
The five (5) year extension request, Amendment #4 to DOPA 07-01 and extension of the Hill Town Vesting Tentative Map, has been determined to be C ategorically Exempt from CEQA pursuant to Section 15061(b)(3) of the California Environmental Quality Act 18 Guidelines. This Exemption is known as the “Common Sense Exemption” that CEQA applies only to projects where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment ; therefore, the subject request is not subject to CEQA.

FISCAL IMPACT:

There are no direct fiscal impacts associated with this item.

ATTACHMENTS:

Attachment 1 - Staff Report
Attachment 2 - Draft Ordinance
Attachment 2A – Draft DOPA Amendment #4
Attachment 3 – Planning Commission Resolution
Attachment 4 – Hilltown History Overview from Applicant, Dated 2/13/24

19 Ordinance No. ___

CITY OF HERCULES ORDINANCE NO. _____

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERCULES APPROVING THE ADOPTION OF AMENDMENT #4 TO EXTEND THE TERM OF THE DEVELOPMENT AND OWNER PARTICIPATION AGREEMENT (DOPA 07 -01) BY

AND BETWEEN THE CITY OF HERCULES AND THE SANTA CLARA VALLEY HOUSING GROUP, INC. AND TO EXTEND THE EXPIRATION DATE OF THE VESTING TENTATIVE MAP NO. 9533 FOR THE HILL TOWN PROJECT

WHEREAS, a Development and Owner Participation Agreement (“Development Agreement”) between the City of Hercules (“City”), the Redevelopment Agency (“Agency”), and the Santa Clara Valley Housing Group (“Owner”) was adopted by Ordinance 442 on September 23, 2008, a memorandum of which is recorded in the Office of the Contra Costa County Recorder, State of California, on November 25, 2008 through document 2008 - 0256803-000, with respect to the development of approximately 44 acres of certain real property located in the City of Hercules, California; and

WHEREAS, on May 8, 2018, the Development Agreement was amended, through the adoption of Ordinance 509 – Amendment No. 1, which was recorded on May 29, 2018 through document 2018-0083953-00; and

WHEREAS, on January 8, 2019, an additional amendment was approved, through the adoption of Ordinance No. 516 – Amendment No. 2, which was recorded on February 27, 2019 through document 2019-0026425-00 and modified key performance dates; and

WHEREAS, on December 10 , 2019, an additional amendment was approved, through the adoption of Ordinance No. 525 – Amendment No. 3, recorded on December 18, 2019 through document 2019 -0227264-00, which modified the land use term, payment date for the remaining Environmental Impact Report funds and clarified the affordable housing timing; and

WHEREAS, the City and Owner desire to further amend key performance dates set forth in the Development Agreement as amended , attached hereto (Attachment 2B) and incorporated by reference herein (aka Amendment No.4); and

WHEREAS, the Hill Town Vesting Tentative Map #9533 was approved by the City Council on April 14, 2020; and

WHEREAS, the Owner provided financial documentation of off -site public improvements, allowing an administrative extension of the Vesting Tentative Map #9533, thus modifying the expiration date to April 14, 2024; and

WHEREAS, California Government Code 66452.6(a) allows a Vesting Tentative Map on property that is subject to a development agreement to be extended for the period of time provided for in the agreement, but not beyond the duration of the agreement; and
20 Ordinance No. ___

WHEREAS, California Government Code 66452.6(e) provides that a Vesting Tentative Map shall be automatically extended for up to 60 days while an application for an extension is under review; and

WHEREAS, the Owner has requested that the approval timeframe of both the Development Agreement and Vesting Tentative Map #9533 be extended to April 14, 2029; and

WHEREAS, the Planning Commission did hold a properly noticed public hearing on March 4, 2024 to cons ider the proposed A mendment #4 to extend the term of the development and owner participation agreement (DOPA 07-01) by and between the City of Hercules and the Santa Clara Valley Housing Group, Inc. and to extend the expiration date of the Vesting Tentative Map No. 9533 for the Hill Town project and did hear and use its independent judgement to consider all said reports, recommendations and testimony hereinabove set forth; and

WHEREAS, the Planning Commission at its March 4, 2024 meeting passed Resolution #24-01 recommending City Council adoption of an ordinance to modify the Development Agreement by extending the term and extending the expiration date of the Vesting Tentative Map No. 9533 to April 14, 2029; and

WHEREAS, on March 26, 2024, the City Council held a duly noticed public hearing to consider the proposed Ordinance related to the Hill Town Development Agreement and Vesting Tentative Map No. 9533 , received the staff report and staff presentation, received comments from the public and interested parties and discussed the matter.

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. CEQA. The City Council finds and determines that the proposed Amendment No. 4 to the Hill Town development agreement is Categorically Exempt from CEQA pursuant to Section 15061(b)(3) of California Environmental Quality Act Guidelines. This Exemption is known as the “Common Sense Exemption” that CEQA applies only to projects where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the refore the activity is not subject to CEQA.

SECTION 3. The City Council finds that the provisions of the proposed amendments are consistent with the general plan and any applicable specific plan as recommended by the Planning Commission Resolution 24-01 approved March 4, 2024 after the Commission’s public hearing.

21 Ordinance No. ___

SECTION 4. The City Council hereby approves the proposed Amendment No. 4 to the Hill Town Development Agreement as attached hereto (Attachment 2A) and incorporated by reference herein. The City Council hereby authorizes the City Manager to execute all related documents, substantially similar to the attached Development Agreement, with Santa Clara Valley Housing Group, Inc.

SECTION 5. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decisions shall not affect the validity of the remaining portions of this Ordinance. The Council hereby declares that it would have adopted the Ordinance, and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be deleted.

SECTION 6. Effective Date and Publication. The City Clerk shall certify 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 26th day of March, 2024, and was passed and adopted at a regular meeting of the Hercules City Council on the _____ day of _____________, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dan Romero, Mayor

Eibleis Melendez
City Clerk

22 AMENDMENT No. 4 TO THE DEVELOPMENT AND OWNER PARTICIPATION AGREEMENT FOR THE HILL TOWN PROJECT (DOPA 07-01) BY AND BETWEEN

THE CITY OF HERCULES AND THE SANTA CLARA VALLEY HOUSING GROUP

This AMENDMENT No. 4 TO THE DEVELOPMENT AND OWNER
PARTICIPATION AGREEMENT (this “Amendment No. 4”) is entered into as of the ____ day of ________, 2024 between the City of Hercules, a municipal corporation (the “City”) and Santa Clara Valley Housing Group, Inc., a California corporation (“Owner”).

The City and Owner are collectively “Parties” to this Amendment.

RECITALS
A. The City and Owner are Parties to that certain Development and Owner Participation Agreement adopted by ordinance on September 23, 2008, a memorandum of which is recorded in the Office of the Contra Costa County Recorder, State of California, on November 25, 2008 as Document No. 2008-0256803-00 (the “Development Agreement”), with respect to the development of approximately 44 acres of certain real property located in the City of Hercules, California and described in Exhibit “A” attached to the Development Agreement (the “Project Site”). Unless otherwise defined in this Amendment No. 4, all capitalized terms have the meanings given to those terms in the Development Agreement.

B. The Development Agreement addresses, among other things, the potential development of up to 640 residential dwelling units a neighborhood retail facility, a series of public and private open space amenities, and a network of roadways (the “Project”) in accordance with all required Project Approvals.

C. The Development Agreement was previously amended three times by the City Council. The first Amendment was made by the City Council in May of 2018 to approve certain amendments, including but not limited to removal of the Redevelopment Agency as a party to the Development Agreement and an extension of the term of the Development Agreement (“Amendment No. 1”). The City Council also amended the Development Agreement a second time in January of 2019 in order to further extend the term (“Amendment No. 2”). A third amendment (“Amendment No. 3) was approved by City Council in December of 2019, which modified the land use term, created a payment date for the remaining Environmental Impact Report funds and clarified the affordable housing timing.

D. The City and Owner desire to further amend certain provisions of the Development Agreement as described in this Amendment No. 4, including but not limited to the term of the Development Agreement.

E. On _____________, 2024, after duly noticed public hearings, the City Council of the City of Hercules adopted Ordinance No. ______ approving this Amendment No. 4, which ordinance is incorporated herein by reference. 23 AGREEMENT

IN CONSIDERATION OF THE MUTUAL COVENANTS AND PROMISES OF

THE PARTIES, THE CITY AND THE OWNER AGREE THAT THE DEVELOPMENT AGREEMENT IS AMENDED AS FOLLOWS:

1. Term Amendments. Section 2.2 is hereby amended in full to read as follows:
“2.2 Land Use Term. The Land Use Term of this Agreement shall commence on the Effective Date and shall continue in full force and effect until April 14, 2029, unless the Land Use Term is extended or terminated as provided in this section or sections 8.1 or 10.2. All Project approvals shall be effective for the Land Use Term.”

2. Successor and Assigns. This Amendment No. 4 shall be binding upon and inure to the benefit of the City, the Owner, and their respective successors and assigns.

3. Integration. Except as expressly provided to the contrary herein, all provisions of the initial Development Agreement as amended, which is incorporated herein by reference, shall remain in full force and effect. The Development Agreement and this Amendment No. 4 shall hereafter be collectively referred to as the Development Agreement. The Development Agreement, as amended herein, integrates all of the terms and conditions of agreement between the Parties and supersedes all previous agreements between the Parties with respect to the subject matter hereof. To the extent that the terms of the initial Development Agreement as amended and this Amendment No. 4 conflict, the terms of this Amendment No. 4 shall prevail and control.

4. Authority to Execute. The person or persons executing this Amendment No. 4 on behalf of Owner warrant(s) and represent(s) that they have the authority to execute this Amendment No. 4, that they are the proper interest holders and/or successors in interest to the previous Parties executing the Development Agreement, and they further warrant that they have the authority to bind their respective Owner to the performance of the obligations hereunder. Signatories shall defend, indemnify, and hold harmless the City, and its agents, officers, and employees, from any challenge related to the authority of any person or persons signing this Amendment No. 4.

24 IN WITNESS WHEREOF, the Parties have executed this Amendment No. 4 as of the date set forth above.

APPROVED AS TO FORM: CITY:

CITY OF HERCULES
By: ____________________ a municipal corporation
Patrick Tang
City Attorney By:__________________________
Dante Hall
City Manager

By:__________________________
Dan Romero
Mayor

OWNER:

SANTA CLARA VALLEY HOUSING
GROUP, INC., a California Corporation
By:__________________________
Stephen E. Schott
Vice President

25 Planning Commission Resolution 24-01
Hill Town Expiration Date Extension

HERCULES PLANNING COMMISSION
RESOLUTION NO. 24-01

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF HERCULES RECOMMENDING THAT THE CITY COUNCIL APPROVE ADOPTION OF AMENDMENT #4 TO EXTEND THE TERM OF THE DEVELOPMENT AND OWNER PARTICIPATION AGREEMENT (DOPA 07 -01) BY AND BETWEEN THE CITY OF HERCULES AND THE SANTA CLARA VALLEY HOUSING GROUP, INC.

AND TO EXTEND THE EXPIRATION DATE OF THE VESTING TENTATIVE MAP NO. 9533 FOR THE

HILL TOWN PROJECT

WHEREAS, The City and the Santa Clara Valley Housing Group (“ Owner”) are Parties to that certain Development and Owner Participation A greement (“Development Agreement”) adopted by ordinance of the City Council on or about September 23, 2008, with respect to the d evelopment of approximately 44 acres of certain real property located in the City of Hercules, California; and WHEREAS, the Development Agreement addresses, among other things, the potential development of up to 640 residential dwelling units, a neighborhood retail facility, a series of public and private open space amenities, and a network of new roadways (the “Project”) in a ccordance with all required project approvals; and
WHEREAS, the Development Agreement was revised by City Council’s approval on May 8, 2018 of Amendment #1 making certain amendments to the 2008 Hill Town Development Agreement, including but not limited to removal of the Redevelopment Agency as a party to the agreement and an extension of the term of the Agreement; and
WHEREAS, the Development Agreement was further revised by City Council’s approval on January 8, 2019 of Amendment #2 making further modifications of timelines; and WHEREAS, the Development Agreement was revised by City Council’s approval on December 10, 2019 of Amendment #3 by modifying the land use term of the agreement, creating a payment date for the remaining Environmental Impact Report funds and providing clarification of th e affordable housing timing; and
WHEREAS, City and Owner desire to further amend certain provisions of the Development Agreement as described in this Amendment No. 4, including but not limited to the term of the Development Agreement as stated therein; and
WHEREAS, the Hill Town Vesting Tentative Map #9533 was approved by the City Council on April 14, 2020; and
WHEREAS, the Owner provided financial documentation of off -site public improvements, allowing an administrative extension of the Vesting Tentative Map #9533, thus modifying the expiration date until April 14, 2024; and
WHEREAS, California Government Code 66452.6(a) allows a Vesting Tentative Map on property that is subject to a development agreement to be extended for the period of time provided for in the agreement, but not beyond the duration of the agreement; and DocuSign Envelope ID: 9EF13FE0-C815-47E1-A9CE-074A0A8B3C6F 26 Planning Commission Resolution 24-01
Hill Town Expiration Date Extension
WHEREAS, the Owner has requested that the approval timeframe of both the Development Agreement and Vesting Tentative Map #9533 be extended for five (5) years, until April 14, 2029; and WHEREAS, based on the facts and evidence set forth in the entire record for this proceeding, including but not limited to the staff report prepared for this project, the Planning Commission finds, after due study, deliberation, and public hea ring, that the following circumstances exist with regard to the request to extend the expiration date of the Development Agreement and Vesting Tentative Map #9533 to April 14, 2029:
a. That the proposed modification of the Development Agreement expiration date is consistent with the objectives, policies, general land uses and programs specified in the General Plan and any applicable specific plan because the extension of the expiration date does not alter Hill Town’s compliance with the original approvals and with applicable provisions of the General Plan;

b. That the proposed modification of the Development Agreement expiration date is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the real property is located because the extension of the expiration date does not modify the previously approved uses, thereby allowing the Hill Town project to remain compatible with applicable uses and regulations;

c. That the proposed modification of the Development Agreement expiration date is in conformity with public convenience, general welfare and good land use practice because the extension of the expiration date does not modify the original approvals for the Hill Town project, therefore the project continues to be in conformity with public convenience, general welfare and good land use practice;

d. That the proposed modification of the Development Agreement expiration date will not be detrimental to the health, safety and general welfare because the modification of the expiration date will not result in physical modifications to the site or to the approved design, therefore health, safety and general welfare will be maintained;

e. That the proposed modification of the Development Agreement expiration date will not adversely affect the orderly development of property or the preservation of property values because the extension of the expiration date will allow an additional five (5) years to start construction per the adopted plan and consistent with the original approvals;

f. That the extension of the expiration date of the Vesting Tentative Map #9533 will not be inconsistent with the Hercules General Plan and applicable specific plans, Zoning Ordinance or other Code provisions because the extension of the expiration date does not alter the original compliance with the General Plan objectives, policies and general land uses. Further, there are no specific plans applicable to the Hill Town development and compliance with the Zoning Ordinance and other applicable Municipal Code provisions were also confirmed through the original approvals; and

WHEREAS, the Planning Commission did hold a properly noticed public hearing on March 4, 2024 to consider owner’s application to amend the Development Agreement and the expiration date of the Vesting Tentative Map #9533 , and did hear and use its independent judgment to consider said application, reports, recommendations, and related testimony.

NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Hercules recommends that the City Council:

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

DocuSign Envelope ID: 9EF13FE0-C815-47E1-A9CE-074A0A8B3C6F 27 Planning Commission Resolution 24-01
Hill Town Expiration Date Extension

2. The Planning Commission, based on its independent judgment and analysis, after due study, deliberation and public hearing, finds and determines that the proposed fourth amendment to the Development Agreement contained in Attachment 2B and the Vesting Tenta tive Map #9533 to this Resolution is in the public interest , is in conformance with the requirements of state law (Government Code Section 65864 et seq.) and the City’s municipal code (Title 10, Chapter 8).

3. Find that the draft ordinance (Attachment 2A hereto) is Categorically Exempt from CEQA pursuant to Section 15061(b)(3) of the California Environmental Quality Act Guidelines. This Exemption is known as the “Common Sense Exemption” that CEQA applies only to projects where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, therefore the activity is not subject to CEQA.

BE IT FURTHER RESOLVED: The Planning Commission recommends that the City Council approve the proposed fourth amendment to the Development Agreement as specified in Attachment 2B to this Resolution, attached hereto and incorporated by reference herein.

PASSED AND ADOPTED by the Planning Commission of the City of Hercules on this 4th day of March 2024, by the following vote:

AYES: Morrison, Rubio, Schaufenbil and Most-Walker

NOES: None

ABSTAIN: None

ABSENT: Bhattarai

Robert Schaufenbil, Chair

ATTEST:

Timothy Rood, AICP
Community Development Director

Attachment 2A: Draft Ordinance
Attachment 2B: Draft DOPA

DocuSign Envelope ID: 9EF13FE0-C815-47E1-A9CE-074A0A8B3C6F 28 29
30 PUBL

IC HEARINGS

AGENDA ITEM

2. 22-811
31

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of March 26, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, AICP, Community Development Director SUBJECT: Repeal Local Density Bonus Regulations in Hercules Municipal Code and Reference State Density Bonus Law
RECOMMENDED ACTION:

Staff recommends that the City Council adopt Ordinance No. 24-XX (Attachment 2) the proposed amended provisions of Hercules Municipal Code Sections 13 -6.100, 13-6.300 and 13-30.420, amending and renumbering Sections 13-30.460 and 13-30.470, repealing Sections 13 -30.430, 13 -30.440 and 13 -30.450 and amending Section 13 -60.200 to comply with the Stat e Density Bonus Law and finding the action exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).

PLANNING COMMISSION RECOMMENDATION:

On March 4, 2024, at their regularly scheduled meeting, the Plann ing Commission approved Resolution No. 24-02 (Attachment 3), recommending City Council approval of the amended provisions of the Hercules Municipal Code to comply with the State Density Bonus Law.

BACKGROUND:

The City of Hercules regulates and implements the State of California Density Bonus Law (SDBL). The current standards in the Municipal Code allow a sliding scale of density bonuses and the granting of concessions based on the amount and type of affordable housing that is provided, an unlimited number of waivers or reductions of local regulations, and parking reductions based on unit size. 22-811
32

Between 2018 and 2023, the State amended the SDBL 10 times (Attachment 4), so it has been challenging for cities to k eep up with required updates to local density bonus ordinances. This proposal would amend the Municipal Code to be consistent with , and refer to , updated State law. The proposal contains the most up -to-date regulations regarding density bonus opportunities.

Since 2021, the City has been receiving housing-related technical assistance through the Association of Bay Area Governments (ABAG) as part of the Regional Early Action Planning (REAP) Grant Program from the State Housing and Community Development Department (HCD). The Contra Costa County Collaborative (C4) meets monthly to discuss housing-related topics, including completing and certifying housing elements, the implementation and complying with evolving State laws.

Recently, several Contra Costa Coun ty agency staff discussed repealing their local density bonus regulations/ordinances and adopting references to State law. This approach streamlines local implementation and eliminates the need for numerous amendments to the Zoning Ordinance as State law is amended in the future.

The State Density Bonus Law (SDBL) was adopted in 1976 to address California’s affordable housing needs. The SDBL required local agencies to allow increased density, reduced standards, and development incentives based upon the nu mber and type of affordable housing units proposed. Over time, the law has been expanded to include housing for households at a wider range of income levels and with specialized needs (for example seniors, students, foster youth, formerly homeless persons, and disabled veterans).

The SDBL applies to housing projects, including mixed -use developments, new subdivisions, and common -interest developments. Density bonuses and associated incentives and concessions are intended to offset the financial burden of constructing affordable units. The density bonus and associated concessions are based upon the amount and type of affordable units provided.

Qualifying residential projects which set aside a certain percentage of units for affordable residents may be eligible for one or more of the following under SDBL:

 Density Bonus: An increase above the maximum allowed density permitted in the General Plan Land Use Element or Zoning Code. The amount of the bonus depends upon the quantity of affordable units and the level of affordability.

 Incentives/Concessions: Modifications to City development standards that result in actual and identifiable cost reductions to provide for affordable housing costs or rents.

The number of required incentives is based on the percenta ge of affordable units provided in the qualifying project. For example, developers may ask for increased 33

height above that allowed by the zoning regulations to accommodate the additional units granted in a density bonus.

 Reductions/Waivers: Modification to City development standards that would physically prevent the construction of a housing development at the density permitted with a bonus and any concessions, except where the waiver would cause a public health or safety concern, harm historical property, or would be contrary to the law. There is no limit to the number of reductions/waivers that may be requested. For example, applicants may request decreased setbacks and/or increased floor area ratio and/or waiver of hillside regulations that would preclu de a qualifying project from being constructed at the proposed density.

 Reduced Parking Ratios - Parking ratios are defined based on unit size:
o Zero to one bedroom: one on-site parking space per unit; o Two to three bedrooms: one and one-half on-site parking spaces per unit; and, o Four or more bedrooms: two and one-half parking spaces per unit.

ANALYSIS:

Existing Density Bonus Ordinance
Hercules Municipal Code Sections 13 -30.420 Purpose and Applicability , 13 -30.430 Calculations, and 13-30.440 Incentives and Concessions include the Residential Density Bonus standards. The last update to this portion of the City of Hercules Residential Density Bonus standards was in 2015, and it is therefore out of compliance with current State Density Bonus Law.

