Hercules City Council
July 23, 2024

IMPORTANT NOTICE ABOUT PUBLIC COMMENTS AND MEETING

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

How to Participate:

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

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

Zoom Webinar ID: 856 8845 4721 Zoom Passcode: 718298
EMAIL: Public comments can also be submitted via email to [email protected]. Please note that emailed comments will not be read aloud by staff. Any public comments received up until 3:00 p.m. of the meeting date will be:

1. distributed to the Council before the meeting,

2. posted online for public inspection and

3. inserted into the meeting record.

As emails containing public meeting comments are part of the official record, note that personal contact information may be published if it is included with your email.
1 Tuesday, July 23, 2024
6:30 PM
City of Hercules
111 Civic Drive
Hercules, CA 94547
City Council
Mayor Dan Romero
Vice Mayor Dion Bailey
Council Member Alex Walker-Griffin
Council Member Chris Kelley
Council Member Tiffany Grimsley
Dante Hall, City Manager
Patrick Tang, City Attorney
Eibleis Melendez, City Clerk
Meeting Agenda
CLOSED SESSION - 6:30 P.M., REGULAR MEETING - 7:00 P.M.

In-Person in Council Chambers or to Listen only:

Zoom ID: 856 8845 4721
Zoom Passcode: 718298 Zoom Phone Number: 1-669-900-6833 2 July 23, 2024City Council Meeting Agenda
See last pages of agenda for information regarding meeting procedures To view webcast of meetings, live or on demand, go to the City's website at www.ci.hercules.ca.us I. CLOSED SESSION – CALL TO ORDER - ROLL CALL - 6:30 P.M.

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

1. 22-911

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

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

V. REPORT ON ACTION TAKEN IN CLOSED SESSION
VI. PLEDGE OF ALLEGIANCE
VII. MOMENT OF SILENCE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS
IX. AGENDA ADDITIONS/DELETIONS
X. PUBLIC COMMUNICATIONS
This time is reserved for members of the public to address issues not included in the agenda. In accordance with the Brown Act, Council will refer to staff any matters brought before them at this time, and those matters may be placed on a future agenda.

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

3 July 23, 2024City Council Meeting Agenda
XI. PUBLIC HEARINGS

1. 22-908 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.

RECOMMENDATION:

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 approve the SCIP application from D.R. Horton, dated June 27, 2024 (Attachment 3) and finding the action exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3).

Staff Report - SCIP
Attach 1 - Resolution - SCIP
Attach 1A - Resolution of Intention
Attach 1B - Acquisition Agreement
Attach 1C - Eligible Facilities & Fees
Attach 1D - Eligible Services
Attach 2 - Resolution - SCIP 24-01 - Owl Ranch
Attach 3 - DR Horton SCIP Application 6.27.24
Attach 4 - Supplemental Memo 5.9.24
Attachments:

4 July 23, 2024City Council Meeting Agenda

2. 22-925 Fiscal Year 2024/25 Assessment Rates and Service Levels for Victoria by the Bay Landscaping and Lighting Assessment District (Continued from the June 25 Council Meeting)
RECOMMENDATION:

It is recommended the City Council:
a.

Hold a Public Hearing to receive testimony regarding the proposed increase to the maximum assessment rate for the City of Hercules Landscaping and Lighting Assessment District No. 2002-1 (Victoria by the Bay LLAD) commencing with FY 2024/25;
b. Adopt a Resolution Declaring the Results of the Ballot Tabulation Regarding the Proposed Increase to the Maximum Assessment Rate for the Victoria by the Bay LLAD commencing Fiscal Year 2024/25; c. Adopt a Resolution Approving the Final Engineer’s Report, Confirming Diagram and Assessments, and Ordering Levy of Assessments for Fiscal Year 2024/25 for the Victoria by the Bay LLAD pursuant to the Landscaping and Lighting Act of 1972;
d. Provide direction to City Staff on the timing of Service Level Reductions for the Residential Parkway Strips in the Victoria by the Bay LLAD, which Staff recommends occur on September 1, 2024; and
e. Review and provide direction to Staff on a Draft Promissory Note outlining terms for repayment of the Victoria by the Bay LLAD cumulative fund deficit.

Staff Report - FY 2024-25 VBTB
Attach 1 - July 24, 2024 L2202-1 Staff Report
Attach 2 - Resolution Declaring Results of The Protest Balloting 2002-1 Attach 3 - Resolution Confirming Diagram and Assessments 2002-1 Attach 4 - L2002-1-2425 FER (Prop 218 Not Pass & Service Cuts) Continued PHv2 Attach 5 - Promissory Note LLAD No. 2002-1 Victoria by the Bay Attachments:

XII. CONSENT CALENDAR

1. 22-922 Meeting Minutes for the Regular Meeting of July 9, 2024 Meeting Minutes for the Regular Meeting of July 9, 2024Attachments:

5 July 23, 2024City Council Meeting Agenda

2. 22-923 Annual Fiber Optic Broadband Report
RECOMMENDATION:

Receive Report.

Staff Report - Fiber Optic Annual Report 202425Attachments:

3. 22-929 Approve Pay and Benefit Plans for Executive, Mid-Management & Non-Represented Pay Plans
RECOMMENDATION:

Staff recommends that the City Council Adopt a Resolution Approving Pay and Benefit Plans for Executive, Mid-Management, and Non-Represented Employee Groups and authorize the City Manager to execute the Plans for a one-year term starting July 1, 2024, and ending June 30, 2025.

Staff Report - Pay Plans - Executive-MidMgmt & Unrep
Attach 1 - Resolution Approving Pay and Benefit Plans FY 24-25 Attach 2 - Executive Pay and Benefit Plan Proposed effective 07012024 Attach 3 - Mid Management-Pay and Benefit Plan-Proposed effective 07012024 Attach 4 - Unrepresented Pay and Benefit Plan Proposed effective 07012024 Attachments:

4. 22-924 Quarterly Review of Future Agenda Items List
RECOMMENDATION:

Staff recommends that the City Council receive the staff report on the quarterly review of future City Council agenda items.

Staff Report - Quarterly Review of Future Agenda Items
Attach 1 - Future Agenda Items List
Attachments:

XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-926 Proposal to Administer the Housing Successor Agency Housing Loan Program and Business Development Loan Program.

RECOMMENDATION:

Adopt a Resolution authorizing the City Manager to execute a $113,000 professional service agreement with RSG to develop and implement a plan to restructure the non-performing loans, including borrower negotiations and amending loan agreements.

Staff Report - Housing Successor Loan
Attach 1 - Resolution
Attach 2 - RSG Loan Program Administration Proposal
Attachments:

6 July 23, 2024City Council Meeting Agenda

2. 22-927 Approval of Final Hercules Logo Design
RECOMMENDATION:

Staff recommends that the City Council adopt a resolution approving the final version of the Hercules logo. Upon adoption, Tripepi Smith will generate a logo library of derivative versions, including horizontal, 1-color, and simplified versions for various uses.

Staff Report - Approval of Hercules Final Logo Design
Attach 1 - Resolution
Attach 2 - Proposed Logo Design
Attachments:

3. 22-928 Approval Of East Bay Wildfire Prevention Coordinating Group Memorandum of Understanding
RECOMMENDATION:

Staff recommends that the City Council:

1. Adopt a resolution authorizing the City of Hercules to enter into a Memorandum of Understanding (MOU) with other jurisdictions in Alameda and Contra Costa Counties to form a Wildfire Prevention Coordinating Group (WPCG) to improve region-wide collaboration to reduce wildfire risk.

2. Appoint a member of the City Council to serve on the Wildfire Prevention Coordinating Group (WCPG) as the elected official representing the City of Hercules
Staff Report - Wildfire Prevention MOU
Attach 1 - Resolution
Attach 2 - East Bay Hills Wildfire Coordination MOU
Attach 3 - East Bay Wildfire Prevention -NeedsToBeAddressed -RelatedEfforts Presentation - Wildfire Protection Coordinating Group MOU Attachments:

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

7 July 23, 2024City Council Meeting Agenda
XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

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

1. Regional Committee

2. City Council Committees and Subcommittees

3. Commission Liaisons
XVI. ADJOURNMENT
The next Regular Meeting of the City Council will be held on Tuesday, September 10, 2024 at 7:00p.m. in the Council Chambers.

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

Members of the public can view electronic agendas and staff reports by accessing the City website at www.ci.hercules.ca.us and can receive e-mail notification of agenda and staff report postings by signing up to receive an e-notice from the City’s homepage. Agendas and staff reports may also be obtained by contacting the City Clerk at (510) 799-8200 (Posted: July 18, 2024)

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

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

8 July 23, 2024City Council Meeting Agenda
How to Submit Public Comments
In Person: Attend meeting at the Hercules City Council Chambers, fill out a public speaker card located on the side table and submit it to the City Clerk.

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

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

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

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

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

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

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

Video Streamed Live on the City’s Website:

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

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

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

2. Locate the desired meeting and date.

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

Video = Video is available for on demand viewing.

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

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

9 July 23, 2024City Council Meeting Agenda

THE HERCULES CITY COUNCIL ADHERES TO THE FOLLOWING POLICIES,

PROCEDURES AND REGULATIONS REGARDING CITY COUNCIL MEETINGS

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

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

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

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

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

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

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

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

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

10 P

UBLIC HEARINGS

AGENDA ITEMS

1. 22-908

2. 22-925
11 1

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of July 23, 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 fi nding 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 approve the SCIP application from D.R. Horto n, dated June 27 , 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 C ommunity Infrastructure Program (SCIP).
22-908
12 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 boundaries, 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 residential 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 developme nt-related fees that would 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.
13 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 pro jects 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 off the assessments or special taxes at any time.
14 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 development 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 owner s of property 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 boundaries, 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 15 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. Similar 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 (Attachment 3) dated June 27, 2024 has been received from D.R. Horton , requesting approval to utilize SCIP to finance up to $500,000 of the $783,276 total of eligible development impact fees and improvements for the Owl Ranch residential development, as shown below:

ELIGIBLE 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

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ELIGIBLE IMPROVEMENTS:

Description Local Agency Acquiring
Improvements
Amount
Skelly Road – Bulb Out City of Hercules $50,750

As indicated in the application, the SCIP district would include the 38 market-rate homes at Owl Ranch; the two below market-rate homes would not be subject to the assessment.

A May 9, 2024 memo from D.R. Horton’s SCIP consultant to CSCDA, provided to staff by D.R. Horton o n June 2 5, 2024 (Attachment 4) indicates that t he SCIP special tax to finance the $500,000 in fees and improvements is estimated to be about $1,475 annually per participating unit, assuming an interest rate on the bonds of 5.5%. Combined with the baseline property tax burden of 1.47%, the SCIP assessment would bring the total annual property tax rate for the average home in Owl Ranch to an estimated 1.65%. Thus, for the anticipated average sales price of $826,184, a homeowner’s estimated total annual property tax bill including the SCIP special tax would be about $13,632.

Community Benefits
On June 25, 2024, D.R. Horton indicated to staff their willingness to provide community benefits i n consideration of the Owl Ranch SCIP application . P rior to the first home occupancy, D.R. Horton is willing to provide a $40,000 voluntary payment to the City for community benefit items to be utilized at the City’s discretion . The attached resolution reflects this voluntary payment.

ENVIRONMENTAL DETERMINATION
The propos ed 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 a dministrative 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 provided 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.

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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:

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 dated June 27, 2024 Attach 4 – Supplemental Memo dated May 9, 2024

18 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, 19 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
20 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 included 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
21 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 conducted 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 conduct 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 Participating 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 Mello Roos Act) between the City and the A uthority. Adoption by the Commission of the Authority 22 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 Local 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 properties 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 23 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 referred 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 joint 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 expected 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 related 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 24 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 each 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 Local 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 in 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 to 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 Agency’s respective 25 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 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.

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 supervision, or under the authority of, the C ity. 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 compliance 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 26 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 City 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 27 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 compliance 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 Assessment 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 conferred 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 23rd day of July 2024 by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dan Romero, Mayor
ATTEST:

Eibleis Melendez
City Clerk
28 Attachment 1A: Resolution of Intention (ROI)
Attachment 1B: Acquisition Agreement
Attachment 1C: Eligible Facilities & Fees
Attachment 1D: Eligible Services
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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.
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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.
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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
32 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]
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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__

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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 35 B-3
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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.
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“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 37 B-5
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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. 38 B-6
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(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 39 B-7
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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. 40 B-8
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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. 41 B-9
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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 42 B-10
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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.
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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]

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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

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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.
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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:

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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 48 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.
49 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. 50 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.

51 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 R esolution 17-039 immediately preceding on July 23 , 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 a portion of 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 dated June 27, 2024 , thereby allowing its submittal to the California Statewide Communities Development Authority (CSCDA).
52 Section 2. In consideration of the Owl Ranch SCIP application , p rior to the first home occupancy, D.R. Horton Bay, Inc. shall provide a $40,000 voluntary payment to the City for community benefit items to be utilized at the City’s discretion.

Section 3. 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 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 tha t there is no possibility that the action will result in either a direct physical change to th e environment or a reasonably foreseeable indirect physical change to the environment. Further, none of the circumstances described in CEQA Guidelines § 15300.2 a pplies. 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 23rd day of July 2024 by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

Dan Romero, Mayor

ATTEST:

Eibleis Melendez
City Clerk

53 Friday, March 29, 2024
SCIP Application and Landowner
Information
Name of City/County Agency:

City of Hercules
City/County Contact:

Dante Hall
SCIP Application and
Landowner Information
Form
Project Information
Name of Applicant:

D.R. Horton (Bay Area Division)
Project Name:

Owl Ranch
Project Proceeds Requested:
$500,000 (Not to Exceed)
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 54
Has the City or County in which the project is
located been contacted? If so, please provide
appropriate contact information below.

Yes
2 55
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 56
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 57
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 58
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 59
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
60 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 61
N/A
Has construction financing been obtained?
No
9 62
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 63
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 64

Memorandum
To:  James Hamill, CSCDA
From:  DPFG
Date:  May 9, 2024
Subject:  Owl Ranch Subdivision (City of Hercules) – SCIP Financing Plan for 2024C James,
Per  the  request  of  D.R.  Horton  (“Developer”), we  have  prepared  this  memo  to  provide  background information  and  discuss  a  proposal  for  the  formation  of  an  Community  Facility  District  through  the California  Statewide  Communities  Development  Authority  (“CSCDA”)  and  the  Statewide  Community Infrastructure  Program  (“SCIP”)  for  the  Owl  Ranch  Subdivision  (“Project”)  within  th e   City  of  Hercules (“City”).

The City is currently a participating member of SCIP with authorizations to form assessment districts only.

In  2017,  the  City  updated  their  SCIP  resolution  to  require  City  Council  approval  for  any  future  SCIP applications. Once a SCIP application has been formally approved by City Council, the balance of remaining actions related to the District formatio
n and subsequent bond issuance would remain delegated to the City Manager.

The  Developer  would  also  like  to  seek  the  West  Contra  Costa  Transportation  Advisory  Committee’s cooperation  with  CSCDA  and  SCIP  in  order  to  potentially  finance  the  West  County  Sub‐Regional Transportation Mitiga tion  Fee.

The Developer would like to submit a SCIP application for the Project to participate in the 2024C SCIP Series which begins in August 2024 and closes bonds in December 2024. The anticipated 2024C SCIP Series application and bond issuance schedule is shown below:

SCIP Series  2024C Series
Applications Due  August 1, 2024
Prepare Preliminary Engineer's Report  August ‐ September 2024 Resolution of Intention to Form AD  September 19, 2024
Hold Public Hearing to Form AD  November 7, 2024
Sell Bonds  November 26, 2024
Close Bonds  December 18, 2024
Project Details:

The Project is planned for the development of 40 single‐family residential lots on the approximately 7.3 acre site at 215 Skelly Road.  A preliminary site plan is attached to this memo for reference.  Lot 19 and Lot 29 will be excluded from the SCIP financing district as they have been design ated  as deed restricted 65 affordable housing.  For the purposes of the SCIP financing proposal, only 38 residential units will be considered in the remainder of this memo.

The Project’s final map was approved by the City on November 14, 2023.  Land development is currently underway  with  underground  storm  and  sewer  improvements  completed.   Water  improvements  are antici
pated to begin in May 2024 and paving to begin in September 2024.

The Developer anticipates that the building permits for model homes will be issued in August 2024.  Sales for homes will begin in December 2024 with the first anticipated home closing expected in February 2025.

The Developer plans to offer three differ ent house plans between 1,582 to 2,311 square feet.  The average overall average sales price is estimated to be $826,184.  See table below for anticipated house plan, unit counts, and anticipated sales pricing assumptions.

Plan  Sq. Ft.  Units  Est. Sales Price
Plan 1583  1,582   13   $             765,000
Plan 1874  1,856   15   $             830,000
Plan 2311  2,311   10   $             900,000
Total/Avg.  1,867   38   $             826,184
DPFG  has  prepared  a  preliminary  total  tax  rate  analysis  for  the  Project  based  on  the  Developer’s anticipated sales price information for the 2023/24 fiscal year.  The Project’s baseline total rate burden as a percentage of anticipated sales pricing is currently 1.47% before the addition of a potential SCIP CFD.

The Developer would propose a SCIP Special Tax of a pproximately $1,475 per residential unit which would bring the Project’s average tax burden up to a 1.65%. Please see Exhibit A for a summary of the Project’s anticipated ad‐valorem, special taxes, and assessments.

Summary of SCIP Community Facilities District Formation Deal Points:

1. In order to facilitate the financing and construction of public improvements necessary to serve the Project, we would propose the formation of a SCIP CFD to finance City and local jurisdiction development  impact  fees  as  well  as  certain  offsite  improvements.  A  list  of  potentially  eligible impact fees and infrastructure amounts may be reviewed in the table below:

Po
tential Impact Fees for SCIP Financing  Agency  Fee per Unit  Total Fee Park and Recreation Facilities  City   $                 1,705    $               64,790 Transportation Facilities  City   $                 5,977    $             227,126 Sewer Facilities  City   $                 4,679    $             177,802 West County Sub‐Regional Transportation Mitigation Fee  WCCTAC   $                 6,916    $            262,808 Total Potential Fees for SCIP Financing     $               19,277    $             732,526

Potential Improvements for SCIP Financing  Agency   Cost per Unit     Total Cost Skelly Road ‐ Bulb Out  City   $                 1,336    $               50,750 Total Potential Improvements for SCIP Financing     $                 1,336    $                50,750 Total Potential SCIP Financing       $              20,613    $             783,276 *The West County Sub‐Regional Transportation Mitigation Fee is collected on behalf of the West Contra Costa Transportation Advisory Committee (WCCTAC) and may require additional agency approval for SCIP financing. 66 2. The Developer would like to use SCIP to finance the public improvements and fees listed in the table above at approximately $13,158 per unit or $500,00 in total.

3. The SCIP Special Tax necessary to finance the amounts noted above, is estimated to be $1,475 per residential unit.  See Exhibit B for an analysis of the Project’s SCI P financing potential.

4. The  bonding  capacity  for  the  Project  is  estimated  to  yield  $500,000  in  net  proceeds.  The preliminary bond sizing analysis is described in further detail in Exhibit B.

5. The  proposed  annual  special  tax,  when  combined  with  all  other  proper ty   taxes,  has  been estimated at an average of 1.65%.

6. Lot 19 and Lot 29 will be excluded from the boundaries of the proposed SCIP Community Facility District.

7. For modeling purposes, it was assumed that the annual special tax levied on developer property will escalate at 2% per year, the in terest rate on the bonds was assumed at 5.50%, and net of estimates  for  priority  admin,  underwriter  discount,  reserve  funds,  capitalized  interest,  and incidental expenses.

8. The actual amount of the SCIP bonds to be issued is expected to be a function of the project’s special tax revenue and app raised  value. The bonds would be anticipated to be issued when the value‐to‐lien ratio is met for the Project, consistent with goals and policies and timing the sale of bonds to occur in the next pooled issuance.

9. Developer  and  DPFG  are  prepared  to  work  with  the  SCIP  consultant  team  and  the  City  as expeditiously  as  practicabl
e  in  order  for  the  Project’s  SCIP  application  to  be  approved  by  City Council.
67 Land Use Information
Plan [1] Plan 1583 Plan 1874 Plan 2311 Total/Average
Number of Units [1] 13 15 10 38
Unit Square Footage [1] 1,582 1,856 2,311 1,882
Garage Square Footage [1] 400 400 400 400
Estimated Sales Price [1] 765,000 $       830,000 $       900,000 $       826,184 Ad‐Valorem Property Taxes (2023/24) [2] Rate
1% COUNTYWIDE TAX 1.0000% 7,650 $           8,300 $           9,000 $           8,262$ BART 0.0048% 37 $                 40 $                 43 $                 40 BART BOND 2016 0.0086% 66 $                 71 $                 77 $                 71 EAST BAY REG PK BD 0.0057% 44 $                 47 $                 51 $                 47 WEST CC UNIF BD 98 0.0000% ‐$           ‐$           ‐$           ‐ WCC UNIF BOND 2000 0.0118% 90 $                 98 $                106 $               97 WCCUSD 2002 BOND 0.0548%
419 $               455 $               493 $               453 WCC UNIF BOND 2005 0.0636% 487 $               528 $               572 $               525 WCCUSD 2010 BOND 0.0348% 266 $               289 $               313 $               288 WCCUSD 2012 BOND 0.0284% 217 $               236 $               256 $               235 WCCUSD 2020 BOND 0.0530% 405 $               440 $               477 $               438 COMM COLL 2002 BND 0.0027% 21 $                 22 $                 24 $                 22 COMM COLL 2006 BND 0.0043% 33 $                 36 $                 39 $                 36 COMM COLL 2014 BND 0.0076% 58 $                 63 $                 68 $                 63 Total Ad‐Valorem Property Taxes 1.2801% 9,793 $           10,625 $         11,521 $         10,576$ Special Taxes and Assessments (2023/24)
West Contra Costa Unified School District Assessment (Measure T) [3] 114 $               134 $               166 $               136$ Contra Costa County Mosquito Abatement District [4] 3 $                    3 $                    3 $                    3$ Contra Costa County Emergency Medical Services ‐ Parcel Tax (Zone B) [5] 10 $                 10 $                 10 $                 10$ City of Hercules ‐ Sewer Service Charge [6] 626$               626 $               626 $               626$ Contra Costa County Flood Control and Water Conservation District – Stormwater No. 6 [7] 35 $                 35 $                 35 $                 35$ West Contra Costa Unified School District Assessment (Measure E) [8] 72 $                 72 $                 72 $                 72$ East Bay Regional Park District ‐ Landscape & Lighting District [9] 5 $                    5$                    5 $                    5$ West Contra Costa Health Care District ‐ Parcel Tax [10] 52 $                 52 $                 52 $                 52$ San Francisco Bay Restoration Authority – Measure AA [11] 12 $                 12 $                 12 $                 12$ City of Hercules Landscape & Lighting Assessment District No. 83‐2 (Neighborhood Zone 1) [12] 143 $               143 $               143 $               143$ City of Hercules Landscape & Lighting Assessment District No. 83‐2 (District‐Wide Parks ‐ Zone 10) [13] 150 $               150 $               150 $               150$ Rodeo – Hercules Fire Protection District – Parcel Tax (Measure O) [14] 245 $               245 $               245 $               245$ Rodeo – Hercules Fire Protection District ‐ Fire Suppression Assessment [15] 111 $               111 $               111 $               111$ Total Special Taxes and Assessments 1,577 $           1,597 $           1,630 $           1,599$ Baseline Tax Burden Before the Addition of SCIP Assessment Baseline Total Tax Burden (Excluding SCIP) 11,370 $         12,222 $         13,151 $         12,175$ Baseline Tax Burden as % of Assessed Value 1.49% 1.47% 1.46% 1.47% Potential SCIP Special Tax (See Attached SCIP Financing Analysis) 1,475 $           1,475 $           1,475 $           1,475$ Total Tax Burden (Including SCIP Special Tax) 12,845 $         13,697 $         14,626 $         13,650$ Tax Burden as % of Assessed Value (Including SCIP Special Tax) 1.68% 1.65% 1.63% 1.65% [6] Represents the projected Fiscal Year 2023‐2024 annual assessment of $625.80 of the City of Hercules ‐ Service Charge to pay for sewer service charges.

Exhibit A
[12] Represents the projected Fiscal Year 2023‐2024 annual assessment of $142.52 of the City of Hercules Landscape & Lighting Assessment District No. 83‐2 (Neighborhood Zone 1) to pay for Street lighting maintenance, landscape maintenance, Railroad Park and Beechnut Park maintenance, weed control and planted median and slope maintenance, backflow prevention system inspection, irrigation water expenses, unscheduled landscape work, graffiti abatement, weed abatement, and miscellaneous open space cleanup Neighborhood Zone 1 pro‐rata share of Citywide Arterial Roadway landscape and lighting maintenance. This amount is subject to increase annually by the CPI for the San Francisco Bay Region All Urban Consumers Index. [13] Represents the projected Fiscal Year 2023‐2024 annual assessment of $149.50 of the City of Hercules Landscape & Lighting Assessment District No. 83‐2 (District‐Wide Parks ‐ Zone 10) to pay for park maintenance services. This amount is subject to increase annually by the CPI for the San Francisco Bay Region All Urban Consumers Index. [14] Represents the projected Fiscal Year 2023‐24 annual assessment of $245.00 of the Rodeo – Hercules Fire Protection District – Parcel Tax (Measure O) to pay for fire protection and emergency services. This amount is subject to increase annually by the lesser of 3% or the annual change in the CPI for All Consumers for the San Francisco‐Oakland‐San Jose area as published by the U.S. Department of Labor.
[15] Represents the projected Fiscal Year 2022‐2023 annual assessment of $111.00 of the Rodeo – Hercules Fire Protection District – Fire Suppression Assessment to pay for fire protection and emergency response services, including, but not limited to, obtaining, furnishing, operating, and maintaining fire suppression, protection and emergency services equipment and apparatus; paying salaries, benefits and other compensation for firefighting and fire prevention personnel; training and administration of personnel performing said fire suppression, protection and emergency services; community fire prevention education and fire inspection. [7] Represents the projected Fiscal Year 2023‐2024 annual assessment of $35.00 of the City of Hercules Storm Drain Charge to pay the costs administering, monitoring, operating, maintaining and improving the storm sewer system throughout the City of Hercules. [8] Represents the projected Fiscal Year 2023‐2024 annual assessment of $72.00 of the West Contra Costa Unified School District Assessment (Measure E) to pay for various school programs and services in the district.
[9] Represents the projected Fiscal Year 2023‐2024 annual assessment of $5.44 of the East Bay Regional Park District ‐ Landscape & Lighting District to pay for pay for the operation, maintenance, and servicing of trails in the district.
[10] Represents the projected Fiscal Year 2023‐2024 annual assessment of $52.00 of the West Contra Costa Health Care District ‐ Parcel Tax to pay for emergency room medical services in West Contra Costa County.
[11] Represents the projected Fiscal Year 2023‐24 annual assessment of $12.00 of San Francisco Bay Restoration Authority to pay for clean water, pollution prevention and habitat restoration [5] Represents the projected Fiscal Year 2023‐2024 annual assessment of $10.00 of the Contra Costa Emergency Medical Services Parcel Tax (Zone B) to pay for increased paramedic service, medical training, equipment, supplies for fire service, and upgrades to the County radio system.

D.R. Horton
Owl Ranch (City of Hercules)
Annual Special Taxes and Assessments for Final Map (Developed) Property 2023/24 Fiscal Year
[1] Average unit square footage and estimated sales pricing based on information provided by Developer.

