Hercules City Council
July 22, 2025

Tuesday, July 22, 2025
5:30 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 - 5:30 P.M.,REGULAR MEETING - 7:00 P.M
In-Person in Council Chambers or Via Zoom:

Zoom ID: 831 2741 2946 Zoom Passcode: 221988
Zoom Phone Number: 1-669-900-6833
1 July 22, 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 - 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
II. PUBLIC COMMUNICATION - CLOSED SESSION ITEMS
III. CONVENE INTO CLOSED SESSION
The Hercules City Council will meet in Closed Session regarding the following:

1. 25-220

CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Pursuant to Government Code Section 54956.9(d)(4) - one case.

2. 25-216 Pursuant to Government Code Section 54957.6 Conference With Labor Negotiators - City Negotiators: Dante Hall, City Manager; Edwin Gato, Director of Finance; relative to the following employee groups:
a. Teamsters Local 315 Employee Organizations
b. Hercules Police Officers Association
c. Hercules Senior Manager Employee Group
d. Confidential Unrepresented Employee Group
e. Mid Management Employee Group
IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

V. REPORT ON ACTION TAKEN IN CLOSED SESSION
VI. PLEDGE OF ALLEGIANCE
VII. MOMENT OF SILENCE
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS
Update on Solid Waste Services - Republic Services
IX. AGENDA ADDITIONS/DELETIONS

2 July 22, 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

1. 25-206
Public Hearing to Consider Whether to Adopt Proposed Sewer Rate Increases Pursuant to Proposition 218
RECOMMENDATION:

It is recommended that the City Council take the following actions:

1. Conduct
a public hearing pursuant to Section 6(a)(2) of Article XIII D of the California Constitution regarding the proposed changes to the sewer rates. During the Public Hearing, consider all protests against the proposed changes to the sewer rates;

2. Close the Public Hearing

3. If written protests against the proposed sewer rates are presented by a majority of the affected parcels of real property, the proposed sewer rates cannot be adopted; or

4. If written protests against the proposed sewer rates are presented by less than a majority of the affected parcels of real property, adopt the following Resolution titled: “A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF HERCULES FINDING THAT NO MAJORITY
PROTEST EXISTS AND ADOPTING SEWER RATES. "
Staff Report - Sewer Rate Hearing
Attach 1 - Resolution
Attach 2 - Hercules 2025 Prop 218 Sewer Rate Notice
Attachments:

3 July 22, 2025City Council Meeting Agenda
XII. CONSENT CALENDAR

1. 25-217 Meeting Minutes for the Regular Meeting of July 8, 2025 Meeting Minutes fro the Regular Meeting of July 8, 2025Attachments:

XIII. DISCUSSION AND/OR ACTION ITEMS

1. 25-207 Declare Results of Protest Balloting Proceedings and Confirm Fiscal Year 2025/26 Assessments for Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1
RECOMMENDATION:

City staff is recommending City Council take the following actions:

1. Adopt
a Resolution Declaring the Results of the Ballot Tabulation Regarding the Proposed Increase to the Maximum Assessment Rate for Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 commencing Fiscal Year 2025/26; and

2. Adopt a Resolution Approving the Final Engineer’s Report, Confirming Diagram and Assessments, and Ordering Levy of Assessments for Fiscal Year 2025/26 for Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 pursuant to the Landscaping and Lighting Act of 1972; and

3. Adopt a Resolution Authorizing the City Manager and Finance Director to Execute Any and All Necessary Documentation to Repay the General Fund for Monies Loaned to Victoria by the Bay Landscaping and Lighting District in an Amount Not to Exceed $700,000 Over 10 Years and will bear no interest.

Staff Report - Victoria by The Bay LLAD
Attach 1 - RESOLUTION DECLARING RESULTS OF THE PROTEST BALLOTING 2002-1 Attach 2 - RESOLUTION CONFIRMING DIAGRAM AND ASSESSMENTS 2002-1v2 Attach 3 - RESOLUTION AUTHORIZING THE EXECUTION OF REPAYMENT DOCUMENTS Attach 4 - L2002-1-2526 Final Engineer's Report
Attachments:

4 July 22, 2025City Council Meeting Agenda

2. 25-208 Adopt a resolution authorizing the City Manager to execute a professional services agreement with SDI Presence, LLC, for the development of an Information Technology Strategic Plan (ITSP) in an amount not to exceed $84,150
RECOMMENDATION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute a professional services agreement with SDI Presence, LLC, for the development of an Information Technology Strategic Plan (ITSP) in an amount not to exceed $84,150.

Staff Report - SDI Contract Award
Attach 1 - Resolution
Attach 2 - SDI Response to City of Hercules IT Strategic Plan RFP 25-001 Attachments:

3. 25-195 Discussion Regarding Potential Revenue-Generating Options RECOMMENDATION:

Staff recommends that the City Council receive the report on potential revenue-generating options and, by minute order, provide guidance to staff on which option or options to pursue.

Staff Report - Revenue Enhancement Options
Attach 1 - Staff Report - RPTT Charter City Discussion
Attach 2 - Presentation
Attachments:

4. 25-210 Update on the Hercules Police Department
RECOMMENDATION:

Receive an update on the Hercules Police Department
Staff Report - Hercules Police Department Annual Report 2025 Presentation
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.

5 July 22, 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
a. Contra Costa Mayors Conference
b. Hercules/ Pinole - WasteWater Management
c. League of Cities
d. Water Emerg. Transportation Authority
e. WCCIWMA
f. WCCTAC
g. West Co. Mayors & Supervisors Assoc. Meeting
h. WestCat
I. MCE
j. CCTA
k. East Bay Wildfire Coalition of Governments

2. City Council Committees and Subcommittees
a. Econ. Dev. Subcommittee
b. Traffic and Public Safety Committee
c. East Bay Economic Development Alliance
d. Education Subcommittee

3. Commission Liaisons
a. Community & Library Services Commission
b. Finance Commission
c. Planning Commisison
XVI. ADJOURNMENT
A Special Meeting of the City Council will be held on Tuesday, July 29, 2025 at 7:00p.m. The next Regular Meeting of the City Council will be held on Tuesday, September 9, 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: July 17, 2025)

6 July 22, 2025City Council Meeting Agenda

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.

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.

7 July 22, 2025City Council Meeting Agenda

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.

8 July 22, 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.

9 PUBLIC HEARINGS

AGENDA ITEMS

1. 25-206
10 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of July 22, 2025
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Glenn Dombeck, Public Works Director/City Engineer SUBJECT: Public Hearing to Consider Whether to Adopt Proposed Sewer Rate Increases Pursuant to Proposition 218
RECOMMENDED ACTION:

It is recommended that the City Council take the following actions:

1. Conduct a public hearing pursuant to Section 6(a)(2) of Article XIII D of the California Constitution regarding the proposed changes to the sewer rates. During the Public Hearing, consider all protests against the proposed changes to the sewer rates;

2. Close the Public Hearing

3. If written protests against the proposed sewer rates are presented by a majority of the affected parcels of real property, the proposed sewer rates cannot be adopted; or

4. If written protests against the proposed sewer rates are presented by less than a majority of the affected parcels of real property, adopt the following Resolution titled: “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES

FINDING THAT NO MAJORITY PROTEST EXISTS AND ADOPTING SEWER RATES.”

11 BACKGROUND:

On May 27, 202 5, the City Council received Willdan Financial Services’ (Willdan’s) presentation of their May 13, 2025 Comprehensive Sewer Utility Rate Study results and recommendations. City Council directed staff to schedule a Public Hearing with formal notification to all property owners and customers of record, as is required by Proposition 218, for July 22, 2025.

The current utility rates were adopted in April 2009. The City has not increased sewer rates since 2014 despite rising costs for operations, maintenance, and personnel. The financial rate study conducted by Willdan demonstrates that Hercules’ existing sewer rates are not fully recovering costs associated wit h operation, maintenance, and capital projects. The five-year rate adjustment plan, beginning in FY 2026 (commencing July 1, 2025), is necessary to address these cost increases and ensure compliance with financial obligations, such as reserve targets and debt service coverage.

The Council will hold a separate public hearing on July 29, 2025 to consider the collection of sewer service charges on the tax roll.

ANALYSIS:

Sewer rates are collected twice a year through the Contra Costa County property tax roll. The existing rates for sewer service are provided in Table 1.

Table 1 – Existing Annual Sewer Rates

[1] All residential customers only pay a flat fee per dwelling unit, regardless of usage. [2] Apartments are currently charged the existing “Senior Living” flat fee per dwelling unit only, regardless of usage.

Under the proposed rates, starting in FYE 2026, apartments will pay the “Multi-Family Residence” flat fee per dwelling unit only, regardless of usage.

Sewer Rate Study

The Willdan Report analyzed revenue sources and expenditures of the sewer utility system, develop ed a five -year financial analysis, and provide s recommendations for proposed rate/and or rate structure adjustments to meet the financial and administrative 12 goals and objectives of the City. It is projected that, under the existing rates, adequate revenues will not be realized for the City to meet its collective projected operating financial obligations and cover costs of capital projects. Therefore, adjustments to current rates are required to generate additional revenue to fund projected costs of operations and capital projects; and maintain adequate cash reserves. The Report shows that under existing rates, if capital projects are funded, the sewer fund will decline from a $12.9 million balance in Fiscal Year 202 5-2026 to $ 160,000 in Fiscal Year 20 29-2030 with inadequate reserve targets and debt servi ce coverage beginning in Fiscal Year 2026 - 2027.

Proposed Sewer Rates

City staff and Willdan developed a financial plan to adequately fund sewer system costs.

The annual sewer rates, identified in Table 2, reflect the cost of providing service to individual customers based on customer class for the five-year period covering fiscal years 2025-2026 through 2029-2030. The fiscal year starts on July 1 and ends on June 30 of the following year for a 12 -month consecutive period. The proposed sewer rates and charges are anticipated to generate sufficient revenues to meet the minimal funds necessary for the City to operate, maintain and improve the sewer system for the next five years.

Table 2 – Proposed Annual Sewer Rates

[1] All residential customers only pay a flat fee per dwelling unit, regardless of usage. [2] Apartments are currently charged the existing “Senior Living” flat fee per dwelling unit only, regardless of usage.

Under the proposed rates, starting in FYE 2026, apartments will pay the “Multi-Family Residence” flat fee per dwelling unit only, regardless of usage.

Property-based fees and charges are required to comply with Proposition 218, which is a constitutional amendment adopted in 1996. As such, fees/charges that are imposed as an incident to property ownership or tenancy, such as sewer rates, must be based on and not exceed the reasonable proportional cost of providing the service, and revenues received from these charges cannot be used for any other purpose than that for which they are imposed.

Table 3 shows projected revenues and expenditures and fund balances i f the proposed sewer fees are adopted. The projected revenues generated from the proposed annual sewer rates will include cash reserves on hand to help fund ongoing operations in the event of periodic fluctuations in cash flow, and to address unexpected ne eds that may require cash funding. Table 3 also includes projected revenues for 2026, calculated based 13 on existing rates, as a basis for comparison with the revenues generated, calculated based on the proposed rates.

Table 3 – Projected Operating Results (in $1,000’s)
Description
With
Existing
Rates
Projected if Proposed Rates are Approved

FY FY FY FY FY FY
2025-26 2025-26 2026-27 2027-28 2028-29 2029-30
Revenues $6,235 $7,810 $8,269 $8,738 $9,121 $9,443 Operations & Maintenance Expenses ($5,209) ($5,209) ($5,481) ($5,771) ($6,081) ($6,350) Other Expenditures & Transfers ($2,066) ($2,066) ($2,067) ($2,063) ($2,063) ($2,063) Capital Projects ($1,985) ($1,985) ($2,750) ($1,675) ($650) $0 Beginning Fund(s) Balance $15,923 $15,923 $14,473 $12,443 $11,671 $12,000 Ending Fund(s) Balance $12,898 $14,473 $12,444 $11,672 $11,998 $13,030

Intention to Levy
On May 27, 2025, the City Council accepted a report from Willdan on the proposed sewer rates and directed staff to mail notice of a public hearing to record owners of parcels at least 45 days before holding a hearing.

Prop 218 Public Hearing Notice
Article XIII D, section 6 of the California Constitution requires the local government to mail notice at least 45 days before holding a hearing at which the proposed fee or charge will be considered. On June 5, 2025, a Notice of the Public Hearing, set for July 22, 2025, at 7:00 pm at the Hercules City Council Chamber, regarding the proposed changes to annual sewer rates, was mailed out to record owners of parcels subject to the proposed sewer rates. This noticing provided an additional three (3) days than the legally required time frame to file a protest.

The proposed fees will be subject to a majority protest proceeding at the public hearing and will be enacted only if there is not a written majority protest from identified parcels subject to the fee. The Notice mailed to property owners described the protest procedure.

Public Hearing
At the Public Hearing, staff recommends the City Council consider all protests against the proposed changes to the annual sewer rates. If written protests against the sewer rates are presented by owners of a majority of the affected parcels, the City Council may not impose the proposed sewer rates.

Rate Adjustment Effective Dates
14 If adopted, the proposed sewer rates will become effective July 1, 2025, through June 30, 2030.

CEQA
As set forth in 14 California Code of Regulation Section 15273, the California Environmental Quality Act does not apply to the establishment, modification, structuring, restructuring, or approval of rates and other charges by public agencies which are for the purpose of meeting operating expenses, purchasing or leasing supplies, equipment, or materials, meeting financial reserve needs and requirements, and/or obtaining funds for capital projects, necessary to maintain service within existing service areas.

Conflict of Interest Laws
Pursuant to “conflicts of interest” laws, if a governmental decision produces a foreseeable material financial effect on parcels of real property owned by councilmembers, then there are certain factors that must be considered by those councilmembers located inside a 500-foot rad ius from a project’s boundaries. There is, however, an exception to the disqualification requirement: if the “decision solely concerns repairs, replacement or maintenance of existing streets, water, sewer, storm drainage or similar facilities” then the governmental decision is not material to cause a conflict of interest. 2 CCR § 18702.2.

Therefore, no council members are disqualified regarding this project and do not need to recuse themselves.

Record Owner Comment Received to Date
Comments received to d ate express similar concern about the financial challenge presented by the proposed rate increase. Several comments assert a lack of transparency regarding the basis for the rate increase, a lack of communication on behalf of the City and a lack of detailed information on the costs involved.

In response to comments regarding communication, the City provided mailed notice, at least 45 days prior to the hearing, as required by Proposition 218. The City held a meeting on May 27, 2025 to review the rate study and a held a hearing on adoption of the proposed rate structure on July 22, 2025. Additionally, for the entire duration of the notice period, the City has hosted a Sewer System Rates web page, accessible by entering ‘rates’ into the search engine on the City’s home page, which provides a comprehensive FAQ covering the sewer system, the sewer capital improvement program, and the proposed sewer rates, as well as links to the sewer rate notice, the 2025 Comprehensive Sewer Utility Rate Study (“Rate Study”) and the 5/27/25 meeting video and agenda.

The Rate Study documents the basis for the proposed cost-based rate structure as necessary to achieve f ull recovery of all costs related to utility operations , including operating and maintenance costs, debt, and other expenditure requirements . Projected Operating costs are summarized in Table 18 of the Rate Study and a detailed breakdown of operation and capital costs for FY2026 are provided in Appendix B. Public Works expenditures and capital projects are detailed in the approved FY25-26 budget, which is also accessible on the City’s website . Concerns that the proposed rates are unjustified 15 do not account for the fact that t he City has not raised rates since 2014 or that the CIP for both the City and the Pinole wastewater treatment plant was not available prior to FY24.

Concerns about affordability are addressed in the current and proposed rate structure through a waiver program where eligible multi-family accounts that demonstrate low water usage over an annual basis are charged at the Senior Living rate.

FISCAL IMPACT:

Current projections indicate that, unless changes are made to the existing rates, the City may face challenges in generating adequate revenue to fulfill its overall operating financial obligations, address capital project costs, and manage anticipated transfers.

To address this concern, the proposed sewer rates and charges are designed to generate necessary revenues to meet the system’s requirements over the next five- years. If the City Council approves these recommendations, the new rates would be implemented at the start of the billing cycle following July 1, 2025.

ATTACHMENTS:

1. Resolution

2. Notice mailed to voters (45 Day Notice)

16 RESOLUTION NO. 25-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES FINDING

THAT NO MAJORITY PROTEST EXISTS AND ADOPTING SEWER RATES

WHEREAS, the City of Hercules (“City”) has evaluated the cost of different alternatives for wastewater collection, treatment and disposal services to properties located within the City; and
WHEREAS, a well maintained and operated sewer system is essential to protect human health and the environment; and

WHEREAS, the City retained Willdan Financial Services (“Willdan”) to perform a sewer rate study , attached as an exhibit to this resolution, to analyze the revenue sources and expenditures of the sewer utility system, develop a five -year financial analysis, and provide recommendations for proposed rate/and or rate structure adjustments to meet the financial and administrative goals and objectives of the City; and

WHEREAS, the City completed a Collection System Master Plan Update in April 2020 to identify capital improvements that the City must implement in order to remain in compliance with the terms and conditions of California Regional Water Quality Control Board (“RWQCB”) Order No. R2-2023-0008 and NPDES No. CA0037796 (the “NPDES Permit”) and related state and federal regulations; and

WHEREAS, Hercules Municipal Code Title 5, Chapter 4 allows the City’s sewer service charges to be modified by resolution or ordinance; and

WHEREAS, property related fees and charges, including rates for the sewer service are subject to the requirement of Article XIII D, Section 6 of the California Constitution (also known as Proposition 218); and

WHEREAS, pursuant to Proposition 218, prior to extending, imposing or increasing sewer rates, property owners shall be provided at least 45 days’ notice of a public hearing to consider such modifications to the sewer rates together with an explanation of: (1) the amount of the propose rates, (2) the basis on which the rates are calculated, (3) the reason for the rate modifications, and (4) the date, time and place of a public hearing to consider the rate modifications. The proposed rate modifications may not be imposed if, prior to the close of the public hearing, written protests are submitted by a majority of the parcels subject to the modified rates (“majority protest”); and

WHEREAS, on May 27, 2025, at its regularly scheduled City Council Meeting, the City Council approved a motion stating the City Council’s intention to adopt sewer rates , setting the Public Hearing date for July 22nd and directing staff to give notice of a Public Hearing pursuant to Proposition 218; and

17 WHEREAS, notice of the public hearing, which is attached to the staff report accompanying this Resolution, to consider proposed adjustments to the sewer rates was mailed to property owners of record and customers of record in accordance with Proposition 218; and

WHEREAS, the Sewer Rate Study prepared by Willdan for the City and presented at this meeting projected that under the existing rates the sewer system would not meet its collective projected operating (O&M) financial obligations, cover costs of capital projects, and be able to make anticipated transfers , and the written report has been prepared and filed with the City Clerk; and

WHEREAS, pursuant to Proposition 218, the Sewer Rate Study, shows that (a) the revenues from the fees will not exceed the funds to provide the sewer service; (b) the revenues will only be used for the purposes described and for no other purpose; (c) the amount of the fee imposed on a parcel or a person as an incident of property ownership does not exceed the proportional cost of service attributable to such parcel; (d) no fee is charged unless the service is used by or immediately available to the property owner; and (e) no fee is charged for a general government service where the service is available to the public at large in substantially the same manner as it is to property owners; and

WHEREAS, the City published notice of the July 22, 2025 public hearing on Ju ly 10, 2025 in the West County Times; and

WHEREAS, the mailed notice of public hearing included a statement that there is a 120 day statute of limitations for challenging the sewer rates should the proposed rates be adopted; and

WHEREAS, at the time, date and place for the Public Hearing, the City Council did hear and consider any and all objections or protests and written protests to the proposed changes to the annual sewer rates; and

WHEREAS, the City hereby finds and determines that the proposed rate adjustment is being enacted for the purpose of (1) meeting operating expenses, including employee wage rates and fringe benefits, (2) purchasing or leasing supplies, equipment or materials, (3) meeting financial reserve needs and requirements, and (4) obtaining funds for capital projects necessary to maintain service within existing service areas.

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

1. The foregoing recitals are true and correct statements of fact and are incorporated into this Resolution by this reference.

2. The Resolution has been reviewed with respect to applicability of the California Environmental Quality Act (“CEQA”) and the CEQA Guidelines. The Resolution is not a project under CEQA Guidelines Section 15378(b)(4) because the Resolution does not have the potential for resulting in either a direct physical 18 change in the environment, or a reasonably foreseeable indirect physical change in the environment, as the Resolution creates government funding mechanisms which do not involve any commitment to any specific project. The Resolution is also exempt from CEQA as there is no possibility for causing a significant effect on the environment, per CEQA Guideline Section 15061(b)(3). No specific sewer projects are associated with this Resolution. The Resolution is policy-oriented and would create a funding mechanism for the development of future sewer facilities.

When and if specific sewer projects are developed and proposed for implementation, the environmental impacts of such facilities would be evaluated in accordance with CEQA and City practice. Finally, the action is exempt from CEQA 15273(a) as the resolution is adopting updated sewer rates that are necessary to meet the operating, maintenance, and capital project funding needs of the City's sewer utility and to maintain service within the City's existing service area.

3. All notices required by law have been duly and timely given.

4. All information related to the proposed rate adjustment has been made available for review by the public at the office of the City Clerk as required by law.

5. The rates and charges established by this Resolution effective July 1, 2025, July 1, 2026, July 1, 2027, July 1, 2028, and July 1, 2029, shall increase at the rates shown in the table below for each of five successive fiscal years for all residential and non-residential units.

6. After due notice and public hearing in an open meeting, the City Council hereby finds that the rates in the preceding table hereto are fair and reasonable, reflect the reasonable cost for the services for which they are to be charged, are correctly calculated and are hereby adopted.

7. The City Council hereby approves and adopts the Sewer Rate Study attached hereto as Exhibit A, which sets forth the adopted rates.

19 8. The City Clerk is hereby authorized to file a Notice of Exemption from CEQA with the County Clerk of the County of Contra Costa, California, regarding this Resolution and the rates and charges hereby adopted.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 22
nd day of July 2025 by the following vote of the
Council:

AYES:

NOES:

ABSENT:

______________________________
Dion Bailey, Mayor
ATTEST:

_________________________________
Eibleis Melendez, City Clerk

20 EXHIBIT A – COMPREHENSIVE SEWER UTILITY RATE STUDY
21 City of Hercules, CA

Comprehensive Sewer
Utility Rate Study
Report
22 i Sewer Rate Study
May 13, 2025

TABLE OF CONTENTS
TABLE OF CONTENTS ................................ ................................ ................................ ............................... i Section 1 – Executive Summary................................ ................................ ................................ ...........1

1.1 Introduction ......................................................................................................................................... 1

1.1.1 Sewer System Background ..................................................................................................... 1

1.1.2 Rate Study Background .......................................................................................................... 1

1.2 Overview of the Rate Study Process ............................................................................................ 2

1.3 Summary of Proposed Rates .......................................................................................................... 3 Section 2 – Revenue Sufficiency Analysis ................................ ................................ .......................... 5

2.1 Financial Planning Principles .......................................................................................................... 5

2.2 Existing Rates ....................................................................................................................................... 5

2.3 Revenue Sufficiency Process ......................................................................................................... 6

2.3.1 Budget .......................................................................................................................................... 6

2.3.2 Capital Improvement Plan (CIP) .......................................................................................... 7

2.3.3 Debt Service ............................................................................................................................... 8

2.3.4 Gross and Net Revenue Requirement ................................................................................ 9

2.4 Customer Data ................................................................................................................................... 9

2.4.1 Customer Billing Analysis........................................................................................................ 10

2.5 Financial Projections Under Existing Rates ................................................................................ 10 Section 3 – Cost-of-Service (COS) Analysis ................................ ................................ ..................... 12

3.1 General .............................................................................................................................................. 12

3.2 Sewer Cost-of-Service .................................................................................................................... 12

3.2.1 Functional Unbundling of Revenue Requirements ........................................................ 12

3.2.2 Classification of Revenue Requirements .......................................................................... 13

3.2.3 Allocation to Customer Classes and Unit Cost Development.................................... 14

3.2.4 Rate Design by Unit Cost ....................................................................................................... 16

3.2.5 Cost-of-Service and Revenue Check ............................................................................... 17 Section 4 – Proposed Test Year Rates ................................ ................................ ............................... 19

4.1 General .............................................................................................................................................. 19 23 ii Sewer Rate Study
May 13, 2025

4.2 Rate Comparison with Other Utilities ......................................................................................... 20 Section 5 – Projected Operating Results ................................ ................................ .......................... 22

5.1 General .............................................................................................................................................. 22

5.2 Projected User Rate Revenues .................................................................................................... 22

5.3 Debt Service Coverage ................................................................................................................ 24

5.4 Summary of Projected Operating Results ................................................................................ 25 Section 6 – Conclusions and Recommendations ................................ ................................ ............ 27

6.1 Disclaimers............................................................................................................................................... 27

6.1.1 General Disclaimer ................................................................................................................. 27

6.1.2 Municipal Advisory Disclaimer ............................................................................................. 27

6.2 Conclusions ....................................................................................................................................... 28

6.3 Recommendations ......................................................................................................................... 29

24 1 | P a g e

Section 1 – Executive Summary

1.1 Introduction
Willdan Financial Services (Willdan) is pleased to submit to the City of Hercules (City) the following Sewer Rate Study report (Report) for your consideration. Willdan has completed this study of the City’s sewer rates, which are submitted annually to the Contra Costa County Auditor-Controller’s Office for placement each year on the Secured Property Tax Roll. The results of the investigations, analyses, and conclusions from this study are summarized in this Report.

1.1.1 Sewer System Background
The City’s wastewater collection system serves the area within the City limits and collects and conveys an average dry weather flow of approximately 1.7 million gallons per day (MGD) of wastewater. This service area includes 8,300 parcels through 7,000 private laterals, which encompasses a population of approximately 26,000 residents.

The wastewater generated by the City is conveyed to and treated by the Pinole -Hercules Water Pollution Control Plant (WPCP), located southwest of the City limits in the City of Pinole.

All wastewater conveyed to the WPCP is processed before being safely discharged into the San Francisco Bay. The system is built exclusively for sanitary waste and operates 24/7 to protect public health and the environment. While Hercules and Pinole share the WPCP, The City of Pinole handles the daily operations of the WPCP, and The City of Hercules reimburses Pinole for their respective share of wastewater treatment plant operating and maintenance costs incurred. All capital costs associated with the WPCP are split 50/50 between the City and The City of Pinole.

The City’s collection system consists of gravity sewer mains, force mains, and lift stations. The collection system includes approximately 62 miles of gravity sewer mains and 1,660 manholes, most of which were constructed after 1970. Gravity sewers located in the older areas of the City are believed to be constructed of asbestos cement (AC) pipe, also known as “Transite” pipe. New gravity sewer construction is typically polyvinylchloride (PVC) pipe.

The City also owns seven lift stations within the collecti on system, and their associated 4.5 miles of force mains.

1.1.2 Rate Study Background
The City has focused a significant amount of attention and effort on strategic and master planning measures in all areas of sewer utility operations to ensure that it is able to continue providing uninterrupted service to its customers and maintaining the critical infrastructure that ensures the health and safety of the community , and a stable and well -functioning wastewater system that is prepared for the future. As part of its ongoing planning efforts, the City commissioned Willdan to perform a sewer rate study to analyze the revenue sources 25 2 | P a g e

and expenditures of the sewer utility system , develop a five -year financial analysis, and provide recommendations for proposed rate and/or rate structure adjustments to meet the financial and administrative goals and objectives of the City. The primary objectives of the rate study include:

➢ Full recovery of costs related to utility operations (i.e., operating and maintenance costs, debt, and other expenditure requirements);
➢ Development of cost-based rate structures;
➢ Maintaining consistency with Water Environment Federation (WEF) guidelines; ➢ Providing for equity among customer classes;
➢ Meeting substantive and procedural Proposition 218 requirements; ➢ Maximizing administrative efficiency (i.e., easy to understand and implement); and ➢ Incorporation into the analysis of a 5-Year capital funding plan.

1.2 Overview of the Rate Study Process
This study includes the development and presentation of a pro-forma sewer financial plan for a 5-year planning period, as well as the development of cost-based rates through a cost- of-service and rate design analysis. Utility rates must be set at a level such that operating, maintenance, debt , and capital expenses are funded with the revenues received from customers. In addition, the revenues generated from utility rates must only be used for this purpose and for the sewer system only. This is a significant point, as failure to achieve the revenues needed can lead to unacceptable service levels and inadequately maintained facilities. Therefore, a rate study typically consists of the following three interrelated analyses:

I. Financial Planning/Revenue Requirement Analysis : Creates a five-year plan to support an orderly, efficient program of on -going maintenance and operating costs, capital improvement and replacement activities, debt financing, and retirement of outstanding debt. In addition, the plan should fund and maintain appropriate reserve balances based on industry standards, as well as the City’s fiscal policies and specific needs.

II. Cost -of-Service Analysis : Identifies and apportions annual revenue requirements (i.e., expenditures) to operational and functional cost components based on the demand placed on the sewer utility system. The purpose of this analysis is to develop rates that generate revenues relatively proportionate to the share of the utility’s costs. This objective is consistent with industry standards as well as the requirements of Proposition 218 (Prop 218).

III. Rate Design: Develops an equitable and proportionate schedule of rates for the City’s customer base. The policy objectives are coordinated with Prop 218 requirements and cost-of-service objectives to achieve a balance between customer equity and financial stability goals.
26 3 | P a g e

This rate study utilizes generally accepted rate-making principles and standards established by industry experts such as the WEF in its “Financing and Charges for Sewer Systems, Manual of Practice No. 27”. The principles established by WEF are used as guidelines in the development of the proposed sewer rates. A discussion of some of the key principles of ratemaking is presented in the following subsection of this Report.

1.3 Summary of Proposed Rates
The rate study methodology applied in the development of updated sewer rates, outlined in this Report, consisted of reviewing the historical operating results of the sewer utility system, analyzing the budget to identify the net revenue requirements to be recovered from user rate revenues, performing general cost-of-service allocations based on the rate components and functional cost categories, and revising the rates based on the applicable costs and expenditures to be recovered from user rates. In additio n, an analysis of the system’s customers was performed to identify the rate determinants since they drive the recommended rates, which are the primary source for generating revenues. The allocated revenue requirements were utilized in conjunction with the rate determinants and rate structure to develop the proposed sewer rates.

The findings and conclusions of the rate analysis, as well as the resulting revised rate recommendations, were utilized to develop a projection of future operating results for a 5 - year planning period from Fiscal Year (FY) 2026 (beginning July 1, 202 5) through FY 2030 (ending June 30, 20 30), herein referred to as the “Projection Period”. The purpose for developing the 5 -year projections is to demonstrate the financial capability of the sewer revenues to support system operations and maintenance, and fund pl anned capital improvements. The analyses, findings and accompanying recommendations are presented in the subsequent sections of the Report.

Rate Design Analysis
Considers both the level and structure of the rate design to collect the appropiate and targeted level of revenues.

Cost of Service Analysis
Allocates the revenue requirements to the fixed/variable cost components based on cost of service.

Revenue Requirement Analysis
Compares the revenues to the expenses of the utility
to determine the overall rate adjustment required.
27 4 | P a g e

The sewer rate analysis described in the Report is performed based on the general guidelines of the defined objectives, as well as common industry standards for setting utility rates. In addition to focusing on these major objectives, the rate analyses performed herein may consider other factors in designing rates. As discussed in detail later in this Report, other rate considerations may generally include sensitivity to the impact of rate changes on existing customers, relative comparability with neighboring utilities, and variations or changes (if any) from the City’s existing rate structure. The proposed sewer rates for assumed implementation effective July 1, 2025 (or other such date as determined by the City) for FY 2025/26 (FY 2026, herein referred to as the “Test Year”) are provided in Table 1 . It is anticipated that the charges, based on these rates, will be submitted to Contra Costa County for placement on Fiscal Year 202 5/2026 Annual Secured Property Tax Bills, which are typically sent out to property owners in early fall each year. The existing rates are provided in Table 2.

Table 1 – Proposed Annual Sewer Rates

28 5 | P a g e

Section 2 – Revenue Sufficiency Analysis

2.1 Financial Planning Principles
While the individual rates for a utility system vary based on a variety of factors, rates should be consistent with common rate-making principles within the utility industry . The guiding principle is that rates designed for any utility should provide a reasonable balance between several key factors. In general, the utility rates should:
➢ Generate a stable revenue stream that, when combined with other sources of funds, is sufficient to meet the expenditure requirements and goals of the system; ➢ Be based upon the proportionate cost of providing the service and not exceed the cost of providing the service – in compliance with California Proposition 218; ➢ Be equitable – that is, they should generate revenue from customer classes in a manner which is reasonably in proportion to the cost of providing the service to that customer class;
➢ Be easy to understand by customers; and
➢ Be easy to administer by the utility.

Striking the appropriate balance between the principles of ratemaking is the result of a detailed process of evaluation of revenue requirements and cost-of-service, and how those translate into the rate design alternatives which meet legal requirements and the specific objectives of the utility under the circumstances in which it operates.

2.2 Existing Rates
As described in the Introduction to this report, The City has established sewer charges that are submitted annually to Contra Costa County for inclusion on the annual secured property tax roll. These charges are based on customer classification, and these rates charged for sewer service are approved by the City Council and are not subject to administrative review or approval by any other local or state agency. The City has historically adjusted rates , as necessary, to provide for recovery of financial oblig ations including operating expenses, debt service, capital expenditures and any other expenses and transfers.

The existing annual sewer rates consist of 1) a separate flat rate for different types of residential customers that is applied per dwelling unit regardless of their usage, 2) a fixed fee for commercial/non-residential customers that designates the minimum amount they will pay by account, regardless of usage, and 3) a commercial /non-residential volumetric rate component per 100 cubic feet that recovers the costs of treatment and disposal of wastewater. The existing rates for sewer service are provided in Table 2.

29 6 | P a g e

Table 2 – Existing Annual Sewer Rates

2.3 Revenue Sufficiency Process
In evaluating whether the existing rates will generate sufficient revenue to meet the expenditure requirements of the sewer system, the annual expenditures required for the sewer utility system (herein referred to as the “Revenue Requirements”) must be developed.

The Revenue Sufficiency Analysis compares the forecasted revenues f or the sewer utility system under existing rates (including customer growth) to the projected Revenue Requirements.

2.3. 1 Budget
The Revenue Sufficiency Analysis performed as part of this study and summarized in this Report utilizes the City’s adopted budget for FY 2024/25 (the “Budget” for FY ending June 30, 2025) as one source of data and information to determine the gross Revenue Requirements to be recovered from user rates over the Projection Period. The Budget, as prepared by the City, is provided on a line-item basis, and is used for projecting the budgeted financial needs for the Test Year and the remainder of the Projection Period. In developing the rate analysis, certain adjustments are made such that the expenditures are categorized into either Operating and Maintenance (O&M) expenses or non-operating expenses. In addition, only recurring costs included in the current Budget were included as part of the Revenue Sufficiency Analysis. One-time costs were identified and evaluated in discussions with City Staff and removed if appropriate. Recurring annual costs were escalated using suitable cost 30 7 | P a g e

indexes or cost escalation factors, again in discussion with City Staff and based on historical trends.

The O&M expenses are primarily those ongoing costs for labor, materials, supplies, services, etc., required to manage and operate the utility system on a day -to-day basis while maintaining a dependable level of service. The O&M requirements are generally a function of a budgetary process and are directly related to the level of service provided to customers of the utility system. The largest O&M expense identified in the City’s budget is the reimbursement to Pinole for operating costs associated with the WPCP. The non-operating expenses include such items as capital outlay and any other expenses & transfers.

The Budget also identifies estimated revenues to be derived from sources other than sewer user rates. Such other revenue sources include interest earnings on investments and various other miscellaneous service charges . The revenues generated from the other sources are applied to the gross Revenue Requirements to reduce the amount of revenue required from user rates. The result is the net Revenue Requirement.

2.3. 2 Capital Improvement Plan (CIP)
The City provided a list of anticipated capital projects to be funded over the Projection Period. These are also included in the development of the gross Revenue Requirements. The capital projects provided by and identified by the City in the CIP are required in order to maintain uninterrupted service to customers by investing in improvements, repairs, or replacements of aging system components as they wear over time. The City provided cost estimates for the identified capital projects by the fiscal year in which they are estimated to be undertaken. Along with the City provided list of anticipated capital projects, The City of Pinole identified shared capital costs associated with the WPCP, which are also included in the list of anticipated capital projects to be undertaken over the Projection Period . The funding for the City’s and shared WPCP capital projects was then used in the analysis, along with O&M and non-operating expenses, to determine the gross Revenue Requirements for the sewer system. The capital projects included in the CIP for the Projection Period are provided in Table 3.

31 8 | P a g e

Table 3 – Sewer CIP ($1,000s)

2.3. 3 Debt Service
The City currently has two outstanding debt issuances for the sewer system. A minimum debt service coverage ratio of 1.20 times is required to be maintained on an annual basis, based on the City’s current bond covenants associated with the existing debt. In simple terms, this means that the utility must have at least $1.20 in net operating revenues for every $1.00 of debt service they are committed to pay on existing debt. The debt service coverage is calculated by dividing net operating revenues (revenues less operations and maintenance expenses) by annual debt service. There are no future or additional debt issuances assumed to take place over the Projection Period outside of the current outstanding debt obligations.