The SDBL in cludes much of the information that is currently included in Hercules Municipal Code, but it also includes additional definitions and options that have not yet been adopted by the City. For example, the SDBL now provides density bonus options for the construction of student housing, shared housing, and housing for transitional foster youth, disabled veterans, and homeless persons.

Proposed Ordinance
Staff proposes to repeal and replace the existing density bonus regulations with the Ordinance attached t o this staff report. The new regulations would adopt the SDBL by reference and identify when the regulations apply. The draft ordinance also contains requirements related to physical constraints and parking reductions, outlines application requirements, and specifies the approval process for density bonus projects. The draft ordinance also acknowledges that future State law amendments may occur.

In future years, as the legislature continues to amend and/or refine SDBL (Attachment 5), the Hercules Municipal Code will remain consistent with State law, and the City will avoid frequent zoning updates. In addition, by referencing State law, City staff will find it easier to process applications and communicate relevant regulations to ap plicants, the public, and appointed/elected officials.

34

ENVIRONMENTAL DETERMINATION
The proposed ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) – Common Sense Exemption in that the proposed ordinance would only establish and clarify administrative processes and would not facilitate new construction or other groundbreaking activities. It can be seen with certainty that there is no possibility that the ordinance would result in either a direct physical change to the environment or a reasonably foreseeable indirect physical change to the environment. Further, none of the circumstances described in CEQA Guidelines Section 15300.2 applies.

FISCAL IMPACT OF RECOMMENDATION:

There are no direct fiscal impacts associated with this item.

ATTACHMENTS:

Attachment 1 –Staff Report – Density Bonus Regulations
Attachment 2 – Draft Ordinance
Attachment 3 – Planning Commission Resolution No. 24-02 Attachment 4 –Legislative History Summary (2019-2022)
Attachment 5 –Summary of Pending (2023-2024) Legislation

35 Ordinance No. ___

CITY OF HERCULES ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERCULES AMENDING PROVISIONS OF HERCULES MUNICIPAL CODE SECTIONS 13 -6.100, 13 -6.300 AND 13-30.420, AMENDING AND RENUMBERING SECTIONS 13 -30.460 AND 13-

30.470, REPEALING SECTIONS 13 -30.430, 13 -30.440 AND 13-30.450 AND AMENDING SECTION 13 -60.200 TO COMPLY WITH THE STATE DENSITY BONUS

LAW AND FINDING THE ACTION EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA).

WHEREAS, California’s State Density Bonus Law (Gov ernment Code §§ 65915 et seq. ; “SDBL”) encour ages developers to build affordable housing (e.g., very low -, low- and moderate -income units) by requiring cities to grant a density bonus, concessions, incentives, and waivers of developments standards for projec ts that commit certain percentages of their units to affordable housing; and

WHEREAS, California Government Code § 65915(a) requires that local governments adopt an ordinance that specifies how compliance with S DBL will be implemented; and

WHEREAS, Sections 13-6.100, 13-6.300, 13-30.420, 13-30.430, 13-30.440, 13-

30.450, 13-30.460 and 13-30.470 of the Hercules Municipal Code contain regulations implementing the SDBL; and

WHEREAS, Hercules Municipal Code Sections 13-6.100, 13 -6.300, 13 -30.420, 13-30.430, 13-30.440, 13 -30.450, 13-30.460 and 13-30.470 were last amended to comply with the SDBL via Ordinance No. 484, adopted on February 10, 2015; and

WHEREAS, this ordinance (“Ordinance”) amends H ercules Municipal Code Sections 13-6.100, 13 -6.300 and 13 -30.420, amends and renumbers Sections 13 -

30.460 and 13 -30.470 and repeals Sections 13 -30.430, 13 -30.440 and 13 -30.450 to adopt the State Density Bonus Law by reference. As amended and renumbered by this Ordinance, Hercules Municipal Code Sections 13 -30.420, 13-30.430 and 13-30.440 will provide density bonuses and other affordable housing incentiv es required by S DBL (including but not limited to Government Code § 65915 et seq.); and

WHEREAS, adopting the S DBL by reference will ensure the Municipal Code remains current whenever the State Legislature amends the SDBL; and

WHEREAS, the Planning Commission did hold a properly noticed public hearing on March 4, 2024 to consider the proposed Text Amendment and did hear and use its independent judgement to consider all said reports, recommendations and testimony hereinabove set forth; and

36 Ordinance No. ___

WHEREAS, the Planning Commission at its March 4, 2024 meeting passed Resolution #24-02 recommending City Council adoption of an ordinance to modify the Hercules Zoning Ordinance as proposed in order to comply with SDBL; and

WHEREAS, on March 26, 2024 , the City Council held a duly noticed public hearing to consider the propose d Ordinance related to density bonus, received the staff report and staff presentation, received comments from the public and interested parties and discussed the matter; and

WHEREAS, all legal prerequisites to the a doption of the Ordinance have occurred.

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

SECTION 1. Recital s. The City Council here by incorporates the above recital s into this Ordinance by this reference.

SECTION 2. Amendment. Deletions to the Hercules Municipal Code are shown in strikethrough. Additions are shown in bold/underline. T he City Council of the City of Hercules does hereby amend He rcules Municipal Code Sections 13-6.100, 13 -6.300, 13-30.420 and 13-60.200, amends and renumbers Hercules Municipal Code Sections 13-30.460 and 1 3-30.470 and rep eals Hercules Municipal Code Sections 13 -30.430, 13-30.440 and 13-30.450 to read as follows:

Hercules Municipal Code

TITLE 13. ZONING ORDINANCE

Chapter 13-6. Residential Districts

Sec. 13-6.100 Specific Purposes.

1. In addition to the general purposes listed in Section 13-5.100, the specific purposes of the residential districts are to:

A. Reserve appropriately located areas for family living at a reasonable range of population densities consistent with the General Plan and sound standar ds of public health and safety.

B. Ensure adequate light, air, privacy, and yard/open space for each dwelling unit and protect residents from public safety hazards and other harmful environmental effects.
37 Ordinance No. ___

C. Preserve as many of the desirable characteristics of single-family residential districts as possible while allowing for associated residential uses such as daycare, rooming and boarding, home occupations, second residential units to the extent that substantial adverse impacts are not caused to adjacent residences.

D. Promote safe and well-designed neighborhoods and encourage new residential development to have an internal circulation system, including pedestrian walkways, bikeways, and access to transit facilities. Ensure provision of public services and facilities to support existing and planned residential densities.

E. Reserve appropriate areas for multifamily dwellings that may be located and designed to be compatible with adjacent land uses and residences.

F. Encourage development of innovative types of housing, including co-housing, congregate care facilities, and other types of housing that may provide low cost alternatives to typical market-rate housing.

G. Encourage provision of affordable housing units, especially for single persons, single parents, elderly and young families. Provide well-designed, well-built housing units for low- and moderate-income households in mixed-density developments, including planned developments (PDs), avoiding a concentration in any limited area.

H. Provide additional affordable senior citizen housing. Encourage provision of senior housing by considering density bonuses up to General Plan maximum where senior projects are desirable and compatible with special senior needs.

I. Allow for public and quasi-public land uses to complement residential development within close access such as schools, churches and daycare facilities; provided, that substantial adverse impacts such as traffic congestion, increased noise (ambient or episodic) or full use of available on-street parking, or other similar impacts are not caused on nearby residences.

2. The additional purposes of each residential zoning district are:

A. RS-E Residential Single-Family Estate. To provide sites for estate homes on larger lots to be developed with custom built and individually designed homes with 38 Ordinance No. ___

a gross density of 1 or 2 units per acre and a minimum parcel size of 0.5 acre.

Specific densities are assigned on the Zoning Map.

B. RS-L Residential Single-Family Low Density. To provide areas for single-family housing on smaller lots that will generally be developed as part of a larger planned subdivision where a limited number of models of varied exterior designs are built in a random pattern on individual lots with a gross density of 2 to 7 units per acre and a minimum parcel size of 6,000 square feet unless a smaller lot size is allowed by an approved planned development (PD).

C. RM-L Residential Multifamily Low Density. To provide sites for low density multifamily housing such as townhouses, condominiums and apartments, and medium density single-family housing that incorporate good design and amenities with a gross density up to 12 units per acre (midrange density of 9 units per acre).

The minimum parcel size for multifamily housing is 3 acres. The minimum lot size for single-family housing is 4,000 square feet unless a smaller lot size is allowed by an approved planned development (PD).

D. RM-M Residential Multifamily Medium Density. To provide sites for medium density multifamily housing such as townhouses, condominiums and apartments that incorporate good design and amenities with a gross density of 12 to 30 units per acre (midrange density of 20 units per acre) and a minimum parcel size of 5 acres.

E. RM-H Residential Multifamily High Density. To provide sites for high density multifamily housing, typically located near public transit centers, adequate streets, shopping centers or other high activity areas and that incorporate good design and amenities with a gross density of 30 to 55 units per acre (midrange density of 42 units per acre) and a minimum parcel size of 15 acres. [Ord. 544 § 3, 2023; Ord. 543 § 3, 2023; Ord. 515 § 2, 2018; ZO § 6.100.]
Sec. 13-6.300 Performance Standards.

The standard performance standards for development specified in Chapter 13-31 shall be met. In addition, the following specific performance standards shall be met:

1. Residential streets shall be designed in relation to the needed capacity and the adjoining housing patterns while discouraging through traffic on local streets. 39 Ordinance No. ___

2. Existing residential structures of architectural or historic significance are to be restored and maintained.

3. New residential areas shall be designed to avoid conflict with major streets or thoroughfares, and should provide access to transit facilities to encourage safe and convenient alternatives to private auto.

4. Multifamily residential land shall be developed with a balance of open space, landscaping, and recreational amenities and should be easily accessible to commercial and recreational areas and public transportation.

5. Upon reinstitution of the inclusionary housing ordinance, new residential development shall include a minimum 10 percent of the total number of units for affordable housing. No in-lieu fees will be accepted by the City unless the developer can establish extraordinary circumstances for not providing affordable housing or unless an agreement predating the adoption of the 1996 General Plan Amendment provides otherwise.

A density bonus up to 35 percent over the maximum General Plan designation may be provided, along with the waiver of fees and the relaxation of development standards, in exchange for low income or senior housing provided, as per Section 65915 of the California Government Code, as may be amended. and Sections 13-

30.420 through 13-30.470 (Residential Density Bonuses). In order to encourage the development of lower income housing units, the waiver of fees and the relaxation of development standards may be considered by the City in return for commitments to provide lower income housing.

6. Affordable senior housing projects with density bonuses up to General Plan maximum are allowed where desirable and compatible with special senior needs. Such projects shall only be allowed where the size of the structure and style of architecture are compatible with the surrounding neighborhood.
7 6. The use of solar systems, both active and passive designs, is encouraged in new residential development. [Ord. 544 § 3, 2023; Ord. 543 § 3, 2023; Ord. 515 § 2, 2018; Ord. 484 § 13, 2015; ZO § 6.300.]

40 Ordinance No. ___

TITLE 13. ZONING ORDINANCE

Chapter 30. Property Development Standards

Sec. 13-30.420 Residential Density Bonuses—Purpose and Applicability.

1. This Section through Section 13-30.440 and the requirements of California Government Code Sections 65915 through 65918, as may be amended, are intended to implement the housing element of the General P lan and the requirements of California Government Code Sections 65915 through 65918, offering incentives for the development of affordable housing. Where regulations a re not specifically addressed in these sections or where there are conflicts between these provisions and the provisions of California Government Code Sections 65915 through 65918, the provisions of the California Government Code, as they may be amended over time, shall apply.

2. Housing developments are eligible for a density bonus as provided in California Government Code Section 65915 and these provisions, when the applicant for the housing development agrees or proposes at least 1 of the following:

A. Construct:
1) Ten percent of the total units affordable to lower-income households at affordable rent or affordable housing cost; or
2) Five percent of the total units affordable to very low-income households at affordable rent or affordable housing cost; or
3) Ten percent of the total units proposed in a common interest development for sale to moderate-income households; provided, that all units in the development are offered to the public for purchase; or
4) A senior citizen housing development.

B. Donate land in accordance with California Government Code Section 65915.

3. In addition to meeting the requirements of subsection (1) of this Section, housing developments which include a child care facility in accordance with California Government Code Section 65915 are entitled to an additional density bonus. 41 Ordinance No. ___

4. An applicant may also submit a proposal for specific incentives or concessions to be granted in conjunction with the density bonus, as provided in Section 13-30.440.

5. The granting of a density bonus, incentive, or concession, in and of its elf, shall not require a General Plan amendment, zone change, or other discretionary approval and shall be reviewed concurrently with the review of the housing development.

6. To qualify for a density bonus, a senior housing development is not required to provide affordable units; however, the entire development must be reserved for qualified senior persons pursuant to Section 51.3 of the California Civil Code. Also, any senior housing development for which a density bonus is requested and approved must have a minimum of 35 units. [Ord. 515 § 2, 2018; Ord. 484 § 12, 2015; ZO § 30.420.

Sec. 13-30.430 Residential Density Bonuses—Calculation.

1. Housing developments that meet the criteria in Section 13-30.420(1) are eligible for a maximum density bonus as set forth in Table 13-30.1.

2. The calculation of a density bonus in compliance with this subsection that results in fractional units shall be rounded up to the next whole number, as required by state law.

For purposes of calculating a density bonus, the residential units do not have to be based upon individual subdivision maps or parcels.

Table 13-30.1 Maximum Density Bonus Calculations Based on Government Code Section 65915
Unit Type
Minimum %
Affordable
Units in
Category
Base Density
Bonus
Granted1
Additional
Bonus for
each 1% of
Affordable
Units
Provided
%
Affordable
Units
Required
for
Maximum
35% Bonus
Very Low-Income
Units
5% 20% 2.5% 11%
Low-Income Units 10% 20% 1.5% 20%
42 Ordinance No. ___

Table 13-30.1 Maximum Density Bonus Calculations Based on Government Code Section 65915
Unit Type
Minimum %
Affordable
Units in
Category
Base Density
Bonus
Granted1
Additional
Bonus for
each 1% of
Affordable
Units
Provided
%
Affordable
Units
Required
for
Maximum
35% Bonus
Moderate-Income
Units
10% 5% 1.0% 40%
Senior Housing See
Section 13-

30.420(6)
20% n/a n/a
Land Donation (for
very low income
housing)2
10% 15% 1.0% 30%
Condominium
Conversion (moderate
income)3
33% 25% n/a n/a
Condominium
Conversion (lower
income)3
15% 25% n/a n/a
Child Care Facility4 n/a Sq. Ft. in Day
Care Facility
n/a n/a
Notes:

1. A density bonus may be selected from only 1 category, except that density bonuses for land donation may be combined with others, up to a maximum of 35 percent, and an additional square foot bonus may be granted for a child care facility as provided in California Government Code Section 65915(h). 43 Ordinance No. ___

2. The donation of land must conform to the requirements of California Government Code Section 65915(g).

3. The conversion of condominiums must conform to the requirement s of California Government Code Section 65915.5.

4. The provision of child day care facilities must conform to the requirements of California Government Code Section 65915(h).
[Ord. 515 § 2, 2018; Ord. 484 § 12, 2015; ZO § 30.430.] Sec. 13-30.440 Residential Density Bonuses—Incentives and Concessions.

1. A housing development is eligible for incentives and concessions as shown in Table 13-30.2. Incentives and concessions must be selected from only 1 category (very low-, low-, or moderate-income). No incentives or concessions are available for land donation or for a senior citizen housing development that is not affordable. Condominium conversions and day care centers may have 1 incentive/concession or a density bonus, at the City’s option, but not both.

Table 13-30.2 Incentives and Concessions Calculations
Based on Government Code Section 65915
Unit Type Percent of
Affordable Units
Number of
Concessions/
Incentives
Very Low-Income
Units
5% or greater 1
10% or greater 2
15% or greater 3
Low-Income Units 10% or greater 1
20% or greater 2
30% or greater 3
Moderate-Income
Units
10% or greater 1
20% or greater 2
30% or greater 3

2. For purposes of this Section, permissible concessions and incentives include but are not limited to:
44 Ordinance No. ___

A. A modification of development standards or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code that would otherwise be required, including but not limited to a reduction in setback requirements, lot coverage, landscape coverage, or number of parking spaces, such that the reduction or modification results in identifiable, financially sufficient, and actual cost reductions.

B. Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development, and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located; C. Other regulatory incentives or concessions proposed by the developer or the City which result in identifiable financially sufficient and actual cost reductions.

3. A housing development which requests incentives or concessions must show that the requested concessions are required to provide for affordable rents or affordable housing costs, as applicable. The Director shall determine the type and detail of documentation that must be provided.

4. If the housing development is eligible for a density bonus as provided in Section 13-

30.420, upon request of the applicant, the maximum off -street parking standards that can be applied, inclusive of handicapped and guest parking, are indicated in Table 13 -

30.3. These may include tandem and uncovered parking spaces.

Table 13-30.3 Off-Street Parking
Standards for Density Bonus
Projects
Number of
Bedrooms
Maximum Number
of Off-Street
Parking Spaces
Required per Unit
0-1 1
2-3 2
45 Ordinance No. ___

Table 13-30.3 Off-Street Parking
Standards for Density Bonus
Projects
Number of
Bedrooms
Maximum Number
of Off-Street
Parking Spaces
Required per Unit
4+ 2.5

5. Nothing in this Section requires the provision of direct financial incentives for the housing development, including but not limited to the provision of financial subsidies, publicly owned land by the City, or the waiver of fees or dedication requirements. The City, at its sole discretion, may choose to provide such direct financial incentives.

6. An applicant may submit to the City a proposal for the waiver or reduction of development standards that will have the effect of physically precluding the construction of a development meeting the criteria outlined in Section 13-30.420 at the densities or with the concessions or incentives permitted under Section 13-30.440. A proposal for the waiver or reduction of development standards shall neither reduce nor increase the number of incentives or concessions to which the applicant is entitled. The applicant shall bear the burden of demonstrating that the development standards that are requested to be waived will have the effect of physically precluding the construction of the housing development with the density bonuses and incentives.

7. The City Council shall grant the concession or incentive requested by the applicant unless the Council makes a written finding, based upon substantial evidence, of either of the following:

A. The concession or incentive is not required to provide for affordable housing costs, as defined in California Health and Safety Code Section 50052.5, or for rents for the targeted units to be set in compliance with Government Code Section 65915(c); or
B. The concession or incentive would have a specific adverse impact, as defined by California Government Code Section 65589.5(d)(2), upon public health and 46 Ordinance No. ___

safety, or the physical environment, or on any real property listed in the California Register of Historical Resources and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low- and moderate-income households. [Ord. 515 § 2, 2018; Ord. 484 § 12, 2015; ZO § 30.440.]

Sec. 13-30.450 Residential Density Bonuses—General Requirements.

1. Affordable for-sale and rental low- and very low-income units must remain affordable to low- or very low-income households, as applicable, for 55 years or for a longer period of time if required by a construction or mortgage financing assistance program, mortgage insurance program, or rental subsidy program.

2. The affordable dwelling units and land dedication that qualify a housing development for a density bonus may also be used to meet the inclusionary housing provisions of the City’s inclusionary housing requirements (Municipal Code Title 10, Chapter 19), to the extent that the Inclusionary Housing requirements are applicable and/or operable; provided, that the affordable units and land dedication comply with the requirements of both the Density Bonus Ordinance (Sections 13-30.420 through 13-30.470), and the Inclusionary Housing Ordinance (Title 10, Chapter 19) as it may apply regarding the required number of affordable units, required level of affordability, and term of affordability so as to provide the greatest affordability to the most households for the longest term.

3. The designated units shall be reasonably dispersed throughout the project, shall contain on average the same number of bedrooms as the nondesignated units in the project, and shall be compatible with the design or use of remaining units in terms of appearance, materials, and finished quality.

4. If a project is to be phased, the density bonus units shall be phased in the same proportion as the nondensity bonus units, or phased in another sequence acceptable to the City.

5. A master regulatory agreement shall be made between the developer and the City which indicates the household type, number, location, size and construction scheduling of all affordable units, and such information as shall be required by the City for the purpose of determining the developer’s compliance with this Chapter. The regulatory agreement shall be recorded against the housing development prior to final o r parcel 47 Ordinance No. ___

map approval or, where a map is not being processed, prior to issuance of any building permits, and shall be binding on all future owners and successors in interest.

6. The City may establish fees associated with the setting up and monitoring of affordable units.

7. For rental affordable very low- and low-income units:

A. The owner shall obtain and maintain on file certifications by each household.

Certification shall be obtained immediately prior to initial occupancy by each household and annually thereafter, in the form provided by the City or its designee. The owner shall obtain updated forms for each household on request by the City, but in no event less frequently than once a year. The owner shall maintain complete, accurate, and current records pertaining to the housing development, and will permit any duly authorized representative of the City to inspect the records pertaining to the affordable units and occupants of these units.

B. The owner shall submit an annual report to the City, on a form provided by the City. The report shall include for each affordable unit the rent, income, and family size of the household occupying the unit.

C. The owner shall provide to the City any additional information required by the City to ensure the long-term affordability of the affordable units by eligible households.

8. For any application submitted or processed after January 1, 2015, an applicant shall be ineligible for a density bonus or any other incentives or concessions under this Section if the housing development is proposed on any property that includes a parcel or parcels on which rental dwelling units are or, if the dwelling units have been vacated or demolished in the 5-year period preceding the application, have been subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of lower or very low income; subject to any other form of rent or price control through a public entity’s valid exercise of its police power; or occupied by lower or very low income households, unless the proposed housing development replaces those units (as defined by California Government Code Section 65915[c][3][B]), and either of the following applies:
48 Ordinance No. ___

A. The proposed housing development, inclusive of the units replaced pursuant to this paragraph, contains affordable units at the percentages set forth in Section 13-30.420(2).

