Agenda Packet — Hercules City Council, April 8, 2025 (part 1 of 2)

Tuesday, April 8, 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:

Zoom ID: 834 8162 1805 Zoom Passcode: 946719
Zoom Phone Number: 1-669-900-6833
1 April 8, 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 - 6:00P.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. 25-107
Pursuant to Government Code Section 54957.6 Conference With Labor Negotiators - City Negotiators: Dante Hall, City Manager; Edwin Gato, Director of Finance; relative to the following employee groups:
a.

Teamsters Local 315 Employee Organizations
b. Hercules Police Officers Association
c. Hercules Senior Manager Employee Group
d. Confidential Unrepresented Employee Group
e. Mid Management Employee Group

2. 25-108

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)
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. 25-103
Proclamation - National Library Week
National Library Week ProclamationAttachments:

IX.

AGENDA ADDITIONS/DELETIONS

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2 April 8, 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. 25-111
Meeting Minutes for the Regular Meeting of March 25, 2025 Meeting Minutes for the Regular Meeting of March 25, 2025Attachments:

2. 25-105 Quarterly Review of Future Agenda Items
RECOMMENDATION:

Receive a report on the quarterly review of future City Council agenda items.

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

3. 25-106 Approve Additional One-Time Non-Pensionable Payment of 2% of Total Gross Salary for the 2023-24 Fiscal Year for Employees Covered Under the Executive Level, Mid-Management, and
Non-Represented Employee Pay Plans
RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution approving an additional 2% one-time non-pensionable payment for employees covered under the Executive Level, Mid-Management, and Non-Represented Pay Plans and authorize the City Manager to execute any related amendments to the approved FY 2024-25 Pay and Benefit Plans.

Staff Report - Revised Pay Plans
Attach 1 - Resolution
Attach 2 - Revised Executive Pay and Benefit Plan FY 24-25 Attach 3 - Revised Mid-Management Pay and Benefit Plan FY 24-25 Attach 4 - Revised Non-represented Pay and Benefit Plan FY 24-25 Attachments:

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3 April 8, 2025City Council Meeting Agenda

4. 25-110 Redevelopment Housing Successor Catch-Up Annual Reports for Fiscal Years 2013-14 through 2023-24
RECOMMENDATION:

Staff recommends that the City Council receive and file the Housing Successor Agency Annual Report for Fiscal Years 2013-14 through 2023-24.

Staff Report - Housing Successor Annual Reports
Attach 1 - Hercules Housing Successor Annual Report thru FY 23-24 Attachments:

XIII. DISCUSSION AND/OR ACTION ITEMS

1. 25-104 Authorization for the West Contra Costa Integrated Waste Management Authority (RecycleMore) to Enter Into Post-Collection Agreements and Exercise Certain Related Powers
RECOMMENDATION:

Staff recommends that the City Council adopt the resolution authorizing the West Contra Costa Integrated Waste Management Authority (RecycleMore) to enter into post-collection agreements and exercise certain related powers pursuant to Section 5.4 of the Joint Exercise of Powers Agreement.

Staff Report - Authorization for the WCCIWMA (RecycleMore) to Enter Into Post-Collection Agreements Attach 1 - Resolution
Attach 2 - Executed 2019 Board Approved Amended and Restated JEPA Attach 3 - WCCIWMA Post Collection Service Agreement
Attachments:

2. 25-109 Discussion Regarding Establishing a New Sister City Relationship RECOMMENDATION:

Staff recommends that the City Council discuss the concept of establishing a new Sister City relationship and provide direction to staff..

Staff Report - Establishing a New Sister City Relationship Attach 1- Sister City -Tilottama
Attachments:

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

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4 April 8, 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, April 22, 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: April 3, 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.

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5 April 8, 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.

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6 April 8, 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.

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7 INTRODUCTIONS/PRESENTATIONS/

COMMISSION REPORTS

AGENDA ITEMS

1. 25-103

8 PROCLAMATION
RECOGNIZING APRIL 6-12, 2025 AS NATIONAL LIBRARY WEEK

IN THE CITY OF HERCULES
WHEREAS, libraries spark creativity, fuel imagination, and inspire lifelong learning, offering a space where individuals of all ages can explore new ideas and be drawn to new possibilities; and
WHEREAS, libraries serve as vibrant community hubs, connecting people with knowledge, technology, and resources while fostering civic engagement, critical thinking, and lifelong learning; and
WHEREAS, libraries provide free and equitable access to books, digital tools, and innovative programming, ensuring that all individuals —regardless of background—have the support they need to learn, connect, and thrive; and WHEREAS, libraries partner with schools, businesses, and o rganizations, connecting the dots to maximize resources, increase efficiency, and expand access to essential services, strengthening the entire community; and WHEREAS, libraries empower job seekers, entrepreneurs, and lifelong learners by providing access to resources, training, and opportunities that support career growth and economic success; and
WHEREAS, libraries nurture young minds through storytimes, STEAM programs, and literacy initiatives, fostering curiosity and a love of learning that lasts a lifetime; and
WHEREAS, libraries protect the right to read, think, and explore without censorship, standing as champions of intellectual freedom and free expression; and WHEREAS, dedicated librarians and library workers provide welcoming spaces that inspire discovery, collaboration, and creativity for all; and WHEREAS, libraries, librarians, and library workers across the country are joining together to celebrate National Library Week under the theme “Drawn to the Library.”
NOW, THEREFORE, BE IT P ROCLAIMED that I, Dion Bailey, Mayor of the City of Hercules, on behalf of the entire City Council, do hereby recognize April 6 -12, 2025, as National Library Week . During this week, I encourage all residents to visit their library, explore its resources, and celebrate all the ways that the library draws us together as a community.

In witness whereof, I hereunto set my hand and cause the seal of the City of Hercules to be affixed this 8th day of April 2025.
________________________________
Dion Bailey, Mayor
25-103
9 CO

NSENT CALENDAR

AGENDA ITEMS

1. 25-111

2. 25-105

3. 25-106

4. 25-110
10 111 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
5:30 PMTuesday, March 25, 2025
CLOSED SESSION - 5:30 P.M., REGULAR MEETING - 7:00 P.M
In-Person in Council Chambers or To Watch:

Zoom ID: 870 9960 4656 Zoom Passcode: 521512
Zoom Phone Number: 1-669-900-6833
I. SPECIAL CLOSED SESSION – CALL TO ORDER - ROLL CALL - 5:30 P.M.

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

Present: 5 -
II.

PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
None
III. CONVENE INTO CLOSED SESSION
Council Member Dilli Bhattarai, Mayor D. Bailey, Vice Mayor C. Kelley, Council Member A. Walker-Griffin, and Council Member T. Grimsley

Present: 5 -
The Hercules City Council will meet in Closed Session regarding the following:

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

1. 25-099
Pursuant to Government Code Section 54957(b) PUBLIC EMPLOYEE EVALUATION - Title: City Manager

2. 22-1040
CONFERENCE WITH REAL PROPERTY NEGOTIATORS Pursuant to
Government Code section 54956.8. CONFERENCE WITH Real Property Negotiators Property address: 1680 Refugio Valley Road, Hercules CA 94547 Agency Negotiators: Dante Hall, City Manager; Christie Crowl, City

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25-111
11 March 25, 2025City Council Meeting Minutes
Attorney, Negotiating Parties: City of Hercules, Rodeo Hercules Fire Protection District

3. 25-100 CONFERENCE WITH LEGAL COUNSEL - POTENTIAL LITIGATION Pursuant to Government Code Section 54956.9(e)(1) in one matter IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

Mayor Dion Bailey called the meeting to order at 7:17p.m.

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

Present: 5 -
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
The Pledge of Allegiance was lead by Council Member Kelley.

VII. MOMENT OF SILENCE
NONE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS
NONE
IX. AGENDA ADDITIONS/DELETIONS
NONE
X. PUBLIC COMMUNICATIONS
Public comment was provided by Alison Peters, Sarah Creeley, Earl McKelvy, Tanya Jacobs, Sheel Gandhi, Gian Stepakov, Eddie Morris, Isabella Modir, Celine Su, Joi Williams, Isabelle Kirske, Neuton, Medha Jayachandran Nair, Nysa Banerjee.

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.

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12 March 25, 2025City Council Meeting Minutes
XI. PUBLIC HEARINGS
NONE
XII. CONSENT CALENDAR
MOTION: A motion was made by Vice Mayor Kelley, seconded by Council Member Walker-Griffin, to adopt the Consent Calendar. The motion carried by the following vote:

Aye: Council Member Dilli Bhattarai, Mayor D. Bailey, Vice Mayor C. Kelley, Council Member A. Walker-Griffin, and Council Member T. Grimsley 5 -

1. 25-094
Meeting Minutes for the Regular Meeting of March 11, 2025 Meeting Minutes for the Regular Meeting of March 11, 2025Attachments:

APPROVED

2. 25-101 Amendment to Hercules Municipal Code section 3-4.1601 to reflect adopted Kimley-Horn Speed Survey
RECOMMENDATION:

Waive second reading and adopt an Ordinance of the City Council of the City of Hercules Amending the Hercules Municipal Code Section 3-4.1601 “Changed Speed Limits” to Reflect the Results and Recommendations of the Kimley-Horn Speed Survey
Staff Report - Speed Ordinance (2nd Reading)
Attach 1 - Ordinance
Attachments:

Ordinance 555, APPROVED

3. 25-102 Approve a Memorandum of Understanding with Teamsters Local 315 Full Time Employees, a Memorandum of Understanding with Teamsters Local 315 Part Time Employees, and a 3% Cost of Living Adjustment to Part Time Unbenefited Employees
RECOMMENDATION:

Adopt a Resolution Approving a Memorandum of Understanding with Teamsters Local 315, Full Time Employees, a Memorandum of Understanding with Teamsters Local 315 Part Time Employees, and a 3% Cost of Living Adjustment (COLA) to Part Time Unbenefited employees.

Staff Report - Teamsters Successor MOUs
Attach 1 - Resolution Adopting Teamsters Successor MOUs and COLA for PT Unbenefited Employees_ elg revised
Attach 2 - Teamsters Full Time 2024-25 MOU - DRAFT
Attach 3 - Teamsters Part Time 2024-25 MOU - DRAFT
Attach 4 - Master Salary Schedule (Last Revised 3/11/25) Attachments:

Resolution 25-015, APPROVED

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13 March 25, 2025City Council Meeting Minutes

4. 25-095 2024 Annual Housing Element Progress Report
RECOMMENDATION:

Accept and direct staff to submit the 2024 Annual Housing Element Progress Report (Attachment 1) to the California Department of Housing and Community Development (HCD) via minute action.

Staff Report - 2024 Housing Element Annual Report
Attach 1 - LEAP Report
Attach 2 - Summary
Attach 3 - Table A-K
Table A2-1
Table A2-2
Table B
Table C
Table D
Table E
Table F
Table F2
Table G
Table H
Table J
Table K
Attachments:

APPROVED

5. 25-080 Authorization to Apply for the Community Wildfire Defense Grant - Reinvesting in the City of Hercules’ Hazardous Fuels
Reduction/Fire-adapted Ecosystems Restoration Project
RECOMMENDATION:

Adopt a resolution authorizing the City Manager to apply for the Community Wildfire Defense Grant (CDWG) from the US Department of Agriculture and execute any necessary documents related to the application process.

Staff Report-Community Wildfire Defense Grant Submittal Attach 1 - Resoltuion
Attach 2 - Community Wildfire Defense Grant Sumarry
Attachments:

Resolution 25-016, APPROVED

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14 March 25, 2025City Council Meeting Minutes
XIII. DISCUSSION AND/OR ACTION ITEMS

1. 25-092 Resolution Approving the Restated Solid Waste Franchise Agreement between the City of Hercules and Richmond Sanitary Service, Inc. dba Republic Services.

RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution of the City Council of the City of Hercules:
1) Authorizing the City Manager to Execute an Agreement with Richmond Sanitary Services, Inc. dba Republic Services for Solid Waste Collection Services and Direction to Staff to Set a Proposition 218 Hearing, and 2) Accepting the Final Franchise Fee Study, and
3) Authorizing City Manager to Execute a Side Letter Agreement Regarding Use of City Rate Stabilization Funds to Offset Maximum Service Rates Effective July 1, 2025, through December 31, 2026 Staff Report - Solid Waste Franchise Agreement
Attach 1 - Resolution
Attach 2 - Hercules Franchise Agreement Restatement
Attach 3 - Hercules Franchise Fee Study Report Final 02-28-25 Attach 4 - Side Letter Agreement- Effective July 1, 2025, through December 31, 2026
Attachments:

City Manager, Dante Hall, introduced the item. Representatives from R3 presented. Representatives from Republic Services were in person to answer questions. Council asked questions and provided comment. R3, Rep. Services and Dante Hall provided a response. Public Comment was provided by Ben Vadi. Action was taken on this item.

MOTION: A motion was made by Council Member Walker-Griffin, seconded by Vice Mayor Kelley, to adopt Resolution 25-017. The motion carried by the following vote:

Aye: Council Member Dilli Bhattarai, Mayor D. Bailey, Vice Mayor C. Kelley, Council Member A. Walker-Griffin, and Council Member T. Grimsley 5 -

2. 25-098
Commission and Committee Appointment
RECOMMENDATION:

Consider making an appointment to the Hercules Finance Commission to fill the remaining part of a two (2) year term.

Staff Report - Finance Commission Appointment
Attach 1 - Resolution 10-068 Commission Procedures
Attachments:

City Clerk, Eibleis Melendez, introduced and presented the item. No public comment. There were no questions from Council. Council Members voted unanimously to appoint Rupinder Sandhu to Finance Commission for the

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15 March 25, 2025City Council Meeting Minutes
remainder of the two year term which is up December 31, 2025.

3. 25-096 General Plan Update and 2024 Annual Progress Report RECOMMENDATION:

1. Receive an update from staff on the status of the General Plan and the planned update process and ask any questions;

2. Take public comment;

3. Provide any comments; and

4. By minute action, direct staff to submit the 2024 General Plan Annual Progress Report to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (OPR).

Staff Report - 2024 General Plan Update and Annual Report Attach 1 - General Plan APR 2024
Attachments:

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

MOTION: A motion was made by Vice Mayor Kelley, seconded by Council Member Walker-Griffin, to direct Staff to submit the 2024 General Plan Annual Progress Report to the California Department of Housing and Community Development(HCD) and the Governor's Office of Planning and Research(OPR).

The motion carried by the following vote:

Aye: Council Member Dilli Bhattarai, Mayor D. Bailey, Vice Mayor C. Kelley, Council Member A. Walker-Griffin, and Council Member T. Grimsley 5 -

4. 25-097
City-Chamber Co-sponsored Kids Expo
RECOMMENDATION:

Staff recommends that the City Council receive this report and provide direction to staff.

Staff Report - Kids ExpoAttachments:

Parks and Recreation Director, Christopher Roke, introduced and presented the item. No public comment. Council asked questions and provided comment. Director Roke provided a response. This was an information item. Council directed Staff to add the event to the list of budget items to consider in the upcoming budget process.

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.

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16 March 25, 2025City Council Meeting Minutes
XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

1. Regional Committee

2. City Council Committees and Subcommittees

3. Commission Liaisons
City Manager, Dante Hall, announced upcoming meetings and events:

Community Conversation on Public Safety and Traffic Safety Subcommittee Meeting. Upcoming events; Bottles and Bites and Parks and Recreation Spring Break camp.

City Attorney, Christie Crowl, had no announcements

1. Regional Committee
Vice Mayor Kelley reported out on the WestCat and Contra Costa Transportation Authority meetings

2. City Council Committees and Subcommittees
No reports were provided

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

Future Agenda Item - Council Member Walker-Griffin requested a discussion on adopting an Ordinance implementing a Tobacco Retail License. A roll call vote was taken and Council Members unanimously agreed to add the item to a future meeting.

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XVI. ADJOURNMENT
Mayor Bailey adjourned the meeting at 9:27 P.M.
_________________________________
Dion Bailey, Mayor
Attest:
_______________________________
Eibleis Melendez, City Clerk

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18 CONSENT CALENDAR

AGENDA ITEM

2. 25-105

19 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of April 8, 2025
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Eibleis Melendez, City Clerk
SUBJECT: Quarterly Review of Future Agenda Items
RECOMMENDED ACTION:

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

BACKGROUND:

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

FISCAL IMPACT:

There is no direct fiscal impact associated with this report.

ATTACHMENTS:

1. Future Agenda Items List
25-105
20 FUTURE AGENDA ITEM REQUESTS
Housebound Residence Assitance
Tobacco Retail License
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 4/22/2025
(Items due by 4/10) MCE Enrollment Update X
Budget Workshop: General Fund, Operating Funds and Sewer and internal Services and CIP X
Developing a Brown Acted Meeting for A Police Advisory Committee X LSA Contract Amendment X
Preliminary Engineer's Report for all LLAD's and adoption of Resoltuions of Intention X
Recognition of Volunteers for National Volunteers Week X Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 5/13/2025
(Items due by 5/1) Community Development Update X
Investment Report: 3rd Quarter( Ending March 31st) X
Local Hazard Mitigation Plan Adoption X
Strategic Goals Quarterly Update X
Organization Structure and Succession Plan Discussion X Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 5/27/2025
(Items due by 5/15) Military Equipment Annual Review X
Notice by 5/15 First Public Hearing: Proposed Annual Budget X Adoption of a List of Projects for FY 2025-26 Funded by SB1: The Road Repair and Accountability Act of 2017 X
Acceptance of the Lower Sewer Trunk Main Project X
Sewer Rate Study X
Tentative Future Agenda Items List
(All Items Are Subject to Change)
Updated - 4/3
21 Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 6/10/2025 Finance Department Update X
Second Public Hearing: Adoption of the Annual Budget X
Strategic Goals Quarterly Update X
Notice by 5/29 Annual Renewals of LLAD X
Annual Fiber Optic Broadband per Res. 16-084 X
45 Day Notice-
notice by 4/25 Solid Waste 218 Hearing X
Police Lobbies Remodel Construction Contact Award X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 6/24/2025 Annual Investment Policy Update X
Notice by 6/12 Master Fee Schedule X
Revenue Enhancement X
45 Day Notice-
notice by 5/9
Landscape and Lighting Assesment Districts Public Hearing, include the Prop 218 balloting process for the Victoria by the Bay LLAD, declare results of ballot tabulation
X
Police Department Update X
Water Smart Small- Scale WEE Grant Award X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 7/8/2025
Notice by 6/26 Garbage Liens X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 7/22/2025
45 Day Notice-
notice by 6/6 Sewer: 218 Hearing X
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 9/9/2025 Quarterly Review of the Future Agenda Items List X 4th Quarter Investment Report (Ending June 30) X
22 Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 9/23/2025
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 10/14/2025
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 10/28/2025
Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 11/12/2025 Interview Applicants for Commission Vacancies Ist Quarter Revenue & Expenditure Report X
1st Quarterly Invesment Report(Ending Sept.30) X
Organization Structure and Succession Plan Discussion X Scheduled Meeting
Date Item Presentation Public Hearing Consent Discussion Only Discussion/Action 12/9/2025 Appointment of Commissioners
Reorganization of Council
23 CONSE

NT CALENDAR

AGENDA ITEM

3. 25-106
24 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of April 8, 2025
TO: Mayor and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
Edwin Gato, Director of Finance
Kristi Carter, Human Resources Manager
SUBJECT: Approve Additional One-Time Non-Pensionable Payment of 2% of Total Gross Salary for the 2023-24 Fiscal Year for Employees Covered Under the Executive Level, Mid-Management, and Non- Represented Employee Pay Plans
RECOMMENDED ACTION:

Staff recommends that the City Council adopt a Resolution approving an additional 2% one- time non-pensionable payment for employees covered under the Executive Level, Mid- Management, and Non-Represented Pay Plans and authorize the City Manager to execute any related amendments to the approved FY 2024-25 Pay and Benefit Plans.

DISCUSSION:

On July 23, 2024, the City Council approved the FY 2024-25 Pay and Benefit Pl ans for Executive Level, Mid-Management, and Non-Represented employees, which included a 2% one-time non-pensionable payment of total gross salary for the 2023 -24 fiscal year. In recognition of continued service and performance, and to support workforce stability in a competitive labor market, staff recommends approval of an additional 2% one -time non- pensionable payment of total gross salary for FY 202 3-24 for employees within these groups.

