Hercules City Council
June 25, 2024

CITY OF HERCULES

VICTORIA BY THE BAY
LANDSCAPING AND LIGHTING DISTRICT NO. 2002-1

ASSESSMENT ROLL
FISCAL YEAR 2024-25
Assessor's
Parcel
Number
Neighborhood
Amount
404590060 $767.02
404590061 $767.02
404590062 $767.02
404590063 $767.02
404590064 $767.02
404590065 $767.02
404590066 $767.02
404590067 $767.02
404590068 $767.02
404590069 $767.02
404590070 $767.02
404590071 $767.02
404590072 $767.02
404590073 $767.02
404590074 $767.02
404590075 $767.02
404590076 $767.02
404590077 $767.02
404590078 $767.02
404590079 $767.02
404590080 $767.02
404590081 $767.02
404590082 $767.02
404590083 $767.02
404590084 $767.02
404590085 $767.02
404590086 $767.02
404590087 $767.02
404590088 $767.02
404590089 $767.02
404590090 $767.02
404590091 $767.02
404590092 $767.02
404590093 $767.02
404590094 $767.02
404590095 $767.02
404590096 $767.02
404590097 $767.02
404590098 $767.02
404590099 $767.02
404590100 $767.02
404590101 $767.02
404590102 $767.02
404590103 $767.02
404590104 $767.02
404590105 $767.02
404590106 $767.02
404590107 $767.02
404590108 $767.02
404590109 $767.02
404590110 $767.02
404590111 $767.02
404590112 $767.02
404590113 $767.02
Assessor's
Parcel
Number
Neighborhood
Amount
404590114 $767.02
404590115 $767.02
404590116 $767.02
404590117 $767.02
404600001 $767.02
404600002 $767.02
404600003 $767.02
404600004 $767.02
404600005 $767.02
404600006 $767.02
404600007 $767.02
404600008 $767.02
404600009 $767.02
404600010 $767.02
404600011 $767.02
404600012 $767.02
404600013 $767.02
404600014 $767.02
404600015 $767.02
404600016 $767.02
404600017 $767.02
404600018 $767.02
404600019 $767.02
404600020 $767.02
404600021 $767.02
404600022 $767.02
404600023 $767.02
404600024 $767.02
404600025 $767.02
404600026 $767.02
404600027 $767.02
404600028 $767.02
404600029 $767.02
404600030 $767.02
404600031 $767.02
404600032 $767.02
404600033 $767.02
404610001 $767.02
404610002 $767.02
404610003 $767.02
404610004 $767.02
404610005 $767.02
404610006 $767.02
404610007 $767.02
404610008 $767.02
404610009 $767.02
404610010 $767.02
404610011 $767.02
404610012 $767.02
404610013 $767.02
404610014 $767.02
404610015 $767.02
404610016 $767.02
404610017 $767.02
Assessor's
Parcel
Number
Neighborhood
Amount
404610018 $767.02
404610019 $767.02
404610020 $767.02
404610021 $767.02
404610022 $767.02
404610023 $767.02
404610024 $767.02
404610025 $767.02
404610026 $767.02
404610027 $767.02
404610028 $767.02
404610029 $767.02
404610030 $767.02
404610031 $767.02
404610032 $767.02
404610033 $767.02
404610034 $767.02
404610035 $767.02
404610036 $767.02
404610037 $767.02
404610038 $767.02
404610039 $767.02
404610040 $767.02
404610041 $767.02
404620001 $767.02
404620002 $767.02
404620003 $767.02
404620004 $767.02
404620005 $767.02
404620006 $767.02
404620007 $767.02
404620008 $767.02
404620009 $767.02
404620010 $767.02
404620011 $767.02
404620012 $767.02
404620013 $767.02
404620014 $767.02
404620015 $767.02
404620016 $767.02
404620017 $767.02
404620018 $767.02
404620019 $767.02
404620020 $767.02
404620021 $767.02
404620022 $767.02
404620023 $767.02
404620024 $767.02
404620025 $767.02
404620026 $767.02
404620027 $767.02
404620028 $767.02
404620029 $767.02
404620030 $767.02
04/15/24
C-5
230

CITY OF HERCULES

VICTORIA BY THE BAY
LANDSCAPING AND LIGHTING DISTRICT NO. 2002-1

ASSESSMENT ROLL
FISCAL YEAR 2024-25
Assessor's
Parcel
Number
Neighborhood
Amount
404620031 $767.02
404620032 $767.02
404620033 $767.02
404620034 $767.02
404620035 $767.02
404620036 $767.02
404620037 $767.02
404620038 $767.02
404620039 $767.02
404620040 $767.02
404620041 $767.02
404620042 $767.02
404620043 $767.02
404620044 $767.02
404620045 $767.02
404620046 $767.02
404620047 $767.02
404620048 $767.02
404620049 $767.02
404620050 $767.02
404620051 $767.02
404620052 $767.02
404620053 $767.02
404620054 $767.02
404620055 $767.02
404620056 $767.02
404620057 $767.02
404620058 $767.02
404620059 $767.02
404640001 $767.02
404640002 $767.02
404640003 $767.02
404640004 $767.02
404640005 $767.02
404640006 $767.02
404640007 $767.02
404640008 $767.02
404640009 $767.02
404640010 $767.02
404640011 $767.02
404640012 $767.02
404640013 $767.02
404640014 $767.02
404640015 $767.02
404640016 $767.02
404640017 $767.02
404640018 $767.02
404640019 $767.02
404640020 $767.02
404640021 $767.02
404680001 $767.02
404680002 $767.02
404680003 $767.02
404680004 $767.02
Assessor's
Parcel
Number
Neighborhood
Amount
404680005 $767.02
404680006 $767.02
404680007 $767.02
404680008 $767.02
404680009 $767.02
404680010 $767.02
404680011 $767.02
404680012 $767.02
404680013 $767.02
404680014 $767.02
404680015 $767.02
404680016 $767.02
404680017 $767.02
404680018 $767.02
404680019 $767.02
404680020 $767.02
404680021 $767.02
404680022 $767.02
404680023 $767.02
404680024 $767.02
404680025 $767.02
404680026 $767.02
404680027 $767.02
404680028 $767.02
404680029 $767.02
404680030 $767.02
404680031 $767.02
404680032 $767.02
404680033 $767.02
404680034 $767.02
404680035 $767.02
404680036 $767.02
404680037 $767.02
404680038 $767.02
404680039 $767.02
404680040 $767.02
404680041 $767.02
404680042 $767.02
404680043 $767.02
404680044 $767.02
404680045 $767.02
404680046 $767.02
404680047 $767.02
404680048 $767.02
404680049 $767.02
404680050 $767.02
404680051 $767.02
404680052 $767.02
404680053 $767.02
404740001 $767.02
404740002 $767.02
404740003 $767.02
404740004 $767.02
404740005 $767.02
Assessor's
Parcel
Number
Neighborhood
Amount
404740006 $767.02
404740007 $767.02
404740008 $767.02
404740009 $767.02
404740010 $767.02
404740011 $767.02
404740012 $767.02
404740013 $767.02
404740014 $767.02
404740015 $767.02
404740016 $767.02
404740017 $767.02
404740018 $767.02
404740019 $767.02
404740020 $767.02
404740021 $767.02
404740022 $767.02
404740023 $767.02
404740024 $767.02
404740025 $767.02
404740026 $767.02
404740027 $767.02
404740028 $767.02
404740029 $767.02
404740030 $767.02
404740031 $767.02
404740032 $767.02
404740033 $767.02
404740034 $767.02
404740035 $767.02
404740036 $767.02
404740037 $767.02
404740038 $767.02
404740039 $767.02
404740040 $767.02
404740041 $767.02
404740042 $767.02
404740043 $767.02
$647,121.48
04/15/24C-6
231

PUBLIC HEARINGS

AGENDA ITEM

2. 22-899

232
1 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 25, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood, AICP, Community Development Director SUBJECT: Public Hearing to amend and restate the City of Hercules’ participation in the Statewide Community Infrastructure Program (SCIP) and consideration of a SCIP application from D.R. Horton for the Owl Ranch residential project.

RECOMMENDED ACTION:

Staff recommends that the City Council adopt Resolution No. 24-XX (Attachment 1), an Amended and Restated Resolution making certain findings and authorizing certain actions necessary for the City of Hercules to confirm and expand its participation in SCIP and finding the action exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).

Staff also recommends that the City Council adopt Resolution No. 24-XX (Attachment 2) authorizing the City Manager to appr ove the SCIP application from D.R. Horto n, dated March 29, 2024 (Attachment 3) and finding the action exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3).

EXECUTIVE SUMMARY:

The proposed Amended and Restated Resolution authorizes the California Statewide Communities Development Authority ( CSCDA) to accept applications from owners of property within the City’s planning jurisdiction to apply for tax -exempt financing of public capital improvements and development related fees through the Statewide Community Infrastructure Program (SCIP).
22-899
233
2 The SCIP program has been expanded to include , among other things, community facilities districts (“CFDs”) , a type of special tax district formed when property owners within a geographic area agree to impose a tax on property in order to fund infrastructure improvements or services . The proposed Resolution amends and restates the City’s participation in SCIP to reflect updates to the program.

The Resolution also maintains the current requirement that all SCIP applications be reviewed by the City Council and that the City Council authorize the City Manager to approve or deny the application. It also authorizes CSCDA to form assessment districts and community facilities districts within our City’s bound aries, conduct assessment and special tax proceedings, and levy assessments and special taxes against the property of participating owners.

Further, the City Council is requested to review a SCIP application from D.R. Horton for the Owl Ranch residentia l development (Attachment 3) and authorize the City Manager to approve the application.

BACKGROUND:

CSCDA is a joint powers authority sponsored by the League of California Cities and the California State Association of Counties. In total, 530 cities, counties and special districts throughout California are members of CSCDA, including the City of Hercules. SCIP was instituted by CSCDA in 2002 to allow owners of property in participating cities and counties to finance the development -related fees that w ould be payable by property owners upon receiving development entitlements or building permits through a pooled special assessment districts program. SCIP was expanded to include financing of public capital improvements directly in addition to development fees and has now been further expanded to include community facilities districts (“CFDs”) and an option to finance public services in respect of stand-alone bond issues, necessary to support development in the City, as provided for in the proposed Amended and Restated Resolution. Since its inception SCIP has issued over $1 billion in land secured special assessment and CFD bonds for development projects in California.

The City joined SCIP in 2006 and participated in SCIP Series 2007A, with a bond participation par amount in excess of $1.2 million in respect of the Venture Commerce Center project, and SCIP Series 2017A, with a bond participation par amount in excess of $3.4 million in respect of the Muir Pointe project. The City amended the original 2006 SCIP Resolution in 2017 to allow a developer to submit the SCIP application only after the City Council has reviewed and authorized the City Manager to approve or deny the application.
234
3 ANALYSIS:

It is now before the City Council to consider modifications to its SCIP participation to allow financing of fees and facilities through the formation of CFDs in addition to the current assessment district program. With CFDs, developers can finance a broader range of City fees such as the police, fire, library, general City fee and the housing in -lieu fee. It will also allow the developer more flexibility in adjusting tax rates by specific product type, assist in forming separate improvement areas when projects need to be phased, and provide for more facilities to be financed similar in type to the fees.

If a property owner applies to participate in SCIP, and the City approves the application, the selected public capital improvements, facilities and/or development related fees owed to the City will be financed by the issuance of bonds by CSCDA. Property owners, in consultation with the City and the SCIP team, can opt to have CSCDA form either an assessment district or a community facilities district. CSCDA determines whether the project will be included in the SCIP pool program (where no one developer within the SCIP pool is responsible for the payment related to any other project) or, depending on the projected bond sizing and other factors, implemented as a stand -alone financing. In either case, CSCDA will form the appropriate district and impose an assessment or special tax, as applicable, on the owner’s property to repay the portion of the bonds issued to finance public capital improvements, facilities and/or development related fees.

With respect to the financing of development related fees, the property owner will either pay the development fees at the time of permit issuance and will be reimbursed from the SCIP bond proceeds when the SCIP bonds are issued, or the fees will be funded directly from the proceeds of the SCIP bonds. In both cases, the fees are subject to requisition by the City at any time to make authorized fee expenditures, and the City is never at risk for payment of its fees. If the property owner is required to construct improvements to be dedicated to the City, the proposed Amended and Restated Resolution includes a form of acquisition agreement to be used when such improvements are funded with SCIP bond proceeds, which outlines how a developer will be reimbursed for improvements as they are certified complete by the City.

The benefits of SCIP to the property owner include:
 Only property owners who choose to participate in the program will have assessments or special taxes imposed on their property.
 Instead of paying cash for public capital improvements and/or development related fees, the property owner receives low -cost, long-term tax-exempt financing of those fees, freeing up capital for other purposes.
 The property owner can choose to pay of f the assessments or special taxes at any time.
235
4  For home buyers, paying for the costs of public infrastructure through an assessment or special tax is superior to having those costs "rolled" into the cost of the home.

Although the tax bill is higher, the amount of the mortgage is smaller, making it easier to qualify. Moreover, because the assessment/special tax financing is at tax -exempt rates, it typically comes at lower cost than mortgage rates.  Owners of smaller projects, both residential and commercial, can have access to tax- exempt financing of infrastructure. Before the inception of SCIP, only projects large enough to justify the formation of an assessment or community facilities district had access to tax-exempt financing. SCIP can finance projects as low as $500,000, which would not be economical on a stand-alone basis.

The benefits of SCIP to the City include:
 As in conventional assessment district and CFD financing, the City is not liable to repay the bonds issued by CSCDA or the assessments or special taxes, as applicable, imposed on the participating properties.
 CSCDA handles all district formation, district administration, bond issuance and bond administration functions. A participating city, county or special district can provide tax- exempt financing to property owners through SCIP while committing virtually no staff time to administer the program.
 Providing tax -exempt financing helps participating cities and counties cushion the impact of rising public capital improvements costs and developm ent related fees on new development. Many developers rely on assessment district or CFD financing through SCIP in making the decision to purchase land, thereby improving the City’s competitive advantage in attracting new development.
 The availability of financing will encourage developers to pull permits and pay fees in larger blocks, giving the participating city, county or special district immediate access to revenues for public infrastructure, rather than receiving a trickle of revenues stretched out over time. As part of the entitlement negotiation process, the possibility of tax-exempt financing of fees can be used to encourage a developer to pay fees up front.
 In some cases, the assessments or special taxes on successful projects can be refinanced through refunding bonds. Savings achieved through a refinancing may be directed to lower property taxes subject to applicable federal tax limitations.

The proposed Amended and Restated Resolution authorizes CSCDA to accept applications from owners of propert y within our planning jurisdiction to apply for tax - exempt financing of public capital improvements and development related fees through SCIP. It also authorizes CSCDA to form assessment districts and community facilities districts within our City’s bound aries, conduct assessment and special tax proceedings and levy assessments and special taxes against the property of participating owners. The authorization of CSCDA to form assessment districts within the City’s boundaries, conduct assessment proceedings, and levy assessments against the property of 236
5 participating owners previously approved by this City Council would remain in effect. The Amended and Restated Resolution approves the form of an acquisition agreement, attached thereto as Attachment 1 A, to be entered into between the City and the participating property owner/developer, if applicable, to provide the terms and conditions under which financing for public capital improvements will be provided and to establish the procedure for disbursement of bond proceeds to pay for completed facilities. It also authorizes miscellaneous related actions and makes certain findings and determinations required by law.

In addition to the funding of public capital improvements and development related fees, the proposed Amended and Restated Resolution authorizes CSCDA to form community facilities districts within our jurisdiction to levy special taxes to fund public services necessitated by new development projects, if approved by the participating property owner. Simila r to the funding of public capital improvements and development related fees, once an application is received by the participating property owner and approved by the City, CSCDA handles all district formation and district administration. CSCDA will coordinate with the City annually to prepare the budget for the levy, and will levy and collect the special taxes for disbursement to the City when collected. Public services will only be included in a community facilities district formed for a stand-alone project.

Owl Ranch:

A site specific SCIP application has been received from D.R. Horton, requesting approval to utilize SCIP to finance the following development impact fees and improvements for the Owl Ranch residential development:

IMPACT FEES:

Type (water,
sewer, road,
etc.)
Collecting
Local Agency
Fee Recipient
(if different)
Total Amount
of Fee
Amount of
Fee per Unit
Park &
Recreation Fee
City of
Hercules
City of
Hercules
$64,790 $1,705
Transportation
Facilities fee
City of
Hercules
City of
Hercules
$227,126 $5,977
Sewer
Facilities Fee
City of
Hercules
City of
Hercules
$177,802 $4,679
West County
Sub-Regional
Transportation
Mitigation Fee
City of
Hercules
WCCTAC $262,808 $6,916
TOTAL $732,526 $19,277

IMPROVEMENTS:

Description Local Agency Acquiring
Improvements
Amount
Skelly Road – Bulb Out City of Hercules $50,750
237
6 Under the proposed SCIP financing, the average annual assessment for Owl Ranch homebuyers is approximately $13,650.

ENVIRONMENTAL DETERMINATION
The proposed City participation in the expanded SCIP program is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) – the common sense exemption – because the proposed actions would only establish and clarify administr ative processes and would not facilitate new construction or other groundbreaking activities. It can be seen with certainty that there is no possibility that the City’s participation in the SCIP program would result in either a direct physical change to the environment or a reasonably foreseeable indirect physical change to the environment. Further, none of the circumstances described in CEQA Guidelines Section 15300.2 applies.

Similarly, the same exemption (15061(b)(3)) applies to the SCIP application p rovided by D.R. Horton, for the Owl Ranch project. The application details the applicant’s use of the program to finance improvements will not to cause a direct or indirect physical change to the environment.

FISCAL IMPACT OF RECOMMENDATION:

The proposed amendments to the SCIP program give a development team greater flexibility to finance development -related fees. Payment of City fees will continue if the expanded SCIP program is approved, therefore, there is no fiscal impact.

ATTACHMENTS:

Staff Report - SCIP
Attach 1 – Draft Resolution 24-XX, Expanded SCIP Participation Attach 2 – Draft Resolution 24-XX, Owl Ranch SCIP Request Attach 3 – Owl Ranch SCIP Application
Attach 4 - Presentation

238

CITY OF HERCULES RESOLUTION NO. 24-____

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

AUTHORIZING THE CITY TO JOIN THE STATEWIDE COMMUNITY
INFRASTRUCTURE PROGRAM; AUTHORIZING THE CALIFORNIA STATEWIDE

COMMUNITIES DEVELOPMENT AUTHORITY TO ACCEPT APPLICATIONS FROM

PROPERTY OWNERS, CONDUCT SPECIAL ASSESSMENT PROCEEDINGS AND

LEVY ASSESSMENTS AND SPECIAL TAXES AND TO FORM ASSESSMENT

DISTRICTS AND COMMUNITY FACILITIES DISTRICTS WITHIN THE TERRITORY OF THE CITY OF HERCULES; EMBODYING A JOINT C OMMUNITY FACILITIES

AGREEMENT SETTING FORTH THE TERMS AND CONDITIONS OF COMMUNITY FACILITIES DISTRICT FINANCINGS; APPROVING FORM OF ACQUISITION AGREEMENT FOR USE WHEN APPLICABLE; AND AUTHORIZING RELATED

ACTIONS
WHEREAS, the California Statewide Communitie s Development Authority (the “Authority”) is a joint exercise of powers authority, lawfully formed and operating within the State pursuant to an agreement (the “Joint Powers Agreement”) entered into as of June 1, 1988 under the authority of Title 1, Divisi on 7, Chapter 5 (commencing with Section 6500) of the California Government Code (the “JPA Law”), the members of which include numerous cities, counties and local agencies in the State of California, including the City of Hercules (the “City”); and
WHEREAS, the Joint Powers Agreement authorizes the Authority to undertake financing programs under any applicable provisions of State law to promote economic development, the stimulation of economic activity, and the increase of the tax base within the jurisdicti onal boundaries of its members (such members, the “Program Participants”); and
WHEREAS, as one of the Programs under the Joint Powers Agreement, the Authority has established the Statewide Community Infrastructure Program (“SCIP”) to allow the financing of certain public capital improvements to be constructed by or on behalf of property owners for acquisition by the City or another public agency (the “Improvements”) and improvements eligible for funding from certain development impact fees, capacity fees and/or other development related charges (the “Fees”) levied in accordance with the Mitigation Fee Act (California Government Code Sections 66000 and following) and other authority providing for the levy of fees on new development to pay for public capital i mprovements (collectively, the “Fee Act”) through the levy of special assessments pursuant to the Municipal Improvement Act of 1913 (Streets and Highways Code Sections 10000 and following) (the “1913 Act”) and the issuance of improvement bonds (the “Improvement Bonds”) under the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (the “1915 Act”) upon the security of the unpaid special assessments; and
WHEREAS, the “Mello-Roos Community Facilities Act of 1982,” being Chapter

2.5, Part 1, Division 2, Title 5 (beginning with Section 53311) of the Government Code of the State (the “Mello-Roos Act”) is an applicable provision of State law available to, 239

among other things, finance public improvements and public services (“Services ”) necessary to meet increased demands placed upon local agencies as a result of development; and
WHEREAS, the Authority also uses SCIP to allow the financing of Fees and Improvements through the levy of special taxes and the issuance of special tax bonds (the “Special Tax Bonds” and, together with the Improvement Bonds, the “Local Obligations”) under the Mello -Roos Act upon the security of the special taxes and to allow the financing of Services through the levy of special taxes under the Mello Roos Act; and
WHEREAS, the City desires to allow the owners of property being developed within its jurisdiction (“Participating Developers”) to participate in SCIP and to allow the Authority to conduct proceedings and to form community facilities districts (“CFDs”) a nd to issue Local Obligations under the Mello -Roos Act, as well as to conduct assessment proceedings to form assessment districts (“Assessment Districts”) under the 1913 Act and to issue Local Obligations under the 1915 Act, to finance Fees levied on such properties and Improvements, provided that such Participating Developers voluntarily agree to participate and consent to the levy of the assessments or special taxes, as applicable; and
WHEREAS, the City desires to allow the Participating Developers to par ticipate in SCIP and to allow the Authority to conduct proceedings and to form CFDs to levy special taxes to finance Services, provided that such Participating Developers voluntarily agree to participate and consent to the levy of such special taxes and th at such CFDs are not pooled together with projects in other jurisdictions; and WHEREAS, from time to time when eligible property owners within the jurisdiction of the City elect to be Participating Developers, the Authority will conduct proceedings under t he 1913 Act and the Mello -Roos Act and issue Local Obligations under the 1915 Act and the Mello -Roos Act to finance Fees and Improvements and, at the conclusion of such proceedings, will levy assessments or special taxes, as applicable on such property within the territory of the City; and WHEREAS, both the Authority and the City are “local agencies” under the Mello - Roos Act; and
WHEREAS, the Mello-Roos Act permits two or more local agencies to enter into a joint community facilities agreement to exercise a ny power authorized by the Mello - Roos Act; and
WHEREAS, the City desires to enter into such an agreement with the Authority to authorize the Authority to form CFDs from time to time within the territorial limits of the City to finance Fees, Improvements an d Services necessitated by new development; and
240

WHEREAS, the City has previously presented Resolution No. 06 -134 of the City Council of the City of Hercules, authorizing the City to join the Statewide Community Infrastructure Program; authorizing the Calif ornia Statewide Communities Development Authority to accept applications from property owners, conduct special assessment proceedings and levy assessments within the territory of the City of Hercules; and authorizing related actions (the “Original Resolution”), and such Original Resolution was adopted on October 24, 2006; and
WHEREAS, the City has previously presented Resolution No. 17-039 of the City Council of the City of Hercules, amending the prior Resolution No. 06 -134 authorizing the City to join the Statewide Community Infrastructure Program; authorizing the California Statewide Communities Development Authority to accept applications from property owners, conduct special assessment proceedings and levy assessments within the territory of the City of Hercules; approving a form of acquisition agreement for use when applicable; and authorizing related actions (the “Amended Resolution”), and such Amended Resolution was adopted on June 13th, 2017; and
WHEREAS, the City now wishes to amend and restate the Amended Resolution; and
WHEREAS, the City Council has reviewed a proposed form of Resolution of Intention to be adopted by the Authority in connection with assessment proceedings (the “ROI”), a copy of which is attached hereto as Attachment 1A, and the ter ritory within which assessments may be levied for SCIP (provided that each Participating Developer consents to such assessment) shall be coterminous with the City’s official boundaries of record at the time of adoption of such ROI, and reference is hereby made to such boundaries for the plat or map required to be inc luded in this Amended and Restated Resolution pursuant to Section 10104 of the Streets and Highways Code; and WHEREAS, the City Council has also reviewed a proposed form of Acquisition Agreement (the “Acquisition Agreement”), a copy of which is attached hereto as Attachment 1B, to be approved as to form for use with respect to any Improvements to be constructed and installed by a Participating Developer and for which the Participating Developer r equests acquisition financing as part of its SCIP application; and
WHEREAS, the City will not be responsible for the conduct of any proceedings; the levy or collection of assessments or special taxes or any required remedial action in the case of delinquencies in such assessment or special tax payments; or the issuance, sale or administration of the Local Obligations or any other bonds issued in connection with SCIP; and
WHEREAS, the Authority periodically issues Local Obligations on behalf of the local agency participants in SCIP to provide financing for the Fees and Improvements; and
241

WHEREAS, where the Authority determines a project is eligible for a SCIP pooled issuance, the Authority issues revenue bonds pursuant to the Marks-Roos Local Bond Pooling Act of 1985, consisting of Article 4 (commencing with Section 6584) of Chapter 5, Division 7, Title 1 of the California Government Code (the “Marks-Roos Act”) concurrently with the issuance of Local Obligations, the proceeds of which are used to purchase the Local Obligations; and
WHEREAS, pursuant to Government Code Section 6586.5, notice was published at least five days prior to the adoption of this Amended and Restated Resolution at a public hearing, which was duly co nducted by this City Council concerning t he significant public benefits of SCIP and the financing of the Improvements and the public capital improvements to be paid for with the proceeds of the Fees.

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

Section 1. This Amen ded and Restated Resolution shall constitute full “local approval,” under Section 9 of the Joint Powers Agreement, for the issuance of bonds by the Authority in accordance herewith.

Section 2. City hereby consents to the condu ct of proceedings by the Authority under the Mello Roos Act to form CFDs with boundaries that shall be coterminous with the City’s official boundaries of record at the time of such proceedings or any portion thereof (the “Proposed Boundaries”), and to authorize a special tax and to issue bonds wi th respect thereto; provided that the Participating Developers, who shall be the legal owners of such property at the time of formation of the CFD, execute a written consent to the levy of special tax in connection with SCIP by the Authority and execute a ballot in favor of the formation of such CFD and the Mello -Roos Act.

Section 3. The City hereby consents to the conduct of special assessment proceedings by the Authority in connection with SCIP pursuant to the 1913 Act and the issuance of Local Obligations under the 1915 Act on any property within the Proposed Boundaries; provided, that:
(1) Such proceedings are conducted pursuant to one or more Resolutions of Intention in substantially the form of the ROI; and
(2) The Partici pating Developers, who shall be the legal owners of such property at the time of the formation of the Assessment District, execute a written consent to the levy of assessments in connection with SCIP by the Authority and execute an assessment ballot in favor of such assessment in compliance with the requirements of Section 4 of Article XIIID of the State Constitution.

Section 4. This Amended and Restated Resolution sets forth the terms of a “joint community facilities agreement” (as defined in Section 53316.2 of the M ello Roos Act) between the City and the A uthority. Adoption by the Commission of the Authority 242

of each Resolution of Intention to form a CFD under the Mello -Roos Act to finance City Improvements, City Fees or City Services shall constitute acceptance of the terms hereof by the Authority with res pect to such CFD. This Amended and Restated Resolution and the Authority’s Resolution of Intention for the respective CFDs shall together embody a separate and independent joint community facilities agreement, or a joint agreement to fund services, for ea ch CFD formed by the Authority (the “Joint Agreement”).

Section 5. The City Council hereby finds and determines that this Amended and Restated Resolution and the Joint Agreement are beneficial to the residents/customers of the City and are in the best interests of th e residents of the City, and of the future residents of the area within the proposed CFDs and Assessment Districts. The City hereby finds and declares that the issuance of revenue bonds by the Authority to purchase Local Obligations in connection with SCI P will provide significant public benefits, including without limitation, savings in effective interest rate, bond preparation, bond underwriting and bond issuance costs, and the more efficient delivery of local agency services to residential and commercial development within the City.

Section 6. The City Council shall review any complete SCIP application for the SCIP program and shall authorize the City Manager to approve or deny the application.

Section 7. The Authority has adopted Loca l Goals and Policies as required by Section 53312.7 of the Mello -Roos Act. The City approves the use of those Local Goals and Policies in connection with the formation of CFDs. The City hereby agrees that the Authority may act in lieu of the City under those Local Goals and Policies in forming and administering the CFDs.

Section 8. The Authority has prepared and will update from time to time the “SCIP Manual of Procedures” (the “Manual”), and the City will handle Fee revenues and funds for Improvements for propertie s participating in SCIP in accordance wit h the procedures set forth in the Manual.

Section 9. Pursuant to the Mello -Roos Act and this Amended and Restated Resolution, the Authority may conduct proceedings under the Mello -Roos Act to form the CFDs and to have such CFDs authorize the financing of (i) any or a ll of the facilities and Fees set forth on Attachment 1C, attached hereto and (ii) any or all the Services set forth on Attachment 1D, attached hereto. All of the facilities, whether to be financed directly or through Fees, shall be facilities that have a n expected useful life of five years or longer and are facilities that the City or other local public agencies, as the case may be, are authorized by law to construct, own or operate, or to which they may contribute revenue. The appropriate officials and staff of the City are hereby authorized and directed to cooperate with the Authority and the Authority’s special tax consultant and other consultants to calculate the appropriate level of the special tax to fund the Services for each CFD in connection with initial formation and in connection with the annual levy. Attachment 1C and Attachment 1D may be modified from time to time by written agreement between an authorized representative of the Authority and of the City. The facilities are referred to herein as the “Improvements,” and the Improvements 243

to be owned by the City are referred to as the “City Improvements.” The Fees paid or to be paid to the City are referred to as the “City Fees”. The Services funded are re ferred to as the “City Services”. The fin ancing of the City Services shall only be authorized for stand-alone development projects and Local Obligations may not be issued to fund Services.

Section 10. For Improvements, Fees or Services to be owned, used or provided by another local agency (a “Third Party Loc al Agency”), the Authority will separately identify them in its proceedings and will enter into a joint community facilities agreement with such Third -Party Local Agency as required by the Mello -Roos Act. Each join t community facilities agreement with eac h Third -Party Local Agency will contain a provision that the Third-Party Local Agency will provide indemnification to the City to the same extent that the City provides indemnification to the Third-Party Local Agency under the terms of this Amended and Restated Resolution.

Section 11. The City acknowledges that Improvements and Fees will be funded through a CFD only if they are necessary to meet increased demands placed upon the City as a result of development occurring or expec ted to occur within the proposed CFD and Services will be funded through a CFD only if they are in addition to those provided in the territory of the CFD before the CFD was created and will not supplant existing services. In connection with the formation of each CFD, as may be required by the Authority’s procedures, the City shall certify that such requirements are satisfied in form and substance satisfactory to the Authority.

Section 12. The Authority shall promptly transfer special tax collections for City Services, after payment of its own reasonable admi nistrative costs incurred in the administration of the CFDs, to the City. The Authority will apply the other special tax collections initially as required by the documents under which any Local Obligations are issued; and thereafter, to the extent not pro vided in the Local Obligations documents, may pay its own reasonable administrative costs. The Authority will remit any special tax revenues from any particular CFD remaining after the final retirement of all relat ed Local Obligations to the City and to t he other local agencies in the proportions specified in the Authority’s proceedings. The City will apply any such special tax revenues it receives for authorized City Improvements, City Fees and/or City Services, as applicable, and its own administrative costs only as permitted by respective CFD proceedings and by the Mello -Roos Act. The joint community facilities agreements with each Third-Party Local Agency must require the Third -Party Local Agency to apply the special tax revenues they receive for their authorized Improvements, Fees and/or Services under the CFDs and for their own related administrative costs only as permitted by the Mello-Roos Act.

Section 13. The Authority will administer the CFDs, including employing and paying all consultants, annually levying t he special tax and all aspects of paying and administering the Local Obligations, and complying with all State and Federal requirements appertaining to the proceedings, including the requirements of the United States Internal Revenue Code. The City will c ooperate fully with the Authority in respect of the requirements of the Internal Revenue Code and to the extent information 244

is required of the City to enable the Authority to perform its disclosure and continuing disclosure obligations with respect to the Local Obligations and any revenue bonds, although the City will not participate in nor be considered to be a participant in the proceedings respecting the CFDs (other than as a party to the agreement embodied by this Amended and Restated Resolution) nor wi ll the City be or be considered to be an issuer of the Local Obligations nor any revenue bonds. The Authority is required to obtain a provision equivalent to this paragraph in all joint community facilities agreements with each Third-Party Local Agency.

Section 14. In the event the Authority completes issuance and sale of Local Obligations, and Local Obligation proceeds become available to finance the Improvements, the Authority shall establish and maintain a special fund for e ach development project (the “Acquisition and Construction Fund”). The portion of Local Obligation proceeds which is intended to be utilized to finance the Improvements and Fees shall be deposited in the Acquisition and Construction Fund. The Acquisition and Construction Fund will be available both for City Improvements and City Fees and for the Improvements and Fees pertaining to each Third -Party Local Agency. Subaccounts shall be created as necessary.

Section 15. As respects the Authority and each Third Party Loca l Agency, the City agrees to fully admini ster, and to take full governmental responsibility for, the construction or acquisition of the City Improvements and for the administration and expenditure of the City Fees, as applicable, including but not limited to environmental review, approval of plan s and specifications, bid requirements, performance and payment bond requirements, insurance requirements, contract and construction administration, staking, inspection, acquisition of necessary property interests i n real or personal property, the holding back and administration of retention payments, punch list administration, and the Authority and each Third Party Local Agency shall have no responsibility in that regard. The City reserves the right, as respects each Participating Developer, to require th e Participating Developer to contract with the City to assume any portion or all of this responsibility. The Authority is required to obtain provisions equivalent to this paragraph in the joint community facilities agreement with each Third- Party Local Agency.

Section 16. The City agrees to indemnify and to hold the Authority, its other members, and its other members’ officers, agents and employees, and each Third - Party Local Agency and their officers, agents and employees (collectively, the “Indemnified Parties”) har mless from any and all claims, suits and damages (including costs and reasonable attorneys’ fees) arising out of the design, engineering, construction and installation of the City Improvements and the improvements t o be financed or acquired with the City F ees. The City reserves the right, as respects each Participating Developer, to require the Participating Developer to assume by contract with the City any portion or all of this responsibility. The Authority is required to obtain a provision equivalent t o this paragraph in all joint community facilities agreements with each Third-Party Local Agency naming the City and its officers, agents and employees as Indemnified Parties with respect to each Third -Party Local A gency’s respective 245

Improvements and the i mprovements to be constructed or acquired with each Third- Party Local Agency’s Fees.

Section 17. As respects the Authority and each Third Party Local Agency, the City agrees – once the City Improvements are constructed according to the approved plans and specifications, and the City and the Participating Developer have put in place their agreed arrangements for the funding of maintenance of the City Improvements – to accept ownership of the City Improvements, to take maintenance responsibility for the City Improvements , and to indemnify and hold harmless the Indemnified Parties to the extent provided in the preceding paragraph from any and all claims, etc., arising out of the use and maintenance of the City Improvements. The City reserves the right, as respects the Par ticipating Developer, to require the Participating Developer by contract with the City to assume any portion or all of this responsibility. The Authority is required to obtain a provision equivalent to this paragra ph in all joint community facilities agreements with each Third-Party Local Agency naming the City and its officers, agents and employees as Indemnified Parties.

Section 18. The City acknowledges the requirement of the Mello -Roos Act that if the City Improvements are not completed prior to the adoption by th e Commission of the Authority of the Resolution of Formation of the CFD for each respective development project, the City Improvements must be constructed as if they had been constructed under the direction and supe rvision, or under the authority of, the City. The City acknowledges that this means all City Improvements must be constructed under contracts that require the payment of prevailing wages as required by Section 1720 and following of the Labor Code of the State of California. The Authority makes no representation that this requirement is the only applicable legal requirement in this regard. The City reserves the right, as respects the Participating Developer, to assign appropriate responsibility for complia nce with this paragraph to the Participat ing Developer.

Section 19. The form of the Acquisition Agreement attached hereto as Attachment 1B is hereby approved, and the City Manager or such officer’s designee (each, an “Authorized Officer”) is authorized to execute, and deliver to the Participating Developer, the Acquisition Agreement on behalf of the City in substantially that form, with such changes as shall be approved by the Authorized Officer after consultation with the City Attorney and the Authority’s bond counsel , such approval to be conclusively evidenced by the execution and delivery thereof.

Section 20. After completion of the City Improvements and appropriate arrangements for the maintenance of the City Improvements, or any discrete portion thereof as provided in Section 53313.51 of the Mello -Roos Act and in the Acquisition Agreement, to the satisfaction of the City, and in conjunction with the City’s acceptance thereof, acquisition of the City Improvements shall be undertaken as provided in the Acquisition Agreement.

Section 21. The City hereby consents to the formation of the CFDs in accordance with this Amended and Restated Resolution and consents to the 246

assumption of jurisdiction by the Authority for the proceedings respecting the CFDs with the understanding that the Authority will hereafter take each and every step requi red for or suitable for consummation of the proceedings, the levy, collection and enforcement of the special tax, and the issuance, sale, delivery and administration of the Local Obligations, all at no cost to the C ity and without binding or obligating the City’s general fund or taxing authority.