B. Each unit in the development, exclusive of a manager’s unit or units, is affordable to, and occupied by, either a lower or very low income household. [Ord. 515 § 2, 2018; Ord. 484 § 12, 2015; ZO § 30.450.]

Sec. 13-30.4630 Residential Density Bonuses—Application Requirements.

1. An applicant may submit a preliminary proposal for housing development pursuant to Sections 13-30.420 through 13-30.470 California’s Density Bonus Law, including but not limited to Government Code Section 65915, prior to the submittal of any formal application.

2. All requests pursuant to Sections 13-30.420 through 13-30.470 California’s Density Bonus Law, including but not limited to Government Code Section 65915, shall be submitted to the City concurrently with the application for the first discretionary permit or other permit required for the housing development and shall be processed concurrently with the discretionary application following the review process as set forth for permits in Chapters 13-40 and 13-42, design review, (when applicable). The applicant shall provide additional information as specified in Sections 13-30.420 through 13-30.470 California’s Density Bonus Law, including but not limited to Government Code Section 65915, specifically:

A. Provide a written statement specifying the desired density increase, incentives and any waivers requested; proposed rent schedules and/or sales prices; and the type, location, size, and construction scheduling of all dwelling units; B. Submit sufficient evidence demonstrating that the requested incentive(s)/concession(s) result in an actual and identifiable cost reductions;a project financial report (pro forma) demonstrating that the requested incentives will result in identifiable, financially sufficient, and actual cost reductions to the housing development and they are required to provide for affordable rents or affordable housing costs, as applicable. The pro forma shall include the capital costs, operating expenses, return on investment, loan-to-value ratio and the debt coverage ratio including the contribution(s) provided by any applicable subsidy program(s), as required;
49 Ordinance No. ___

C. An appraisal report indicating the value of the density bonus and of the incentive(s)/concession(s);
D. A use of funds statement identifying the financial gaps for the housing development with the affordable housing units. The analysis shall show how the funding gap relates to the incentive(s)/concession(s);
CE. For any requested waiver of a development standard, evidence that the development standard for which the waiver is requested will have the effect of physically precluding the construction of the housing development with the density bonus and incentives requested;
DF. If a mixed-use building or project is proposed as an incentive, evidence that nonresidential land uses will reduce the cost of the housing development and that the nonresidential land uses are compatible with the development and the existing or planned development in the area;
EG. If a density bonus is requested for a land donation, the location of the land to be dedicated, proof of site control, and evidence that each of the requirements included in California’s Density Bonus Law, including but not limited to Government Code Section 65915(g) can be met.

FH. If a density bonus or incentive is requested for a child care facility, evidence that all of the requirements in California’s Density Bonus Law, including but not limited to Government Code Section 65915(h) can be met.

GI. Any other information requested by the Community Development Director or their designee to determine if the required findings can be made. [Or d. 515 § 2, 2018; Ord. 484 § 12, 2015; ZO § 30.460.]
Sec. 13-30.4740 Residential Density Bonuses—Findings.

1. Before approving an application that includes a request for a density bonus, incentive, parking reduction, and/or waiver pursuant Sections 13-30.420 through this section to California’s Density Bonus Law, including but not limited to Government Code Section 65915, the decision-making body shall make all of the following findings, as applicable:
50 Ordinance No. ___

A. That the residential project is eligible for the density bonus and any incentives, parking reductions, or waivers requested.

B. That any requested incentive will result in identifiable, financially sufficient, and actual cost reductions based upon the financial analysis and documen tation provided.

C. That there are sufficient provisions to guarantee that the units will remain affordable for the required time period.

D. If the density bonus is based all or in part on donation of land, a finding that all the requirements included in California’s Density Bonus Law, including but not limited to Government Code Section 65915(g) have been met.

E. If the density bonus, concession, or incentive is based all or in part on the inclusion of a child care facility, a finding that all the requirements included in California’s Density Bonus Law, including but not limited to Government Code Section 65915(h) have been met.

F. If the concession or incentive includes mixed-use development, a finding that all the requirements included in California’s Density Bonus Law, including but not limited to Government Code Section 65915(k)(2) have been met.

G. If a waiver is requested, a finding that the development standards for which the waiver is requested would have the effect of physically precluding the construction of the housing development with the density bonus and incentives permitted.

2. If the findings required by subsection (1) of this Section cannot be made, the City Council may deny an application for a concession, or incentive, or waiver only if it makes 1 of the following written findings, supported by substantial evidence:

A. The concession, or incentive does not result in identifiable and actual cost reductions, consistent with Government Code Section 65915(k), to provide for affordable housing costs, as defined in Section 50052.5 of the health and Safety Code, or for rents for the targeted units to be set as specified in Government Code Section 65915(c), or waiver is not required to provide for affordable housing; or
51 Ordinance No. ___

B. The concession or, incentive, or waiver would have a specific, adverse impact, as defined in Government Code paragraph (2) of subdivision (d) of Section 65589.5, upon public health andor safety or the physical environment or on real property listed in the California Register of Historic Resources, and there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low and moderate income households. For the purpose of this subsection, “specific adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, written public health or safety standards, policies, or conditions as they existed on the date that the application for the development was deemed complete; or
C. The concession or, incentive, or waiver is contrary to State or Federal law.

3. If the findings required by subsection (1) of this Section cannot be made, the City Council may deny an application for a waiver only if it makes 1 of the following written findings, supported by substantial evidence:

A. The waiver or reduction of development standards has a specific, adverse impact as defined in Government Code Section 65589.5(d.2), upon health and safety and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact; or
B. The waiver or reduced development standards has a specific, adverse impact on any real property that is listed in the California Register of Historical Resources; or
C. The waiver is contrary to State or Federal law.

43. If the findings required by subsection (1) of this Section can be made, the decision - making body may deny an application for a density bonus or incentive that is based on the provision of child care only if it makes a written finding, based on substantial evidence, that adequate child care facilities are already available in the City. [Ord. 515 § 2, 2018; Ord. 484 § 12, 2015; ZO § 30.470.]

52 Ordinance No. ___

TITLE 13. ZONING ORDINANCE
Chapter 60. Definitions
Sec. 13-60.200 Definitions.
“Affordable housing cost” means the amount set forth in the Health and Safety Code Section 50052.5, as may be amended.
“Affordable rent” means the amount set forth in the Health and Safety Code Section 50053, as may be amended.
“Density bonus” means a density increase over the otherwise maximum allowable residential density in accordance with the provisions of Sections 13-30.420 through 13-

30.470 (residential density bonuses) California’s Density Bonus Law, including but not limited to Government Code Section 65915 as of the date of the project application.
“Lower-income household” means a household whose gross income does not exceed that established by Health and Safety Code Section 50079.5, as may be amended. (generally less than 80 percent of County median income and includes very-low income category).
“Moderate-income household” means a household whose gross income does not exceed that established by Section 50093 of the Health and Safety Code, as may be amended. (generally 80 to 120 percent of County median income). “Senior citizen housing development” means a housing development with at least 35 dwelling units as defined in Civil Code Section 51.3, or a mobile home park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code, as may be amended. “Very low-income household” means a household whose gross income does not exceed that established by Health and Safety Code Section 50105, as may be amended. (generally less than 50 percent of County median income and includes extremely-low category).

SECTION 3. CEQA. The City Council finds that adoption of this Ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines § 15061(b)(3) – Common Sense Exemption in that the proposed ordinance would only establish and clarify administrative processes and would not fac ilitate new construction or other groundbreaking activities. It can be seen with certainty that t here is no 53 Ordinance No. ___

possibility that the ordinance will result in either a direct physical change to the environment or a reasonably foreseeable indirect p hysical change to the environment.

Further, none of the circumstances described in CEQA Guidelines § 15300.2 applies.

No unusual circumstances are present. This determination reflects the City of Hercules’ independent judgment and analysis.

SECTION 4. The Ordinance wo uld n ot be detrimental to the public interest, health, safety, convenience, or welfare of the City, as the proposed Ordinance will comply w ith, implement, and adopt by reference State Density Bonus Law;

SECTION 5. The Hercules City Council has reviewed, considered, a nd evaluated all of the information prior to acting upon Ordinance.

SECTION 6. S everability. If any s ection, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be inv alid, such decisions shall n ot affect the validity of the remaining portions of this Ordinance. The Council hereby declares that it would have adopted the Ordinance, and each sect ion, subsection, sentence, clause, or phrase thereo f, irre spective of the fa ct that any one or more sect ions, subsections, sentences, clauses or phrases be deleted.

SECTION 7. Codification. Section 2 of this Ordinance shall be codified in the Hercules Municipal Code. Sections 1 and 3 through 8 shall not be so codified.

SECTION 8. Effective Date and Publication. The City Clerk shall certify 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 r egular meeting of the Hercules City Council o n the _ ____ day of _______, 2024, and was passed and adopted at a regular meeting of the Hercules City Council on the _____ day of _________ ____, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dan Romero, Mayor

Eibleis Melendez
City Clerk
54 Planning Commission Resolution 24-02
Density Bonus Text Amendment

HERCULES PLANNING COMMISSION
RESOLUTION NO. 24-02

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF HERCULES

RECOMMENDING THE CITY COUNCIL ADOPT AN ORDINANCE AMENDING PROVISIONS OF HERCULES MUNICIPAL CODE SECTIONS 13 -6.100, 13-6.300 AND 13-30.420, AMENDING AND RENUMBERING SECTIONS 13 -30.460 AND 13 -30.470, REPEALING SECTIONS 13 -30.430, 13 -30.440 AND 13 -30.450 AND AMENDING SECTION 13 -60.200 TO COMPLY WITH THE STATE DENSITY BONUS LAW AND

FINDING THE ACTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA).

WHEREAS, California’s State Density Bonus Law (Government Code §§ 65915 et seq.; “SDBL”) encourages developers to build affordable housing (e.g., very low-, low- and moderate-income units) by requiring cities to grant a density bonus, concessions, incentives, and waivers of developments standards for projects that commit certain percentages of their units to affordable housing; and

WHEREAS, California Government Code § 65915(a) requires that local governments adopt an ordinance that specifies how compliance with SDBL will be implemented; and

WHEREAS, Sections 13 -6.100, 13 -6.300, 13 -30.420, 13 -30.430, 13 -30.440, 13 -

30.450, 13 -30.460 and 13 -30.470 of the Hercules Munici pal Code contain regulations implementing the SDBL; and

WHEREAS, Hercules Municipal Code Sections 13 -6.100, 13-6.300, 13-30.420, 13-

30.430, 13-30.440, 13-30.450, 13-30.460 and 13-30.470 were last amended to comply with the SDBL via Ordinance No. 484, adopted on February 10, 2015; and

WHEREAS, this ordinance (“Ordinance”) amends Hercules Municipal Code Sections 13-6.100, 13-6.300 and 13 -30.420, amends and renumbers Sections 13 -30.460 and 13 -

30.470 and repeals Sections 13 -30.430, 13 -30.440 and 13 -30.450 to adopt the State Density Bonus Law by reference. As amended and renumbered by this Ordinance, Hercules Municipal Code Sections 13-30.420, 13-30.430 and 13-30.440 will provide density bonuses and other affordable housing incentives required by SDBL (including but not limited to Government Code § 65915 et seq.); and

WHEREAS, adopting the SDBL by reference will ensure the Municipal Code remains current whenever the State Legislature amends the SDBL; and

WHEREAS, on March 4, 2024, the Planning Commission held a duly noticed public hearing to consider these amendments and did hear and use its independent judgment to consider all said reports, recommendations, and testimony hereinabove set forth.

NOW, THEREFORE, BE IT FURTHER RESOLVED that the Planning Commission of the City of Hercules recommends that the City Council:

DocuSign Envelope ID: ADA4CE62-208D-44B1-B2F6-CAB4748613AE 55 Planning Commission Resolution 24-02
Density Bonus Text Amendment

1. Find that this draft ordinance (Attachment 2a hereto) is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines § 15061(b)(3) – Common Sense Exemption in that the proposed ordinance would only establish and clarify administrative processes and would not facilitate new construction or other groundbreaking activities. It can be seen with certainty that there is no possibility that the ordinance will result in either a direct physical change to the environment or a reasonably foreseeable indirect physical change to the environment. Further, none of the circumstances described in CEQA Guidelines § 15300.2 applies. No unusual circumstances are present. This determination reflects the City of Hercules’ independent judgment and analysis.

2. Amend Hercules Municipal Code Sections 13 -6.100, 13 -6.300 and 13 -30.420, amend and renumber Sections 13 -30.460 and 13 -30.470 and repeal Sections 13 -

30.430, 13 -30.440 and 13 -30.450 to adopt the State Density Bonus Law by reference. As amended and renumbered by this Ordinance, Hercules Municipal Code Sections 13 -30.420, 13-30.430 and 13 -30.440 will provide density bonuses and other affordable housing incentives required by SDBL (including but not limited to Government Code § 65915 et seq.) as noted by the additions and deletions shown in Attach 1a hereto.

PASSED AND ADOPTED by the Planning Commission of the City of Hercules on this 4th day of March 2024, by the following vote:

AYES: Morrison, Most-Walker, Schaufenbil and Rubio
NOES: None
ABSTAIN: None
ABSENT: Bhattarai

Robert Schaufenbil, Chair

ATTEST:

Timothy Rood, AICP
Community Development Director

Attach 2a: Draft Ordinance amending Hercules Municipal Code Title 13, Chapters 6, 30 and 60
DocuSign Envelope ID: ADA4CE62-208D-44B1-B2F6-CAB4748613AE 56 ATTACH 4: LEGISLATIVE HISTORY SUMMARY (2019-2022)

2019 – 2023 Amendments by Year

2019
 SB 1227 requires a 35% density bonus for housing developments that include at least 20% of its units for low-income college students.  AB 2797 requires density bonuses in the Coastal Zone to be consistent with the California Coastal Act.
 AB 2372 allows developers to request a floor -area-ratio bonus rather than a traditional density bonus for projects that meet specific requirements.  AB 2753 requires local governments to notify applicants of required information for a project to be determined complete and provide information on the project ’s eligibility for density bonus and reduced parking ratios.

2020
 AB 1763 provides incentives for 1 00% affordable housing projects, such as an 80% density bonus and an additional concession entitlement. For projects located within ½ mile of a major transit stop, AB 1763 eliminates all local government limits on density and parking and allows a height limit of up to three stories or 33 feet.

2021
 AB 2345 provides for up to 50% density bonus for mixed -income developments, reduces parking requirements for many projects qualifying for a density bonus, lowers some thresholds for obtaining concessions, and adopts density bonus reporting requirements.

2022
 AB 571 prohibits local governments from charging affordable housing impact fees, including inclusionary zoning fees and in -lieu fees, against affordable units in density bonus housing developments.
 AB 634 allows local government to adopt an ordinance requiring an affordability period of more than 55 years in density bonus housing projects, except for developments financed with low-income housing tax credits.  SB 290 provides additional incentives to student housing development, reconciles text regarding public health and safety between the Housing Accountability Act and Density Bonus Law, defines ‘total units’ in a density bonus project, reduces parking requirements for moderate-income units, and clarifies that the Density Bonus Law applies to both rental and for-sale housing developments.  SB 728 allows developers in for-sale density bonus housing developments to sell affordable units to nonprofit housing corporations instead of selling the units directly to a low- or moderate-income homebuyer.

2023
 AB 682 establishes “shared housing” as a new category of housing eligible for a density bonus and other associated benefits and establishes a method of determining base densities.
57 ATTACH 4: LEGISLATIVE HISTORY SUMMARY (2019-2022)

 AB 1551 readopts legislation that sunsetted at the end of 2021 requiring that cities and counties provide a “development bonus ” to commercial developers if they meet certain requirements.
 AB 2334 provides special benefits to housing developments based on vehicle miles travelled.
58 ATTACH 5: SUMMARY OF PENDING (2023-2024) LEGISLATION

Bills Related to Density Bonus Law Introduced in the 2023 – 2024 Legislative Session

AB 440 (passed Assembly May 25) would amend provisions related to the calculation of maximum allowable residential density under the State Density Bonus Law.

AB 1287 (passed Assembly May 31) proposes to require jurisdictions to grant an additional density bonus calculated as specified by the bill, additional concessions for projects that meet the bill’s requirements, and amend the Density Bonus Law to supersede the California Coastal Act

SB 713 (passed Senate May 22) would affirm that the Density Bonus Law supersedes an ordinance, regulation or other local law enacted by a voter initiative that conflicts with the Density Bonus Law.

AB 1287 (passed Assembly May 31) would allow stackable moderate-income density bonus. Projects can receive an additional 50% bonus by adding 15% moderate-income units after maxing out the regular density bonus.

AB 1630 (introduced February 17) would classify student, faculty, and staff housing as a permitted use on all real property within 1,000 feet of a university campus, where at least 20% of the units be rented to students, staff, or faculty and at least 20% of the units must be affordable to lower-income households.

For ministerial projects, the bill does not allow for jurisdiction to impose parking, floor area ratio, or density requirements.

AB 637 (introduced February 9) would allow jurisdictions to deny the granting of a concession, incentive, or waiver of development standard required by the Density Bonus Law with a written finding based upon substantial evidence that the concession, incentive, or waiver of development standard would alter the requirements of a local inclusionary housing program, policy, or ordinance.

AB 323 (passed Assembly May 31) requires that affordable ownership inclusionary units in a Density Bonus project are first offered to future low-income homeowners, only if there are no takers can a nonprofit buy it to operate as a rental unit for a low-income renter.

59 CO

NSENT CALENDAR

AGENDA ITEM

1. 22-817
60 111 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
Tuesday, March 12, 2024
SPECIAL MEETING - 6:30 P.M., REGULAR MEETING - 7:00 P.M.

In-Person in Council Chambers or To Watch or Listen only:

Zoom ID: 889 8503 5080 Zoom Passcode: 63813
I. CLOSED SESSION – CALL TO ORDER - ROLL CALL - NONE
NONE
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS - NONE
NONE
III. CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:

NO CLOSED SESSION
NONE
IV. SPECIAL MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 6:30 P.M.

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

Walker-Griffin, and Mayor D. Romero

Present: 4 -
Vice Mayor D. BaileyAbsent: 1 -
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 Grimsley.

22-817
61 March 12, 2024City Council Meeting Minutes
VII. MOMENT OF SILENCE
NONE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS
Recognizing Hercules High School Students Black History Month Poetry Recognizing Lupine Elementary School Spelling Bee Finalist Herculean Mile Awards Program Winners
Mayor Romero introduced the students from Hercules High School. Elijah Johnson and Genesis Johnson recited their original poetry that they wrote for Black History Month. Council provided comment. Pictures were taken.

The recognition of the Lupine Elementary School Spelling Bee Finalist and the Herculean Mile Awards winners were postponed to another meeting.

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.

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

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

Walker-Griffin, and Mayor D. Romero
4 -

Absent: Vice Mayor D. Bailey1 -

62 March 12, 2024City Council Meeting Minutes

1. 22-793 Meeting Minutes for the Regular Meeting of February 27, 2024 Meeting Minutes for the Regular Meeting of February 27, 2024Attachments:

APPROVED

2. 22-794 2023 Annual Housing Element Progress Report and 2023 Annual General Plan Progress Report
RECOMMENDATION:

Accept and direct staff to submit the following to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (OPR) via minute action:

1. The 2023 Annual Housing Element Progress Report (Attachment 1)

2. The 2023 Annual General Plan Progress Report (Attachment 2) Staff Report - 2023 GP and Housing Element Annual Reports Attach 1 - Housing Element Annual Progress Report 2023
Attach 2 - General Plan APR 2023
Attachments:

APPROVED

3. 22-795 Resolution Approving the Continuance of an Annual Parcel Assessment to be Adopted by the County Flood Control District for the Contra Costa Clean Water Program for FY 24-25
RECOMMENDATION:

City Council adopt a resolution approving the continuance of the parcel assessment rate of $35.00 per Equivalent Runoff Unit (ERU) for FY 2024-2025 and requesting the Contra Costa County Flood Control and Water Conservation District adopt this annual parcel assessment for drainage maintenance and the National Pollution Discharge Elimination System (NPDES) Program.

Staff Report - FY 23-24 Annual Stormwater Assessment
Attach 1 - Resolution - 2024-2025 Annual Stormwater Assessment Attach 2 - Request to MC for ERU Resolutions
Attach 3 - Clean Water Program Cost Allocation By City
Attachments:

RESOLUTION 24-017 APPROVED.

63 March 12, 2024City Council Meeting Minutes
XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-796 Acceptance of the FY 22-23 Annual Comprehensive Financial Report and other regulatory financial reports.

RECOMMENDATION:

Receive the Fiscal Year (FY) 22-23 Annual Comprehensive Financial Report (ACFR) and Accept the Audited Financial Statements.

Staff Report - FY 22-23 Annual Audit
Attach 1 - 2023 - City of Hercules - ACFR - Final Report Attach 2 - 2023 - City of Hercules - Wastewater Fund - Final Report Attach 3 - 2023 - City of Hercules - Measure B - Final Report Attach 4 - 2023 - City of Hercules - Measure N - Final Report Attach 5 - 2024_Hercules Cit of_GANN _FINAL Report
Presentation
Attachments:

City Manager, Dante Hall, introduced the item. Finance Director, Edwin Gato, and Sohphia Kuo, from the Pun Group, presented the item. Council members asked questions and provided comment. Director Gato and Public Works Director, Mike Roberts, provided a response. No public comment. This was an informational item. No action was taken on this item.

