Agenda Packet — Hercules City Council, June 11, 2024

IMPORTANT NOTICE ABOUT PUBLIC COMMENTS AND MEETING

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

How to Participate:

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

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

Zoom Webinar ID: 813 5048 0559 Zoom Passcode: 094162
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, June 11, 2024
6:00 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
CLOSED SESSION - 6:00 P.M., REGULAR MEETING - 7:00 P.M.

In Council Chambers or to Watch only: Zoom ID: 813 5048 0559 Passcode: 094162 Phone: 1-669-900-6833 (Joint Meeting of the Hercules City Council and Hercules Public Financing Authority) 2 June 11, 2024City Council Meeting Agenda
See last pages of agenda for information regarding meeting procedures To view webcast of meetings, live or on demand, go to the City's website at www.ci.hercules.ca.us I. CLOSED SESSION – CALL TO ORDER - ROLL CALL - 6:00 P.M.

II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
III. CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:

1. 22-887 CONFERENCE WITH LEGAL COUNSEL - POTENTIAL LITIGATION - Pursuant to Government Code Section 54956.9(e)(1): Regarding The Housing Successor Agency.

2. 22-886 Pursuant to Government Code Section 54957.6 Conference With Labor Negotiators - City Negotiators: Dante Hall, City Manager; Edwin Gato, Director of Finance; relative to the following employee groups:
a. Teamsters Local 315 Employee Organizations
b. Hercules Police Officers Association
c. Hercules Senior Manager Employee Group
d. Confidential Unrepresented Employee Group
e. Mid Management Employee Group
IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

V. REPORT ON ACTION TAKEN IN CLOSED SESSION
VI. PLEDGE OF ALLEGIANCE
VII. MOMENT OF SILENCE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 22-881
Pride Month Proclamation
Pride Month ProclamationAttachments:

2. 22-882 Juneteenth Proclamation
Juneteenth ProclamationAttachments:

IX. AGENDA ADDITIONS/DELETIONS

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3 June 11, 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. 22-883
Public Hearing on Proposed FY 2024-25 City of Hercules Annual Budget Plan including the First Year of the Ten-Year 2025-2034 Capital Improvement Plan (CIP) Budget
RECOMMENDATION:

Open
the Continued Public Hearing, receive a Staff Report, Take Public Testimony, Close the Public Hearing, and Adopt the following resolutions (Attachments 1-3):

1. Approving the FY 2024-25 City of Hercules Budget Plan which includes the First Year (2024-25 Fiscal Year) of the Ten-Year (2025-2034 Fiscal Years) Capital Improvement Plan (CIP) Budget and making certain designations and fund balance adjustments, approving annual contracts for services in a total amount of $4,618,056.

2. Approving the FY 2024-25 Hercules Public Financing Authority Budget Plan Consisting of Debt Service in the amount of $2,023,238.

3. Establishing the Appropriations Limit for the FY 2024-25 in accordance with Proposition 111 and Article XIII B.

Staff Report - Budget Public Hearing & Adoption
Attach 1 - Resolution City Budget FY 2024-25
Attach 2 - Resolution PFA FY 2024-25
Attach 3 - Resolution GANN Limit FY 2024-25
Attach 3A - GANN Limit Calculation
Attach 4 - FY 2024-25 Hercules Annual Budget Book
Attachments:

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4 June 11, 2024City Council Meeting Agenda
XII. CONSENT CALENDAR

1. 22-860 Meeting Minutes for the Regular Meeting of May 14, 2024 Meeting Minutes for the Regular Meeting of May 14, 2024Attachments:

2. 22-876 Meeting Minutes for the Regular Meeting of May 28, 2024 Meeting Minutes for the Regular Meeting of May 28, 2024Attachments:

3. 22-878 Accept the Investment Report for the Quarter Ending September 30, 2023
RECOMMENDATION:

Accept the Investment Report for the Quarter Ending September 30, 2023 Staff Report - Investment Quarterly Report Ending 9-30-2023 Attach 1 - Quarterly Investment Report
Attachments:

4. 22-879 Accept the Investment Report for the Quarter Ending December 31, 2023
RECOMMENDATION:

Accept the Investment Report for the Quarter Ending December 31, 2023 Staff Report - Investment Quarterly Report Ending 12-31-2023 Attach 1 - Quarterly Investment Report 12312023
Attachments:

5. 22-880 Annual Approval of the City of Hercules Investment Policy RECOMMENDATION:

Review and approve the City of Hercules Investment Policy.

Staff Report - Investment Policy Annual Review
Attach 1 - Investment Policy
Attachments:

6. 22-885 Acceptance of the Willow/Palm Sidewalk Connector Project RECOMMENDATION:

Adopt a resolution accepting the Willow/Palm Sidewalk Connector Project contract with R&S Construction Management as complete for a total amount of $1,604,303 and authorizing the filing of the Notice of Completion with the Contra Costa County Recorder’s Office.

Staff Report - Willow Palm Sidewalk Project Acceptance
Attach 1 - Resolution Willow-Palm Sidewalk Connection Project Acceptance Attach 2 - Notice of Completion
Attach 3 - Project Location Map - Willow-Palm
Attachments:

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5 June 11, 2024City Council Meeting Agenda
XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-884 Remote Public Participation Update
RECOMMENDATION:

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

Staff Report - Remote Participation Update
Attach 1 - 5.28.24 Staff Report - Remote Participation Update Attach 2 - Remote Participation Survey of Local Agencies - Updated 5-22-2024 Attach 3 - 2.13.24 Staff Report - Remote Participation Attach 4- Remote Participation Survey of Local Agencies Attachments:

2. 22-870 FY 23-24 Co-sponsored Special Events Update and Proposed Co-Sponsored Special Events for FY 24-25
RECOMMENDATION:

Staff recommends that the City Council:

1. Receive an update on special events co-sponsored by the City and the Bay Front Chamber of Commerce during the FY 23-24

2. Authorize four City-Chamber co-sponsored special events for FY 24-25

3. Consider authorizing a fifth co-sponsored special event (Lunar New Year Celebration) and allocating an additional $10,000 for this purpose Staff Report - FY 23-24 Special Events Update
Attach 1 - FY 23-24 Co-Sponsored Special Event Update Detail Attachments:

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

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

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

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

1. Regional Committee

2. City Council Committees and Subcommittees

3. Commission Liaisons

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6 June 11, 2024City Council Meeting Agenda
XVI. ADJOURNMENT
The next Regular Meeting of the City Council will be held on Tuesday, June 25, 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: June 6, 2024)

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

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

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7 June 11, 2024City Council Meeting Agenda
How to Submit Public Comments
In Person: Attend meeting at the Hercules City Council Chambers, fill out a public speaker card located on the side table and submit it to the City Clerk.

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

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

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

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

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

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

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

Video Streamed Live on the City’s Website:

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

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

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

2. Locate the desired meeting and date.

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

Video = Video is available for on demand viewing.

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

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

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8 June 11, 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.

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9 I

NTRODUCTIONS/PRESENTATIONS/

COMMISSION REPORTS

AGENDA ITEMS

1. 22-881

2. 22-882
10 PROCLAMATION

RECOGNIZING JUNE AS LGBTQIA PRIDE MONTH

IN THE CITY OF HERCULES
WHEREAS, the City of Hercules has a diverse Lesbian, Gay, Bisexual, Transgender/Transsexual, Queer/Questioning, Intersex and Asexual (LGBTQIA) community and is committed to supporting visibility, dignity, and equity for all people in the community; and WHEREAS, many of the residents, students, city employees, and business owners within the City of Hercules who contribute to the enrichment of our city are a part of the Lesbian, Gay, Bisexual, Transgender/Transsexual, Queer/Questioning, Intersex and Agender/Asexual community; and WHEREAS, various advancements have been made with respect to equitable treatment of Lesbian, Gay, Bisexual, Transgender/Transsexual, Queer/Questioning, I ntersex and Agender/Asexual persons throughout the nation, but there continues to be some opposition against pe ople from this community and around the world making it important for cities like Hercules to stand up and show support for our residents who are affected; and
WHEREAS, several cities across the United States recognize and celebrate June as LGBTQIA Pride Month; and
WHEREAS, June has become a symbolic month in which Lesbian, Gay, Bisexual, Transgender/Transsexual, Queer/Questioning, I ntersex and Agender/Asexual people and supporters come together in various celebrations of pride; and
WHEREAS, the rainbow flag, also known as the LGBTQIA pride flag or gay pride flag, has been used since the 1970s as a symbol of Lesbian, Gay, Bisexual, Transgender/Transsexual, Queer/Questioning, Intersex and Agender/Asexual pride and LGBTQIA social movements; and WHEREAS, the rainbow flag has been flown at City Hall throughout the month of June to symbolize the City’ s celebration of diversity and support for the Lesbian, Gay, Bisexual, Transgender/Transsexual, Queer/Questioning, Intersex and Agender/Asexual community; and NOW, THEREFORE BE IT PROCLAIMED , that I, Dan Romero, Mayor of the City of Hercules, on behalf of the entire City Council, do hereby recognize June as LGBTQIA Pride month in the City of Hercules and invites everyone to reflect on ways we all can live and work together with a commitment to mutual respect and understanding , and further, recognizes Pride Month by flying the Pride Flag at City Hall during the month of June.

In witness whereof, I hereunto set my hand and cause the seal of the City of Hercules to be affixed this 11th day of June 2024.
_______________________
Dan Romero, Mayor
22-881
11 IN

TRODUCTIONS/PRESENTATIONS/

COMMISSION REPORTS

AGENDA ITEM

2. 22-882
12 PROCLAMATION
RECOGNIZING JUNE 19, 2024 AS JUNETEENTH

IN THE CITY OF HERCULES
WHEREAS, America does not only celebrate our independence on July 4, Juneteenth, coined by combining the words June and nineteenth, also known as “Juneteenth Independence Day,” “Emancipation Day,” “Emancipation Celebration,” and “Freedom Day,” is the oldest African American holiday observance in the United States; and
WHEREAS, Events in the history of the United States that led to the start of the Civil War in 1861 centered on sectional differences between the North and the South that were based on the economic and social divergence caused by the existence of slavery; and WHEREAS, President Abraham Lincoln signed the Emancipation Proclamation on January 1, 1863, declaring the freedom of enslaved persons of the confederate territory and paving the way for the passing of the 13th Amendment to the Constitution of the United States of America; and WHEREAS, on June 19, 1865, almost two and one-half years after President Lincoln issued the Emancipation Proclamation Union soldiers led by General Gordon Granger arrived in Galveston, Texas, informing Thousands of enslaved people in Texas of their liberation and the abolition of slavery; and
WHEREAS, Juneteenth is the best -known and one of the oldest American holidays that celebrates the end of slavery in the United States; it commemorates the date June 19, 1865, when the last African American slaves held in Confederate states were freed and has been observed since June 19, 1866; and
WHEREAS, Juneteenth became a state holiday in Texas in 1980, and several other states subsequently followed suit. The day is also celebrated outside the United States, with organizations in a number of countries using the day to recognize the end of slavery and to celebrate the culture and achievements of African Americans; and
WHEREAS, Today, Juneteenth commemorates African American freedom and emphasizes education and achievement as it is a time for reflection and rejoicing and a time for assessment, self-improvement, and planning for the future; and
WHEREAS, Juneteenth symbolizes freedom, celebrates the abolishment of slavery, and reminds all Americans of the significant contributions of African Americans to our society; and WHEREAS, General Granger’s announcement called for “absolute equality,” we know that such a vision was far from complete back then, as it is today. We celebrate how far we have come and take stock of how far we must go; and
WHEREAS, Juneteenth celebrates the significant role that African Americans have played in the history of the United States and how they have enriched society through their steadfast commitment to promoting unity and equality.

NOW, THEREFORE, BE IT PROCLAIMED that I, Dan Romero, Mayor of the City of Hercules, on behalf of the entire City Council, do hereby recognize June 19, 202 4, as Juneteenth, National Freedom Day, in the City of Hercules.

In witness whereof, I hereunto set my hand and cause the seal of the City of Hercules to be affixed this 11th day of June 2024.
________________________________
Dan Romero, Mayor
22-882
13 P

UBLIC HEARINGS

AGENDA ITEM

1. 22-883
14 1

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 11, 2024
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Public Hearing on Proposed FY 2024-25 City of Hercules Annual Budget Plan including the First Year of the Ten-Year 2025–2034 Capital Improvement Plan (CIP) Budget
RECOMMENDED ACTION:

Open the Continued Public Hearing, receive a Staff Report, Take Public Testimony, Close the Public Hearing, and Adopt the following resolutions (Attachments 1-3):

1. Approving the FY 2024-25 City of Hercules Budget Plan which includes the First Year (2024-25 Fiscal Year) of the Ten-Year (20 25-2034 Fiscal Years) Capital Improvement Plan (CIP) Budget and making certain designations and fund balance adjustments, approving annual contracts for services in a total amount of $4,618,056.

