Hercules City Council
February 25, 2025

Tuesday, February 25, 2025
6:00 PM
City of Hercules
111 Civic Drive
Hercules, CA 94547
City Council
Mayor Dion Bailey
Vice Mayor Chris Kelley
Council Member Alex Walker-Griffin
Council Member Dilli Bhattarai
Council Member Tiffany Grimsley
Dante Hall, City Manager
Christie Crowl, City Attorney
Eibleis Melendez, City Clerk
Meeting Agenda
CLOSED SESSION - 6:00 P.M., REGULAR MEETING - 7:00 P.M
In-Person in Council Chambers or To Watch or Listen only:

Zoom ID: 815 2601 0912 Zoom Passcode: 296897
Zoom Phone Number: 1-669-900-6833
1 February 25, 2025City 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. SPECIAL CLOSED SESSION – CALL TO ORDER - ROLL CALL - 6:00 P.M. 1A. CONSIDER AND TAKE ACTION ON ANY REQUEST FROM A COUNCIL MEMBER TO

PARTICIPATE IN A MEETING REMOTELY DUE TO JUST CAUSE OR EMERGENCY CIRCUMSTANCES PURSUANT TO AB 2449
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
III. CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:

1. 25-071
Pursuant to Government Code Section 54957(b) PUBLIC EMPLOYEE EVALUATION - Title: City Manager

2. 25-070 CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code Section 54957.6 - City Negotiators: Dante Hall, City Manager; Edwin Gato, Director of Finance; relative to the following employee groups:
a. Teamsters Local 315 Employee Organizations
IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

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

1. 25-063
Proclamation - Recognizing the Chinese Heritage Association of Hercules
Chinese Association of Hercules ProclamationAttachments:

2. 25-064 Presentation - Animal Services Update
PresentationAttachments:

IX. AGENDA ADDITIONS/DELETIONS

2 February 25, 2025City Council Meeting Agenda
X. PUBLIC COMMUNICATIONS
This time is reserved for members of the public to address issues not included in the agenda. In accordance with the Brown Act, Council will refer to staff any matters brought before them at this time, and those matters may be placed on a future agenda.

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

XI. PUBLIC HEARINGS
XII. CONSENT CALENDAR

1. 25-065
Meeting Minutes for the Regular Meeting of February 11, 2025 Meeting Minutes for the Regular Meeting of February 11, 2025Attachments:

XIII. DISCUSSION AND/OR ACTION ITEMS

1. 25-066 Update on the Hercules Hub and Amendment No.3 with Gray Bowen Scott for a Not to Exceed Amount of $562,500 to Provide Project Management and Advance the Funding Plan for The Hub
RECOMMENDATION:

Adopt a resolution authorizing the City Manager to execute Amendment No.3 with Gray Bowen Scott (GBS) for a not to exceed amount of $562,500 to continue project management and advance the funding plan for The Hub for a total not to exceed contract amount of $1,465,001.

Staff Report - Hercules Hub Gray Bowen Scott(GBS) Amendment Attach 1 - Resolution
Attach 2 - Hercules Hub GBS Amendment #3 Proposal Letter & Scope Presentation - Hercules Hub-City
Attachments:

2. 25-067 Update on the City of Hercules Public Works Department RECOMMENDATION:

Receive an update on the City of Hercules Public Works Department Staff Report - Public Works Update
Presentation - Public Works Updates - 2025
Attachments:

3 February 25, 2025City Council Meeting Agenda

3. 25-050 East Bay Wildfire Coalition of Governments Annual Membership Dues
RECOMMENDATION:

Staff recommends that the City Council approve a resolution authorizing the payment of $3,000 in annual membership dues to the East Bay Wildfire Coalition of Governments.

Staff Report - East Bay Wildfire Coalition of Governments Annual Membership Dues Attach 1 - Resoltuion
Attach 2 - July 23, 2024 Staff Report - Wildfire Prevention MOU Attach 3 - July 23 2024 Attach 1 - Resolution
Attach 4 - East Bay Hills Wildfire Coordination MOU
Attach 5 - EastBayWildfirePrevention - Needs To Be Addressed Attach 6 - Wildfire Protection Coordinating Group MOU -Presentation -Sept 2023 Attachments:

4. 25-069 FY 24-25 Midyear Budget Review
RECOMMENDATION:

Receive a report on the midyear budget review for Fiscal Year (FY) 2024-25.

Staff Report - FY 24-25 Mid-Year Budget Update
Attach 1 - General Fund Summary
Attach 2 - Non-General Fund Summary
Attachments:

5. 25-068 "City Dollars & Cents: Funding Our Future" Meeting RECOMMENDATION:

This is an informational report.

Town Hall meeting announcement - Revenue EnhancementAttachments:

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.

4 February 25, 2025City 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, March 11, 2025 at 7:00p.m. in the Council Chambers.

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

Members of the public can view electronic agendas and staff reports by accessing the City website at www.ci.hercules.ca.us and can receive e-mail notification of agenda and staff report postings by signing up to receive an e-notice from the City’s homepage. Agendas and staff reports may also be obtained by contacting the City Clerk at (510) 799-8200 (Posted: February 20, 2025)

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.

5 February 25, 2025City 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: Members of the public may submit a remote public comment via Zoom video conferencing. 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) 799-8200.

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.

6 February 25, 2025City 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.

7 INT

RODUCTIONS/PRESENTATIONS/

COMMISSION REPORTS

AGENDA ITEMS

1. 25-063

2. 22-064
8 PROCLAMATION

RECOGNIZING THE CHINESE ASSOCIATION OF HERCULES AND
DECLARING FEBRUARY 25, 2025 AS CHINESE HERITAGE DAY IN THE CITY

OF HERCULES
WHEREAS, the United States of America has a rich history and diverse population of communities that have helped make our state and nation what they are today; and WHEREAS, Chinese Association of Hercules was established in 1979. This year marks 46 years of promoting the Chinese culture and providing a voice for the Chinese within the community. With currently over 220 members, the Association is open to everyone without regard to ethnicity or place of residence; and
WHEREAS, the city of Hercules first began as Hercules Powder Company, a dynamite manufacturing plant. The techniques of their production were profoundly important to society, producing more than half the dynamite made on the West Coast, and as the largest TNT plant in America during World War I. Chinese immigrants made up a majority of the total workforce at the plant. Working under extremely dangerous conditions including nitroglycerine lines, many lives were taken by deadly explosions; and WHEREAS, in 2008, the Chinese Association, in partnership with the Hercules Historical Society, installed a plaque at Frog Pad Park to memorialize the lives of Chinese workers who from 1881 until 1912, worked at the Hercules Powder Works factory under treacherous conditions and where many died in anonymity; and
WHEREAS, in 2024 the Association brought the community and families together through organized events such as the Chinese New Year banquet, Moon Festival celebration at Refugio Park, and Christmas party. The Association provided Lunar New Year decorations at the Hercules Library and Lai See at the New Year Celebration events. The Association participated in the Hercules Citywide Cleanup Day and “Team Up to Clean Up community events, and with the Senior Lunch Program, Tai Chi class, Yuen Jie class, and the Hercules Holiday Tree Lighting.

NOW, THEREFORE, BE IT PROCLAIMED that I, Dion Bailey, Mayor of the City of Hercules, on behalf of the entire City Council and the Hercules community, do hereby recognize and congratulate the Hercules Chinese Association for their long-standing contributions that deepen the community’s understanding of Chinese history, traditions and the resiliency of the Chinese community in Hercules, and who continue to have a great impact on the nation’s growth and success. I do hereby proclaim February 25, 2025, as Chinese Heritage Day in the City of Hercules.

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

In witness whereof, I hereunto set my hand and cause the Seal of the City of Hercules to be affixed this 25th day of February 2025.

Dion Bailey, Mayor
25-063
9 INTR

ODUCTIONS/PRESENTATIONS/

COMMISSION REPORTS

AGENDA ITEM

2. 25-064
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Department SummaryDepartment Summary
Shelter Operations
& Medical Services
Provides basic daily care and
necessary
medical care to animals
Public low-cost and targeted spay
and neuter services for owned
animals and unowned cats through
a no-cost Trap-Neuter-Return (TNR)
program
Public low-cost vaccination clinic
Administration
Provides administrative
oversight
of departmental
functions and other support such
as customer services and
dispatch
2 Community Services
Supports adoption, lost and
found, public
events, humane
education, and volunteer
services
Field Services
Provides enforcement and
community
services to support
administrative hearings for
dangerous animals and noise
violations
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4 Shelter Services
o 139 Animals Impounded from Hercules
o 23 Adoptions to Hercules Residents
o 15 Animals from Hercules Reunited
with Their Families
Stray Deceased Investigation Assist Other
69 69 35 12 10
FY 24/25 Hercules Field Activities
FY 24/25 Field Activities in Hercules
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15 Capacity for Care
Capacity for Care means meeting the needs of
every animal admitted to a shelter, regardless
of how they came in, when they came in, their
age, health status, or personality.

Intakes & Outcomes
In 2024, CCAS’s annual intake was 6,585
animals. Our adoption, transfer, and return to
owner outcomes totaled 4,577. Divided by
365, that results in an average daily intake of
18 animals per day, and an average daily
output of 12 animals per day.
*Animal intake occurs 7 days/week whereas
adoption, transfer, and RTO services (ie outputs)
occur 5 days/week.

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800
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1600
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0 100
200
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400
500
600
700
800
21/22 22/23 23/24 24/25
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16 Please contact me with any questions:

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26 CONS

ENT CALENDAR

AGENDA ITEM

1. 25-065
27 111 Civic Drive
Hercules, CA 94547City of Hercules
Meeting Minutes
City Council
Mayor Dion Bailey
Vice Mayor Chris Kelley
Council Member Alex Walker-Griffin
Council Member Dilli Bhattarai
Council Member Tiffany Grimsley
Dante Hall, City Manager
Christie Crowl, City Attorney
Eibleis Melendez, City Clerk
6:00 PMTuesday, February 11, 2025
CLOSED SESSION - 6:00 P.M., REGULAR MEETING - 7:00 P.M
In-Person in Council Chambers or
Zoom ID: 857 6571 2746 Zoom Passcode: 226322
Zoom Phone Number: 1-669-900-6833
I. SPECIAL CLOSED SESSION – CALL TO ORDER - ROLL CALL - 6:00 P.M. 1A. CONSIDER AND TAKE ACTION ON ANY REQUEST FROM A COUNCIL MEMBER TO

PARTICIPATE IN A MEETING REMOTELY DUE TO JUST CAUSE OR EMERGENCY CIRCUMSTANCES PURSUANT TO AB 2449
Council Member Grimsley arrived late and was not present when roll call was taken.

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

Present: 4 -
Council Member Dilli BhattaraiAbsent: 1 -
II.

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

City Attorney, Christie Crowl, read the titles of the items to be discussed in Closed Session. City Council and Staff recessed into Closed Session.

1. 25-062 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Pursuant to Gov. Code section 54956.9(d)(1) (Bruce v. Garcia et al, Case No. 3:25-cv-01297-PHK)

25-065
28 February 11, 2025City Council Meeting Minutes

2. 22-1013 CONFERENCE WITH LABOR NEGOTIATORS Pursuant to Government Code Section 54957.6 - City Negotiators: Dante Hall, City Manager; Edwin Gato, Director of Finance; relative to the following employee groups:
a. Teamsters Local 315 Employee Organizations

3. 25-046
CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to
Government Code Section 54956.8. Property address: 1000 Alfred Nobel Drive, Hercules, CA 94547. Agency negotiators: Dante Hall, City Manager; Christie Crowl, City Attorney; Edwin Gato, Finance Director. Negotiating parties: City of Hercules, Bio-Rad.

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

Mayor Bailey opened the Regular Meeting at 7:08 pm.

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

Present: 4 -
Council Member Dilli BhattaraiAbsent: 1 -
V. REPORT ON ACTION TAKEN IN CLOSED SESSION
City Attorney, Christie Crowl, reported out that there was no final or reportable action taken in Closed Session.

VI. PLEDGE OF ALLEGIANCE
Vice Mayor Kelley lead the Pledge of Allegiance.

VII. MOMENT OF SILENCE
NONE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS
NONE
IX. AGENDA ADDITIONS/DELETIONS
NONE

29 February 11, 2025City Council Meeting Minutes
X. PUBLIC COMMUNICATIONS
Mayor Bailey provided a statement prior to public comment. Public comment was provided by Alison Peters, Tanya Little, Sarah Creeley and Susan Keefe.

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

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

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

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

Absent: Council Member Dilli Bhattarai1 -

1. 25-049
Meeting Minutes for the Regular Meeting of January 28, 2024 Meeting Minutes for the Regular Meeting of January 28, 2025Attachments:

APPROVED

2. 25-037 Accept the Investment Report for the Quarter Ending December 31, 2024 RECOMMENDATION:

Accept the Investment Report for the Quarter Ending December 31, 2024 Staff Report - Investment Quarterly Report Ending December 2024 Attach 1 - Quarterly Investment Report December 2024
Attachments:

APPROVED

3. 25-043 Waive Second Reading and Adopt Zoning Amendments to Implement the Housing Element, New State Laws and Other Needed Updates RECOMMENDATION:

Staff recommends that the City Council waive the second reading and adopt Ordinance No. 25-XX (Attachment 1), the proposed amendments to

30 February 11, 2025City Council Meeting Minutes
Hercules Municipal Code Land Use Regulation Tables 13-6.1, 13-12.1, 13-15.1, 13-18.1, and 13-32.1; and amending Section 13-35.320 Accessory Dwelling Units, Chapter 13-36 Two-Unit Development, Chapter 13-42 Design Review, Chapter 13-53 Reasonable Accommodations For Persons with Disabilities, and Chapter 13-60 Definitions, to implement the 6th Cycle Housing Element; comply with Senate Bills No. 450, 477, 745 and 1211, Assembly Bill No. 2162, and the Religious Land Use and Institutionalized Persons Act (RLUIPA); correct identified inconsistencies and finding the action exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3).

Staff Report - Housing Element Text Amendments
Attach 1 - Ordinance
Attachment 2 - Planning Commission Resolution 24-08
Attachments:

Ordinance 554, APPROVED

4. 25-045 Measure J Growth Management Program (GMP) Compliance Checklist for 2022 and 2023 for allocation of Local Street Maintenance & Improvement Funds for Fiscal Years 2022-23 and 2023-24
RECOMMENDATION:

Adopt a Resolution (see Attachment 1) approving the Measure J Growth Management Program (GMP) Compliance Checklist for Calendar Years 2022 and 2023 with the attachments and authorize submittal to the Contra Costa Transportation Authority (CCTA) for disbursement of Measure J Local Street Maintenance & Improvement Return-to-Source Funds for Fiscal Years (FY) 2022-23 and 2023-24.

31 February 11, 2025City Council Meeting Minutes
Staff Report - Measure J GMP Checklist 2022-2023
Attach 1 - Resolution for Measure J GMP Checklist 2022-2023 Attach 2 - Calendar Years-2022-2023-GMP-Checklist-Hercules Checklist 3a - 2022 & 2023 Housing Element Annual Progress Report (Tables A -C)
Checklist 3b - Hercules Circulation Plan link
Checklist 3c - CC Reso 13-008 - Complete Streets Policy Checklist 4a - Franklin Canyon Draft Traffic Impact Study Checklist 4a - Owl Ranch Traffic Impact Study
Checklist 6 - FY 2024-25 Capital Improvement Plan
Checklist 7 - CC Reso 85-164 for Transportation System Management Checklist 8 - Hercules Urban Limit Line - CC Reso 09-007 Checklist 9 - CC Reso 13-118 Growth Management Element GP Amendment
Checklist 9 - Growth Management Element - 2013
Checklist 10 - Willow_Palm Ped Project Signage 2023
Checklist 11 - FY 21-22 & FY 22-23 MOE
Checklist 12 - LSM Reporting for FY 21-22 and FY 22-23
Attachments:

Resolution 25-005, APPROVED
XIII. DISCUSSION AND/OR ACTION ITEMS

1. 25-022 2025 Speed Survey and Recommended Speed Limit Changes RECOMMENDATION:

Receive a report on the 2025 Speed Survey, discuss recommended speed limit changes, and provide direction to staff.