2. 22-799
Memorandum of Understanding with Recyclemore Regarding the Implementation of SB1383 Requirements
RECOMMENDATION:

Adopt a resolution approving a Memorandum of Understanding (MOU) between West Contra Costa Integrated Waste Management Authority (Recyclemore) and the City of Hercules regarding implementation of SB 1383 regulatory requirements
Staff Report - Hercules MOU
Attach 1 - Resolution - SB 1383 MOU
Attach 2 - SB 1383 Hercules MOU
Attach 3 - SB1383 Work Plan Final
Attachments:

City Manager, Dante Hall, introduced the item. Public Works Director, Mike Roberts, Executive Director of RecycleMore, Peter Holtzclaw and Rose Radford of R3 presented. Council Members asked questions and provided comment. No public comment. Action was taken on this item.

MOTION: A motion was made by Council Member Kelley, seconded by Council Member Grimsley, to adopt Resolution 24-018. The motion carried by the following vote:

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

Walker-Griffin, and Mayor D. Romero
4 -

64 March 12, 2024City Council Meeting Minutes

Absent: Vice Mayor D. Bailey1 -

3. 22-800 Consideration of Establishing a City-Sponsored Event Policy RECOMMENDATION:

Approve a resolution establishing a policy for City-sponsored events that allows the City Manager to fully or partially waive permit fees as an in-kind contribution to community events that the City co-sponsors with City-recognized nonprofit groups.

Staff Report - City-Sponsored Event Policy
Attach 1 - Resolution Adopting City-Sponsored Event Policy Attach 2 - City-Sponsored Event Policy
Attach 3 - City Recognized Nonprofit Groups
Attachments:

Community Development Director, Tim Rood, introduced and presented the item. Council Members asked questions and provided comment.

Director Rood, Parks and Recreation Director, Christopher Roke, and City Manager, Dante 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 Walker-Griffin, to adopt Resolution 24-019. The motion carried by the following vote:

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

Walker-Griffin, and Mayor D. Romero
4 -

Absent: Vice Mayor D. Bailey1 -
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

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
City Manager, Dante Hall, and City Attorney, Patrick Tang, had no

65 March 12, 2024City Council Meeting Minutes
announcements.

1. Regional Committee
Council Member Kelley, Council Member Walker-Griffin and Mayor Romero reported out on the March Contra Costa Mayors Conference.

2. City Council Committees and Subcommittees
No reports were provided

3. Commission Liaisons
No reports were provided
Community Events-
Council Members reported out on events they attended throughout the City an County
Future Agenda Items Requests-
Council Member Grimsley requested a future discussion about having a community composting and recycling event. Council Members unanimously agreed to bring it back for discussion at a future City Council meeting.

Mayor Romero requested that the recognition of the Hercules High School Students that participated in the Black Student Union Poetry event, be invited back annually and added to the agenda for the first meeting in March.

XVI. ADJOURNMENT
Mayor Romero adjourned the meeting at 7:55 P.M.
_________________________________
Dan Romero, Mayor
Attest:
_______________________________
Eibleis Melendez, City Clerk

66 DI

SCUSSION AND/OR ACTION

AGENDA ITEMS

1. 22-814

2. 22-813

3. 22-812

4. 22-815
67 STAFF REPORT TO THE CITY COUNCIL
DATE: March 26, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Mike Roberts, Public Works Director/City Engineer SUBJECT: CCTA Feasibility Study Update for Expanded Ferry Service in Contra Costa County – Hercules Location
RECOMMENDED ACTIONS:

It is recommended that the City Council receive a status update from Contra Costa County Transportation Authority (CCTA) Executive Director Tim Haile on the draft Ferry Feasibility Study for the Hercules location and discuss the information provided.

BACKGROUND:

In November 2023 the Hercules City Council approved a Memorandum Of Understanding (MOU) with the Cities of Antioch, Martinez, and Pittsburg, Contra Costa County, Eastern Contra Costa Transit Authority, and the Contra Costa Transportation Authority to evaluate the feasibility of expanded ferry service in Contra Costa County including the Hercules Hub at a participating cost of $40,000 in Measure J Funding.

The Hercules Hub is a regional, state-of-the-art housing and transportation development located on the waterfront overlooking the San Pablo Bay. It will connect thousands of housing units with a new train stop along the Capitol Corridor, bicycle and pedestrian pathways, bus routes, carpool options, and potential ferry service. To date $46M in capital imp rovements have been constructed for this new facility and the City is fully engaged in securing the funding needed to design and construct the remaining infrastructure.

The scope of work includes assessing existing infrastructure, capital improvement costs, operational and maintenance costs including the use of small vessels, permitting requirements, ridership, fare structure, evaluation of possible management structures of the service, and identif ying funding options including grant opportunities. As the lead agency, the Contra Costa Transportation Authority (CCTA) is completing the majority of 22-814
68 the work under the MOU while each agency is participating through a designated representative.

Participating in the MOU is laying the groundwork for future service to the Hub by leveraging service expansion through the joint effort of 7 public agencies, providing the studies needed to better understand and plan for service, and the completion of a written plan by the regional transportation planning agency (i.e. CCTA) needed for the City to be competitive on future grant funding opportunities.

The study is nearing completion and the presentation tonight is intended to provide a high level assessment of the Hercules site.

ANALYSIS:

This section of the staff report is covered in the attached presentation which will be elaborated upon in the verbal presentation.

ATTACHMENTS:

1. Presentation
69 Hercules City Council Meeting
March 26, 2024
CCTA Feasibility Study for Ferry
Service Expansion
70 Feasibility Study Partners
71 Overview of
Contra Costa
County Ferry
Terminal
Locations
2 Richmond Ferry Terminal
72 Initial Ferry Service Assessment Approach
A simple Benefit/Cost Analysis
3 Benefits Costs
• Demand Potential
• Additional transit connections
for Equity Priority Communities
• Indirect benefits from nearby
development
• Waterfront access
• Reducing car trips to SF
• Greenhouse Gas reduction
• Road congestion reduction
• Operating costs
• Capital costs
o Landside Costs
o Waterside costs
o Operations and Maintenance
Facility
o Vessel Procurement
• Initial and Annual
Maintenance Dredging
73 • Existing and planned conditions at the
proposed ferry terminal are evaluated
against the current existing Richmond
ferry terminal
Demand Potential City of
Richmond
Ferry
Location 1
3 Demand Potential
Initial Ferry Feasibility Assessment
• Travel Demand to SF Ferry Terminal
• Transit travel times
• Driving travel times
• Residents within ¾-mile walkshed
• Jobs within ¾-mile walkshed
• Residential density
• Job density
• Existing transit connections
• Existing active transportation connections
• Planned transit connections
• Planned active transportation connections
Notes: Travel Demand to SF Ferry Terminal is for 2022
1 74
Prop SF Vessel: Billie JWETA Vessel: Dorado Vessel
Vessels Evaluated and Operating Authority
• Passenger Capacity: 320
• Bike Capacity: 25
• Max Speed: 32 knots
• Vessel Purchase Cost: $21 million
• Ownership: WETA and operated by
contractor
• Passenger Capacity: 70
• Bike Capacity: 8
• Max Speed: 38 knots
• Vessel Purchase Cost: $3 million
• Ownership: Prop SF and operated by
Prop SF under contract with W
ETA
Notes:

1. Ves sel Types were recommended by WETA. They represent the currently available and approved vessels. The vessel choices for the actual service can be different as new products becoming available.

2. Bike capacity is based on the existing vessels and can be customized. 3 75
• Overall has optimal development and transportation plans to support ferry service yet capital cost is a challenge. • The Hub location has expensive dredging costs, yet the development costs of the Point location make it far more expensive relative to the Hub location.
• Detailed assessment of capital costs for the Hub and the Point locations to understand the challenges and benefits associated with each site as it relates to capital costs. • Evaluation of the optimal ferry service provider for initial and long-term service.
• Conduct further research on the feasibility of emerging vessel, low and zero emission technologies for ferry
service, as well as policy implications and costs
associated with implementing these technologies when
planning ferry service.

Benefits of Demand Potential: Hercules
4 76
Annual Operating Costs by Service Type – Hercules
Type of
Service
Service Level 1
Peak service only
Service Level 2
All day weekday
Service Level 3
All day weekday & weekend
Richmond
Service
All day weekday & weekend
WETA Cost $16.8M $21.0M $24.2M FY 2023- 24
$10.2M
Prop SF Cost $10.6M $12.3M $13.7M
Proposed
One-W
ay Trips
20 (WETA)
24 (Prop SF) 25 25 (Weekday)
10 (Weekend)
28 (Weekday)
10 (Weekend)
Source Notes: WETA & Prop SF | *Additional services in Service Level 1 for Prop SF to accommodate for vessel size capacity. | Number of Round trips have been rounded up | 2023 USD $ 4 1 WETA operating costs include vessel crew labor, vessel fuel, vessel O&M, Facility O&M and System Expenses 1 2 Prop SF assumed operating expenses include maintenance and repairs. However, the assumed costs do not include vessel purchase/lease costs and the cost of a maintenance facility. 2 77
The Point
The Hub
Capital Costs: Hercules (The Point & The Hub)
Source Notes: Site evaluation based on the Illustrative Master Plan of the Hercules Bayfront | 50% contingency added for the Point location to help distinguish cost variance due to Point location being a brownfield. Vessel Purchase Cost: is based on a 20% Spare ratio
• Hercules Total Capital Costs
− WETA Dorado Vessel*:
− The Point: $61.6M
− The Hub: $59M
− Prop SF Billie J Vessel
− The Point: $47.4M
− The Hub: $44.2M
• Vessel Purchase Cost:
− WETA Dorado Vessel: $76M
− Prop SF Vessel: $11M
• The Point had a higher cost due to its location
farther aw
ay from development.
• Capital Costs include:
− Landside costs: utilities, pavement, landscaping, site civil
− Waterside costs: piles, float and shelter items,
construction, cost of pier, gangway
− *Proportional Share of Operations and Maintenance
Facility: Only applicable to the WETA Dorado Vessel
with an estimated cost of $10.2M
4 78
Dredging Costs: Hercules (The Point & The Hub)
The Point
The Hub
4 Hercules
Point
Hercules
Hub
79 Emerging Ferry Technology
5 80
Thank you!
Timothy Haile
Executive Director
[email protected]
@ccta
@thaile
@ ContraCostaTA
@Tim Haile
81 DISCUSSION AND/OR ACTION

AGENDA ITEM

2. 22-813

82 STAFF REPORT TO THE CITY COUNCIL
DATE: March 26, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Mike Roberts, Public Works Director/City Engineer SUBJECT: Contra Costa Countywide Smart Signals Project
RECOMMENDED ACTIONS:

It is recommended that the City Council receive a presentation from Contra Costa County Transportation Authority (CCTA) Planning Director John Hoang on the Contra Costa Countywide Smart Signals Project including within the City of Hercules and discuss the information provided.

BACKGROUND:

Contra Costa Transportation Authority (CCTA) is leading a Smart Signals Project to upgrade traffic signals at 328 intersections throughout the 19 cities and unincorporated communities within Contra Costa County. This work is focused along major arterials that have been designated Routes of Regional Significance. In Hercules, San Pablo Avenue is the designated Route of Regional Significance and the signals that would receive upgrades include Victoria Crescent East, John Muir Parkway, Market Drive, Sycamore Avenue, and Hercules Avenue.

Currently existing traffic signals within Contra Costa lack proper communications tools (like fiber or ethernet), preventing synchronization and coordination b etween signals.

Additionally, most modern signal systems need Signal Control and Prioritization technology that can help transit vehicles and alternative modes such as bikes and shuttles move through intersections safely and efficiently.

The benefits of Smarter Signals includes:
22-813
83  Safer Roads: Better emergency response time, easier management of incidents by first responders and law enforcement, and reduction of secondary incidents due to video analytics that can identify near-miss situations.

 Smoother Travel: Synchronized, responsive signals can reduce idling at red lights, improve speed management, decrease travel delays, reduce greenhouse gas emissions and increase transit reliability.

 Better Traffic Management: Cities will have access to real-time data that allows for optimization of traffic during incidents, evacuations or other major events. Cities will be able to prioritize transit and emergency vehicles as needed.

ANALYSIS:

This section of the staff report is covered in the attached presentation which will be elaborated upon in the verbal presentation.

FISCAL IMPACT:

The One Bay Area Grant (OBAG) 3 that CCTA secured for the construction of the Countywide Smart Signals project will fund $567,597 of the total cost of the improvements in Hercules while the City would be responsible for the remaining 11.47% grant match of $65,091.

ATTACHMENTS:

1. Presentation
84 Contra Costa Countywide Smart Signals
City of Hercules City Council Meeting
John Hoang
Director, Planning
3/26/2024
85 IMPROVE SAFETY,

MINIMIZE CRASHES,

ELIMINATE
INJURIES +

FATALITIES,

VISION ZERO

OPTIMIZE MOBILITY,

RELIEVE
CONGESTION +
MANAGE

EVACUATION ROUTES

ADVANCE THE

SMART COUNTY

SYSTEM /

PREPARE

ARTERIALS FOR

THE FUTURE
SMART SIGNALS Goals
86 • Supports multi-modal transportation for all users
• Increases safety
• Increases transit reliability
• Improves emergency vehicle response time
• Relieves congestion
Key
Benefits
87 How does the
SMART Signal
System work?
• Pedestrian and bicycle detection system supports
proactiv
e identification and prevention of “near miss”
situations
• Signal Synchronization controls and smooths traffic flow • Signal Control and Prioritization (SCP) to
• Reduce emergency vehicle response time
• Increase transit reliability
• Effectively manage arterial traffic during day-to day opera
tions, major incidents on freeway, evacuations,
or major events
• Real-time monitoring of traffic conditions allows
CCT
A/cities/Caltrans access to monitor all videos and
signals to optimize operations
• Connected infrastructure to support deployment of
connected
and autonomous vehicles (V2X, V2I, V2P)
88 SMART SIGNALS

SMART COUNTY
1 2 3 4 5
Five Steps to a SMART City System
89 SMART Signal Improvements

UPGRADE TO ADVANCED

CONTROLLERS & ATC CABINETS
BENEFIT: ADVANCED MOBILITY

FIBER OPTIC/CELLULAR

COMMUNICATION
BENEFIT: Better Capacity and
Reliability

VIDEO DETECTION
BENEFIT: Unobtrusive
Monitoring and Managing of the
Road Network

VULNERABLE ROAD USER PROTECTION
BENEFIT: Pedestrian Safety and Health
SMART
MOBILITY/V2X/CAVBENEFIT: Signal Control And
Prioritization (TSP/EVP)

VIDEO / DATA

ANALYTICS
BENEFIT: Safety
Monitoring
and Alerts
6 90
SMART Signal - Intersection Prioritizing
► On regional routes of significance
► In Priority Development Area (PDA) or access to PDA + Downtown and Commercial Districts
► Presence of transit routes and connection to BART
► Presence of bicycle lanes
► Bicycle and pedestrian collisions
► Connection to Shared Mobility Hubs
► Traffic volume
91 92
Trafficware
Signal Firmware
Trafficware Signal
Controllers
Trafficware
ATMS Central
Software
McCain Signal
Firmware
McCain Signal
Controllers
Econolite Signal
Firmware
Econolite Signal
Controllers
Innovate 680
Signals
Multiple Vendor
Controllers
Econolite
Centracs Central
Software
Center
To
Center
Decision
Support System
Monitoring
Reports
Monitoring
ToolMcCain
QuicNet Central
Software
City A
City B
City C
CATS
I-680 Cities
Multiple Central
Software
93 PROJECT TEAM
Design &
Management
Team
Internal CCTA staff, AMG,
consultants/contractors
performing day-to-day
activities.
(bi-monthly meetings)
Core Advisory
Committee (CAG) Stakeholders
Technical Staff from CCTA ,
local cities, Contra Costa
County and transit
agencies
(Monthly meetings a
week prior to Stakeholder
meetings)
Traffic engineer and public
work staff from all
agencies, including Cities,
County, CHP , and Transit
agencies.
(Monthly meetings a week
after CAG meetings)
94 FUNDING PLAN
95 CITY OF HERCULES
San Pablo Ave Hercules Ave
San Pablo Ave Sycamore Ave
San Pablo Ave Market Dr
San Pablo Ave John Muir Pkwy
San Pablo Ave Victoria Cres E
96 CITY OF HERCULES
Hercules Amount
Total $567,597
Mat
ch (11.47%) $65,091
97 PROJECT SCHEDULE
Systems Engineering
Plan, Specifications, & Estimate
Construction
Systems Integration
Project Close Out
SPRING 2023 - SPRING 2024
SPRING 2024 - FALL 2025
FALL 2025 – FALL 2026
FALL 2026 – FALL 2027
FALL 2028
98 Questions
15 99
DI

SCUSSION AND/OR ACTION

AGENDA ITEM

3. 22-812
100

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of March 26, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
Mike Roberts, Public Works Director
SUBJECT: Draft Fiscal Year 2024 -25 Capital Projects Proposed Budget and Ten-Year Capital Improvement Projects (CIP) Plan
RECOMMENDED ACTION:

Staff recommends that the City Council receive a report and the Draft Fiscal Year (FY) 2024-25 Proposed Capital Budget and Ten-Year CIP and provide direction to staff regarding potential funding options needed for future capital improvements.

EXECUTIVE SUMMARY:

Hercules Capital Improvement Projects (CIP) aims to maintain and improve our City’s aged public infrastructure as best it can with available resources. Taking care of existing infrastructure is an important part of building a resilient city. As such, the capital improvements in this plan balance the need of rehabilitating aged infrastructure while also embarking on key enhancement projects that address critical priorities, such as street safety and sustainability.

This Capital Improvement project emphasizes:
 Substantial capital work has been completed and proposed in light of grant-funded (and locally matched) transportation projects.
 A “fix it first” approach where proper maintenance of Hercules existing infrastructure is prioritized above requests for “new” infrastructure.  Additional revenue or funding is needed to maintain our existing infrastructure adequately.
22-812
101

Public infrastructure includes the City’s streets, sewers, storm drains, transportation, facilities, and parks. While this CIP plans for ten years, the City Council will only allocate funds for Fiscal Year (FY) 2024-25. This CIP and budget will be proposed, along with the City’s operating budget for approval by the City Council during the adoption of the annual budget.

BACKGROUND:

The CIP outlines the vision for short - and long -range project delivery and funding for maintaining, improving, and building new and existing infrastructure assets to benefit our residents, businesses, property owners, and visitors. The CIP links the Genera l Plan, Parks Master Plan, and various master planning documents, as well as available resources, to provide a means for planning, scheduling, and implementing capital projects over the next ten years.

The CIP is intended to incorporate the City’s inves tments in infrastructure development and maintenance (i.e., capital improvements) with other significant capital expenditures that add to or strategically invest in the City’s inventory of assets. Projects included in a CIP are defined as any long-term investment that builds, replaces, or improves an asset (e.g. facilities, roads, parks, sewer, and drainage lines, etc.), have a useful life of at least five years and a minimum cost of $50,000. A critical distinction between the capital and operating budget i s that capital projects are approved in one year, but their completion can take years. In contrast, operating budgets are typically focused on ongoing maintenance and are “use-it-or-lose-it” at year’s end, with unspent funds returned to the fund.

ANALYSIS:

Projects in the Ten-Year CIP were prioritized according to the Ten-Year Action Plan of the recently completed Parks Master Plan, the Sanitary Sewer Master Plan, the City’s Pavement Management Program, and the Draft Building Facilities Assessment.

Proposed FY 2024-25 recommended projects include:

 Construction of the Refugio Park picnic area and shade structure project  Completion of the final design of Beechnut Park
 Resurfacing the Foxboro Basketball Court
 Repairs to the Bay Trail Wall

Also included is the design of the Upper Sycamore Sewer main replacement while Falcon Way is to be resurfaced from Wren Court to Refugio Valley Road. Ten of the City’s public buildings are proposed to receive upgrades, including painting and recarpeting t he first half of City Hall, pool repairs and HVAC replacement in the Community Swim Center, and bathroom renovations in the Ohlone Community Center. The summary of the Ten-Year 102
CIP is listed in Attachment 2 and detailed descriptions of all the proposed CI P projects are included in Attachment 3 to 7.

The FY 2024-25 Proposed CIP are fully funded by various funding sources as specified below.

The Capital Improvement Projects are funded almost exclusively with revenues from restricted funds.

 The Se wer Fu nd is restricted to maintenance and replacement of the City’s sewers. Much of the available funding for the capital budget is, in fact, devoted to the Sewer Fund.
 Transportation Fund includes Gas Tax, Measure J, and SB1 Road Maintenance and Repair Account are the result of voters’ approval of increases dedicated to transportation infrastructures. Transportation projects also are supplemented by Development Impact Fees (DIF), which are paid for by new residential and commercial developments. However, these fees are highly variable and have categorical restrictions.
 Facilities Replacement – Internal Service Fund (ISF) is used for capital improvements to city-owned buildings and is paid through their operating budget.  The General Fund, though historically a s mall contributor to the overall capital budget, is the only non -restricted funding source that can support any public infrastructure expense.

While the Draft FY 2024 -2025 Capital Budget specifies dedicated funding sources to complete the projects listed, years 2 -10 of the Ten-Year CIP identified a significant number of unfunded projects. The total number of unfunded projects identified in the Ten- Year CIP is approximately $118 million: $101 million for Hercules HUB, $9.6 million for streets, $4.2 million for parks, and $3.3 million for facilities as summarized in Attachment

2. Staff recommends looking for other alternatives to fund the projects. The following are financing or funding options for the City Council to explore regarding potential funding for the future CIP.