Section 22. The terms of the Agreement embodied by this Amended and Restated Resolution may be amended by a writing duly authorized, executed and delivered by the City and the Authority, except that no amendment may be made af ter the issuance of the Local Obligations by the Authority that would be detrimental to the interests of the bondholders without complying with all of the bondholder consent provisions for the amendment of the bond resolutions, bond indentures or like instruments governing the issuance, delivery and administration of all outstanding Local Obligations.

Section 23. Except to the extent of the indemnifications extended to each Third Party Local Agency in the Agreement embodied by this Amended and Restated Resolution, and the City’s agreement to take responsibility for and ownership of the City Improvements, no person or entity, including the Participating Developer, shall be deemed to be a third party beneficiary of this Amended and Restated Resolution, and nothing in this Amended and Restated Resolution (either express or implied) is intended to confer upon any person or entity other than the Authority and the City (and their respective successors and assigns) any rights, remedies, obligations or liabilities under or by reason of this Amended and Restated Resolution.

Section 24. The City shall be identified as a third -party beneficiary of all joint community facilities agreements between the Authority and each Third -Party Local Agency to the extent of the indemnification provisions and the provisions whereby each Third-Party Local Agency agrees to take responsibility for and ownership of their Improvements.

Section 25. The appropriate officials and staff of the City are hereby authorized and directed to make SCIP applications available to all prope rty owners who are subject to Fees for new development within the City and/or who are conditioned to install Improvements and/or whose plans for new development within the City necessitate new or increased levels of Services and to inform such owners of th eir option to participate in SCIP; provided, that the Authority shall be responsible for providing such applications and related materials at its own expense. The City shall designate appropriate staff who shall be responsible for coordination with the Aut hority and shall provide the appropriate contact information to the Authority from time to time.

Section 26. The appropriate officials and staff of the City are hereby authorized and directed to execute and deliver such closing certificates, requisitions, agreements and related documents, including but not limited to such documents as may be required by bond counsel in connection with the participation in SCIP of any districts, authorities or other third-party entities entitled to own Improvements and/or to levy and collect Fees 247

on new development to pay for public capital improvements within the jurisdiction of the City, as are reasonably required by the Authority in accordance with the Manual to implement SCIP and to evidence c ompliance with the requirements of federa l and state law in connection with the issuance by the Authority of the Local Obligations and any other bonds for SCIP.

Section 27. This Amended and Restated Resolution shall take effect immediately upon its adoption. The City Clerk of the City of Hercules is hereby authorized and directed to transmit a certified copy of this Amended and Restated Resolution to the Secretary of the Authority. This Amended and Restated Resolution shall remain in force with respect to any Assessm ent District and CFD formed until all Local Obligations have been retired and the authority to levy the special tax conferred by any CFD proceedings and to levy the assessment conferred by any assessment proceedings has ended or is otherwise terminated. The Original Resolution shall remain in force with respect to any SCIP application approved by the City and any Assessment District formed pursuant to its authority until all Local Obligations have been retired and the authority to levy the assessment confer red by any assessment proceedings carried out pursuant to the Original Resolution has ended or is otherwise terminated.

Section 28. The City Council finds that adoption of this Resolution is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines § 15061(b)(3) – the common sen se exemption – because the proposed resolution would only establish and clarify administrative processes and would not facilitate new construction or other groundbreaking activities. It can be seen with certainty that there is no possibility that the actions authorized in this resolution will result in either a direct physical change to the environment or a reasonably foreseeable indirect physical change to the environment. Further, none of the circumstances described in CEQA Guidelines § 15300.2 applies. N o unusual circumstances are present. This determination reflects the City of Hercules’ independent judgment and analysis.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 25th day of June 2024 by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dan Romero, Mayor
ATTEST:

Eibleis Melendez
City Clerk
248

Attachment 1A: Resolution of Intention (ROI)
Attachment 1B: Acquisition Agreement
Attachment 1C: Eligible Facilities & Fees
Attachment 1D: Eligible Services
249

A-1
4155-8093-8767.14

ATTACHMENT 1A TO THE RESOLUTION

FORM OF RESOLUTION OF INTENTION

TO BE ADOPTED BY CSCDA
For Assessment Districts Only
RESOLUTION NO. __SCIP-

RESOLUTION OF INTENT ION OF THE CALIFORNI A STATEWIDE

COMMUNITIES DEVELOPM ENT AUTHORITY TO FIN ANCE CAPITAL

IMPROVEMENTS AND/OR THE PAYMENT OF DEVEL OPMENT RELATED

FEES FOR PUBLIC CAPITAL IMPROVEMENTS IN THE PROPOSED

STATEWIDE COMMUNITY INFRASTRUCTURE PROGR AM ASSESSMENT
DISTRICT NO. ___ ([NAME OF PROJECT]) [CITY OF _________], [COUNTY OF _________] , APPROVING A PROPOS ED BOUNDARY MAP, MAK ING

CERTAIN DECLARATIONS , FINDINGS AND DETER MINATIONS

CONCERNING RELATED M ATTERS, AND AUTHORIZ ING RELATED

ACTIONS IN CONNECTION THEREWITH
WHEREAS, under the authority of the Municipal Improvement Act of 1913 ( the “1913 Act”), being Division 12 (commencing with Sections 10000 and following) of the California Streets and Highways Code ( the “Code”), the Commission ( the “Commission”) of the California Statewide Communities Development Authority ( the “Authority”) intends to finance, through its Statewide Community Infrastructure Program, the payment of certain development impact fees, capacity fees and/or other development related charges for public improvements (the “Improvement Fees”) and/or to finance certain public capital improvements to be constructed by or on behalf of the property owner(s) and to be acquired by the [City/County of __] or another local agency (the “Improvements”) as described in Exhibit A attached hereto and by this reference incorporated herein, all of which are of benefit to the property within the proposed Statewide Community Infrastructure Program Assessment District No. ___ ([name of project]) [City of __________], [County of __________] (the “Assessment District”); WHEREAS, the Commission finds that the land specially benefited by the Improvements and/or the Improvement Fees is shown within the boundaries of the map entitled “Proposed Boundaries of California Statewide Communities Development Authority Statewide Community Infrastructure Program Assessment District No. ___ ([name of project]) [City of __________], [County of __________], State of California,” a copy of which map is on file with the Secretary and presented to this Commission meeting, and determines that the land within the exterior boundaries shown on the map shall be designated “Statewide Community Infrastructure Program Assessment District No. ___ ([name of project]) [City of __________], [County of __________], State of California”; WHEREAS, the [City/County of __] is a member of the Authority and has approved the adoption on its behalf of this Resolution of I ntention and has consented to the levy of the assessments in the Assessment District;
NOW, THEREFORE, BE IT RESOLVED that the Commission of the California Statewide Communities Development Authority hereby finds, determines and resolves as follows:

Section 1. The above recitals are true and correct.
250

A-2
4155-8093-8767.14

Section 2. Pursuant to Section 2961 of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 ( the “1931 Act”), being Division 4 (commencing with Section 2800) of the Code, the Commission hereby declares it s intent to comply with the requirements of the 1931 Act by complying with Part 7.5 thereof.

Section 3. The Commission has designated a registered, professional engineer as Engineer of Work for this project, and hereby directs said firm to prepare the report containing the matters required by Sections 2961(b) and 10204 of the Code, as supplemented by Section 4 of Article XIIID of the California Constitution.

Section 4. The proposed boundary map of the Assessment District is hereby approved and adopted. Pursuant to Section 3111 of the Code, the Secretary of the Authority is directed to file a copy of the map in the office of the County Recorder of the [County of __________] within fifteen (15) days of the adoption of this resolution.

Section 5. The Commission determines that the cost of fin ancing the Improvements and/or the payment of the Improvement Fees shall be specially assessed against the lots, pieces or parcels of land within the Assessment District benefiting from the financing of the Improvements and/or the payment of the Improvement Fees. The Commission intends to levy a special assessment upon such lots, pieces or parcels in accordance with the special benefit to be received by each such lot, piece or parcel of land, respectively, from the financing of the Improvements and/or the payment of the Improvement Fees.

Section 6. The Commission intends, pursuant to subparagraph (f) of Section 10204 of the Code, to provide for an annual assessment upon each of the parcels of land in the proposed Assessment District to pay various costs and expenses i ncurred from time to time by the Authority and not otherwise reimbursed to the Authority which result from the administration and collection of assessment installments or from the administration or registration of the improvement bonds and the various fund s and accounts pertaining thereto.

Section 7. Bonds representing unpaid assessments, and bearing interest at a rate not to exceed twelve percent (12%) per annum, will be issued in the manner provided by the Improvement Bond Act of 1915 (Division 10 of the Code), and the last installment of the bonds shall mature not to exceed twenty - nine (29) years from the second day of September next succeeding twelve (12) months from their date.

Section 8. The procedure for the collection of assessments and advance retirement of bonds under the Improvement Bond Act of 1915 shall be as provided in Part 11.1 thereof.

Section 9. Neither the Authority nor any member agency thereof will obligate itself to advance available funds from its or their own funds or otherwise to cure any deficiency which may occur in the bond redemption fund. A determination not to obligate itself shall not prevent the Authority or any such member agency from, in its sole discretion, so advancing funds.

Section 10. The amount of any surplus remaining in the improvement fund after acquisition of the Improvements and/or payment of Improvement Fees and all other claims shal l be distributed in accordance with the provisions of Section 10427.1 of the Code.

Section 11. To the extent any Improvement Fees are paid to the Authority in cash with respect to property within the proposed Assessment District prior to the date of issuance of the bonds, the amounts so paid shall be reimbursed from the proceeds of the bonds to the property owner or developer that made the payment.
251

A-3
PASSED AND ADOPTED by the California Statewide Communities Development Authority this ___ day of ______, 20__.

I, the undersigned, an Authorized Signatory of the California Statewide Communities Development Authority, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Commission of the Authority at a duly called meeting of the Commission of the Authority held in accordance with law on _____ __ , 20__.

By
Authorized Signatory
California Statewide Communities
Development Authority
252

4155-8093-8767.14

EXHIBIT A TO THE RESOLUTION OF INTENTION

DESCRIPTION OF WORK
The payment of development impact fees, capacity fees and/or other development related charges levied within the Assessment District and/or public capital improvements to be acquired and owned by the [City/County of __] or another local agency upon or for the benefit of parcels within the Assessment District, for the project known as [Project Name], which are authorized to be financed pursuant to the Municipal Improvement Act of 1913 and as to which the owners of the applicable parcels within the Assessment District have applied for participation in SCIP, as more particularly described below.

PAYMENT OF IMPACT FEES, CAPACITY FEES AND/OR OTHER DEVELOPMENT

RELATED CHARGES

CAPITAL IMPROVEMENTS*

*Capital improvements includes funding for incidental costs associated with the capital improvements, including but not limited to, contingency, design, engineering, and construction management [End of Form of Resolution of Intention]
253

B-1 4155-8093-8767.14

ATTACHMENT 1B TO THE RESOLUTION

FORM OF ACQUISITION AGREEMENT
_____________________

CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY

STATEWIDE COMMUNITY INFRASTRUCTURE PROGRAM

ACQUISITION AGREEMENT

BY AND BETWEEN

CITY OF HERCULES
AND
[DEVELOPER]

Dated as of _______, 20__

254

B-2
4155-8093-8767.14

ACQUISITION AGREEMENT
Recitals
A. The parties to this Acquisition Agreement ( the “Agreement”) are the CITY OF HERCULES, ( the “Local Agency”), and [DEVELOPER], a [ indicate type of legal entity ] (the “Developer”).

B. The effective date of this Agreement is ________, 20__.

C. The Developer has applied for the financing of, among other things, certain public capital improvements to be owned by the Local Agency (collectively, the “Acquisition Improvements”) through the California Statewide Communities Development Authority (the “Authority”) and its Statewide Community Infrastructure Program ( “SCIP”). [ For CFDS:][The Acquisition Improvements are to be owned and operated by the Local Agency, and the financing is to be accomplished through a community facilities district which will be administered by the Authority under and pursuant to the Mello-Roos Community Facilities Act of 1982 – California Government Code Sections 53311 and following ( the “Act”).

On [__________], 20[_], the Local Agency entered into a Joint Community Facilities Agreement authorizing the Authority to form a community facili ties district ( the “District”) within the territorial limits of the Local Agency to finance, among other things, the Acquisition Improvements. On [__________], 20[_], the Authority formed the District and, on the same date, a landowner election was conduc ted in which all of the votes were cast unanimously in favor of conferring the District authority on the Authority Commission.] [ For Assessment Districts:][The Acquisition Improvements are to be owned and operated by the Local Agency, and the financing is to be accomplished through an assessment district ( the “District”) which will be administered by the Authority under and pursuant to Municipal Improvement Act of 1913 (Streets and Highways Code Sections 10000 and following) (the “1913 Act”) and the issuance of improvement bonds (the “Local Obligations”) under the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (the “1915 Act” and, together with the “1913 Act” the “Act”).] D. The administration, payment and reimbursement of the capital facilities fees is agreed to be governed by the provisions of the SCIP Manual of Procedures as it may be amended from time to time. The administration, payment and reimbursement of the Acquisition Improvements shall be as provided herein.

E. Under SCIP, the Authority intends to levy [assessments] [special taxes] and issue bonds, in one or more series, to fund, among other things, all or a portion of the costs of the Acquisition Improvements. The portion of the proceeds of the [special taxes and] bonds allocable to the cost of the Acquisition Improvements, together with interest earned thereon, is referred to herein as the “Available Amount”.

F. The Authority will provide financing for the acquisition by the Local Agency of the Acquisition Improvements and the payment of the Acquisition Price (as defined herein) of the Acquisition Improvements from the Available Amount. Attached hereto as Exhibit A is a description of the Acquisition Improvements, which includes authorized discrete and usa ble portions, if any, of the public capital improvements, [pursuant to Section 53313.51 of the Act,] to 255

B-3
4155-8093-8767.14

be acquired from the Developer.

G. The parties anticipate that, upon completion of the Acquisition Improvements and subject to the terms and conditions of this Agreement, the Local Agency will acquire such completed Acquisition Improvements with the Available Amount.

H. Any and all monetary obligations of the Local Agency arising out of this Agreement are the special and limited obligations of the Local A gency payable only from the Available Amount, and no other funds whatsoever of the Local Agency shall be obligated therefor.

I. Attached to this Agreement are Exhibit A (Acquisition Improvements and the Eligible Portions thereof) and Exhibit B (Form of Requisition), which are incorporated into this Agreement for all purposes.

In consideration of Recitals A through I, inclusive, and the mutual covenants, undertakings and obligations set forth below, the Local Agency and the Developer agree as stated below.

Agreement

ARTICLE I

DEFINITIONS; DISTRICT FORMATION AND

FINANCING PLAN
Section 1.01. Definitions. As used herein, the following capitalized terms shall have the meanings ascribed to them below:
“Acceptable Title” means free and clear of all monetary liens, encumbrances, assessments, whether any such item is recorded or unrecorded, and taxes, except those items which are reasonably determined by the Local Agency Engineer not to interfere with the intended use and therefore are not required to be cleared from the title. “Acquisition and Construction Fund” means the “City of Hercules Acquisition and Construction Fund” established by the Authority pursuant to Section 1.03 hereof for the purpose of paying the Acquisition Price of the Acquisition Improvement s and which fund may be held as a subaccount within a fund established under the Authority Trust Agreement and may be commingled with acquisition and construction fund monies available for other public capital improvements.
“Acquisition Improvement” shall have the meaning assigned to such term in the recitals and are further described in Exhibit A.
“Acquisition Price” means the total amount eligible to be paid to the Developer upon acquisition of an Acquisition Improvement as provided in Section 2.03 not to exceed the Actual Cost of the Acquisition Improvement.
“Act” has the meaning ascribed thereto in Recital C.
256

B-4
4155-8093-8767.14

“Actual Cost” means the total cost of an Acquisition Improvement, as documented by the Developer to the satisfaction of the Local Agency and as cer tified by the Local Agency Engineer in an Actual Cost Certificate including, without limitation, (a) the Developer’s cost of constructing such Acquisition Improvement including grading, labor, material and equipment costs, (b) the Developer’s cost of designing and engineering the Acquisition Improvement, preparing the plans and specifications and bid documents for such Acquisition Improvement, and the costs of inspection, materials testing and construction staking for such Acquisition Improvement, (c) the Developer’s cost of any performance, payment and maintenance bonds and insurance, including title insurance, required hereby for such Acquisition Improvement, (d) the Developer’s cost of any real property or interest therein that is either necessary for the construction of such Acquisition Improvement (e.g., temporary construction easements, haul roads, etc.), or is required to be conveyed with such Acquisition Improvement in order to convey Acceptable Title thereto to the Local Agency or its designee, (e) t he Developer’s cost of environmental evaluation or mitigation required for such Acquisition Improvement, (f) the amount of any fees actually paid by the Developer to governmental agencies in order to obtain permits, licenses or other necessary governmental approvals and reviews for such Acquisition Improvement, (g) the Developer’s cost for construction and project management, administration and supervision services for such Acquisition Improvement, (h) the Developer’s cost for professional services related to such Acquisition Improvement, including engineering, accounting, legal, financial, appraisal and similar professional services, and (i) the costs of construction financing incurred by the Developer with respect to such Acquisition Improvement.
“Actual Cost Certificate” means a certificate prepared by the Developer detailing the Actual Cost of an Acquisition Improvement, or an Eligible Portion thereof, to be acquired hereunder, as may be revised by the Local Agency Engineer pursuant to Section 2.03. “Agreement” means this Acquisition Agreement, dated as of [_______________], 20[_]. “Authority” means the California Statewide Communities Development Authority. “Authority Trust Agreement” means a Trust Agreement entered into by the Authority and an Authority Trustee in connection with the issuance of bonds. “Authority Trustee” means the financial institution identified as trustee in an Authority Trust Agreement.
“Available Amount” shall have the meaning assigned to the term in Recital E. “Bonds” means bonds o r other indebtedness issued by the Authority as tax -exempt or taxable bonds or other indebtedness, in one or more series, that is to be repaid by the District. “Code” means the Streets and Highways Code or the Government Code of the State of California, as applicable.
“Developer” means [Developer], its successors and assigns. “Disbursement Request Form” means a requisition for payment of funds from the Acquisition and Construction Fund for an Acquisition Improvement, or an Eligible Portion thereof 257

B-5
4155-8093-8767.14

in substantially the form contained in Exhibit B hereto. “District” shall have the meaning assigned to the term in Recital C. “Eligible Portion” shall have the meaning ascribed to it in Section 2.03 below. “Installment Payment” means an amount equal to ninety percent (90%) of the Actual Cost of an Eligible Portion.
“Local Agency” means the City of Hercules.
“Local Agency Engineer” means the Engineer of the Local Agency or his/her designee who will be responsible for administering the acquisition of the Acq uisition Improvements hereunder.
“Project” means the Developer’s development of the property in the District, including the design and construction of the Acquisition Improvements and the other public and private improvements to be constructed by the Developer within the District. [“Special Taxes” means annual special taxes, and prepayments thereof, authorized by the District to be levied by the Commission of the Authority.] “Title Documents” means, for each Acquisition Improvement acquired hereunder, a grant deed or similar instrument necessary to transfer title to any real property or interests therein (including easements), or an irrevocable offer of dedication of such real property with interests therein necessary to the operation, maintenance, rehabilit ation and improvement by the Local Agency of the Acquisition Improvement (including, if necessary, easements for ingress and egress) and a bill of sale or similar instrument evidencing transfer of title to the Acquisition Improvement (other than said real property interests) to the Local Agency, where applicable.

Section 1.02. Participation in SCIP. The Local Agency has adopted a resolution authorizing the Authority to accept applications from time to time of developers within the Local Agency’s jurisdictional bou ndaries. Developer has applied for financing through SCIP of the Acquisition Improvements, and such application has been approved by the Local Agency. [For CFDs:][The terms of a joint community facilities agreement identifying the Acquisition Improvements and the terms and conditions for the District were embodied within the Local Agency Resolution and were accepted by the Authority with respect to the District.] Developer and Local Agency agree that until and unless such financing is completed by the Authority and the Available Amount is deposited in the Acquisition and Construction Fund (as defined in Section

1.03 below), neither the Developer nor the Local Agency shall have any obligations under this Agreement. Developer agrees to cooperate with the L ocal Agency and the Authority in the completion of SCIP financing for the Acquisition Improvements.

Section 1.03. Deposit and Use of Available Amount.
(a) Upon completion of the SCIP financing, the Available Amount will be deposited by the Authority in the Acquisition and Construction Fund. 258

B-6
4155-8093-8767.14

(b) The Authority will cause the Authority Trustee to establish and maintain an account (the “Acquisition and Construction Fund ”) for the purpose of holding all funds for the Acquisition Improvements. All earnings on amounts in the Acq uisition and Construction Fund shall remain in the Acquisition and Construction Fund for use as provided herein and pursuant to the Authority Trust Agreement. Money in the Acquisition and Construction Fund shall be available to respond to delivery of a Disbursement Request Form and to be paid to the Developer or its designee to pay the Acquisition Price of the Acquisition Improvements, as specified in Article II hereof. Upon completion of all of the Acquisition Improvements and the payment of all costs thereof, any remaining funds in the Acquisition and Construction Fund (less any amount determined by the Local Agency as necessary to reserve for claims against the account) (i) shall be applied to pay the costs of any additional Acquisition Improvements eligible for acquisition with respect to the Project as approved by the Authority and, to the extent not so used, (ii) shall be applied by the Authority [to call Bonds or to reduce Special Taxes as the Authority shall determine][as provided in Section 10427.1 of the Code to pay a portion of the assessments levied on the Project property in the District].

Section 1.04. No Local Agency Liability; Local Agency Discretion; No Effect on Other Agreements. In no event shall any actual or alleged act by the Local Agency o r any actual or alleged omission or failure to act by the Local Agency with respect to SCIP subject the Local Agency to monetary liability therefor. Further, nothing in this Agreement shall be construed as affecting the Developer’s or the Local Agency’s duty to perform their respective obligations under any other agreements, public improvement standards, land use regulations or subdivision requirements related to the Project, which obligations are and shall remain independent of the Developer’s and the Local Agency’s rights and obligations under this Agreement.

ARTICLE II

DESIGN, CONSTRUCTION AND ACQUISITION OF ACQUISITION IMPROVEMENTS Section 2.01. Letting and Administering Design Contracts. The parties presently anticipate that the Developer has awarded and adminis tered or will award and administer engineering design contracts for the Acquisition Improvements to be acquired from Developer.

All eligible expenditures of the Developer for design engineering and related costs in connection with the Acquisition Improvements (whether as an advance to the Local Agency or directly to the design consultant) shall be reimbursed at the time of acquisition o f such Acquisition Improvements. The Developer shall be entitled to reimbursement for any design costs of the Acquisition Improvements only out of the Acquisition Price as provided in Section 2.03 and shall not be entitled to any payment for design costs independent of or prior to the acquisition of Acquisition Improvements.

Section 2.02. Letting and Administration of Construction Contrac ts; Indemnification. State law requires that all Acquisition Improvements not completed prior to the formation of the District shall be constructed as if they were constructed under the direction and supervision, or under the authority, of the Local Agency. In order to assure compliance with those provisions, except for any contracts entered into prior to the date hereof, Developer agrees to comply with any applicable requirements of the Local Agency with respect to the bidding and 259

B-7
4155-8093-8767.14

contracting for the construction of the Acquisition Improvements. The Developer agrees that all the contracts shall call for payment of prevailing wages as required by the Labor Code of the State of California. The Developer’s indemnification obligation set forth in Sect ion 3.01 of this Agreement shall also apply to any alleged failure to comply with the requirements of this Section, and/or applicable State laws regarding public contracting and prevailing wages.

Section 2.03. Sale of Acquisition Improvements. The Developer agrees to sell to the Local Agency each Acquisition Improvement to be constructed by Developer (including any rights-of-way or other easements necessary for the Acquisition Improvements, to the extent not already publicly owned), when the Acquisition Improvement has been constructed and is complete to the satisfaction of the Local Agency for an amount not to exceed the lesser of (i) the Available Amount or (ii) the Actual Cost of the Acquisition Improvement. Exhibit A, attached hereto and incorporated herein, contains a list of the Acquisition Improvements. Portions of an Acquisition Improvement eligible for Installment Payments prior to completion of the entire Acquisition Improvement are described as eligible, discrete and usable portions in Exhibit A (each, an “Eligible Portion”). At the time of completion of each Acquisition Improvement, or Eligible Portion thereof, the Developer shall deliver to the Local Agency Engineer a written request for acquisition, accompanied by an Actual Cost Certificate, and by e xecuted Title Documents for the transfer of the Acquisition Improvement where necessary. In the event that the Local Agency Engineer finds that the supporting paperwork submitted by the Developer fails to demonstrate the required relationship between the subject Actual Cost and eligible work, the Local Agency Engineer shall advise the Developer that the determination of the Actual Cost (or the ineligible portion thereof) has been disallowed and shall request further documentation from the Developer. If th e further documentation is still not adequate, the Local Agency Engineer may revise the Actual Cost Certificate to delete any disallowed items and the determination shall be final and conclusive.

Certain soft costs for the Acquisition Improvements, such as civil engineering, may have been incurred pursuant to single contracts that include work relating also to the private portions of the Project. In those instances, the total costs under such contracts will be allocated to each Acquisition Improvement as approved by the Local Agency Engineer. Where a specific contract has been awarded for design or engineering work relating solely to an Acquisition Improvement, one hundred percent (100%) of the costs under the contract will be allocated to that Acquisition Improvement. Amounts allocated to an Acquisition Improvement will be further allocated among the Eligible Portions of that Acquisition Improvement, if any, in the same proportion as the amount to be reimbursed for hard costs for each Eligible Portion bears to the amount to be reimbursed for hard costs for the entire Acquisition Improvement. Costs will be allocated to each Acquisition Improvement as approved by the Local Agency Engineer. The costs of certain environmental mitigation required to mitigate impacts of the public and private portions of the Project will be allocated to each Acquisition Improvement as approved by the Local Agency Engineer.

In the event that the Actual Cost is in excess of the Available Amount, the Local Agency shall withdraw th e Available Amount from the Acquisition and Construction Fund and transfer said amount to the Developer. In the event that the Actual Cost is less than the Available Amount, the Local Agency shall withdraw an amount from the Acquisition and Construction Fund equal to the Actual Cost, and shall transfer said amount to the Developer. Any amounts then remaining in the Acquisition and Construction Fund shall be applied as provided in Section 1.03. 260

B-8
4155-8093-8767.14

In no event shall the Local Agency be required to pay the Developer more than the amount on deposit in the Acquisition and Construction Fund at the time such payment is requested.

Section 2.04. Conditions Precedent to Payment of Acquisition Price. Payment to the Developer or its designee of the Acquisition Price for an Acquisition Improvement from the Acquisition and Construction Fund shall in every case be conditioned first upon the determination of the Local Agency Engineer, pursuant to Section 2.03, that the Acquisition Improvement satisfies all Local Agency regulations and ordinances and is otherwise complete and ready for acceptance by the Local Agency, and shall be further conditioned upon satisfaction of the following additional conditions precedent:
(a) The Developer shall have provided the Local Agency with lien rele ases or other similar documentation satisfactory to the Local Agency Engineer as evidence that none of the property (including any rights -of-way or other easements necessary for the operation and maintenance of the Acquisition Improvement, to the extent no t already publicly owned) comprising the Acquisition Improvement, and the property which is subject to the [assessments/Special Taxes] of the District, is not subject to any prospective mechanics lien claim respecting the Acquisition Improvements.
(b) All due and payable property taxes, and installments of [assessments/Special Taxes] shall be current on property owned by the Developer or under option to the Developer that is subject to the lien of the District. (c) The Developer shall certify that it is not in default with respect to any loan secured by any interest in the Project.
(d) The Developer shall have provided the Local Agency with Title Documents needed to provide the Local Agency with title to the site, right -of-way, or easement upon which the subject Acquisition Improvements are situated. All such Title Documents shall be in a form acceptable to the Local Agency (or applicable governmental agency) and shall convey Acceptable Title. The Developer shall provide a policy of title insurance as of the date of tr ansfer in a form acceptable to the Local Agency Engineer insuring the Local Agency as to the interests acquired in connection with the acquisition of any interest for which such a policy of title insurance is not required by another agreement between the Local Agency and the Developer. Each title insurance policy required hereunder shall be in the amount equal to or greater than the Acquisition Price.

Section 2.05. SCIP Requisition . Upon a determination by the Local Agency Engineer to pay the Acquisition Price of the A cquisition Improvements pursuant to Section 2.04, the Local Agency Engineer shall cause a SCIP Requisition to be submitted to the Program Administrator. The Program Administrator will review the SCIP Requisition and forward it with instructions to the Authority Trustee and the Authority Trustee shall make payment directly to the Developer of such amount pursuant to the Authority Trust Agreement. The Local Agency and the Developer acknowledge and agree that the Authority Trustee shall make payment strictly in accordance with the SCIP Requisition and shall not be required to determine whether or not the Acquisition Improvements have been completed or what the Actual Costs may be with respect to such Acquisition Improvements. The Authority Trustee shall be en titled to rely on the SCIP Requisition on its face without any further duty of investigation. 261

B-9
4155-8093-8767.14

ARTICLE III

MISCELLANEOUS
Section 3.01. Indemnification and Hold Harmless . The Developer hereby assumes the defense of, and indemnifies and saves harmless the Local Agency, the Authority, and each of its respective officers, directors, employees and agents, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subjected or put, by reason of, or resulting from or alleged to have resulted from the acts or omissions of the Developer or its agents and employees in the performance of this Agreement, or arising out of any contract for the design, engineering and construction of the Acquisition Improvements or arising out of any alleged misstatements of fact or alleged omission of a material fact made by the Developer, its officers, directors, employees or agents to the Authority's underwriter, financial advisor, appraiser, district engineer or bond counsel or regarding the Developer, its proposed developments, its property ownership and its contractual arrangements contained in the official statement relating to the SCIP financing (provided that the Developer shall have been furnished a copy of such official statement a nd shall not have objected thereto); and provided, further, that nothing in this Section 3.01 shall limit in any manner the Local Agency’s rights against any of the Developer’s architects, engineers, contractors or other consultants. Except as set forth i n this Section 3.01, no provision of this Agreement shall in any way limit the extent of the responsibility of the Developer for payment of damages resulting from the operations of the Developer, its agents and employees. Nothing in this Section 3.01 shal l be understood or construed to mean that the Developer agrees to indemnify the Local Agency, the Authority or any of its respective officers, directors, employees or agents, for any negligent or wrongful acts or omissions to act of the Local Agency, Authority, its officers, employees, agents or any consultants or contractors.

Section 3.02. Audit. The Local Agency shall have the right, during normal business hours and upon the giving of ten days’ written notice to the Developer, to review all books and records of the Developer pertaining to costs and expenses incurred by the Developer (for which the Developer seeks reimbursement) in constructing the Acquisition Improvements.

Section 3.03. Cooperation. The Local Agency and the Developer agree to cooperate with respect to the completion of the SCIP financing for the Acquisition Improvements.

The Local Agency and the Developer agree to meet in good faith to resolve any differences on future matters which are not specifically covered by this Agreement.

Section 3.04. General Standard of R easonableness. Any provision of this Agreement which requires the consent, approval or acceptance of either party hereto or any of their respective employees, officers or agents shall be deemed to require that such consent, approval or acceptance not be unreasonably withheld or delayed, unless such provision expressly incorporates a different standard. The foregoing provision shall not apply to provisions in the Agreement which provide for decisions to be in the sole discretion of the party making the decision.

Section 3.05. Third Party Beneficiaries . The Authority and its officers, employees, agents or any consultants or contractors are expressly deemed third party beneficiaries of this Agreement with respect to the provisions of Section 3.01. It is expressly agreed that, except for the Authority with respect to the provisions of Section 3.01, there are no third party 262

B-10
4155-8093-8767.14

beneficiaries of this Agreement, including without limitation any owners of bonds, any of the Local Agency’s or the Developer’s contractors for the Acquisition Improvements and any of the Local Agency’s, the Authority's or the Developer’s agents and employees.

Section 3.06. Conflict with Other Agreements. Nothing contained herein shall be construed as releasing the Developer or the Local Agency from any condition of development or requirement imposed by any other agreement between the Local Agency and the Developer, and, in the event of a conflicting provision, such other agreement shall prevail unless such conflicting provision is specifically waived or modified in writing by the Local Agency and the Developer.

Section 3.07. Notices. All invoices for payment, reports, other communication and notices relating to this Agreement shall be delivered (via mail or electronic mail) to:

If to the Local Agency:

City of Hercules
[Address to come]
[Email to come]
If to the Developer:
[Developer]
[Address to come]
[Email to come]
Either party may change its address by giving notice in writing to the other party.

Section 3.08. Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible.

Section 3.09. Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California.

Section 3.10. Waiver. Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by the other party with the terms of this Agreement.

Section 3.11. Singular and Plural; Gender . As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine.

Section 3.12. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.
263

B-11
4155-8093-8767.14

Section 3.13. Successors and Assigns. This Agreement is binding upon the heirs, assigns and successors-in-interest of the parties hereto. The Developer may not assign its rights or obligations hereunder, except to successors -in-interest to the property within the District, without the prior written consent of the Local Agency.

Section 3.14. Remedies in General . It is acknowledged by the parties that the Local Agency would not have entered into this Agreement if it were to be liable in damages under or with respect to this Agreement or the application thereof, other than for the payment to the Developer of any (i) moneys owing to the Developer hereunder, or (ii) moneys paid by the Developer pursuant to the provisions hereof which are misappropriated or improperly obtained, withheld or applied by the Local Agency.

In general, each of the parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement, except that the Local Agency shall not be liable in damages to the Developer, or to any as signee or transferee of the Developer other than for the payments to the Developer specified in the preceding paragraph. Subject to the foregoing, the Developer covenants not to sue for or claim any damages for any alleged breach of, or dispute which arises out of, this Agreement.

[The remainder of this page intentionally left blank]

264

B-12
4155-8093-8767.14

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written above.

CITY OF HERCULES
By:

Authorized Officer

[DEVELOPER],
a [here indicate type of legal entity]
By:

Signature

Print Name

265

4155-8093-8767.14

Exhibit A to the Acquisition Agreement

DESCRIPTION OF ACQUISITION IMPROVEMENTS AND BUDGETED AMOUNTS

[To be completed based on Final Engineer’s Report/developer’s budget and cash flows]

Funding includes amounts for incidental costs associated with the capital improvements, including, but not limited to, contingency, design, engineering, and construction management.

ACQUISITION IMPROVEMENTS TOTAL AMOUNT*
[_] ............................................................................................................. $[_] [_] ............................................................................................................. $[_]

* Estimated. Acquisition Price will be determined based on Actual Cost as further described in this Acquisition Agreement.
266

4155-8093-8767.14

Exhibit B to the Acquisition Agreement

FORM OF SCIP REQUISITION
To: BLX Group LLC
SCIP Program Administrator
355 South Grand Avenue, Suite 2700
Los Angeles, California 90071
Attention: Vo Nguyen
Fax: 213-612-2499
Re: Statewide Community Infrastructure Program
The undersigned, a duly authorized officer of the CITY OF HERCULES hereby requests a withdrawal from the [DEVELOPER] ACQUISITION AND CONSTRUCTION FUND , as follows:

Request Date: [Insert Date of Request]
Name of Developer: [Developer]
Withdrawal Amount: [Insert Acquisition Price]
Acquisition Improvements: [Insert Description of Acquisition Improvement(s) from Ex. A] Payment Instructions: [Insert Wire Instructions or Payment Address for Developer] The undersigned hereby certifies as follows:

1. The Withdrawal is being made in accordance with a permitted use of such monies pursuant to the Acquisition Agreement, and the Withdrawal is not being made for the purpose of reinvestment.

2. None of the items for which payment is requested have been reimbursed previously from other sources of funds.

3. If the Withdrawal Amount is greater than the funds held in the Acquisition and Construction Fund, the SCIP Program Administrator is authorized to amend the amount requested to be equal to the amount of such funds.

CITY OF HERCULES
By:

Title:

267

4155-8093-8767.14

ATTACHMENT 1C TO THE RESOLUTION

ELIGIBLE FACILITIES AND FEES
Eligible facilities and fees that may be financed by a CFD formed by CSCDA through SCIP include all improvements and fees authorized under the Mello-Roos Act, including but not limited to the following:

Transportation Improvements
Eligible roadway improvements include, but are not limited to: acquisition of land and easements; roadway design; project management; bridge cross ings and culverts; clearing, grubbing, and demolition; grading, soil import/export, paving (including slurry seal), and decorative/enhanced pavement concrete and/or pavers; joint trenches, underground utilities and undergrounding of existing utilities; dry utilities and appurtenances; curbs, gutters, sidewalks, bike trails (including onsite and off -site), enhanced fencing, and access ramps; street lights, signalization, and traffic signal control systems; bus turnouts; signs and striping; erosion control; median and parkway landscaping and irrigation; entry monumentation; bus shelters, bus and transit improvements including transfer stations and regional public transit improvements; masonry walls; traffic control and agency fees; and other improvements relat ed thereto. Eligible improvements for the roads listed herein also include any and all necessary underground potable and recycled water, sanitary sewer, and storm drainage system improvements.

Water System Improvements
Authorized facilities include any an d all water facilities designed to meet the needs of development within the CFD. These facilities include, but may not be limited to: water storage, treatment and distribution facilities including waterlines and appurtenances, gate valves, pressure reducing stations, flow meters, fire hydrants, and other improvements related thereto such as site clearing, grading and paving; curbs and gutters; booster pump stations & power; stand -by generators; site lighting, drainage, sanitary sewer, and water service; la ndscaping and irrigation; access gates, and fencing; and striping and signage.