2. Approving the FY 20 24-25 Hercules Public Financing Authority Budget Plan Consisting of Debt Service in the amount of $2,023,238.

3. Establishing the Appropriations Limit for the FY 20 24-25 in accordance with Proposition 111 and Article XIII B.

BACKGROUND:

The City Council held a series of budget workshops to discuss and review the proposed Ten-Year (FY 2025-2034) Capital Improvement Plan (CIP) and FY 2024-25 Annual Budget at their regular meeting on March 26 and April 23, respectively. The first public hearing of the entire recommended annual budget was conducted on May 28, 2024, and the public hearing is continued tonight for adoption.
22-883
15 2

ANALYSIS:

The proposed FY 202 4-25 Budget including the City Manager’s Budget Message is available on-line on the City’s website ( https://www.herculesca.gov/) and through the following link: https://www.herculesca.gov/government/finance/budgets

The budget proposal incorporates a 3% Cost-of-living adjustments (COLA) increase in labor costs, pending the result of ongoing labor negotiation with bargaining groups, an overall increase of 3%, an increase to account for inflation, and a few other adjustments to address gaps in organizational efficiency and effectiveness. Staff will return to the City Council with recommendations when we reach agreements with the labor groups.

The chart below describes the notable changes, along with the economic impact associated with each adjustment.

Following the closing of the public hearing this evening, the City Council is requested to consider approval of the budget recommended by the City Manager. The Budget Resolution sets forth designations necessary to ensure they are appropriately shown in the annual audit. Finally, the resolution approving the Budget also approves several annual contracts for services for which funding is included in the Budget.

General Other
Fund Funds Total
Ongoing costs:

Human Resources Director $5,000 $5,000
NeoGov Recruitment Notifications 3,606 3,606
Reclass two Rec Coordinators to Supervisors 19,300 19,300 Full-Time Recreation Technician - Aquatics 5,000 5,000 Reorganization of IT services - -
LLAD Coordinator 176,000 176,000
Total, Ongong 32,906 176,000 208,906
One-Time Costs:

NeoGov Module Support Services 38,000 38,000
Legal Counsel for Receivership 40,000 40,000
Replace 2 New Pickup Trucks 150,000 150,000
Total, One-Time 78,000 150,000 228,000
Total $110,906 $326,000 $436,906
Budget Impact
16 3

The contracts being approved are set forth in the following table:

The revenue estimates and expenditure appropriations in the budget are for all City funds and include operations, capital and internal transfers for all programs and support functions of the City. Fund summaries and financial schedules showing two prior years actual results, FY 2023-24 projections, and FY 20 24-25 proposed budget are presented for each City budgetary unit in the budget document.

In addition to the proposed budget, the following related items are presented for Council approval:

Hercules Public Financing Authority (PFA) Budget
The Hercules Public Financing Authority (PFA) budget plan for FY 2023-24 consists of debt service in the amount of $2,023,238. The PFA Debt Service Funds include the following:

 2020 Public Financing Authority (PFA) Lease Revenue Refunding Bonds – This bond issue helped pay for the Hercules Community Library construction and is paid for solely out of the General Fund. Debt Service payment for FY 2024-25 is $563,430.

 2009 Public Financing Authority (PFA) Taxable Lease Revenue Bonds – Bio- Rad/Venture – This bond was issued to pay for the Venture Building on Linus Pauling Drive and is fully paid for by lease revenue and a guaranteed investment contract (GIC). Debt Service payment for FY 202 4-25 is $905,296.

 2021 Public Financing Authority (PFA) Wastewater Revenue Bonds – This bond issue was to finance improvements to the City’s wastewater system and is paid for solely out of the wastewater fund. Debt Service payment for FY 2024-25 is $554,512.

No. Vendor Name Service Description FY 24/25
1 AMS.Net Network Support & Maintenance $117,000
2 Superion, LLC (Central Square) Financial & Business Aplications Support & Maintenance & Training Subscription
108,000
3 M-Group Associate Planner 119,480
4 CSG Consultant Code Enforcement 120,000
5 Pacific Site Maintenance Landscaping 639,000
6 Andre, Mechanical Service Lift Station Maintenance /Electrical Trouble Shooting
64,000
7 Kleen Tech Janitorial (Citywide) 155,000
8 Clean Streets Street sweeping 79,000
9 Contra Costa County Animal Control 287,151
10 H&R Plumbing Storm Drain & Sewer Cleaning 155,000
11 Hercules Tree Tree Work 100,000
12 City of Pinole Sewer Plant Engineering Services 2,674,425 TOTAL: $4,618,056
17 4

Successor Agency to the former Hercules Redevelopment Agency The Successor Agency depends on the receipt of property tax increment revenue to pay obligations of the former Hercules’ Redevelopment Agency. To receive the tax increment, the Successor Agency submits a Recogniz ed Obligation Payment Schedule (ROPS) annually to a n Oversight Board and the State Department of Finance. After approval by the Oversight Board, tax increment funds are distributed to the Successor Agency by the Contra Costa Auditor Controller’s Office. The use of tax increment is restricted, and the Successor Agency does not receive excess tax increment. Excess tax increment after payment of debt and administrative costs are distributed to other taxing entities such as the City of Hercules, Cities within Contra Costa County, the State of California (for schools), and special districts.

Successor Agency revenue is expected to be sufficient for all debt service obligations for bonds in FY 2024-25. The total FY 2024-25 Successor Agency budget of bond debt service payments, including payments to Catellus and Senior Bridge Housing is about $8.6 million. As property values increase and more tax increment becomes available, there is sufficient funding for administration , developer obligations and pass-through payments approved by the State Department of Finance.

Appropriation (GANN) Limit
The California Constitution limits growth in local government spending and establishes a maximum limit for expenditures from general taxes. The law, commonly known as the Gann Limit, requires that the limit is recalculated and approved annually by the City Council at the beginning of each fiscal year. The Gann Limit is indexed to specified growth factors approved by the Legislature and applied to revenue appropriations. The annual Appropriation (GANN) Limit establishes the maximum amount that can be appropriated to the General Fund.

Article XIII B of the California Constitution was approved by California voters in 1979 and has been amended several times since its adoption. Article XIII B creates a restriction on the amount of revenue that can be appropriated in any fiscal year.

Article XIII B requires all local government entities to establish an annual appropriation limit. The appropriation subject to limitation is to be based on the 1978- 79 appropriation adjusted for changes in cost of living and population.

California Government Code Section 7910 requires each local government to establish its appropriation limit by resolution. Adoption of the attached resolution will approve the FY 20 24-25 annual Ap propriations Limit. For FY 20 24-25, the Appropriations Limit has been determined to be $552,477,093.

FISCAL IMPACT:

The proposed FY 2024-25 Citywide Budget appropriates expenditures of $43 million, of which General Fund is $19 million, Special Revenue, Capital Projects and Debt Service funds are $13 million, Sewer Enterprise Fund is $9 million, and Internal Service Funds is $2 million. There are sufficient revenues and accumulated fund balance to fund these appropriations.
18 5

The City’s General Fund is projected to end the year with a cumulative available fund balance of $1.9 million, and $4.9 million in operating reserve, which is equivalent to 25% of the General Fund budget.

ATTACHMENTS:

1. Annual Budget Resolution

2. PFA Resolution

3. GANN Resolution

4. FY 2024-25 Annual Budget

19 1

RESOLUTION NO. 24-_______

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES APPROVING THE FISCAL YEAR 2024-25 CITY OF HERCULES BUDGET PLAN WHICH INCLUDES THE FIRST YEAR (2024-25 FISCAL YEAR) OF THE TEN-YEAR (2025-34 FISCAL YEARS)

CAPITAL IMPROVEMENT BUDGET AND MAKING CE RTAIN DESIGNATIONS, CONFIRMING THE CITY MANAGER’S CONTRACT AUTHORITY, AND A PPROVING ANNUAL CONTRACTS FOR SERVICES IN THE TOTAL AMOUNT OF $4,618,056.

WHEREAS, the City of Hercules (City) has prepared and adopted annually the operating and capital budgets of the various funds of the City with the intent of providing a policy program for City services and a financial system to carry out the planned program of services; and

WHEREAS, the City Manager has prepared and is submitting an operating and capital budget for FY 2024-25; and

WHEREAS, the City Manager and Finance Director have reviewed the proposed budget with the City Council and Finance Commission; and

WHEREAS, those reviews included consideration of the capital projects listed to be funded by the various City funds, and the presentation of individual operating budgets in those funds; and

WHEREAS, the operating and capital budget program reflects cost c ontainment efforts in all departments and funds; and

WHEREAS, the budget, as presented, does not include provisions for any additional State or Federal takeaways or legislation that might adversely affect the proposed budget; and

WHEREAS, all grants received shall be appropriated and spent according to grant guidelines; and

WHEREAS, it will be necessary to carry over certain encumbrances and committed expenditures from FY 2023-24 to FY 2024-25; and

WHEREAS, the City Council has reviewed the proposed budget for FY 2024-25 at Public Hearings on May 28, 2024, and June 11, 2024, held for the purpose of reviewing and discussing FY 202 4-25 operating and capital budgets and providing the opportunity for public input and discussions.

20 2

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

1. The City Council hereby approves the FY 2024-25 operating and capital budgets for all City funds as detailed in attachments hereto.

2. The City Council hereby adopts the FY 2024-25 Annual Budget.

3. The City Council hereby approves the ten-year FY 2024-25 through FY 2033-34 Capital Improvement Budget in concept, recognizing that all listed projects may not currently be fully funded, but that staff will pursue any and every funding opportunity that is available to accomplish the desired capital program.

4. The City Council hereby authorizes the use of Available Fund Balances in those funds where projected expenditures are greater than projected revenues, and that the Treasurer and/or the Finance Director be authorized to make loans during the fiscal year from one fund or entity to another fund or entity as deemed necessary and as appropriate.

5. The City Council hereby authorizes the Treasurer and/or Finance Director and/or his/her designee to carry over from FY 2023-24 to FY 2024-25 any encumbered amounts and associated appropriations, or any other amounts for items that are deemed necessary to the continuity of providing service to the community or are necessary for the initiation and completion of planned projects, programs, or services.

6. The City Council authorizes the City Manager and the Finance Director and/or their designees to approve and make payment for goods and services received by the City in accordance with the City’s approved budgets, programs, and policies.

7. The City Council authorizes the City Manager and his/her designee to expend budgeted City funds as set forth below without further City Council authorization, such as the purchasing process for Council’s award of bid or award of services contract:

CONTRACT TYPE LIMIT
General Contracts $50,000
Public Works Construction
Contracts
$100,000
Fully Reimbursed General
Contracts
$100,000

21 3

Except as provided above, all City expenditures shall require City Council authorization.

8. The City Council authorizes the City Manager and his/her designee, without further City Council approval, to expend up to $50,000 per expenditure, subject to an aggregate limit of $50,000, for non-budgeted emergency expenses during any fiscal year. However, the City Manager must report any action taken under this paragraph of this Resolution back to the City Council.

9. The City Council authorizes the City Manager and his/her designee, the foregoing notwithstanding and without further City Council approval, to: (1) pay all amounts allowed under contracts approved by the City Council regardless of the amount of any such payment(s) (in the case of the City, any project contracts approved and authorizing the City Manager authority to administer the entire contract, any principal and interest payments on debt issues, and any pass-through collected for other agencies), (2) make any transfer of funds, or transfer of bond proceeds for capital projects in other funds, as identified in the City budget, (3) authorize change orders for any contract approved by the City Council in an aggregate amount not to exceed $50,000 or 10% of the contract price, whichever is less, and (4) enter into and bind the City to contracts that are budgeted as set forth in Section 7 above.

10. The City Council hereby makes or conf irms the following General Fund reserves or designations:

City Council Designations FY 24-25
Economic Uncertainty (25% target) $4,862,987
CalHFA Loan Repayment 2,500,000
Capital Projects 1,488,109
Earthquake Insurance Deductible 500,000
PEG Fees 274,000
Reusable Bags (remaining) 13,930
Total, Designations $9,639,026
22 4

11. The City Council hereby approves and authorizes the City Manager to execute the following annual contracts:

The foregoing Resolution was duly and regularly adopted at the City Council meeting of the City of Hercules held on the 11th of June 2024, by the following vote of the Council:

AYES:

NOES:

ABSENT:

____________________________
Dan Romero, Mayor
ATTEST:

___________________________________
Eibleis Melendez, City Clerk

RESOLUTION OF THE PU BLIC FINANCE AUTHORITY APPROVING THE FISC AL YEAR 202 4-25 HERCULES PUBLIC FIN ANCING AUTHORITY BUD GET PLAN CONSISTING OF DEBT SERVICE IN THE AMOUNT OF $2,023,238.