Consultations with the executive level, mid-management, and non-represented employee groups have been completed; proceeding with the revisions to the Pay Plans for the executive, mid-management, and unrepresented groups is timely. A summary of the changes proposed by the employee groups is set forth below:
25-106
25 Group Summary of Terms
Total # of
employees Cost
Executive Level
Additional 2% One-
Time Non-PERSable
retention payment 7 $30,000
Mid-Management
Additional 2% One-
Time Non-PERSable
retention payment 2 $8,000
Non-Represented
Additional 2% One-
Time Non-PERSable
retention payment 6 $10,000
This recommendation aligns with the City’s strategic goals of maintaining a competitive total compensation package while ensuring fiscal responsibility and operational effectiveness.

This adjustment supports employee morale, retention, and recognition efforts, particularly in a period of constrained recruitment across public agencies.

FISCAL IMPACT:

The adopted FY 2024-25 Budget included funding for the initial 2% one-time payment.

This action approves an additional 2% one-time payment, resulting in a cumulative one- time bonus of 4% for eligible Executive Level, Mid-Management, and Non-Represented employees.

The staff recommends that the City Council approve an appropriation for the one-time retention payment of 2% for Executive Level, Mid-Management, and Non-Represented employees. Sufficient one-time funds are available in the General Fund Reserve to cover the cost of this additional payment. The Finance Department has reviewed the impact and confirmed alignment with the City's adopted financial parameters.

ATTACHMENTS:

1. Resolution

2. Revised FY 2024-25 Executive Pay and Benefit Plan

3. Revised FY 2024-25 Mid-Management Pay and Benefit Plan

4. Revised FY 2024-25 Non-Represented Pay and Benefit Plan 26 HERCULES CITY COUNCIL
RESOLUTION 2025-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES APPROVING AN ADDITIONAL ONE -TIME NON -PENSIONABLE PAYMENT OF 2% OF TOTAL GROSS SALARY FOR THE 2023 -24 FISCAL YEAR FOR EMPLOYEES COVERED

UNDER THE EXECUTIVE LEVEL, MID -MANAGEMENT, AND NON -REPRESENTED

PAY PLANS
WHEREAS, on July 23, 2024, the City Council approved the FY 2024-25 Pay and Benefit Plans for Executive Level, Mid -Management, and Non-Represented employees, which included a one-time, non-pensionable payment of 2% of total gross salary for the 2023-24 fiscal year; and
WHEREAS, the City desires to recognize continued service and performance, and support employee morale, retention, and stability in a competitive labor market; and WHEREAS, consultations with affected employee groups have been completed and the proposed adjustment reflects the City’s ongoing commitment to maintaining a competitive and fiscally responsible total compensation structure; and WHEREAS, the one-time costs for the additional 2% one-time non-pensionable payment for eligible employees in the Executive Level, Mid -Management, and Non - Represented employee groups will be $48,000;
WHEREAS, sufficient one-time funds are available in the General Fund Reserve to support this additional 2% one -time, non-pensionable payment for eligible Executive Level, Mid-Management, and Non-Represented employees; and WHEREAS, the City desires to amend the Pay and Benefit Plans of the Executive, Mid-Management and Non-Represented Employee Groups.

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

1. The City Council approves an additional 2% one -time, non-pensionable payment of total gross salary for the 202 3-24 fiscal year for employees covered under the Executive Level, Mid-Management, and Non-Represented Pay Plans.

2. The City Council hereby approves and authorizes the City Manager to make any necessary amendments to the Executive, Mid -Management, and Non - Represented Pay and Benefit Plans to implement this action.

3. The City Council hereby approves the allocation of $48,000 from the General Fund reserve for one -time expenses related to the additional 2% one -time, non - 27 pensionable payment for eligible employees in the Executive Level, Mid - Management, and Non-Represented employee groups.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 8th day of April 2025, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Dion Bailey, Mayor
ATTEST:

Eibleis Melendez, City Clerk
28 REVISED PAY & BENEFITS PLAN FOR

EXECUTIVE LEVEL EMPLOYEES

OF THE CITY OF HERCULES
Effective July 1, 2024 through June 30, 2025 City Council Resolution No. 24-053 and
City Council Resolution No. 25-XXX
29 Table of Contents
ARTICLE I. TERMS .............................................................................................................. 3 SECTION 1 - DEFINITION OF TERMS ............................................................................... 3 ARTICLE II. COMPENSATION ............................................................................................. 4-8 SECTION 1 - PAY PLAN (Pay Plan- Exhibit A – Pg. 17) ..................................................... 4 SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE ................................ 4 SECTION 3 - OTHER PAY ADJUSTMENTS ....................................................................... 4 SECTION 4 - CREDIT TOWARD CITY SERVICES ............................................................. 5 SECTION 5 - UNIFORM ALLOWANCE .............................................................................. 5 SECTION 6 – MANAGEMENT INCENTIVE ........................................................................ 5 SECTION 7 - EDUCATION REIMBURSEMENT .................................................................. 5 SECTION 8 - LONGEVITY PAY ....................................................................................... 5-6 SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION ........................ 6 SECTION 10 - COMPENSATORY TIME OFF ..................................................................... 6 SECTION 11 - SUPPLEMENTAL OPTIONAL MONIES ALLOWANCE FOR RETIREES (SOMAR) ........................................................................................................................................ 6-8 SECTION 12 – COMPUTER LOAN PROGRAM ................................................................. 8 SECTION 13 – DEFERRED COMPENSATION ................................................................... 8 ARTICLE III. RETIREMENT BENEFITS ............................................................................... 8-9 SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN .................. 8-9 ARTICLE IV. INSURANCE BENEFITS ............................................................................... 9-11 SECTION 1 - INSURANCE ............................................................................................. 9-11 ARTICLE V. SICK LEAVE BENEFITS ................................................................................ 11 SECTION 1 - SICK LEAVE ACCRUAL PLAN .................................................................... 11 ARTICLE VI. HOLIDAYS, VACATION AND OTHER LEAVE BENEFITS ....................... 11-15 SECTION 1 – HOLIDAYS .............................................................................................. 11-12 SECTION 2 - VACATION .................................................................................................. 12 SECTION 3 - RETIREMENT HEALTH SAVINGS PLAN ................................................. 12-13 SECTION 4 - BEREAVEMENT LEAVE ............................................................................. 13 SECTION 5 - ADDITIONAL LEAVES ............................................................................. 13-15 ARTICLE VII. SEPARATION ............................................................................................ 15-16 SECTION 1 – SEPARATION FROM CITY SERVICES ...................................................... 15 SECTION 2 – SAVINGS CLAUSE ........................................................................................ 16 SECTION 3 - IMPLEMENTATION AND DURATION ......................................................... 16 *NOTE: ARTICLE II, SECTION 1 (Pay Plan-
Exhibit A – Pg. 17)
30 ARTICLE I. TERMS
SECTION 1 - DEFINITION OF TERMS

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

A. CITY: Shall mean the City of Hercules
B. CITY MANAGER: Shall mean the City Manager or their designee.

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

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

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

F. PAY PERIOD: Shall mean a two-week period, beginning Sunday at 12:00 a.m. through the following Saturday at 11:59 p.m. and equal to 76 hours, designated by the City Manager.

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

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

I. PUBLIC AGENCY EXPERIENCE: Shall mean prior service in a public agency.

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

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

L. YEAR: Shall mean fiscal year, except where calendar year is expressly specified.

ARTICLE II. COMPENSATION
SECTION 1 - PAY PLAN

1.1 Effective July 1, 2024 through June 30, 2025, the pay plan for Executive Level employees is set forth on Exhibit “A”, attached hereto. 31 SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE

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

SECTION 3 - OTHER PAY ADJUSTMENTS

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

3.1 is suspended for the term of this Pay Plan.

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

SECTION 4 - CREDIT TOWARD CITY SERVICES

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

4.1 is suspended for the term of this Pay Plan.

SECTION 5 - UNIFORM ALLOWANCE

5.1 The Police Chief shall be entitled to an annual clothing allowance of $900.00 ($75.00/month) as payment for such maintenance and replacement. Such compensation shall be made semi-annually during the second pay period in January and the second pay period in July. Payment shall be made by a separate check and not as part of a 32 regular paycheck. Employees shall become eligible to receive the first semi-annual payment following their first anniversary date. With respect to the time between the employee’s first anniversary date and the semi-annual payment, the allowance will be prorated on a monthly basis with an employee having to work more than sixteen (16) days to receive payment for that month. The uniform allowance is considered a prospective payment and there shall be no payment or reimbursement upon separation from City service.

SECTION 6 – MANAGEMENT INCENTIVE

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

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

SECTION 7 - EDUCATION REIMBURSEMENT

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

SECTION 8 - LONGEVITY PAY

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

At 7 years of service: $200 per month
At 10 years of service: $300 per month
At 14 years of service: $400 per month
At 16 years of service: $500 per month
33 DocuSign Envelope ID: C113FA3B-282B-4954-A366-1A6319DB3C6D

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

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

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

SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION

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

SECTION 10 - COMPENSATORY TIME OFF

10.1 Compensatory Time-Off (CTO) is normally not accrued for exempt employees; however, if an Employee should have a CTO accrual balance and there is a change in position or a carryover from other terms and conditions with the employer, the CTO accrual balance will qualify as eligible for conversion to either the Executive Level employee’s 401(a) or 457(b) Plan. Any such conversion must occur within 30 days of appointment.

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

11.1 The City will provide an optional monetary per month for safety employees and non- safety employees with an annual three percent (3%) adjustment paid on January 1st of each year to employees who retire as regulated by the Public Employee’s Retirement System. To be eligible for the optional monies, an employee must retire as follows:

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

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

34 DocuSign Envelope ID: C113FA3B-282B-4954-A366-1A6319DB3C6D

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

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

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

11.4 Retiree Reaches Age 65 – The City will pay a portion of the optional money to a retiree until the retiree reaches age 65, upon which they are required to enroll in Medicare.

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

This benefit, which is effective January 1, 2001, is expected to last into perpetuity. The funds being established for this program may not be used by the City or Executive Level employees for any purpose other than what is expressly stated in this section of the Pay Plan. If in the future the City and Executive Level employees mutually agree to end or modify this benefit, they can do so only for active employees. Any retiree who is currently receiving this benefit will continue to receive the benefit as stated in the Pay Plan that was in effect at the time of their retirement. Conversely, if the City and Executive Level employees increase this benefit, they can do so only for active employees and retiree benefits will remain the same as it was when they retired. 35 DocuSign Envelope ID: C113FA3B-282B-4954-A366-1A6319DB3C6D

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

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

SECTION 12 - COMPUTER LOAN PROGRAM

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

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

SECTION 13 – DEFERRED COMPENSATION

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

13.2 457 Deferred Compensation Plan: All Executive Level employees may make voluntary contributions to the MissionSquare Retirement 457 Deferred Compensation Plan through payroll deduction. In addition, all Executive Level employees shall receive an employer contribution equivalent to 5% of their salary on a one-to-one match deposited into their MissionSquare Retirement 457 Deferred Compensation Plan through payroll deduction subject to the limits, policies and conditions established by MissionSquare Retirement and Federal Tax laws.

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

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

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

Unrepresented non-public safety employees hired prior to January 1, 2013 will pay the 7% employee percentage of PERS contributions. The current total employee percentage is 7%. Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate. Unrepresented public safety employees hired prior to January 1, 2013 will pay the 9% employee 36 DocuSign Envelope ID: C113FA3B-282B-4954-A366-1A6319DB3C6D

percentage of PERS contributions. The current total employee percentage is 9%.

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

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

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

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

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

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

ARTICLE IV. INSURANCE BENEFITS

SECTION 1 - INSURANCE

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

will be responsible for rate increases above 6%.

1.2 If an Executive Level employee elects no health coverage, and can demonstrate to the 37 DocuSign Envelope ID: C113FA3B-282B-4954-A366-1A6319DB3C6D

City, on an annual basis or any other time upon request, that the Executive Level employee has alternative health care coverage, the Executive Level employee shall be entitled to any one of the following options:

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

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

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

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

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

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

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

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

38 DocuSign Envelope ID: C113FA3B-282B-4954-A366-1A6319DB3C6D

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

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

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

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

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

The following days shall be recognized as holidays:

1. New Year’s Day

2. Martin Luther King, Jr. Day

3. Presidents Day

4. Memorial Day

5. Juneteenth

6. Independence Day

7. Labor Day

8. Veteran’s Day

9. Thanksgiving

10. The day after Thanksgiving

11. Christmas Eve

12. Christmas Day

13. Two Floating Holidays

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

1.2 Additional Christmas Holidays - Executive Level employees shall receive paid leave during the Christmas week consistent with the highest amount received by any bargaining unit in the City and as specifically designated by the City Manager. To be eligible for the Additional Christmas Holidays, Executive Level employees must have either worked or have been in approved paid leave status the equivalent of 15 or more 39 DocuSign Envelope ID: C113FA3B-282B-4954-A366-1A6319DB3C6D

full workdays during the previous thirty (30) days, exclusive of overtime. An Executive Level employee on approved vacation or sick leave shall not be charged vacation or sick leave if these Holidays fall during their approved leave.

SECTION 2 - VACATION

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

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

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

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

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

SECTION 3 - RETIREMENT HEALTH SAVINGS PLAN

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

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

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

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

40 DocuSign Envelope ID: C113FA3B-282B-4954-A366-1A6319DB3C6D

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

SECTION 4 - BEREAVEMENT LEAVE

4.1 Each employee shall receive up to five (5) days of paid of bereavement leave per qualifying incident. A qualifying incident is defined as the death of an employee’s parent, step-parent, parents-in-law, grandparent, child, step-child, grandchild, spouse, domestic partner, legal dependent, sibling, brother/sister-in-law, legal guardian or with approval by Human Resources, a substitute family member for a person defined above.

At the discretion of the City Manager, or designee, additional time may be taken by the Executive Level employee using their accrued leave.

SECTION 5 - ADDITIONAL LEAVES

5.1 Authorized Leaves of Absence without Pay

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

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

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

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

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

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

Date of Employment Credit for Executive Leave
July 1 through September 30 60 hours
Oct 1 through December 31 40 hours
Jan 1 through March 31 20 hours
41 DocuSign Envelope ID: C113FA3B-282B-4954-A366-1A6319DB3C6D

April 1 through June 30 0 hours

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

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

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

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

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

5.7 Sabbatical Leave is provided as a major means by which Executive Level employees may promote their professional competence and so improve the performance of the organization through continued learning through study, research, writing, and travel. Executive Level employees shall receive eighty (80) hours of Sabbatical Leave at the completion of seven years of service, which shall be on the eighth anniversary of their appointment as an Executive Level employee.

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

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

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

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

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

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

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

Executive Level employees' compensation for jury duty shall be limited to three months (63 workdays ). Executive Level employees whose jury service is in excess of three 42 DocuSign Envelope ID: C113FA3B-282B-4954-A366-1A6319DB3C6D

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

ARTICLE VII. SEPARATION
SECTION 1 – SEPARATION FROM CITY SERVICES

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

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

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

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

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

SECTION 2 – SAVINGS CLAUSE

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

SECTION 3 - IMPLEMENTATION AND DURATION

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

44 DocuSign Envelope ID: C113FA3B-282B-4954-A366-1A6319DB3C6D

EXHIBIT “A”

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

Effective April 13, 2025, eligible employees covered under this pay plan shall receive an additional one-time non-PERSable payment of 2.0% of their total gross salary for the 2023/24 fiscal year.

TABLE 1

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

*Rates based on 1976 annual hours worked

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

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

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

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

ANNUAL SALARY
45 REVISED PAY & BENEFITS PLAN

FOR MID-MANAGEMENT EMPLOYEES

OF THE CITY OF HERCULES

Effective July 1, 2024 through June 30, 2025
City Council Resolution 24-053
and
City Council Resolution No. 25-XXX
46 2

TABLE OF CONTENTS
ARTICLE I. TERMS ................................................................................................................. 3 SECTION 1 - DEFINITION OF TERMS ................................................................................. 3 ARTICLE II. COMPENSATION ............................................................................................... 4 SECTION 1 - PAY PLAN (Pay Plan Exhibit A – pg. 16) ..................................................... 4 SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE .............................. 4 SECTION 3 - OTHER PAY ADJUSTMENTS ........................................................................ 4 SECTION 4 - INCENTIVE PAY ..............................................................................................5 SECTION 5 - UNIFORMS AND SAFETY EQUIPMENT ..................................................... 5 SECTION 6 - WORKING IN A HIGHER CLASSIFICATION ..................................................5 SECTION 7 - EDUCATION REIMBURSEMENT ....................................................................6 SECTION 8 - LONGEVITY PAY .............................................................................................6 SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION ........................6 SECTION 10 - COMPENSATORY TIME OFF .......................................................................6 SECTION 11 - EDUCATIONAL INCENTIVE PAY ............................................................. 6-7 SECTION 12 - COMPUTER LOAN PROGRAM ....................................................................7 SECTION 13 - DEFERRED COMPENSATION ..................................................................... 7 ARTICLE III. RETIREMENT BENEFITS .............................................................................. 7-8 SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN ................. 7-8 ARTICLE IV. INSURANCE BENEFITS .............................................................................. 9-10 SECTION 1 - INSURANCE............................................................................................... 9-10 ARTICLE V. SICK LEAVE BENEFITS ............................................................................... 10 SECTION 1 - SICK LEAVE ACCRUAL PLAN ................................................................... 10 ARTICLE VI. HOLIDAYS, VACATION, AND OTHER LEAVE BENEFITS ...................... 10-14 SECTION 1 – HOLIDAYS ............................................................................................... 10-11 SECTION 2 - VACATION .................................................................................................... 11 SECTION 3 - WORKERS COMPENSATION ...................................................................... 12 SECTION 4 - BEREAVEMENT LEAVE ............................................................................... 12 SECTION 5 - ADDITIONAL LEAVES ............................................................................. 12-14 ARTICLE VII. SEPARATION ............................................................................................ 14-15 SECTION 1 - SEPARATION FROM CITY SERVICES ....................................................... 14 SECTION 2 - SAVINGS CLAUSE .................................................................................. 14-15 SECTION 3 - IMPLEMENTATION AND DURATION .......................................................... 15 *NOTE: ARTICLE II, SECTION 1 (Pay Plan- Exhibit A – Pg. 16) 47 3

ARTICLE I. TERMS

SECTION 1 - DEFINITION OF TERMS

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

A. CITY: Shall mean the City of Hercules

B. CITY MANAGER: Shall mean the City Manager or their designee.

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

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

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

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

G. PAY PERIOD: Shall mean a two-week period, beginning Sunday at 12:00 a.m. through the following Saturday at 11:59 p.m. and equal to 76 hours, designated by the City Manager.

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

I. PUBLIC AGENCY EXPERIENCE: Shall mean prior service in a government agency.

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

L. YEAR: Shall mean fiscal year, except where calendar year is expressly specified. 48 12

ARTICLE II. COMPENSATION

SECTION 1 – PAY PLAN

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

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

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

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

SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE

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

SECTION 3 - OTHER PAY ADJUSTMENTS

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

SECTION 4 - INCENTIVE PAY

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

4.1 is suspended for the term of this Pay Plan.

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SECTION 5 - UNIFORMS AND SAFETY EQUIPMENT

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

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

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

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

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

SECTION 6 - WORKING IN A HIGHER CLASSIFICATION

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

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

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

SECTION 7 - EDUCATION REIMBURSEMENT

7.1 Employees shall be eligible to receive up to $4,000 per fiscal year reimbursement of expenditures by the Employee for tuition, books, travel and any other costs associated with their successful completion of any professional or educational program approved by the City Manager. This benefit shall be funded at the rate of $30,000 per year and is available to Employees on a first come, first served basis. Once the total annual benefit amount of $30,000 is reached, the benefit is no longer available to any employee until the next fiscal year.
50 14

SECTION 8 - LONGEVITY PAY

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

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

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

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

SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION

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

SECTION 10 - COMPENSATORY TIME OFF

10.1 Compensatory Time Off (CTO) is normally not accrued for exempt employees, however, if an employee should have a CTO accrual balance and there is a change in position or a carryover from other terms and conditions with the employer, after April 1, 2016, the CTO accrual balance will qualify as eligible for conversion to either the Employee’s 401(a) or 457(b) Plan. Any such conversion must occur within 30 days of appointment.