The annual existing debt payments over the Projection Period are provided in Table 4.

Table 4 – Annual Debt Service Payments

2025 2026 2027 2028 2029 2030
Sewer System Improvements
Sycamore Ave (Lower Trunk Main) 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ Sycamore Trunk Sewer Overflow Line Project 202 1,000 0 0 0 0 Sewer Manholes in Business Park 0 0 0 0 0 0 Sewer Manholes in Business Park 0 0 0 0 0 0 Promenade Lift Station 0 185 1,170 0 0 0 Repair/ Replace Sewer Lines under SR-4 & Along Willow Ave 0 200 100 1,080 0 0 Total Sewer System Improvements 202$ 1,385 $ 1,270 $ 1,080 $ - $ 0 $ Hercules Share of Pinole WW Plant
As-Built WWTP Drawings 13$ 0 $ 0 $ 0 $ 0 $ 0 $ Boiler Rehabilitation 23 0 0 0 0 0 Centrifuge Feed Pump Replacement 25 0 0 0 0 0 Digester Feed Pump Replacement 38 0 0 0 0 0 Energy Recovery Building  and Admin Roof 40 0 0 0 0 0 Misc. Plant Improvements 38 0 0 0 0 0 SCADA System Upgrade 23 0 0 0 0 0 SS2002 Water Pollution Control Plant Lab Remodel 50 0 0 0 0 0 SS2101 Second Clarifier - Center Column Rehabilitation 213 0 0 0 0 0 SS2102 Air Release Valve Replacement 25 0 0 0 0 0 SS2203 Effluent Outfall Project Design 75 500 1,000 0 0 0 Effluent Pipe Coating - Rodeo Creek Crossing 15 0 0 0 0 0 Spare Influent Pump 50 0 0 0 0 0 Chlorine Contact Basin - Coating 0 100 0 0 0 0 Energy Recovery System Replacement 0 0 0 100 650 0 Aeration Basin - Coating 0 0 150 0 0 0 Water Pollution Control Plant Boiler Replacement 0 0 330 0 0 0 Water Pollution Control Plant Centrifuge Replacement 0 0 0 495 0 0 Total Hercules Share Of Pinole WW Plant Improvements 625$ 600$ 1,480 $ 595$ 650$ - $ Total Sewer Projects 827$ 1,985 $ 2,750 $ 1,675 $ 650$ - $ Projected for Fiscal Year Ending June 30, ($1,000s)Description 32 9 | P a g e

2.3. 4 Gross and Net Revenue Requirement
The proposed sewer rates developed in the Report are designed for assumed implementation in FY 2025/26 (the Test Year as previously defined). The projected Test Year gross and net Revenue Requirements are estimated by utilizing the Budget , actual debt service requirements as provided in the applicable debt service schedules, capital estimates and assumed funding sources for capital projects as provided by the City, a long with anticipated transfers. The Test Year Revenue Requirements that are used for developing the user rates proposed herein are detailed in Appendix A at the end of this report and summarized in Table 5.

Table 5 – Test Year Revenue Requirements – FY 2026

The projected Revenue Requirements for the sewer system over the entire Projection Period are provided in Table 6.

Table 6 – Sewer Revenue Requirements for the Projection Period

2.4 Customer Data
The rate study described herein, particularly the cost -of-service analysis, is heavily reliant upon a detailed analysis of system customers and demand characteristics. The existing utility customer base provide s the determinants utilized in the cost -of-service analysis, and ultimately in calculating the sewer charges, which become the foundation for projecting future revenues generated by the sewer system.

It is important to note that the customer analysis focuses primarily on the customer classifications that will be subject to and impacted by the user rates and charges to be developed in the Report. This consists of the general service (retail) customers that currently 33 10 | P a g e

pay for utility service pursuant to the existing user rates and charges as previously detailed.

For the purposes of the rate study, it is these customers that will generate revenues based upon the proposed user rates and charges.

2.4.1 Customer Billing Analysis
For the rate study, detailed billing information was provided for each customer. This data offered a breakdown of customers by class, usage characteristics, and billed charges. An analysis of the billing data was conducted to obtain an understanding of the existing customers, customer classes, and usage characteristics per customer class. In accordance with the data, as well as discussions with the City staff, the utility system provides service to various identifiable retail customer classes consisting of:
➢ Single-Family Residential
➢ Multi-Family Residential
➢ Senior Housing, and
➢ Commercial/Non-Residential
Each of these customer classes embodies certain common characteristics in their utility use and service demand profiles that provide the basis for establishing an equitable allocation of system costs. The billing data was utilized to identify the number of customer accounts within each class, the applicable equivalent residential units (ERUs) based on dwelling units, usage profiles, and strength characteristics.

The historical customer data was also utilized to establish growth trends for each customer classification. The growth trends were then used to project the average number of customers, ERUs, and usage within each class for the Test Year plus the remaining years of the Projection Period.

2.5 Financial Projections Under Existing Rates
The projected customers and accompanying billable flows are applied to the existing rates to develop a projection of user rate revenues that would be generated under existing rates.

The revenues are then compared to the projected revenue requirements/expenditures to determine if revenue adjustments are needed. Based on this comparison, it is projected that under the existing rates, the sewer system would not meet its collective projected operating (O&M) financial obligations , debt service payment s or coverage requirements, costs of capital projects , and transfers . Therefore, revenue increases are required to generate additional cash to fund projected costs of operations and capital projects , meet debt service requirements, and maintain adequate cash reserves.

The City has established an objective of maintaining at least 180 days of cash reserves to help fund ongoing operations in the event of periodic fluctuations in cash flow , and to address unexpected needs that may require cash funding. Since the City currently collects sewer user revenues through the annual secured property tax roll, as opposed to receiving cash through monthly or bi -monthly billings , it is essential that there are adequate cash 34 11 | P a g e

reserves to cover expenditures between cycles of revenue collection from annual secured tax roll payments. The cash-flow statement outlining the projected operating results under existing rates is summarized in Table 7 for the sewer system. The proposed rates and projected financial results are addressed in the subsequent sections of this Report.

Table 7 – Sewer System Projected Operating Results - Existing Rates ($1,000s)

35 12 | P a g e

Section 3 – Cost -of-Service (COS) Analysis

3.1 General
The costs incurred by a sewer utility system are generally driven by specific service requirements imposed on the system by its customers. There are several different options that can be used to perform a cost -of-service (COS) analysis, and the allocation methodology depends upon the basis applied. The sewer COS analysis detailed in Section 3.2 involves an examination of the number and type of customers served in accordance with the California State Water Resources Control Board (SWRCB) Revenue Program Guidelines for Wastewater Agencies.

3.2 Sewer Cost -of-Service
The COS analysis for the sewer utility utilizes the revenue requirements for the Test Year as the cost basis. The Test Year revenue requirement s are functionally unbundled, classified and allocated to customer classes to determine the cost-of-service by class. More detail relating to the sewer COS approach can be found in Appendix B.

3.2.1 Functional Unbundling of Revenue Requirements
The sewer system costs are unbundled into Collection, Treatment, Customer and Administrative functions. A brief description of each component is as follows:
• Collection – costs associated with lines and facilities that transport wastewater from customer properties to treatment facilities;
• Treatment – costs associated with treating wastewater for disposal reclamation and/or discharge;
• Customer – costs associated with billing, and providing other services to customers (e.g., printing, delivering, and collecting utility bills, recordkeeping, etc.). • Administration – various overhead and other non-operating costs.

The allocation of the functionally unbundled revenue requirement s for the Test Year are summarized in Table 8.

36 13 | P a g e

Table 8 - Functional Unbundled Cost Allocations

3.2.2 Classification of Revenue Requirement s
The functionally unbundled Revenue Requirements for the sewer system are classified into fixed and volumetric customer components based on methodology consistent with the WEF, Manual of Practice No. 27. Since the City is mostly built out, and there are no anticipated losses or gains of significant wastewater customers, it is anticipated that the allocation percentages will not change materially during the Projection Period. However, it is important to note that COS analyses are based on the data at a specific point in time ( i.e., the most recent fiscal year). To the extent that weather conditions, economic conditions and customer usage characteristics change during the Projection Period, the cost allocations can be impacted. The system-wide costs by service characteristics are shown in Table 9. 37 14 | P a g e

Table 9 - Classification of Unbundled Revenue Requirements

3.2.3 Allocation to Customer Classes and Unit Cost
Development
The functionalized and classified Revenue Requirements are allocated to customer classes utilizing a unit cost approach as follows:
• Collection – Based on relative percentage of annual sewer usage; • Treatment – Based on relative percentage of sewer strength discharge (BOD and TSS);
• Customer – Based on relative percentage of units by customer class.

The units of service for each component of cost by customer class (if applicable) are provided in Table 10. The units of service consist of the number of ERUs, annual flows in 100 cubic feet, and sewer strength discharge . ERUs are based on the number of residential dwelling units and commercial/non -residential customers by account as provided in the customer data. Collection is the total annual sewer flows projected for the Test Year. BOD and TSS reflect the strength per pound of the sewer discharge collected by the City from each customer class based on standards for wastewater discharge included in the SWRCB Guidelines.
38 15 | P a g e

Table 10 – Units of Service

39 16 | P a g e

The revenue requirement for each cost component is divided by its respective unit of service to calculate a unit cost. The unit cost for each cost component is demonstrated in Table 11.

Table 11 – Cost Per Unit

The allocation of the revenue requirement to each customer class is based on the unit costs for each component multiplied by the units of service for each customer class. The total costs to be recovered from each customer class by rate component are shown in Table 12.

Table 12 – Cost of Service by Customer Class and Cost Component

3.2.4 Rate Design by Unit Cost
The unit costs developed in the previous section are used to develop the proposed rates for the Test Year. The fixed rate components are based on accounts, ERUs and the allocated customer-related costs. The volumetric rate component is based on the annual usage and sewer strength discharge.

The fixed rate component s by ERU for single -family and multi -family customers are determined using the total number of residential dwelling units being served. Each residential dwelling unit is equivalent to one ERU. The fixed rate components for commercial/non- residential customers are determined based on the total number of non-residential customers.

The volumetric rate componen t is determined by the sewer usage and the strength characteristics associated with each customer classification based on the standards for wastewater discharge included in the State Water Resources Control Board Guidelines .

Residential customers will pay a flat fee, regardless of their usage, so all costs relating to the volumetric rate component are included in the flat fee. This is a common industry standard 40 17 | P a g e

for setting residential sewer rates since residential customers have similar usage profiles and place similar demand on a sewer utility system, and their wastewater discharge is not directly metered.

For commercial/non-residential customers, the volumetric rate component is determined by dividing the volume, capacity, BOD, and TSS volumetric cost categories by the total commercial/non-residential sewer flows to determine the commercial/non-residential volumetric rate per 100 cubic feet. It is a common industry practice to have commercial/non-residential customers pay a volumetric rate per unit of sewer usage since the commercial/non -residential customer class varies in usage and strength discharge characteristics between customers. Section 3.2.5. demonstrates how the sewer rates are developed from the fixed and volumetric cost components, respective to each customer classification, to recover their proportional cost of providing service to them.

3.2.5 Cost -of-Service and Revenue Check
Once the unit costs are developed and the costs associated with each customer class based on the units or service are determined in Section 3.2.3, rates can be developed to ensure that each customer class is generating sufficient revenues to cover their allocated cost of service. The proposed rate structure for the sewer rates are as follows:
• Single -Family , Multi -Family , & Senior Housing Residential Customers – For single-family, multi-family, and senior housing residential customers, the proposed rates will consist of only a flat annual fixed charge based on the number of dwelling units.
• Commercial/Non -Residential Customers – For commercial/non -residential customers, the proposed rates will consist of an annual fixed charge per account and a volumetric rate per 100 cubic feet of sewer usage.

The revenues generated by each customer class vs the cost allocated to each customer class are provided in Table 13.

41 18 | P a g e

Table 13 – Proposed Rate Revenues vs COS

42 19 | P a g e

Section 4 – Proposed Test Year Rates

4.1 General
The methodology used to calculate the recommended sewer rates proposed herein involves applying the projected customers , ERUs, and sewer flows to the user rates developed in the preceding COS and rate analysis to calculate the estimated revenues that would be generated. Then, these projected revenues are compared to the estimated Test Year Revenue Requirements, and the sewer rates are adjusted on a percentage basis as necessary until the revenues generated are sufficient to meet the revenue needs of the sewer utility system. In addition, there are other factors that must be considered in designing rates to satisfy the City’s objectives. Such other rate considerations include, but are not limited to:

1. Sensitivity to existing customers - the proposed rates must consider the impact on existing customers and avoid putting an inequitable financial burden on any particular customer class.

2. Comparability with neighboring utilities - the proposed rates should consider the rates and charges applied to customers of neighboring utilities of relatively similar size for similar service.

3. Existing rate structure - the proposed rates must consider the logistics and cost/benefit implications of instituting changes to the existing rates and rate structure.

4. Economic and property development - the proposed rates must consider the potential for future development within the City’s service area and ensure that the rates do not make it cost-prohibitive for future development.

The proposed rates developed herein utilize these considerations, as well as discussions with the City staff, professional judgment, and prior experience with comparable utility systems .

When reviewing potential rate structure options in conjunction with the need for additional revenues, it was determined that revenue adjustments are needed, and the existing rate structure needs to be adjusted based on the COS analysis.

In conjunction with the existing rate structure, the proposed sewer rates for the upcoming fiscal year are composed of two rate components consisting of an annual fixed charge and a volumetric rate per 100 cubic feet for commercial/non -residential customers only . The proposed annual sewer rates for the Test Year are provided again in Table 14.

43 20 | P a g e

Table 14 – Proposed Annual Sewer Rates

4.2 Rate Comparison with Other Utilities
In order to provide the City with additional insight regarding the proposed rate levels, the analysis includes a comparison of both the existing and proposed user rates relative to the user rates imposed by other sewer utility systems located in the same region. A summary analysis is provided comparing the cost of the annual sewer service for a typical single-family residential customer calculated under the existing and proposed rates of the City with those of the other utilities. Since the City currently bills customers annually through the Contra Costa County Secured Property Tax Roll, for purposes of a meaningful comparison, the bills for sewer utilities that do not bill annually (i.e., monthly, or bi -monthly) were converted into annual bills. The rates utilized for the other neighboring utilities bills shown in Figure 1 were in effect as of January 2025 and are exclusive of local taxes, outside surcharges, franchise fees, regulatory fees, or other rate adjustments. An annual summary comparison with other utilities for a typical single-family residential customer is illustrated in Figure 1.

44 21 | P a g e

It should be noted that when making comparisons of sewer service, several factors affect the level of rates and charges. Such factors may include:
1) Terms of wholesale service agreements;
2) Time since last rate update for comparison providers; 3) Level of treatment and effluent disposal methods of sewer service; 4) Anticipated capital improvement programs and capital financing methods; 5) Plant capacity utilization, age of facilities, and assistance in construction by federal or state grants, connection fees, developer contributions, etc.; 6) General Fund and/or administrative fee transfers made by other systems which may account for differences in the level of rates charged; and 7) Bond covenants and funding requirements of the rates.

For the utilities included in the rate comparisons, no analysis has been performed with consideration of the above-mentioned factors as they relate to the reported sewer rates currently being charged.

45 22 | P a g e

Section 5 – Projected Operating Results

5.1 General
As a conclusion to the study, a pro-forma operating statement is developed for the sewer system. The statement summarize s the projected financial results based on the system’s revenues, expenses and other Revenue Requirements anticipated in future years.

The operating statement cover s the 5-fiscal year Projection Period through June 30, 20 30, and is prepared on a cash -flow basis. In addition, the pro-forma statement includes the applicable annual percentage rate adjustments necessary to meet the projected Revenue Requirements. The following discussions describe the development of the major components of the projected operating results.

5.2 Projected User Rate Revenues
The user rate and charge revenues are estimated by applying the existing and proposed rates to the projected customer accounts, ERUs, and sewer flows. The resulting revenues are then compared to the projected Revenue Requirements (i.e., O&M expenses, debt service, capital outlay, CIP, transfers, etc.) in each fiscal year to determine if the revenues are sufficient to satisfy the expenditure needs of the system. To the extent that there are revenue shortfalls in any given year of the Project Period , the sewer rates developed from the COS and Rate analysis outlined in Section 3 of this Report are adjusted on a percentage basis each year as necessary to generate the required level of revenues. The projected sewer user rate revenues are provided in Table 15.

Table 15 – Projected User Rate Revenues

The projected revenues include the annual sewer rate adjustments anticipated for the remaining years of the Projection Period beyond the Test Year. The proposed user rates, from which the projected operating results are developed for the entire 5 -fiscal year Projection Period are provided in Table 16. The rates identified in the table below reflect the cost o f providing service to individual customer classes based on accounts, ERUs, volume of flow, and strength characteristics.
46 23 | P a g e

Table 16 – Proposed Annual Sewer Rates

The projected user rates provided herein for the periods beyond the Test Year are intended for strategic planning purposes, and to provide the City with the estimated future rates that may be needed to satisfy the projected cash flow requirements. The rates are developed in accordance with the assumed customer , flow, expenditure, and revenue estimates projected in this rate study. It is important to note that, since it is necessary to utilize numerous assumptions to develop the projected operating results, to the extent that actual customers, flows and/or system expenditures differ from those assumed herein, additional rate adjustments may be necessary. For informative purposes, the annual charge for a representative City residential customer based on the projected rates, as well as the accompanying change in the annual charge for each year of the Projection Period is included herein. An illustration of the projected annual flat fee charge for a single-family residential customer is provided in Figure 2.

47 24 | P a g e

5.3 Debt Service Coverage
The sewer operating statement also include s a calculation of the annual debt service coverage. Debt service coverage is generally viewed as an indicator of the financial strength of the utility. The debt service coverage ratio is broadly calculated by dividing the net revenues by the annual debt service requirement. For the purposes of the debt service coverage calculation developed herein, the net revenues consist of the total operating revenues (user rate revenues plus other revenues) less the O&M expenses. In accordance with the requirements of the outstanding loan agreements, the City must maintain coverage of at least 120% (1.20 times) of the annual debt service payment. The pro-forma operating statement indicate s that the sewer system is expected to meet or exceed the required minimum level of debt service coverage in each fiscal year of the Projection Period. It is important to note that the coverage results are provided for informative purposes only and are not intended as a legally supportable calculation for representation to bondholders. The debt service coverage for the sewer system over the projection period is provided in Table

17. 48

25 | P a g e

Table 17 –Sewer Utility System Projected Debt Service Coverage

5.4 Summary of Projected Operating Results
The cash-flow statement outlining the projected operating results is summarized in Table 18 for the sewer system. The results demonstrate that the proposed rates and charges along with the other system revenues are anticipated to be sufficient to satisfy the projected Revenue Requirements and capital needs of the utility system.

Projected Minimum
2026 1.26 1.20
2027 1.35 1.20
2028 1.44 1.20
2029 1.47 1.20
2030 1.50 1.20
Fiscal Year Sewer Enterprise
49 26 | P a g e

Table 18 – Sewer System Projected Operating Results - Proposed Rates ($1,000s)

50 27 | P a g e

Section 6 – Conclusions and Recommendations

6.1 Disclaimers

6.1.1 General Disclaimer
In the development of the proposed user rates and charges, certain historical reviews and analyses have been performed, together with the application of assumptions based on prudent financial, operational, and ratemaking relationships. The cost criteria and customer usage characteristics associated with general ratemaking procedures are representative of averages and are not intended as indicators of any individual customer.

In the preparation of the rate study, certain assumptions have been made with respect to conditions that may occur in the future. While it is believed that these assumptions are reasonable for the purpose of this update, they are dependent upon future even ts and actual conditions may differ from those assumed. In addition, the study has used and relied upon certain information that was provided by other parties not associated with Willdan.

Such information includes, among other things, the City’s audited f inancial statements, annual operating budgets, periodic reports, and other information and data provided by the City, its independent auditors, and other sources. While the sources are believed to be reliable, there has been no independent verification of the information, and no assurances are offered with respect thereto. To the extent that future conditions differ from those assumed herein or provided by others, the actual results may vary from those projected.

6.1.2 Municipal Advisory Disclaimer
Unless the City of Hercules, California (the “City”) has a written engagement from Willdan Financial Services (“Willdan”) for municipal advisory services, Willdan is not advising or recommending any action be taken by the recipient of this information with respect to any prospective, new, or existing municipal financial products or issuance of municipal securities (including with respect to the structure, timing, terms and other similar matters concerning such financial products or issues). The City shall discuss any such informatio n and material contained in Willdan’s work product with any and all internal and/or external advisors and experts, including its own municipal advisor, that it deems appropriate before acting on the information and material.

For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash -flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relat ing to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it 51 28 | P a g e

provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto.

6.2 Conclusions
As previously addressed, the purpose of this study is to provide a review of the City’s existing utility rates to determine if rate adjustments are necessary to meet the budgeted and/or projected financial needs in future years. This Report is the result of the collaborative efforts of representatives from both the City and Willdan. City staff were diligent and cooperative in their efforts to ensure the availability and quality of source data on financial and operating matters. Based on the reviews, analyse s and assumptions discussed herein, it is concluded that:

1. The proposed user rates and charges are anticipated to generate sufficient revenues to meet the Revenue Requirements of the system based upon the projected expenditures, transfers, customers, and billable flows estimated for the Test Year. The proposed rates are based on an assumed implementation date of July 1, 2025. To the extent that the actual implementation date varies from the assumed implementation date , additional rate adjustments and/or appropriations from existing reserves may be necessary.

2. The estimated revenues and resulting rate adjustments for the remaining years of the Projection Period beyond the Test Year are developed based on the customer growth assumptions generated from the historical analyses and discussions with City staff. If the customer growth projections are not realized, additional rate adjustments may be necessary.

3. Customer growth for the sewer system is projected based on historical customer data as provided by the City as well as discussions with the City staff regarding development activity and anticipated construction. If it turns out that the customer growth assumptions are not realized, the resulting revenues could be different than projected.

4. Future capital improvement projects are assumed to occur as reported by the City in its CIP. To the extent that the timing of such projects may change from that estimated herein, the cost of such projects and resulting impact on future rates and charges may vary from those indicated

52 29 | P a g e

5. The proposed rates and rate structure are consistent with industry standards for rate-setting practices, comply with Proposition 218 and conform to the City’s financial policies with respect to:
a. Equitably recovering costs;
b. Being based upon the proportionate cost of providing services; and c. Generating sufficient revenue to recover system Revenue Requirements, meet debt service coverage requirements and annual payment obligations, fund capital needs, and meet reserve requirements.

6.3 Recommendations
Based on the reviews, analyses and assumptions addressed herein, as well as the resulting conclusions provided above, it is respectfully recommended that the City:

1. Adopt the proposed sewer rates to be placed on the annual secured property tax roll.

2. Enact the proposed rates to become effective as of July 1, 2025 (or other such date as determined by the City). Based on the timing of the project and the required public hearing notice procedures, it is expected that the effective date will occur on the recommended date.

3. Readdress the COS analysis portion of this study every three to five years to ensure costs are recovered consistent with COS principles and customer characteristics.

We appreciate the opportunity to be of service to the City in this engagement. In addition, we would like to thank City staff for the valuable assistance provided during the completion of the rate study.

Respectfully Yours,

WILLDAN FINANCIAL SERVICES
53 APPENDIX

DETAIL FOR THE COMPREHENSIVE

SEWER UTILITY RATE STUDY

COMPREHENSIVE SEWER UTILITY RATE STUDY FOR THE

CITY OF HERCULES, CALIFORNIA

54 APPENDIX A
Revenue Requirement for
User Rates

55 APPENDIX - A

CITY OF HERCULES, CA
Development of Rate Revenue Requirements
[A] [B] [C]=[A]*[B]
FY 2026 % to Sewer Sewer
1 Total Operating Revenues 7,809,792$ 7,809,792$ Less:

Other Operating Revenues
2 Interest Income 238,000$ 100% 238,000$ 3 Sewer Connection Fee - 100% - 4 Sewer Facilities Fees - 100% - 5 Sewer Lateral Inspection - 100% - 6 Rate Stabilization - 100% -
7 Sewer Ent. Fund - 100% -
8 Total Other Operating Revenues 238,000 238,000 9 Total Rate Revenue Requirement 7,571,792$ 100% 7,571,792$ Line No: Description Test Year for Rate Revenue Requirement A - 1
56 APPENDIX B
Sewer Cost-of-Service
Analysis
57 APPENDIX - B

CITY OF HERCULES, CA
Allocation of Test Year Costs to Sewer Function
Line No: Expense Group FY 2026
1 Collection $321,347
2 Treatment 3,080,232
3 Administration 1,746,738
4 Pumping 60,564
5 Customer Service 0
6 Transfers 0
7 Existing Debt 2,066,306
8 New Debt 0
9 CIP 1,985,000
10 Capital Outlay 0
11 Total 9,260,187$
Test Year Revenue Requirement
B - 1
58 APPENDIX - B

CITY OF HERCULES, CA
Sewer Customer Account & Stength Characteristics by Customer Class - Test Year FY 2026 Total Total CCF BOD BOD TSS TSS
Parcels ERUs Flow Factor [1] Pounds Factor [1] Pounds
Residential Classes
1 Resid. Single Family 6,378 6,378 474,268 200 591,727 200 591,727 2 Multi-Family 1,876 2,650 149,988 200 187,135 200 187,135 3 Senior Housing 2 111 4,015 200 5,009 200 5,009 4 Sub-total Residential 8,256 9,139 628,271 783,871 783,871 Non-Residential Classes
5 Amusement Services 3 3 3,660 150 4,579 150 4,579 6 Auto Laundries 1 1 2,573 150 3,219 150 3,219 7 Construction 1 1 119 200 198 200 198 8 Eating Places, Fast 5 5 3,534 1,000 29,474 600 17,684 9 Electrical Machinery 1 1 73 200 122 200 122 10 Food Sales 3 3 5,368 150 6,715 150 6,715 11 Food Service 3 8 1,264 1,000 10,542 600 6,325 12 Gasoline And Oil 2 2 3,441 180 5,166 280 8,035 13 Health Services 2 2 1,114 250 2,323 100 929 14 Laboratories 3 3 8,007 150 10,017 150 10,017 15 Metal Products 1 1 1,697 150 2,123 150 2,123 16 Non-Profit 4 4 2,439 130 2,644 80 1,627 17 Offices 25 31 20,755 130 22,503 80 13,848 18 Personal Services 1 1 271 130 294 80 181 19 Retail Trade, Other 20 51 12,470 150 15,600 150 15,600 20 Schools 9 9 4,025 130 4,364 100 3,357 21 Specialty Food 1 1 277 150 347 150 347 22 Warehousing 5 5 1,665 150 2,083 150 2,083 23 Wholesale Trade 9 9 420 150 525 150 525 24 Sub-Total Non-Residential 99 141 73,172 122,836 97,514 25 Sewer System Total 8,355 9,280 701,443 906,707 881,385 Notes: 1.52% 10.43% 13.55% 11.06%
Line No: Description
(1) Average strength factors for BOD and TSS are based on the State Water Resources Control Board Revenue Program Guidelines, Appendix G.

B - 2
59 APPENDIX - B

CITY OF HERCULES, CA
Allocation of Sewer Costs - Test Year FY 2026
Line No: Description Sewer Costs Volume Capacity Strength - BOD Strength - SS Customer Total (Check)
Allocation Factors:
1 Treatment 14.09% 14.09% 36.42% 35.40% 0.00% 100.00%
2 Collection 50.00% 50.00% 0.00% 0.00% 0.00% 100.00%
3 Administration 0.00% 0.00% 0.00% 0.00% 100.00% 100.00% 4 Pumping 14.09% 14.09% 36.42% 35.40% 0.00% 100.00%
5 Customer Service 0.00% 0.00% 0.00% 0.00% 100.00% 100.00% 6 Transfers 40.00% 40.00% 10.00% 10.00% 0.00% 100.00%
7 CIP 14.09% 14.09% 36.42% 35.40% 0.00% 100.00%
8 Capital Outlay 14.09% 14.09% 36.42% 35.40% 0.00% 100.00% 9 Existing Debt 0.00% 0.00% 0.00% 0.00% 100.00% 100.00% 10 New Debt 14.09% 14.09% 36.42% 35.40% 0.00% 100.00%
Allocation of Costs:
11 Treatment 3,080,232$ 434,005$ 434,005$ 1,121,843$ 1,090,379$ -$ 3,080,232$ 12 Collection 321,347 160,674 160,673 - - - 321,347 13 Administration 1,746,738 - - - - 1,746,738 1,746,738 14 Pumping 60,564 8,533 8,533 22,058 21,440 - 60,564 15 Customer Service - - - - - - -
16 Transfers - - - - - - -
17 CIP 1,985,000 279,643 279,643 722,952 702,762 - 1,985,000 18 Capital Outlay - - - - - - -
19 Existing Debt 2,066,306 - - - - 2,066,306 2,066,306 20 New Debt - - - - - - -
21 Non-Rate Rev & Fund Balance (1,688,395) (160,969) (160,969) (340,380) (330,849) (695,228) (1,688,395) 22 Total 7,571,792$ 721,886$ 721,885$ 1,526,473$ 1,483,732$ 3,117,817$ 7,571,792$

9.53% 9.53% 20.16% 19.60% 41.18%
Total Units of Service 701,443 701,443 906,707 881,385 9,280 Units CCF CCF Pounds Pounds ERUs/Annually
Cost Per Unit 1.03$ 1.03$ 1.68$ 1.68$ 335.97$ Units CCF CCF Pounds Pounds ERUs/Annually
B - 3
60 APPENDIX - B

CITY OF HERCULES, CA
Sewer Cost of Service by Cost Component and Customer Class - Test Year FY 2026 [A] [B] [C] [D] [E] [F]
Volume Capacity Strength -
BOD Strength - SS Customer Total
1 Resid. Single Family 488,090$ 488,089$ 996,193$ 996,119$ 2,142,827$ 5,111,318$ 2 Multi-Family 154,359 154,359 315,048 315,024 890,325 1,829,115 3 Senior Housing 4,132 4,132 8,433 8,433 37,293 62,423 4 All Non-Residential Customers 75,305 75,304 206,799 164,156 47,372 568,936 5 Total 721,886$ 721,885$ 1,526,473$ 1,483,732$ 3,117,817$ 7,571,792$ Non-Residential Classes
Line No: Description
Residential Classes
B - 4
61 APPENDIX - B

CITY OF HERCULES, CA
Sewer Rate Calculation - Test Year FY 2026
[A] [B] [C]=[A]/[B] [D] [E]=[C]-[D] [F] [G] [H]=[F]/[G] [I] [J]=[H]-[I] Fixed Rate
Costs Annual ERUs
Proposed
Annual Fixed
Fee
Existing
Annual Fixed
Fee
Annual Fixed
Fee Difference
Volumetric
Rate Costs
Billable Annual
Volume (CCF)
Proposed
Volumetric
Rate
Existing
Volumetric
Rate
Volumetric
Rate
Difference
1 Resid. Single Family $ 5,111,318 6,378 $ 801.40 $ 625.80 $ 175.60 N/A N/A N/A N/A N/A 2 Multi-Family $ 1,829,115 2,650 $ 690.23 $ 625.80 $ 64.43 N/A N/A N/A N/A N/A 3 Senior Housing $ 62,423 111 $ 562.37 $ 427.16 $ 135.21 N/A N/A N/A N/A N/A 4 All Non-Residential Customers 47,372$ 141 $ 335.97 $ 120.00 $ 215.97 521,564$ 73,172 $ 7.13 $ 3.87 $ 3.26 Line No: Customer Class
Residential Classes
Non-Residential Classes
B - 5
62 APPENDIX - B

CITY OF HERCULES, CA
Sewer Revenue vs Cost of Service by Customer Class Check - Test Year FY 2026 [A] [B] [C]=[A]*[B] [D] [E] [F]=[D]*[E] [G]=[C]+[F] [H] [I]=[H]-[G] Annual ERUs
Proposed
Annual Fixed
Fee
Total Fixed
Fee Revenue
Billable
Annual
Volume (CCF)
Proposed
Volumetric
Rate
Total
Volumetric
Rate Revenues
Total
Calculated
Revenues Total COS
Difference
Calc vs COS
1 Resid. Single Family 6,378 801.40$ 5,111,318$ N/A N/A -$ 5,111,318$ 5,111,318$ -$ 2 Multi-Family 2,650 690.23$ 1,829,115$ N/A N/A -$ 1,829,115$ 1,829,115$ -$ 3 Senior Housing 111 562.37$ 62,423$ N/A N/A -$ 62,423$ 62,423$ -$ 4 All Non-Residential Customers 141 335.97$ 47,372$ 73,172 7.13$ 521,564$ 568,936$ 568,936$ -$ 5 Total 9,280 7,050,228$ 73,172 521,564$ 7,571,792$ 7,571,792$ -$ Line
No: Customer Class
Residential Classes
Non-Residential Classes
B - 6
63 27368 Via Industria, Suite 200
Temecula, CA 92590
800.755.6864 | Fax: 888.326.6864
www.willdan.com
64 NOTICE OF PUBLIC HEARING REGARDING

PROPOSED CHANGES TO ANNUAL SEWER RATES
Hearing Date & Time: July 22, 2025, 7:00 PM
Hearing Location: Hercules City Council Chambers
111 Civic Drive, Hercules, California 94547
Why are you receiving this notice?
The City of Hercules (City) is mailing this notice to you because you are a sewer customer, or record owner of property that receives sewer service. This notice is provided pursuant to California Constitution Article XIIID (also known as “Proposition 218”), which requires the City to notify property owners and customers of proposed changes to property - related fees such as those for sewer service. This notice describes proposed changes to the rates for this service and provides information about a public hearing to be held on July 22, 2025 , at 7:00 p.m., at the Hercules City Council Chambers, 111 Civic Drive, Hercules, CA 94547. If adopted, the proposed rates for sewer service will be in effect for the 2025-2026 Fiscal Year, which begins on July 1, 2025.

What do the sewer rates fund?
The City of Hercules provides wastewater collection and treatment services for residential, multi-family, and non - residential customers, and is committed to providing high quality, reliable service at the lowest possible rates. The service area includes about 8,300 properties served through 7,000 laterals , gravity sewer mains, force mains and lift stations, most of which were constructed after 1970. The City’s wastewater collection system collects and conveys an average dry weather flow of approximately 1.7 million gallons per day (MGD) of wastewater.

Wastewater generated by the City is conveyed to and treated by the Pinole -Hercules Water Pollution Control Plant (WPCP), located southwest of the City limits in the City of Pinole. The treatment plant can handle a daily flow of 4.06 million gallons and averages a daily flow of 3.50 million gallons. The plant ’s activated sludge process removes approximately 97% of the waste from the water , which is then disinfected and discharged safely into the deep waters of San Pablo Bay. The system is built exclusively f or sanitary waste and operates 24/7 to protect public health and the environment. While Hercules and Pinole share the WPCP, The City of Pinole handles the daily operations, and The City of Hercules reimburses Pinole for its respective share of WPCP operating and maintenance costs. All capital costs associated with the WPCP are split 50/50 between the City and The City of Pinole.

The Wastewater Department is funded by annual sewer fees charged to customers and must recover all its operating costs through these fees. This fee for wastewater service is reflected in your annual Contra Costa County property tax statement and pays for system operations and maintenance, personnel, electricity, fuel, chemicals, capital projects, debt repayment, administration, o ngoing repair and replacement of aging and worn system components throughout the wastewater system, as well as costs related to prudent long -term operational or financial ma nagement of the utility , such as maintaining adequate fund reserves and planning for contingencies . These charges are the primary source of revenue to operate and maintain the sewer collection and treatment systems and are used solely for this purpose.

The proposed annual rates are based on a comprehensive utility rate study and financial plan completed by an independent consultant. The rate structure was designed so that revenues derived from the proposed rates do not exceed the amount of revenue required for the City to provide the sewer collection and treatment services, nor will the revenue from the sewer rates be used for any purposes other than those for which they are imposed. The amount of the proposed rates imposed on any parcel or person as an i ncidence of their property ownership will not exceed the proportional cost of the service attributable to such parcel; and no rate will be imposed for service unless that service is actually used by, or immediately available to, the property owner or customer in question. The draft rate study prepared by the consultant is available for review with the City Clerk.

Why are the sewer rate changes needed?
The utility rate study and financial plan determined that the City’s current annual sewer rates are not sufficient to meet rising costs associated with system operations, inspections, and maintenance. These costs increase over time and include administrative support for operations, repair and replacement of aging system components, maintenance of designated reserves, and capital facilities projects to upgrade and modernize collection and treatment facilities. It is important to note that while these costs have increased each year, sewer rates have not increased since 2014. 65 These revenues will ensure continued quality uninterrupted sewer service , minimize occurrence of sanitary sewer overflows, and maintain the critical infrastructure that makes up a well-functioning wastewater system that is prepared for the future, and which ensures the health and safety of the community.

How the annual sewer rates are determined and how they work To develop sewer rates that generate sufficient revenue to meet the fiscal and policy objectives of the City, a determination of the annual revenue requirement from sewer rates was completed. As previously mentioned, the revenue requirement includes projected expenditures for operations, maintenance, inspections, repair and replacement of aging system components, equipment, debt repayment, and planned capital projects.