Staff Report - for K-H's Speed Survey Acceptance
Attach 1 - Resolution
Attach 2 - Speed Limit Municipal Code
Attach 3 - Kimley Horn Hercules Speed Survey Final Report_January 2025
Attachments:

Acting City Engineer, Nanda Gottiparthy, presented the item. Public comment was provided by Kofi Opong-Mensah. Council asked questions and provided comment. Acting City Engineer and City Manager, Dante Hall, provided a response. Updated information was also provided for this item. Action was taken on this item.

MOTION: A motion was made by Vice Mayor Kelly, seconded by Council Member Walker-Griffin, to adopt the Resolution 25-006 with the table updated to reflect the correct recommendations indicated by the speed survey. The motion carried by the following vote:

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

32 February 11, 2025City Council Meeting Minutes

Absent: Council Member Dilli Bhattarai1 -

2. 25-047 Juneteenth Event Planning
RECOMMENDATION:

Staff recommends that the City Council honor Juneteenth on Saturday, June 14, 2025, with a flag-raising ceremony and authorize staff to partner with the Hercules Library to provide a more robust event for the community.

Staff Report - Juneteenth EventAttachments:

Parks and Recreation Director, Christopher Roke, introduced and presented the item. Alison Peters, Senior Community Library Manager, was in attendance to answer questions. No public comment. Council asked questions and provided comment. Alison Peters, Senior Community Library Manager, provided a response. Action was taken on this item.

MOTION: A motion was made by Council Member Grimsley, seconded by Council Member Walker-Griffin, to approve the allocation of $200 for the Juneteenth Celebration. The motion carried by the following vote:

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

Absent: Council Member Dilli Bhattarai1 -

3. 25-048
Community Volunteer Program for Housebound Residents
RECOMMENDATION:

Staff recommends that the City Council receive the report, discuss the information contained, and provide direction.

Staff Report-Community Volunteer Program for Housebound Residents
Attachments:

City Manager, Dante Hall, introduced and presented the item. No public comment. Council asked questions and provided comment. Director Roke provided a response. Council provided direction and action was taken on this item.

MOTION: A motion was made by Council Member Grimsley, seconded by Vice Mayor Kelley, to approve the development of a resource guide for the City of Hercules website. The motion carried by the following vote:

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

Absent: Council Member Dilli Bhattarai1 -
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.

33 February 11, 2025City Council Meeting Minutes
XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

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

1. Regional Committee

2. City Council Committees and Subcommittees

3. Commission Liaisons
City Manager Hall and City Attorney, Christie Crowl, had no announcements.

1. Regional Committee
Vice Mayor Kelley reported out on the West County Mayors and Supervisors Meeting

2. City Council Committees and Subcommittees
Vice Mayor Kelley reported out on a field trip she attended with the East Bay Economic Development Alliance.

3. Commission Liaisons
No reports were provided
Community Events-
Council Members reported out on events they attended throughout the City and County, like the Lunar New Year Parade and the Ribbon cutting for the new science building at the Hercules Middle and High School.

Future Agenda Items Request-
Council Member Grimsley requested to revisit the Helping Homebound Residents agenda item. Proposing to work with City Staff to develop a plan. Three out of four Council Members agreed to have it come back to Council in the future.

34 February 11, 2025City Council Meeting Minutes
XVI. ADJOURNMENT
Mayor Bailey adjourned the meeting at 8:16 PM
_________________________________
Dion Bailey, Mayor
Attest:
_______________________________
Eibleis Melendez, City Clerk

35 DIS

CUSSION AND/OR ACTION

AGENDA ITEMS

1. 25-066

2. 25-067

3. 25-050

4. 25-069

5. 25-068
36 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 25, 2025
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Jeff Brown, Acting Public Works Director
SUBJECT: Update on the Hercules Hub and Amendment No.3 with Gray Bowen Scott for a Not to Exceed Amount of $ 562,500 to Provide Project Management and Advance the Funding Plan for The Hub
RECOMMENDED ACTION:

Adopt a resolution authorizing the City Manager to execute Amendment No.3 with Gray Bowen Scott (GBS) for a not-to-exceed amount of $562,500 to continue project management and advance the funding plan for The Hub for a total not-to-exceed contract amount of $1,465,001.

EXECUTIVE SUMMARY:

Hercules is uniquely positioned to advance The Hub, which includes a new train stop and ferry service along the waterfront . Currently, sufficient grant money is available to cover the cost of this contract amendment, which will advance the design and there is sufficient grant money available to cover the cost of this contract amendment, which will advance the design and look to leverage future grant opportunities when infrastructure funding is at the highest level in recent history. Both state and federal legislation has a heightened awareness of the need to address climate change and get people out of cars . Transit- oriented development, which includes both housing and employment elements, is already situated adjacent to the site. This makes the Hub a very competitive project that aligns with both state and federal priorities. Given the $107.7M needed to fully fund the project, entering into a contract amendment with GBS at this time will continue to make the most of this window of opportunity.
25-066
37 BACKGROUND:

The Hub is Hercules’ premier, regional,
state-of-the-art housing and transportation
community along the waterfront. By
connecting thousands of homes with a new
train stop along the Capitol Corridor, bicycle
and pedestrian pathways, bus routes,
carpool options, and ferry service, The Hub
and its surrounding community will be a
model for successful transit -oriented
communities in the Bay Area.

The project has received full environmental
clearance, right of way has been secured,
and $46M i n improvements have been
constructed to date using grant funding.

This includes the extension of John Muir
Parkway and Bayfront Boulevard to provide
direct access from I -80/SR-4 to The Hub;
also, Bay Trail gap closures to the north and south now ensure connectivity to Rodeo, a community of concern, and to the existing trail towards Sante Fe Avenue from Railroad Avenue.

Over the past year under the current contract, GBS has completed and accomplished the following (also includes follow-up notes & tasks):

 The GBS team has been serving as the City’s Project Manager, overseeing the design delivery of the project.
 The GBS team continues to maintain the funding plan for The Hercules Hub.  The City of Hercules secured $850,000 in earmark funding for the Hercules Hub project in March of 2024.
 The GBS team met with Kevin Rodin to discuss securing Affordable Housing and Sustainable Communities (AHSC) funds.
 The GBS tea m applied for the FSP-National program and the CRISI program.

Although the grants were not awarded, the team gained valuable feedback during the debrief and is now pursuing funding from the Corridor ID program in partnership with Capital Corridor Joint Powers Authority.  The GBS team applied for the Sustainable Transportation Planning Grant (STPG) to study the feasibility of additional modes of transportation such as ferry and passenger drones.
 The GBS team met with CCTA, who emphasized the importance of establishing local match funds for future federal funding.
38 ANALYSIS:

[In August of 2022 , the City Council approved a sole source agreement with GBS to develop a funding plan for the Hercules Hub (then called the Regional Intermodal Transit Center) and to advance the Hercules Hub through project management, grant opportunity research, and positioning the project for grant competitiveness.

In January of 2023, the Council approved Contract Amendment No.1 to apply for design phase grant funding through the Federal Railroad Administration’s 2023 Federal ‐State Partnership for Intercity Passenger Rail Program (FSP) and the California State Transportation Agency’s Transit and Intercity Capital Rail Program (TIRCP). The City was awarded $2.4M in TIRCP funding through this effort.

In June of 2023, the Council approved Amendment No. 2 to continue project management, advance the funding plan , and apply for design phase grant funding through the CRISI program, the Corridor ID program, and STPG. As mentioned above, the City’s CRISI grant application was not successful. The City is still awaiting news on the success of our Corridor ID and STPG applications.

Under proposed Contract Amendment No. 3, GBS will continue to manage the funding plan and will begin project development services while the City awaits STPG and Corridor ID grant award s, maintaining project momentum including strategic coordination and advocacy.

GBS’s Amendment No. 3 scope consists of 4 tasks: Project Management, Funding Plan Advancement, Project Development, and STPG Funds, as shown in the table and further described below:

Tasks to be Managed Until Dec. 31, 2026 (2 Years) Budget Task 5: Project Management and Controls $199,500
Task 6: Funding Plan Advancement $206,500
Task 7: Project Development $96,000
Task 8: Management of STPG Study*(Optional Task) $60,500 Totals $562,500
* If the grant associated with Task 8 is awarded, the City Manager would be authorized by City Council to initiate the work of Task 8.

Task 5 – Project Management and Controls
This task is focused on leading the project delivery. Consultant will serve as the City’s Project Manager in providing direct management of the City’s design consultant in respect to contract scope, cost, and schedule. The consultant will serve as the City’s extension of staff for project delivery issues with the City’s partners, stakeholders, and consultants as required and will keep the City’s Project Manager apprised of and involved in project progress on a regular basis. Also, this task includes the management of the Refugio Creek EIR/EIS close-out and the transfer to the John Muir Land Trust. In addition, the 39 Consultant will manage the Bio-Rad coordination and ROW engineering for future land transfer to UPRR.

Task 6 – Funding Plan Advancement
This task is focused on managing the project’s funding plan, evaluating new funding opportunities as they arise, and applying for identified funding programs. It includes strategic stakeholder coordination and advocacy to establish and reinforce stakeholder support for potential funding opportunities.

Task 7 – Project Development
This task is focused on procuring design consultants and coordination with UPRR regarding the Capacity Analysis and Design review, plus any new consultants regarding the time-loss mitigation study and the 30% PS&E.

Task 8 – Management of STPG Study (Optional task)
Based on input received, the City has pursued the STPG study to position the Hercules Hub project for competitiveness for future funding. If the grant associated with this task is awarded, the City Manager will be authorized by the City Council to initiate the work.

This task is focuse d on management of the project’s Scoping Phase for the Ferry and Vertiport project if awarded STPG funding. It includes strategic stakeholder coordination and advocacy to establish and reinforce stakeholder engagement. Procurement and management of the new consultant contracts, including review of invoices and processing amendments as needed. Developing strategies to guide various project issues to resolution and p resenting the final feasibility study report to the City of Hercules City Council, and other stakeholders as needed.

FISCAL IMPACT:

There is sufficient funding to fully fund Amendment No.3 utilizing grants from the Sub- Regional Transportation Mitigation Program (STMP) funded by the West Contra Costa Transportation Commission (WCCTC) . Once Transit and Intercity Capital Rail Program (TIRCP) funds are made available through the California State Transportation Agency (CalSTA), they will be used to pay the balance of the amendment in order to make the residual STMP funds available for other project expenditures.

Amendment No. 3 Funding Source Amount
STMP (2025 Expenditures) $502,000

For the Optional Task, the Sustainable Transportation Planning Grant (STPG) and Capital Reserve from the City of Hercules are proposed to be included in the Adopted FY 24-25 Budget as follows:

Optional Task Funding Sources
STPG $ 54,191
40 Capital Reserve (City of Hercules) $ 6,309 Total $ 60,500

Grand Total $562,500

Below are the cost of the project development scope and the planned solution for funding this work.

2025 & 2026 Funding Plan for the Project Development Phase:

*GBS Contract total $562,500 ($502,000 Rail Station + $60,500 Ferry)

Rail Station & Track 2025 2026 Grand Total STMP TIRCP Corridor ID Grand Total GBS
Project Management 276,500$ 225,500$
*GBS Total 276,500$ 225,500$ 502,000$ 502,000$ HDR
1 Refugio Creek Closeout - EIR/ EIS 50,000$ -$
2 BioRad Coordination and ROW
Engineering for future transfer to UPRR 50,000$ -$ 3 Ongoing Support 25,000$ -$
HDR Total 125,000$ -$ 125,000$ 125,000$ UPRR
1 UPRR Capacity Analysis 175,000$ 75,000$
2 UPRR Design Reviews 50,000$ 165,000$
UPRR Total 225,000$ 240,000$ 465,000$ 250,000$ 215,000$ New Design Consultant
1 Project Study Report Equivalent for STIP
Funds -$ 150,000$
2 Time-loss Mitigation study 25,000$ 25,000$
3 30% PS&E & Env Revalidation/ Track
Design 1,230,000$ 2,455,000$
New Design Consultant Total 1,255,000$ 2,630,000$ 3,885,000$ 1,523,000$ 2,362,000$ Rail Station & Track Total 1,881,500$ 3,095,500$ 4,977,000$ 502,000$ 1,898,000$ 2,577,000$ 4,977,000$ Ferry & Vertiport 2025 2026 Grand Total STPG City of Hercules Grand Total GBS
Project Management 6,000$ 54,500$
*GBS Total 6,000$ 54,500$ 60,500$ 54,191$ 6,309$ New Consultant
Ferry & Vertiport Study -$ 339,583$
New Consultant Total - $ 339,583 $ 339,583 $ 281,373 $ 58,210$ Ferry & Vertiport Total 6,000 $ 394,083 $ 400,083 $ 335,564 $ 64,519$ 400,083 $ Grand Total 1,887,500$ 3,489,583$ 5,377,083$ 837,564 $ 1,962,519$ 2,577,000 $ 5,377,083 $ Project Development Cost by Contractor Funding for 2025 & 2026 41 The financial commitment to date for the GBS contract is as follows:

Approval Date

Authorized
Amount
Original Contract 8/09/2022 $474,753
First Amendment 1/24/2023 $115,579
Second Amendment 6/13/2023 $312,169
Third Amendment Pending $562,500
Total $1,465,001

ATTACHMENTS:

Attachment 1- Resolution
Attachment 2- Letter Proposal including Scope & Budget
Attachment 3 – Hercules Hub Council Presentation
42 HERCULES CITY COUNCIL RESOLUTION NO. XX –

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 3 WITH GRAY BOWEN SCOTT (GBS) FOR A NOT TO EXCEED AMOUNT OF $562,500 TO

CONTINUE PROJECT MANAGEMENT AND ADVANCE THE FUNDING PLAN FOR

THE HERCULES HUB
WHEREAS, the City of Hercules is uniquely positioned to advance The Hercules Hub, which includes a new train stop and ferry service along the waterfront; and

WHEREAS, both state and federal legislation have a heightened awareness of the need to address climate change and promote transit -oriented development, which aligns with The Hub's objectives; and

WHEREAS, given the $107.7 million needed to f ully fund the project, entering into a contract amendment with GBS at this time will optimize the window of opportunity to secure further funding; and

WHEREAS, Contract Amendment No. 3 will continue to manage the funding plan, begin project development services, and maintain project momentum; and

WHEREAS, the tasks under Contract Amendment No. 3 include Project Management and Controls, Funding Plan Advancement, Project Development, and Management of the Sustainable Transportation Planning Grant (STPG) Study; and

WHEREAS, the fiscal impact of Amendment No. 3 includes sufficient funding utilizing grants from the Sub-Regional Transportation Mitigation Program (STMP) and future funds from the Transit and Intercity Capital Rail Program (TIRCP); and

WHEREAS, sufficient grant money is currently available to cover the cost of this contract amendment, which will advance the design and leverage future grant opportunities at a time when infrastructure funding is at the highest level in recent history

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

The City Manager is hereby authorized to execute Amendment No. 3 with Gray Bowen Scott (GBS) for a not to exceed amount of $562,500 to continue project management and advance the funding plan for The Hercules Hub.

Under Contract Amendment No. 3, the tasks to be managed include Project Management and Controls, Funding Plan Advancement, Project Development, and Management of the STPG Study, with budgets as outlined in the amendment.
43 The funding for Amendment No. 3 will be provided through grants from the Sub-Regional Transportation Mitigation Program (STMP) and future TIRCP funds as outlined in the amendment.