SECTION 11 - EDUCATIONAL INCENTIVE PAY

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

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

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

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

12.2 Each employee is eligible to participate in the City of Hercules Computer Loan Program for Employee Purchase of a Personal Computer, tablet, software or hardware.

Maximum loan amount is $2,500 and may not be more than one loan outstanding at any time. No interest will be charged by the City on loans under this program.

SECTION 13 - DEFERRED COMPENSATION

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

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

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

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

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

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

Effective October 21, 2018, employee to pay an additional 3% to be applied to the Employer CalPERS Contribution Rate. Public Safety employees hired prior to January 52 16

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

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

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

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

ARTICLE IV. INSURANCE BENEFITS

SECTION 1 - INSURANCE

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

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

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

3. At the Employee's option, the City will pay a portion of the eligible contribution to increase the Employee's supplemental life insurance coverage and the Employee will receive the remainder of the eligible contribution under either option one or two above.
53 17

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

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

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

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

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

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

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

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

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

1.4 Employees are not subject to sick leave accrual deduction for absences of less than one (1) day for sickness or personal medical appointments. This section does not preclude the City Manager from requiring Employees to report absences due to 54 18

sickness of less than one (1) day.

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

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

The following days shall be recognized as holidays:

1. New Year’s Day

2. Martin Luther King, Jr. Day

3. Presidents Day

4. Memorial Day

5. Juneteenth

6. Independence Day

7. Labor Day

8. Veteran’s Day

9. Thanksgiving

10. The day after Thanksgiving

11. Christmas Eve

12. Christmas Day

13. Two Floating Holidays

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

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

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

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SECTION 2 - VACATION

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

YEARS OF SERVICE

COMPLETED
ANNUAL

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

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

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

SECTION 3 - WORKERS COMPENSATION

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

SECTION 4 - BEREAVEMENT LEAVE

4.1 Each employee shall receive up to five (5) days of paid bereavement leave per qualifying incident. A qualifying incident is defined as the death of an employee’s parent, step-parent, parents-in-law, grandparent, child, step-child, grandchild, spouse, domestic partner, legal dependent, sibling, brother/sister-in-law, legal guardian or with approve by Human Resources, a substitute family member for a person defined above.

4.2 At the discretion of the City Manager, or designee, additional time may be taken by the Employee using their accrued leave.

SECTION 5 - ADDITIONAL LEAVES

5.1 Authorized Leaves of Absence without Pay

Requesting Leave – Upon request, the City Manager may grant an Employee an unpaid leave of absence not to exceed three (3) months. Such leave shall be discretionary and based upon the needs of the City. Whenever possible, such request shall be submitted 56 20

at least six (6) weeks in advance. Approval of the request may be with specific terms and conditions negotiated by the City Manager and the Employee.

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

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

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

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

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

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

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

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

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

5.7 Sabbatical Leave is provided as a major means by which Exempt Employees may promote their professional competence and so improve the performance of the organization through continued learning through study, research, writing, and travel. 57 21

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

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

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

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

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

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

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

ARTICLE VII. SEPARATION
SECTION 1 - SEPARATION FROM CITY SERVICES

1.1 Separation Notice Payment – Employees who have more than three years of service and voluntarily separated from employment with the City and provide at least thirty (30) calendar days’ notice of separation shall receive a Separation Notice Payment. The Separation Notice Payment will be a sum equaling the most recent two weeks' regular compensation received by the Employee, including longevity pay and all other monetary incentive compensation received immediately prior to the date of notice.

Employees who separate as a result of medical or other retirement shall not be eligible to receive this benefit.

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

Non-Exempt Employees who have more than three years of service and are 58 22

involuntarily separated from their employment with the City shall receive six weeks separation pay. Such separation pay shall include longevity pay and all other monetary incentive compensation the Employee received while employed by the City.

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

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

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

SECTION 2 - SAVINGS CLAUSE

SECTION 3 - IMPLEMENTATION AND DURATION

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

59 23

EXHIBIT “A”

Effective April 13, 2025, eligible employees covered under this pay plan shall receive an additional one-time non-PERSable payment of 2.0% of their total gross salary for the 2023/24 fiscal year.

TABLE 1

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

*Rates based on 1976 annual hours worked

Mid-Management employees shall be thirty-eight (38) hours per week, worked in units of nine (9-1/2) hours per day in four (4) consecutive days in a seven (7) day workweek which runs Sunday at midnight through the following Saturday at 11:59 p.m. This supersedes the previous practice of a 40-hour week. Modified work schedules may be considered on a case -by-case basis and must be approved in advance by the City Manager, based on operational needs and the nature of the position.

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

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

ANNUAL SALARY
60 REVISED PAY & BENEFITS PLAN FOR

NON-REPRESENTED EMPLOYEES

OF THE CITY OF HERCULES

Effective July 1, 2024 through June 30, 2025
City Council Resolution 24-053
and
City Council Resolution 25-XXX
61 2

Table of Contents
ARTICLE I. TERMS ............................................................................................................. 3 SECTION 1 - DEFINITION OF TERMS ................................................................................. 3 ARTICLE II. COMPENSATION ............................................................................................... 4 SECTION 1 - PAY PLAN (Pay Plan Exhibit A – pg 18) ......................................................... 4 SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE ............................... 4 SECTION 3 - OTHER PAY ADJUSTMENTS ........................................................................ 4 SECTION 4 - VEHICLE ASSIGNMENT ................................................................................ 4 SECTION 5 - UNIFORM ALLOWANCE ................................................................................ 5 SECTION 6 – WORKING IN A HIGHER CLASSIFICATION ................................................. 5 SECTION 7 - EDUCATION REIMBURSEMENT ................................................................... 5 SECTION 8 - LONGEVITY PAY ............................................................................................ 6 SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION ....................... 6 SECTION 10 - COMPENSATORY TIME OFF .................................................................... 6 SECTION 11 - SUPPLEMENTAL OPTIONAL MONIES ALLOWANCE FOR RETIREES (SOMAR) ............................................................................................................................... 6 SECTION 12 - COMPUTER LOAN PROGRAM .................................................................... 8 SECTION 13 – DEFERRED COMPENSATION .................................................................... 8 ARTICLE III. RETIREMENT BENEFITS ................................................................................. 9 SECTION 1 - PUBLIC EMPLOYEES’ RETIREMENT SYSTEM (PERS) PLAN ................... 9 ARTICLE IV. INSURANCE BENEFITS ................................................................................. 10 SECTION 1 - INSURANCE.................................................................................................. 10 ARTICLE V. SICK LEAVE BENEFITS .................................................................................. 11 SECTION 1 - SICK LEAVE ACCRUAL PLAN ..................................................................... 11 ARTICLE VI. HOLIDAYS, VACATION AND OTHER LEAVE BENEFITS ............................ 11 SECTION 1 - HOLIDAYS ..................................................................................................... 12 SECTION 2 - VACATION .................................................................................................... 13 SECTION 3 - RETIREMENT HEALTH SAVINGS PLAN ................................................... 13 SECTION 4 - BEREAVEMENT LEAVE ............................................................................... 14 SECTION 5 - ADDITIONAL LEAVES .................................................................................. 14 ARTICLE VII. SEPARATION .................................................................................................16 SECTION 1 – SEPARATION FROM CITY SERVICES ....................................................... 16 SECTION 2 – SAVINGS CLAUSE ...................................................................................... 16 SECTION 3 - IMPLEMENTATION AND DURATION .......................................................... 17 *NOTE: ARTICLE II, SECTION 1 (Pay Plan- Exhibit A
– Pg. 18)
62 3

ARTICLE I. TERMS

SECTION 1 - DEFINITION OF TERMS

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

A. CITY: Shall mean the City of Hercules.

B. CITY MANAGER: Shall mean the City Manager or their designee.

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

D. EMPLOYEE: Shall mean an individual appointed to Employee level positions by the City Manager.

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

F. PAY PERIOD: Shall mean a two-week period, beginning Sunday at 12:00 a.m. through the following Saturday at 11:59 p.m. and equal to 76 hours, designated by the City Manager.

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

I. PUBLIC AGENCY EXPERIENCE: Shall mean prior service in a government agency.

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

L. YEAR: Shall mean fiscal year, except where calendar year is expressly specified. 63 4

ARTICLE II. COMPENSATION

SECTION 1 - PAY PLAN

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

SECTION 2 - PAY RATE ADVANCEMENT WITHIN SALARY RANGE

SECTION 3 - OTHER PAY ADJUSTMENTS

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

3.1 is suspended for the term of this Pay Plan.

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

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

SECTION 4 - VEHICLE ASSIGNMENT

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

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

SECTION 5 - UNIFORM ALLOWANCE

5.1 The City will compensate each safety employee $75.00 per month ($900 annually) as 64 5

payment for such maintenance and replacement. Such compensation shall be made semi-annually during the second pay period in January and the second pay period in July. Payment shall be made by separate check and not as part of a regular paycheck.

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

SECTION 6 – WORKING IN A HIGHER CLASSIFICATION

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

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

SECTION 7 - EDUCATION REIMBURSEMENT

Once the total annual benefit amount of $30,000 is reached, the benefit is no longer available to any Employee until the next fiscal year.
65 20

SECTION 8 - LONGEVITY PAY

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

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

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

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

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

SECTION 9 - CONVERSION OF ACCRUED LEAVE UPON SEPARATION

SECTION 10 - COMPENSATORY TIME OFF

10.1 Compensatory Time Off (CTO) is normally not accrued for exempt employees, however, if an Employee should have a CTO accrual balance and there is a change in position or a carryover from other terms and conditions with the employer, after April 1, 2016, the CTO accrual balan ce will qualify as eligible for conversion to either the Employee’s 401(a) or 457(b) Plan. Any such conversion must occur within 30 days of appointment.

SECTION 11 - SUPPLEMENTAL OPTIONAL MONIES ALLOWANCE FOR RETIREES 66 20

(SOMAR)

11.1 The City will provide an optional monetary allowance for safety employees and non- safety employees. An annual three percent ( 3 % )adjustment is paid on January 1st of each year to employees who retire as regulated by the Public Employee’s Retirement System. To be eligible for the optional monies, an employee must retire as follows:

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

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

11.4 Retiree Reaches Age 65 – The City will pay a portion of the optional money to a retiree until the retiree reaches age 65, upon which they are required to enroll in Medicare. At 67 20

that time, the optional money will drop to an amount equivalent to the Kaiser

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

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

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

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

SECTION 12 - COMPUTER LOAN PROGRAM

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

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

SECTION 13 – DEFERRED COMPENSATION

13.1 401(a) Deferred Compensation Plan: Police Command staff shall receive an employer contribution equivalent to 4% of their salary from the City, deposited into the City sponsored 401A Deferred Compensation Plan, consistent with the limits, policies and 68 20

conditions established by MissionSquare Retirement and Federal Tax Laws.

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

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

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

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

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

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

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

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

1.5 The PERS benefit formula and percentages paid by any Employee will change for all 69 20

newly hired Employees on or after January 1, 2014 who are not already in a PERS recognized retirement system, in accordance with AB 340, signed into law on September 12, 2012.

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

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

ARTICLE IV. INSURANCE BENEFITS

SECTION 1 - INSURANCE

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

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

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

B. The City will pay to the Employee directly 50% of the eligible contribution in cash; or

C. At the Employee's option, the City will pay a portion of the eligible contribution to increase the Employee's supplemental life insurance coverage and t h e Employee will receive the remainder of the eligible contribution under either option one or two above.

If an Employee's alternative health coverage is lost due to unforeseen circumstances, 70 20

the Employee will upon request be covered by the City's health plan, subject to carrier approval.

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

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

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

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

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

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

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

1.4 Exempt employees are not subject to sick leave accrual deduction for absences of less 71 20

than one (1) day for sickness or personal medical appointments. This section does not preclude the City Manager from requiring Employees to report absences due to sickness of less than one (1) day.

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

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

The following days shall be recognized as holidays:

1. New Year’s Day

2. Martin Luther King, Jr. Day

3. Presidents Day

4. Memorial Day

5. Juneteenth

6. Independence Day

7. Labor Day

8. Veteran’s Day

9. Thanksgiving

10. The day after Thanksgiving

11. Christmas Eve

12. Christmas Day

13. Two Floating Holidays

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

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

SECTION 2 – VACATION

2.1 Except as otherwise provided in this Section, employees shall accrue vacation as 72 20

follows:

YEARS OF SERVICE

COMPLETED
ANNUAL

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

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

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

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

SECTION 3 - RETIREMENT HEALTH SAVINGS PLAN

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

 Exempt Employees will contribute 2%

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

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

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

SECTION 4 - BEREAVEMENT LEAVE

73 20

4.1 Each employee shall receive up to five (5) days of paid bereavement leave per qualifying incident. A qualifying incident is defined as the death of an employee’s parent, stepparent, parents-in-law, grandparent, child, step-child, grandchild, spouse, domestic partner, legal dependent, sibling, brother/sister-in-law, legal guardian or with approval by Human Resources, a substitute family member for a person defined above.

At the discretion of the City Manager, or designee, additional time may be taken by the Employee using their accrued leave.

SECTION 5 - ADDITIONAL LEAVES

5.1 Authorized Leaves of Absence without Pay

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

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

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

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

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

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

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

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

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

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

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

ARTICLE VII. SEPARATION
SECTION 1 – SEPARATION FROM CITY SERVICES
75 20

The Separation Notice Payment will be a sum equaling the most recent two weeks' regular compensation received by the Employee, including longevity pay and all other monetary incentive compensation received immediately prior to the date of notice.

Employees who separate as a result of medical or other retirement shall not be eligible to receive this benefit.

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

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

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

SECTION 2 – SAVINGS CLAUSE

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

SECTION 3 - IMPLEMENTATION AND DURATION

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

76 20

EXHIBIT
“A”

Effective April 13, 2025, eligible employees covered under this pay plan shall receive an additional one-time non-PERSable payment of 2.0% of their total gross salary for the 2023/24 fiscal year.

TABLE 1

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

*Rates based on 1976 annual hours worked

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

Non-exempt employees are expected to work a consistent schedule aligned with the City’s standard workweek of thirty- eight (38) hours. Weekly schedules should not fluctuate without operational necessity or supervisor approval. The City does not permit flexing hours across multiple workweeks to offset overtime. All hours worked in excess of thirty-eight (38) in a designated workweek shall be compensated as overtime, in accordance with this pay plan. Modified work schedules may be considered on a case-by-case basis and must be approved in advance by the City Manager, based on operational needs and the nature of the position.

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

ANNUAL SALARY
77 20
The standard workweek shall be thirty-eight (38) hours per week, worked in units of nine (9- 1/2) hours per day Monday through Thursday in a seven (7) day workweek which runs Sunday at midnight through the following Saturday at 11:59 p.m. Overtime for full time non- exempt employees will begin after 38 hours.
78 CO

NSENT CALENDAR

AGENDA ITEM

4. 25-110
79 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of April 8, 2025
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Redevelopment Housing Successor Catch-Up Annual Reports for Fiscal Years 2013-14 through 2023-24
RECOMMENDED ACTION:

Staff recommends that the City Council receive and approve the filing of the Housing Successor Agency Annual Report for Fiscal Years 2013-14 through 2023-24.

DISCUSSION:

In February 2024, t he City of Hercules (“City”) elected to become the Housing Successor Agency (“Housing Successor”) to the former Redevelopment Agency (“Agency”), which was dissolved on February 1, 2012. Each housing successor agency is required to prepare an annual report on how it is meeting requirements imposed by Health and Safety Code (“HSC”) Section 34176.1. This cumulative report covers the activities of the Housing Successor since the time of dissolution, from Fiscal Year 2013 -14 through F iscal Year 2023-24. The intent of this report is to get Hercules up to date with Annual Report requirements.

The report is due to the California Department of Housing and Community Development (“HCD”) by April 1st each year and must be posted on the City’s website.

The report for Fiscal Years 2013-14 through 2023-24 was submitted to HCD by April 1, 2025. It is being presented to the City Council to receive and file.

The Housing Successor is meeting all compliance requirements of HSC Section 34176.1 through Fiscal Year 2023-24. Progress on major requirements is summarized below.
25-110
80 Housing Asset Fund Activity

As of June 30, 2024, the Housing Asset Fund balance was approximately $12.6 million ($5.9 million of which was cash). The Housing Asset Fund received nearly $6.0 million in revenues between Fiscal Year s 2013-14 and Fiscal Year 2023 -24. The largest revenue source was homeowner loan repayments ($5.9 million ). Other revenue sources were miscellaneous sources such as interest.

The Housing Successor spent $59,624 in Housing Asset Funds between Fiscal Year 2013-14 and Fiscal Year 2023-24 on administrative items. There were no expenditures for housing development projects since the City did not become Housing Successor until February 2024 . The City also made a $216,592 expense in Fiscal Year 2016-17 to remit a due diligence review payment to the County Auditor-Controller as part of the redevelopment dissolution process; this is not considered a Housing Asset Fund administrative or project expense.

Real Property Assets and Loans Receivable

The former Redevelopment Agency did not have any properties to transfer to the City upon dissolution.

As of June 30, 2024, t he Housing Successor oversees approximately $7.0 million in loans receivable . Two loans were made to affordable housing developers (Bridge Housing and Eden Housing) prior to dissolution with an outstanding balance of $2.6 million. There are also 42 outstanding homeowner loans with a balance of $4.4 million as of June 30, 2024. This does not account for non-collectible loans written off by City Council in July 2024, which will be reflected in next year’s annual report.

Expenditure Proportionality Requirements

Expenditures from the Housing Asset Fund must meet specific proportionality requirements by income level and age. In general:

 Administrative and monitoring expenses are capped at five percent of the value of Housing Successor properties and loans receivable on an annual basis. The cap was $352,103 in Fiscal Year 2023-24.
 If Housing Asset Funds are spent on housing projects and pr ograms, within each five-year compliance period:
o At least 30% must be spent on extremely low-income households (earning up to 30% of the Area Median Income);
o No more than 20% may be spent on low-income households (earning 60-80% of the Area Median Income); and
o No monies may be spent on moderate or above moderate-income households (earning more than 80% of the Area Median Income). 81  No more than 50% of rental housing units assisted by the City or the forme r Redevelopment Agency in the prior 10 years may be restricted to seniors.

The Housing Successor meets the expenditure requirements because administrative expenses were below the annual limit s. Due to the City electing to become the Housing Successor in F ebruary 2024, the Housing Successor, City, and former Agency did not assist any projects through Fiscal Year 2023 -24 and thereby meets the development expenditure and senior limits by default.

Excess Surplus

Housing successors are s ubject to the same excess surplus requirement as former redevelopment agencies. A successor has an excess surplus if its unencumbered cash balance exceeds the greater of $1 million or the sum of deposits in the prior four years. Housing successors must spend or encumber excess surplus within three fiscal years or transfer its excess surplus to HCD to spend on statewide housing programs.

The City established the Housing Successor Agency in February 2024. The Housing Successor had an excess surplus of $2.7 million as of Fiscal Year 2023-24. The City will ensure funds are spent or encumbered (committed in an executed agreement) within three fiscal years, or June 30, 2027.

FISCAL IMPACT:

The submission of the Housing Successor Annual Report will have no fiscal impact.