The revenue requirement also includes designated reserves. Maintaining appropriate reserve funds is critical to the ability of the City to serve its customers , manage cash flow fluctuations and respond to unforeseen events and costs. The reserves, like all elements of the sewer charges, may only be used to fund costs associated with the sewer system.

The revenue requirements were compared to the total sources of available funds under existing rates during each year of the forecast period to determine the adequacy of projected revenues to meet those requirements. Where a shortage of revenue was found, a series of revenue adjustments were calculated, which if implemented, will provide sufficient revenue to meet those needs.

The City has established sewer charges that are submitted to the Contra Costa County Auditor-Controller for inclusion on the annual secured property tax bill for property owners in the City. The rates charged for sewer service are approved by the City Council and are not subject to administrative review or approval by any other local or state agency. The City has historically adjusted rates, as necessary, to provide for recovery of financial obligations including operating expenses, debt service, capital expenditures, and any other expenses and transfers.

Proposed annual sewer charges are based on costs included in the revenue requirements and applied to various types of customers and properties based on their proportionate share of costs. Annual sewer rates consist of 1) a separate flat rate for different types of residential customers that is applied per dwelling unit regardless of their water usage, 2) a fixed fee for commercial/non-residential customers that designates the minimum amount they will pay by account, regardless of usage, and 3) a commercial/non-residential volumetric rate component per 100 cubic feet, based on metered water usage, that recovers the costs of treatment and disposal of wastewater.

New annual sewer rates
In order to provide necessary funding for the sewer system, the City is proposing to implement new annual sewer rates as a series of annual adjustments starting on July 1, 2025, and each July 1 thereafter until July 2029. The following table summarizes the maximum proposed sewer rates.

Proposed Annual Sewer Rates
July 1, 2025 – July 1, 2029

2026 2027 2028 2029 2030
Minimum Fixed Charge:

Single-Family Residence [1] 625.80$ 801.40$ 857.50$ 908.95$ 949.85$ 983.09$ Multi-Family Residence (per Dwelling Unit) [1] 625.80$ 690.23$ 738.55$ 782.86$ 818.09$ 846.72$ Senior Living (per Dwelling Unit) [1] [2] 427.16$ 562.37$ 601.74$ 637.84$ 666.54$ 689.87$ Non-Residential Metered (per Business) 120.00$ 335.97$ 359.49$ 381.06$ 398.21$ 412.14$ Volumetric Rates Per 100 Cubic Feet - Non-Residential Metered:

All Flow 3.87$ 7.13$ 7.63$ 8.08$ 8.45$ 8.74$ Notes:

Projected for Fiscal Year Ending June 30,
[1] All residential customers only pay a flat fee per dwelling unit, regardless of usage. [2] Apartments are currently charged the existing "Senior Living" flat fee per dwelling unit only, regardless of usage. Under the proposed rates, starting in FYE 2026, apartments will pay the "Multi-Family Residence" flat fee per dwelling unit only, regardless of usage.

Description Existing
Rates
66 Impact on your sewer bill
Per the proposed rates, the annual sewer charge for fiscal year FY 2 5-26 for a single-family residential customer would increase from the current $625.80 per year (equivalent to $52.15 per month) to $801.40 per year (equivalent to $66.78 per month).

How do you file a protest or participate in the public hearing? The City will consider the new sewer rates at a Public Hearing on Tuesday, July 22, 2025, at 7:00 p.m. at the Hercules City Council Chambers, 111 Civic Drive, Hercules, CA 94547. You are invited to present oral or written testimony at the Public Hearing. Any owner or customer of record of a parcel subject to the proposed rates may submit a written protest against the proposed rate revisions. If written protests are filed for a majority of the affected parcels, the proposed rate revisions may not be adopted. If you do not object to the proposed rate revisions to fund the operation, maintenance, and capital improvements for City sewer services, you do not need to take any action.

Written protests must include the following: a statement indicating that the identified property owner or customer of record is in opposition to the proposed sewer rate changes; the street address or Assessor's Parcel Number (APN) for the parcel(s) with respect to which the protest is made; and the name and signature of the owner or customer.

Written protests must be mailed, or hand delivered, to the City Clerk at 111 Civic Drive, Hercules, CA 94547, and must be received by 4:00 p.m. on July 22, 2025, or hand delivered to the City Clerk at the Public Hearing on July 22, 2025 before the conclusion of the Public Hearing. Protests submitted via e-mail or other electronic means will not be accepted.

For any written protest, whether mailed or submitted in person to the City Clerk , please identify on the front of the envelope that the enclosed protest is for the Public Hearing on the Proposed Rate Changes – Sewer Rates.

The City Council will hear and consider oral protests and comments of all interested persons to the proposed rate changes at the Public Hearing. Oral comments or protests at the Public Hearing will not qualify as formal protests unless accompanied by a written protest. While both property owners and customers of record may submit written protests, only one protest will be counted for each parcel. Upon the conclusion of the Public Hearing, if written protests, as outlined above, are not presented by a majority of property owners or customers of record, the City Council will be authorized to adopt the proposed rates. If adopted, the rates for sewer service will take effect for the fiscal year beginning July 1, 2025.

In accordance with Government Code section 53759, t here is a 120 -day statute of limitations for challenging any new, increased, or extended fee or charge, commencing from the later of the effective date of the new rates or of the date of the final passage, adoption, or approval of the resolution adopting the new rates.

67 CONSENT CALENDAR

AGENDA ITEMS

1. 25-217
68 111 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, July 8, 2025
CLOSED SESSION - 5:30 P.M.,REGULAR MEETING - 7:00 P.M
In-Person in Council Chambers or Via Zoom:

Zoom ID: 819 4260 3934 Zoom Passcode: 701154
Zoom Phone Number: 1-669-900-6833
I. SPECIAL CLOSED SESSION – CALL TO ORDER - ROLL CALL - 5:30 P.M. 1A-CONSIDER AND TAKE ACTION ON ANY REQUEST FROM A COUNCIL MEMBER TO

PARTICIPATE IN A MEETING REMOTELY DUE TO JUST CAUSE OR EMERGENCY CIRCUMSTANCES PURSUANT TO AB 2449
Council Member Dilli Bhattarai, Mayor D. Bailey, Vice Mayor C. Kelley, and Council Member A. Walker-Griffin

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

The City Attorney was not present at the meeting at this time. City Manager, Dante Hall, read the titles of the items to be discussed in Closed Session. City Council and Staff recessed into Closed Session.

1. 25-201

CONFERENCE WITH LEGAL COUNSEL PURSUANT TO
GOVERNMENT CODE SECTION 54956.9(d)(1) (Ramos v. City of Hercules)

2. 25-197
Pursuant to Government Code Section 54957.6 Conference With Labor Negotiators - City Negotiators: Dante Hall, City Manager; Edwin Gato,

69 July 8, 2025City Council Meeting Minutes
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

3. 25-198
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 Attorney, Negotiating Parties: City of Hercules, Rodeo Hercules Fire Protection District
IV. REGULAR MEETING – CONVENE TO OPEN SESSION - ROLL CALL - 7:00 P.M.

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

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

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

VII. MOMENT OF SILENCE
Mayor Bailey requested a moment of silence for longtime resident Leola Bullen.

70 July 8, 2025City Council Meeting Minutes
VIII. INTRODUCTIONS/PRESENTATIONS/COMMISSION REPORTS

1. 25-192 Proclamation - Recognizing July 2025 as Park and Recreation Month Proclamation - Park and Recreation MonthAttachments:

Mayor Bailey read the proclamation and recognized Park and Recreation month. Director Roke provided comment. Council made remarks.

Pictures were taken.

IX. AGENDA ADDITIONS/DELETIONS
NONE
X. PUBLIC COMMUNICATIONS
Public comment was provided by Ronnell Colquitt, Tanya Little and Stan Kelly.

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

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

XI. PUBLIC HEARINGS

1. 25-193
Mandatory Garbage/Solid Waste Disposal - Delinquent Accounts RECOMMENDATION:

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

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

City Clerk, Eibleis Melendez, introduced and presented the item.

Comments were provided Council. Mayor Bailey opened the Public Hearing. No public comment. Mayor Bailey closed the public hearing.

There was no further discussion by Council. Action was taken on this item.

MOTION: A motion was made by Vice Mayor Kelley, seconded by Council Member Walker-Griffin, to adopt Resolution 25-041. The motion carried by the

71 July 8, 2025City Council Meeting Minutes
following vote:

Aye: Council Member Dilli Bhattarai, Mayor D. Bailey, and Vice Mayor C. Kelley3 -

Absent: Council Member T. Grimsley1 -
Abstain: Council Member A. Walker-Griffin1 -
XII. CONSENT CALENDAR
MOTION: A motion was made by Council Member Walker-Griffin, seconded by Vice Mayor Kelley, to adopt the Consent Calendar. The motion carried by the following vote:

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

Absent: Council Member T. Grimsley1 -

1. 25-200
Meeting Minutes for the Regular Meeting of June 24, 2025 Meeting Minutes for the Regular Meeting of June24, 2025Attachments:

APPROVED

2. 25-190 Third Amendment to Contract #14-008 with Contract Costa County for Building Inspection and Planning Services
RECOMMENDATION:

Approve the Third Amendment to an existing agreement between the City of Hercules and Contra Costa County (Contract #14-008) to update the Conservation & Development (DCD) Department’s hourly billing rates for FY 2024/25, FY 2025/26, and 2026/27.

Staff Report - Amendment 3 to Contra Costa County Contract Attach 1 - Resolution - Amendment 3 CCC Building-Planning Services Contract
Exhibit A - CCC Building-Planning Services
Attach 2 - CCC Bulding-Planning Services Contract - Original Attach 3 - CCC Building-Planning Services Contract - Amend 1 Attach 4 - CCC Building-Planning Services Contract - Amend 2 Attach 5 - CCC Building-Planning Services
Attachments:

RESOLUTION 25-042. APPROVED

3. 25-199 MOU for Development of a Contra Costa Resilient Shoreline Plan through the Ocean Protection Council Senate Bill 1 Grant Program RECOMMENDATION:

By minute order, authorize the City Manager to execute the Memorandum of Understanding by and Between the City of Antioch, Contra Costa County, City of Hercules, City of Martinez, City of Oakley, City of Pinole, City of Pittsburg, and City of San Pablo for Development of a Contra Costa

72 July 8, 2025City Council Meeting Minutes
Resilient Shoreline Plan.

Staff Report - Development of A Contra Costa Resilient Shoreline Plan Attach 1 - SB1 Grant MOU County-Cities
Attachments:

APPROVED
XIII. DISCUSSION AND/OR ACTION ITEMS

1. 25-202 Authorization To Approve A Contract With Tripepi Smith For General Communications Support
RECOMMENDATION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute an agreement for an amount not to exceed $93,588 with Tripepi Smith for General Communications Support.

Staff Report - Contract With Tripepi Smith For General
Communications Support
Attach 1 - Resolution
Attach 2 - 2025-05 General Comms Proposal (2)
Attachments:

City Manager, Dante Hall, introduced and presented the item.

Representatives from Tripepi Smith attend via Zoom to answer questions.

No public comment. Council asked questions and provided remarks. City Manager Hall and Tripepi Smith provided a response. Action was take on this item.

MOTION: A motion was made by Council Member Walker-Griffin, seconded by Council Member Bhattarai, to adopt Resolution 25-043. The motion carried by the following vote:

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

Absent: Council Member T. Grimsley1 -

2. 25-191
Receive the Finance Commission’s Annual Report on Measures B and N for Fiscal Year Ending June 30, 2024
RECOMMENDATION:

Receive the Finance Commission’s Annual Report on Measures B and N for Fiscal Year Ending June 30, 2024.

Staff Report - Measure B and N Annual Report
Attach 1 - FC Annual Report on Measure B and N for FY Ending June 30, 2024
Presentation
Attachments:

Finance Director, Edwin Gato, introduced the item. Finance Chair, Ed Ulle, presented the item. No public comment. Council asked questions and provided remarks. Finance Chair Ulle and Finance Director Gato provided a response. This was an informational item. No action was taken.

73 July 8, 2025City Council Meeting Minutes

3. 25-185 Discussion Regarding the Structure of the Police Chief Advisory Board Meetings
RECOMMENDATION:

Staff recommends that the Council discuss this item and give direction to staff by minute order.

Staff Report - The Structure of the Police Chief Advisory Board Meetings
Attachments:

City Manager, Dante Hall, introduced and presented the item. Public comment was provided by Tanya Little. Council asked questions and provided comment. No direction was provided by Council. Action was taken on this item.

MOTION: A motion was made by Council Member Walker-Griffin, seconded by Vice Mayor Kelley, to continue the discussion of the structure of the Police Advisory Committee to a later date. The motion carried by the following vote:

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

Absent: Council Member T. Grimsley1 -

4. 25-194
Finance Department Update
RECOMMENDATION:

Receive an update on the City of Hercules Finance Department.

Staff Report - Finance Department Update
Presentation
Attachments:

Finance Director, Edwin Gato, introduced and presented the item. No public comment. Council asked and provided comment. Director Gato provided a response. This was an informational item. No action was taken on this item.

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

74 July 8, 2025City Council Meeting Minutes
XV. CITY COUNCIL/CITY MANAGER/CITY ATTORNEY ANNOUNCEMENTS,

COMMITTEE, SUB-COMMITTEE AND INTERGOVERNMENTAL COMMITTEE REPORTS

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

1. Regional Committee
a. Contra Costa Mayors Conference
b. Hercules/ Pinole - WasteWater Management
c. League of Cities
d. Water Emerg. Transportation Authority
e. WCCIWMA
f. WCCTAC
g. West Co. Mayors & Supervisors Assoc. Meeting
h. WestCat
I. MCE
j. CCTA
k. East Bay Wildfire Coalition of Governments

2. City Council Committees and Subcommittees
a. Econ. Dev. Subcommittee
b. Traffic and Public Safety Committee
c. East Bay Economic Development Alliance
d. Education Subcommittee

3. Commission Liaisons
a. Community & Library Services Commission
b. Finance Commission
c. Planning Commisison
The Cit Manager reported out on the 4th July celebration. Parks and Recreation Director, Christopher Roke, also reported out on the event and promoted upcoming events. City Attorney had no announcements.

1. Regional Committee
Council Member Walker-Griffin reported out on the Association of Bay Area Governments(ABAG) meeting. Vice Mayor Kelley reported out on West Contra Costa Transportation Authority Commission meeting and Mayor Bailey reported out on the WestCat meeting

2. City Council Committees and Subcommittees
No reports were provided

75 July 8, 2025City Council Meeting Minutes

3.Commission Liaisons
No reports were provided
Council Members reported out on events they attended throughout the City and County, which included the 4th of July Celebration and the Change of Command Ceremony for the Hercules Fire Department.

Mayor Bailey also provided an update to residents regarding the ongoing labor issues that Republic Services is currently experiencing. He provided updated information on what residents should be doing with their trash.

There were no future agenda items requests.

XVI. ADJOURNMENT
Mayor Bailey adjourned the meeting at 8:24pm.
_________________________________
Dion Bailey, Mayor
Attest:
_______________________________
Eibleis Melendez, City Clerk

76 DISCUSSION AND/OR ACTION ITEM

AGENDA ITEMS

1. 25-207

2. 25-208

3. 25-195

4. 25-210
77 STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of July 22, 2025
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Glenn Dombeck, Public Works Director/City Engineer SUBJECT: Declare Results of Protest Balloting Proceedings and Confirm Fiscal Year 2025/26 Assessments for Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1
RECOMMENDED ACTION:

City staff is recommending City Council take the following actions:

1. Adopt a Resolution Declaring the Results of the Ballot Tabulation Regarding the Proposed Increase to the Maximum Assessment Rate for Victoria by the Bay Landscaping and Lighting Assessment District No. 2002 -1 commencing Fiscal Year 2025/26; and

2. Adopt a Resolution Approving the Final Engineer’s Report, Confirming Diagram and Assessments, and Ordering Levy of Assessments for Fiscal Year 2025/26 for Victoria by the Bay L andscaping and Lighting Assessment District No. 2002 -1 pursuant to the Landscaping and Lighting Act of 1972; and

3. Adopt a Resolution Authorizing the City Manager and Finance Director to Execute Any and All Necessary Documentation to Repay the General Fund for Monies Loaned to Victoria by the Bay Landscaping and Lighting District in an Amount Not to Exceed $700,000 Over 10 Years and will bear no interest.

EXECUTIVE SUMMARY:

This agenda item is a continuation of the June 24, 2025 meeting where the City Council considered the proposed assessment increase for Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 (Victoria by the Bay LLAD). Following the public hearing on June 24, 2025, the ballots returned by Victoria by the Bay LLAD property owners were publicly tabulated outside City Council Chambers. 78 City staff recommend s City Council adopt resolutions to (1) declare the results of the Victoria by the Bay LLAD ballot tabulation, (2) approve the Fiscal Year 2025/26 Final Engineer’s Report , Confirming Diagram and Assessments , and (3) authorize the City Manager and Finance Director to repay the General Fund from the LLAD funds and to execute any and all documentation required to do so.

BACKGROUND:

In the fall of 2023 and spring of 2024, the City conducted Proposition 218 proceedings to increase assessments for the Victoria by the Bay LLAD to eliminate an increasing operating and fund deficit. Victoria by the Bay LLAD property owners did not approve the proposed increases, with votes of 77% to 23% in the fall of 2023 and 70.3% to 29.7% in the spring of 2024 , respectively. Since then, the Victoria by the Bay LLAD has incurred another year of operating deficit, bringing the projected beginning F iscal Year 2025/26 cumulative deficit to approximately $700,000.

On March 11, 2025, City Council authorized Proposition 218 proceedings to notice and ballot property owners within the Victoria by the Bay LLAD again to approve an assessment increase beginning in F iscal Year 2025/26 of $50 annually over a 10 -year period ($500 total). O n May 8, 202 5, notices and ballots were mailed to all affected property owners in the Victoria by the Bay LLAD, in accordance with Proposition 218. The instructions included that ballots had to be returned by mail by 5:00 PM on June 24, 2025, or in person by the conclusion of public testimony of the Public Hearing that same evening.

Immediately following the close of the public hearing on June 24, 2025, the returned ballots were publicly tabulated outside the City Council Chambers. Property owners voted

50.02% in favor of increasing the maximum assessment rates. Since a majority of the ballots returned, weighted by proposed assessment, were in support of the increase, the assessment increase commencing Fiscal Year 2025/26 can now be approved by City Council.

ANALYSIS:

Of the 794 ballots mailed to affected property owners within the Victoria by the Bay LLAD, 270 were returned and tabulated . Upon tabulating the 270 ballots returned, it was confirmed the Victoria by the Bay LLAD property owners approved the proposed assessment increase with 50.02% of the weighted ballots in favor and 49.98% opposed.

To levy assessments for the Victoria by the Bay LLAD in FY 2025/26, the City Council is required to approve the attached Victoria by the Bay LLAD Engineer’s Report and adopt the resolutions declaring the results of the ballot tabulation and confirming the Victoria by the Bay LLAD assessments.

79 The City was required by applicable government accounting practices to use General Fund money to cover the Victoria by the Bay LLAD negative cash deficit with an inter - fund loan. At this time, the City can begin to repay the General Fund the approximately $700,000. It is anticipated the Victoria by the Bay LLAD inter-fund loan will be repaid within 10 years.

FISCAL IMPACT:

Due to the ongoing operating and cumulative fund deficit, the Victoria by the Bay LLAD has relied on a n inter-fund loan from the City’s General Fund to cover expenses. With property owner approval of the increased assessments, the maintenance of public landscaping and lighting improvements within the Victoria by the Bay neighborhoods can continue at its current levels . The Victoria by the Bay LLAD annual operating deficit is anticipated to be eliminated in 5 years and the loan from the General Fund is anticipated to be repaid within a 10-year period.

ATTACHMENTS:

1. Resolution Declaring the Results of the Property Owner Protest Balloting Proceedings for the Victoria by the Bay LLAD.

2. Resolution Confirming Diagrams and F iscal Year 2025/26 Assessments for the Victoria by the Bay LLAD.

3. Resolution Authorizing the City Manager and Finance Director to Execute Any and All Necessary Documentation to Repay the General Fund for Monies Loaned to Victoria by the Bay Landscaping and Lighting District in an Amount Not to Exceed $700,000 Over 10 Years.

4. Final Engineers Report
80 RESOLUTION NO. 25-___

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

CALIFORNIA, DECLARING THE RESULTS OF THE PROPERTY OWNER

PROTEST BALLOT ING PROCEEDINGS CONDUCTED FOR A PROPOSED

INCREASE IN THE MAXIMUM ASSESSMENT RATE FOR THE VICTORIA BY THE BAY LANDSCAP ING AND LIGHTING ASSESSMENT DISTRICT NO. 2002 -1 COMMENCING FISCAL YEAR 202 5/26

WHEREAS, the City Council on behalf of the Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 (hereafter referred to as the “District”) by previous resolution initiated proceedings to conduct property owner protest balloting proceedings for the proposed increase in the maximum assessment rates within the District; and
WHEREAS, in accordance with the provisions of the California Constitution, Article XIIID, the Proposition 218 Omnibus Implementation Act and the Landscaping and Lighting Act of 1972 (collectively, “Assessment Law”) , the City Council has caused and conducted property owner protest balloting proceedings for the proposed increase in the maximum assessment rates within the District; and
WHEREAS, the proposed maximum assessment rate increases presented to each affected property owner of record within the District reflects their property’s benefit and proportional financial obligation for maintaining public landscaping and lighting improvements associated with the District . The notices and ballots for each property owner, clearly gave notice of a Public Hearing to be held on June 24, 2025 and stated that the proposed increase would raise the maximum annual assessment by $50 per year over a 10-year period ($500 total) beginning in Fiscal Year 2025/26. It also noted that this increase is in addition to the existing annual escalator equal to the change in the Consumer Price Index (CPI), and that b eginning in Fiscal Year 2035/36, the maximum assessment rates will increase by CPI only as they do now; and WHEREAS, following the conclusion of the public testimony and declaring the balloting period closed, the protest ballots returned by the landowners of record within the District territory were opened and tabulated outside the City Council Chambers on June 24, 2025, and the results of which are provided hereto.

81 NOW, THEREFORE, BE IT RESOLVED for the Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1, pursuant to the provisions of the California Constitution Article XIIID, as follows:
1 The above recitals are true and correct.
2 The property owner protest balloting proceedings were conducted with the affected property owners within the District for Fiscal Year 2025/26 as required by Assessment Law. Assessment ballots were mailed as required to the record owners of all affected properties proposed to be assessed within the District. The assessment ballots that were completed and received by the City Clerk prior to the close of the public input portion of the Public Hearing held on June 24, 2025 have been tabulated in accordance with Assessment Law.
3 The canvass of the protest ballots cast for the District and received prior to the close of the public input portion of the Public Hearing held on June 24, 2025, weighted according to the proportional financial obligation of the affected properties herein, is hereby approved and confirmed. The results of the ballot tabulation, weighted by assessment amount, is as follows:

50.02% in favor and 49.98% opposed.
4 The City Clerk is hereby directed to enter this Resolution on the minutes of this meeting, which shall constitute the official declaration of the result of such property owner protest proceeding.
5 This Resolution shall become effective immediately upon its adoption. 6 The City Clerk shall certify the adoption of this Resolution.

82 The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 22nd day of July 2025, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Dion Bailey
Mayor

ATTEST:

________________________________
Eibleis Melendez
City Clerk

83 RESOLUTION NO. 25-____

RESOLUTION OF THE CI TY COUNCIL OF THE CI TY OF HERCULES CONFIRMING DIAGRAM AND ASSESSMENTS FOR FISCAL YEAR 20 25/26

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

WHEREAS, the City of Hercules Victoria by the Bay Landscaping and Lighting Assessment District No. 2002 -1 (hereinafter referred to as the “District” ) was formed on May 14, 2002 by Resolution No. 02-050 of the City Council pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Section 22500 et. Seq. and State Law); and
WHEREAS, on March 11, 2025, the City Council adopted Resolution No. 25-011, designating Francisco & Associates as Engineer of Work for the District, authorizing Proposition 218 proceedings for the purposes of increasing assessment s for the District in Fiscal Year 202 5/26, and directing the filing of the Fiscal Year (FY) 202 5/26 Engineer’s Report, pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, on April 22, 2025, the City Council adopted Resolution No. 2 5-022 preliminarily approving the Engineer’s Report, declaring the intention to levy and collect assessments for FY 2025/26 within the District, and setting a public hearing for June 24, 2025; and
WHEREAS, on May 8, 202 5, the City Council mailed notices and ballots to property owners within the District to approve an increase to District maximum assessment rates pursuant to Proposition 218; and
WHEREAS, at the appointed time on June 2 4, 2025, the City Council conduct ed a public hearing at which all interested persons were afforded an opportunity to be heard. Approval of the FY 2025/26 Engineer’s Report and assessments for the District was continued to July 22, 2025 to allow for the tabulation of returned ballots; and

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

WHEREAS, the results of the ballot tabulation, weighted by proposed assessment amount, was 50.02% in favor and 49.98% opposed; and

WHEREAS, the Engineer’s Report, as filed, provides that the maximum assessment rate for the District will increase by $50 per year ove r a 10 -year period beginning in FY 2025/26. The increase is in addition to the annual escalator equal to the change in the Consumer Price Index (CPI) that is already in place . Beginning in FY 2035-36, the maximum annual assessments will increase by CPI only as they do now. 84 NOW, THEREFORE, BE IT RESOLVED by City Council of the City of Hercules as follows:

1. The Preliminary Engineer’s Report accept ed by the City Council on April 22, 2025, and as modified , if applicable, is hereby approved and adopted as the Final Engineer’s Report for the District for FY 2025/26.

2. The diagram showing assessment district boundary thereof and the proposed assessments contained in the Engineer’s Report and presented to the property owners of record within the District are hereby confirmed.

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

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

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

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

85 The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules he ld on the 22nd day of July 2025, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:

____________________________
Dion Bailey
Mayor

ATTEST:

________________________________
Eibleis Melendez
City Clerk

86 RESOLUTION NO. 25-____

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

AUTHORIZING THE CITY MANAGER AND FINANCE DIRECTOR TO

EXECUTE ANY AND ALL NECESSARY DOCUMENTATION TO REPAY THE

GENERAL FUND FOR MONIES LOANED TO VICTORIA BY THE BAY

LANDSCAPING AND LIGHTING DISTRICT IN AN AMOUNT NOT TO
EXCEED $7 00,000 OVER 1 0 YEARS

WHEREAS, the City of Hercules Victoria by the Bay Landscaping and Lighting Assessment District No. 2002 -1 (hereinafter referred to as the “District”) was formed on May 14, 2002 by Resolution No. 02-050 of the City Council pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Section 22500 et. Seq. and State Law); and
WHEREAS, in the fall of 2023 and spring of 2024, the City conducted Proposition 218 proceedings to increase assessments for the District to eliminate an increasing operating and fund deficit. District property owners did not approve the proposed increases, with votes of 77% to 23% in the fall of 2023 and 70.3% to 29.7% in the spring of 2024, respectively; and
WHEREAS, the District has since incurred another year of operating deficit, bringing the projected beginning Fiscal Year 2025/26 cumulative deficit to approximately $700,000, all of which standard accounting principles require the City to cover as an inter- fund loan from the General Fund; and
WHEREAS, o n March 11, 2025, City Council authorized Proposition 218 proceedings to notice and ballot property owners within the Victoria by the Bay LLAD again to approve an assessment increase beginning in Fiscal Year 2025/26 of $50 annually over a 10 -year period ($500 total). On May 8, 2025, notices and ballots were mailed to all affected property owners in the Victoria by the Bay LLAD, in accordance with Proposition 218. The instructions included that ballots had to be returned by mail by 5:00 PM on June 24, 2025, or in person by the conclusion of public testimony of the Public Hearing that same evening; and
WHEREAS, on March 11, 2025, the City Council adopted Resolution No. 25-011, designating Francisco & Associates as Engineer of Work for the District, authorizing Proposition 218 proceedings for the purposes of increasing assessment s for the District in Fiscal Year 2025/26, and directing the filing of the Fiscal Year (FY) 2025/26 Engineer’s Report, pursuant to the Landscaping and Lighting Act of 1972; and WHEREAS, on April 22, 2025, the City Council adopted Resolution No. 2 5-022 preliminarily approving the Engineer’s Report, declaring the intention to levy and collect assessments for FY 2025/26 within the District, and setting a public hearing for June 24, 2025; and
87 WHEREAS, on May 8, 202 5, the City Council mailed notices and ba llots to property owners within the District to approve an increase to District maximum assessment rates pursuant to Proposition 218; and
WHEREAS, at the appointed time on June 24, 2025, the City Council conducted a public hearing at which all interested persons were afforded an opportunity to be heard.

Approval of the FY 2025/26 Engineer’s Report and assessments for the District was continued to July 22, 2025 to allow for the tabulation of returned ballots; and

WHEREAS, by separate resolution s, the Council declared the results of the property owner protest ballot proceedings conducted for the District (50.02% in favor and

49.98% opposed) and levied the assessments based on the adopted map; and

WHEREAS, the City now desires to replenish the app roximately $700,000 in General Fund monies that were the subject of the inter-fund loan to the District.

NOW, THEREFORE, BE IT RESOLVED by City Council of the City of Hercules that the City Manager and City Finance Director are hereby authorized to use District funds to replenish the General Fund to cover all funds that were the subject of the inter-fund loan, in an amount that is approximately $700,000, which repayment will occur within 10 years and will bear no interest.

BE IT FURTHER RESOLVED that t he City Manager and Finance Director are authorized to execute any and all documentation necessary to effectuate the repayment authorized herein.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules he ld on the 22nd day of July 2025, by the following vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Dion Bailey
Mayor

ATTEST:

________________________________
Eibleis Melendez
City Clerk
88 City of Hercules
Victoria By The Bay
Landscaping and Lighting
Assessment District No. 2002-1
Fiscal Year 2025-26
Final Engineer’s Report

June 24, 2025
89 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 TABLE OF CONTENTS

TABLE OF CONTENTS

Page No.

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

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

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

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

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

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

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

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

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

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

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

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

90 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 DIRECTORY

i

CITY OF HERCULES

VICTORIA BY THE BAY

LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT No. 2002-1

FISCAL YEAR 2025-26

CITY COUNCIL MEMBERS AND STAFF

Dion Bailey
Mayor

Chris Kelley
Vice Mayor

Alexander Walker-Griffin
Council Member
Tiffany Grimsley
Council Member

Dilli Bhattarai
Council Member

Dante Hall
City Manager

Christie Crowl
City Attorney

Edwin Gato
Finance Director

Eibleis Melendez
City Clerk

Jeff Brown
Interim Public Works Director

Francisco & Associates
Assessment Engineer
91 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 SIGNATURES

ii

ENGINEER’S REPORT

CITY OF HERCULES

VICTORIA BY THE BAY

LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT No. 2002-1

FISCAL YEAR 2025-26

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

Dated: June 6, 2025 By______________________________ Eduardo R. Espinoza, P.E.

RCE No. 83709

I HEREBY CERTIFY that the enclosed Engineer’s Report, together with the Assessment Roll and Assessment Diagram thereto attached was filed with me on t he _____ day of April 2025.

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

I HEREBY CERTIFY that the enclosed Engineer’s Report, together with the Assessment Roll and Assessment Diagram, thereto attached, was approved and confirmed by the City Council of the City of Hercules , Contra Costa County, California, on the ____ _ day of April 2025.

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

92 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 ENGINEER’S REPORT

1 SECTION I

INTRODUCTION

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

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

The District is experiencing a funding shortfall, which is currently being covered by a de facto loan from the General Fund. A 5- year financial projection completed in May 2023 and an independent evaluation in October 2023 confirmed the shortfall would not be self- correcting. In the fall of 2023 and spring of 2024, the City conducted Proposition 218 proceedings to increase assessments in the Victoria by the Bay LLAD. Victoria by the Bay LLAD property owners did not approve the proposed increases, with votes of 77% to 23% in the fall and 70.3% to 29.7% in the spring respectively.

Current Annual Administration
As required by the Landscape and Lighting Act of 1972 (“1972 Act ”), this Engineer’s Report (“Report”) describes the improvements to be constructed, operated, maintained and serviced by the District for F iscal Year (FY) 2025-26, provides an estimated budget for the District and lists the assessments to be levied upon each assessable lot or parcel within the District. The District is currently experiencing annual operating deficits primarily due to the need for higher -level tree pruning work, increased irrigation watering due to climate change, and East Bay Municipal Utility District water rate increases. As noted above, the Victoria by the Bay LLAD property owners have not approved the last two proposed assessment increases and since then the Victoria by the Bay LLAD has 93 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 ENGINEER’S REPORT

2 incurred another year of operating deficit, bringing the projected beginning FY 2025/26 cumulative deficit to approximately $700,000. To address the annual operating deficit and cumulative fund deficit for the District, City Council is proposing to increase the maximum annual assessments for the District commencing with FY 2025- 26. On March 11, 2025, City Council adopted a resolution initiating the FY 2025/26 annual approval process and authorized Proposition 218 proceedings to notice and ballot property owners within the Victoria by the Bay LLAD again to approve an assessment increase beginning in FY 2025/26 of $50 annually over a 10- year period ($500 total). This proposed increase will be in addition to the annual escalator equal to the change in CPI that is already in place for the Victoria by the Bay LLAD. If the proposed assessment increase is approved by the Victoria by the Bay LLAD property owners, it is projected that the cumulative deficit will be paid back in 15 years. If the assessment increase is not approved by Victoria by the Bay LLAD property owners, cost cutting measures for the in-tract residential parkway strips will be implemented on July 1, 2025.

Increasing the maximum annual assessments for the District will require the City to conduct proceedings pursuant to Proposition 218, which includes mailing notices and ballots to affected property owners a minimum of 45 days prior to the public hearing on this matter that is scheduled for June 24, 2025. At the public hearing, the City will provide an opportunity for any interested person to provide testimony. After the public hearing input portion, the City Council will ask if there are any remaining ballots to be turned in or if anyone would like to change or withdraw their ballot. The tabulation of the ballots will be conducted on the same night as the public hearing and the results of the ballot tabulation will be presented to City Council. If a majority of ballots returned, weighted by proposed assessment, do not oppose the assessment increase then City Council can authorize the levy of the increased assessment commencing with FY 2025-26 by adopting a resolution confirming the levy and collection of the increased assessments.

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

94 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 ENGINEER’S REPORT

3 SECTION II

ENGINEER’S REPORT

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

OF THE CALIFORNIA STREETS AND HIGHWAYS CODE

CITY OF HERCULES

VICTORIA BY THE BAY

LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT No. 2002-1

FISCAL YEAR 2025-26

Pursuant to the Landscaping and Lighting Act of 1972 (Part 2 Division 15 of the Streets and Highways Code of the State of California, commencing with Section 22500), and in accordance with the Resolution of Intention, being Resolution No. 25-022 adopted by the City Council of the City of Hercules on April 22, 2025, I, Eduardo R. Espinoza, the duly appointed Engineer of Work, Assessment Engineer for the City of Hercules Victoria by the Bay Landscaping and Lighting Assessment District No. 2002-1 (the “District”) submit the following Report, consisting of Section I (Introduction), and this , Section II, which consists of five (5) parts as follows:

PART A: PLANS AND SPECIFICATIONS

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

PART B: ESTIMATE OF COST

This part contains an estimate of the cost of the proposed improvements to be maintained for FY 2025-26, including incidental costs and expenses in connection therewith. The estimate is attached hereto, and is on file in the Office of the Director of Public Works of the City of Hercules.

95 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 ENGINEER’S REPORT

4 PART C: ASSESSMENT DISTRICT DIAGRAM

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

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

PART D: METHOD OF APPORTIONMENT OF ASSESSMENTS

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

PART E: PROPERTY OWNER LIST & ASSESSMENT ROLL

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

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

96 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 PART A

5 PART A

PLANS AND SPECIFICATIONS

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

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

The “Neighborhood” improvements to be maintained generally include landscaping and streetlighting improvements located along public streets and the linear parks located within the Distric t. More specifically, the improvements to be maintained include trees, shrubs, vines, ground cover, turf, Victoria Park and Arbor Park improvements and in-tract streetlights. The services to be provided include, but are not limited to, litter and debris removal, graffiti abatement, irrigation system adjustment s, maintenance and repairs; landscape structure repairs and painting; pruning, staking, fertilizing, plant replacement and restoration; weed control; erosion control; tree trimming and removal of debris in the area.

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

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

Improvements means one or any combination of the following: the installation or planting of landscaping, the installation or construction of statuary, fountains, and other ornamental structures and facilities; the installation or construction of public lighting facilities; the installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, 97 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 PART A

6 or electrical facilities; the maintenance or servicing, or both, of any of the foregoing; the acquisition of any existing improvement otherwise authorized pursuant to this section.

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

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

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

98 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 PART B

7 PART B

ESTIMATE OF COST

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

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

The operation, maintenance and servicing costs for FY 2025-26 are summarized in Table 1 on the following page. These cost estimates were provided by the City of Hercules.

99 VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 PART B

8 TABLE 1

*All parcels in the City pay their share of special benefit conferred to property on a per ERU basis for costs related to the City's Arterials/Major Roads landscaping and streetlighting improvements. The FY 2025 -26 estimated budget for the City's Arterial/Major Roads landscaping and streetlighting improvements is approximately $370,000 and the transfer amounts for Arterials/Major Roads landscaping and lighting are based on an allocation to each parcel of $36.00/ERU.