PASSED AND ADOPTED by the City Council of the City of Hercules at a regular meeting held on February 25, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
Dion Bailey, Mayor

ATTEST:

______________________________
Eibleis Melendez, City Clerk

44 1211 Newell Avenue, Suite 200,, Walnut Creek, CA 94596 Phone 925-937-0980 Fax 925-947-3177 www.graybowenscott.com

January 29, 2025

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

Dear Mr. Hall:

Gray-Bowen-Scott (GBS) appreciates the opportunity to continue assisting the City of Hercules with the Hercules Hub Project. Based on our discussions with you regarding the City’s current needs, we have included a proposed scope and budget for continuation of project management services and continuation of our work to help the City secure the necessary project funding.

Significant milestones over the course of 2024 are as follows:
 The GBS team has been serving as the City’s Project Manager , overseeing the design delivery of the project. We have initiated regular coordination with CCJPA Planning and CCJPA Engineering to put forth a coordinated effort towards working with UPRR.  The GBS team, with support from Zell & Associates, helped the City secure $850,000 in earmark funding for the Hercules Hub project in March.
 The GBS team continues to maintain the Funding Plan, which is used as a basis for monitoring and applying for future grant funding. The Plan continues to be managed and refined as new funding opportunities arise.
 The GBS team met with Kevin Rodin to discuss the potential of working with his Oakland transit- oriented community project to secure Affordable Housing and Sustainable Communities ( AHSC) funds for the time loss mitigation analysis.
 The GBS team identified and developed a promising grant application for the Federal Rail Administration (FRA)’s Federal-State Partnership for Intercity Passenger Rail – National (FSP - National) program in 2023. Although the project was not selected, the team learned during the grant debrief that the project would be eligible for the Consolidated Rail Infrastructure and Safety Improvements (CRISI) grant program.
 The GBS team developed a promising near -term grant application for FRA’s Consolidated Rail Infrastructure and Safety Improvements (C RISI) program in early 2024 . Unfortunately, it was announced in October 2024 that the project was not selected.  Capitol Corridors Joint Powers Authority reached out to the GBS team in July regarding an opportunity to participate in the Corridor ID program . Since the CCJPA corridor is officially recognized by the FRA , CCJPA can submit a service development plan for the Hercules Hub and two other projects that are eligible for “third stage” project development funding. This would mean federal funding for up to 30% design and NEPA clearance without undergoing a competitive grant process.
 The GBS team met with CCTA, who emphasized the importance of establishing local match funds for future federal funding.
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1211 Newell Avenue, Suite 200,, Walnut Creek, CA 94596 Phone 925-937-0980 Fax 925-947-3177 www.graybowenscott.com

 To broaden the potential scope for funding and to update data in support of the Hercules Hub, the GBS team applied for the Sustainable Transportation Planning Grant (STPG) to study the feasibility of additional modes such as ferry and passenger drones.

The GBS team has completed the scope of work under our current contract. At your request, GBS is pleased to furnish you with the attached amendment request to continue our Project Management and Funding Plan advancement services through the end of 2026 while the City awaits STPG and Corridor ID grant award notifications. To build upon the progress thus far , we propose work continue on four tasks as summarized in the table below. Attached is a detailed scope of work and budget for your consideration.

Task Title Activities by Dec. 31, 2026 Budget
Task 5: Project
Management and
Controls
 Manage and monitor the Construction Cost Estimate and Project Schedule.
 Produce and Review Cost Monitoring Reports.
 Manage the Risk Register and implement mitigation
strategies.
 Estimate the Final Design and Construction Phase
 Oversee Design Consultant.
 Manage the close-out of the Refugio Creek EIR / EIS
 Manage transfer of Refugio Creek to John Muir Land Trust  Manage the BioRad Coordination and ROW Engineering
for future land transfer to UPRR
$199,500
Task 6: Funding Plan
Advancement

 Advocate for the project and strategically coordinate with key funding partners.
 Coordinate with CCJPA and FRA to support Corridor ID
funding.
 Coordinate with CalSTA on TIRCP award conditions.
 Initiate federal Earmark Funding reimbursement with
Caltrans.
 Evaluate new funding opportunities.
 Manage the Funding Plan showing target fund sources
compatible with the Project delivery schedule.
 Manage the Project Study Report Equivalent for STIP
Funds.
$206,500
Task 7: Project
Development

 Manage coordination of UPRR Capacity Analysis.
 Manage Time-loss Mitigation study.
 Coordinate Design Review with UPRR.
 Manage the 30% PS&E and Environment Revalidation/
Track design.
$96,000
*Task 8: STPG Funds  Manage the Ferry & Vertiport Scoping Phase. $60,500

Totals $562,500
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1211 Newell Avenue, Suite 200,, Walnut Creek, CA 94596 Phone 925-937-0980 Fax 925-947-3177 www.graybowenscott.com

* If the grant opportunity is appropriate based upon the work conducted in Task 8 The City Manager would be authorized by City Council to initiate the work of Task 8.

GBS is prepared to make a commitment of time and treat this project as a priority. We appreciate the opportunity to continue assisting the City of Hercules in the effort to secure full funding to construct the Hub and bring new intercity rail service to Hercules. If you have any questions or would like any additional information, please do not hesitate to call me.

Very truly yours,

Leo S. Scott
President

Attachment: Scope of Work
Proposed Budget

cc: Kevin Byrd

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1211 Newell Avenue, Suite 200,, Walnut Creek, CA 94596 Phone 925-937-0980 Fax 925-947-3177 www.graybowenscott.com

EXHIBIT A

CITY OF HERCULES

HERCULES HUB

GRAY-BOWEN-SCOTT
AMENDMENT #3

SCOPE OF WORK
The Gray-Bowen-Scott Team (Consultant) shall continue to provide the City with the following services to support the delivery of the Hercules Hub Project for the remainder of the 202 5 and 2026 calendar year (approximately 2 year). Services are defined in four tasks:

 Task 5 – Project Management & Controls
 Task 6 – Funding Plan Advancement
 Task 7 – Project Development
 Task 8 – STPG Funds

Task 5 - Project Management and Controls
This task is focused on leadership of the project’s delivery. Consultant will serve as the City’s Deputy Project Manager providing direct management of the City’s design consultant contract scope, cost, and schedule. Consultant will serve as the City’s ext ension of staff for project delivery issues with the City’s partners, stakeholders, and consultants as required and will keep the City’s Project Manager apprised of, and involved in, project progress and issues on a regular basis. The specific subtask include:

Contract Management
 Prepare monthly invoices and progress reports.
 Manage the design consultant contracts including review and approval of invoices and processing amendments as needed.

Project Meetings and Communication
 Attend bi-weekly meetings with design consultants to provide guidance and oversight.  Prepare for and attend bi -weekly meetings with the City to provide updates on project delivery and funding status.
 Prepare for and attend monthly meetings with CCJPA to discuss engineering and funding issues and opportunities.
 Arrange and facilitate meetings as needed to address project issues.  Lead and/or attend various project-specific meetings, including meeting preparation.  Report regularly to City on progress, issues, and resource needs.  Provide as-needed project status reports and funding reports.  Serve as the liaison between the project team and the City.  Serve as the primary liaison between the City and key stakeholders.  Work with the City to ensure public questions and concerns are addressed.

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1211 Newell Avenue, Suite 200,, Walnut Creek, CA 94596 Phone 925-937-0980 Fax 925-947-3177 www.graybowenscott.com

Project Execution and Issue Resolution
 Provide leadership to the Project Team, including project vision, delivery goals and team decision- making protocols.
 Develop strategies to guide various project issues to resolution.  Manage the close-out of the EIR/EIS Refugio Creek commitments.  Initiate the transfer of Refugio Creek to John Muir Land Trust.  Manage the future transfer of BioRad property to UPRR.

Project Controls
 Regularly update the project risk register to identify, manage, and communicate project risks and mitigation strategies; implement selected mitigation measures.  Monitor and manage the Project Cost Estimate including escalation and risk contingency.  Estimate project costs for the Final Design and Construction phases.  Compile and monitor all project expenditures against approved funded project budget.  Monitor and manage the detailed project schedule. Document assumptions with respect to project schedule.

Task 5 Deliverables
 Project Cost Estimate
 Project Risk register
 Project Schedule
 Cost monitoring report
 Agreement with John Muir Land Trust to take over the management of Refugio Creek restoration area.  Parcel transfer from BioRad to UPRR

Task 6 – Funding Plan Advancement
This task is focused on management of the project’s Funding Plan to position for identified funding programs and evaluate new funding opportunities as they arise. It includes strategic stakeholder coordination and advocacy to establish and reinforce stakeholder support for potential funding opportunities. The specific subtask include:

Strategic Guidance and Stakeholder Coordination (with Zell & Associates)  The Consultant team will conduct ongoing coordination with key stakeholders to brief them on the find ings and recommendations resulting from past and current planning, technical, and engineering studies to foster and secure support for grant funding. As appropriate, Consultant will strategize with stakeholders to pursue grant funding opportunities consist ent with the Funding Plan. Stakeholders will include groups such as community, business, and advocacy organizations as well as agency partners such as MTC, CCTA, WCCTAC, WestCAT, and WETA.  This subtask includes regular meetings with City management staff t o continually refine and strategize our ongoing work program and coordinate the implementation of our advocacy efforts.

Eric Zell, Zell & Associates, will lead all government relations and public affairs strategies and stakeholder engagement for the team.

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1211 Newell Avenue, Suite 200,, Walnut Creek, CA 94596 Phone 925-937-0980 Fax 925-947-3177 www.graybowenscott.com

Monitor and Update Funding Plan
 Arrange periodic meetings with executive management of funding agencies and the City to facilitate joint decisions on policy -level issues such as funding strategies and programming options.
 Facilitate or participate in meetings with City’s funding partners to achieve consensus on funding opportunities.
 Evaluate new funding opportunities for project eligibility, competitiveness, and timelines.  Monitor and revise the project’s Funding Plan as new opportunities become available.  Manage funding agreement with FRA for the Corridor ID program.  Coordinate with CalSTA on award conditions in respect to TIRCP.  Coordinate appropriation and allocation of Earmark funds.  Manage the Project Study Report equivalent for STIP funds.

Contract Management
 Manage the new consultant contracts including review and approval of invoices and processing amendments as needed for the Project Study for STIP funds.  Prepare monthly invoices and progress reports.

Task 6 Deliverables
 Secure E-76 for the federal earmark funding.
 Project Study Report for STIP funds if necessary.

Task 7 – Project Development
This task is focused on leadership of the project’s delivery. GBS will serve as the City’s Deputy Project Manager providing direct management of consultant’s contract scope, cost, and schedule for coordination with UPRR regarding the Capacity Analysis and Design review plus any new consultants regarding the time-loss mitigation study and the 30% PS&E . Consultants will serve as the City’s extension of staff for project delivery issues with the City’s partners, stakeholders, and consultants as required and will keep the City’s Project Manager apprised of, and involved in, project progress and issues on a regular basis. The specific subtask include:
 Coordinate with UPRR to initiate capacity analysis, including development of associated reimbursement agreement.
 Manage new design consultant for the completion of time-loss mitigation study.  Initiate and manage design review with UPRR in preparation for final design phase.  Initiate and manage 30% PS&E with new design consultant.

Task 7 Deliverables
 UPRR capacity analysis
 Time-loss mitigation study
 Design review with UPRR
 30% PS&E

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1211 Newell Avenue, Suite 200,, Walnut Creek, CA 94596 Phone 925-937-0980 Fax 925-947-3177 www.graybowenscott.com

Task 8 – STPG Funds
If STPG funds are awarded and funded, GBS will perform the following:

Contract Management
 Manage the new consultant contracts, including review and approval of invoices and processing amendments as needed.
 Prepare monthly invoices and progress reports.

Project Meetings and Communication
 Arrange and facilitate meetings as needed to address project issues.  Lead and/or attend various project-specific meetings, including meeting preparation.  Report to City on progress, issues, and resource needs regularly.  Provide as-needed project status reports and funding reports.  Serve as the liaison between the project team and the City.  Serve as the primary liaison between the City and key stakeholders.  Work with the City to ensure public questions and concerns are addressed.

Project Execution and Issue Resolution
 Monitor the Ferry & Vertiport scoping phase
 Develop strategies to guide various project issues to resolution.

Task 8 Deliverables
 Ferry & Vertiport Feasibility Study

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1211 Newell Avenue, Suite 200,, Walnut Creek, CA 94596 Phone 925-937-0980 Fax 925-947-3177 www.graybowenscott.com

EXHIBIT B

CITY OF HERCULES

HERCULES HUB

GRAY-BOWEN-SCOTT
AMENDMENT #3 - BUDGET

Task No. Description of Task Budget
Task 5 Project Management and Controls $199,500
Task 6 Funding Plan Advancement $206,500
Task 7 Project Development $96,000
Task 8 STPG Funds* $60,500
Totals $562,500
* If the grant opportunity is appropriate based upon the work conducted in Task 8 The City Manager would be authorized by City Council to initiate the work of Task 8. 52

1211 Newell Avenue, Suite 200,, Walnut Creek, CA 94596 Phone 925-937-0980 Fax 925-947-3177 www.graybowenscott.com

*Rounded down to $562,500
Project Task Total Cost
Task 5 - Ongoing Project Management and Controls $199,399 Project Management - invoice management, meetings $147,551 Re-estimate the Project Development Phase $20,465
Design Consultant Procurement $12,913
Refugio Creek Closeout - EIR/ EIS - GBS $7,304
Refugio Creek - John Muir Land Trust $3,862
BioRad Coordination & ROW Engineering for future transfer to UPRR - GBS $7,304 Task 6 - Grant Application $206,550
Project Funding Administration $65,992
Corridor ID supplements & FRA Agreements $41,776
TIRCP Allocation & Pgm. Supplement $56,597
STPG application $9,259
Fed Earmark Appropriation & Allocation $22,191
Project Study Report Equivalent for STIP Funds - GBS $10,734 Task 7 - Project Development $96,250
UP Capacity Analysis $27,562
Time-loss Mitigation study $27,562
UPRR Design Reviews $20,563
30% PS&E & Env Revalidation/ Track Design $20,563
Task 8 - Scoping Phase - Ferry & Vertiport Study $60,375 Project Management $9,848
Consultant Procurement $32,333
Conceptual Plan $4,815
Public Outreach $7,122
Advisory Meetings $4,815
Draft and Final Feasibility Plan $1,442
Subtotal Task Name $562,574
Subtotal Optional Task Name $0
Total Hours 2,023
Total Direct Labor (L) $562,574
Fringe + Overhead (F+O) $0
Total Labor + Fringe + Overhead $562,574
Facilities Cost of Capital (FCC) $0
Fee (%*L+F+O) $0
Total Labor Cost $562,574
TOTAL CONTRACT COST $562,574
53 THE HUB

HERCULES
54 Agenda

1. Project Introduction

2. Funding & Stakeholder Update

3. FRA Project Development Phase

4. Amendment Request

5. Next Steps
55 HERCULES
The Hercules Hub is a regional, state-of-the-
art housing and transportation development.

It will connect thousands of housing units
with a new train stop along the Capitol
Corridor , bicycle and pedestrian pathways,
bus routes, carpool options, and a future
ferry service.

The Hub has all the components of the ideal
regional housing and transit center and will
be a model for thriving transit-oriented
communities throughout the Bay Area.