Total Tax Rate Analysis
[2] Tax rates are based on information provided by Contra Costa County's Treasurer‐Tax Collector for FY 2023/24. [3] Represents the projected Fiscal Year 2023‐2024 annual tax of the West Contra Costa Unified School District Parcel Tax (Measure T) to pay for various school programs and services in the district. The tax is currently calculated at $0.072 per livable square foot of building area. [4] Represents the projected Fiscal Year 2023‐2024 annual assessment of $3.12 of the County of Contra Costa Mosquito Abatement District to pay for mosquito abatement and control Prepared by DPFG 5/9/2024
68 Other Fixed
Charges,
Est. Estimated Ad Assessment Proposed Total Total   Total Home  Base Valorem and  Special Tax  per Tax per Tax Proposed Plan Units  (1) Size  (1) Price  (1) Tax  Rate  Taxes  Unit  Unit Rate Revenues

1.2801%
Total Proposed Annual Revenue  56,050$
Plan 1583 13 1,582 765,00 0$     9,793 $      1,577 $           1,475 $      12,845 $     1.68% 19,175 $      Less Priority Admin 46,050 Plan 1874 15 1,856 830,00 0$     10,625 $    1,597 $           1,475 $      13,697 $     1.65% 22,125 $ Plan 2311 10 2,311 900,00 0$     11,521 $    1,630$           1,475 $      14,626$     1.63% 14,75 0$      Gross Bond Amount (30 Year Term, 29 Year Amortization) 715,000
Reserve Fund (125% of Avg. Annual Debt Service) (67,482) Capitalized Interest (9 months) (29,477)
Underwriter Discount @ 2.25%: (17,875)
Legal Services and Issuer Costs (3.00%) (21,450)
Additional Cost of Issuance (Estimate) (78,717)
Net Construction Proceeds 500,000$
Total 38 1,882 826,184 $     10,576 $    1,599 $           1,475 $      13,650 $    1.65% 56,050$      Net Construction Proceeds (Per Unit) 13,158$ Footnotes:

Exhibit B
[1] Provided by Developer
D.R. Horton
Owl Ranch (City of Hercules)
SCIP CFD Capacity Analysis
May 9, 2024
LAND USE INFORMATION TOTAL TAX RATE ANALYSIS CFD FINANCING ANALYSIS

5.50% Bond Interest Rates
Prepared by DPFG 5/9/2024
69 TYPEWIDTH HEIGHT
TYPE
WIDTH
HEIGHT
TYPE
WIDTH
HEIGHT
TYPE
WIDTH
HEIGHT

TYPE WIDTHHEIGHT

TYPE WIDTHHEIGHT
TYPE
WIDTH
HEIGHT
TYPE
WIDTH
HEIGHT

TYPE WIDTHHEIGHT

TYPEWIDTH HEIGHT
14 12
6 4
37 35
29 25
33 3
1 26
23211817
38 7
15 11
10 9
2 PEARCE ROAD
ROSTI
32 31
13 36
5 24
19 2016
27 34
8 22
28 30
SKELLY

CONTRA COSTA COUNTY FCD & WCD
PAVON
39 40

PARCEL D

PARCEL E

PARCEL G

PARCEL F

PARCEL A

PARCEL B

PARCEL C

BIORETENTION

CONNECTION

TO BAY TRAIL
SKELLY McLEODSKELLY @ BULBOUT
21 3 42 121 3 42
1 1 3 322 1

PRODUCT MIX
# OF LOTS % OF TOTALPLAN #
MINIMUM SETBACK REQUIREMENTS:

F:\3204\ACAD\EXHIBITS\XB - REVISED DEVELOPMENT PLAN.DWG

VESTING TENTATIVE MAP
OWL RANCH - SUBDIVISION 9606

CITY OF HERCULES CONTRA COSTA COUNTY CALIFORNIA SCALE: 1" = 40'REVISED: AUGUST 2023
12080400 CIVIL ENGINEERS SURVEYORS PLANNERS

SAN RAMON
WWW.CBANDG.COM

ROSEVILLE
(925) 866-0322
(916) 788-4456

REVISED DEVELOPMENT PLANEMERGENCY VEHICLE

TURNING TEMPLATE

LAND USE TABLE
PARCEL DESCRIPTION AREA (AC)% of TOTAL

LANDSCAPE AREA SUMMARY

DESCRIPTION AREA (SF) AREA (AC)
70 PUBLIC HEARINGS

AGENDA ITEM

2. 22-925

71 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of July 23, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Mike Roberts, Public Works Director/City Engineer SUBJECT: Fiscal Year 2024/25 Assessment Rates and Service Levels for Victoria by the Bay Landscaping and Lighting Assessment District (Continued from the June 25 Council Meeting)
RECOMMENDED ACTION:

It is recommended the City Council:
a. Hold a Public Hearing to receive testimony regarding the proposed increase to the maximum assessment rate for the City of Hercules Landscaping and Lighting Assessment District No. 2002 -1 (Victoria by the Bay LLAD) commencing with FY 2024/25;
b. Adopt a Resolution Declaring the Results of the Ballot Tabulation Regarding the Proposed Increase to the Maximum Assessment Rate for the Victoria by the Bay LLAD commencing Fiscal Year 2024/25;
c. Adopt a Resolution Approving the Final Engineer’s Report, Confirming Diagram and Assessments , and Ordering Levy of Assessments for F iscal Year 2024/25 for the Victoria by the Bay LLAD pursuant to the Landscaping and Lighting Act of 1972;
d. Provide direction to City Staff on the timing of Service Level Reductions for the Residential Parkway Strips in the Victoria by the Bay LLAD, which Staff recommends occur on September 1, 2024; and
e. Review and provide direction to Staff on a Draft Promissory Note outlining terms for repayment of the Victoria by the Bay LLAD cumulative fund deficit. 22-925
72 BACKGROUND:

This agenda item is a continuation from the June 25, 2024 City Council meeting. As such, past events and information regarding the financial status of the Victoria by the Bay LLAD and proposed assessment increase leading up to the June 25 meeting are covered in detail in the staff report of the same (Attachment #1).

In brief, on May 8, 2024, notices and ballots regarding a proposed assessment increase to cure a structural deficit for Victoria by the Bay LLAD were mailed to all affected property owners in accordance with Proposition 218 . The instructions included ballots had to be returned by mail by 5:00 PM on June 25, 2024, or in person by the conclusion of public testimony of the Public Hearing to be held that night at the City Council meeting.

Immediately following the public hearing on June 25 , the returned ballots were publicly tabulated outside the City Council Chambers. Property owners voted 70.7% not in favor of increasing their maximum assessment rates. Given the proposed assessment increase for Fiscal Year 2024/25 can only go into effect if a majority of the weighted ballots returned support the increase, the increase cannot be implemented.

Curing the structural deficit the District is experiencing will require other means.

ANALYSIS:

At the March 26, 2024 City Council meeting, the City Council selected by minute order service cuts per the excerpt below as the alternative means to cure the structural deficit should the assessment increase fail:

“the cessation of irrigation and maintenance of the landscaping on residential streets, excepting trees, as the preferred cost -cutting option to balance the budget and eliminate the deficit over a 10-year period, should the Proposition 218 proceedings to increase the assessments not pass, and authorize(d) staff to communicate the same to property owners in advance of said proceedings.”

In addition to this minute order, City Council added the caveat that said service cuts could occur only at the time directed by the City Council.

In accordance with th e Council-provided authorization, language on the cost-cutting measures were included in both the notice to the property owners and the ballot itself to provide clarity and transparency on what would occur if the assessment increase was not approved, in contrast to the prior Proposition 218 effort last Fall which included no such measures.

73 Excerpt from Proposition 218 Notice

Excerpt from Proposition 218 Ballot

Given the results from the ballot tabulation conducted on June 25, 2024 confirmed that Victoria by the Bay LLAD property owners did not approve the proposed increase to their assessments by a 70.7% to 29.3% margin, staff is seeking direction from City Council on when to implement the service cuts.

With the severity of the District’s structural deficit in mind – which is estimated to be $449K beginning FY 2024 -2025 and to increase $14K each subsequent month – staff is recommending the service cuts occur as soon as is reasona bly possible. This would include time for a transition to occur to allow for:

 Notification to property owners of the pending service cuts via a mailed postcard.  Negotiating a modified scope of work with the City’s landscape contractor.  Notifying the HOAs of their obligations under the original Development Agreement per the Condition of Approval below, then entering into dialogue on the viability of the HOAs assuming maintenance responsibility of the residential parkway strips.

74 Taking into account the time needed for this transition to occur, staff is recommending the service cuts be implemented starting September 1, 2024.

To levy assessments for Victoria by the Bay in FY 2024/25, City Council is required to approve the attached Victoria by the Bay LLAD Engineer’s Report and adopt the resolution confirming the Victoria by the Bay LLAD assessments , which staff is recommending be increased by the change in the applicable Consumer Price Index (CPI), the maximum legally permissible . The applicable change in the CPI for Fiscal Year 2024/25 is 2.37%, which equates to an assessment of $617.03 per single -family home for Fiscal Year 2024/25 , versus $602.76 for Fiscal Year 2023/24, as outlined in the attached Engineer’s Report.

The Vict oria by the Bay LLAD budget within the attached Final Engineer’s Report (Attachment #4) reflects the estimated cost reductions from the Draft Engineer’s report approved in March in water, landscaping and City personnel in the amount of $114,223, $98,994, a nd $16,783 respectively, which would be attributed to the elimination of services to the residential parkway strips, excepting trees. This budget represents a full fiscal year commencing July 1, 2024 to be consistent with the Engineer’s Reports for the 4 other Districts and based upon current projections the aforementioned savings associated with the service cuts will cure the operating deficit and allow the fund deficit to be eliminated within 10 years. Once the service cuts have been implemented, the Cit y’s budget will be modified to reflect the change in staffing costs. Staff also intends to bring a promissory note to City Council for approval when the final fund deficit is known . The promissory note will outline the terms for repayment for the loan from the General Fund to the District that is now occurring to cover the fund deficit. The Draft Promissory Note is included as Attachment #5.

FISCAL IMPACT:

Implementing the recommended service cuts will reduce annual expenditures to allow the Victoria by the Bay LLAD cumulative fund deficit to be paid off in 10 years. If service cuts are not implemented, the Victoria by the Bay LLAD fund deficit is estimated to increase by $42k per quarter.

ATTACHMENTS:

1. June 25, 2024 Staff Report

2. Resolution Declaring the Results of the Property Owner Protest Balloting Proceedings for LLAD No. 2002-1 (Victoria by the Bay LLAD)

3. Resolution Confirming Diagrams and FY 2024/25 Assessments for LLAD No. 2002-1 (Victoria by the Bay LLAD)

4. FY 2024/25 Final Engineer’s Reports for LLAD No. 2002-1 (Victoria by the Bay)

75 5. Promissory Note for repayment of the Victoria by the Bay LLAD cumulative fund deficit.
76 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: Mike Roberts, Public Works Director/City Engineer SUBJECT: Landscaping and Lighting Assessment District s (LLADs) – Hold Public Hearing s for the City’s Five LLADs , Hold Public Hearing regarding Proposed Assessment Increase for the Victoria by the Bay LLAD, and Adopt Resolutions Confirming Diagrams and
Assessments for the City’s five LLADs for Fiscal Year 2024/25 RECOMMENDED ACTION:

City staff is recommending City Council take the following actions:

1) Hold a Public Hearing and Adopt a Resolution Confirming Diagram and Assessments and Ordering Levy of Assessments for Fiscal Year (FY) 2024/25 for the City of Hercules Landscaping and Lighting Assessment District No. 83 -2 pursuant to the Landscaping and Lighting Act of 1972;

2) Hold a Public Hearing and Adopt a Resolution Confirming Diagram and Assessments and Ordering Levy of Assessments for FY 2024/25 for the City of Hercules LLAD 2002 -2 (Hercules Village) pursuant to the Landscaping and Lighting Act of 1972;

3) Hold a Public Hearing and Adopt a Resolution Confirming Diagram and Assessments and Ordering Levy of Assessments for FY 2024/25 fo r the City of Hercules LLAD 2004-1 (Baywood) pursuant to the Landscaping and Lighting Act of 1972;

4) Hold a Public Hearing and Adopt a Resolution Confirming Diagram and Assessments and Ordering Levy of Assessments for FY 2024/25 for the City of Hercules LLAD 2005-1 (Bayside) pursuant to the Landscaping and Lighting Act of 1972; and
77 5) Victoria by the Bay LLAD Action Items:

a. Hold a Public Hearing to receive testimony regarding the proposed increase to the maximum assessment rate for the City of Hercules Landscaping and Lighting Assessment District No. 2002 -1 (Victoria by the Bay LLAD) commencing with FY 2024/25;

b. Prior to the conclusion of public testimony, request any remaining assessment ballots for the Victoria by the Bay LLAD be delivered to the City Clerk, close public testimony and declare the balloting period closed, and any ballots received after that time shall be considered invalid and not counted;

c. Declare that the assessment ballots will be tabu lated on June 25, 2024 outside City Council Chambers upon close of the balloting period and that any interested person may attend and watch the tabulation process;

d. Announce the results of the ballot tabulation will be declared at the July 23, 2024 City Council meeting and this agenda item will be continued until that time;

e. On July 23, 2024 adopt a Resolution declaring the results of the ballot tabulation regarding the proposed increase to the maximum assessment rate for the Victoria by the Bay LLAD commencing Fiscal Year 2024/25;

f. On July 23, 2024 adopt a Resolution Approving the Final Engineer’s Report, Confirming Diagram and Assessments and Ordering Levy of Assessments for FY 2024/25 for the Victoria by the Bay LLAD pursuant to the Landscaping and Lighting Act of 1972; and

EXECUTIVE SUMMARY:

This Council Agenda item, which consists of holding the public hearings and confirming the Engineer’s Reports and assessments for FY 2024/25, is the final step in the annual process to levy assessments for the City of Hercules (City) Landscaping and Lighting Assessment Districts (LLADs). Per the Preliminary Engineer’s Reports which were previously approved by City Council on April 23rd , all five of the City’s LLADs are proposed to be assessed at or below the change in the Consumer Price Index (CPI) except the Victoria by the Bay LLAD, which is undergoing a Prop osition 218 process to increase its assessments. These increases are needed to cure a financial structural deficit.

For the Victoria by the Bay LLAD, City Council will hold a Public Hearing this evening to receive testimony regarding the proposed assessment increase to the maximum assessment rate, accept assessments ballots until the conclusion of the public testimony portion of the Public Hearing, declare that the Victoria by the Bay LLAD assessment 78 ballots will be tabulated on June 25, 2024 outside City Council Chambers upon conclusion of the public testimony, and continue the item until July 23, 2024 at which time the results of the ballot tabulation will be declared, and the Victoria by the Bay LLAD Final Engineer’s Report and assessments for FY 2024/25 will be approved in accordance with the results of the ballot tabulation.

BACKGROUND:

The City annually levies and collects special assessments to maint ain certain improvements within the City’s five LLADs. The LLADs provide for well -maintained, attractive landscaping and serviceable streetlighting along public streets as well as fire breaks adjacent to open space. They also provide for the upkeep of playgrounds, fields, park furniture, tennis courts, graffiti abatement, lighting, landscaping, water features, and trails in City parks. The expenses associated with the maintenance of these LLADs include labor, material, equipment, utilities, repairs, and administration.

Each LLAD provides continued maintenance, servicing, administration, and operations of various landscap ing and lighting improvements and other improvements benefitting parcels within each LLAD. Each property is assessed only for the cost of the improvements from which benefit is received. City Council h as followed a multi -step Council meeting process each year, including the preparation of annual Engineer’s Reports, to approve the levy of assessments on parcels within each respective LLAD in accordance with the Landscaping and Lighting Act of 1972. The Victoria by the Bay LLAD is experiencing an operating and cumulative deficit , which is currently being covered by a de facto loan from the General Fund and needs to be addressed as part of the FY 2024/25 LLAD annual approval process.

Findings from 5-year financial projections for the City’s five LLADs were presented to City Council on May 23, 2023 for review. In short, the 5-year financial projections showed that the operating budgets for LLAD No. 83-2 (comprised of eleven Benefit Zones), LLAD No. 2004-1 (Baywood), and LLAD No. 2005 -1 (Bayside) are trending positively through FY 2027-28. This was in part due to successful Proposition 218 proceedings conducted between FY 2017 /18 to FY 2021 /22 that resulted in increased assessments for six (6) Benefit Zones of LLAD No. 83 -2. The Victoria by the Bay LLAD and Hercules Village Landscaping and Lighting Assessment District No. 2002 -2 are currently experiencing annual operating deficits primarily due to the need for higher-level tree pruning work, the need for increased irrigation watering due to climate change , and East Bay Municipal Utility District water rate increases which have far exceeded the maximum allowable increase to the annual LLAD assessments, which is based on the published CPI.

In addition to th e 5-year financial projections, an independent evaluation of the Victoria by the Bay LLAD presented to City Council in October 2023 confirmed that its funding shortfalls would not be self-correcting. On October 19, 2023, notices and ballots were mailed to Victoria by the Bay LLAD property owners, in accordance with Proposition 218, to approve a two-step $150 per year assessment increase for a total annual increase of $300. Results from the ballot tabulation conducted on December 5, 2023 confirmed 79 property owners did not approve the proposed increase to their Victoria by the Bay LLAD assessments by a 77% to 23% margin.

Given all five of the City LLADs have been self -funded through LLAD assessments, balancing the operating budget and eliminating the fund deficit for the Victoria by the Bay LLAD requires either increasing assessment revenues or cutting cost by reducing levels of service. The financial status of the Victoria by the Bay LLAD was discussed in detail at the February 27, 2024 and March 26, 2024 City Council meetings. On April 9, 2024, City Council adopted resolutions initiating the FY 2024/25 annual approval process for the City’s five LLADs and authorized Proposition 218 proce edings to notice and ballot property owners within the Victoria by the Bay LLAD again to approve a two -step fixed assessment increase to be implemented in FY 2024/25 and FY 2025/26. Also, City Council directed staff to prepare a job description for the previously recommended LLAD Coordinator Position to be considered for approval at a future Council meeting. If the assessment increase is not approved by Victoria by the Bay LLAD property owners, cost cutting measures for the in-tract residential parkway strips will be implemented during FY 2024/25 upon City Council direction.

On April 23, 2024, City Council adopted resolutions approving the Preliminary Engineer’s Reports and setting a Public Hearing for June 25, 2024 for the LLADs. On May 8, 2024, notices and ballots were mailed to all affected property owners in the Victoria by the Bay LLAD, in accordance with Proposition 218, with instructions that ballots must be returned by mail by 5:00 PM on June 25, 2024, or in person by the conclusion of public testimony of the Public Hearing to be held at the June 25, 2024 City Council meeting. On May 21, 2024, City staff conducted a hybrid community workshop for the property owners within Victoria by the Bay LLAD to inform them about the mail balloting process, how to properly submit their ballot and the potential cost cutting measures should property owners oppose the assessment increase. Door hangers were placed on all the homes in Victoria notifying the occupants of the community workshop.

Ballots returned to the City will be tabulated outside City Council Chambers upon conclusion of public testimony this evening . Any interested parties may attend and observe the tabulation. If a majority of ballots returned d o not oppose the proposed assessment increase, City Council may approve the assessment increase. If a majority of ballots returned oppose the proposed assessment increase, the current ly authorized Victoria by the Bay LLAD assessment will continue to be imp osed and cost cutting measures will be implemented at City Council’s direction. Ballots are weighted according to the proportional financial obligation of the affect ed property. This means one vote for each dollar of assessment. The results of the ballot t abulation are anticipated to be reported to City Council on July 23, 2024.

ANALYSIS:

The Final Engineer’s Reports provide that the maximum annual assessment per parcel may be increased each fiscal year by the prior year’s increase in the CPI for San Francsico-Oakland-San Jose Area – All Urban Consumers. The prior year’s increase in 80 the CPI was 2.3 7%. All LLADs/Zones are proposed to be assessed at their current maximum assessment rates in FY 2024/25, except for Benefit Zone Nos. 2 (Foxboro), 5A (Business Park), 5B (Commercial Properties), 8 (Trees and Flowers) of LLAD No. 83 -2, Baywood Landscaping and Lighting Assessment District No. 2004-1, and the Victoria by the Bay LLAD. Below is a summary table of the LLADs/Zones recommended to be assessed below their respective maximum assessment rates for FY 2024/25.

For the Victoria by the Bay LLAD, the City is proposing a two -step fixed assessment increase to be implemented in FY 2024/25 and FY 2025/26 to address the current annual operating deficit and cumulative fund deficit. The Victoria by the Bay LLAD maximum annual assessment for each single-family home would increase by $150 for FY 2024/25 and would increase again by $150 for FY 2025/26. Assuming favorable results, commencing in FY 2026/27, the maximum annual assessments for the Victoria by the Bay LLAD would be increased annually by the change in CPI to keep up with inflationary increases in maintenance costs. The current and pr oposed rates per Equivalent Residential Unit (ERU) for each LLAD and Zone are set forth in the table below.

81 *The rates shown above are for single-family homes, which equal one Equivalent Residential Unit. Condominiums and Apartment Units are assessed at 75% and 64% the amount of a single -family home respectively. The current assessment for the Victoria by the Bay LLAD reflects the authorized maximum assessment for FY 2024/25.

At the June 11 th City Council Meeting, a LLAD Coordinator position was approved to provide better customer service to residents and higher-level oversight of the landscaping and tree trimming contracts. Due to the reassignment of existing s taffing to Facilities Maintenance, the addition of the LLAD Coordinator position will be cost -neutral for all LLADs, except for LLAD No. 83-2 (Zone 10 – Citywide).

FISCAL IMPACT:

If assessments for the LLADs are not levied, there would be an estimated revenue loss of $3.3 million for FY 202 4/25 to fund the maintenance and operations associated with the City’s public parks, landscaping, streetlighting, and open space areas. Conducting the public hearings and adoption of the attached resolutions is the th ird and final required Council action to approve the FY 2024/25 LLAD assessments. If the Victoria by the Bay LLAD property owners do not approve the proposed assessment increase, the City will need to cut an estimated $218,600 corresponding to the maintena nce of the in -tract residential parkway strips commencing in Fiscal Year 2024/25.

LLAD

NEIGHBORHOOD

COMPONENT

NEIGHBORHOOD

COMPONENT

NEIGHBORHOOD

COMPONENT

ZONES/DISTRICTS ASSESSMENT ASSESSMENT ASSESSMENT
Benefit Zone 1
(Cottage Ln, Coventry, and Olympian Hills) $85.21 $149.51 $87.23 $153.04 $2.03 $3.53 Benefit Zone 1
(Other Parcels) $142.52 $149.51 $145.90 $153.04 $3.38 $3.53 Benefit Zone 2
(Foxboro) $129.83 $149.51 $129.83 $153.04 $0.00 $3.53
Benefit Zone 3&4
(Non-Residential Parcels) $93.00 $149.51 $95.20 $153.04 $2.20 $3.53 Benefit Zone 3&4
(Residential Parcels) $139.04 $149.51 $141.24 $153.04 $2.20 $3.53 Benefit Zone 5A
(Business Park) $146.52 $149.51 $149.98 $153.04 $3.47 $3.53 Benefit Zone 5B
(Commercial Parcels) $140.07 $149.51 $140.07 $153.04 $0.00 $3.53 Benefit Zone 5C
(Misc. Parcels) $67.18 $149.51 $68.77 $153.04 $1.59 $3.53 Benefit Zone 6
(Arbors Senior Housing Center) $35.17 $149.51 $36.00 $153.04 $0.83 $3.53 Benefit Zone 6
(Westwood Duets) $195.67 $149.51 $198.19 $153.04 $2.52 $3.53 Benefit Zone 6
(Other Condominums) $118.21 $149.51 $120.04 $153.04 $1.83 $3.53 Benefit Zone 7
(Bay Pointe, Bravo, Caprice) $86.07 $149.51 $88.10 $153.04 $2.03 $3.53 Benefit Zone 7
(Other Parcels) $148.19 $149.51 $151.69 $153.04 $3.50 $3.53 Benefit Zone 8
(Trees and Flowers) $125.44 $149.51 $128.40 $153.04 $2.97 $3.53 Benefit Zone 9
(Country Run) $110.87 $149.51 $113.49 $153.04 $2.62 $3.53 LLAD No. 2002-1
(Victoria by the Bay) $617.03 $149.51 $767.03 $153.04 $150.00 $3.53 LLAD No. 2002-2
(Promenade) $758.90 $149.51 $776.86 $153.04 $17.96 $3.53 LLAD No. 2004-1
(Baywood) $2,048.41 $149.51 $2,191.80 $153.04 $143.39 $3.53 LLAD No. 2005-1
(Bayside) $276.54 $149.51 $283.08 $153.04 $6.54 $3.53

CITYWIDE

ASSESSMENT
(ZONE 10)

CITYWIDE

ASSESSMENT
(ZONE 10)

CITYWIDE

ASSESSMENT
(ZONE 10)
CURRENT PROPOSED ASSESSMENT* DIFFERENCEASSESSMENT* FY 2024/25 82 For FY 2024/25, Baywood LLAD No. 2004 -1 will make an installment payment to repay a 10 -year loan borrowed for a tree replacement project. Also, Benefit Zone Nos. 1 (Hercules by the Bay), 3 & 4 (Gems/Birds), 6 (Village Parkway) and 7 (Heights) associated with LLAD No. 83 -2 will continue to repay their respective 10 -year loans borrowed to replace failing wooden streetlight poles with new energy -efficient LED streetlights on metal poles.

ATTACHMENTS:

1. Resolutions Confirming Diagrams and FY 2024/25 Assessments for LLAD No. 83- 2, LLAD No. 2002 -1 (Victoria by the Bay LLAD), LLAD No. 2002 -2 (Hercules Village), LLAD No. 2004-1 (Baywood), and LLAD No. 2005-1 (Bayside)

2. Resolution Declaring the Results of the Property Owner Protest Balloting Proceedings for LLAD No. 2002-1 (Victoria by the Bay LLAD)

3. FY 2024/25 Final Engineer’s Reports for LLAD No. 83 -2, LLAD No. 2002 -1 (Victoria by the Bay), LLAD No. 2002 -2 (Hercules Village), LLAD No. 2004 -1 (Baywood), and LLAD No. 2005-1 (Bayside)
83 RESOLUTION NO. 24-___

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

CALIFORNIA, DECLARING THE RESULTS OF THE PROPERTY OWNER

PROTEST BALLOT ING PROCEEDINGS CONDUCTED FOR A PROPOSED

INCREASE IN THE MAXIMUM ASSESSMENT RATE FOR THE VICTORIA BY THE BAY LANDSCAP ING AND LIGHTING ASSESSMENT DISTRICT NO. 2002 -1 COMMENCING FISCAL YEAR 202 4/25

WHEREAS, the City Council on behalf of the Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 (hereafter referred to as the “District”) by previous resolution initiated proceedings to conduct property owner protest balloting proceedings for the proposed increase in the maximum assessment rates within the District; and
WHEREAS, in accordance with the provisions of the California Constitution, Article XIIID, the Proposition 218 Omnibus Implementation Act and the Landscaping and Lighting Act of 1972 (collectively, “Assessment Law”) , the City Council has caused and conducted property owner protest balloting proceedings for the proposed increase in the maximum assessment rates within the District; and
WHEREAS, the proposed maximum assessment rate increases presented to each affected property owner of record within the District territory reflects their property’s benefit and proportional f inancial obligation for maintaining landscaping and lighting improvements associated with that property. The notices and ballots for each property owner, clearly gave notice of a Public Hearing to be held on June 25, 2024 and identified the total amount balloted to all properties, the proposed maximum Fiscal Year 2024/25 and Fiscal Year 2025/26 assessment rate s, the property’s proportional annual assessment for Fiscal Year 2024/25 and Fiscal Year 2025/26 , and the inflationary adjustment to the maximum assessment rates applicable commencing in Fiscal Year 2026/27; and
WHEREAS, following the conclusion of the public testimony and declaring the balloting period closed, the protest ballots returned by the landowners of record within the District territory were opened and tabulated outside the City Council Chambers on June 25, 2024, and the results of which are provided hereto.