REVENUES FY 2025-26
Assessments $567,815
Public Agency Assessments $8,943
General Benefit Contribution $13,454
TOTAL REVENUES: $590,212

ESTIMATED ANNUAL EXPENDITURES
Personnel $121,368
Transfer for Arterials/Major Roads L&L Maintenance $30,373 Landscaping, Open Space, and Associated Repairs $204,750 Tree Trimming $30,000
Electricity and Streetlight Repairs $50,000
Landscape and Facilities Water $230,000
Assessment Engineering Cost $5,475
Incidental / Direct Admin Cost $30,260
County Fees $854
TOTAL ANNUAL EXPENDITURES: $703,080

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

TOTAL EXPENDITURES
TOTAL ANNUAL AND CIP EXPENDITURES: $728,080

FUND BALANCE INFORMATION
Beginning Balance - Projected July 1, 2025 ($702,481)
FY 2025-26 Reserve Collection Increase/(Decrease) ($137,868) Ending Balance - Projected June 30, 2026 ($840,348)
Recommended Operating Reserves $364,040
Available Operating Reserves ($840,348)
Available Capital Reserves $0

DISTRICT STATISTICS
Total Parcels 839
Total Parcels Levied 794
Total Equivalent Residential Units (ERU) 843.682
Maximum Levy per Benefit Unit $683.62
Applied Levy per Benefit Unit $683.62
LANDSCAPING AND LIGHTING DISTRICT NO. 2002-1
(VICTORIA BY THE BAY)

PROPOSED INCOME AND EXPENSE
FISCAL YEAR 2025-26
100
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 PART C

9 PART C

ASSESSMENT DISTRICT DIAGRAM

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

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

A reduced copy of the Assessment Diagram is shown on the following page.

101
/67/105/116/121/32/111/102/32/72/101/114/99/117/108/101/115 /80/82/69/80/65/82/69/68/32/66/89/32/70/82/65/78/67/73/83/67/79/32/38/32/65/83/83/79/67/73/65/84/69/83/44/32/73/78/67 /46/45/44
/56/48
/66/69/76
/65/76/70/82/69/68/32/78/79/66/69/76
/76/73/78/85/83/32/80/65/85/76/73/78/71
/74/65/77/69/83/32/87/65/84/83/79/78
/83/65/78/32/80/65/66/76/79
/83/65/78/32/80/65/66/76/79
/83/80/73/78/78/65/75/69/82
/76/65/78/84/69/82/78/32/66/65/89
/65/82/66/79/82/32/66/65/89
/76/65/78/84/69/82/78/32/66/65/89
/87/72/73/84/69/32/67/65/80/32/67/79/86/69
/87/65/84/69/82/77/65/82/75
/77/65/82/73/84/73/77/69
/84/82/69/76/76/73/83/32/66/65/89
/86/73/67/84/79/82/73/65
/67/82/69/83/67/69/78/84
/83/72/69/76/84/69/82/32/66/65/89
/83/72/69/76/84/69/82/32/66/65/89
/84/85/71/32/66/79/65/84
/83/72/69/76/84/69/82/32/66/65/89
/68/82/73/70/84/87/79/79/68/32/67/79/86/69/83/65/76/84/32/83/80/82/65/89 /83/72/79/82/69/66/73/82/68
/68/79/67/75/83/73/68/69/32/66/65/89
/86/73/67/84/79/82/73/65/32/67/82/69/83/67/69/78/84
/87/65/86/69/82/76/89
/87/65/86/69/82/76/89
/76/65/85/82/69/76/87/79/79/68
/67/82/65/70/84/83/77/65/78
/67/82/69/80/69/32/77/89/82/84/76/69
/77/65/89/66/69/67/75
/87/72/73/84/69/32/66/73/82/67/72
/67/79/80/80/69/82
/66/69/69/67/72
/71/76/69/78
/70/76/79/87/69/82/73/78/71/32/65/83/72
/83/84/79/78/69/32/80/73/78/69
/67/82/65/66/65/80/80/76/69
/83/87/69/69/84/32
/71/85/77 /74/65/67/65/82/65/78/68/65
/67/65/77/69/76/73/65
/67/89/80/82/69/83/83
/67/82/65/70/84/83/77/65/78
/76/73/78/85/83/32/80/65/85/76/73/78/71
/69/85/75/65/76/89/80/84/85/83/32/75/78/79/76/76
/86/73/67/84/79/82/73/65/32/67/82/69/83/67/69/78/84
/86/73/67/84/79/82/73/65/32/67/82/69/83/67/69/78/84
/83/67/72/79/79/78/69/82/32/67/79/86/69
/78/65/85/84/73/67/65/76/32/67/79/86/69
/84/82/69/83/84/76/69/32/67/79/86/69
/86/73/67/84/79/82/73/65/32/80/65/82/75
/82/69/71/65/84/84/65/32/80/79/73/78/84
/82/79/67/75/32/72/65/82/66/79/82/32/80/79/73/78/84
/83/72/69/76/84/69/82/32/66/65/89
/82/69/71/65/84/84/65/32/80/79/73/78/84
/67/73/84/89/32/79/70/32/72/69/82/67/85/76/69/83
/76/65/78/68/83/67/65/80/73/78/71/32/38/32/76/73/71/72/84/73/78/71/32/68/73/83/84/82/73/67/84 /65/83/83/69/83/83/77/69/78/84/32/68/73/65/71/82/65/77
/76/76/65/68/32/50/48/48/50/45/49
/78
/80/114/111/106/47/72/101/114/99/117/108/101/115/47/70/89/49/50/45/49/51/47/68/105/97/103/114/97/109/115/47/50/48/48/50/45/49/95/100/105/97/103/114/97/109/46/112/100/102/32/32/40/48/52/45/49/53/45/49/48/32/83/65/41 /80/97/114/99/101/108/115/32/108/111/99/97/116/101/100/32/119/105/116/104/105/110 /116/104/101/32/76/76/65/68/32/50/48/48/50/45/49
/67/105/116/121/32/76/105/109/105/116
/76/69/71/69/78/68
/66/97/115/101/109/97/112
/76/76/65/68/32/50/48/48/50/45/49/32/66/111/117/110/100/97/114/121 /76/76/65/68/32/50/48/48/50/45/49
102
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 PART D

11 PART D

METHOD OF APPORTIONMENT OF ASSESSMENTS

INTRODUCTION

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

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

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

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

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

GENERAL BENEFIT

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

Neighborhood Improvements: There is insignificant flow through traffic for the in-tract neighborhood streets associated with the District . However, to acknowledge the rare and incidental occasion on which residents commencing from a location outside the boundar ies of the District utilize the in -tract neighborhood streets to access other destinations outside the boundary of the 103
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 PART D

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

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

SPECIAL BENEFIT

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

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

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

• The aesthetic value of green space;
• Improved aesthetic appeal of nearby parcels;
• Enhanced adaptation of the urban environment within the natural environment;
• Improved erosion control;
• Improved dust and debris control;
104
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 PART D

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

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

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

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

ASSESSMENT METHODOLOGY

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

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

105
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 PART D

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

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

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

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

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

3.0 Persons per Unit
Benefit = 0.25 (2,600 / 2) + 0.75 (900 / 2)
(6,000 / 3) (2,300 / 3)
MFR Benefit = 0.16 + 0.44 = 0.60 ERU
106
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 PART D

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

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

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

Lot Frontage x 100 / 8,485 = ERUs

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

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

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

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

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

107
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 PART D

16 CALCULATION OF ASSESSMENTS

The costs shown in Table 1 of Part B (Estimate of Cost) have been distributed amongst the various parcels of land within the District in accordance with the assessment methodology described above to determine the FY 2025-26 maximum assessments.

Through Proposition 218 proceedings, the City is proposing to increase the current Victoria by the Bay LLAD maximum assessments beginning in FY 2025- 26 by $50 annually over a 10-year period ($500 total). This proposed increase will be in addition to the annual escalator equal to the change in CPI that is already in place.

The table below provides a summary of the currently authorized maximum assessments and the proposed maximum assessments for FY 2025-26 by land use classification.

Following Fiscal Year 2034- 35, the maximum annual assessments will be increased annually by the change in the San Francisco Bay Region All Urban Consumers, Consumer Price Index (CPI).

MAXIMUM ASSESSMENT

For any given fiscal year, the amount of the assessment will not exceed the maximum amounts established in this Report, including the proposed increases described above commencing FY 2025-26, unless proceedings are conducted and affirmed in accordance with Article XIIID, Section 4 of the California Constitution.

DURATION OF ASSESSMENTS

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

District
Land Use
Classification
FY 2025-26
Current Maximum
Assessment
FY 2025-26
Proposed Maximum
Assessment
Single-Family Residence $633.62 $683.62
Vacant Single-Family $158.41 $170.91
Multi-Family Residential $380.17 $410.17
Deed-Restricted Affordable Housing Unit $190.09 $205.09 108
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 PART E

17 PART E

PROPERTY OWNER LIST & ASSESSMENT ROLL

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

This list is keyed to the Assessor’s Parcel Numbers as shown on the Assessment Roll, which includes the proposed amount of assessments for FY 2025-26 apportioned to each lot or parcel. The Assessment Roll is on file in the Office of the City Clerk of the City of Hercules and is shown in this Report as Appendix “C”.

The total proposed assessment for FY 2025-26 is $576,757.86.

109
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 APPENDIX A

A-1

APPENDIX “A”

IMPROVEMENTS DIAGRAM
110
##
#
#
#
# #
#
#
#
#
#
#
#
# #
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
# ##
#
#
#
#
# #
#
#
#
#
#
#
###
#
#
#
#
#
# #
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
# #
#
#
###
###
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
#
## #
#
##
## #
#
## #
#
##
##
#
# #
#
#
#
#
#
# ####
#
#
# #
#
#
#
#
#
##
#
###
#
#
#
#
#
#
#
#
#
#
#
##
# #
##
#
#
##
#
#
# #
#
#
# #
# #
# #
#
##
#
#
# #
# #
#
#
#
#
#
#
LLAD NO. 2002-1

NEIGHBORHOOD MAINTENANCE IMPROVEMENT DIAGRAM
Regatta Point
Victoria Crescent West
Rock Harbor Point
Lantern Bay
San Pablo Avenue
Victoria Crescent East
Victoria Crescent West
Craftsman Drive
Crepe Myrtle Drive
Trestle Cove
0 500
Feet
±

VICTORIA
PARK
ARBOR
PARK

SHORELINE PARK
(CITYWIDE - ZONE 10)
LEGEND
# STREET LIGHTS

DISTRICT BOUNDARY
PARKS

LANDSCAPING

PARCELS
2002-1 PARCELS
111
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 APPENDIX B

B-1

APPENDIX “B”

PUBLIC PROPERTY ASSESSMENTS
112
APN LocationOwner/Use ERUUnits Acres
Neighborhood
Amount

CITY OF HERCULES

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

PUBLIC PROPERTY ASSESSMENTS
FY 2025-26
404030045 VICTORIA CRESCENTCity/Open Space 0 11.402 0.589 $402.64 404520035 VICTORIA CRESCENTCity/Park 0 2.500 12.493 $8,540.46 Total: 0 13.902 13.082 $8,943.10
B- 2
113
VICTORIA BY THE BAY LANDSCAPING AND LIGHTING FY 2025-26 ASSESSMENT DISTRICT No. 2002-1 APPENDIX C

C-1

APPENDIX “C”

ASSESSMENT ROLL

114

CITY OF HERCULES

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

ASSESSMENT ROLL
FISCAL YEAR 2025-26
Assessor's
Parcel
Number
Neighborhood
Amount
404030045 $402.64
404030050 $27,071.34
404500001 $683.62
404500002 $683.62
404500003 $683.62
404500004 $683.62
404500005 $683.62
404500006 $683.62
404500007 $683.62
404500008 $683.62
404500009 $683.62
404500010 $683.62
404500011 $683.62
404500012 $683.62
404500013 $683.62
404500014 $683.62
404500015 $683.62
404500016 $683.62
404500017 $683.62
404500018 $683.62
404500019 $683.62
404500020 $683.62
404500021 $683.62
404500022 $683.62
404500023 $683.62
404500024 $683.62
404500025 $683.62
404500026 $683.62
404500027 $683.62
404500028 $683.62
404500029 $683.62
404500030 $683.62
404500031 $683.62
404500032 $683.62
404500033 $683.62
404500034 $683.62
404500035 $683.62
404500036 $683.62
404500037 $683.62
404500038 $683.62
404500039 $683.62
404500040 $683.62
404500041 $683.62
404500042 $683.62
404500043 $683.62
404500044 $683.62
404500045 $683.62
404500046 $683.62
404500047 $683.62
404500048 $683.62
404500049 $683.62
404500050 $683.62
404500051 $683.62
404500052 $683.62
Assessor's
Parcel
Number
Neighborhood
Amount
404500053 $683.62
404500054 $683.62
404500055 $683.62
404500056 $683.62
404500057 $683.62
404500058 $683.62
404500059 $683.62
404500060 $683.62
404500061 $683.62
404510001 $683.62
404510002 $683.62
404510003 $683.62
404510004 $683.62
404510005 $683.62
404510006 $683.62
404510007 $683.62
404510008 $683.62
404510009 $683.62
404510010 $683.62
404510011 $683.62
404510012 $683.62
404510013 $683.62
404510014 $683.62
404510015 $683.62
404510016 $683.62
404510017 $683.62
404510018 $683.62
404510019 $683.62
404510020 $683.62
404510021 $683.62
404510022 $683.62
404510023 $683.62
404510024 $683.62
404510025 $683.62
404510026 $683.62
404510027 $683.62
404510028 $683.62
404510029 $683.62
404510030 $683.62
404510031 $683.62
404510032 $683.62
404510033 $683.62
404510034 $683.62
404510035 $683.62
404510036 $683.62
404510037 $683.62
404510038 $683.62
404510039 $683.62
404510040 $683.62
404510041 $683.62
404510042 $683.62
404510043 $683.62
404510044 $683.62
404510045 $683.62
Assessor's
Parcel
Number
Neighborhood
Amount
404510046 $683.62
404510047 $683.62
404510048 $683.62
404510049 $683.62
404510050 $683.62
404510051 $683.62
404510052 $683.62
404510053 $683.62
404510054 $683.62
404510055 $683.62
404510056 $683.62
404520001 $683.62
404520002 $683.62
404520003 $683.62
404520004 $683.62
404520005 $683.62
404520006 $683.62
404520007 $683.62
404520008 $683.62
404520009 $683.62
404520010 $683.62
404520011 $683.62
404520012 $683.62
404520013 $683.62
404520014 $683.62
404520015 $683.62
404520016 $683.62
404520017 $683.62
404520018 $683.62
404520019 $683.62
404520020 $683.62
404520021 $683.62
404520022 $683.62
404520023 $683.62
404520024 $683.62
404520025 $683.62
404520026 $683.62
404520027 $683.62
404520028 $683.62
404520029 $683.62
404520030 $683.62
404520031 $683.62
404520032 $683.62
404520033 $683.62
404520034 $683.62
404520035 $8,540.46
404530001 $683.62
404530002 $683.62
404530003 $683.62
404530004 $683.62
404530005 $683.62
404530006 $683.62
404530007 $683.62
404530008 $683.62
04/10/25
C-2
115

CITY OF HERCULES

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

ASSESSMENT ROLL
FISCAL YEAR 2025-26
Assessor's
Parcel
Number
Neighborhood
Amount
404530009 $683.62
404530010 $683.62
404530011 $683.62
404530012 $683.62
404530013 $683.62
404530014 $683.62
404530015 $683.62
404530016 $683.62
404530017 $683.62
404530018 $683.62
404530019 $683.62
404530020 $683.62
404530021 $683.62
404530022 $683.62
404530023 $683.62
404530024 $683.62
404530025 $683.62
404530026 $683.62
404530027 $683.62
404530028 $683.62
404530029 $683.62
404530030 $683.62
404530031 $683.62
404530032 $683.62
404530033 $683.62
404530034 $683.62
404530035 $683.62
404530036 $683.62
404540001 $683.62
404540002 $683.62
404540003 $683.62
404540004 $683.62
404540005 $683.62
404540006 $683.62
404540007 $683.62
404540008 $683.62
404540009 $683.62
404540010 $683.62
404540011 $683.62
404540012 $683.62
404540013 $683.62
404540014 $683.62
404540015 $683.62
404540016 $683.62
404540017 $683.62
404540018 $683.62
404540019 $683.62
404540020 $683.62
404540021 $683.62
404540022 $683.62
404540023 $683.62
404540024 $683.62
404540025 $683.62
404540026 $683.62
Assessor's
Parcel
Number
Neighborhood
Amount
404540027 $683.62
404540028 $683.62
404540029 $683.62
404540030 $683.62
404540031 $683.62
404540032 $683.62
404540033 $683.62
404540034 $683.62
404540035 $683.62
404540036 $683.62
404540037 $683.62
404540038 $683.62
404540039 $683.62
404550001 $683.62
404550002 $683.62
404550003 $683.62
404550004 $683.62
404550005 $683.62
404550006 $683.62
404550007 $683.62
404550008 $683.62
404550009 $683.62
404550010 $683.62
404550011 $683.62
404550012 $683.62
404550013 $683.62
404550014 $683.62
404550015 $683.62
404560001 $683.62
404560002 $683.62
404560003 $683.62
404560004 $683.62
404560005 $683.62
404560006 $683.62
404560007 $683.62
404560008 $683.62
404560009 $683.62
404560010 $683.62
404560011 $683.62
404560012 $683.62
404560013 $683.62
404560014 $683.62
404560015 $683.62
404560016 $683.62
404560017 $683.62
404560018 $683.62
404560019 $683.62
404560020 $683.62
404560021 $683.62
404560022 $683.62
404560023 $683.62
404560024 $683.62
404560025 $683.62
404560026 $683.62
Assessor's
Parcel
Number
Neighborhood
Amount
404560027 $683.62
404560028 $683.62
404560029 $683.62
404560030 $683.62
404560031 $683.62
404560032 $683.62
404560033 $683.62
404560034 $683.62
404560035 $683.62
404560036 $683.62
404560037 $683.62
404560038 $683.62
404560039 $683.62
404560040 $683.62
404560041 $683.62
404560042 $683.62
404560043 $683.62
404560044 $683.62
404560045 $683.62
404570001 $683.62
404570002 $683.62
404570003 $683.62
404570004 $683.62
404570005 $683.62
404570006 $683.62
404570007 $683.62
404570008 $683.62
404570009 $683.62
404570010 $683.62
404570011 $683.62
404570012 $683.62
404570013 $683.62
404570014 $683.62
404570015 $683.62
404570016 $683.62
404570017 $683.62
404570018 $683.62
404570019 $683.62
404570020 $683.62
404570021 $683.62
404570022 $683.62
404570023 $683.62
404570024 $683.62
404570025 $683.62
404570026 $683.62
404570027 $683.62
404570028 $683.62
404570029 $683.62
404570030 $683.62
404570031 $683.62
404570032 $683.62
404570033 $683.62
404570034 $683.62
404570035 $683.62
04/10/25
C-3
116

CITY OF HERCULES

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

ASSESSMENT ROLL
FISCAL YEAR 2025-26
Assessor's
Parcel
Number
Neighborhood
Amount
404570036 $683.62
404570037 $683.62
404570038 $683.62
404570039 $683.62
404570040 $683.62
404570041 $683.62
404570042 $683.62
404570043 $683.62
404570044 $683.62
404570045 $683.62
404570046 $683.62
404570047 $683.62
404570048 $683.62
404570049 $683.62
404570050 $683.62
404570051 $683.62
404570052 $683.62
404570053 $683.62
404570054 $683.62
404570055 $683.62
404570056 $683.62
404570057 $683.62
404580001 $683.62
404580002 $683.62
404580003 $683.62
404580004 $683.62
404580005 $683.62
404580006 $683.62
404580007 $683.62
404580008 $683.62
404580009 $683.62
404580010 $683.62
404580011 $683.62
404580012 $683.62
404580013 $683.62
404580014 $683.62
404580015 $683.62
404580016 $683.62
404580017 $683.62
404580018 $683.62
404580019 $683.62
404580020 $683.62
404580021 $683.62
404580022 $683.62
404580023 $683.62
404580024 $683.62
404580025 $683.62
404580026 $683.62
404580027 $683.62
404580028 $683.62
404580029 $683.62
404580030 $683.62
404580031 $683.62
404580032 $683.62
Assessor's
Parcel
Number
Neighborhood
Amount
404580033 $683.62
404580034 $683.62
404580035 $683.62
404580036 $683.62
404580037 $683.62
404580038 $683.62
404580039 $683.62
404580040 $683.62
404580041 $683.62
404580042 $683.62
404580043 $683.62
404580044 $683.62
404580045 $683.62
404580046 $683.62
404580047 $683.62
404580048 $683.62
404580049 $683.62
404580050 $683.62
404580051 $683.62
404580052 $683.62
404580053 $683.62
404580054 $683.62
404580055 $683.62
404580056 $683.62
404580057 $683.62
404580058 $683.62
404580059 $683.62
404580060 $683.62
404580061 $683.62
404580062 $683.62
404580063 $683.62
404580064 $683.62
404580065 $683.62
404580066 $683.62
404580067 $683.62
404580068 $683.62
404580069 $683.62
404580070 $683.62
404580071 $683.62
404580072 $683.62
404580073 $683.62
404580074 $683.62
404580075 $683.62
404580076 $683.62
404580077 $683.62
404580078 $683.62
404580079 $683.62
404580080 $683.62
404580081 $683.62
404590001 $683.62
404590002 $683.62
404590003 $683.62
404590004 $683.62
404590005 $683.62
Assessor's
Parcel
Number
Neighborhood
Amount
404590006 $683.62
404590007 $683.62
404590008 $683.62
404590009 $683.62
404590010 $683.62
404590011 $683.62
404590012 $683.62
404590013 $683.62
404590014 $683.62
404590015 $683.62
404590016 $683.62
404590017 $683.62
404590018 $683.62
404590019 $683.62
404590020 $683.62
404590021 $683.62
404590022 $683.62
404590023 $683.62
404590024 $683.62
404590025 $683.62
404590026 $683.62
404590027 $683.62
404590028 $683.62
404590029 $683.62
404590030 $683.62
404590031 $683.62
404590032 $683.62
404590033 $683.62
404590034 $683.62
404590035 $683.62
404590036 $683.62
404590037 $683.62
404590038 $683.62
404590039 $683.62
404590040 $683.62
404590041 $683.62
404590042 $683.62
404590043 $683.62
404590044 $683.62
404590045 $683.62
404590046 $683.62
404590047 $683.62
404590048 $683.62
404590049 $683.62
404590050 $683.62
404590051 $683.62
404590052 $683.62
404590053 $683.62
404590054 $683.62
404590055 $683.62
404590056 $683.62
404590057 $683.62
404590058 $683.62
404590059 $683.62
04/10/25
C-4
117

CITY OF HERCULES

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

ASSESSMENT ROLL
FISCAL YEAR 2025-26
Assessor's
Parcel
Number
Neighborhood
Amount
404590060 $683.62
404590061 $683.62
404590062 $683.62
404590063 $683.62
404590064 $683.62
404590065 $683.62
404590066 $683.62
404590067 $683.62
404590068 $683.62
404590069 $683.62
404590070 $683.62
404590071 $683.62
404590072 $683.62
404590073 $683.62
404590074 $683.62
404590075 $683.62
404590076 $683.62
404590077 $683.62
404590078 $683.62
404590079 $683.62
404590080 $683.62
404590081 $683.62
404590082 $683.62
404590083 $683.62
404590084 $683.62
404590085 $683.62
404590086 $683.62
404590087 $683.62
404590088 $683.62
404590089 $683.62
404590090 $683.62
404590091 $683.62
404590092 $683.62
404590093 $683.62
404590094 $683.62
404590095 $683.62
404590096 $683.62
404590097 $683.62
404590098 $683.62
404590099 $683.62
404590100 $683.62
404590101 $683.62
404590102 $683.62
404590103 $683.62
404590104 $683.62
404590105 $683.62
404590106 $683.62
404590107 $683.62
404590108 $683.62
404590109 $683.62
404590110 $683.62
404590111 $683.62
404590112 $683.62
404590113 $683.62
Assessor's
Parcel
Number
Neighborhood
Amount
404590114 $683.62
404590115 $683.62
404590116 $683.62
404590117 $683.62
404600001 $683.62
404600002 $683.62
404600003 $683.62
404600004 $683.62
404600005 $683.62
404600006 $683.62
404600007 $683.62
404600008 $683.62
404600009 $683.62
404600010 $683.62
404600011 $683.62
404600012 $683.62
404600013 $683.62
404600014 $683.62
404600015 $683.62
404600016 $683.62
404600017 $683.62
404600018 $683.62
404600019 $683.62
404600020 $683.62
404600021 $683.62
404600022 $683.62
404600023 $683.62
404600024 $683.62
404600025 $683.62
404600026 $683.62
404600027 $683.62
404600028 $683.62
404600029 $683.62
404600030 $683.62
404600031 $683.62
404600032 $683.62
404600033 $683.62
404610001 $683.62
404610002 $683.62
404610003 $683.62
404610004 $683.62
404610005 $683.62
404610006 $683.62
404610007 $683.62
404610008 $683.62
404610009 $683.62
404610010 $683.62
404610011 $683.62
404610012 $683.62
404610013 $683.62
404610014 $683.62
404610015 $683.62
404610016 $683.62
404610017 $683.62
Assessor's
Parcel
Number
Neighborhood
Amount
404610018 $683.62
404610019 $683.62
404610020 $683.62
404610021 $683.62
404610022 $683.62
404610023 $683.62
404610024 $683.62
404610025 $683.62
404610026 $683.62
404610027 $683.62
404610028 $683.62
404610029 $683.62
404610030 $683.62
404610031 $683.62
404610032 $683.62
404610033 $683.62
404610034 $683.62
404610035 $683.62
404610036 $683.62
404610037 $683.62
404610038 $683.62
404610039 $683.62
404610040 $683.62
404610041 $683.62
404620001 $683.62
404620002 $683.62
404620003 $683.62
404620004 $683.62
404620005 $683.62
404620006 $683.62
404620007 $683.62
404620008 $683.62
404620009 $683.62
404620010 $683.62
404620011 $683.62
404620012 $683.62
404620013 $683.62
404620014 $683.62
404620015 $683.62
404620016 $683.62
404620017 $683.62
404620018 $683.62
404620019 $683.62
404620020 $683.62
404620021 $683.62
404620022 $683.62
404620023 $683.62
404620024 $683.62
404620025 $683.62
404620026 $683.62
404620027 $683.62
404620028 $683.62
404620029 $683.62
404620030 $683.62
04/10/25
C-5
118

CITY OF HERCULES

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

ASSESSMENT ROLL
FISCAL YEAR 2025-26
Assessor's
Parcel
Number
Neighborhood
Amount
404620031 $683.62
404620032 $683.62
404620033 $683.62
404620034 $683.62
404620035 $683.62
404620036 $683.62
404620037 $683.62
404620038 $683.62
404620039 $683.62
404620040 $683.62
404620041 $683.62
404620042 $683.62
404620043 $683.62
404620044 $683.62
404620045 $683.62
404620046 $683.62
404620047 $683.62
404620048 $683.62
404620049 $683.62
404620050 $683.62
404620051 $683.62
404620052 $683.62
404620053 $683.62
404620054 $683.62
404620055 $683.62
404620056 $683.62
404620057 $683.62
404620058 $683.62
404620059 $683.62
404640001 $683.62
404640002 $683.62
404640003 $683.62
404640004 $683.62
404640005 $683.62
404640006 $683.62
404640007 $683.62
404640008 $683.62
404640009 $683.62
404640010 $683.62
404640011 $683.62
404640012 $683.62
404640013 $683.62
404640014 $683.62
404640015 $683.62
404640016 $683.62
404640017 $683.62
404640018 $683.62
404640019 $683.62
404640020 $683.62
404640021 $683.62
404680001 $683.62
404680002 $683.62
404680003 $683.62
404680004 $683.62
Assessor's
Parcel
Number
Neighborhood
Amount
404680005 $683.62
404680006 $683.62
404680007 $683.62
404680008 $683.62
404680009 $683.62
404680010 $683.62
404680011 $683.62
404680012 $683.62
404680013 $683.62
404680014 $683.62
404680015 $683.62
404680016 $683.62
404680017 $683.62
404680018 $683.62
404680019 $683.62
404680020 $683.62
404680021 $683.62
404680022 $683.62
404680023 $683.62
404680024 $683.62
404680025 $683.62
404680026 $683.62
404680027 $683.62
404680028 $683.62
404680029 $683.62
404680030 $683.62
404680031 $683.62
404680032 $683.62
404680033 $683.62
404680034 $683.62
404680035 $683.62
404680036 $683.62
404680037 $683.62
404680038 $683.62
404680039 $683.62
404680040 $683.62
404680041 $683.62
404680042 $683.62
404680043 $683.62
404680044 $683.62
404680045 $683.62
404680046 $683.62
404680047 $683.62
404680048 $683.62
404680049 $683.62
404680050 $683.62
404680051 $683.62
404680052 $683.62
404680053 $683.62
404740001 $683.62
404740002 $683.62
404740003 $683.62
404740004 $683.62
404740005 $683.62
Assessor's
Parcel
Number
Neighborhood
Amount
404740006 $683.62
404740007 $683.62
404740008 $683.62
404740009 $683.62
404740010 $683.62
404740011 $683.62
404740012 $683.62
404740013 $683.62
404740014 $683.62
404740015 $683.62
404740016 $683.62
404740017 $683.62
404740018 $683.62
404740019 $683.62
404740020 $683.62
404740021 $683.62
404740022 $683.62
404740023 $683.62
404740024 $683.62
404740025 $683.62
404740026 $683.62
404740027 $683.62
404740028 $683.62
404740029 $683.62
404740030 $683.62
404740031 $683.62
404740032 $683.62
404740033 $683.62
404740034 $683.62
404740035 $683.62
404740036 $683.62
404740037 $683.62
404740038 $683.62
404740039 $683.62
404740040 $683.62
404740041 $683.62
404740042 $683.62
404740043 $683.62
$576,757.86
04/10/25C-6
119

DISCUSSION AND/OR ACTION ITEM

AGENDA ITEMS

2. 25-208
120

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of July 22, 2025
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Adopt a resolution authorizing the City Manager to execute a professional services agreement with SDI Presence, LLC, for the development of an Information Technology Strategic Plan (ITSP) in an amount not to exceed $84,150.

RECOMMENDED ACTION:

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute a professional services agreement with SDI Presence, LLC, for the development of an Information Technology Strategic Plan (ITSP) in an amount not to exceed $84,150.

BACKGROUND:

The Information Technology (IT) division is dedicated to the continuous enhancement of operations, services, and communication through the effective use of technology, data, and voice support. This commitment aligns with the City’s strategic and operational objectives. The key goals of the IT Department include:

1. Promoting the utilization of technology as a cost -effective resource to further the City’s overarching mission.

2. Providing a robust infrastructure for the seamless sharing of informati on and computer resources across the organization.

3. Supporting the operational, tactical, and strategic information needs of the City.

IT is committed to ensuring the integrity of the City’s data and voice network by maintaining a resilient infrastructure capable of accommodating technological advances 121
and growth. The department oversees all computer hardware and software, ensuring compatibility among devices within the network. Furthermore, the IT Department manages capital planning and advocates for the technology interests of all City Departments. Responsibilities include budgeting, purchasing, and the deployment of all network, hardwar e, and software solutions, in addition to ongoing maintenance and support.

The IT strategic plan will outline essential components, including alignment with the City’s goals, an analysis of the current IT landscape, an assessment of future needs, and a methodical approach to implementation and evaluation. This plan aims to provide a comprehensive overview of the scope, assumptions, limitations, and resources necessary for successful execution.

ANALYSIS:

A Request for Proposal (RFP) was issued to invite submissions from prospective consultants for the development of an IT Strategic Plan. The scope of the plan includes the following tasks:

1. Evaluate the current business application portfolio of the City.

2. Engage with the senior management team and other key technology stakeholders, including the IT department, to identify the desired end state for business services.

3. Prioritize the application and infrastructure requirements necessary to support the proposed business applications, based on the City’s objectiv es and needs, while exploring alternative strategies for fulfillment.

4. Provide an estimated budget for each recommended application, as well as the infrastructure requirements for both initial implementation and ongoing support.

5. Formulate recommendations th at will enable the City to effectively leverage applications in support of its business needs.

6. Document and present findings in a comprehensive long-range ITSP that will serve as a cornerstone for the formulation of future IT budgets and corresponding project plans.

The City received two proposals in response to the RFP. The evaluation of the consultants was conducted based on the following criteria: cost, experience with similar projects, consulting approach, understanding of the desired scope of work, timeline, references, and ability to comply with the City’s terms of agreement.

Following a thorough review of the proposals, the staff made a selection based on the outlined criteria. SDI Presence was chosen as the firm best equipped to successfully develop the City’s IT Strategic Plan. This decision was based on SDI’s comprehensive response to the RFP, their clear understanding of the required scope of services, and the qualifications of their experienced project team, which included strong references and relevant experience in conducting assessments of comparable scale for municipalities. 122

FISCAL IMPACT:

The Information Technology Internal Service Fund (ISF) Budget for the Fiscal Year (FY) 2025-26 includes sufficient resources to support this initiative. The projected cost will not exceed $84,150 and will be allocated to account 460 -4430-611.40-00. This funding reflects our ongoing dedication to enhancing our technological capabilities and ensuring a robust infrastructure.

ATTACHMENTS:

1. Resolution

2. SDI Presence LLC Proposal for Information Technology Strategic Plan

123
HERCULES CITY COUNCIL RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES

AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH SDI PRESENCE, LLC IN AN AMOUNT NOT TO EXCEED $84,150

FOR THE DEVELOPMENT OF AN INFORMATION TECHNOLOGY STRATEGIC PLAN (ITSP)
WHEREAS, the City’s Information Technology (IT) division is dedicated to the continuous enhancement of operations, services, and communication through the effective use of technology, data, and voice support; and
WHEREAS, The IT strategic plan will meticulously delineate critical components, encompassing alignment with the City’s objectives, a comprehensive analysis of the existing IT landscape, an assessment of prospective needs, and a systematic approach to implementation and evaluation. This plan is designed to furnish an exhaustive overview of the scope, underlying assumptions, limitations, and resources requisite for the successful execution of the strategy; and
WHEREAS, the City Council adopted the FY 202 5-26 Budget on June 10, 202 5, representing the financial plan for conducting the affairs of the City of Hercules; and WHEREAS, the Information Technology Internal Service Fund (ISF) Budget for the Fiscal Year (FY) 2025-26 includes sufficient resources to support this initiative; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules to authorize the City Manager to execute a professional services agreement with SDI Presence, LLC in an amount not to exceed $84,150 for the development of ITSP.

The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 22nd day of July 2025, by the following vote of the Council:

AYES:

NOES:

ABSENT:

ABSTAIN:
_________________________
Dion Bailey, Mayor
ATTEST:
______________________________
Eibleis Melendez, City Clerk
124

SDI Presence – Sacramento | 500 Capitol Mall, Suite 2350, Sacramento, CA 95814 | www.sdipresence.com | Toll: 888.YOUR.SDI (888.968.7734)

Proposal Prepared For:

City of Hercules
Information Technology Strategic Plan
RFP No. 25-001
May 1, 2025

Respectfully Submitted By:

Patrick Griffin
Managing Director
[email protected]
714-975-4150
125

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page i

TABLE OF CONTENTS

Section 1 Cover Letter ................................................................................................................... 1 Section 2 Proposal Summary ......................................................................................................... 2 Section 3 Scope of Services ............................................................................................................ 3 Section 4 Price of Proposal ............................................................................................................ 9 Section 5 References ................................................................................................................... 10 Section 6 Key Project Staff Background ........................................................................................ 12 Section 7 History of Firm.............................................................................................................. 14 Section 8 Project Schedule ........................................................................................................... 20 Appendix A Team Resumes ............................................................................................................. 21 Appendix B Sample Reports ............................................................................................................ 30

126
Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 1
Section 1 Cover Letter
May 1, 2025
Edwin Gato, Finance Director
City of Hercules
111 Civic Drive
Hercules, CA 94547
Re: RFP# 25-001 for IT Strategic Plan
Dear Mr. Gato,
SDI Presence LLC (SDI) respectfully submits this proposal to the City of Hercules (City) in response to its Request for Proposals (RFP) for the development of an Information Technology Strategic Plan (ITSP). SDI provides management consulting and advisory services focused exclusively on assisting public sector agencies enhance their use of technology. Since 1999, SDI’s Advisory & Consulting Practice has supported IT assessments, IT strategic plans, enterprise software procurements, and implementation projects for over 200 west coast clients. Our successful trac k record includes completing more than 100 IT Assessments and Strategic Plans for cities, counties, special districts, and State of California agencies.

Our understanding is that the City is seeking the assistance of a qualified firm to assess the current technology environment and create a strategic roadma p that supports the City’s growth, efficiency, and innovation. SDI will utilize a structured and proven project approach consisting of three major phases which include several tasks and activities; the outc ome of which is the development of comprehensive and actionable deliverables and a roadmap for impl ementation. SDI will bring the City proven methodologies and tools based on public sector IT bes t practices that are closel y aligned with industry standards, such as Information Technology Infrastructure Library (ITIL) and IT Service Management (ITSM) standards. SDI’s approach puts priority on aligning our clients’ enterprise-level business objectives and ongoing operational needs with their IT investments and available resources.