THE HUB
A Regional Model for
Transit -Oriented Development
56 Currently <1 mile from The Hub:
• 5,750 employees
• 4,150 residential units
Pr
oposed/Approved Development <1
mile from The Hub:
• Additional 1,407 residential units
(
including 349 additional units in New
Urbanist Bayfront Project)
• 207-r oom hotel
• 105-r oom ho tel
• Additional 50,000 square foot medical
o
ffice space
Surrounding development
RODEO

HERCULES
PINOLE
57 Hercules Bayfront Prior
to the Path To Transit
Construction
Work Completed to date

PATH TO

TRANSIT
The Project
synergized with
the adjacent
development and
the resulting
improvements
conformed to the
Waterfront
Master Plan
1 2
3 Hercules Bayfront After the
Completion of the Path To
Transit Phase (incl. Creek
Restoration)
Hercules Bayfront Circa 2021 with
Adjacent Development (i.e. The Grand)
58 59
Agenda

1. Project Introduction

2. Funding & Stakeholder Update

3. FRA Project Development Phase

4. Amendment Request

5. Next Steps
60 FUNDING and STAKEHOLDER Update
• Applied for Federal Rail Administration’s FSP-N ational and CRISI applications and were not selected.
• Collaborating with CCJPA for the Corridor ID grant program, which would al
low the Hercules Hub to access project development funding (up to 30% design and NEPA clearance) without undergoing a competitive grant process.
• Met with CCTA to discuss the importance of establishing local match funds f
or future Federal Funding.
• Applied for the Sustainable Transportation Planning Grant (STPG) to study t
he feasibility of additional modes to broaden the potential scope for funding.
61 Agenda

1. Project Introduction

2. Funding & Stakeholder Update

3. FRA Project Development Phase

4. Amendment Request

5. Next Steps
62 FRA Project DEvel0pment phase
Year 2025 2026 2027 2028 2029 2030
Quarter 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Procurement
Capacity Analysis
Project Development
Final Design
63 Project development phase Cost
Rail Station & Track 2025 2026 Grand Total
GBS
Project Management 276,500$ 225,500$
HDR
1 Refugio Creek Closeout - EIR/ EIS 50,000$ -$
2 BioRad Coordination and ROW Engineering for
future transfer to UPRR 50,000$ -$
3 Ongoing Support 25,000$ -$
UPRR
1 UPRR Capacity Analysis 175,000$ 75,000$
2 UPRR Design Reviews 50,000$ 165,000$
New Design Consultant
1 Project Study Report Equivalent for STIP Funds -$ 150,000$ 2 Time-loss Mitigation study 25,000$ 25,000$
3 30% PS&E & Env Revalidation/ Track Design 1,230,000$ 2,455,000$ New Design Consultant Total
Rail Station & Track Total 1,881,500$ 3,095,500$ 4,977,000$ 64 Project development phase Cost
Ferry & Vertiport 2025 2026 Grand Total
GBS
Project Management 6,000$ 54,500$
New Consultant
Ferry & Vertiport Study -$ 339,583$
Ferry & Vertiport Total 6,000$ 394,083$ 400,083$ Grand Total 1,887,500$ 3,489,583$ 5,377,083$
65 Project development phase funding
* TIRCP money will be used in lieu in place of STMP money once it becomes available.

STMP * Corridor ID TIRCP STPG City of Hercules Grand Total R
ail Station & Track Total 502,000$ 2,577,000$ 1,898,000$ -$ -$ 4,977,000$ Ferry & Vertiport Total -$ -$ 335,564$ 64,519$ 400,083$ Grand Total 502,000$ 2,577,000$ 1,898,000$ 335,564$ 64,519$ 5,377,083$ Funding for 2025 & 2026
66 Agenda

1. Project Introduction

2. Funding & Stakeholder Update

3. FRA Project Development Phase

4. Amendment Request

5. Next Steps
67 AMENDMENT 3 - s co pe
• Manage and monitor cost estimate and project schedule, ov
ersee design consultant, Refugio Creek-related EIR/EIS
activities, coordination with BioRad for land transfer to UPRR. • Coordinate with key funding partners and evaluate new f
unding opportunities.
• Manage coordination of UPRR Capacity Analysis, time-loss mi
tigation study, design review, 30% PS&E and environmental revalidation/track design.
• Manage the Ferry and Vertiport Scoping Phase.
68 Agenda

1. Project Introduction

2. Funding & Stakeholder Update

3. FRA Project Development Phase

4. Amendment Request

5. Next Steps
69 Next Steps
• Amend GBS contract
• Continue to work with CCJPA in developing a Service Development Pl
an to obtain Corridor ID funding.
• Procure for new federalized engineering contract.
• Meet with UPRR to start capacity analysis.
• Closeout EIS/EIR related activities related to Refugio Creek. • Work with BioRad on property transfer for ROW.
• Await STPG grant award announcement.
70 Question and
An s w e r
Thank You!!Thank You!
71 DI

SCUSSION AND/OR ACTION

AGENDA ITEM

2. 25-067
72 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 25, 2025
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Jeff Brown, Interim Public Works Director SUBJECT: Update on the City of Hercules Public Works Department RECOMMENDED ACTION:

Receive an update on the City of Hercules Public Works Department.

BACKGROUND:

The Public Works Department is committed to enhancing the lives of residents and strengthening businesses through public space management . The Department is responsible for the design, construction, maintenance , and operations of the built environment, including the transportation network, City-owned buildings, sewer collection system, storm drain system, and City -owned parks. The Department also manages facets of public open space, including fire breaks, trees at the urban interface, slope stability (i.e. landslides), and stream corridors.

The Department has 12 employees and is organized into two Divisions: Engineering and Maintenance and Operations (M&O). Due to the City Engineer's retirement in December 2024, the Engineering Division currently consists of a Contract City Engineer, Associate Engineer, Management Analyst, and Inspector/Specialist. The M&O Division is managed by the Superintendent, who oversees 7 Maintenance Workers and 1 (future) Landscaping and Lighting Coordinator. The Public Wo rks Director/Engineer is the Department Head for both Divisions and reports to the City Manager.

M&O is responsible for maintaining and operating the City’s built infrastructure and open space. A typical day for a Maintenance Worker can consist of landscaping duties, park and facility repairs/maintenance, pothole repair, sewer lift station maintenance, and storm 25-067
73 drain management. M&O employees also serve as first responders during emergencies to ensure roads remain open , are responsible for mitigating f looding impacts during storms, and address sanitary sewer overflows quickly to limit health and safety hazards.

The Engineering Division administers the Capital Improvement Program (CIP) for the planning, design, and construction of new infrastructure . The Division’s tasks include street reconstructions and sewer line replacements; evaluating and analyzing traffic and transportation issues, including traffic calming, traffic impact studies, and regional transportation planning; and regulating and reviewing private development to ensure orderly development and conformity to engineering standards. The Division also issues encroachment permits for work performed by private parties in the public right of way . It also administers the sewer lateral certificate program to reduce infiltration into the public sewer system and prevent backflows into private residences.

ANALYSIS:

During last year’s winter storms, Public Works was fully engaged in combating storm impacts, including unclogging storm drain inlets, removing fallen trees and limbs, and clearing debris. A rotational program for M&O employees has been established during non-working hours to ensure staff is available to respond to emergencies and urgent issues. Since the establishment of Hercules Connect in 2023—the City’s citizen request management application—M&O operations have received and responded to over 1229 service requests.

In the past year, t he Engineering Division completed the Willow/Palm Sidewalk Project and made significant strides to complete the Lower Sycamore Sewer Trunk project. Work has also begun on the Capital Improvement Program for FY 25-26, which is shaping up to be more robust than previous years. Plan checks for the improvements associated with multiple private development projects are also underway. During 2024, the Engineering Division issued 94 encroachment permits and 96 sewer lateral certificates.

Additionally, various administrative tasks are underway, including a sewer fund financial health assessment, a pavement management system update, and managing the design phase of the Hercules Hub Project.

The next several years will present a unique opportunity for organizational change. The Public Works Director/City Engineer has recently retired and several of the Department’s long-term employees may retire in the next 5 years.

Some of the changes needed for the Department to be successful in the future are already underway. This past year, the Department promoted a Maintenance Work II position to a Public Works Supervisor to provide more direct day-to-day supervision of the City’s Corp Yard and recruitments are taking place for the Department’s Director/City Engineer and a Landscape an d Lighting Coordinator . The Department continues to focus on 74 succession planning, maintaining adequate staffing levels, and operational efficiency for the future.

FISCAL IMPACT:

There is no fiscal impact associated with receiving this report.

ATTACHMENTS:

1. Presentation

75 February 25 , 2025
76 I. Public Works Department Overview
II. Recent Accomplishments and Tasks on Hand
III. Focus Moving Forward Including Future
Challenges/Opportunities
77 78
Maintains and Operates:
 Sewer Collection System – 60 miles of underground piping, 6 lift stations, 9,000 sewer lateral connections
 Streets – 60 center line miles of streets, approximately 100 miles of sidewalk, 11 traffic signals
 Parks, Street Landscaping & Urban Forests – 13 parks, street landscaping, Bay Trail & Refugio Linear Trail, open space
 Facilities – City Hall, Senior Center, Library, Community Center Teen Center, Foxboro & Ohlone Community Centers
 Storm Drain System – Needs to be inventoried
79  Administers 5-Year Capital Improvement Program
 Reviews Engineering Design of Private Development Projects  Issues Encroachment Permits, Grading Permits & Sewer Lateral Certificates  Traffic Engineering & Calming
80 81
Facilities total 345
Landscaping
Irrigation 90
Parks 25
Trees 239
Weed Abatement 29
Misc. 124
Landscaping Total 507
Streets
Striping / Pot Hole 114
Signs 22
traffic Signal 15
Street Sweeping 17
Streetlights 73
Storm Drains 21
Streets Total 262
Sewer 5
Sidewalks 61
Illegal Dumping 19
Graffiti 58
Maintenance Total 1257
Engineering 55
Public Works Total 1324
82 Solar Performance (last 10 months)
© ENGIE 2023 – INFRASTRUCTURE

MODERNIZATION AND UTILITIES SAVINGS

PARTNERSHIP
Energy Program Highlights
• Solar production is exceeding projected
pro-forma values
• Solar production is trued up annually
- Smooths monthly variation due to
weather
• Project is projected to exceed pro-forma
by $12,775 in a 12-month period (all
energy measures)
Actual Production Guaranteed Production
83  Annual Sidewalk Repair
Program
 Sidewalks For All Users
 Willow Ave Sidewalk
Project (completed)
84 Sycamore Ave (Lower Trunk Main)
85  Facility's
Assessment Plan
Implementation
 Community Swim
Center Gym Floor
Replacement
 Community Swim
Center Safety Fence
Replacement
 ADA Assessment
Improvement
86  Baywood Tree Replacement
 Beechnut Park
 Victoria Linear Park
 Refugio Park Improvements
 Refugio Lake Improvements
87 In-House Assessment
88 Near-Term Projects/Programs:
 Delivery of The Hub
 Sewer Trunk Replacement
 Implementing Recommendations from the Park Master Plan  Implementing Recommended Facility Improvements
 Pavement Management Program
Future Challenges & Opportunities:
 Stormwater Program, Sanitary Sewer Program, Urban Forest, SB 1383  Public Works Transition Plan
 Public Works Staffing Levels
 PW Organizational Structure
89 90

DISCUSSION AND/OR ACTION

AGENDA ITEM

3. 25-050

91 REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 25, 2025
TO: Mayor and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
SUBJECT: East Bay Wildfire Coalition of Governments Annual Membership Dues
RECOMMENDED ACTION:

Staff recommends that the City Council approve a resolution authorizing the payment of $3,000 in annual membership dues to the East Bay Wildfire Coalition of Governments.

BACKGROUND:

On July 23, 2024, the City Council approved a Memorandum of Understanding (MOU) with the East Bay Wildfire Coalition of Governments (EBWC) to c oordinate wildfire prevention activities to protect the East Bay Hills in Alameda and Contra Costa Counties.

The members of the EBWC include the following individuals:

County/City Members
Contra Costa County: Supervisor John Gioia
Alameda County: Supervisor Elisa Márquez
City of Berkeley: Councilmember Susan Wengraf (Chair)
City of Hercules: Councilmember Alex Walker-Griffin
City of El Cerrito: Councilmember Paul Fadelli
City of Pinole: Councilmember Maureen Toms
City of Richmond: Councilmember Soheila Bana (Alternate) Rodeo-Hercules FPD: Boardmember Marie Bowman
City of Oakland: Councilmember Janani Ramachandran (Vice Chair) Fire Department Group
Alameda County (Chief William McDonald)
Contra Costa County (Assistant Chief Chris Bachman)
City of Berkeley (Assistant Chief Colin Arnold)
City of Oakland (Chief Damon Covington)
25-050
92 Technical Advisory Members
Alliance of Fire Safe Councils (Jon Kaufman)
Lawrence Berkeley National Laboratory (Mike Torkelson)
UC Berkeley (Ruben Lizardo)

According to the MOU, if 100% of the EBWC members agree, the coalition may impose dues to fund activities. At their November 14, 2024 , meeting, the members determined that additional funding is needed for ongoing operations, and the coalition is requesting that the City authorize annual payments of $3,000 per its new fee structure.

ANALYSIS

The effort to create the EBWC has mainly been driven by volunteers, with professional consulting help financed by funds raised by the coalition. To do the work envisioned, professional help is needed for the organizing, program development, fundraising, and management work required to meet the goals of the strategic framework. As mentioned above, the coalition members approved a one-year budget and fee structure, subject to each agency’s governing body approving the new fee for that agency.

A $75,000 budget has been established for FY 2025. Contra Costa County and Alameda County have agreed to contribute 60% of the total fees annually (split equally ). The remaining 40% is proposed to be divided between the local member jurisdictions based on population size (see chart below). There is a proposed minimum fee of $3,000 for all members. It is unclear whether the EBWC dues will increase after FY 2025.

FISCAL IMPACT:

The annual fiscal impact for membership in the East Bay Wildfire Coalition of Governments is $3,000 annually. There is sufficient funding available in the FY 2024 - 2025 Annual Budget for this expenditure . Future payments would be considered in the City’s regular budget preparation and approval process.

93 ATTACHMENTS:

1. Resolution

2. Staff Report – July 23, 2024, Approval of MOU

3. Resolution - July 23, 2024, Approval of MOU

4. MOU for Coordination of Wildfire Prevention Activities to Protect the East Bay Hills in Alameda and Contra Costa Counties

5. WPCG - Overview of Needs to Be Addressed and Related Efforts

6. East Bay Hills Wildfire Prevention & Coordination Presentation

94 HERCULES CITY COUNCIL RESOLUTION NO. XX –

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES APPROVING AN ANNUAL PAYMENT OF $3,000 FOR MEMBERSHIP DUES TO THE EAST BAY

WILDFIRE COALITION OF GOVERNMENTS
WHEREAS, On July 23, 2024, the City Council approved a Memorandum of Understanding (MOU) with the East Bay Wildfire Coalition of Governments (EBWC) to coordinate wildfire prevention activities to protect the East Bay Hills in Alameda and Contra Costa Counties; and
WHEREAS, The MOU indicates that if 100% of the EBWC members agree, the coalition may implement dues to fund operational activities; and
WHEREAS, The effort to create the EBWC has mainly been driven by volunteers, with professional consulting help financed by funds raised by the coalition; and WHEREAS, To do the work envisioned, professional help is needed for the organizing, program development, fundraising, and management work required to meet the goals of EBWC’s strategic framework; and
WHEREAS, 100% of the EBWC members approved a one-year budget and fee structure, subject to each agency’s governing body approving the new fees for each agency; and WHEREAS, a minimum fee of $3,000 for all member agencies has been proposed; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hercules approves the payment of $3,000 in annual membership dues to the East Bay Wildfire Coalition of Governments.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 25th day of July 2025, by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
Dion Bailey, Mayor

95 ATTEST:

______________________________
Eibleis Melendez, City Clerk

96 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
SUBJECT: Approval Of East Bay Wildfire Prevention Coordinating Group Memorandum of Understanding

RECOMMENDED ACTION:

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

BACKGROUND:

The risk of catastrophic wildfire is growing due to changing conditions driven by climate change. The Camp Fire, which sw ept through the town of Paradise in 2018 causing 85 deaths and destroying more than 18,000 buildings, was the deadliest and most destructive wildfire in California’s history. The wildfire that swept across parts of Maui, destroying much of Lahaina on August 8, 2023, killed at least 97 people, making it one of the deadliest in the nation.