 Capital Grants – The City acquired the services of grant writing consultant, California Consulting to continue efforts to identify, and apply for, available grants applicable to approved Capital Improvement Projects.
 Bond Financing (Attachment 8)
o General Obligation Bonds, which are also referred to as GOs, are municipal bonds which provide a way for state and local governments to raise money for projects that may not generate a revenue stream directly. They are called “general obligation” bonds because they are not backed by a specific revenue producing project or asset. Instead, they are backed by the “full faith and credit” of the issuer. In simple terms that means the bonds are backed by the state or local government’s ability to tax, and to raise taxes 103
to pay bondholders. For cities, it normally comes in the form of property taxes.
o Lease Revenue Bonds is an effective and increasingly popular vehicle for state and local governments or cities to finance and refinance equipment acquisitions, the construction of public facilities and the expansion and rehabilitation of existing public facilities. Lease financing enables cities to finance a variety of governmental projects without incurring a “debt” or an “indebtedness”.

FISCAL IMPACT:

Projects with prior City Council appropriations that were not fully expended have remaining appropriation balances included as carryover amounts. These amounts are strictly estimates and will be trued up at year -end close. The carryover es timate often includes funds encumbered/committed due to an executed contract for services or goods.

The ten -year CIP coordinates physical improvements with financial planning, allowing maximum benefits from available funding sources. It relies on funding from various sources, primarily retained in the capital and special revenue funds, with uses usually restricted to specific purposes. Funding sources are each further described in the City's adopted budget. The City also adopted a policy to set aside money for a capital reserve to utilize as a funding source for capital needs.

Because staff identified many unfunded projects in the next ten years, staff recommend that the City Council explore financing these projects by issuing bonds. By issuing long - term debt for costly infrastructure projects with long service lives, the City can increase equity between generations without disrupting the operating budget.

Staff are committed to completing the projects outlined in the CIP budget.

ATTACHMENTS:

1. Summary of Completed Projects and Prior Year Carryovers

2. Ten-Year CIP – Summary of CIP Spending Plan FY 2024-2034

3. Ten-Year CIP – Facility Category

4. Ten-Year CIP – Street Category

5. Ten-Year CIP – Sewer Category

6. Ten-Year CIP – Parks & Open Space Category

7. Ten-Year CIP – Transportation Category

8. Presentation - Bond Financing
104

CITY OF HERCULES

CAPITAL PROJECTS

SUMMARY OF COMPLETED PROJECTS AND PRIOR YEAR CARRYOVERS Project Name Budget to date
Actual Expenditures
thru March 2024
Outstanding
Encumbrances/Estimate
through June 30
Projected Prior Year
Carryover/Remaining
Balance
Police Facilities Expansion 160,000 5,089 96,993 57,918 Council Chamber Improvements 50,000 - 50,000 - Coporation Yard Drainage Improvements - - - - Building Facilities Plan 75,000 64,965 10,035 - Library Repair Leak 107,000 12,955 (5,955) 100,000 Total, Facilities 392,000 83,009 151,073 157,918 Pedestrian Sidewalk Improvement Willow & Palm 1,781,940 1,559,169 222,771 - 2022 Annual Street Rehabilitation Sycamore Avenue 920,773 920,773 - - Countywide Smart Signals 567,597 - 567,597 - Sidewalk and Safe Walkways 100,000 100,000 - - Village Parkway Traffic Calming 88,147 88,147 - - Emergency Repairs 250,000 247,481 2,519 - Total, Streets 3,708,457 2,915,570 792,887 - Sycamore Ave (Lower Trunk Main) 14,351,000 10,778,284 3,572,716 - Sycamore Ave (Upper Truck Main) 200,000 40,396 159,604 - Total, Sewer 14,551,000 10,818,680 3,732,320 - Baywood Tree Replacement 140,000 140,000 - - Woodfield Park Backstop 20,000 20,000 - - Park Improvement Project 200,000 14,266 185,734 - Lupine Hill Stabilization - - - - Beechnut Park 25,000 - - 25,000 Refugio Tennis Court - - - - Community Swim Center Fence Replacements 91,987 91,987 - - Community Center Building & Deferred Maintenance 250,000 122,189 127,811 - Parks Master Plan 150,000 150,000 - - Swing Sets 89,766 89,766 - - Refurnish Gazebo/Railing 23,575 23,575 - - Ohlone Dog Park Tree Removal & Pruning 42,900 42,900 - - Tree Planting & Removal Open Space 110,000 61,650 48,350 - Aerator Reugio Valley Parks 45,218 45,218 - - Tree Mitigation & Replacement Program 150,000 48,850 101,150 - Tree Mitigation in Open Space 50,000 50,000 - - Refugio Picnic Area 76,450 - - 76,450 Total, Parks & Open Space 1,464,896 900,401 463,045 101,450 Hercules Rail Station 46,377,537 46,377,537 - - Hercules HUB 1,994,531 725,685 533,816 735,030 Total, Transportation 48,372,068 47,103,222 533,816 735,030 Total 68,488,421 61,820,882 5,673,141 994,398 105

SUMMARY OF TEN-YEAR CAPITAL IMPROVEMENT
PROGRAM SPENDING PLAN FY 2024-2034
Prior FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Project Name Funding Sources Carryover Proposed Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection City Hall General Fund/Capital Reserves - 137,170 337,700 - - - - - - - - 474,870 Senior Center General Fund/Capital Reserves - 22,715 19,250 41,965 Library General Fund/Capital Reserves 100,000 15,000 - - - - - - - - - 115,000 Community Swim Center General Fund/Capital Reserves - 132,638 94,160 - - - - - - - - 226,798 Teen Center General Fund/Capital Reserves - 20,460 11,000 - - - - - - - - 31,460 Hanna Ranch Childcare Center General Fund/Capital Reserves - 6,820 34,650 - - - - - - - - 41,470 Lupine Kidz Center General Fund/Capital Reserves - 17,380 17,160 - - - - - - - - 34,540 Public Works Maintenance Yard General Fund/Capital Reserves - 30,000 - - - - - - - - - 30,000 Ohlone Community Center General Fund/Capital Reserves - 113,905 37,620 - - - - - - - - 151,525 Foxboro Community Center General Fund/Capital Reserves - 9,735 - - - - - - - - - 9,735 Police Impact Fee - 200,000 - - - - - - - - - 200,000 Asset Seizure Fund 57,918 117,000 - - - - - - - - - 174,918 Future Facility Capital Improvement Project Unfunded - - - 415,000 415,000 415,000 415,000 415,000 415,000 415,000 415,000 3,320,000 Total, Facilities 157,918 822,823 551,540 415,000 415,000 415,000 415,000 415,000 415,000 415,000 415,000 4,852,281 General Fund/Capital Reserves - 1,000,000 - - - - - - - - - 1,000,000 State Gas Tax Fund - 262 - 300,000 - - - - - - - - - 300,000 Measure J Fund - 263 - 100,000 - - - - - - - - - 100,000 Solid Waste Fund - 250,000 - - - - - - - - - 250,000 General Fund/Capital Reserves - - 750,000 - - - - - - - - 750,000 State Gas Tax Fund - 262 - 150,000 250,000 - - - - - - - - 400,000 Measure J Fund - 263 - - 100,000 - - - - - - - - 100,000 State Gas Tax Fund - 262 - - - 250,000 - - - - - - - 250,000 Measure J Fund - 263 - - - 100,000 - - - - - - - 100,000 Unfunded - - 150,000 1,150,000 - - - - - - - 1,300,000 Green Infrastructure Project Unfunded - - 250,000 - - - - - - - - 250,000 State Gas Tax Fund - 262 - - - - 250,000 250,000 250,000 250,000 250,000 250,000 250,000 1,750,000 Measure J Fund - 263 - - - - 100,000 100,000 100,000 100,000 100,000 100,000 100,000 700,000 Unfunded - - - - 1,150,000 1,150,000 1,150,000 1,150,000 1,150,000 1,150,000 1,150,000 8,050,000 Countywide Smart Signals State Gas Tax Fund - 262 - 65,100 - - - - - - - - - 65,100 Total, Streets - 1,865,100 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 15,365,100 Sycamore Ave (Upper Trunk Main) Sewer Fund - 421 - 640,000 5,505,300 - - - - - - - - 6,145,300 Promenade Lift Station Sewer Fund - 421 - - 185,000 1,170,450 - - - - - - - 1,355,450 Repair/Replace Sewer Lines under SR-4 &
Along Willow Avenue Sewer Fund - 421 - - 200,000 100,000 1,080,000 - - - - - - 1,380,000 Total, Sewer - 640,000 5,890,300 1,270,450 1,080,000 - - - - - - 8,880,750 Eastbay Regional Park District
WW Grant Fund 25,000 35,000 - - - - - - - - - 60,000 Prop 64 Grant Funds - 3,500 190,500 - - - - - - - - 194,000 Parks Impact Fee - - 150,000 - - - - - - - - 150,000 Foxboro Playground Unfunded - - 50,000 550,000 - - - - - - - 600,000 Foxboro Basketball Court General Fund/Capital Reserves - 145,000 - - - - - - - - - 145,000 General Fund/Capital Reserves 76,450 500,000 - - - - - - - - - 576,450 Community Development Tax - 170,000 - - - - - - - - - 170,000 Refugio Tennis Court Unfunded - - 55,000 270,000 - - - - - - - 325,000 General Fund/Capital Reserves - - - 500,000 - - - - - - - 500,000 Unfunded - - 170,000 225,000 - - - - - - - 395,000 Woodfield Basketball Court Unfunded - - 215,000 - - - - - - - - 215,000 Woodfield Tennis Court Unfunded - - - 320,000 - - - - - - - 320,000 Woodfield Replace Restroom Unfunded - - - - - - 465,000 - - - - 465,000 Woodfield Accessibility Route Unfunded - - - - 55,000 273,000 - - - - - 328,000 Transportation Impact Fee - - - - 240,000 - - - - - - 240,000 Unfunded - - - - - 1,440,000 - - - - - 1,440,000 Slurry Seal the Bay Trail Unfunded - - - 132,000 - - - - - - - 132,000 Bay Trail Wall Repair State Gas Tax Fund - 262 - 100,000 - - - - - - - - - 100,000 Total, Parks 101,450 953,500 830,500 1,997,000 295,000 1,713,000 465,000 - - - - 6,355,450 Police Department Lobbies
Falcon Way
Foxboro
Sycamore Avenue Bicycle
Hercules By The Bay
Annual Street Repair Project
Beechnut Park
Refugio Picnic Area
Dredge Refugio Lake
1 106

SUMMARY OF TEN-YEAR CAPITAL IMPROVEMENT
PROGRAM SPENDING PLAN FY 2024-2034
Prior FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Project Name Funding Sources Carryover Proposed Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Grants 735,030 989,000 2,909,500 1,289,000 5,922,530 General Fund/Capital Reserves 2,329,500 2,329,500
Unfunded 4,250,000 29,085,319 30,162,080 30,162,080 7,540,520 101,199,999 Total, Transportation 735,030 989,000 7,159,500 32,703,819 30,162,080 30,162,080 7,540,520 - - - - 109,452,029 Total, CIP 994,398 5,270,423 15,931,840 37,886,269 33,452,080 33,790,080 9,920,520 1,915,000 1,915,000 1,915,000 1,915,000 144,905,610 Funding Sources:

Grant Funds 760,030 1,027,500 3,100,000 1,289,000 - - - - - - - 6,176,530 Parks Impact Fee - - 150,000 - - - - - - - - 150,000 Transportation Impact Fee - - - - 240,000 - - - - - - 240,000 Police Impact Fee - 200,000 - - - - - - - - - 200,000 General Fund/Capital Reserves 176,450 2,150,823 1,301,540 2,829,500 - - - - - - - 6,458,313 Community Development Tax Fund - - - - - - - - - - - - State Gas Tax Fund - 262 - 615,100 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000 2,865,100 Asset Seizure Fund 57,918 117,000 - - - - - - - - - 174,918 Facility Maintenance Fund - - - - - - - - - - - - Measure J Fund - 263 - 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,000,000 Solid Waste Fund - 250,000 - - - - - - - - - 250,000 Sewer Fund - 421 - 640,000 5,890,300 1,270,450 1,080,000 - - - - - - 8,880,750 Community Development Tax - 170,000 - - - - - - - - - 170,000 Unfunded - - 5,140,000 32,147,319 31,782,080 33,440,080 9,570,520 1,565,000 1,565,000 1,565,000 1,565,000 118,339,999 Total, Funding 994,398 5,270,423 15,931,840 37,886,269 33,452,080 33,790,080 9,920,520 1,915,000 1,915,000 1,915,000 1,915,000 144,905,610 Hercules - The HUB
2 107
Project Funding Source: Prior FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection City Hall General Fund/Capital Reserves $ - $ 137,170.00 $ 337,700.00 $ - $ - $ - $ - $ - $ - $ - $ - 474,870$ Senior Center General Fund/Capital Reserves -$ 22,715.00$ 19,250.00$ -$ -$ -$ -$ -$ -$ -$ -$ 41,965$ Library General Fund/Capital Reserves 100,000.00$ 15,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 115,000$ Community Swin Center General Fund/Capital Reserves -$ 132,638.00$ 94,160.00$ -$ -$ -$ -$ -$ -$ -$ -$ 226,798$ Teen Center General Fund/Capital Reserves -$ 20,460.00$ 11,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ 31,460$ Hanna Ranch Childcare Center General Fund/Capital Reserves -$ 6,820.00$ 34,650.00$ -$ -$ -$ -$ -$ -$ -$ -$ 41,470$ Lupine Kidz Center General Fund/Capital Reserves -$ 17,380.00$ 17,160.00$ -$ -$ -$ -$ -$ -$ -$ -$ 34,540$ Ohlone Childcare Center Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Public Works Maintenance Yard General Fund/Capital Reserves -$ 30,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 30,000$ Ohlone Community Center General Fund/Capital Reserves -$ 113,905.00$ 37,620.00$ -$ -$ -$ -$ -$ -$ -$ -$ 151,525$ Foxboro Community Center General Fund/Capital Reserves -$ 9,735.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 9,735$ Police Development Impact Fee -$ 200,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 200,000$ Asset Seizure Fund 57,918.00$ 117,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 174,918$ Future Facility Capital Improvement
Project Unfunded -$ -$ -$ 415,000.00$ 415,000.00$ 415,000.00$ 415,000.00$ 415,000.00$ 415,000.00$ 415,000.00$ 415,000.00$ 3,320,000$ Total 157,918$ 822,823$ 551,540$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 4,852,281$ Funding Source:
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ General Fund/Capital Reserves 100,000$ 505,823$ 551,540$ -$ -$ -$ -$ -$ -$ -$ -$ 1,157,363$ Police Development Impact Fee -$ 200,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 200,000$ Facility Maintenance Fund -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Asset Seizure Fund 57,918$ 117,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 174,918$ Unfunded -$ -$ -$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 3,320,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 157,918$ 822,823$ 551,540$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 4,852,281$ City of Hercules
Facilities CIP Summary
Police Department Lobbies
108
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves -$ 137,170$ 337,700$ -$ -$ -$ -$ -$ -$ -$ -$ 474,870$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 137,170$ 337,700$ -$ -$ -$ -$ -$ -$ -$ -$ 474,870$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
City Hall
FY 24-25
ADA Transition Plan $25,000
Carpet/Paint $75,000
Rebuild Entrance Garden / Fountain / Lighting $20,000
Exit Lights $4,200
FY 25-26
Exterior Paint $50,000
ADA Transition $25,000
Carpet/Paint $75,000
Repave Parking Lot $150,000
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
109
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves -$ 22,715$ 19,250$ -$ -$ -$ -$ -$ -$ -$ -$ 41,965$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 22,715$ 19,250$ -$ -$ -$ -$ -$ -$ -$ -$ 41,965$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Senior Center
FY 24-25
Fence around inground transformer Transformer $3,000
ADA Steps , Ramps and walkways at Senior Center $15,000 Inspect and update Exit Lights as needed $2,100
FY 25-26
Repair / Replace roof gutters $2,000
Repaint Outside Senor Center $8,000
Repaint inside Senor Center $5,000
Carpet $2,500
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
110
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves 100,000$ 15,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 115,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 100,000$ 15,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 115,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Library
Seal the Starry Cone with elastomeric paint.

FY 24-25
Seal Starry Cone $15,000
Elastomeric paint could prevent leaking from re-occurring for 2-3 Years. 111
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves -$ 132,638$ 94,160$ -$ -$ -$ -$ -$ -$ -$ -$ 226,798$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 132,638$ 94,160$ -$ -$ -$ -$ -$ -$ -$ -$ 226,798$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Community Swin Center
FY 24-25
Pool Deck slot drain Repair $25,000 Replace electrical Panel Cover $1,200 HVAC Repair/Replacement $79,080 AC compressor Electrical Disconnects $3,500 Filter Flow Meters $3,600
Inspect and update Exit Lights as needed $2,100
FY 25-26
Ada Steps , Ramps and walkways at Senior Center $25,000 Flow Meters $5,400 ADA Striping $3,000 Pool Deck Lighting $18,000
Shower Benches $12,000 UPS To Phone System $1,200
Replace Diving Board $15,000 Pool Filter Media $3,600 Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
112
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves -$ 20,460$ 11,000$ -$ -$ -$ -$ -$ -$ -$ -$ 31,460$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 20,460$ 11,000$ -$ -$ -$ -$ -$ -$ -$ -$ 31,460$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Teen Center
FY 24-25
ADA Steps , Ramps and walkways at Teen Center $15,000
Bathroom Exhaust Fans $3,600
FY 25-26
Kitchen Range Hood $2,000
Exterior Paint $8,000
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
113
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves -$ 6,820$ 34,650$ -$ -$ -$ -$ -$ -$ -$ -$ 41,470$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 6,820$ 34,650$ -$ -$ -$ -$ -$ -$ -$ -$ 41,470$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Hanna Ranch Childcare Center
FY 24-25
Kitchen Range Hood $2,000
Inspect and update Exit Lights as needed $4,200
FY 25-26
VCT Flooring in Classrooms $25,000
Interior Cabinet Repair and Refresh $6,500
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
114
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves -$ 17,380$ 17,160$ -$ -$ -$ -$ -$ -$ -$ -$ 34,540$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 17,380$ 17,160$ -$ -$ -$ -$ -$ -$ -$ -$ 34,540$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Lupine Kidz Center
FY 24-25
Restroom Exhaust Fans $5,400
Kitchen Range Hood $2,000
Inspect and update Exit Lights as needed $8,4000
FY 25-26
Slurry Seal Parking Lot $3,500
Restripe Parking Lot $2,500
Inspect and update Fire Alarm as needed $9,600
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
115
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Ohlone Childcare Center
No work planned.

Faility is owned by school district.
116
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves -$ 30,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 30,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 30,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 30,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Public Works Maintenance Yard
FY 24-25
Replace or Repair Trailer $30,000
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community. The Roof and siding needs to be repaired. 117
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves -$ 113,905$ 37,620$ -$ -$ -$ -$ -$ -$ -$ -$ 151,525$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 113,905$ 37,620$ -$ -$ -$ -$ -$ -$ -$ -$ 151,525$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Ohlone Community Center
FY 24-25
Redesign and Renovate Bathrooms $56,000 Water Heater $3,500 HVAC Repair and or Replacement $22,950 Inspect and update Exit Lights as needed $2,100 Interior Cabinet Repair and Refresh $6,500 Install Parking lot Lights $10,500 FY 25-26
Exterior Paint $8.,000
ADA Transition $10,000
HVAC Repair and or Replacement $16,200
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
118
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed General Fund/Capital Reserves -$ 9,735$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 9,735$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 9,735$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 9,735$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Foxboro Community Center
FY 24-25
Furnace Repair / Replacement $6,750
Inspect and update Exit Lights as needed $2,100
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
119
Project Number: BDP#22-3
Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Police Development Impact Fee -$ 200,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 200,000$ Asset Seizure Fund 57,918$ 117,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 174,918$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 57,918$ 317,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 374,918$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Police Department Lobbies
This project will remove the decrepit, abandoned modular building in front of City Hall and replace it with police lockers, Including private restrooms and showers, and a workout/training area. The project is on hold until sufficient developer impact fees have been deposited into the fund, which would occur for example when the Bayfront developer pulls permits for The Mint private residential development project.

The Locker room and restrooms used by Police Staff are too small and are in greatly deteriorated condition as they are utilized 24 hours a day/seven days a week. In addition, as our Police staffing has become more diverse with more female officers, space needs to be reallocated to accommodate this shift.

A remodel and upgrade of the existing locker rooms and restrooms was evaluated but is not feasible. The new facilities will provide more space and allow for increased diversity and inclusion. 120
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Unfunded -$ -$ -$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 3,320,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 415,000$ 3,320,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Future Facility Capital Improvement Project
Future facility capital improvement projects to be determined.