SDI’s Advisory & Consulting Practice prides itself on being 100% vendor independent. This means that we have no partnerships or affiliations with software or hardware vendors, and it enables us to provide feedback and recommendations that are not influenced by potential conflicts of interest.

The City’s project will be delivered by SDI’s California-based team, which is overseen by Managing Director Patrick Griffin. Mr. Griffin is based in California and readily available to support both the project team and the City throughout the engagement. For additional information regarding our proposal, please contact Mr. Griffin at [email protected] or (714) 975- 4150.

The City of Hercules account woul d be managed out of SDI’s Sacramen to office located at 500 Capitol Mall, Suite 2350, Sacramento, California 95814.

SDI appreciates the opportunity to submit our propos al to the City of Hercules and look forward to working with the City on this important project.

Sincerely,
Shoma Meyer, Chief Financial Officer
SDI Presence LLC
Sh
oma Meyer
Chief Financial Offi
127

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 2
Section 2 Proposal Summary
The City seeks to partner with a consulting company that has vision and leadership in technology planning. SDI brings the City the experience, expertise, and proven methods to help ensure project success. SDI has developed a comprehensive methodology designed specifically to meet the unique needs of organizations seeking to develop technology strategic plans. This methodology is based on our hands -on experience in working with public sector clients and continues to evolve as new best practices are identified.

SDI believes that a critical component of this project is to ensure that the stakeholders and staff impacted understand the trade-offs, resources, risks, and timelines associated with the project, and have appropriate expectations prior to, and throughout, the project life cycle. To accomplish this, SDI’s approach includes the following guiding principles:
♦ Focus on an open and collaborative process that encourages a consensus among the participants and a shared commitment to the successful completion of a comprehensive Technology Strategic Plan. ♦ Use a structured, proven approach to ensure comprehensive understanding of requirements and business needs at all levels of the City.
♦ Strive to minimize disruption to daily City operations throughout the various processes by ensuring a well planned and executed project.
♦ Fully identify and disclose the potential opportunities as well as the risks involved and provide realistic risk management and mitigation strategies.
♦ Ensure that stakeholders and users have and maintain realistic expectations throughout the process.

SDI is familiar with the challenges and issues that can arise in developing such plans and skilled in managing multiple, and sometimes conflicting, stakeholder visions, missions, goals, objectives, needs, and priorities. In addition, we are sensitive to the desires of elected and appointed officials and the public for transparency and open government. Our approach carefully considers project prioritization and includes processes to help manage competing priorities to ensure that our plans consider City-wide perspectives. We pride ourselves on helping organizations develop plans that are realistic and attainable in terms of the available budget, resources, and time.

128

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 3
Section 3 Scope of Services
SDI’s approach to IT strategic planning is designed specifically to meet the needs of organizations seeking to develop an integrated IT Strategic Plan that can be used to guide technology initiatives for the next three to five years. It is important to note that the cornerstone of our approach is the focus and emphasis on the involvement and interaction with the department consumers of technology and those setting the business direction for the City – providing a voice of the IT customer to the resulting Information Technology Strategic Plan. The team will seek and incorporate input from all departmental technology consumers and stakeholders in the City’s operating departments and divisions. Our approach includes three distinct phases:

INITIATE

ASSESS

DELIVER

Scope of Work
The Information Technology Strategic Plan needs to cover all aspects of the business to achieve an integrated and comprehensive technology strategy. It is important to note that the cornerstone of SDI’s methodology is the focus and emphasis on the involvement and interaction with the departmental consumers of technology and those setting the business direction for the City – ensuring the resulting IT Strategic Plan is influenced by the consumer’s needs. We will seek and incorporate input from all project stakeholders and employees, up to and including Executive Management and the City’s operating departments and divisions. Figure 1 illustrates the project phases, tasks, and corresponding deliverables.

Figure 1: Project Phases, Tasks, and Deliverables

129

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 4

Phase 1 – Initiate
As a part of Phase 1, SDI will validate our understanding, as well as that of the City stakeholders, regarding the scope of work and the process for accomplishing the project’s overall objectives. This phase includes confirming our understanding, as well as the understanding of the stakeholders, regarding the scope of work and the process for accomplishing the overall objectives of the project. Project scope and approach is finalized, the project schedule and meetings are established, and the Citywide project kickoff meeting is held duri ng Phase

1. Additional details are provided in Table 1 below.

Table 1 – Phase 1 Initiate

Task 1.1 – Facilitate Planning Meeting
TASK DESCRIPTION: SDI will meet with the City’s Project Sponsor and other key staff to complete a detailed review of the scope of work, project timeline, deliverables, project status methods, project participants (i.e. sponsor, subject matter experts, technical resources, etc.), and other items to ensure a well-planned project. During this meeting, SDI will discuss the tools and templates that will be leveraged.

Task 1.2 – Work Plan Development and Review
TASK DESCRIPTION: SDI will publish a Work Plan and facilitate a meeting with the City Project Sponsor to review and obtain feedback on the proposed Work Plan. The goal of this meeting is to obtain consensus on the Work Plan and a commitment to support the Work Plan. The Work Plan will be continuously updated throughout the project timeline as part of regular status reporting.

DELIVERABLE: Project Work Plan
Task 1.3 – Request Existing Documentation
TASK DESCRIPTION: In order to ensure alignment with the City’s business priorities, SDI will request and review documentation including, but not limited to, the following items:
♦ City Goals, Business Plans, Budgets, and CIP
♦ Previous Related Assessments and Plans
♦ City Organizational Chart and Contact Information
♦ Technology Governance Agendas and Minutes
♦ In Process or Planned Technology Project Documentation ♦ IT Disaster Recovery Plan
♦ Network Architecture Documentation
♦ IT Service Level Agreements and IT Performance Statistics or Activity Reports ♦ Technology Vendor Listing and Agreements
DELIVERABLE: Documents Request List
130

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 5

Task 1.4 – Conduct Kickoff Meeting
TASK DESCRIPTION: Since the project will have an enterprise-wide impact, it is important to proactively communicate with all impacted staff to ensure a clear understanding of project goals and objectives, roles and responsibilities, approach, tasks, and timeline. The Kickoff Meeting also provides the opportunity to introduce the SDI team to City staff and should involve senior level management and project sponsors to provide an introduction of this Citywide endeavor. It is important that all City staff that will be involved in the project, regardless of their role, participate in the project kickoff.

DELIVERABLE: Kickoff Meeting Presentation

Phase 2 - Assess
The objective of this phase is to gather input from both City stakeholders and the IT team relative to their use of core business applications. During this phase, SDI’s goal is to understand the City’s use of IT today – the current state – and establish a baseline for the development of the IT Strategic Plan. It is necessary to have a comprehensive and realistic understanding of how effectively the current applications meet the City’s requirements, the City’s business objectives and priorities, and how the City desires to use technology as a key enabler in supporting its business. This “look ahead at innovation” must consider that not only is technology evolving rapidly, but so are public expectations regarding timely and easy access to City services and information transparency. Through a series of workshops and interviews, SDI will document the City’s deployment of applications, the support of those applications, and plans for new or expanded software. Additional tasks will provide an analysis of core application deployments, observations and findings concerning the use and support of the applications, and an action plan for the implementation of applicable recommendations.

Table 2 – Phase 2 Assess

Task 2.1 – Conduct “Voice of the Customer” Survey
TASK DESCRIPTION: SDI will conduct a web-based survey to determine overall satisfaction in terms of IT service delivery and support. The survey will be available to all City technology customers and provides an opportunity to obtain their input. Survey questions will cover the use and support of core business applications, level of satisfaction with t he City’s technical environment, technology training opportunities, mobility and remote access to the communications network, and observations of what works well, necessary improvements, and future plans. Once the survey is concluded, SDI will prepare a “Voice of the Customer” Survey Report. The report will summarize the survey results.

DELIVERABLES: Survey Tool; Draft and Final Survey Reports

Phase 2
Assess

2.1 – Conduct “Voice of the Customer” Survey

2.2 – Conduct Business Technology Assessment

2.3 – Perform IT Assessment

2.4 – Conduct Management Briefing

2.5 – Develop and Deliver IT Assessment Report
DeliverablesProject Approach: Phases and Tasks
 “Voice of the Customer” Survey Tool
 Draft and Final Survey Reports
 Verbal Briefing of IT Assessment Findings
 Draft and Final IT Assessment Report
131

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 6
Task 2.2 – Conduct Business Technology Assessment
TASK DESCRIPTION: SDI will facilitate a series of interviews with City executives and department employees to provide a forum for input and feedback about the technology service delivery, current business applications, technology roadblocks, and future needs or plans. Prior to the interviews, SDI will provide an Interview Preparation Guide to assist participants in preparing for the sessions.

The interviews are an invaluable means of acquiring relevant and important information about the City’s priorities, business process analysis, workflow, and provide the basis for recommendations of future technology services and support.

SDI recommends on-site, face-to-face interviews to ensure a thorough understanding of concerns and priorities. If necessary, phone interviews may be scheduled to ensure everyone has an opportunity to participate or as follow-up to ensure clarity.

Task 2.3 – Perform IT Assessment
TASK DESCRIPTION: SDI’s IT Assessment evaluates whether the City’s IT infrastructure and support organization are prepared to support the future needs of the City by reviewing six key operational “assessment dimensions.” This review takes a comprehensive best practices view of essential IT delivery components, as a weakness in any one particular dimension can adversely influence the overall effectiveness of the organization. Findings and recommendations are developed based on:
♦ Information gathered during the business technology interviews with department stakeholders ♦ The results of the Voice of the Customer Survey
♦ Interviews with IT managers and staff
♦ The IT best practices assessment
SDI’s team will consolidate this information and develop findings and recommendations based on the City’s compliance with best practices in the following dimensions:

Technology Governance – Evaluation of the current IT organization and assessment of its skills, staffing levels, and capability to support operation and maintenance of current and future systems. This will include a review of IT project management practices, planning activities, IT refreshment, and the use of oversight committees.

Service Delivery – Evaluation of the daily operation of the IT environment including budget, service metrics, maintenance, help desk, configuration management, change management and capacity management.

Business Technology Applications – Evaluation of the processes and methods to support business and operational technology applications.

Security – Evaluation of the use of software monitoring tools, virus protection procedures, physical hardware security, network vulnerability, passwords, data backup/recovery processes, physical and data security, integrity planning, PCs, network, firewall, incident response, patch management, anti -virus protection and emergency operations.

Infrastructure – Review of the network, servers, desktops, telephony, storage configurations, remote access, data storage, server management, and operational procedures.

Administration – Review of technology procurement processes, contract management, vendor management, software license management, budget/charge back management and physical inventory processes.

132

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 7
Task 2.4 – Conduct Management Briefing
TASK DESCRIPTION: Upon compilation of the initial findings and recommendations from the IT Assessment activities, SDI will meet with the City’s Project Sponsor to review and discuss these items prior to the development of the draft IT Assessment Report.

DELIVERABLE: Verbal Briefing of IT Assessment Findings
Task 2.5 – Develop and Deliver IT Assessment Report
TASK DESCRIPTION: SDI will compile the results of the prior activities to create a Business Opportunities Report. This report will provide a department (business and operations) focused perspective on how the core business applications are currently being used, along with the challenges, issues, and opportunities.

DELIVERABLE: Draft and Final IT Assessment Report

Phase 3 - Deliver
Ensuring that the City’s business and IT staff priorities are in alignment can greatly enhance customer and employee satisfaction, empower teams, achieve business objectives and ensure efficient use of resources in pursuit of City goals and priorities. In Phase 3 – Deliver , SDI works with the City to review and analyze the findings of previous phases in order to identify, analyze, and prioritize projects that need to be included in the ITM P. SDI brings to the City proven methods and tools to ensure identified projects are well defined, understood by the stakeholders, and prioritized using agreed upon criteria. During this task, SDI will facilitate a Project Prioritization Workshop that uses a multi-step process to arrive at a City -wide prioritization of identified projects that will provide the basis for a roadmap in the ITMP. Table 3 provides detail regarding the Deliver phase of the process.

Table 3 – Phase 3 Deliver

Task 3.1 – Prepare for Prioritization Workshop
TASK DESCRIPTION: SDI will develop a Project Portfolio containing projects identified through our information gathering process with City staff. For each project, SDI will document the name, description, benefits, cost, level of effort to implement, risk, and implementation period. The draft Project Portfolio will be distributed prior to the Prioritization Workshop so that attendees can review and be prepared for the Workshop.

DELIVERABLE: IT Project Portfolio

133

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 8
Task 3.2 – Conduct Citywide Prioritization Workshop
TASK DESCRIPTION: SDI believes we have many unique and proven methods to develop a successful IT Strategic Plan; however, this activity alone sets us apart from all our competitors. Our Blue Wall approach uses a multi-step prioritization methodology and tools that encourages staff participation and collaboration. The workshop is designed to help drive consensus to obtain City -wide prioritization of projects. The result of the workshop will be a prioritized list of projects assigned to a timeframe. In addition, the workshop is designed to identify IT Strategic Plan enabling factors which are defined as key elements that must be in place or occur to allow the Plan to be a success. Examples of enabling factors could include training, staffing, budget, governance, project management, and change management.

DELIVERABLE: Prioritization Workshop Materials
Task 3.3 – Prepare IT Strategic Plan
TASK DESCRIPTION: SDI will incorporate work products from previous tasks as the foundation for the development of the City’s IT Strategic Plan. SDI will use this information, as well as other information provided by staff and independent research, to create a draft of the IT Strategic Plan and review it with the City. SDI will revise and update the IT Strategic Plan based on feedback from the City and will conduct a final technical and quality review of the final IT Strategic Plan before submission to the City’s executive team.

DELIVERABLE: Draft and Final IT Strategic Plan

134

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 9
Section 4 Price of Proposal
SDI has developed its project costs based on our extensive experience completing similar projects, along with our research on the City’s organization, size, and structure. We propose to complete the City’s IT Strategic Plan utilizing a total of 374 hours of effort. Detailed information about the number of hours, along with cost, by Phase and Task are presented in Table 5 below.

Table 5 - Project Level of Effort and Cost By Phase and Task

SDI’s hourly rates for our consultant team are as follows:
♦ Delivery Executive: $220
♦ Project Manager: $210
♦ Project Consultant: $200
Travel expenses will be billed based on actual costs substantiated by receipts, and SDI agrees to a not - to-exceed travel budget of $7,500. SDI does not charge its clients for consultant travel time.

SDI typically invoices its clients monthly for work performed in the prior month. Invoices are substantiated by detailed descriptions of tasks performed by SDI resources, and number of hours to complete the task. Billed expenses will be substantiated by receipts.

Task Descriptions Hours Price
Phase 1 - Initiate

1.1 Facilitate Project Sponsor Planning Meeting 4 860$

1.2 Finalize Work Plan 3 640$

1.3 Request and Review Documentation 12 2,460$

1.4 Conduct Kickoff Meeting 5 1,040$
Subtotal: Phase 1 - Initiate 24 5,000$
Phase 2 - Assess

2.1 Conduct "Voice of the Customer" Survey 40 8,200$

2.2 Conduct Business Technology Assessment 120 24,400$

2.3 Perform IT Assessment 60 12,300$

2.4 Conduct Management Briefing 8 1,680$

2.5 Develop and Deliver IT Assessment Report 30 6,150$ Subtotal: Phase 2 - Assess 258 52,730$
Phase 3 - Deliver

3.1 Prepare for Prioritization Workshop 12 2,460$

3.2 Conduct Citywide Prioritization Workshop 20 4,160$

3.3 Prepare IT Strategic Plan 60 12,300$
Subtotal: Phase 3 - Deliver 92 18,920$
Sub-Total Level of Effort 374 76,650$
Not-To-Exceed Travel Expenses 7,500$
Total Not-To-Exceed Project Cost 84,150$
135

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 10
Section 5 References
SDI has been providing comprehensive IT strategic planning services to local government agencies for over 30 years. We possess significant experience developing IT Strategic Plans, and our proposed project team has been successfully working together for several years on similar engagements. Provided below are five references for similar projects. We welcome the City to reach out to these, or any of our other clients.

Reference 1
Name of Organization City of V ista

Address 200 Civic Center Drive
Vista, CA 92084
Name of Contact Chris Mitchell, Director of IT
Telephone and Email (760) 643-5438
[email protected]
Project Title IT Assessment & Technology Strategic
Plan
Project Description
SDI completed a comprehensive assessment of the City’s technology operations and provided recommendations designed to improve overall service delivery. SDI also developed a n IT Strategic Plan to guide the City’s future technology investments.

SDI is currently providing consulting assistance on several strategic plan projects including the development of IT policies and procedures and completion of a disaster recovery / business continuity plan.

Reference 2
Name of Organization

Address
Name of Contact
Telephone and Email

Project Title
City of West Hollywood

8300 Santa Monica Boulevard
West Hollywood, CA 90069
Eugene Tsipis, IT Manager
(323) 848-6399
[email protected]
IT Assessment & Strategic Plan
Project Description
SDI recently completed an IT assessment and development of an IT Strategic Plan. The Plan helped guide the City to better allocate its information technology resources and to obtain greater benefits for its investments in information technology. The plan also provided a baseline to enable the City to more effectively respond to new and/or changing requirements by proactively adapting processes, organization, and infrastructure.

SDI recently completed project management services for the implementation of a new Land Management System for the City.

136

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 11
Reference 3
Name of Organization City of P lacentia

Address 401 E. Ch apman Avenue
Placentia, CA 92870
Name of Contact Da niel Chang , IT Manager
Telephone and Email (714) 993-8204
[email protected]
Project Title IT Assessment & IT Master Plan
Project Description
SDI recently completed a comprehensive assessment of the City’s technology operations and provided recommendations designed to improve overall service delivery. SDI also developed a Technology Master Plan to guide the City’s future technology investments.

Reference 4
Name of Organization
Address
Name of Contact
Telephone and Email
Project Title
City of Beverly Hills

455 N. Rexford Drive
Beverly Hills, CA 90210
David Schirmer, CIO
(310) 285-2581
[email protected]
IT Assessment & Strategic Plan
Project Description
SDI completed an IT assessment and development of an IT Strategic Plan. This most recent project was an update to the Strategic Plan SDI completed in 2016, and the City contracted directly with SDI (without an RFP process) to complete the updated Plan.

Reference 5
Name of Organization
Address
Name of Contact
Telephone and Email
Project Title
City of Sacramento Dept. of Utilities

1395 35th Ave.

Sacramento, CA 95822
Rong Liu, IT Manager
(916) 808-1979
[email protected]
Utilities IT Digital Strategy
Project Description
SDI recently completed an IT assessment and development of an IT Digital Strategy for the City’s Department of Utilities. The project included the development of the Strategic Plan, along with an assessment of IT staffing and development of a training plan.

137

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 12
Section 6 Key Project Staff Background
For this project, SDI is proposing a team of highly qualified and experienced professionals with the proven ability to complete projects on time and within budget. SDI’s proposed team includes former local agency IT specialists with significant depth and expertise to address all aspects of this important project.

For this project, SDI is proposing a team of highly qualified and experienced professionals with the proven ability to complete projects on time and within budget. SDI’s proposed team includes former local agency IT specialists with significant depth and expertise to address all aspects of this important project.

Figure 2 – Project Team

Patrick Griffin – Engagement Manager
Role: Mr. Griffin will serve as the Engagement Manager on the City’s project, bringing his years of experience working with public agencies to support the City and the project team on this important project. Mr. Griffin will provide management oversight and supp ort to the SDI project team and will interact with the City team on contractual and business-related items.

Biography: Mr. Griffin has over 40 years of experience in California local government. His municipal experience includes serving in a variety of positions including Controller, Finance Director, Community Development Director, and Assistant City Manager, with the last position including responsibility for City- wide budget, information technology, and public communications and outreach. After retiring from the public sector in 2012, Mr. Griffin began a consulting career with NexLevel Information Technology, which merged with SDI in 2017. During his consulting career, Mr. Griffin has been responsible for the completion of several IT Strategic Plans, in addition to ERP and land management system procurements and implementations for local agencies.

138

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 13
Lee Curtis – Strategic Planning Practice Lead and Project Manager Role: Mr. Curtis will serve as the project manager for the engagement, providing oversight of day-to-day project activities and being responsible for project deliverables.

Biography: Mr. Curtis is a senior level, hands -on executive with more than 40 years of experience in technology service and management consulting. He has been a top -tier manager with outstanding technology delivery skills and long -range project planning expertise. Mr. Curtis has provided executive- level consulting to both the private and public sectors supporting a wide range of technology implementations. With over 25 years at NexLevel/SDI, he is an experienced project manager, accomplished writer and a w ell-versed consultant providing in -depth technology assessments and innovative strategic plans to public sector clients. Mr. Curtis has served as CIO or IT Director for numerous organizations across the country and has presented IT Strategic Planning sessions at the Municipal Information Systems Association of California ( MISAC) annual conferences. In 2020, he presented a webinar on Strategic Planning to the Association of California Water Agencies (ACWA). Mr. Curtis has participated in assessments and planning projects for numerous cities, counties, and special districts.

Mike Stein – Strategic Planning Consultant
Role: Mr. Stein will provide subject matter expertise throughout the project and will take a lead role in developing draft project deliverables.

Biography: Mr. Stein is a highly experienced management and technology consultant with more than four decades of experience in the public sector, the telecommunications industry and commercial banking. His career has been focused on helping organizations implement complex technology solutions and effectively utilize technology to solve business problems through business process re-engineering, IT strategic planning, procurement assistance, definition of requirements, and project management.

Mike Allen - Strategic Planning Consultant
Role: Mr. Allen will provide subject matter expertise for all aspects of the project, including data gathering activities throughout City Departments.

Biography: Mr. Allen has over 35 years of information technology experience within the public sector.

With this extensive background, Mr. Allen is well qualified to address customer needs by providing deep municipal finance, utility, permitting public safety, geographic information systems, network design, cybersecurity subject matter expertise coupled with hands-on project management and implementation experience.

139

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 14
Section 7 History of Firm
SDI Presence LLC (SDI)
SDI is an IT consultancy and managed services provider (MSP) that leverages its strong team presence to advance our clients to a secure digital enterprise. With a 25+ -year corporate resume, SDI delivers strategic managed services, IT
consulting, and hybrid infrastructure solutions to optimize our clients’ technology environments. SDI is a certified Minority Business Enterprise (MBE), with a portfolio of clients that includes some of the nat ion’s largest airports, utilities, commercial real estate portfolios, and government agencies.

SDI delivers a deep technical presence through a local
delivery model to achieve customer confidence and success.

SDI is headquartered in Chicago, Illinois with regional offices in Anaheim, and Sacramento, California; Atlanta, G eorgia; and Dallas Fort-Worth, Texas.

SDI’s core services include:

• Hybrid Data Center
Management
• Cloud Infrastructure
Management
• Cybersecurity
Management
• Network Management
• Workplace/End-User
Support
• Physical Security

• Application Managed Services
• Application Modernization
Services
• Custom Application Development
and Enhancement
• Data Analytics
• Quality Assurance and Testing
• Organizational Change
Management
• AI / MLCore Application
Implementation

• Customer Information Systems
(CIS)
• Enterprise Asset
Management (EAM)
• Geographic Information
Systems (GIS)
• Computer Aided Dispatch
(CAD)
• ServiceNow

• IT Governance
• IT Strategic Planning
• Enterprise Technology
Roadmap
• Technology Selection and
Procurement
• AI Readiness Assessments
• Data Strategy & Governance
• IT Assessments
• Project Management Office

SDI Snapshot:
• Headquartered in Chicago
• 25+ Years IT Consulting/Managed
Services Experience
• 389+ Business Professionals
• 87% Customer Satisfaction Rating/89
Promoter Score
• Continuously awarded the “Best Places
to Work” Recognition since 2018
• Financial Stability:
- 2024 Revenue - $90.6M
- Backed by Private Equity Firm - Abry
Partners with $5B under management
• Corporate Plus® Member of the National
Minority Supplier Development Council
(NMSDC)
140

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 15
SDI Principals
David A. Gupta
Executive Chairman

David A. Gupta founded SDI in 1996 and today continues to serve the firm as its Executive Chairman. David has a proven executive management track record of driving profitable sales growth and outstanding customer satisfaction in the technology services ind ustry. David is a longtime champion of SDI’s value system, commitment to customer advocacy, its passionate workforce, and the company’s vibrant culture, which has been repeatedly recognized as a Best Place to Work by Crain’s Chicago Business, the Chicago Tribune, and Built In Chicago.

At SDI, David is responsible for developing and implementing the company’s strategy and is particularly involved in strategic account development and relationship management throughout the Chicago and Los Angeles areas. David also founded PGV Solutions, a full -service information technology systems integration firm based in southern California, which merged into SDI Presence in June 2016.

Prior to founding SDI, David was a senior vice president in the electrical engineering group at Environmental Systems Design, where he was responsible for the design of power and data systems for more than 10 million square feet of commercial real estate.

David volunteers his time and expertise through pro-bono consulting and hands-on opportunities as well.

His volunteering focus is centered on children, education, economic empowerment, and science and technology; to date, over 150 students have completed SDI’s internship and apprentice programs. He supports a host of charities including the United Way, Lake Forest Academy, Mercy Home for Boys and Girls, Chicago History Museum, the University of Chicago Graham School, the University of Chicago Booth School of Business Executive Education, and the CU Boulder College of Engineering and Applied Science.

Hardik Bhatt
Chief Executive Officer

Hardik Bhatt serves as the Chief Executive Officer of SDI Presence LLC. In this role, Hardik leverages two decades of key partnerships with global corporate leaders, public sector leaders, startup leaders, investors, and academia to provide strategic direction that helps modernize SDI clients.

Prior to joining SDI, Hardik led AWS’s public sector startup business, launching startup accelerators and incubators globally. He built and ran AWS’s Digital Government and Transportation verticals for State and Local Government businesses while leading st rategic sales, partnerships, and customer solutions, using AWS’s cloud-based business models and supported by proven delivery and innovation methodologies.

Prior to AWS, Hardik was the Chief Information Officer for the State of Illinois. There, he centralized the state’s $1.2 billion IT organization, the Department of Innovation & Technology. As Secretary of the new department, Hardik and his team built the s tate’s first data analytics practice, created the state’s first comprehensive cybersecurity strategy, drove customer-centric innovation, and championed its first 141

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 16
successful ERP implementation. Under his leadership, Illinois leapfrogged from 4th from the bottom to 3rd in nationwide state technology rankings.

Prior to the State of Illinois, Hardik was a Senior Director at Cisco, leading global business development for its Smart Cities and Internet of Everything (IoE) business. He worked with municipal, state, and national governments across 19 different countries in his five years at Cisco. Before Cisco, Hardik served as the City of Chicago’s CIO and Commissioner of Department of Innovation & Technology, where he leveraged technology to improve citizen services. There, Hardik pioneered the Smart Chicago initiative, deployed cutting-edge mobile apps, and initiated the City’s Open Data Platform.

Hardik is an active industry speaker and is intricately engaged in Chicago’s civic fabric. He is a board director and chairperson of the Cybersecurity Committee for the Fermi National lab, the country’s leading Deep Physics research lab, driving the multi -billion dollar International Long -Baseline Neutrino Facility/Deep Underground Neutrino Experiment. Hardik also serves as a board member for the World Business Chicago and Chicago Innovation. He has been judging Chicago Innovation Awards for the past 15 years and is a member of the angel investment partnership Hyde Park Angels, the Economic Club of Chicago, and the Commercial Club of Chicago.

SDI’s principals are not affiliated with any other companies.

IT Strategic Planning and Related Technology Experience SDI’s Advisory & Consulting Practice has worked with more than 200 state and local government agencies across eight states to complete IT Assessments, IT Strategic Plans, GIS Strategic Plans, Network Assessments, IT Service -Level Assessments, Policy/Procedure Documentation, Project Management Organization implementations, Feasibility Studies, and Request for Proposal (RFP) Development and Procurement Management efforts. Since 1999, SDI has completed over 100 IT Strategic Plans. In addition to our California local government experience, SDI also has significant planning, project management , and procurement experience working with the State of California for agencies such as California Highway Patrol, Department of Justice, Department of Motor Vehicles, Department of Corrections and Rehabilitation, Department of Child Support Services, and more.

SDI is recognized throughout the State of California for our services supporting public sector agencies with IT strategic planning activities. This is evident not only by the number of successful projects and client references, but also because we are commonly asked by organizations such as California Society of Municipal Financial Officers (CSMFO) and Municipal Information Systems Association of California (MISAC) to present at their annual conferences and regional chapter groups. SDI has co -presented day long pre-conference sessions dedicated to IT Strategic Planning and ERP procurement and implementation and has also presented on the topics of IT sustainability, IT governance, and Cloud Computing. SDI has presented more than a dozen times to CSMFO and MISAC. The fact that we are regularly invited to present at these important organization’s events speaks to our expertise and experience.

142

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 17
Table 4 – SDI West Coast Client List

IT Strategic Plans
IT Assessments
IT Policies &
Procedures
Project
Management
IT Governance
Disaster Recovery
Planning
System Selection
& Procurements
Other Management
Consulting
Municipalities
Alameda, CA   
Anaheim, CA   
Belmont, CA 
Beverly Hills, CA   
Branson, MO   
Burbank, CA  
Burlingame, CA  
Carson, CA 
Carson City, NV    
Chino, CA  
Chino Hills, CA   
Concord, CA  
Coronado, CA    
Costa Mesa, CA 
Cupertino, CA  
Davis, CA  
El Segundo, CA  
Fairfield, CA       
Fremont, CA   
Fresno, CA    
Galt, CA        
Gilroy, CA     
Glendale, CA     
Half Moon Bay, CA  
Huntington Beach, CA    
Indio, CA 
Industry, CA 
Irvine, CA     
La Quinta, CA   
Laguna Beach, CA  
Long Beach, CA   
Los Angeles, CA  
Los Banos, CA  
Malibu, CA  
Manhattan Beach, CA     
Merced, CA   
Millbrae, CA 
Napa, CA    
Newport Beach, CA   
Novato, CA    
Ontario, CA   
143

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 18

IT Strategic Plans
IT Assessments
IT Policies &
Procedures
Project
Management
IT Governance
Disaster Recovery
Planning
System Selection
& Procurements
Other Management
Consulting
Orange, CA     
Oxnard, CA  
Pasadena, CA  
Paso Robles, CA   
Petaluma, CA 
Pismo Beach, CA   
Pleasant Hill, CA 
Rancho Cordova, CA   
Rancho Palos Verdes, CA    
Redlands, CA 
Redwood City, CA    
Rohnert Park, CA    
San Luis Obispo, CA    
San Rafael, CA      
San Ramon, CA  
Santa Barbara, CA 
Santa Clara, CA       
Santa Cruz, CA     
Stockton, CA     
Suisun City, CA  
Sunnyvale, CA 
Vacaville, CA 
Ventura, CA    
Visalia, CA   
Walnut Creek, CA    
Watsonville, CA    
West Hollywood, CA   
Special Districts
Central Contra Costa Sanitation District        Chino Valley Independent Fire District   
Coachella Valley Water District  
Cosumnes Community Services District  
Cucamonga Valley Water District 
Delta Diablo Sanitation District 

 
East Valley Water District  
Eastern Municipal Water District 
Lake Arrowhead Community Services District 
Las Virgenes Municipal Water District    
Monterey Regional Water P.C.A.  
Moulton Niguel Water District       
North Tahoe Public Utilities District  
Port of Los Angeles  
Rancho California Water District    
Riverside Co. Trans. Commission 
144

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 19

IT Strategic Plans
IT Assessments
IT Policies &
Procedures
Project
Management
IT Governance
Disaster Recovery
Planning
System Selection
& Procurements
Other Management
Consulting
Sacramento Area Sewer District 
Sacramento Metropolitan Fire District  
Sacramento Municipal Utility District 
San Joaquin Council of Governments 
San Bernardino County Fire 
Santa Clara County Fire Department  
Santa Clara County Housing Authority  
Santa Clara Valley Water District 
Silicon Valley Clean Water 
Silicon Valley Power    
Southern CA Association of Governments 
South Tahoe Public Utility District     
West Basin Municipal Water District   
Zone 7 Water Agency  
Counties
Douglas County, Nevada  
El Paso County, Texas  
Lane County, Oregon  
Placer County, CA  
Riverside County, CA 
San Benito County, CA  
San Diego County, CA  
Santa Clara County, CA  
Sonoma County, CA  
State of California
Assoc. of Regional Center Agencies  
CA Correctional Health Care Services  
California Highway Patrol        

145

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 20
Section 8 Project Schedule
Based on SDI’s experience completing IT Strategic Plans for California organizations, we anticipate the following timeline for the City’s project:

Figure 3 – Project Timeline
The ability to meet this timeline will be dependent on availability of City staff throughout the project and the timely review of draft reports by the City project team. 146

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 21
Appendix A Team Resumes

Following this cover page are resumes for the SDI project team:
♦ Patrick Griffin – Engagement Manager
♦ Lee Curtis – Project Manager
♦ Mike Stein – Project Consultant
♦ Mike Allen – Project Consultant

147

EXPERIENCE SUMMARY
Mr. Griffin is a senior level executive with over 31 years’ experience in public sector local agency management. During his career in local government, Mr. Griffin was responsible for every aspect of municipal management, including responsibility for annual budgets, public information dissemination, elected offici al support, and information technology.

Mr. Griffin held a variety of positions including Finance Director, City Treasurer, and Assistant City Manager during his municipal career. Mr. Griffin’s knowledge and understanding of local government operations brings SDI clients a resource that is aware of, and sensitive to, the unique requirements of public agencies.

PROJECT ACCOMPLISHMENTS
Assessments and Strategic Planning Projects
Mr. Griffin has led or participated in technology service delivery assessments and strategic planning projects for numerous public agencies. All of the projects involved a detailed review of technology operations, identification of customer needs, prioritization of projects, and/or development of a strategic implementation plan.

• City of Los Angeles
• City of Beverly Hills
• City of Glendale
• City of Fresno
• City of El Segundo
• City of La Quinta
• City of Manhattan Beach
• City of Ontario
• City of Pismo Beach
• City of Rancho Palos Verdes
• City of San Bernardino
• City of Oxnard
• City of Huntington Beach
• City of Ventura
• Port Angeles, WA
• Irvine Ranch Water District
• Inland Empire Utilities Agency
• Las Virgenes Municipal Water District
• East Valley Water District

PATRICK GRIFFIN
Managing Director

AREAS OF EXPERTISE
• Project Management
• Requirements Definition
• Business Process Analysis
• Project Plan Development
• Local Government Operations
• Strategic Plans
• Initiative Development
• Operational Assessments
• Workshop Facilitation
• IT Outsourcing Evaluations
• Feasibility Studies
• RFP Development
• Proposal Writing
• Contract Negotiations

CONNECT
ON LINKEDIN!
148

PROFESSIONAL EXPERIENCE CONTINUED

ERP and Land Management System Procurements
Mr. Griffin has led efforts toward major software system procurements for both Enterprise Resource Planning (ERP) and Land Management System (LMS) projects for the following agencies:

• City of Manhattan Beach
• City of Indio
• Cucamonga Valley Water District
• Coachella Valley Water District
• Carson City, NV
• City of Poway
• City of Newport Beach
• City of Fresno
• City of La Quinta
• City of Paso Robles
• City of Redlands
• Las Virgenes Municipal Water District
• Camrosa Water District
• Lake Arrowhead Community Services District

Mr. Griffin has also served in the role of project manager for the following implementation projects:

• City of Manhattan Beach ERP implementation
• City of Manhattan Beach Land Management System implementation • City of La Quinta ERP implementation
• City of La Quinta Land Management System implementation • City of Chino ERP implementation

Additional Qualifications
Mr. Griffin’s public sector experience included responsibility for the day to day operations of Finance, Information Technology, and Community Development Departments for a full service city. These responsibilities encompassed the management of staff, development of strategic planning activities, annual budget development for operations and capital budgets, and oversight of these functions for the organization.

Mr. Griffin served on the Fullerton Planning Commission for four years. He remains active in a variety of professional organizations including CSMFO, MISAC, and the League of California Cities.

EDUCATION

California State Long Beach
• Master of Arts, Public Administration

California State Fullerton
• Bachelor of Arts, Psychology

PATRICK GRIFFIN
149

EXPERIENCE SUMMARY
Mr. Curtis is a senior level, hands-on executive with more than 40 years of experience in technology service delivery and management consulting. He has been a top-tier manager with outstanding technology delivery skills and long-range project planning expertise. Mr.

Curtis has provided executive -level consulting to both the private and public sectors supporting a wide range of technology implementations. He is an experienced project manager, accomplished writer and a well- versed consultant providing in- depth technology assessments and innovative strategic plans to public sector clients.

PROFESSIONAL EXPERIENCE
IT Assessment
Mr. Curtis has developed IT Assessments for clients that provide a comprehensive review of management and operation performance of the IT organization. These assessments evaluate the current use of IT best practices in six operational dimensions (IT Governance, Business Application Portfolio, Service Delivery, Security/Data Protection, Infrastructure, and Administration). The assessments also provide actionable recommendations for the improvement and effective operation of the IT organization to more effectively deliver services to consumers given available resources and priorities.