A wildfire that gains enough momentum during these extreme conditions is virtually unstoppable until winds change. Embers flying ahead of a firestorm can easily igni te homes in suburban and urban areas outside of the hills. This occurred during the 2017 Tubbs Fire which raced through the Coffey Park neighborhood in Santa Rosa. 97 Additionally, t he California Department of Forestry and Fire Protection (Cal Fire) has determined that the East Bay Hills along the Alameda and Contra Costa Counties border, extending north to Hercules and south to Fremont, is a high wildfire risk zone. Given the growing danger of wildfire, a regional approach to mitigating risk is practical. Wildfire does not respect geographic boundaries, so coordination and collaboration between jurisdictions are essential.

The East Bay Wildfire Prevention Coordinating Group is a grassroots coalition of community organizations working with county staff and elected officials who desire to address threats from wildfire.

ANALYSIS:

Coordination among the many jurisdictions, fire districts, and other regional agencies in the East Bay wildfire zone is a challenge without a clear framework for coordination. The East Bay Wildfire Prevention Coordinating Group initiated an effort to facilitate the coordination of wildfire prevention efforts in the East Bay Hills in 2019. Attached to this report is an overview of the needs to be addressed by the group (Attachment 3). Initially, the group secured endorsements for a potential Joint Powers Agency (JPA) and made preliminary presentations to elected bodies and commissions to obtain support for a joint resolution that will allow local jurisdictions to explore the forma tion of the JPA. From December 2021 through June 2022, more than 20 jurisdictions and agencies participated in several workshops for jurisdiction and agency representatives to consider a governing structure, goals, funding strategies, and implementation approach.

These workshops resulted in the nomination of a smaller working group composed of both fire professionals and elected officials from Alameda and Contra Costa Counties, and the Cities of Berkeley, Oakland, Richmond, and Pinole, and the Moraga-Orinda Fire Protection District. In the summer of 2022, the working group made the recommendation to pursue the development of a Memorandum of Understanding (MOU) in lieu of forming a new JPA. In June 2023, public officials representing 28 jurisdictions met to discuss the final draft of the MOU.

The final MOU establishes the Wildfire Prevention Coordinating Group’s primary purpose, which is to provide regional coordination among elected officials and policy support to fire chiefs and their staff for the following:

1. The development of model fire codes; and

2. The development of joint plans to reduce flammable vegetation and replace it with wildfire-resistant vegetation where appropriate; and

3. To identify and apply for state, federal, or other funds to assist with wildfire risk mitigation activities; and
98 4. To support planning for wildfire evacuations and response, especially where efforts cross jurisdictional boundaries between one or more of the Participating Agencies; and

5. To work cooperatively to influence legislation at the State level to mitigate wildfire risk and to make wildfire safety a priority.

The City of Pinole, the City of Berkeley, the City of Oakland, Contra Costa County, Contra Costa County Fire, Alameda County, Alameda County Fire, the City of Richmond, the City of El Cerrito, and the Kensington Fire Protection District, have all approved the MOU.

FISCAL IMPACT:

This action does not have any direct fiscal impact. WPCG members may implement dues to fund activities if agreed to by 100% of WPCG members.

ATTACHMENTS:

1. Resolution

2. MOU for Coordination of Wildfire Prevention Activities to Protect the East Bay Hills in Alameda and Contra Costa Counties

3. WPCG - Overview of Needs to Be Addressed and Related Efforts

4. East Bay Hills Wildfire Prevention & Coordination Presentation 99 HERCULES CITY COUNCIL RESOLUTION NO. XX –

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES APPROVING

THE EAST BAY HILLS REGIONAL WILDFIRE PREVENTION AND COORDINATION MOU
WHEREAS, the risk of catastrophic wildfire is growing due to changing conditions driven by climate change; and
WHEREAS, wildfire does not respect geographic boundaries, so coordination and collaboration between jurisdictions are essential; and
WHEREAS, wildfire’s frequency and intensity demand regional wildfire prevention strategies and actions to keep residents safe; and
WHEREAS, the California Department of Forestry and Fire Protection (Cal Fire) has determined that the East Bay Hills along the Alameda and Contra Costa Counties border, extending north to Hercules and south to Fremont, is a high wildfire risk zone; and WHEREAS, Coordination among the many jurisdictions, fire districts, and other regional agencies in the East Bay wildfire zone is a challenge without a clear framework for coordination; and
WHEREAS, the East Bay Wildfire Prevention Coordinating Group has established a coalition of community organizations working with county staff and elected officials who desire to address threats from wildfire; and
WHEREAS, the East Bay Wildfire Prevention Coordinating Group has presented an MOU for participation in the planning and associated wildfire prevention activities.

NOW, THEREFORE, BE IT RESOLVED , that the City Council of the City of Hercules approves the Memorandum of Understanding for Coordination of Wildfire Prevention Activities to Protect the East Bay Hills in Alameda and Contra Costa Counties.

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
100
ATTEST:

______________________________
Eibleis Melendez, City Clerk
101

MEMORANDUM OF UNDERSTANDING FOR COORDINATION OF WILDFIRE

PREVENTION ACTIVITIES TO PROTECT THE EAST BAY HILLS IN ALAMEDA AND

CONTRA COSTA COUNTIES

This Memorandum of Understanding (“MOU”) is entered into as of , 2024, (the "Effective Date") by and between the following agencies (referred to herein individually as a “Participating Agency” and collectively as the “Participating Agencies"):

[[List of agencies]]; and any other New Participating Agency in accordance with Section 4 of this MOU.

Recitals

A. The East Bay Hills along the border of Alameda and Contra Costa Counties, and extending north to Hercules and south to Fremont, is a high wildfire risk zone. As wildfires do not respect political boundaries, fire prevention and vegetation management are regional efforts that require coordination among the many jurisdictions, fire districts, and other regional agencies in the East Bay wildfire zone.

B. While there are strong regional coordinating efforts that have been long established, the pace of climate change and its impacts to wildfire in the region call for more coordination at the governing body level. With support from community organizations concerned with wildfire prevention, a group of public officials representing the counties, municipalities and fire districts in the East Bay Hills has come together to form a structure for elected officials to meet their common goals regarding regional wildfire prevention, including providing governance and policy support towards regional efforts to lobby for legislation and funding, improve grant funding and wildfire hazard reduction, resulting in the development, execution and implementation of this MOU. This group desires for the Counties of Alameda and Contra Costa, together with all municipalities and fire districts in the East Bay Hills that include areas in high wildfire risk zones, as determined by the California Department of Forestry and Fire Protection (CAL FIRE), to sign this MOU.

C. Each of the Participating Agencies performs wildfire prevention activities, including but not limited to adopting and implementing fire codes; enforcing weed/overgrown vegetation hazard abatement standards; planning, coordinating and applying for local and regional grants, implementing wildfire hazard identification and mitigation programs; and engaging in separate and joint wildfire emergency response planning.

D. Staff members of certain Participating Agencies currently work together on common endeavors, particularly within Contra Costa County and within Alameda County. These efforts are expected to continue. The Participating Agencies desire to better coordinate these activities at both the governing body and staff levels to improve their efficacy and efficiency, with the shared goal of increasing each Participating Agency’s respective level of service to the residents and property owners in the region.

E. In furtherance of this goal, the Participating Agencies desire to create and benefit from opportunities for cross-agency governing body communication and cooperation related to wildfire prevention in the East Bay Hills, without altering any of the Participating Agencies’ jurisdictional boundaries, existing cooperative efforts at the staff or Board/Council levels, or create new legal authorities.

F. The Counties of Alameda and Contra Costa are subdivisions of the State of California with responsibility for adopting and enforcing Fire Codes within all unincorporated 102

areas of the County, though separate fire protection districts and municipalities provide fire prevention and suppression services throughout the entire County.

G. The municipalities of [list of municipalities] are municipal corporations located in Alameda and Contra Costa Counties with responsibility for providing fire prevention and fire and emergency response services within their respective jurisdictions, whether directly or by contract with a local fire protection district.

H. The municipalities of [list of municipalities] are municipal corporations located in Alameda and Contra Costa Counties in which fire prevention and fire and emergency response services are provided by local fire protection districts.

I. Each of the counties listed in Recital F, above, is responsible for ratifying a Fire Code, and enforcing portions thereof, within the unincorporated portions of its respective jurisdiction.

J. Each of the municipalities listed in Recitals G and H, above, is responsible for ratifying a Fire Code, and enforcing portions thereof, within its respective jurisdiction.

K. The [list of fire protection districts] Districts are organized under the Fire Protection District Law of 1987 (Health & Safety Code § 13800 et seq.) to provide fire prevention and suppression services within their jurisdictions within portions of Alameda and Contra Costa Counties.

NOW THEREFORE, the Participating Agencies agree as follows:

1. Shared Intent. The Participating Agencies desire to collaborate on strategies and activities to minimize wildfire hazards in the East Bay Hills by:

A. Providing regional coordination among elected officials and policy support to fire chiefs and their staff in developing model fire codes.

B. Providing regional coordination among elected officials and policy support to fire chiefs and their staff in developing and implementing joint plans to reduce flammable wildland vegetation and replace it with wildfire resistant vegetation where appropriate.

C. Working with regional partners including the Hills Emergency Forum and local fire chiefs to identify and apply for state, federal or other funds to assist with wildfire risk mitigation activities including (but not limited to) risk identification, planning, and vegetation removal from public and private lands, protecting sensitive wildlife habitats and native plant landscapes, and supporting private property owners to implement home hardening activities.

D. Supporting the planning and coordination efforts of fire chiefs and their staff to plan wildfire evacuations and response, especially where these efforts cross jurisdictional boundaries between one or more of the Participating Agencies.

E. Working cooperatively to influence legislation at the State level to support resources and policies to mitigate wildfire risk and to make wildfire safety a priority.

2. Term of Agreement. The term of this MOU will commence on , 20 and continue unless terminated pursuant to Section 7, below.

103

3. Co-operative Structure: East Bay Hills Regional Wildfire Prevention Coordinating Group. The Participating Agencies agree to form an East Bay Hills Regional Wildfire Prevention Coordinating Group (WPCG) as described below. The WPCG's responsibilities will be executed in a manner consistent with the Participating Agencies' individual fire prevention responsibilities.

A. WPCG Members.

Each Participating Agency will appoint one member and one alternate from its governing body to serve on the WPCG. More specifically, all WPCG members and alternates shall be elected or appointed members of Boards of Supervisors, City or Town Councils, Boards of Directors, or a functional equivalent. Upon authorizing execution of this MOU, each Participating Agency will endeavor to identify its member and alternate within two months. A quorum of the WPCG will consist of representatives of 50% plus one of the Participating Agencies

B. Principles. The WPCG will adhere to the following principles:

i. Each member of the WPCG commits to actively advance the Shared Intent described in Section 1 of this MOU.

ii. The WPCG will provide a means of coordination, information sharing and peer review concerning means of accomplishing the Shared Intent described in Section 1 of this MOU.

iii. Signing this MOU and appointing a member to the WPCG does not obligate any Participating Agency to include other Participating Agencies in their individual wildfire prevention and risk mitigation activities.

C. Duties. The WPCG will undertake the following duties:

i. Hold open and public meetings in accordance with a regular meeting schedule established by the WPCG, not less than quarterly.

ii. Establish goals, procedures and programs, as necessary, for accomplishing the Shared Intent outlined in Section 1 of this MOU.

iii. Designate a Fiscal Agent, as further described in Section 3.F, and provide policy oversight, advice and direction to the Fiscal Agent.

iv. Develop and implement a plan for staff support of WPCG activities and objectives, whether provided by members from one or more Participating Agency, or one or more other consulting entities hired the WPCG (such as private companies, other public entities, community-based organizations, or other non-profit organizations).

v. Propose a dues structure to fund WPCG activities, and implement if so agreed by 100% of WPCG members.

vi. Apply for grants or other funds that may become available for joint use by the Participating Agencies, if so agreed by the WPCG members.

vii. In the event that either (i) a dues structure is instituted, or (ii) grants or other funds are received: Adopt, monitor and revise a budget for expenditure or 104

distribution of such funds on an annual basis (or other timeframe established by the WPCG, taking into account the life cycle of various grants and Participating Agency contributions).

The budget will generally outline the staffing assignments and resources needed to accomplish the funded projects.

D. Chair. At the first meeting of each calendar year, the WPCG will elect a Chair for purposes of facilitating meetings of the WPCG and overseeing development of the agenda, with whatever assistance the Chair requires.

The Chair also may create a stakeholder advisory group consisting of individuals such as representatives of other public agencies, Firesafe Councils, neighborhood or other community- based organizations, and other organizations owning land and/or serving communities of residences and businesses in the East Bay Hills wildfire zone.

E. Decision Making. Except where otherwise noted in this MOU, the WPCG shall make decisions only with an affirmative vote of a majority of the WPCG members (or their alternates, in the members' absence). Additional decision-making procedures may be established by the WPCG as needed.

F. Designation of a Fiscal Agent. The WPCG will designate one of the Participating Agencies to serve as the WPCG's "Fiscal Agent," in which role that entity will (i) serve as the WPCG treasurer and (ii) enter into contracts on behalf of the WPCG. The WPCG will review the designation of the Fiscal Agent not more often than once every three years and with at least six months of time for the then-current and newly-selected agencies to prepare for the transition. The selection is subject to approval by the governing body of the newly-selected entity. In the event of a new designation and approval of the governing body of the newly- selected Fiscal Agent, the then-current and newly-selected Fiscal Agents will seek approval from their governing bodies to (i) transfer funds or access to WPCG accounts to the new Fiscal Agent, (ii) assign all outstanding WPCG-required contracts to the new Fiscal Agent, and (iii) take such other actions as may be necessary or convenient to effect the transition of the Fiscal Agent role. The WPCG will establish a process for reimbursing the Fiscal Agent for its actual costs and expenses accrued in performing its duties under this MOU, including for staff time based on then-current hourly rates of compensation.

4. Addition of Participating Agencies. Additional municipalities, special districts, and other public agencies may become Participating Agencies after obtaining approval of (a) their governing bodies, and (b) the WPCG. Any additional Participating Agency must evidence its agreement to the terms of this MOU, or a subsequent restatement of this MOU, by executing a signature page in the same form used by the original Participating Agencies and accepting the then-current terms of this MOU. Counter-signature by only the Fiscal Agent is required for the additional Participating Agency to be bound by the terms of this MOU with all other signatories to this MOU.

5. Employment of Personnel. The employees of each Participating Agency coordinating services pursuant to this MOU are not, and shall not be deemed, employees of any of the other Participating Agencies for any purpose. Each Participating Agency shall be solely responsible for all salary, benefits, workers’ compensation, and insurance for its personnel providing services pursuant to this MOU, and said personnel shall be considered solely employees of the Participating Agencies for all supervisory, disciplinary and other employment related purposes.

6. Litigation Support. The Participating Agencies will make their employees available to testify in any litigation brought regarding work performed under this MOU. Should a 105

Participating Agency request that another Participating Agency’s employees testify in litigation following the termination of this MOU, the requesting Participating Agency shall compensate the Participating Agency that is fulfilling the request for employees’ costs and expenses in preparing for, traveling to, and testifying in such matters at the employee’s then current hourly rate of compensation, unless such litigation is brought by the requesting Participating Agency or is based solely on allegations of the Participating Agency’s negligent performance or wrongdoing.