ATTACHMENTS:

A. Hercules Housing Successor Agency Annual Report for Fiscal Years 2013-14 through 2023-24.
82 HOUSING SUCCESSOR ANNUAL REPORT
FOR FISCAL YEARS 2013-14 THROUGH 2023-24
City of Hercules

DRAFT 3.27.25

83 TABLE OF CONTENTS

INTRODUCTION ................................ ................................ ................................ .......................... 1 Housing Successor ................................ ................................ ................................ ................. 1 Scope of this Housing Successor Annual Report ................................ ................................ ..... 2 Assets Transferred to the Housing Successor ................................ ................................ ......... 2 BACKGROUND ................................ ................................ ................................ ............................ 3 Legal Requirements Pertaining to Housing Successors ................................ ........................... 3 Permitted Uses of Housing Asset Funds ................................ ................................ ................. 3 Limits on the Accumulation of Housing Funds (Excess Surplus) ................................ .............. 6 HOUSING ASSET FUND A CTIVITY ................................ ................................ ............................. 6 Deposits and Fund Balance ................................ ................................ ................................ .... 6 Expenditures ................................ ................................ ................................ .......................... 7 Ending Cash and Fund Balance ................................ ................................ .............................. 8 Housing Successor Portfolio ................................ ................................ ................................ ... 9 Real Property and Disposition Status ................................ ................................ .................... 10 Loans Receivable ................................ ................................ ................................ ................. 10 Senior Rental Housing Limit Compliance ................................ ................................ .............. 11 Excess Surplus ................................ ................................ ................................ .................... 11 OTHER INFORMATION ................................ ................................ ................................ ............. 12 Transfers to Other Housing Successors ................................ ................................ ................ 12 Homeownership Unit Inventory ................................ ................................ ............................. 13 APPENDIX 1 – HOUSING ASSET TRANSFER FORM ................................ ................................ 14 APPENDIX 2 - HOUSING SUCCESSOR ANNUAL RE PORT REQUIREMENTS ........................... 15 APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE REQUIREMENTS ............................... 17

84 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 1 INTRODUCTION
Following the dissolution of redevelopment in 2012, all former redevelopment agencies were required to designate a housing successor agency to assume all existing assets, expenditures , and other responsibilities. In addition to overseeing assets and ensuring that all remaining funds are spent on affordable housing efforts and related allowable expenses, housing successor agencies must report annually on their activities as required by Senate Bill 341 (DeSaulnier, 2013-14). The Housing Successor Annual Report (“Annual Report”) details housing su ccessor activity and establishes whether it is in compliance with various expenditure and asset requirements outlined in the Health and Safety Code (“HSC”) Section 34176.1(f). The Annual Report also summarizes compliance with certain annual, five-, and ten-year planning period requirements as described herein.

The City of Hercules (“City”) elected to become the Housing Successor Agency (“Housing Successor”) to the former Redevelopment Agency (“Agency”) in February 2024. This cumulative report covers the activities of the Housing Successor since the time of dissolution, from Fiscal Year (“FY”) 2013-14 through FY 2023-24. The intent of this report is to get Hercules up to date with Annual Report requirements and establish the current status of various expenditure and asset requirements.

HOUSING SUCCESSOR
The City adopted Resolution No. 24-014 dated February 27, 2024, establishing itself as the Housing Successor and assum ing responsibility for all remaining housing assets and liabilities of the former Agency. The Housing Successor is responsible for overseeing all housing assets transferred from the former Agency with the main goal of provide affordable housing in the City until such assets have been exhausted.

The Agency was dissolved on February 1, 2012, under California Redevelopment Dissolution Law (Health and Safety Code or “HSC” Section 33000 et seq.). The City did not elect to become the Housing Successor to retain housing assets and functions. The City declined the role of Housing Successor in 2012 because there was no funding for the management or monitoring of housing assets and functions at the time and because the City believed the Contra Costa County Housing Authority (“County Housing Authority”) would take responsibility of Agency housing assets.

HSC 34176(b) states if a city does not elect to become Housing Successor, that role shall be transferred to the local housing authority. The County Housing Authority automatically became the Housing 85 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 2 Successor by operation of law. However, when the City attempted to transfer Agency assets, the County Housing Authority declined Housing Successor responsibilities to avoid jeopardizing federal Housing and Urban Development funding.

The City elected to become the Housing Successor in February 2024 in order to administer outstanding homeowner loans issued by the Agency and access Housing Asset Funds to finance affordable housing development.

SCOPE OF THIS HOUSING SUCCESSOR ANNUAL REPORT
The Annual Report should be limited to the City’s activities as they relate to its role as a housing successor, rather than all housing functions of the City in general and describes compliance with various annual, five-year, and ten-year housing expenditure and production requirements. The City maintains all transferred assets, liabilities, and housing activities in the Hercules Low- and Moderate- Income Housing Asset Fund (“Housing Asset Fund”). Successor agencies generally establish a separate fund to isolate the 20% set aside housing successor funds an d assets from any other funds which may be used for housing related developments.

This report covers the Housing Successor’s activities all the way back to dissolution in order to catch the City up with Annual Report compliance requirements. Since dissolution in 2012, there have been two five-year compliance periods which are covered by this report. The first five-year compliance period was from FY 2013-14 (starting January 1, 2024) through FY 2018-19 while the second five-year compliance period was from FY 2019-20 through FY 2023-24.

The Annual Report is due to the State of California (“State”) Department of Housing and Community Development (“HCD”) by April 1 annually and must be accompanied by an independent financial audit.

The City’s audited financial statements are posted on the City’s website. This Report is an addendum to the Housing Element Annual Progress Report required by Government Code Section 65400, which is submitted to HCD by April 1 annually.

ASSETS TRANSFERRED T O THE HOUSING SUCCESSOR
Upon the statewide dissolution of redevelopment in 2012, all rights, powers, committed assets, liabilities, duties, and obligations associated with the housing activities of the Agency were transferred to the elected housing successor. The City prepared a Housing Asset Transfer (“HAT”) Form that provided an inventory of all housing assets transferred from the Agency to the Housing Successor. This included 108 loans receivable. A copy of the HAT is provided as Appendix 1. 86 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 3 It is important to disti nguish that housing successor assets that were not transferred from the former Agency or generated by or purchased with assets from the former Agency, are not subject to HSC Section 34176.1.

BACKGROUND
This Section summarizes the legal requirements for use of housing successor assets.

LEGAL REQUIREMENTS P ERTAINING TO HOUSING SUCCESSORS
In general, housing successors must comply with three major requirements pursuant to HSC Section 34176.1:

1. Expenditures and housing production are subject to income and age targets.

2. Housing successors may not accumulate an “excess surplus,” or a high unencumbered cash balance based on certain thresholds.

3. Properties must be developed with affordable housing or sold within five to ten years of the DOF approving the HAT.

Appendix 2 provides a detailed summary of the reporting requirements that are addressed in this Report.

PERMITTED USES OF HOUSING ASSE T FUNDS
Pursuant to HSC Section 34176.1, former Agency assets and the revenues generated by those assets, are maintained in a Low- and Moderate-Income Housing Asset Fund (“Housing Asset Fund” ). Housing Asset Funds may be spent on:
 Administrative costs for operation of the housing successor agency. The law allows a housing successor to spend the greater of:
o $200,000 per year adjusted annually for inflation, or o 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable on the HAT (“Portfolio”), whichever is greater.

The City’s property and loan portfolio consists of an asset value such that 5% has been greater than the $200,000 adjusted for inflation annual limit. Therefore, the City’s administrative spending 87 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 4 limit has always been 5% of the portfolio value every fiscal year from FY 2013-14 through FY 2023-24.
 Homeless prevention and rapid rehousing services up to $250,000 per year if the former redevelopment agency did not have any outstanding inclusionary housing or replacement housing production requirements as of 2012. Hercules is ineligible for this expense because the former Agency had not met such requirements upon dissolution. Based on the Agency’s 2010 -2014 Implementation Plan and assessor records, the Agency’s inclusionary housing production requirement through 2011 was 620 affordable units, of which 310 were restricted to very low income. The Agency produced 435 affordable units, of which 311 were res tricted to very low income. The Housing Successor will be eligible for the homeless prevention and rapid rehousing services expense if it produces 185 affordable units.
 Affordable housing development assisting households up to 80 percent of the Area Median Income (“AMI”), subject to specific income and age targets over a five- or ten-year period.

Five-Year Income Proportionality on Development Expenditures: Housing Asset Funds may be spent on development of affordable housing projects affordable to low, very low, and extremely low-income households. “Development” is defined in HSC Section 33413 as new construction, acquisition , rehabilitation, or the preservation of affordable housing developments.

Over each five-year compliance period, at least 30 percent of development expenditures must assist extremely low-income households (30% of AMI), while no more than 20 percent may assist low-income households (between 60-80% of AMI). The balance of such expenditures may be used on very low-income households (between 30% and 60% of AMI). The first compliance period was between January 1, 2014 through June 30, 2019 and the second one between July 1, 2019 through June 30, 2024,
Note that housing successors must report e xpenditures by category each year, but compliance with income proportionality limits is measured every five years. For example, a housing successor could spend all its funds in a single year on households earning between 60-80% of AMI as long as total expe nditures on 60-80% AMI households do not exceed 20 percent during the five-year compliance period.
88 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 5 If a housing successor does not meet the minimum expenditures required for extremely low- income households, or exceeds the amount permitted on low-income households, future expenditures are subject to greater restrictions until these proportionality targets are met.

Specifically, if a housing successor is unable to spend at least 30 percent of its development expenditures on extremely low units, it is required to increase this spending to 50 percent until compliant with the 30 percent threshold. A housing successor that spends more than 20 percent of its development expenditures on low-income units cannot spend any further funds on low-income developments until it is at or below the 20 percent threshold. As such, tracking these expenditures and their progress over the corresponding five-year period is an important function of the Annual Report.

This Report covers the Housing Successor ’s expenditures during the first and second five- year compliance periods. The City is in compliance with all housing development expenditure requirements since dissolution.

Ten-Year Age Proportionality: If more than 5 0 percent of the total aggregate number of rental units produced by the city, housing successor, or former redevelopment agency during the past 10 years are restricted to seniors, the housing successor may not spend more Housing Asset Funds on senior rental housing.

It is important to stress that Housing Successor expenditure and production requirements are measured on different timeframes:
 One-Year Limits: Administrative Allowance and Homeless Prevention Allowance. Compliance evaluated annually and resets every year.
 Five-Year Limit: Expenditures by Income Level. Compliance evaluated over a fixed five -year periods set by law, the first five-year period being July 1, 2014, to June 30, 2019 and the second period being July 1, 2019, to June 30, 2024.
 Ten-Year Limit: Number of Senior Deed-Restricted Units Assisted. Compliance evaluated based on a rolling ten-year period that is different every year.

Appendix 3 describes Housing Asset Fund expenditure requirements in more detail, including the types of costs eligible in each category.
89 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 6 LIMITS ON THE ACCUMULATION OF HOUS ING FUNDS (EXCESS

SURPLUS)
State law limits how much cash a housing successor may retain and, if it fails to commit and spend these dollars in a reasonable timeframe, ultimately penalizes the housing successor by requiring unspent funds to be transferred to HCD for use on State housing programs.

HSC Section 34176.1(d) establishes a limit, known as an “excess surplus” on the amount of unencumbered Housing Asset Funds based on the greater of:
 $1,000,000, or
 The total amount of deposits made into the Housing Asset Fund over the preceding four years.

Only amounts more than this threshold are considered an excess surplus. Once an excess surplus is determined, a housing successor must account for these funds separately and encumber said monies within three years. If after the third year the excess surplus has not been fully encumbered, the remaining balance of the excess surplus is to be transferred to HCD within 90 days. HCD is permitted to use these transferred excess surplus funds anywhere in the State under its Multifamily Housing Program or the Joe Serna, Jr. Farmworker Housing Grant Program.

As part of the Annual Report, a housing successor must disclose any excess surplus and describe the housing successor’s plan for eliminating this excess surplus.

HOUSING ASSET FUND A CTIVITY
This section details the Housing Successor’s activities since FY 2013-14 through FY 2023-24 as reported in the City’s Housing Asset Fund.

DEPOSITS AND FUND BA LANCE
Table 1 reports the value of funds which were deposited into the Housing Asset Fund each fiscal year.

Deposits have consisted of Use of Money & Property from homeowner loan repayments and Miscellaneous Revenues. The Housing Asset Fund received nearly $6 million in deposits between FY 2013-14 and 2023-24.
90 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 7 EXPENDITURES
The Housing Successor may expend Housing Assets Funds to cover administrative costs or the development of affordable housing. Administrative expenditures are subject to annual compliance limits.

The Housing Successor incurred administrative expenses totaling $59,624 between FY 2013 -14 and 2023-24, summarized in Table 2. It also incurred a $216,592 expense related to a Low and Moderate Income Housing Fund Due Diligence Review; the City was required to remit these funds to the County Auditor-Controller as part of the redevelopment dissolution process and it is not considered a Housing Asset Fund administrative or project-related expense.

The City’s annual administrative spending limit is 5% of the total value of all real properties and loans held in the City’s portfolio at the end of each fiscal year. The limit has ranged from $352,103 to $560,537.

The City has incurred minimal administrative expenses and complied with this requirement. 91 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 8 The City has not spent any Housing Asset Funds on housing development , therefore the City is in compliance with the proportionality requirement for the first and second five -year compliance periods .

The City will ensure compliance if it assists affordable housing development in the future.

ENDING CASH AND FUND BALANCE
The Housing Asset Fund balance at the end of each fiscal year since dissolution is shown in Table 3.

The fund balance consists of cash, investments, and accounts and loans receivable.

92 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 9 HOUSING SUCCESSOR PO RTFOLIO
The Housing Successor Portfolio includes several loans transferred from the former Agency on the HAT.

The City had a portfolio value of $10,510,737 in FY 2013-14, which decreased steadily through FY 2023- 24 where the portfolio value ends at $6,707,048 due to loans being paid off. Table 4 below details all the City’s assets and values for each fiscal year since dissolution. The Housing Successor Portfolio does not have any properties.

93 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 10 REAL PROPERTY AND DI SPOSITION STATUS
The Agency transferred no real properties to the City on the HAT. Therefore, the City complies with HSC Sections 33334.16 and 34176.1(e) by default, which require that all real properties acquired by the Agency prior to February 1, 2012, and transferred to the City be developed for affordable housing purposes or disposed of within five years from the date DOF approved the HAT.

LOANS RECEIVABLE
The former Agency transferred several loans to the Housing Successor on the HAT, detailed as follows.

Note the balances reflected in this report match the City’s accounting records as of June 30, 2024 which did not yet account for non-collectible loans written off by City Council in July 2024.  Bridge Housing: Bridge Housing corporation entered an agreement on May 28, 1998, to finance predevelopment and construction activities. The loan had an outstanding balance of $2.3 million as of June 30, 2024. It accrues 3.5 percent simple interest per annum and has a 45-year term.  Eden Housing: On July 1, 2002, Eden Housing, Inc. entered an agreement for a $700,000 loan.

Following the purchase of a vacant lot, the borrower constructed 51 units of affordable housing for lower income senior s. This loan has a 55 -year term and accrues 3 percent simple interest.

The outstanding balance as of June 30, 2024 was $335,013.  First Time Homebuyer: As of June 30, 2024, First Time Home Buyer loans had an outstanding balance of $765,466. These loans aided low to moderate income first time homebuyers. The loans accrue 3 percent simple interest per annum with a 30-year term.  City-Wide Employee Incentive Homeownership Program : The Citywide Employee Incentive Homeownership Program an outstanding balance of $159,590 as of June 30, 2024. This program assisted low to moderate income homebuyers in eligible job categories. The loans have no interest over a 30-year term.
 Homeownership Retention / Loss Mitigation Loan Program: The Homeownership Retention and Loss Mitigation Program help ed low to moderate income homeowners who were at risk of foreclosure. The outstanding balance was $2.4 million as of June 30, 2024 . The loans accrue simple interest ranging from 3 to 5 percent with a term that varies from 30 to 45 years. 94 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 11  BEGIN Homeownership Program: The BEGIN Homeownership Program is a statewide program that helped low to moderate income first-time homebuyers. As of June 30, 2024, the outstanding balance was 180,000. The loans have a 30 -year term and do not accrue interest unless the balance is not paid upon the event of acceleration, in which case they start accruing one percent interest.
 Inclusionary Housing Homeownership Program : The Inclusionary Housing Homeownership Program aided low to moderate income homebuyers to purchase homes. As of June 30, 2024, the loans had an outstanding balance of $675,000 to be paid over a 40-year term with 3 percent simple interest.
 Rehabilitation and Beautification: As of June 30, 2024, there was $203,707 in outstanding loans in the Revitalization and Beautification Program. The Program aided low- and moderate-income homeowners for rehabilitation. The loans have a 3 percent simple interest rate over a 30-year term.
 Home Emergency Repair: The Home Emergency Repair Program had one loan with an outstanding balance of $8,293 as of June 30, 2024. The program helped low to moderate income homeowners fund emergency repairs. This loan has a 10-year term with a 3 percent simple interest rate.

SENIOR RENTAL HOUSING LIMIT COMPLIANCE
The Housing Successor complies with the limit allowing no more than 50 percent of the total aggregate number of rental units produced within the preceding ten years to be restricted to seniors. The most recent ten-year period is FY 2014-15 through 2023-24. Due to the City electing to become the Housing Successor in February 2024, t he Housing Successor , City, and former Agency have assisted zero projects in the past ten years. Therefore, the City is in compliance with this requirement.

EXCESS SURPLUS
The Housing Asset Fund may not accumulate an “excess surplus”, or an unencumbered amount that exceeds the greater of $1 million or the sum of deposits in the prior four fiscal years. This requirement ensures that housing successors are actively spending available Housing Asset Funds on affordable housing.
95 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 12 The City became Housing Successor in February 2024 . Therefore, the first meaningful calculation of excess surplus could be made until FY 2023 -24. As shown in Table 5, the Housing Successor had an excess surplus of $2,745,141.

Housing successors must eliminate any excess surplus by expending or encumbering the funds within three fiscal years . If a housing successor fails to comply, it must transfer any excess surplus to HCD within 90 days of the end of the third fiscal year. The City will ensure funds are encumbered or spent within three fiscal years, or June 30, 2027.

OTHER INFORMATION

TRANSFERS TO OTHER H OUSING SUCCESSORS
There were no transfers to another housing successor entity for a joint project pursuant to HSC Section 34176.1.
96 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 13 HOMEOWNERSHIP UNIT I NVENTORY
Table 6 presents an inventory of affordable homeowner units assisted by the former Agency or Housing Successor that require restrictions, covenants, or an adopted program that protects Housing Asset Fund monies.

Table 6: Homeownership Unit Inventory
Address
Covenant
Expiration
Affordability
Period (Yrs)
1964 Redwood Road 8/1/38 30
190 Manzanita Place 7/1/37 30
16 Amber Court 8/1/35 30
138 South Wildwood 11/1/47 40
138 South Wildwood 6/1/34 30
1209 Devonwood 11/1/35 30
139 Robin Court 9/1/38 30
139 Robin Court 9/1/38 30
1015 Baywood Lane 04/19/38 30
1015 Baywood Lane 4/1/45 40
1439 Partridge 11/1/38 30
2110 Pheasant Drive 1/1/40 30
267 Florence Court 7/1/40 30
240 Sunset Drive 10/1/34 30
194 Glenwood 1/1/35 30
1012 Baywood Lane 04/19/38 30
1012 Baywood Lane 2/1/45 40
1507 Chelsea 7/1/55 45
1507 Chelsea 2/1/39 30
402 Lighthouse Court 1/1/37 30
124 Glenwood 10/1/38 30
2247 Redwood Road 1/1/36 30
160 Tanager Way 6/1/38 30
2268 Redwood 7/1/38 30
1045 Baywood Lane 04/19/38 30
175 Palermo Court 11/1/35 30
1018 Baywood Lane 04/19/38 30
1018 Baywood Lane 5/1/45 40
504 Bristol 8/1/35 30
1027 Baywood Lane 02/01/45 40
1027 Baywood Lane 4/19/38 30
145 Bedford 7/1/49 40
145 Bedford 2/1/39 30
1501 Forest Run 5/1/40 30
141 Glenwood 4/1/38 30
11 Pinnacle 12/1/39 30
226 Apollo 1/1/37 30
1039 Baywood 11/1/39 30
1039 Baywood Lane 10/15/49 40
305 Devonwood 9/1/37 30
1009 Baywood Lane 04/19/38 30
710 Windsor Street 12/1/35 30
Source: City of Hercules
97 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 14 APPENDIX 1 – HOUSING ASSET TRA NSFER FORM

Attached as a separate document.

98 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 15 APPENDIX 2 - HOUSING SUCCESSOR AN NUAL REPORT

REQUIREMENTS
Health and Safety Code Section 34176.1(f)

Housing Asset
Fund
Revenues &
Expenditures

Total amount deposited in the Housing Asset Fund for the fiscal year.