Recycled Water System Improvements
Authorized facilities include any and all recycled water system facilities designed to meet the needs of development within the CFD. These f acilities include, but may not be limited to:
treatment and distribution facilities including pipelines and appurtenances, gate valves, flow meters, booster pump pressurization system, and other improvements related thereto - such as site clearing, grading and paving; curbs and gutters; booster pump stations; stand -by generators; site lighting, drainage, sanitary sewer, and water service; landscaping and irrigation; access gates, and fencing; and striping and signage.

Drainage System Improvements
Authorized facilities include any and all drainage and storm drain improvements designed to meet the needs of development within the CFD. These facilities include, but may not be limited to: excavation and grading, pipelines and appurtenances, outfalls and water qu ality measures, detention/retention basins, drainage pretreatment facilities, drainage ways/channels, pump stations, landscaping and irrigation; access roads, gates, and fencing; and striping and signage and 268

4155-8093-8767.14

other improvements related thereto.

Wastewater System Improvements
Authorized facilities include any and all wastewater facilities designed to meet the needs of development within the CFD. These facilities include, but may not be limited to, pipelines and all appurtenances thereto; manholes; tie -in to existing main lines; force mains; lift stations; upgrades to existing lift stations; odor-control facilities; and permitting related thereto; and related sewer system improvements.

Park, Parkway and Open Space Improvements
Authorized facilities include any and all improvements to parks, parkways and open space required for development within the CFD. These facilities include, but may not be limited to:
grading, turf, shrubs and trees, landscaping irrigation, site lighting, drainage, sanitary sewer and water service, pedestrian and bicycle trails, protective fencing (including soundwalls), pedestrian/bicycle bridges, storm drain crossings, wetland mitigation, hawk mitigation for authorized facilities herein, access gates and fencing and related open space im provements.

Authorized facilities include acquisition of any and all parkland as well as open space/bike trail/public access easements required for development within the CFD.

Electrical System Improvements
Authorized facilities include any and all electrical supply and distribution facilities designed to meet the needs of development within the CFD. These facilities include, but may not be limited to: design, distribution lines, vaults, conduit, trenching, transformers and installation of cabling.

School and Educational Facilities
Authorized facilities include classroom renovation, updates to school safety and security systems, technology improvements, energy efficiency improvements, school modernization and retrofitting, and new classroom and scho ol construction as required for development within the CFD.

Other Public Improvements
Authorized facilities include any and all public facilities and infrastructure designed to meet the needs of development within the CFD. These facilities include, but may not be limited to: community center facilities, library facilities, police facilities, fire suppression and response facilities, other public safety facilities, corporation yards, municipal service centers, public parking garages, and other public buildings.

Fees and Charges
Authorized facilities include the direct funding of any of the above referenced facility types for which the Local Agency collects a development impact fee, capacity charge, fair share contribution, or other development-related fee.
269

4155-8093-8767.14

Other Incidental Expenses and Bond Issuance Costs
In addition to the above facilities, other incidental expenses as authorized by the Mello - Roos Community Facilities Act of 1982, including, but not limited to, the cost of planning and designing the facil ities (including the cost of environmental evaluation, remediation and mitigation); engineering and surveying; construction staking; utility relocation and demolition costs incidental to the construction of the public facilities; costs of project/construct ion management; costs (including the costs of legal services) associated with the formation of the CFD; issuance of bonds (if any); determination of the amount of taxes; collection of taxes; payment of taxes; costs of calculating and providing reimbursemen ts from one-time special tax payments; or costs otherwise incurred in order to carry out the authorized purposes of the CFD; and any other expenses incidental to the formation and implementation of the CFD and to the construction, completion, inspection and acquisition of the authorized facilities. 270

4155-8093-8767.14

ATTACHMENT 1D TO THE RESOLUTION

ELIGIBLE SERVICES
Services to be funded, in whole or in part, by any CFD formed by the Authority for City Services shall include all direct and incidental costs related to providing for the funding of public safety services, including, but not limited to, police and fire safety, emergency response, and similar services, as well as the funding of services for the maintenance of public improvements.

The CFDs may fund services relating to obtaining, constructing, furnishing, operating and maintaining equipment, apparatus or facilities related to providing the services and/or equipment, apparatus, facilities or f ixtures in areas to be maintained, paying the salaries and benefits of personnel necessary or convenient to provide the services, payment of insurance costs and other related expenses and the provision of reserves for repairs and replacements and for the f uture provisions of services. The Services may be provided by the City directly with its own employees or by contract with third parties, or any combination thereof.

Services to be financed by a CFD shall be limited to Services that are in addition to tho se provided in the territory of the CFD prior to the date of creation of the CFD and shall not supplant services already available within that territory when the CFD is created.

271

CITY OF HERCULES RESOLUTION NO. 24-____

RESOLUTION OF THE CI TY COUNCIL OF THE CI TY OF HERCULES AUTHORIZING THE CITY MANAGER TO APPROVE SCIP 24 -01, AN APPLICATION SUBMITTED BY D.R. HORTON BAY, INC. TO UTILIZE THE SCIP PROGRAM FOR

CERTAIN DEVELO PMENT IMPACT FEES AND IMPROVEMENTS FOR THE OWL

RANCH SUBDIVISION
WHEREAS, the C ity of Hercules is a Program Participant of the Statewide Community Infrastructure Program (“SCIP”) which allows the financing of certain public capital improvements to be const ructed by or on behalf of property owners for acquisition by the City or another public agency (the “Improvements”) and improvements eligible for funding from certain development impact fees, capacity fees and/or other development related charges (the “Fees”) levied in accordance with the Mitigation Fee Act (California Government Code Sections 66000 and following) and other authority providing for the levy of fees on new development to pay for public capital improvements (collectively, the “Fee Act”) throug h the levy of special assessments pursuant to the Municipal Improvement Act of 1913 (Streets and Highways Code Sections 10000 and following) (the “1913 Act”) and the issuance of improvement bonds (the “Improvement Bonds”) under the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (the “1915 Act”) upon the security of the unpaid special assessments; and
WHEREAS, the City of Hercules originally determined its participation in the SCIP program through Resolution 06 -134 and l ater amended the parameters of participation to require City Council review and direction to the City Manager to approv e or deny all complete SCIP applications through Resolution 17 -039. The City Council adopted a restated and amended version of Resolution 17-039 immediately preceding on June 25, 2024 (Resolution 24 -XX), which provides for expansion of the SCIP program and re-establishes the City’s participation; and WHEREAS, the City of Hercules has received a complete SCIP application from D.R. Horton Bay, Inc. requesting to utilize the SCIP program to finance certain Development Impact Fees and Improvements including the Park & Recreation Fee, Transportation Facilities Fee, Sewer Facilities Fee and West County Sub -Regional Transportation Mitigation Fee.

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

Section 1. The City Council hereby authorizes the City Manager to approve the SCIP application submitted by D.R. Horton Bay, Inc. for the Owl Ranch subdivision , allowing the appli cant to submit the SCIP application to the California Statewide Communities Development Authority (CSCDA).

Section 2. The City Council finds that adoption of this Resolution is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines § 272

15061(b)(3) – the common sense exemption – because the action would only allow D.R. Horton to submit their SCIP application to CSCDA for financial processing and would not facilitate new construction or other groundbreaking activities. It can be seen with certainty that there is no possibility that the action will result in either a direct physical change to the environment or a reasonably foreseeable indirect physical change to the environment. Further, none of the circumstances described in CEQA Guidelines § 15300.2 applies. No unusual circumstances are present. This determination reflects the City of Hercules’ independent judgment and analysis.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 25th day of June, 2024 by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dan Romero, Mayor

ATTEST:

Eibleis Melendez
City Clerk

273
Friday, March 29, 2024
SCIP Application and Landowner
Information
SCIP Application and
Landowner Information
Form
Project Information
Name of Applicant:

D.R. Horton (Bay Area Division)
Name of City/County Agency:

City of Hercules
City/County Contact:

Dante Hall
Project Name:

Owl Ranch
Project Proceeds Requested:
732526
Provide Brief General Description of Overall
Project
The Project is planned for the development of 40
single-family residential lots on the approximately

7.3 acre site at 215 Skelly Road. Lot 19 and
Lot 29 will be excluded from the SCIP financing
district as they have been designated as deed
restricted
affordable housing.

Project Location or Address:
215 Skelly Road
Hercules, CA, 94547
County:

Contra Costa County
Is the project located in an unincorporated part
of the County?
No
1 274
Has the City or County in which the project is
located been contacted? If so, please provide
appropriate contact information below.

Yes
2 275
Applicant Contact Information
Primary Contact
Full Name:

Megan Milburn
Title:

Forward Planner
Address:
3000 Executive Parkway, Suite 100
San Ramon, CA, 94583
Phone Number:
(408) 386-0327
E-mail:
[email protected]
Secondary Contact
Full Name:

Steve Johnston
Title:

Manager - DPFG
Address:
2281 Lava Ridge Court, Suite 340
Roseville, CA, 95661
Phone Number:
(916) 975-2803
Applicant Acknowledgment and Agency Information
E-mail:
[email protected]
3 276
Applicant Acknowledgment
One of the following is true and correct: (A) The undersigned represents the owner(s) of the project, including as joint owners by tenancy in common, community property, joint tenancy or otherwise, or (b) the undersigned has this project under option.  The undersigned Applicant acknowledges and agrees that it shall comply with all applicable provisions of the California Labor Code including, as applicable, the payment of prevailing wage.  As respect to any and all claims related to prevailing wage, the undersigned assumes all responsibility for the payment of prevailing wage and the compliance with prevailing wage, if required, and specifically waives any and all rights against the California Statewide Communities Development Authority and each participating local agency with respect to the project, as well as their agents, employees, agencies, and consultants (the "Indemnified Parties") pursuant to Labor Code Section 1726(c) and any analogous federal law, and agrees to defend and fully indemnify the Indemnified Parties for damages, claims, fines, penalties, litigations expenses, costs, attorney's fees and interest relating to the project.

Signed  ___________________________________________
Dated:  ___________________________________________
Local Agency Information
Local Agency Name:

City of Hercules
Mailing Address:
111 Civic Drive
Hercules, CA, 94547
Primary Contact:

Dante Hall
Local Agency Acknowledgment
I hereby certify that I am an authorized representative of the Local Agency and that I have been authorized by the Local Agency to execute the Preliminary Application for CSCDA financing.

Signed  _______________________________________________ Dated   _______________________________________________ Title:

City Manager
Phone Number
(510) 799-8200
E-mail
[email protected]
Additional Local Agency Information (if applicable)
4 277
Local Agency Name:

West Contra Costa Transportation Advisory
Committee (WCCTAC)
Primary Contact:

John Nemeth
Title:

Executive Director
Phone Number
(510) 210-5933
E-mail
[email protected]
Local Agency Acknowledgment
I hereby certify that I am an authorized representative of the Local Agency and that I have been authorized by the Local Agency to execute the Preliminary Application for CSCDA financing.

Signed  _______________________________________________ Dated   _______________________________________________ SCIP Landowner Information Form
THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY ("CSCDA") INTENDS TO ISSUE TAX- EXEMPT BONDS (THE "BONDS") TO FINANCE CERTAIN IMPACT FEES FOR THE CITY/COUNTY.  UNDER FEDERAL AND

STATE SECURITIES LAWS, CSCDA IS REQUIRED TO DISCLOSE ALL MATERIAL FACTS TO THE PURCHASERS OF THE BONDS.  FOR THIS REASON, IT IS IMPORTANT THAT YOU ANSWER EACH OF THE FOLLOWING QUESTIONS COMPLETEL Y AND ACCCURATEL Y.  YOUR PROMPT AND COMPLETE RESPONSE TO THIS QUESTIONNAIRE IS CRITICAL TO CSCDA'S ABILITY TO ISSUE BONDS TO FINANCE YOUR DEVELOPMENT IMPACT FEES.

Name of Landowner:

D.R. Horton Bay, Inc., A Delaware Corporation
Please Upload a Preliminary Title Report or
Other Evidence of Ownership
PDF DRE Prelim - UpdateAmend 6….pdfOwnership Structure:

Corporation
Name of Developer (if different from
Landowner):

N/A
Property Information
5 278
Gross Acres Owned:

7.3 Number of acres proposed for development:

7.3 Number of acres developed to date, if any:

7.3 List the Assessor's Parcel Numbers for the
property:
404-061-031 to 404-061-070
Excluding Lots 19 (404-061-049) and Lot 29 (404-
061-059)
How long have you owned the property?
January 2023
When do you expect the first sale of property?
Sales begin in December 2024, First Home Closing
in February 2025
Development Impact Fees & Improvements to be Financed by SCIP:

Development Impact Fees
Type (water, sewer,
road, etc.)
Collecting Local
Agency
Fee Recipient (if
different) Total Amount of Fee Amount of Fee per
Unit
Park & Recreation
Fee
City of Hercules
City of Hercules
64790
1705
Transportation
Facilities Fee
City of Hercules
City of Hercules
227126
5977
Sewer Facilities
Fee
City of Hercules
City of Hercules
177802
4679
West County Sub-
Regional
Transportation
Mitigation Fee
City of Hercules
WCCTAC
262808
6916
Have you entered into any option or other form
of agreement to sell all or a portion of the
property?
No
If YES, please describe the arrangement and
upload a copy of agreements describing the
arrangement.

N/A
6 279
Total Amount Impact Fees:
732526
Improvements:

Description Local Agency Acquiring
Improvements Amount
Skelly Road - Bulb Out
Is the property proposed for residential,
commercial retail, industrial or a combination
of different land uses?
Residential
Please state the total number of residential
units proposed (single family or multi-family),
and the total land acreage and building square
footage for a commercial, retail, or industrial
development proposed.
40 Residential Units
Only 38 Units will be included in the SCIP as there
are 2 affordable housing units (Lot 19 & 29)
Describe the expected timing for development
of the property including dates of completed
development milestones. If available, please
list projected sales or leasing information.

Wet utilities expected to be complete June 2024, dry
utilities July 2024, Pave September 2024. Model
home permits issued in August 2024. Sales to begin
December 2024 and last until July 2025, first
closing February 2025 and last September 2025.
7 $ 50,750City
280
What is the status of land use approvals, maps
and EIR's for the property (i.e., briefly describe
the current zoning and the status of any
Development Agreements, Specific Plans,
tentative maps or final maps for the property)?
Recorded Final Map
If YES, please provide the name, address and
telephone number of the lending institution
and the approximate loan amount. Also
provide any other information regarding how
the project is to be financed.

N/A
Has the developer or any partner or related
entity of the landowner ever filed for
bankruptcy or been declared bankrupt?
No
What is the status of map recordation?
Final Subdivision Map
Please list all discretionary approvals
(including vesting tentative subdivision map,
conditional use permits, Section 404 permits,
Fish & Game permits, and any other
governmental permits) that are still required
for development to proceed?
All approvals have been obtained
If YES, specify the date and location of court
where bankruptcy action took place.

N/A
Are there any other foreseeable circumstances
not described above that could prevent or
significantly delay the proposed development
of the property?
No
Will any impact fees be owing after funding by
SCIP as a condition to develop the property?
Yes
If YES, please explain and provide the amount
of such fees.

East Bay MUD
School Fees
Other City impact fees such as General Public,
Police, Fire, and Community Development Tax
If YES, please explain.

N/A
Is any development currently underway on the
property?
Yes
If YES, please give a general description and
provide information as to estimated
construction or permit value.

Land development: included engineer’s estimate.
$2,448,000
Vertical construction: 40 homes to build.
15 x 1583s construction valued at $241,973 each
15 x 1874s construction valued at $266,763 each
10 x 2311s construction valued at $307,128 each
Are there any existing trust deeds/loans on the
property?
No
If YES, please state the name, address and
telephone number of the lending institution
and the approximate loan amount(s).
8 281
N/A
Has construction financing been obtained?
No
9 282
Payment of Taxes/Assessments
What is the current status of property, special
taxes and assessments on the property
(paid/owing/delinquent).

Paid
Have any property taxes or assessments on
the property been delinquent at any time
during the past 3 years?
No
If YES, please explain.

N/A
Describe the source of funds that you will use
to pay any taxes/assessments to be levied on
the property in connection with the
Assessment District (i.e., bank savings, land
sale proceeds, loan proceeds, etc.).

Internal funds and home sale proceeds
Do you foresee any difficulty in your ability to
make timely payment of your
taxes/assessments?
No
If YES, please explain.

N/A
Experience of Landowner and Development Group
Describe the development experience of the
Landowner developer or affiliated construction
entity. Briefly describe any current or recently
completed developments undertaken by the
Landowner.

D.R. Horton, Inc., America’s Builder, has been the
largest homebuilder by volume in the United States
since 2002 and has closed more than 1,000,000
homes in its 45-year history.
https://investor.drhorton.com/
10 283
Notice Regarding Disclosure
In 1994, the Securities and Exchange Commission adopted amendments (the "Amendments") to Rule 15c2-12 under the Securities Exchange Act of 1934 relating to certain required disclosure information that must be made available to prospective purchasers of municipal bonds.  Under the Amendments and other federal and state securities laws, certain material information must be disclosed (i) in connection with the initial offering of Bonds with respect to material persons; and (ii) on an ongoing basis with respect to obligated persons.

Whether a property owner/developer might be a material person or an obligated person will depend on all of the facts and circumstances.  If the information you provide in response to this questionnaire indicates this might be the case, the financing team will review with you the information that may need to be disclosed to potential Bond investors in order to satisfy the Amendments and other federal and state securities laws.

If information on the proposed development of your property is disclosed in connection with the sale of the Bonds, you will be required to certify at that time that the information is true and correct and does not omit to state any material fact.

If we have any additional questions regarding the property, who is the appropriate person to contact? Firm Name:

DPFG
Primary Contact:

Steve Johnston
Title:

Manager
Address:
2281 Lava Ridge Court, Suite 340
Roseville, CA, 95661
Phone Number:
(916) 976-2803
E-mail:
[email protected]
Upon submission of your application, please send a nonrefundable $1,500 application fee made payable to CSCDA to the attention of:

Vo Nguyen
Statewide Community Infrastructure Program
c/o BLX Group LLC
777 South Figueroa Street, Suite 3200
Los Angeles, CA 90017
After submission of your application you will receive a PDF copy.  Please forward a signed and dated copy including the local agency acknowledgment.
11 284
RBC Capital Markets0
Statewide Community Infrastructure Program
A Program of the California Statewide Communities Development Authority 285
RBC Capital Markets1
What is the Statewide Community Infrastructure Program?  The S tatewide Community Infrastructure Program (“SCIP”) is a financing program offered through the California Statewide Communities Development Authority ("CSCDA") which can be used by developers to finance public infrastructure, facilities and impact fees.  SCIP has 130 Local Agency members, including the City of Hercules who joined in 2006. The updated resolution for consideration today is include CFDs in addition to Assessment Districts.  SCIP p rovides two programs:
‒ The S CIP pooled revenue bond program which issues bonds 3 times/year (Spring, Fall & End of Year).
o Once a Ci ty has joined, developers may submit applications on-line. o Developers h ave a choice of CFD or AD Local Obligation as part of a pool. ‒ A s tand alone SCIP Community Facilities District (“CFD”) which issues bonds for larger projects as the project schedule dictates.
o SCIP w ill craft a project specific JCFA and/or SCIP Resolution for board approval for each participating Local Agency
 Since, 200 3, SCIP has issued over $1.06 billion in bonds for 381 projects across California, nearly $347 million of which have been Community Facilities District (“CFD”) bond financings. 286
RBC Capital Markets2
Program Benefits
 SCIP p rovides Local Agencies a means of offering competitive financing to all developers as a turnkey solution which minimizes local agency staff time.
 SCIP h as financed projects which range in size from $500,000 to up and over $35,000,000.
 Developers a nd Local Agencies can select between
assessment districts or CFDs depending on the project.
 Developers u se SCIP for a variety of reasons:
 Can be p art of the capital mix of debt, equity, public financing
 Provides of f balance sheet/land secured non recourse debt
 Can p rovide competitive advantages with respect to
residential marketing
 SCIP p rovides diversity to investors and economies of scale to its participants which ultimately translates to competitive interest rates and lower costs
Local Agencies Save Time & Effort
Resources Can be Used Elsewhere
Developers Gain Access to Capital
Project Economics are Improved
SCIP Can Now Finance School
Fees
287
RBC Capital Markets3
Who Uses SCIP?
130 Participating Local Agencies across California with a Growing List of Recurring Developer Clients Participating Local Agencies
128 Total
Members with
381 Projects
Financed
• Alameda, City of
• American Canyon
• Anaheim
• Angels Camp
• Antioch
• Bakersfield
• Banning
• Bayshore Sanitary District
• Blythe
• Brentwood
• Butte County
• Calistoga
• Cathedral City
• Chico
• Chula Vista
• Citrus Heights
• Clovis
• Coachella Valley Water Dt.
• Corona
• Cosumnes CSD
• Cotati
• Daly City
• Dana Point
• Davis
• Desert Hot Springs
• Diablo Water Dt.
• Dublin
• Dublin San Ramon Svcs. Dt.
• East Contra Costa RFFA
• East Palo Alto
• Eastern Muni. Water Dt.
• El Dorado, County of
• El Dorado Irrigation District
• El Monte
• Elk Grove
• Fairfield
• Folsom
• Fontana
• Fremont
• Fresno
• Galt
• Gardena
• Grass Valley
• Healdsburg
• Hercules
• Hesperia
• Hollister
• Huntington Beach
• Imperial, County of
• Indian Wells
• Indio
• Ironhouse Sanitary Dt.
• Lancaster
• Lathrop
• Lincoln
• Linda Co. Water Dt.
• Live Oak
• Livermore
• Lodi
• Madera, City of
• Manteca
• Martinez
• Menifee
• Merced, City of
• Millbrae
• Mission Springs Water Dt.
• Morgan Hill
• Morro Bay
• Murrieta
• Napa, City of
• Napa, County of
• Newport Beach
• Norco
• Oakley
• Oxnard
• Palm Springs
• Patterson
• Petaluma
• Placer, County of
• Rainbow Muni Water Dt.
• Rancho Cordova
• Redding
• Redlands
• Rialto
• Richmond
• Rio Vista
• Riverside, County of
• Rocklin
• Roseville
• Sac. Area Sewer Dt.
• Sac. Co. Water Agency
• Sac. MUD
• Sac. Regl. Co. Sanitation Dt.
• Sacramento, City of
• Sacramento, County of
• San Diego, City of
• San Diego, County of
• San Juan Bautista
• San Juan Capistrano
• San Luis Obispo, City of
• San Luis Obispo, County of
• San Marcos
• San Mateo, County of
• Santa Ana
• Santa Rosa
• Santee
• Sonoma, County of
• South Placer MUD
• South Placer RTA
• South Placer Wastewater Authority
• Stockton
• Suisun City
• Sutter County
• Sweetwater Authority
• Thousand Oaks
• Tracy
• Truckee Donner PUD
• Tuolumne, County of
• Ukiah
• Vacaville
• Vallejo
• Victorville
• West Sacramento
• Western Municipal Water District
• Wheatland
• Woodland
• Yuba City
• Yuba, County of
• Yucaipa
• Yucaipa Valley Water Dt.
288
RBC Capital Markets4
SCIP Financing Programs for New Development
There are a number of ways for Developers and Local Agencies to use SCIP to assist is financing impact fee, public improvements and facilities for new residential, commercial and industrial projects  There is t he SCIP Pool meant to accommodate smaller single phase projects ($500,000 to $5,000,000)  SCIP c an also be used to finance larger projects on a stand alone basis (greater than $5,000,000) Financing of Impact Fees and Improvements/Facilities
 Financing of I mpact Fees is a popular option for developers starting to pull building permits and/or construct models
 SCIP ca n also be used to finance public improvements and facilities for any work that is completes and will be dedicated for public use
CSCDA manages the SCIP bond issuance process from district formation through the issuance of bonds and post sale administration which includes:
 Holding t he public hearing and overseeing the issuance of bonds  Managing p ost sale administration which includes preparing the tax rolls, continuing disclosure, disbursement of funds and rebate
SCIP can accommodate any development by mixing and matching its programs to fit the needs of a specific project to promote development and meet Local Agency goals Formation Issuance Post-Sale
Admin
289
RBC Capital Markets5
SCIP Tasks and Responsibility Schedule
Admin. includes:
 Tax Roll
 Lot Splits
 Rebate
 Continuing
Disclosure
 Foreclosure
Developers
Local Agencies
Pass SCIP
Resolution &
Approve
Applications
Conduct the
proceedings
Issue Bonds
Administering
the District
Entitlements
Payment of
Fees or
Completion of
Improvements
Bond
Payments
(Investor Risk)
Developers and
Local Agencies
Developers
290
RBC Capital Markets6
Program Mechanics
Program Type Description
Impact Fee Reimbursement
Program
Impact Fee Pre-Funding
Program
Funding of Public
Improvements
Pooled Assessment/Community Facilities
District Issuance
Reimburses property owners for Impact Fees paid at Building Permit but prior to the Issuance of the SCIP bonds.
(Note: Application must be submitted no more than 60 days before the fees are paid)
Pre-pays impact fees which would normally be due at building permit and for which the developer will receive a fee credit when otherwise due
Public improvements can be finance on an acquisition basis when complete pursuant to an acquisition agreement between the developer and the local agency. Prevailing wage applies to the improvements being funded
Combined Funding Program
Reimbursement, Pre-Funding Programs and Acquisition
Funding can be combined
Stand-Alone
AD/CFD Issuance
Assessment Districts /
Community Facilities
Districts (CFDs)
ADs/CFDs can be created and funded through SCIP and CSCDA on a stand alone or pooled basis. The Local Agency will request formation of the AD/CFD and adopt a joint facilities agreement (JCFA) specifying which facilities are eligible, or the option may be included in the updated SCIP resolution. (Note: May include Operations and Maintenance Fees).
291
RBC Capital Markets7
Statewide Community Infrastructure Program
Questions?
292
PUB

LIC HEARINGS

AGENDA ITEM

3. 22-900
293
1 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 25, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Public Hearing on Approving Additions, Deletions and Adjustments to the Master Fee Schedule with said Additions, Deletions and Adjustments to become effective July 1, 2024
RECOMMENDED ACTION:

Open the Public Hearing, Receive a Staff Report, Take Public Testimony, Close the Public Hearing, and Adopt the following resolution (Attachment 1):

1. A Resolution of the City Council of the City of Hercules Approving Additions, Deletions, and Adjustments to the Master Fee Schedule with said Additions, Deletions, and Adjustments to Become Effective July 1, 2024.

DISCUSSION:

The public hearing was noticed in the local newspaper on June 13, 2024. The purpose of the public hearing is to provide a formal opportunity for community input. The proposed FY 2024- 25 Master Fee Schedule will be available on-line on the City’s website (www.ci.hercules.ca.us) and through the following link: https://www.herculesca.gov/government/finance/master-fee- schedule.

By way of background, a municipality is authorized to establish reasonable fees for services rendered. The City has established fees by the Municipal Code's authority, City Ordinances, City Resolutions, City development/funding agreements, and State and Federal statutes. Those fees do not exceed the estimated reasonable cost of providing the service for which the fees are charged. In government, the difference between a fee and a tax is that an individual pays a fee for a specific good or service rendered by the government that benefits only that individual. In contrast, a tax has only a general connection to the benefits received by an individual.

To make it easier for citizens, staff, and interested parties to understand the City's various fees and provide a comprehensive list of the City's fees, a Master Fee Schedule lists the fees in place 22-900
294
2 as of July 1, 2024, covering FY 2024-25. Certain fees are automatically increased each year based on either the change in the consumer price index (CPI) or the difference in the engineering news record construction cost index (ENR).

Staff conducted a comprehensive user fee study to ensure that the City assesses appropriate fees and rates that will allow the City to recover the actual costs incurred for fee-related services.

The study was completed and approved by Resolution on November 14, 2023.

Staff recommends updating the fee on July 1, 2024, by automatically increasing specific fees by

3.8% based on the April 2023 to April 2024 Bay Area Consumer Price Increase, except if the fee’s legal basis provides limitations. Because the fees are rounded to the nearest dollar, the percentage and dollar amount changes fluctuate.

FISCAL IMPACT:

The eligible fees in the Master Fee Schedule will be increased by 3.8%. The projected increase in revenues from the new fees outlined in the Master Fee Schedule is included in the Proposed FY 2024-25 Budget. The estimated increase in revenue depends upon the level of activity during the fiscal year.

ATTACHMENTS:

1. Resolution

2. FY 2024-25 Proposed Master Fee Schedule

295
RESOLUTION NO. 24- ____

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

ADDITIONS, DELETIONS AND ADJUSTMENTS TO THE MASTER FEE SCHEDULE

WITH SAID ADDITIONS , DELETIONS AND ADJUSTMENTS TO BE COME EFFECTIVE JULY 1, 2024

WHEREAS, annually staff conducts a review of all fees and charges to determine if they are up to date, current, at the appropriate level, competitive/fair/affordable and provide a reasonable return to the City for the cost of providing services; and

WHEREAS, as part of the FY 2024-25 budget process, it is the recommendation of staff to add some new fees, delete some existing fees, and to make some adjustments to other existing fees on the City’s comprehensive Master Fee Schedule; and

WHEREAS, these recommended fee additions, deletions and adjustments have been evaluated and reviewed by the affected departments; and

WHEREAS, staff is requesting approval of the additions, deletions and adjustments; and

WHEREAS, the City Council has held a Public Hearing to allow comment and input from the community on these recommended fee additions, deletions, and adjustments.

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

1. The Council hereby approves additions, deletions and adjustments on the attached Master Fee Schedule, said additions/adjustments to be effective July 1, 2024, as noted on Attachment 2 – Master Fee Schedule.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 25th of June 2024, by the following vote of the Council:

AYES:

NOES:

ABSENT:

____________________________
Dan Romero, Mayor
ATTEST:

________________________________
Eibleis Melendez, City Clerk
296
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

GENERAL CITY-WIDE FEES
Various Various Various Document Reproduction (Fees are limited by the State Public Records Act) $0.28 per copy $0.29 $0.01 100 4420 395.00-00 Campaign Statements and Statements of Economic Interest $0.10 per copy $0.10 $0.00 100 4420 395.00-00 Retrieval of Campaign Documents Over 5 Years Old $5.00 $5.00 $0.00 100 4420 395.00-00 Local Election Candidate Filing $25 per candidate $26.00 $1.00 Various Various Various Electronic Copies of Documents (CD, CD Sleeve, Mailer - Postage not included) $7 per device $7.00 $0.00 Various Various Various "Non-sufficient Funds" Check Processing $45 per NSF check $47.00 $2.00 100 4625 395-00-00 Check Re-issuance $45 per check $47.00 $2.00 Various Various Various Technology Enhancement Surcharge 10% of any city fee being charged except Parks & Recreation and County Building Fees 10% $0.00

CITY CLERK OFFICE FEES
100 4420 395.00-00 Local Initiative Processing (Filing Fee, Notice of Intent to Circulate Initiative Petition) $200 per initiative; Fee is refundable to the filer, if within one year of filing the notice of intent, the elections official certifies the sufficiency of the
petition. This fee is limited by the State Law - Elections Code Section 9202(b)
$200 per initiative; Fee is refundable to the
filer, if within one year of filing the notice of
intent, the elections official certifies the
sufficiency of the
petition. This fee is limited by the State Law -
Elections Code Section 9202(b)
$0.00

HERCULEAN / PARK & RECREATION ACTIVITY GUIDE ADVERTISING FEES Size of Ad:

Electronic:
100 Various Various Inside - 1/8 Page - Color $98.00 $98.00 $0.00 100 Various Various Inside - 1/4 Page - Color $139.00 $139.00 $0.00 100 Various Various Inside - 1/2 Page - Color $181.00 $181.00 $0.00 100 Various Various Inside - Full Page - Color $332.00 $332.00 $0.00 100 Various Various Inside/Back Front Cover or Glossy - Full Page - Color $361.00 $361.00 $0.00 100 Various Various Outside Back Cover - 1/2 Page - Color $387.00 $387.00 $0.00 Paper:
100 Various Various Inside - 1/8 Page - Color $195.00 $195.00 $0.00 100 Various Various Inside - 1/4 Page - Color $277.00 $277.00 $0.00 100 Various Various Inside - 1/2 Page - Color $361.00 $375.00 $14.00 100 Various Various Inside - Full Page - Color $664.00 $664.00 $0.00 100 Various Various Inside/Back Front Cover or Glossy - Full Page - Color $719.00 $719.00 $0.00 100 Various Various Outside Back Cover - 1/2 Page - Color $775.00 $804.00 $29.00 100 Various Various Full Bleed for Full Page Ad-Inside or Glossy $18.00 $19.00 $1.00 100 Various Various Subscription for Non-residents (Per year) $21.00 $22.00 $1.00

POLICE DEPARTMENT FEES
100 5160 361.04-00 Booking Fee (Fees set by the County) $175.00 $175.00 $0.00 100 5160 361.04-00 Jail Access Fee (Fees set by the County) $345.00 $345.00 $0.00 100 5160 361.04-00 Both Booking and Jail Access Fee (Fees set by the County) $520.00 $520.00 $0.00 100 5160 361.07-00 Live Scan Fingerprinting $70 per print plus any DOJ fees $73.00 $3.00 100 5160 361.07-00 Peddler Police Permit $310 per permit plus any DOJ fees Live Scan fees are in addition to this fee. $322.00 $12.00
100 5160 361.01-00 Police Report Copy (Per Page) $0.28 $0.29 $0.01 100 5160 361.01-00 Police Electronic File Copy $10 per device $10.00 $0.00 100 5160 361.01-00 Concealed Weapons Permit New or Renewal - $252.35 $261.94 $9.59 100 5160 361.01-00 Clearance Letter $45 Per letter $47.00 $2.00 100 5160 361.08-00 Special Event Staffing Actual cost + 20% admin fee Actual cost + 20% admin fee $0.00 100 5160 361.02-00 Response to False Alarms--
In a calendar year: First three (3) calls are free No charge No charge $0.00 100 5160 361.02-00 Fourth call is $155 $155.00 $155.00 $0.00 100 5160 361.02-00 Fifth call and higher is $205 each occurrence $205.00 $205.00 $0.00

CITY OF HERCULES

MASTER FEE SCHEDULE
297
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 5160 361.03-00 DUI Accident Response
Charge the fully allocated hourly rates for all responding emergency personnel up to a maximum of $12,000 per State Code
Charge the fully allocated hourly rates for all
responding emergency personnel up to a
maximum of $12,000 per State Code
$0.00
100 5160 361.08-00 Civil Subpoena (Fees set by the Courts) $275 per hour with a 4 hour minimum $275 per hour with a 4 hour minimum $0.00 100 5160 361.08-00 Duces Tecum Subpoena (Fees set by the Courts) $15.00 $15.00 $0.00 100 5160 361.09-00 Vehicle Release - Ordinary Tow (No offense by driver) $215 per release $223.00 $8.00 100 5160 361.09-00 Vehicle Release - Penalty Tow $215 per release $223.00 $8.00 100 5160 361.09-01 Towed Vehicle Property Release $35 per vehicle $36.00 $1.00 100 5160 361.01-00 Massage Permit - New $310 per application; Live Scan fees are in addition to this fee $322.00 $12.00 100 5160 361.01-00 Massage Permit - Renewal $70 per renewal $73.00 $3.00 100 5160 361.07-00 Mobile Food Vendor Permit $310 per permit; Live Scan fees are in addition to this fee. $310 per permit; Live Scan fees are in addition to this fee. $0.00
100 5160 361.01-00 Noise Disturbance Response
First response in a 24 hour period - No Charge Subsequent responses - $100 or the fully allocated hourly rates for all responding personnel.