7. Termination or Withdrawal. At any time and without cause, a Participating Agency may terminate its participation in this MOU by giving sixty (60) days’ prior written notice to the other Participating Agencies.

8. Indemnification. Each of the other Participating Agencies will jointly indemnify, and hold harmless the Fiscal Agent and its directors/councilmembers/supervisors, officers, employees and agents (collectively, “Indemnitees”) against all liability, claims, suits, actions, costs or expenses arising from loss of or damage to property, and injuries to or death of any person (including but not limited to the property or employees of each Participating Agency) when arising out of performance of this MOU.

The indemnifying Participating Agencies’ obligation to defend includes the payment of all reasonable attorneys’ fees and all other costs and expenses of suit, and if any judgment is rendered, or settlement entered, against any Indemnitee, the indemnifying Participating Agencies must, at their expense, satisfy and discharge the same.

This Section 8, Indemnification, will survive termination or expiration of this MOU.

9. General Provisions.

A. Not a Joint Venture or Joint Powers Authority. The Participating Agencies intend by this MOU to establish only a coordinating arrangement with regard to their respective individual and joint fire prevention activities, and do not intend to create a joint powers agency, partnership, joint venture, or joint enterprise at this time.

B. No Third-Party Beneficiary. This MOU is only for the benefit of the Participating Agencies as corporate entities and shall not be construed as or deemed to operate as an agreement for the benefit of any third party or parties. This MOU does not entitle any third party or parties to any right, benefit, position, or right of action of any kind for any reason whatsoever.

C. Notices. All written notices required or permitted to be given under this MOU will be deemed made when received by the other party or parties at its/their respective address(es) as indicated on its/their Signature Page(s), attached at the end of this MOU.

D. Waiver. No failure on the part of any Participating Agency party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that any Participating Agency may have hereunder, nor does waiver of a breach or default under this MOU constitute a continuing waiver of a subsequent breach of the same or any other provision of this Agreement.

E. Counterparts. This MOU may be executed in one or more counterparts, each of which shall be considered an original and all of which constitute a single instrument. 106

F. Severability. If any provision of this MOU or the application thereof to any person, entity or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this MOU, or the application of such provision to persons, entities or circumstances, other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each other provision of this MOU shall be valid and enforceable to the fullest extent permitted by law.

G. Amendment. No modification, waiver, mutual termination, or amendment of this MOU is effective unless made in writing and signed by all of the Participating Agencies.

H. Disputes. In any dispute over any aspect of this MOU, the prevailing party shall be entitled to reasonable attorney’s fees and costs.

I. Governing Law. This MOU, regardless of where executed, shall be governed by and construed to the laws of the State of California. Venue for any action regarding this Agreement shall be in the Superior Court of Alameda or Contra Costa County.

J. Existing Agreements. This MOU supplements, and does not replace, any prior or future agreements between any two or more Participating Agencies, including for contracted, shared or cooperative fire prevention and/or emergency medical services .

IN WITNESS WHEREOF, the parties have caused this MOU to be executed effective as of the day and year first above written.

[[SIGNATURE PAGES FOR EACH SIGNATORY AGENCY]
107
1 East Bay Hills Wildfire Prevention Coordination
Overview of Needs to Be Addressed and Related Efforts
Updated November 2022 .

This memo describes the unmet needs for wildfire prevention planning and implementation that exist in the East Bay Hills. It also considers existing efforts related to wildfire prevention and emergency services, and explains how additional coordination is needed.

Wildfire Prevention Needs
There is increasing evidence that the best means of protection against the loss of lives, homes and infrastructure from wildfire in the Wildland Urban Interface (WUI) are to reduce fuel through comprehensive vegetation management, to encourage homeowners to ‘harden’ their homes, and to ensure adequate evacuation routes and planning.

The multiple cities and agencies in the East Bay Hills have very different standards and practices in regard to these wildfire prevention strategies, creating gaps and hazards. Given the nature of wildfire, the lack of consistent prevention strategies in the East Bay Hills threatens all the communities in the region. An Memorandum of Understanding (MOU) regarding wildfire prevention among jurisdictions and agencies in the East Bay Hills would create a consistent approach that would reduce the risk of wildfire in the entire area.

A portion of the information in this section comes from a White Paper prepared by the Association of Bay Area Governments / Metropolitan Transportation Commission (ABAG / MTC) in 2018 entitled Bay Area Wildland Urban Interface: Review of Risks, Plans, and Strategies and available at https://abag.ca.gov/sites/default/files/fire-study-final.pdf.

Following are some specific examples of the needs that could be addressed:

1. Coordinated Regional Vegetation Management and Firebreaks. Managing vegetation in undeveloped portions of the East Bay Hills WUI and construction of firebreaks and other vegetation management techniques throughout the area will require coordination among various jurisdictions, public agencies, and private land holders. Without a clear and shared strategy, it may be difficult to build consensus on how to implement vegetation management and fire breaks across political boundaries. A strong regional vegetation management and firebreak strategy supported by high-quality data and scientific and professional expertise would enable effectiveness, efficiency, and consistency. An effective program must be based on current scientific understanding of wildfire behavior in the wildland-urban interface.

2. Grant Procurement. Many of the needs presented here point to the need for additional funding for fire prevention projects. Local jurisdictions often lack the resources to compete for grants for fire safety projects, and they may not be as competitive in grant processes when they act as individuals as they would be if they applied together.

3. Coordination of Planning Processes and Documents. The ABAG/MTC White Paper highlights the large number of overlapping and non-comprehensive planning documents that address fire safety planning in the Bay Area. Nowhere is there a comprehensive, accepted plan for 108
2 vegetation management throughout the East Bay Hills. For example, there are 37 different strategies across the Bay Area’s various fire prevention planning documents that address vegetation management projects.

4. Consistent Regional Data Collection and Analysis. While the quality of available data and technology to inform wildfire prevention efforts varies significantly among Bay Area jurisdictions, several new data sources are currently being developed (for example by the RPP and EBRPD processes, both of which are described below). However, local jurisdictions may not have the means to evaluate this data for its implications for local planning. A coalition of jurisdictions would have the resources to collect any needed additional data and to analyze data as a foundation for fire safety planning.

5. Comprehensive and Regionally-Targeted Education and Information for Private Property Owners. According to the ABAG/MTC White Paper, there are 94 different strategies related to wildfire prevention education identified in the Bay Area’s multiple wildfire prevention planning documents. Additionally, there are dozens of educational resources that aim to provide advice to homeowners and other property owners on topics such as vegetation management and home hardening. A coordinated effort could develop a single set of materials specific to the East Bay Hills, for distribution throughout the region, thereby providing a single, trusted resource for homeowners.

6. Regionally-Consistent Ordinances for Local Adoption. According to the ABAG / MTC White Paper, many urbanized areas within the Bay Area that are susceptible to wildfire risk are not currently covered by appropriate fire ordinances. While the State has recently revised and strengthened its code, it is not specific to the needs of the East Bay Hills, which require stronger provisions. Jurisdictions in the region are already working together to develop a model for consistent, strengthened fire codes and ordinances for adoption throughout the region.

Working under the MOU, they could continue this work more effectively both in the current round of 2022 fire code updates and in the future.

7. Enforcement. The ABAG / MTC White Paper also notes a lack of consistency in enforcement of fire safety regulations. A coalition of jurisdictions could work together to secure funds to allow for increased local enforcement and could also develop a coordinated approach to enforcement to ensure that all jurisdictions are enforcing relevant codes in similar ways. If desired, it could also help form a regional enforcement agency in jurisdictions that opt for regional rather than local enforcement.

8. Subsidies and Grants for Activities on Private Land. Jurisdictions in the region have varied capacity to provide subsidies and grants for homeowners who are unable to cover the costs of improvements to their properties such as vegetation management and structural hardening. A regional body could gather and distribute resources for this purpose based on both need and locational importance in regard to prevention of potential wildfires.

9. Sharing of Technology and Assets. There are a number of fire prevention and emergency management technologies and assets already in place in individual jurisdictions covering the East Bay Hills, but these technologies and assets are not necessarily available from one jurisdiction to the next, and not all jurisdictions have the resources to acquire these technologies and assets on their own. A coordinated approach could facilitate sharing of existing 109
3 assets and technologies, and could also acquire and develop new assets and technologies that could be available to all member agencies.

10. Neg
otiation of Reduced-Price Services. Some fire prevention services, such as vegetation removal, are currently procured by individual agencies from private entities, and each agency must negotiate its own pricing. Smaller agencies in particular may pay a premium for such services since they may have less purchasing power than they would as part of a regional consortium. Others have not been in a position to fund vegetation management programs to any extent. Coordinated negotiation for services on behalf of all participating jurisdiction could result in cost savings to the individual jurisdictions.

Other Efforts
There are several ongoing efforts aimed at wildfire prevention and emergency response in the East East Bay Hills. An MOU would complement (and not be redundant with) these efforts. While enlarging the scope of an existing agency may seem preferable to forming a new one, we have explored existing agencies, including those noted below, and concluded that an additional mechanism for regional coordination is needed. This section provides an overview of these other efforts, and explains how they may be augmented by a more comprehensive regional coordination approach:

1. Hills Emergency Forum (HEF): The Hills Emergency Forum is a consortium of nine jurisdictions and agencies formed after the 1991 Oakland Hills Fire that exists to coordinate the collection, assessment and sharing of information on the East Bay Hills fire hazards and to provide a forum for building interagency consensus on the development of fire safety standards and codes, incident response and management protocols, public education programs, multi-jurisdictional training, and fuel reduction strategies.

The
HEF has proven itself to be an effective vehicle for information sharing, but it has little independent funding, it is composed of staff only (without direct oversight by elected officials), it has no policy-making ability, and it has focused predominantly on fire suppression. It also does not include all agencies that could be involved in an MOU, and the HEF rejected a proposal to increase items membership to include additional agencies. A coalition of jurisdictions formed by a Memorandum of Understanding (MOU) would include additional agencies and amplify the efforts of the HEF by potentially increasing funding and staffing, engaging in additional programs, and providing a more effective vehicle for policy coordination with a distinct focus on fire prevention.

2. Regional Priority Plan (RPP): The Alameda County Resource Conservation District (ACRCD) and the Contra Costa County Resource Conservation District (CCRCD) have received a grant from the Coastal Conservancy to develop a Regional Priority Plan (RPP) that is intended to address wildfire issues (primarily in wildlands areas) of both Alameda and Contra Costa Counties.

According to the RPP website, the RPP will describe the existing conditions of the wildlands in the two counties and recommend a set of priority projects aimed at reducing risk and damage to sensitive resources and communities.

The RP
P is focused on wildland areas, rather than areas in the Wildland-Urban Interface (WUI) and it also does not aim to create a coordinating body among jurisdictions. It appears that the 110
4 RPP may provide a vehicle for further planning and financing of projects in the eastern wildland and agricultural portions of the two counties, and these provisions could be augmented by an effort focusing on urbanized areas and the WUI.

3. Community Wildfire Protection Plan (CWPP): A CWPP is a plan developed through a collaborative framework established by the Wildland Fire Leadership Council and agreed to by state and local governments and other stakeholders in the vicinity of the planning area. A CWPP identifies and prioritizes areas for hazardous fuel reduction treatments and recommends measures to reduce structural ignitability in areas at risk of wildfire. There are separate CWPPs for Alameda and Contra Costa Counties, both prepared by the Diablo Firesafe Council.

The CWPPs provide valuable background information about wildfire planning in the two counties, and they list a compendium of projects that might be undertaken to lessen wildfire risk. However, they do not provide funding, staffing or an interjurisdictional organizational framework to make these projects a reality.

4. EBRPD Wildfire Risk and Fine Scale Vegetation Mapping. The East Bay Regional Park District (EBRPD) is leading an effort to create two separate sets of maps regarding wildfire in both Alameda and Contra Costa Counties. The Wildfire Risk Assessment Mapping process is already fully funded and underway, and EBRPD and its partners are also engaged in fundraising to complete Fine Scale Vegetation Mapping of both counties.

These mapping projects will provide valuable information about fire risks and fuel loads, and they will be important tools for future vegetation management efforts and fire risk assessments.

However, they will not provide funding, staffing or an interjurisdictional organizational framework to complete fire prevention projects.

5. East Bay Regional Communications System Authority (EBRCSA): The EBRCSA is a Joint Powers Authority created in 2007 and dedicated to building, owning and operating a state-of-the art emergency communications system for the public agencies within Alameda and Contra Costa Counties. The EBRCSA includes 43 member agencies consisting of both counties, 30 cities, 6 special districts, 3 colleges, the Dublin-San Ramon Services District, and the California Department of Transportation, with a Board of Directors made up of 23 representatives consisting of elected officials, police chiefs, fire chiefs, and city managers.

The EBRCSA provides a useful model for a bi-county effort addressing emergency management issues. The organizational structure and the steps undertaken to form the EBRCSA may prove instructive in looking at the formation of a wildfire prevention coalition in the East Bay Hills.

However, the EBRCSA is focused solely on emergency communications, and would not be a vehicle for wildfire prevention activities.
111
East Bay Hills Wildfire Prevention & Coordination
A grassroots advocacy effort to create a formalized agreement to reduce wildfire threat throughout the East Bay
Photo credit: Julia Sumangil Photography
112
Increasing Threats
In the face of increasing threats from wildfire, it is time for a new, more effective, regional approach to keep residents safe.

Regional Issue
Wildfires do not respect political boundaries so fire
prevention and vegetation management should be
regional efforts .