Amount of deposits funded by a Recognized Obligation Payment Schedule (“ROPS”).

Statement of balance at the close of the fiscal year.

Description of Expenditures for the fiscal year, broken out as follows:
 Homeless prevention and rapid rehousing
 Administrative and monitoring
 Housing development expenses by income level assisted

Description of any transfers to another housing successor for a joint project.

Other Assets and
Active Projects

Description of any project(s) funded through the ROPS.

Update on property disposition efforts (note that housing successors may only hold property for up to five years, unless it is already developed with affordable housing).

Other “portfolio” balances, including:
 Statutory value of any real property either transferred from the former Agency or purchased by the Housing Asset Fund
 Value of loans and grants receivable

Inventory of homeownership units assisted by the former Agency or the housing successor that are subject to covenants or restrictions or to an adopted program that protects the former Agency’s investment of monies from the Low- and Moderate-Income Housing Fund.

Obligations &
Proportionality

Description of any outstanding production obligations of the former Agency that were inherited by the Housing Successor.

Compliance with proportionality requirements (income group targets), which must be upheld on a five-year cycle.

Percentage of deed-restricted rental housing restricted to seniors and assisted by the former Agency, the Housing Successor, or the City within the past ten years compared to the total number of units assisted by any of those three agencies.

Amount of any excess surplus, and, if any, the plan for eliminating it.

99 Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 16 100

Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 17 APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE

REQUIREMENTS
Health and Safety Code Section 34176.1
Expense Category Limits Allowable Uses
Administration
and Compliance
Monitoring

Annual Limit
Limit varies
each year
Administrative activities such as:
 Professional services (consultant fees, auditor fees, etc.)  Staff salaries, benefits, and overhead for time spent on Housing Successor administration
 Compliance monitoring to ensure compliance with
affordable housing and loan agreements
 Property maintenance at Housing Successor -owned
properties

Capped at $200,000 and adjusted annually for inflation or 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”), whichever is greater.

Homeless
Prevention and
Rapid Rehousing
Solutions

Annual Limit
$250,000
maximum per
fiscal year
 Services for individuals and families who are homeless or would be homeless but for this assistance, including:
 Contributions toward the construction of local or regional homeless shelters
 Housing relocation and stabilization services including housing search, mediation, or outreach to property owners  Short-term or medium-term rental assistance
 Security or utility deposits
 Utility payments
 Moving cost assistance
 Credit repair
 Case management
 Other appropriate activities for homelessness prevention and rapid rehousing of persons who have become
homeless.

Affordable
Housing
Development

No spending
limit, but must
comply with
income and
age targets
“Development” includes:
 New construction
 Acquisition and rehabilitation
 Substantial rehabilitation
 Acquisition of long -term affordability covenants on
multifamily units
 Preservation of at -risk units whose affordable rent
restrictions would otherwise expire over the next five years

101
Hercules Housing Successor Annual Report FY 2013-14 through FY 2023-24 18 Health and Safety Code Section 34176.1
Expense Category Limits Allowable Uses
Income
Targets
Fixed Five-Year
Compliance
Period
(First Period:

FY 2013-14 to
2018-19
Second Period:

FY 2019-20 to
FY 2023-24)
Every five years, Housing Asset Funds must meet income
targets:
 At least 30% on extremely low-income rental households (up to 30% AMI or “Area Median Income”)
 No more than 20% on low-income households (60-80%
AMI)
Moderate and above moderate-income households may not be assisted (above 80% AMI).

Failure to comply with the extremely low-income requirement in any five-year compliance period will result in having to ensure that 50 percent of remaining funds be spent on extremely low- income rental units until in compliance.

Exceeding the expenditure limit for low households earning between 60-80% AMI in any five-year reporting period will result in not being able to expend any funds on these income
categories until in compliance.

Age Targets
Rolling Ten-
Year Period
For the prior ten years (resets every year), a maximum of 50% of deed-restricted rental housing units assisted by the Housing Successor or its host jurisdiction may be restricted to seniors.

If a housing successor fails to comply, Housing Asset Funds may not be spent on deed -restricted rental housing restricted to seniors until in compliance.
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DIS

CUSSION AND/OR ACTION

AGENDA ITEMS

1. 25-104

2. 25-109
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STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of April 8, 2025
TO: Mayor and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
SUBJECT: Authorization for the West Contra Costa Integrated Waste Management Authority (RecycleMore) to Enter Into Post -Collection Agreements and Exercise Certain Related Powers
RECOMMENDED ACTION:

Staff recommends that the City Council adopt the resolution authorizing the West Contra Costa Integrated Waste Management Authority (RecycleMore) to enter into post - collection agreements and exercise certain related powers pursuant to Section 5.4 of the Joint Exercise of Powers Agreement.

BACKGROUND:

The City of Hercules is one of five member agencies of the West Contra Costa Integrated Waste Management Authority, also known as RecycleMore. The Authority was established to provide regional solid waste management service s, ensuring compliance with the California Integrated Waste Management Act of 1989 and subsequent legislation.

The Authority’s current Post-Collection Agreement is set to conclude on June 30, 2025.

As stipulated in Section 5.4 of the Joint Exercise of Pow ers Agreement, the Authority requires prior written authorization from each Member’s legislative body to exercise certain powers, such as entering into new post-collection agreements.

ANALYSIS:

The Authority has requested authorization from its Member agencies to take the following actions:
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1. Negotiate and enter into new regional post-collection agreements for services beginning July 1, 2025.

2. Adopt ordinances and resolutions necessary to fulfill the purposes of the Agreement.

3. Direct solid waste generated within Member jurisdictions to designated facilities as specified in the new post-collection agreements.

These measures are crucial for ensuring the continuity of solid waste services at reasonable rates while maintaining compliance with state regulations.

By authorizing these actions, the City will enable RecycleMore to effectively manage solid waste processing, ensuring that residents and businesses continue to receive reliable and cost-efficient waste services. The City Council has determined that these actions will benefit the community by fostering service continuity and compliance with environmental standards.

FISCAL IMPACT:

The City will not incur any immediate fiscal impact associated with this action. However, approval of this resolution may help ensure the community's long -term access to cost - effective waste management services.

ENVIRONMENTAL REVIEW:

This action is exempt from environmental review under the California Environmental Quality Act (CEQA) as it is an administrative activity with no potential significant effect on the environment.

ATTACHMENTS:

1. Resolution

2. Joint Exercise of Powers Agreement of the West Contra Costa Integrated Waste Management Authority

3. Post-Collection Recycling and Disposal Services Agreement 105
RESOLUTION NO. XX-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES

AUTHORIZING THE WEST CONTRA COSTA INTEGRATED WASTE MANAGEMENT

AUTHORITY (RECYCLEMORE) TO ENTER INTO POST -COLLECTION

AGREEMENTS AND EXERCISE CERTAIN RELATED POWERS PURSUANT TO SECTION 5.4 OF THE JOINT EXERCISE OF POWERS AGREEMENT THAT CREATED

THE AUTHORITY
WHEREAS, the City of Hercules (City) is one of five member agencies (each a “Member”) of the West Contra Costa Integrated Waste Management Authority, also known as RecycleMore (“Authority” or RecycleMore), pursuant to the 2019 Fifth Amendment and Restatement of the Joint Exercise of Powers Agreement (“Agreement”); and

WHEREAS, the Authority was formed to provide for regional solid waste management services, including the regul ation of post -collection services and programs to ensure compliance with the California Integrated Waste Management Act of 1989 and subsequent legislation; and
WHEREAS, Section 5.4 of the Agreement requires additional prior written authorization from each affected Member’s legislative body before the Authority can exercise certain powers; and;
WHEREAS, the Authority’s current Post -Collection Agreement with its service provider is scheduled to conclude on June 30, 2025; and

WHEREAS, pursuant to the Agreement, the Authority has requested authorization from the member agencies to negotiate and enter into new regional post -collection agreements for the period beginning July 1, 2025, the ability to adopt ordinances and resolutions necessary to carry out the purposes of the Agreement, and to direct the solid waste generated and collected within the Members’ respective boundaries to the facilities identified in the Post-Collection Agreement; and

WHEREAS, the City Council has determined that authorizing the Authority to exercise the powers described in Sections 5.4(f), 5.4(g), and 5.4(h) of the Agreement will benefit the City and its residents by ensuring continuity of essential solid waste services at a reasonable price.

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

1. The City Council hereby authorizes the West Contra Costa Integrated Waste Management Authority to exercise the following powers pursuant to Section 5.4 of the Agreement:

a) To enter into regional post-collection processing or franchise agreements for the period beginning July 1, 2025, or later, as specified in Section 5.4(f) of the Agreement;

b) To adopt, as authorized by California law, ordinances and resolutions necessary to carry out the purposes of the Agreement, as specified in Section

5.4(g) of the Agreement; and
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c) To require that the Members direct all of the Solid Wastes generated and collected within their respective boundaries (or specified portions or specified types of such Directed Wastes and Materials) to the Approved Facility for the period beginning July 1, 2025 or later, as specified in Section 5.4(h) of the Agreement.

2. Authorizes the City Manager to execute any and all documents necessary to effectuate this authorization.

3. Finds said authorization to be exempt from the California Environmental Quality Act (“CEQA”) in accordance with Section 15061 (b) (3) of the CEQA guidelines because it can be seen with certainty that there is no possibility that this administrative action will have an impact on the environment.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on April 8, 2025, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

__________________________
Dion Bailey, Mayor
ATTEST:

______________________________
Eibleis Melendez, City Clerk

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FIFTH AMENDMENT AND RESTATEMENT

JOINT EXERCISE OF POWERS AGREEMENT

OF THE WEST CONTRA COSTA INTEGRATED

WASTE MANAGEMENT AUTHORITY
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TABLE OF CONTENTS
PAGE
SECTION 1. Definitions.................................................................................................................3

1.1. Act ............................................................................................................................3

1.2. Agreement ................................................................................................................3

1.3. Alternate Director ....................................................................................................4

1.4. Approved Facilities ..................................................................................................4

1.5. Approved Rates ........................................................................................................4

1.6. Authority ..................................................................................................................4

1.7. Board ........................................................................................................................4

1.8. City ...........................................................................................................................4

1.9. Contractor ................................................................................................................4

1.10. Core Services ...........................................................................................................4

1.11. County ......................................................................................................................4

1.12. Directed Waste and Materials ..................................................................................5

1.13. Director ....................................................................................................................5

1.14. El Cerrito Recycling Services ..................................................................................5

1.15. Executive Director ...................................................................................................5

1.16. Facility .....................................................................................................................5

1.17. Fiscal Year ...............................................................................................................5

1.18. Franchise Agreement ...............................................................................................5

1.19. Hazardous Materials or Hazardous Waste ...............................................................6

1.20. Household Hazardous Waste (HHW) ......................................................................7

1.21. Law ..........................................................................................................................7

1.22. Member ....................................................................................................................7 109

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1.23. MRF .........................................................................................................................7

1.24. Non-Core Service.....................................................................................................8

1.25. Non-Disposal Facility Element (NDFE) ..................................................................8

1.26. Post Collection Agreement (PCA). ..........................................................................8

1.27. Post Collection Agreements (PCAs) ........................................................................8

1.28. Recyclable Materials ................................................................................................8

1.29. Solid Waste ..............................................................................................................9

1.30. Source Reduction and Recycling Element (SRRE) .................................................9 SECTION 2. Purpose ......................................................................................................................9

2.1. Core Services .........................................................................................................10

2.2. Future Services.......................................................................................................13

2.3. Non-Core Services .................................................................................................14 SECTION 3. Creation of Authority ..............................................................................................14 SECTION 4. Term ........................................................................................................................14 SECTION 5. Powers .....................................................................................................................14 SECTION 6. Boundaries ..............................................................................................................19 SECTION 7. Organizations ..........................................................................................................20

7.1. The Board...............................................................................................................20

7.2. Directors. ................................................................................................................20

7.3. Principal Office ......................................................................................................21

7.4. Officers ..................................................................................................................21

7.5. Chair .......................................................................................................................22

7.6. Vice Chair ..............................................................................................................22

7.7. Executive Director .................................................................................................22

7.8. Treasurer ................................................................................................................23 110

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7.9. Controller ...............................................................................................................24

7.10. General Counsel .....................................................................................................24

7.11. Secretary ................................................................................................................24

7.12. Access to Property .................................................................................................24

7.13. Officers, Employees and Agents ............................................................................24 SECTION 8. Meetings of the Board .............................................................................................25

8.1. Regular Meetings ...................................................................................................25

8.2. Special Meetings ....................................................................................................25

8.3. Notice of Meetings .................................................................................................25

8.4. Minutes ..................................................................................................................25

8.5. Quorum ..................................................................................................................25

8.6. Voting ....................................................................................................................25

8.7. Bylaws....................................................................................................................26

8.8. Budget ....................................................................................................................26

8.9. Reserves .................................................................................................................26

8.10. Committees ............................................................................................................27 SECTION 9. Operating Fund Revenues and Other Sources of Funds .........................................28 SECTION 10. Records and Accounts...........................................................................................28 SECTION 11. Implementation of the Act ....................................................................................29

11.1. Intent ......................................................................................................................29

11.2. Submittal of Elements by Members .......................................................................29

11.3. Compliance Monitoring .........................................................................................29

11.4. Contingency Plans .................................................................................................30

11.5. Regional Plan .........................................................................................................30

11.6. Grants and Financial Assistance ............................................................................31 111

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SECTION 12. Authority Established Rates ..................................................................................32 SECTION 13. Apportionment of Penalties ..................................................................................34

13.1. Penalties Arising from Authority Failure ..............................................................34

13.2. Penalties Arising from a Member’s Failure ...........................................................34 SECTION 14. Disposition of Assets at Dissolution .....................................................................36 SECTION 15. Withdrawal ............................................................................................................36

15.1. Requirements for Withdrawal ................................................................................36

15.2. Disbursement of Unallocated Funds Upon Withdrawal ........................................38

15.3. Obligations Following Withdrawal Date ...............................................................39

15.4. Effect of Withdrawal on Agreement ......................................................................39

15.5. Member and Authority’s Obligations Under the Act ............................................39 SECTION 16. Amendments Including Termination ....................................................................40 SECTION 17. Filing with the Secretary of State..........................................................................41 SECTION 18. Notices ..................................................................................................................41 SECTION 19. Successors and Assigns.........................................................................................42 SECTION 20. El Cerrito Recycling Services ...............................................................................42 SECTION 21. Third Party Beneficiaries ......................................................................................43 SECTION 22. Severability ...........................................................................................................43 SECTION 23. Section Headings ..................................................................................................43 SECTION 24. Dispute Resolution ................................................................................................43

24.1. Informal Resolution ...............................................................................................43

24.2. Arbitration ..............................................................................................................44

24.3. Binding Arbitration ................................................................................................44

24.4. Enforcement ...........................................................................................................44

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AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT OF THE

WEST CONTRA COSTA INTEGRATED WASTE MANAGEMENT AUTHORITY

THIS AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT (“Agreement”) is entered into as of November 20 , 2019, and is by and among the CITY OF EL CERRITO (“El Cerrito”), a municipal corporation and charter city, the CITY OF HERCULES, a municipal corporation, the CITY OF PINOLE, a municipal corporation, the CITY OF RICHMOND, a municipal corporation and charter city, and the CITY OF SAN PABLO, a municipal corporation hereinafter referred to individually as “Member” and collectively as “Members.” This Agreement amends and restates the Joint Powers Agreement dated April 2, 1991, as amended by Amendment No. 1 dated November 14, 1991, Amendment and Restatement No. 2 dated December 21, 1993, Amendment and Restatement No. 3 dated March 6, 1995, and Amendment No. 4 on March 10, 2011(together, the “Original Agreement”), and restates in full the provisions of the Original Agreement, except as amended herein, without affecting the ongoing existence of the WEST CONTRA COSTA INTEGRATED WASTE MANAGEMENT AUTHORITY (“Authority”).

RECITALS
A. California Government Code section 6500 et seq . (“Law”) provides for agreements between two or more public agencies to jointly exercise any power common to the contracting parties, subject to certain mandatory provisions contained therein; B. The State of California has enacted the California Integrated Waste Management Act of 1989 at California Public Resources Code section 40000 et seq. (“Act”) mandating that municipalities divert material from landfills and promulgating regulations promoting material reuse and recycling.
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C. Pursuant to this authority, the Members entered into the Original Agreement to establish and confer upon a separate legal entity the powers necessary to: (i) form a Regional Agency to report as a single entity the annual regional compliance with the Act’s reporting requirements; (ii) implement regional waste reduction and recycling diversion programs; (iii) to increase the diversion of waste from disposal facilities; and (iv) develop an integrated resource recovery facility (“IRRF”) to achieve the Members’ waste diversion goals, to comply with the Act, and to arrange for processing of and disposal of remaining waste.

D. The County and the Authority entered into a contract on May 25, 1993 (“Authority-County Contract”) in order to facilitate development of an integrated resource recovery facility (“IRRF”) to be partially located in the unincorporated area of the County, provide for the continued disposal of waste generated in the unincorporated areas of the County encompassed by the District, divert such waste through the use of an IRRF and provide for regulation of the IRRF.

E. Pursuant to the Agreement, the County appointed an ex-officio non-voting Director to the Authority’s Board of Directors, the Authority approved IRRF bonds, an IRRF was developed and the bonds were repaid.

F. The Members recognize that many Author ity activities are based upon the waste tonnage generated by the Members and that the City of Richmond generates a substantially greater amount of tonnage in all categories of waste than other Members. Therefore, although Authority programs are available to all Members regardless of the waste tonnage generated by a particular Member, the Members commit to make a good faith effort to provide Richmond with funding, materials and services commensurate with its contribution to the Authority’s budget. 114

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G. Prior to 2014, the iterations of the Original Agreement addressed IRRF bonds and development including the contract with West County Resource Recovery Inc. for IRRF operation and administration. The Authority’s involvement with these activities has now concluded. Nonetheless, the Authority continues to operate as a Regional Agency and to manage the post-collection processing and disposal activities of the Members. This Agreement is intended to be consistent with those activities and is further intended to provide a structure for the Authority to both meet new legislative mandates and provide the necessary flexibility to address Members’ needs post 2024.

H. The Members further intend that this Agreement refle ct the changes that have occurred since the execution of the Third Amendment Restatement in 1995, to exercise their respective powers jointly and to exercise such additional powers as are available to the Authority under the Law for the purpose of achieving their waste diversion goals and complying with the Act.

ACCORDINGLY, THE MEMBERS HEREBY AGREE AS FOLLOWS:

SECTION 1. Definitions. The terms defined in this Section have the following meanings:

1.1. Act. “Act” means the California Integrated Waste Management Act of 1989, California Public Resources Code sections 40000 et seq.) and all regulations adopted under that legislation, and the subsequent legislation and regulations provided for in Division 30 of the Public Resources Code et seq., as amended from time to time.

1.2. Agreement. “Agreement” means this Joint Exercise of Powers Agreement, as it may be amended from time to time, including the Fifth Amendment to and Restatement of the West Contra Costa Integrated Waste Management Authority Joint Exercise of Powers Agreement.
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1.3. Alternate Director. “Alternate Director” means the person(s) appointed by each Member who is authorized to represent the Member at a Board meeting in the absence of the Member’s Director.

1.4. Approved Facilities. “Approved Facilities” means a solid waste management facility or facilities, such as a MRF, transfer station, composting or other type of processing facility, designated from time to time by the Authority to receive some or all Directed Waste and Materials.

1.5. Approved Rates. “Approved Rates” means the rates or charges authorized by the Authority from time to time to be paid at the Approved Facilities for Directed Waste and Materials received at the Approved Facility to pay for operational costs and other obligations of the Authority.

1.6. Authority. “Authority” means the West Contra Costa Integrated Waste Management Authority, a joint exercise of powers Agency created by the Members pursuant to the Agreement.

1.7. Board. “Board” means the Board of Directors of the Authority.

1.8. City. “City” means any Member that is a city ; “Cities” means all Members that are cities.

1.9. Contractor. “Contractor” means “Contractor” as defined in the PCA or the PCAs as the context may require.

1.10. Core Services. “Core Services” means any service, program or project the Authority is expected to perform through the termination of the current Post Collection Agreement and potentially thereafter listed in Section 2 herein.