• City of Clovis, CA • Douglas County, NV
• City of Concord, CA • John Wayne Airport, CA
• City of Daly City, CA • Lane County, OR
• City of Fairfield, CA • North Tahoe Public Utility District, CA • City of Galt, CA • Sacramento Area Sewer District, CA • City of Rocklin, CA • Sacramento Metropolitan Fire, CA • City of San Clemente, CA

IT Assessment and Strategic Plan

Mr. Curtis has led or participated in technology service delivery assessments and strategic planning projects for the following public agencies. All of the projects involved performing a detailed assessment of the use and management of technology operations, identification of departmental technology needs, prioritization of identified projects, and the creation of a strategic implementation plan including timeframes and estimated costs.

LEE CURTIS
Strategic Planning Practice Leader

AREAS OF EXPERTISE
• Project Management
• Requirements Definition
• Business Process Analysis
• Resource Planning
• IT Governance
• Technology Planning and
Assessments
• Strategic Plans
• Operational Assessments
• Project Prioritization
Workshop(s)
• IT Best Practices
• IT Portfolio Management
• IT Outsourcing Evaluation
• Feasibility Studies
• Disaster/Recovery Plans
• IT Policy/Procedure
Development
• Service Level Measurements
• Data Center Management
• RFP Development
• Proposal Writing
• Contract Negotiation
• Personnel Management
• P&L Administration

CONNECT
ON LINKEDIN!
150

PROFESSIONAL EXPERIENCE CONTINUED

• City of Alameda, CA
• City of Branson, MO
• City of Brentwood, CA
• City of Carson City, NV
• Central Contra Costa Water District, CA
• City of Cupertino, CA
• Cosumnes Community Services District, CA
• City of Gilroy, CA
• City of Los Banos, CA
• City of Manhattan Beach, CA
• City of Napa, CA
• City of Novato, CA
• City of Petaluma, CA
• City of Rancho Palos Verdes, CA
• City of Redwood City, CA
• City of San Luis Obispo, CA
• City of Santa Clara, CA
• City of Santa Cruz, CA
• City of Stockton, CA
• City of Visalia, CA
• City of Walnut Creek, CA
• Delta Diablo Sanitation District, CA
• El Paso County, TX
• Fresno Irrigation District
• Monterey One Water, CA
• Moulton Niguel Water District, CA
• Port of Los Angeles, CA
• Santa Clara County Housing Authority
• South Orange County Wastewater, CA
• South Tahoe Public Utility District, CA
• Union Sanitary District, CA
• Zone 7 Water Control Agency, CA

IT Roadmap
Mr. Curtis developed application software strategies that mapped the acquisition/upgrade of core business software.

These roadmaps were developed in concert with client user departments and included a comprehensive infrastructure analysis of hardware and support equipment requirements. The roadmaps were used to allocate client technology budgets to mission critical projects and provided a platform by which the IT organizations could effectively manage and utilize its resources to meet client business needs.

• California Highway Patrol, CA
• City of Belmont, CA
• City of Los Altos, CA
• City of Rancho Cordova, CA
• City of Temecula, CA
• Metropolitan Transportation Commission, CA
• Sacramento Area Sewer Districts, CA

Interim CIO
Mr. Curtis provided temporary senior IT management services to clients that were in an organizational transition due to retirements or position vacancies. Duties included personnel management, departmental application coordination with product vendors, tactical work plan development, day-to-day infrastructure oversight, and project planning/implementation. In addition, he worked closely with client Human Resource departments in the recruitment, selection, and transition to permanent management personnel.

• City of Rancho Cordova, CA
• City of Stockton, CA
• Douglas County, NV

IT Organization Analysis

For several clients, Mr. Curtis performed an assessment of their IT organization and made recommendations for new or modified IT structures that provided increased efficiency for the delivery of service. These organizational evaluations

LEE CURTIS
151

PROFESSIONAL EXPERIENCE CONTINUED

• City of Hayward, CA
• City of Huntington Beach, CA
• City of Orange, CA
• Tulare County, CA

Consulting and IT Management
Mr. Curtis has a vast background within IT management and technical consulting. He has worked with public entities his entire career and has held the following technical positions: Managing Consultant, Vice President for Software Implementation, CIO, IT Director, Systems Analyst, and Programmer/Analyst. He has deep experience in evaluating IT operations, making recommendations for operational improvements, and has managed the implementation of IT best practices for organizations large and small. Selected clients and employers include:

• Affiliated Computer Services, TX
• Butte County, CA
• City of Anaheim, CA
• City/County of Indianapolis/Marion County, IN
• Dallas County, TX
• Siskiyou County, CA
• Solano County, CA
• Southwest Marine, CA
• Systems & Computer Technology, PA
• Tooele County, UT
• University of Richmond, VA
• University of South Dakota, SD
• Wayne County Community College District, MI

EDUCATION

University of South Dakota
• Economics/Business Administration

Recent Presentations:
• MISAC Case Study Webinar, February 2021, “The Importance of IT Strategic Planning for Your Organization” • Association of California Water Agencies, July 2020, “IT Strategic Planning Overview”

SKILLS

LEE CURTIS
152

Michael Stein
Project Consultant

EXPERIENCE SUMMARY
Mr. Stein is a highly experienced management and technology consultant with more than four decades of experience in the public sector, the telecommunications industry and commercial banking. His career has been focused on helping organizations implement complex technology solutions and effectively utilize technology to solve business problems through business process re- engineering, IT strategic planning, procurement assistance, definition of requirements, and project management. In recent years, he has been primarily engaged in facilitating the development of IT strategies, assisting agencies in the implementation of Commercial-Off-The-Shelf systems, in finding effective ways to exchange information, and in improving internal processes.

PROFESSIONAL EXPERIENCE
Business Information Technology Assessment, Lane County, Oregon Mike served as a lead consultant in the development of an assessment of the County’s use of information technology including the processes for the governance of information technology and the management and delivery of information technology services. The engagement also included a review of the County’s methodology for charging back the direct and indirect costs for IT services to user departments as well as the administration of the chargeback program. The engagement included working closely with the County Administrator and the Chief Information Officer as well as conducting interviews with key stakeholders in the user community, assessment of the City’s conformance to IT Best Practices, and the development of a gap analysis. The engagement included the development of an action plan for the County that was reviewed with its management team.

Information Technology Strategic Plan, City of Watsonville Mike served as the project manager and lead consultant in the development of an IT Strategic Plan as well as an IT classification and compensation study for the City of Watsonville. The development of the IT Strategic Plan included a detailed assessment of the City’s Information Technology Division as well as interviews with key user stakeholders regarding the obstacles and challenges they were facing; IT projects in progress; and opportunities. Mike facilitated a group planning and prioritization workshop for the City’s key stakeholders and conducted an IT governance workshop.

EDUCATION
• Master of Public Administration Program
o John Jay College of Criminal Justice, CUNY, 1974
• Bachelor of Arts
o Marietta College, Ohio, 1972

SKILLS
Mr. Stein holds various certifications including Information Technology Strategic Planning and Project Management from Touche-Ross & Co., and Total Quality Management from the County of Los Angeles.

AREAS OF EXPERTISE
• Project Management
• IT Governance
• Needs & Gap Analysis
• Business Process Re-
Engineering
• Requirements Definition
• Project Plan Development

Technology Planning &
Assessments
• Strategic Plans
• Policy/Procedure Development
• Operational Assessments
• Digital Government
• IT Best Practices
• Project Management Office

Other Technical Areas
• Business Intelligence
• Information Exchange
• RFP Development
• Quality Assurance
• Systems Integration
• Systems Architecture

CONNECT
ON LINKEDIN!
153

MICHAEL ALLEN
Managing Consultant

EXPERIENCE SUMMARY
Mr. Allen has over 35 years of information technology experience within the public sector. With this extensive background, Mr. Allen is well qualified to address customer needs by providing deep municipal finance, utility, permitting public safety, geographic information systems, network design, cyber- security subject matter expertise coupled with hands -on project management and implementation experience. Mr. Allen offers SDI clients strong decision support, analytical, technical, facilitation, project management, communications, and program management skills, and with these skills has established a successful track record in supporting public agencies.

PROFESSIONAL EXPERIENCE
SDI Presence, LLC
(2017 - Present)
Managing Consultant
This role is focused on helping organizations implement complex technology solutions and effectively utilize technology to solve business problems through business process evaluation, IT strategic planning, information sharing, procurement assistance, requirements definition, technology contract management, IT portfolio management, and project management.

City of Visalia, CA
(July 1994 - December 2016)
Information Services Manager
Focused on city-wide technology initiatives, driving business value and technological innovation. Responsible for planning, implementing, and administering the technology budget within an internal service fund model. Provided appropriate technology and tools to ensure the highest business value and return on investment. Responsible for preparing and presenting staff reports, memos and presentations to various staff, IT Steering Committee, and City Council. Participated on labor negotiations team for two years. Evaluated, selected for hire, trained and disciplined staff, as well as managing all facets of a high-performance IT organization.

MISAC State Board Representative
(2010 – 2015)
Elected State Board Representative for the Central Chapter of Municipal Information Systems Association of California. Participated in strategies to more than double membership, organize conferences, and provide MISAC member value. Responsible for the first development of an inventory toolset used for providing Information

AREAS OF EXPERTISE

Project Management
IT Strategic Planning
Procurement
Network & Security Technology

CONNECT
ON LINKEDIN!
154

MICHAEL ALLEN

PROFESSIONAL EXPERIENCE CONTINUED
Technology metrics for members. Responsible for legislative activity and participation on the League of California Cities Administrative and Housing and Economic Development committees. Speaking engagements and presentations given at MISAC conferences, League of California Cities conference.

Visalia Rescue Mission, CA
(2009 – 2022)
Board Member and Chairperson
Involved in the organization and board member activities of this multi-million-dollar non-profit agency. This agency provides services, programs, and homeless shelter for men and women facing drug and alcohol addictions in the Visalia area. As a member of the Executive Management Team, I am intimately familiar with non-profit financial and organizational challenges, including staffing decisions, publicity, strategy development, and damage-control.

City of Roseville, CA
(1988 – 1994)
Senior Programmer Analyst
Responsibilities included network design, maintenance, and troubleshooting, staff supervision and workload delegation, and defining system and operational procedures. Lead technologist for the successful implementation of a new ERP system (full financials, payroll, human resources).

City of Roseville, CA
(1985 – 1988)
Programmer Analyst
Responsibilities included Utility system support and design, financial system support, and both micro and mini- computer support. Early development and innovation with mobile computing for Public Safety services. Implemented a new recreation scheduling and registration system.

EDUCATION
California State University, Sacramento, CA
• Bachelor of Science, Business

PROFESSIONAL ASSOCIATION
Municipal Information Systems Association of California (MISAC), Honorary Lifetime Member State Board Representative, December 2011 - 2016
155

Proposal to City of Hercules for
Information Technology Strategic Plan - RFP #25-001
May 1, 2025 Page 30
Appendix B Sample Reports
The following pages provide two sample reports prepared by SDI.

156

Information Technology Strategic Plan

Prepared by:

November 18, 2024

157
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | i

This page has been intentionally left blank

158
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | ii

Table of Contents

INTRODUCTION ................................................................................................................................. 1 SCOPE & OBJECTIVES ................................................................................................................................ 1 DOCUMENT ORGANIZATION ........................................................................................................................ 1 EXECUTIVE SUMMARY ........................................................................................................................ 3 OVERVIEW .............................................................................................................................................. 3 DEVELOPMENT OF THE IT STRATEGIC PLAN ...................................................................................................... 3 SYNOPSIS OF THE IT STRATEGIC PLAN ............................................................................................................ 4 INFORMATION TECHNOLOGY TRENDS ................................................................................................ 9 OVERVIEW .............................................................................................................................................. 9 PROJECT SCHEDULE ........................................................................................................................ 15 OVERVIEW ............................................................................................................................................ 15 METHODOLOGY ..................................................................................................................................... 15 IT STRATEGIC PLAN PROJECT PORTFOLIO ...................................................................................................... 16 PROJECT SCHEDULE AND COST PER FISCAL YEAR ........................................................................................... 18 CONCLUSION .................................................................................................................................. 27 OVERVIEW ............................................................................................................................................ 27 CRITICAL SUCCESS FACTORS ..................................................................................................................... 27 NEXT STEPS .......................................................................................................................................... 30 CLOSING THOUGHT ................................................................................................................................ 31 APPENDICES ................................................................................................................................... 32 APPENDIX A - CITY-WIDE AND DEPARTMENTAL PROJECTS (ALPHABETICAL BY PROJECT NAME) ..................................... 32 APPENDIX B - ITD PROJECTS NOT PRIORITIZED (ALPHABETICAL BY PROJECT NAME) .................................................. 39

159
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | iii

Revision Log

Date Description
November 18, 2024 IT Strategic Plan

160
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 1

Introduction
Scope & Objectives
This document, entitled Information Technology Strategic Plan (IT Strategic Plan) was developed for the City of Alameda (City) by SDI Presence LLC (SDI). The IT Strategic Plan will enable the City to align the allocation of its information technology resources with the City’s business objectives and to obtain greater benefits for its investments in information technology. Although the IT Strategic Plan provides a holistic view of the City’s information technology needs and priorities at the present time it does not attempt to predict the future; but rather, it provides a baseline that will enable the City to re-allocate resources as needed to effectively respond to new and/or changing requirements.

A key input to the development of the 2024 IT Strategic Plan was the review of the 2017 Strategic Plan which included forty-four (44) technology projects that were designed to help ensure the City’s technology environment could support current and anticipated business needs. The projects spanned all departments and when implemented , would improve operations, and increase the security and reliability of the City’s technology infrastructure. SDI found that:
 Twenty (20) projects had been completed.
 One (1) project was on-hold.
 Three (3) projects that are specific to AMP had been removed.  Eighteen (19) projects remain ed open at varying levels of completeness and were re - evaluated and included in the 2024 IT Strategic Plan where appropriate.

Document Organization
Figure 1 – Document Organization (Source: SDI)
As depicted in Figure 1, Document Organization, this document is structured as follows:
 Introduction: Provides information regarding the scope and objectives of the IT Strategic Plan and the organization and contents of the document.  Executive Summary: Provides a high-level summary of the development of the IT Strategic Plan and the results of the planning process.
 Information Technology Trends : Provides information regarding IT s trategic planning considerations as related to current information technology trends. 161
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 2

 Project Schedule: Provides information regarding the methodology used in the development of the IT Strategic Plan, the Project Portfolio, Project S chedule, Costs Per Fiscal Year, and Gantt charts.
 Conclusion: Provides final project thoughts and the next steps the City should consider in implementing IT Strategic Plan projects.
 Appendices: Provides the IT Strategic Plan Project Portfolio.

Terminology and Numbering
In order to make this document readable by persons who are not information technology professionals SDI has minimized the usage of technical jargon and where this is unavoidable, SDI has avoided the use of acronyms. The City’s Information Technology Department is generally referred to as either ITD or City IT to avoid confusion with information technology (IT) in general.

Figures and tables have been numbered consecutively from the beginning of the document.

162
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 3

Executive Summary
Overview
SDI facilitated the development of the IT Strategic Plan for the City during 2024. The active participation of the City ’s City Manager, Assistant City Manager, Department Heads, IT Director, IT staff, and user stakeholders ensured that the resulting plan is highly relevant to the City’s objectives and priorities. At the same time, SDI brought a perspective of information technology trends and best practices which are applicable to municipal government in the State of California, as well as familiarity with the speci fic concerns of the City of Alameda through our participation in the development of the 2017 IT Strategic Plan.

This executive summary provides a brief overview of:
 How the IT Strategic Plan was developed.
 Review of the Project Portfolio and Prioritization Process.  The completed project roadmap.

Development of the IT Strategic Plan
Figure 2 – Development of the IT Strategic Plan (Source: SDI) 163
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 4

Figure 2, Development of the IT Strategic Plan, provides a high- level view of the activities that were performed and the deliverables that were created leading up to the IT Strategic Plan itself. As shown, the planning process is oriented around two phases:
 In Phase 1 SDI conducted a series of activities which defined where the City is with its use of information technology today. Activities included:
 On online survey.
 Interviews with key user stakeholders to identify the business and operational applications being used, issues and obstacles that the users were encountering, opportunities to improve business processes, future needs, and planned projects.  A review of the City’s conformance to best practices for information systems.  A gap analysis between the City’s current conformance to best practices to desirable targets.
 An analysis of the City’s strengths, weaknesses, opportunities, and threats (SWOT Analysis).
 Findings related to the most significant information technology challenges facing the City.
 Recommendations to remediate the findings.
 In Phase 2 SDI performed the following activities:
 Developed a portfolio of strategic projects based on the findings and recommendations, user needs, and projects that were already in-progress or planned. The portfolio was reviewed with the City, revised as needed, and then used as the basis for project prioritization workshops.
 Facilitated two workshops with City department heads to reach consensus as to the projects to be included in the IT Strategic Plan and the priorities of projects aligned over the next 3 years.
 Developed granular project schedules.
 Developed the IT Strategic Plan (this document).

Synopsis of the IT Strategic Plan
Project Portfolio
SDI developed a portfolio of proposed projects (See Appendices). The portfolio includes projects that are:
 Presently in progress.
 Planned, but not yet in progress.
 Identified as future needs through the interviews and workshops conducted with the City’s departments.
164
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 5

 Identified by SDI as recommendations outlined in the IT Operations Review Report.  Carried over from the 2017 IT Strategic Plan that have not been implemented.

The Project Portfolio was reviewed with the City’s department heads who modified the Portfolio as projects were added, removed, or consolidated. Upon completion of the review, SDI pre-staged the projects over a timeline which included:
 Projects that were in progress during Fiscal Year 2024/25.  Projects planned during Fiscal Year 2024/25 - FY2025/26.  Projects planned during Fiscal Year 2026/27 – FY2027/28.  Projects planned during Fiscal Year 2028/29.

Project Prioritization
SDI mapped the projects over the next five fiscal years to accommodate resource and funding constraints. The final project plan is shown in Figure 3, “Blue Wall” Project Roadmap.

Figure 3 – “Blue Wall” Project Roadmap (Source: SDI)
Gantt Chart and Estimated Cost Per Fiscal Year
Based on the project roadmap provided in Figure 3, “Blue Wall” Project Roadmap, SDI developed a Gantt Chart to provide a more granular view of the project roadmap including work in progress, work planned, and the number of concurrent projects in each time period. Please see Figure 11, Gantt Chart and Estimated Cost per FY , Page 1; Figure 12, Gantt Chart and Estimated Cost per FY , Page 2; and Figure 13, Gantt Chart and Estimated Cost per FY , Page 3 in the Project Schedule Section of this document.

165
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 6

Based on the Gantt Chart, SDI was able to allocate project costs per Fiscal Year and this is shown in Figure 4, Estimated Cost by Fiscal Year. The cost model is based on the following assumptions:
 Estimated c osts were developed for each project based on SDI’s experience with similar projects and adjusted for the size of the City . These estimated costs should be used for planning and budget purposes and the actual costs incurred by the City may vary from the estimates. The p roject cost per fiscal year is based on an average of the low and high estimated costs (in $000’s) for each project as documented in the IT Strategic Plan Project Portfolio (an abridged version of the project portfolio is provided as Appendix A) and is labelled as “Estimated Mid-Range” Cost in Figure 4.
 It is assumed that the full cost for a multi-year project is incurred in the FY in which it is begun.  Except for projects that have annual recurring costs (such as for the annual refreshment of the City’s IT infrastructure or for services contracts), the cost for a project is assumed to be fully incurred in the Fiscal Year in which the project commences even if the project’s duration spans fiscal years.
 On-going costs for new positions are not presented as those costs will be included in future City budgets under personnel or contract categories.
 Costs are not provided for projects that are in- progress or that have been planned for FY 2024/25 since these have already been budgeted.

For each project Figure 4 provides:
 The ID number of project from the ITSP Project Portfolio.  The name of the project.
 The project sponsor(s) (the City departments most directly responsible for the project, the sponsor for projects which impact all departments is shown as “City-wide”).  Project Category:
 “1 – In Progress” includes 13 projects that are currently in progress.  “2 – Planned” includes 8 projects that are planned for the third and fourth quarters of FY 2024/25.
 “3 – Planned” includes 21 projects that were prioritized by the City’s participants in the prioritization workshop on October 29, plus an additional project that is closely related to them.
 “4 – Planned” includes 14 projects that are of importance to the City but that were not prioritized by the City.
 The estimated mid -range cost (in $000’s) for the projects in category 3 – Planned. The estimated mid-range cost for the projects in category 1 – In Progress and category 2 – Planned is shown as “N/A” since these costs have already been budgeted and the estimated mid - range cost for the projects in category 4 – Planned is shown as “TBD” (to be determined) since there is no schedule for them at this time.
166
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 7

 The FY in which the cost is incurred, FY 2025/26, FY 2026/27, and FY 2027/28.

Figure 4 – Estimated Cost Per Fiscal Year (Source: SDI) 167
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 8

As shown in Figure 4, the estimated costs per FY and the total program cost are as follows:

Fiscal Year Estimated Cost
($000’s)
FY 2025/26: $613
FY 2026/27: $300
FY 2027/28: $210
Total Program Cost: $1,123

Please note that the total program cost for this IT Strategic Plan is somewhat more modest than the total program cost for the projects in the 2017 IT Strategic Plan since:
 The 2024 IT Strategic plan does not envision the acquisition and implementation of enterprise software products and is more focused on enabling the City to derive additional value for its existing investments in information technology than making new investments.  Costs are not included for the 14 projects that have yet to be scheduled.

168
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 9

Information Technology Trends
Overview
Not only does information technology continually evolve but the pace of this evolution is continually accelerating. As a result, the ways in which organizations use information technology are changing as are the expectations of internal and external stakeholders for access to information and services.

A key consideration in evaluating the potential impact of information technology trends is that they do not impact the operations and priorities of organizations to the same degree. Although predicting the future of information technology can be problematic, as depicted in Figure 5, Strategic Trends in Information Technology, SDI has identified six key information technology trends that:
 Are relevant to the City’s IT Strategic Plan, will likely impact the City’s business objectives and priorities in the future, and shape how ITD implements this IT Strategic Plan.  Have become mature (i.e., are stable, scalable, and that are effectively supported), including artificial intelligence and machine learning , the “ Dataverse, ” the transformation of IT organizations, mobility and the consumerization of information technology, and “SMART” Communities.

Figure 5 – Strategic Trends in Information Technology (Source: SDI) Artificial Intelligence and Machine Learning
There has been considerable progress in the development of tools that enable organizations to effectively navigate through and consume a growing body of information in real time as well as to 169
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 10

personalize the delivery of information and services. Some municipalities, including the City of Alameda, have begun making limited use of AI. Artificial Intelligence (AI) can:
 Engage in interactions with humans using Natural Language Processing (NLP) or with other machines (“chat boxes”).
 Interpret information provided by a user and take the appropriate action(s), based on either a predetermined set of responses or utilize machine learning algorithms to respond to the user.
 Internalize new information and/or trends and adapt responses as needed (Machine Learning).
 Reduce the need for human input to respond to questions or to requests for services, thus increasing responsiveness and minimizing lost productivity compared to traditional service desk processes.

Potential uses for AI in municipal government include:
 Facilitating interaction with members of the community who are seeking online access to City services and information (including making it easier for members of the community to navigate the City’s website and enabling the City to more rapidly identify and respond to community requirements , particularly where the response involves multiple City departments.
 Enabling City staff members to effectively complete tasks that are not performed routinely, enabling them to take on new assignments as needed with a minimum amount of training, to access knowledge bases , and t o securely perform tasks such as resetting and managing passwords and resolving common device and/or network issues without needing to complete a ticket and wait for a response from the service desk.

AI tools are typically available as cloud -based services and can be activated, configured, and implemented with relatively less time and expense than traditional business applications.

The Emergence of the “Dataverse”
Although there is a commercial product from Microsoft (“Microsoft Dataverse”), this trend refers to the creation of generic, centralized repositories of information to support information sharing and research. O ver time these repositories have also been referred to as “data warehouses” and “big data” but despite all of the attention that has been given to the potential benefits of creating these repositories, municipalities have been slow to adopt them. Barriers to adoption have included:
 The level of investment and resources required to:
 Establish and maintain an enterprise approach to the governance and management of data to support the creation and the maintenance of the repositories.  Gather information from disparate applications with each application having unique data models.
170
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 11

 Provide tools that enable trained, but otherwise non-technical, users to access the data in the repository.
 Provide support.
 The implementation of enterprise software suites (such as ERP products) that provide reporting and query tools and that provide a more limited, but readily available, approach to data retrieval and analysis.
 The proliferation of individual dashboards based on products such as PowerBI that can be more rapidly and less expensively deployed.

Nonetheless, the continued development and maturity of tools that support the establishment of repositories, the development of models for enterprise data governance and management, the development of national standards for information sharing, the need for regional collaboration on key issues facing municipalities (such as homelessness and crime) as well as the potential benefits of, at least, selectively integrating data related to decision making and policy formulation, suggest that municipalities will be considering the creation of repositories or participating in regional efforts.

The Transformation of IT Organizations
Figure 6 – Conceptual IT Service Delivery Model (Source: SDI) Figure 6, Conceptual IT Service Delivery Model, depicts SDI’s model of how municipalities will need to govern, manage, and deliver IT services to internal and external user communities in the future.

Over the last decade there have been substantial changes in both information technology (including the maturation of the Internet, Cloud -based services, and mobility) as well as how public sector organizations use information technology (with digital services being integral to how they collaborate with their regional partners, communicate with the public, and provide services). 171
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 12

Despite these changes in information technology , and municipalities increased dependence on information technology, the ways in which cities govern the use of IT and manage the delivery of IT services have remained relatively static and informal. The adoption of governance models for IT and IT organizations that were based on traditional, centralized IT service delivery models have limited the ability of organizations to keep pace with changes in public expectations, developments in information technology , as well as to obtain greater value for their investments in information technology.

With the continued movement of commercial -off-the-shelf (COTS) business and operational applications from on-premises installations to cloud-based services (Software-as-a-Service) and as cloud-based IT infrastructure becomes increasingly cost competitive with on -premises facilities, it is thus reasonable to expect that IT support organizations that are primarily service providers today will find that they will need to modify organization and staffing to become:
 Service managers that can manage and support the delivery of on-premises and cloud-based services.
 Service brokers that are able to assist user organizations in finding the optimum mix of services for their specific requirements.

Mobility and the Consumerization of IT
The consumerization of information technology refers to the use of personal devices, most often mobile, to obtain access to organizational services and information (also sometimes referred to as BYOD – bring your own device). Mobility fundamentally changes the paradigm of the standard desktop computing model where the computer, the operating system, the applications, plus the user’s data and preferences are integrated into a single platform that remains in the same location.

Whereas desktop computing is device and location centric, mobility is user centric.

This is particularly relevant to municipalities as members of the community use a variety of devices to access city information and services. This has several implications including:
 The proliferation of devices is a challenge for support organizations as users attempt to obtain connectivity to secured wireless networks and utilize applications. It is estimated that the introduction of mobility in an organization can increase service desk workload by as much as 10%.
 User access to services from mobile / wireless devices potentially exposes both the organization’s assets and the mobile device to cyber-attacks.  Public-facing solutions need to be both open and adaptive to optimize user experience from a universe of devices, (each with different screens, browsers, and operating systems) that are continually evolving.

Organizational Change Management
There is always a degree of resistance to change, however beneficial, since executives, managers, and staff sometimes find comfort in established processes even when they find them frustrating. 172
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 13

Overcoming this resistance to change in a thoughtful, open, and consistent manner is not only critical to successful implementation of new business and operational applications but also in enabling an organization to better manage its total cost of ownership for information technology and to obtain the greatest possible return for its investments in information technology.

In particular, the introduction of new enterprise -wide applications and/or modifications to existing applications often involves changes to existing business processes to obtain the greatest possible benefit from the applications. This presents two distinct challenges:
 Resistance to change by the prospective users of a new business application or the implementation of significant changes to an existing application can jeopardize successful implementation, extend the project timeline, and limit the ability of an organization to fully realize the expected value for its investment.
 The implementation of new automation and changes to existing business processes have the potential to disrupt operations and impact the ability of an organization to provide services.

Organizational change management (OCM) provides a methodological framework for managing the organizational impact of the implementation of new automation including changes in business processes, changes in organizational structure, and changes in culture (including changes in focus and changes in how performance is measured) by focusing on improving communication, setting expectations, and working to minimize the impact of misinformation.

In 1995, John Kotter introduced an eight-step process for fostering the successful implementation of changes in organizational structure, business processes, and culture. 1 Kotter’s framework for change
management includes:
 Creating a shared sense of urgency regarding the need to change.  Forming a guiding coalition across the organization to support change.  Creating a vision for change.
 Communicating the vision to the organization.
 Preparing to overcome obstacles.
 Planning for, and delivering, short-term wins to sustain momentum.  Remaining committed to the long-term process required to transform organizations.  “Anchoring” the changes in the culture of the organization (the “new normal”). “Smart” Communities
The implementation of “Smart” technologies is unusual in that this trend is not a single technology, per-se, but rather represents an integrated approach to the utilization of emerging information technologies and technology trends. The objectives of “Smart” implementations include enabling organizations to more effectively identify trends (such as incidents, traffic, power demand, parking

1 https://www.kotterinc.com/methodology/8-steps/
173
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 14

space availability, etc.); to re -allocate or reprogram resources in response to these trends; and to support programs such as “Smart” energy-efficient buildings, autonomous vehicles, and electronic payment processing.

“Smart” capabilities can also benefit members of the community and visitors by enabling them to obtain information through smartphone apps regarding employment services, public safety, healthcare, social services, transit and driving route information, parking, and transit service options, etc., as well as to report incidents and concerns.

The Internet of Things (Io T) provides the foundation for many “Smart” initiatives. For some time, devices have stored data so that it can be manually downloaded and accessed on demand.

Combining this capability with the ability to access the internet (and thus the ability to both autonomously receive and transmit information) has brought us to the IoT. McKinsey, a leading management consulting firm, has suggested six distinct types of applications to consume this information; tracking behavior, enhanced situational analysis, sensor -driven decisions analytics, process optimization, optimized resource consumption, and complex autonomous systems (such as collision avoidance).

The effective implementation and continued use of Smart technologies includes:
 The development and implementation of open and collaborative processes to develop the visions for the implementation of Smart technologies as well as for the continuing governance of the initiatives.
 The implementation of secure, resilient, and ubiquitous wireless services that enable access to smart services from any device, anywhere, and anytime and that can scale to meet expected surges in demand (such as events) as well as unexpected surges in demand.  The development of a comprehensive plan for the implementation and continuing support of the Smart services that leverages public / private partnerships as well as regional partnerships.
 The development and implementation of a plan to leverage the information produced by smart devices, including the use of business intelligence, business analytics, and artificial intelligence.

One of the inhibitors to the full use of Smart technologies is that they are typically implemented as siloed, departmental applications rather than as an enterprise program, since organizations often wish to gain experience in a limited area first, external funding is often targeted to specific initiatives, and the time to implementation, immediate cost, and risk are less with siloed applications.

174
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 15

Project Schedule
Overview
Change has been, and continues to be, a constant concern for public sector executives who must often respond to increased public expectations and new mandates with limited resources and with information technology environments that are not agile. Without a plan to manage and respond to change, organizations tend to become reactive rather than proactive and, as a result, obtain reduced benefits for their investments in information technology. This multi-year IT Strategic Plan sets forth a roadmap for the City that identifies current technology projects and, to the extent possible, future technology needs. The plan lays out the strategy and steps to meet those needs and to enable the City to sustainably deliver high quality services to its internal user community and the public.

Methodology
Figure 7 – Development of the IT Strategic Plan for the City of Alameda (Source: SDI) As depicted in Figure 7, Development of the IT Strategic Plan for the City of Alameda, SDI worked collaboratively with the City to develop a detailed perspective of the issues facing the City in its use of information technology, identify potential opportunities to make better use of information technology, and understand user needs. This information was developed through a highly interactive process that included:
 Development of an IT Operations Review that documented where the City is today and where it needs to be in the future through a comprehensive and participative process that included:
175
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 16

 A survey that was available to all City employees with an e-mail address.  Interviews with user stakeholders from the City’s departments, and interviews with the ITD’s management and staff.
 A review of the progress made in completing the projects identified in the 2017 IT Strategic Plan.
 A review of the City’s conformance to information technology best practices.  A series of findings and recommendations that, along with the information provided by the interviewees, provided the basis for the development of the IT Project Portfolio, and, in turn, the development of the IT Strategic Plan.
 A briefing with the City’s management team regarding the key findings and recommendations identified in the IT Operations Review.
 A detailed r eview of the project portfolio by key user stakeholders and ITD. Through this process, additional projects were identified, and some projects that had been completed in the interim were deleted.
 The facilitation of two workshops for the City’s management team to review and prioritize the proposed projects. As a result of this review, SDI developed the project Gantt chart and the estimated cost per fiscal year in consultation with City IT.  Development of the IT Strategic Plan.

IT Strategic Plan Project Portfolio
The Project Portfolio provided the foundation for the development of the IT Strategic Plan . The portfolio includes projects that are:
 Presently in progress.
 Planned, but not yet in progress.
 Identified as future needs through the interviews and workshops conducted with the City’s departments.
 Identified by SDI as recommendations outlined in the IT Operations Review Report.  Identified in the 2017 IT Strategic Plan but that have not been implemented.

An abridged version of the updated P roject Portfolio is provided in the A ppendix and provides key attributes for each project including:
 Project Name: The common name of the project.
 Project Description: A short explanation of the project’s scope and objectives.  Project Sponsor: The Department within the City that requested the project.  Status: The status of the project, including:
176
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 17

 2017 Plan = The project was originally identified in the 2017 IT Strategic Point and has been carried forward.
 Interview = The project was identified by departments during SDI interviews.  In Progress = The project is being actively worked on.  On Hold = The project is on-hold at this time.
 SDI Recommendation = The project was identified based on a recommendation in the IT Operations Review Report.
 City Addition = The project was added during the City’s management team workshops or by ITD for planned infrastructure activity.

Enabling Factors
SDI assisted the City’s management team in evaluating
and prioritizing the projects by assessing how each project aligned with key factors . As shown in the Appendices, each project was evaluated on how it would improve City’s ability to allocate and utilize IT resources , improve th e effectiveness of the delivery of IT services, better utilize information technology to improve the delivery of services to the community , and enable the City’s to increase the return/value it receives for its spending on information technology.

Utilization of IT Resources
Municipalities seldom have sufficient IT and user staff resources to support all their requirements .

Similarly, the City must optimize its use of existing user and IT staff resources to respond to new and/or changed requirements and expectations. Optimizing the use of user and IT staff resources depends on a number of factors including being able to establish priorities, understanding what staff members are currently working on, when their work will be complete, and reallocating staff resources as needed to better support the city’s objectives and priorities. This process has been complicated by:
 The gradual migration of IT services to the “Cloud” with the impact that the City is now reliant on both internal and external IT resources.
 City departments have engaged external IT resources in support of specialized, high-priority projects without full consultation with ITD.

IT Delivery Effectiveness
Improvements in the effectiveness of the delivery of services to the City’s internal user community is also critical to enabling the City to meet existing requirements and to respond to new requirements.

The adoption of IT best practices particularly as they relate to communication and collaboration, the development and maintenance of documentation, contingency planning, policies, and procedures, training to maintain and increase IT competencies as well as to keep pace with trends in information technology, and planning for staff attrition, are all critical to the ability of ITD and the City’s external IT service providers to effectively provide IT services today and in a sustainable manner over time.  Utilization of IT Resources
 IT Service Delivery Effectiveness
 Operational Effectiveness
 Cost Improvement
177
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 18

Operational Effectiveness
Increasingly, municipalities are dependent on information technology for the delivery of services and information to their internal user communities and to the public who expect to be able to access them from “any device and at any time. ” Improvements in the effectiveness of service delivery is critical to the ability of cities to better meet public expectations and to cope with budgetary and staffing constraints. These improvements often result from being able to better leverage existing business and operational applications by providing continual training to the user community, improving the support provided to them through the training of subject matter experts (SMEs) within city departments, making fuller use of the features and functionality provided by the City’s applications, and by replacing ineffective applications with applications that are a better fit for the City’s requirements.

Cost Improvement
Projects that will enable the City to better manage its total cost of ownership for IT and the value it receives for its IT investments were identified and directly related to:
 Not all IT spending is readily evident. It is not unusual for organizations to find that they have ‘hidden’ spending on IT resulting from departments independently contracting for, or providing, IT services some of which may duplicate IT services already provided by ITD. This duplication increases the total cost of ownership for IT while reducing the value that the organization obtains for this spending. The ubiquity of Cloud -based, software services (Software-as-a-Service) accounts for much of this spending.  Reductions in IT spending that are not well planned can result in the City incurring additional costs through factors such as lost productivity. In the absence of information regarding how an organization is using information technology, organizations can realize unanticipated expenses due to reductions in IT investments (such as deferring the purchase of new computers), including both direct costs and indirect costs.  The City may find on review, th at it is not always making the fullest use of the functionality provided by its business applications. The City may also find that it is incurring expenses for multiple business applications that provide similar functionality. In general, IT industry sources consider organizations sometimes make use of only 50% of business application functionality.
 Another factor that contributes to reductions in the return on investment is the use of a wide array of ad -hoc databases and spreadsheets by individual business units. These “shadow systems” are often developed and updated inconsistently, may use software that is dated or that has limitations, and may not even be known to ITD. These applications can impede business continuity since they are not always backed up consistently or adequately protected from cyber threats.