FY 26-27 through FY 33-34
Per Draft Building Assessment
Identified in the Draft Building Assessment 10-Year CIP for health, safety, building longevity, and service to the community.
121
Project Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ 1,000,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,000,000$ State Gas Tax Fund - 262 -$ 300,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 300,000$ Measure J Fund - 263 -$ 100,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 100,000$ Solid Waste Fund -$ 250,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 250,000$ General Fund/Capital Reserves $ - $ - $ 750,000.00 $ - $ - $ - $ - $ - $ - $ - $ - 750,000$ State Gas Tax Fund - 262 $ - $ 150,000.00 $ 250,000.00 $ - $ - $ - $ - $ - $ - $ - $ - 400,000$ Measure J Fund - 263 $ - $ - $ 100,000.00 $ - $ - $ - $ - $ - $ - $ - $ - 100,000$ State Gas Tax Fund - 262 $ - $ - $ - $ 250,000.00 $ - $ - $ - $ - $ - $ - $ - 250,000$ Measure J Fund - 263 $ - $ - $ - $ 100,000.00 $ - $ - $ - $ - $ - $ - $ - 100,000$ Unfunded $ - $ - $ 150,000.00 $ 1,150,000.00 $ - $ - $ - $ - $ - $ - $ - 1,300,000$ Green Infrastructure Project Unfunded $ - $ - $ 250,000.00 $ - $ - $ - $ - $ - $ - $ - $ - 250,000$ State Gas Tax Fund - 262 $ - $ - $ - $ - $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 $ 250,000.00 1,750,000$ Measure J Fund - 263 $ - $ - $ - $ - $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 700,000$ Unfunded $ - $ - $ - $ - $ 1,150,000.00 $ 1,150,000.00 $ 1,150,000.00 $ 1,150,000.00 $ 1,150,000.00 $ 1,150,000.00 $ 1,150,000.00 8,050,000$ Countywide Smart Signals State Gas Tax Fund - 262 $ - $ 65,100.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 65,100$ Total -$ 1,865,100$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 15,365,100$ Funding Sources:

General Fund/Capital Reserves -$ 1,000,000$ 750,000$ -$ -$ -$ -$ -$ -$ -$ -$ 1,750,000$ State Gas Tax Fund - 262 -$ 515,100$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 2,765,100$ Measure J Fund - 263 -$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 1,000,000$ Solid Waste Fund -$ 250,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 250,000$ Unfunded -$ -$ 400,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 9,600,000$ Total -$ 1,865,100$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 15,365,100$ Annual Street Repair Project
City of Hercules
Streets CIP Summary
Falcon Way
Foxboro
Hercules By The Bay
122
Project Number:

Project Name:

Description:

Justification:
v
Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ 1,000,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,000,000$ State Gas Tax Fund - 262 -$ 300,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 300,000$ Measure J Fund - 263 -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 100,000$ Solid Waste Fund -$ 250,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 250,000$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 1,650,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,650,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Falcon Way
Repair and resurface Falcon Way from Wren Court to Refugio Valley Road This section of Falcon Way which serves as a collector for the Birds neighborhood is in extremely poor condition and on a steep downgrade with curves.

Design = $100,000
Construction =1,500,000
Contract Project Management Cost = $50,000
Design and construct FY24-25
123
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ -$ 750,000$ -$ -$ -$ -$ -$ -$ -$ -$ 750,000$ State Gas Tax Fund - 262 -$ 150,000$ 250,000$ -$ -$ -$ -$ -$ -$ -$ -$ 400,000$ Measure J Fund - 263 -$ -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ -$ 100,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 150,000$ 1,100,000$ -$ -$ -$ -$ -$ -$ -$ -$ 1,250,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Foxboro
Repair and Resurface residential streets in Foxboro as funding allows.

The Foxboro neighborhood, as a whole, has the most degraded streets in Hercules.

Design = $100,000
Construction = $1,100,000
Contract Project Management Cost = $50,000
Design FY24-25
construct FY25-26
124
Project Number:

Project Name:

Description:

Justification:
v
Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection State Gas Tax Fund - 262 -$ -$ -$ 250,000$ -$ -$ -$ -$ -$ -$ -$ 250,000$ Measure J Fund - 263 -$ -$ -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ 100,000$ Unfunded -$ -$ 150,000$ 1,150,000$ -$ -$ -$ -$ -$ -$ -$ 1,300,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ 150,000$ 1,500,000$ -$ -$ -$ -$ -$ -$ -$ 1,650,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Hercules By The Bay
Repair and Resurface residential streets in Hercules By The Bay as funding allows.

Hercules By The Bay, as a whole, has the most degraded streets in Hercules excepting the Foxboro neighborhood
Design = $100,000
Construction = $1,500,000
Contract Project Management Cost = $50,000
Design FY25-26
construct FY26-27
125
Project Number:

Project Name:

Description:

Justification:
v
Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded -$ -$ 250,000$ -$ -$ -$ -$ -$ -$ -$ -$ 250,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ 250,000$ -$ -$ -$ -$ -$ -$ -$ -$ 250,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Green Infrastructure Project
Green Infrastructure (GI) refers to the construction and retrofit of storm drainage to reduce runoff volumes, disperse runoff to vegetated areas, harvest and use runoff where feasible, promote infiltration and evapotranspiration, and use bioretention and other natural systems to detain and treat runoff before it reaches our creeks and Bay. Green infrastructure facilities include, but are not limited to, pervious pavement, infiltration basins, and bioretention facilities or “raingardens”.

Provision C.3.j.i of the Municipal Regional Stormwater Permit (MRP) requires the City to treat 1.58 acres through Green Infrastructure by June 30, 2027.

FY25/26
$250k
126
Project Number:

Project Name:

Description:

Justification:
v
Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection State Gas Tax Fund - 262 -$ -$ -$ -$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 250,000$ 1,750,000$ Measure J Fund - 263 -$ -$ -$ -$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 700,000$ Unfunded -$ -$ -$ -$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 1,150,000$ 8,050,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ -$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 1,500,000$ 10,500,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Annual Street Repair Project
Repair and Resurface City streets at miscellaneous locations. 127
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ State Gas Tax Fund - 262 -$ 65,100$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 65,100$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 65,100$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 65,100$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Countywide Smart Signals
This is a part of a County-wide traffic signal improvement and coordination project that will be funded and administered by CCTA through a grant they received and for which Hercules will provide the local match. Signals to be included are along the San Pablo Corridor including: Hercules Av, Sycamore Av, Market Dr, John Muir Parkway, and Victorial Crescent East. The improvements will include video detection, back up batteries, traffic signal synchronization, and controller updates.

CCTA's SHare of cost $502,506
City Match $65,000
Signal improvements will increase traffic efficiencies at each signal and County wide, provide needed updates to the controllers, and the backup batteries will ensure the signals function during power outages.
128
Project Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sycamore Ave (Upper Truck Main) Sewer Fund - 421 -$ 640,000$ 5,505,300$ -$ -$ -$ -$ -$ -$ -$ -$ 6,145,300$ Promenade Lift Station Sewer Fund - 421 -$ -$ 185,000$ 1,170,450$ -$ -$ -$ -$ -$ -$ -$ 1,355,450$ Repair/ Replace Sewer Lines under
SR-4 & Along Willow Ave Sewer Fund - 421 -$ -$ 200,000$ 100,000$ 1,080,000$ -$ -$ -$ -$ -$ -$ 1,380,000$ Total -$ 640,000$ 5,890,300$ 1,270,450$ 1,080,000$ -$ -$ -$ -$ -$ -$ 8,880,750$ City of Hercules
Sewer CIP Summary
129
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sewer Fund - 421 -$ 640,000$ 5,505,300$ -$ -$ -$ -$ -$ -$ -$ -$ 6,145,300$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 640,000$ 5,505,300$ -$ -$ -$ -$ -$ -$ -$ -$ 6,145,300$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Sycamore Ave (Upper Trunk Main)
Upsize 1,446 ft. of 20-inch Gravity main to 24-inch gravity main and 1,956 ft. of 20 and 24- inch gravity main to 27-inch gravity main along sycamore Ave. The extent of this project goes from Highway 80 on the upstream end to the convergence of the trunk sewer from the industrial LS Force main on the downstream end. Flow monitoring, hydraulin modeling, and preliminary design is occurring in FY 2023-24, final design is scheduled for 2024-25, with construction in FY 2025-26.

The hydraulic modeling in the Sewer Master Plan Update indicates the mainlines need to be increased in size to convey future flows.

Design = $540,000
Construction = $5,505,300
Contract Project Management = $100,000
130
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sewer Fund - 421 -$ -$ 185,000$ 1,170,450$ -$ -$ -$ -$ -$ -$ -$ 1,355,450$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ 185,000$ 1,170,450$ -$ -$ -$ -$ -$ -$ -$ 1,355,450$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Promenade Lift Station
As part of the Bay Front Development Project, the Promenade Lift Station will be taken off-line and bypassed using gravity piping. The Project includes decommissioning the Promenade Lift Station and installing 1,1200 feet of 12-inch diameter gravity main.

The relocation is required by the Development Agreement.

Design = $135,000
Construction = $1,170,450
Contract Project Management = $50,000
131
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Sewer Fund - 421 -$ -$ 200,000$ 100,000$ 1,080,000$ -$ -$ -$ -$ -$ -$ 1,380,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ 200,000$ 100,000$ 1,080,000$ -$ -$ -$ -$ -$ -$ 1,380,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Repair/ Replace Sewer Lines under SR-4 & Along Willow Ave.

Repair existing main under SR-4 between Willow and Foxboro and 2 sections of main along Willow near Sycamore.

FY 25-26 Replace 2 Sections of pipe
FY 26-27 Design remaining sections, including under SR-4 FY 26-27 Construction
Prior cleaning/video inspection has determined the pipes are in poor condition and should be repaired. Additional analysis during design will determine extent of repair needed. 132
Project Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Eastbay Regional Park District WW
Grant Funds $ 25,000.00 $ 35,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 60,000.00$ Prop. 64 Grant Funds -$ 3,500.00$ 190,500.00$ -$ -$ -$ -$ -$ -$ -$ -$ 194,000.00$ Parks Impact Fee Fund -$ -$ 150,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ 150,000.00$ Foxboro Playground Unfunded $ - $ - $ 50,000.00 $ 550,000.00 $ - $ - $ - $ - $ - $ - $ - 600,000.00$ Foxboro Basketball Court General Fund/Capital Reserves -$ 145,000.00$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 145,000.00$ General Fund/Capital Reserves $ 76,450.00 $ 500,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 576,450.00$ Community Development Tax Fund $ - $ 170,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 170,000.00$ Unfunded $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - -$ Refugio Tennis Courts Unfunded $ - $ - $ 55,000.00 $ 270,000.00 $ - $ - $ - $ - $ - $ - $ - 325,000.00$ General Fund/Capital Reserves $ - $ - $ - $ 500,000.00 $ - $ - $ - $ - $ - $ - $ - 500,000.00$ Unfunded $ - $ - $ 170,000.00 $ 225,000.00 $ - $ - $ - $ - $ - $ - $ - 395,000.00$ Woodfield Basketball Court Unfunded $ - $ - $ 215,000.00 $ - $ - $ - $ - $ - $ - $ - $ - 215,000.00$ Woodfield Tennis Court Unfunded $ - $ - $ - $ 320,000.00 $ - $ - $ - $ - $ - $ - $ - 320,000.00$ Woodfield Replace Restroom Unfunded $ - $ - $ - $ - $ - $ - $ 465,000.00 $ - $ - $ - $ - 465,000.00$ Woodfield Accessibility Route Unfunded $ - $ - $ - $ - $ 55,000.00 $ 273,000.00 $ - $ - $ - $ - $ - 328,000.00$ Transportation Impact Fee Fund $ - $ - $ - $ - $ 240,000.00 $ - $ - $ - $ - $ - $ - 240,000.00$ Unfunded $ - $ - $ - $ - $ - $ 1,440,000.00 $ - $ - $ - $ - $ - 1,440,000.00$ Slurry Seal the Bay Trail Unfunded $ - $ - $ - $ 132,000.00 $ - $ - $ - $ - $ - $ - $ - 132,000.00$ Bay Trail Wall Repair State Gas Tax Fund - 262 $ - $ 100,000.00 $ - $ - $ - $ - $ - $ - $ - $ - $ - 100,000.00$ Total 101,450$ 953,500$ 830,500$ 1,997,000$ 295,000$ 1,713,000$ 465,000$ -$ -$ -$ -$ 6,355,450$ Funding Source:

Transportation Impact Fee Fund -$ -$ -$ -$ 240,000$ -$ -$ -$ -$ -$ -$ 240,000$ Eastbay Regional Park District WW
Grant Funds 25,000$ 35,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 60,000$ Prop. 64 Grant Funds -$ 3,500$ 190,500$ -$ -$ -$ -$ -$ -$ -$ -$ 194,000$ General Fund/Capital Reserves 76,450$ 645,000$ -$ 500,000$ -$ -$ -$ -$ -$ -$ -$ 1,221,450$ Parks Impact Fee Fund -$ -$ 150,000$ -$ -$ -$ -$ -$ -$ -$ -$ 150,000$ Community Development Tax Fund -$ 170,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 170,000$ State Gas Tax Fund - 262 -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 100,000$ Unfunded -$ -$ 490,000$ 1,497,000$ 55,000$ 1,713,000$ 465,000$ -$ -$ -$ -$ 4,220,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 101,450$ 953,500$ 830,500$ 1,997,000$ 295,000$ 1,713,000$ 465,000$ -$ -$ -$ -$ 6,355,450$ Sycamore Avenue Bicycle
City of Hercules
Parks CIP Summary
Dredge Refugio Lake
Beechnut Park
Refugio Picnic Area
133
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Eastbay Regional Park
District WW Grant Funds 25,000$ 35,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 60,000$ Prop. 64 Grant Funds -$ 3,500$ 190,500$ -$ -$ -$ -$ -$ -$ -$ -$ 194,000$ Parks Impact Fee Fund -$ -$ 150,000$ -$ -$ -$ -$ -$ -$ -$ -$ 150,000$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 25,000$ 38,500$ 340,500$ -$ -$ -$ -$ -$ -$ -$ -$ 404,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Beechnut Park Improvement Project
Improve Beechnut Park utilitzing grant funding. Improvements are to be determined but could include a half play court with basketball hoop, play structures, picnic area, and turf play area. There is an easement for the overhead electric transmission lines which needs to be modified by PG&E and approved by the CPUC prior to improvements being constructed. This process is expected to occur over FY 24-25 along with the preliminary design, with final design and construction taking place FY 25-26.

Beechnut Park is the most in need of enhancing and has been essentially unimproved for many years.

Council appropriated the grant funding for Beechnut Park in a prior year. This project is included in the 5-Year Action Plan of the Parks Master Plan.

Design = $63,500
Construction = $340,500
Contract Project Management = In house, no additional cost 134
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded -$ -$ 50,000$ 550,000$ -$ -$ -$ -$ -$ -$ -$ 600,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ 50,000$ 550,000$ -$ -$ -$ -$ -$ -$ -$ 600,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Foxboro Playground Equipment and Safety Surfacing Replacement Project Playground Equipment and Safety Surfacing Replacement Project.

Replace the playground equipment and safety surfacing
Both the playground equipment and safety surfacing are in poor condition and need to be replaced.

This project is included in the 5-Year Action Plan of the Parks Master Plan.

Design = $25,000
Construction = $550,000
Contract Project Management =$25,000
135
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ 145,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 145,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 145,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 145,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Foxboro Basketball Court Surfacing & Relocate/Replace Hoops Resurface the basketball court and relocate/replace the hoops.

The surfacing is uneven in places and very rough. The hoops do not have the standard setback. This project is included in the 5-Year Action Plan of the Parks Master Plan.

Construction = $135,000
Contract Project Management $10,000
Timeline FY 24-25
136
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves 76,450$ 500,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 576,450$ Community Development Tax Fund -$ 170,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 170,000$ Unfunded -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 76,450$ 670,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 746,450$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Refugio Valley Park Picnic Area & Shade Structure Improvement Project This project will add 2 shade structures over the picnic areas to replace the shade provided by the eucalyptus trees that were removed, renovate the picnic area surfacing and furniture, and provide accessible parking stalls in the parking lot and path of travel to these facilities.

These facilities are in need of a renovation and this project was included in the 5-Year Action Plan of the Parks Master Plan
Final Design & Construction Support = $76,450
Construction = $670,000
Contract Project Management = inhouse, no additional cost 137
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded -$ -$ 55,000$ 270,000$ -$ -$ -$ -$ -$ -$ -$ 325,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ 55,000$ 270,000$ -$ -$ -$ -$ -$ -$ -$ 325,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Refugio Tennis Courts Circulation and Safety Improvement Project This project will renovated the circulation system between the parking lot, practice wall, group picnic area, tennis courts, and Turquoise Avenue including replacing the wood railroad tie stairs, steps, and other connecting features with concrete and provide a marked accessible parking spot and accessible route from the parking lot to the tennis courts and gathering areas.

The safety and accessibility enhancements are needed to fully utilize the site and these improvements were included in the 5-Year Action Plan of the Parks Master Plan.

Design = $35,000
Construction = $270,000
Contract Project Management = $20,000
Funding - Unfunded
Timeline FY 26-27
138
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection General Fund/Capital Reserves -$ -$ -$ 500,000$ -$ -$ -$ -$ -$ -$ -$ 500,000$ Unfunded -$ -$ 170,000$ 225,000$ -$ -$ -$ -$ -$ -$ -$ 395,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ 170,000$ 725,000$ -$ -$ -$ -$ -$ -$ -$ 895,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Dredge Refugio Lake
Dredge Refugio Lake which is filling in the lake with sediment.

If the lake is not dredged soon, it will continue to fill in. This project was listed in the 5-Year Action Plan of the Parks Master Plan.

Preliminary Design, Environmental, Permits = $100,000
Final Design = $50,000
Construction = $675,000
Contract Project Management = $70,000
Timeline Preliminary Design/Permits FY 25-26
Final Design & Construction FY 26-27
139
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded -$ -$ 215,000$ -$ -$ -$ -$ -$ -$ -$ -$ 215,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ 215,000$ -$ -$ -$ -$ -$ -$ -$ -$ 215,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Woodfield Basketball Court Renovation Project
Resurface and restripe courts, replace posts, backboards, hoops.

Surfacing and basketball hoops/posts are in very poor shape and this project is listed in the 5-Year Action Plan of the Parks Master Plan.

Basketball Court Renovation Project
Construction Cost = $200,000
Contract Project Management $15,000
FY 25-26
140
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded -$ -$ -$ 320,000$ -$ -$ -$ -$ -$ -$ -$ 320,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ 320,000$ -$ -$ -$ -$ -$ -$ -$ 320,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Woodfield Tennis Court Renovation Project
Resurface and restripe tennis courts, install new nets, perimeter seating and storage, remove trees in the perimeter lifting the courts. New courts will support tennis and/or pickleball.

Court surfacing and appurtenant facilities are in very poor condition and need of renovation. This project is listed in the 5-Year Action Plan of the Parks Master Plan.

Construction Cost $300,000
Contract Project Management $20,000
FY 26-27
141
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded -$ -$ -$ -$ -$ -$ 465,000$ -$ -$ -$ -$ 465,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ -$ -$ -$ 465,000$ -$ -$ -$ -$ 465,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Woodfield Replace Restroom Project
Replace the existing restroom building with a prefab restroom, similar to Duck Pond Park.

The building and facilities are in extremely poor condition and need of replacement. This project is listed in the 5-Year Action Plan of the Parks Master Plan.

Construction Cost $450,000
Contract Project Management $15,000
FY 29-30
142
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded -$ -$ -$ -$ 55,000$ 273,000$ -$ -$ -$ -$ -$ 328,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ -$ 55,000$ 273,000$ -$ -$ -$ -$ -$ 328,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Woodfield Accessibility Route Project
Install an accessible pathway between the restrooms, fields, courts, playground, picnic areas, and street parking. Relocate and enhance entrance to park, pending on funding availability (not included in budget).

Accessible route connecting existing park features will enhance the park for all-ability users. This project is listed in the 5-Year Action Plan of the Parks Master Plan.

Design = $30,000
Construction Cost = $273,000
Contract Project Management = $25,000
Construction FY27-28
143
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Transportation Impact Fee Fund -$ -$ -$ -$ 240,000$ -$ -$ -$ -$ -$ -$ 240,000$ Unfunded -$ -$ -$ -$ -$ 1,440,000$ -$ -$ -$ -$ -$ 1,440,000$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ -$ 240,000$ 1,440,000$ -$ -$ -$ -$ -$ 1,680,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Sycamore Avenue Bicycle and Pedestrian East-West Connector Project Install multiuse pedestrian/bicycle pathway on the north side of Sycamore and Class II bicycle facilities on the south side under I-80/BNSF RR to connect the east and west sides of the City.

I-80 divides the City and safety enhancements are needed on Sycamore so bicyclists and pedestrians have connectivity to the ease and west sides of the City. This project is listed in the 5-Year Action Plan of the Parks Master Plan.

Design = $160,000
Construction = $1,440,000
Contract Project Management = $80,000
Funding Future Grants
Timeline TBD, dependent upon funding
144
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Unfunded -$ -$ 132,000$ -$ -$ -$ -$ -$ -$ -$ 132,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ -$ -$ 132,000$ -$ -$ -$ -$ -$ -$ -$ 132,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Slurry Seal the Bay Trail
Crack seal and slurry seal the City’s section of the Bay Trail from approximately 1,100 feet south of Railroad Avenue to the northern City limits.

The trail is highly used and needs regular maintenance to ensure the surfacing is safe and usable. This project is listed in the 5-Year Action Plan of the Parks Master Plan.

Project Cost
Construction Cost = $120,000
Contract Project Management = $12,000
FY 26-27
145
Project Number:

Project Name:

Description:

Justification:

Projected Timing:

Estimated Start Date:

Estimated End Date:

Funding Source: Prior Year FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Budget Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection State Gas Tax Fund - 262 -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total -$ 100,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 100,000$ City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Bay Trail Wall Repair
Install a cut-off wall below the Bay Trail wall to prevent soil from migrating under the wall onto the trail. Backfill soil on the private property above the wall.

This work is needed to protect the property above the wall and prevent soil from encroaching onto the Bay Trail.