84 NOW, THEREFORE, BE IT RESOLVED for the Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1, pursuant to the provisions of the California Constitution Article XIIID, as follows:
1 The above recitals are true and correct.
2 The property owner protest balloting proceedings were conducted with the affected property owners within the District for Fiscal Year 2024/25 as required by Assessment Law. Assessment ballots were mailed as required to the record owners of all affected properties proposed to be assessed within the District. The assessment ballots that were completed and received by the City Clerk prior to the close of the public input portion of the Public Hearing held on June 25, 2024 have been tabulated in accordance with Assessment Law.
3 The canvass of the protest ballots cast for the District territory and received prior to the close of the public input portion of the Public Hearing held on June 25, 2024, weighted according to the proportional financial obligation of the affected properties herein, is hereby approved and confirmed. The results of the ballot tabulation , weighted by assessment amount, is as follows:

29.7% in favor and 70.3% against.
4 The City Clerk is hereby directed to enter this Resolution on the minutes of this meeting, which shall constitute the official declaration of the result of such property owner protest proceeding.
5 This Resolution shall become effective immediately upon its adoption. 6 The City Clerk shall certify the adoption of this Resolution.

85 The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 23rd day of July 2024, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Dan Romero, Mayor

ATTEST:

________________________________
Eibleis Melendez
City Clerk

86 RESOLUTION NO. 24-____

RESOLUTION OF THE CI TY COUNCIL OF THE CI TY OF HERCULES CONFIRMING DIAGRAM AND ASSESSMENTS FOR FISCAL YEAR 20 24/25

FOR THE VICTORIA BY THE BAY LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT NO. 2002 -1 PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972.

WHEREAS, the City of Hercules Victoria by the Bay Landscaping and Lighting Assessment District No. 2002 -1 (hereinafter referred to as the “District” ) was formed on May 14, 2002 by Resolution No. 02-050 of the City Council pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Section 22500 et. Seq. and State Law); and
WHEREAS, the City Council designated by resolution Francisco & Associates as Engineer of Work for the Distric t and directed the filing of an Annual Engineer’s Report for the District; and
WHEREAS, on April 9, 202 4, the City Council adopted Resolution No . 24-023 authorizing Proposition 218 proceedings for the purposes of increasing assessment s in Fiscal Year 2024/25 for the District and direct the filing of the Fiscal Year (FY) 2024/25 Engineer’s Report, pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, on April 23, 2024, the City Council adopted Resolution No. 2 4-025 preliminarily approving the Engineer’s Report, declaring the intention to levy and collect assessments for Fiscal Year 2024/25 within the District, and setting a public hearing for June 25, 2024; and
WHEREAS, on April 23, 2024, the City Council authorized the mailing of notices and ballots to property owners within the District to approve an increase to District maximum assessment rates pursuant to Proposition 218; and WHEREAS, at the appointed time on June 2 5, 2024 the City Council did conduct a public hearing at which all interested persons were afforded an opportunity to be heard. The public hearing was continued to July 23, 2024 to allow for the tabulation of returned ballots; and

WHEREAS, by separate resolution, the Council declared the re sults of the property owner protest ballot proceedings conducted for the District; and

WHEREAS, the results of the ballot tabulation, weighted by assessment amount, was 29.7% in favor and 70.3% against; and

WHEREAS, the Engineer’s Report, as filed, provi des that the maximum assessment rate for the District will be adjusted for inflation by the annual change in the Consumer Price Index All Urban Consumers, San Francisco Bay Region from the prior calendar year. The FY 202 4/25 assessment rate that will be applied for the District is 87 adjusted by 2.37% from the prior fiscal year and is at the authorized maximum assessment rate.

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

1. The Preliminary Engineer’s Report accept ed by the City Council on April 23, 2024, and as modified , if applicable, is hereby approved and adopted as the F inal Engineer’s Report for the District for FY 2024/25.

2. The diagram showing assessment district boundary thereof and t he proposed assessments contained in the Engineer’s Report and presented to the property owners of record within the District are hereby confirmed.

3. Pursuant to the authority of the 1972 Act, the assessment to pay the costs and expenses of maintaining the improvements described in the Engineer’s Report is hereby ordered to be levied and the improvements hereby ordered to be made.

4. Based upon the oral and written evidence presented, including the Engineer’s Report, the City Council finds that there is substa ntial evidence in the record demonstrating that the properties within the District receive a special benefit over and above the benefit conferred on the public at large and that the amount of the assessment is proportional to the special benefit conferred on the property.

5. The City Clerk is directed to file a certified copy of the diagram, assessment and this resolution with the Auditor -Controller of the County of Contra Costa immediately after adoption of this resolution, but no later than the third Monday , in August. Upon receipt of the diagram and assessment, the County Auditor -Controller shall enter on the County assessment roll opposite each lot or parcel of land the amount assessed thereupon as shown in the assessment. After collection by the County, the net amount of the assessment, after deduction of any compensation due the County for collection, shall be paid to the City.

6. Upon receipt of monies representing assessments collected by the County, the Finance Director shall deposit the monies in the City’s Landscaping and Lighting account. The account shall only be used for maintenance and installation of improvements described in the Engineer’s Report.

88 The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules he ld on the 23rd day of July 2024, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Dan Romero, Mayor

ATTEST:

________________________________
Eibleis Melendez
City Clerk

89 City of Hercules
Victoria By The Bay
Landscaping and Lighting
Assessment District No. 2002-1
Fiscal Year 2024-25
Final Engineer’s Report

July 23, 2024
90 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 TABLE OF CONTENTS

TABLE OF CONTENTS

Page No.

Directory ................................................................................................................ i

Signatures ............................................................................................................. ii

Section I – Introduction ......................................................................................... 1

Section II – Engineer’s Report .............................................................................. 3

Part A – Plans and Specifications ................................................................... 5

Part B – Estimate of Cost ................................................................................ 7 Table 1: Budget................................................................................ 8

Part C – Assessment District Diagram ............................................................ 9

Part D – Method of Apportionment of Assessments ...................................... 11

Part E – Property Owner List & Assessment Roll .......................................... 17

Appendix A – Improvements Diagram ............................................................... A-1

Appendix B – Public Property Assessments ...................................................... B-1

Appendix C – Assessment Roll ........................................................................ C-1

91 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 DIRECTORY

i

CITY OF HERCULES

VICTORIA BY THE BAY

LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT No. 2002-1

FISCAL YEAR 2024-25

CITY COUNCIL MEMBERS AND STAFF

Dan Romero
Mayor

Dion Bailey
Vice Mayor

Alexander Walker-Griffin
Council Member
Chris Kelley
Council Member

Tiffany Grimsley
Council Member

Dante Hall
City Manager

Patrick Tang
City Attorney

Edwin Gato
Finance Director

Eibleis Melendez
City Clerk

Mike Roberts
Public Works Director

Francisco & Associates
Assessment Engineer
92 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 SIGNATURES

ii

ENGINEER’S REPORT

CITY OF HERCULES

VICTORIA BY THE BAY

LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT No. 2002-1

FISCAL YEAR 2024-25

The undersigned respectfully submits the enclosed Engineer’s Report as directed by the City Council.

Dated: Ju ly 1, 2024 By______________________________ Eduardo R. Espinoza, P.E.

RCE No. 83709

I HEREBY CERTIFY that the enclosed Engineer’s Report, together with the Assessment Roll and Assessment Diagram thereto attached was filed with me on t he _____ day of _________ 2024.

By______________________________
Eibleis Melendez, City Clerk
City of Hercules
Contra Costa County, California

I HEREBY CERTIFY that the enclosed Engineer’s Report, together with the Assessment Roll and Assessment Diagram, thereto attached, was approved and confirmed by the City Council of the City of Hercules , Contra Costa County, California, on the ____ _ day of _________ 2024.

By______________________________
Eibleis Melendez, City Clerk
City of Hercules
Contra Costa County, California

93 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 ENGINEER’S REPORT

1 SECTION I

INTRODUCTION

Background Information
The land corresponding to Subdivision 8455, (known hereafter as “Victoria by the Bay”) was formerly assessed as vacant commercial land, designated as Zone 5C within City of Hercules Landscaping and Lighting Assessment District No. 83- 2 (LLAD No. 83-2). The developer for Victoria by the Bay was required to install landscaping, streetlighting, park and recreational improvements as a condition of approval for development. The Victoria by the Bay improvements are distinct from other improvements within existing LLAD No. 83-2 and requir e a higher level of maintenance. In April of 2002, an assessment ballot was mailed to the property owners within the boundaries of Victoria by the Bay on the matter of detaching the subject property from existing LLAD No. 83-2, forming the Victoria by the Bay Landscaping and Lighting Assessment District No. 2002 -1 (the “District”), approving a maximum amount of individual assessments for future years, and authorizing an index by which the stated maximum amount of the individual assessments could be increased in future years without the need for an assessment ballot procedure otherwise required by Section 4 of Article XIIID for an “increased assessment”.

The City Council adopted Resolution 02-050 on May 14, 2002. This resolution detached Victoria by the Bay from LLAD No. 83-2, formed the District, and authorized the lev y of the first annual assessment to be adjusted annually according to the index as set forth in the Engineer’s Report. The index defined in the Engineer’s Report is the annual change in the Bay Area’s Consumer Price Index – All Urban Consumers (CPI) for the previous calendar year.

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

Current Annual Administration
As required by the 1972 Act, this Report describes the improvements to be constructed, operated, maintained and serviced by the District for FY 2024-25, provides an estimated budget for the District and lists the proposed assessments to be levied upon each assessable lot or parcel within the District.

The Hercules City Council may amend the method of assessment from time to time in order to apportion the costs in relation to the special benefits being received. However, 94 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 ENGINEER’S REPORT

2 any increase in the assessments from the prior year, other than the annual increase from the CPI adjustment, will be subject to the applicable requirements of Proposition 218.

The City mailed notices and ballots to the affected property owners a minimum of 45 days prior to the Public Hearing set for June 25, 2024. At the Public Hearing, the City provided an opportunity for an interested person to provide testimony. After the public hearing input portion, the City Council asked if there were any remaining ballots to be turned in or if anyone wanted to change their vote. Ballots were not accepted beyond that point. The City Council then continued the Public Hearing to July 23, 2024. The results of the ballot tabulation were presented to City Council at the continued Public Hearing on July 23, 2024. A majority of the ballots returned did not approve the proposed assessment increase commencing with FY 2024- 25. Ballots were weighted according to the proportional financial obligation of the affected properties. This means one vote for each one dollar of assessment.

At the conclusion of the continued Public Hearing the City Council may adopt a resolution confirming the levy of assessments as originally proposed. Following the adoption of this resolution, the Final Assessor’s Roll will be prepared and filed with the Contra Costa County Auditor’s Office, to be included on the FY 2024-25 tax roll.

Payment of the assessment for each parcel will be made in the same manner and at the same time as payments are made for property taxes. All funds collected through the District must be placed in a special fund and will only be used for the purposes stated within this Report.

95 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 ENGINEER’S REPORT

3 SECTION II

ENGINEER’S REPORT

PREPARED PURSUANT TO THE PROVISIONS OF THE
LANDSCAPING AND LIGHTING ACT OF 1972
SECTION 22500 THROUGH 22679

OF THE CALIFORNIA STREETS AND HIGHWAYS CODE

CITY OF HERCULES

VICTORIA BY THE BAY

LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT No. 2002-1

FISCAL YEAR 2024-25

Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500), and in accordance with the Resolution of Intention, being Resolution No. 24-025 adopted by the City Council of the City of Hercules on April 23, 2024, I, Eduardo R. Espinoza, the duly appointed Engineer of Work, Assessment Engineer for the City of Hercules Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 (the “District”) submit the following Report, consisting of Section I (Introduction), and this , Section II, which consists of five (5) parts as follows:

PART A: PLANS AND SPECIFICATIONS

This part describes the improvements maintained by the District. Plans and specifications for the improvements are on file in the Office of the Director of Public Works of the City of Hercules, and are incorporated herein by reference.

PART B: ESTIMATE OF COST

This part contains an estimate of the cost of the proposed improvements to be maintained for FY 2024-25, including incidental costs and expenses in connection therewith. The estimate is attached hereto, and is on file in the Office of the Director of Public Works of the City of Hercules.

96 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 ENGINEER’S REPORT

4 PART C: ASSESSMENT DISTRICT DIAGRAM

This part incorporates a Diagram of the District showing the exterior boundaries of the District and the lines and dimensions of each lot or parcel of land within the District. This Diagram has been prepared by the Engineer of Work and is on file in the Office of the Director of Public Works of the City of Hercules.

The lines and dimension of each lot or parcel within the District are those lines and dimensions shown on the maps of the Contra Costa County Assessor for the year when this Report was prepared. The Assessor’s maps and records are incorporated by reference herein and made a part of this Report.

PART D: METHOD OF APPORTIONMENT OF ASSESSMENTS

This part describes the method of apportionment of assessments, based upon each parcel’s land use classification within the District in proportion to the estimated special benefits to be received.

PART E: PROPERTY OWNER LIST & ASSESSMENT ROLL

This part contains the assessment on each benefited parcel of land within the District.

The Assessment Roll is filed in the Office of the City Clerk of the City of Hercules and is incorporated in this Report. The list is keyed to the records of the Contra Costa County Assessor, which are incorporated herein by reference.

97 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 PART A

5 PART A

PLANS AND SPECIFICATIONS

The facilities that have been constructed benefitting parcels of land within the District, and those which may be subsequently constructed, operated, maintained and serviced are generally described and defined below:

The landscaping, parks, and streetlighting improvements to be maintained by the District are shown on the Landscape Plans for Victoria by the Bay prepared by The Collaborative West, dated November 2001, and Isaacson, Wood & Associates, dated December 2001 and the final landscape plans submitted, which plans are available for review in the Office of the Director of Public Works and are incorporated into this Report by reference. Areas to be maintained are located within public rights of way, which are dedica ted to the City on the subdivision final maps. An “Improvements Diagram” is included in Appendix “A” of this Report. This diagram depicts the improvements funded by District assessments.

The “Neighborhood” improvements to be maintained generally include landscaping along the Victoria Crescent Drive corridor , linear parks located within the District, and in-tract streetlighting improvements within the District. More specifically, the improvements to be maintained include trees, shrubs, vines, ground cover, turf, Victoria Park and Arbor Park improvements and in-tract streetlights. The services to be provided include , but are not limited to , litter and debris removal, graffiti abatement, irrigation system adjustment s, maintenance and repairs; landscape structure repairs and painting; pruning, staking, fertilizing, plant replacement and restoration; weed control; erosion control; tree trimming and removal of debris in the area. Residential Parkway strips as shown in the Improvements Diagram will no longer be maintained by the District commencing in FY 2024-25.

The “City -wide” improvements to be maintained and paid for by District assessments generally consists of arterial/major roadway landscape and street lighting maintenance.

More specifically, the improvements to be maintained include trees, shrubs, vines, ground cover, turf, and streetlights located along John Muir Parkway, Refugio Valley Road, San Pablo Avenue, Sycamore Avenue, and Willow Avenue. The services to be provided include but are not limited to litter and debris removal, graffiti abatement, irrigation system adjustments, maintenance and repairs; landscape structure repairs and painting; pruning, staking, fertilizing, plant replacement and restoration; weed control; erosion control; tree trimming and removal of debris in the area.

Improvements means one or any combination of the following: the installation or planting of landscaping, the installation or construction of statuary, fountains, and other ornamental structures and facilities; the installation or construction of public lighting facilities; the installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation 98 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 PART A

6 or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities; the maintenance or servicing, or both, of any of the foregoing; the acquisition of any existing improvement otherwise authorized pursuant to this section.

Maintenance means the furnishing of services and materials for the ordinary and usual operations, maintenance and servicing of the landscaping, streetlighting, public park , sidewalks, and recreational facilities and appurtenant facilities, including repair, removal or replacement of all or part of any of the landscaping, streetlighting, public park , sidewalks, and recreational facilities or appurtenant facilities; providing for the life, growth, health and beauty of the landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; and the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.

Servicing means the furnishing of water for the irrigation of the landscaping and the maintenance of any streetlighting facilities or appurtenant facilities and the furnishing of electric current or energy, gas or other illuminating agent for the streetlighting, public park and recreational facilities or appurtenant facilities.

Incidental expenses associated with the improvements including, but not limited to: the cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment; the costs of printing, advertising, and the publishing, posting and mailing of notices; compensation payable to the County for collection of assessments; compensation of any engineer or attorney employed to render services; any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements; any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.5 of the Landscape and Lighting Act of 1972; costs associated with any elections held for the approval of a new or increased assessment.

99 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 PART B

7 PART B

ESTIMATE OF COST

The 1972 Act provides that the total cost of installation, construction, operation, maintenance, servicing, and incidentals associated with landscaping, streetlighting and park and recreational facilities can be recovered by the District. Maintenance can include the repair and replacement of existing facilities, including graffiti removal . Servicing can include electricity and associated costs from a public utility. Incidental expenses, including administration of the District, engineering fees, legal fees, printing, posting and mailing of notices and all other costs associated with the annual collection process can also be included.

The 1972 Act requires that a special fund be set up for the revenues and expenditures of the District. Funds generated by the assessments shall be used only for the purpose as stated herein.

The operation, maintenance and servicing costs for FY 2024-25 are summarized in Table 1 on the following page. Cost Cutting measures for the in-tract residential parkway strips will be implemented during FY 2024- 25 because property owners did not approve the proposed assessment increase. These cost estimates were provided by the City of Hercules.

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VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 PART B

8 TABLE 1

*All parcels in the City pay their share of special benefit conferred to property on a per ERU basis for costs related to the City's Arterials/Major Roads landscaping and streetlighting improvements. The FY 2024-25 estimated budget for the City's Arterial/Major Roads landscaping and streetlighting improvements is approximately $362,000 and the transfer amounts for Arterials/Major Roads landscaping and lighting are based on an allocation to each parcel of $35.00/ERU.

REVENUES FY 2024-25
Assessments $512,497
Public Agency Assessments $8,072
General Benefit Contribution $8,452
TOTAL REVENUES: $529,021

ESTIMATED EXPENDITURES
Personnel $105,564
Transfer for Arterials/Major Roads L&L Maintenance $29,529 Landscaping, Open Space, and Associated Repairs $96,006 Tree Trimming $25,000
Electricity and Streetlight Repairs $50,000
Landscape and Facilities Water $110,777
Assessment Engineering Cost $5,000
Incidental / Direct Admin Cost $29,379
County Fees $854
TOTAL ANNUAL EXPENDITURES: $452,109

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

TOTAL EXPENDITURES
TOTAL ANNUAL AND CIP EXPENDITURES: $477,109

FUND BALANCE INFORMATION
Beginning Balance - Projected July 1, 2024 ($449,090)
FY 2024-25 Reserve Collection Increase/(Decrease) $51,912 Ending Balance - Projected June 30, 2025 ($397,178)
Recommended Operating Reserves $238,554
Available Operating Reserves ($397,178)
Available Capital Reserves $0

DISTRICT STATISTICS
Total Parcels 839
Tot
al Parcels Levied 794
Equivalent Residential Units (ERU) 843.682
Proposed Levy per Benefit Unit $617.03
FISCAL YEAR 2024-25

PROPOSED INCOME AND EXPENSE
(VICTORIA BY THE BAY)
LANDSCAPING AND LIGHTING DISTRICT NO. 2002-1
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VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 PART C

9 PART C

ASSESSMENT DISTRICT DIAGRAM

The boundaries of the District are contiguous with the boundaries of Subdivision 8455 .

The lines and dimensions of each parcel within the District are those lines and dimensions shown on the maps of the Contra Costa County Assessor for the year in which this Report was prepared and are incorporated by reference herein and made part of this Report.

A reduced copy of the Assessment Diagram is shown on the following page. 102
/67/105/116/121/32/111/102/32/72/101/114/99/117/108/101/115 /80/82/69/80/65/82/69/68/32/66/89/32/70/82/65/78/67/73/83/67/79/32/38/32/65/83/83/79/67/73/65/84/69/83/44/32/73/78/67 /46/45/44
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/69/85/75/65/76/89/80/84/85/83/32/75/78/79/76/76
/86/73/67/84/79/82/73/65/32/67/82/69/83/67/69/78/84
/86/73/67/84/79/82/73/65/32/67/82/69/83/67/69/78/84
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/78/65/85/84/73/67/65/76/32/67/79/86/69
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/67/73/84/89/32/79/70/32/72/69/82/67/85/76/69/83
/76/65/78/68/83/67/65/80/73/78/71/32/38/32/76/73/71/72/84/73/78/71/32/68/73/83/84/82/73/67/84 /65/83/83/69/83/83/77/69/78/84/32/68/73/65/71/82/65/77
/76/76/65/68/32/50/48/48/50/45/49
/78
/80/114/111/106/47/72/101/114/99/117/108/101/115/47/70/89/49/50/45/49/51/47/68/105/97/103/114/97/109/115/47/50/48/48/50/45/49/95/100/105/97/103/114/97/109/46/112/100/102/32/32/40/48/52/45/49/53/45/49/48/32/83/65/41 /80/97/114/99/101/108/115/32/108/111/99/97/116/101/100/32/119/105/116/104/105/110 /116/104/101/32/76/76/65/68/32/50/48/48/50/45/49
/67/105/116/121/32/76/105/109/105/116
/76/69/71/69/78/68
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/76/76/65/68/32/50/48/48/50/45/49/32/66/111/117/110/100/97/114/121 /76/76/65/68/32/50/48/48/50/45/49
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VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 PART D

11 PART D

METHOD OF APPORTIONMENT OF ASSESSMENTS

INTRODUCTION

Part 2 of Division 15 of the Streets and Highways Code, the Landscaping and Lighting Act of 1972, permits the establishment of assessment districts by Agencies for the purpose of providing certain public improvements, which include the operation, maintenance and servicing of landscaping, streetlighting and park and recreational facilities.

Section 22573 of the Landscaping and Lighting Act of 1972 requires that maintenance assessments be levied according to special benefit, rather than according to assessed value. This Section states:

“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements.

The determination of whether a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 (commencing with Section 5000)) [of the Streets and Highways Code, State of California].”

Because assessments are levied on the basis of special benefit, they are not considered a tax, and therefore, are not governed by Article XIIIA of the California Constitution. Article XIIID provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment are the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, and public alleys.

GENERAL BENEFIT

Under Article XIIID of the State Constitution (Proposition 218) , general benefit to the public at large is not assessable to property owners within the District. The various types of general benefit associated with this district are described below:

Neighborhood Improvements: There is insignificant flow through traffic for the in-tract neighborhood streets associated with the District . However, to acknowledge the rare and incidental occasion on which residents commencing from a location outside the boundar ies of the District utilize the in -tract neighborhood streets to access other destinations outside the boundary of the 104
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 PART D

12 District, an industry standard of 2% of the cost to maintain the District Improvements is attributed to general benefit, and will be paid by the City.

Arterial/Major Roads Landscape and Streetlighting Maintenance: The arterial/major roadways allow residents to easily access all areas of the City and provide a clear benefit to all properties in the City. Therefore, landscape and streetlighting maintenance costs associated with the arterial/major roads are spread proportionately to all parcels in the City. The roads that fall into this category are John Muir Parkway, San Pablo Avenue, Refugio Valley Road, Sycamore Avenue, and Willow Avenue. Although these roads are mostly utilized by people coming to and from Hercules, there is some general benefit that can be attributed to flow through traffic generated from properties outside of City limits. Based on a prior circulation analysis, it is estimated that an average of 6% of traffic on these roads can be attributed to flow through traffic and therefore, 6 % of the cost to maintain landscaping and streetlighting located along arterial/major roads is attributed to general benefit and will be paid by the City.

SPECIAL BENEFIT

Most of the improvements to be serviced and maintained by the District have been constructed as a condition of approval of the Victoria by the Bay development and are of special benefit to the various parcels of land within this development. These special benefits are summarized below.

Streetlighting: Streetlighting is critical for public safety. Well -maintained streetlighting provides security to the adjacent properties by deterring crime and allowing Hercules police the ability to identify and control suspicious and criminal activity. It allows for sa fe pedestrian and vehicular traffic flow and circulation by improving the ability of pedestrians and motorists to see and to enter and exit property, which helps reduce night time accidents resulting in lower police, fire and paramedic costs to the City and its residents. Street lighting also increases the promotion of business during nighttime hours in the case of commercial property.

Landscaped Streetscapes and Medians: The District keeps the City’s landscaped streetscapes and medians well -groomed and irrigated which enhances property values within the District . These services include, landscape maintenance, plant replacement, irrigation, tree pruning, and litter control. Some of the special benefits properties receive from well -maintained landscaping include:

• The aesthetic value of green space;
• Improved aesthetic appeal of nearby parcels;
• Enhanced adaptation of the urban environment within the natural environment;
• Improved erosion control;
• Improved dust and debris control;
105
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 PART D

13 • Reduced air pollution; and
• Enhanced sense of pride within the development and community.

Public Parks and Recreational Facilities: The District provides landscape and recreational facility maintenance at Victoria Park and Arbor Park , which are in close proximity to parcels within the District and enhance property values within the District . These services include, landscape maintenance, playground equipment cleaning and replacement, irrigation, tree pruning, plant replacement and litter control.

Open Space Cleanup and Graffiti Abatement
Miscellaneous improvements such as the removal of litter, debris, and graffiti are of special benefit to each property within the District.

The special benefits received may best be evaluated in terms of the property devaluation that would occur if the District maintenance activities were suspended or terminated. The resultant r eduction in the quality of life c ould be significant. In contrast to the current conditions, one could find streets without lights, parks parched from lack of water, hillsides littered with debris, unkempt community facilities with graffiti and traffic medians overtaken by weeds. The resulting loss to property in terms of the desirability of the City of Hercules as a place to live and work would be obvious. Clearly the continuation of the City’s maintenance effort is of special benefit to each property owner within the District.

ASSESSMENT METHODOLOGY

The total operation, maintenance and servicing costs for the landscaping, streetlighting and public park and recreational facilities are apportioned in accordance with the methodology stated herein. The method for spreading the costs to each parcel is based on an Equivalent Residential Unit (ERU) factor.

1. Detached Single-Family Residences
Approximately 99% of the residential parcels in the District are detached single-family residential (SFR) parcels. Although the individual parcel size, building square footage and population for each SFR parcel may vary from parcel to parcel , the benefit received from the improvements is approximately the same. Therefore, one (1) SFR parcel shall be equal to one (1) ERU. Because the majority of parcels in the District are SFRs, it is also reasonable to measure the relative benefits received by other residential land use in terms of that received by an SFR parcel.

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VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 PART D

14 2. Multi-Family Residential / Deed-Restricted Affordable Housing Units The special benefit received by Multi -family Residential (MFR) units may be determined by comparing them to SFRs. The building square footage of an MFR unit (e.g., apartment, duplex, tri -plex, mobile home, etc.) is significantly less than the building square footage of a n SFR. Therefore, it is reasonable to assume MFR units have less occupants per unit on average as compared to an SFR and therefore have less of an impact to District improvements.