1.11. County. “County” means Contra Costa County, California. 116

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1.12. Directed Waste and Materials. “Directed Waste and Materials” means materials collected pursuant to a Franchise Agreement, or collected by a Member pursuant to any other agreement between a Member and other party and directed by the Authority to be delivered to an Approved Facilities.

1.13. Director. “Director” means the elected person that is appointed by a Member to represent that Member on the Board. For the purposes of voting and quorum, the term “Director” shall be read to also include an “Alternate Director” when such person is seated on the Board as the representative of the Member at a Board meeting.

1.14. El Cerrito Recycling Services. “El Cerrito Recycling Services” means both the collection of Recyclable Materials at the El Cerrito Recycling and Environmental Resource Center and the collection of Recyclable Materials through or by El Cerrito whether directly or by contract.

1.15. Executive Director. “Executive Director” means the person hired or appointed by the Board as the Authority’s Executive Director to administer the affairs of the Authority and to effect the policies of the Board or his or her designee.

1.16. Facility. “Facility” means a facility or facilities for the transfer, processing, diversion or removal of portions of Solid Waste prior to disposal, owned either by one or more of the Members directly or by a private entity.

1.17. Fiscal Year. “Fiscal Year” means the period commencing on each July 1 and ending on the following June 30.

1.18. Franchise Agreement. “Franchise Agreement” means an agreement between a Member and a third party that provides for the collection of Solid Waste, and related services, or if additional specific authorization is provided to the Authority for a particular Member’s solid 117

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waste collection activities, an agreement between the Authority and a third party that provides for collection of Solid Waste and related services.

1.19. Hazardous Materials or Hazardous Waste. “Hazardous Materials ” or “Hazardous Waste” means materials that, by reason of their quality, concentration, composition or physical, chemical or infectious characteristics may cause or significantly contribute to an increase in mortality or an increase in serious illness or pose a substantial threat or potential hazard to human health or the environment when improperly treated, stored, transported or disposed of or otherwise mismanaged; or any waste which is defined and/or regulated as a Hazardous Waste, toxic waste, hazardous chemical substance or mixture, or asbestos under any applicable local, state or federal law or regulation, or:
(a) “Hazardous Waste” pursuant to section 40141 of the California Public Resources Code; regulated under Chapter 7.6 (commencing with section 25800) of Division 20 of the California Health & Safety Code; all substances defined as Hazardous Waste, acutely Hazardous Waste, or extremely Hazardous Waste by sections 25110.02, 25115, and 25117 of the California Health & Safety Code (California Hazardous Waste Control Act), California Health & Safety Code section 25100 et seq. including 23 CCR sections 2521 and 2522; (b) Materials regulated under the Resource Conservation and Recovery Act, 42 U.S.C. section 6901 et seq. as amended (including amendments thereto made by the Solid Waste Disposal Act Amendments of 1980);
(c) Materials regulated under the Toxic Substances Control Act, 15 U.S.C. section 2601 et seq., as amended, and related federal, state and local laws and regulations, including the California Hazardous Substances Account Act, California Health & Safety Code section 25300, et seq.;
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(d) Materials regulated under the Comprehensive Environmental Response, Compensations and Liability Act, 42 U.S.C. section 9601, et seq.; (e) Materials regulated under any future or additional or substitute federal, state or local laws and regulations pertaining to the identification, transportation, treatment, storage or disposal of toxic substances or hazardous waste; or (f) If two (2) or more governmental agencies having concurrent or overlapping jurisdiction over hazardous waste adopt conflicting definitions of “hazardous waste” for purposes of collection, transportation, processing and/or disposal, the broader, more restrictive definition is employed for the purposes of this Agreement.

1.20. Household Hazardous Waste (HHW). “Household Hazardous Waste” or “HHW” means Hazardous Waste generated incidental to owning or maintaining a place of residence. HHW does not include waste generated in the course of operating a business activity at a residence.

1.21. Law. “Law” means the Joint Exercise of Powers Act, Articles 1, 2 and 4 of Chapter 5 of Division 7 of Title 1 of the California Government Code (California Government Code sections 6500, et seq.) and all regulations adopted under that legislation, as that legislation and those regulations may be amended from time to time.

1.22. Member. “Member” means any of the Member agency signatories to this Agreement and “Members” means all of the Member agency signatories to this Agreement.

1.23. MRF. “MRF” means a materials recovery facility, including lands on which such facility is located, for receiving, processing, recycling and transportation or transfer of Solid Waste for processing, recovery or diversion, or any combination thereof. 119

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1.24. Non-Core Service. “Non -Core Service” means any service, program or project which is not listed as Core Services and not included in Section 2 herein.

1.25. Non-Disposal Facility Element (NDFE) “Non-Disposal Facility Element” or “NDFE” means the non-disposal facility element required to be prepared pursuant to the Act and as that element may be amended from time to time.

1.26. Post Collection Agreement (PCA). “Post Collection Agreement ” or “PCA” means the Agreement entered into between the Authority and West County Resources Recovery, Inc., West Contra Costa Sanitary Landfill, Inc., Golden Bear Transfer Services, Inc., Richmond Sanitary Service, Inc. and Keller Canyon Landfill Company for post collection recycling and disposal services dated October 10, 2013, including any amendments or successor agreements thereto. Post Collection Agreement as used herein shall also refer to any subsequent agreements between the Authority and a solid waste enterprise or enterprises for post collection services as approved by Members.

1.27. Post Collection Agreements (PCAs). “Post Collection Agreements” or “PCAs” means, collectively, (a) the Post Collection Agreement and (b) the agreement between the City of El Cerrito and West County Resources Recovery, Inc., West Contra Costa Sanitary Landfill, Inc., Golden Bear Transfer Services, Inc., Richmond Sanitary Service, Inc. and Keller Canyon Landfill Company for post collection recycling and disposal services effective January 1, 2014 or any successor agreement between El Cerrito and a solid waste enterprise or enterprises for post collection services.

1.28. Recyclable Materials. “Recyclable Materials” means materials that can be reused, or remanufactured or processed for one or more forms of reuse. 120

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1.29. Solid Waste. “Solid Waste” means and includes all putrescible and nonputrescible solid, semisolid, and liquid wastes, including garbage, trash, refuse, rubbish, ashes, industrial wastes, demolition and construction wastes; Recyclable Materials; discarded home and industrial appliances; manure; vegetable or animal solid and semisolid wastes; and other discarded solid and semisolid wastes, as defined in California Public Resources Code section 40191, as that section may be amended from time to time and as may be limited by applicable law. For the purposes of this Agreement, “Solid Waste” does not include abandoned vehicles and parts thereof, Hazardous Waste, low-level radioactive waste, or medical waste.

1.30. Source Reduction and Recycling Element (SRRE). “Source Reduction and Recycling Element” or “SRRE” means a source reduction and recycling element required by the Act, as that element may be amended from time to time.

SECTION 2. Purpose.

This Agreement is entered into pursuant to the Act for the purpose of the Members maintaining an existing Regional Agency to collectively regulate post-collection services and combine disposal and diversion of Solid Waste for determining compliance with the Act and (i) plan, study, recommend and have the authority to implement proper solid waste management activities and programs consistent with the Act, (ii) to enable it to report and track programs under the Act on a regional basis, (iii) address future diversion mandates, to allow for efficient operation of diversion programs on a region-wide basis, and (iv) to allow for the development of Regional Integrated Waste Management Plans including a Source Reduction and Recycling Element, Household Hazardous Waste Element, and Non-Disposal Facility Element. The Members are each empowered by the laws of the State of California to exercise the powers specified in this Agreement, to comply with the provisions of the Act and other laws. These 121

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common powers shall be exercised for the benefit of any one or more of the Members or otherwise in the manner set forth in this Agreement. The Members are also empowered to acquire, construct, finance, refinance, maintain, operate and regulate Facilities and the Authority may undertake such activities subject to authorization by the Members’ legislative bodies as set forth herein.

2.1. Core Services. Although the Authority may undertake additional Non -Core Service activities subject to unanimous vote of the Board as set forth herein, the Members desire to identify the following Core Services the Authority is expected to perform through the termination of the current Post Collection Agreement, and potentially thereafter:
(a) Ensure that the Post Collection Agreement (“PCA”) terms are being met by the Contractor as that term is defined in the PCA, including, but not limited to:
(1) Track and confirm expected diversion rates at the approved organic materials, dry materials, construction and demolition, and recyclable materials processing facilities;
(2) Track and confirm contracted level of service at the transfer station and other post-collection facilities and by the household hazardous waste program; (3) Track and confirm expected level of service for education and outreach services for schools, including West Contra Costa Unified School District (“WCCUSD”), in the Authority’s service area;
(4) Track and confirm compliance with applicable law, permits, Facility requirements and best management practices, including proper records management, provision of insurance and similar requirements; and
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(5) Track and confirm all recycling and diversion programs performed by Contractor pursuant to the PCA.
(b) Validate post collection rates to ensure accuracy, reasonableness and consistency with the methodology formula described in Exhibit B. (c) Validate the accuracy of information stated in quarterly, annual, and other reports submitted by the Contractor to the Authority.
(d) Seek to reduce costs to Members in future post collection solid waste activities and agreements.
(e) Seek to increase the benefits to Members in future post collection solid waste activities and agreements.
(f) Negotiate the lowest possible rates for Members and customers. (g) Monitor and coordinate compliance with the Act, Assembly Bill 1826 (2014), Assembly Bill 341 (2011), Senate Bill 1383 (2016), and other State solid waste related legislation and regulatory requirements
(1) Collect and submit information from Members to update Electronic Annual Report (EAR) and update and upload other required reports; (2) Report annual waste and diversion tonnages to the Board and Members;
(3) Maintain and update regional SRRE, NDFE and Household Hazardous Waste Element (HHWE);
(4) Coordinate and assist WCCUSD Source Reduction and Recycling Compliance; and
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(5) Coordinate with CalRecycle staff to schedule on-site Member meetings.
(h) Operate Household Hazardous Waste Programs (“HHWP”), including the following:
(1) Act as the HHWP public agency permittee;
(2) Determine desired level of service after consultation with Members and communicate desired levels to all HHWP contractors; (3) Manage HHW budget and monitor Contractor’s HHW costs for consistency with the approved budget;
(4) Manage contract for HHW Facility and any satellite or mobile events;
(5) Confirm and report that expected levels of service are being maintained;
(6) Monitor Contractor’s compliance with applicable law, permits and best management practices, including proper reporting, records management and retention, provision of insurance and similar requirements;
(7) Operate a motor oil recycling program, design and distribute all related public information in English and Spanish, ensure compliance and coordinate events; and (8) Implement and oversee a pharmaceutical collection and disposal program and battery recycling program, design and distribute all related public information in English and Spanish, ensure compliance and coordinate events. 124

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(i) Administration and oversight of day to day Authority operations including providing support services to the Board as well as providing human resources, information technology and financial services to the Authority and its staff. (j) Conduct public outreach and education within existing budgeted funding and staffing levels beyond existing Contractor efforts including:
(1) Outreach and education regarding HHW, pharmaceutical collection and disposal program, and battery recycling program; and (2) Multi-family and commercial recycling and organics outreach and education ensuring that El Cerrito shall equally benefit from such Authority efforts. (k) Monitor and analyze relevant legislation within existing budgeted funding and staffing levels including:
(1) Provide timely updates and recommendations to the Board on proposed legislation that will likely affect local government solid waste and diversion programs; (2) Provide analysis to enable the Board to take actions to support or oppose proposed legislation;
(3) Submit comments on the proposed legislation to the lead agency creating the legislation; and
(4) Coordinate with Members in interpreting and implementing new laws and regulations, ensuring that all Members shall equally benefit from such Authority efforts.

2.2. Future Services. In the future and post 2025, the Authority may continue to provide the Core Services or other such services as Members request, consistent with the powers set forth herein, and such authority and responsibility shall be subject to further delegation or 125

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authorization of the Members. Upon delegation or authorization, the Authority may continue to provide Core Services, a portion of Core Services, or other services, including, but not limited to potential procurement and negotiations of future post collection agreements.

2.3. Non-Core Services. Non -Core Service shall be approved by a unanimous vote of the Board.

SECTION 3. Creation of Authority.

3.1. Pursuant to the Law, the Members created and established the Authority in 1991 as a public entity separate from each of the Members.

3.2. The assets, rights, debts, liabilities and obligations of the Authority shall not constitute assets, rights, debts, liabilities or obligations of any of the Members, to the fullest extent allowed by Government Code section 6508.1 and other applicable law. However, if Member liability exists, a Member shall be liable even if its representative did not vote in favor of the action that created the liability, except as specified in Section 5.4. Nothing in this Agreement shall prevent any Member from separately contracting for, or assuming responsibility for, specific debts, liabilities or obligations of the Authority, provided that both the Board and that Member agency approve such contract or assumption.

SECTION 4. Term. The Authority has become effective as of April 1, 1991. It shall continue until terminated or dissolved by a vote taken in accordance with Section 16 of this Agreement.

SECTION 5. Powers.

5.1. The Authority shall have the power to plan, study and recommend proper solid waste management consistent with the Act and, if and to the extent permitted by the Act, to 126

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adopt and implement an SRRE for all or any portion of the area included within the Authority’s boundary.

5.2. The Authority is empowered to prepare, revise, approve and submit a Regional Integrated Waste Management Plan pursuant to the Act to the California Environmental Protection Agency, Department of Resources Recycling and Recovery (“CalRecycle”) in lieu of preparation, approval, and submittal of individual SRREs, HHWEs and NDFEs by individual Members, to specify in said Regional Integrated Waste Management Plan programs to be implemented by any or all Members and the Authority, and to implement programs specified in said Regional Integrated Waste Management Plan for implementation by the Authority, and in the event the Authority exercises such power, instead of the individual Members, it shall be responsible for compliance with Article 1 (commencing with section 41780) of Chapter 6 of the Act following approval of a Regional Member Integrated Waste Management Plan by the California Integrated Waste Management Board.

5.3. To the full extent permitted by applicable Law, the Authority is authorized, in its own name, to do all acts necessary or convenient for the exercise of the following powers that each Member could exercise separately:
(a) To make and enter into contracts, including contracts with any Member; (b) To apply for and accept grants, gifts, donations, loans, advances and contributions;
(c) To employ or contract for the services of engineers, attorneys, accountants, planners, consultants, fiscal agents and other persons and entities; (d) To make plans and conduct studies;
(e) To acquire, improve, hold, lease and dispose of real and personal property; 127

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(f) To sue and be sued in its own name;
(g) To incur and discharge debts, liabilities and obligations; (h) To establish or approve Approved Rates;
(i) To hire, manage and fire agents and employees;
(j) To require that the Members direct all of the Directed Waste generated and collected within their respective boundaries (or specified portions or specified types of such Wastes and Materials) to the Approved Facility until December 31, 2024, and potentially thereafter as the case may be; however, that the Authority is not empowered to require El Cerrito to so direct any Solid Waste collected by its collector or collected as part of El Cerrito Recycling Services unless El Cerrito so consents;
(k) To require each Member other than El Cerrito to include some or all of the Approved Rates paid to the owner or operator of the Approved Facilities in connection with the waste stream of that Member directed to the Approved Facilities, to be “passed through” to or collected from the ratepayers within the boundaries of that Member; (l) Subject to a unanimous vote of the Board, to require each Member to (i) include fees which may be imposed from time to time by the Authority and to be collected from the ratepayers within the boundaries of that Member which fees are determined by the Authority in its sole discretion as being necessary for a period of time to pay continuing expenses of the Authority under circumstances where the revenue received from the Approved Rates is not available or inadequate ; and (ii) provide for payment of such fees collected to the Authority or a party designated by the Authority without reduction, limitation, offset or adjustment and to require that the Member take such action to direct the collection of such fees in a timely manner; 128

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(m) Subject to a unanimous vote of the Board, to require a Member to (i) include amounts determined by Authority as necessary to provide for the planning and implementation activities of the Authority, to pay other costs and obligations of the Authority to be “passed through” to or collected from ratepayers within the boundaries of that Member regardless of how that Member collects fees; and (ii) provide for payment of amounts to the Authority, in the event that such amounts are not paid to the owner or operator of the Approved Facility, and to require that the Member take such action to direct payment of its portion of funding otherwise provided for in said Approved Rates in a timely manner; (n) To determine the type, extent and manner of processing of Solid Waste necessary for the Members to comply with the diversion requirement of the Act and to arrange for said processing through implementation or modification of an Approved Facility, or through use of other facilities;
(o) To implement the Regional Integrated Waste Management Plan and upon approval of such plan to require Members to implement the Regional Integrated Waste Management Plan; and
(p) To educate the public as to Solid Waste, diversion and recycling matters.

5.4. To the full extent permitted by applicable law, the Authority is authorized, in its own name, to exercise the following powers that each Member could exercise separately, subject to additional prior written authorization by the affected Member’s legislative body:
(a) To enter into new regional agreements binding on its Members; (b) To acquire, construct, finance, refinance, operate, regulate and maintain Facilities or contract with a private entity to do the same, subject, however, to the conditions and restrictions contained in this Agreement, including the following:
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(1) Prior to any substantial Authority involvement in the planning for such a facility, the Facility shall be conceptually approved by the Board. (2) Following such initial approval, each Member’s governing body shall determine whether or not it will participate in the Facility. All costs associated with the Facility shall be borne exclusively by the participating Members. (3) Nonparticipating members will not be entitled to use the Facilities.

Subject to a unanimous vote of the participating members, a nonparticipating Member may become a participating member on such terms as may be determined by the Board. (4) Both the Board and the governing body of the jurisdiction in which the Facility would be located (the “Host”) must approve the Facility prior to its construction or acquisition.
(5) The Authority shall not exercise the power of eminent domain in order to acquire real and personal property necessary and convenient to the development of a Facility, but it may request that the Host acquire such property. (c) To issue revenue bonds, notes, certificates of participation, or any other instrument evidencing indebtedness, from time to time, in accordance with all applicable laws, for the purpose of raising funds to finance or refinance the acquisition, construction, improvement, renovation, repair, operation, regulation, modification, or maintenance of Facilities;
(d) To enter into agreements to regulate or operate a Facility; (e) To lease Facilities;
(f) To enter into regional post collection processing or franchise agreements for the period beginning in 2025 or later;
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(g) To adopt, as authorized by California law, ordinances and resolutions necessary to carry out the purposes of this Agreement; and (h) To require that the Members direct all of the Solid Wastes generated and collected within their respective boundaries (or specified portions or specified types of such Directed Wastes and Materials) to the Approved Facility for the period beginning in 2025 or later.

5.5. The powers specified in this Section 5 shall be exercised subject only to the limitations set forth in this Agreement, applicable law and such restrictions upon the manner of exercising such powers as are imposed by law upon the Members in the exercise of similar powers. The Members do not specifically delegate any additional powers to the Authority without the express authorization of each Member’s governing body. Nothing in this Section shall prevent the Authority from providing additional services to Members pursuant to an agreement or agreements between or among the Authority and a Member or Members, in which the Member or Members agree(s) to compensate the Authority for the provision of such services.

5.6. The Authority hereby designates San Pablo, a general law city, as the Member required to be designated by section 6509 of the California Government Code.

5.7. Although the Authority has not entered into Franchise Agreements to date, nothing in this Agreement prevents it from so doing. However, if the Authority wished to enter into Franchise Agreements in the future, the Board would have to authorize it to exercise such authority and it shall be conditioned upon prior authorization by the affected Member’s legislative body as set forth in Section 5.3(i).

SECTION 6. Boundaries. The boundary of the Authority shall be the consolidated boundaries of the Members as set forth in Exhibit A attached hereto and incorporated herein. If 131

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a new Member joins or a Member withdraws from the Authority, the boundary of the Authority shall be modified to include or exclude the area of the new or withdrawing Member. This Section 6 shall not prevent any Facilities from being located outside the boundary of the Authority.

SECTION 7. Organizations.

7.1. The Board. The Authority shall be governed by the Board, which shall exercise or oversee the exercise of all powers and authority on behalf of the Authority.