WHEREAS, the Hercules Public Financing Authority (PFA) has prepared and adopted annually the operating budgets of the various funds of the Authority with the intent of providing a policy program for Authority services and a financial system to carry out the planne d program of services; and

WHEREAS, the Executive Director has prepared and is submitting an operating and transfers budget for FY 2024-25; and

WHEREAS, the total proposed debt service and net transfer budg eted expenditures in the FY 2024-25 are $2,023,238 for all departments and funds and are offset by corresponding revenues and/or transfers -in from all sources in FY 202 4-25 for all departments and funds with any individual fund differences (where expenditures exceed revenues) being made up from its ow n Fund Balances or temporary loans from other funds; and

WHEREAS, it will be necessary to carry over certain encumbrances and com mitted expenditures from FY 2023-24 to FY 2024-25; and

WHEREAS, the Authority held a Joint Public Hearing on June 11, 2024, for the purpose of reviewing and discussing the FY 2024-25 fiscal year operating and transfers budget and providing the opportunity for public input and discussion.

NOW, THEREFORE, BE IT RESOLVED, by the Authority Commission of the Hercules Public Financing Authority as follows:

1. The Authority hereby approves the FY 202 4-25 operating and transfers budgets for all Authority funds as detailed in attachments hereto.

2. The Authority approves that funding be, and they are hereby, appropriated for operations in the amount $2,023,238 for FY 2024-25 for all funds and departments of the Authority in the manner and for the purposes set forth in the FY 2024-25 budget document.

3. The Authority authorizes the use of Available Fund Balances in those funds where projected expenditures are greater than projected revenues, and that the Treasurer or the Finance Director be authorized to make loans during the fiscal year from one fund or entity to another fund or entity as deemed necessary and as appropriate.

4. The Authority authorizes the Treasurer or the Finance Director to carry over from FY 2023-24 to FY 2024-25 any encumbered amounts and associated appropriations, or any other amounts for items that are deemed necessary to the continuity o f providing 24 service to the community or are necessary for the initiation and completion of planned projects, programs, or services.

5. The Authority authorizes the Executive Director, the Treasurer, the Finance Director and their designees to approve and make payment for goods and services received by the Authority in accordance with the Authority’s approved budgets, programs and policies.

6. The Authority authorizes the Executive Director and his/her designee, the foregoing notwithstanding and without further Authority Commission approval, to (1) pay all amounts allowed under contracts approved by the Authority Commission regardless of the amount of any such payment(s) (in the case of the PFA, any principal and interest payments on debt issues) and (2) make any transfer of funds, or transfer of bond proceeds for capital projects and debt service in other funds, identified in the Authority budget.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the Public Financing Authority of the City of Hercules held on the 11th of June 2024, by the following vote of the Commission:

AYES:

NOES:

ABSTAIN:

ABSENT:
________________________________
Dan Romero, Board Chair
ATTEST:

________________________________
Eibleis Melendez, Secretary

25 RESOLUTION NO. 24-____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE 2024-25 FISCAL YEAR IN ACCO RDANCE WITH PROPOSITION 111 AND ARTICLE XIII B.

WHEREAS, Article XIII B of the State Statute (Government Code Section 7910) requires the City of Hercules to establish each year an appropriations limit for the following fiscal year; and

WHEREAS, the determination of the appropriations limit is considered to be a legislative act and should be adopted at a regularly scheduled Council Meeting; and

WHEREAS, effective in the 1990-1991 fiscal year, Proposition 111 amended Article XIII B to allow a selection of annual adjustment growth factors (personal income, commercial/industrial assessed value, and population) which must also be adopted at a regularly scheduled Council Meeting; and

WHEREAS, the annual appropriations limitation has been computed by the Finance Director based on methodology in accordance with pro visions of Government Code Sections 7900-7910 and Proposition 111 amendments, as indicated in Attachment A.

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

1. The City Council hereby establishes the appropriations li mit for the Cit y of Hercules for FY 2024-25 at $552,477,093 using the City of Hercules Population Change and Per Capital Cost of Living Change.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 11th day of June 2024, by the following vote of the Council:

AYES:

NOES:

ABSENT:

____________________________
Alexander Walker-Griffin, Mayor
ATTEST:

________________________________
Eibleis Melendez, City Clerk
26 Attachment 3.A
City of Hercules
Appropriations Limit Calculation
I. Calculation of Appropriations Limit:

Fiscal Year 2023-24 Appropriations Limit $536,017,008
Adjustment Factors
a. Per Capita Cost of Living Change 1.0362
b. Population Change (Change in City population) 0.9947 Change Factor (a. x b.) 1.0307
Fiscal Year 2024-25 Appropriations Limit $552,477,093
II. Calculation of appropriations subject to the Appropriations Limit:

Fiscal Year 2024-25 Budgeted General Fund Revenue $19,835,823 Less: Non-proceeds of taxes (4,284,026)
Total FY 2024-25 appropriations subject to the Appropriations Limit: $15,551,797 Percent (%) of Appropriations Limit 3%
Source: State Department of Finance
Fiscal Year 2024-25
27 CONSENT CALENDAR

AGENDA ITEMS

1. 22-860

2. 22-876

3. 22-878

4. 22-879

5. 22-880

6. 22-885

28 111 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
6:00 PMTuesday, May 14, 2024
CLOSED SESSION - 6:00 P.M., REGULAR MEETING - 7:00 P.M.

In-Person in Council Chambers or to Listen only: Zoom ID: 853 6598 5956 Zoom Passcode: 871423 Zoom Phone Number: 1-669-900-6833 I. CLOSED SESSION – CALL TO ORDER - ROLL CALL - 6:00 P.M.

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

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

Present: 5 -
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
NONE
III. CONVENE INTO CLOSED SESSION-
The Hercules City Council will meet in Closed Session regarding the following:

1. 22-852 Pursuant to Government Code Section 54957.6 Conference With Labor Negotiators - City Negotiators: Dante Hall, City Manager; Edwin Gato, Director of Finance; relative to the following employee groups:
a. Teamsters Local 315 Employee Organizations
b. Hercules Police Officers Association
c. Hercules Senior Manager Employee Group
d. Confidential Unrepresented Employee Group
e. Mid Management Employee Group
City Attorney, Patrick Tang, read the Closed Session item title. Council and Staff recessed into Closed Session.

IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

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

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

Present: 5 -

Page 1 ends

22-860
29 May 14, 2024City Council Meeting Minutes
V. REPORT ON ACTION TAKEN IN CLOSED SESSION
City Attorney, Patrick Tang, reported out on the Closed Session item.

There was no final or reportable action on the Item discussed in Closed Session.

VI. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was lead by Council Member Kelley.

VII. MOMENT OF SILENCE
In honor of Police Officer Memorial Day(May 15th), Mayor Romero requested a Moment of Silence for the officers that have lost their lives.

VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS
NONE
IX. AGENDA ADDITIONS/DELETIONS
City Manager, Dante Hall, requested Discussion Items 13.4(Authorize Display of Pride Month Commemorative Flag) and 13.5(Authorize Display of Juneteenth Commemorative Flag) be pulled from the agenda and with Councils approval, get added to the Future Agenda Items at the end of the meeting. If Council approves, these two items would be placed on the May 28th Agenda.

X. PUBLIC COMMUNICATIONS
Public Comment was provided by Hunter McCoy, Robert Baum, Charles Davidson, Chinwe Okoli and Tanya Little.

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

XI. PUBLIC HEARINGS
NONE

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30 May 14, 2024City Council Meeting Minutes
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, Mayor D. Romero, and Vice Mayor D. Bailey 5 -

1. 22-847
Meeting Minutes for the Regular Meeting of April 23, 2024 Meeting Minutes for the Regular Meeting of April 23, 2024Attachments:

APPROVED
XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-848 Green Empowerment Zone Board Representative
RECOMMENDATION:

1. Receive a presentation from County staff on the Northern Waterfront Green Empowerment Zone (GEZ);

2. Ask any questions of City or County staff;

3. Take public comment; and

4. Approve a resolution appointing a Council Member to represent the City on the GEZ governing board.

Staff Report - Green Empowerment Zone Representative
Attach 1 - Resolution
Attach 2 - GEZ Invitation Letter
Attachments:

Community Development Director, Tim Rood, introduced and presented the item. Alison Greenlee, Economic Development Manager for Contra Costa County was in attendance to answer questions. Council asked questions and provided comment. Ms. Greenlee and Director Rood provided a response. No public comment. Action was taken on this item.

Council appointed Council Member Walker-Griffin to a two-year term as the City's representative on the Green Empowerment Zone Board of Directors. Council Member Chris Kelley was appointed as the alternate to the Board.

MOTION: A motion was made by Vice Mayor Bailey, seconded by Council Member Grimsley, to adopt Resolution 24-030. The motion carried by the following vote:

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

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

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31 May 14, 2024City Council Meeting Minutes

2. 22-846 Professional Services Agreement with Records Control Services Inc., in the amount of $38,145.91 for the Review and Update of the Cities Records Retention Schedule, Policy and File Management.

RECOMMENDATION:

Adopt a Resolution approving a professional services agreement with Records Control Services in the amount of $38,145.91 for the Review and Update of the Cities Records Retention Schedule, Policy and File Management.

Staff Report - Review and Update of Records Retention Schedule and Policy
Attach 1 - Resolution
Attach 2 - RCS Inc - Hercules Retention Schedule Updates & Record Review Proposal
Attach 3 - 2018 Retention Schedule
Attach 4 - 2018 Records Management Program Manual
Attachments:

City Clerk, Eibleis Melendez, introduced and presented the item. Bruce Meier, from Records Control Services, was in attendance via Zoom to provide further explanation and to answer any questions. Council provided comment and asked questions. City Clerk Melendez and Mr. Meier 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 24-031. The motion carried by the following vote:

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

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

3. 22-851
Volunteer Recognition
RECOMMENDATION:

Staff recommends the City Council receive an update on Volunteer Recognition in the City of Hercules.

Staff Report - Hercules Volunteers
Attach 1 - Volunteer Recognition - Herculean Mile Nomination form & button on City website
Attachments:

Parks and Recreation Director, Christopher Roke, and Police Chief Joseph Vasquez, introduced and presented the item. Volunteers that were present stood to be recognized. Council provided comment and asked questions. Director Roke and Chief Vasquez provided a response. No public comment. No action was taken on this item. Pictures were taken.

4. 22-849
Authorize Display of Pride Month Commemorative Flag
RECOMMENDATION:

Approve Display of Commemorative Flag for the month of June - Pride Month

Page 4 ends

32 May 14, 2024City Council Meeting Minutes
Staff Report - Pride Flag Display for Month of June 2024 Attach 1 - Flag Policy #16
Attachments:

This item was pulled from the agenda. Please refer to notes under Item IX.

Agenda Additions/Deletions.

5. 22-850 Authorize Display of Juneteenth Commemorative Flag RECOMMENDATION:

Approve the Display of the Juneteenth Commemorative Flag from June 14th through June 21st.

Staff Report - Juneteenth Flag Display 2024
Attach 1 - Flag Policy #16
Attachments:

This item was pulled from the agenda. Please refer to notes under Item IX.

Agenda Additions/Deletions.

XIV. PUBLIC COMMUNICATIONS
Selina Williams, Maureen Brennan and Tara Shaia provided public comment.

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

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

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

1. Regional Committee

2. City Council Committees and Subcommittees

3. Commission Liaisons
City Manager, Dante Hall and City Attorney, Patrick Tang, had no announcements.

1. Regional Committee
Council Member Kelley reported out on the West Contra Costa Transportation Advisory Committee(WCCTAC) meeting. Vice Mayor Bailey reported out on the WestCat meeting. Council Member Kelley and Council Member Walker- Griffin attended the Contra Costa Mayors Conference. Mayor Romero attended the West County Integrated Waste Management Meeting(WCCIWMA).

Page 5 ends

33 May 14, 2024City Council Meeting Minutes

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 attend throughout the city and county which included the Hercules Wellness Fair and city Clean Up Day.

Future Agenda Item Requests -
Vice Mayor Bailey requested that the Council have a discussion regarding the raising of the Pride and Juneteenth Flags as well as the dates that the flags would be flown in front of City Hall at the next available meeting. The Council unanimously agreed to bring it back as a future discussion Mayor Romero requested a future discussion on The City of Hercules possibly hosting a town hall meeting with Rodeo-Hercules Fire District.

The Council unanimously agreed to bring it back as a future discussion.

XVI. ADJOURNMENT
Mayor Romero adjourned the meeting at 8:25 P.M.
_________________________________
Dan Romero, Mayor
Attest:
_______________________________
Eibleis Melendez, City Clerk

Page 6 ends

34 CO

NSENT CALENDAR

AGENDA ITEM

2. 22-876
35 111 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
6:00 PMTuesday, May 28, 2024
CLOSED SESSION - 6:00 P.M., REGULAR MEETING - 7:00 P.M.