The District includes one MFR parcel comprised of deed-restricted affordable housing units. The deed- restricted affordable housing site consist s of 132 units on approximately 8 acres; this amounts to approximately 2,640 square feet of land per unit. An average SFR lot in Victoria by the Bay has approximately 6,000 sq. ft. One can assume the average building area of an SFR unit will be 2,300 square feet and one MFR unit to be 900 square feet. Based upon density studies for neighboring communities, it is reasonable to assume that an SFR and MFR will have 3 and 2 persons per unit, respectively. Studies have shown that a vacant lot will require 25% the maintenance effort as compared to an improved (occupied) lot. The remaining 75% of the benefit may be said to be related to parcel use. Therefore, Equivalent Residential Units (ERU) for the affordable housing MFR units is calculated as follows:

The deed-restricted affordable housing units, by virtue of the non- profit use to which they have been indefinitely committed , are deprived from receiving comparable economic benefit from District improvements. Therefore, t hese deed- restricted affordable housing units are assessed at 50% of the assessment for typical MFR units, reflecting this reduced special benefit, or = 0.60 x 50% = 0.30 ERU per unit.

3. Vacant (Unimproved) Land
This underlying benefit of parks and recreation facilities, public landscaping, weed abatement, and streetlighting accrues to the land and relates to the permanent nature of certain improvements. The maintenance effort is of benefit to all land within the Relative Benefits = 0.25 (Lot Area / Person) + 0.75 (Bldg. Area / Person) (SFR Lot Area / Person) (SFR Bldg. Area / Person)
Assume MFR = 2,600 SFLot / Unit
900 SFBldg. / Unit

2.0 Persons per Unit
Assume SFR = 6,000 SFLot / Unit
2,300 SFBldg. / Unit

3.0 Persons per Unit
Benefit = 0.25 (2,600 / 2) + 0.75 (900 / 2)
(6,000 / 3) (2,300 / 3)
MFR Benefit = 0.16 + 0.44 = 0.60 ERU
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VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 PART D

15 District. The minimum level of maintenance required to preserve street landscaping, lighting, park and recreation facilities in the District is estimated to be 25% of the required maintenance for build-out conditions. Accordingly, the estimated benefit received by an unimproved parcel of land with approved development potential is 25% of that received by an improved parcel, equal in size. This assumes that unimproved land will have no use of the facilities. Therefore, vacant (unimproved) land is assessed at 25% of the developed ERU rate for the property.

4. Public Properties
City parks benefit from the neighborhood services provided by the District in which they are located. The benefit received is closely related to the improved frontage and not the area of the lot or the building. If one assumes that the depth of a standard lot in the City is 100 feet, the number of ERU’s corresponding to this frontage benefit would be equal to the street frontage of the park or recreation facility times 100 feet divided by 8,485, the average size of an SFR in Contra Costa County . This same frontage benefit analysis is used for other public properties in the City of Hercules.

Therefore, improved public properties are assigned ERUs using the following formula:

Lot Frontage x 100 / 8,485 = ERUs

Open space in residential neighborhoods may be seen to benefit from the safety provided to the land by streetlighting but not from other user related services. The ERU for public open space are therefore estimated to be equal to the parcel frontage times 100 feet of lot depth times 25% divided by 8,485. Therefore, open space parcels are assigned ERUS using the following formula:

Lot Frontage x 100 / 8,485 x 25% = ERUs

However, Lot Frontage x 100 cannot exceed the actual area of the parcel.

5. Exempt Parcels
Certain properties do not benefit from landscaping, lighting, park and recreational improvements and have not been assessed. City parks, recreational facilities and open space do not benefit from the features, which are the subject of the assessment.

These properties on the other hand may benefit from the neighborhood landsca ping and lighting services provided in the neighborhoods in which they are located. Public streets and right of ways do not benefit from landscaping and lighting improvements or from park and recreation facilities. Railroad right of ways and pipeline easem ents or fee strips generally do not benefit. The assessments for the special benefits received by common areas are included in the assessment for the residential units with which they are associated. Common areas themselves are not assessed.

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VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 PART D

16 CALCULATION OF ASSESSMENTS

The costs shown in Table 1 of Part B (Estimate of Cost) have been distributed amongst the various parcels of land within the District in accordance with the rationale described above to determine the applied assessment rate. The applied assessment rate is then multiplied by each parcel’s assigned ERUs to derive the annual assessment for that parcel.

Assessments for public property are listed in Appendix “B”. Assessments for all parcels are listed in Appendix “C”. The total ERUs and the applied assessment rates are shown in Table 1, Part B, Estimate of Cost. The following table shows the FY 2024- 25 assessments for various land use classifications.

CPI INCREASES

TO MAXIMUM ASSESSMENTS

The City can levy assessments every year up to the maximum assessment, which is increased by the annual change in the Consumer Price Index (CPI), San Francisco Bay Region All Urban Consumers. The applicable increase in the maximum assessment for FY 2024-25 is 2.37%.

MAXIMUM ASSESSMENT

For any given fiscal year , the amount of the assessment will not exceed the maximum amounts established in this Report, as adjusted by the CPI increase described above unless a special proceeding is conducted and affirmed according to law.

DURATION O

F ASSESSMENTS

Assessments will be levied in perpetuity unless otherwise determined by City Council.

District
Land Use
Classification
Single-Family Residential $617.03 per lot $617.03 per lot Undeveloped Vacant Single-Family Residential $154.26 per lot $154.26 per lot Multi-Family Residential $370.22 per unit $370.22 per unit Deed-Restricted Affordable Housing Residential $185.11 per unit $185.11 per unit FY 2024-25
Maximum
Assessment
FY 2024-25
Applied
Assessment
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VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 PART E

17 PART E

PROPERTY OWNER LIST & ASSESSMENT ROLL

A list of names and addresses of the owners of all parcels, and the description of each parcel within the District is shown on the last equalized Secured Property Tax Roll of the Contra Costa County Assessor, which by reference is hereby made a part of this Report.

This list is keyed to the Assessor’s Parcel Numbers as shown on the Assessment Roll, which includes the proposed amount of assessments for FY 2024-25 apportioned to each lot or parcel. The Assessment Roll is on file in the Office of the City Clerk of the City of Hercules and is shown in this Report as Appendix “C”.

The total proposed assessment for FY 2024-25 is $520,569.18.

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VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 APPENDIX A

A-1

APPENDIX “A”

IMPROVEMENTS DIAGRAM
111
San Pablo Avenue
Victoria Crescent East
Victoria Crescent West
Victoria Crescent West
ARBOR
PARK

VICTORIA
PARK
LANDSCAPING & LIGHTING ASSESSMENT DISTRICT NO. 2002-1 (VICTORIA BY THE BAY)

IMPROVEMENTS DIAGRAM

MAINTENANCE OF SHORELINE PARK

IS NOT FUNDED BY THE

VICTORIA BY THE BAY LLAD
±
0 500
Feet

RESIDENTIAL PARKWAY STRIPS

ARE NO LONGER MAINTAINED BY

THE VICTORIA BY THE BAY LLAD
COMMENCING IN FY 2024-25

VICTORIA BY THE BAY LLAD PAYS ITS SHARE OF

MAINTENANCE COST ASSOCIATED WITH SAN PABLO AVE

LANDSCAPING AND STREETLIGHTING
Legend

STREETLIGHTS

VICTORIA BY THE BAY PARCELS

PARCELS

ARBOR PARK HILLSIDE LANDSCAPING

NEIGHBORHOOD PARKS

COLLECTOR PARKWAY STRIPS

RESIDENTIAL PARKWAY STRIPS (NO LONGER

MAINTAINED BY THE VICTORIA BY THE BAY LLAD)
112
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 APPENDIX B

B-1

APPENDIX “B”

PUBLIC PROPERTY ASSESSMENTS
113
APN LocationOwner/Use ERUUnits Acres
Neighborhood
Amount

CITY OF HERCULES

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

PUBLIC PROPERTY ASSESSMENTS
FY 2024-25
404030045 VICTORIA CRESCENTCity/Open Space 0 11.402 0.589 $363.42 404520035 VICTORIA CRESCENTCity/Park 0 2.500 12.493 $7,708.56 Total: 0 13.902 13.082 $8,071.98
B- 2
114
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2024-25 ASSESSMENT DISTRICT No. 2002-1 APPENDIX C

C-1

APPENDIX “C”

ASSESSMENT ROLL

115

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
404030045 $363.42
404030050 $24,434.38
404500001 $617.02
404500002 $617.02
404500003 $617.02
404500004 $617.02
404500005 $617.02
404500006 $617.02
404500007 $617.02
404500008 $617.02
404500009 $617.02
404500010 $617.02
404500011 $617.02
404500012 $617.02
404500013 $617.02
404500014 $617.02
404500015 $617.02
404500016 $617.02
404500017 $617.02
404500018 $617.02
404500019 $617.02
404500020 $617.02
404500021 $617.02
404500022 $617.02
404500023 $617.02
404500024 $617.02
404500025 $617.02
404500026 $617.02
404500027 $617.02
404500028 $617.02
404500029 $617.02
404500030 $617.02
404500031 $617.02
404500032 $617.02
404500033 $617.02
404500034 $617.02
404500035 $617.02
404500036 $617.02
404500037 $617.02
404500038 $617.02
404500039 $617.02
404500040 $617.02
404500041 $617.02
404500042 $617.02
404500043 $617.02
404500044 $617.02
404500045 $617.02
404500046 $617.02
404500047 $617.02
404500048 $617.02
404500049 $617.02
404500050 $617.02
404500051 $617.02
404500052 $617.02
Assessor's
Parcel
Number
Neighborhood
Amount
404500053 $617.02
404500054 $617.02
404500055 $617.02
404500056 $617.02
404500057 $617.02
404500058 $617.02
404500059 $617.02
404500060 $617.02
404500061 $617.02
404510001 $617.02
404510002 $617.02
404510003 $617.02
404510004 $617.02
404510005 $617.02
404510006 $617.02
404510007 $617.02
404510008 $617.02
404510009 $617.02
404510010 $617.02
404510011 $617.02
404510012 $617.02
404510013 $617.02
404510014 $617.02
404510015 $617.02
404510016 $617.02
404510017 $617.02
404510018 $617.02
404510019 $617.02
404510020 $617.02
404510021 $617.02
404510022 $617.02
404510023 $617.02
404510024 $617.02
404510025 $617.02
404510026 $617.02
404510027 $617.02
404510028 $617.02
404510029 $617.02
404510030 $617.02
404510031 $617.02
404510032 $617.02
404510033 $617.02
404510034 $617.02
404510035 $617.02
404510036 $617.02
404510037 $617.02
404510038 $617.02
404510039 $617.02
404510040 $617.02
404510041 $617.02
404510042 $617.02
404510043 $617.02
404510044 $617.02
404510045 $617.02
Assessor's
Parcel
Number
Neighborhood
Amount
404510046 $617.02
404510047 $617.02
404510048 $617.02
404510049 $617.02
404510050 $617.02
404510051 $617.02
404510052 $617.02
404510053 $617.02
404510054 $617.02
404510055 $617.02
404510056 $617.02
404520001 $617.02
404520002 $617.02
404520003 $617.02
404520004 $617.02
404520005 $617.02
404520006 $617.02
404520007 $617.02
404520008 $617.02
404520009 $617.02
404520010 $617.02
404520011 $617.02
404520012 $617.02
404520013 $617.02
404520014 $617.02
404520015 $617.02
404520016 $617.02
404520017 $617.02
404520018 $617.02
404520019 $617.02
404520020 $617.02
404520021 $617.02
404520022 $617.02
404520023 $617.02
404520024 $617.02
404520025 $617.02
404520026 $617.02
404520027 $617.02
404520028 $617.02
404520029 $617.02
404520030 $617.02
404520031 $617.02
404520032 $617.02
404520033 $617.02
404520034 $617.02
404520035 $7,708.56
404530001 $617.02
404530002 $617.02
404530003 $617.02
404530004 $617.02
404530005 $617.02
404530006 $617.02
404530007 $617.02
404530008 $617.02
06/12/24
C-2
116

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
404530009 $617.02
404530010 $617.02
404530011 $617.02
404530012 $617.02
404530013 $617.02
404530014 $617.02
404530015 $617.02
404530016 $617.02
404530017 $617.02
404530018 $617.02
404530019 $617.02
404530020 $617.02
404530021 $617.02
404530022 $617.02
404530023 $617.02
404530024 $617.02
404530025 $617.02
404530026 $617.02
404530027 $617.02
404530028 $617.02
404530029 $617.02
404530030 $617.02
404530031 $617.02
404530032 $617.02
404530033 $617.02
404530034 $617.02
404530035 $617.02
404530036 $617.02
404540001 $617.02
404540002 $617.02
404540003 $617.02
404540004 $617.02
404540005 $617.02
404540006 $617.02
404540007 $617.02
404540008 $617.02
404540009 $617.02
404540010 $617.02
404540011 $617.02
404540012 $617.02
404540013 $617.02
404540014 $617.02
404540015 $617.02
404540016 $617.02
404540017 $617.02
404540018 $617.02
404540019 $617.02
404540020 $617.02
404540021 $617.02
404540022 $617.02
404540023 $617.02
404540024 $617.02
404540025 $617.02
404540026 $617.02
Assessor's
Parcel
Number
Neighborhood
Amount
404540027 $617.02
404540028 $617.02
404540029 $617.02
404540030 $617.02
404540031 $617.02
404540032 $617.02
404540033 $617.02
404540034 $617.02
404540035 $617.02
404540036 $617.02
404540037 $617.02
404540038 $617.02
404540039 $617.02
404550001 $617.02
404550002 $617.02
404550003 $617.02
404550004 $617.02
404550005 $617.02
404550006 $617.02
404550007 $617.02
404550008 $617.02
404550009 $617.02
404550010 $617.02
404550011 $617.02
404550012 $617.02
404550013 $617.02
404550014 $617.02
404550015 $617.02
404560001 $617.02
404560002 $617.02
404560003 $617.02
404560004 $617.02
404560005 $617.02
404560006 $617.02
404560007 $617.02
404560008 $617.02
404560009 $617.02
404560010 $617.02
404560011 $617.02
404560012 $617.02
404560013 $617.02
404560014 $617.02
404560015 $617.02
404560016 $617.02
404560017 $617.02
404560018 $617.02
404560019 $617.02
404560020 $617.02
404560021 $617.02
404560022 $617.02
404560023 $617.02
404560024 $617.02
404560025 $617.02
404560026 $617.02
Assessor's
Parcel
Number
Neighborhood
Amount
404560027 $617.02
404560028 $617.02
404560029 $617.02
404560030 $617.02
404560031 $617.02
404560032 $617.02
404560033 $617.02
404560034 $617.02
404560035 $617.02
404560036 $617.02
404560037 $617.02
404560038 $617.02
404560039 $617.02
404560040 $617.02
404560041 $617.02
404560042 $617.02
404560043 $617.02
404560044 $617.02
404560045 $617.02
404570001 $617.02
404570002 $617.02
404570003 $617.02
404570004 $617.02
404570005 $617.02
404570006 $617.02
404570007 $617.02
404570008 $617.02
404570009 $617.02
404570010 $617.02
404570011 $617.02
404570012 $617.02
404570013 $617.02
404570014 $617.02
404570015 $617.02
404570016 $617.02
404570017 $617.02
404570018 $617.02
404570019 $617.02
404570020 $617.02
404570021 $617.02
404570022 $617.02
404570023 $617.02
404570024 $617.02
404570025 $617.02
404570026 $617.02
404570027 $617.02
404570028 $617.02
404570029 $617.02
404570030 $617.02
404570031 $617.02
404570032 $617.02
404570033 $617.02
404570034 $617.02
404570035 $617.02
06/12/24
C-3
117

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
404570036 $617.02
404570037 $617.02
404570038 $617.02
404570039 $617.02
404570040 $617.02
404570041 $617.02
404570042 $617.02
404570043 $617.02
404570044 $617.02
404570045 $617.02
404570046 $617.02
404570047 $617.02
404570048 $617.02
404570049 $617.02
404570050 $617.02
404570051 $617.02
404570052 $617.02
404570053 $617.02
404570054 $617.02
404570055 $617.02
404570056 $617.02
404570057 $617.02
404580001 $617.02
404580002 $617.02
404580003 $617.02
404580004 $617.02
404580005 $617.02
404580006 $617.02
404580007 $617.02
404580008 $617.02
404580009 $617.02
404580010 $617.02
404580011 $617.02
404580012 $617.02
404580013 $617.02
404580014 $617.02
404580015 $617.02
404580016 $617.02
404580017 $617.02
404580018 $617.02
404580019 $617.02
404580020 $617.02
404580021 $617.02
404580022 $617.02
404580023 $617.02
404580024 $617.02
404580025 $617.02
404580026 $617.02
404580027 $617.02
404580028 $617.02
404580029 $617.02
404580030 $617.02
404580031 $617.02
404580032 $617.02
Assessor's
Parcel
Number
Neighborhood
Amount
404580033 $617.02
404580034 $617.02
404580035 $617.02
404580036 $617.02
404580037 $617.02
404580038 $617.02
404580039 $617.02
404580040 $617.02
404580041 $617.02
404580042 $617.02
404580043 $617.02
404580044 $617.02
404580045 $617.02
404580046 $617.02
404580047 $617.02
404580048 $617.02
404580049 $617.02
404580050 $617.02
404580051 $617.02
404580052 $617.02
404580053 $617.02
404580054 $617.02
404580055 $617.02
404580056 $617.02
404580057 $617.02
404580058 $617.02
404580059 $617.02
404580060 $617.02
404580061 $617.02
404580062 $617.02
404580063 $617.02
404580064 $617.02
404580065 $617.02
404580066 $617.02
404580067 $617.02
404580068 $617.02
404580069 $617.02
404580070 $617.02
404580071 $617.02
404580072 $617.02
404580073 $617.02
404580074 $617.02
404580075 $617.02
404580076 $617.02
404580077 $617.02
404580078 $617.02
404580079 $617.02
404580080 $617.02
404580081 $617.02
404590001 $617.02
404590002 $617.02
404590003 $617.02
404590004 $617.02
404590005 $617.02
Assessor's
Parcel
Number
Neighborhood
Amount
404590006 $617.02
404590007 $617.02
404590008 $617.02
404590009 $617.02
404590010 $617.02
404590011 $617.02
404590012 $617.02
404590013 $617.02
404590014 $617.02
404590015 $617.02
404590016 $617.02
404590017 $617.02
404590018 $617.02
404590019 $617.02
404590020 $617.02
404590021 $617.02
404590022 $617.02
404590023 $617.02
404590024 $617.02
404590025 $617.02
404590026 $617.02
404590027 $617.02
404590028 $617.02
404590029 $617.02
404590030 $617.02
404590031 $617.02
404590032 $617.02
404590033 $617.02
404590034 $617.02
404590035 $617.02
404590036 $617.02
404590037 $617.02
404590038 $617.02
404590039 $617.02
404590040 $617.02
404590041 $617.02
404590042 $617.02
404590043 $617.02
404590044 $617.02
404590045 $617.02
404590046 $617.02
404590047 $617.02
404590048 $617.02
404590049 $617.02
404590050 $617.02
404590051 $617.02
404590052 $617.02
404590053 $617.02
404590054 $617.02
404590055 $617.02
404590056 $617.02
404590057 $617.02
404590058 $617.02
404590059 $617.02
06/12/24
C-4
118

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 $617.02
404590061 $617.02
404590062 $617.02
404590063 $617.02
404590064 $617.02
404590065 $617.02
404590066 $617.02
404590067 $617.02
404590068 $617.02
404590069 $617.02
404590070 $617.02
404590071 $617.02
404590072 $617.02
404590073 $617.02
404590074 $617.02
404590075 $617.02
404590076 $617.02
404590077 $617.02
404590078 $617.02
404590079 $617.02
404590080 $617.02
404590081 $617.02
404590082 $617.02
404590083 $617.02
404590084 $617.02
404590085 $617.02
404590086 $617.02
404590087 $617.02
404590088 $617.02
404590089 $617.02
404590090 $617.02
404590091 $617.02
404590092 $617.02
404590093 $617.02
404590094 $617.02
404590095 $617.02
404590096 $617.02
404590097 $617.02
404590098 $617.02
404590099 $617.02
404590100 $617.02
404590101 $617.02
404590102 $617.02
404590103 $617.02
404590104 $617.02
404590105 $617.02
404590106 $617.02
404590107 $617.02
404590108 $617.02
404590109 $617.02
404590110 $617.02
404590111 $617.02
404590112 $617.02
404590113 $617.02
Assessor's
Parcel
Number
Neighborhood
Amount
404590114 $617.02
404590115 $617.02
404590116 $617.02
404590117 $617.02
404600001 $617.02
404600002 $617.02
404600003 $617.02
404600004 $617.02
404600005 $617.02
404600006 $617.02
404600007 $617.02
404600008 $617.02
404600009 $617.02
404600010 $617.02
404600011 $617.02
404600012 $617.02
404600013 $617.02
404600014 $617.02
404600015 $617.02
404600016 $617.02
404600017 $617.02
404600018 $617.02
404600019 $617.02
404600020 $617.02
404600021 $617.02
404600022 $617.02
404600023 $617.02
404600024 $617.02
404600025 $617.02
404600026 $617.02
404600027 $617.02
404600028 $617.02
404600029 $617.02
404600030 $617.02
404600031 $617.02
404600032 $617.02
404600033 $617.02
404610001 $617.02
404610002 $617.02
404610003 $617.02
404610004 $617.02
404610005 $617.02
404610006 $617.02
404610007 $617.02
404610008 $617.02
404610009 $617.02
404610010 $617.02
404610011 $617.02
404610012 $617.02
404610013 $617.02
404610014 $617.02
404610015 $617.02
404610016 $617.02
404610017 $617.02
Assessor's
Parcel
Number
Neighborhood
Amount
404610018 $617.02
404610019 $617.02
404610020 $617.02
404610021 $617.02
404610022 $617.02
404610023 $617.02
404610024 $617.02
404610025 $617.02
404610026 $617.02
404610027 $617.02
404610028 $617.02
404610029 $617.02
404610030 $617.02
404610031 $617.02
404610032 $617.02
404610033 $617.02
404610034 $617.02
404610035 $617.02
404610036 $617.02
404610037 $617.02
404610038 $617.02
404610039 $617.02
404610040 $617.02
404610041 $617.02
404620001 $617.02
404620002 $617.02
404620003 $617.02
404620004 $617.02
404620005 $617.02
404620006 $617.02
404620007 $617.02
404620008 $617.02
404620009 $617.02
404620010 $617.02
404620011 $617.02
404620012 $617.02
404620013 $617.02
404620014 $617.02
404620015 $617.02
404620016 $617.02
404620017 $617.02
404620018 $617.02
404620019 $617.02
404620020 $617.02
404620021 $617.02
404620022 $617.02
404620023 $617.02
404620024 $617.02
404620025 $617.02
404620026 $617.02
404620027 $617.02
404620028 $617.02
404620029 $617.02
404620030 $617.02
06/12/24
C-5
119

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 $617.02
404620032 $617.02
404620033 $617.02
404620034 $617.02
404620035 $617.02
404620036 $617.02
404620037 $617.02
404620038 $617.02
404620039 $617.02
404620040 $617.02
404620041 $617.02
404620042 $617.02
404620043 $617.02
404620044 $617.02
404620045 $617.02
404620046 $617.02
404620047 $617.02
404620048 $617.02
404620049 $617.02
404620050 $617.02
404620051 $617.02
404620052 $617.02
404620053 $617.02
404620054 $617.02
404620055 $617.02
404620056 $617.02
404620057 $617.02
404620058 $617.02
404620059 $617.02
404640001 $617.02
404640002 $617.02
404640003 $617.02
404640004 $617.02
404640005 $617.02
404640006 $617.02
404640007 $617.02
404640008 $617.02
404640009 $617.02
404640010 $617.02
404640011 $617.02
404640012 $617.02
404640013 $617.02
404640014 $617.02
404640015 $617.02
404640016 $617.02
404640017 $617.02
404640018 $617.02
404640019 $617.02
404640020 $617.02
404640021 $617.02
404680001 $617.02
404680002 $617.02
404680003 $617.02
404680004 $617.02
Assessor's
Parcel
Number
Neighborhood
Amount
404680005 $617.02
404680006 $617.02
404680007 $617.02
404680008 $617.02
404680009 $617.02
404680010 $617.02
404680011 $617.02
404680012 $617.02
404680013 $617.02
404680014 $617.02
404680015 $617.02
404680016 $617.02
404680017 $617.02
404680018 $617.02
404680019 $617.02
404680020 $617.02
404680021 $617.02
404680022 $617.02
404680023 $617.02
404680024 $617.02
404680025 $617.02
404680026 $617.02
404680027 $617.02
404680028 $617.02
404680029 $617.02
404680030 $617.02
404680031 $617.02
404680032 $617.02
404680033 $617.02
404680034 $617.02
404680035 $617.02
404680036 $617.02
404680037 $617.02
404680038 $617.02
404680039 $617.02
404680040 $617.02
404680041 $617.02
404680042 $617.02
404680043 $617.02
404680044 $617.02
404680045 $617.02
404680046 $617.02
404680047 $617.02
404680048 $617.02
404680049 $617.02
404680050 $617.02
404680051 $617.02
404680052 $617.02
404680053 $617.02
404740001 $617.02
404740002 $617.02
404740003 $617.02
404740004 $617.02
404740005 $617.02
Assessor's
Parcel
Number
Neighborhood
Amount
404740006 $617.02
404740007 $617.02
404740008 $617.02
404740009 $617.02
404740010 $617.02
404740011 $617.02
404740012 $617.02
404740013 $617.02
404740014 $617.02
404740015 $617.02
404740016 $617.02
404740017 $617.02
404740018 $617.02
404740019 $617.02
404740020 $617.02
404740021 $617.02
404740022 $617.02
404740023 $617.02
404740024 $617.02
404740025 $617.02
404740026 $617.02
404740027 $617.02
404740028 $617.02
404740029 $617.02
404740030 $617.02
404740031 $617.02
404740032 $617.02
404740033 $617.02
404740034 $617.02
404740035 $617.02
404740036 $617.02
404740037 $617.02
404740038 $617.02
404740039 $617.02
404740040 $617.02
404740041 $617.02
404740042 $617.02
404740043 $617.02
$520,569.18
06/12/24C-6
120

CITY OF HERCULES

DRAFT PROMISSORY NOTE

(City of Hercules General Fund to Hercules
Landscaping and Lighting Assessment District No. 2002-1 Victoria by the Bay)

Up to $449,090 July XX, 2024

FOR VALUED RECEIVED, the undersigned, the Hercules Landscape and Lighting Assessment District No. 2002-1 Victoria by the Bay (the “Borrower”) hereby promises to pay to the order of the City of Hercules General Fund (the “Holder”), the principal amount not to exceed Four Hundred Forty-Nine Thousand Ninety Dollars ($449,090), as set forth herein, plus interest thereon pursuant to Section 2 below.

1. Borrower’s Obligation. This promissory note (the “Note”) evidences the Borrower’s obligation to pay the Holder the total principal amount of up to Four Hundred Forty-Nine Thousand Ninety Dollars ($449,090). The Borrower shall use the proceeds of the loan provided by the Holder to eliminate the deficit fund balance. Future available funds from the Landscaping and Lighting Districts No. 2002-1 Victoria by the Bay are pledged as security for the repayment of this loan.

2. Interest. The principal balance of this Note shall bear zero interest.

3. Term and Repayment Requirements. The Term of this Note (the ”Term”) shall commence on July XX, 2024, and shall expire on July XX, 2034, or ten-year Term. Commencing on July XX, 2024, and on each July 1 thereafter throughout the Term, the Borrower shall make an annual payment to the Holder in the amount of up to Forty-Four Thousand and Nine Hundred Nine Dollars ($44,909). Upon the expiration of the Term, all remaining amounts, if any, due under this Note shall be immediately due and payable. Notwithstanding the foregoing, the Borrower shall have the right to prepay all or a portion of the principal and interest due under this Note without any charge or penalty being made therefor.

4. Terms of Payment. All payments due under this Note shall be paid in currency of the United States of America, which at the time of payment is lawful for the payment of public and private debts.