7.2. Directors.
(a) The Board shall consist of a Director from each Member, except that the City of Richmond shall have three Directors, and a non-voting ex officio member from the County. Upon execution of this Agreement, each Member shall appoint its representative Director(s) to the Board and one (1) person as an Alternate Director to serve in the case of absence of or recusal by an appointed Director. Directors and Alternate Directors who have been duly appointed and are serving at the time of the restatement of this Agreement may continue to serve in that capacity without further action of the Member. (b) Each Director and Alternate Director shall hold office from the first meeting of the Board after appointment by the Members until his or her successor is selected by the Member agency of that Director. Each Director and Alternate Director shall serve at the pleasure of the Member that he or she represents and may be removed at any time, without cause, in the sole discretion of that Member. However, a Member shall not remove a Director or Alternate Director unless, before the next meeting of the Board, it also appoints a replacement Director or Alternate Director.
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(c) Each Director and Alternate Director shall be an elected official of the governing body of the Member that he or she represents. If a Director or Alternate Director ceases holding any such elected position, he or she shall then cease to serve as a Director or Alternate Director. The Authority and the Board shall be entitled to rely on a written notice from the City Clerk as conclusive evidence of the appointment and removal of Directors and Alternate Directors representing that Member. If a Member appoints and/or removes a Director or Alternate, written notice of such action shall be provided to both the Authority Executive Director and Clerk of the Board at least seventy-two (72) hours prior to the next regularly scheduled Board meeting.

7.3. Principal Office. The principal office of the Authority shall be established by the Board within the boundary of the Authority and the address of the principal office shall initially be 13831 San Pablo Avenue, San Pablo, California 94806. The Board may change that principal office upon giving at least fifteen (15) days’ prior written notice to each Member and to the California Integrated Waste Management Board.

7.4. Officers. The Authority shall have seven (7) officers: a Chair, a Vice Chair, an Executive Director, Treasurer, Controller, a General Counsel and a Secretary. The Board may designate additional officers such as managers by resolution and those additional officers shall be subject to the same rules and conditions applicable to the seven (7) officers set forth herein.

The Executive Director, Treasurer, Controller, General Counsel, and Secretary shall not be employees of a Member during the period that he or she serves as an officer of the Authority. unless the Board has taken or takes specific action to authorize use of a Member’s employee in that capacity. None of the officers (including the Chair or Vice Chair) shall be an employee or otherwise be affiliated with the operator of an Approved Facility or any integrated waste 133

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management company which provides services to the Authority or a Member. The Board shall select a Chair and a Vice Chair from among the Directors and shall hold office for a period of one (1) year commencing on a date designated by resolution of the Board. No person shall serve consecutive terms as the Chair and no person shall serve consecutive terms as the Vice Chair. Successive Chairs shall not be representatives of the same Member. Successive Vice Chairs shall not be representatives of the same Member.

7.5. Chair. The Chair shall preside at meetings of the Board, call meetings to order, adjourn meetings, announce the business and the order it is to be acted upon, recognize persons entitled to speak, put to a vote all questions moved and seconded, announce results of votes, maintain the rules of order, execute documents and official actions on behalf of the Board when duly approved, and carry out other duties set forth in any bylaws adopted by the Board.

Notwithstanding the foregoing, any Director shall be entitled to place any matter related to the business of the Authority on the agenda for any meeting of the Board, subject to reasonable procedures adopted by the Board of Directors.

7.6. Vice Chair. The Vice Chair shall serve as Chair in the absence of the regularly elected Chair.

7.7. Executive Director. The Board shall employ or contract for the services of an Executive Director who shall be the chief administrative officer of the Authority. The Executive Director shall have a background in public management, solid waste management or a related field. The Executive Director shall plan, organize and direct the administration and operations of the Authority, shall advise the Board on policy matters, shall recommend an administrative structure to the Board, shall hire and discharge administrative staff, shall develop and recommend budgets, shall reply to communications on behalf of the Authority, shall approve 134

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payments of amounts duly authorized by the Board, shall carry out such other duties that may be assigned to the Executive Director by the Board from time to time and shall attend meetings of the Board.

7.8. Treasurer.
(a) The Treasurer shall be selected and approved by the Board, and the individual selected to serve as Treasurer shall also serve as the appointee under California Government Code section 6505.6. If the Treasurer herein designated can no longer serve as Treasurer, then the Authority may appoint a successor Treasurer via Board resolution. The Treasurer shall be the depositary and have custody of all the funds of the Authority from whatever source.
(b) The Treasurer shall do all of the following:
(1) Receive all funds of the Authority and place it in the treasury to the credit of the Authority;
(2) Be responsible, upon his or her official bond, for the safekeeping and disbursement of all Authority funds so held by him or her; (3) Pay, when due, out of funds of the Authority held by him or her, all sums payable on outstanding bonds and coupons of the Authority; (4) Pay any other sums due from the Authority from Authority funds, or any portion thereof, only upon warrants of the Controller; (5) Verify and report in writing on the first day of July, October, January, and April of each year to the Authority and Members the amount of funds he or she holds for the Authority, the amount of receipts since his or her last report, and the amount paid out since his or her last report.
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(c) The governing body of the same Member as the Treasurer shall determine charges to be made against the Authority for the services of the Treasurer and Controller.

7.9. Controller. Pursuant to California Government Code section 6505.5, the Authority designates the Treasurer appointed pursuant to Section 7.8 herein.to be the Controller.

If the Controller herein designated can no longer serve as Controller, then the Authority may appoint a successor Controller via Board resolution. The Controller shall draw warrants to pay demands against the Authority when the demands have been approved by any person authorized to so approve in this Agreement.

7.10. General Counsel. The Board shall employ or contract for the services of a General Counsel who shall be the legal officer of the Authority. The General Counsel shall advise the Authority on legal matters.

7.11. Secretary. The Board shall select and employ or contract for the services of a Secretary who shall prepare, distribute and maintain minutes of meetings of the Board and any committees of the Board. The selection of the Secretary may be delegated to the Executive Director. The Secretary shall also maintain the official records of the Authority and shall file notices as required by Section 18 of this Agreement.

7.12. Access to Property. The Executive Director is hereby designated as the person who has charge of and access to the property of the Authority. The Executive Director shall file with the Authority an official bond in an amount to be fixed by the Board. The costs of those bonds shall be paid by the Authority.

7.13. Officers, Employees and Agents. None of the officers, agents or employees employed or hired by the Authority shall by reason thereof become officers, agents or employees of any Member. The Authority may contract with any Member for any services, subject to 136

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approval by a majority of the Directors who do not represent that Member. None of the persons whose services are supplied by a Member shall by reason thereof become an employee of the Authority.

SECTION 8. Meetings of the Board.

8.1. Regular Meetings. The Board shall hold a minimum of four (4) regular meetings each year. The date upon which, and the hour and place at which, each regular meeting shall be held shall be fixed by resolution of the Board. Board meetings shall be conducted in accordance with the rules of conduct set forth in Rosenberg’s Rules.

8.2. Special Meetings. Special meetings of the Board may be called in accordance with the provisions of section 54956 of the California Government Code.

8.3. Notice of Meetings. All meetings of the Board shall be held subject to the provisions of the California Ralph M. Brown Act (sections 54950 et seq. of the California Government Code) and other applicable laws of the State of California.

8.4. Minutes. The Secretary shall cause minutes of all meetings of the Board and any standing committees of the Board to be kept and shall, promptly after each meeting, cause a copy of the minutes to be forwarded to each Director.

8.5. Quorum. A quorum for the transaction of business of the Board shall require the presence of Directors that represent a majority of the total membership of the Board, except that Directors constituting less than a quorum may adjourn any meeting. For purposes of establishing a quorum and voting at Board meetings, Alternate Directors that are entitled to vote pursuant to Section 7.2 shall be considered as “Directors.”

8.6. Voting. Each Director shall have one vote on all matters presented to the Board for a vote. The Board shall specify by resolution, from time to time, what types of decisions 137

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shall be presented to the Board for a vote and what types of decisions shall be delegated to the Executive Director. Where this Agreement requires an unanimous vote, the action shall require the unanimous vote of the total membership of the Board (7 votes as of the date of this Agreement). Unless otherwise identified in this Agreement, all Board actions require a majority vote of the total membership of the Board (4 votes as of the date of this Agreement).

8.7. Bylaws. The Board from time to time may adopt by resolution bylaws or other procedures for the conduct of its affairs, provided that they are not inconsistent with this Agreement.

8.8. Budget. A general budget for the Authority’s operations shall be adopted by the Board for the ensuing Fiscal Year prior to June 30 of each year. The budget shall include sufficient detail to constitute an operating guideline, the anticipated sources of funds, and the anticipated expenditures to be made for the operations of the Authority including HHW Programs. Approval of the budget by the Board shall constitute authority for the Executive Director to expend funds for the purposes outlined in the approved budget, subject to the availability of funds on hand.

8.9. Reserves.
(a) The Authority establishes the following three (3) funds: 1) an Operating Fund; 2) an Operating Reserve Fund; and 3) a Recycling Fund Reserve. The Operating Reserve Fund limit is initially set at 67% of the annual operating budget. (b) Any amounts which accumulate in Operating Reserve Fund in excess of the limit will be rolled over into the Recycling Reserve Fund account during the annual budget process. The Board shall adopt policies and procedures by resolution to address operation and management of both Reserve Funds, including the Recycling Reserve Fund limit, procedures for 138

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replenishment of reserves and the periodic Board consideration of use of the excess Recycling Fund Reserves.
(c) Excess Recycling Fund Reserves. Any potential excess in the Recycling Fund Reserve shall be dispersed to Members, used for rate reduction or subsidy, or to fund special projects. Reserve fund procedures and policies have been adopted by Resolution 18-02.

The funding amounts of the Operating Reserve Fund and the reserve fund policies may only be modified in the future through adoption of a resolution subject to a unanimous vote of the Board. (d) The Board may from time to time create and fund a Liability Reserve Fund for potential or anticipated future liabilities, such as CalPERS Unfunded Actuarial Accrued Liability (“UAAL”) and Other Post-Employment Benefits (“OPEB”) obligations.

8.10. Committees. The Board may create or designate committees, which typically shall be ad hoc committees. A committee would consist of two or three Directors, and Alternates may not serve on committees. An ad hoc committee would be subject to a one year term from its date of creation and shall typically be limited in scope to the single purpose for which it was created by the Board. In the event of a vacancy on an ad hoc committee, the Chair shall designate a replacement committee member. Permanent standing committees may be created by unanimous vote of the Board.
(a) All committee meetings shall be held subject to the provisions of the California Ralph M. Brown Act (sections 54950 et seq. of the California Government Code), although certain ad hoc committee meetings need not be public meetings in accord with said act. (b) All committees shall serve only in an advisory capacity to the Board and shall not independently take action on any issue unless the Board has specifically delegated such authority to the committee by resolution.
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SECTION 9. Operating Fund Revenues and Other Sources of Funds.

9.1. The Authority may seek to obtain funding for its current scope of activities as well as the scope of activities it is authorized to undertake by law by pursuing various sources of funds including, but not limited to, imposition of fees under the Act to the extent practically available, sale of energy from organic waste, sale of recycled commodities and/or a waste importation or exportation mitigation fee(s) and such other methods as set forth in Section 5.3.

9.2. The Authority may establish a joint operating fund which may receive funds from the Members or other sources. The fund shall be used to pay all administrative, operating and other non-capital expenses incurred by the Authority. In the event that the Board requires contributions from the Members any such payments shall be made in such manner and at such times as approved by a unanimous vote of the Board.

9.3. All moneys in the operating fund shall be paid out for the purposes for which the fund was created upon authorization of the Board, or within the expenditure authority of the Executive Director provided by the Board by time to time.

SECTION 10. Records and Accounts. This Section is intended to ensure strict accountability of all funds of the Authority and to provide accurate reporting of receipts and disbursements of such funds. The Authority shall maintain accurate and correct books of account showing in detail the costs and expenses of any acquisition and construction and the maintenance, operation, regulation and administration of a Facility and all financial transactions of the Members relating to any Facility including any HHW Facility. The books of account shall correctly show any receipts and any costs, expenses or charges to be paid by all or any of the Members. The books of account shall be open to inspection at all times by a representative or agent of any of the 140

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Members. The Authority shall adopt a records management program to provide for the maintenance and disposal of records consistent with the requirements of State Law.

SECTION 11. Implementation of the Act.

11.1. Intent. It is the intent of all Members to form a regional agency , as defined by Public Resources Code section 40181, and for the Authority to undertake the responsibilities of a regional agency pursuant to the powers of the Authority as set forth, supra, in Sections 5.1 and

5.2. 11.2. Submittal of Elements by Members.
(a) Any Member choosing to exercise its authority to undertake an SRRE, HHWE or NDFE individually, or to respond individually to a notice of deficiency, may do so by providing a resolution of the governing body of the Member to the Authority and each other Member within ten (10) days of adoption of said resolution. (b) Each Member so electing to exercise the prerogatives provided in Section

11.2(a) or receiving a written notice from the Authority, shall be solely responsible for compliance with the requirements of the Act upon adoption of the Member resolution required by Section 11.2(a), or receipt of the notice from the Authority.

11.3. Compliance Monitoring.
(a) The Authority may establish a fair and equitable basis for determination of the amount of waste disposed of from within the Members’ jurisdiction and this method shall be used to determine the maximum amount of disposal allowable under the Act for the area included in the boundaries of the Authority.
(b) The Authority shall be entitled to cause the Solid Waste of the Members to be monitored in order to determine compliance with the Act. 141

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(c) The Authority shall be responsible for compiling and submitting disposal information from haulers and operators required to be submitted by CalRecycle pursuant to California Code of Regulations, Title 14, Division 7, Chapter 9, Article 9 or successor regulations and the Members agree to require their respective haulers to submit such information to the Authority.
(d) The Authority shall monitor the implementation of the Regional Plan by the Authority and the Members and shall periodically report to the Members the status of compliance with the requirements of the Act and status of implementation of the Regional Plan. (e) The Authority shall report to the Members the substantial failure of the Authority, a Member or other party to implement applicable provisions of the Regional Plan. (f) The Authority will implement the Act’s programs and demonstrate compliance with the monitoring and reporting requirements related to Assembly Bill 341 (2011), Assembly Bill 1826 (2014), and any other future State mandates related to solid waste handling within the Member boundaries.

11.4. Contingency Plans. Consistent with section 40975(b)(3) of the Public Resources Code, the Authority hereby establishes a Contingency Plan which provides for compliance with the Act by each of the Members in the event the Authority, as the regional agency, is dissolved, or the Authority continues its role as a regional agency. The Contingency Plan is as set forth in Sections 15 and 16 of this Agreement, dealing with Withdrawal and Termination, respectively.

11.5. Regional Plan.
(a) The Regional Plan and amendments thereto shall be developed in consultation with the Members and approved by the Authority Board of Directors and submitted or resubmitted to CalRecycle as may be needed.
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(b) The Regional Plan shall identify source reduction, recycling, composting, education and public information, household hazardous waste and other programs required by the Act or CalRecycle regulations and assign responsibility for implementation of said programs among the Authority and the Members.
(c) The Regional Plan, and subsequent amendments or revisions thereto, following approval by CalRecycle, shall be included in this Agreement by this reference. (d) Notwithstanding Section 16 of this Agreement, the Regional Plan may from time to time be amended by a majority vote of the Authority Board of Directors and all such amendments shall become a part of the Regional Plan upon approval by CalRecycle. (e) The Members shall make a good faith effort to implement programs and actions specified in the Regional Plan approved by CalRecycle for implementation by that Member.
(f) The Members agree to provide the Authority information specific to its jurisdiction that is not readily available elsewhere as required by the Authority to prepare and implement the Regional Plan.
(g) Each Member agrees to coordinate its education and public information activities with respect to Solid Waste and household hazardous waste with the activities of the Authority and to conduct such activities in a manner consistent with the education and public information program contained in the Regional Plan.

11.6. Grants and Financial Assistance. Each Member agrees to cooperate with the Authority as necessary to enable the Authority to apply for and receive grant funds and other financial assistance that may be available to a Member for development of the Regional Plan or 143

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for implementation of programs and actions assigned to the Authority in the Regional Plan in order to minimize costs which must be borne by ratepayers.

SECTION 12. Authority Established Rates.

12.1. The Authority shall be solely responsible for the approval of rates for services at an Approved Facility designated pursuant to this Agreement and each Member hereby delegates, assigns and/or otherwise transfers to the Authority any powers that each Member that has its Designated Waste processed at an Approved Facility may have with respect to the regulation of, approval or establishing rates or charges for that designated waste.

12.2. The Authority shall establish or approve rates to be charged at an Approved Facility, in amounts sufficient to provide the revenues necessary to meet the contractual obligations for use of Approved Facilities.

12.3. The Authority may from time to time elect to include as an additional amount in the rates established or otherwise approved for an Approved Facility, or a portion of the amounts so determined from, as necessary to provide for the planning and implementation activities of the Authority, to pay other costs and obligations of the Authority, in which case the amounts so included will be paid to the Authority by the operator of an Approved Facility.

12.4. The Members recognize that (i) Approved Rates will likely be established as a unit charge per unit weight of Solid Waste and Materials; and (ii) that each Member that uses that Approved Facility may be required to pass such rates through for collection from ratepayers as a part of the collection rate (e.g. a unit charge per can per month). Accordingly, the Members hereby agree that the Authority shall establish a fair and equitable basis for conversion of Approved Rates to a collection rate and that each Member shall include in the collection rates the amount approved by the Authority for collection from ratepayers. That portion of the 144

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Approved Rates that is paid to the Authority is to be used to fund Authority activities that benefit all Members. A Member, in an alternative manner, may elect to fund or provide its share of the costs and obligations of the Authority set forth in Section 12.5, if its Directed Waste does not go to the Approved Facility and/or an alternative funding method is approved by the Board. El Cerrito, which has executed a separate Post Collection Agreement from the one defined in Section 1.26, shall contribute its portion of the Authority budget and HHWP costs based on its proportional share of the Members’ “Inbound Solid Waste,” “Inbound Organics and Food Scraps,” “Inbound Mixed C&D/Concrete,” “Inbound Residential Recycling,” “Commercial Recycling,” “Industrial Recycling,” and “El Cerrito Commercial Dry Waste Processing” tonnage reported by the Contractor for the twelve-month period (historically August 1 to July 31) used by the Authority for the purposes of establishing the Post-Collection Rate pursuant to Section 5.4 of the PCA.

12.5. The Authority shall evaluate the accuracy of the Authority’s prior conversion of Approved Rates to the unit charge collection rate that is included in the collection rate for each Member’s jurisdiction. The Authority may use a balancing account concept from rate setting period to rate setting period to account for overages and underages. A unanimous vote shall be required for any Board action to modify the current rate setting methodology described in Exhibit B.

12.6. The Authority shall notify each Member and the other party to the Member’s Franchise Agreement of the amount of said Approved Rates and the portion of collection rates corresponding to Approved Rates. The Authority shall also notify any Member agency that is not subject to the Approved Rates the portion of the required Authority revenues which must be funded by that Member.
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SECTION 13. Apportionment of Penalties.

13.1. Penalties Arising from Authority Failure.
(a) Any penalties assessed against the Authority by CalRecycle, to a maximum of Fifty Thousand Dollars ($50,000) per day, which are the result of the Authority’s failure to either (i) submit an adequate Regional Plan or required element thereof; or (ii) make a good faith effort to implement the programs or actions specified in the Regional Plan for implementation by the Authority, shall be paid by the Authority. (b) Any penalties assessed against a Member by CalRecycle, which are the result of an Authority’s failure to either (i) submit an adequate Regional Plan or required element thereof; or (ii) implement the programs or actions specified in the Regional Plan for implementation by the Authority, shall be paid by the Authority. (c) Any penalties paid by the Authority pursuant to Section 13.1(a) or Section

13.1(b) of this Agreement shall be paid out of Authority funds including potentially its Operating or Recycling Reserve Funds and, to the extent necessary, collected in the rates or charges assessed against each Member based upon their proportionate shares of the Members’ aggregate solid waste tonnage (calculated using the Members’ “Inbound Solid Waste,” “Dry Waste,” and “Construction and Demolition” tonnage as shown in the last three Annual Reports submitted by the Contractor pursuant to the PCAs.)
(d) The Members shall only be liable for payment of any penalties assessed against the Authority by CalRecycle which are not paid by the Authority and which are not paid by an individual Member pursuant to Section 13.2 below..