In-Person in Council Chambers or to Listen only: Zoom ID: 880 7041 9625 Zoom Passcode: 299387 Zoom Phone Number: 1-669-900-6833 I. CLOSED SESSION – CALL TO ORDER - ROLL CALL - 6:00 P.M.

Council Member C. Kelley, Council Member A. Walker-Griffin, Mayor D. Romero, and Vice Mayor D. Bailey

Present: 4 -
Council Member T. GrimsleyAbsent: 1 -
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
NONE
III. CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:

City Attorney, Patrick Tang, read aloud the Closed Session item titles.

Council and Staff recessed into Closed Session.

1. 22-873 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - Pursuant to Government Code Section 54956.9(d)(4): in one (1) matter.

2. 22-872

CONFERENCE WITH LEGAL COUNSEL - POTENTIAL LITIGATION -
Pursuant to Government Code Section 54956.9(e)(1): in one (1) matter.

3. 22-874

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION - Significant exposure to litigation pursuant to Government Code § 54956.9(d)(2) related to a fatal traffic incident located at Parker Ave at 4th Street, Rodeo.

Page 1 ends

22-876
36 May 28, 2024City Council Meeting Minutes
IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

Council Member C. Kelley, Council Member A. Walker-Griffin, Mayor D. Romero, and Vice Mayor D. Bailey

Present: 4 -
Council Member T. GrimsleyAbsent: 1 -
V. REPORT ON ACTION TAKEN IN CLOSED SESSION
City Attorney, Patrick Tang, reported out on the Closed Session items.

There was no final or reportable action on the items discussed in Closed Session.

VI. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was lead by Mayor Romero.

VII. MOMENT OF SILENCE
Mayor Romero held a moment of silence in honor of Memorial Day.

VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS
Mayor Romero would like to acknowledge the following for the Month of June - Pride Month
National Cancer Survivors Day - June 2nd
Philippine Independence Day - June 12th
Flag Day - June 14th
Father's Day - June 16th
Juneteenth - June 19th
Mayor Romero acknowledged the listed groups and days for the month of June.

IX. AGENDA ADDITIONS/DELETIONS
NONE
X. PUBLIC COMMUNICATIONS
Public comment was provided by Alison Peters, Tanya Little, Hunter McCoy, Robert Baum and Delano Doss.

Page 2 ends

37 May 28, 2024City Council Meeting Minutes
XI. PUBLIC HEARINGS

1. 22-861 Public Hearing on Proposed FY 2024-25 City of Hercules Budget Plan including the First Year of the Ten Year 2025-34 Capital Improvement Plan (CIP)
RECOMMENDATION:

Open the Public Hearing, Receive the Staff Report, Take Public Testimony, and Continue the Public Hearing to June 11, 2024. It is recommended that the City Council discuss and provide policy direction, if any, to staff regarding the approval of the proposed FY 2024-25 Annual Budget.

Staff Report - FY 24-25 Proposed Annual Budget
Attach 1 - Proposed FY 2024-25 HERCULES Annual Budget
Attachments:

City Manager, Dante Hall, introduced the item. Finance Director, Edwin Gato, presented. Council asked questions and provided comment.

Director Gato, Public Works Director, Mike Roberts, and City Manager Hall, provided a response. Mayor Romero opened the public hearing. No public comment. Council continued discussion. City Manager Hall, Director Roberts and Parks and Recreation Director, Christopher Roke, provided a response. No action was taken on this item. The Public Hearing was continued to next meeting.

XII. CONSENT CALENDAR
VIce Mayor Bailey pulled agenda items 12.2 and 12.3. He asked for clarification on the approval process for these items. City Attorney, Patrick Tang, provided clarification. Vice Mayor Bailey placed both items back on the Consent Calendar. Action was taken to approve the 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 A. Walker-Griffin, Mayor D. Romero, and Vice Mayor D. Bailey
4 -

Absent: Council Member T. Grimsley1 -

1. 22-862
Adoption of a List of Project for Fiscal Year 2024-25 Funded by SB 1: the Road Repair and Accountability Act of 2017
RECOMMENDATION:

Adopt a Resolution adopting a list of projects for Fiscal Year 2024-25 Funded by Sb 1: the Road Repair and Accountability Act of 2017.

Staff Report - SB1 FY 24-25
Attach 1 - Resolution - SB1 FY 24-25
Attachments:

Resolution 24-032 APPROVED

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38 May 28, 2024City Council Meeting Minutes

2. 22-863 Authorize Display of Pride Month Commemorative Flag RECOMMENDATION:

Approve Display of Commemorative Flag for the month of June - Pride Month
Staff Report - Pride Flag Display for Month of June 2024 Attach 1- Flag Policy #16
Attachments:

APPROVED

3. 22-864 Authorize Display of Juneteenth Commemorative Flag RECOMMENDATION:

Approve the Display of the Juneteenth Commemorative Flag from June 14th through June 21st.

Staff Report - Juneteenth Flag Display 2024
Attach 1- Flag Policy #16
Attachments:

APPROVED
XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-865 FY 23/24 Sewer Fund Financial Analysis and Recommendations for FY 25/26 Rate Adjustments
RECOMMENDATION:

The City Council receive a presentation on the FY 23/24 Sewer Fund financial model run including the recommendation to proceed with a Proposition 218 process in Spring 2025 to increase rates in FY 25/26.

Staff Report - Sewer Health Fund Study
Presentation - Hercules Rate Study
Attachments:

City Manager, Dante Hall, introduced the item. Public Works Director, Mike Roberts and representatives from Willdan presented. Council asked questions and provided comment. Director Roberts and City Manager Hall provided a response. No public Comment. No action was taken on this item.

2. 22-866
Adoption of the 2024-2026 Hercules City Council Strategic Goals RECOMMENDATION:

Receive and file the report on the Council Strategic Planning Workshop and adopt by resolution the 2024-2026 Hercules City Council Strategic Goals.

Page 4 ends

39 May 28, 2024City Council Meeting Minutes
Staff Report - Adoption of the 2024-2026 Hercules City Council Strategic Goals
Attach 1 - Resolution Adopting the 2024-2026 Hercules City Council Strategic Goals
Attach 2 - Exhibit 1 - 2024-2026 Hercules City Council Strategic Goals
Attachments:

City Manager, Dante Hall, introduced the item. Representatives from Tripepi Smith presented. Council asked questions and provided comment.

City Manager Hall provided a response. No public comment. Action was taken on this item.

MOTION: A motion was made by Council Member Kelley, seconded by Council Member Walker-Griffin, to adopt Resolution 24-033 with the two changes that were noted. The motion carried by the following vote:

Aye: Council Member C. Kelley, Council Member A. Walker-Griffin, Mayor D. Romero, and Vice Mayor D. Bailey
4 -

Absent: Council Member T. Grimsley1 -

3. 22-867
Hercules Branding Project and Logo Concepts
RECOMMENDATION:

Staff recommends that the City Council consider and select one logo option for finalization.

Staff Report - Hercules Branding Project Logo Concepts
Attach 1 - Draft - Focus Round Hercules Logo Survey Selections Attachments:

City Manager, Dante Hall, introduced the item. A representative from Tripepi Smith presented. Council asked questions and provided comment.

City Manager Hall and Tripepi Smith provided a response. Public comment was provided by Robert Baum. Council provided feedback on logos. Council also requested that Council Member Grimsley be present to provide input. Council agreed to continue the discussion at a future council meeting. No action was taken.

4. 22-875
Request for a Town Hall Meeting Regarding the Rodeo-Hercules Fire Protection District Long-term Sustainability Options
RECOMMENDATION:

Staff requests that the City Council discuss this item and provide direction.

Staff Report - Request for a Town Hall Meeting Re:the Rodeo-Hercules Fire Protection District
Attach 1 - RHFD 12-13-2023 Special Meeting Agenda
Attach 2 - RHFD 5-15-2024 Special Meeting Agenda
Attachments:

City Manager, Dante Hall, introduced and presented the item. Council provided comment and asked questions. Public comment was provided by Delano Doss, Robert Baum and Tanya Little. Council continued the discussion. Council vote was 2/2 on holding a town hall meeting. No further action was taken on this item.

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40 May 28, 2024City Council Meeting Minutes

5. 22-868 Remote Public Participation Update
RECOMMENDATION:

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

Staff Report - Remote Participation Update
Attach 1 - Remote Participation Survey of Local Agencies 5/20/24 Attach 2 - 2.13.24 Staff Report - Remote Participation Attach 3 - Remote Participation Survey of Local Agencies 1/1/24 Attachments:

City Manager, Dante Hall, introduced the item. City Clerk, Eibleis Melendez, presented the item. Council asked questions and provided comment. City Clerk Melendez and City Attorney, Patrick Tang, provided a response. Public comment was provided by Tanya Little. Council continued the discussion and agreed to bring the item back to the first meeting in July so Council Member Grimsley would be present to provide comment on this agenda item. No action was taken on this item.

6. 22-869
Award of a Construction Contract in the amount of $84,910 for the Fire Station 76 Reroofing Project
RECOMMENDATION:

Adopt a resolution authorizing the City Manager to execute a construction contract with Lifetime Roofing & Renovation in the amount of $84,910 for the Fire Station 76 Reroofing Project, authorizing an additional expenditure of up to $8,491 for a 10% contingency on said construction contract, for a total not to exceed amount of $93,401, and appropriating the same from the General Fund/Capital Reserves to fully fund the project.

Staff Report - Fire Station 76 Reroofing Award
Attach 1 - Resolutuion -Fire Station 76 Reroofing Award Attachments:

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

Council asked questions and provided comment. Director Roberts and City Manager, Dante Hall, provided a response. No public comment.

Action was taken on this item.

MOTION: A motion was made by Vice Mayor Bailey, seconded by Council Member Walker-Griffin, to adopt Resolution 24-034. The motion carried by the following vote:

Aye: Council Member C. Kelley, Council Member A. Walker-Griffin, Mayor D. Romero, and Vice Mayor D. Bailey
4 -

Absent: Council Member T. Grimsley1 -

7. 22-871
4th of July Fireworks Celebration
RECOMMENDATION:

City Council receive an update on the Bayfront 4th of July fireworks celebration, discuss, and provide direction to staff, if any.

Page 6 ends

41 May 28, 2024City Council Meeting Minutes
Staff Report - Fireworks Celebration Update
Attach 1 - Map - 4th of July Fireworks Event
Attachments:

City Manager, Dante Hall, introduced the item. Parks and Recreation Director, Christopher Roke, presented the item. Council asked questions and provided comment. Director Roke and Police Chief, Joe Vasquez, provided a response. No public comment. No action was taken on this item.

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

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

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

1. Regional Committee

2. City Council Committees and Subcommittees

3. Commission Liaisons
City Manager, Dante Hall, advertised and promoted the upcoming Team up To Clean Up Event and the Cultural Festival. City Attorney, Patrick Tang, had no announcements.

1. Regional Committee
Council Member Kelley attended the Contra Costa Transportation Authority (CCTA) meeting. Vice Mayor Bailey attended the Marin Clean Energy (MCE) meeting. Mayor Romero attended the West County Mayors and Supervisors meeting.

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

Page 7 ends

42 May 28, 2024City Council Meeting Minutes
and County
Future Agenda Item Request-
There were no future agenda item requests.

XVI. ADJOURNMENT
Mayor Romero adjourned the meeting at 10:33 P.M.
_________________________________
Dan Romero, Mayor
Attest:
_______________________________
Eibleis Melendez, City Clerk

Page 8 ends

43 CO

NSENT CALENDAR

AGENDA ITEM

3. 22-878
44 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 11, 2024
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Accept the Investment Report for the Quarter Ending September 30, 2023
RECOMMENDED ACTION:

Accept the Investment Report for the Quarter Ending September 30, 2023 EXECUTIVE SUMMARY:

Pursuant to California Government Code section 53646 and the City’s Investment Policy, a quarterly report and certification shall be provided to the City Council, City Manager, and City Auditor. The Quarterly Investment Report shall include a complete description of the portfolio, the type of investments, the issuers, maturity dates, par value and dollar amounts invested in all securities. The certification must provide assurances that investments were made consistent with the City’s Investment Policy and that the City will meet its expenditure obligations for the next six months. The Quarterly Investment Report for the quarter ending September 30, 2023, is provided as Attachment 1.

BACKGROUND:

To comply with state law and city policy, the City is required to present quarterly investment reports detailing the City's investment portfolio to the City Council, City Manager, and City Auditor. The Council's authority to invest or reinvest funds or sell or exchange securities is delegated to the City's Finance Director, who also serves as City Treasurer. Pursuant to the Investment Policy, the City Treasurer may delegate some of their fiduciary responsibility to an outside investment management firm. An investment manager's fiduciary responsibility is a legal requirement related to registration with the Securities and Exchange Commission under the Investment Advisor Act of 1940. Due to the specialized services and expertise required to assist the City in the varied investment options available, the City has 22-878
45 used the Local Investment Agency Fund (LAIF) and PARS experienced investment managers.