Project Schedule and Cost Per Fiscal Year
Overview
This section of the IT Strategic Plan provides:
178
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 19

 A discussion of the methodology used to develop the Project Schedule, the Gantt Chart, and the Estimated Cost per Fiscal Year for the projects in the plan. The project schedule and cost per fiscal year provide the City with the information to make informed decisions regarding the implementation of the directions and recommendations identified through the activities and deliverables produced for the City.
 A review of the Gantt Chart and the Estimated Cost per Fiscal Year over the timeline of the plan.

Methodology
Figure 8 – IT Strategic Plan Development (Source: SDI)
Figure 8, IT Strategic Plan Development , depicts the methodology used to develop the plan. This process included:
 The Initial Project Portfolio was developed by SDI in the course of the IT Operations Review. It included projects related to the recommendations developed by SDI and projects that the interviewees reported were in-progress or planned.
 The Project Portfolio was distributed to the City’s department heads for review prior to an initial Prioritization Workshop held on July 17th.
 During the July 17th Prioritization Workshop, participants added projects, deleted completed projects, and agreed to hold a second Prioritization Workshop after further review of the Project Portfolio.
 The City’s IT Manager coordinated an update to the Project Portfolio who provided the “final” list of projects to SDI.
179
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 20

 SDI facilitated a second Prioritization Workshop on October 29 th which allowed the participants to stage the projects in priority over a 4-year time period.  As a result of the second Prioritization Workshop, SDI prepared three work products, each of which is discussed below:
 The “Blue Wall” Project Roadmap.
 A Gantt Chart.
 A chart showing the estimated cost for each fiscal year of the IT Strategic Plan and for the plan in total.

Pre-Staged “Blue Wall” Project Roadmap
Figure 9, Pre-Staged “Blue Wall” depicts the project roadmap as it appeared at the start of the project prioritization workshop that was held at City Hall West on October 29, 2024. As depicted in Figure 9, SDI arranged the projects from the updated Project Portfolio into two broad categories:
 Projects that were currently in progress in the second quarter of FY 2024/25 or that had been tentatively planned for completion in the third and fourth quarter of FY 2024/25.  Projects to be prioritized for completion.

Each project was color -coded based on its sponsor and the placards identify projects that are in progress or that are “holdovers” from the 2017 IT Strategic Plan. During the setup of the “Blue Wall” the Fire Department requested the addition of a project from the replacement of the department’s current record management system (RMS) and a placard was created on -site for it ( just below the first column of projects to be prioritized).

Figure 9 – Pre-Staged “Blue Wall" Project Roadmap (Source: SDI)

180
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 21

Completed “Blue Wall” Project Roadmap
During the project prioritization workshop SDI and department heads discussed each project. During the review, several additional projects were identified, or the sponsor of a project was modified. Each of the participants was then given five adhesive dots to vote for projects that they considered to be of the greatest importance to the City . SDI reviewed the results of the voting process with the participants and regrouped the projects to separate projects that had received votes from those that did not and to group related projects . Figure 10, “Blue W all” Project Roadmap, depicts the final project roadmap at the end of the workshop and illustrates the input received from the participants.

As shown in Figure 10, a project to prepare and implement a plan for business resilience (a carry - over from the 2017 plan) received 16 votes indicating the importance the participants attached to it.

Figure 10 – “Blue Wall" Project Roadmap (Source: SDI)
Gantt Chart and Cost Per Fiscal Year
Based on the completed “Blue Wall,” SDI developed the Gantt Chart provided in Figure s 11, Gantt Chart and Cost Per Fiscal Year, Page 1, Figure 12, Gantt Chart and Cost Per Fiscal Year, Page 2, and Figure 13, Gantt Chart and Cost Per Fiscal Year, Page 3. Respectively:
 Figure 11 lists the 21 projects that are either in progress at this time (13) or planned for completion (8) within this fiscal year.
 Figure 12 lists 22 projects (including 21 projects that were prioritized by the participants in the workshop plus an additional project that is closely related to the other projects and has thus been included in this category).
 Figure 13 lists the 14 projects that were not prioritized . Please note that the relative importance of projects to the City is subject to change and could be modified in the future .

Figure 13 also provides a summary of the number of concurrent projects per each year of the plan.
181
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 22

The Gantt Chart and Cost Per Fiscal Year diagrams provide a more granular view of the project roadmap including work completed, work planned, and the number of concurrent projects in each time period. The following information is provided for each project:
 Project ID: This is carried forward from the ITSP Project Portfolio . Projects that were added during the prioritization workshop just show “add” in this field.  Project Name.
 Project Sponsor(s): The City departments most closely associated with the project. Please note that projects that benefit the City as a whole are classified as “City-w i d e.”  Project Type: Projects are classified as being either strategic (S) or tactical (T) . Generally, projects that directly impact the delivery of services to the public are classed as strategic and projects that indirectly support the delivery of services to the public are classed as tactical.  Project Category:
 1 – In Progress.
 2 – Planned (for projects planned in the last two quarters of FY 2024/25.  3 – Planned (for projects that were prioritized during the workshop).  4 – Planned (for projects that are of importance to the City but not prioritized during the workshop).
 Workshop Priority: Identifies the number of votes that the Category 3 projects received from the participants in the workshop.
 Estimated Level of Effort: Provides SDI’s estimate of the level of effort required to complete the project in general terms, High, Medium, and Low.
 Estimated Cost in $000’s : The estimated low and high costs for the completion of the project. Please note that:
 Costs are not provided for projects that are identified as being in-progress since these costs have already been budgeted. Similarly, costs are not provided for projects scheduled for completion this FY. These are shown as “N/A. ”  Project costs that cannot be estimated at this time are shown as “TBD. ”  It is assumed that the full cost for the completion of multi-year projects is incurred in the first year of the project.
 Project Schedule: Identifies the FY in which the project has been scheduled including FY 2024/25, FY 2025/26, FY 2026/27, and FY 2027/28. Projects that cannot be scheduled at this time are shown in “Schedule TBD. ”
 Cost per Fiscal Year: Provides the estimated cost per fiscal year for projects scheduled for FY 2025/26, FY 2026/27, and FY 2027/28 based on the estimated mid -range cost for the project. The estimated costs per fiscal year are as follows:

182
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 23

Fiscal Year Estimated Cost
($000’s)
FY 2025/26: $613
FY 2026/27: $300
FY 2027/28: $210
Total Program Cost: $1,123
Notes
SDI would like to note that:
 ITD will be better able to calculate and plot the user and IT resource requirements within each time period as charters are developed and approved for each of the projects. ITD is presently not at full strength, and although it is actively recruiting for fill open positions, it takes time to select and onboard new hires and for them to become fully productive.  There are a large number of projects presently in progress and SDI is concerned that these might take longer to complete should resources be diverted due to contingencies, and this could impact the project schedule . Given financial uncertainties, the City is generally not inclined to add additional FTEs to ITD, thus any shortfall in the availability of resources will have to be resolved using external resources or by rescheduling projects.  Although the City made significant progress from the 2017 IT Strateg ic Plan, the City was unable to implement the recommendation for the establishment of a process for IT governance likely due to pressing and disruptive events (including the 2019/20 Pandemic) ; however, the City should make the establishment of a formal process for the governance of IT a priority.
 A number of projects that are of high importance to the City were not prioritized during the workshop (such as a post -implementation review for Accela, the development of a digital government plan, and updates to the City Website for ADA compliance) and the City should endeavor to get them scheduled as soon as resources permit. 183
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 24

Figure 11 – Gantt Chart and Cost Per Fiscal Year, Page 1 (Source: SDI)

184
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 25

Figure 12 – Gantt Chart and Cost Per Fiscal Year, Page 2 (Source: SDI)

185
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 26

Figure 13 – Gantt Chart and Cost per Fiscal Year, Page 3 (Source: SDI)

186
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 27

Conclusion
Overview
This section provides some thoughts and guidance for the City regarding the steps that it should consider regarding the proposed projects discussed in the IT Strategic Plan based on our experience in working with a wide range of organizations dealing with similar issues. A number of factors have prompted public sector organizations to become more reliant on information technology including:
 Increased public expectations for the availability of information and services through the Internet and, in particular, from mobile devices. Members of the community expect to be able to do this at any time, from anywhere, using any device.  The need to optimize the use of human resources, capital, and other assets in the delivery of services to both the City’s internal user community and the public.  The need to manage total cost of ownership for information technology more effectively in the face of limited budgets. At one time this was mostly about infrastructure and personnel costs but has increasingly become related to managing the cost for business and operational applications.
 The increased availability, perhaps even ubiquity, of Smart devices that provide streams of information.

Critical Success Factors
Figure 14 – The Interdependence of IT Governance and Tactical IT Planning (Source: SDI) Figure 14, The Interdependenc e of IT Governance and Tactical IT Planning , depicts an interesting conundrum that has developed as organizations, particularly local governments, have become 187
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 28

dependent on information technology to meet community expectations for the delivery of services and for access to information. The difficulty is that effective delivery of IT services is equally dependent on both IT governance and IT tactical planning and that the effective governance of information technology is dependent on an effective approach to IT tactical planning and vice-versa.

As depicted in Figure 14, IT Governance is a strategic process in which, using the IT Strategic Plan as the foundation, the City’s executive team can continuously align IT directions and priorities with it s overall strategic plan and priorities. IT Governance needs to consider:
 The City’s long-term directions and priorities as set forth in its Strategic Business Plan and the IT Strategic Plan, as well as immediate priorities identified by the City Council.  Departmental priorities, and changes in departmental priorities, which can result in project requests. New projects and/or changes to existing projects are generally communicated to IT Governance and through a Project Charter which defines the scope and ob jectives of the project, its alignment with the City’s direction and priorities, the resource requirements, the funding sources, and the potential impact on other projects and/or existing business and operational applications.
 The status of current projects and the availability of user and IT resources.  Funding and changes in funding.
 That the City’s priorities will likely change over the course of the IT Strategic Plan and some of the projects may become of greater interest and importance to the City and this could result in their being moved up in the plan.

The decisions of the City’s IT Governance organization are generally embodied in:
 Updates to the IT Strategic Plan.
 Approving project charters which are provided to the requesting departments as well as to ITD.
 Decisions regarding project priorities and the allocation / reallocation of user and IT resources. Since the City’s internal resources are finite, IT Governance will likely need to have ITD make recommendations as to which projects or portions of projects are best handled by internal staff and which can be best handled by external resources such as staff supplementation firms and/or firms providing managed services.

Tactical IT Planning is a process in which the ITD management team allocates resources based on:
 The project priorities set by the IT Governance organization.  IT resource availability (including internal staff and external resources).  The status of projects that are currently being worked on by ITD and/or external service providers.
 Planned work such as the maintenance / refreshment of the City’s information technology infrastructure.
188
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 29

 Other planned work (such as maintenance activities in support of the City’s IT infrastructure and business / operational applications).
 Unplanned events such as user service requests and contingencies that may require the temporary diversion of resources from planned activities, and which can impact both planned activities and the schedule for their completion.

All this information should be considered in the development and maintenance of a “Tactical IT D Work Plan” which governs the allocation of ITD and external resources. This plan should be developed independently of the IT Strategic Plan and updated on a quarterly basis to reflect current ITD staff assignments and project status.

In municipalities that do not have effective approaches to IT governance , SDI often hears from members of the leadership team that they do not know what the IT support organization is working on and that projects seem to take too long to complete while managers and staff in the IT support organization will remark that shifting priorities and the reallocation of resources make it difficult to complete projects, that the queue of user requests exceeds the resources available to complete them, and that the respective responsibilities of user departments and the IT support organization are not well defined.

SDI has noted that:
 Organizations often struggle to establish processes for IT governance , and even if they succeed in establishing processes for IT governance th ose efforts often fail over time. The barriers to the establishment of sustainable processes for IT governance include that IT governance, and the need for it, are relatively new and not ingrained in organizational culture as is, for example, budgeting. Although City leadership teams often struggle with budgeting, they accept it as an activity that must be performed. IT governance, on the other hand, is seen by many already overburdened public executives as yet another collateral responsibility.  The maturity of some IT support organizations in the public sector is far less than their counterparts in the private sector. For example, it is far less common for IT support organizations in the public sector to have a resource allocation plan that identifies each staff member’s responsibilities, and the amount of time allocated to complete them. Staff members seldom charge their time to specific tasks and projects , so that even if there is a resource plan there is no way to identify variances from the plan, or why the variances occurred.

The IT Strategic Plan provides recommendations and directions that will enable the City to more effectively respond to new and/or changed requirements and to maximize the return / value for its investments in information technology; however, the realizatio n of these benefits is dependent on the implementation of changes in how the City governs information technology and plans for the use of IT resources. The recommendations for the City include that:
 The City should establish an enterprise process for IT governance. 189
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 30

 ITD should adopt practices and procedures to enable it to better manage and allocate IT resources and to manage projects.

Next Steps
The City should take the following steps as soon as possible. These steps can be implemented with existing resources and with minimal, if any, impact to City operations while providing significant benefits. These steps include:
 Activating IT Governance: Although the value of the effective use of information technology is well documented and accepted, the ability of an organization to realize greater value for its investments in information technology depends, to a large degree, on its ability to ensure the alignment of information technology plans and priorities with the organization’s long -term business goals. In the absence of a formal IT governance structure and a strategic vision for the use and funding of information technolo gy, this alignment is difficult to achieve and maintain. This can result in the diversion of resources from long-term infrastructure projects, additional costs, delays, false starts, the adoption of applications and systems that seem promising at first but that are dead-ends and create a disagreement among departments as to the allocation of resources.

IT Governance should be the responsibility of the City’s executive team (the City Manager , Assistant City Manager, and Department Heads) and be handled as a recurring agenda item for a regularly scheduled meeting of the City’s executive team. In order to facilitate this, the City should:
 Develop a project charter for IT Governance that defines the roles and responsibilities of the participants and a sample agenda.
 Conduct a preliminary IT Governance meeting with the objective of reviewing the status of the IT Strategic Plan and the next steps involved in implementation.  Develop formal plans for all projects that are currently in progress to obtain a more complete and current understanding of user and ITD resource commitments.  Allocate resources for the development of Project Charters; even at a very basic level, for any projects that are planned to begin during FY 2024/25, so that the City can plan for the resources needed for these projects or to reschedule them as needed.  Review the ITD sponsored projects and identify components of them that can be quickly implemented.
 Activating Tactical I T Planning: Even as ITD resources are being called on to work on projects, to maintain the City’s IT infrastructure, and to respond to user requests and problems, ITD must obtain a more detailed understanding of what projects ITD staff are working on, the expected tim eframe for the completion of the project, and the potential impact of any unplanned work on the project schedule. This should result in the development of a tactical work plan against which ITD can assess priorities. ITD should work with the City’s executive team to ensure that ITD resources are allocated appropriately and:
190
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 31

 Take proactive measures to reduce the number of user problems that require the attention of ITD staff by deploying self-help tools and knowledge bases, providing training for users, and developing “super” users within each department who can handle routine matters.
 Take steps to ensure that all user requests and problem reports are entered into the service desk management system in a timely manner, updated with resolutions, and closed out.
 Identify local, external service providers and to contract with them to provide on- demand support to assist ITD in resolving incidents or supplement ITD resources as needed.

Closing Thought
IT strategic planning is a process, not an event, and the development of this IT Strategic Plan is just the beginning of another cycle in the process for the City of Alameda. Organizations can realize some benefits from strategic planning in the absence of a continued commitment to the enterprise governance of information technology, but often those benefits diminish over time. Continued support for the IT Strategic Plan will need to come in terms of priorities, dollars, policies, and a strong commitment to changing culture and practices.

Change has become a constant factor, a
nd the successful implementation of the IT Strategic Plan may mean making compromises, and it will mean exercising patience, taking an enterprise- wide perspective, and maintaining a continued focus on revising the plan as events take place. Finally, it will take cooperation, communication, and flexibility to adapt to changing needs, expectations, information technologies, and resources.
191
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 32

Appendices
Appendix A - City-wide and Departmental Projects (Alphabetical by Project Name) Project Name Description Sponsor Status
Utilization of
ITD Resources
ITD Delivery
Effectiveness
Operational
Effectiveness
Cost
Improvement
Accela Mobile
LMS
Implementation
Implement mobile LMS which was acquired with the purchase of Accela. This module is needed to assist Fire inspections management.

City-wide Interview
X
Accela -
Implementation
Review
Conduct a post-implementation review of Accela to ensure that the product, as implemented, continues to meet the City’s business requirements. As a result of the review, the City may elect to re-engineer business processes to take better advantage of the features and functionality provided by Accela or to modify its implementation of the product or in the next 3- 4 years, consider replacing Accela with a different application.

Planning, Building,
and Transportation
(PBT)
SDI Post
Recommendation
X X
Access Control
System
Determine requirements and acquire a City-wide access
control system to replace current physical keys to buildings and offices.

City-wide Interview
(In Progress)

X
ActiveNet Post-
Implementation
Review
Conduct a post Implementation review of ActiveNet to ensure the City is fully utilizing the application, evaluate on-going support costs, and review user training requirements.

Parks and
Recreation (ARPD)
SDI
Recommendation X X
AI Analysis of
Surveys
Use AI tools to help City staff review, categorize, and learn from community survey instruments and other data received.

City-wide City Addition
(In Progress) X X
AI Analysis of
Email
Use AI tools to help City staff review, categorize, and learn from the emails addressed to the City Council.

City-wide City Addition
(In Progress) X X
Application
Integration Plan
Develop and implement an approach to improve information sharing between the City's core business applications. The City will likely need to consider both short-term and long-term approaches to information sharing with the short-term
approach including the development and implementation of standalone interfaces as needed, and the long-term approach being built on a more enterprise-wide approach such as
City-wide SDI
Recommendation

X X X X
192
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 33

Project Name Description Sponsor Status
Utilization of
ITD Resources
ITD Delivery
Effectiveness
Operational
Effectiveness
Cost
Improvement
middleware (specialized software that enables organizations to develop rule-based interfaces between business
applications).

Application
Training
Provide formal on-going staff training to ensure that users maintain sufficient competency levels in the use of business applications (i.e., MUNIS, Lucity, Accela, etc.) and productivity tools such as O365. The project would create a plan to ensure on-going application training is available to staff that can increase productivity, provide a significant return on the City’s investment in core business applications, and reduce the level of support from ITD.

City-wide SDI
Recommendation
X
X X
Artificial
Intelligence (AI)
Continuing identification and implementation of opportunities to use AI to improve City operations and administration.

City-wide City Addition
(In Progress) X
Artificial
Intelligence (AI)
Policy Creation
Develop City-wide AI policy. City-wide City Addition
X X
Body-Worn
Camera Upload
Options
Implement a solution that allows for body-worn cameras to upload video during shifts rather than at the end.

Police City Addition
X
Business
Resilience
Create a Business Continuity Plan for the City (or for the update of any existing plans) including the development of a Business Impact Analysis that identifies mission-critical business / operational applications, the potential impact on City operations should an application not be available, and the timeframe in which access to the applications must be
restored. Prepare a Disaster Recovery Plan that identifies the steps to be taken to restore mission-critical IT services and applications in the event of a natural or other disaster.

City-wide From 2017 Plan &
SDI
Recommendation
X
Cashiering
System
Evaluation
Review Tyler Cashiering to determine if reimplementation will address current load of issues. If unsuccessful, procure a replacement cashiering system.

Finance Interview
(In Progress) X
Cell Service /
Connectivity
Review and improve Wi-Fi and cell reception across
Community centers and Parks. The project will also implement dedicated connections to 911. The EmmaHood and
Parks and
Recreation (ARPD)
Interview
X X
193
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 34

Project Name Description Sponsor Status
Utilization of
ITD Resources
ITD Delivery
Effectiveness
Operational
Effectiveness
Cost
Improvement
Gymnasium buildings do not have phone lines or a dedicated connection to 911.

City-wide Wi-Fi Improve and expand Wi-Fi services to City facilities. City-wide City Addition X X X Chat on City
Website
Implement a tool such as "Citibot, " which provides a chatbot for the City website as well as a chat text and voice tool.

City Manager's
Office (PIO)
City Addition X X
Computer Spec
Review
Review computer specifications to ensure they meet the
demands of activities such as PBT users attempting to view PDF documents that are 400MB or larger.

City-wide City Addition
X X
Conference
Room Updates
Review, standardize, and upgrade Audio Visual equipment in conference rooms throughout the City.

City-wide SDI
Recommendation X X
CRM Upgrade Implement a more robust CRM solution than the Rent Registry (custom-built) one currently in use. The new CRM should have integration with phone and email systems to decrease manual entry by staff. Average number of monthly calls/emails is 700.

Rent Program City Addition
X X
Cybersecurity
Plan
Develop a plan generally conformant with the requirements of NIST (National Institute of Standards and Technology), or the International Organization for Standardization (IOS), or the SANS Institute that identifies the steps to be taken to prepare for a cyber-security attack, the steps required to identify intrusions, to neutralize them, and to identify exposures that lead to intrusions.

City-wide From 2017 Plan &
SDI
Recommendation
(In-Progress)
X X
Digital
Government Plan
Develop a Digital Government strategy that considers
governance and support for all aspects of e-Government and community outreach including the web site, social media, etc.

The objective of the Plan is to identify high-level requirements including usability, performance, and availability to support public “anywhere, anytime, any device” access to information and services.

City-wide From 2017 Plan &
SDI
Recommendation
X X
Electronic
Bulletin Boards
Replace graphic paper bulletins and bulletin boards posted around the City and upgrades them with Electronic Bulletin boards.

City Clerk Interview
X
Electronic Plan
Review
Implementation
Determine business requirements and acquire Electronic Plan Review software (e.g., Accela's EDR module or 3rd-party like Bluebeam).

Planning, Building,
and Transportation
(PBT)
Interview
X
194
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 35

Project Name Description Sponsor Status
Utilization of
ITD Resources
ITD Delivery
Effectiveness
Operational
Effectiveness
Cost
Improvement
Enterprise
Content
Management
(ECM) Strategy
Engage a consultant to perform a records management review for the City as well as to develop an ECM implementation plan for the City that provides for the continued adoption and implementation of Laserfiche including the migration any current document repositories from shared network drives and other locations to Laserfiche. The plan should also consider how the City can best use SharePoint or Microsoft Teams in conjunction with Laserfiche.

City-wide From 2017 Plan &
SDI
Recommendation
X X
Equity Data
Mapping in GIS
Improve our GIS accessibility/abilities/interface regarding equity related data sources so that we can better map our projects/programs/work relative to key demographic and
socioeconomic factors.

City-wide Workshop, Add
X X
GIS
Enhancements
This is an umbrellas project for the implementation of
enhancements to the City's GIS system including but not limited to:
a) Developing more detailed data maps to identify
where City funds are being spent in the community.
b) Updating parcel information to include lease and
other information required by BRED.
c) Including demographic information to support
diversity reporting.

City-wide Interview
(In Progress)
X X
Fire Records
Management
System
Identify a vendor to replace the Fire Department’s current RMS (Zoll) application and implement new platform.

Fire City Addition
X
GIS Governance This project would provide for the implementation of a process for the City-wide governance of GIS.

City-wide City Addition X X X X
Improved Digital
Catalog
Implement a new solution that searches for and displays the full catalog of the resources the Library offers to the public.

Library City Addition X X
Intranet
Development
Develop a City-wide intranet. (Closely tied to the "SharePoint Implementation" project.)
City Manager's
Office (PIO)
City Addition X X X
IT Governance Define and create a formal IT governance structure to assist in aligning the City's business objectives with ITD. Activities include the creation of a charter for an IT Governance
organization and any needed sub-committees, member
City-wide From 2017 Plan &
SDI
Recommendation

X X X X
195
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 36

Project Name Description Sponsor Status
Utilization of
ITD Resources
ITD Delivery
Effectiveness
Operational
Effectiveness
Cost
Improvement
selection, meeting agendas and schedule. Establish the
oversight structure for the acquisition and implementation of technology, improve communication about technology
projects, provide for organization-wide input into technology decisions, and establish the process for prioritization of technology needs.

IVR for Main
Planning Line
PBT's main line x6800 should be set up as a IVR with options to route to Planning, Permit Center, Building Inspections, Code Enforcement, Transportation Planning, and Sustainability divisions.

Planning, Building,
and Transportation
(PBT)
City Addition
(In Progress) X X
Karpel & Alameda
County
Configure Karpel to have direct access with Alameda County City Attorney's Office (CAO)
City Addition X X
Library Website
Redesign
Improved design and interface that incorporates best
practices used by public libraries across the Bay Area and California.

Library City Addition
X
Lucity
Implementation
Implement Lucity Work Order Management System with Parks & Recreation. Currently PW uses Lucity, and a shared system will increase efficiency of software support from ITD.

Parks and
Recreation (ARPD)
Interview
X X
Lucity Post-
Implementation
Review
Undertake a review of problems identified with the
functionality of Lucity because of software defects,
configuration issues, or user training. Determine if the use of additional features and functionality already licensed by the City can be leveraged to receive a higher return on investment (ROI). Identify opportunities to improve business processes, further automate transactions and create an action plan, cost estimates, and a timeline for the remediation of findings.

Public Works (PW) SDI
Recommendation
X X
MDT
Replacement
project
Replaces outdated and end of life MDTs in Police vehicles. (Please note that the MDT replacements are handled by Public Works' Fleet Department with ITD supporting only as needed).

Police Interview
X
NextRequest
Implementation
Explore and implement additional features of NextRequest including add-ons that will help to better handle PST files.

City Clerk Interview X
Office 365
Migration
Implement Office 365 across all city departments by
determining the application needs for each department,
City-wide Interview
(In Progress) X X X
196
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 37

Project Name Description Sponsor Status
Utilization of
ITD Resources
ITD Delivery
Effectiveness
Operational
Effectiveness
Cost
Improvement
provide comprehensive training to all users, and plan ongoing support and maintenance requirements.

On Premises
Server Upgrade
Migrate two or four on-premises servers to a virtual equipment for DR purposes using HyperV and Rubrik.

Library Interview X X X
Ongoing GIS
Mapping
Edit GIS layers that are part of that zoning map or the cartographic skills to publish a user-friendly map. PBT maintains a Zoning Map of the City that needs to be
periodically updated; the Zoning Map is a legal document.

Planning, Building,
and Transportation
(PBT)
City Addition
X X X
Online
Dashboard
Implement a tool like Envisio, which provides a platform that creates an online dashboard that we could use for City reports like the Strategic Plan, Climate Plan, Transportation Plan, and more.

City Manager's
Office (PIO)
City Addition
X X
Online Payments Implement an online system that allows the community to make online payments for events such as wedding bookings.

Residents currently mail in paper checks.

City-wide Interview
(In-Progress) X X
Organizational
Change Mgt.

Establish a consistent and proactive approach to overcoming resistance to change by forming a “Coalition for Change” strategy, communicating a sense of urgency for change and the benefits that the change will provide, taking a systematic approach to the identification and removal of obstacles to change, creating a program to celebrate successes, and
identifying opportunities for short-term wins.

City-wide From 2017 Plan &
SDI
Recommendation
X X
Permit Center
Queueing
Find a suitable replacement for "Qminder, " a queue
management software that helps businesses improve the
customer experience by automating the process of managing lines and queues.

Planning, Building,
and Transportation
(PBT)
City Addition
X X
Property / Asset
Management
Application
BRED needs an application to track property/lease information that can share information with the City's GIS system. The project will include an evaluation of whether Lucity can meet BRED's requirements.

Base Reuse and
Economic
Development
City Addition
X
Realtime Crime
Center
Creates a centralized technology-driven hub designed to support law enforcement agencies in tracking and responding to crimes and issues around the city in real time. RTCCs uses advanced technologies like CCTV cameras, license plate
Police Interview
X
197
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 38

Project Name Description Sponsor Status
Utilization of
ITD Resources
ITD Delivery
Effectiveness
Operational
Effectiveness
Cost
Improvement
readers, gunshot detection systems, and more to monitor the City in real time.

Replace Police
Dispatch
Telephone
System
Replace Police Dispatch telephone system with a cloud-based solution for maximum resilience with no dependencies on antiquated technology such as analog telephone lines.

Police Interview
X
Security camera
plan
Create an implementation plan for the expansion of security cameras within City facilities (Library upgrades and expansion, monitored centralized cameras system in all buildings and park, Police expansion into the property and evidence room).

City-wide Interview
X
SharePoint
Implementation
Determine the hierarchy of departments and permissions in each area, provide training to users on how to use SharePoint, including how to upload documents, how to collaborate on documents, how to use SharePoint's features, and keep City staff informed about the SharePoint rollout.

City-wide Interview
(In Progress)
X X
Staff Status and
Scheduling
Software
Determine operational needs, acquire application, implement, and train staff on a scheduling system to replace TeleStaff. The application should also use AVL feeds to provide real time status updates.

Fire Interview
X
Station Alerting
System
This project would provide for the procurement and
implementation of a new station altering system.

Fire City Addition X
Upgrade ACCELA Upgrade Fire's implementation of ACCELA to a current version. Fire City Addition (In Progress) X
Web-Site
Upgrades
Implement upgrades to the City’s Website including
modifications to make the site ADA compliant.

City-wide City Addition X
198
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 39

Appendix B - ITD Projects Not Prioritized (Alphabetical by Project Name) Administrative
Network
Prepare specifications for the procurement and
implementation of wired and wireless administrative
networks. The specifications should include requirements for network security including monitoring and periodic
vulnerability assessments.

ITD From 2017 Plan & SDI
Recommendation

X

Cloud Strategy Create a formal cloud strategy that identifies services and applications that could be moved to the cloud along with the costs and benefits involved. The project would include the development of pilot projects to better assess the suitability of the cloud for meeting the City's business objectives.

ITD SDI
Recommendation

X X X X
Communication
& Collaboration
Implement an effective method to communicate and
collaborate with the City departments in order to provide a more robust level of support to them. Communication such as information regarding ITD’s plans, upcoming projects,
objectives, and performance (including acknowledging
problems, celebrating successes, and reporting on service levels, project and request status, and workload).

ITD From 2017 Plan & SDI
Recommendation
X X
GIS Resource
Consolidation
Determine the feasibility of consolidating the City's GIS resources into a single organizational unit. If feasible, develop a plan for the consolidated group including roles and
responsibilities, staffing, training, and technical resource allocations.

ITD SDI
Recommendation

X X X X
IT Asset
Management Plan
Develop a detailed inventory of its hardware environment by utilizing an inventory tool such as Lansweeper to gather, in a central location, key attributes of the City’s technology assets including software licenses. Once the initial list has been created, ITD should physically inventory all other devices not attached to the network and record those attributes manually.

In addition, this project would a policy and practice to continuously update the inventory as changes in the
environment occur.

ITD SDI
Recommendation

X X X X
Project Name Description Sponsor Status
Utilization of
ITD Resources
ITD Delivery
Effectiveness
Operational
Effectiveness
Cost
Improvement
199
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 40

Project Name Description Sponsor Status
Utilization of
ITD Resources
ITD Delivery
Effectiveness
Operational
Effectiveness
Cost
Improvement
IT Asset
Refreshment Plan
Create an annual budget allocation for the replacement of servers, desktops, laptops, and network infrastructure
devices. This proactive strategy will keep the maintenance on equipment to a minimum, provide equipment that will operate effectively with new software, and ensure upgrades to the communications network, access points, Wi-Fi coverage, and other necessary telecommunication devices are performed on a routine basis.

ITD SDI
Recommendation
X X
IT Policies &
Procedures
Review, update, and/or create IT policies that will form the backbone for technology security, consistency,
communication, and support which will guide the use of
technology to ensure a secure, reliable, and supportable environment. The project would include policies and
procedures governing the use of technology, City issued cell phones, hardware/software refreshment, data retention
(including email), social media, security, standards, and access.

ITD SDI
Recommendation

X X X X
ITD Staffing Organize and staff ITD with additional FTE including an Administrative Assistant, Network Administrator and
eventually a Security Analyst.

ITD SDI
Recommendation (In
Progress)
X X X
Mobile Device
Security
Create a Mobile Device Security Policy (MDSP) which defines the types of the resources that can be accessed via mobile devices, which types of mobile devices are permitted within the City, the degree of access that various mobile devices have, and how the acquisition of mobile devices will be handled.

ITD SDI
Recommendation
X
Network
Resiliency
Introduce backup internet connections at each City location.

In the event the locations lose access to the Municipal Area Network (MAN) access to the internet will not be interrupted so access to internet-based systems will persist.

ITD Interview
X
Project
Management
Office (PMO)
Create a Project Management Office (PMO) within ITD to
provide expertise and oversight to help ensure that projects are completed successfully and on-schedule and to assist ITD ITD From 2017 Plan & SDI
Recommendation X X X X
200
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 41

Project Name Description Sponsor Status
Utilization of
ITD Resources
ITD Delivery
Effectiveness
Operational
Effectiveness
Cost
Improvement
in working with the City's IT Governance structure. At a minimum, establish formal project management policies and procedures for all enterprise IT projects.

Replace Internal
Telephone
System
Replace City-wide internal telephone system with more
modern features and capabilities with no dependencies on antiquated technology such as analog telephone lines.

Integrate with Microsoft 365 products for best user
experience.

ITD Interview
X X
Resource
Management Plan
Create a plan that leverages both internal and external, as well as on-site and remote resources, to support critical
applications and services.

ITD From 2017 Plan & SDI
Recommendation X X
Root Cause
Analysis
Create a structured approach to identify the underlying cause of common problems and remedy them so that they do not
continue to needlessly consume ITD resources. Root-cause analysis is a method of problem solving used for identifying the actual or root causes of faults or problems.

ITD SDI
Recommendation
X X
Service Desk
Improvements
Continue the expansion of ITD Help Deks by publishing
statistics regarding ITD’s conformance to service levels, capturing time worked against tickets, establishing a self-help knowledge base that is readily available to users, providing the ability for users and ITD staff members to collaborate on the resolution of tickets or for users to monitor the status of their requests, developing a formal process for the review of Help Desk tickets, using the application to inventory IT assets or link ServiceDesk to a separate IT asset inventory
application in order to tie asset information back to any related service ticket.

ITD SDI
Recommendation

X X X X
Service Level
Agreements
Develop service level agreements with City departments and external service providers to provide guidelines regarding the scope of service, problem resolution processes, user/vendor responsibilities, and other delivery terms.

ITD SDI
Recommendation X X
Staff Succession
Plan
Create a comprehensive succession plan for ITD staff. Since much of the technical knowledge and expertise is held by staff with only informal documentation relative to the

ITD SDI
Recommendation X X
201
The City of Alameda
Information Technology Strategic Plan

November 18, 2024 Page | 42

Project Name Description Sponsor Status
Utilization of
ITD Resources
ITD Delivery
Effectiveness
Operational
Effectiveness
Cost
Improvement
server/storage environment, application interfaces,
databases, and network configurations a detailed strategy for staff advancement and replacement is critical.

Technical
Documentation
Create comprehensive documentation for components of the City’s IT infrastructure including wired and wireless networks, servers, storage devices, and business applications and the procedures required to maintain them.

ITD SDI
Recommendation X X

202
Information Technology Strategic Plan

Prepared by:

October 17, 2024

203
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | i

This page has been intentionally left blank

204
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | ii

Table of Contents

INTRODUCTION ................................................................................................................................. 1 SCOPE & OBJECTIVES ................................................................................................................................ 1 DOCUMENT ORGANIZATION ........................................................................................................................ 1 EXECUTIVE SUMMARY ........................................................................................................................ 3 OVERVIEW .............................................................................................................................................. 3 DEVELOPMENT OF THE IT STRATEGIC PLAN ...................................................................................................... 3 SYNOPSIS OF THE IT STRATEGIC PLAN ............................................................................................................ 4 STRATEGIC PLANNING ASSUMPTIONS ................................................................................................ 8 OVERVIEW .............................................................................................................................................. 8 GUIDING PRINCIPLES FOR THE CITY ............................................................................................................... 8 INFORMATION TECHNOLOGY TRENDS ........................................................................................................... 10 PROJECT SCHEDULE ........................................................................................................................ 17 OVERVIEW ............................................................................................................................................ 17 METHODOLOGY ..................................................................................................................................... 17 IT STRATEGIC PLAN PROJECT PORTFOLIO ...................................................................................................... 18 PROJECT SCHEDULE AND COST PER FISCAL YEAR ........................................................................................... 19 CONCLUSION .................................................................................................................................. 27 OVERVIEW ............................................................................................................................................ 27 CRITICAL SUCCESS FACTORS ..................................................................................................................... 27 NEXT STEPS .......................................................................................................................................... 30 CLOSING THOUGHT ................................................................................................................................ 31 APPENDICES ................................................................................................................................... 32 APPENDIX A – PROJECTS SORTED BY PROJECT NUMBER .................................................................................... 32 APPENDIX B – PROJECTS SORTED BY CATEGORY AND RANKING ........................................................................... 39

205
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | iii

Revision Log

Date Description
September 18, 2024 Initial client working draft of the IT Strategic Plan October 17, 2024 Final document

206
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 1

Introduction
Scope & Objectives
This document, entitled Information Technology Strategic Plan (IT Strategic Plan) was developed for the City of Beverly Hills (City) by SDI Presence LLC (SDI).