13.2. Penalties Arising from a Member’s Failure.
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(a) Any penalties assessed against the Authority by CalRecycle, which are the result of a Member’s failure to implement programs or actions specified in the Regional Plan for implementation by the Member shall be paid by the Authority; and (1) The Authority may recover any amounts, including penalties assessed by CalRecycle and the Authority’s costs incurred as a result of CalRecycle’s actions leading to and including the assessment and appeal of said penalties, by imposing a surcharge on the Directed Waste and Materials and all other waste delivered to an Approved Facility from within the jurisdiction of the failing Members who have not fully reimbursed the Authority. (2) In lieu of collection of the penalty by the Authority through the surcharge, described in Section 13.2(a)(1) above, the Member may reimburse the Authority within thirty (30) days of Authority’s payment of the penalties, the amount of penalties paid plus the Authority’s costs incurred and associated with CalRecycle actions leading to and including the assessment and appeal of said penalties.
(b) Any penalties which are assessed directly against a Member as a result of the Member’s failure to either (i) implement the programs or actions specifically identified in the Regional Plan for implementation by the Member; or (ii) to exercise its prerogatives under Section 11.2 of this Agreement; or (iii) to perform its obligations under Section 11.5 of this Agreement, shall be paid by the Member and neither the Authority nor any other Member shall be obligated to pay said penalties or any costs associated with the assessment or appeal of said penalties.
(c) In the event that failure of one or more Members to perform their obligations under this Agreement or to implement programs or actions specified in the Regional Plan for implementation by the Member causes the Authority or other Members to be unable to 147

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implement the Regional Plan, the failing Member shall pay any penalties assessed against the Authority or other Member(s) by CalRecycle as a result of the failure. (d) Upon notification of any such violation or claim, the Member or Members shall take such prompt, corrective action as is necessary to meet the requirements.

13.3. Nothing in this Section shall preclude one or more Members or the Authority from imposing or establishing additional incentives to meet waste diversion requirements.

SECTION 14. Disposition of Assets at Dissolution. Subject to the then applicable requirements of the Law (currently Sections 6511 et seq. of the California Government Code), upon dissolution of the Authority, the assets of the Authority remaining after payment of, and adequate provision for, all debts, liabilities and obligations of the Authority shall be divided in accordance with a resolution adopted by a unanimous vote of the Board at the time of the dissolution.

SECTION 15. Withdrawal.

15.1. Requirements for Withdrawal. A Member may withdraw from the Authority subject to the following:
(a) Notice of Withdrawal. A Member seeking to withdraw from the Authority shall notify the Authority and each of the Members, by personal delivery in the manner required by Section 18, by presenting (“Notice of Withdrawal”) a resolution adopted by its governing body setting forth its intent to withdraw from the Authority to the Board. The resolution shall set forth the effective date of the withdrawal (“Withdrawal Date”), which shall be no sooner than one hundred eighty (180) days from the Notice of Withdrawal. The Board may by unanimous vote authorize a Withdrawal Date that is sooner than 180 days from the Notice of Withdrawal.
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(b) Defined Terms. For the purposes of this Section 15, the terms defined in this subsection have the following meanings:
(1) “Allocated Funds” means the funds allocated to meet all of the Authority’s existing debts, financial obligations, and liabilities incurred, earned, or expected to be earned by the Withdrawal Date that are payable in the fiscal year in which a notice of withdrawal is provided.
(2) “Long-term Liabilities” means the Authority’s existing debts, financial obligations, and liabilities incurred, earned, or expected to be earned by the Withdrawal Date that become due after the fiscal year in which the Notice of Withdrawal is provided.

Long-term Liabilities include, but are not limited to, CalPERS and OPEB UAAL and office leases, if any. The calculation of the CalPERS and OPEB UAAL shall reflect the reserve funds set aside for meeting those obligations.
(3) “Pro Rata Share” means a Member’s proportionate share of the Members’ aggregate solid waste tonnage (calculated using the Members’ “Inbound Solid Waste,” “Dry Waste,” and “Construction and Demolition” tonnage as shown in last three Annual Reports submitted by the Contractor pursuant to the PCA) .
(4) “Reserve Policy” means Authority Resolution No. 18-02, Resolution of the Board of Directors of the West Contra Costa Integrated Waste Management Authority Requiring the Establishment of Financial Reserves, adopted on June 14, 2018. (5) “Unallocated Funds” means the portion of Authority reserve funds that have not been either (a) set aside for the purpose of meeting specific Authority Long-term Liabilities or (b) allocated in the Authority budget.
(c) Satisfaction of Pro Rata Share of Long-term Liabilities. 149

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(1) Within ninety (90) days following receipt of a Notice of Withdrawal pursuant to Section 15.1(a), the Authority shall notify each of the Members, pursuant to Section 18, of its determination of the Allocated Funds, Unallocated Funds, Long- term Liabilities, and the Pro Rata Share. In determining the Long-term Liabilities, the Board of Directors shall, based on the recommendation of an actuary, determine the amount of any Authority UAAL as of the Withdrawal Date.
(2) On or before the Withdrawal Date, and as a condition precedent to the withdrawal’s effectiveness, the withdrawing Member must pay to the Authority its Pro Rata Share of Long-term Liabilities. If the Authority determines, under Section 15.2(b), that the withdrawing Member is entitled to a disbursement of Unallocated Funds, the withdrawing Member may direct the Authority to deduct the payment required by this Subsection from its disbursement of Unallocated Funds.
(d) Termination of Withdrawal Process. A withdrawing Member may terminate the withdrawal process at any time before the withdrawal is effective by notifying the Authority and each of the Members, by personal delivery in the manner required by Section 18.

The withdrawing Member shall be liable for all third-party costs incurred by the Authority for processing the withdrawal, which shall be payable within 60 days of the notice of termination of the withdrawal process.

15.2. Disbursement of Unallocated Funds Upon Withdrawal. (a) On or before the Withdrawal Date, the Authority shall disburse to the withdrawing Member its Pro Rata Share of the portion of the Unallocated Funds that are in excess of the Operating Fund Target Reserve and the Recycling Fund Target Reserve, as both are described in the Reserve Policy.
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(b) Within 45 days following its adoption of a budget that reflects the departure of the withdrawing Member, the Authority shall disburse to the withdrawing Member its Pro Rata Share of the portion of the Operating Fund Reserve and the Recycling Fund Reserve that exceed, respectively, the recalculated Operating Fund Target Reserve and the recalculated Recycling Fund Target Reserve, pursuant to the Reserve Policy.

15.3. Obligations Following Withdrawal Date. A Member which has withdrawn from the Authority shall not be liable for the payment of Authority expenses accruing beyond the Withdrawal Date, and shall have no right to reimbursement of any assets or monies of the Authority once disbursement of any Unallocated Funds pursuant to Section 15.2(b), if any, has been effectuated.

15.4. Effect of Withdrawal on Agreement. The withdrawal of a Member shall have no effect on the continuance of this Agreement among the remaining Members and the Agreement shall remain in full force and effect with respect to the remaining Members.

15.5. Member and Authority’s Obligations Under the Act. (a) The withdrawing Member shall, not later than one hundred twenty (120) days prior to the Withdrawal Date, prepare and submit an SRRE, HHWE, and NDFE to CalRecycle for the Member’s jurisdiction to CalRecycle for approval. The withdrawing Member shall be solely responsible for preparation of its SRRE, HHWE and NDFE; (b) The Authority shall, not later than one hundred twenty (120) days prior to the Withdrawal Date, prepare and submit a revised Regional Plan which reflects the withdrawal of the Member to CalRecycle for approval.
(c) The withdrawing Member shall pay (i) all costs incurred by Authority in preparing a revised Regional Plan; and (ii) all amounts owed to the Authority for penalties 151

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assessed against the Authority or the withdrawing Member including the Authority’s costs incurred and associated with CalRecycle actions leading to and including the assessment of said penalties.
(d) The withdrawing Member shall be responsible for compliance with the Act the earlier of: (i) the date of the withdrawing Member’s submittal of the documents to CalRecycle; or (ii) the date of the Authority’s submittal of the revised Regional Plan to CalRecycle; or (iii) the Withdrawal Date.

SECTION 16. Amendments Including Termination.

16.1. This Agreement may only be amended by a written instrument approved by a majority of the Directors which then shall be approved by all of the Member’s governing bodies.

16.2. The Agreement may only be terminated or other action leading to dissolution of the Authority may only be effectuated through adoption of a resolution by a minimum 2/3 vote of all Directors which then shall be approved by a minimum of 2/3 of the Members’ governing bodies. Given the current membership and Board seats , to reach the 2/3 threshold, five Directors and four Members would have to vote to adopt the resolution.

16.3. For termination of this Agreement during any period where the Authority is operating as a Regional Agency, the written instrument required by Section 16.2 of this Agreement shall include, but not be limited to, all of the following requirements:
(a) A date certain that this Agreement will be terminated (hereinafter “Termination Date”);
(b) Each Member shall, not later than one hundred twenty (120) days prior to the Termination Date, prepare and submit an SRRE, HHWE, and NDFE for the Member’s 152

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jurisdiction to CalRecycle for approval and that each Member shall be solely responsible for preparation of its SRRE, HHWE and NDFE;
(c) Each Member, prior to the Termination Date, shall promptly pay, within a reasonable time, all amounts owing to the Authority or CalRecycle for penalties assessed by CalRecycle, including the Authority’s costs incurred and associated with CalRecycle actions leading to and including the assessment of said penalties; (d) Each Member shall be solely responsible for compliance with the Act the earlier of: (i) the date of submittal of the documents required by Section 15.5(d) to CalRecycle; or (ii) the specified Termination Date; and

16.4. The obligations of the Authority terminate on the Termination Date, and each member shall pay all amounts owed to the Authority prior to that date; however, in the event of default by a Member with regard to payment of amounts due, the obligation to pay all sums due to the Authority shall survive and remain in full force after the Termination Date.

SECTION 17. Filing with the Secretary of State. The Secretary shall file all required notices with the Secretary of State in accordance with California Government Code sections 6503.5 and 53051.

SECTION 18. Notices.

18.1. All notices which any Member or the Authority may wish to give in connection with this Agreement shall be in writing and shall be served by personal delivery during usual business hours at the principal office of the Member or Authority, to an officer or person apparently in charge of that office, or by depositing the same in the United States mail, postage prepaid, and addressed to the Member or Authority at its principal office, or to such other 153

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address as the Authority or Member may designate from time to time by written notice given in the manner specified in this Section.

18.2. Service of notice pursuant to this Section shall be deemed complete on the day of service by personal delivery (but twenty-four (24) hours after such delivery in the case of notices of special meetings of the Board) or two (2) days after mailing if deposited in the United States mail.

18.3. Members agree to provide the Authority with the official notification requirements of the Franchise Agreement for use by the Authority and agree to provide Authority with any changes in said notification requirements.

SECTION 19. Successors and Assigns.

19.1. This Agreement shall be binding upon and shall inure to the benefit of the permitted successors and assigns of the Members.

19.2. However, no Member shall assign any of its rights under this Agreement except to a duly formed public entity organized and existing under the Laws of the State of California approved by a majority of the Directors who do not represent the assigning Member.

19.3. No assignment shall be effective unless and until the Authority, the Members and the proposed assignee comply with all then applicable requirements of Law relating to changes in the composition of entities such as the Authority.

SECTION 20. El Cerrito Recycling Services. It is acknowledged by the Members that the El Cerrito Recycling and Environmental Resource Center was in existence and operating before the formation of the Authority, and this Agreement is not intended to alter the operations of the Center. Accordingly, the El Cerrito Recycling and Environmental Resource Center shall not be considered a Facility for the purposes of this Agreement. The City of El Cerrito operates both 154

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the Recycling Center and a curbside collection program for Recyclable Material. The City of El Cerrito also has entered into agreements relating to the collection, processing and disposal of its Solid Waste, green waste and Recyclable Materials and the flow of such wastes are not controlled by the Authority. In particular, t he Authority may not direct Recyclable Materials collected as part of El Cerrito Recycling Services except as separately agreed to by the Authority and El Cerrito. In addition, the costs of operating the El Cerrito Recycling Services shall not be included in the calculation of Approved Rates for Directed Waste and Materials collected within El Cerrito.

SECTION 21. Third Party Beneficiaries. The Authority shall be a third -party beneficiary of this Agreement entitled to exercise all rights of and benefits accruing to the Authority that are specified in this Agreement.

SECTION 22. Severability. Should any part, term or provision of this Agreement be decided by a final judgment of a court or arbitrator to be illegal or in conflict with any law of the State of California or otherwise be unenforceable or ineffectual, the validity of its remaining parts, terms and provisions shall not be affected.

SECTION 23. Section Headings. All section headings contained in this Agreement are for convenience and reference. They are not intended to define or limit the scope of any provision of this Agreement.

SECTION 24. Dispute Resolution.

24.1. Informal Resolution. Should a dispute arise in connection with the interpretation or performance of this Agreement, the provisions of this Section 24 shall apply. A Member shall give the Authority and Members written notice of such dispute. The parties shall attempt to resolve their disputes informally to the maximum extent possible. In the event such dispute 155

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is not resolved within thirty (30) days of such notice, either party may propose the appointment of a mediator for advice and a non-binding mediation, and the other party or parties shall attend such mediation. If the dispute is not resolved through mediation, within sixty (60) days thereafter, then any party may refer it to arbitration.

24.2. Arbitration. All disputes that arise in connection with the interpretation or performance of this Agreement that are not resolved pursuant to the informal procedures of Section 24.1, shall be resolved on an equitable basis by a single arbitrator under the commercial arbitration rules of the American Arbitration Association.

24.3. Binding Arbitration. The arbitrator’s decision shall be final and binding on the Authority, all Members and all former Members involved or affected by the dispute.

24.4. Enforcement. The Authority, any Member and any former Member that is party to the dispute may enforce any award, order or judgment of the arbitrator in any court of competent jurisdiction.
156
157
158
159
160
161

AUTHORITY BOARD-APPROVED AMENDED AND RESTATED JEPA

Exhibit A
Boundaries

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Exhibit B
Rate Setting Methodology
163
Exhibit B to May-June JEPA Draft

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Exhibit B
Summary Formulas and Full Description of RecycleMore Post-Collection Rate Calculation Methodology

Exhibit B describes and shows formulas used in the current methodology for calculating RecycleMore Post -Collection Rates. All 2018 Sample Calculation figures stated in Exhibit B are directly referencing the Approved 2018 Richmond Sanitary Service Area Post -Collection Rate Calculation, shown in the table below.

Step 1: Calculate the Richmond Sanitary Service (RSS) Annual Post- Collection Revenue Requirement
DESCRIPTION:

The RSS Annual Post-Collection Revenue Requirement is calculated as:

$92.02, which is the RecycleMore Board approved Blended Per-Ton Rate calculated as described in Section 5 of the Post-Collection Agreement (PCA) between RecycleMore and Republic Services (Republic) times 157,979.54, which is the Total Number of All Tons Collected by RSS1 and reported by Republic for the twelve-month period from August 1 of the prior year through

1 Pursuant to the franchise agreements between RSS and Hercules, Pinole, Richmond and San Pablo and Contra Costa County.

92.02$ 157, 980 total tons = 14,537,960.88 Annual Revenue Commercial Industrial
20-
Gallon
35-
Gallon
60/65-
Gallon
95/100-
Gallon Per Cubic Yard Per Ton TO TAL
2018 Rates 5.08$ 8.91$ 16.57$ 24.86$ 9.66$ 140.17$ 140.17$ 2018 Tonnage Basis 25,406 33,099 103,719
2017 % of Tons 24% 32%
2018 Unit Basis*** 368,500 33,099
2018 Revenue Requirement 3,561,051.74$ 4,639,330.83$ 14,537,960.88$ 2017 Rate 4.86$ 8.52$ 15.85$ 23.78$ 10.35$ 137.90$ 137.90$ 2018 Rate 5.08$ 8.91$ 16.57$ 24.86$ 9.66$ 140.17$ 140.17$ $ Increase/(Decrease) 0.22$ 0.39$ 0.72$ 1.08$ (0.69)$ 2.27$ 2.27$ % Increase/(Decrease) 4.5% 4.6% 4.5% 4.5% -6.7% 1.6% 1.6% Approved Richmond Sanitary Service Area Post-Collection Rate Calculation Blended per ton
Residential
45,214
44%
59,280
6,337,578.32$
164
Exhibit B to May-June JEPA Draft

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July 31 of the present year, and is inclusive of Solid Waste (Trash), Dry Waste, Construction and Demolition Debris (C&D), Recycling and Organics.

FORMULAS:

Blended Per-Ton Rate (rounded to the nearest cent) TIMES Total Number of All Tons Collected 8/1 to 7/31 EQUALS
RSS Annual Post-Collection Revenue Requirement
2018 SAMPLE CALCULATION:
$92.02 X 157,979.54 tons = $14,537,960.882
Step 2: Calculate the Revenue Requirement per Sector
DESCRIPTION:

The Revenue Requirement per Sector (Residential, Commercial, Industrial) is calculated as:

The RSS Annual Post-Collection Revenue Requirement as calculated in Step 1, times each Sector’s percentage of the total Solid Waste (Trash), Dry Waste and C&D reported by Republic for the twelve-month period from August 1 of the prior year through July 31 of the present year.

These tonnages are a subset of the total number of all tons used in Step 1 in that recycling and organics tonnages are not included. For example, the total number of all tons used in Step 1 in 2018 was 157,979,54 tons, whereas the total solid waste (trash), dry waste and C&D tonnage was 103,718.67, with the difference between the two being 54,260.87 tons of recycling and organics, which are not counted for the purposes of calculating the Revenue Requirement per Sector.

FORMULAS:

Residential Sector
RSS Annual Post-Collection Revenues Requirement TIMES
Residential Sector Total Tons of Trash, Dry Waste and C&D DIVIDED BY

2 The Blended Per-Ton Rate used in prior years and in the 2018 Post-Collection Rate calculation was not rounded to the nearest cent, and as a result the RSS Annual Post-Collection Revenue Requirement shown above is an insignificant $683.61 higher than the product of $92.02 times 157,979.54. 165
Exhibit B to May-June JEPA Draft

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All Sector Total Tons of Trash, Dry Waste and C&D EQUALS Residential Sector Revenue Requirement
Commercial Sector
RSS Annual Post-Collection Revenues Requirement TIMES
Commercial Sector Total Tons of Trash, Dry Waste and C&D DIVIDED BY All Sector Total Tons of Trash, Dry Waste and C&D EQUALS Commercial Sector Revenue Requirement
Industrial Sector
RSS Annual Post-Collection Revenues Requirement TIMES
Industrial Sector Total Tons of Trash, Dry Waste and C&D DIVIDED BY All Sector Total Tons of Trash, Dry Waste and C&D EQUALS Industrial Sector Revenue Requirement
2018 SAMPLE CALCULATION:

Residential Sector: $14,537,960.88 X 45,214.40 tons / 103,718.67 tons = $6,337,578.32 Commercial Sector: $14,537,960.88 X 25,405.73 tons / 103,718.67 tons = $3,561,051.74 Industrial Sector: $14,537,960.88 X 33,098.54 tons / 103,718.67 tons = $4,639,330.83 Step 3: Calculate the Unit Basis per Sector
DESCRIPTION:

The Unit Basis per Sector is expressed in monthly 35-Gallon Equivalents (Residential), Annual Cubic Yards (Commercial), and Annual Tons (Industrial) and is based on tonnage and detailed cart counts and cubic yard information reported by RSS and Republic, each of which are calculated per the following:

For the Residential Sector, the total number of residential Solid Waste (Trash) collection carts by gallon size (20, 35, 60/65, and 95/101) reported as of September 30 of the current year are multiplied by the 35-Gallon Equivalent factor for each cart size, yielding an equivalent number of 35-gallon carts. The 35- 166
Exhibit B to May-June JEPA Draft

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Hercules City CouncilApril 8, 2025

Hercules City Council
April 8, 2025