Analysis:

This report presents the City’s investment portfolio for the quarter ending September 30, 2023. It has been prepared to comply with regulations contained in California Government Code Section 53646 and City’s Investment Policy. The report includes all cash and investments managed by the City. It also includes City-related investments held by bond trustees for debt service obligations as well as money held in the irrevocable trust with PARS for pension and other post-employment benefits (OPEB). The report provides information on the investment type, issuer, maturity date, cost, and current market value for each security.

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

As of September 30, 2023, the overall pooled investment portfolio average yield (before adjustments for changes in market value) was 2.84%, which is lower than the rate for two- year U.S. Treasury Note at 5.03% and LAIF average monthly rate of 3.53%. The market value of the pooled portfolio was $728,650 or 1% lower than the book value. As the City does not intend to sell its pooled investment portfolio securities prior to maturity, this will have no effect on yield.

73.32% of the total Investment Portfolio was deposited with LAIF as of September 30, 2023.

LAIF has 85.1% of its investments in U.S. Treasuries and agency notes, 7% in CDs and bank notes, and 7.9% in other types of investments. Additional economic summaries and Amount
Market Over/(Under) Average
Investment Type Value Cost Yield
Petty Cash $2,005 - 0.00%
Cash in Bank 4,418,135 - 0.05% Local Agency Investment Fund (LAIF) 52,487,507 ($728,650) 3.53% Irrevocable Trust (Pension) 2,079,595 - 6.38% Irrevocable Trust (OPEB) 2,590,792 - 6.38% Investments with Bond Trustees 10,269,204 - 4.22% Total Portfolio $71,847,238 ($728,650) 2.84%
46 specific information related to each of the investment advisors and LAIF are included in the Investment Portfolio Summary Report included in attachment 1.

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

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

Governmental Accounting Standards Board (GASB) Statement 40 requires the City to recognize the fair market value of its investments at the end of each fiscal year. The market values of investments included in this report are obtained from the State Controller’s office for LAIF and from the City’s registered investment managers and bond trustees for all other investments. These market valuations are subject to daily changes. The difference between market value and historical costs, known as Unrealized Investment Gains and Losses, are temporary in nature and are not cash related transactions. Since it is the City’s general intention to hold its investments until maturity, when they would be redeemed at par value, any unrealized gain or loss is only reported at the end of the fiscal year in the City’s Comprehensive Annual Financial Report.

Of the total cash and investments reported above, the portions held in the City’s General Fund (approximately $24.4 million, or 34%) and Internal Service Funds (approximately $1.5 million, or 2%) are unrestricted, although a portion of these amounts may be committed for existing obligations or designated for speci fic purposes. The remaining $ 46.7 million, or 64%, of the City’s cash and investments are restricted for specific uses, in accordance with federal, state, or local agency rules and regulations.

FISCAL IMPACT:

This is an information report with no fiscal impact.

ATTACHMENTS:

1. Quarterly Investment Report

47 1

INVESTMENT REPORT
For the Quarter Ending September 30, 2023
City of Hercules, California
48 CITY OF HERCULES

FINANCE DEPARTMENT
111 CIVIC DRIVE
HERCULES, CALIFORNIA 94547-1771
PHONE: 510-799-8200

June 11, 2024

Honorable Mayor and City Council:

I verified that this investment portfolio, as of September 30, 2023, conforms with all state laws and City’s investment policy. The City’s expenditures requirements for the next months are covered by anticipated revenues from City operations and liquidity from cash on deposit.

As of September 30, 2023, the City has sufficient funds to meet its expenditure requirements for the next six months.

Sincerely,

Edwin Gato
Finance Director/City Treasurer
49 City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended September 30, 2023
Book % of Average Market
Value Total Yield Value
Cash on Hand $2,005 $2,005
Cash on Deposit 4,418,135 4,418,135
Total Cash on Hand 4,420,140 6.09% 0.05% 4,420,140 Local Agency Investment Fund (LAIF) 53,216,157 73.32% 3.53% 52,487,507 Irrevocable Trust (Pension) 2,079,595 2.87% 6.38% 2,079,595 Irrevocable Trust (OPEB) 2,590,792 3.57% 6.38% 2,590,792 Investments with Bond Trustees 10,269,204 14.15% 4.22% 10,269,204 Total Portfolio $72,575,888 100.00% 2.84% $71,847,238
Amount over (under) Market Value vs. Book Value ($728,650) % of Portfolio -1.00%
Investments by Type
Cash on Hand
LAIF
Irrevocable Trust
(Pension)
Irrevocable Trust
(OPEB)
Investments with
Trustees
50 City of Hercules
Detail for Investment Portfolio Summary Report
For the Quarter Ended September 30, 2023
(DAYS)

BOOK PURCHASE MATURITY LIFE TO REMAINING PAR MARKET

DESCRIPTION VALUE RATE YIELD DATE DATE MATURITY LIFE VALUE VALUE

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

CASH IN BANK
MECHANICS BANK - GENERAL CHECKING 3,853,319.77 0.00% 0.00% 3,853,319.77 3,853,319.77 MECHANICS BANK - HERCULES RDA 518,546.61 0.00% 0.00% 518,546.61 518,546.61 MECHANICS BANK - PD ASSET SEIZURE 25,386.98 0.00% 0.00% 25,386.98 25,386.98 CalTRUST 20,881.40 0.19% 0.19% 7/1/2023 9/30/2023 91 - 20,881.40 20,881.40 TOTAL AND AVERAGES 4,418,134.76 0.05% 0.05% 91 - 4,418,134.76 4,418,134.76

LOCAL AGENCY INVESTMENT FUND (LAIF)
LAIF 53,216,156.86 3.53% 3.53% 7/1/2023 9/30/2023 91 - 53,216,156.86 52,487,507.35

IRREVOCABLE TRUST (PENSION/OPEB)
US BANK MUTUAL (PARS-OPEB) 2,590,791.65 6.38% 6.38% 7/1/2023 9/30/2023 91 - 2,590,791.65 2,590,791.65 US BANK MUTUAL (PARS-PENSION) 2,079,595.32 6.38% 6.38% 7/1/2023 9/30/2023 91 - 2,079,595.32 2,079,595.32 TOTAL AND AVERAGES 4,670,386.97 6.38% 6.38% 91 - 4,670,386.97 4,670,386.97

INVESTMENTS WITH BOND TRUSTEES

WEBSTER BANK (STERLING NATIONAL BANK
ESCROW) 118,086.65 0.24% 0.24% 7/1/2023 9/30/2023 91 - 118,086.65 118,086.65 THE BANK OF NEW YORK (BNY) JM 05 1 RESERVE
FUND 55,797.47 0.00% 0.00% 7/1/2023 9/30/2023 91 - 55,797.47 55,797.47

THE BANK OF NEW YORK (BNY) MELLON TRUST
HERCULES PFA WW INTEREST ACCT 21 A 2,887.50 0.00% 0.00% 7/1/2023 9/30/2023 91 - 2,887.50 2,887.50

THE BANK OF NEW YORK (BNY) MELLON TRUST
HERCULES PFA WW ACQUISITION FD 21 A 8,325,000.00 0.00% 0.00% 7/1/2023 9/30/2023 91 - 8,325,000.00 8,325,000.00

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 REVENUE FUND) 571,166.01 5.22% 5.22% 7/1/2023 9/30/2023 91 - 571,166.01 571,166.01

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV PRIN ACCT) 73,236.23 5.22% 5.22% 7/1/2023 9/30/2023 91 - 73,236.23 73,236.23

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV INT ACCT) 164,748.71 5.22% 5.22% 7/1/2023 9/30/2023 91 - 164,748.71 164,748.71

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 RESERVE FD) 920,215.00 5.22% 5.22% 7/1/2023 9/30/2023 91 - 920,215.00 920,215.00

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2020 INT FD) 4,567.80 0.00% 0.00% 7/1/2023 9/30/2023 91 - 4,567.80 4,567.80 51 City of Hercules
Detail for Investment Portfolio Summary Report
For the Quarter Ended September 30, 2023
(DAYS)

BOOK PURCHASE MATURITY LIFE TO REMAINING PAR MARKET

DESCRIPTION VALUE RATE YIELD DATE DATE MATURITY LIFE VALUE VALUE

THE BANK OF NEW YORK (BNY) MELLON TRUST (SA
HERCULES 2022 A B DEBT SERVICE) - 0.00% 0.00% 7/1/2023 9/30/2023 91 - - - THE BANK OF NEW YORK (BNY) MELLON TRUST (sa
HERCULES 2022 A B INTEREST ACCT) 33,498.59 0.00% 0.00% 7/1/2023 9/30/2023 91 - 33,498.59 33,498.59 TOTAL AND AVERAGES 10,269,203.96 4.22% 4.22% 91 - 10,269,203.96 10,269,203.96 TOTAL INVESTMENT REPORT $72,575,887.55 2.84% 2.84% 91 - $72,575,887.55 $71,847,238.04 52 City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended September 30, 2023
% of
Cash Description Book Value Total
Bond Trustee $10,269,204 14%
Irrevocable Trust 4,670,387 6%
Restricted 31,796,508 44%
General Fund 24,381,766 34%
Internal Service Funds 1,458,023 2%
Total, Book Value $72,575,888 100%
Restricted:

Other 110,640
Capital Projects 219,683
Asset Seizure 231,153
BART (Park & Ride) 341,793
Agency Fund 503,184
Landscape & Lighting 605,881
SB1 RMRA 611,719
Solid Waste 859,882
Gas Tax & Measure J "Street" 1,116,474
Successor Agency 2,275,277
Development Impact Fees 2,987,227
Successor Housing 5,487,586
Wastewater 16,446,009
31,796,508
Bond Trustee
14%
Irrevocable Trust
6%
Restricted
44%
General Fund
34%
Internal Service Funds
2%
Cash by Fund
53 September 3.534
August 3.434
July 3.305**
June 3.167
May 2.993
April 2.870
LAIF Apportionment Rate(2): 3.59
LAIF Earnings Ratio(2): 0.00009812538629360
LAIF Administrative Cost(1)*: 0.29
PMIA Average Life(1): 256
LAIF Fair Value Factor(1): 0.986307739
PMIA Daily(1): 3.48
PMIA Quarter to Date(1): 3.42
Treasuries

64.37%
Agencies

20.72%
Certificates of
Deposit/Bank Notes

7.03%
Time
Deposits

3.35%
Commercial
Paper

4.01%
Corporate
Bonds

0.28%
Loans

0.24%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a). *The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year. ** Revised
Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 9/30/2023
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 09/30/23
Chart does not include $2,444,000.00 in mortgages, which equates to 0.002%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
09/30/23
$156.4 billion
54 CONSENT CALENDAR

AGENDA ITEM

4. 22-879

55 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 11, 2024
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Accept the Investment Report for the Quarter Ending December 31, 2023
RECOMMENDED ACTION:

Accept the Investment Report for the Quarter Ending December 31, 2023 EXECUTIVE SUMMARY:

BACKGROUND:

To comply with state law and city policy, the City is required to present quarterly investment reports detailing the City's investment portfolio to the City Council, City Manager, and City Auditor. The Council's authority to invest or reinvest funds or sell or exchange securities is delegated to the City's Finance Director, who also serves as City Treasurer. Pursuant to the Investment Policy, the City Treasurer may delegate some of their fiduciary responsibility to an outside investment management firm. An investment manager's fiduciary responsibility is a legal requirement related to registration with the Securities and Exchange Commission under the Investment Advisor Act of 1940. Due to the specialized services and expertise required to assist the City in the varied investment options available, the City has 22-879
56 used the Local Investment Agency Fund (LAIF) and PARS experienced investment managers.

Analysis:

This report presents the City’s investment portfolio for the q uarter ending December 31, 2023. It has been prepared to comply with regulations contained in California Government Code Section 53646 and City’s Investment Policy. The report includes all cash and investments managed by the City. It also includes City-related investments held by bond trustees for debt service obligations as well as money held in the irrevocable trust with PARS for pension and other post-employment benefits (OPEB). The report provides information on the investment type, issuer, maturity date, cost, and current market va lue for each security.

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

As of December 31, 2023, the overall pooled investment portfolio average yield (before adjustments for changes in market value) was 2.90%, which is lower than the rate for two- year U.S. Treasury Note at 4.23% and LAIF average monthly rate of 3.93%. The market value of the pooled portfolio was $301,604 or 0.44% lower than the book value. As the City does not intend to sell its pooled investment portfolio securities prior to maturity, this will have no effect on yield.