Difficult to Coordinate
Coordinating among the many jurisdictions is a
challenge without a specialized mechanism
Guiding Principles for a
Regional Approach to
Wildfire Prevention
113
Opportunities for Wildfire Prevention
Coordination
» Established coordination exists amongst fire officials » East Bay WUI areas with highly local needs and requirements (non- native species, high density)
» No dedicated staff for regional wildfire prevention coordination » No interjurisdictional framework for policy making
» Uneven enforcement of vegetation management regulations and state fire code
» Regional coordination increasingly prioritized in State and Federal programs
114
Existing Wildfire Prevention
Coordination Efforts
» Chiefs’ Associations (Alameda & Contra Costa Counties) » Hills Emergency Forum (HEF)
» East Bay Regional Communication System Authority
(EBRCSA)
» Community Wildfire Protection Plans (CWPP)
» Regional Priority Plan (RPP)
» EBRPD Wildfire Risk and Fine Scale Vegetation Mapping 115
Our Work to Date
» 2019-2021: Oakland Firesafe Council (OFSC) members began fundraising and speaking with local jurisdictions about wildfire prevention coordination; engaged Placeworks Consulting
» Dec 2021-Jun 2022: OFSC facilitated five meetings amongst 25+ local agency and elected officials to explore collaboration options--from existing mechanisms to a JPA » Summer 2022: Stakeholders agreed to work towards an MOU structure and delegated drafting to subset of stakeholders (working group)
» Dec 2022: Hanson-Bridgett law firm presents draft MOU to working group » Spring 2023: MOU finalized with input from working group » June 2023: Stakeholders meet, agree to present MOU to jurisdictions 116
Photo credit: Julia Sumangil Photography
Alameda County
Office of Supervisor Keith Carson, Fire Chief William McDonald Contra Costa County
Office of Supervisor John Gioia, Fire Chief Lewis Broschard City of Berkeley
Councilmember Susan Wengraf, Assistant Fire Chief Dan Green City of Oakland
Deputy City Administrator Joe DeVries,
Deputy Fire Chief Damon Covington/Fire Chief Reginald Freeman City of Pinole
Mayor Pro Tem Maureen Toms
City of Richmond
Councilmember Gayle McLaughlin, Fire Chief Angel Montoya Moraga -Orinda Fire Protection District
Fire Chief Dave Winnacker
Working Group
Members
Photo credit: Julia Sumangil Photography
117
Funding Partners Supporting MOU
Development *
» Bay Area Air Quality
Management District
» Donner Family Fund
» California Coastal Conservancy
grant via Bay Area Council
» CSAA Insurance Group
» PG&E
» Numerous community members
and neighborhood groups in the
East Bay Hills
» Alameda County
» Contra Costa County
» City of Berkeley
» City of Oakland
» City of Pinole
» City of Richmond
» Moraga-Orinda Fire Protection
District
* Through donations to 501(c)(3) sponsor Oakland Firesafe Council (OFSC) 118
Photo credit: Julia Sumangil Photography
Memorandum of Understanding
for coordination of wildfire prevention activities to protect the East Bay Hills in Alameda and Contra Costa Counties
119
MOU: A Simple Platform
» Explanation of wildfire risks in East Bay Hills
» Description of wi ldfire prevention activities performed by Participating Agencies and current collaboration efforts within counties
» Desire to improve coordination, enhance efficacy & efficiency » Goal of increasing each Participating Agency's level of service to residents and property owners
» No alteration of jurisdictional boundaries, cooperative efforts, or individual jurisdiction authority
120
Shared Intent / Potential Activities
Once formed, Participating Agencies will jointly decide on activities. The following have been discussed:
» Collaboration on strategies and policies to minimize wildfire hazards in the East Bay Hills including vegetation management » Assist in adoption of consistent codes for fire prevention » Partner to apply for state, federal, and other grant funds » Plan for wildfire response including evacuations across jurisdictions 121
East Bay Hills Regional Wildfire Prevention
Coordinating Group -- Structure
» Each Participating Agency appoints :

Member and alternate from governing
body (council, board)
» Fire Officials to advise on strategies and
policies
122
Principles and Duties
» Hold open and public meetings
» Establish goals, procedures and programs
» Designate a fiscal agent; develop plan for staff support » Institute a dues structure and/or apply for grants as needed
» Adopt annual budget
123

NEXT STEPS
» Presentations to potential Participating
Agencies’ governing bodies
» Adjust MOU to incorporate feedback
» Ratification/approval by City Councils,
Boards of Supervisors, Fire District Boards
» GOAL: Initial meeting in 2023
124
JON KAUFMAN [email protected]
LISA JACOBS [email protected]
DAVID EARLY [email protected]
EastBayWildfire.org
Contact
125
DI

SCUSSION AND/OR ACTION

AGENDA ITEM

4. 25-069
126
1 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 25, 2025
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: FY 24-25 Midyear Budget Review

RECOMMENDED ACTION
Receive a report on the midyear budget review for Fiscal Year (FY) 2024-25.

EXECUTIVE SUMMARY
The Midyear Budget Review provides a comprehensive update on the City's financial health mid-way through the fiscal year. This allows the City to make necessary adjustments to the current FY 24-25 budget to address any shifts in anticipated revenues and expenditures that may have arisen since the Annual Budget was approved on June 11, 2024.

BACKGROUND
This report analyzes the City’s financial status halfway through the fiscal year and presents a thorough assessment of the financial health of the City's General and other non-general funds. It compares projected revenues and expenditures with actual receipts and expenses recorded as of December 31, 2024. This comparison provides a clear and insightful view of the City's fiscal performance, highlighting significant developments that have occurre d halfway through the fiscal year.

ANALYSIS
As part of the budget process, the City staff must report to the City Council at midyear, examining revenues, expenditures, and adjustments if necessary. This process provides an opportunity to review the status of the budget at mid-year and adjust the City’s planned operations and Budget.
25-069
127
2 The annual operating budget has been adopted with a prudent approach, in accordance with the City’s financial policies. Given the uncertainties arising from unprecedented inflation and international instability, this approach is essential. In alignment with these policies, one- time expenditures are required to be financed by one-time revenues. The City has effectively preserved its fiscal health by adhering to moderate budgeting practices and operating within its financial means. Consequently, no adjustments are necessary, as the planned expenses correspond with actual activities at the midpoint of the fiscal year.

The following section provides an analysis of the City’s financial resources, commencing with an examination of the General Fund. The General Fund is the main operating fund of the City, facilitating the provision of critical city services, including law enforcement, public works, parks and recreation, and essential administrative functions.

General Fund
This fund is supported by a combination o f taxes, fees, and various general revenue sources, which enables the city to allocate resources to a broad spectrum of expenses.

Consequently, the General Fund allows for flexibility in financial planning, ensuring that funds can be directed toward pressing needs in the community rather than being restricted to specific, earmarked projects. This strategic allocation is vital for the effective management of city services and resources, reflecting the government's commitment to addressing the diverse requirements of its residents.

The Midyear Budget Review indicates that as of December 31, 2024, most General Fund revenues have reached 50% of the projected amount, while expenditure stands at 57%, slightly surpassing the original budget estimates. This modest overrun is anticipated to self- correct as the fiscal year progresses, mainly because various expenses were reconciled and paid out during the first six months. As we approach the end of the year, we expect this initial overage to balance out, demonstrating the adaptive nature of effective budget management.

I. General Fund Revenues
As of December 31, 2024, the operating revenues for the General Fund reached $8.4 million, which accounts for 42% of the adopted budget for fiscal year 2024- 2025. It is important to note that revenue from business licenses, vehicle license fees (VLF), and interest income are typically received after this date. This pattern accounts for revenues below 50% at the end of December. Furthermore, revenues generated from program fees often exhibit annual fluctuations; however, these variations are adequately balanced by the corresponding expenditures associated with those programs.

128
3 Below is a chart of General Fund revenues, followed by an analysis of the major General Fund revenues:

Around 81% of the revenues in the General Fund are generated through various taxes. This significant funding largely relies on economically sensitive sources, such as property taxes, sales taxes, and utility users' taxes. These key revenue streams are closely linked to the overall economic climate; therefore, if any of them fall short of projections or experience fluctuations, it could have serious implications for the funding of future programs and essential services. Thus, maintaining a steady flow from these sources is crucial for the City’s financial health and its ability to meet community needs.

 Utility Users Tax (UUT)
The City imposes a utility users tax (UUT) on the consumption of various utility services, including electricity, gas, water, telephone, and cable. The City determines the tax rate. Currently, the UUT rate in Hercules stands at 8%, which plays a crucial role in funding essential City services and accounts for approximately 20% of the General Fund revenues.

As of December 31, 2024, the City has collected $2 million, representing 52% of the estimated revenue for the fiscal year. These funds are remitted to the City monthly. Given the collections achieved thus far, the estimated revenue from UUT is on track to meet projected targets.

 Sales Tax
A tax is collected by the City for the sale of certain goods and services. This tax is the largest source of revenue for the General Fund, accounting for about 30% of its total revenues. It is remitted to the City by the State on a monthly basis.

Taxes
81%
Program
Revenues
9%
Cost
Allocation
4%
Investment
Income
3%
Other
Revenues
3%
129
4 As of De cember 31, 2024, the City had collected $3 million, which represents 50% of the estimated revenue for the fiscal year. Based on this collection, the revenue from sales tax is projected to meet its targets.

Sales tax revenues are concentrated by a few maj or operators and are primarily generated from business-to-business transactions. The top three producers of sales tax account for over 50% of the City’s total sales tax revenues. If any of these key revenue sources fall short of projections, it could impact funding for future programs and services.

 Property Taxes
As of December 31, 2024, the City has successfully collected approximately $1 million, representing 59% of the projected revenue. It is important to highlight that property tax revenue is collecte d in two phases: 60% is received in December, while the remaining 40% is collected in April.

Furthermore, the City's share of the base 1% property tax rate is relatively low compared to many other jurisdictions, comprising just over 5% of Hercules's total base property taxes.

 Vehicle License Fee (VLF)
Cities and counties receive property tax revenues as a replacement for Vehicle License Fees (VLF) within the standard allocation of property taxes.

In 2004, the Legislature permanently reduced the VLF rate from 2 percent to 0.65 percent. To mitigate the revenue loss experienced by Cities and Counties, this change was accompanied by an equivalent increase in property tax allocations on a dollar-for-dollar basis. Each agency's property tax allocation, substituting for the VLF, is reviewed and adjusted annually in accordance with the growth in gross assessed valuation for that specific City or County.

The City receives this allocation from the County biannually in February and June. According to estimates provided by the County, the City is expected to receive approximately $2.6 million by the conclusion of this fiscal year.

 Other taxes and revenues
The summary indicates that several revenue streams are currently collecting less than 50% of expected amounts, mainly due to the timing of receipts. However, a review of month-to-month trends from the previous year shows that overall revenues for the General Fund are on track with our fiscal targets for this year. This outcome suggests a positive trajectory and reflects a stable financial outlook despite some areas underperforming at the midpoint of the year.
130
5 II. General Fund Expenditures

The attached summary provides a year -to-date status of General Fund expenditures. As of the midpoint of the fiscal year, expenditures from the General Fund constitute approximately 57% of the total annual budget, indicating careful alignment with expected spending patterns.

It is important to note that insurance premium payments are due at the beginning of the fiscal year. This timing accounts for the higher-than-50% expenditure in this category as of December 31, 2024.

The mid -year budget review serves as an opportunity to propose necessary adjustments to the adopted budget and to make any required modifications.

Typically, new initiatives or programs are not introduced during this review unless essential, thereby ensuring prudent use of resources.

The City’s financial position remains consistent due to effective fiscal management and a commitment to sound financial practices. After a thorough analysis of the variances between budgeted amounts and actual expenditures through December 31, no adjustments to the General Fund budget are recommended at this time.

III. General Fund Operating Reserve

Fiscal stability is a fundamental aspect of effective management. Responsible financial stewardship requires the maintenance of adequate reserve funds to address both anticipated and unforeseen challenges. To this end, the City has established a policy that mandates operating reserves at 25% of total operating expenditure. Accordingly, the General Fund is structured to meet this standard, ensuring that the operating reserve consistently constitutes 25% of the total operating budget.

131
6 IV. General Fund Available Cash Balance at the conclusion of FY 23-24

At the end of June 30, 2024, the General Fund concluded the fiscal year with a cash balance of $30 million. After accounting for current liabilities, set asides, and reserves, the available cash balance stands at $1.8 million. This available balance can be utilized to cover potential future cost increases driven by inflation, cost of living adjustments, debt obligations and rising expenses for goods, services, and utilities. This strategic allocation of funds will help ensure financial stability and responsiveness to the changing economic landscape.

Non-General Fund Programs
Funding for essential initiatives, such as transportation improvements, the gas tax, and the Measure C "Street Fund," is secured through various grants and dedicated funding streams.

Each funding source comes with specific restrictions that require careful tracking of revenues and expenditures, ensuring they are kept separate from the City's main operating fund, the General Fund. Please refer to Attachment 4 for a summary of non-general fund financials as of December 31, 2024.

Currently, there are funds and appropriations available to support the continued progress of ongoing projects and programs. However, it is important to note that two specific areas— the Victoria by the Bay Lighting and Landscaping Assessment District (LLAD) and the Stormwater fund—are projected to end the fiscal year with significant deficits. As of December 31, 2024, the reported accumulated deficits are $533,294 for Victoria by the Bay LLAD and $105,144 for the Stormwater fund.

On a more positive note, the activities within the Stormwater fund are showing a favorable trend and are expected to self-correct as the year progresses. Additionally, City staff are actively working on developing a comprehensive strategy to address the deficit in the Victoria by the Bay LLAD, in accordance with the Council's direction.

Next Step
Staff are preparing the FY 25-26 budget with a series of recommended budget workshops.

The table below outlines key Council tentative meeting dates on which budget information will be provided.

Date Action/Topic
February 25, 2025 FY 24-25 Midyear Budget Review & Budget Amendments March 25, 2025 Budget Workshop to discuss the Five-Year Capital Improvement Plan (CIP) and project priorities
April 22, 2025 Budget Workshop to discuss the preliminary draft of the FY 25-26 Annual Operating Budget, including Sewer and Internal Service Funds May 27, 2025 Introduction and First Public Hearing of the FY 25-26 Annual Budget and Five-Year CIP
June 10 or 24, 2025 Second Public Hearing an Adoption of the FY 25-26 Annual Budget and Five-Year CIP
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7 Budget Award
The City of Hercules is proud to announce that its Fiscal Year 2023 -2024 Budget has received the Distinguished Budget Presentation Award from the Government Finance Officers Association (GFOA) for the fifth consecutive year. This prestigious award signifies the highest level of recognition in government budgeting and underscores the City’s commitment to transparency, accountability, and excellence in financial planning. This achievement is a testament to the hard work and dedication of the entire organization.

Additionally, the City’s staff have prepared and submitted the Fiscal Year 2024-2025 budget documents for consideration, aiming to uphold this tradition of recognition and excellence.

FISCAL IMPACT

After thoroughly examining the projected financial figures and the actual revenues and expenditures recorded through December 31, 2024, staff has determined that there is no need to adjust the current budget.

ATTACHMENTS

1. General Fund Summary

2. Non-General Fund Summary
133
General Fund
Fund Summary - 100
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24
Actual Actual
Adopted
Budget
6 Months
Actual
%
Used
Revenues
Taxes
Utility User Tax 3,996,274 4,011,166 3,988,000 2,060,010 52% Sales Tax 6,192,500 5,753,278 6,296,000 3,130,763 50% Property Taxes 1,638,581 1,658,630 1,641,000 961,471 59% Franchise Fees 988,108 972,391 979,000 428,725 44% Business Licenses 274,540 292,733 282,000 33,675 12% Transfer Tax 120,539 90,359 150,000 44,021 29% Transient Occupancy Tax 30,518 29,590 215,000 64,044 30% Vehicle License Fee (VLF) 2,456,818 2,556,439 2,614,000 - 0% Intergovernmental 71,048 94,391 41,000 16,117 39% Fines & Forefeitures 46,057 34,409 45,000 20,986 47% Program Revenues
Community Development 246,520 224,004 198,000 101,649 51% Parks and Recreation 1,423,642 1,648,866 1,466,350 746,084 51% Police 196,189 88,348 115,000 54,440 47% Public Works 30,776 32,054 31,000 6,659 21% Other 12,231 6,377 12,000 6,011 50% Investment Income 564,014 1,412,799 564,000 - 0% Tower & Property Lease 230,556 210,368 235,000 107,803 46% Cost allocated to other funds 588,529 667,863 786,917 394,409 50% Transfers In 150,000 406,727 176,556 88,278 50% Total Ongoing Revenues 19,257,440 20,190,792 19,835,823 8,265,145 42% Expenditures
Police 8,430,069 9,043,290 9,124,961 4,874,580 53% Public Works 417,265 432,333 429,968 216,847 50% Community Development 408,635 719,579 1,014,244 454,729 45% Parks and Recreation 2,408,847 2,673,550 2,591,807 1,525,393 59% City Council 329,843 305,915 360,263 158,624 44% City Manager 491,141 525,815 505,924 261,026 52% Human Resources 258,427 465,665 418,143 271,922 65% Legal 193,487 223,043 289,600 91,292 32% City Clerk 408,679 339,370 502,690 182,808 36% Finance 1,281,043 1,342,588 1,403,994 677,784 48% Workers Comp/General Liability 1,241,404 1,480,421 1,705,666 1,470,142 86% Non-Department 260,000 260,000 260,000 130,000 50% The General Fund is the City of Hercules Chief Operating Fund. This fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as police, planning, engineering, public works, operations and maintenance, and legal and administrative services.

FY 24-25
134
General Fund
Fund Summary - 100
Fund Description / Budget Highlights
Fund Activity
FY 22-23 FY 23-24
Actual Actual
Adopted
Budget
6 Months
Actual
%
Used
The General Fund is the City of Hercules Chief Operating Fund. This fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes such activities as police, planning, engineering, public works, operations and maintenance, and legal and administrative services.