5. Miscellaneous Provisions. This Note may not be changed orally, but only by an arrangement in writing signed by the party against whom enforcement of any waiver, change, modification or discharge is sought with an approval action by the City Manager or Finance Director.
121

a) This Note shall be government by and construed in accordance with the laws of the State of California.

b) If any provision of this note is deemed unenforceable, the validity, legality and enforcement of the remaining provisions in this is not in any way affected or impaired hereby.

IN WITNESS WHEREOF, the undersigned has executed this Promissory Note as of the

Signed by:

__________________________________
Dante Hall, City Manager
City of Hercules

APPROVED AS TO FORM:

______________________
Patrick Tang, City Attorney
City of Hercules

122
CO

NSENT CALENDAR

AGENDA ITEMS

1. 22-922

2. 22-923

3. 22-929

4. 22-924
123
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, July 9, 2024
CLOSED SESSION - 6:00 P.M., REGULAR MEETING - 7:00 P.M.

In-Person in Council Chambers or to Listen only: Zoom ID: 892 5252 5361 Zoom Passcode: 157491 Zoom Phone Number: 1-669-900-6833 I. CLOSED SESSION – CALL TO ORDER - ROLL CALL - 6:00 P.M.

Council Member Grimsley was initially marked absent. She joined Closed Session late. An arrival time was not provided.

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:

Meeting went into Recess

1. 22-912 Pursuant to Government Code Section 54957(b) PUBLIC EMPLOYEE PERFORMANCE EVALUATION - Title:City Attorney

2. 22-913
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

22-922
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July 9, 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 Closed Session items. There was no final or reportable action on the items discussed in Closed Session.

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

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

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

XI. PUBLIC HEARINGS

1. 22-877
Mandatory Garbage/Solid Waste Disposal - Delinquent Accounts RECOMMENDATION:

Conduct a Public Hearing and upon conclusion, consider adopting a Resolution confirming the report of delinquent accounts and placing liens on said properties and special assessments upon property taxes pursuant to City of Hercules Municipal Code Section 5-2.01 to 5-2.16, Mandatory

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July 9, 2024City Council Meeting Minutes
Garbage/Solid Waste Disposal.

Staff Report - Garbage Liens
Attach 1 - Resolution
Attach 2- Lien List
Attachments:

City Manager, Dante Hall, Introduced the item. City Clerk, Eibleis Melendez, presented the item. No comments were provided by Council.

Mayor Romero opened the Public Hearing. No public comment. Mayor Romero closed the public hearing. Action was taken on this item.

MOTION: A motion was made by Council Member Kelley, seconded by Council Member Walker-Griffin, to adopt Resolution 24-045. 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. 22-904
Meeting Minutes for the Regular Meeting of June 25, 2024 Meeting Minutes for the Regular Meeting of June 25, 2024Attachments:

APPROVED

2. 22-909 Hercules Hub - Resolution of Support for Transit and Intercity Rail Capital Program Grants
RECOMMENDATION:

Adopt a resolution of support for the filing of joint Transit and Intercity Rail Capital Program (TIRCP) grants with the Capitol Corridor Joint Powers Authority (CCJPA) as the lead agency.

Staff Report - Hercules Hub Project TIRCP App
Attach 1 - Hercules Hub Resolution Local Support TIRCP
Attachments:

RESOLUTION 24-046 APPROVED
XIII. DISCUSSION AND/OR ACTION ITEMS

1. 22-905 Redevelopment Housing Successor and Business Loan Administration RECOMMENDATION:

Provide direction on the administration of housing and business loans issued by the former Hercules Redevelopment Agency. Authorize writing off loans that are uncollectible due to foreclosure, bankruptcy, or business

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July 9, 2024City Council Meeting Minutes
closure. Authorize staff to restructure non-performing loans that have overdue balances by negotiating amended loan agreements.

Staff Report - Housing Loan Administration Direction
Attach 1 - Resolution
Attach 2 - Appendix 1-Loan Program Summary
Attachments:

City Manager, Dante Hall, introduced the item. Finance Director, Edwin Gato, and a representative from RSG Solutions, presented. Council asked questions and provided comment. Director Gato and RSG provided a response. No public comment. Action was taken on this item.

MOTION: A motion was made by Council Member Grimsley, seconded by Council Member Walker-Griffin, to adopt Resolution 24-047. 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 -

2. 22-914
Authorization To Contract with Tripepi Smith For General Communications Support
RECOMMENDATION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute an agreement for an amount not to exceed $85,000 with Tripepi Smith for General Communications Support.

Staff Report - Contract With Tripepi Smith For General
Communciations Support
Attach 1 - Resolution
Attach 2 - TS Proposal for 2024-05 Hercules General communications Attachments:

City Manager, Dante Hall, introduced and presented the item. A representative from Tripepi Smith attended via Zoom to answer any questions. Council had no comments. No public comment. Action was taken on this item.

MOTION: A motion was made by Vice Mayor Bailey, seconded by Council Member Kelley, to adopt Resolution 24-048. The motion carried by the following vote:

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

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

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July 9, 2024City Council Meeting Minutes

3. 22-906 Queen Anne House Disposition
RECOMMENDATION:

Receive an informational update from staff; authorize staff to obtain an updated Historic Resource Evaluation (HRE) using existing funding from the Facility Maintenance fund; and provide any desired additional direction to staff regarding the disposition of the structure following completion of the HRE.

Staff Report - Queen Anne House Disposition
Attach 1- Queen Anne Historic Home for Removal Flyer
Attach 2 - Bill of Sale - Rockhead and Quarry
Attach 3 - Historic Resource Evaluation (M-Group, 2018) Attach 4 - Email from Rockhead and Quarry
Attach 5 - M-Group memo
Attach 6 - Rincon Consulting Proposal
Attachments:

Community Development Director, Tim Rood, introduced and presented the item. Council asked questions and provided comment. Director Rood provided a response. No public comment. Action was taken on this item.

MOTION: A motion was made by Vice Mayor Bailey, seconded by Council Member Kelley, to proceed with option two, an updated historic resource evaluation for demolition, as discussed in the Staff Report. The motion carried by the following vote:

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

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

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

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

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

1. Regional Committee

2. City Council Committees and Subcommittees

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

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July 9, 2024City Council Meeting Minutes
announcements.

1. Regional Committee
No reports were provided

2. City Council Committees and Subcommittees
No reports were provided

3. Commission Liaisons
No reports were provided
Community Events-
Council Members reported out on events they attended throughout the CIty and County.

Future Agenda Item Requests-
There were no future agenda item requests
XVI. ADJOURNMENT
Mayor Romero adjourned the meeting at 7:45 P.M.
_________________________________
Dan Romero, Mayor
Attest:
_______________________________
Eibleis Melendez, City Clerk

129
CO

NSENT CALENDAR

AGENDA ITEM

2. 22-923
130

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of July 23, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Michael Roberts, Public Works Director/City Engineer SUBJECT: Annual Fiber Optic Broadband Report
RECOMMENDED ACTION:

Receive report.

BACKGROUND:

The City Council has recognized the importance of providing high speed broadband access to local residents and businesses. New developments provide an opportunity to install fiber to the premises (“FTTP”) during initial construction. Consistent with Council policy, staff has made it a priority for advanced broadband infrastructure to be included in development plans and approvals to allow for cost effective build -out of fiber infrastructure. High speed data transmission capabilities are believed to be an important consideration for prospective tenants who need or desire high speed data capacity for business or personal needs.

ANALYSIS:

Staff remains vigilant for cost effective opportunities to build a future fiber backbone. As noted in the Fiscal Impact section below, $50,000 for joint trench fiber optic infrastructure is available at the City Manager’s discretion to ensure the City can be responsive as opportunities occur in the future. Such opportunities could occur during street excavation projects involving repair , replacement, or installation of underground utilities including water, sewer, gas and electricity infrastructure. As part of this process, Council will be updated any time conduit or other fiber infrastructure is installed. 22-923
131

FISCAL IMPACT:

As directed by Council at their July 26, 2016 meeting, $50,000 from the Capital Projects Fund has been set aside for the installation of fiber optic broadband infrastructure within the City rights-of-way as cost effective opportunities arise. To date, opportunities such as joint trench installations or utility borings in streets have not proved fruitful and the $50,000 remains available.

132
CO

NSENT CALENDAR

AGENDA ITEM

3. 22-929
133

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of July 23, 2024
TO: Mayor and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
Edwin Gato, Director of Finance
SUBJECT: Approve Pay and Benefit Plans for Executive, Mid-Management & Non-Represented Pay Plans
RECOMMENDED ACTION:

Staff recommends that the City Council Adopt a Resolution Approving Pay and Benefit Plans for Executive, Mid-Management, and Non-Represented Employee Groups and authorize the City Manager to execute the Plans for a one-year term starting July 1, 2024, and ending June 30, 2025.

DISCUSSION:

Existing pay and benefit plans with executive, mid -management, and non-represented employee groups have terms that end June 30, 2024. The City has been engaged in a consultation process with the executive, mid-management, and non-represented employee groups. The City Council has directed the City Manager, serving as the City’s labor negotiator, in closed sessions. Consultations with the executive, mid -management, and non-represented employee groups have been completed; proceeding with the revisions to the Pay Plans for the executive, mid-management, and unrepresented groups is timely. A summary of the changes proposed by the employee groups is set forth below:

Group Summary of Terms
Total # of
employees Duration
3% COLA effective July 1, 2024
2% One-Time non-PERSable retention payment
3% COLA effective July 1, 2024
2% One-Time non-PERSable retention payment
3% COLA effective July 1, 2024
2% One-Time non-PERSable retention payment
Executive
Mid-Management
Unrepresented
8 3
One-Year
One-Year
One-Year6
22-929
134

This recommendation aligns with the City’s goals of a balanced budget and continued fiscal prudence while also continuing to align the City as a competitive employer.

FISCAL IMPACT:

Approval of these new labor-related items will result in costs, both ongoing and one-time.

The proposed Pay and Benefit Plans cover one year. The costs for the employees covered through these approvals are illustrated below.

The adopted FY 24-25 Budget provides an amount for both ongoing and one-time costs of 3% Ongoing and 2% One-time Retention Bonus. Available ongoing and one-time monies are sufficient for FY 2024-25 to meet the obligations. The table below breaks out the costs of the proposed increase, and the Cost-of-Living Adjustment (COLA) increases are included in the adopted FY 2024-25 Annual Budget:

ATTACHMENTS:

1. Resolution

2. Executive Pay and Benefit Plan

3. Mid-Management Pay and Benefit Plan

4. Non-Represented Pay and Benefit Plan
Group
General
Fund
Other
Funds Total
General
Fund
Other
Funds Total
Executive $42,000 $15,000 $57,000 $22,000 $8,000 $30,000 Mid-Managers 9,000 6,000 15,000 4,000 4,000 8,000 Unrepresented 15,000 3,000 18,000 8,000 2,000 10,000 Total $66,000 $24,000 $90,000 $34,000 $14,000 $48,000
3% COLA - Ongoing 2% Retention Bonus - One-Time
135

RESOLUTION NO. 24-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES APPROVING

PAY AND BENEFIT PLANS FOR EXECUTIVE, MID -MANAGEMENT, AND NON- REPRESENTED EMPLOYEE GROUPS AND APPROVING UPDATED FY 2024-25

SALARY SCHEDULE S FOR EXECUTIVE, MID -MANAGEMENT, AND NON- REPRESENTED EMPLOYEE GROUPS.

WHEREAS, the City has consulted with the executive, mid -management and unrepresented employee groups;

WHEREAS, the City desires to modify the Pay and Benefit Plans of the Executive, Mid - Management and Non-Represented Employee Groups;

WHEREAS, the effective date of the Pay and Benefit Plans and Salary Schedules for all full-time employees is July 1, 2024;

WHEREAS, approval of these new labo r related items will result in both on -going and one-time costs;

WHEREAS, the on-going costs will be $90,000 and one-time costs will be $48,000;

WHEREAS, the on-going costs and the one -time costs are available in the FY 2024-25 budget;

WHEREAS, FY 202 4-25 salary schedules for executive, mid -management and non - represented employee groups are attached hereto as “Exhibit A”;

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

Section 1. The City Council hereby approves and authorizes the City Manager to sign and implement the Pay and Benefit Plan with the Executive, Mid -Management and Non-Represented employee groups , covering the period of July 1, 2024, to June 30, 2025, attached hereto as Exhibit “A”.

Section 2. The City Council hereby adopts the salary schedules for Executive, Mid-Management and Non -Represented employee groups , attached hereto as Exhibit “A”.

136

The foregoing Resolution was duly and regularly adopted at a special meeting of the City Council of the City of Hercules held on the 23rd of July 2024, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Dan Romero, Mayor

ATTEST:

Eibleis Melendez, City Clerk
137

PAY & BENEFITS PLAN FOR

EXECUTIVE LEVEL EMPLOYEES

OF THE CITY OF HERCULES

Effective July 1, 2024 through June 30, 2025
City Council Resolution No. XX-XX
138
2 Table of Contents
ARTICLE I. TERMS ........................................................................................................ 3 SECTION 1 - DEFINITION OF TERMS ...................................................................................................... 3 ARTICLE II. COMPENSATION ........................................................................................ 4-8 SECTION 1 - PAY PLAN (Pay Plan- Exhibit A – Pg. 17) ............................................................................ 4 SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE ...................................................... 4 SECTION 3 - OTHER PAY ADJUSTMENTS .............................................................................................. 4 SECTION 4 - CREDIT TOWARD CITY SERVICES .................................................................................... 5 SECTION 5 - UNIFORM ALLOWANCE ...................................................................................................... 5 SECTION 6 – MANAGEMENT INCENTIVE ............................................................................................... 5 SECTION 7 - EDUCATION REIMBURSEMENT ......................................................................................... 5 SECTION 8 - LONGEVITY PAY .............................................................................................................. 5-6 SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION ............................................... 6 SECTION 10 - COMPENSATORY TIME OFF ............................................................................................ 6 SECTION 11 - SUPPLEMENTAL OPTIONAL MONIES ALLOWANCE FOR RETIREES (SOMAR) ......... 6-8 SECTION 12 – COMPUTER LOAN PROGRAM ........................................................................................ 8 SECTION 13 – DEFERRED COMPENSATION .......................................................................................... 8 ARTICLE III. RETIREMENT BENEFITS ......................................................................... 8-9 SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN ......................................... 8-9 ARTICLE IV. INSURANCE BENEFITS ......................................................................... 9-11 SECTION 1 - INSURANCE .................................................................................................................... 9-11 ARTICLE V. SICK LEAVE BENEFITS .......................................................................... 11 SECTION 1 - SICK LEAVE ACCRUAL PLAN ........................................................................................... 11 ARTICLE VI. HOLIDAYS, VACATION AND OTHER LEAVE BENEFITS ................. 11-15 SECTION 1 – HOLIDAYS .................................................................................................................... 11-12 SECTION 2 - VACATION ......................................................................................................................... 12 SECTION 3 - RETIREMENT HEALTH SAVINGS PLAN ...................................................................... 12-13 SECTION 4 - BEREAVEMENT LEAVE .................................................................................................... 13 SECTION 5 - ADDITIONAL LEAVES ................................................................................................... 13-15 ARTICLE VII. SEPARATION ....................................................................................... 15-16 SECTION 1 – SEPARATION FROM CITY SERVICES ............................................................................. 15 SECTION 2 – SAVINGS CLAUSE ................................................................................................................. 16 SECTION 3 - IMPLEMENTATION AND DURATION ................................................................................ 16 *NOTE: ARTICLE II, SECTION 1 (Pay Plan- Exhibit A –
Pg. 17)
139
3 ARTICLE I. TERMS

SECTION 1 - DEFINITION OF TERMS

1.1 The following terms, whenever used in the Plan, shall have the meaning set forth in this Section:

A. CITY: Shall mean the City of Hercules

B. CITY MANAGER: Shall mean the City Manager or his/her designee.

C. DAYS: Shall mean calendar days except where working days are expressly specified.

D. EMPLOYEE: Shall mean an individual who serves full-time and who is appointed to a full-time Management position.

E. EXECUTIVE LEVEL EMPLOYEE: Shall mean the City Manager, individual appointed to Executive Level employee level positions by the City Manager, and elected officials.

F. FISCAL YEAR: Shall mean the 12-month period from July 1 through June 30.

G. PUBLIC EMPLOYEES’ PENSION REFORM ACT (PEPRA): Shall mean the California Public Employees’ Pension Reform Act of 2013, including AB 340 (Furutani, Chapter 296, Statutes of 2012) and AB 197 (Buchanan, Chapter 297, Statutes of 2012) and all subsequent amendments.

H. PERS: Shall mean the California Public Employees’ Retirement System.

I. PUBLIC AGENCY EXPERIENCE: shall mean full-time service in an agency that participates in a public retirement plan.

J. RETIREE: Shall mean a former employee of the City who has been granted and is receiving a regular service or disability retirement from PERS.

K. SERIOUS INJURY OR ILLNESS: Shall mean, for the purposes of benefits provided by Article V, Section 1.04 herein, an injury or illness certified by the City to require a recuperation period of 30 days or more.

L. WORK PERIOD: Shall mean seven consecutive, regular recurring 24-hour periods equal to 168 hours, designated by the City Manager.

M. YEAR: Shall mean fiscal year, except where calendar year is expressly specified. 140
4 ARTICLE II. COMPENSATION

SECTION 1 - PAY PLAN

1.1 Effective July 1, 2024 through June 30, 2025, the pay plan for Executive Level employees is set forth on Exhibit “A”, attached hereto.

SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE

2.1 On the basis of the evaluation of an employee’s performance, an employee shall be eligible for a pay rate advancement added to his/her base pay of an amount between zero and 10 percent, not to exceed the top of the salary range, effective at the beginning of the pay period following an employee’s anniversary date.

SECTION 3 - OTHER PAY ADJUSTMENTS

3.1 Bonus Pay – As recognition of a specific, non-permanent work effort or in recognition of ongoing job performance which has consistently exceeded the highest standards, Bonus Pay may be awarded to an Executive Level employee by the City Manager. The range of this Bonus Pay may be from 2% to 10% of the Executive Level employee's annual salary and be paid in one lump sum payment. Executive Level employees have the option of depositing any such bonus payment into their 457 Deferred Compensation Plan or 401A Plan, subject to plan limits.

This benefit is suspended for the term of this Pay Plan.

3.2 Assistant City Manager – The City Manager may designate one of the Executive Level employees to also serve as Assistant City Manager. Each Executive Level Employee will have a separate job classification for their current classification/Assistant City Manager. This separate classification for each Executive Level Employee will have a salary table associated with it to include a 5% salary increase to each step. When an Executive Level Employee is assigned the designation of Assistant City Manager that employee shall receive the pay rate listed in the Executive Level employees separate job classification and salary schedule that includes Assistant City Manager. If another Executive Level employee is designated to serve as Acting Assistant City Manager if the Assistant City Manager is unavailable for a full day or more, the designated Executive Level employee shall receive the pay rate listed in the Executive Level Employees separate job classification and salary schedule that includes Assistant City Manager at the same step they currently hold.

SECTION 4 - CREDIT TOWARD CITY SERVICES

4.1 Each Executive Level employee shall receive up to $300 per year non-cash credit which may be applied to the cost of any City program fees incurred by the Executive Level employee or immediate family member. Such credit is not transferable and cannot be converted to cash. This credit shall only apply to services provided directly by the City and not to any third-party service provider. 141
5 This benefit is suspended for the term of this Pay Plan.

SECTION 5 - UNIFORM ALLOWANCE

5.1 The Police Chief shall be entitled to an annual clothing allowance of $900.00 ($75.00/month) as payment for such maintenance and replacement. Such compensation shall be made semi-annually during the second pay period in January and the second pay period in July. Payment shall be made by a separate check and not as part of a regular paycheck. Employees shall become eligible to receive the first semi-annual payment following their first anniversary date. With respect to the time between the employee’s first anniversary date and the semi-annual payment, the allowance will be prorated on a monthly basis with an employee having to work more than sixteen (16) days to receive payment for that month. The uniform allowance is considered a prospective payment and there shall be no payment or reimbursement upon separation from City service.

SECTION 6 – MANAGEMENT INCENTIVE

6.1 A Management Incentive of $200 per month shall be provided to Employees appointed to Executive Level classes who are not assigned a City vehicle for use of their personal vehicle and for use of personal mobile phones to conduct City Business.

6.2 Any employee granted a City vehicle for his/her exclusive use shall not receive a car allowance or mileage reimbursement payments.

SECTION 7 - EDUCATION REIMBURSEMENT

7.1 Executive Level employees shall be eligible to receive up to $4,000 per fiscal year reimbursement of expenditures by the Executive Level employee on tuition, books, travel and any other costs associated with their successful completion of any professional or educational program approved by the City Manager. This benefit shall be funded at the rate of $30,000 per year and is available to Executive Level employees on a first come, first served basis. Once the total annual benefit amount of $30,000 is reached, the benefit is no longer available to any Executive Level employee until the next fiscal year.

SECTION 8 - LONGEVITY PAY

8.1 Executive Level non-sworn employees are eligible to receive Longevity Pay based on number of years of service. In addition to an employee’s base salary, exclusive of all premium and other pays, each employee shall receive a Longevity Pay added to the employee’s base salary after the completion of:

At 7 years of service: $200 per month
At 10 years of service: $300 per month
At 14 years of service: $400 per month
At 16 years of service: $500 per month
142
6 Executive Level sworn employees are eligible to receive Longevity Pay calculated as a percentage of their salary and the city will make the payments in 26 bi-weekly installments. The calculations, based on total sworn public service time will be as follows:

At 5 years of service: 2% of salary
At 10 years of service: 4% of salary
At 15 years of service: 6% of salary
At 20 years of service: 8% of salary
At 25 years of service: 10% of salary

8.2 The effective date of a Longevity Pay increase shall be the beginning of the pay period following the date of eligibility. The computation of Longevity Pay increases shall not be cumulative.

SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION

9.1 Upon retirement or separation from City employment Executive Level employees shall receive cash out equivalent for any eligible unused leave balances. Separating Executive Level employees shall have the option of receiving cash out or depositing the unused leave balance into their 457 Deferred Compensation Plan, subject to Federal law plan limits.

SECTION 10 - COMPENSATORY TIME OFF

10.1 Compensatory Time-Off (CTO) is normally not accrued for exempt employees; however, should CTO be on the employer's books for reasons such as change in position or a carryover from other terms and conditions with the employer, it will qualify as eligible for conversion to either the Executive Level employee’s 401A or 457 Plan. Any such conversion must occur within 30 days of appointment.

SECTION 11 - SUPPLEMENTAL OPTIONAL MONIES ALLOWANCE FOR RETIREES (SOMAR)

11.1 The City will provide an optional monetary per month for safety employees and non- safety employees with an annual three percent adjustment on January 1st of each year to employees who retire as regulated by the Public Employee’s Retirement System. To be eligible for the optional monies, an employee must retire as follows:

1. Service Retirement: Employees who have served the City for at least ten (10) consecutive years immediately prior to retirement and are at least fifty (50) years old when they separate service from the City.

2. Disability Retirement: Employees who retire with a disability retirement are not required to be a certain age but must have at least twenty (20) years of service with the City.
143
7 11.2 To be eligible for the optional money allowance, employees must also have the minimum amount of sick leave on the books, as outlined in the chart below. If an employee has below the amount of sick leave required for their years of service, then they will only be eligible for the percentage paid equivalent to the amount of sick leave they do have on the books.

Years of
Service
Amount of sick leave hours on the books
on the day employee separates service
Percentage of Optional
Money Available
10 480 50
11 528 55
12 576 60
13 624 65
14 672 70
15 720 75
16 768 80
17 846 85
18 864 90
19 912 95
20 960 100
21 960 100
22 960 100
23 960 100
24 960 100
25 No minimum amount required 100

11.3 Employees must retire within one hundred twenty (120) days of separation from City employment to be eligible to receive the optional money allowance. In addition, employees who separate service from the City of Hercules, but do not retire as a PERS annuitant, shall not be eligible for medical retirement under this program.

11.4 Retiree Reaches Age 65 – The City will pay a portion of the optional money to a retiree until the retiree reaches age 65, upon which they are required to enroll in Medicare. At that time, the optional money will drop to an amount equivalent to the Kaiser Supplemental to Medicare rate through PERS. The retiree will be eligible for the same percentage of the Supplemental Optional Monies as they were eligible for under the Basic Optional Monies plan. Employees who are not eligible for Medicare must provide the City proof that they are not eligible for Medicare, either through their own employment history or their spouse’s and after providing such proof, the city will continue to pay the percentage of the Basic Optional Monies Plan. If proof is not provided, the City will automatically begin paying the Supplemental Optional Monies Plan percentages.

This benefit, which is effective January 1, 2001, is expected to last into perpetuity. The funds being established for this program may not be used by the City or Executive Level employees for any purpose other than what is expressly stated in this section of the Pay Plan. If in the future the City and Executive Level employees mutually agree to end or modify this benefit, they can do so only for active employees. Any retiree who is currently receiving this benefit will continue to receive the benefit as stated in the Pay Plan 144
8 that was in effect at the time of their retirement. Conversely, if the City and Executive Level employees increase this benefit, they can do so only for active employees and retiree benefits will remain the same as it was when they retired.

The City shall provide to the Executive Level employees an annual statement of prior year balances in the medical retirement fund no later than December 31st of each year.

11.5 Payment will be made on a bi-annual basis. The optional money allowance for the months of January through June will be made the third week in July; July through December will be paid the third week in January of each year. Checks will be mailed to the address on file. Supplemental Optional Money payments are subject to applicable Federal and State Income Tax regulations.

SECTION 12 - COMPUTER LOAN PROGRAM

12.1 Each employee is eligible to participate in the City of Hercules Loan Program for Employee Purchase of a Personal Computer, tablet, software or hardware. Maximum loan amount is $2,500 and may not be more than one loan outstanding at any time.

No interest will be charged by the City on loans under this program.

SECTION 13 – DEFERRED COMPENSATION

13.1 401A Deferred Compensation Plan: All Executive Level employees shall receive an employer contribution equivalent to 4% of their salary from the City, deposited into the City sponsored 401A Deferred Compensation Plan, consistent with the limits, policies and conditions established by the ICMA-RC and Federal Tax Laws.

13.2 457 Deferred Compensation Plan: All Executive Level employees may make voluntary contributions to the ICMA 457 Deferred Compensation Plan through payroll deduction.

In addition, all Executive Level employees shall receive an employer contribution equivalent to 5% of their salary on a one-to-one match deposited into their ICMA 457 Deferred Compensation Plan through payroll deduction subject to the limits, policies and conditions established by the ICMA and Federal Tax laws.

ARTICLE III. RETIREMENT BENEFITS
SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN

1.1 The City agrees to provide all Executive Level employees with retirement benefits under the terms of its current Retirement Plan with CalPERS.

1.2 All sworn personnel members hired on or prior to December 11, 2011 shall receive PERS retirement benefits computed at the highest formula, to include final year benefit formula, received by any public safety bargaining unit within the City. Those sworn personnel hired after December 11, 2011 and prior to January 1, 2014 shall receive the PERS benefit formula of 3%@55.

Unrepresented non-public safety employees hired prior to January 1, 2013 will pay 145
9 the 7% employee percentage of PERS contributions. The current total employee percentage is 7%. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate. Unrepresented public safety employees hired prior to January 1, 2013 will pay the 9% employee percentage of PERS contributions. The current total employee percentage is 9%.

Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.3 Non-public safety Executive Level employees hired prior to January 1, 2014 will pay the 7% employee percentage of PERS contributions. The current total employee percentage is 7%. Effective October 21, 2108, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate. Public safety Executive Level employees hired prior to January 1, 2014 will pay the 9% employee percentage of PERS contributions. The current total employee percentage is 9%.

Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.4 The PERS benefit formula and percentages paid by any Executive Level employee will change for all newly hired Executive Level employees on or after January 1, 2014 who are not already in a PERS recognized retirement system, in accordance with AB 340, signed into law on September 12, 2012. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.5 Sworn personnel hired on or after January 1, 2014 shall receive the PERS benefit formula of 2.7%@57, shall contribute 50% of the total annual normal cost of their pension benefit to the pension plan as determined by the City’s actuary and shall have their final compensation based on the employee’s highest annual compensation earnable averaged over a consecutive 36-month period. The employee contribution rate for new sworn members is 11.50%. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.6 Non-public safety personnel hired on or after January 1, 2014 shall receive the PERS benefit formula of 2%@62, shall contribute 50% of the total annual normal cost of their pension benefit to the pension plan as determined by the City’s actuary and shall have their final compensation based on the employee’s highest annual compensation earnable averaged over a consecutive 36-month period. The employee contribution rate for new non-sworn members is 6.25%. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

ARTICLE IV. INSURANCE BENEFITS

SECTION 1 - INSURANCE

1.1 The City’s contribution towards the employee’s health premium will equal the Kaiser rate for the prior calendar year plus the first 3% of the rate increase at each level of coverage.

The employee shall contribute a maximum of up to 3% of the rate increase and the City 146
10 will be responsible for rate increases above 6%.

1.1 If an Executive Level employee elects no health coverage, and can demonstrate to the City, on an annual basis or any other time upon request, that the Executive Level employee has alternative health care coverage, the Executive Level employee shall be entitled to any one of the following options:

1. The City will pay 50% of the eligible contribution into the Executive Level employee's 457 Plan account; or

2. The City will pay to the Executive Level employee directly 50% of the eligible contribution in cash; or

3. At the Executive Level employee's option, the City will pay a portion of the eligible contribution to increase the Executive Level employee's supplemental life insurance coverage and the Executive Level employee will receive the remainder of the eligible contribution under either option one or two above.

If an Executive Level employee's alternative health coverage is lost due to unforeseen circumstances, the Executive Level employee will upon request be covered by the City's health plan, subject to carrier approval.

1.2 Dental/Vision Insurance – The City will pay for the entire cost of all dental and vision insurance premiums for Executive level employees and their eligible dependents.

1.3 Life Insurance and AD&D - The City agrees to provide Executive Level employees $100,000 term life insurance and accidental death and dismemberment insurance at no cost to the Executive Level employee. Additional coverage on the same policy may be purchased by individual Executive Level employees through approved payroll deduction.

1.4 Short Term and Long- T e r m Disability Insurance - Executive Level employees shall receive long-term disability insurance consistent with the highest level of similar coverage received by any bargaining unit in the City, at no cost to the Executive Level employee.

1.5 Employee Assistance Plan - The City agrees to continue an Employee Assistance Counseling Program for all Executive Level employees. Individuals eligible for coverage include Executive Level employees and their household members. The term household members encompasses anyone living in the Executive Level employee's household and can include, as examples, spouse, domestic partners, grandparents, sister or grandchildren, and eligible dependents.

ARTICLE V. SICK LEAVE BENEFITS
SECTION 1 - SICK LEAVE ACCRUAL PLAN

1.1 The City shall provide paid sick leave benefits to all Executive Level employees which accrues at the rate of eight (8) hours per month. The maximum sick leave accrual for Executive Level employees is 2080 hours. If an Executive Level employee has 2080 hours (one year) of accrued unused sick leave, the Executive Level employee shall 147
11 cease earning sick leave until such time as their unused balance falls below 2080 hours.

1.2 Executive Level employees are not subject to sick leave accrual deduction for absences of less than one (1) day for sickness or personal medical appointments. This section does not preclude the City Manager from requiring Executive Level employees to report absences due to sickness of less than one (1) day.

ARTICLE VI. HOLIDAYS, VACATION AND OTHER LEAVE BENEFITS SECTION 1 – HOLIDAYS

1.1 Executive Level employees shall receive 14 designated holidays per year to be observed during each Fiscal Year (July 1-June 30). Executive Level employees normally scheduled to work on those days will be given nine and a half (9.5) hours off with pay provided they are eligible as set forth below. Floating Holidays may not be carried forward from one fiscal year to the next and are not compensable at the time of separation from City service.

The following days shall be recognized as holidays:

1. New Year’s Day

2. Martin Luther King, Jr. Day

3. Presidents Day

4. Memorial Day

5. Juneteenth

6. Independence Day

7. Labor Day

8. Veteran’s Day

9. Thanksgiving

10. The day after Thanksgiving

11. Christmas Eve

12. Christmas Day

13. Two Floating Holidays

Executive Level employees on approved vacation or sick leave shall not be charged vacation or sick leave for the Holiday.

1.2 Additional Christmas Holidays - Executive Level employees shall receive paid leave during the Christmas week consistent with the highest amount received by any bargaining unit in the City and as specifically designated by the City Manager. To be eligible for the Additional Christmas Holidays, Executive Level employees must have either worked or have been in approved paid leave status the equivalent of 15 or more full workdays during the previous thirty (30) days, exclusive of overtime. An Executive Level employee on approved vacation or sick leave shall not be charged vacation or sick leave if these Holidays fall during their approved leave.

SECTION 2 - VACATION
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12 Except as otherwise provided in this Section, employees shall accrue vacation as follows:

YEARS OF SERVICE COMPLETED ANNUAL ACCRUAL RATE
1 through 4 96 hours
5 through 9 120 hours
10 through 15 144 hours
16 through 19 160 hours
Beginning at 20 years 176 hours

2.1 Executive Level employees who reach 280 hours of accrued unused vacation shall cease earning any vacation until their vacation accrual falls below 280 hours.

2.2 On June 30 of each year the City shall automatically convert to cash all Executive Level employees' vacation leave accrual hours in excess of 240 and deposit the cash balance into the individual Executive Level employee's VantageCare Retiree Health Savings Program or into member’s previously established City-sponsored investment account.

2.3 Consistent with City policy employees may sell back up to 40 hours of their accrued vacation annually, one time during the fiscal year.

SECTION 3 - RETIREMENT HEALTH SAVINGS PLAN

3.1 VantageCare Retiree Health Savings (RHS) Program allows employees to accumulate assets to pay for health insurance and out-of-pocket expenses in retirement. The RHS Plan has a number of advantages including tax-deferred contributions, tax-deferred investment earnings, and tax-free withdrawals for eligible medical expenses for participants, their spouses and dependents.

3.2 The City shall automatically deposit 2% of each Executive Level employee's salary into the individual Executive Level employee's VantageCare Retiree Health Savings program. This benefit is paid from the Executive Level employee's salary and not by the City.

Executive Level employees will be permitted to cash out and deposit unused leave accruals in their Retiree Healthcare Savings Plan as described below.

On June 30 of each year the City shall automatically convert to cash, up to 40 hours each Executive Level employee's vacation leave accrual hours in excess of 240 and deposit the cash balance into the individual’s VantageCare Retiree Health Savings Program.

On June 30 of each year the City shall automatically convert to cash up to 40 hours of Executive Level employee's unused Executive Leave and deposit the cash balance into the individual’s VantageCare Retiree Health Savings program. 149
13 SECTION 4 - BEREAVEMENT LEAVE

4.1 Each employee shall receive 24 hours of bereavement leave per qualifying incident. A qualifying incident is defined as the death of an employee’s parent, step-parent, parents- in-law, grandparent, child, step-child, grandchild, spouse, domestic partner, legal dependent, sister or brother, brother/sister-in-law, legal guardian or with approval by Human Resources, a substitute family member for a person defined above.

4.2 In addition to the 24 hours of bereavement leave, Executive Level employees may use accrued unused vacation or sick leave to extend their bereavement leave up to a total of forty hours.

4.3 At the discretion of the City Manager, or designee, additional time may be taken by the Executive Level employee using their accrued leave. City paid bereavement leave shall be limited to a maximum of 24 hours per incident. In special cases, the City Manager or designee may approve additional bereavement leave or a leave of absence for bereavement in other circumstances.

SECTION 5 - ADDITIONAL LEAVES

5.1 Authorized Leaves of Absence without Pay

Requesting Leave – Upon request, the City Manager may grant an Executive Level employee an unpaid leave of absence not to exceed three (3) months. Such leave shall be discretionary and based upon the needs of the City. Whenever possible, such request shall be submitted at least six (6) weeks in advance. Approval of the request may be with specific terms and conditions negotiated by the City Manager and the Executive Level employee.

Extension of Leaves – During the period of the Leave of Absence, an Executive Level employee may request that the leave be extended by submitting such a request in writing to the City Manager stating the reason for the extension. Such a request may be approved or disapproved by the City Manager as described in the above section.

Under normal circumstances, no Leaves of Absence exceeding one (1) year will be granted.

5.2 Executive Leave – Executive Level employees shall receive 80 hours of Executive Leave on July 1 of each year as flexible compensation for the irregular duty periods, work in excess of 40 hours per week, and unpredictable demands on Executive Level employee’s time. Executive Leave must be used prior to June 30 of the fiscal year it was awarded or it is lost.

On June 30 of each year the City shall automatically convert to cash up to 40 hours of Executive Level employees unused Executive Leave and deposit the cash balance into the individual Executive Level employee’s VantageCare Retiree Health Savings program.

New Executive Level employees shall receive the following bank of hours of Executive Leave based on hire date as follows:
150
14 Date of Employment Credit for Executive Leave
July 1 through September 30 60 hours
Oct 1 through December 31 40 hours
Jan 1 through March 31 20 hours
April 1 through June 30 0 hours

5.3 Pregnancy Disability Leave - An Executive Level employee disabled due to pregnancy may be entitled to a leave of absence for the period of disability up to three months.

Executive Level employees on Pregnancy Disability Leave may utilize accrued unused sick leave and vacation during the leave period.

5.4 Family and Medical Leave Act of 1993 – The parties acknowledge the applicability of the Family and Medical Leave Act and the California Family Rights Act and intend to apply and implement this Agreement so as to comply with both State and Federal Law.

5.5 Voting Leave – Consistent with the provisions of California law, Executive Level employees shall be granted sufficient time to vote during municipal, primary and general elections.

5.6 Military Leave – The City shall comply with all State and Federal requirements regarding military duty leave.

5.7 Sabbatical Leave is provided as a major means by which Executive Level employees may promote their professional competence and so improve the performance of the organization through continued learning through study, research, writing, and travel.

Executive Level employees shall receive eighty (80) hours of Sabbatical Leave at the completion of seven years of service, which shall be on the eighth anniversary of their appointment as an Executive Level employee. Executive Level employees shall also receive eighty (80) hours of Sabbatical Leave upon the completion of fourteen years of service, which shall be on the fifteenth anniversary of their appointment as an Executive Level employee.

Executive Level employees may request and take Sabbatical Leave at any time after Sabbatical Leave Time has accrued, subject to prior approval by the City Manager.

Sabbatical Leaves must be taken within one year of accrual of Sabbatical Leave Time.

Sabbatical Leaves must be taken as a single period of ten consecutive business days or two periods of five consecutive business days each.

Supplemental Leave – The City Manager may award up to 40 hours of Supplemental Leave to any Executive Level employee each year, based on extended hours of work, job performance or other circumstances. Supplemental leave must be used within one calendar year of the date awarded or it is lost.

5.8 Jury Leave – The City provides jury duty leave with pay for all Executive Level employees who are called upon to serve for court jury duty according to the following provisions:

An Executive Level employee called for jury duty shall immediately provide the City Manager with a copy of the jury summons. If the Executive Level employee is 151
15 dismissed by the Court and three (3) hours or more remain in the workday, they are expected to report to work.

Executive Level employees' compensation for jury duty shall be limited to three months (63 workdays ). Executive Level employees whose jury service is in excess of three months (63 workd a y s ) may make a request to the City Manager or designee for continued payment. An Executive Level employee serving jury duty in excess of the above limit may use accrued unused vacation or other approved leave to continue pay.

ARTICLE VII. SEPARATION
SECTION 1 – SEPARATION FROM CITY SERVICES

1.1 Separation Notice Payment – Executive level employees who have more than three years of service and voluntarily separate from employment with the City and provide at least thirty (30) calendar days’ notice of separation shall receive a Separation Notice Payment. The Separation Notice Payment will be a sum equaling the most recent two weeks' regular compensation received by the Executive Level employee, including longevity pay and all other monetary incentive compensation received immediately prior to the date of notice. Executive Level employees who separate as a result of medical or other retirement shall not be eligible to receive this benefit.

Executive Level employees who have more than three years of service and are involuntarily separated from their employment with the City shall receive twelve weeks separation pay. Such separation pay shall include longevity pay and all other monetary incentive compensation the Executive Level employee received while employed by the City.

1.2 Confidentiality – In the event of termination of employment, the Parties agree that neither the City nor Executive Level employee shall, for a period of six months, make any statement, orally, in writing or otherwise, regarding the reasons for or circumstances of termination, to any person or organization other than:

a) In the case of the City: its legal counsel and/or City Council b) In the case of the Executive Level employee: to legal counsel and/or immediate family.

This provision shall expressly include communication to prospective future employers, unless otherwise required by law.

SECTION 2 – SAVINGS CLAUSE

2.1 The provisions of the Resolution are declared to be severable and if any article, section, subsection, sentence, clause or phrase contained herein shall for any reason be held invalid or unenforceable by a court of competent jurisdiction, such decision shall not affect the validity of the remaining articles, sections, subsections, sentences, clauses or phrases of this Resolution, but they shall remain in full force and effect. It is the intent of the City this Resolution stand notwithstanding the invalidity of any part hereof. 152
16 SECTION 3 - IMPLEMENTATION AND DURATION

3.1 Except as otherwise provided herein, this Pay and Benefits Plan shall be in full force and effect beginning July 1, 202 4 and shall remain in full force and effect until amended, repealed or superseded by action of the City Council through June 30, 2025. 153
DocuSign Envelope ID: C113FA3B-282B-4954-A366-1A6319DB3C6D

EXHIBIT “A”

The salaries in Table 1 below include a 3% Cost of Living Adjustment (COLA), effective July 1, 2024, with a one-time non-PERSable payment of 2.0% of their total gross salary for the 2023/24 fiscal year.

TABLE 1

Note: Executive Level employees are positions in the Unclassified Service.

*Rates based on 1976 annual hours worked

Executive Level employees shall work the number of hours necessary and sufficient to professionally discharge the duties and assignments. Executive Level employees are granted discretion regarding the times they start and finish their workdays, as well as the days they work.

The City may from time to time require specific work start or finish times or both. Executive Level employees shall work a minimum of thirty-eight (38) hours per week, except when vacation, sick or other approved leave is taken.

The standard workweek shall be thirty-eight (38) hours per week, worked in units of nine (9- 1/2) hours per day Monday through Thursday in a seven (7) day workweek which runs Saturday at midnight through the following Saturday at 11:59 pm.

TITLE GRADE STEP 1 STEP 6
Chief of Police 057 $189,650.24 $242,047.11
City Clerk 051 $119,511.95 $152,530.89
Finance Director 056 $175,602.22 $224,117.88
Parks & Recreation Director 054 $150,550.45 $192,144.77 Community Development Director 056 $175,602.22 $224,117.88 Public Works Director/City Engineer 057 $189,650.24 $242,047.11

ANNUAL SALARY
154

PAY & BENEFITS PLAN FOR

MID-MANAGEMENT EMPLOYEES

OF THE CITY OF HERCULES

Effective July 1, 2024 through June 30, 2025
City Council Resolution XX-XXX
155
2 TABLE OF CONTENTS
ARTICLE I. TERMS ................................................................................................................. 3 SECTION 1 - DEFINITION OF TERMS ................................................................................. 3 ARTICLE II. COMPENSATION ............................................................................................... 4 SECTION 1 - PAY PLAN (Pay Plan Exhibit A – pg. 16) ..................................................... 4 SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE ............................... 4 SECTION 3 - OTHER PAY ADJUSTMENTS ........................................................................ 4 SECTION 4 - INCENTIVE PAY ............................................................................................. 5 SECTION 5 - UNIFORMS AND SAFETY EQUIPMENT ..................................................... 5 SECTION 6 - WORKING IN A HIGHER CLASSIFICATION.................................................. 5 SECTION 7 - EDUCATION REIMBURSEMENT ................................................................... 6 SECTION 8 - LONGEVITY PAY ............................................................................................ 6 SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION ....................... 6 SECTION 10 - COMPENSATORY TIME OFF ...................................................................... 6 SECTION 11 - EDUCATIONAL INCENTIVE PAY.............................................................. 6-7 SECTION 12 - COMPUTER LOAN PROGRAM .................................................................... 7 SECTION 13 - DEFERRED COMPENSATION ..................................................................... 7 ARTICLE III. RETIREMENT BENEFITS .............................................................................. 7-8 SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN ................. 7-8 ARTICLE IV. INSURANCE BENEFITS .............................................................................. 9-10 SECTION 1 - INSURANCE ............................................................................................... 9-10 ARTICLE V. SICK LEAVE BENEFITS ............................................................................... 10 SECTION 1 - SICK LEAVE ACCRUAL PLAN ................................................................... 10 ARTICLE VI. HOLIDAYS, VACATION, AND OTHER LEAVE BENEFITS ...................... 10-14 SECTION 1 – HOLIDAYS ............................................................................................... 10-11 SECTION 2 - VACATION .................................................................................................... 11 SECTION 3 - WORKERS COMPENSATION ...................................................................... 12 SECTION 4 - BEREAVEMENT LEAVE ............................................................................... 12 SECTION 5 - ADDITIONAL LEAVES ............................................................................. 12-14 ARTICLE VII. SEPARATION ............................................................................................ 14-15 SECTION 1 - SEPARATION FROM CITY SERVICES........................................................ 14 SECTION 2 - SAVINGS CLAUSE .................................................................................. 14-15 SECTION 3 - IMPLEMENTATION AND DURATION .......................................................... 15 *NOTE: ARTICLE II, SECTION 1 (Pay Plan- Exhibit A – Pg. 16) 156
3 ARTICLE I. TERMS

SECTION 1 - DEFINITION OF TERMS

1.1 The following terms, whenever used in the Plan, shall have the meaning set forth in this Section:

A. CITY: Shall mean the City of Hercules

B. CITY MANAGER: Shall mean the City Manager or his/her designee.

C. DAYS: Shall mean calendar days except where working days are expressly specified.

D. EMPLOYEE: Shall mean the City Manager, individual appointed to Mid- Management employee level positions by the City Manager.

E. FISCAL YEAR: Shall mean the 12 month period from July 1 through June 30.

F. PUBLIC EMPLOYEES’ PENSION REFORM ACT (PEPRA): Shall mean the California Public Employees’ Pension Reform Act of 2013, including AB 340 (Furutani, Chapter 296, Statutes of 2012) and AB 197 (Buchanan, Chapter 297, Statutes of 2012) and all subsequent amendments.

G. PERS: Shall mean the California Public Employees’ Retirement System.

H. PUBLIC AGENCY EXPERIENCE: shall mean full-time service in an agency that participates in a public retirement plan.

I. RETIREE: Shall mean a former employee of the City who has been granted and is receiving a regular service or disability retirement from PERS.

J. SERIOUS INJURY OR ILLNESS: Shall mean, for the purposes of benefits provided by Article V, Section 1.04 herein, an injury or illness certified by the City to require a recuperation period of 30 days or more.

K. WORK PERIOD: Shall mean seven consecutive, regular recurring 24 hour periods equal to 168 hours, designated by the City Manager.

L. YEAR: Shall mean fiscal year, except where calendar year is expressly specified. 157
4 ARTICLE II. COMPENSATION

SECTION 1 – PAY PLAN

1.1 Effective July 1, 2024, through June 30, 2025, the pay plan for Mid-Management Employees is set forth on Exhibit “A”, attached hereto.

1.2 Lunch and Break Periods - The time allowed for an unpaid lunch break shall be a minimum of thirty minutes and no more than one hour throughout the course of the workday.

Full-time employees who are scheduled to work eight or more hours in a day shall be permitted one fifteen minute paid rest period at approximately the middle of the morning, and another fifteen minute paid rest period at approximately the middle of the afternoon. Rest periods shall not be taken at the end of a workday to permit an employee to leave early, nor may rest periods be used at the beginning of a workday to allow an employee to report for work after their regular assigned starting time.

This Pay Plan supersedes all applicable State law and regulations governing meal periods and rest periods.

SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE

2.1 On the basis of the evaluation of a Mid-Management Employee’s performance, an employee shall be eligible for a pay rate advancement added to his/her base pay of an amount between zero and 10 percent, not to exceed the top of the salary range, effective at the beginning of the pay period following an employee’s anniversary date.

SECTION 3 - OTHER PAY ADJUSTMENTS

3.1 Emergency Premium Pay – In an emergency preparedness situation, as designated by the City Manager or designee, all non-exempt employees required to work in excess of their regular assigned shift shall receive regular overtime pay. All exempt employees required to work in excess of their regular assigned shift shall receive premium pay at the rate of two (2) times the employee's regular base rate of pay for all hours worked in excess of assigned shift.

SECTION 4 - INCENTIVE PAY

4.1 At the discretion of the Department Director and approval by the City Manager employees may be awarded at any time during the fiscal year incentive pay not to exceed 5% for extraordinary job performance.
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11 SECTION 5 - UNIFORMS AND SAFETY EQUIPMENT

5.1 When the City requires employees to wear a uniform including shirts, pants, vest, hats or other apparel the City will provide the uniform. The City will provide laundering of the uniform through a uniform service company at no cost to the employee.

Non-sworn police employees shall continue to receive a $500.00 uniform purchase allowance consistent with Resolution 00-01. Payments shall be made twice a year in July and January.

5.2 The City will furnish all safety equipment that is required to perform the task or job at no cost to the employee.

5.3 The City will provide a reimbursement of up to $200.00 per fiscal year for one pair of safety shoes for the following classifications: Building and Code Enforcement Inspectors and Public Works division employee classifications.

Additional classifications may be approved for reimbursement by the department director as deemed necessary.

SECTION 6 - WORKING IN A HIGHER CLASSIFICATION

6.1 Eligible employees who are authorized in writing by the department head to work in a higher classification and salary range than their own and who are required to temporarily perform substantial duties and assume the responsibilities of the position will receive out of class pay. To be eligible for out of class pay, employees assigned to work in a higher classification must meet the minimum qualifications of the assigned position. Employees will be eligible for work in a higher classification on the first workday in a higher classification.

6.2 Compensation for work in a higher class shall be at either five percent (5%) above said employees' existing salary rate or the hourly rate equal to the minimum rate as provided in the salary range for the designated position, whichever is higher. Any out of class work for which premium compensation is provided requires advance written approval by the City Manager or designee.

6.3 Additional Duties pay of 5% for when an employee assumes limited duties of a higher classification as approved by the City Manager.

SECTION 7 - EDUCATION REIMBURSEMENT

7.1 Employees shall be eligible to receive up to $4,000 per fiscal year reimbursement of expenditures by the Employee on tuition, books, travel and any other costs associated with their successful completion of any professional or educational program approved by the City Manager. This benefit shall be funded at the rate of $30,000 per year and is available to Employees on a first come, first served basis. Once the total annual benefit amount of $30,000 is reached, the benefit is no longer
159
12 available to any employee until the next fiscal year.

SECTION 8 - LONGEVITY PAY

8.1 Employees are eligible to receive Longevity Pay based on number of years of service.

In addition to an employee’s base salary, exclusive of all premium and other pays, each employee shall receive a Longevity Pay added to the employee’s base salary after the completion of:

10 years of service: $125 per month
14 years of service: $175 per month
16 years of service: $225 per month
25 years of service: $275 per month

8.2 The effective date of a Longevity Pay increase shall be the beginning of the pay period following the date of eligibility. The computation of Longevity Pay increases shall not be cumulative.

SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION

9.1 Upon retirement or separation from City employment, Employees shall receive cash out equivalent for any eligible unused leave balances. Separating Employees shall have the option of receiving cash out or depositing the unused leave balance into their 457 Deferred Compensation Plan, subject to Federal law plan limits.

SECTION 10 - COMPENSATORY TIME OFF

10.1 Compensatory Time Off (CTO) is normally not accrued for exempt employees, however should CTO be on the employer's books for reasons such as change in position or a carryover from other terms and conditions with the employer, after April 1, 2016, it will qualify as eligible for conversion to either the Employee’s 401A or 457 Plan. Any such conversion must occur within 30 days of appointment.

SECTION 11 - EDUCATIONAL INCENTIVE PAY

11.1 Upon approval of the City Manager, education incentive pay shall be paid in addition to regular pay when education is in addition to the minimum requirements of the job specifications in a related field. Proof of higher education must be from an accredited United States education institute and presented to the Human Resources Department for verification of degrees:

Associates Degree: $50 per month
Bachelor’s Degree: $100 per month
Master’s Degree $150 per month

Education pay shall be paid in 24 bi-weekly installments and shall be in addition to any other pay received under this Agreement.
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13 SECTION 12 - COMPUTER LOAN PROGRAM

12.1 To be eligible, employees must have completed their initial one year probation period with the City and must maintain a balance of up to 40 hours of vacation and/or compensatory time until the loan is paid in full. The house employees must maintain will vary depending on the amount borrowed.

12.2 Each employee is eligible to participate in the City of Hercules Computer Loan Program for Employee Purchase of a Personal Computer, tablet, software or hardware. Maximum loan amount is $2,500 and may not be more than one loan outstanding at any time. No interest will be charged by the City on loans under this program.

SECTION 13 - DEFERRED COMPENSATION

13.1 457 Deferred Compensation Plan: All Employees may make voluntary contributions to the ICMA 457 Deferred Compensation Plan through payroll deduction subject to the limits, policies and conditions established by the ICMA and Federal Tax Laws. In addition, all Mid Management Employees shall receive an employer contribution equivalent to 2.5% of their annual salary on a one-to-one match deposited into the ICMA 457 Deferred Compensation Plan.

ARTICLE III. RETIREMENT BENEFITS
SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN

1.1 The City agrees to provide all Employees with retirement benefits under the terms of its current Retirement Plan with CalPERS.

1.2 All sworn personnel members hired on or prior to December 11, 2011 shall receive PERS retirement benefits computed at the highest formula, to include final year benefit formula, received by any public safety bargaining unit within the City. Those sworn personnel hired after December 11, 2011 and prior to January 1, 2014 shall receive the PERS benefit formula of 3% @ 55.

1.3 Unrepresented non-public safety employees hired prior to January 1, 2013 will pay the 7% employee percentage of PERS contributions. The current total employee percentage is 7%. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

Unrepresented public safety employees hired prior to January 1, 2013 will pay the 9% employee percentage of PERS contributions. The current total employee percentage is 9%. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.4 Non-public safety Employees hired prior to January 1, 2014 will pay the 7% employee percentage of PERS contributions. The current total employee percentage is 7%.

Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate. Public Safety employees hired prior to January 161
14 1, 2014 will pay the 9% employee percentage of PERS contributions. The current total employee percentage is 9%. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer’s CalPERS Contribution Rate.

1.5 The PERS benefit formula and percentages paid by any Employee will change for all newly hired Employees on or after January 1, 2014 who are not already in a PERS recognized retirement system, in accordance with AB 340, signed into law on September 12, 2012.