67.58% of the total Investment Portfolio was deposited with LAIF as of December 31, 2023.

LAIF has 82.7% of its investments in U.S. Treasuries and agency notes, 7.7% in CDs and bank notes, and 9.6% in other types of investments. Additional economic summaries and specific information related to each of the investment advisors and LAIF are included in the Investment Portfolio Summary Report included in attachment 1.

Amount
Market Over/(Under) Average
Investment Type Value Cost Yield
Petty Cash $2,005 - 0.00%
Cash in Bank 6,836,872 - 1.80% Local Agency Investment Fund (LAIF) 46,408,889 ($301,604) 3.93% Irrevocable Trust (Pension) 2,248,129 - 4.37% Irrevocable Trust (OPEB) 2,800,753 - 4.37% Investments with Bond Trustees 10,523,198 - 4.38% Total Portfolio $68,819,846 ($301,604) 2.90%
57 The City invests its idle cash from all operating funds on a pooled basis to maximize returns.

Of the total cash and investments reported above, the portions held in the City’s General Fund (approximately $24.2 million, or 35%) and Internal Service Funds (approximately $1 million, or 1%) are unrestricted, although a portion of these amounts may be committed for existing obligations or designated for speci fic purposes. The remaining $ 43.9 million, or 64%, of the City’s cash and investments are restricted for specific uses, in accordance with federal, state, or local agency rules and regulations.

FISCAL IMPACT:

This is an information report with no fiscal impact.

ATTACHMENTS:

1. Quarterly Investment Report

58 1

INVESTMENT REPORT
For the Quarter Ending December 31, 2023
City of Hercules, California
59 CITY OF HERCULES

FINANCE DEPARTMENT
111 CIVIC DRIVE
HERCULES, CALIFORNIA 94547-1771
PHONE: 510-799-8200

June 11, 2024

Honorable Mayor and City Council:

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

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

Sincerely,

Edwin Gato
Finance Director/City Treasurer
1 60
City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended December 31, 2023
Book % of Average Market
Value Total Yield Value
Cash on Hand $2,005 $2,005
Cash on Deposit 6,836,872 6,836,872
Total Cash on Hand 6,838,877 9.89% 1.80% 6,838,877 Local Agency Investment Fund (LAIF) 46,710,493 67.58% 3.93% 46,408,889 Irrevocable Trust (Pension) 2,248,129 3.25% 4.37% 2,248,129 Irrevocable Trust (OPEB) 2,800,753 4.05% 4.37% 2,800,753 Investments with Bond Trustees 10,523,198 15.22% 4.38% 10,523,198 Total Portfolio $69,121,450 100.00% 2.90% $68,819,846
Amount over (under) Market Value vs. Book Value ($301,604) % of Portfolio -0.44%
Investments by Type
Cash on Hand
LAIF
Irrevocable Trust
(Pension)
Irrevocable Trust
(OPEB)
Investments with
Trustees
2 61
City of Hercules
Detail for Investment Portfolio Summary Report
For the Quarter Ended December 31, 2023
(DAYS)

BOOK PURCHASE MATURITY LIFE TO REMAINING PAR MARKET

DESCRIPTION VALUE RATE YIELD DATE DATE MATURITY LIFE VALUE VALUE

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

CASH IN BANK
MECHANICS BANK - GENERAL CHECKING 6,271,676.41 0.00% 0.00% 6,271,676.41 6,271,676.41 MECHANICS BANK - HERCULES RDA 518,546.61 0.00% 0.00% 518,546.61 518,546.61 MECHANICS BANK - PD ASSET SEIZURE 25,386.98 0.00% 0.00% 25,386.98 25,386.98 CalTRUST 21,262.26 1.80% 1.80% 10/1/2023 12/31/2023 91 - 21,262.26 21,262.26 TOTAL AND AVERAGES 6,836,872.26 1.80% 1.80% 91 - 6,836,872.26 6,836,872.26

LOCAL AGENCY INVESTMENT FUND (LAIF)
LAIF 46,710,492.72 3.93% 3.93% 10/1/2023 12/31/2023 91 - 46,710,492.72 46,408,889.19

IRREVOCABLE TRUST (PENSION/OPEB)
US BANK MUTUAL (PARS-OPEB) 2,800,752.93 4.37% 4.37% 10/1/2023 12/31/2023 91 - 2,800,752.93 2,800,752.93 US BANK MUTUAL (PARS-PENSION) 2,248,128.52 4.37% 4.37% 10/1/2023 12/31/2023 91 - 2,248,128.52 2,248,128.52 TOTAL AND AVERAGES 5,048,881.45 4.37% 4.37% 91 - 5,048,881.45 5,048,881.45

INVESTMENTS WITH BOND TRUSTEES

WEBSTER BANK (STERLING NATIONAL BANK
ESCROW) 118,689.66 1.12% 1.12% 10/1/2023 12/31/2023 91 - 118,689.66 118,689.66 THE BANK OF NEW YORK (BNY) JM 05 1 RESERVE
FUND 55,797.47 0.00% 0.00% 10/1/2023 12/31/2023 91 - 55,797.47 55,797.47

THE BANK OF NEW YORK (BNY) MELLON TRUST
HERCULES PFA WW INTEREST ACCT 21 A 2,887.50 0.00% 0.00% 10/1/2023 12/31/2023 91 - 2,887.50 2,887.50

THE BANK OF NEW YORK (BNY) MELLON TRUST
HERCULES PFA WW ACQUISITION FD 21 A 8,325,000.00 0.00% 0.00% 10/1/2023 12/31/2023 91 - 8,325,000.00 8,325,000.00

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 REVENUE FUND) 600,907.21 5.20% 5.20% 10/1/2023 12/31/2023 91 - 600,907.21 600,907.21

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV PRIN ACCT) 139,268.71 5.20% 5.20% 10/1/2023 12/31/2023 91 - 139,268.71 139,268.71

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV INT ACCT) 322,366.16 5.20% 5.20% 10/1/2023 12/31/2023 91 - 322,366.16 322,366.16

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 RESERVE FD) 920,215.00 5.20% 5.20% 10/1/2023 12/31/2023 91 - 920,215.00 920,215.00

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2020 INT FD) 4,567.80 0.00% 0.00% 10/1/2023 12/31/2023 91 - 4,567.80 4,567.80 3 62
City of Hercules
Detail for Investment Portfolio Summary Report
For the Quarter Ended December 31, 2023
(DAYS)

BOOK PURCHASE MATURITY LIFE TO REMAINING PAR MARKET

DESCRIPTION VALUE RATE YIELD DATE DATE MATURITY LIFE VALUE VALUE THE BANK OF NEW YORK (BNY) MELLON TRUST (sa
HERCULES 2022 A B INTEREST ACCT) 33,498.59 0.00% 0.00% 10/1/2023 12/31/2023 91 - 33,498.59 33,498.59 TOTAL AND AVERAGES 10,523,198.10 4.38% 4.38% 91 - 10,523,198.10 10,523,198.10 TOTAL INVESTMENT REPORT $69,121,449.53 2.90% 2.90% 91 - $69,121,449.53 $68,819,846.00 4 63
City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended December 31, 2023
% of
Cash Description Book Value Total
Bond Trustee $10,523,198 15%
Irrevocable Trust 5,048,881 7%
Restricted 28,329,020 41%
General Fund 24,223,393 35%
Internal Service Funds 996,958 1%
Total, Book Value $69,121,450 100%
Restricted:

Wastewater 12,091,998
Successor Housing 5,504,019
Development Impact Fees 3,114,130
Successor Agency 2,281,155
Landscape & Lighting 1,506,250
Gas Tax & Measure J "Street" 1,045,197
Solid Waste 891,818
SB1 RMRA 698,307
Agency Fund 648,600
BART (Park & Ride) 235,612
Asset Seizure 228,055
Other 83,879
28,329,020
Bond Trustee
15%
Irrevocable Trust
7%
Restricted
41%
General Fund
35%
Internal Service Funds
2%
Cash by Fund
5 64
December 3.929
November 3.843
October 3.670
September 3.534
August 3.434
July 3.305**
PMIA Average Life(1): 230
LAIF Fair Value Factor(1): 0.993543131
PMIA Daily(1): 3.96
PMIA Quarter to Date(1): 3.81
LAIF Apportionment Rate(2): 4.00
LAIF Earnings Ratio(2): 0.00010932476863589
LAIF Administrative Cost(1)*: 0.29
Treasuries

61.22%
Agencies

21.44%
Certificates of
Deposit/Bank Notes

7.72%
Time
Deposits

3.34%
Commercial
Paper

5.71%
Corporate
Bonds

0.36%
Loans

0.21%
Notes: The apportionment rate includes interest earned on the CalPERS Supplemental Pension Payment pursuant to Government Code 20825 (c)(1) and interest earned on the Wildfire Fund loan pursuant to Public Utility Code 3288 (a). *The percentage of administrative cost equals the total administrative cost divided by the quarterly interest earnings. The law provides that administrative costs are not to exceed 5% of quarterly EARNINGS of the fund. However, if the 13-week Daily Treasury Bill Rate on the last day of the fiscal year is below 1%, then administrative costs shall not exceed 8% of quarterly EARNINGS of the fund for the subsequent fiscal year. ** Revised
Source:
(1) State of California, Office of the Treasurer
(2) State of Calfiornia, Office of the Controller
PMIA Average Monthly
Effective Yields(1)
PMIA/LAIF Performance Report
as of 12/31/23
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 12/31/23
Chart does not include $2,164,000.00 in mortgages, which equatesto 0.001%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
12/31/23
$158.0 billion
6 65
CO

NSENT CALENDAR

AGENDA ITEM

5. 22-880
66 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 11, 2024
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Annual Approval of the City of Hercules Investment Policy RECOMMENDED ACTION:

Review and approve the City of Hercules Investment Policy.

BACKGROUND:

The investment of funds by a California local agency, including the types of securities in which an agency may invest, is governed by the California Government Code. The law requires that the legislative body of each agency adopt an investment policy, which may add further limitations than those established by the State. In addition, an agency’s investment policy must be reviewed annually, and any changes must be adopted at a public meeting.

Annual adoption of the City’s investment policy provides an opportunity to regularly review the policy to ensure its consistency with the overall objectives of safety, liquidity, and yield, as well as its relevance to current law and economic trends.

Analysis:

The City’s Investment Policy affirms the fiduciary responsibility to safeguard public assets and identify the opportunities for a systematic investment process. Priority is placed first on securing the safety of principal and the liquidity needed for payroll and other City obligations, then on yield of the investment.

The City’s Investment Policy is reviewed annually by the Finance Director and is attached to this report (Exhibit 1). The Policy has been developed in accordance with standards and policies established by the California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers of the United States and Canada (APTUSC). 22-880
67 The Investment Policy requires staff to submit quarterly Investment Reports to the City Council. Investment Reports include investment summaries with the market value of securities and a statement confirming that current liquidity is adequate to meet expenditures for the next six months, as required by the California Government Code Section 53646.

Attachment 1 contains the City’s Investment Policy which is presented to the Council for annual approval. There are no changes to the policy recommended for the Council’s consideration.

FISCAL IMPACT:

This is an information report with no fiscal impact.

ATTACHMENTS:

1. Investment Policy

68 69
70 71
72 73
74 75
76 77
78 79
80 81
82 83
84 85
86 87
88 89
90 CO

NSENT CALENDAR

AGENDA ITEM

6. 22-885
91 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 11, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Michael Roberts, Public Works Director/City Engineer SUBJECT: Acceptance of the Willow/Palm Sidewalk Connector Project RECOMMENDED ACTION:

Adopt a resolution accepting the Willow/Palm Sidewalk Connector Project contract with R&S Construction Management as complete for a total amount of $ 1,604,303 and authorizing the filing of the Notice of Completion with the Contra Costa County Recorder’s Office.

BACKGROUND:

The Willow/Palm Sidewalk Connector Project was awarded at the April 25, 2023, City Council meeting to R&S Construction Management for the low bid amount of $1,488,622 with provisions for a 10% contingency of up to $148,862 for a total authorized expenditure amount of $1,637,484 . R&S Construction Management began work shortly thereafte r.

The scope of work consisted of installing sidewalk on Willow and Palm Avenue leading to the Hercules Transit Center, which has been a top priority of the City for many years.

ANALYSIS:

R&S Construction Management completed the sidewalk last fall and inst allation of streetlights was completed March of 2024. The work was completed in accordance with the plans and specifications to the satisfaction of the City Engineer. The final cost to complete the project was $1,604,303 within the authorized budget. 22-885
92 With the installation of 0.5 miles of sidewalk and streetlights along Willow Avenue and Palm Avenue, t he project closed the pedestrian network gap between the Hercules Transit Center (HTC) and the neighborhoods in the northeast Hercules and unincorporated County. The project has also created a safe pedestrian connection under the BNSF Railroad undercrossing along Palm Ave.