First response in a 24 hour period - No
Charge Subsequent responses - $104 or the
fully allocated hourly rates for all responding
personnel.
$4.00
100 5160 361.01-00 Non-Resident Citation Sign Off $60 per citation $62.00 $2.00 100 5160 361.01-00 Vehicle Repossession Processing $15 per vehicle $16.00 $1.00 100 5160 361.01-00 Weapon Storage & Release (First Weapon) First Weapon - $565 per weapon Each Additional Weapon - $190 per weapon
First Weapon - $586 per weapon
Each Additional Weapon - $197 per weapon $7 - $21

PARKING VIOLATION PENALTIES
State Mandated Parking Citation Surcharges that apply to each 'PARKING VIOLATION PENALTIES" line item below (Totaling $12.50 between the 4 charge, with fees to be collected & distributed to the State by citation processing firm) -Courthouse Construction Fund $2.50 $2.50 $0.00
-Criminal Justice Facilities Construction Fund $2.50 $2.50 $0.00 -State Courthouse Facilities Construction Fund $2.50 $2.50 $0.00 -State Trial Court Fund $3.00 $3.00 $0.00
100 5160 361.11-00 Unlawful Parking /Trails & Paths (Posted) $45.00 $45.00 $0.00 100 5160 361.11-00 Stopping or Standing in Parkways $45.00 $45.00 $0.00 100 5160 361.11-00 No Stopping / Parking Zones $45.00 $45.00 $0.00 100 5160 361.11-00 Stopping or Parking Prohibited $45.00 $45.00 $0.00 100 5160 361.11-00 Parked Over 72 Hours $45.00 $45.00 $0.00 100 5160 361.11-00 Parked for Advertising $45.00 $45.00 $0.00 100 5160 361.11-00 Parked on Street for Repairs $45.00 $45.00 $0.00 100 5160 361.11-00 Washing or Polishing Vehicle on Street $45.00 $45.00 $0.00 100 5160 361.11-00 Parking Adjacent to Schools $45.00 $45.00 $0.00 100 5160 361.11-00 Parking on Narrow Streets $45.00 $45.00 $0.00 100 5160 361.11-00 Wheels Not Turned to Curb $45.00 $45.00 $0.00 100 5160 361.11-00 Parking by Peddlers and Vendors $45.00 $45.00 $0.00 100 5160 361.11-00 Emergency Parking Signs $45.00 $45.00 $0.00 100 5160 361.11-00 Warning Signs For Disabled Commercial Vehicles $45.00 $45.00 $0.00 100 5160 361.11-00 Leaving Keys in Parked Vehicle $45.00 $45.00 $0.00 100 5160 361.11-00 Consent of Adjacent Owner for Parking Certain Vehicle $45.00 $45.00 $0.00 100 5160 361.11-00 Parking Permit for Special Occasion $45.00 $45.00 $0.00 100 5160 361.11-00 Trailer Parked on Street Overnight $45.00 $45.00 $0.00 100 5160 361.11-00 Parking Commercial Vehicle within City Limits $550.00 $550.00 $0.00 100 5160 361.11-00 Time Limit Parking $45.00 $45.00 $0.00 100 5160 361.11-00 Parallel Parking on One-Way Street $45.00 $45.00 $0.00 100 5160 361.11-00 Parking on Unimproved Street $45.00 $45.00 $0.00 100 5160 361.11-00 Diagonal Parking $45.00 $45.00 $0.00 100 5160 361.11-00 Parking Space Markings $45.00 $45.00 $0.00 100 5160 361.11-00 No Stopping Zones $45.00 $45.00 $0.00 298
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 5160 361.11-00 Curb Markings $45.00 $45.00 $0.00
100 5160 361.11-00 Red Zone $45.00 $45.00 $0.00
100 5160 361.11-00 Yellow Zone $45.00 $45.00 $0.00
100 5160 361.11-00 White Zone $45.00 $45.00 $0.00
100 5160 361.11-00 Permission to Load/Unload $45.00 $45.00 $0.00 100 5160 361.11-00 Standing in Commercial Loading Zones $45.00 $45.00 $0.00 100 5160 361.11-00 Standing in Passenger Loading Zones $45.00 $45.00 $0.00 100 5160 361.11-00 Standing in Alleys $45.00 $45.00 $0.00 100 5160 361.11-00 Parking in Bus Zone $45.00 $45.00 $0.00 100 5160 361.11-00 Violate Established Parking District Provisions - 1st Offense in 12 mos. $100.00 $100.00 $0.00 100 5160 361.11-00 Violate Established Parking District Provisions - 2nd Offense in 12 mos. $200.00 $200.00 $0.00 100 5160 361.11-00 Violate Established Parking District Provisions - 3rd+ Offenses in 12 mos. $500.00 $500.00 $0.00 100 5160 361.11-00 Parking in Blue Curb Markings-Disabled Only $350.00 $350.00 $0.00 100 5160 361.11-00 Parking in Bus Loading Zone $270.00 $270.00 $0.00 100 5160 361.11-00 Blocking Wheelchair Access $350.00 $350.00 $0.00 100 5160 361.11-00 Blocking Disabled Parking $350.00 $350.00 $0.00 100 5160 361.11-00 Parking in Crosshatch area adjacent to Disabled Space $350.00 $350.00 $0.00 100 5160 361.11-00 Parking within 3 feet designated sidewalk access ramps $350.00 $350.00 $0.00

PARKS AND RECREATION

GENERAL PARK AND RECREATION WIDE FEES
100 55XX 395.XX-XX Discount on programs/services/classes paid in full only on day of Recreation Expo 10% 10% $0.00 100 5512 364.41-00 Refunds/Cancellations/Transfers/ Service Charges When Initiated By The Participant for Classes and Programs Before First Class Begins $15.00 $16.00 $1.00 100 5510 395.00-00 Signboard Fee - one location, 1 side of sign, for 7 days $17/day per sign $17/day per sign $0.00 100 5510 395.00-00 Signboard Fee - all locations, 1 side of sign, for 7 days $82.00 $82.00 $0.00 100 5510 395.00-00 CLSC Non-Profit Groups Banner locations per month for one banner $41.00 $43.00 $2.00 100 5510 395.00-00 State Approved Non-Profit Groups Banner locations 1st month $51.00 $53.00 $2.00 100 5510 395.00-00 Hercules Based Private Business/Company Banner location monthly fee $154 - $515 Depending upon Location $154 - $515 Depending upon Location $0.00 100 5510 395.00-00 Non Hercules Based Private Business/Company Banner location monthly fee $206 - $617 Depending upon Location $206 - $617 Depending upon Location $0.00 100 55XX 395.XX-XX Recreation Program Shirt $5.00-$21.00/shirt $5.00-$22.00/shirt $0 - $1

FACILITY RENTALS
All Facilities
100 5512 364.41-00 Rental Cancellation Before Reserved Date 100% of Reservation Deposit 100% of Reservation Deposit $0.00 100 5512 364.41-00 Transfers/Service Charges When Initiated By The Participant for Facility Rentals Prior to Event Date $56.00 $58.00 $2.00
100 5512 364.41-00 Facility Rental Fee for Monday-Thursday Rentals 50% of Saturday Fees 50% of Saturday Fees $1.00 100 5512 364.41-00 Facility Rental for Friday & Sunday Rentals 75% of Saturday Fees 50% of Saturday Fees $1.00 100 5512 364.42-00 Insurance Market Rate + $12.00 Market Rate + $12.00 $0.00 100 5512 364.42-00 Selling Alcoholic Beverages (Terrorism insurance) Market Rate + $12.00 Market Rate + $12.00 $0.00 100 5512 364.45-00 Security Guards (Per hour - per guard) Market Rate + $12.00 Market Rate + $12.00 $0.00 Council Chambers
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $83.00 $86.00 $3.00 100 5512 364.41-00 Approved CLSC Groups M-Th outside of 6-9pm (Per hour) $12.00 $13.00 $1.00 100 5512 364.41-00 Approved CLSC Groups F & Sunday (Per hour) $28.00 $29.00 $1.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $42.00 $44.00 $2.00 Private-Commercial (Saturday rate):
100 5512 364.41-00 Resident (Per Hour) Saturday Rate $56.00 $58.00 $2.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $66.00 $69.00 $3.00 Holiday Rate
299
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 5512 364.41-00 Resident (Per Hour) $83.00 $86.00 $3.00 100 5512 364.41-00 Non-Resident (Per Hour) $98.00 $102.00 $4.00 Library Large Conference Room
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $83.00 $86.00 $3.00 100 5512 364.41-00 Approved CLSC Groups M-Th outside of 6-9pm (Per Hour) $11.00 $12.00 $1.00 100 5512 364.41-00 Approved CLSC Groups F & Sunday (Per hour) $28.00 $29.00 $1.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $42.00 $44.00 $2.00 Private-Commercial (Saturday Rate):
100 5512 364.41-00 Resident (Per Hour) Saturday Rate $55.00 $58.00 $3.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $65.00 $69.00 $4.00 Holiday Rate
100 5512 364.41-00 Resident (Per Hour) $83.00 $86.00 $3.00 100 5512 364.41-00 Non-Resident (Per Hour) $98.00 $102.00 $4.00 Library Small Conference Room
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $83.00 $86.00 $3.00 100 5512 364.41-00 Approved CLSC Groups M-Th outside of 6-9pm (Per Hour) $11.00 $12.00 $1.00 100 5512 364.41-00 Approved CLSC Groups F & Sunday (Per hour) $14.00 $15.00 $1.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $21.00 $22.00 $1.00 Private-Commercial (Saturday Rate):
100 5512 364.41-00 Resident (Per Hour) Saturday Rate $28.00 $29.00 $1.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $71.00 $74.00 $3.00 Holiday Rate
100 5512 364.41-00 Resident (Per Hour) $44.00 $46.00 $2.00 100 5512 364.41-00 Non-Resident (Per Hour) $71.00 $74.00 $3.00 Library Conference Rooms Equipment Rental
100 5512 364.41-00 Overhead Projector $12.00 $12.00 $0.00 100 5512 364.41-00 Floor Stand Microphone $15.00 $16.00 $1.00 100 5512 364.41-00 Table Stand Microphone $18.00 $19.00 $1.00 100 5512 364.41-00 20" Television Monitor $24.00 $25.00 $1.00 100 5512 364.41-00 20" Television Monitor Cart $24.00 $25.00 $1.00 100 5512 364.41-00 Data Portable Projector & Portable Screen $30.00 $31.00 $1.00 100 5512 364.41-00 Lavaliere Microphone $30.00 $31.00 $1.00 100 5512 364.41-00 Ceiling Mounted Projector $42.00 $44.00 $2.00 100 5512 364.41-00 Video Conferencing System With ISDN Interface $185.00 $192.00 $7.00

GUI VAN DOMSELAAR ROOM
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $83.00 $86.00 $3.00 100 5512 364.41-00 Approved CLSC Groups M-Th outside of 6-9pm (Per Hour) $11.00 $12.00 $1.00 100 5512 364.41-00 Approved CLSC Groups F & Sunday (Per hour) $33.00 $34.00 $1.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $50.00 $52.00 $2.00 Private-Commercial (Saturday Rate):
100 5512 364.41-00 Resident (Per Hour) $65.00 $67.00 $2.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $83.00 $86.00 $3.00 Holiday Rate
100 5512 364.41-00 Resident (Per Hour) $98.00 $102.00 $4.00 100 5512 364.41-00 Non-Resident (Per Hour) $125.00 $130.00 $5.00

DYNAMITE ROOM
Reservation Deposit (Refundable after rental) $83.00 $86.00 $3.00 Private-Commercial (Saturday Rate):
100 5512 364.41-00 Resident (Per Hour) Saturday Rate $60.00 $62.00 $2.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $83.00 $86.00 $3.00 100 5512 364.41-00 Approved CLSC Groups M-Th outside of 6-9pm (Per Hour) $11.00 $12.00 $1.00 100 5512 364.41-00 Approved CLSC Groups F & Sunday (Per hour) $31.00 $32.00 $1.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $44.00 $46.00 $2.00 300
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
Holiday Rate
100 5512 364.41-00 Resident (Per Hour) $88.00 $91.00 $3.00 100 5512 364.41-00 Non-Resident (Per Hour) $122.00 $127.00 $5.00

RESOURCE ROOM
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $83.00 $86.00 $3.00 100 5512 364.41-00 Resident (Per Hour) Saturday Rate $60.00 $62.00 $2.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $83.00 $86.00 $3.00 100 5512 364.41-00 Approved CLSC Groups M-Th outside of 6-9pm (Per Hour) $11.00 $12.00 $1.00 100 5512 364.41-00 Approved CLSC Groups F & Sunday (Per hour) $31.00 $32.00 $1.00 100 5512 364.41-00 State Approved Nonprofit Groups (Per hour) $44.00 $46.00 $2.00 Holiday Rate
100 5512 364.41-00 Resident (Per Hour) $88.00 $91.00 $3.00 100 5512 364.41-00 Non-Resident (Per Hour) $122.00 $127.00 $5.00

TEEN CENTER (THREE HOUR MINIMUM)
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $218.00 $226.00 $8.00 100 5512 364.41-00 Approved CLSC Groups M-Th outside of 6-9pm (Per Hour) $11.00 $11.00 $0.00 100 5512 364.41-00 Approved CLSC Groups F & Sunday (Per Hour) $39.00 $40.00 $1.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $55.00 $57.00 $2.00 Private-Commercial (Saturday Rate)
100 5512 364.41-00 Resident (Per Hour) Saturday Rate $71.00 $74.00 $3.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $83.00 $86.00 $3.00 Holiday Rate
100 5512 364.41-00 Resident (Per Hour) $107.00 $111.00 $4.00 100 5512 364.41-00 Non-Resident (Per Hour) $122.00 $127.00 $5.00

FOXBORO CENTER (THREE HOUR MINIMUM)
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $218.00 $225.00 $7.00 100 5512 364.41-00 Youth Event Reservation Deposit (Refundable after rental $326.00 $338.00 $12.00 100 5512 364.41-00 Approved CLSC Groups M-Th outside of 6-9pm (Per Hour) $11.00 $12.00 $1.00 100 5512 364.41-00 Approved CLSC Groups F & Sunday (Per hour) $28.00 $29.00 $1.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $42.00 $44.00 $2.00 Private-Commercial (Saturday Rate):
100 5512 364.41-00 Resident (Per Hour) Saturday Rate $55.00 $57.00 $2.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $65.00 $67.00 $2.00 100 5512 364.41-00 Decoration/Cleanup Rate (1 Hour Maximum) $28.00 $29.00 $1.00 Holiday Rate
100 5512 364.41-00 Resident (Per Hour) $83.00 $86.00 $3.00 100 5512 364.41-00 Non-Resident (Per Hour) $98.00 $102.00 $4.00 100 5512 364.41-00 Decoration/Cleanup Rate (1 Hour Maximum) $42.00 $44.00 $2.00

OHLONE CENTER (THREE HOUR MINIMUM)
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $218.00 $225.00 $7.00 100 5512 364.41-00 Youth Event Deposit (Refundable after rental) $326.00 $338.00 $12.00 100 5512 364.41-00 Approved CLSC Groups M-Th outside of 6-9pm (Per Hour) $11.00 $11.00 $0.00 100 5512 364.41-00 Approved CLSC Groups F & Sunday (Per hour) $42.00 $44.00 $2.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $62.00 $64.00 $2.00 Private-Commercial (Saturday Rate)
100 5512 364.41-00 Resident (Per Hour) Saturday Rate $83.00 $86.00 $3.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $93.00 $97.00 $4.00 100 5512 364.41-00 Decoration/Cleanup Rate (1 Hour Maximum) $42.00 $44.00 $2.00 Holiday Rate
100 5512 364.41-00 Resident (Per Hour) $122.00 $127.00 $5.00 100 5512 364.41-00 Non-Resident (Per Hour) $139.00 $144.00 $5.00 301
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 5512 364.41-00 Decoration/Cleanup Rate (1 Hour Maximum) $62.00 $64.00 $2.00

SENIOR CENTER (FIVE HOUR MINIMUM)
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $218.00 $225.00 $7.00 100 5512 364.41-00 Youth Event Reservation Deposit (Refundable after rental $326.00 $338.00 $12.00 100 5512 364.41-00 Approved CLSC Groups M-Th outside of 6-9pm (Per Hour) $11.00 $11.00 $0.00 100 5512 364.41-00 Approved CLSC Groups F & Sunday (Per hour) $55.00 $57.00 $2.00 100 5512 364.41-00 State Approved Community and Civic Groups (Per hour) $83.00 $86.00 $3.00 Private-Commercial (Saturday Rate)
100 5512 364.41-00 Resident (Per Hour) Saturday Rate $109.00 $113.00 $4.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $131.00 $136.00 $5.00 100 5512 364.41-00 Decoration/Cleanup Rate (1 Hour Maximum) $55.00 $57.00 $2.00 Fee Based Rental/Holiday:
100 5512 364.41-00 Resident (Per Hour) $163.00 $169.00 $6.00 100 5512 364.41-00 Non-Resident (Per Hour) $196.00 $203.00 $7.00 100 5512 364.41-00 Decoration/Cleanup Rate (2 Hour Maximum) $83.00 $86.00 $3.00 COMMUNITY CENTER (5 HOUR MINIMUM)
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $543.00 $564.00 $21.00 100 5512 364.41-00 Youth Event Reservation Deposit (Refundable after rental) $651.00 $676.00 $25.00 100 5512 364.41-00 Community Center Non-Profit Deposit $218.00 $226.00 $8.00 100 5512 364.41-00 Approved CLSC Groups M-Th outside of 6-9pm (Per Hour) $12.00 $12.00 $0.00 100 5512 364.41-00 Approved CLSC Groups F & Sunday (Per hour) $89.00 $92.00 $3.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $134.00 $139.00 $5.00 100 5512 364.41-00 CLSC Non-Profit Recognition Special Rental Rate 1st 7 hours $690.00 $716.00 $26.00 Private-Commercial (Saturday Rate)
100 5512 364.41-00 Resident (Per Hour) Saturday Rate $173.00 $180.00 $7.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $213.00 $221.00 $8.00 100 5512 364.41-00 Decoration/Cleanup Rate (2 Hour Maximum) $87.00 $90.00 $3.00 100 5512 364.41-00 Round Tables (Each) $9.00 $9.00 $0.00 Holiday Rate
100 5512 364.41-00 Resident (Per Hour) $263.00 $273.00 $10.00 100 5512 364.41-00 Non-Resident (Per Hour) $325.00 $337.00 $12.00 100 5512 364.41-00 Decoration/Cleanup Rate (2 Hour Maximum) $129.00 $134.00 $5.00

KITCHEN RENTAL
Private-Commercial (Saturday Rate)
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $83.00 $86.00 $3.00 100 5512 364.41-00 Resident (Per Hour) $33.00 $34.00 $1.00 100 5512 364.41-00 Non-Resident (Per Hour) $39.00 $40.00 $1.00 100 5512 364.41-00 Approved CLSC Groups M-Th outside of 6-9pm (Per Hour) $11.00 $12.00 $1.00 100 5512 364.41-00 Approved CLSC Groups F & Sunday (Per hour) $17.00 $18.00 $1.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $26.00 $27.00 $1.00 Holiday Rate
100 5512 364.41-00 Resident (Per Hour) $50.00 $52.00 $2.00 100 5512 364.41-00 Non-Resident (Per Hour) $60.00 $62.00 $2.00

GYMNASIUM
Private - Commercial
100 5512 364.41-00 Reservation Deposit (refundable after rental) $109.00 $113.00 $4.00 100 5512 364.41-00 Resident (per hour) $94.00 $98.00 $4.00 100 5512 364.41-00 Three or more days (Per hour) $66.00 $69.00 $3.00 100 5512 364.41-00 Non-resident (Per hour) $108.00 $112.00 $4.00 100 5512 364.41-00 Three or more days (Per hour) $85.00 $88.00 $3.00 100 5512 364.41-00 CLSC Community and Civic Groups (Per hour) $47.00 $49.00 $2.00 302
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 5512 364.41-00 CLSC Three or more days (Per hour) $33.00 $34.00 $1.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $46.00 $48.00 $2.00

COMMUNITY CENTER PRESS ROOM
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $83.00 $86.00 $3.00 Private-Commercial (Saturday Rate)
100 5512 364.41-00 Resident (Per Hour) Saturday Rate $33.00 $34.00 $1.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $50.00 $52.00 $2.00 100 5512 364.41-00 Approved CLSC Groups M-Th outside of 6-9pm (Per Hour) $11.00 $12.00 $1.00 100 5512 364.41-00 Approved CLSC Groups F & Sunday (Per hour) $17.00 $18.00 $1.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $28.00 $29.00 $1.00 Holiday Rate
100 5512 364.41-00 Resident (Per Hour) $50.00 $52.00 $2.00 100 5512 364.41-00 Non-Resident (Per Hour) $76.00 $79.00 $3.00

PARK/PICNIC RENTALS
100 5512 364.45-00 Damage Deposit for Permit for gathering of 50 or more people in a park (refundable after date of use) $109.00 $113.00 $4.00
100 5512 364.45-00 Park Permit for gathering of 50 or more people in a park Resident $120.00 $125.00 $5.00 100 5512 364.45-00 Park Permit for gathering of 50 or more people in a park Non-Resident $162.00 $168.00 $6.00

PICNIC AREAS
Private - Commercial
100 5512 364.45-00 Reservation Deposit Picnic Area Rental (Refundable after rental) $109.00 $113.00 $4.00 100 5512 364.41-00 Resident 9 hours $120.00 $125.00 $5.00 100 5512 364.41-00 Non-resident 9 hours $162.00 $168.00 $6.00 State Approved Nonprofit Groups (per hour)
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $55.00 $57.00 $2.00 100 5512 364.41-00 Resident 9 hours $60.00 $62.00 $2.00 100 5512 364.41-00 Non-resident 9 hours $83.00 $86.00 $3.00

REFUGIO VALLEY PARK GAZEBO
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $55.00 $57.00 $2.00 Private - Commercial
100 5512 364.41-00 Resident (Per Hour) Saturday Rate $120.00 $125.00 $5.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $162.00 $168.00 $6.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $60.00 $62.00 $2.00 100 5512 364.41-00 Electricity $34.00 $35.00 $1.00
Fee Based Rental/Holiday:
100 5512 364.41-00 Resident (per hour) $151.00 $157.00 $6.00 100 5512 364.41-00 Non-resident (Per hour) $178.00 $185.00 $7.00

DUCK PARK GAZEBO
100 5512 364.41-00 Reservation Deposit (Refundable after rental) $55.00 $57.00 $2.00 Private - Commercial
100 5512 364.41-00 Resident (Per Hour) Saturday Rate $58.00 $60.00 $2.00 100 5512 364.41-00 Non-Resident (Per Hour) Saturday Rate $67.00 $70.00 $3.00 100 5512 364.41-00 State Approved Nonprofit Groups (per hour) $30.00 $31.00 $1.00 100 5512 364.41-00 Electricity $18.00 $19.00 $1.00

BOCCE BALL COURTS
100 5512 364.41-00 Equipment Deposit (Refundable) - per set $21.00 $21.00 $0.00 100 5512 364.41-01 24 Hour Equipment Rental (Monday-Thursday) - per set $10.00 $10.00 $0.00 100 5512 364.41-00 Weekend Equipment Rental (Thursday-Sunday) - per set $20.00 $20.00 $0.00 100 5512 364.41-00 Resident Weekday Court Rental Fee $6.00 $6.00 $0.00 303
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 5512 364.41-00 Non-Resident Weekday Court Rental Fee $11.00 $11.00 $0.00 100 5512 364.41-00 Resident Weekend Court Rental Fee - per hour/court $5.00 $5.00 $0.00 100 5512 364.41-00 Non-Resident Weekend Court Rental Fee - per hour/court $10.00 $10.00 $0.00 100 5512 364.41-00 Community/Civic Tournament Play Fee - per hour/court $5.00 $5.00 $0.00 100 5512 364.41-00 Resident Tournament Play Fee - per hour/court $10.00 $10.00 $0.00 100 5512 364.41-00 Non-Resident Tournament Play Fee - per hour/court $15.00 $15.00 $0.00

HORSE SHOE PITS
100 5512 364.41-00 Equipment Deposit (Refundable) - per set $21.00 $21.00 $0.00 100 5512 364.41-01 24 Hour Equipment Rental (Monday-Thursday) - per set $10.00 $10.00 $0.00 100 5512 364.41-00 Weekend Equipment Rental (Thursday-Sunday) - per set $20.00 $20.00 $0.00 100 5512 364.41-00 Resident Weekday Court Rental Fee $6.00 $6.00 $0.00 100 5512 364.41-00 Non-Resident Weekday Court Rental Fee $11.00 $11.00 $0.00 100 5512 364.41-00 Resident Weekend Court Rental Fee - per hour/court $5.00 $5.00 $0.00 100 5512 364.41-00 Non-Resident Weekend Court Rental Fee - per hour/court $10.00 $10.00 $0.00 100 5512 364.41-00 Community/Civic Tournament Play Fee - per hour/court $5.00 $5.00 $0.00 100 5512 364.41-00 Resident Tournament Play Fee - per hour/court $10.00 $10.00 $0.00 100 5512 364.41-00 Non-Resident Tournament Play Fee - per hour/court $15.00 $15.00 $0.00

COMMUNITY EVENTS
Cultural Festival
100 4012 367.05-00 Community and Civic Groups - Food/Craft/Game Booth (10 x 10 space) $111.00 $111.00 $0.00 100 4012 367.05-00 Community and Civic Groups - Food/Craft/Game Booth (10 x 20 space) $194.00 $194.00 $0.00 100 4012 367.05-00 Commercial - Food/Craft/Game Booth (10 x 10 space) $250.00 $250.00 $0.00 100 4012 367.05-00 Commercial - Food/Craft/Game Booth (10 x 20 space) $331.00 $331.00 $0.00 100 4012 367.05-00 Electric Hookup (2 Outlets) $40.00 $40.00 $0.00 100 4012 367.05-00 Electric Hookup (Additional) $17.00 $17.00 $0.00 100 4012 367.05-00 Booth rental 10x10 Private/Commercial $150.00 $150.00 $0.00 100 4012 367.05-00 Booth rental 10x20 Private/Commercial $232.00 $232.00 $0.00 100 4012 367.05-00 Booth rental 10x10 Non Profit $84.00 $84.00 $0.00 100 4012 367.05-00 Booth rental 10x20 Non Profit $144.00 $144.00 $0.00 100 4012 367.05-00 Health Permits Market Rate + $10.00 Market Rate + $10.00 $0.00

SENIOR ACTIVITIES
100 5524 364.39-00 Class Fee (Discounts for 5 or more) (Based on instructor's contract) $1.00 - $205.00 $1.00 - $205.00 $0.00 100 5524 364.39-00 Annual Membership Fee (Includes internet, printing, faxing and copying) $21.00 $25.00 $4.00

CHILD CARE
Before/After School Child Care K-5TH Grades
Fees are for 4 week sessions.

Before School (7:00 - 8:30 a.m.)
100 55XX 364.32-00 Resident $208.00 $212.00 $4.00
100 55XX 364.32-00 Non-resident $261.00 $266.00 $5.00
After School (1st-5th Grade Dismissal until 5:30 p.m.)
100 55XX 364.32-00 Option 1 Resident $5.00 $5.00 $0.00
100 55XX 364.32-00 Option 1 Non-resident $6.00 $6.00 $0.00 100 55XX 364.32-00 Option 2 Resident $6.00 $6.00 $0.00
100 55XX 364.32-00 Option 2 Non-resident $6.00 $6.00 $0.00 100 55XX 364.32-00 Option 3 Resident $6.00 $6.00 $0.00
100 55XX 364.32-00 Option 3 Non-resident $7.00 $7.00 $0.00 100 55XX 364.32-00 Withdrawal Fee $82.00 $85.00 $3.00
Other Fees:
304
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 55XX 364.32-00 Late Payment Fee $37.00 $38.00 $1.00 100 55XX 364.32-00 2 or more late payments $42.00 $44.00 $2.00 100 55XX 364.32-00 Late Pickup Fee per minute $2.00 $2.00 $0.00 100 55XX 364.32-00
Program Change Fee --
First 2 program changes free
Each subsequent change $15.00
$20.00 $21.00 $1.00
100 55XX 364.32-00 Late Registration Fee--after deadline but before service begins $15.00 $16.00 $1.00 100 55XX 364.32-00 Late Registration Fee--paid on day service begins $31.00 $32.00 $1.00 100 55XX 364.32-00 AM Drop-In -- One Day Only $16.00 $17.00 $1.00 100 55XX 364.32-00 Kinder PM Drop-In -- One Day Only $42.00 $44.00 $2.00 100 55XX 364.32-00 Grade 1st-8th PM Drop-In -- One Day Only $31.00 $32.00 $1.00 100 55XX 364.32-00 Multi-child discount" for families with two or more children enrolled in the program $0.05 $0.05 $0.00 100 55XX 364.32-00 Registration Fee $104.00 $108.00 $4.00 100 55XX 364.32-00 Registration Fee discount when registering for new school year prior to August 1st. $0.51 $1.00 $0.49 100 55XX 364.32-00 Sub Care Fee Hourly $10.00 $10.00 $0.00 100 55XX 364.32-00 Daily Rate for In-service Days $57.00 $59.00 $2.00 100 55XX 364.32-00 Deposit for In-service Day (Will be applied to Fall childcare fees when child attends $31.00 $32.00 $1.00

PRESCHOOL PROGRAMS
Per month - MWF (9:00am - Noon)
100 5528 364.37-00 Resident $260.00 $264.00 $4.00
100 5528 364.37-00 Non-resident $320.00 $322.00 $2.00
Per month - TTH (9:00am - 11:30am)
100 5528 364.37-00 Resident $166.00 $173.00 $7.00
100 5528 364.37-00 Non-resident $207.00 $213.00 $6.00
Other Fees:

Per month - M-Th (9am-noon)
100 5528 364.37-00 Resident $334.00 $336.00 $2.00
100 5528 364.37-00 Non-resident $406.00 $406.00 $0.00
Per month - M-F (9am-Noon)
100 5528 364.37-00 Resident $414.00 $430.00 $16.00
100 5528 364.37-00 Non-resident $506.00 $525.00 $19.00
100 5528 364.37-00 Late Payment Fee $37.00 $37.00 $0.00 100 5528 364.37-00 2 or more late payments $42.00 $42.00 $0.00 100 5528 364.37-00 Late Pick Up Fee per minute $3.00 $3.00 $0.00 100 5528 364.37-00 Registration Fee $104.00 $109.00 $5.00 100 5528 364.37-00 Registration Fee discount when registering for new school year prior to August 1st. $1.00 $1.00 $0.00 CAMPS for K-6th Graders
7:30am-9:30pm 4 days/week
100 55XX 364-32-00 Resident $25.00 $26.00 $1.00
100 55XX 364-32-00 Non-resident $30.00 $31.00 $1.00
9:30am-5:00pm 5 days/week K-6th (includes entertainment, swimming and field trips) 100 55XX 364-32-00 Resident $209.00 $217.00 $8.00
100 55XX 364-32-00 Non-resident $230.00 $239.00 $9.00
9:00am-12:00pm 4 days/week (ages 3-5)
100 55XX 364-32-00 Resident $94.00 $98.00 $4.00
100 55XX 364-32-00 Non-resident $113.00 $117.00 $4.00
Daily Drop In Rate / day
100 55XX 364-32-00 Resident $61.00 $63.00 $2.00
305
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 55XX 364-32-00 Non-resident $69.00 $72.00 $3.00

OTHER FEES
100 55XX 364.31-00 Deposit for the Week $26.00 $26.00 $0.00 100 55XX 364.31-00 Sub Care Deposit for the week $11.00 $11.00 $0.00 100 55XX 364.31-00 Multi-child discount" for families with two or more children enrolled in the program $0.05 $0.05 $0.00 100 55XX 364.31-00 Late payment Fee $20.00 $21.00 $1.00 100 55XX 364.31-00 Late Registration Fee--after deadline but before service begins $16.00 $17.00 $1.00 100 55XX 364.31-00 Late Registration Fee--paid on day service begins $32.00 $33.00 $1.00 100 55XX 364.31-00 Late pickup Fee per minute $3.00 $3.00 $0.00 TEENS
100 5540 364.64-00 Yearly Membership (TYC) (Includes T-shirt) $31.00 to $53.00 $31.00 to $53.00 $0.00 100 5540 364.64-00 Dances/Events $3.00 to $21.00 $3.00 to $21.00 $0.00 100 5540 364.64-00 Drop-in $3.00 to $6.00 $3.00 to $6.00 $0.00 100 5540 364.64-00 Camps $10.00 to $211.00 $10.00 to $211.00 $0.00 100 5540 364.64-00 Trips (Range) $10.00 to $211.00 $10.00 to $211.00 $0.00 Teen Camps 6th-9th Grades: 8:00am-5:00pm 5 days/week
100 5543 364.62-00 Resident $240.00 $240.00 $0.00
100 5543 364.62-00 Non-resident $271.00 $271.00 $0.00
100 55XX 364.63-00 Deposit for week $26.00 $26.00 $0.00 100 55XX 364.63-00 Late payment fee per week $18.00 $18.00 $0.00 Multi-child discount" for families with two or more children enrolled in the program $0.05 $0.05 $0.00 100 55XX 364.63-00 Late Registration Fee--after deadline but before service begins $18.00 $18.00 $0.00 100 55XX 364.63-00 Late Registration Fee--paid on day service begins $34.00 $34.00 $0.00 100 55XX 364.63-00 Late pickup Fee per minute $3.00 $3.00 $0.00 Discount Passes for Drop-in
Youth 10 Tickets
100 5540 364.64-00 Resident $20.00 $20.00 $0.00
100 5540 364.64-00 Non-resident $26.00 $26.00 $0.00
Youth 25 Tickets
100 5540 364.64-00 Resident $48.00 $48.00 $0.00
100 5540 364.64-00 Non-resident $62.00 $62.00 $0.00

AQUATICS

PUBLIC SWIM
Children under 1 year are free
Adults (18 years and up)
100 5536 364.61-00 Resident $6.00 $6.00 $0.00
100 5536 364.61-00 Non-resident $7.00 $7.00 $0.00
Youth (1 to 17 years)
100 5536 364.61-00 Resident $5.00 $5.00 $0.00
100 5536 364.61-00 Non-resident $6.00 $6.00 $0.00
Seniors
100 5536 364.61-00 Resident $5.00 $5.00 $0.00
100 5536 364.61-00 Non-resident $6.00 $6.00 $0.00

LAP SWIM
Adults (18 years and up)
100 5536 364.61-00 Resident $6.00 $6.00 $0.00
100 5536 364.61-00 Non-resident $7.00 $7.00 $0.00
Youth (14 to 17 years)
306
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 5536 364.61-00 Resident $5.00 $5.00 $0.00
100 5536 364.61-00 Non-resident $6.00 $6.00 $0.00
Seniors
100 5536 364.61-00 Resident $5.00 $5.00 $0.00
100 5536 364.61-00 Non-resident $6.00 $6.00 $0.00

SEASON SWIM PASSES
Dynamite Pass (10 visits)
Adults (18 years and up)
100 5536 364.61-00 Resident $47.00 $47.00 $0.00
100 5536 364.61-00 Non-resident $57.00 $57.00 $0.00
Youth (1 to 17 years)
100 5536 364.61-00 Resident $37.00 $37.00 $0.00
100 5536 364.61-00 Non-resident $47.00 $47.00 $0.00
Frequent Swimmer Pass (25 visits)
Adults (18 years and up)
100 5536 364.61-00 Resident $112.00 $113.00 $1.00
100 5536 364.61-00 Non-resident $138.00 $140.00 $2.00
Youth (1 to 17 years)
100 5536 364.61-00 Resident $83.00 $84.00 $1.00
100 5536 364.61-00 Non-resident $111.00 $113.00 $2.00

SWIM LESSONS
100 5536 364.61-00 Resident $93.00 $97.00 $4.00
100 5536 364.61-00 Non-resident $103.00 $107.00 $4.00
100 5536 364.61-00 Resident $93.00 $97.00 $4.00
100 5536 364.61-00 Non-resident $103.00 $107.00 $4.00
100 5536 364.61-00 Resident $203.00 $210.00 $7.00
100 5536 364.61-00 Non-resident $224.00 $230.00 $6.00
100 5536 364.61-00 Resident $114.00 $114.00 $0.00
100 5536 364.61-00 Non-resident $124.00 $124.00 $0.00
100 5536 364.61-00 Resident $142.00 $142.00 $0.00
100 5536 364.61-00 Non-resident $157.00 $157.00 $0.00
Aquatic Certification Courses - these courses range in cost depending upon availability of instructors and length of required course. Some courses may utilize contract instructors who are required to set their own course fee. Non-resident fee will be +20% of Resident Fee. $53.00 to $317.00 $55.00 to $329.00 $2 - $12
Water Polo (12/1hr Meetings)
100 5536 364.61-00 Resident $195.00 $202.00 $7.00
100 5536 364.61-00 Non-resident $205.00 $213.00 $8.00
Jr Guard
100 5536 364.61-00 Resident $257.00 $267.00 $10.00
100 5536 364.61-00 Non-resident $299.00 $310.00 $11.00
Youth Swim Team - Piranhas
100 5536 364.62-00 One Child $405.00 $410.00 $5.00
100 5536 364.62-00 Two Children $715.00 $720.00 $5.00
100 5536 364.62-00 Three Children $250 for each additional child $260 for each additional child $10.00 East Bay Silver Dolphins Monthly Dues
100 5536 364.62-00 Pre-Team (Limit 3 months) $91.00 $94.00 $3.00 Semi Private (Eight 25 minute classes)
Parent/Infant/Toddler Lessons (Eight 25 minute classes) Group Lessons (Eight 25 minute classes)
Individual Lessons (Eight 25 minute classes)
Adult Lessons (Eight 25 minute classes)
307
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 5536 364.62-00 Team $94.00-$119.00 $98.00-$124.00 $4 - $5 100 5536 364.62-00 Seasonal $337.00 $350.00 $13.00
Team Monthly dues $100-$140 $105-$145 $5.00
Public Swim Pool Parties
100 5536 364.61-00 Deposit (Refundable) $79.00 $82.00 $3.00 100 5536 364.61-00 Reservation Fee (includes 10 guests, 2 patio tables, and 1 reserve space for duration of public swim on a Saturday) $204.00 $212.00 $8.00
Pool Rentals
100 5536 364.61-00 Deposit (Refundable) $382.00 $397.00 $15.00 100 5536 364.61-00 Insurance Fee Market Rate + $15.00 Market Rate + $16.00 $1.00 100 5536 364.61-00 Residents (Per hour) $192.00 $199.00 $7.00 100 5536 364.61-00 Non-resident (Per hour) $202.00 $210.00 $8.00 51 - 100 persons
100 5536 364.61-00 Residents (Per hour) $225.00 $234.00 $9.00 100 5536 364.61-00 Non-resident (Per hour) $236.00 $245.00 $9.00 101 - 150 persons
100 5536 364.61-00 Residents (Per hour) $252.00 $262.00 $10.00 100 5536 364.61-00 Non-resident (Per hour) $262.00 $272.00 $10.00 Nonprofit Group Pool Rentals
100 5536 364.61-00 State Approved Nonprofit Groups/hour/for every 2 lifeguards $103.00 $107.00 $4.00