1.6 Sworn personnel hired on or after January 1, 2014 shall receive the PERS benefit formula of 2.7%@57, shall contribute 50% of the total annual normal cost of their pension benefit to the pension plan as determined by the City’s actuary and shall have their final compensation based on the employee’s highest annual compensation earnable averaged over a consecutive 36-month period. The employee contribution rate for new sworn members is 11.50%. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.7 Non-public safety personnel hired on or after January 1, 2014 shall receive the PERS benefit formula of 2%@ 62, shall contribute 50% of the total annual normal cost of their pension benefit to the pension plan as determined by the City’s actuary and shall have their final compensation based on the employee’s highest annual compensation earnable averaged over a consecutive 36-month period. The employee contribution rate for new non- sworn members is 6.25%. Effective October 21,2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

ARTICLE IV. INSURANCE BENEFITS

SECTION 1 - INSURANCE

1.1 The City’s contribution towards the employee’s health premium will equal the Kaiser rate for the prior calendar year plus the first 3% of the rate increase at each level of coverage. The employee shall contribute a maximum of up to 3% of the rate increase and the City will be responsible for rate increases above 6%.

1.2 If an Employee elects no health coverage, and can demonstrate to the City, on an annual basis or any other time upon request, that the Employee has alternative health care coverage, the Employee shall be entitled to any one of the following options:

1. The City will pay 50% of the eligible contribution into the Employee's 457 Plan account; or

2. The City will pay to the Employee directly 50% of the eligible contribution in their paycheck effective the first day of the following month, provided all paperwork has been received by Human Resources; or

3. At the Employee's option, the City will pay a portion of the eligible contribution to increase the Employee's supplemental life insurance coverage and the Employee will receive the remainder of the eligible contribution under either option one or two above.
162
15 If an Employee's alternative health coverage is lost due to unforeseen circumstances, the Employee will upon request be covered by the City's health plan, subject to carrier approval.

1.3 Dental/Vision Insurance – The City will pay for dental insurance premiums and vision insurance premiums for eligible mid-management employees and their eligible dependents.

1.4 Life Insurance and AD&D - The City agrees to provide employees $40,000 term life insurance and accidental death and dismemberment insurance at no cost to the Employee. Additional coverage on the same policy may be purchased by individual Employees through approved payroll deduction.

1.5 Short Term and Long Term Disability Insurance - Employees shall receive long-term disability insurance consistent with the highest level of similar coverage received by any bargaining unit in the City, at no cost to the Employee.

1.6 Employee Assistance Plan - The City agrees to continue an Employee Assistance Counseling Program for all Employees. Individuals eligible for coverage include Employees and their household members. The term household members encompasses anyone living in the Employee's household and can include, as examples, spouse, domestic partners, grandparents, sister or grandchildren, and eligible dependents.

ARTICLE V. SICK LEAVE BENEFITS
SECTION 1 - SICK LEAVE ACCRUAL PLAN

1.1 The City shall provide paid sick leave benefits to all Employees which accrues at the rate of eight (8) hours per month. The maximum sick leave accrual for Employees is 2080 hours. If an Employee has 2080 hours (one year) of accrued unused sick leave, the Employee shall cease earning sick leave until such time as their unused balance falls below 2080 hours.

1.2 Sick leave is to be used primarily for illness, injury or medical appointments for the employee or an immediate family member which requires an employee to be absent from work. The immediate family of an employee is defined as: parents, step-parents, parents-in-law, spouse, domestic partner, child, step-child, brother, sister, grandparents, grandchildren, brother/sister-in-law, son/daughter-in-law, or legal guardian.

1.3 After three consecutive sick days the City may require an employee to submit a doctor's statement and/or other reasonable verification for the sick leave request.

1.4 Employees are not subject to sick leave accrual deduction for absences of less than one (1) day for sickness or personal medical appointments. This section does not preclude the City Manager from requiring Employees to report absences due to 163
16 sickness of less than one (1) day.

ARTICLE VI. HOLIDAYS, VACATION, AND OTHER LEAVE BENEFITS SECTION 1 – HOLIDAYS

1.1 Employees shall receive 14 designated holidays per year to be observed during each Fiscal Year (July 1-June 30). Employees normally scheduled to work on those days will be given nine and a half (9.5) hours off with pay provided they are eligible as set forth below. Floating Holidays may not be carried forward from one fiscal year to the next and are not compensable at the time of separation from City service.

The following days shall be recognized as holidays:

1. New Year’s Day

2. Martin Luther King, Jr. Day

3. Presidents Day

4. Memorial Day

5. Juneteenth

6. Independence Day

7. Labor Day

8. Veteran’s Day

9. Thanksgiving

10. The day after Thanksgiving

11. Christmas Eve

12. Christmas Day

13. Two Floating Holidays

Employees on approved vacation or sick leave shall not be charged for vacation or sick leave for the Holiday.

1.2 Additional Christmas Holidays - For the term of this Pay Plan and consistent with past practice, the majority of the City’s offices will continue to be closed during the Christmas week. In lieu of holiday pay, employees who were otherwise eligible for holiday pay described below can select to use any unused, accrued vacation, sick or compensatory time available in order to receive pay for these days. Alternatively, employees can choose to take unpaid leave during these three.

1.3 Pay for Working on a Designated Holiday – An employee who is required by the City to work on a day that is a designated holiday in Section 11.1 is observed shall be paid eight hours of Holiday pay and shall be paid for the hours actually worked on the Holiday at the rate of time and one-half (1½). In lieu of pay for the time worked on the designated Holiday, the employee may add the time worked on the Holiday to their Compensatory Time Off accrual at the rate of time and one-half (1½) times hours actually worked.

SECTION 2 - VACATION
164
17 2.1 Except as otherwise provided in this Section, employees shall accrue vacation as follows:

YEARS OF SERVICE

COMPLETED
ANNUAL

ACCRUAL RATE
1 through 4 96 hours
5 through 9 120 hours
10 through 15 144 hours
16 through 19 160 hours
Beginning at 20 years 176 hours

2.2 Employees who reach 280 hours of accrued unused vacation shall cease earning any vacation until their vacation accrual falls below 280 hours.

2.3 Consistent with City policy employees may sell back up to 40 hours of their accrued vacation annually, one time during the fiscal year.

SECTION 3 - WORKERS COMPENSATION

3.1 When an employee is on a leave of absence due to a worker's compensation claim all medical insurance will continue to be in force at no cost to the employee as long as the employee is on a City paid leave of absence.

SECTION 4 - BEREAVEMENT LEAVE

4.1 Each employee shall receive 24 hours of bereavement leave per qualifying incident. A qualifying incident is defined as the death of an employee’s parent, step-parent, parents-in-law, grandparent, child, step-child, grandchild, spouse, domestic partner, legal dependent, sister or brother, brother/sister-in-law, legal guardian or with approve by Human Resources, a substitute family member for a person defined above.

4.2 In addition to the 24 hours of bereavement leave, Employees may use accrued unused vacation or sick leave to extend their bereavement leave up to a total of forty hours.

4.3 At the discretion of the City Manager, or designee, additional time may be taken by the Employee using their accrued leave. City paid bereavement leave shall be limited to a maximum of 24 hours per incident. In special cases, the City Manager or designee may approve additional bereavement leave or a leave of absence for bereavement in other circumstances.

SECTION 5 - ADDITIONAL LEAVES

5.1 Authorized Leaves of Absence without Pay

Requesting Leave – Upon request, the City Manager may grant an Employee an unpaid leave of absence not to exceed three (3) months. Such leave shall be discretionary and based upon the needs of the City. Whenever possible, such request shall be submitted 165
18 at least six (6) weeks in advance. Approval of the request may be with specific terms and conditions negotiated by the City Manager and the Employee.

Extension of Leaves – During the period of the Leave of Absence, a Employee may request that the leave be extended by submitting such a request in writing to the City Manager stating the reason for the extension. Such a request may be approved or disapproved by the City Manager as described in the above section. Under normal circumstances, no Leaves of Absence exceeding one (1) year will be granted.

5.2 Administrative Leave – Each Mid-Management employee shall receive 80 hours of Administrative leave annually on July 1st of each year. Should an employee terminate or be terminated from employment with the City a prorated formula at six and two thirds hours per month will be taken for each month the employee did not earn the administrative leave.

Mid-Managers are required to attend and participate in the regular and special meetings of the City Council, the various City Council appointed Sub-Committees, Commissions, Committees and Boards and work in excess of 40 hours per week.

If the leave is not used by June 30 of each year, the unused balance will not carry forward. Administrative Leave must be taken as time off and is not compensable upon termination.

New mid-management employees will earn Administrative Leave on a prorated basis during their probationary period at six and two thirds hours per month.

5.3 Pregnancy Disability Leave - An Employee disabled due to pregnancy may be entitled to a leave of absence for the period of disability up to three months.

Employees on Pregnancy Disability Leave may utilize accrued unused sick leave and vacation during the leave period.

Family and Medical Leave Act of 1993 – The parties acknowledge the applicability of the Family and Medical Leave Act and the California Family Rights Act and intend to apply and implement this Agreement so as to comply with both State and Federal Law.

5.4 Family and Medical Leave Act of 1993 – The parties acknowledge the applicability of the Family and Medical Leave Act and the California Family Rights Act and intend to apply and implement this Agreement so as to comply with both State and Federal Law.

5.5 Voting Leave – Consistent with the provisions of California law, Employees shall be granted sufficient time to vote during municipal, primary and general elections.

5.6 Military Leave – The City shall comply with all State and Federal requirements regarding military duty leave.

5.7 Sabbatical Leave is provided as a major means by which Exempt Employees may promote their professional competence and so improve the performance of the organization through continued learning through study, research, writing, and travel. 166
19 Employees shall receive eighty (80) hours of Sabbatical Leave at the completion of seven years of service, which shall be on the eighth anniversary of their appointment as an Employee. Employees shall also receive eighty (80) hours of Sabbatical Leave upon the completion of fourteen years of service, which shall be on the fifteenth anniversary of their appointment as a Employee.

Employees may request and take Sabbatical Leave at any time after Sabbatical Leave Time has accrued, subject to prior approval by the City Manager. Sabbatical Leaves must be taken within one year of accrual of Sabbatical Leave Time. Sabbatical Leaves must be taken as a single period of ten consecutive business days or two periods of five consecutive business days each.

Supplemental Leave – The City Manager may award up to 40 hours of Supplemental Leave to any Employee each year, based on extended hours of work, job performance or other circumstances. Supplemental leave must be used within one calendar year of the date awarded or it is lost.

5.8 Jury Leave – The City provides jury duty leave with pay for all Employees who are called upon to serve for court jury duty according to the following provisions:

An Employee called for jury duty shall immediately provide the City Manager with a copy of the jury summons. If the Employee is dismissed by the Court and three (3) hours or more remain in the workday, they are expected to report to work.

Employees' compensation for jury duty shall be limited to three months (63 workdays).

Employees whose jury service is in excess of three months (63 workdays) may make a request to the City Manager or designee for continued payment. An Employee serving jury duty in excess of the above limit may use accrued unused vacation or other approved leave to continue pay.

ARTICLE VII. SEPARATION
SECTION 1 - SEPARATION FROM CITY SERVICES

1.1 Separation Notice Payment – Employees who have more than three years of service and voluntarily separated from employment with the City and provide at least thirty (30) calendar days’ notice of separation shall receive a Separation Notice Payment.

The Separation Notice Payment will be a sum equaling the most recent two weeks' regular compensation received by the Employee, including longevity pay and all other monetary incentive compensation received immediately prior to the date of notice. Employees who separate as a result of medical or other retirement shall not be eligible to receive this benefit.

Exempt Employees who have more than three years of service and are involuntarily separated from their employment with the City shall receive twelve weeks separation pay. Such separation pay shall include longevity pay and all other monetary incentive compensation the Employee received while employed by the City.

Non-Exempt Employees who have more than three years of service and are involuntarily separated from their employment with the City shall receive six weeks 167
20 separation pay. Such separation pay shall include longevity pay and all other monetary incentive compensation the Employee received while employed by the City.

1.2 Confidentiality – In the event of termination of employment, the Parties agree that neither the City nor Employee shall, for a period of six months, make any statement, orally, in writing or otherwise, regarding the reasons for or circumstances of termination, to any person or organization other than:

a) In the case of the City: its legal counsel and/or City Council b) In the case of the Employee: to legal counsel and/or immediate family.

This provision shall expressly include communication to prospective future employers, unless otherwise required by law.

SECTION 2 - SAVINGS CLAUSE

2.1 The provisions of the Resolution are declared to be severable and if any article, section, subsection, sentence, clause or phrase contained herein shall for any reason be held invalid or unenforceable by a court of competent jurisdiction, such decision shall not affect the validity of the remaining articles, sections, subsections, sentences, clauses or phrases of this Resolution, but they shall remain in full force and effect. It is the intent of the City this Resolution stand notwithstanding the invalidity of any part hereof.

SECTION 3 - IMPLEMENTATION AND DURATION

3.1 Except as otherwise provided herein, this Pay and Benefits Plan shall be in full force and effect beginning July 1, 2024 and shall remain in full force and effect until amended, repealed or superseded by action of the City Council through June 30, 2025. 168
10 EXHIBIT “A”

The salaries in Table 1 below include a 3% Cost of Living Adjustment (COLA), effective July 1, 2024, with a one-time non-PERSable payment of 2.0% of their total gross salary for the 2023/24 fiscal year.

TABLE 1

Note: Mid-Management employees are positions in the Unclassified Service.

*Rates based on 1976 annual hours worked

Mid-Management employees shall be thirty-eight (38) hours per week, worked in units of nine (9-1/2) hours per day in four (4) consecutive days in a seven (7) day workweek which runs Saturday at midnight through the following Saturday at 11:59 p.m. This supersedes the previous practice of a 40-hour week that is described below:

When practical or feasible an employee will be given no less than thirty (30) days written notice in advance of a change in their assigned regular work week or shift schedule. The assignment of work weeks and shifts will be based on seniority provided the employee in the department has the minimum qualifications to perform the work.

TITLE GRADE STEP 1 STEP 6
Recreation Manager 247 $91,062.97 $116,221.98
Senior Accountant 249 $100,396.45 $128,134.14
Public Works Superintendent 253 $122,032.57 $155,747.92

ANNUAL SALARY
169
13 170
14 171
15 172

PAY & BENEFITS PLAN FOR

NON-REPRESENTED EMPLOYEES

OF THE CITY OF HERCULES

Effective July 1, 2024 through June 30, 2025
City Council Resolution XX-XXX
173
2 Table of Contents
ARTICLE I. TERMS ................................ ................................ ................................ ........................ 3 SECTION 1 - DEFINITION OF TERMS ......................................................................................................... 3 ARTICLE II. COMPENSATION ............................................................................................................ 4 SECTION 1 - PAY PLAN (Pay Plan Exhibit A – pg 18) ................................................................................ 4 SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE ........................................................... 4 SECTION 3 - OTHER PAY ADJUSTMENTS .................................................................................................. 4 SECTION 4 - VEHICLE ASSIGNMENT ......................................................................................................... 4 SECTION 5 - UNIFORM ALLOWANCE ........................................................................................................ 5 SECTION 6 – WORKING IN A HIGHER CLASSIFICATION ........................................................................... 5 SECTION 7 - EDUCATION REIMBURSEMENT............................................................................................ 5 SECTION 8 - LONGEVITY PAY .................................................................................................................... 6 SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION ..................................................... 6 SECTION 10 - COMPENSATORY TIME OFF ........................................................................................... 6 SECTION 11 - SUPPLEMENTAL OPTIONAL MONIES ALLOWANCE FOR RETIREES (SOMAR) ................... 6 SECTION 12 - COMPUTER LOAN PROGRAM ............................................................................................ 8 SECTION 13 – DEFERRED COMPENSATION.............................................................................................. 8 ARTICLE III. RETIREMENT BENEFITS.................................................................................................. 9 SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN ................................................. 9 ARTICLE IV. INSURANCE BENEFITS .................................................................................................. 10 SECTION 1 - INSURANCE ......................................................................................................................... 10 ARTICLE V. SICK LEAVE BENEFITS .................................................................................................... 11 SECTION 1 - SICK LEAVE ACCRUAL PLAN ................................................................................................ 11 ARTICLE VI. HOLIDAYS, VACATION AND OTHER LEAVE BENEFITS ..................................................... 11 SECTION 1 - HOLIDAYS ............................................................................................................................ 12 SECTION 2 - VACATION ........................................................................................................................... 13 SECTION 3 - RETIREMENT HEALTH SAVINGS PLAN ............................................................................ 13 SECTION 4 - BEREAVEMENT LEAVE ........................................................................................................ 14 SECTION 5 - ADDITIONAL LEAVES .......................................................................................................... 14 ARTICLE VII. SEPARATION ............................................................................................................... 16 SECTION 1 – SEPARATION FROM CITY SERVICES ................................................................................... 16 SECTION 2 – SAVINGS CLAUSE ............................................................................................................... 16 SECTION 3 - IMPLEMENTATION AND DURATION ................................................................................. 17 *NOTE: ARTICLE II, SECTION 1 (Pay Plan- Exhibit A – Pg. 18) 174
3 ARTICLE I. TERMS

SECTION 1 - DEFINITION OF TERMS

1.1 The following terms, whenever used in the Plan, shall have the meaning set forth in this Section:

A. CITY: Shall mean the City of Hercules

B. CITY MANAGER: Shall mean the City Manager or his/her designee.

C. DAYS: Shall mean calendar days except where working days are expressly specified.

D. EMPLOYEE: Shall mean an individual who serves full-time and who is appointed to a full-time Management or Confidential position.

E. EMPLOYEE: Shall mean the City Manager, individual appointed to Employee level positions by the City Manager, and elected officials.

F. FISCAL YEAR: Shall mean the 12 month period from July 1 through June 30.

G. PUBLIC EMPLOYEES’ PENSION REFORM ACT (PEPRA): Shall mean the California Public Employees’ Pension Reform Act of 2013, including AB 340 (Furutani, Chapter 296, Statutes of 2012) and AB 197 (Buchanan, Chapter 297, Statutes of 2012) and all subsequent amendments.

H. PERS: Shall mean the California Public Employees’ Retirement System.

I. PUBLIC AGENCY EXPERIENCE: shall mean full-time service in an agency that participates in a public retirement plan.

J. RETIREE: Shall mean a former employee of the City who has been granted and is receiving a regular service or disability retirement from PERS.

K. SERIOUS INJURY OR ILLNESS: Shall mean, for the purposes of benefits provided by Article V, Section 1.04 herein, an injury or illness certified by the City to require a recuperation period of 30 days or more.

L. WORK PERIOD: Shall mean seven consecutive, regular recurring 24 hour periods equal to 168 hours, designated by the City Manager.

M. YEAR: Shall mean fiscal year, except where calendar year is expressly specified. 175
4 ARTICLE II. COMPENSATION

SECTION 1 - PAY PLAN

1.1 Effective July 1, 2024, through June 30, 2025, the pay plan for Non- Represented Employees is set forth on Exhibit “A”, attached hereto.

SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE

2.1 On the basis of the evaluation of an employee’s performance, an employee shall be eligible for a pay rate advancement added to his/her base pay of an amount between zero and 10 percent, not to exceed the top of the salary range, effective at the beginning of the pay period following an employee’s anniversary date.

SECTION 3 - OTHER PAY ADJUSTMENTS

3.1 Bonus Pay – As recognition of a specific, non-permanent work effort or in recognition of ongoing job performance which has consistently exceeded the highest standards, Bonus Pay may be awarded to an Employee by the City Manager. The range of this Bonus Pay may be from 2% to 10% of the Employee's annual salary and be paid in one lump sum payment. Employees have the option of depositing any such bonus payment into their 457 Deferred Compensation Plan or 401A Plan, subject to plan limits.

This benefit is suspended for the term of this Pay Plan.

3.2 Emergency Premium Pay – In an emergency preparedness situation, as designated by the City Manager or designee, all non-exempt employees required to work in excess of their regular assigned shift shall receive regular overtime pay as stated in Article

1.2. All exempt employees required to work in excess of their regular assigned shift shall receive premium pay at the rate of two (2) times the employee's regular base rate of pay for all hours worked in excess of assigned shift.

SECTION 4 - VEHICLE ASSIGNMENT

4.1 The City shall provide an unmarked vehicle to the Police Department Command staff.

The Commanders shall adhere to all city policy and procedures when utilizing a city owned vehicle. The Chief of Police or the City Manager may at any time revoke the vehicle privilege if a violation is identified.

SECTION 5 - UNIFORM ALLOWANCE

5.1 The City will compensate each safety employee $75.00 per month ($900 annually) as payment for such maintenance and replacement. Such compensation shall be made 176
5 semi-annually during the second pay period in January and the second pay period in July. Payment shall be made by separate check and not as part of a regular paycheck.

Employees shall become eligible to receive the first semi-annual payment following their first anniversary date. With respect to the time between the employee’s first anniversary date and the semi-annual payment, the allowance will be prorated on a monthly basis with an employee having to work more than sixteen (16) days to receive payment for that month. The uniform allowance is considered a prospective payment and there shall be no payment or reimbursement upon separation from City service.

SECTION 6 – WORKING IN A HIGHER CLASSIFICATION

6.1 Eligible employees who are authorized in writing by the department head to work in a higher classification and salary range than their own and who are required to temporarily perform substantial duties and assume the responsibilities of the position will receive out of class pay. To be eligible for out of class pay, employees assigned to work in a higher classification must meet the minimum qualifications of the assigned position. Employees will be eligible for work in a higher classification on the first workday in a higher classification.

6.2 Compensation for work in a higher class shall be at either five percent (5%) above said employees' existing salary rate or the hourly rate equal to the minimum rate as provided in the salary range for the designated position, whichever is higher. Any out of class work for which premium compensation is provided requires advance written approval by the City Manager or designee.

6.3 Unrepresented Employees who are working in a higher classification that is outside the scope of this Agreement shall be covered by the general terms and conditions of employment of the higher classification. All wages, including sick, vacation, comp time and holiday shall be paid at the out of class pay rate.

6.4 Additional Duties pay of 5% for when an employee assumes limited duties of a higher classification as approved by the City Manager.

SECTION 7 - EDUCATION REIMBURSEMENT

7.1 Employees shall be eligible to receive up to $4,000 per fiscal year reimbursement of expenditures by the Employee on tuition, books, travel and any other costs associated with their successful completion of any professional or educational program approved by the City Manager. This benefit shall be funded at the rate of $30,000 per year and is available to Employees on a first come, first served basis.

Once the total annual benefit amount of $30,000 is reached, the benefit is no longer available to any Employee until the next fiscal year.
177
6 SECTION 8 - LONGEVITY PAY

8.1 Non-sworn employees are eligible to receive Longevity Pay based on number of years of service. In addition to an employee’s base salary, exclusive of all premium and other pays, each employee shall receive a Longevity Pay added to the employee’s base salary after the completion of:

10 years of service: $125 per month
14 years of service: $175 per month
16 years of service: $225 per month
25 years of service: $275 per month

Sworn employees are eligible to receive Longevity Pay calculated as a percentage of their salary and the City will make the payments in 26 bi-weekly installments. The calculations, based on total sworn public service time, will be as follows:

At 5 years of service: 2% of salary
At 10 years of service: 4% of salary
At 15 years of service: 6% of salary
At 20 years of service: 8% of salary
At 25 years of service: 10% of
salary

8.2 The effective date of a Longevity Pay increase shall be the beginning of the pay period following the date of eligibility. The computation of Longevity Pay increases shall not be cumulative.

SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION

9.1 Upon retirement or separation from City employment, Employees shall receive cash out equivalent for any eligible unused leave balances. Separating Employees shall have the option of receiving cash out or depositing the unused leave balance into their 457 Deferred Compensation Plan, subject to Federal law plan limits.

SECTION 10 - COMPENSATORY TIME OFF

10.1 Compensatory Time Off (CTO) is normally not accrued for exempt employees, however should CTO be on the employer's books for reasons such as change in position or a carryover from other terms and conditions with the employer, after April 1, 2016, it will qualify as eligible for conversion to either the Employee’s 401A or 457 Plan. Any such conversion must occur within 30 days of appointment.

SECTION 11 - SUPPLEMENTAL OPTIONAL MONIES ALLOWANCE FOR RETIREES (SOMAR)
178
7 11.1 The City will provide an optional monetary allowance currently for safety employees and for non-safety employees with an annual three percent adjustment on January 1st of each year to employees who retire as regulated by the Public Employee’s Retirement System. To be eligible for the optional monies, an employee must retire as follows:

1. Service Retirement: Employees who have served the City for at least ten (10) consecutive years immediately prior to retirement and are at least fifty (50) years old when they separate service from the City.

2. Disability Retirement: Employees who retire with a disability retirement are not required to be a certain age but must have at least twenty (20) years of service with the City.

11.2 To be eligible for the optional money allowance, employees must also have the minimum amount of sick leave on the books, as outlined in the chart below. If an employee has below the amount of sick leave required for their years of service, then they will only be eligible for the percentage paid equivalent to the amount of sick leave they do have on the books.

Years of
Service
Amount of sick leave hours on the books
on the day employee separates service
Percentage of Optional
Money Available
10 480 50
11 528 55
12 576 60
13 624 65
14 672 70
15 720 75
16 768 80
17 846 85
18 864 90
19 912 95
20 960 100
21 960 100
22 960 100
23 960 100
24 960 100
25 No minimum amount required 100

11.3 Employees must retire within one hundred twenty (120) days of separation from City employment to be eligible to receive the optional money allowance. In addition, employees who separate service from the City of Hercules, but do not retire as a PERS annuitant, shall not be eligible for medical retirement under this program.

11.4 Retiree Reaches Age 65 – The City will pay a portion of the optional money to a retiree until the retiree reaches age 65, upon which they are required to enroll in Medicare. At 179
1 that time, the optional money will drop to an amount equivalent to the Kaiser

Supplemental to Medicare rate through PERS. The retiree will be eligible for the same percentage of the Supplemental Optional Monies as they were eligible for under the Basic Optional Monies plan. Employees who are not eligible for Medicare must provide the City proof that they are not eligible for Medicare, either through their own employment history or their spouses and after providing such proof, the city will continue to pay the percentage of the Basic Optional Monies Plan. If proof is not provided, the City will automatically begin paying the Supplemental Optional Monies Plan percentages.

This benefit, which is effective January 1, 2001, is expected to last into perpetuity. The funds being established for this program may not be used by the City or Employees for any purpose other than what is expressly stated in this section of the Pay Plan. If in the future the City and Employees mutually agree to end or modify this benefit, they can do so only for active employees. Any retiree who is currently receiving this benefit will continue to receive the benefit as stated in the Pay Plan that was in effect at the time of their retirement. Conversely, if the City and Employees increase this benefit, they can do so only for active employees and retiree benefits will remain the same as they were when they retired.

The City shall provide the Employees an annual statement of prior year balances in the medical retirement fund no later than December 31st of each year.

11.5 Payment will be made on a bi-annual basis. The optional money allowance for the months of January through June will be made in the third week in July; July through December will be paid the third week in January of each year. Checks will be mailed to the address on file. Supplemental Optional Money payments are subject to applicable Federal and State Income Tax regulations.

SECTION 12 - COMPUTER LOAN PROGRAM

12.1 To be eligible Employees must have completed their initial one-year probation period with the City and must maintain a balance of up to 40 hours of vacation and/or compensatory time until the loan is paid in full. The hours an employee must maintain will vary depending on the amount borrowed.

12.2 Each employee is eligible to participate in the City of Hercules Loan Program for Employee Purchase of a Personal Computer, tablet, software or hardware. The maximum loan amount is $2,500 and may not be more than one loan outstanding at any time. No interest will be charged by the City on loans under this program.

SECTION 13 – DEFERRED COMPENSATION

13.1 401A Deferred Compensation Plan: Police Command staff shall receive an employer contribution equivalent to 4% of their salary from the City, deposited into the City sponsored 401A Deferred Compensation Plan, consistent with the limits, policies and 180
1 conditions established by the ICMA-RC and Federal Tax Laws.