It is recommended the Willow/Palm Sidewalk Connector Project be approved at this time so the Notice of Completion can be filed with the Contra Costa County Recorder’s Office to allow final payment to be made to the contractor.
93 FISCAL IMPACT:

The vast majority of this project was funded through grants provided by the City’s funding partners, including an initial $1.058M Measure J grant from CCTA and a $52,800 TDA Article 3 grant from MTC. After the construction contract was awarded, a $100K contribution from BART was secured, which was approved in the adopted FY 23/24 Budget. This allowed the amount of SB1 monies used for the project to be reduce d to $143,503.

Change orders in the amount of $1 15,681 were necessary to complete the project , the most significant being the guard railing removal and installation of handrail on Palm Avenue approaching Sycamore Avenue.

The final expenditure for the Willow/Palm Sidewalk Connector Project is as follows:

ATTACHMENTS:

Attach 1- Resolution
Attach 2- Notice of Completion
Attach 3- Project Location Map

Funding Sources Account Numbers Amount
Measure J Grant 296-5432-643.20-00 $1,058,000
TDA Article 3 Grant 296-5432-642.06-00 $52,800
ARPA/General Fund 300-5432-642-05-00 $250,000
SB1 268-5432-642-05-20
$143,503

BART 266-3005-642-05-00 $100,000
Total $1,604,303
94 RESOLUTION NO. 24-_____

RESOLUTION ACCEPTING THE WILLOW/PALM SIDEWALK CONNECTOR

PROJECT CONTRACT WITH R&S CONSTRUCTION MAN AGEMENT AS
COMPLETE FOR A TOTAL AMOUNT OF $ 1,604,303 AND AUTHORIZING THE

FILING OF THE NOTICE OF COMPLETION WITH THE CONTRA COSTA COU NTY RECORDER’S OFFICE

WHEREAS, the Willow/Palm Sidewalk Connector Project contract was awarded to R&S Construction Management for the low bid amount of $ 1,488,622 with a 10% contingency of up to $148,862 at the April 25, 2023 Council meeting; and

WHEREAS, R&S Construction Management began the work shortly thereafter; and

WHEREAS, the project was completed for $ 1,604,303 that included change orders in the amount of $1 15,681 necessary to complete the project and enhance pedestrian safety; and

WHEREAS, the project has been completed in accordance with the approved plans and specifications to the satisfaction of the City Engineer; and

WHEREAS, the project is fully funded with Measure J – TLC Grant, TDA Article 3 Grant, ARPA/General Funds, BART Funds and SB 1 “Road Repair and Accountability Act” monies, which is a return to source investment in Hercules infrastructure; and

WHEREAS, the Notice of Completion must be filed with the Contra Costa Recorder’s Office to allow final payment to be made to the contrac tor.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that the City Council hereby accepts the Sycamore Avenue Pavement Rehabilitation Project contract with R&S Construction Management as complete for a total amount of $1,604,303 and authorizes the filing of the Notice of Completion , attached hereto with the Contra Costa County Recorder’s Office.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 11th day of June 2024 by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

___________________________
Dan Romero, Mayor
ATTEST:

Eibleis Melendez, City Clerk
95 NOTICE OF COMPLETION
Recording Requested By:

City of Hercules

When Recorded Mail To:

City Clerk
City of Hercules
111 Civic Drive
Hercules, CA 94547
SPACE ABOVE THIS LINE IS FOR RECORDER’S USE

NOTICE OF COMPLETION
Civil Code §§ 8182, 8184, 9204, and 9208

NOTICE IS HEREBY GIVEN THAT:

1. The undersigned is the Owner or agent of the Owner of the Project described below.

2. Owner’s full name is __CITY OF HERCULES______________________.

3. Owner’s address is __111 CIVIC DRIVE, HERCULES, CA 94547_______.

4. The nature of Owner’s interest in the Project is:
_X_ Fee ownership __ Lessee __ Other:________________________

5. Construction work on the Project performed on Owner’s behalf is generally described as follows: Willow/Palm Sidewalk Connector Project

6. The name of the original Contractor for the Project is:

R&S Construction Management
1555 Burke Ave, Suite 1, San Francisco, CA 94124

7. The Project was completed on: __June 11, 2024__________________.

8. The Project is located at:

Willow Ave from the Hercules Transit Center to Palm Avenue, and Palm Avenue from Willow Avenue to Sycamore Avenue.

Verification: In signing this document, I, the undersigned, declare under penalty of perjury under the laws of the State of California that I have read this notice, and I know and understand the contents of this notice, and that the facts stated in this notice are true and correct.
______________________ ________________________________________ Date and Place Signature of Person Signing on Behalf of Owner

MIKE ROBERTS,
PUBLIC WORKS DIRECTOR/CITY ENGINEER_
Print Name and Title
96 /0/1/2 /1/3/4 /5/6 /5 /7 /8 /9/10/8/11/12/13 /14 /15 /16 /17 /7 /18 /19 /20 /9 /9 /13 /5 /6 /21 /7/18/13/22 /18 /22 /13 /23 /22 /15 /19 /24 /25 /2 /i255 /27 /22 /22 /7
97 DISCUSSION AND/OR ACTION

AGENDA ITEMS

1. 22-884

2. 22-870

98 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 11, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Eibleis Melendez, City Clerk
SUBJECT: Remote Public Participation Update
RECOMMENDED ACTION:

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

BACKGROUND:

On May 28th, I provided an update at the City Council meeting, on the City’s current policy of the temporary suspension of public comment via Zoom as well as an update on how surrounding agencies are currently managing remote public comment in their public meetings. This was in response to a request that was originally made by Vice Mayor Bailey that Council approved at the January 9th meeting.

Council requested that staff bring the item back to Council when all five Council members are in attendance and provide an update on the same Cities that were surveyed in January.

FISCAL IMPACT:

There is no fiscal impact.
22-884
99 ATTACHMENTS:

1. Staff Report – 5/28/24 City Council Meeting

2. Remote Participation Survey of Local Agencies – 5/2024

3. Staff Report – 2/13/24 City Council Meeting

4. Remote Participation Survey of Local Agencies – 1/2024

100

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of May 28, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Eibleis Melendez, City Clerk
SUBJECT: Remote Public Participation Update
RECOMMENDED ACTION:

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

BACKGROUND:

On February 13th, I provided an update at the City Council meeting, on the City’s current policy of the temporary suspension of public comment via Zoom as well as an update on how surrounding agencies are currently managing remote public comment in their public meetings. This was in response to a request made by Vice Mayor Bailey that Council approved at the January 9th meeting. Staff was directed to come back to Council in May and provide an update on the same Cities that were surveyed in January.

The Brown Act (CA Government Code Sections 54950 et seq.) requires that the City Council conduct business in open, public , and noticed meetings. Before Covid -19 Pandemic, all City Council meetings were held in person and there were no options for remote participation. During COVID -19, the City implemented technology upgrades to accommodate remote participation for members of the public. The City started using the Zoom platform as a format for the public to engage in public meetings remotely and safely.

The City Council, Planning Commission, Finance Commission and the Community & Library Service Commission meetings were organized to provide the public with remote participation options.
101
In late 2023, cities in the surrounding area and throughout the State experienced remote participants who made racist, homophobic, and antisemitic comments via Zoom, known as “Zoom Bombing”. Out of an abundance of caution, s taff recommended, and the City Council concurred, that remote participation be suspended temporarily. During the suspension of remote participation, the public has been able to listen and watch via Zoom, but unable to provide public comment remotely. Currently, if a member of the public would like to provide a public comment, they need to attend the meeting in -person or submit their public comment via email to the City Clerk.

ANALYSIS:

In January 2024, t he City Clerk’s office surveyed surrounding agencies (Attachment 4).

Out of twenty-four (24) cities, twelve (12) cities either no longer offer the option to attend City Council meetings remotely or have not returned to remote participation due to the “Zoom Bombing” that their city experienced. Six (6) cities offer a hybrid option with limitations, such as limiting g eneral public comment to in person attendees . The remaining six (6) cities, either never suspended remote participation or started offering the option again after the first of the year. At the February 13 th meeting, the potential opportunities and obstacles listed below in allowing remote participation via Zoom, were considered.

Opportunities:
 Allows for an additional means for the public to communicate with their elected officials.
 Provides greater accessibility to citizens who have mobility or childcare issues and are unable to attend a public meeting in person.
 Having the ability to watch a meeting and comment remotely may increase public participation.

Obstacles:
 The addition of remote public comments makes public entities vulnerable to nefarious groups outside the jurisdiction, possibly out of the State, that mount coordinated attacks to spread hate speech.
 Hate groups actively seek out opportunities to use the broadcast of public meetings as a forum for spreading hate and dissention.
 The use of Zoom for public comment creates challenges in controlling disruptive behavior during public meetings since participants on Zoom can be anonymous.

Zoom participation can be from anywhere in the world.

The following are a list of hybrid options to consider moving forward:
 Return to how the City previously accepted remote public comment before the suspension was implemented.
102
 Accept remote public comment only on items on the agenda.  Accept public comment both in person and remotely but the time the public is allowed to speak would be reduced from the three (3) minutes that is currently in place.
 Continue to provide a hybrid option to watch and listen to the meeting but public comment can only be received in person or via email.

The City Clerk’s office surveyed the same Cities that participated in the Remote Participation Survey of Local Agencies survey in Januar y. T he survey (attachment 2) shows that there ha ve been no change in their approach to remote public participation since the original survey was done in January.

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

During the remote participation suspension period, October 2023 to present, the City has not received complaints from the public regarding the modified participation policy.

FISCAL IMPACT:

There is no fiscal impact.

ATTACHMENTS:

1. Remote Participation Survey of Local Agencies – 5/2024

2. Staff Report – 2/13/24 City Council Meeting

3. Remote Participation Survey of Local Agencies – 1/2024

103
Remote Participation Survey of Local Agencies (As of May 20, 2024) Agency/ Body Targeted
Remote Participation Status
(As of January 1, 2024)
Remote Participation Status (As
of May 20, 2024) Notes
City of Alameda Hy brid with limitations No Change
Remote Public Comment on Agenda
Items Only
City of Albany Hybrid with limitations No Change
City of Antioch Discontinued Remote Public Comment No Change City of Berkeley Never Suspended Remote Participation No Change City of Brentwood Hybrid with limitations No Change
Remote Public Comment on Agenda
Items Only
City of Concord Discontinued Remote Pubic Comment No Change City of Danville Discontinued Remote Pubic Comment No Change City of Dublin Never Suspended Remote Participation No Change City got Zoom Bombed April 2nd, item
went to Council May 7th, Council voted
to continue remote participation
City of El Cerrito Discontinued Remote Pubic Comment No Change City of Fremont Discontinued Remote Pubic Comment No Change City of Hayward Hybrid with limitations No Change
City of Lafayette Never Suspended Remote Participation No Change City of Livermore Discontinued Remote Pubic Comment No Change City of Martinez Never Suspended Remote Participation No Change City of Newark Discontinued Remote Pubic Comment No Change City of Oakland Never Suspended Remote Participation No Change City of Oakley Discontinued Remote Pubic Comment No Change City of Orinda Discontinued Remote Pubic Comment No Change City of Piedmont Hybrid with limitations No Change
City of Pinole Hybrid with limitations No Change
City of Pittsburg Discontinued Remote Pubic Comment No Change City of Pleasanton Discontinued Remote Pubic Comment No Change Public Comment only if Council Member
is Remote
City of Richmond Never Suspended Remote Participation No Change City of San Leandro Hybrid with limitations No Change
City of San Ramon Discontinued Remote Pubic Comment No Change 104
Remote Participation Survey of Local Agencies (As of May 20, 2024) 105

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of February 13, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Eibleis Melendez, City Clerk
Patrick Tang, City Attorney

SUBJECT: Remote Public Participation
RECOMMENDED ACTION:

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

BACKGROUND:

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

The Brown Act (CA Government Code Secti ons 54950 et seq.) requires that the City Council conduct business in open, public, and noticed meetings. Before Covid -19 Pandemic, all City Council meetings were held in person and there were no options for remote participation. During COVID -19, the City implemented technology upgrades to accommodate remote participation for members of the public. The City started using the Zoom platform as a format for the public to engage in public meetings remotely and safely.

The City Council, Planning Commission, Fi nance Commission and the Community & Library Service Commission meetings were organized to provide the public with remote participation options.

In late 2023, cities in the surrounding area and throughout the State experienced remote participants who made racist, homophobic, and antisemitic comments via Zoom, known as “Zoom Bombing”. Out of an abundance of caution, s taff recommended, and the City 106
Council concurred, that remote participation be suspended temporarily. During the suspension of remote participation, the public has been able to listen and watch via Zoom, but unable to provide public comment remotely. Currently, if a member of the public would like to provide a public comment, they need to attend the meeting in -person or submit their public comment via email to the City Clerk.