ATHLETIC FACILITIES
Field Reservations (Per Hour)
100 5538 364.44-00 Bases Rentals/Deposit $25.00 $17.00 $18.00 $1.00 100 5538 364.44-00 Resident $10.00 $10.00 $0.00
100 5538 364.44-00 Non-resident $20.00 $21.00 $1.00
100 5538 364.44-00 Youth Sport Associations $8.00 $8.00 $0.00 100 5538 364.44-00 State Approved Nonprofit Groups $6.00 $6.00 $0.00 Tennis Courts (Per hour) (Regular play per court)
100 5538 364.41-00 Lights per hour $5.00 $5.00 $0.00
Weekdays 7 AM to 4 PM
100 5538 364.44-00 Resident $7.00 $7.00 $0.00
100 5538 364.44-00 Non-resident $8.00 $8.00 $0.00
Weekday evenings 4 PM to 10 PM
100 5538 364.44-00 Resident $7.00 $7.00 $0.00
100 5538 364.44-00 Non-resident $8.00 $8.00 $0.00
Weekends and Holidays
100 5538 364.44-00 Resident $10.00 $10.00 $0.00
100 5538 364.44-00 Non-resident $11.00 $11.00 $0.00
100 5538 364.44-00 State Approved Nonprofit Groups $4.00 $4.00 $0.00 Outdoor Basketball Courts
100 5538 364.41-00 Lights per hour $5.00 $5.00 $0.00
Weekdays 7 AM to 4 PM
100 5538 364.44-00 Resident $7.00 $7.00 $0.00
100 5538 364.44-00 Non-resident $8.00 $8.00 $0.00
Weekday evenings 4 PM to 10 PM
100 5538 364.44-00 Resident $7.00 $7.00 $0.00
100 5538 364.44-00 Non-resident $8.00 $8.00 $0.00
Weekends and Holidays
100 5538 364.44-00 Resident $10.00 $10.00 $0.00
100 5538 364.44-00 Non-resident $11.00 $11.00 $0.00
Hanna Ball field or Soccer Field, Ohlone, and Woodfield Ball fields 308
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 5538 364.44-00 State Approved Nonprofit Groups $4.00 $4.00 $0.00 Tennis Courts Tournaments (Per hour)
100 5538 364.44-00 Community/Civic $11.00 $11.00 $0.00
100 5538 364.44-00 Resident $20.00 $20.00 $0.00
100 5538 364.44-00 Non-resident $26.00 $26.00 $0.00
Open Gym Activities
Adult Drop-In
100 5538 364.44-00 Resident $6.00 $6.00 $0.00
100 5538 364.44-00 Non-resident $7.00 $7.00 $0.00
Youth Drop-In
100 5538 364.44-00 Resident $4.00 $4.00 $0.00
100 5538 364.44-00 Non-resident $5.00 $5.00 $0.00
Senior Drop-In
100 5538 364.44-00 Resident $4.00 $4.00 $0.00
100 5538 364.44-00 Non-resident $5.00 $5.00 $0.00
Morning Basketball/Volleyball
Adults only
100 5538 364.44-00 Resident $6.00 $6.00 $0.00
100 5538 364.44-00 Non-resident $7.00 $7.00 $0.00
Discount Adult Open Gym Passes
10 Tickets
100 5538 364.44-00 Resident $45.00 $47.00 $2.00
100 5538 364.44-00 Non-resident $55.00 $57.00 $2.00
25 Tickets
100 5538 364.44-00 Resident $109.00 $113.00 $4.00
100 5538 364.44-00 Non-resident $136.00 $141.00 $5.00
Seniors 10 Tickets
100 5538 364.44-00 Resident $32.00 $33.00 $1.00
100 5538 364.44-00 Non-resident $43.00 $45.00 $2.00
Seniors 25 Tickets
100 5538 364.44-00 Resident $82.00 $85.00 $3.00
100 5538 364.44-00 Non-resident $108.00 $112.00 $4.00
Youth 10 Tickets
100 5538 364.44-00 Resident $33.00 $34.00 $1.00
100 5538 364.44-00 Non-resident $44.00 $46.00 $2.00
Youth 25 Tickets
100 5538 364.44-00 Resident $82.00 $85.00 $3.00
100 5538 364.44-00 Non-resident $108.00 $112.00 $4.00

ADULT SPORTS
Coed Adult Softball
100 5538 364.44-00 Team $650.00 $675.00 $25.00
Men's Softball
100 5538 364.44-00 Team $650.00 $675.00 $25.00
Adult Volleyball
100 5538 364.44-00 Resident Team $271.00 $281.00 $10.00 100 5538 364.44-00 Non-resident Team $298.00 $309.00 $11.00 Hercules/Pinole Adult Softball (fall)
100 5538 364.44-00 Team $704.00 $731.00 $27.00
Adult Flag Football
100 5538 364.44-00 Team $678.00 $704.00 $26.00
Adult Basketball
100 5538 364.44-00 Team $704.00 $731.00 $27.00
100 5538 364.44-00 Game Forfeit Fee $57.00 $59.00 $2.00 309
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
Young Adult 5 on 5 Basketball (Ages 16-19)
100 5538 364.44-00 Team $596.00 $619.00 $23.00
Adult Basketball Tournament (3 on 3)
100 5538 364.44-00 Resident Team $190.00 $197.00 $7.00
100 5538 364.44-00 Non-resident Team $217.00 $225.00 $8.00 Golf League
100 5538 364.44-00 Resident Team $255.00 $265.00 $10.00 100 5538 364.44-00 Non-resident Team $275.00 $285.00 $10.00

YOUTH SPORTS
Youth Sports Camp/Clinic
100 5538 364.44-00 Resident $87.00 - $219.00 $90.00 - $227.00 $3 - $8 100 5538 364.44-00 Non-resident $87.00 - $219.00 $90.00 - $227.00 $3 - $8 Youth Basketball League
100 5538 364.44-00 Resident Team $167.00 $173.00 $6.00
100 5538 364.44-00 Non-resident Team $199.00 $207.00 $8.00 Table Tennis 16 years and up
100 5538 364.44-00 Monthly Fee - Resident $26.00 $27.00 $1.00 100 5538 364.44-00 Monthly Fee - Non-resident $33.00 $34.00 $1.00

ENGINEERING DIVISION
100 5435 332.01-00 Final Parcel/sSbdivision Map
In-House - $1,650 plus Actual Contract Costs Contract - $5,000 deposit with charges at Actual Contract Costs plus 25% This includes three reviews
In-House - $1,650 plus Actual Contract Costs
Contract - $5,000 deposit with charges at
Actual Contract Costs plus 25% This
includes three reviews
$0.00
100 5435 332.02-00 Public Improvement Plan Check (In-House). The Fee includes three reviews. $0-$50,000 - 3% of the improvement value ($500 minimum) $50,001-$100,000 - $1,500 + 1.75% of the improvement value over $50,000
$100,001-$500,000 - $2,375 + 0.5% of the improvement value over $100,000
$500,001+ - $4,375 + 0.5% of the improvement value over $500,000
$0-$50,000 - 3% of the improvement value
($500 minimum)
$50,001-$100,000 - $1,500 + 1.75% of the
improvement value
over $50,000
$100,001-$500,000 - $2,375 + 0.5% of the
improvement value
over $100,000
$500,001+ - $4,375 + 0.5% of the
improvement value over
$500,000
$0.00
100 5435 332.02-00 Public Improvement Plan Check (Contract) The Fee includes three reviews. Deposit based on above amounts based on the value of the improvements with charges at actual contract costs plus 25% Deposit based on above amounts based on
the value of the improvements with charges
at actual contract costs plus 25%
$0.00
100 5435 332.02-00 Public Improvement Inspection (In-House). The Fee includes three reviews. $0-$50,000 - 2.4% of the improvement value ($500 minimum) $50,001-$100,000 - $1,200 + 2.4% of the improvement value over $50,000
$100,001-$500,000 - $2,400 + 0.5% of the improvement value over $100,000
$500,001+ - $4,400 + 0.4% of the improvement value over $500,000
$0-$50,000 - 2.4% of the improvement value
($500 minimum)
$50,001-$100,000 - $1,200 + 2.4% of the
improvement value
over $50,000
$100,001-$500,000 - $2,400 + 0.5% of the
improvement value
over $100,000
$500,001+ - $4,400 + 0.4% of the
improvement value over
$500,000
$0.00
100 5435 332.02-00 Public Improvement Inspection (Contract). The Fee includes three reviews. Deposit based on above amounts based on the value of the improvements with charges at actual contract costs plus 25% Deposit based on above amounts based on
the value of the improvements with charges
at actual contract costs plus 25%
$0.00
310
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 5435 332.02-00 Grading Plan Check (In-house). This includes three reviews. 101-1,000 cubic yards - $445 + $70 per 100 CY over 100 CY 1,001-10,000 cubic yards - $1,075 + $50 per 1,000 CY over 1,000 CY
10,001-100,000 cubic yards - $1,525 + $118 per 10,000 CY over 10,000 CY
100,001+ cubic yards - $2,587 + $80 per 10,000 CY over
100,000 CY
101-1,000 cubic yards - $445 + $70 per 100
CY over 100 CY
1,001-10,000 cubic yards - $1,075 + $50 per
1,000 CY over
1,000 CY
10,001-100,000 cubic yards - $1,525 + $118
per 10,000 CY
over 10,000 CY
100,001+ cubic yards - $2,587 + $80 per
10,000 CY over
100,000 CY
$0.00
100 5435 332.02-00 Grading Plan Check (Contract). This includes three reviews. Deposit based on above amounts based on the value of the improvements with charges at actual contract costs plus 25% Deposit based on above amounts based on
the value of the improvements with charges
at actual contract costs plus 25%
$0.00
100 5435 332.02-00 Grading Inspection (In-house). This includes three reviews. 0-100 cubic yards - $270
101-1,000 cubic yards - $270 plus $45 per 100 CY over 100 CY 1,001-10,000 cubic yards - $675 plus $45 per 1,000 CY over 1,000 CY
10,001-100,000 cubic yards - $1,080 plus $89 per 10,000 CY over 10,000 CY
100,001+ cubic yards - $1,881 plus $60 per 10,000 CY over 100,000 CY
0-100 cubic yards - $270
101-1,000 cubic yards - $270 plus $45 per 100
CY over 100 CY
1,001-10,000 cubic yards - $675 plus $45 per
1,000 CY over
1,000 CY
10,001-100,000 cubic yards - $1,080 plus $89
per 10,000 CY
over 10,000 CY
100,001+ cubic yards - $1,881 plus $60 per
10,000 CY over
100,000 CY
$0.00
100 5435 332.02-00 Grading Inspection (Contract). This includes three reviews. Deposit based on above amounts based on the value of the improvements with charges at actual contract costs plus 25% Deposit based on above amounts based on
the value of the improvements with charges
at actual contract costs plus 25%
$0.00
100 5435 332.02-00 Stormwater Plan Review (In-house) Deposit determined by staff with charges at the fully allocated hourly rates for all involved personnel
Deposit determined by staff with charges at
the fully allocated hourly rates for all
involved personnel
$0.00
100 5435 332.02-00 Stormwater Plan Review (Contract) Deposit determined by staff with charges at actual contract costs plus 25%
Deposit determined by staff with charges at
actual contract costs plus 25% $0.00
100 5435 332.02-00 SWPP Stormwater Inspection Charges at the fully allocated hourly rates for all staff involved plus any actual contract costs
Charges at the fully allocated hourly rates for
all staff involved plus any actual contract
costs
$0.00
100 5435 332.03-00 Encroachment Permit (Utility) Charges at the fully allocated hourly rates for all staff involved plus any actual contract costs
Charges at the fully allocated hourly rates for
all staff involved plus any actual contract
costs
$0.00
100 5435 332.03-00 Encroachment Permit (Non-Utility) $355 per permit $368 per permit $13.00 100 5435 332.03-00 Temporary Encroachment Permit $180 per permit $187 per permit $7.00 100 5435 332.03-00 Landscape Plan Review/Inspection Deposit determined by staff with charges at the fully allocated hourly rates for all personnel involved plus any contract costs Deposit determined by staff with charges at
the fully allocated hourly rates for all
personnel involved plus any contract costs
$0.00
100 5435 332.15-00 Additional Engineering Plan Review/Inspection (In-house) Deposit determined by staff with charges at the fully allocated hourly rates for all involved personnel
Deposit determined by staff with charges at
the fully allocated hourly rates for all
involved personnel
$0.00
100 5435 332.15-00 Additional Engineering Plan Review/Inspection (Contract) Deposit determined by staff with charges at actual contract costs plus 25%
Deposit determined by staff with charges at
actual contract costs plus 25% $0.00
100 5435 332.15-00 Miscellaneous Engineering Services (In-house) Deposit determined by staff with charges at the fully allocated hourly rates for all involved personnel
Deposit determined by staff with charges at
the fully allocated hourly rates for all
involved personnel
$0.00
100 5435 332.15-00 Miscellaneous Engineering Services (Contract) Deposit determined by staff with charges at actual contract costs plus 25%
Deposit determined by staff with charges at
actual contract costs plus 25% $0.00
100 5435 332.15-00 Wide Load Permit (Single Permit) $16 per permit $17 per permit $1.00 311
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 5435 332.15-00 Wide Load Permit (Annual Permit) $90 per permit $93 per permit $3.00 100 5435 332.15-00 House Moving permit Deposit determined by staff with charges at the fully allocated hourly rates for all staff involved plus any actual contract costs Deposit determined by staff with charges at
the fully allocated hourly rates for all staff
involved plus any actual contract costs
$0.00
100 5435 332.15-00 Haul Route Permit $180 per permit $187 per permit $7.00 100 5435 332.03-00 Sidewalk Dining Permit (New) $290 per permit $301 per permit $11.00 100 5435 332.03-00 Sidewalk Dining Permit (Renewal) $65 per permit $67 per permit $2.00 100 5435 000-03-32 Sidewalk Vending Permit $100 per permit $104 per permit $4.00 381 0000 363.01-00 Assessment Apportionment Fee Deposit determined by staff with charges at the fully allocated hourly rates for all staff involved plus any actual contract costs Deposit determined by staff with charges at
the fully allocated hourly rates for all staff
involved plus any actual contract costs
$0.00
Sewer service charge
420 0000 368.03-00 Residential $625.80 $650.00 $24.20
420 0000 368.03-00 Apartment Units $427.16 $443.00 $15.84 420 0000 368.03-00 Non-residential (Per Hundred Cubit Foot) $3.87 $4.00 $0.13 420 0000 368.05-00 Non-residential Wastewater Contribution Permit Application $1,288.53 $1,337.00 $48.47 420 0000 368.05-00 Annual renewal $645.81 $670.00 $24.19 420 0000 368.09-00 Sewer connections (If not paid through assessment dist.) $5,155.15 $5,351.00 $195.85 420 0000 Hotel Sewer Connection Fees $2,127.98 $2,209.00 $81.02 420 0000 368.09-00 Public/Private Pool sewer connection (As % of building permit fee) 10% 10% $0.00 420 0000 368-11-00 Sewer Lateral Certificate $220 per certificate $228 per certificate $8.00 Staff Services
100 5235 362.04-00 Planning Staff Counter Service, first 15 minutes No Charge No Charge $0.00 100 5235 362.04-00 Planning Staff Service Pre-Submittal Review $750 per application $779.00 $29.00 100 5235 362.04-00 Time Extension (Administrative) $3,591.00 $131.00 100 5235 362.04-00 Time Extension (Legislative, where not otherwise specified) 100 5235 362.04-00 Administrative Staff Appeal $4,707.00 $172.00 100 5235 362.04-00 Appeal Administrative Decision (Planning Commission hearing) 100 5235 362.04-00 Appeal Planning Commission Decision (City Council hearing) $5,515 per appeal $5,725.00 $210.00 Use Permits
100 5235 362.05-01 Temporary Use Permit (TUP) - Administration $795 per application $825.00 $30.00 100 5235 362.05-01 Temporary Use Permit (TUP) - Planninc Commission (PC) $4,870 per application $5,045.00 $175.00 100 5235 362.05-01 Administrative/Minor Use Permit $1,065 per application $1,105.00 $40.00 100 5235 362.05-01 Home - Based Occupation Permit (50% Cost Recovery) $532 per application $552.00 $20.00 100 5235 362.05-01 Conditional Use Permit (Legislative) $7,070 per application $7,339.00 $269.00 100 5235 362.05-01 Any Special Use Permit for Wireless Facilities (as outlined in Title 10 Chapter 16 of Hercules Municipal Code)
$5,000 deposit with charges at the fully allocated hourly rates for all personnel involved plus any contract costs $0.00 $0.00 100 5235 362.05-01 Conditional User Permit (CUP) Amendment - Minor $4,870 per application $5,055.00 $185.00 100 5235 362.05-01 Private Property Special Event Permit (100-499 attendees) $925 per permit $960.00 $35.00 100 5235 362.05-01 Private Property Special Event Permit (500+ attendees) $2,350 per permit $2,439.00 $89.00 100 5235 362.05-01 Public Property Special Event Permit (100-499 attendees) $2,695 per permit $2,797.00 $102.00 100 5235 362.05-01 Public Property Special Event Permit (500+ attendees) $3,275 per permit $3,399.00 $124.00 100 5235 362.05-01 Paving Plan Review
$305 per plan plus actual costs at the fully allocated hourly rate of all involved Engineering staff and any outside contract costs if stormwater calculations are needed
$317.00 $12.00
100 5235 362.05-01 Paving Permit $305 per permit $317.00 $12.00 Design
100 5235 362.05-02 Design Review - Administrative $2,260 per application $2,346.00 $86.00 100 5235 362.05-02 Design Review - Legislative $7,195 per application $7,468.00 $273.00 Subdivision
100 5235 362.05-03 Tentative Parcel/Subdivision Map Deposit determined by staff with charges at the fully allocated hourly rates for all personnel involved plus any contract costs Deposit determined by staff with charges at
the fully allocated hourly rates for all
personnel involved plus any contract costs
$0.00

PLANNING DIVISION
$3,460 per application
$4,535 per appeal
312
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 5235 362.05-03 Lot Line Adjustment or Parcel Merger, Submission (Per application) $3,920 per application plus actual costs for contract surveyor $4,069.00 $149.00 100 5235 Tentative Map Extension $2,360 per application $2,450.00 $90.00 100 5235 Certificate of Compliance $2,500 deposit with charges at the fully allocated hourly rates for all personnel involved plus any contract costs
$2,500 deposit with charges at the fully
allocated hourly rates for all personnel
involved plus any contract costs
$0.00
Zoning/Variance
100 5235 362.06-01 Variance from Development Standards $5,000 deposit with charges at the fully allocated hourly rates for all personnel involved plus any contract costs
$5,000 deposit with charges at the fully
allocated hourly rates for all personnel
involved plus any contract costs
$0.00
100 5235 362.06-01 Zoning Designation Change $5,000 deposit with charges at the fully allocated hourly rates for all personnel involved plus any contract costs
$5,000 deposit with charges at the fully
allocated hourly rates for all personnel
involved plus any contract costs
$0.00
100 5235 362.06-01 Zoning Text Amendment $5,000 deposit with charges at the fully allocated hourly rates for all personnel involved plus any contract costs
$5,000 deposit with charges at the fully
allocated hourly rates for all personnel
involved plus any contract costs
$0.00
100 5235 362.06-01 Zoning Verification Letter $155 per letter $161.00 $6.00 Planning
100 5235 362.06-02 Planned Development Plan (PDP) $10,000 deposit with charges at the fully allocated hourly rates for all personnel involved plus any contract costs
$10,000 deposit with charges at the fully
allocated hourly rates
for all personnel involved plus any contract
costs
$0.00
100 5235 362.06-04 General Plan Amendment $10,000 deposit with charges at the fully allocated hourly rates for all personnel involved plus any contract costs
$10,000 deposit with charges at the fully
allocated hourly rates
for all personnel involved plus any contract
costs
$0.00
100 5235 362.06-02 Development Agreement $15,000 deposit with charges at the fully allocated hourly rates for all personnel involved plus any contract costs
$15,000 deposit with charges at the fully
allocated hourly rates
for all personnel involved plus any contract
costs
$0.00
100 5235 362.06-02 Statewide Community Infrastructure Program $2,500.00 $2,500.00 $0.00 100 5235 362.06-02 Specific Plan $10,000 deposit with charges at the fully allocated hourly rates for all personnel involved plus any contract costs
$10,000 deposit with charges at the fully
allocated hourly rates
for all personnel involved plus any contract
costs
$0.00
100 5235 362.06-02 Specific Plan Amendment $10,000 deposit with charges at the fully allocated hourly rates for all personnel involved plus any contract costs
$10,000 deposit with charges at the fully
allocated hourly rates
for all personnel involved plus any contract
costs
$0.00
Environmental Review
100 5235 362.06-03 Initial Study/Negative Declaration $10,000 deposit with charges at actual contract costs plus 20% for Staff review; plus County and State filing fees
$10,000 deposit with charges at actual
contract costs plus 20%
for Staff review; plus County and State filing
fees
$0.00
100 5235 362.06-03 Environmental Impact Report $50,000 deposit with charges at actual contract costs plus 20% for Staff review; plus County and State filing fees
$50,000 deposit with charges at actual
contract costs plus 20%
for Staff review; plus County and State filing
fees
$0.00
100 5235 362.06-03 Annexation $20,000 deposit with charges at the fully allocated hourly rates for all personnel involved plus any contract costs
$20,000 deposit with charges at the fully
allocated hourly rates for all personnel
involved plus any contract costs
$0.00
100 5235 362.06-03 Mitigation Monitoring Program Fee is based on an estimate by staff of needed future work Fee is based on an estimate by staff of needed future work $0.00
313
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 5235 362.06-03 County Clerk Filing $375.00 City Admin Fee + Pass through of fee(s) set by County $375.00 City Admin Fee + Pass through of fee(s) set by County $0.00
100 5235 362.06-03 DF&G - Neg. Dec.; Mitigate Neg. Dec.; EIR; Certify Regulatory Program Pass through of fees set by Dept. of Fish & Game Pass through of fees set by Dept. of Fish & Game $0.00
Miscellaneous
100 5235 362.05-02 Minor Modification $2,260 per application $2,346.00 $86.00 267 5235 331.17-00 General Plan Update Cost Recovery 1% of the construction value of any permit issued 1% of the construction value of any permit issued $0.00
100 5235 362.05-02 Preferential Parking District Permit $85 per permit per year $88.00 $3.00 100 5235 Various Code Enforce Planning Application Double the original fee
Double the
original fee $0.00
100 5235 362.06-01 Property History Letter $625 per letter $649.00 $24.00 100 5235 362.06-01 Extra Plan Review/Inspection Deposit determined by staff with charges at the fully allocated hourly rates for all personnel involved plus any contract costs Deposit determined by staff with charges at
the fully allocated hourly rates for all
personnel involved plus any contract costs
$0.00
100 5235 362.06-01 Planning Miscellaneous Review Deposit determined by staff with charges at the fully allocated hourly rates for all personnel involved plus any contract costs Deposit determined by staff with charges at
the fully allocated hourly rates for all
personnel involved plus any contract costs
$0.00
* All fees listed reflect the actual planning fee, plus the City's 5% imaging Fee and 5% Technology Enhancement Fee. 100 5236 or 38 331.00-80 Title-24 Energy plan check fee 25% of building fee 25% of building fee $0.00 100 5236 or 38 331.00-80 Title-24 Accessibility plan check fee 25% of building fee 25% of building fee $0.00 100 5236 or 38 331.05-00 The City follows the most current edition of the UBC fee schedule for any fee that is not listed in either the County or City fee schedule. See UBC See UBC $0.00 100 5263 or 38 395.04-19 Building Division and Training Fund: AB 1608 Compliance 0.00 for every $1,000 of valuation 0.00 for every $1,000 of valuation $0.00 Service Fees
100 5238 Code Enforcement Inspection Charges at the fully allocated hourly rates for all personnel involved plus any contract costs
Charges at the fully allocated hourly rates for
all personnel involved plus any contract costs $0.00
100 5238 Code Enforcement Hearing $1,285 per hearing $1,334.00 $49.00 100 5238 Inspection Warrant $1,085 per warrant plus attorney and court fees $1,126.00 $0.00 Administrative Fees
100 5238 Administrative Citation -Each Infraction -1st offense in 12 months $100.00 $100.00 $0.00 100 5238 Administrative Citation -Each Infraction -2nd offense in 12 months $200.00 $200.00 $0.00 100 5238 Administrative Citation -Each Infraction -3rd offense in 12 months $500.00 $500.00 $0.00 100 5238 Abatement Warrant $1,360 per warrant plus attorney and court fees $1,412.00 $1,276.00 100 5238 Lien and Special Assessment $1,085 per lien plus any attorney and County fees $1,126.00 $41.00 Nuisance Abatement
100 5238 Nuisance Abatement Charges at the fully allocated hourly rates for all personnel involved plus any contract costs
Charges at the fully allocated hourly rates for
all personnel involved plus any contract costs $0.00

COMMUNITY DEVELOPMENT DEPARTMENT
Development Impact Fees
Single Family (Per dwelling unit)
247 5238 362.50-00 Park and Recreation Facilities $1,705.00 $1,770.00 $65.00 249 5238 362.50-00 Public Benefit for the Bayfront Project only5 $4,000.00 $4,000.00 $0.00 241 5238 362.50-00 General Public Facilities $827.00 $858.00 $31.00 244 5238 362.50-00 Police Facilities $1,466.00 $1,522.00 $56.00 246 5238 362.50-00 Fire Facilities8 $1,817.00 $1,886.00 $69.00 261 5238 362.50-00 Transportation Facilities Fee $5,977.00 $6,204.00 $227.00

CODE ENFORCEMENT

BUILDING INSPECTION DIVISION
314
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
420 0000 368.10-00 Sewer Facilities6 $4,679.00 $4,857.00 $178.00 242 5238 362.45-00 Community Development Tax (Approved by Voters) $1,500.00 $1,557.00 $57.00 264 5238 362.55-00 West County Sub-regional Transportation Mitigation Fee 1 $6,916.00 $6,964.00 $48.00 Multi Family (Per dwelling unit)
247 5238 362.50-00 Park and Recreation Facilities $1,033.00 $1,072.00 $39.00 249 5238 362.50-00 Public Benefit for the Bayfront Project only5 $2,350.00 $2,350.00 $0.00 241 5238 362.50-00 General Public Facilities $518.00 $538.00 $20.00 244 5238 362.50-00 Police Facilities $915.00 $950.00 $35.00 264 5238 362.55-00 West County Sub-regional Transportation Mitigation Fee 1 $3,407.00 $3,431.00 $24.00 246 5238 362.50-00 Fire Facilities (MF - Apartment)8 $1,120.00 $1,163.00 $43.00 246 5238 362.50-00 Fire Facilities (MF - Accessory Dwelling Units)8 $849.00 $881.00 $32.00 261 5238 362.50-00 Transportation Facilities Fee $3,382.00 $3,511.00 $129.00 420 0000 368.10-00 Sewer Facilities6 $4,679.00 $4,857.00 $178.00 242 5238 362.45-00 Community Development Tax (Approved by Voters) $1,500.00 $1,557.00 $57.00 Commercial Retail - Flex (Per building square foot)
249 5238 362.50-00 Public Benefit for the Bayfront Project only5 $0.20 $0.20 $0.00 241 5238 362.50-00 General Public Facilities $0.66 $0.69 $0.03 244 5238 362.50-00 Police Facilities $0.29 $0.30 $0.01
246 5238 362.50-00 Fire Facilities8 $0.91 $1.00 $0.09
261 5238 362.50-00 Transportation Facilities Fee4 $8.00 $8.00 $0.00 420 0000 368.10-00 Sewer Facilities6 $0.62 $0.62 $0.00
264 5238 362.55-00 West County Sub-regional Transportation Mitigation Fee 1 $8.38 $8.44 $0.06 Office (Per building square foot)
249 5238 362.50-00 Public Benefit for the Bayfront Project only5 $0.20 $0.20 $0.00 241 5238 362.50-00 General Public Facilities $0.27 $0.28 $0.01 244 5238 362.50-00 Police Facilities $0.49 $0.51 $0.02
246 5238 362.50-00 Fire Facilities8 $1.22 $1.00 $0.00
261 5238 362.50-00 Transportation Facilities Fee $6.00 $6.00 $0.00 420 0000 368.10-00 Sewer Facilities6 $1.00 $1.00 $0.00
264 5238 362.55-00 West County Sub-regional Transportation Mitigation Fee 1 $11.09 $11.17 $0.08 Industrial (Per building square foot)
241 5238 362.50-00 General Public Facilities $0.47 $0.49 $0.02 244 5238 362.50-00 Police Facilities $0.21 $0.22 $0.01
246 5238 362.50-00 Fire Facilities $0.52 $1.00 $0.48
261 5238 362.50-00 Transportation Facilities Fee $6.00 $6.00 $0.00 420 0000 368.10-00 Sewer Facilities6 $1.00 $1.00 $0.00
264 5238 362.55-00 West County Sub-regional Transportation Mitigation Fee 1 $7.07 $7.12 $0.05 Hotel (Per room)7
249 5238 362.50-00 Public Benefit for the Bayfront Project only5 $0.20 $0.20 $0.00 241 5238 362.50-00 General Public Facilities $27.00 $28.00 $1.00 244 5238 362.50-00 Police Facilities $30.00 $31.00 $1.00 246 5238 362.50-00 Fire Facilities8 $110.00 $114.00 $4.00 261 5238 362.50-00 Transportation Facilities Fee $2,194.00 $2,277.00 $83.00 421 0000 368.09-00 Hotel Sewer Facility Fee $1,809.00 $1,878.00 $69.00 264 5238 362.55-00 West County Sub-regional Transportation Mitigation Fee 1 $4,426.00 $4,457.00 $31.00 Other Community Development Fees
Other Sub-regional Transportation Mitigation (STMP) Fees:
264 5238 362.55-00 Senior Housing (Per dwelling unit)1 $1,868.00 $1,881.00 $13.00 264 5238 362.55-00 Storage Facility (Per building square foot) 1 $0.97 $0.98 $0.01 264 5238 362.55-00 Other buildings not listed (Per AM peak hour trips generated)1 $9,346.00 $9,411.00 $65.00 264 5238 362.55-00 Other City Transportation Facilities Fee Delete 35 #VALUE! #VALUE! 264 5238 362.55-00 Fast Food (per sq. ft.) $36.00 $37.00 $1.00 315
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
264 5238 362.55-00 Fuel Station (pe pump) $6,436.00 $6,681.00 $245.00 100 5238 331.12-00 SMIP Fee Residential $10 per each $100,000 of building valuation
$10 per each $100,000 of
building valuation $0.00
100 5238 331.12-00 SMIP Fee Commercial $10 per each $100,000 of building valuation $10 per each $100,000 of building valuation $0.00 Green Building Fee Schedule:3
100 5238 331.16-00 $1.00 - $25,000.00 Permit Valuation $1.00 $1.00 $0.00 100 5238 331.16-00 $25,001.00 - $50,000.00 Permit Valuation $2.00 $2.00 $0.00 100 5238 331.16-00 $50,001.00 - $75,000.00 Permit Valuation $3.00 $3.00 $0.00 100 5238 331.16-00 $75,001.00 - $100,000.00 Permit Valuation $4.00 $4.00 $0.00 100 5238 331.16-00 Every $25,000.00 or fraction thereof above $100,000.00 Add $1.01 Add $1.01 $0.00 100 5238 331.05-00 Demo inspection Review $71.00 $74.00 $3.00 100 5238 331.10-00 Filing Fee 25% of Building Fee 25% of Building Fee $0.00 1STMP fees are collected by the City and remitted to WCCTAC in accordance with Master Coop Agreement.
2SMIP fees are collected by the City and remitted to State of California 3GBF fees are collected by the City and remitted to State of California 4Consistent with the Mitigation Fee Act, transportation fees for fast food, fuel, and other uses with much different traffic volumes can be evaluated for higher or lower fee in accordance with the Nexus study.
5Public Benefit fees only paid by Bayfront development with locked fees per DA. 6Sewer Facility fees are separate from and do not include sewer service charges or sewer connection fees.
7Not including Sewer facilities fees, which are based on building square footage. 8Fire facility fees are collected by the City and remitted to the Rodeo-Hercules Fire District.

AFFORDABLE HOUSING PROGRAM
640 6000 395.00-00 Affordable Housing In-Lieu Fee Per Code Per Code $0.00 640 6000 395.00-00 Annual Compliance/Monitoring Fee $31.00 $32.00 $1.00 640 6000 395.00-00 Code Compliance Inspection $154.00 $160.00 $6.00 640 6000 369.07-01 Credit $31.00 $32.00 $1.00
640 6000 395.00-00 Default Monitoring Actual cost + 20% admin fee Actual cost + 20% admin fee $0.00 640 6000 395.00-00 Foreclosure (Fee charged by 3rd party service provider) Actual cost + 20% admin fee Actual cost + 20% admin fee $0.00 640 6000 369.07-93 Homebuyer Education $33.00 $34.00 $1.00 640 6000 395.00-00 Loan Documents Preparation Fee $308.00 $320.00 $12.00 640 6000 395.00-00 Notary (First signature) $11.00 $11.00 $0.00 640 6000 395.00-00 Each additional signature $6.00 $6.00 $0.00 640 6000 395.00-00 Pay-Off Demand $62.00 $64.00 $2.00
640 6000 395.00-00 Rehab Work Write-up/Inspection Fee $92.00 $95.00 $3.00 640 6000 395.00-00 Reconveyance $154.00 $160.00 $6.00
640 6000 395.00-00 Recording Fee (Fee paid to County Recorder) Actual cost + 20% admin fee Actual cost + 20% admin fee $0.00 640 6000 395.00-00 Resale Restriction Calculation $62.00 $64.00 $2.00 640 6000 395.00-00 Subordination $154.00 $160.00 $6.00
640 6000 395.00-00 Wiring Fee $23.00 $24.00 $1.00

BUSINESS DEVELOPMENT PROGRAM
601 0000 395.00-00 Application Packaging Fee $64.00 $66.00 $2.00 601 0000 395.00-00 Default Monitoring Actual cost + 20% admin fee Actual cost + 20% admin fee $0.00 601 0000 395.00-00 Foreclosure (Fee charged by 3rd party service provider) Actual cost + 20% admin fee Actual cost + 20% admin fee $0.00 601 0000 395.00-00 Loan Documents Preparation Fee $321.00 $333.00 $12.00 601 0000 395.00-00 Notary (First signature) $10.00 $10.00 $0.00 601 0000 395.00-00 Each additional signature $6.00 $6.00 $0.00 601 0000 395.00-00 Pay-Off Demand $64.00 $66.00 $2.00
601 0000 395.00-00 Reconveyance $160.00 $166.00 $6.00
601 0000 395.00-00 Recording Fee (Fee paid to County Recorder) Actual cost + 20% admin fee Actual cost + 20% admin fee $0.00 316
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
601 0000 395.00-00 Subordination Actual cost + 20% admin fee Actual cost + 20% admin fee $0.00 601 0000 395.00-00 Title Insurance Actual cost + 20% admin fee Actual cost + 20% admin fee $0.00 601 0000 395.00-00 Wiring Fee Actual cost + 20% admin fee Actual cost + 20% admin fee $0.00 601 0000 395.00-00 Late Fee (Per day after due date) $5.00 $5.00 $0.00