13.2 457 Deferred Compensation Plan: All Employees may make voluntary contributions to the ICMA 457 Deferred Compensation Plan through payroll deduction subject to the limits, policies and conditions established by the ICMA and Federal Tax laws. In addition, exempt classifications under the Non-Represented/Confidential Pay and Benefit Plan shall receive 2.5% of their salary on a one-to-one match deposited into the City sponsored 457 Deferred Compensation Plan, and non-exempt classifications under the Non-Represented/Confidential Pay and Benefit Plan shall receive 1% of their annual salary on a one-to-one match deposited into the City sponsored 457 Deferred Compensation Plan, consistent with the limits, policies and conditions established by the ICMA-RC and Federal Tax Laws.

ARTICLE III. RETIREMENT BENEFITS
SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN

1.1 The City agrees to provide all Employees with retirement benefits under the terms of its current Retirement Plan with CalPERS.

1.2 All sworn personnel members hired on or prior to December 11, 2011 shall receive PERS retirement benefits computed at the highest formula, to include final year benefit formula, received by any public safety bargaining unit within the City. Those sworn personnel hired after December 11, 2011, and prior to January 1, 2014 shall receive the PERS benefit formula of 3%@55.

1.3 Unrepresented non-public safety employees hired prior to January 1, 2013, will pay the 7% employee percentage PERS contributions. The total employee percentage is 7%.

Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate. Unrepresented public safety employees hired prior to January 1, 2013, will pay the 9% employee percentage of PERS contributions. The current employee percentage is 9%. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.4 Non-public safety Employees hired prior to January 1, 2014, will pay the 7% employee percentage of PERS contributions. The current total employee percentage is 7%.

Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate. Public safety Employees hired prior to January 1, 2014, will pay the 9% employee percentage of PERS contributions.

The current total employee percentage is 9%. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.5 The PERS benefit formula and percentages paid by any Employee will change for all newly hired Employees on or after January 1, 2014 who are not already in a PERS recognized retirement system, in accordance with AB 340, signed into law on 181
10 September 12, 2012.

1.6 Sworn personnel hired on or after January 1, 2014, shall receive the PERS benefit formula of 2.7%@57, shall contribute 50% of the total annual normal cost of their pension benefit to the pension plan as determined by the City’s actuary and shall have their final compensation based on the employee’s highest annual compensation earnable averaged over a consecutive 36-month period. The employee contribution rate for new sworn members is 11.50%. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

1.7 Non-public safety personnel hired on or after January 1, 2014, shall receive the PERS benefit formula of 2%@62, shall contribute 50% of the total annual normal cost of their pension benefit to the pension plan as determined by the City’s actuary and shall have their final compensation based on the employee’s highest annual compensation earnable averaged over a consecutive 36-month period. The employee contribution rate for new non-sworn members is 6.25%. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate.

ARTICLE IV. INSURANCE BENEFITS

SECTION 1 - INSURANCE

The City’s contribution towards the employee’s health premium will equal the Kaiser rate for the prior calendar year plus the first 3% of the rate increase at each level of coverage. The employee shall contribute a maximum of up to 3% of the rate increase and the City will be responsible for rate increases above 6%.

1.1 If an Employee elects no health coverage, and can demonstrate to the City, on an annual basis or any other time upon request, that the Employee has alternative health care coverage, the Employee shall be entitled to any one of the following options:

A. The City will pay 50% of the eligible contribution into the Employee's 457 Plan 182
11 account; or
B. The City will pay to the Employee directly 50% of the eligible contribution in cash; or
C. At the Employee's option, the City will pay a portion of the eligible contribution to increase the Employee's supplemental life insurance coverage and t he Employee will receive the remainder of the eligible contribution under either option one or two above.

If an Employee's alternative health coverage is lost due to unforeseen circumstances, the Employee will upon request be covered by the City's health plan, subject to carrier approval.

1.2 Dental Insurance - For dental coverage the City shall pay 100 percent of the monthly premium through Delta Dental Plan of California for each Employee and qualified dependents as current practice dictates per fiscal year for each member. The City shall provide orthodontia coverage 50 percent with a lifetime maximum of $4,000 for each eligible family member.

1.3 Life Insurance and AD&D - The City agrees to provide sworn personnel $50,000 and non-sworn employees $40,000 term life insurance and accidental death and dismemberment insurance at no cost to the Employee. Additional coverage on the same policy may be purchased by individual Employees through approved payroll deduction.

1.4 Short Term and Long-Term Disability Insurance - Employees shall receive long- term disability insurance consistent with the highest level of similar coverage received by any bargaining unit in the City, at no cost to the Employee.

1.5 Employee Assistance Plan - The City agrees to continue an Employee Assistance Counseling Program for all Employees. Individuals eligible for coverage include Employees and their household members. The term household members encompass anyone living in the Employee's household and can include, as examples, spouse, domestic partners, grandparents, sister or grandchildren, and eligible dependents.

ARTICLE V. SICK LEAVE BENEFITS
SECTION 1 - SICK LEAVE ACCRUAL PLAN

1.1 The City shall provide paid sick leave benefits to all Employees which accrues at the rate of eight (8) hours per month. The maximum sick leave accrual for Employees is 2080 hours. If an Employee has 2080 hours (one year) of accrued unused sick leave, the Employee shall cease earning sick leave until such time as their unused balance falls below 2080 hours.
183
12 1.2 Sick leave is to be used primarily for illness, injury or medical appointments for the employee or an immediate family member which requires an employee to be absent from work. The immediate family of an employee is defined as: parents, stepparents, parents-in-law, spouse, domestic partner, child, step-child, brother, sister, grandparents, grandchildren, brother/sister-in-law, son/daughter-in-law, or legal guardian.

1.3 After three consecutive sick days the City may require an employee to submit a doctor's statement and/or other reasonable verification for the sick leave request.

1.4 Exempt employees are not subject to sick leave accrual deduction for absences of less than one (1) day for sickness or personal medical appointments. This section does not preclude the City Manager from requiring Employees to report absences due to sickness of less than one (1) day.

ARTICLE VI. HOLIDAYS, VACATION AND OTHER LEAVE BENEFITS SECTION 1 - HOLIDAYS

1.1 Employees shall receive 14 designated holidays per year to be observed during each Fiscal Year (July 1-June 30). Employees normally scheduled to work on those days will be given nine and one half (9.5) hours off with pay provided they are eligible as set forth below. Floating Holidays may not be carried forward from one fiscal year to the next and are not compensable at the time of separation from City service.

The following days shall be recognized as holidays:

1. New Year’s Day

2. Martin Luther King, Jr. Day

3. Presidents Day

4. Memorial Day

5. Juneteenth

6. Independence Day

7. Labor Day

8. Veteran’s Day

9. Thanksgiving

10. The day after Thanksgiving

11. Christmas Eve

12. Christmas Day

13. Two Floating Holidays

Employees on approved vacation or sick leave shall not be charged for vacation or sick leave for the Holiday.

Additional Christmas Holidays - Employees shall receive paid leave during the Christmas week consistent with the highest amount received by any bargaining unit in the City and as specifically designated by the City Manager. To be eligible for the 184
13 Additional Christmas Holidays, Employees must have either worked or have been on an approved paid leave status the equivalent of 15 or more full workdays during the previous thirty (30) days, exclusive of overtime. An Employee on approved vacation or sick leave shall not be charged vacation or sick leave if these Holidays fall during their approved leave.

SECTION 2 – VACATION

2.1 Except as otherwise provided in this Section, employees shall accrue vacation as follows:

YEARS OF SERVICE

COMPLETED
ANNUAL

ACCRUAL RATE
1 through 4 96 hours
5 through 9 120 hours
10 through 15 144 hours
16 through 19 160 hours
Beginning at 20 years 176 hours

2.2 Employees who reach 280 hours of accrued unused vacation shall cease earning any vacation until their vacation accrual falls below 280 hours.

2.3 On June 30 of each year the City shall automatically convert to cash all Employees' vacation leave accrual hours in excess of 240 and deposit the cash balance into the individual Employee's VantageCare Retiree Health Savings Program or into a member’s previously established City-sponsored investment account.

2.4 Consistent with City policy employees may sell back up to 40 hours of their accrued vacation annually, one time during the fiscal year.

SECTION 3 - RETIREMENT HEALTH SAVINGS PLAN

3.1 VantageCare Retiree Health Savings (RHS) Program allows employees to accumulate assets to pay for health insurance and out-of-pocket expenses in retirement. The RHS Plan has a number of advantages including tax-deferred contributions, tax-deferred investment earnings, and tax-free withdrawals for eligible medical expenses for participants, their spouses and dependents.

3.2 The City shall automatically deposit the following percentage of the employee's salary into the individual Employee's VantageCare Retiree Health Savings program. This benefit is paid from the Employee's salary and not by the City.

 Exempt Employees will contribute 2%

3.3 Employees will be permitted to cash out and deposit unused leave accruals in their Retiree Healthcare Savings Plan as described below.
185
14 On June 30 of each year the City shall automatically convert to cash up to 40 hours of each Employee's vacation leave accrual hours in excess of 240 and deposit the cash balance into the individual’s VantageCare Retiree Health Savings Program.

On June 30 of each year the City shall automatically convert to cash all up to 40 hours of employee's unused Executive Leave and deposit the cash balance into the individual’s VantageCare Retiree Health Savings program.

SECTION 4 - BEREAVEMENT LEAVE

4.1 Each employee shall receive 24 hours of bereavement leave per qualifying incident. A qualifying incident is defined as the death of an employee’s parent, stepparent, parents-in-law, grandparent, child, step-child, grandchild, spouse, domestic partner, legal dependent, sister or brother, brother/sister-in-law, legal guardian or with approval by Human Resources, a substitute family member for a person defined above.

4.2 In addition to the 24 hours of bereavement leave, Employees may use accrued unused vacation or sick leave to extend their bereavement leave up to a total of forty hours.

4.3 At the discretion of the City Manager, or designee, additional time may be taken by the Employee using their accrued leave. City paid bereavement leave shall be limited to a maximum of 24 hours per incident. In special cases, the City Manager or designee may approve additional bereavement leave or a leave of absence for bereavement in other circumstances.

SECTION 5 - ADDITIONAL LEAVES

5.1 Authorized Leaves of Absence without Pay

Requesting Leave – Upon request, the City Manager may grant a Employee an unpaid leave of absence not to exceed three (3) months. Such leave shall be discretionary and based upon the needs of the City. Whenever possible, such requests shall be submitted at least six (6) weeks in advance. Approval of the request may be with specific terms and conditions negotiated by the City Manager and the Employee.

Extension of Leaves – During the period of the Leave of Absence, a Employee may request that the leave be extended by submitting such a request in writing to the City Manager stating the reason for the extension. Such a request may be approved or disapproved by the City Manager as described in the above section. Under normal circumstances, no Leaves of Absence exceeding one (1) year will be granted.

5.2 Executive Leave – Exempt Employees shall receive 80 hours of Executive Leave on July 1 of each year as flexible compensation for the irregular duty periods, work in excess of 40 hours per week, and unpredictable demands on Employee’s time.

Executive Leave must be used prior to June 30 of the fiscal year it was awarded or it is 186
15 lost.

On June 30 of each year the City shall automatically convert to cash up to 40 hours of Employees unused Executive Leave and deposit the cash balance into the individual Employee’s VantageCare Retiree Health Savings program.

New Employees shall receive the following bank of hours of Executive Leave based on hire date as follows:

Date of Employment Credit for Executive Leave
July 1 through September 30 60 hours
Oct 1 through December 31 40 hours
Jan 1 through March 31 20 hours
April 1 through June 30 0 hours

5.3 Pregnancy Disability Leave - An Employee disabled due to pregnancy may be entitled to a leave of absence for the period of disability up to three months. Employees on Pregnancy Disability Leave may utilize accrued unused sick leave and vacation during the leave period.

5.4 Family and Medical Leave Act of 1993 – The parties acknowledge the applicability of the Family and Medical Leave Act and the California Family Rights Act and intend to apply and implement this Agreement so as to comply with both State and Federal Law.

5.5 Voting Leave – Consistent with the provisions of California law, Employees shall be granted sufficient time to vote during municipal, primary and general elections.

5.6 Military Leave – The City shall comply with all State and Federal requirements regarding military duty leave.

5.7 Sabbatical Leave is provided as a major means by which Exempt Employees may promote their professional competence and so improve the performance of the organization through continued learning through study, research, writing, and travel.

Employees shall receive eighty (80) hours of Sabbatical Leave at the completion of seven years of service, which shall be on the eighth anniversary of their appointment as an Employee. Employees shall also receive eighty (80) hours of Sabbatical Leave upon the completion of fourteen years of service, which shall be on the fifteenth anniversary of their appointment as an Employee.

Employees may request and take Sabbatical Leave at any time after Sabbatical Leave Time has accrued, subject to prior approval by the City Manager. Sabbatical Leaves must be taken within one year of accrual of Sabbatical Leave Time. Sabbatical Leaves must be taken as a single period of ten consecutive business days or two periods of five consecutive business days each.

Supplemental Leave – The City Manager may award up to 40 hours of Supplemental Leave to any Employee each year, based on extended hours of work, job performance 187
16 or other circumstances. Supplemental leave must be used within one calendar year of the date awarded or it is lost.

5.8 Jury Leave – The City provides jury duty leave with pay for all Employees who are called upon to serve for court jury duty according to the following provisions:

An Employee called for jury duty shall immediately provide the City Manager with a copy of the jury summons. If the Employee is dismissed by the Court and three (3) hours or more remain in the workday, they are expected to report to work.

Employees' compensation for jury duty shall be limited to three months (63 workdays).

Employees whose jury service is in excess of three months (63 workdays) may make a request to the City Manager or designee for continued payment. An Employee serving jury duty in excess of the above limit may use accrued unused vacation or other approved leave to continue pay.

ARTICLE VII. SEPARATION
SECTION 1 – SEPARATION FROM CITY SERVICES

1.1 Separation Notice Payment – Employees who have more than three years of service and voluntarily separated from employment with the City and provide at least thirty (30) calendar days’ notice of separation shall receive a Separation Notice Payment.

The Separation Notice Payment will be a sum equaling the most recent two weeks' regular compensation received by the Employee, including longevity pay and all other monetary incentive compensation received immediately prior to the date of notice. Employees who separate as a result of medical or other retirement shall not be eligible to receive this benefit.

Exempt Employees who have more than three years of service and are involuntarily separated from their employment with the City shall receive twelve weeks separation pay. Such separation pay shall include longevity pay and all other monetary incentive compensation the Employee received while employed by the City.

Non-Exempt Employees who have more than three years of service and are involuntarily separated from their employment with the City shall receive six week’s separation pay. Such separation pay shall include longevity pay and all other monetary incentive compensation the Employee received while employed by the City.

1.2 Confidentiality – In the event of termination of employment, the Parties agree that neither the City nor Employee shall, for a period of six months, make any statement, orally, in writing or otherwise, regarding the reasons for or circumstances of termination, to any person or organization other than:

a) In the case of the City: its legal counsel and/or City Council b) In the case of the Employee: to legal counsel and/or immediate family.

This provision shall expressly include communication to prospective future employers, unless otherwise required by law.
188
17 SECTION 2 – SAVINGS CLAUSE

2.1 The provisions of the Resolution are declared to be severable and if any article, section, subsection, sentence, clause or phrase contained herein shall for any reason be held invalid or unenforceable by a court of competent jurisdiction, such decision shall not affect the validity of the remaining articles, sections, subsections, sentences, clauses or phrases of this Resolution, but they shall remain in full force and effect. It is the intent of the City this Resolution stands notwithstanding the invalidity of any part hereof.

SECTION 3 - IMPLEMENTATION AND DURATION

3.1 Except as otherwise provided herein, this Pay and Benefits Plan shall be in full force and effect beginning to July 1, 2024 and shall remain in full force and effect until amended, repealed or superseded by action of the City Council through June 30, 2025.
189
18 EXHIBIT “A”

The salaries in Table 1 below include a 3% Cost of Living Adjustment (COLA), effective July 1, 2024, with a one-time non-PERSable payment of 2.0% of their total gross salary for the 2023/24 fiscal year.

TABLE 1

Note: Non-Represented employees are positions in the Unclassified Service.

*Rates based on 1976 annual hours worked

Unrepresented employees shall work the number of hours necessary and sufficient to professionally discharge the duties and assignments. Exempt Unrepresented employees shall work a minimum of thirty-eight (38) hours per week, except when vacation, sick or other approved leave is taken. Exempt Unrepresented employees are granted discretion regarding the times they start and finish their workdays, as well as the days they work. However, the City may from time to time require specific start or finish work times or both.

The standard workweek shall be thirty-eight (38) hours per week, worked in units of nine (9- 1/2) hours per day Monday through Thursday in a seven (7) day workweek which runs Saturday at midnight through the following Saturday at 11:59 p.m. Overtime for full time non- exempt employees will begin after 38 hours.

TITLE GRADE STEP 1 STEP 6
Accountant 048 $94,872.46 $121,083.97
Accounting Technician II 046 $81,337.86 $103,810.01
Administrative Specialist 045 $75,312.57 $96,120.04
Human Resources Administrator 046 $81,337.86 $103,810.01 Human Resources Analyst 047 $87,844.45 $112,114.26
Human Resources Manager 050 $110,658.98 $141,232.02
Human Resources Technician 045 $75,312.57 $96,120.04
Police Commander 055 $162,594.82 $207,516.77

ANNUAL SALARY
190
19 191
20 192
CO

NSENT CALENDAR

AGENDA ITEM

4. 22-924
193

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of July 23, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Eibleis Melendez, City Clerk
SUBJECT: Quarterly Review of Future Agenda Items
RECOMMENDED ACTION:

Staff recommends that the City Council receive the staff report on the quarterly review of future City Council agenda items.

BACKGROUND:

The purpose of this item is to identify issues presently known to staff or which members of the City Council wish to place on an upcoming City Council agenda. Council comment on these future agenda items is limited by the Brown Act to clarifying questions, brief announcements, or requests for additional information in connection with an item when it is discussed.

FISCAL IMPACT:

There is no direct fiscal impact associated with this report.

ATTACHMENTS:

1. Future Agenda Items List
22-924
194
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action

NO MEETING IN AUGUST
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 09/10/2024
(Closed Session -
6pm start)
Strategic Goals Quarterly Update X
Willow Ave Lift Station Agreement Update X
Discussion Regarding Community Composting and Recycling Event X Solid Waste Draft Franchise Agreement X
Landscape Coordinator Job Description X
Notice by 8/29 Local Business Preference X
Fourth Quarter Investment Report(Ending June 31) X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 9/24/2024 Allocation of Staffing for LLAD X
Countywide Smart Signals Agreements X

WCCTAC JPA MOU X
Quarterly Status Update on CIP Projects X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 10/8/2024 Review of The Conflict of Interest Code(Even Years) X Affordable Housing Policy Update X
Acceptance of the Lower Sewer Trunkmain Project X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 10/22/2024 Event for Citizens with Disabilities X
Proposal to Engage Infrastructure Funding Lobbyist X
Local Hazard Mitigation Plan Adoption X
Falcon Way Repair Design Agreement X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 11/12/2024 Housing Element Adoption X
Commissioner Interviews and Appoinments X
Future Agenda Items List
Updated - 7/18
195
Future Juneteenth Event X
Police Department Lobbies Remodel Construction Contract Award X Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 12/10/2024 Quarterly Review of the Future Agenda Items List X Confirmation of Election Results(even years) X
Maddy Act X
2025 Meeting Calendar X
Proclamation for Out Going Mayor X
Reorganization of Council X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 1/14/2025 Resident Engagement Related to Strategic Plan X MCE Enrollment Outreach Plan X
Strategic Goals Quarterly Update X
Succesor Agency: Annual Filing of the Rocognized Obligation Patyment Schedule (ROPS) X
Annual Comprehensive Financial Report(ACFR) & Annual Audit Results Regional Appointments X
Review of Council Policies - Ethics, Nepotism, etc X
Sycamore Sewer Trunk Overflow Line Design Contract X
Police Officer of the Year
MLK Proclamation
City Manager Performance Review
Shirtsleeves Meeting Item Presentation Public Hearing Consent Discussion Only Discussion/Action 1/21/2025 Revenue Enhancement X
Measure J Compliance Report X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 1/28/2025 Organization Structure and Succession Plan Discussion X Hercules Hub Update X
125th Anniversay Planning X
Welcome Baby Event X
Special Events Update X
196
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 2/11/2025 Community Volunteers for Housebound Residents X Update of Business Shopping Centers X
Public Works Department Update X
Garbage Liens X
Investment Report: 2nd Quarter (Ending Dec.31) X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 2/25/2025 Midyear Budget Update and Adjustments X
Animal Services Update X
Garbage Liens X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 3/11/2025 Parks and Recreation Department Update X
Strategic Goals Quarterly Update X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 3/25/2025 Budget Workshop(CIP) X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 4/8/2025 Police Department Update X
Budget Workshop: Sewer and Internal Services (ISF) X
Quarterly Review of the Future Agenda Items List X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 4/22/2025 MCE Enrollment Update X
Budget Workshop: General Fund and other Operating Funds X Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 197
5/6/2025 Community Development Update X
Investment Report: 3rd Quarter( Ending March 30th) X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 5/20/2025 First Public Hearing: Proposed Annual Budget X Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 6/10/2025 Finance Department Update X
Second Public Hearing: Adoption of the Annual Budget X
Strategic Goals Quarterly Update X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 6/24/2025 Annual Investment Policy Update X
Master Fee Schedule X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 7/8/2025 Garbage Liens X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 7/22/2025
198
DI

SCUSSION AND/OR ACTION

AGENDA ITEMS

1. 22-926

2. 22-927

3. 22-928
199

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of July 23, 2024
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Proposal to Administer the Housing Successor Agency Housing Loan Program and Business Development Loan Program
RECOMMENDED ACTION:

Adopt a resolution authorizing the City Manager to execute a $113,000 professional service agreement with RSG to develop and implement a plan to restructure the non- performing loans, including borrower negotiations and amending loan agreements.

BACKGROUND:

In 2012, State law dissolved California redevelopment agencies and at the time, the City did not elect to become Housing Successor to retain housing assets and functions of the Former Agency. By default, t he Contra Costa County Housing Authority (“Authority”) became a Housing Successor by operation of law . However, the Authority refused the transfer of any assets. Former Agency loans were not administered for several years as a result. With the Authority declining to exercise Housing Successor functions, the City elected to become Housing Successor on February 27, 2024. As Housing Successor, the City gained access to over $4.9 million in affordable housing funds collected from housing loan repayments since its dissolution. The City may also resume the administration of outstanding housing loans issued by the Former Agency.

ANALYSIS:

As Housing Successor, the City is now responsible for administering 77 loans issued by the Former Agency. RSG was hired in September 2023 to review loan documents to 22-926
200
confirm the status of outstanding loans and determine how to proceed with performing and non-performing loans. RSG’s review found that 47 loans are collectible and 30 are uncollectible. The City intends to write-off the uncollectible loans, leaving a loan portfolio of 47 active loans (42 Housing Successor Loans and 5 Business Development loans). Of the 47 active loans, 21 are performing (no overdue balance) and 26 are non -performing (carry an overdue balance). City Council has directed staff to write -off the uncollectible loans, continue administering performing loans, and restructure non-performing loans.

RSG’s prior contract included reviewing loan files, setting up the initial loan administration process, and providing monthly invoicing templates. This proposal provides a scope of services to develop and implement a plan to restructure the non -performing loans, including borrower negotiations and amending loan agreements.

FISCAL IMPACT:

There is sufficient available cash balance for this Agreement in the Housing Successor (Fund No. 640), funded from the repayment of the Housing Loans and restricted for Housing Successor -related activities. The scope of work is within the purview of the Housing administration, which is an eligible expense for this funding source. Staff is requesting that the City Council approve the appropriation for the professional serv ices agreement as follows:

Funding Sources Account Number Amount
Housing Successor Fund 640-6000-611.40-00 $113,000

ATTACHMENTS:

Attach 1- Resolution
Attach 2- RSG Proposal

201
RESOLUTION NO. 24-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH RSG IN THE AMOUNT OF $113,000

TO DEVELOP AND IMPLE MENT A PLAN TO RESTRUCTURE THE NON -

PERFORMING LOANS, INCLUDING BORROWER NEGOTIATIONS AND AMENDING LOAN AGREEMENTS , A PPROPRIATING $113,000 FROM THE HOUSING

SUCCESSOR FUND TO FULLY FUND THE AGREEMENT, AND AUTHORIZING THE

CITY MANAGER TO EXEC UTE THE AGREEMENT ON BEHALF OF THE CITY

COUNCIL

WHEREAS, on February 27, 2024, the City elected to become Housing Successor; and

WHEREAS, as Housing Successor, the City resume the administration of outstanding housing loans issued by the Former Agency; and

WHEREAS, the Cit y is responsible for administering 77 loans issued by the Former Agency; and

WHEREAS, after reviewing the loan documents, it was found that 47 loans are collectible, and 30 loans are uncollectible; and

WHEREAS, on July 9, 2024, the City Council directed staff to write -off the uncollectible loans, leaving a loan portfolio of 47 active loans. 21 loans are performing (no overdue balance), and 26 loans are non-performing (carry an overdue balance); and

WHEREAS, the Agreement with RSG provides a scope of services to develop and implement a plan to restructure the non-performing loans, including borrower negotiations and amending loan agreements; and

WHEREAS, there is sufficient funding in the Housing Successor Fund to cover the cost of this Agreement to develop and implement a plan to restructure the non -performing loans, including borrower negotiations and amending loan agreements.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules that the City Council hereby approves a professional services agreement with RSG in the amount of $113,000, to develop and implement a plan to restructure the non -performing loans, including borrower negotiations and amending loan agreements , appropriates $113,000 from the Housing Successor Fund to fully fund the Agreement, and authorizes the City Manager to execute the agreement on behalf of the City Council.

202
The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the twenty-third day of July 2024 by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

____________________________
Dan Romero, Mayor

ATTEST:

Eibleis Melendez, City Clerk
203

July 3, 2024 Via Electronic Mail
[email protected]

Edwin Gato, Finance Director

CITY OF HERCULES /

SUCCESSOR AGENCY TO THE HERCULES REDEVELOPMENT AGENCY
111 Civic Drive
Hercules, CA 94547

PROPOSAL TO ADMINISTER THE HOUSING SUCCESSOR AGENCY HOUSING LOAN

PROGRAM AND BUSINESS DEVELOPMENT LOAN PROGRAM

Dear Mr. Gato:

Thank you for considering RSG, Inc. (“RSG”) to administer the City of Hercules (“City”) Housing Successor Agency Loan Program ( “Housing Loan Program”) and the former Hercules Redevelopment Agency’s (“Former Agency”) Business Development Loan Program collectively known as “Loan Programs” . On February 27, 2024, the City elected to become the Housing Successor to the Hercules Redevelopment Agency. The Former Agency issued loans for seven housing programs from its Low and Moderate Income Housing Fund and one business loan program.

The City is now responsible for administering 77 loans issued by the Former Agency . RSG was hired in September 2023 to review loan documents to confirm the status of outstanding loans and determine how to proceed with performing and non-performing loans. RSG’s review found that 47 loans are collectible and 30 are uncollectible . The City intends to write -off the uncollectible loans, leaving a loan portfolio of 47 active loans (42 Housing Successor Loans and 5 Business Development loans). Of the 47 active loans, 21 are performing (no overdue balance) and 26 are non-performing (carry an overdue balance). City Council has directed staff to write-off the uncollectible loans, continue administering performing loans, and restructure non -performing loans. The table on the following page details loan status by program.

RSG’s prior contract included reviewing loan files, setting up the initial loan administration process, and providing monthly invoicing templates. This proposal provides a scope of services to develop and implement a plan to restructure the non-performing loans , including borrower negotiations and amending loan agreements.

204
Edwin Gato, Finance Director

CITY OF HERCULES
June 27, 2024