FY 24-25
Transfers Out (Debt Service Obligations) 822,559 799,213 798,457 798,457 100% Total Ongoing Expenditures 16,951,399 18,610,782 19,405,717 11,113,604 57% Net Annual Activity
Ongoing Operations 2,306,041 1,580,010 430,106$ (2,848,459)$ One-Time Revenues 169,461 481,717 - - 0% One-Time Expenditures (1,644,194) (991,639) (40,000) - 0% Outstanding Encumbrances (626,897)
Annual - Surplus (Deficit) 831,308 443,191 390,106 (2,848,459) Transfer to Reserve (per Council Policy)
Operating Reserve 25% 110,798 97,527
Section 115 Trust (Pension) 25% 110,798 97,527 Capital Projects 50% 221,595 195,052
443,191 390,106
Operating Reserve:

Beginning Balance 4,222,158 4,326,140 4,652,460$ Current Year Contribution 110,798 97,527
Interest Income 103,982 173,069 113,000
Ending Balance 4,326,140$ 4,610,007$ 4,862,987$
% of Operating Expenditures 26% 25% 25%
135
General Fund
Expenditure by Category
FY 22-23 FY 23-24
Actual Actual Adopted
Budget
6-Month
Actual
% Used
Expenditures by Category
Police
Salaries & Benefits 6,254,106 6,730,648 7,149,757 3,599,378 50% Contractual Services 924,130 1,089,136 765,700 562,372 73% Other Operating Expenditures 438,833 433,327 319,600 267,878 84% Cost Allocation 813,000 790,179 889,904 444,952 50% 8,430,069 9,043,290 9,124,961 4,874,580 53%
Public Works
Salaries & Benefits 52,600 35,457 38,714 18,799 49% Contractual Services 247,069 252,702 270,283 136,330 50% Other Operating Expenditures 23,596 54,853 26,997 14,731 55% Cost Allocation 94,000 89,320 93,974 46,987 50% 417,265 432,332 429,968 216,847 50%
Community Development
Salaries & Benefits 170,314 375,188 582,488 281,198 48% Contractual Services 145,427 249,835 317,802 119,513 38% Other Operating Expenditures 5,894 11,779 20,261 7,171 35% Cost Allocation 87,000 82,777 93,693 46,847 50% 408,635 719,579 1,014,244 454,729 45%
Parks & Recreation
Salaries & Benefits 1,660,117 1,847,313 1,792,879 1,056,828 59% Contractual Services 314,003 423,759 359,700 246,222 68% Other Operating Expenditures 74,427 95,495 99,600 52,529 53% Cost Allocation 360,300 306,983 339,628 169,814 50% 2,408,847 2,673,550 2,591,807 1,525,393 59%
City Council
Salaries & Benefits 71,066 75,146 75,625 37,811 50% Contractual Services 1,231 22,923 41,200 800 2% Other Operating Expenditures 48,546 30,922 49,900 23,244 47% Cost Allocation 209,000 176,924 193,538 96,769 50% 329,843 305,915 360,263 158,624 44%
City Manager
Salaries & Benefits 270,897 295,895 313,289 157,764 50% Contractual Services 123,724 132,659 72,500 49,226 68% Other Operating Expenditures 17,520 23,320 37,400 12,668 34% Cost Allocation 79,000 73,941 82,735 41,368 50% 491,141 525,815 505,924 261,026 52%
Human Resources
Salaries & Benefits 164,755 124,899 263,425 134,816 51% Contractual Services 44,550 289,654 83,900 103,069 123% Other Operating Expenditures 8,122 8,163 21,900 9,578 44% Cost Allocation 41,000 42,949 48,918 24,459 50% 258,427 465,665 418,143 271,922 65%
Legal
Contractual Services 193,487 223,043 289,600 91,292 32% 193,487 223,043 289,600 91,292 32%
City Clerk
Salaries & Benefits 199,918 214,886 244,095 111,465 46% Contractual Services 100,165 24,306 139,400 13,923 10% Other Operating Expenditures 27,596 24,212 34,100 14,872 44% Cost Allocation 81,000 75,966 85,095 42,548 50% FY 24-25
136
General Fund
Expenditure by Category
FY 22-23 FY 23-24
Actual Actual Adopted
Budget
6-Month
Actual
% Used
Expenditures by Category
FY 24-25
408,679 339,370 502,690 182,808 36%
Finance
Salaries & Benefits 606,452 663,783 680,550 339,958 50% Contractual Services 251,589 259,902 289,000 118,417 41% Other Operating Expenditures 262,002 274,338 274,000 139,187 51% Cost Allocation 161,000 144,566 160,444 80,222 50% 1,281,043 1,342,589 1,403,994 677,784 48%
Worker's Compensation/General Liability
Salaries & Benefits 32,199 31,760 34,385 17,283 50% Contractual Services 1,209,205 1,448,661 1,671,281 1,452,859 87% 1,241,404 1,480,421 1,705,666 1,470,142 86%
Non-Departmental
Debt Service - CalHFA 200,000 200,000 200,000 100,000 50% SOMAR benefit payments 60,000 60,000 60,000 30,000 50% 260,000 260,000 260,000 130,000 50%
Transfers Out
SunTrust Loan (Final Payment) 102,549
Engie Equipment Lease 226,432 235,897 235,027 235,027 100% Debt Service - 2020 PFA Lease Revenue
Refunding Bonds
365,949 563,316 563,430 563,430 100%
Other Transfers 127,629
822,559 799,213 798,457 798,457 100%
Total, On-going Expenditures 16,951,399 18,610,782 19,405,717 11,113,604 57% 137
City of Hercules
FY 23-24 General Fund
Available Cash Balance Calculations
Total
FY 23-24 Reserve FY 23-24
Audited Policy Audited
Cash Balance, as reported in the ACFR 30,056,991$ $30,056,991 Current Liabilities
Accounts Payable (609,517)$ ($609,517)
Accrued Wages (217,009)$ ($217,009)
Deposit Payable (1,158,545)$ ($1,158,545)
Claims Payable (495,446)$ ($495,446)
Unavailable Revenue (24,837)$ ($24,837)
Leases (389,990)$ ($389,990)
General Fund Set-Aside
Partial Payment to CalHFA Loans - RDA Settlement (2,500,000)$ ($2,500,000) Hercules HUB (Earmarked for the HUB Local Match) (3,000,000)$ ($3,000,000) Former RDA Project Negative Cash Balance (3,400,000)$ ($3,400,000) Programs and Projects (4,200,238)$ ($4,200,238)
General Fund Reserve & Designations
Reserve for Earthquake Insurance Deductible (500,000)$ ($500,000) Reserve for Capital Projects - RDA Settlement (5,384,421)$ ($5,384,421) Reserve for Capital Projects - General Fund (621,997)$ (221,595) ($843,592) Reserve for Reusable Bags (remaining) (13,930)$ ($13,930) Reserve for PEG Fees (274,000)$ ($274,000)
Reserve for Economic Uncertainty (25% target) (4,499,209)$ (110,798)$ ($4,610,007) Outstanding Encumbrance (626,897)$ ($626,897)
Available Cash Balance, June 30, 2024 2,140,955$ (332,393)$ $1,808,562 138
City of Hercules
FY 23-24 Section 115 Trust (Pension)
Available Cash Balance, as of June 30. 2024
Total
FY 23-24 Reserve FY 23-24
Audited Policy Audited
Section 115 Trust (Pension), Cash Balance $2,391,824 $110,798 $2,502,622 139
FY 24-25 MIDYEAR BUDGET REVIEW

NON-GENERAL FUND SUMMARY
As of December 31, 2024
Special Revenue Funds
Beginning
Available Balance Revenue Expenditures Midyear Request Net Activities Ending Balance Fund No. Fund Name Actual Budget 6-Month Actual % Budget 6-Month Actual % Adjustments As Projected As of 12/31/2024 101 ASSET SEIZURE 180,472 - - 117,000 1,605 1% (1,605) 178,867 201 AB 3229 COPS Program 62,715 150,000 158,507 106% 176,556 - 0% 158,507 221,221 220 CITYWIDE L&L DIST 83-2 886,445 1,283,784 693,415 54% 1,235,523 621,688 50% 71,727 958,172 221 VICTORIA BY THE BAY L&L (449,090) 660,174 286,313 43% 707,109 370,517 52% (84,204) (533,294) 222 HERCULES VILLAGE L&L DIST 103,818 183,048 98,286 54% 225,414 106,037 47% (7,751) 96,067 223 BAYWOOD ASSESS 04-1 L&L 93,370 181,144 97,836 54% 180,511 71,200 39% 26,637 120,007 224 BAYSIDE ASSESS DIST L&L 167,959 165,678 89,571 54% 161,240 78,539 49% 11,031 178,990 225 ARTERIAL ROADWAYS 504,650 340,210 - 0% 365,916 204,646 56% (204,646) 300,004 231 STORMWATER ASSESSMENT (196,021) 355,645 334,368 94% 449,029 243,492 54% 90,877 (105,144) 241 DIF-GEN PUBLIC FACILITIES 159,902 - 12,012 - - 12,012 171,914 242 COMMUNITY DEVELOPMENT FND 179,768 - 21,000 170,000 - 0% 21,000 200,768 243 DEVELOPMENT FEE FUND 76,355 - - - - - 76,355 244 DIF-POLICE FACILITIES 280,259 - 21,308 200,000 - 0% 21,308 301,567 246 DIF-FIRE FACILITIES 1,729 - - - - - 1,729 247 DIF-PARK & REC 157,653 - 24,780 - - 24,780 182,433 249 PUBLIC BENEFIT FEE 1,035,776 - - - - - 1,035,776 261 DIF-TRAFFIC FACILITIES 475,615 - 86,856 - - 86,856 562,471 262 STATE GAS TAX FUND 528,981 727,585 399,379 55% 725,829 314,616 43% 84,762 613,743 263 MEASURE "C" STREET FUND 765,578 520,000 - 0% 601,186 350,563 58% (350,563) 415,015 266 BART (PARK & RIDE) 0 89,000 33,500 38% 89,000 13,593 15% 19,907 19,907 267 GENERAL PLAN UPDATE 1,265,218 - 262,384 - - 262,384 1,527,602 268 SB1 (RMRA) 981,760 673,002 355,854 965,100 65,091 7% 290,763 1,272,523 291 SOLID WASTE AND RECYCLING 897,113 185,000 87,775 47% 388,340 11,891 3% 75,884 972,997 521 REGIONAL WATER QUALITY 54,906 - - - - - 54,906 640 SUCCESSOR HOUSING 5,885,317 102,000 17,321 17% 113,000 37,073 33% (19,752) 5,865,565 14,100,248 5,616,270 3,080,465 55% 6,870,753 2,490,550 36% - 589,914 14,690,163 Special Revenue Funds account for the proceeds of specific revenue sources (other than trusts for individuals, private organizations, or other governments, or for major capital projects) that are restricted or committed to expenditures for specified purposes.
140
FY 24-25 MIDYEAR BUDGET REVIEW

NON-GENERAL FUND SUMMARY
As of December 31, 2024
Enterprise Funds
Beginning
Available Balance Revenue Expenditures Midyear Request Net Activities Ending Available
Balance
Fund Number Fund Name Actual Budget 6-Month Actual % Budget 6-Month Actual % Adjustments As Projected As of 12/31/2024 420 WASTEWATER - OPERATION 16,062,725 6,291,000 3,405,630 54% 7,662,587 3,481,821 45% (76,191) 15,986,533 421 WASTEWATER - CAPITAL - 1,694,310 1,377,588 81% 1,694,310 1,377,588 81% - - 16,062,725 7,985,310 4,783,218 60% 9,356,897 4,859,409 52% - (76,191) 15,986,533 Internal Service Funds
Beginning
Available Balance Revenue Expenditures Midyear Request Net Activities Ending Available
Balance
Fund Number Fund Name Actual Budget 6-Month Actual % Budget 6-Month Actual % Adjustments As Projected As of 12/31/2024 450 VEHICLE REPLACEMENT FUND 314,637 158,000 79,000 50% 150,000 102,416 68% (23,416) 291,222 460 IT OPERATING FUND 584,765 1,085,715 555,839 51% 1,036,263 649,582 63% (93,743) 491,022 470 FACILITY MAINTENANCE FUND 267,438 1,046,683 523,342 50% 1,137,470 606,473 53% (83,131) 184,306 1,166,840 2,290,398 1,158,180 51% 2,323,733 1,358,470 58% - (200,290) 966,550 Debt Service Funds
Beginning
Available Balance Revenue Expenditures Midyear Request Net Activities Ending Available
Balance
Fund Number Fund Name Actual Budget 6-Month Actual % Budget 6-Month Actual % Adjustments As Projected As of 12/31/2024 672 2003B DEBT SERVICE PFA 1,600.00 563,430 563,430 100% 563,430 565,030 100% (1,600) - 673 2009 DEBT SERVICE PFA 2,170,423 905,296 254,912 28% 905,296 1,375 0% 253,537 2,423,960 388 EQUIPMENT LEASE - 235,027 235,026 100% 235,027 235,026 100% - - 2,172,023 1,703,753 1,053,369 62% 1,703,753 801,431 47% - 251,937 2,423,960 This fund accounts for wastewater treatment to the cities of Hercules and Pinole and for the maintenance of the City's sewer lines and related facilities. It is a self-supporting activity which provides services on a user charge basis to residences and businesses.

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

These funds are used to account for money that will be used to pay the interest and principal of long-term debts. Bonds used by a government to finance major construction projects, to be paid by tax levies over a period of years, require a deby service fund to account for their repayment. The debts of special assessment and proprietary funds are serviced within those funds, rather than by a separate debt service fund. 141
FY 24-25 MIDYEAR BUDGET REVIEW

NON-GENERAL FUND SUMMARY
As of December 31, 2024
Capital Projects Funds
Beginning
Available Balance Revenue Expenditures Midyear Request Net Activities Ending Available
Balance
Fund Number Fund Name Actual
Budget, As
Amended 6-Month Actual % Budget 6-Month Actual % Adjustments As Projected As of 12/31/2024 295 FEDERAL GRANTS - - - 0% - - 0% - -
296 STATE GRANTS - 38,500 11,615 0% 38,500 11,615 30% - - 300 CITY CAPITAL PROJ-SINGLE 308,852 2,350,823 1,175,412 0% 2,350,823 181,878 8% 993,533 1,302,385 354 HERCULES HUB - 1,111,000 81,119 0% 1,089,000 81,119 7% - - 387 WATER QUALITY RET BASIN 292,690 62,000 33,161 53% 48,000 8,533 18% 24,628 317,318 601,542 3,562,323 1,301,307 37% 3,526,323 283,145 8% - 1,018,161 1,619,704 These funds are used to account for the construction or acquisition of fixed assets, such as buildings, equipment and roads. Depending on its use, a fixed asset may instead be financed by a special revenue fund or a proprietary fund. A capital project fund exists only until completion of the project. 142
DISCU

SSION AND/OR ACTION

AGENDA ITEM

5. 25-068
143

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of February 25, 2025
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: “City Dollars & Cents: Funding Our Future” Meeting RECOMMENDED ACTION:

This is an informational report.

BACKGROUND:

The City will be hosting a community meeting entitled “City Dollars & Cents: Funding Our Future” on March 4, 2025, at 6:30 PM in the Council Chamber. This meeting will serve as a vital forum for community members to discuss the City’s financial outlook. Attendees will also gain insight into key revenue sources that support our operations and the comprehensive operational analysis that assesses our current and future needs.

Additionally, we will explore various options for enhancing the City’s revenue, aiming to strengthen the city’s financial foundation. This gathering represents a significan t opportunity for residents to voice their opinions and contribute to shaping the future direction of the community.

FISCAL IMPACT:

There is no financial impact related to this item.
25-068
144