BUSINESS LICENSE FEES
Retail, Wholesale, Service, and Manufacturer
Based On Average Monthly Gross Receipts (Annual Fee)
100 0000 316.00-00 Business License Processing Actual Contract Costs Actual Contract Costs $0.00 100 0000 316.00-00 Disability Access and Education Fee (30% to be paid to Division of the State Architect) Division of the State Architect mandated $4.00 Fee. Division of the State Architect mandated $4.00 Fee. $0.00
100 0000 316.00-00 Zero to $1,000 $46.00 $48.00 $2.00
100 0000 316.00-00 1,000.01 to 1,500 $58.00 $60.00 $2.00 100 0000 316.00-00 1,500.01 to 2,000 $68.00 $71.00 $3.00 100 0000 316.00-00 2,000.01 to 3,000 $91.00 $94.00 $3.00 100 0000 316.00-00 3,000.01 to 4,000 $114.00 $118.00 $4.00 100 0000 316.00-00 4,000.01 to 5,000 $137.00 $142.00 $5.00 100 0000 316.00-00 5,000.01 to 6,000 $158.00 $164.00 $6.00 100 0000 316.00-00 6,000.01 to 8,000 $182.00 $189.00 $7.00 100 0000 316.00-00 8,000.01 to 10,000 $205.00 $213.00 $8.00 100 0000 316.00-00 10,000.01 to 12,000 $226.00 $235.00 $9.00 100 0000 316.00-00 12,000.01 to 14,000 $251.00 $261.00 $10.00 100 0000 316.00-00 14,000.01 to 16,000 $272.00 $282.00 $10.00 100 0000 316.00-00 16,000.01 to 18,000 $294.00 $305.00 $11.00 100 0000 316.00-00 18,000.01 to 20,000 $319.00 $331.00 $12.00 100 0000 316.00-00 20,000.01 to 25,000 $363.00 $377.00 $14.00 100 0000 316.00-00 25,000.01 to 30,000 $409.00 $425.00 $16.00 100 0000 316.00-00 30,000.01 to 35,000 $453.00 $470.00 $17.00 100 0000 316.00-00 35,000.01 to 40,000 $498.00 $517.00 $19.00 100 0000 316.00-00 40,000.01 to 45,000 $544.00 $565.00 $21.00 100 0000 316.00-00 45,000.01 to 50,000 $590.00 $612.00 $22.00 100 0000 316.00-00 50,000.01 to 60,000 $635.00 $659.00 $24.00 100 0000 316.00-00 60,000.01 to 70,000 $680.00 $706.00 $26.00 100 0000 316.00-00 70,000.01 to 80,000 $726.00 $754.00 $28.00 100 0000 316.00-00 80,000.01 to 90,000 $771.00 $800.00 $29.00 100 0000 316.00-00 90,000.01 to 100,000 $816.00 $847.00 $31.00 100 0000 316.00-00 100,000.01 to 130,000 $907.00 $941.00 $34.00 100 0000 316.00-00 130,000.01 to 160,000 $997.00 $1,035.00 $38.00 100 0000 316.00-00 160,000.01 to 200,000 $1,134.00 $1,177.00 $43.00 100 0000 316.00-00 200,000.01 to 350,000 $1,359.00 $1,411.00 $52.00 100 0000 316.00-00 350,000.01 to 500,000 $1,586.00 $1,646.00 $60.00 100 0000 316.00-00 500,000.01 to 650,000 $1,926.00 $1,999.00 $73.00 100 0000 316.00-00 650,000.01 to 800,000 $2,266.00 $2,352.00 $86.00 100 0000 316.00-00 800,000.01 to 1,000,000 $2,718.00 $2,821.00 $103.00 100 0000 316.00-00 1,000,000.01 to 2,000,000 (Base Fee + $1.00 per $1,000 in excess of $1M up to $2M) $2,718.00 $2,821.00 $103.00 100 0000 316.00-00 2,000,000.01 to 4,000,000 (Base Fee + $.80 per $1,000 in excess of $2M up to $4M) $3,851.00 $3,997.00 $146.00 100 0000 316.00-00 4,000,000.01 to 7,000,000 (Base Fee + $.60 per $1,000 in excess of $4M up to $7M) $5,663.00 $5,878.00 $215.00 100 0000 316.00-00 7,000,000.01 to 10,000,000 (Base Fee + $.40 per $1,000 in excess of $7M up to $10M) $7,703.00 $7,996.00 $293.00 100 0000 316.00-00 Over 10,000,000 (Base Fee + $.20 per $1,000 in excess of $10M with no cap) $9,060.00 $9,404.00 $344.00 Contractor and Subcontractor
100 0000 316.00-00 Zero to $4,000 (Average monthly gross receipts) (Times 2, 3, or 4 if paying for 1/2, 3/4, or full year) $29.00 $30.00 $1.00
100 0000 316.00-00 4,000.01 to 5,000 $36.00 $37.00 $1.00 100 0000 316.00-00 5,000.01 to 6,000 $41.00 $43.00 $2.00 100 0000 316.00-00 6,000.01 to 8,000 $46.00 $48.00 $2.00 Based On Average Monthly Gross Receipts (Quarterly Fee) 317
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 0000 316.00-00 8,000.01 to 10,000 $51.00 $53.00 $2.00 100 0000 316.00-00 10,000.01 to 12,000 $58.00 $60.00 $2.00 100 0000 316.00-00 12,000.01 to 14,000 $63.00 $65.00 $2.00 100 0000 316.00-00 14,000.01 to 16,000 $68.00 $71.00 $3.00 100 0000 316.00-00 16,000.01 to 18,000 $74.00 $77.00 $3.00 100 0000 316.00-00 18,000.01 to 20,000 $79.00 $82.00 $3.00 100 0000 316.00-00 20,000.01 to 25,000 $91.00 $94.00 $3.00 100 0000 316.00-00 25,000.01 to 30,000 $103.00 $107.00 $4.00 100 0000 316.00-00 30,000.01 to 35,000 $114.00 $118.00 $4.00 100 0000 316.00-00 35,000.01 to 40,000 $125.00 $130.00 $5.00 100 0000 316.00-00 40,000.01 to 45,000 $148.00 $154.00 $6.00 100 0000 316.00-00 45,000.01 to 50,000 $148.00 $154.00 $6.00 100 0000 316.00-00 50,000.01 to 60,000 $158.00 $164.00 $6.00 100 0000 316.00-00 60,000.01 to 70,000 $171.00 $177.00 $6.00 100 0000 316.00-00 70,000.01 to 80,000 $182.00 $189.00 $7.00 100 0000 316.00-00 80,000.01 to 90,000 $193.00 $200.00 $7.00 100 0000 316.00-00 90,000.01 to 100,000 $205.00 $213.00 $8.00 100 0000 316.00-00 100,000.01 to 130,000 $226.00 $235.00 $9.00 100 0000 316.00-00 130,000.01 to 160,000 $251.00 $261.00 $10.00 100 0000 316.00-00 160,000.01 to 200,000 $284.00 $295.00 $11.00 100 0000 316.00-00 200,000.01 to 350,000 $340.00 $353.00 $13.00 100 0000 316.00-00 350,000.01 to 500,000 $397.00 $412.00 $15.00 100 0000 316.00-00 500,000.01 to 650,000 $482.00 $500.00 $18.00 100 0000 316.00-00 650,000.01 to 800,000 $568.00 $590.00 $22.00 100 0000 316.00-00 800,000.01 to 1,000,000 $680.00 $706.00 $26.00 100 0000 316.00-00 1,000,000.01 to 2,000,000 (Base Fee + $.25 per $1,000 in excess of $1M up to $2M) $680.00 $706.00 $26.00 100 0000 316.00-00 2,000,000.01 to 4,000,000 (Base Fee + $.20 per $1,000 in excess of $2M up to $4M) $963.00 $1,000.00 $37.00 100 0000 316.00-00 4,000,000.01 to 7,000,000 (Base Fee + $.15 per $1,000 in excess of $4M up to $7M) $1,415.00 $1,469.00 $54.00 100 0000 316.00-00 7,000,000.01 to 10,000,000 (Base Fee + $.10 per $1,000 in excess of $7M up to $10M) $1,926.00 $1,999.00 $73.00 100 0000 316.00-00 Over 10,000,000 (Base Fee + $.05 per $1,000 in excess of $10M with no cap) $2,266.00 $2,352.00 $86.00 Miscellaneous Business Fees
(Fees Based On Various Frequencies Or Units)
100 0000 316.00-00 Billiard or Pool Halls and Card Rooms (Per year per table in addition to Gross Receipts Tax). $23.00 $24.00 $1.00
100 0000 316.00-00 Boxing and wrestling matches (Per exhibition). $114.00 $118.00 $4.00 100 0000 316.00-00 Carnivals (Per week). $568.00 $590.00 $22.00 100 0000 316.00-00 Circuses (Per day). $114.00 $118.00 $4.00 100 0000 316.00-00 Coin operated amusement devices (Per year per device). $226.00 $235.00 $9.00 100 0000 316.00-00 Dances at which admission is charged (Each date). $58.00 $60.00 $2.00 100 0000 316.00-00 Farmers Market (Per year) $16.00 $17.00 $1.00 100 0000 316.00-00 Merry-go-rounds (Per day). $11.00 $11.00 $0.00 100 0000 316.00-00 Portable skating rinks (Per quarter). $114.00 $118.00 $4.00 100 0000 316.00-00 Peddling or soliciting (Per quarter). $58.00 $60.00 $2.00 100 0000 316.00-00
Professional Persons, i.e. Accountant, Chiropractor, Dentist, Engineer, Lawyer, Optometrist, Osteopath, Physician, Surgeon, Veterinarian, Mortician, etc. (Per each professional per year).
$182.00 $189.00 $7.00
100 0000 316.00-00 Selling bankrupt, depreciated or damaged stock of goods, when the same are presented as being sold for less than in the usual course of business (Per quarter). $453.00 $470.00 $17.00 100 0000 316.00-00 Traveling exhibitions e.g. telescopes, microscopes, lung testers, ball and knife or ring throwing or any similar exhibitions for which no other rate is fixed herein (Per week). $114.00 $118.00 $4.00 100 0000 316.00-00
Traveling, advertising and sales promotional enterprises, whether operating directly or under the sponsorship of a local organization, where any remuneration is received by such enterprise for its activity within the City (Per quarter). $114.00 $118.00 $4.00
100 0000 316.00-00 (Per day for first three days). $23.00 $24.00 $1.00 100 0000 316.00-00 (Per day thereafter). $13.00 $13.00 $0.00 318
Established by Government Code
Established by County/District/Voters
Established by the State & Former Redevelopment Fees
Increased by 3.8% based on the
No changes made (On fees that are based on actual costs and percentage of total costs) CPI - April 2024 3.8%
FUND NUMBER DEPT. NUMBER ACCOUNT
NUMBER FEE DESCRIPTION Current Fee Proposed FY 2024-25 Fee Change

CITY OF HERCULES

MASTER FEE SCHEDULE
100 0000 316.00-00
Trucks using City streets for the transportation of goods, wares, and merchandise, except as are exempted from the payment of municipal license fees by state or federal law, and except when such trucks are used in connection with businesses already paying a license fee under this Chapter, and except those who are under the Highway Carriers Uniform Business License Tax pursuant to Paragraph 4306 of the Public Utilities Code (Per year per truck). $114.00 $118.00 $4.00
100 0000 316.00-00 Vending Machines (Per year per machine). $46.00 $48.00 $2.00 319
CO

NSENT CALENDAR

AGENDA ITEMS

1. 22-895

2. 22-896

3. 22-897

4. 22-903
320
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, June 11, 2024
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)
I. CLOSED SESSION – CALL TO ORDER - ROLL CALL - 6:00 P.M.

Council Member Grimsley arrived late at 6:07 and took part in Closed Session.

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
City Attorney, Patrick Tang, read aloud the Closed Session items to be discussed. Council and Staff recessed 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

22-895
321
June 11, 2024City Council Meeting Minutes
d. Confidential Unrepresented Employee Group
e. Mid Management Employee Group
IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

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

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

Present: 5 -
V. REPORT ON ACTION TAKEN IN CLOSED SESSION
City Attorney, Patrick Tang, reported out on the Closed Session items.

There is no final or reportable action on the first Closed Session item. The second Closed Session item, regarding Labor Negotiations relative to certain City employee groups was deferred to the end of the meeting.

VI. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was lead by Council Member Walker-Griffin.

VII. MOMENT OF SILENCE
Mayor Romero held a Moment of Silence for former Mayor of El Cerrito, Howard Abelson, who passed away.

VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

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

Mayor Romero presented the proclamation. Council members provided comments.

2. 22-882 Juneteenth Proclamation
Juneteenth ProclamationAttachments:

Mayor Romero presented the proclamation. Council members provided comments.

IX. AGENDA ADDITIONS/DELETIONS
NONE

322
June 11, 2024City Council Meeting Minutes
X. PUBLIC COMMUNICATIONS
Public comment was provided by Tanya Little, Oak Son and Leah Yount.

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:

City Manager, Dante Hall, introduced the item. Finance Director, Edwin Gato, presented. Mayor Romero opened the Public Hearing. No public comment. Mayor Romero closed the Public Hearing. Council asked questions and provided comment. Director Gato provided a response.

323
June 11, 2024City Council Meeting Minutes
Action was taken on this item.

MOTION: A motion was made by Council Member Kelley, seconded by Council Member Walker-Griffin, to adopt Resolution 24-035. 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 -
MOTION: A motion was made by Vice Mayor Bailey, seconded by Council Member Kelley, to adopt Resolution 24-036. 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 -
MOTION: A motion was made by Council Member Kelley, seconded by Council Member Grimsley, to adopt Resolution 24-037. The motion carried by the following vote:

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

Walker-Griffin, Mayor D. Romero, and Vice Mayor D. Bailey 5 -
XII. CONSENT CALENDAR
MOTION: A motion was made by Council Member Walker-Griffin, seconded by Council Member Grimsley, 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. 22-860
Meeting Minutes for the Regular Meeting of May 14, 2024 Meeting Minutes for the Regular Meeting of May 14, 2024Attachments:

APPROVED

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

APPROVED

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:

APPROVED

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

324
June 11, 2024City Council Meeting Minutes
Staff Report - Investment Quarterly Report Ending 12-31-2023 Attach 1 - Quarterly Investment Report 12312023
Attachments:

APPROVED

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:

APPROVED

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:

Resolution 24-038 APPROVED
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:

City Clerk, Eibleis Melendez, presented the item. Council asked questions and provided comment. City Clerk Melendez, City Manager, Dante Hall, and City Attorney, Patrick Tang, provided a response. Council provided Staff direction. Council directed Staff to come back to the August meeting with guidelines for remote participation that can be implemented moving

325
June 11, 2024City Council Meeting Minutes
forward. The guidelines would be implemented in the first meeting of September. Tanya Little provided public comment. Action was taken on this item and Council provided direction.

MOTION: A motion was made by Vice Mayor Bailey, seconded by Council Member Grimsley, to adopt the direction provided by Council: provide remote participation guidelines or procedures at the August meeting. If approved, implement the guidelines at the first meeting in September. The motion carried by the following vote:

Aye: Council Member T. Grimsley, Council Member A. Walker-Griffin, Mayor D. Romero, and Vice Mayor D. Bailey
4 -
Nay: Council Member C. Kelley1 -

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:

City Manager, Dante Hall, introduced the item. Parks and Recreation Director, Christopher Roke, presented. Council asked questions and provided comment. Director Roke and City Manager Hall, provided a response. Tanya Little provided public comment. Action was taken on this item.

MOTION: A motion was made by Vice Mayor Bailey, seconded by Council Member Walker-Griffin, to authorize a fifth Co-Sponsored Special Event(Lunar New Year Celebration) and allocating additional $10,000 for this purpose. Also, adding this event to the discussion for the 25-26 annual budget. The motion carried by the following vote:

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

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

326
June 11, 2024City Council Meeting Minutes
XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

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

1. Regional Committee

2. City Council Committees and Subcommittees

3. Commission Liaisons
City Manager, Dante Hall, promoted the State of the City event. City Attorney, Patrick Tang, had no announcements.

1. Regional Committee
Council Member Kelley reported out on a Contra Costa Transportation Authority events that she attended. As well as the Contra Costa Mayors Conference, which both Council Member Walker-Griffin and Mayor Romero were also in attendance.

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 through out the City and County which included the Cultural Festival. They also promoted upcoming events in the area.

Future Agenda Item Requests-
Council Member Walker-Griffin requested a future discussion on the City holding an event for people with disabilities. Staff was directed to contact the City of Pleasant Hill and the Hercules Library to see what they have done in organizing a similar event.

Mayor Romero recessed the meeting back into Closed Session to discuss the second Closed Session item, agenda item 3.2. Mayor Romero also requested that the meeting be closed in memory of Howard Abelson.

Meeting Reconvened - Mayor Romero announce there was no reportable or final action on the item discussed in Closed Session.

327
June 11, 2024City Council Meeting Minutes
XVI. ADJOURNMENT
Mayor Romero adjourned the meeting at 9:25 P.M.
_________________________________
Dan Romero, Mayor
Attest:
_______________________________
Eibleis Melendez, City Clerk

328
CO

NSENT CALENDAR

AGENDA ITEM

2. 22-896
329

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 25, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Accept the Investment Report for the Quarter Ending March 31, 2024
RECOMMENDED ACTION:

Accept the Investment Report for the Quarter Ending March 31, 2024 EXECUTIVE SUMMARY:

Pursuant to California Government Code section 53646 and the City’s Investment Policy, a quarterly report and certification shall be provided to the City Council, City Manager, and City Auditor. The Quarterly Investment Report shall include a complete description of the portfolio, the type of investments, the issuers, maturity dates, par value and dollar amounts invested in all securities. The certification must provide assurances that investments were made consistent with the City’s Investment Policy and that the City will meet its expenditure obligations for the next six months. The Quarterly Investment Report for the quarter ending March 31, 2024, 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 22-896
330

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 March 31, 2024.

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

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

As of March 31, 2024 , the overall pooled investment portfolio average yield (before adjustments for changes in market value) was 2.38%, which is lower than the rate for two- year U.S. Treasury Note at 4.59% and LAIF average monthly rate of 4.23%. The market value of the pooled portfolio was $288,143 or 0.41% 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.

70.5% of the total Investment Portfolio was deposited with LAIF as of March 31, 2024. LAIF has 81% of its investments in U.S. Treasuries and agency notes, 8.8% in CDs and bank notes, and 10.1% 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 5,165,361 - 1.00% Local Agency Investment Fund (LAIF) 49,316,982 ($288,143) 4.23% Irrevocable Trust (Pension) 2,301,057 - 2.49% Irrevocable Trust (OPEB) 2,866,692 - 2.49% Investments with Bond Trustees 10,422,771 - 4.18% Total Portfolio $70,074,868 ($288,143) 2.38%
331

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 $26.4 million, or 38%) and Internal Service Funds (approximately $500K or 1%) are unrestricted, although a portion of these amounts may be committed for existing obligations or designated for speci fic purposes. The remaining $ 43.5 million, or 62%, 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

332
1 INVESTMENT REPORT
For the Quarter Ending March 31, 2024
City of Hercules, California
333

CITY OF HERCULES

FINANCE DEPARTMENT
111 CIVIC DRIVE
HERCULES, CALIFORNIA 94547-1771
PHONE: 510-799-8200
June 25, 2024
Honorable Mayor and City Council:

I verified that this investment portfolio, as of March 31, 2024, conforms with all state laws and City’s investment policy. The City’s expenditures requirements for the next months are covered by anticipated revenues from City operations and liquidity from cash on deposit.

As of March 31, 2024, the City has sufficient funds to meet its expenditure requirements for the next six months.

Sincerely,
Edwin Gato
Finance Director/City Treasurer
1 334
City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended March 31, 2024
Book % of Average Market
Value Total Yield Value
Cash on Hand $2,005 $2,005
Cash on Deposit 5,165,361 5,165,361
Total Cash on Hand 5,167,366 7.34% 1.00% 5,167,366 Local Agency Investment Fund (LAIF) 49,605,125 70.50% 4.23% 49,316,982 Irrevocable Trust (Pension) 2,301,057 3.27% 2.49% 2,301,057 Irrevocable Trust (OPEB) 2,866,692 4.07% 2.49% 2,866,692 Investments with Bond Trustees 10,422,771 14.81% 4.18% 10,422,771 Total Portfolio $70,363,011 100.00% 2.38% $70,074,868
Amount over (under) Market Value vs. Book Value ($288,143) % of Portfolio -0.41%
Investments by Type
Cash on Hand
LAIF
Irrevocable Trust
(Pension)
Irrevocable Trust
(OPEB)
Investments with
Trustees
2 335
City of Hercules
Detail for Investment Portfolio Summary Report
For the Quarter Ended March 31, 2024
(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 3,965,735.34 0.00% 0.00% 3,965,735.34 3,965,735.34 MECHANICS BANK - HERCULES RDA 1,150,071.86 0.00% 0.00% 1,150,071.86 1,150,071.86 MECHANICS BANK - PD ASSET SEIZURE 28,071.98 0.00% 0.00% 28,071.98 28,071.98 CalTRUST 21,482.14 1.00% 1.00% 1/1/2024 3/31/2024 90 - 21,482.14 21,482.14 TOTAL AND AVERAGES 5,165,361.32 1.00% 1.00% 90 - 5,165,361.32 5,165,361.32

LOCAL AGENCY INVESTMENT FUND (LAIF)
LAIF 49,605,125.34 4.23% 4.23% 1/1/2024 3/31/2024 90 - 49,605,125.34 49,316,982.41

IRREVOCABLE TRUST (PENSION/OPEB)
US BANK MUTUAL (PARS-OPEB) 2,866,692.47 2.49% 2.49% 1/1/2024 3/31/2024 90 - 2,866,692.47 2,866,692.47 US BANK MUTUAL (PARS-PENSION) 2,301,057.32 2.49% 2.49% 1/1/2024 3/31/2024 90 - 2,301,057.32 2,301,057.32 TOTAL AND AVERAGES 5,167,749.79 2.49% 2.49% 90 - 5,167,749.79 5,167,749.79

INVESTMENTS WITH BOND TRUSTEES

WEBSTER BANK (STERLING NATIONAL BANK
ESCROW) 118,738.46 0.25% 0.25% 1/1/2024 3/31/2024 90 - 118,738.46 118,738.46 THE BANK OF NEW YORK (BNY) JM 05 1 RESERVE
FUND 55,797.47 0.00% 0.00% 1/1/2024 3/31/2024 90 - 55,797.47 55,797.47

THE BANK OF NEW YORK (BNY) MELLON TRUST
HERCULES PFA WW INTEREST ACCT 21 A 2,887.50 0.00% 0.00% 1/1/2024 3/31/2024 90 - 2,887.50 2,887.50

THE BANK OF NEW YORK (BNY) MELLON TRUST
HERCULES PFA WW ACQUISITION FD 21 A 8,325,000.00 0.00% 0.00% 1/1/2024 3/31/2024 90 - 8,325,000.00 8,325,000.00

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 REVENUE FUND) 626,630.45 5.16% 5.16% 1/1/2024 3/31/2024 90 - 626,630.45 626,630.45

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV PRIN ACCT) 208,648.35 5.16% 5.16% 1/1/2024 3/31/2024 90 - 208,648.35 208,648.35

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 DEBT SERV INT ACCT) 160,285.63 5.16% 5.16% 1/1/2024 3/31/2024 90 - 160,285.63 160,285.63

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES PFA 09 RESERVE FD) 920,215.00 5.16% 5.16% 1/1/2024 3/31/2024 90 - 920,215.00 920,215.00

THE BANK OF NEW YORK (BNY) MELLON TRUST
(HERCULES 2020 INT FD) 4,567.80 0.00% 0.00% 1/1/2024 3/31/2024 90 - 4,567.80 4,567.80 TOTAL AND AVERAGES 10,422,770.66 4.18% 4.18% 90 - 10,422,770.66 10,422,770.66 TOTAL INVESTMENT REPORT $70,363,012.11 2.38% 2.38% 90 - $70,363,012.11 $70,074,869.18 3 336
City of Hercules, California
Investment Portfolio Summary Report
For the Quarter Ended March 31, 2024
% of
Cash Description Book Value Total
Bond Trustee $10,422,771 15%
Irrevocable Trust 5,167,750 7%
Restricted 27,871,540 40%
General Fund 26,441,429 38%
Internal Service Funds 459,522 1%
Total, Book Value $70,363,012 100%
Restricted:

Wastewater 11,191,247
Successor Housing 5,499,535
Development Impact Fees 3,332,781
Successor Agency 2,917,026
Landscape & Lighting 981,709
Gas Tax & Measure J "Street" 929,220
Solid Waste 925,579
SB1 RMRA 857,940
Agency Fund 620,569
BART (Park & Ride) 230,864
Asset Seizure 228,607
Other 156,463
27,871,540
Bond Trustee
15%
Irrevocable Trust
7%
Restricted
40%
General Fund
37%
Internal Service Funds
1%
Cash by Fund
4 337

4.232

4.122

4.012

3.929
March
February
January
December
November 3.843
PMIA Average Life(1): 226
LAIF Fair Value Factor(1): 0.994191267
PMIA Daily(1): 4.22
PMIA Quarter to Date(1): 4.12
LAIF Apportionment Rate(2): 4.30
LAIF Earnings Ratio(2): 0.00011755619077389
LAIF Administrative Cost(1)*: 0.27
Treasuries

58.43%
Agencies

22.59%
Certificates of
Deposit/Bank Notes

8.84%
Time
Deposits

2.99%
Commercial
Paper

6.54%
Corporate
Bonds

0.41%
Loans

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

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 3/31/24
Daily rates are now available here. View PMIA Daily Rates Quarterly Performance
Quarter Ended 03/31/24
Chart does not include $1,969,000.00 in mortgages, which equates to 0.001%. Percentages may not total 100% due to rounding.

Pooled Money Investment Account
Monthly Portfolio Composition (1)
3/31/24
$171.5 billion
5 338
C

ONSENT CALENDAR

AGENDA ITEM

3. 22-897
339

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 25, 2024
TO: Mayors and Members of the City Council
SUBMITTED BY: Eibleis Melendez, City Clerk
SUBJECT: November 5, 2024 General Municipal Election
RECOMMENDED ACTION:

Staff recommends adoption of a Resolution Calling for the Holding of a General Municipal Election to be held on Tuesday, November 5, 2024 and the Specifications of the Election Order for the Election of Three Members of the City Council for the Full Term of Four Years.

BACKGROUND:

Section 2-1.04 of the Hercules Municipal Code provides for a General Municipal Election to be held in the City of Hercules on the date of the Statewide General Election, the first Tuesday after the first Monday in November of each even numbered year. Members of the City Council are elected to four (4) year terms. three (3) seats on the Hercules City Council will expire in December 2024. The Members of City Council that have term expirations at the end of this year are:

1. Dan Romero, Mayor

2. Alex Walker-Griffin, Council Member

3. Tiffany Grimsley, Council Member
DISCUSSION:

The California Elections Code requires that a resolution be adopted preparatory to holding that election. On Tuesday, November 5, 2024, three (3) members of the City Council will be elected to full terms of four (4) years. The resolution presented for Council’s consideration calls for the holding of the November 5, 2024, General Municipal Election, which includes the purpose of the election, provision for payment of election costs, the action that will be taken in case of a tie vote and any changes in boundary lines . Contra Costa County Elections staff has provided the cost for submitting a candidate statement to the voters at $491.00. This is the true cost for a candidate statement not exceeding 250 words. 22-897
340

Th City of Hercules will also be charging a filing fee of $25.00. Both fees will be collected at the time the candidate pulls or files papers.

The Resolution sets forth a procedure in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) the City Council will determine the tie by lot. Pursuant to State law, the two options to resolve a tie vote are to draw lots, or to hold a special runoff election. In past elections City Council has opted to resolve tie votes by lot and therefore the Resolution was prepared with this option. If Council desires to resolve a tie vote by holding a special runoff election, adoption of provisions in Elections Code 15651(b) would need to occur prior to the conduct of the election resulting in the tie vote.

Once the election process has been initiated with the adoption of the resolution, the next steps are the public noticing of the election and the opening of the nomination filing period.

The nomination filing period for the November 5, 2024, General Municipal Election is July 15, 2024, to August 9, 2024. In the event an incumbent does not file by the August 9, 2024, filing deadline, the nomination period will be extended to August 14, 2024, by 5:00 p.m.

During the nomination filing period, any registered voter residing in the City of Hercules who is not disqualified by the laws of the State of California from holding a civil office can pull and file nomination papers for candidacy. State law requires that the filing of nomination papers occur during the agency’s regular business hours. Anyone wishing to pull or file papers during the filing period should make an appointment with the City Clerk during regular business hours, Monday through Thursday 8:00 a.m. – 5:00 p.m., closed on Fridays. City Offices are closed, Friday August 9th.

FISCAL IMPACT:

Election costs have been estimated to be between $30,000 and $35,000 and this cost has been included in the proposed Fiscal Year 2024-25 budget.

ATTACHMENTS:

1. Resolution Calling for the Holding of a General Municipal Election to be held on Tuesday, November 5, 2024, for the Election of Three Members of the City Council for the Full Term of Four Years

2. Notice of Election

341

CITY OF HERCULES
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES,

CALIFORNIA, CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 20 24 FOR THE AT-

LARGE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY THE

PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO

GENERAL LAW CITIES

WHEREAS, the City Council has ordered a Municipal Election to be held on Tuesday, November 5, 2024 to fill certain municipal offices; and

WHEREAS, other elections many be held in whole or in part of the territory of the City and it is to the advantage of the City to consolidate pursuant to Elections Code Section 10002; and

WHEREAS, Elections Code Section 10002 requires the City to reimburse the co unty in full for the services performed upon presentation of a bill to the City by the County Elections Official; and

WHEREAS, Elections Code Section 13307 requires that before the nominating period opens the governing body must determine whether a charg e shall be levied against each candidate submitting a candidate’s statement to be sent to the voters; and may establish the cost; and determine whether the cost be paid in advance; and

WHEREAS, the general qualification for office as required by the City ’s Principal Act of a district are the following: You must be a US Citizen. You must be a registered voter at the time the Declaration of Candidacy is issued. The candidate cannot have been convicted of a felony involving accepting or giving, or offering to give, any bribe, the embezzlement of public money, extortion or theft of public money, perjury, or conspiracy to commit any of those crimes; and

WHEREAS, Elections Code Section 12101 requires the publication of a notice of the election once in a newspaper of general circulation in the City; and

WHEREAS, tie votes shall be determined by lot unless the city council adopts the provision of Elections Code 15651 (b) prior to the conduct of the election resulting in the tie vote.

NOW, THEREFORE, IT IS ORDERED that an election be held in accordance wit h the following specifications:

SECTION 1. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of Hercules, California, on Tuesday, November 5, 2024, a General Municipal At- Large Election for the purpose of electing Three (3) Members of the City Council for the full term of four (4) years.

342

SECTION 2. This City Council hereby requests and consents to the consolidation of this election with other elections which may be held in whole or in part of the territory of the City, as provided in Elections Code 10002.
.

SECTION 3. The City will reimburse the County for the actual cost incurred in conducting the election upon receipt of a bill stating the amount due as determined by the elections official.

SECTION 4. The Candidate Statements will be limited to 250 words. As a condition of having the Candidate’s Statement published, the candidate shall pay the cost at the time of filing. Candidate Statements past 250 words will double in price.

SECTION 5. The City of Hercules is to publish the Notice of Election in the West County Times, which is a newspaper of general circulation that is published daily in the City.

SECTION 6. The City Council has determined that the action to be taken in the event of at tie vote is as follows: In the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the County of Contra Costa Registrar of Voters/Clerk -Recorder, the City Council, in accordance with Election Code § 15651(a), shall set a date and time and place and summon the candidates who have received the tie votes to appear and will determine the tie by lot.

SECTION 7. The City directs that a certified copy of this Resolution be forwarded to the Registrar of Voters and to the Board of Supervisors of Contra Costa County The foregoing Resolution was duly and regularly adopted upon motion of Councilmember ________________________ seconded by Councilmember________________________, at a regular meeting of the City Council of the City of Hercules held on the 25th day of June 2024 by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:
_____________________________
Dan Romero, Mayor
ATTEST:

Eibleis Melendez, City Clerk
343

344

111 Civic Drive, Hercules, CA 94547-1771
(510) 799-8200

NOTICE OF PUBLIC HEARING

NOTICE OF ELECTION

NOTICE IS HEREBY GIVEN that a General Municipal Election will be held in the City of Hercules on Tuesday, November 5, 2024, for the following Elected Officials:

For (3) Members of the City Council (Full term of four (4) years)

The nomination period for these offices begins on July 15, 2024 and closes on Thursday, August 8, 2024 at 5:00 p.m (City offices are closed Friday, August 9 th, 2024). Nomination papers may be obtained from the City Clerk’s office lo cated at City Hall, 111 Civic Drive

Appointments for obtaining and filing nomination papers are required and can be requested by emailing the City Clerk at [email protected] or calling 510-799- 8200. Appointments will be scheduled during regular business hours of 8:00 a.m. to 4:00 p.m. Monday -Thursdays.

If nomination papers for an incumbent officer of the city are not filed by August 9, 2024, the filing period for that office is extended five (5) cale ndar days, to Wednesday, August 14, 2024 at 4:00p.m. , for non -incumbents only . During this extension period, no incumbent is allowed to file nomination documents. For information on individuals who have been issued nomination papers , please visit https://www.herculesca.gov/government/city-clerk/elections.

If no one or only one person is nominated for an elective office, appointment to the elective office may be made as prescribed by § 10229, Elections Code of the State of California.

The polls will be ope n between the hours of 7:00 a.m. and 8:00 p.m. on election day.

Published 7/3/2024

Eibleis Melendez, City Clerk

345
111 Civic Drive, Hercules, CA 94547-1771
(510) 799-8200
Eibleis Melendez, City Clerk
346
CO

NSENT CALENDAR

AGENDA ITEM

4. 22-903
347

REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 25, 2024
TO: Mayor and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
SUBJECT: Authorize Cancellation of The August 13, 2024, Regular City Council Meeting
RECOMMENDED ACTION:

Staff recommends that the City Council consider a summer recess and authorize the cancellation of its August 13, 2024 regular meeting.

BACKGROUND:

The City Council traditionally takes a recess for one or two meetings in August of each year to allow for vacations and generally cancels the second meetings in November and December if they fall on holiday weeks. Based on the City Council direction received on December 12, 2023, the August 27, 2024, the November 26, 2024, and the December 24, 2024 meetings were cancelled. Due to the lack of business items scheduled to be heard at the August 13, 2024 City Council meeting, staff also recommends canceling that meeting. If the meeting of August 13 is cancelled there will be no regularly scheduled City Council meetings in August 2024 and official business will resume at the next regularly scheduled Council meeting on September 10, 2024.

FISCAL IMPACT:

There is no fiscal impact associated with this item.
22-903
348
DI

SCUSSION AND/OR ACTION

AGENDA ITEMS

1. 22-901

2. 22-902

3. 22-798
349

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 25, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Michael Roberts, Public Works Director/City Engineer Christopher Roke, Parks and Recreation Director
SUBJECT: Beechnut Park Conceptual Plan
RECOMMENDED ACTION:

Receive a presentation on the community outreach for the Beechnut Park improvements and designate by minute order the “Play Area with Design Option 3 ” as the preferred alternative.

BACKGROUND:

Beechnut Park is located on
a 6 -acre parcel bounded by
Refugio Valley Road,
Beechnut Drive, and
Coronado Street. It is
accessed from Coronado
Street by a concrete pathway
and from a parking lot off
Beechnut Drive.

The parking lot has been
unused for many years and is
believed to have been
constructed to access the
model homes and sales
office when the surrounding
22-901
350
neighborhood was developed. Existing amenities in the park area are sparse and include a concrete walkway, sand playground with 2 swings, several benches, a trash can, and streetlight, all of which are worn out and in need of replacement. A PG&E easement for overhead transmission lines runs over the site and the current easement language prohibits the installation of any new structures, including play equipment.

The City en tered into a contract with Gates & Associates, who are on the City’s pre - approved vendor list, in November 2023 to complete the conceptual design of the park.

Following approval by the City Council, the conceptual plan will be sent to PG&E for review and ideally approval, potentially with minor modifications. PG&E has communicated to staff that either an encroachment agreement will be required or authorization from the California Public Utilities Commission. This process could take 3- 9 months, depending upon the approach. PG&E would like to see the project advance for the benefit of Hercules residents and City staff is optimistic the necessary approvals will be obtained.

Guidance from the Parks & Recreation Facilities Master Plan informed the development of the conceptual plan and Beechnut Park is included in the priority 5-Year Action Plan.

Funding for this project is included in the recently Adopted FY 24-25 Budget.

ANALYSIS:

Given Beechnut is a neighborhood park, mailers were sent to approximately 900 homes in the vicinity inviting the residents to participate in an on -line survey or to attend a pop - up event. The on-line survey ran from May 9 to May 27 and 172 people participated. The pop-up event occurred on Saturday, May 18 and 12 residents atten ded. Out of the alternatives presented, t he Play Area with Design Option 3 shown below was the clear favorite of those who participated in the survey and event.

Details on the different alternatives, which were selected based upon the available funding, and survey responses are included in Att #1, which will be presented in detail as part of the staff report.

351

FISCAL IMPACT:

The planning level estimate for Play Area with Design Option 3 is $4 38K, which is in the ballpark for the budgeted amount of $404K. As the design is further refined, minor adjustments in the improvements can be made if needed so the total project cost falls within the existing budget.

ATTACHMENTS:

Attach 1- Community Outreach Presentation

352
Summary of Community Outreach
Beechnut Park Upgrade
City Council Meeting
June 25, 2024
353

OUTREACH ACTIVITIES
Online Survey
● 5/9 to 5/27
● 172 participants
● All age groups,
youth to senior
Pop-Up Community Workshop
● 5/18 at the park
● 12 participants
Outreach Efforts
● Reached out to
over 900 homes
184 TOTAL

PARTICIPANTS
354
QUESTION 1: AMENITY OPTION
Option 1:

Play Area
Option 2:

Half Basketball Court
Option 3:

All-Wheels Play Track
355
QUESTION 1: AMENITY OPTION
356
QUESTION 2: PLAY AREA DESIGN
Design 1 Design 2
Design 3
357
QUESTION 2: PLAY AREA DESIGN
358

OPEN COMMENTS
Additional items frequently mentioned in open
comments:
● Community is eager to include shade at the site and supports the addition of natural shade, e.g., trees.
● Respondents would like a drinking fountain or water
bottle filling station to make the site more comfortable for visitors in hot weather.
● Many participants requested upgrades to more than one area of the site, including the play area, blacktop area, landscaping, open space, and pathways.
359

COMMUNITY CHOSEN OPTION
Play Area With Design-3: Plan & Rendering
360

COMMUNITY CHOSEN OPTION
Play Area With Design-3: Cost Estimate
361
DI

SCUSSION AND/OR ACTION

AGENDA ITEM

2. 22-902
362

REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 25, 2024
TO: Mayor and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
SUBJECT: Hercules Branding Project and Final Logo Design Selection RECOMMENDED ACTION:

Staff recommends that the City Council select the final logo design with the approved variations for Tripepi Smith to deliver a full Logo Library, Brand Guidelines , and Brand Templates.

BACKGROUND:

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

In February 2024, the City of Hercules contracted with Tripepi Smith to provide branding services, including a new logo to use in conjunction with the Hercules seal, branding guidelines, and new branded templates.

ANALYSIS:

As part of the logo development process, Tripepi Smith interviewed the City staff, City Councilmembers, and circulated a brand survey to Hercules community members, and community-based organizations. All 180 survey responses received were incorporated in 22-902
363
the Brand Research Summary, driving the development of eight logo concepts that were reviewed and discussed by the City Council at the April 23rd Council meeting.

Based on feedback from City Council, Tripepi Smith created a refined set focusing on four logo design concepts for consideration. Tripepi Smith then distributed a "Focus Round" Survey via email asking participants to identify which concept and overall logo design they preferred.

At the May 28th Council meeting, the City Council deliberated on the four logo options and identified a narrower set of options to consider and discuss further. Following Council direction, Tripepi Smith then conducted focused meetings with Councilmembers and the City Manager, using a weighted star system to rank the four concepts. Based on City Council’s responses, Concept 1 was selected as the preferred option, with minor variations to approve or eliminate.

Tripepi Smith refined the Concept 1 logo option based on feedbac k received during the focused meetings with City Council. Any feedback for the final logo design received from Council this evening will be applied to the final logo design and logo library that will be presented for adoption by City Council at a subsequent meeting.