Project Cost
Construction Cost = $100,000
FY 24-25
146
Project Number:

Project Name:

Description:

Justification:

Phase: Funding Source: Prior FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 Total Budget Carryover Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Projection Env - Reporting & Field
Monitoring Grant Measure J SP -$ 89,000$ 89,000$ 89,000$ -$ -$ -$ -$ -$ -$ -$ 267,000$ Env - Conservation Easement Public Benefit Fee Funds -$ 750,000$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 750,000$ Grant Measure J TLC 130,527$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 130,527$ Grant WCCTAC STMP Funding 604,503$ 150,000$ 150,000$ -$ -$ -$ -$ -$ -$ -$ -$ 904,503$ Grant WCCTAC STMP Funding -$ -$ 800,000$ -$ -$ -$ -$ -$ -$ -$ -$ 800,000$ Grant TIRCP -$ -$ 1,200,000$ 1,200,000$ -$ -$ -$ -$ -$ -$ -$ 2,400,000$ General Fund -$ -$ 670,500$ -$ -$ -$ -$ -$ -$ -$ -$ 670,500$ Unfunded -$ -$ 4,250,000$ 4,250,000$ -$ -$ -$ -$ -$ -$ -$ 8,500,000$ General Fund -$ -$ 2,329,500$ -$ -$ -$ -$ -$ -$ -$ 2,329,500$ Unfunded -$ -$ 24,835,319$ -$ -$ -$ -$ -$ -$ -$ 24,835,319$ Construction Unfunded -$ -$ -$ 30,162,080$ 30,162,080$ 7,540,520$ -$ -$ -$ -$ 67,864,681$ Adjustment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Total 735,030$ 989,000$ 7,159,500$ 32,703,819$ 30,162,080$ 30,162,080$ 7,540,520$ -$ -$ -$ -$ 109,452,030$ ROW/Utility Relocations
City of Hercules
Capital Improvement Plan
Fiscal Years 2024-25 through 2033-34
Hercules - The Hub
Design
Transportation CIP Summary
Environmental mitigation work from previous construction phases is on-going. A funding plan has been created to complete the final design, utility relocations, and construction of the remainder of the Hub. The budget in coming years is dependent upon recieving grants.

The City set aside $3M in the General Fund/Capital Reserves as the City's local contribution. Most recently, the City was successful in securing $2.4M of State TIRCP funds towards final design.

Moving forward, a total of $107.7M is needed to complete the infrastructure for a train stop, of which it is proposed $104.7M be funded with grants.
147

CITY OF HERCULES
Mu
nicipal Financial
Advisory Services
148
General Obligation Bonds vs. Lease Revenue Bonds
149
Credit Sectors
2 150
General Obligation Bonds
3  Overview
 Annual tax levied on property tax roll in proportion to total assessed property values
 2/3rds voter approval or 55% for certain school G.O. bonds (Proposition 39)  Voters approve total bond amount and use of proceeds, not tax rate or annual payment
 Advantages
 Generates new revenue source to repay debt
 Broad-based tax support for public improvements
 Lowest interest cost due to ad valorem security and unlimited tax pledge  Disadvantages
 Time, expense and uncertain outcome of election
 Property tax increase
 When Used?
 Typically for projects with broad political support – varies by community 151
City Bond & Assessed Value History
City of Hercules Historical Assessed Value
Year Total Assessed Value % Change
2014 $2,432,594,373
2015 $2,864,065,832 17.74%
2016 $3,034,936,504 5.97%
2017 $3,279,462,767 8.06%
2018 $3,505,453,844 6.89%
2019 $3,654,869,380 4.26%
2020 $3,873,305,959 5.98%
2021 $4,113,845,828 6.21%
2022 $4,341,814,600 5.54%
2023 $4,506,106,654 3.78%
2024 $4,675,408,790 3.76%
Average 6.82%
Source: Urbics Analytics LLC
 The City’s tax base has grown by 92% since 2014
 The City’s 2023-24 assessed value is approximately $4.7 billion; the average annual AV growth rate is

6.8%
4 152
General Obligation Bond Proceeds
 The City can generate between $27.9 million and $44.0 million  With projected annual assessed value growth of 3.50%, the City of Hercules can g
enerate up to $44.0 million
 At more aggressive growth rates or a longer bond program, the City could generate up t
o $50.0 million
 Depending on tax rate selected and assessed value assumptions, the City can generate s
ignificant proceeds
City of Hercules Bond Proceeds at Varying Tax Rates (1) Tax Rate per Series A Series B Series C Total Bond
$100,000 of A.V. 2025 2027 2029 Proceeds
$19.00 $9,200,000 $8,800,000 $9,900,000 $27,900,000
$25.00 $12,100,000 $11,600,000 $13,000,000 $36,700,000
$30.00 $14,400,000 $14,000,000 $15,600,000 $44,000,000
(1) Assumes AV growth of 3.50% and 30 year bond terms; Preliminary – Subject to change Source: Urban Futures, Inc.
5 153
Lease Revenue Bonds
6  Overview
 Lease-leaseback structure with third-party entity
 Issuer covenants to appropriate annual lease payments from general fund  May be structured as lease revenue bonds or “certificates of participation” (“COPs”)  Not subject to constitutional debt limits
Advantages
 No voter approval required
 Fairly quick financing process
Disadvantages
 Requires leasable essential assets of value ≧ borrowing amount  Competes with other general fund priorities
When Used?
 For projects of general community benefit
 To indirectly leverage a general fund revenue stream  To provide “credit enhancement” for less credit-worthy borrowing or for desired “risk- sharing”
154
City General Fund Obligations
7  The City has two series of Lease Revenue Bonds outstanding  2009 Taxable Lease Revenue Bonds debt service is paid by Bio-Rad  2020 Lease Revenue Refunding Bonds
 Encumbers Civic Center
 Annual debt service approximately $562,000
Series Dated Date O utstanding Par Coupon Range Tax Status Final Maturity Call Date General Fund Obligations
2009 Taxable Lease Revenue Bonds (Bio-Rad)* Jul 2009 $7,930,000 7.00%-8.40% Taxable Jul 2038 Jul 2019 2020 Lease Revenue Refunding Bonds Aug 2020 $5,490,180 2.210% Tax-Exempt Dec 2033 A ny Time H.E.L.P Loan Apr 2005 $1, 363,521 1.500% * Apr 2027 *
R.D.L.P Loan Feb 2007 $3, 750,000 1.500% * Aug 2026 *
Engie Energy Conservation Loan Aug 2020 $4, 000,642 2.710% Tax-Exempt Sep 2040 * Total $22,534,343
*
Lease Payments from Bio-Rad
155
Sales Tax Measure
8  The City of Hercules’ current sales tax rate is 9.25%, and the cap for Contra Costa County is c
urrently 9.75%, which means that the City has remaining capacity of 0.50%.  In 2022, the City received approximately $2 million in Measure B Sales Tax Revenue; using that as a proxy, the City could generate approximately $1 million per 0.25% of additional sales tax.  If voters approve a 0.50% sales tax measure with no sunset, the City could issue 30-year Lease R
evenue Bonds that could generate approximately $30.7 million in total bond proceeds.  Alternatively, the City could allocate half the projected sales tax revenue for debt service (g
enerating approximately $15.2 million in bond proceeds), and the other half (i.e., $1 million/year) could be used for other General Fund purposes.

City of Hercules Bond Proceeds at Varying Tax Rates (1) Additional 2025 2027 2029 Total Bond
Tax Rate Series Series Series Proceeds

0.25% $10,000,000 $5,230,000 -- $15,230,000

0.50% $10,680,000 $10,000,000 $10,000,000 $30,680,000
(1) Assumes sales of taxable goods remains consistent; Preliminary, subject to change.

Source: Urban Futures, Inc.
156
Comparison of Financing Options
9  Given the repayment of GO Bonds is based on the unlimited ad valorem tax, they are a lower cost of financing than Lease Revenue Bonds
 The table below compares the cost of financing a $10 million project with GO Bonds versus Lease Revenue Bonds
Lease Revenue Bonds
General Obligation
Bonds
Par Sold $10,515,000 $10,200,000
Project Fund Deposit $10,000,000 $10,000,000
TIC 4.89% 4.79%
Net Payments $20,041,725 $19,188,542
Avg Ann Payment $679,381 $661,674
Repayment Ratio 1.9x 1.9x
Final Payment Aug 2053 Aug 2053
Notes: TIC = average interest rate for the term of the bonds; Assumes current market rates; A rated LRBs / A+ rated GOBs; 30-year terms
157
14 Regulatory Disclosure
Disclosure of Conflicts of Interest and Legal or Disciplinary Events. Pursuant to Municipal Securities Rulemaking Board (“MSRB”) Rule G-42, on Duties of Non-Solicitor Municipal Advisors, Municipal Advisors are required to make certain written disclosures to clients and potential clients which include, amongst other things, Conflicts of Interest and any Legal or Disciplinary events of Urban Futures, Inc. (“UFI”) and its associated persons.

Conflicts of Interest. Compensation. UFI represents that in connection with the issuance of municipal securities, UFI may receive compensation from an Issuer or Obligated Person for services rendered, which compensation is contingent upon the successful closing of a transaction and/or is based on the size of a transaction. Consistent with the requirements of MSRB Rule G-42, UFI hereby discloses that such contingent and/or transactional compensation may present a potential conflict of interest regarding UFI’s ability to provide unbiased advice to enter into such transaction. This conflict of interest will not impair UFI’s ability to render unbiased and competent advice or to fulfill its fiduciary duty to the Issuer.

It should be noted that other forms of compensation (i.e. hourly or fixed fee based) may also present a potential conflict of interest regarding UFI’s ability to provide advice regarding a municipal security transaction. These other potential conflicts of interest will not impair UFI’s ability to render unbiased and competent advice or to fulfill its fiduciary duty to the Issuer.

Other Municipal Advisor Relationships. UFI serves a wide variety of other clients that may from time to time have interests that could have a direct or indirect impact on the interests of another UFI client. These other clients may, from time to time and depending on the specific circumstances, have competing interests. In acting in the interests of its various clients, UFI could potentially face a conflict of interest arising from these competing client interests. UFI fulfills its regulatory duty and mitigates such conflicts through dealing honestly and with the utmost good faith with its clients.

If UFI becomes aware of any additional potential or actual conflict of interest after this disclosure, UFI will disclose the detailed information in writing to the issuer or obligated person in a timely manner.

Legal or Disciplinary Events. UFI does not have any legal events or disciplinary history on UFI’s Form MA and Form MA-I, which includes information about any criminal actions, regulatory actions, investigations, terminations, judgments, liens, civil judicial actions, customer complaints, arbitrations and civil litigation. The Issuer may electronically access UFI’s most recent Form MA and each most recent Form MA-I filed with the Commission at the following website: www.sec.gov/edgar/searchedgar/companysearch.html.

There have been no material changes to a legal or disciplinary event disclosure on any Form MA or Form MA-I filed with the SEC. If any material legal or regulatory action is brought against UFI, UFI will provide complete disclosure to the Issuer in detail allowing the Issuer to evaluate UFI, its management and personnel.
158
DI

SCUSSION AND/OR ACTION

AGENDA ITEM

4. 22-815
159

STAFF REPORT TO THE CITY COUNCIL
DATE: March 26, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Mike Roberts, Public Works Director/City Engineer SUBJECT: Victoria by the Bay Landscaping and Lighting Assessment District – Implementing Strategy to Balance the Budget and Eliminate the Fund Deficit
RECOMMENDED ACTIONS:

It is recommended that City Council:
a) Receive a report from staff on the follow -up items from the February 2 7, 2024 Council meeting; and
b) Direct staff by minute order to begin preparing documents for a Proposition 218 property owner ballot proceeding to increase assessment rates for the Victoria by the Bay Landscaping and Lighting Assessment commencing Fiscal Year 2024/25 to balance the budget and eliminate the cumulative fund deficit over a 10 -year period, to be considered for approval at a future Council meeting during the regularly scheduled, annual LLAD assessment approval process; and c) Select by minute order the cessation of irri gation and maintenance of the landscaping on residential streets, excepting trees, as the preferred cost -cutting option to balance the budget and eliminate the deficit over a 10-year period, should the Proposition 218 proceedings to increase the assessments not pass , and authorize staff to communicate the same to property owners in advance of said proceedings; and
d) Authorize staff by minute order to include the funding of a Lighting and Landscaping Program Supervisor in the F iscal Year 2024/25 Budget to be considered for approval at a future Council meeting as part of the annual budget adoption process.
22-815
160

BACKGROUND:

The financial status of the Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 (Victoria by the Bay LLAD) was discussed in detail at the February 27, 2024 Council meeting and extensive background information is provided in the staff report from that meeting (Att #1). Council directed staff at that meeting to bring the item back for further discussion on March 26 th and to provide more detailed budget informa tion, including the funding plan for the LLAD Program Supervisor, and to research who would be responsible to maintain the planter strips on residential streets if the City no longer maintains them. This information is provided in the ANALYSIS section below.

ANALYSIS:

Three alternative funding plans for FY 24 -25 for Victoria By The Bay LLAD are detailed below as follows:

I. Maximum CPI (Consumer Price Index) Increase Allowable II. Cost Cutting Measures to Balance the Budget and Eliminate the Fund Deficit in 10 Years
III. Proposition 218 Process to Increase Assessments to Balance the Budget and Eliminate the Fund Deficit in 10 Years.

161

I. Revenue and Expense Projections with Maximum CPI Increase

As shown in Table 1 above, w ith the maximum allowable CPI increase (estimated to be 3%) alone for FY 24-25 and FY 25-26, the annual operating deficit is projected to increase from ($168,539) to ($177,181) and the cumulative fund deficit is anticipated to increase from ($450,000) to ($795,720) by the end of Fiscal Year 2025-26.

The financial structural deficit Victoria by the Bay LLAD is experiencing was first detected during the annual rate setting process, confirmed to not be self -correcting over a 5-year financial projection that was completed in May 2023, and an indepe ndent 3rd party audit completed in October 2023 determined that the District was being administered properly.

The funding shortfall is attributed to the increase in water cost, which has double d over the past decade, more extreme weather necessitating add itional landscaping irrigation, and the maturation of the approximately 4,500 trees in the District which now require frequent pruning using a tree trimming company versus a landscaping company.

REVENUES FY 2024-25 FY 2025-26
Assessments $508,538 $523,794
Estimated Assessment Revenue due to Authorized CPI $15,256 $15,714 General Benefit Contribution $13,016 $13,495
TOTAL REVENUES: $536,810 $553,003

ESTIMATED EXPENDITURES
Personnel $107,500 $110,725
Transfer for Arterials/Major Roads L&L Maintenance $29,529 $30,415 Landscaping, Open Space, and Associated Repairs $195,000 $200,850 Tree Trimming $25,000 $25,750
Electricity and Streetlight Repairs $50,000 $51,500
Landscape and Facilities Water $229,967 $241,465
Assessment Engineering Cost $5,000 $5,000
Incidental / Direct Admin Cost $37,500 $38,625
County Fees $853 $853
TOTAL ANNUAL EXPENDITURES: $680,349 $705,184

CAPITAL IMPROVEMENT PROJECTS (CIP)
Miscellaneous Capital Improvement Projects including Tree Mitigation $25,000 $25,000 TOTAL CIP EXPENDITURES: $25,000 $25,000

TOTAL EXPENDITURES
TOTAL ANNUAL AND CIP EXPENDITURES: $705,349 $730,184

FUND BALANCE INFORMATION
Beginning Balance - Projected July 1, 2024 ($450,000) ($618,539) FY 2024-25 Reserve Collection Increase/(Decrease) ($168,539) ($177,181) Ending Balance - Projected June 30, 2025 ($618,539) ($795,720) Available Operating Reserves ($618,539) ($795,720)
Available Capital Reserves $0 $0
LANDSCAPING AND LIGHTING DISTRICT NO. 2002-1
(VICTORIA BY THE BAY)
TABLE 1 - INCOME AND EXPENSE PROJECTIONS WITH ANTICIPATED CPI INCREASES 162

As can be determined from Table 1, a total of approximately $213,500 in cost will need to be cut from the Victoria by the Bay LLAD budget to eliminate the projected annual operating deficit ($168,539) and the cumulative fund deficit over 10 years ($45,000) beginning with Fiscal Year 2024-25.

II. Funding Plan for Cost Cutting Measures

As discussed in Section I and illustrated in Table 2 above, a total of approximately $213,500 in cost will need to be cut from the Victoria by the Bay LLAD budget to eliminate the annual operating deficit ($168,539) and the cumulative fund deficit over 10 years ($45,000/year) beginning with Fiscal Year 2024 -25. Cost cutting options which were discussed at the February 27th Council meeting are summarized below.

REVENUES FY 2024-25 FY 2025-26
Assessments $523,794 $539,508
General Benefit Contribution $13,016 $13,495
TOTAL REVENUES: $536,810 $553,003

ESTIMATED EXPENDITURES
Personnel $107,500 $110,725
Transfer for Arterials/Major Roads L&L Maintenance* $29,529 $30,415 Landscaping, Open Space, and Associated Repairs $195,000 $200,850 Cost Savings Attributed to Reduced Landscape Services ($97,985) ($100,924) Tree Trimming $25,000 $25,750
Electricity and Streetlight Repairs $50,000 $51,500
Landscape and Facilities Water $229,967 $241,465
Cost Savings Attributed to Reduced Watering ($115,555) ($121,333) Assessment Engineering Cost $5,000 $5,000
Incidental / Direct Admin Cost $37,500 $38,625
County Fees $853 $853
TOTAL ANNUAL EXPENDITURES: $466,809 $482,926

CAPITAL IMPROVEMENT PROJECTS (CIP)
Miscellaneous Capital Improvement Projects including Tree Mitigation $25,000 $25,000 TOTAL CIP EXPENDITURES: $25,000 $25,000

TOTAL EXPENDITURES
TOTAL ANNUAL AND CIP EXPENDITURES: $491,809 $507,926

FUND BALANCE INFORMATION
Beginning Balance - Projected July 1, 2024 ($450,000) ($404,999) FY 2024-25 Reserve Collection Increase/(Decrease) $45,001 $45,077 Ending Balance - Projected June 30, 2025 ($404,999) ($359,922) Available Operating Reserves ($404,999) ($359,922)
Available Capital Reserves $0 $0
LANDSCAPING AND LIGHTING DISTRICT NO. 2002-1
(VICTORIA BY THE BAY)
TABLE 2 - INCOME AND EXPENSE PROJECTIONS WITH COST CUTTING MEASURES 163

SUMMARY OF COST CUTTING MEASURES FOR ELIMINATING THE

VICTORIA BY THE BAY LLAD O&M AND FUND DEFICITS

Of the available cost cutting options, eliminating irrigation and maintenance of the planter strips (excepting the trees) on residential streets achieves the necessary savings (estimated to be approximately $260,874). Additionally, each property owner could elect to extend the irrigation and maintenance of their lawn to the planter strip so that it continues to be maintained. Alternatively, Homeowners Associations (HOAs) could maintain the planter strips throughout th e neighborhood for consistency purposes , as occurs with the Bayside LLAD. Due to potential liability, the City would continue to maintain the trees in the planter strips. A review of City files relating to the development indicate that the City is respo nsible for maintaining planter strips in this area, so that maintenance by the HOA or adjacent property owners of the turf and landscaping would be elective and on a voluntary basis. It should be noted that the Development Agreement at Section 4.5 requires the developer and its successors to cooperate with the City to

Victoria by the Bay LLAD
Expenditure Descriptions
Cost Cutting
Measures
Potential
Savings
Arbor Park Eliminate Irrigation and Maintenance $37,512 Victoria Park Eliminate Irrigation and Maintenance $48,834 Collector Streets Eliminate Irrigation and Maintenance $77,748 Residential Streets Eliminate Irrigation and Maintenance $260,874 Streetlighting Electricity & Maintenance De-energize and no longer maintain 245 streetlights $50,000 Tree Maintenance and Capital Improvement Projects Eliminate tree maintenance and periodic replacement for 5,000 trees $50,000 Transfer for Arterials/Major Roads L&L Maintenance Contribution to landscaping and lighting along City Arterials/Major Roads $29,529 164

make changes to the LLAD reasonably necessary to provide for the long term operation and maintenance of the landscaped areas of the Project Site.

III. Funding Plan for Proposition 218 Assessment Increases

As shown in Table 3, two $150/year assessment increases would be needed to eliminate the annual operating deficit and the cumulative fund deficit over 10 years beginning with Fiscal Year 2024 -25. Under this plan, no cost -cutting measures would be needed.

However, in accordance with Proposition 218, property owners would have to vote in the increase. A similar effort occurred last fall, and property owners did not approve the proposed increase by a 77% to 23% margin. Staff is recommending proceeding again with a Proposition 218 process to raise assessments this Spring while communicating that due to funding shortfalls the City will no longer maintain the planter strips on residential streets if property owners do not approve the increase.