ANALYSIS:

The City Clerk’s office surveyed surrounding agencies (Attachment 1). Out of twenty-four (24) cities, twelve (12) cities either no longer offer the option to attend City Council meetings remotely or have not returned to remote participation due to the “Zoom Bombing” that their city experienced. Six (6) cities offer a hybrid option with limitations , such as limiting general public comment to in person attendees . The remaining s ix (6) cities, either never suspended remote participation or started offering the option again after the first of the year. Below is a list of potential opportunities and obstacles in allowing remote participation via Zoom.

Obstacles:

 The addition of remote public comments makes public entities vulnerable to nefarious groups outside the jurisdiction, possibly out of the State, that mount coordinated attacks to spread hate speech.
 Hate groups actively seek out opportunities to use the broadcast of public meetings as a forum for spreading hate and dissention.
 The use of Zoom for public comment creates challenges in controlling disruptive behavior during public meetings since participants on Zoom can be anonymous.

Zoom participation can be from anywhere in the world.

The following are a list of hybrid options to consider moving forward:
 Return to how the City previously accepted remote public comment before the suspension was implemented.
 Accept remote public comment only on items on the agenda.  Accept public comment both in person and remotely but the time the public is allowed to speak would be reduced from the three (3) minutes that is currently in place.
107
 Continue to provide a hybrid option to watch and listen to the meeting but public comment can only be received in person or via email.

During the remote participation suspension period, October 2023 to present, the City has not received complaints from the public regarding the modified participation policy.

FISCAL IMPACT:

There is no fiscal impact.

ATTACHMENTS:

1. Remote Participation Survey of Local Agencies

108
Remote Participation Survey of Local Agencies (As of January 1, 2024) Agency/ Body Targeted Current Zoom Status (As of January 1, 2024) Notes City of Alameda Hy brid with limitations Remote Public Comment on Agenda Items Only City of Albany Hybrid with limitations
City of Antioch Discontinued Remote Public Comment
City of Berkeley Never Suspended Remote Participation
City of Brentwood Hybrid with limitations Remote Public Comment on Agenda Items Only City of Concord Discontinued Remote Pubic Comment
City of Danville Discontinued Remote Pubic Comment
City of Dublin Never Suspended Remote Participation
City of El Cerrito Discontinued Remote Pubic Comment
City of Fremont Discontinued Remote Pubic Comment
City of Hayward Hybrid with limitations
City of Lafayette Never Suspended Remote Participation
City of Livermore Discontinued Remote Pubic Comment
City of Martinez Never Suspended Remote Participation
City of Newark Discontinued Remote Pubic Comment
City of Oakland Never Suspended Remote Participation
City of Oakley Discontinued Remote Pubic Comment
City of Orinda Discontinued Remote Pubic Comment
City of Piedmont Hybrid with limitations
City of Pinole Hybrid with limitations
City of Pittsburg Discontinued Remote Pubic Comment
City of Pleasanton Discontinued Remote Pubic Comment
Public Comment only if Council Member is
Remote
City of Richmond Never Suspended Remote Participation
City of San Leandro Hybrid with limitations
City of San Ramon Discontinued Remote Pubic Comment
109
D

ISCUSSION AND/OR ACTION
A

GENDA ITEM

2. 22-870
110

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 11, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Christopher Roke, Parks and Recreation Director SUBJECT: FY 23-24 Co-sponsored Special Events Update and Proposed Co - Sponsored Special Events for FY 24-25
RECOMMENDED ACTION:

Staff recommends that the City Council:

1. Receive an update on special events co-sponsored by the City and the Bay Front Chamber of Commerce during the FY 23-24

2. Authorize four City-Chamber co-sponsored special events for FY 24-25

3. Consider authorizing a fifth co -sponsored special event ( Lunar New Year Celebration) and allocating an additional $10,000 for this purpose EXECUTIVE SUMMARY:

As directed by City Council, staff worked with the Bayfront Chamber of Commerce to collaborate on a variety of S pecial Events to be held in Hercules during FY 23-24. The events included National Night Out, the Bay Front Festival, a Crab Feed, and the Cultural Festival.

BACKGROUND:

In FY 21-22, the City Council budgeted $ 100,000 for Special Events to give the community something to celebrate as we started to recover from the pandemic. With the funding, the City Council directed staff to partner with the City of Pinole to bring a Fireworks Celebration to the community and allocated $25,000 for an agreement with the Bay Front Chamber of Commerce to lead a series of co-sponsored special events. 22-870
111
In FY 22-23, the City Council allocated $50,000 for a Fireworks Celebration and $35,000 to again work with the Chamber of Commerce to produce a series of co-sponsored events that included National Night Out , the Bay Front Festival, Bottles and Bites , and the Cultural Festival.

In FY 23-24, the City Council allocated $50,000 for Fireworks, and another $35,000 for co-sponsored special events with the Chamber. Council requested staff to consider ways to get the other City Recognized Nonprofit groups involved through co-sponsored special events. In response, staff worked with the Chamber to swap the Bottles and Bites event with a Crab Feed event to allow other nonprofit groups to generate funds through ticket sales.

Overall, the special events for FY 23-24 were very well attended. Although the Fireworks Celebration was not a co-sponsored special activity, it drew a crowd of over 5,000 people to the Bayfront. National Night Out drew over 2,000 participants at Refugio Valley Park.

The Bayfront Festival saw over 3,000 people at the Bayfront, and the Crab Feed sold 245 tickets to benefit several nonprofit groups through ticket sales. While the numbers are still being compiled for the 2nd Annual Cultural Festival, the turnout was fantastic. More details on these co-sponsored special events can be found on the attached recaps for each event (Attachment 1).

ANALYSIS:

The City of Hercules is fortunate to have worked with the Bayfront Chamber the past few years to bring a series of events to Hercules. FY 23-24 included National Night Out, the Bayfront Festival, a Crab Feed, and the Cultural Festival. As mentioned above, all these special events were well received and attended by the community.

As we focus on future special events, we ar e reminded that t he Hercules community is very diverse with many members of Asian heritage. For this reason, staff proposes to add a co-sponsored Lunar New Year Celebration to the lineup of special events for next year.

The Lunar New Year is one of the most important holidays in Asian heritage, often celebrated with big family gatherings, gift giving, the eating of symbolic foods, and displays of festive decorations - all focused on bringing good luck for the New Year and celebrating the imminent arrival of spring. Adding a Lunar New Year event to the list of special events would require an additional $10,000 in the proposed FY 24 -25 Annual Budget to co-sponsor the event. Alternatively, the City Council could choose to substitute one of the other proposed events for a Lunar New Year event at no additional cost.

The chart below identifies the recommended co-sponsored special events for FY 24-25.

The Fourth of July Celebration is not included in this list because it is not a co-sponsored special event. Funding for next year’s Fourth of July Celebration has been included in the proposed FY 24-25 Annual Budget.

112

PROPOSED EVENTS DATE CO-SPONSORSHIP CONTRIBUTION
NATIONAL NIGHT OUT (AT REFUGIO VALLEY PARK) Tu 08/06/24 $35,000 for all four events have been included in the proposed FY 24 -25
Annual Budget
BAYFRONT FESTIVAL (AT THE BAYFRONT) Su 10/06/24
CRAB FEED (AT THE COMMUNITY SWIM CENTER) Sa 01/18/25
CULTURAL FESTIVAL (AT REFUGIO VALLEY PARK) Su 06/01/25

RECOMMENDED ADDITIONAL PROPOSED EVENTS DATE CO-SPONSORSHIP CONTRIBUTION LUNAR NEW YEAR (AT THE COMMUNITY SWIM CENTER) Fr 02/09/25 $10,000 (additional) not included in the proposed FY 24-25 Annual Budget

All dates are subject to change.

FISCAL IMPACT:

The proposed FY 24-25 Annual Budget includes $35,000 for four co-sponsored special events. If the City Council would like to add a Lunar New Year Celebration as a fifth co - sponsored special event for the next year, an additional general fund allocation of $10,000 would be required.

ATTACHMENTS:

1. FY 23-24 Co-Sponsored Special Event Update Detail
113

Bay Front Chamber of Commerce
P.O. Box 5283, Hercules, CA 94547

This was the first of four events that the City of Hercules has contracted the Bay Front Chamber to coordinate and run for the community. The Special Events Contract was approved by the City Council during the budget for FY23-24

National Night Out

On August 8th, the Chamber hosted National Night Out Hercules! We were pleasantly surprised by the increase in the turnout from last year’s event. Approximately 2,000 people attended, showing a strong spirit of community.

Present were Chamber directors, Hercules City Manager and Council members, City of Hercules Police officers and RHFD firefighters and a host of non-profit organizations and local businesses, and eight food vendors.

The crowd was largely families. Children played on playground equipment, rode the train, took advantage of free face painting, books, and participated in a myriad of games and activities.

A highlight for many was getting their photos taken on the Hercules PD motorcycle and on the RHFD truck. The train ride was also a favorite, full capacity the entire event.

The event was promoted widely with posters, flyers, outdoor banners, and through many social media platforms.

This event was made possible by sponsorship from the City of Hercules and our chamber members.

EXPENSES
- Marketing 1,250
- Permits 1,355 (health dept & City of Hercules) - Rentals 1,512 (tables, chairs, pop ups, van, porta potties) - Entertainment 1,447 (train & face painters)
- Supplies 207
- Give Aways 70
- Staff 630
- Volunteers 133
- Insurance 200
- Accounting 150
- Event Coordination 1,500
TOTAL EXPENSES 8,454 (City contribution $6,500) 114

Bay Front Chamber of Commerce
P.O. Box 5283, Hercules, CA 94547

This was the second of four events that the City of Hercules has contracted the Bay Front Chamber to coordinate and run for the community. The Special Events Contract was approved by the City Council during the budget for FY23-24

Bay Front Run & Festival

On October 2nd, the Hercules Education Foundation and Bay Front Chamber hosted the annual Bay Front Run & Festival. Chamber directors, HEF directors and community volunteers were on site to coordinate and manage the event.

Beginning at 10 am with 5k/10k chip timed runs and 1 Mile walk/run, along with a Kids Fun Run, The community got a chance to stretch its legs and breathe the fresh bay air along the Bay Trail. 360 runners registered for the event.

Following the run, the crowd, moved down the street to the festival where Bay Front Blvd. and John Muir Parkway was closed for local entertainment, music, food trucks, vendors, and classic cars. A crowd of approximately 3,000 filled the streets, strolling, dancing, eating, shopping and socializing.

The event was promoted widely with posters, flyers, outdoor banners, and through many social media platforms.

We were able to enhance the festival through funding provided by the City of Hercules.

FESTIVAL EXPENSES
- Stage & Canopy 1,961
- Sound System 600
- Rentals 1,398 (tables, chairs, pop ups, generator, porta potties) - Staff 550
- Health Permit 621
- Face Painter 250
- Insurance 100

TOTAL EXPENSES 5,480 (City contribution $5,000)

115

Bay Front Chamber of Commerce
P.O. Box 5283, Hercules, CA 94547

This was the third of four events that the City of Hercules has contracted the Bay Front Chamber to coordinate and run for the community. The Special Events Contract was approved by the City Council during the budget for FY23-24.

CRAB FEED

On January 20, 2024, the Chamber hosted its annual Crab Feed. Two hundred forty-five people attended the event including Chamber directors, Council members, and a host of non-profit organizations and local businesses.

Those who attended were treated to a magnificent buffet that included a salad bar, rotisserie chicken, alfredo pasta, red meat pasta, steamed rice and more. Members of the Hercules High School Kiwanis Club (Kiwins) helped out the event by serving buckets of crab to each table (among other things).

The Crab Feed was a big success. One of the most unique opportunities that came from this event was a fundraiser for any city recognized non-profit organization that wished to participate. For each $75 ticket sold by a city recognized non-profit, they received $25 for their organization.

The event was promoted widely with posters, flyers, outdoor banners, and through many social media platforms.

This event was made possible by sponsorship from both the City of Hercules and Phillips 66.

EXPENSES: Include but are not limited to the following…

Community Center Rental $1,064.00
Catering: Chicken, Pastas, Salad, etc. $1,900.00
Crab $5,560.00
Staff $ 700.00
DJ $ 500.00
Supplies: Tablecloths, paper products, ect. $ 400.00

Donations made to non-profits: $3,050.00
Hercules Library Foundation (12 tickets) $300.00
Hercules Democratic Club (9 tickets) $225.00
Hercules Education Foundation (72 tickets) $1,800.00
Piranhas Swim Team (9 tickets) $225.00
Kiwin Club $500.00

TOTAL EXPENSES: $13,174 (City contribution $2,500.00) 116

Hercules City CouncilJune 11, 2024

Hercules City Council
June 11, 2024