FISCAL IMPACT:

The recommended action carries no fiscal impact.

ATTACHMENTS:

1. Focus Round 2 - Hercules Logo Concept Options
364
City of Hercules
City of HerculesCalifornia
Hercules
California
Draft-04a Concept 1A, includes quail and serif (bold) font) 365
City of Hercules
City of HerculesCalifornia
Hercules
California
Draft-04a Concept 1B, no quail
366
City of Hercules
City of HerculesCALIFORNIA
Hercules

CALIFO RNIA
Draft-04a Concept 1C, serif font alternate
367
City of HerculesCALIFORNIA
Hercules
City of Hercules

CALIFO RNIA
Draft-04a Concept 1D, no quail AND serif font alternate 368
D

ISCUSSION AND/OR ACTION
A

GENDA ITEM

3. 22-798
369

REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of June 25, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Patrick Tang, City Attorney
Christina Lawrence, Special Counsel
SUBJECT: Update on Local Business Preference
Program for Goods and Services
RECOMMENDED ACTION:

Review and discuss report; provide direction to City Attorney’s office and staff.

BACKGROUND:

As follow up to a request by the City Council, the City Attorney at the Council meeting of September 12, 2023, provided a general overview of local small business preference s for goods and services , including an example of a local preference program implemented in the City of San Pablo that could serve as a model for development of a preference program in the City of Hercules. At the September 12 th meeting, the Council requested more information on the City of San Pablo’s program, including the success of the program, implementation, and impacts on staff . This report provides an update to Council on local preference programs, including information related to the City’s existing Local Preference Program, as set forth in its Purchasing Guidelines , and additional information related to the City of San Pablo’s local business preference program.

DISCUSSION:

City of Hercules’ Existing Local Preference Program
Following the last meeting on the subject , the City Attorney’s office discovered that in 2019, the City adopted revised Purchasing Guidelines , which include a Local Preference Program. Section 7.5 of the Purchasing Guidelines provide as follows:
22-798
370

7.5 Local Preference
(A) For the purchase of goods or services, excluding public works contracts, when two or more proposals or quotes are the same, in unit, quality, service and total cost, preference should be given to the vendor who operates within the planning area as defined in the City’s General Plan if the quote for services or taxable goods is:
 less than $10,000 and is within 5% of the lowest quote;  more than $10,000 up to $500,000 and is within 3% of the lowest quote;
 more than $500,000 up to $1,000,000 and within 2% of the lowest quote;
 more than $1,000,000 and within 1% of the lowest quote. (B) Notwithstanding the foregoing, for procurements subject to the Federal Procurement Requirements the City may not consider or use geographical preferences in the evaluation of bids or proposals, except as provided in 2 CFR § 200.319.

The City’s existing Local Preference Program applies to the purchase of goods and services, excluding public works and federally -funded procurements (since local preferences are typically prohibited for those procurements). It provides that preference should be given to a local vendor (defined as a vendor who operates within the planning area as defined in the City’s General Plan) if the local vendor’s quote is within a certain percentage of the lowest quote and is generally the same in all material respect s to the lowest quote (in terms of quality, quantity, etc.).

Example: The City requests quotes from service providers to perform janitorial services for City buildings for a three-year term.

Quote 1: A non-local vendor submits a quote to perform the services for a not-to-exceed amount of $600,000 for the full term.

Quote 2: A local vendor submits a quote to perform the services for a not- to-exceed amount of $610,000 for the full term.

Quote 3: A local vendor submits a quote to perform the services for a not- to-exceed amount of $620,000 for the full term.
371
Assuming the contract for janitorial services is awarded based on the lowest quote, application of the preference would result in award to the local vendor that submitted Quote 2, since Quote 2 is within 2% of the lowest quote.

City staff is not aware of any situations in which the City’s Local Preference Program has been implemented or applied. In order to better integrate the preference program into the City’s procurement procedures, it would be advisable to adopt a preference program by ordinance, so that it can be codified in the City’s Municipal Code. Staff can also engage in efforts to promote awareness of the City’s preference program among local businesses, which may include public outreach and updating the City’s website to include information on the preference.

City of San Pablo Local Preference Program
The City Attorney’s office contacted the City of San Pablo for more information on its preference program, including the success of the program, implementation, and impacts on staff.

Much like the City’s local preference, the City of San Pablo ’s preference applies to procurements for goods and services , excluding public works or procurements subject to s tate or federal funding . San Pablo applies a 5% preference, up to a maximum of $5,000, to bids submitted by small local businesses , provided the bids are otherwise equal in responsibility and quality. The preference applies for purposes of determining the lowest responsible bidder for award of a contract. San Pablo defines a “small local business” as a business that has a place of business within the city; a valid, current business license issued by the city; and that either employs fewe r than fifty employees or has average annual gross receipts of two million dollars or less, as evidenced by a local small business affidavit that the business submits with its bid.

Example: San Pablo requests bids for a service provider to perform janitorial services for its buildings for a three-year term.

Bid 1: A non-local business submits a bid to perform the services for a not- to-exceed amount of $600,000 for the full term.

Bid 2: A “small local business” submits a bid to perform the services for a not-to-exceed amount of $610,000 for the full term.

Bid 3: A “small local business” submits a bid to perform the services for a not-to-exceed amount of $620,000 for the full term.

In this example, assuming San Pablo awards the contract on a “low bid” basis, application of the preference would not result in award to a small local business.

The 5% preference is capped at a maximum amount of $5,000. Thus, for purposes of comparing bids, Bid 2 is evaluated as $605,000 and Bid 3 is evaluated as $615,000.
372
In terms of the success of the preference in awarding contracts to local businesses, San Pablo has found that few local businesses have benefitted from the preference. There are a couple potential reasons for this, including that San Pablo may have a limited “small local business ” base that can respond to solicitations; San Pablo’s preference factor may not have much of an impact for purposes of comparing the monetary value of bids or quotes, particularly in light of the $5,000 cap ; and San Pablo often receives state or federal grant funding, which limits its ability to apply the preference to grant - funded procurements.

The City of San Pablo representative was uncertain as to the number of businesses that had benefited from the preference , and as to the types of businesses benefitting from the preference. The representative also indicated that the city applied the preference on a recent procurement for services, but the pricing proposed by each respo ndent was high, such that the city’s 5% preference (capped at $5,000) did not affect the ultimate award of the contract.

In terms of the impact on staff and implementation, San Pablo indicated that applying the preference does not require much staff time. Typically, the city articulates the possibility of application of the preference to local businesses in the solicitation document. When evaluating bids or quotes, for those respondents that submit a “local business affidavit” as required for the preference , San Pablo confirms the businesses status as a “small local busines s” and then applies the preference percentage to the pricing proposed by that business for purposes of evaluating and comparing pr icing among all respondents.

ANALYSIS:

If the Council is interested in retaining the existing Local Preference Program set forth in Section 7.5 of the City’s Purchasing Guidelines, staff and the City Attorney’s Office recommend adopting the program by ordinance, so that it can be codified in the Municipal Code to increase staff and the public’s awareness of the program and allow better integration of the program with contracting processes . Staff and the City Attorney’s office could also incorporate a ny desired changes to the program during that process, such as expanding the definition of “local” to include businesses in neighboring communities and/or incorporating a “small” business element. City staff can also promote awareness of the preference progra m among local businesses, which may include public outreach and updating the City’s website.

FISCAL IMPACT:
373
If Council directs additional measures regarding a local business preference program, there may be staff and legal expenses associated with the development and implementation of those additional measures. Additionally, depending on the type of additional measures adopted, the procurement of goods and services may become marginally more expensive.

ATTACHMENTS:

1. City’s Purchasing Guidelines

2. Report to the City Council from the September 12, 2023 Meeting 374

CITY OF HERCULES

PURCHASING GUIDELINES
Adopted September 10
, 2019
375
i

TABLE OF CONTENTS

1. PURPOSE AND SCOPE ......................................................................................... 1

2. DEFINITIONS .......................................................................................................... 1

3. STANDARDS OF CONDUCT AND GENERAL REQUIREMENTS .......................... 3 4. APPROVAL AUTHORITY ........................................................................................ 5

5. TYPES OF PURCHASES ........................................................................................ 6

6. FEDERAL PROCUREMENT ................................................................................. 14

7. QUOTES ................................................................................................................ 16

8. PURCHASE REQUISITION ................................................................................... 18

9. FINANCE DIRECTOR
REVIEW ............................................................................. 19

10. PURCHASE ORDERS AND AGREEMENTS ........................................................ 19

11. BLANKET PURCHASE ORDER ............................................................................ 20

12. OTHER PURCHASING METHODS ....................................................................... 20 13. EXCEPTIONS TO REQUIREMENTS FOR PURCHASE ORDER OR AGREEMENT ................................................................................................... 21

14. MISCELLANEOUS PROCEDURES ...................................................................... 22

15. MONITORING AND OVERSIGHT OF RECEIPT OF GOODS OR
SERVICES ........................................................................................................ 23

16. INVOICE PAYMENT PROCEDURES .................................................................... 24

17. UNAUTHORIZED PURCHASES ........................................................................... 24

18. SURPLUS PROPERTY ......................................................................................... 25

19. CAPITAL ASSETS ................................................................................................. 25 376
1 1.

PURPOSE AND SCO
PE
These Purchasing Guidelines set forth the City’s policies for procurement of goods and services in compliance with all applicable state and federal law. All City procurements must be made in compliance with applicable California law and these Purchasing Guidelines. City procurements which are subject to federal funding, in whole or in part, including FEMA disaster aid, must also comply with the applicable Federal Procurement Requirements, as defined below, and as further specified in Section 6, Federal Procurement, below. (See 2 CFR § 200.317.)

2. DEFINITIONS
The following definitions apply to terms used in these Purchasing Guidelines, whether or not capitalized:

Blanket Purchase Order - A form used to obtain goods and services from vendors, who agree to honor a price for a given product for a given period of time. It differs from a regular purchase order because it does not have a fixed amount or quantity, and is used when the City cannot predict the amount or quantity of goods or services that will be needed.

CAL-Card Procurement Card – A procurement card using the Visa Network.

Contracted by the State of California with U.S. Bank, which is available to all public entities within the state.

Change Order - A change to an existing approved purchase order or written contract.

Cooperative Purchasing Agreement – A written agreement pursuant to which two or more public entities combine their purchase requirements to obtain lower prices through volume buying and to reduce administrative costs, and includes state or local intergovernmental agreements that are appropriate for procurement or use of common or shared goods or services.

Design Professional Services - Architectural, landscape architectural, environmental, engineering, land surveying, or construction project management services, which are subject to Article XXII of the California Constitution, and Government Code section 4529.10, et seq.

DIR – The California Department of Industrial Relations.

Emergency - An emergency is a sudden, unexpected occurrence that poses a clear and imminent danger and requires immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services, as declared by the City Manager.
377
2 Federal Procurement Requirements – The post federal award procurement requirements set forth in 2 CFR §§ 200.318 – 200.326, as may be amended from time to time, which apply to all federally funded procurements, and any additional federal requirements that apply to a particular procurement.

FEMA – The Federal Emergency Management Agency
.

Maintenance – Routine, recurring, and usual work for the preservation, protection, and keeping of any City owned or operated facility for its intended purposes, as further defined in 8 CCR 16000.

Post-Consumer Recycled Materials - A finished material or product that has served its intended use and would not normally be disposed of as solid waste. Examples of post-consumer recycled materials include, but are not limited to old newspaper, office paper, yard waste, steel, glass, aluminum cans, plastic bottles, oil, asphalt, concrete and tires.

Public Works Contract - A public works contract subject to the procurement requirements in section 5.4, is a contract for a public project, which includes the construction, reconstruction, erection, alteration, renovation, improvement, demolition, repair work, painting or repainting involving any City owned, leased, or operated facility, but excluding maintenance. (See Public Contract Code section 22002(c).) Purchase Order - A form used to authorize procurement of goods or services from vendors. The purchase order spells out the specific items to be delivered, price, quantity, and delivery requirements, as well as terms and conditions, if not contained in a separate written agreement.

Purchase Requisition - An in-house electronic form used by departments to request a purchase order.

Relatively Permanent - A useful life of ten (10) years or longer.

RFP - Request for proposals transmitted to qualified vendors or service providers to seek a proposal that best meets the City’s needs.

RFQ - Request for qualifications transmitted to potentially qualified vendors or service providers to evaluate qualifications for providing required services.

Single Purchase - Item and/or items purchased as a single transaction.

Sole Source - A noncompetitive procurement method used when unique goods or services are available only from one source.
378
3 Vendor - A business or sole proprietor that may provide goods or services to the City of Hercules.

3. STANDARDS OF CONDUCT AND GENE

RAL REQUIREMENTS

3.1 Fair Competition. City personnel must discharge their duties impartially to ensure full and open competition for City business by responsible vendors. (See 2 CFR § 200.319.) In addition, they must conduct themselves in a manner that will create confidence in the integrity of the City’s purchasing operations. City personnel will treat all vendors equally and fairly, with equal information given to each vendor who participates in the procurement process. City personnel will ensure that all prequalified lists of persons, firms, or products used in acquiring goods or services are current and include enough qualified sources to ensure maximum open and free competition. City personnel may not place unreasonable restrictions on competition, including any of the following restrictions:
(A) Placing unreasonable requirements on vendors to qualify for the procurement;
(B) Requiring unnecessary experience and excessive bonding; (C) Noncompetitive pricing practices between vendors or affiliates; (D) Noncompetitive contracts to consultants that are on retainer contracts; (E) Organizational conflicts of interest;
(F) Non-compliance with sole source restrictions, and “or equal” requirements, including Public Contract Code section 3400; (G) Precluding potential bidders from qualifying during the solicitation period; and
(H) Any arbitrary action in the procurement process.

3.2 Conflicts of Interest. No employee, officer, or agent of the City may participate in the selection, award, or administration of a contract if he or she has a real or apparent conflict of interest.
(A) A conflict of interest includes any circumstances under which the employee, officer, or agent, or any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of those parties, has a financial interest in or a tangible personal benefit from a vendor considered for a contract. No officer, employee, or agent of the City may solicit or accept gratuities, favors, or anything of 379
4 monetary value from vendors or parties to subcontracts. Disciplinary actions, up to and inclu
ding termination for cause, will apply to any
violation of these conflict of interest standards, in accordance with City policy, and/or, as applicable, a collective bargaining agreement, employment contract, or contract for services. (See 2 CFR § 200.318(c)(1).)
(B) City personnel may not accept gifts, rebates, kickbacks, personal services, or in any way incur personal gain from a vendor, or potential vendor, doing business with the City or otherwise violate laws pertaining to conflicts of interest, political contributions, or unlawful activities. (C) A City employee may not participate in the vendor selection process if the employee has 1) a financial relationship, as set forth in Government Code section 87100 et seq., with the person or firm seeking a contract, or 2) a real or apparent conflict of interest under California Government Code § 1090 or pursuant to the Federal Procurement Requirements. (D) All procurements must be made in compliance with the City’s policy for Prevention of Nepotism and Cronyism in Employment and Contracting, as set forth in the Article 4 of Chapter 3 of Title 2 of the City’s Municipal Code (section 2-3.401 et seq.).
(E) A vendor that develops or drafts specifications, requirements, statement of work, invitation for bids, RFQ, or RFP for a procurement must be excluded from competing for that procurement. (See 2 CFR § 200.319(a).)

3.3 Economical Approach. All procurements must be undertaken in a manner that will avoid acquisition of unnecessary or duplicative items, which may include consideration of consolidating or breaking out procurements, lease alternatives, and other appropriate analysis to determine the most economical approach, subject to the limits of applicable law, including prohibitions against bid-splitting. (See 2 CFR 200.318(d).)

3.4 Oversight. Each department must maintain oversight over its procurements to ensure that vendors perform in accordance with the terms, conditions, and specifications of the contracts or purchase orders, as further specified in Section 15, Monitoring and Oversight. (See 2 CFR § 200.318(b).)

3.5 Procurement Records. Records must be maintained for each procurement of goods or services documenting the history of a procurement, including (1) records of the rationale for procurement method, (2) selection of contract type, (3) contractor selection or rejection, and (4) the basis for the contract price. Procurement records must be maintained by each department. (See 2 CFR § 200.318(i).) 380
5 3.6 Dispute Resolution. Any and all protests, disputes, claims, and the like, arising from a procurement will be addressed promptly in accordance with g ood
administrative practice and sound business judgment, and in compliance with all applicable legal or contractual requirements. (See 2 CFR § 200.318(k).)

3.7 Specifications and Requirements. All procurement solicitations should incorporate a clear and accurate description of the technical requirements or functions of the goods or services to be procured. However, such descriptions should not be drafted to unduly restrict competition among qualified vendors. (See 2 CFR § 200.319(c).)

3.8 Business License. Pursuant to Chapter 6 of Title 8 of the Hercules Municipal Code, Business License Tax, vendors are required to obtain a City of Hercules business license if the vendor is conducting business in the City whether or not they are located in the City limits.

3.9 Prevailing Wages. Public works projects and contracts for maintenance (excluding routine janitorial services) over $1,000, are subject to prevailing wage requirements set forth in the California Labor Code, beginning at section 1720. This includes any construction, alteration, demolition, installation, repair work, carpet- laying, certain tree-removal work, and certain hauling and delivery of ready-mix concrete. For procurements subject to prevailing wage requirements, the procurement solicitation and contract documents must include information on prevailing wage requirements and compliance as specified in the Labor Code. (A) DIR Registration. For each contract subject to prevailing wage requirements, the City may not accept a bid from or award a contract to any contractor or subcontractor that is not registered with the Division of Industrial Relations, as required under Labor Code section 1771.1.

Contracts for construction, alteration, demolition, installation, or repair work for $25,000 or less and maintenance contracts of $15,000 or less are exempt from this requirement.
(B) DIR Notification. For contracts subject to DIR registration requirements, Department Directors must ensure that a PWC-100 form is filed online with the DIR within 30 days after the contract is awarded, but no later than the first day that workers are employed on the project. City personnel are encouraged to file the PWC-100 as soon as possible following award to avoid the penalties that may be imposed for late filing. 381
6 4. APPR

OVAL AUTHORITY

4.1 Over $50,000. All contracts in excess of $50,000 must be approved or authorized by the City Council, including expenditures that have been appropriated in the approved budget, except to the extent the Council has expressly delegated its approval authority, or as specified for emergency contracts pursuant to Section 5.5, Emergency Purchases, below.

4.2 Up to $50,000. All contracts up to $50,000 must be approved or authorized by the City Manager, except as expressly delegated to Department Directors.

5. TYPES OF PURCHASES
For the purpose of these Purchasing Guidelines, there are five types of purchases: 1) general purchase of goods, 2) general purchase of services, 3) design professional services, 4) public works contracts, and 5) emergency purchases. Guidelines for each of these five categories are set forth below. To the extent any of these procurements are federally funded, in whole or in part, in addition to the provisions set forth below, the procurement must also comply with the Federal Procurement Requirements. (See Section 6, Federal Procurement, below.)

5.1 General Purchase of Goods
(A) Goods up to $10,000. Procurement of goods costing up to and including $10,000 (excluding tax, shipping and handling) per vendor, per fiscal year are subject to the following provisions:
 Requesting two quotes encouraged, but optional, for purchases up to $5,000.
 Single purchases over $5,000 (excluding tax, shipping, and handling) require the request of three written quotes, evidence of which must be submitted with the invoice, including the request for quote.  Electronic quote submittals are acceptable.
 When goods are standardized or of uniform quality, the award will be given to the vendor with the lowest quote. If the goods are not standardized or not of uniform quality and the purchase is not awarded to the vendor with the lowest quote, an explanation of why as well as any documentation to support the decision must be maintained by the requesting department.
382
7 (B) Goods $10,000-$50,000. Procurement of goods costing over $10,000 and up to and including $50,000 (excluding tax, shipping and handling) per vendor, per fiscal year are subject to the following provisions:
 Request three written quotes, evidenc
e of which must be submitted with
the Purchase Requisition, including the request for quote.  Electronic quote submittals are acceptable.
 When goods are standardized or of uniform quality, the award will be given to the vendor with the lowest quote. If the goods are not standardized or not of uniform quality and the purchase is not awarded to the vendor with the lowest quote an explanation of why as well as any documentation to support the decision must be submitted with the Purchase Requisition.
 Purchase Order is required prior to purchase made or commencing work unless otherwise authorized by the City Manager.
(C) Goods over $50,000. Procurement of goods costing more than $50,000 per vendor, per fiscal year:
 Request three written quotes, evidence of which must be submitted with the Purchase Requisition, including the request for quote.  Electronic quote submittals are acceptable.
 The $50,000 threshold applies to each separate project.  City Council must approve all purchases over $50,000 before a Purchase Order will be issued.
 Staff report submitted to City Council will include information regarding the quotes received, the recommended vendor selection, and the reasons for that recommendation.
 When vehicles and equipment are purchased with City Council approval, other parts and supplies that are purchased from the same vendor will be considered a separate purchase and will not require City Council approval until the total is over $50,000.
 When goods are standardized or of uniform quality, the award will be given to the vendor with the lowest quote. If the goods are not standardized or not of uniform quality and the recommendation is that the purchase not be awarded to the vendor with the lowest quote, an 383
8 explanation of why as well as any documentation to support the decision must be included in the staff report.
 Purchase Order is required prior
to purchase being made or commencing
work unless otherwise authorized by the City Council.
(D) Hardware/Building Supply Vendors. Procurements from hardware or building supply vendors are subject to the following provisions:
 In order for the efficient use of staff time, availability of materials and supplies as well as proximity to a project site will be determining factors in the selection of the vendor for day-to-day purchases.
 Unless specified otherwise, all other provisions in these Purchasing Guidelines are applicable to the procurement.
(E) Used Equipment or Furniture. Used equipment or furniture may be purchased if the cost can be demonstrated to be a significant savings over the equivalent item purchased new, and subject to the following provisions:
 Used equipment or furniture purchases must be approved by the appropriate Department Director and Director of Finance or City Manager.  Unless specified otherwise, all other provisions in these Purchasing Guidelines are applicable to the procurement.
(F) Recycled Products and Materials. Recycled products should be used whenever practical, including products manufactured with post-consumer recycled materials.

5.2 General Procurement of Services. The following provisions apply to general procurement of services, excluding public works or design professional services. (A) Up to $1,000. Services costing up to and including $1,000 per vendor, per project, per fiscal year, are subject to the following provisions:
 Requesting two quotes is encouraged, but optional, for services costing up to $1,000.
 Electronic quote submittals are acceptable.
 When services are standardized or of uniform quality, the award will be given to the vendor with the lowest
quote. If the services are not
standardized or not of uniform quality and the contract is not awarded to 384
9 the vendor with the lowest quote, an explanation of why as well as any documentation to support the decision must be maintained by the requesting department.
 Prior to services being performed, the Department Director must determine if a written agreement is required in addition to a Purchase Order after evaluating the level of risk based on the location and type of service being performed.
 If the Department Director determines that a written agreement is not required, an Agreement Determination Form will be signed by the Department Director and submitted with the invoic
e for payment.
 If the determination is made that a written agreement is not required and additional work puts the service over $1,000, an agreement will then be required.
 If the Department Director determines that a written agreement is required, the department will use a standard template agreement approved by the City Attorney.
 Contact the City Attorney or City Clerk for questions regarding requirements for written agreements.
(B) Services $1,000-$10,000. Services costing over $1,000 and up to and including $10,000 per vendor, per project, per fiscal year are subject to the following provisions:
 Requesting two quotes is encouraged, but optional, for services costing over $1,000 and up to $5,000.
 Procurements for services over $5,000 and up to and including $10,000 require the request of three written quotes, evidence of which must be submitted with the invoice, including the request for quote.  Electronic submittals are acceptable.
 When services are standardized or of uniform quality, the award will be given to the vendor with the lowest quote. If the services are not standardized or not of uniform quality and the agreement is not awarded to the vendor with the lowest quote, an explanation of why as well as any documentation to support the decision must be maintained by the requesting department.
385
10  A written agreement is required, using the City’s current standard template agreement, or a form otherwise approved by the City Attorney.  Maintenance services over $1,000, excluding routine janitorial serv ices,
are subject to prevailing wage compliance.
 Contact the City Attorney or City Clerk if needed regarding requirements for the written agreement.
(C) Services $10,000-$50,000. Services costing over $10,000 and up to and including $50,000 per vendor, per project, per fiscal year are subject to the following provisions:
 Request three written quotes, evidence of which must be submitted with the Purchase Requisition, including the request for quote.  Electronic quote submittals are acceptable.
 When services are standardized or of uniform quality, the award will be given to the vendor with the lowest quote. If the services are not standardized or not of uniform quality and the agreement is not awarded to the vendor with the lowest quote, an explanation of why as well as any documentation to support the decision must be submitted with the Purchase Requisition.
 A written agreement is required, using the City’s current standard template agreement, or a form otherwise approved by the City Attorney.  Maintenance services over $15,000, excluding routine janitorial services, are subject to prevailing wage requirements, including DIR registration.

See section 3.9 regarding DIR reporting requirements.
 Contact the City Attorney or Risk Manager for agreement questions if needed.
 Purchase Order is required prior to purchase being made or commencing work unless otherwise authorized by the City Manager.
(D) Services over $50,000 and over $100,000 on fully reimbursed general contracts. Services costing more than $50,000 and $100,000 on fully reimbursed contracts per vendor, per project, per fiscal year, are subject to the following requirements:
 Request three written quotes, evidence of which must be submitted with the Purchase Requisition, including the request for quote. 386
11  Electronic quote submittals are acceptable.
 The $50,000 and $100,000 on fully reimbursed contract threshold applies to each separate scope of work or project.
 City Counc
il must approve all agreements over $50,000 and $100,000 on fully reimbursed contracts before a Purchase Order will be issued, subject to the exceptions specified in Section 2, above.
 Staff report submitted to City Council will include information regarding the quotes received, the recommended vendor selection, and the reasons for that recommendation.
 When services are standardized or of uniform quality, the award will be given to the vendor with the lowest quote. If the services are not standardized or not of uniform quality and the recommendation is that the agreement not be awarded to the vendor with the lowest quote, an explanation of why as well as any documentation to support the decision must be included in the staff report.
 Maintenance services over $15,000, excluding routine janitorial services, are subject to prevailing wage requirements, including DIR registration.

See Section 3.9 regarding DIR reporting requirements.
 All departments will use a standard template agreement, unless otherwise approved by the City Attorney.
 Contact the City Attorney or City Clerk if needed regarding requirements for the written agreement.
 Purchase Order is required prior to purchase being made or commencing work unless otherwise authorized by the City Council.

5.3 Design Professional Services. Procurement of design professional services is subject to the following provisions, as well as Article XXII of the California Constitution, and Government Code section 4529.10, et seq:
 Design professional services must be procured by a fair, competitive selection process based on demonstrated competence and professional qualifications necessary for the services.
 An RFQ, RFP, or combined RFQ/RFP procedure should be used to procure design professional services. The process must require compliance with all laws regarding political contributions, conflict of 387
12 interest, or unlawful activities. The RFQ or R
FP form must be approved by
the City Attorney’s office.

 A City employee may not participate in the selection process if the employee has a financial relationship with the person or firm seeking a contract.
 Unless specified otherwise, all other provisions in these Purchasing Guidelines are applicable to the procurement.

5.4 Public Works Contracts . Public works contracts must be procured in accordance with the California Uniform Public Construction Cost Accounting Act (“CUPCCAA”), depending on the dollar amount, as further specified in Public Contract Code section 22032, as may be amended from time to time, and as further specified below:
 Public works contracts of $60,000 or less may be performed by the employees of a public agency by force account, by negotiated contract, or by purchase order
 Public works contracts over $60,000 and up to $200,000 or less, must use the informal bid procedure specified in Chapter 4 of Title 7 of the Hercules Municipal Code, and Public Contract Code section 22034.  Public works contracts over $200,000 must use formal bidding procedures as specified in Chapter 4 of Title 7 of the Hercules Municipal Code, and in Public Contract Code section 22037.
 Immediately upon the effective date, any changes to the statutory threshold amounts in Public Contract Code section 22032, will apply to these Purchasing Guidelines and be deemed to amend the amounts set forth herein.
 Public works contracts must be awarded to the lowest responsible bidder.  Contracts over $10,000 require a Purchase Order prior to purchase being made or commencing work unless otherwise authorized by the City Manager or Director of Finance.
 Budgeted public works contracts up to $100,000 may be awarded by the City Manager or his/her authorized representative.
388
13  Public work
s contracts over $100,000 or unbudgeted contracts over
$50,000 must be awarded by the City Council before a Purchase Order will be issued.
 Subject to prior approval of the City Council, design-build procurement may be used for qualified public works contracts in excess of $1,000,000, subject to the provisions of Public Contract Code section 22160 et seq., as may be amended from time to time. Any person or entity that performs services for the City relating to the solicitation of a design-build project, is disqualified from submitting a proposal to the City as a design-build entity or from joining the design-build team that is awarded the design-build contract.
 Staff report submitted to the City Council should include information regarding the bids received, including bid amounts, and recommended selection based on the lowest responsive bid from a responsible bidder.  Public works contracts must be awarded and administered in compliance with the applicable prevailing wage and DIR registration requirements set forth in Labor Code section 1720 et seq. See Section 3.9, above.  For questions regarding public works contracts, contact the City Attorney’s office.

5.5 Emergency Purchases. In an emergency, as defined in these Purchasing Guidelines, and as declared by the City Manager or City Council, essential goods and services may be obtained without following the City's usual procurement procedures.
(A) During Business Hours. An emergency arising or discovered DURING the City’s normal business hours is subject to the following provisions:
 The Finance Director or designee must confirm the declaration of the emergency with the City Manager.
 The Finance Director or designee will either issue a Purchase Order and purchase the required goods and services or authorize the responsible department to do so.
(B) After Business Hours. An emergency arising or discovered AFTER normal business hours is subject to the following provisions:
 City employees must obtain authorization from the City Manager before making purchases on an emergency basis.
389
14  If the City Manager is unavailable, contact the City Attorney or Department Director for emergency authorization.
 Any City employee who makes an emergency purchase after normal business hours must submit receipts to the responsible Department Director the following workday.
(C) Em
ergency Construction Services. A public works contract procured on an emergency basis, may be awarded in compliance with the emergency procedures set forth in Public Contract Code Section 22050, as may be amended from time to time.
(D) Reporting Emergency Purchases to Purchasing. For each emergency purchase made, the Department Director must, no later than five days thereafter, submit to the Finance Director a memo listing all expenditures, where the goods or services were used and include an explanation of the circumstances of the emergency that justified the use of emergency procedures.
(E) Reporting Emergency Purchases to City Council. The Finance Director will submit monthly to the City Council a list of all emergency purchases for goods or services costing more than $50,000 per vendor, made during the preceding month, with an explanation of the circumstances of each.

The Department Director will be responsible for responding to the City Council's questions about the emergency purchase.

6. FEDERAL PROCUREMENT
Any procurement made pursuant to a federal award or subject to reimbursement, in whole or in part, with federal funds must comply with the City’s procurement procedures, state law, and the applicable Federal Procurement Requirements, including 2 CFR §§ 200.322 (“Procurement of recovered materials”), 2 CFR § 200.323 (“Contract cost and price”), 2 CFR § 200.324 (“Federal awarding agency or pass-through entity review”), 2 CFR § 200.325 (“Bonding requirements”), and 2 CFR § 200.326 (“Contract provisions”). In the event of any conflict between City, state, or federal requirements, the most stringent requirement must be used. (See 2 CFR 200.318.) City personnel must comply with funding agency requests for review of technical specifications or procurement documents as provided in 2 CFR § 200.324.

6.1 General Federal Requirements and Recommendations
(A) Required Contract Provisions. Pursuant to 2 CFR § 200.326, contracts for federally-funded procurements must contain the applicable provisions described in Appendix II to Part 200 – Contract Provisions for non-Federal Entity Contracts Under Federal Awards.
390

15 (B) Solid Waste Disposal Act. Federally-funded procurements must comply with the Solid Waste Disposal Act, as further specified in 2 CFR § 200.322.

(C) Cost/Price Analysis. For federally-funded procurements in excess of the currently applicable Simplified Acquisition Threshold, including contract modifications, a cost or price analysis must be performed, and which must include making independent estimates before receiving bids or proposals. (See 2 CFR § 200.323.) Costs or prices based on estimated costs for federally-funded contracts are allowable only as provided in 2 CFR § 200.323.

(D) Profit Negotiation. For a federal contract awarded without price competition, profit must be negotiated as a separate element of price. To establish fair and reasonable profit, consideration must be given to the complexity of the work, the contractor’s risk, the contractor’s investment, the amount of subcontracting, record of past performance, and industry profit rates, as further specified in 2 CFR § 200.323(b).

(E) Excess or Surplus Property. When it will reduce project costs and is feasible, use of federal excess and surplus property is encouraged over purchasing new. (See 2 CFR § 200.318(f).)

(F) Value Engineering. For larger federally-funded construction projects, a provision for value engineering may be added to the construction contract, subject to prior authorization from the Department Director. A value engineering provision must include a clear procedure for submission, approval, and cost-sharing of savings, consistent with Public Contract Code section 7101, and approval as to form by the City Attorney. (See 2 CFR § 200.318(g).)

(G) Geographical Preferences. Notwithstanding the provisions of Section

7.5, Local Preference, geographical preferences may not be used for federally-funded procurements, unless expressly authorized by the awarding agency. (See 2 CFR § 200.319(b).)

(H) Time and Materials. A time and materials contract may not be used for a federally-funded procurement, unless the Director has determined that no other type of contract is suitable for the procurement, and provided the procurement complies with 2 CFR § 200.318(j). Similarly, a “cost plus” contract may not be used, as further specified in 2 CFR § 200.323.

391

16 (I) Intergovernmental Agreements. Use of intergovernmental agreements is encouraged where appropriate. (See 2 CFR § 200.318(e); and see Section 7.4, Cooperative Purchasing Agreements, below.)

6.2 Federal Contractor Requirements

(A) Responsible Contractors. Contracts will only be awarded to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement, with consideration given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. (See CFR § 200.318(h).) A contractor must also be “responsible” as determined under California law, including Public Contract Code section 1103.

(B) Small and Minority Businesses. The City will take all necessary affirmative steps, including those identified in 2 CFR § 200.321(b), to assure that minority businesses, women’s business enterprises, and labor surplus area firms are used when possible.

6.3 Methods of Procurement. Depending on the type and amount of goods or services, the City will use one of the below methods of procurement, consistent with 2 CFR § 200.320 and as further described and defined in Section 5 of these Purchasing Guidelines.

(A) Procurement by micro-purchases. The City may acquire supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold in 2 CFR § 200.67. A micro-purchase contract may be awarded without soliciting competitive quotes provided the price is reasonable, unless otherwise specified under the City’s procurement procedures. To the extent practicable, the City will distribute micro- purchases equitably among qualified suppliers. (See 2 CFR § 200.320(a).)

(B) Procurement by small purchase procedures. The City may use simple and informal procurement methods for securing services, supplies, or other property that do not cost more than the Simplified Acquisition Threshold in 2 CFR § 200.88. If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources. (See 2 CFR § 200.320(b).)

(C) Procurement by sealed bids (formal advertising). The City may publicly solicit sealed bids to be opened in public and award a fixed price contract to the lowest responsible bidder, in the manner required for formal bidding as specified in chapter 4 of Title 7 of the Hercules Municipal code, and in compliance with 2 CFR § 200.320(c)(1).

392

17 (D) Procurement by competitive proposals. The City may use this method when the conditions for use of sealed bids is not appropriate and more than one source submits an offer following a request for proposal. If the City uses this method, it must comply with the requirements of 2 CFR § 200.320(d), in addition to any other applicable City or state requirements, including, the requirements for procuring design professional services set forth in Section 5.3, Design Professional Services, above.

(E) Procurement by noncompetitive proposals. The City may solicit a proposal from only one source when the item is available only from a single source, the public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation, the federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the City, or competition is determined to be inadequate after solicitation of a number of sources. The procurement must comply with the provisions of Section

7.3, Sole Source Negotiated Agreements, below, in addition to the requirements set forth in 2 CFR § 200.320(f).

7. QUOTES

7.1 Requesting Department Responsibility. Requesting department will solicit, receive and evaluate quotes for goods and/or services as set forth below:

 All solicitations for quotes must include a written description of the goods or services to be purchased, including drawings, diagrams, or formal specifications if required.

 All requests for quotes must be made within the same timeframe to ensure fair competition.

 All requests for quotes must include a submittal deadline.

 If delivery is required, the quote must include delivery costs.

 All vendors will be treated equally and fairly at all times by all personnel, with equal information given to each vendor who participates in the procurement process.

7.2 Alternate Vendor. In the event that the lowest quoter is unable to provide the goods, an alternate vendor will be used in sequence of lowest quote, subject to prior approval from the Department Director or designee.

393

18 7.3. Sole Source Negotiated Agreements.

(A) It is the City's policy to encourage competition in procurements. However, a negotiated agreement may be used for purchases of unique goods or services that are available from only one source, subject to prior approval of the Finance Director.

(B) The requesting department is responsible for supplying the Finance Director with a concise written justification, approved by the Department Director or designee, for the sole source purchase. Requests for sole source procurements over $50,000 must be reviewed by the City Manager and approved by the City Council.

7.4. Cooperative Purchasing Agreements

(A) When it is in the City’s best interest, as determined by the Finance Director, departments may purchase goods or services through Cooperative Purchasing Agreements with other governmental or public agencies.

(B) Purchases through Cooperative Purchasing Agreements may be accomplished without soliciting competitive quotes.

(C) Departments seeking to use a Cooperative Purchasing Agreement must submit all information regarding the Cooperative Purchasing Agreement to the Finance Director.