REVENUES FY 2024-25 FY 2025-26
Assessments $523,794 $650,346
Proposition 218 Assessment Increases (Two $150/Year Increases) $126,553 $126,553 General Benefit Contribution $13,016 $13,495
TOTAL REVENUES: $663,363 $790,394

ESTIMATED EXPENDITURES
Personnel $107,500 $110,725
Transfer for Arterials/Major Roads L&L Maintenance* $29,529 $30,415 Landscaping, Open Space, and Associated Repairs $195,000 $200,850 Tree Trimming $25,000 $25,750
Electricity and Streetlight Repairs $50,000 $51,500
Landscape and Facilities Water $229,967 $241,465
Assessment Engineering Cost $5,000 $5,000
Incidental / Direct Admin Cost $37,500 $38,625
County Fees $853 $853
TOTAL ANNUAL EXPENDITURES: $680,349 $705,184

CAPITAL IMPROVEMENT PROJECTS (CIP)
Miscellaneous Capital Improvement Projects including Tree Mitigation $25,000 $25,000 TOTAL CIP EXPENDITURES: $25,000 $25,000

TOTAL EXPENDITURES
TOTAL ANNUAL AND CIP EXPENDITURES: $705,349 $730,184

FUND BALANCE INFORMATION
Beginning Balance - Projected July 1, 2024 ($450,000) ($491,987) FY 2024-25 Reserve Collection Increase/(Decrease) ($41,987) $60,211 Ending Balance - Projected June 30, 2025 ($491,987) ($431,776) Available Operating Reserves ($491,987) ($431,776)
Available Capital Reserves $0 $0
LANDSCAPING AND LIGHTING DISTRICT NO. 2002-1
(VICTORIA BY THE BAY)
TABLE 3 - INCOME AND EXPENSE PROJECTIONS WITH PROP. 218 ASSESSMENT INCREASES 165

The schedule for the Victoria by the Bay LLAD Proposition 218 proceedings that could be conducted this Spring, which would run concurrently with the annual rate setting process for the other 4 Districts, is as follows:

March 26, 2024: City Council approves strategy to Balance the Budget and Authorizes Victoria by the Bay LLAD Proposition 218 proceedings.

April 9, 2024: City Council adopts Resolution of Initiation.

April 23, 2024: City Council preliminarily approves Victoria by the Bay LLAD Engineer’s Report and proposed assessments and adopts Resolution of Intention.

No Later than May 10, 2024: Mail required Proposition 218 notices and ballots to Victoria by the Bay LLAD property owners (must occur a minimum of 45 days prior to public hearing).

June 25, 2024: City Council conducts public hearing, closes balloting period, conducts ballot tabulati on, declares results of ballot tabulation, and approves final Engineer’s Report and increased assessments, assuming favorable results, commencing FY 2024/25.

Funding Plan for LLAD Program Supervisor
Staff is recommending funding an LLAD Program Supervisor position, primarily to provide better customer service to residents and higher-level oversight of the landscaping and tree trimming contracts. All 5 LLAD s would fund the position as follows: 40% Citywide Parks (LLAD 83-2, Zone 10), 50% based upon pro-rata annual Operating & Maintenance Budgets for each of the Districts, and similarly 10% based upon pro-rata streetlight count.

The $28,967 cost for the LLAD Program Supervisor position for Victoria by the Bay will be completely offset as the current staffing performing this function would be reassigned LLAD
Description
Estimated
FY 2024-25
O&M Costs
(Minus Streetlights)
Streetlight
Count
% of
LLAD Program
Supervisor Costs
Share of
LLAD Program
Supervisor Costs
LLAD No. 2002-1 (VBTB) $625,382 245 16.46% $28,966.77
LLAD No. 2002-2 (Promenade) $219,672 167 6.20% $10,912.22 LLAD No. 2004-1 (Baywood) $156,180 37 3.99% $7,013.68
LLAD No. 2005-1 (Bayside) $142,836 158 4.29% $7,545.53
Zone 1 (Hercules by the Bay) $64,809 128 2.24% $3,936.61 Zone 2 (Foxboro) $48,139 42 1.39% $2,440.53
Zone 3&4 (Gems and Birds) $66,970 143 2.37% $4,165.64
Zone 5A (Business Park) $84,521 39 2.25% $3,968.51
Zone 5B (Commercial) $28,723 2 0.71% $1,246.13
Zone 5C (Miscellaneous Parcels) $24,619 4 0.62% $1,088.90 Zone 6 (Village Parkway) $53,500 58 1.60% $2,815.45
Zone 7 (Heights) $59,572 163 2.29% $4,031.58
Zone 8 (Trees and Flowers) $115,189 290 4.30% $7,566.10 Zone 9 (Birds and Country Run) $56,501 153 2.16% $3,809.19 Zone 10 (Citywide Parks) $1,196,439 0 40.00% $70,400.00 Citywide Arterials $311,884 303 9.14% $16,093.17
Total: $3,254,934 1,932 100.00% $176,000.00
166

to other duties. Enhanced oversight and customer service will be gained through operational efficiency by having one person assigned to this function instead of multiple people that have other priorities related to buildings, sewer, and streets. The overall impact of this position, should Council wish to proceed, would be presented as part of the annual budget.

FISCAL IMPACT:

If City Council directs staff to conduct Proposition 218 proceeding s and Victoria by the Bay LLAD property owners approve the proposed two-step assessment increase, the City will be able to generate additional annual revenues in FY 2024/25 and FY 2025/26 to eliminate the current annual operating deficit , begin restoring reserves, and provide a contribution toward funding the new LLAD Program Supervisor position.

If Victoria by the Bay LLAD assessment revenues are not increased and City Council directs staff to reduce approximately $21 3,500 in services beginning in FY 2024/25, the operating budget will be balanced, and the fund deficit will be eliminated over a 10-year period.

If no action is taken, the Victoria by the Bay LLAD cumulative fund deficit of $450 k will continue to increase exponentially each year with a pr ojected cumulative fund deficit approaching $800k by the end of Fiscal Year 2025 -26 as shown in Table 1 of this staff report.

ATTACHMENTS:

1. February 27, 2024 Staff Report
167

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of February 27, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Mike Roberts, Public Works Director/City Engineer SUBJECT: Victoria by the Bay Landscaping and Lighting Assessment District – Adopt a Resolution Declaring the Results of the Property Owner Protest Ballot Proceedings and Discuss Options to Balance the Budget and Eliminate the Fund Deficit
RECOMMENDED ACTIONS:

It is recommended that City Council:
a) Adopt a resolution declaring the results of the property owner protest ballot tabulation conducted on December 5, 2023 regarding a proposed increase in the maximum assessment for the Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 (Victoria by the Bay LLAD) commencing F iscal Year (FY) 2024/25; and
b) Receive a staff report, discuss options to balance the budget and eliminate the fund deficit for the Victoria by the Bay LLAD, and provide direction to staff on the next steps to take.

EXECUTIVE SUMMARY:

Victoria by the Bay LLAD is experiencing a funding shortfall , which is currently being covered by a de facto loan from the General Fund. A 5-year financial projection completed in May 2023 and an independent evaluation in October 2023 confirmed the shortfall would not be self-correcting. On October 19, 2023, notices and ballots were mailed to Victoria by the Bay LLAD property owners, in accordance with Proposition 218, to approve a two- step $150 per year assessment increase for a total annual increase of $300. Results from the ballot tabulation conducted on December 5, 2023 confirmed property owners did not approve the proposed increase to their Victoria by the Bay LLAD assessments by a 77% to 23% margin.

168
Given all five of the City of Hercules (City) Landscaping and Lighting Assessment Districts (LLADs) have been self-funded through property assessments, balanc ing the operating budget and eliminat ing the fund deficit for the Victoria LLAD would require either increasing assessment revenues or cutting cost by reducing levels of service. Increasing assessments requires the City to obtain approval from property owners through Proposition 218 proceedings.

Alternatively, the primary cost cutting options that could be operationally implemented and not unduly raise liability for the City would be to discontinue irrigation and regular maintenance of specified landscaped areas such that the required savings are achieved.

These potential landscaping areas include:

 Arbor Park
 Victoria Park
 Collector Streets (Craftsman Drive, Victoria Crescent East, Victoria Crescent West)  Residential Streets (planter strips between curb and sidewalk in front of homes)

Given the potential negative impacts of reducing levels of service o n neighborhood attractiveness and property values, staff is recommending cost cutting measures be identified at this meeting and then communicated to property owners as part of another Proposition 218 balloting proceeding that could be conducted this spring concurrently with the typical annual LLAD approval process for FY 2024/25. That way , prior to returning their ballot, Victoria by the Bay LLAD property owners will be informed of the specific cost- cutting measures that will be implemented in their neighborhood if the proposed assessment increase is not approved.

BACKGROUND:

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

The boundaries of the Victoria by the Bay LLAD encompass the residential areas adjacent to San Pablo Avenue located at the northernmost point of the City. The Victoria by the Bay LLAD provides for well -maintained, attractive landscaping and LED streetlighting located along the neighborhood streets, Arbor Park, and Victoria Park, as well as its share of funding for the maintenance of the landscape and streetlighting improvements associated with the City’s arterial roadways.

5-year financial projections presented to C ity Council on May 23, 2023 showed that the operating budget for the Victoria by the Bay LLAD is experiencing an annual operating deficit primarily due to the need for higher-level tree pruning work, the need for increased irrigation watering due to climat e change, and East Bay Municipal Utility District water rate increases which have far exceeded the maximum allowable increase to the annual 169
LLAD assessments. City Council directed staff to evaluate options to address the annual operating deficit and cumulative fund deficit prior to the start of FY 2024/25.

City staff conducted a virtual community meeting on September 19, 2023 with the Victoria by the Bay LLAD property owners , which included informing them of the funding challenges the Victoria by the Bay LLAD is experiencing as well as actively listening to their concerns and providing responses when appropriate.

With City Council’s authorization, City staff also secured the services of Bakertilly, a management consulting firm, to comprehensively evaluate the means and methods by which the City is currently delivering services for the Victoria by the Bay LLAD. The consultant from Bakertilly presented findings and recommendations from their evaluation at the October 3, 2023 City Council meeting. The primary recommendation of the Bakertilly evaluation was that the City initiate proceedings pursuant to Proposition 218 for the Victoria by the Bay LLAD to obtain property owner approval to increase assessments with the objective of eliminating the current annual operating deficit, fund deficit including associated loan from the General Fund, and eventually restoring reserves.

At the October 10, 2023 City Council meeting, City Council authorized staff to conduct Proposition 218 property owner ballot proceedings to increase the maximum rates for the Victoria by the Bay LLAD, prelimina rily approved the Victoria by the Bay Engineer’s Report and proposed assessments, and adopt ed the Resolution s of Initiation and Intention. On October 19, 2023, notices and ballots were mailed to all affected property owners in the Victoria by the Bay LLAD , in accordance with Proposition 218, with instructions that ballots must be returned by mail by 5:00 PM on December 5, 2023, or in person b y the c onclusion of public testimony of the Public Hearing to be held at the December 5, 2023 City Council meeting.

City staff conducted another virtual community meeting on November 16, 2023 with the property owners of the Victoria by the Bay LLAD to provide details on the upcoming December 5th Public Hearing, information regarding the proposed assessment increase, and procedures for property owners to submit their ballot. Of the 794 ballots mailed, 300 were returned.

On December 5, 2023, returned ballots were publicly tabulated outside City Council Chambers immediately following the conclusion of public testimony. Property owners for the Victoria by the Bay LLAD opposed increasing their maximum assessment rates 77% to 23%.

The table below outlines the amount needed to balance the current budget and eliminate the fund deficit over a 10-year period for the Victoria by the Bay LLAD.

170
Estimated Assessment Revenue needed to cover O&M and Eliminate fund Deficit1: $737,000 Estimated FY 2024/25 Assessment Revenue under Current Assessments2: $523,800 Amount Needed to Balance the Budget and Eliminate the Fund Deficit: $213,200

1 Per Estimate of Cost shown on page 8 of Engineer’s Report dated December 5, 2023 with minor modifications.
2The actual maximum authorized assessment for FY 2024/25 will be known in mid -March when the applicable Consumer Price Index is published by the Bureau of Labor and Statistics.

ANALYSIS:

The Victoria by the Bay LLAD structural financial deficit can be cured by either increasing revenue or decreasing expenditures.

I. Eliminating Structural Financial Deficit by Cutting Cost (i.e. Reducing Levels of Service)
City Council could direct staff to implement reductions in levels of services that cut costs approximately $213,200 per year beginning in FY 2024/25, which is the amount needed to balance the operating budget and eliminate the fund deficit over a 10 -year period.

Planning level estimates of cost cutting options that can be operationally implemented are summarized in Exhibit 1 and described in the narrative below. A map depicting the location of improvements maintained for Victoria by the Bay LLAD is also included in Exhibit 1.

171
EXHIBIT 1

SUMMARY OF COST CUTTING MEASURES FOR ELIMINATING THE

VICTORIA BY THE BAY LLAD O&M AND FUND DEFICITS

Victoria by the Bay LLAD
Expenditure Descriptions
Cost Cutting
Measures
Potential
Savings
Arbor Park Eliminate Irrigation and Maintenance $37,512 Victoria Park Eliminate Irrigation and Maintenance $48,834 Collector Streets Eliminate Irrigation and Maintenance $77,748 Residential Streets Eliminate Irrigation and Maintenance $260,874 Streetlighting Electricity & Maintenance De-energize and no longer maintain 245 streetlights $50,000 Tree Maintenance and Capital Improvement Projects Eliminate tree maintenance and periodic replacement for 5,000 trees $50,000 Transfer for Arterials/Major Roads L&L Maintenance Contribution to landscaping and lighting along City Arterials/Major Roads $29,529 LLAD Program Leader Recommended by City staff to administer the LLAD program (A cost, not savings) ($32,890) 172

Arbor Park
Eliminating irrigation and maintenance is estimated to save approximately $ 37,512 annually. However, this action will result in the deterioration of non-tree landscaping, such as turf and shrubs, especially in the less visible upper half of the park. Restoration of the park in the future would be challenging due to funding constraints and the cost associated with re-establishing the landscaping.

Victoria Park
Eliminating irrigation and maintenance is estimated to save approximately $ 48,834 annually. However, this will result in the deterioration of non-tree landscaping, such as turf and shrubs in the park, which serves as a focal point and is highly visible, potentially impacting property values. Restoration of the park in the future would be challenging due to funding constraints and the cost associated with re-establishing the landscaping.

Collector Streets
Eliminating irrigation and maintenance is estimated to save approximately $ 77,748 annually. However, this would result in the deterioration of non-tree landscaping, such as turf and shrubs. While there are no homes directly fronting the collector streets, collector streets are driven to access residential streets so the visual impact would be significant .

Restoration of landscaping on collector streets in the future would be challenging due to funding constraints and the cost associated with re-establishing the landscaping.

Residential Streets
Eliminating irrigation and maintenance in the planter streets is estimated to save up to $260,874 annually. In consulting with a licensed arborist, the trees in the planter strip would be likely to survive, but some may die, so funding would need to be allocated every year to remove and potentially replace them. The turf in the planter strips are very durable, but consume enormous amounts of water. Past recommendations include replacing the turf with hardscape and/or drought tolerant landscaping. Property owners could elect to expand the watering and maintenance of the turf in their front yards to the planter strip or the Victoria Bay the Bay Homeowners Association (HOA) could take over the maintenance. If instead the turf dies, it could be the first step towards replacing the planter strips with drought tolerant landscaping or hardscape.

The Alexandria at Victoria development (Gardenia Loop) has drought tolerant landscaping instead of turf, but no hardscape which reduces water usage but requires much more intensive maintenance. In a similar manner, the adjacent property owner could maintain and irrigate the landscaping in the planter strip in front of their home or it could be performed by the HOA.

Streetlighting
De-energizing and no longer maintaining the 245 streetlights located throughout the neighborhood could save up to $50,000 annually. While streetlights play an important role in enhancing the safety of all street users and serve as a deterrent against crime, it's worth noting that some communities choose not to have them. Working with PG&E to de-energize the lights would likely take months, negatively impacting the initial savings. 173

Tree Maintenance and Capital Improvement Projects
Eliminating tree maintenance for the 5,000 trees in the Victoria by the Bay LLAD is estimated to save approximately $25,000 annually. However, neglecting maintenance would lead to risks such as falling limbs, obscured stop signs, damage to homes, and hazards for pedestrians due to low -hanging branches. For this reason, this cost cutting option is not recommended. If water is turned off and trees are not irrigated, an additional $25,000 would be needed annually to replace dead trees which otherwise could be accumulated for necessary capital replacement projects.

Transfer for Arterials/Major Roads
Each of the City’s five LLADs contribute to landscaping and lighting located along the City’s Arterials/Major Roads. Eliminating Victoria by the Bay LLAD’s funding contribution is estimated to save approximately $29,529 annually but would leave this program underfunded.

Addition of LLAD Program Leader
Staff is recommending the addition of a LLAD Program Leader position. VBB proportional cost to fund the position would be $ 32,890. The LLAD Program Leader position would be dedicated to and responsible for administering the City’s LLA Ds, including all of the public parks. Its highest priorities would be working with community members to resolve issues and providing quality assurance/quality control on the landscape maintenance contracts. Duties would include field inspection, monitor ing water usage, overseeing extra work beyond the base landscaping contract, processing progress payments, monitoring the district budgets, performing streetlight audits, overseeing streetlight contract work , tree pruning work, and sidewalk repair due to damage from tree roots. Currently there is insufficient staffing to adequately perform these duties, which are spread across different positions, which creates inefficiencies and coordination challenges. All five of the City’s LLADs would contribute their fair share of cost to funding this position, which would be based upon the proportional benefit they receive. If there is an interest in funding this position, staff would determine the potential savings from other City personnel costs for duties this position would supplant.

II. Eliminating Structural Financial Deficit by Increasing Revenue The other option to cure Victoria By The Bay’s structural financial deficit would be to increase revenue by raising property assessments. This would require Propositio n 218 proceedings (i.e. property owner approval). The currently authorized Victoria by the Bay LLAD maximum annual assessment is estimated to be ~$620 per single-family home for FY 2024/25. The actual maximum annual assessment for FY 2024/25 will be known in mid-March when the applicable Consumer Price Index (CPI) is published by the Bureau of Labor and Statistics. If City Council directs staff to conduct Proposition 218 prop erty owner ballot proceedings , staff recommends proposing the maximum assessment be increased by a total of $300 through a two -step fixed increase, which could be implemented in FY 2024/25 and FY 2025/26 if approved by property owners. Therefore , the Victoria by the Bay LLAD maximum annual assessment for each single -family home would increase by $150 (or $12.50 per month) from ~$620 to $770 for FY 2024/25 and 174

would increase again by $150 from ~$770 to $9 20 for FY 2025/26. The total $300 proposed annual assessment increase through FY 2025/26 would be utilized as follows:

Eliminate Current Annual Operating Deficit: $209.00 Eliminate Cumulative Fund Deficit over 10-year period: $53.00 LLAD Program Leader Position*: $38.00
Total annual VBTB LLAD assessment increase through FY 2025/26: $300.00 *Staff recommendation discussed in detail above.

The tentative schedule for the Victoria by the Bay LLAD Proposition 218 proceedings that could be conducted this spring is as follows:

March 12, 2024: City Council adopts Resolution of Initiation and authorizes Proposition 218 proceedings.

April 9, 2024: City Council preliminarily appr oves Victoria by the Bay LLAD Engineer’s Report and proposed assessments and adopts Resolution of Intention.

April 26, 2024: Mail required Proposition 218 notices and ballots to Victoria by the Bay LLAD property owners (must occur a minimum of 45 days prior to public hearing).

June 11, 2024: City Council conduct s public hearing, close s balloting period, conduct s ballot tabulation, declare s results of ballot tabulation, and approve s final Engineer’s Report and increased assessments, assuming favorable results, commencing FY 2024/25.

Given the potential negative impacts of reducing levels of service on neighborhood attractiveness and property values, staff is recommending the identifi ed cost cutting measures be communicated to property owners as part of another Proposition 218 balloting proc eeding that could be conducted this spring concurrently with the typical annual LLAD approval process for FY 2024/25. That way, prior to returning their ballot, Victoria by the Bay LLAD property owners will be informed of the specific cost -cutting measures that will be implemented in their neighborhood if the proposed assessment increase is not approved.

III. Other Significant District Costs

City Personnel
Currently 0.78 of a full-time equivalent (FTE) is allocated to the Victoria by the Bay LLAD at a cost to the District of $108,000. This includes labor for Maintenance Workers, Public Works Superintendent, Specialist/Inspector, Permit Technician, and City Clerk.

Examples of city personnel activities include overseeing the landscape maintenance contract, bidding out and overseeing annual street tree maintenance, delivering capital improvement projects, maintaining the streetlights, invoicing, resp onding to citizen complaints, picking up litter, emptying trash cans, and graffiti abatement. If significant reductions in levels of service were to be implemented, the allocation for City staffing would be adjusted to reflect the reduced level of effort.

175

City Overhead Cost Allocation
The City’s overhead costs for Victoria By The Bay LLAD is $37,000 per the adopted Cost Overhead Allocation formula and account for the time of the Public Works Director, City Manager, administrative staff, and use of office facilities, information technology, and vehicles. If significant reductions in levels of service were to be implemented , the allocation for City staffing would be adjusted to reflect the reduced level of effort.

FISCAL IMPACT:

If City Council directs staff to conduct Proposition 218 proceedings and Victoria by the Bay LLAD property owners approve the proposed two-step assessment increase, the City will be able to generate additional annual revenues in FY 2024/25 and FY 2025/26 to eliminate the current annual operating deficit , begin restoring reserves, and provide a contribution toward funding the new LLAD Program Leader position.

If Victoria by the Bay LLAD assessment revenues are not increased and City Council directs staff to reduce approximately $213,200 in services beginning in FY 2024/25, the operating budget will be balanced and the fund deficit will be eliminated over a 10-year period.

If no action is taken, the Victoria By The Bay LLAD fund deficit amount of $450 k will continue to increase each year by approximately $213,200.

ATTACHMENTS:

I. Resolution Declaring the Results of the Property Owner Protest Balloting Proceedings for Victoria by the Bay LLAD conducted on December 5, 2023.

176