(D) The Finance Director will submit the Cooperative Purchasing Agreement to the City Attorney’s office for review and approval as to form. It is the department’s responsibility to provide any additional information, if required by the City Attorney’s office, by submitting the information to the Finance Director.

7.5 Local Preference

(A) For the purchase of goods or servic es, excluding public works contracts, when two or more proposals or quotes are the same, in unit, quality, service and total cost, preference should be given to the vendor who operates within the planning area as defined in the City’s General Plan if the quote for services or taxable goods is:

 less than $10,000 and is within 5% of the lowest quote;

 more than $10,000 up to $500,000 and is within 3% of the lowest quote;

394

19  more than $500,000 up to $1,000,000 and within 2% of the lowest quote;

 more than $1,000,000 and within 1% of the lowest quote.

(B) Notwithstanding the foregoing, for procurements subject to the Federal Procurement Requirements the City may not consider or use geographical preferences in the evaluation of bids or proposals, except as provided in 2 CFR § 200.319.

8. PURCHASE REQUISITION

8.1 A Purchase Requisition is required for a Purchase Order to be issued.

8.2 The requesting department prepares the Purchase Requisition in the manner specified by the Finance Director for the entire amount of the purchase including tax, shipping and handling, etc. and codes with the correct accounting code(s).

8.3 Prior to submitting the Purchase Requisition for approval by the Finance Director, all documents verifying compliance with these Purchasing Guidelines must be attached. These documents, as updated from time to time, may include:

 Written quotes with request for quote showing product specifications and quote tabulation, if appropriate.

 Staff report and executed resolution or voting log if executed resolution is unavailable, if required.

 Executed contract/agreement or amendment for services.

 Insurance and endorsements or bonds if required.

 Verification of City of Hercules business license if conducting business in the City of Hercules. If not required, add a note documenting why it is not required.

 Sole source memo including verification of sole source and authorization from the Finance Director or City Manager, as applicable.

8.4 The Finance Director’s approval will be granted provided the department has sufficient funds budgeted to pay for the purchase, all documents are attached to the Purchase Requisition and are acceptable, and the purchase is made in compliance with these Purchasing Guidelines.

395

20 9. FINANCE DIRECTOR REVIEW

If the Purchase Requisition is not complete and accurate, a Purchase Order will not be issued and the requesting department will be notified. If the Purchase Requisition is complete and accurate, see Section 8.

Quotes provided to staff occasionally include estimates of shipping and/or handling charges and sometimes estimated tax. Staff can make adjustments up to $100 to affected Purchase Orders. Any adjustments will be within the previously approved budgets adopted by City Council.

A Purchase Order is required prior to purchase being made or work commencing unless otherwise provided in these Purchasing Guidelines or as authorized by the City Manager.

10. PURCHASE ORDERS AND AGREEMENTS

10.1 With the exception of emergency purchases, Purchase Orders are required for all goods or services costing more than $10,000.

10.2 A Purchase Order will only be issued after the Finance Director or designee has approved the Purchase Requisition. Invoices for purchases requiring a Purchase Order will not be paid until a Purchase Order has been issued and approved.

10.3 Change Orders or amendments that increase Purchase Order amount over $50,000 require prior approval from the City Council. Documents verifying compliance with these Purchasing Guidelines as outlined in Purchase Requisition, Section 5.3 of these Purchasing Guidelines, must be submitted with the Change Order or amendment.

10.4 Written agreements must use the appropriate City Attorney-approved agreement template, unless otherwise approved by the City Attorney. Department Directors must obtain the most current form from the City Clerk’s office. Old forms should not be re-used because legal requirements may change.

10.5 Contracts must contain a clear and accurate description of the technical requirements for the procurement, all requirements which must be fulfilled by the contractor, and all factors to be used in evaluating bids or proposals.

11. BLANKET PURCHASE ORDER

11.1 Blanket Purchase Orders may use goods or services that are used by the City for ongoing operations, where vendors agree to honor a price for a given product or 396

21 service for a given period of time. The City may not know specifically how much of the product or service will be consumed or where or when it will be consumed.

11.2 Blanket Purchase Orders have the same requirements that are outlined in these Purchasing Guidelines as other goods or services.

11.3 Departments will be responsible for issuing Purchase Requisitions against Blanket Purchase Orders.

12. OTHER PURCHASING METHODS

12.1 Credit Cards. Credit card purchases are governed by these Purchasing Guidelines. A credit card can be used for items such as: authorized travel expenses, hotel reservations, business meeting meals, training, and ordering goods from vendors approved by the Department Director.

(A) The City Manager will be issued a credit card with a $10,000 limit to be used for City business expenditures only.

(B) The City Attorney will be issued a credi t card with a $5,000 limit to be used for City business expenditures only.

(C) Department Directors (with City Manager approval), and non-limited service employees (with Department Director approval) will be issued a credit card with a limit designated by the Department Director, not to exceed $5,000, to be used for City business expenditures only.

(D) It is the responsibility of every individual issued a credit card to reconcile and attach supporting documentation, with the appropriate account code(s), including Purchase Order number if applicable.

(E) The credit card statement and supporting documentation is to be forwarded to the Finance Director after the following approval:

 City Manager approves Department Director statements.

 Finance Director approves City Manager and City Attorney statements.

 Department Directors approve their staff’s statements.

12.2 Petty Cash. Petty cash may be used for purchases up to $50, subject to compliance with Administrative Policy #27.

397

22 13. EXCEPTIONS TO REQUIREMENTS FOR PURCHASE ORDER OR AGREEMENT

The following items do not require the use of Purchase Orders and are not subject to the provisions of these Purchasing Guidelines except the requirement for a written agreement as otherwise specified in Section 3 of these Purchasing Guidelines:

 Annual maintenance payments
 Annual lease payments
 Employee benefits
 Bond and trust account payments
 Computer hardware/software maintenance
 Developer reimbursement agreements
 Escrow payments
 Insurance
 Pass-through payments
 Prepayments such as PG&E contract work

13.1 No Agreement and No Purchase Order: General

 Bank and trustee services and fees
 California Department of Public Health – Water Permit  City of Pinole - Wastewater
 Contra Costa County election costs
 Contra Costa County Local Enforcement Agency – Solid Waste Permit  Contra Costa County – Stormwater Utility Administration  County Health Inspection and SART Exams
 Department of Justice (live scan)
 Deposit accounts
 Employee reimbursements
 Employment health/medical services
 Fuel (gasoline/diesel)
 Membership/dues
 Offsite training expenses
 Permits when paid in one payment
 Postage
 Regional Water Quality Control Board – Wastewater Permit  Subscriptions
 Refunds
 Travel expenses
 Utility payments

13.2 No Agreement and No Purchase Order: Vehicle/Equipment Maintenance and Rental Equipment. The City Manager may grant signature authority, in writing, for certain maintenance and rental equipment. When a City employee is designated 398

23 in writing to sign for maintenance work or rentals, no agreement and no purchase order are required. This exception applies to:

 Vehicle Equipment Maintenance
 Rental Equipment

13.3 No Agreement and a Blanket Purchase Order: Amazon purchases. The Administrative Services Department will issue a Blanket Purchase Order for an amount not to exceed $50,000 for all purchases made through Amazon, including Amazon subsidiaries and subcontractors. Not-to-exceed amounts within the Blanket Purchase Order will be allocated by department. For these allocated amounts, no written agreement is required.

14. MISCELLANEOUS PROCEDURES

14.1 Pre-packaged “Out of the Box” Software Agreement. Pre-packaged “out of the box” software often requires the acceptance of terms of agreement in order to install, support or maintain the software. Since vendors will not change the terms of agreement, it becomes a business decision as to the need of the software and risk level faced and is subject to Department Director approval in consultation with the City Attorney. A software Purchase Approval form is required for all software agreements regardless of the dollar amount of software to be purchased.

14.2 Beginning/Mid-Year Over $50,000 Staff Report. Finance will prepare a staff report before the beginning of each fiscal year and at mid-year, if necessary, that will authorize the use of vendors for recurring services or goods amounting to over $50,000 for the upcoming fiscal year. Vehicles and equipment are not considered recurring for the purpose of this section. The over $50,000 staff report will list the vendor and the estimated cost of goods or services for the fiscal year. Departments will provide information to Finance including vendor name, purpose, estimated amount to be spent, quote tabulation sheet as well as providing copies of the request for quotes, quotes and/or agreement in order for the staff report to be prepared. Department representatives must be available at the City Council meeting to answer questions regarding the goods or services they are requesting.

14.3 Long-Term Agreements. All long-term agreements and/or Purchase Orders that have not been approved by City Council where a vendor holds the price from year-to-year must be re-quoted once every two years to ensure that the City is obtaining the best price for the goods and/or services.

14.4 Insurance Expiration Listing. Once per quarter, the Finance Director will send departments a listing of insurance expirations. It is the department’s responsibility to submit updated insurance information to the Finance Director.

399

24 14.5 Delivery of Goods Only. A Purchase Order only, not an agreement, is required if a vendor is delivering goods and not providing any other services; there is no associated risk, e.g., for heavy equipment or supplies for construction; and the goods are not custom-ordered or fabricated for the City.

14.6 Product Warranties. Each department will keep all product warranties for goods or services purchased by that department.

15. MONITORING AND OVERSIGHT OF RECEIPT OF GOODS OR SERVICES

Upon receipt of the goods or services, the requesting department must inspect the items to determine if:

 the condition is acceptable,
 the purchase is complete,
 the specifications were met, and
 billed services have been completed satisfactorily.

15.1 If the items are acceptable and the service rendered is complete, the requesting department will approve the invoice and forward it to Accounts Payable.

15.2 If the items are not acceptable or incomplete, or the services were not provided as required, the requesting department will contact the vendor, or complete a requisition for a Change Order to the Purchase Order to reflect the differences.

15.3 If items are back-ordered and are to be delivered at a later date and the balance of the order is not received within 30 days, the requesting department will contact the vendor, or complete a requisition for a Change Order to the Purchase Order to cancel the balance of the order and reflect the differences.

15.4 The City will maintain oversight to ensure that goods and services are provided in accordance with the terms, conditions, and specifications set forth in each Purchase Order or contract.

15.5 The City will maintain records sufficient to detail the history of all procurements.

Records will include rationale for the method of procurement used, selection of contract type, contractor selection or rejection, and the basis for the contract price.

16. INVOICE PAYMENT PROCEDURES

16.1 The City desires to pay its bills in a prompt manner to take advantage of discounts and to avoid late charges and penalties. All invoices should be addressed 400

25 to the City of Hercules, 111 Civic Center Drive, Hercules, CA 94547, Attention:

Finance Department. Invoice payment is contingent upon receiving a proper invoice, including applicable sales tax, and delivery of the goods or services. All departments must cooperate by approving invoices and check requests, if correct, and promptly returning the invoice to the Finance Department. Departmental approval signifies that the invoice is correct and the goods or services have been received. The invoice must reach the Finance Department within seven working days after the department receives and verifies the receipt of the goods or services.

If the invoice cannot be returned within seven working days, the Finance Department should be notified of the reason for the delay.

16.2 The Finance Department issues checks on the last working day of each week.

In order for a check request, invoice or any other payment document to be issued on these processing dates, the Finance Department must receive proper documentation, including all authorization signatures, no later than Thursday at noon of the previous week. Unless otherwise required, invoices will be scheduled for payment 30 days after date of invoice, if correct and charges are appropriate.

16.3 The Finance Department will prepare a disbursement report weekly to be reviewed and approved by the Director of Finance or designee before checks can be released.

16.4 Manual checks will be issued only in emergency situations, with prior approval from the Director of Finance or designee. Departments must plan ahead for funds, especially travel, conference registration and per diem requests.

16.5 Notify the Finance Director regarding any disputed invoices, including information about the amount in dispute and the basis of the dispute.

17. UNAUTHORIZED PURCHASES

17.1 If any department purchases or contracts for any goods or services without complying with the provisions of these Purchasing Guidelines, such purchases or contracts may be void and of no effect, unless thereafter approved by the person or entity required by these Purchasing Guidelines to approve such purchases or agreements. However, the City Council or authorized staff is under no obligation to approve unauthorized purchases not made in accordance with these Purchasing Guidelines.

17.2 If a purchase or contract is found to not comply with these Purchasing Guidelines, a memo signed by the Department Director must be submitted to the Finance Director with a copy to the City Manager, detailing what was out of compliance, how it happened, and what steps will be taken to ensure that these Purchasing Guidelines will be adhered to in the future.

401

26 17.3 An employee who makes an unauthorized purchase or otherwise violates the Policy may be subject to discipline.

17.4 The Department Director approving an unauthorized purchase will be held accountable for identifying and correcting non-conforming purchases made by department employees. Repeated instances of non-conforming purchases within a department may lead to disciplinary action against the Department Director.

17.5 No department can divide orders for goods or services in order to evade the dollar limits of these Purchasing Guidelines.

17.6 No goods or services for personal use may knowingly be purchased on City accounts or with City funds.

18. SURPLUS PROPERTY

18.1 All departments must submit an annual report in October to Purchasing, showing all capital asset goods and equipment or Information Systems hardware or software that are no longer used or that have become obsolete or worn out.

Purchasing will make useable items available to other departments.

18.2 Purchasing, with approval from the Director of Finance , has authority to sell all goods and equipment which cannot be used by any department or which have become unsuitable for City use, or to exchange the same for or trade in the same on new goods or equipment.

18.3 Under no circumstances will any Department Director or any City employee sell, give away, exchange, rent, loan or borrow City owned property without prior written authorization from the Director of Finance through Purchasing. This prohibition applies to any capital asset or property that may have a value when sold for scrap (e.g. water meters). Surplus property must be stored for future use by other departments or disposed of after approval of the Director of Finance. Finance and Information Systems surplus items require the approval of the City Manager.

18.4 All checks received for property sold, after authorization from the Director of Finance, must be made payable to “City of Hercules.”

19. CAPITAL ASSETS

19.1 Capital assets include the following:

 Land parcels
 Site improvements
 Buildings/structures
402

27  Machinery and equipment
 Licensed vehicles
 Major infrastructure
 Right of ways/easements
 Capital improvements
 Assets of an intangible nature

19.2 The following items are not considered capital assets:

 Records and drawings, consumable supplies, and spare parts and inventory items
 Leased property and personal property of employees
 Maintenance and repair of capital assets

19.3 Equipment includes moveable property which is relatively permanent and/or of significant value such as generators, pumps, machines, tools, vehicles and portable or removable devices. Items with a value under $10,000 will not be included unless included in the City’s Equipment Replacement Program.

19.4 Inventory tags are used primarily to identify items that fall within the definition of capital assets, to provide departments with a reference when conducting their annual inventories and to provide a means of listing, cataloging and controlling assets of the City. Although it may not be feasible to tag each category of capital assets, it should be assigned an inventory number.

19.5 When adding, disposing of, or trading-in capital assets, an Asset Information Form must be completed and submitted to Finance along with Purchase Requisition, if required. This will provide the capital asset monitor with adequate information. All disposals (trade-in, donation or disposal of irreparable assets) must be approved by the Finance Director prior to disposal.

19.6 The following procedures must be completed when requesting pick-up or delivery of surplus equipment and/or vehicles:

(A) Complete City Asset Information form, located on the City intranet.

(B) Submit the completed form to Finance.

19.7 Each department will be responsible for arranging for the pick-up of requested surplus equipment.

403
PUBLIC CONTRACT CODE Section 2002
(a) Notwithstanding any other provision of law requiring a local agency to award contracts to the lowest responsible bidder, any local agency may do any of the following in facilitating contract awards to small businesses:
(1) Provide for a small business preference in construction, the procurement of goods, or the delivery of services where responsibility and quality are equal.

The local agency shall set the percent and financial value of a preference. The maximum percentage of a preference shall be 7 percent of the lowest responsible bidder meeting specifications and the maximum financial value shall be one hundred fifty thousand dollars ($150,000) for any bid.
(2) Establish a subcontracting participation goal for small businesses on contracts and grant a preference, pursuant to paragraph (1), to those bidders who meet the goal. (3)(A) Require bidders to make good faith efforts to meet a subcontracting participation goal for small business contracts. Bidders that fail to meet the goal established by the local agency, shall demonstrate that they made good faith efforts to meet the goal. (B) A prime contractor may, subject to the approval of the local agency, substitute a subcontractor with another small business as applicable. A local agency shall approve the substitution of a subcontractor only in the instance where the substitution meets the requirements of paragraph (6) of subdivision (d) and the local agency's adopted policy. (4) Set additional guidelines for local preference purposes. (b)(1) The local agency shall define the eligibility for a preference authorized pursuant to this section.
(2) In defining eligibility for a “small business,” a local agency shall, at a minimum, include businesses meeting the requirements of a small business enterprise certified pursuant to Article 1 (commencing with Section 14835) of Chapter 6.5 of Part 5.5 of Division 3 of Title 2 of the Government Code.
(c) Every local agency that offers a preference, pursuant to this section, shall, prior to offering a preference, adopt a procurement policy that includes, at a minimum, all of the following:
(1) A definition of an eligible entity for each preference category being utilized by the local agency.
(2) The percentage and maximum financial value of a single preference. (3) A requirement that a preference only be awarded to a small business that performs a commercially useful function, as defined in subdivision (e). 404
(4) A policy regarding oversight and potential fraudulent behavior on the part of a contractor, subcontractor, or individual for the purpose of qualifying as a small business and being awarded a preference.
(5) A policy for determining whether a contractor has made a good faith effort, pursuant to paragraph (3) of subdivision (a).
(6) A policy on how a prime contractor may substitute a subcontractor, pursuant to subparagraph (B) of paragraph (3) of subdivision (a). This policy shall, at a minimum, include all of the following:
(A) The identification of the condition or conditions for which a substitution of subcontractors is authorized.
(B) A requirement that construction subcontractors awarded construction subcontracts under this section shall be afforded all the protections of the Subletting and Subcontracting Fair Practices Act (Chapter 4 (commencing with Section 4100)).
(C) A requirement that a subcontractor that served to qualify the bid package for a preference shall be replaced only with a subcontractor meeting the eligibility requirements of subdivision (b).
(D) A requirement that the condition qualifying the substitution be verified with the subcontractor.
(d) Every entity used to qualify a bid for a preference pursuant to this section shall perform a commercially useful function. A “commercially useful function” means:
(1) A contractor is deemed to perform a commercially useful function if the contractor, including a subcontractor, does all of the following:
(A) Is responsible for the execution of a distinct element of the work of the contract. (B) Carries out its obligation by actually performing, managing, or supervising the work involved.
(C) Performs work that is normal for its business services and functions. (D) Is responsible, with respect to products, inventories, materials, and supplies required for the contract, for negotiating price, determining quality and quantity, ordering, installing, if applicable, and making payment.
(E) Is not further subcontracting a portion of the work that is greater than that expected to be subcontracted by normal industry practices.
405
(2) A contractor or subcontractor shall not be considered to perform a commercially useful function if the contractor's or subcontractor's role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of a small business.

406
San Pablo Municipal Code
Chapter 3.16

PURCHASING SYSTEM

3.16.010 Adoption.

In order to establish efficient procedures for the purchase of supplies, services and equipment, to secure for the city supplies, services and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure the quality of purchases, a purchasing system is adopted. (Ord. 672 § 1, 1975)

3.16.020 Purchasing officer.

The finance director is appointed the purchasing officer having general supervision of the purchasing department. The purchasing officer shall have the authority to:

A. Purchase or contract for supplies, services and equipment required by any using department in accordance with purchasing procedures prescribed by this chapter, such administrative regulations as the purchasing officer shall adopt for the internal management and operation of the purchasing department and such other rules and regulations as shall be prescribed by the city council and city manager. Notwithstanding Section 1.16.010, all contracts and purchase orders entered into pursuant to the provisions of this chapter may be authorized and signed by the purchasing officer or city manager. Any purchase or contract whose cost to the city exceeds fifty thousand dollars shall be authorized by the city council;
B. Negotiate and recommend execution of contracts for the purchase of supplies, services and equipment;
C. Act to procure for the city the needed quality in supplies, services and equipment at least expense to the city;
D. Discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases;
E. Prepare and recommend to the city council revisions and amendments to the purchasing rules; F. Keep informed of current developments in the field of purchasing, prices, market conditions and new products;
G. Prescribe and maintain such forms as reasonably necessary to the operation of this chapter and other rules and regulations;
407
H. Supervise the inspection of all supplies, services and equipment purchased to insure conformance with specifications;
I. Recommend the transfer of surplus or unused supplies and equipment between departments as needed and the sale of all supplies and equipment which cannot be used by any department or which have become unsuitable for city use;
J. Inspect supplies and equipment delivered, and contractual services performed, to determine their conformance with the specifications set forth in the order or contract. The purchasing officer shall have authority to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. (Ord. 2017-001 § 1, 2017; Ord. 2009-008 §§ 1, 2, 2009; Ord. 98-004 §§ 1, 2, 1998; Ord. 672 § 2, 1975)

3.16.030 Decentralized purchasing.

The purchasing officer may authorize any department to purchase or contract for specified supplies, services and equipment independently of the purchasing department, but he shall require that such purchases or contracts be made in conformity with the procedures established by this chapter, and may further require periodic reports from the department on the purchases and contracts made under such authorization. (Ord. 672 § 3, 1975)

3.16.040 Estimates of requirements.

All using departments shall file detailed estimates of their requirements in supplies, services and equipment in such manner, at such time, and for such future periods as the purchasing officer shall prescribe. (Ord. 672 § 4, 1975)

3.16.050 Purchases.

Purchase orders may be used for the purchase of supplies, services and equipment. If a purchase order is not used, the purchasing officer prescribes using approved invoices coded and signed by appropriate staff.” (Ord. 98-004 § 3, 1998: Ord. 672 § 5, 1975) (Ord. No. 2009-008, § 3, 11-16-09)

3.16.060 Encumbrance of funds.

Except in cases of emergency, the purchasing officer shall not issue any purchase order for supplies, services or equipment unless there exists an unencumbered appropriation in the fund account against which said purchase is to be charged. (Ord. 98-004 § 4, 1998: Ord. 672 § 6, 1975)

3.16.070 Public projects.

A. Public projects, as defined by Section 20002 of the California Public Contract Code, of forty-five thousand dollars or less may be performed by city employees by force account, by negotiated contract, or by purchase order. Public projects of one hundred seventy-five thousand dollars or less may be let to contract by informal procedures as set forth in this section. Public projects of more than one hundred seventy-five thousand dollars shall, except as otherwise provided herein, be awarded following formal bidding procedure. Notwithstanding anything to the contrary in this section, these monetary thresholds and all other procedural requirements shall be adjusted automatically so as to 408
remain in conformance with the limits and requirements set forth in Section 22032 of the Public Contract Code, as it may be amended from time to time.

B. Informal Bid Procedures for Public Contracts.

1. Contractors’ List. The public works director shall develop and maintain a list of contractors in accordance with the provisions of Public Contract Code Section 22034 and the criteria promulgated from time to time by the California Uniform Construction Cost Accounting Commission (“Commission”).

2. Notice Inviting Informal Bids.
a. If a public project subject to the provisions of this subsection is to be performed, a notice inviting informal bids shall be mailed to all contractors for the category of work to bid as shown on the list referred to above or to all construction trade journals as specified by the commission in accordance with Section 22036 of the Public Contract Code.

Additional contractors and/or construction trade journals may be notified at the discretion of the department soliciting bids; provided, however:
i. If there is no list of qualified contractors maintained by the city for the particular category of work to be performed, the notice inviting bids shall be sent only to the construction trade journals specified by the commission; and ii. If the project or service is proprietary in nature such that it can be obtained only from a certain contractor or contractors, then the notice inviting formal bids may be sent exclusively to such contractor.
b. All mailing of notices to contractors and construction trade journals pursuant to this subsection shall be completed not less than ten calendar days before bids are due. c. The notice inviting informal bids shall describe the project in general terms and how to obtain more detailed information about the project, and state the time and place for the submission of bids.
d. If all bids received are in excess of one hundred seventy-five thousand dollars, the city council may, by adoption of a resolution by a four-fifths vote, award the contract, at one hundred eighty-seven thousand five hundred dollars or less, to the lowest responsible bidder, if it determines the cost estimate was reasonable.

3. Award of Contracts. The city manager is authorized to award and execute all contracts of fifty thousand dollars or less. The city manager or designee shall make recommendations to the city council for purposes of award of all other contracts under this section.

C. Formal Bid Procedures for Public Contracts.

1. As set forth in Public Contract Code Section 22037, notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project. The notice shall be published at least fourteen calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the jurisdiction of the city; or, if there is no newspaper printed and published within the jurisdiction of the city, 409
in a newspaper of general circulation which is circulated within the jurisdiction of the city, or, if there is no newspaper which is circulated within the jurisdiction of the city, publication shall be by posting the notice in at least three places within the jurisdiction of the city as have been designated by ordinance or regulation of the city as places for the posting of its notices. The notice inviting formal bids shall also be mailed to all construction trade journals specified in Public Contract Code Section 22036. The notice shall be mailed at least thirty calendar days before the date of opening the bids.

2. In its discretion, the city may reject any bids presented, if the city, prior to rejecting all bids and declaring that the project can be more economically performed by its own employees, furnishes a written notice to an apparent low bidder. The notice shall inform the bidder of the city’s intention to reject the bid and shall be mailed at least two business days prior to the hearing at which the city intends to reject the bid. If after the first invitation of bids all bids are rejected, after reevaluating its cost estimates of the project, the city shall have the option of either of the following:
a. Abandoning the project or readvertising for bids. b. By passage of a resolution by a four-fifths vote declaring that the project can be performed more economically by the employees of the city, may have the project done by force account without further complying with this section. c. If a contract is awarded, it shall be awarded to the lowest responsible bidder. If two or more bids are the same and the lowest, the city may accept the one it chooses. d. If no bids are received through the formal or informal procedures, the project may be performed by city employees by force account, or negotiated contract without further complying with this section.

3. The city council shall adopt plans, specifications, and working details for all public projects exceeding one hundred twenty-five thousand dollars. Any person may examine the plans, specifications, or working details, or all of these, adopted by the city for any project.

D. Emergencies. In cases of emergency when repair or replacements are necessary, the city manager is delegated the authority to take any action pursuant to Chapter 2.5 (commencing with Section 22050) of the Public Contract Code. In such an emergency and notwithstanding subsection A of this section, the city manager is also delegated the authority to make a purchase or enter into a contract in an amount up to and including one hundred thousand dollars which shall be reported to the city council at its next regularly scheduled meeting. In the event of a declaration of emergency and activation of the emergency operations center pursuant to Chapter 2.36, those procedures shall apply and not be subject to the contracting authority limits in this chapter.

E. Pursuant to California Public Contract Code Section 22160 et seq., the city is authorized to use design-build contracts for public works projects as defined in Public Contract Code Section 22161 over one million dollars with an award of contract either to the low bid or the best value as defined by statute or in any other situations that may be authorized by state law. As required by Section 22162, a design professional or other consultant who under contract with the city provides assistance related to the design-build procurement, including but not limited to preparing the documents for the request for qualifications or request for proposals documents envisioned in Section 22164 shall be prohibited from participating with the design-build entity. (Ord. 2018-003 § 1, 410
2018; Ord. 2017-001 §§ 2, 3, 2017; Ord. 2015-006 § 1, 2015: Ord. 2009-008 § 4, 2009: Ord. 98-004 § 5, 1998: Ord. 672 § 7, 1995)

3.16.080 Formal bid requirements—Contracts exceeding twenty- five thousand dollars.

Except as otherwise provided in this chapter, purchases and contracts for nonpublic projects, as that term is defined in Public Contract Code Section 20002, or for supplies, services and equipment, for which the city’s expenditure exceeds twenty-five thousand dollars, shall be by written contract with the lowest responsible bidder pursuant to the procedure prescribed in this section.

A. Notice Inviting Bids. Notices inviting bids shall include a general description of the articles to be purchased, shall state where bid blanks and specifications may be secured, the location at which completed bids shall be delivered to the city, and the time and place for opening bids.

1. Reasonable Method. The purchasing officer shall solicit bids by written requests to prospective vendors, by telephone, by email or Internet inquiry, or by any other reasonable method.

2. Bidders’ List. The purchasing officer shall also solicit sealed bids from all responsible prospective suppliers whose names are on a bidders’ list or who have requested their names to be added thereto.

3. Website. The purchasing officer shall also advertise pending purchases by a notice posted on the city’s website.

B. Bidder’s Security. When deemed necessary by the purchasing officer, bidder’s security may be prescribed in the public notices inviting bids. Bidders shall be entitled to return of bid security; provided, that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the city is responsible for the delay. The city council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the city council awards the contract to the next lowest bidder, the amount of the lowest bidder’s security shall be applied by the city to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder.

C. Bid Opening Procedure. Sealed bids shall be submitted to the purchasing officer and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notice. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than thirty calendar days after the bid opening.

D. Rejection of Bids. In its discretion, the city council may reject any and all bids presented. If all bids are rejected or if no responsive bids are received, the council may readvertise for new bids, or authorize the city manager to negotiate in the open market for a contract at a reasonable price.

E. Award of Contracts. Contracts shall be awarded by the city council to the lowest responsible bidder except as otherwise provided in this chapter.

F. Tie Bids. If two or more bids received are for the same total amount or unit price, quality and service being equal and if the public interest will not permit the delay of readvertising for bids, the 411
city council may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the bid opening.

G. Performance Bonds. The city council shall have authority to require a performance bond before entering a contract in such amount as it shall find reasonably necessary to protect the best interests of the city. If the city council requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. (Ord. 2016-002 § 1, 2016; Ord. 2015-006 § 2, 2015: Ord. 2009- 008 § 5, 2009: Ord. 98-004 § 6, 1998: Ord. 84-017 § 2, 1984: Ord. 672 § 8, 1975)

3.16.090 Informal bid requirements—Contracts under twenty-five thousand dollars.

Purchases and contracts for nonpublic projects, supplies, services and equipment, for which the city’s expenditure is twenty-five thousand dollars or less, may be by written contract or purchase order with the lowest responsible bidder pursuant to the open market procedure prescribed in this section.

A. Minimum Number of Bids. Open market purchases shall, wherever possible, be based on at least three bids.

B. Notice Inviting Bids. The purchasing officer shall solicit bids by written requests to prospective vendors, by telephone, by email or Internet inquiry, or by any other reasonable method.

C. Purchases Under Five Thousand Dollars. Where an open market purchase will be less than five thousand dollars, the purchasing officer may, but need not, solicit informal bids, where in his or her judgment such a solicitation would be advantageous to the city. For those purchases where informal bids are not requested, the city manager shall adopt regulations to encourage city staff to encourage and maximize the award of such contracts to small local businesses. (Ord. 2016-002 § 2, 2016; Ord. 2010-005 § 3, 2010; Ord. 2009-008, § 6, 11-16-09; Ord. 98-004 § 7, 1998: Ord. 84-017 § 3, 1984:

Ord. 672 § 9, 1975)

3.16.100 Lowest responsible bidder and local business
preference.

A. For purposes of this chapter, “lowest responsible bidder” means that bidder which best responds in price, quality, service, fitness, or capacity to the particular requirements of the city, as recommended by the city manager or determined by the city council. Price alone shall not be the determining factor but shall be considered along with other factors including, but not limited to, the ability, capacity and skill of the bidder; whether the bidder can perform promptly, without delay or interference; the character, integrity, reputation, judgment, experience, and efficiency of the bidder; the quality of the bidder’s performance of previous city contracts or service; previous and existing compliance by the bidder with laws and ordinances relating to the contract or service; sufficiency of the financial resources and ability of the bidder to perform; quality, availability, and adaptability of the supplies or contractual service to the particular use required and conformance to specifications; ability to provide future maintenance and service; and the number and scope of conditions attached to the bid.

B. Whenever it is recommended that the bid be awarded to other than the lowest monetary bidder, reasonable notice and an opportunity to be heard shall be given to such bidder before the award is made.
412
C. Notwithstanding anything to the contrary in this chapter, and to the extent not prohibited under state or federal law, regulations, or funding restrictions, formal or informal bids for nonpublic projects, supplies, services and equipment that are made by small local businesses, as defined by this section, shall be tabulated as if five percent below the figure actually set forth in the bid for the purpose of determining the lowest responsible bidder, so long as the bids are otherwise equal in responsibility and quality. The total amount of preference granted in a single bid shall not exceed five thousand dollars. The city, when seeking bids for commodities, supplies, equipment, and nonprofessional services, will notify bidders that bids will be evaluated on the basis of a local preference of five percent of the bid price.

D. A business shall be deemed a “small local business” for the purposes of this chapter if it has a place of business (other than a post office box) within the city and has a valid, current business license issued by the city. To qualify as a small local business under this chapter, the business shall submit with its bid a completed affidavit that documents that it has a facility within the city of San Pablo and with a San Pablo address; that it will attribute sales tax from the sale to the City of San Pablo, if applicable; that the business has had a city of San Pablo business license for at least three months prior to the opening of the bid; and that it either employs fewer than fifty employees or has average annual gross receipts of two million dollars or less. A business shall qualify even though it is a franchisee of a larger chain. (Ord. 2010-005 § 2, 2010: Ord. 98-004 § 8, 1998: Ord. 672 § 10, 1975)

3.16.110 Exceptions to bid policy.

The bidding procedures may be dispensed with in the following circumstances:

A. Consultants. Contracts involving the acquisition of professional or specialized services, such as but not limited to services rendered by architects, attorneys, engineers, accountants and other classes where the city must depend upon the skill, integrity, judgment and ability of the service, are exempted from the formal and informal contracting requirements of this chapter. All such contracts shall be awarded by the city to the consultant whose proposal is evaluated to be the most responsive to the needs of the city, as determined by the city manager or, in the case of contracts exceeding fifty thousand dollars, the city council.

1. Notwithstanding any other provision of law, contracts for architectural, landscape architectural, engineering, environmental, land surveying, and construction project management services, and any other profession set forth in Government Code Section 4525, shall be on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of services required and not solely on price, pursuant to Government Code Section 4529.10, et seq.

2. Where the department head for whom such services are to be performed and the city’s purchasing officer determine that the services needed are more of a technical nature and involve little professional judgment, they may determine that requiring bids pursuant to this chapter would be in the public interest.

B. Specialized Services Combined With Equipment and/or Products. Contracts involving the acquisition and/or installation of equipment, intellectual property or other tangible products (collectively referred to as “products”) and the retention of specialized services, such as consulting, training, installing, maintaining or servicing the products, which are an integral or important part of the use, operation, or functionality of the products, are exempted from the formal and informal bidding requirements of this chapter.
413
C. Sole Source Contracts.

1. Sole source contracts shall be excepted from the formal and informal bidding requirements of this chapter. A sole source contract shall exist where the city’s requirements can be met only by a single patented article or process, or when there is only one feasible source that meets the city’s requirements.

2. Except as provided for in Public Contract Code Section 3400, specifications for contracts for the construction, alteration or repair of public works shall not be drafted in such a manner as to limit the bidding, directly or indirectly, to any one specific concern, brand or trade name.

D. Emergency. When an emergency requires the immediate procurement of supplies, equipment or services, such procurements are exempted from the formal and informal bid requirements of this chapter. For the purposes of this section, an emergency shall be deemed to exist only if:

1. There is a great public disaster; or

2. There is an immediate need to prepare for national or local defense; or

3. There is a breakdown in machinery or an essential service which requires the immediate procurement of supplies and equipment to protect the public health, welfare or safety; or

4. An essential departmental operation affecting the public health, welfare or safety would be greatly hampered if the prescribed purchase would cause an undue delay in the procurement of the needed item; or

5. The city manager determines that an emergency purchase is necessary to ensure operational efficiency and/or fiscal responsibility for the city.

In such an emergency and notwithstanding subsection A of this section, the city manager is delegated the authority to make a purchase or enter into a contract in an amount up to and including one hundred thousand dollars which shall be reported to the city council at its next regularly scheduled meeting. In the event of a declaration of emergency and activation of the emergency operations center pursuant to Chapter 2.36, those procedures shall apply and not be subject to the contracting authority limits in this chapter.

E. Cooperative Purchasing. The city may join with other government agencies for the joint purchase of equipment, materials, supplies and services. The city may also buy directly from a vendor at a price established by competitive bidding by another public jurisdiction even if the city had not joined with that public agency in a cooperative purchase. The city may also purchase from the United States of America or any state, municipality or other public corporation or agency, or through a cooperative purchasing program established by the state or the United States, without calling for bids.

F. Leases and Lease Purchases. The city may contract to lease or lease-purchase materials, vehicles and equipment without calling for bids.

G. Used Items. The city may purchase used items without calling for bids. (Ord. 2021-004 § 4, 2021; Ord. 2018-003 § 2, 2018; Ord. 2017-001 § 4, 2017; Ord. 2010-005 § 4, 2010; Ord. 98-004 § 9, 1998: Ord. 672 § 11, 1975)
414

3.16.120 Surplus supplies and equipment.

A. All using departments shall submit to the purchasing officer, at such times and in such form as he shall prescribe, reports showing all supplies and equipment which are no longer used or which have become obsolete or worn out. The purchasing officer shall have authority to exchange or trade in all such supplies, equipment and materials; to sell by public auction, sealed bid, or agreement with other public agencies; or sell by direct negotiated agreement, or on a consignment basis. In the event the purchasing officer determines that any such obsolete or surplus property has no salvage value, he may dispose of it as he deems advisable.

B. The purchasing officer shall have the authority to sign bills of sale or any other papers or documents evidencing the transfer of the title of obsolete or surplus personal property for and on behalf of the city.

C. Prior to disposing of any obsolete or surplus personal property having an apparent market value, the purchasing officer shall inform the council of the nature of the personal property proposed for disposition and the price offered, if known, and obtain the council’s approval for disposition. (Ord. 98-004 § 10, 1998: Ord. 672 § 12, 1975)
415