The IT Strategic Plan will enable the City to better allocate its information technology resources and to obtain greater benefits for its investments in information technology. Although the IT Strategic Plan provides a holistic view of the City’s information technology needs and priorities at the present time it does not attempt to predict the future; but rather, it provides a baseline that will enable the City to more effectively allocate resources based on business priorities and to re-allocate them as needed to effectively respond to new and/or changing requirements.

Coupled with an effective process for the governance of information technology, the IT Strategic Plan will enable the City to proactively change its information technology environment (including processes, organization, people, and infrastructure) to remediate service delivery issues and to meet changing requirements, to obtain greater value for the investments being made in information technology, and to improve the City’s ability to respond to future requirements.

Document Organization
Figure 1 – Document Organization (Source: SDI)
As depicted in Figure 1, Document Organization, this document is structured as follows:
 Introduction: Provides information regarding the scope and objectives of the IT Strategic Plan and the organization and contents of the document.  Executive Summary: Provides a high-level summary of the development of the IT Strategic Plan and the results of the planning process.
 Strategic Planning Assumptions : Provides information regarding IT strategic planning considerations such as guiding principles and information technology trends.  Project Schedule: Provides information regarding the methodology used in the development of the IT Strategic Plan, the Project Portfolio, Project S chedule, Costs Per Fiscal Year, and Gantt charts.
 Conclusion: Provides final project thoughts and the next steps the City should consider in implementing IT Strategic Plan projects.
207
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 2

 Appendices: Provides the IT Strategic Plan Project Portfolio.

Terminology and Numbering
SDI has worked to make this document readable by persons who are not information technology professionals and to that end, we have minimized the usage of technical jargon and where this is unavoidable, we have avoided the use of acronyms. The City’s Information Technology Department is generally referred to as either ITD or City IT to avoid confusion with information technology (IT) in general.

Figures and tables have been numbered consecutively from the beginning of the document.

208
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 3

Executive Summary
Overview
SDI facilitated the development of th e IT Strategic Plan for the City during 2023 -2024. The active participation of the City’s Chief Information Officer (CIO), Assistant CIO, City Manager, department heads, and key user stakeholders ensure d that the resulting plan is highly relevant to the City’s objectives and priorities. At the same time, SDI brought a perspective of information technology trends and best practices which are applicable to municipal government in the State of California.

This executive summary provides a brief overview of:
 How the IT Strategic Plan was developed.
 Review of the Project Portfolio and Prioritization Process.  The completed project roadmap.

Development of the IT Strategic Plan

Figure 2 – Development of the IT Strategic Plan (Source: SDI) Figure 2, Development of the IT Strategic Plan, provides a high- level view of the activities that were performed and the deliverables that were created leading up to the IT Strategic Plan itself. As shown, the planning process is oriented around three phases:
 In the first phase, “Where are we today?” , SDI conducted an online survey and interviewed key user stakeholders to identify the business and operational applications being used, issues and obstacles that the users were encountering, opportunities to improve business processes, future needs, and planned projects.
209
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 4

 In the second phase, “Where do we want to go?” , SDI used the information from the first phase to develop an IT Assessment Report that provided the basis for:
 A review of the City’s conformance to best practices for information systems.  A gap analysis between the City’s current conformance to best practices to desirable targets.
 An analysis of the City’s strengths, weaknesses, opportunities, and threats (SWOT Analysis).
 Findings related to the most significant information technology challenges facing the City.
 Recommendations to remediate the findings.
 In the third phase, “How do we get there?” , SDI:
 Developed a portfolio of strategic projects for the IT Strategic Plan based on the findings and recommendations, user needs, and projects that were already in-progress or planned. The portfolio was reviewed with the City, revised as needed, and then used as the basis for project prioritization by the ITD management team during which the projects were prioritized and “laid out” over a timeline.
 Developed granular project schedules.
 Developed the IT Strategic Plan (this document).

Syno psis of the IT Strategic Plan
Project Portfolio
SDI developed a portfolio of proposed projects (See Appendices). The portfolio includes projects that are:
 Presently in progress.
 Planned, but not yet in progress.
 Identified as future needs through the interviews and workshops conducted with the City’s departments.
 Identified by SDI to implement the recommendations identified in the plan.

The Project Portfolio was reviewed with the City’s CIO and Assistant CIO who, in turn, met with City departments to reach a consensus as to the projects to be included in the final Portfolio as projects were added, removed, or consolidated during that internal review. Upon completion of the review, the City’s CIO provided a prioritized list of projects which was used to pre -stage the projects over a timeline which included:
 Projects that were in progress during Fiscal Year 2024/25.  Projects planned during Fiscal Year 2024/25 - FY2025/26. 210
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 5

 Projects planned during Fiscal Year 2026/27 – FY2027/28.  Projects planned during Fiscal Year 2028/29.

Project Prioritization
SDI mapped the projects over the next five fiscal years to accommodate resource and funding constraints. The final project plan is shown in Figure 3, “Blue Wall” Project Roadmap.

Figure 3 – “Blue Wall” Project Roadmap (Source: SDI)
Gantt Chart
Based on the project roadmap provided in Figure 3, “Blue Wall” Project Roadmap, SDI developed a Gantt Chart to provide a more granular view of the project roadmap including work in progress, work planned, and the number of concurrent projects in each time period. Please see Figure 10.1 & 10.2 in the Project Schedule Section of this document.

Estimated Cost Per Fiscal Year
Based on the Gantt Chart, SDI was able to allocate project cost per Fiscal Year and this is shown in Figure 4, Estimated Cost by Fiscal Year. The cost model is based on the following assumptions:
 Project cost is based on an average of the low and high estimated costs (in $000’s) provided in the IT Strategic Plan Project Portfolio and is labelled as “Mid-Range” Cost.  Except for projects that have annual recurring costs (such as for the annual refreshment of the City’s IT infrastructure or for services contracts), the cost for a project is assumed to be fully incurred in the Fiscal Year in which the project commences even if the project’s duration spans Fiscal Years.
211
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 6

 On-going costs for new positions are not presented as those costs will be included in future City budgets under personnel or contract categories.
 Costs are not provided for projects that are in- progress since these have already been budgeted.
 The costs for the maintenance of existing business and operational applications and/or application services are also not included.

For each project Figure 4 provides:
 The ID number of project.
 The name of the project.
 The project sponsor.
 Project status.
 The Priority category (A, B, C) and the ranking within the category.  The estimated mid-range cost (in $000’s).
 The FY in which the cost is incurred.

The estimated costs per FY are as follows:

FY 2025/26: $ 3,068
FY 2026/27: $ 2,633
FY 2027/28: $ 2,718
FY 2028/29: $ 2,463
Total Estimated Program Cost: $ 10,880

212
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 7

Figure 4 – Estimated Cost Per Fiscal Year (Source: SDI) 213
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 8

Strategic Planning Assumptions
Overview
This section of the IT Strategic Plan provides information regarding the assumptions that helped formulate the plan including the guiding principles for the City (A gility, Enterprise Information Technology Governance, and Balancing Total Cost of Ownership for IT with Value on Investment), and general trends in information technology that are applicable to the City (including Artificial Intelligence and Machine Learning, The Emergence of the “Dataverse” , The Transformation of IT Organizations, Mobility and the Consumerization of IT, Organizational Change Management, and “Smart” Communities.

Guiding Principles for the City
Several key factors or guiding principles that enable
organizations to effectively govern and manage the
sustainable delivery of IT services to user communities and to obtain greater value for their investments in
information technology includ e agility , enterprise IT governance, and balancing the organization’s total cost of ownership for IT (TCO) with the value obtained for that investment.

Agility
Agility means different things to different people, disciplines, and organizations. Gartner, a leading information technology advisory practice, defines organizational agility as “the ability of an organization to sense environmental change and respond efficiently and effectively to that change”.

Organizational agility has become increasingly critical for public -sector organizations that must be able to effectively respond to:
 Increased public expectations for access to services and information.  Increased requirements for the reporting of information to regulatory agencies.  Changes in the demand for services and revenue as a result of shifts in the economy.  The emergence of new trends in information technology as well as changes in existing trends.

Organizational agility is also related to sustainability, i.e., the ability of an organization to continuously deliver services as well as to optimize, i.e., the ability of an organization to maximize value/return on investment.

Enterprise Information Technology Governance
Although the value of the effective use of information technology is well documented and accepted, the ability of an organization to realize greater value for its investments in information technology depends, to a large degree, on its ability to ensure the alignment of information technology plans and  Agility
 Enterprise Information
Technology Governance
 Balancing Total Cost of
Ownership for IT with Value on
Investment
214
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 9

priorities with the organization’s long-term business goals. In the absence of a formal IT governance structure and a strategic vision for the use and funding of information technology, this alignment is difficult to achieve and maintain. This can result i n the diversion of resources from long -term infrastructure projects, additional costs, delays, false starts, the adoption of applications and systems that seem promising at first but that are dead -ends and create a disagreement among departments as to the allocation of resources.

Data governance is a critical subset of IT governance and has become even more so with the emergence of data-driven processes such as artificial intelligence, business analytics, and business intelligence. The objectives of data governance include improving data quality, reducing the number of redundant “data silos” within the organization, promoting the effective exchange of information between business applications, and ensuring that data is retained and secured in compliance with regulatory requirements. With the increased availability of information through the implementation of SMART devices, data governance has become a “must have” otherwise the old IT maxim of “garbage in, garbage out” applies.

Although processes for the enterprise governance of information technology are relatively easy to establish, many public sector organizations find it difficult to sustain them over time since:
 The normal changes in an organization’s management team that typically occur over time may diminish support for IT governance.
 Although IT governance is vital for IT -enabled organizations it is not embedded in the organization’s culture the same way budgeting is , for example, and can be perceived by overburdened decision-makers as yet another ancillary responsibility.  Key decision-makers may be more focused on the needs of their units rather than on the needs of the enterprise.

As a result, agile approaches to the enterprise governance of IT often work best particularly when IT governance is added as an agenda item to an existing meeting of an organization’s executives. As an agenda item, the IT governance meeting need be no longer than needed, and if there is no new business to discuss, it can be bypassed.

Balancing Total Cost of Ownership for IT with Value on Investment In budget-challenged environments, decision-makers’ first reaction is often to find ways to reduce expenses. Organizational spending on IT often comes under increased scrutiny, particularly where this spending has increased over time. Although organizations have sometimes focused their efforts on doing more at less expense, a more sustainable approach in information technology is to accomplish more with existing investments.

Organizations seeking to better manage their total cost of ownership for IT and the value that they receive for their investments in IT should consider that:
 Not all IT spending is readily evident. It is not unusual for organizations to find that they have ‘hidden’ spending on IT resulting from organizational units independently contracting for, or 215
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 10

providing, IT services some of which may duplicate IT services already provided by the IT organization or other organizational units. This duplication increases the total cost of ownership for IT while reducing the value that the organization obtains for this spending. The ubiquity of Cloud -based, software services (Software -as-a-Service) accounts for much of this spending.
 Reductions in IT spending that are not well planned can result in organizations incurring additional costs through factors such as lost productivity, etc. In the absence of information regarding how an organization is using information technology, organiza tions can realize unanticipated expenses due to reductions in IT investments, including both direct costs and indirect costs.
 Organizations often find that, on review, they are not always making full use of the functionality provided by their business applications. They also find they are incurring expenses for multiple business applications that provide similar functionality (su ch as purchasing and warehouse management or for support processes such as document management). In general, IT industry sources consider organizations sometimes make use of only 50% of business application functionality.
 Another factor that contributes to reductions in an organization’s return on investment is the use of a wide array of ad-hoc databases and spreadsheets by individual business units. These “shadow systems” are often developed and updated inconsistently and may not even be known to the IT organization or other business units. These applications can impede business continuity since they are not always backed up consistently or adequately protected from cyber threats.

Information Technology Trends
Not only does information technology continually evolve but the pace of this evolution is continually accelerating. As a result, the ways in which organizations use information technology are changing as are the expectations of internal and external stakeholders for access to information and services.

A key consideration in evaluating the potential impact of information technology trends is that they do not impact the operations and priorities of organizations to the same degree. Although predicting the future of information technology can be problematic, as depicted in Figure 5, Strategic Trends in Information Technology, SDI has identified six key information technology trends that:
 Are relevant to the City’s IT Strategic Plan, will likely impact the City’s business objectives and priorities in the future, and shape how ITD implements this IT Strategic Plan.  Have become mature (i.e., are stable, scalable, and that are effectively supported), including artificial intelligence and machine learning , the “ Dataverse, ” the transformation of IT organizations, mobility and the consumerization of information technology, and “SMART” Communities.

216
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 11

Figure 5 – Strategic Trends in Information Technology (Source: SDI) Artificial Intelligence and Machine Learning
There has been considerable progress in the development of tools that enable organizations to effectively navigate through and consume a growing body of information in real time as well as to personalize the delivery of information and services. Artificial Intelligence (AI) can:
 Engage in interactions with humans using Natural Language Processing (NLP) or with other machines (“chat boxes”).
 Interpret information provided by a user and take the appropriate action(s), based on either a predetermined set of responses or utilize machine learning algorithms to respond to the user.
 Internalize new information and/or trends and adapt responses as needed (Machine Learning).
 Reduce the need for human input to respond to questions or to requests for services, thus increasing responsiveness and minimizing lost productivity compared to traditional service desk processes.

Potential uses for AI in municipal government include:
 Facilitating interaction with members of the community who are seeking online access to City services and information (including making it easier for members of the community to navigate the City’s website and enabling the City to more rapidly identify and respond to community requirements , particularly where the response involves multiple City departments.
217
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 12

 Enabling City staff members to effectively complete tasks that are not performed routinely, enabling them to take on new assignments as needed with a minimum amount of training, to access knowledge bases , and t o securely perform tasks such as resetting and managing passwords and resolving common device and/or network issues without needing to complete a ticket and wait for a response from the service desk.

AI tools are typically available as cloud -based services and can be activated, configured, and implemented with relatively less time and expense than traditional business applications.

The Emergence of the “Dataverse”
Although there is a commercial product from Microsoft (“Microsoft Dataverse”), this trend refers to the creation of generic, centralized repositories of information to support information sharing and research. O ver time these repositories have also been referred to as “data warehouses” and “big data” but despite all of the attention that has been given to the potential benefits of creating these repositories, municipalities have been slow to adopt them. Barriers to adoption have included:
 The level of investment and resources required to:
 Establish and maintain an enterprise approach to the governance and management of data to support the creation and the maintenance of the repositories.  Gather information from disparate applications with each application having unique data models.
 Provide tools that enable trained, but otherwise non-technical, users to access the data in the repository.
 Provide support.
 The implementation of enterprise software suites (such as ERP products) that provide reporting and query tools and that provide a more limited, but readily available, approach to data retrieval and analysis.
 The proliferation of individual dashboards based on products such as PowerBI that can be more rapidly and less expensively deployed.

Nonetheless, the continued development and maturity of tools that support the establishment of repositories, the development of models for enterprise data governance and management, the development of national standards for information sharing, the need for regional collaboration on key issues facing municipalities (such as homelessness and crime) as well as the potential benefits of, at least, selectively integrating data related to decision making and policy formulation, suggest that municipalities will be considering the creation of repositories or participating in regional efforts. 218
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 13

The Transformation of IT Organizations
Figure 6 – Conceptual IT Service Delivery Model (Source: SDI) Figure 6, Conceptual IT Service Delivery Model, depicts SDI’s model of how municipalities will need to govern, manage, and deliver IT services to internal and external user communities in the future.

Over the last decade there have been substantial changes in both information technology (including the maturation of the Internet, Cloud -based services, and mobility) as well as how public sector organizations use information technology (with digital services being integral to how they collaborate with their regional partners, communicate with the public, and provide services).

Despite these changes in information technology , and municipalities increased dependence on information technology, the ways in which cities govern the use of IT and manage the delivery of IT services have remained relatively static and informal. The adoption of governance models for IT and IT organizations that were based on traditional, centralized IT service delivery models have limited the ability of organizations to keep pace with changes in public expectations, developments in information technology , as well as to obtain greater value for their investments in information technology.

With the continued movement of commercial -off-the-shelf (COTS) business and operational applications from on-premises installations to cloud-based services (Software-as-a-Service) and as cloud-based IT infrastructure becomes increasingly cost competitive with on -premises facilities, it is thus reasonable to expect that IT support organizations that are primarily service providers today will find that they will need to modify organization and staffing to become:
 Service managers that can manage and support the delivery of on-premises and cloud-based services.
219
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 14

 Service brokers that are able to assist user organizations in finding the optimum mix of services for their specific requirements.

Mobility and the Consumerization of IT
The consumerization of information technology refers to the use of personal devices, most often mobile, to obtain access to organizational services and information (also sometimes referred to as BYOD – bring your own device). Mobility fundamentally changes the paradigm of the standard desktop computing model where the computer, the operating system, the applications, plus the user’s data and preferences are integrated into a single platform that remains in the same location.

Whereas desktop computing is device and location centric, mobility is user centric.

This is particularly relevant to municipalities as members of the community use a variety of devices to access city information and services. This has several implications including:
 The proliferation of devices is a challenge for support organizations as users attempt to obtain connectivity to secured wireless networks and utilize applications. It is estimated that the introduction of mobility in an organization can increase service desk workload by as much as 10%.
 User access to services from mobile / wireless devices potentially exposes both the organization’s assets and the mobile device to cyber-attacks.  Public-facing solutions need to be both open and adaptive to optimize user experience from a universe of devices, (each with different screens, browsers, and operating systems) that are continually evolving.

Organizational Change Management
There is always a degree of resistance to change, however beneficial, since executives, managers, and staff sometimes find comfort in established processes even when they find them frustrating.

Overcoming this resistance to change in a thoughtful, open, and consistent manner is not only critical to successful implementation of new business and operational applications but also in enabling an organization to better manage its total cost of ownership for information technology and to obtain the greatest possible return for its investments in information technology.

In particular, the introduction of new enterprise -wide applications and/or modifications to existing applications often involves changes to existing business processes to obtain the greatest possible benefit from the applications. This presents two distinct challenges:
 Resistance to change by the prospective users of a new business application or the implementation of significant changes to an existing application can jeopardize successful implementation, extend the project timeline, and limit the ability of an organization to fully realize the expected value for its investment.
 The implementation of new automation and changes to existing business processes have the potential to disrupt operations and impact the ability of an organization to provide services.

220
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 15

Organizational change management (OCM) provides a methodological framework for managing the organizational impact of the implementation of new automation including changes in business processes, changes in organizational structure, and changes in culture (including changes in focus and changes in how performance is measured) by focusing on improving communication, setting expectations, and working to minimize the impact of misinformation.

In 1995, John Kotter introduced an eight-step process for fostering the successful implementation of changes in organizational structure, business processes, and culture. 1 Kotter’s framework for change
management includes:
 Creating a shared sense of urgency regarding the need to change.  Forming a guiding coalition across the organization to support change.  Creating a vision for change.
 Communicating the vision to the organization.
 Preparing to overcome obstacles.
 Planning for, and delivering, short-term wins to sustain momentum.  Remaining committed to the long-term process required to transform organizations.  “Anchoring” the changes in the culture of the organization (the “new normal”). “Smart” Communities
The implementation of “Smart” technologies is unusual in that this trend is not a single technology, per-se, but rather represents an integrated approach to the utilization of emerging information technologies and technology trends. The objectives of “Smart” implementations include enabling organizations to more effectively identify trends (such as incidents, traffic, power demand, parking space availability, etc.); to re -allocate or reprogram resources in response to these trends; and to support programs such as “Smart” energy-efficient buildings, autonomous vehicles, and electronic payment processing.

“Smart” capabilities can also benefit members of the community and visitors by enabling them to obtain information through smartphone apps regarding employment services, public safety, healthcare, social services, transit and driving route information, parking, and transit service options, etc., as well as to report incidents and concerns.

The Internet of Things (Io T) provides the foundation for many “Smart” initiatives. For some time, devices have stored data so that it can be manually downloaded and accessed on demand.

Combining this capability with the ability to access the internet (and thus the ability to both autonomously receive and transmit information) has brought us to the IoT. McKinsey, a leading management consulting firm, has suggested six distinct types of applications to consume this information; tracking behavior, enhanced situational analysis, sensor -driven decisions analytics,

1 https://www.kotterinc.com/methodology/8-steps/
221
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 16

process optimization, optimized resource consumption, and complex autonomous systems (such as collision avoidance).

The effective implementation and continued use of Smart technologies includes:
 The development and implementation of open and collaborative processes to develop the visions for the implementation of Smart technologies as well as for the continuing governance of the initiatives.
 The implementation of secure, resilient, and ubiquitous wireless services that enable access to smart services from any device, anywhere, and anytime and that can scale to meet expected surges in demand (such as events) as well as unexpected surges in demand.  The development of a comprehensive plan for the implementation and continuing support of the Smart services that leverages public / private partnerships as well as regional partnerships.
 The development and implementation of a plan to leverage the information produced by smart devices, including the use of business intelligence, business analytics, and artificial intelligence.

One of the inhibitors to the full use of Smart technologies is that they are typically implemented as siloed, departmental applications rather than as an enterprise program, since organizations often wish to gain experience in a limited area first, external funding is often targeted to specific initiatives, and the time to implementation, immediate cost, and risk are less with siloed applications.

222
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 17

Project Schedule
Overview
Change has been, and continues to be, a constant concern for public sector executives who must often respond to increased public expectations and new mandates with limited resources and with information technology environments that are not agile. Without a plan to manage and respond to change, organizations tend to become reactive rather than proactive and, as a result, obtain reduced benefits for their investments in information technology. This multi-year IT Strategic Plan sets forth a roadmap for the City that identifies current technology projects and, to the extent possible, future technology needs. The plan lays out the strategy and steps to meet those needs and to enable the City to sustainably deliver high quality services to its internal user community and the public.

Methodology
Figure 7 – Development of the IT Strategic Plan for the City of Beverly Hills (Source: SDI) As depicted in Figure 7, Development of the IT Strategic Plan for the City of Beverly Hills, SDI worked collaboratively with the City to develop a detailed perspective of the issues facing the City in its use of information technology, identify the known and potential opportunities to make better use of information technology, and understand user needs. This information was developed through a highly interactive process that included:
 Development of an IT Assessment Report that documented where the City is today and where it needs to be in the future through a comprehensive and participative process that included:
 A survey that was available to all City employees with an e-mail address.  Interviews with user stakeholders from the City ’s departments, and interviews with the ITD’s management and staff.
223
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 18

 A r eview of the progress made in completing the projects identified in the 201 5 IT Strategic Plan.
 A review of the City’s conformance to information technology best practices.  A series of findings and recommendations that, along with the information provided by the interviewees, provided the basis for the development of the IT Project Portfolio, and, in turn, the development of the IT Strategic Plan.
 A briefing with the City’s management team regarding the status of the project and the key findings and recommendations identified in the IT Assessment Report.  A detailed r eview of the project portfolio by ITD and key user stakeholders. Through this process, additional projects were identified, and the projects were then prioritized by the City.  A review of the revised project portfolio by ITD and SDI. As result of this review, SDI developed and reviewed the pre-staged project schedule (the “Blue Wall”) with ITD and then developed the project Gantt chart and the estimated cost per fiscal year.  Development of the IT Strategic Plan.

IT Strategic Plan Project Portfolio
An important component of IT Strategic Plan is the portfolio of proposed projects. The portfolio includes projects that are:
 Presently in progress.
 Planned, but not yet in progress.
 Identified as future needs through the interviews and workshops conducted with the City’s departments.
 Identified by SDI to implement the recommendations identified in the plan.

An abridged version of the updated P roject Portfolio is provided in the A ppendix and provides key attributes for each project including:
 Project Number.
 Project Name: The common name of the project.
 Project Description: A short explanation of the project’s scope and objectives.  Project Sponsor: The Department within the City that requested the project.  Status: The status of the project, including:
 2015 ITSP = The project was originally identified in the 2015 IT Strategic Point and has been carried forward.
 Cancelled or Completed = the project will be removed.  Identified = The project was identified by departments during SDI interviews.  In Progress = The project is being actively worked on. 224
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 19

 On Hold = The project is on-hold at this time.
 SDI Recommendation = The project was identified based on a recommendation in the IT Assessment Report.
 ITD Recommendation = The project was identified by ITD as projects planned or currently in progress.
 Project Category and Ranking: Provides the project category (A, B, C) assigned by the City and the ranking of the project within the category.

Appendix A provides a listing of the projects in sequence by the project number and Appendix B provides a listing of the projects in sequence by category and ranking within category.

Project Schedule and Cost Per Fiscal Year
Overview
This section of the IT Strategic Plan provides:
 A discussion of the methodology used to develop the Project Schedule, the Gantt Chart, and the Estimated Cost per Fiscal Year for the projects in the plan. The project schedule and cost per fiscal year provide the City with the information required to make informed decisions regarding the implementation of the directions and recommendations identified through the activities and deliverables produced for the City.
 A review of the proposed Project Schedule and Gantt Chart.  A review of the Estimated Cost per Fiscal Year over the timeline of the plan.

Methodology
Figure 8 – IT Strategic Plan Development (Source: SDI)
225
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 20

Figure 8, IT Strategic Plan Development , depicts the methodology used to develop the plan. This process included:
 The Initial Project Portfolio was developed by SDI in the course of the IT Assessment. It included projects related to the recommendations developed by SDI and projects that the interviewees reported were in-progress or planned.
 ITD facilitated a review of the Initial Project Portfolio with the City’s department al stake holders. Through this review, project statuses and descriptions were updated, new projects were added, and the projected were prioritized into three categories, A, B, and C, and numbered consecutively within each category. The projects in Category A are of the highest priority for the City, category B includes the projects of medium priority, and category C includes the projects of the lowest priority . An abridged version of the u pdated Project Portfolio is provided in Appendix A and Appendix B.
 SDI took the Updated Project Portfolio and prepared three work products , each of which is discussed below:
 The “Blue Wall” Pre-Stage Project Roadmap.
 A Gantt Chart.
 A chart showing the estimated cost for each fiscal year of the IT Strategic Plan and for the plan in total.
“Blue Wa ll” Pre-Stage Project Roadmap
Based on input from ITD, SDI slotted the projects from the updated Project Portfolio into each of the five years of the IT Strategic Plan included the remaining three quarters of FY 2024/25, FY 2025/26, FY 2026/27, FY 2027/28, and FY 2028/29. The projects were slotted as follows:
 Projects in categories A and B that were identified as being in progress were slotted into FY 2024/25.
 Projects in category A that were not identified as being in progress were slotted into FY 2025/26.
 Projects in category B that were not identified as being in progress were slotted into FY 2026/27 and FY 2027/28.
 Projects in category C that were not identified as being in progress were slotted into FY 2028/29.

Figure 9, “Blue Wall” Project Roadmap, depicts the final project plan. SDI mapped the projects using MS Visio so that City will be able to modify the plan as needed. Each project was color-coded based on its sponsor and the number of the project is provided to facilitate cross referencing the “Blue Wall” and the Project Portfolio . The “Blue Wall” Project Roadmap was reviewed with the City’s Chief Information Officer.

226
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 21

Figure 9 – “Blue Wall" Project Roadmap (Source: SDI)
Gantt Chart
Based on the “Blue Wall” Project Roadmap, SDI developed the Gantt Chart provided in Figure 10.1, Gantt Chart, Page 1 and Fi gure 10.2, Gantt Chart, Page 2 . Using the same timeframes as the “Blue Wall, ” this chart provides a more granular view of the project roadmap including work completed, work planned, and the number of concurrent projects in each time period. For each project, the Gantt Chart provides:
 The project ID number.
 The name of the project.
 The project sponsor.
 The project status (i.e., In-Progress, Identified by the City, or related to the implementation of a recommendation from the IT Assessment Report).
 The estimated low and high costs for the completion of the project (please note that costs are not provided for projects that are identified as being in- progress since these costs have already been budgeted.)
 The project category and the number within project category.  Project timeline. Projects for FY2024/25 are shown by quarter and the remaining projects are shown by FY . SDI anticipates that as addition information for the projects becomes available, that ITD will adjust the timelines accordingly.

227
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 22

As project charters are developed and approved for each of the projects, ITD will be able to calculate and plot the user and IT resource requirements within each time period to review with the City’s executive team so that the project schedule can be adjusted as needed. The number of IT resources (whether internal or external) available will generally be limited by:
 The number of IT resources required to perform scheduled maintenance on the City’s IT infrastructure and needed to work on foundational projects (such as the adoption of IT best practices and business continuity).
 The number of IT resources required to respond to user requests and problem reports.  The number of IT resources that are diverted from project work in order to respond to contingencies.
228
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 23

Figure 10.1 – Gantt Chart, Page 1 (Source: SDI)
229
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 24

Figure 10.2 – Gantt Chart, Page 2 (Source: SDI)
230
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 25

Estimated Cost Per Fiscal Year
Based on the Gantt Charts provided in Figure 10.1 and Figure 10.2, SDI was able to allocate project cost per Fiscal Year and this is shown in Figure 11, Estimated Cost by Fiscal Year. The cost model is based on the following assumptions:
 Project cost is based on an average of the low and high estimated costs (in $000’s) provided in the IT Strategic Plan Project Portfolio and is labelled as “Mid-Range” Cost.  Except for projects that have annual recurring costs (such as for the annual refreshment of the City’s IT infrastructure or for services contracts), the cost for a project is assumed to be fully incurred in the Fiscal Year in which the project commences even if the project’s duration spans Fiscal Years.
 On-going costs for new positions are not presented as those costs will be included in future City budgets under personnel or contract categories.
 Costs are not provided for projects that are in- progress since these have already been budgeted.
 The costs for the maintenance of existing business and operational applications and/or application services are also not included.

For each project Figure 11 provides:
 The ID number of project.
 The name of the project.
 The project sponsor.
 Project status.
 The Priority category (A, B, C) and the ranking within the category.  The estimated mid-range cost (in $000’s).
 The FY in which the cost is incurred.

The estimated costs per FY are as follows:

FY 2025/26: $ 3,068
FY 2026/27: $ 2,633
FY 2027/28: $ 2,718
FY 2028/29: $ 2,463
Total Estimated Program Cost: $ 10,880

231
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 26

Figure 11 – Estimated Cost Per Fiscal Year (Source: SDI) 232
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 27

Conclusion
Overview
This section provides some thoughts and guidance for the City regarding the steps that it should consider regarding the findings and recommendations provided in the IT Strategic Plan based on our experience in working with a wide range of organizations dealing with similar issues. A number of factors have prompted p ublic sector organizations to become more reliant on information technology including:
 Increased public expectations for the availability of information and services through the Internet and, in particular, from mobile devices. Members of the community expect to be able to do this at any time, from anywhere, using any device.  The need to optimize the use of human resources, capital, and other assets in the delivery of services to both the City’s internal user community and the public.  The need to manage total cost of ownership for information technology more effectively in the face of limited budgets. At one time this was mostly about infrastructure and personnel costs but has increasingly become related to managing the cost for business and operational applications.
 The increased availability, perhaps even ubiquity, of Smart devices that provide streams of information.

Critical Success Factors
Figure 12 – The Interdependence of IT Governance and Tactical IT Planning (Source: SDI) Figure 12, The Interdependenc e of IT Governance and Tactical IT Planning , depicts an interesting conundrum that has developed as organizations, particularly local governments, have become 233
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 28

dependent on information technology to meet community expectations for the delivery of services and access to information. The difficulty is that effective delivery of IT services is equally dependent on both IT governance and IT tactical planning and that the effective governance of information technology is dependent on an effective approach to IT tactical planning and vice-versa.

As depicted in Figure 12, IT Governance is a strategic process in which, using the IT Strategic Plan as the foundation, the City’s executive team can continuously align IT directions and priorities with it s overall strategic plan and priorities. IT Governance needs to consider:
 A city’s long-term directions and priorities as set forth in its Strategic Business Plan and the IT Strategic Plan, as well as immediate priorities identified by the City Council.  Departmental priorities, and changes in departmental priorities, which can result in project requests. New projects and/or changes to existing projects are generally communicated to IT Governance and through a Project Charter which defines the scope and ob jectives of the project, its alignment with the City’s direction and priorities, the resource requirements, the funding sources, and the potential impact on other projects and/or existing business and operational applications.
 The status of current projects and the availability of user and IT resources.  Funding and changes in funding.
 That the City’s priorities will likely change over the course of the IT Strategic Plan and some of the projects may become of greater interest and importance to the City and this could result in their being moved up in the plan.

The decisions of the City’s IT Governance Committee are generally embodied in:
 Updates to the IT Strategic Plan.
 Approved project charters which are provided to the requesting departments as well as ITD.  Decisions regarding project priorities and the allocation / reallocation of user and IT resources. Since the City’s internal resources are finite, IT Governance will likely need to have ITD make recommendations as to which projects or portions of projects are best handled by internal staff and which can be best handled by external resources such as staff supplementation firms and/or firms providing managed services.

Tactical IT Planning is a process in which the ITD management team allocates resources based on:
 The project priorities set by the IT Governance Committee.  IT resource availability (including internal staff and external resources).  The status of projects that are currently being worked on by the IT support organization team and/or external service providers.
 Planned work such as the maintenance / refreshment of the City’s information technology infrastructure.
234
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 29

 Other planned work (such as maintenance activities in support of the City’s IT infrastructure and business / operational applications).
 Unplanned events such as user service requests and contingencies that may require the temporary diversion of resources from planned activities, and which can impact both planned activities and the schedule for their completion.

All this information should be considered in the development and maintenance of a “Tactical IT Work Plan” which governs the allocation of IT D and external resources. This plan should be developed independently of the IT Strategic Plan and updated on a quarterly basis to reflect current IT D staff assignments and project status.

In municipalities that do not have effective approaches to IT governance , SDI often hears from members of the leadership team that they do not know what the IT support organization is working on and that projects seem to take too long to complete while managers and staff in the IT support organization will remark that shifting priorities and the reallocation of resources make it difficult to complete projects, that the queue of user requests exceeds the resources available to complete them, and that the respective responsibilities of user departments and the IT support organization are not well defined.

SDI has noted that:
 Organizations often struggle to establish processes for IT governance , and even if they succeed in establishing processes for IT governance those efforts often fail over time. The barriers to the establishment of sustainable processes for IT governance include that IT governance, and the need for it, are relatively new and not ingrained in organizational culture as is, for example, budgeting. Although City leadership teams often struggle with budgeting, they accept it as an activity that must be performed. IT governance, on the other hand, is seen by many already overburdened public executives as yet another collateral responsibility.  The maturity of some IT support organizations in the public sector is far less than their counterparts in the private sector. For example, it is far less common for IT support organizations in the public sector to have a resource allocation plan that identifies each staff member’s responsibilities, and the amount of time allocated to complete them. Staff members seldom charge their time to specific tasks and projects , so that even if there is a resource plan there is no way to identify variances from the plan, or why the variances occurred.

The IT Strategic Plan provides recommendations and directions that will enable the City to more effectively respond to new and/or changed requirements and to maximize the return / value for its investments in information technology; however, the realization of these benefits is dependent on the implementation of changes in how the City governs information technology and plans for the use of IT resources. The recommendations for the City include that:
 The City should establish an enterprise process for IT governance. 235
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 30

 ITD should adopt practices and procedures to enable it to better manage and allocate IT resources and to manage projects.

Next Steps
The immediate steps the City should take include:
 Activating IT Governance: IT Governance should be the responsibility of the City’s executive team (the City Manager and Department Heads) and be handled as a recurring agenda item for a regularly scheduled meeting of the City’s executive team. In order to facilitate this, the City should:
 Develop a project charter for IT Governance that defines the roles and responsibilities of the participants and a sample agenda.
 Conduct a preliminary IT Governance meeting with the objective of reviewing the status of the IT Strategic Plan and the next steps involved in implementation.  Develop formal plans for all projects that are currently in progress to obtain a more complete and current understanding of user and ITD resource commitments.  Allocate resources for the development of Project Charters; even at a very basic level, for any projects that are planned to begin during FY 2024/25, so that the City can plan for the resources needed for these projects or to reschedule them as needed.  Review the ITD sponsored projects and identify components of them that can be quickly implemented.
 Activating Tactical IT Planning:
 Even as ITD resources are being called on to work on projects, to maintain the City’s IT infrastructure, and to respond to user requests and problems, ITD must obtain a more detailed understanding of what projects ITD staff are working on, the expected timeframe for the completion of the project, and the potential impact of any unplanned work on the project schedule. This should result in the development of a tactical work plan against which ITD can assess priorities and work with the City’s executive team to ensure that ITD resources are allocated appropriately.
 ITD should also work with the City’s executive team to take proactive measures to reduce the number of user problems that require the attention of ITD staff by deploying self-help tools and knowledge bases, providing training for users, and developing “super” users within each department who can handle routine matters.
 ITD should take steps to ensure that all user requests and problem reports are entered into the service desk management system in a timely manner, updated with resolutions, and closed out.
 ITD should work with the City’s executive team to identify local, external service providers and to contract with them to provide on -demand support to assist ITD in resolving incidents or supplement ITD resources as needed.
236
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 31

Closing Thought
IT strategic planning is a process, not an event, and the development of this IT Strategic Plan is just the beginning of another cycle in the process for the City of Beverly Hills. Organizations can realize some benefits from strategic planning in the absence of a continued commitment to the enterprise governance of information technology, but often those benefits diminish over time. Continued support for the IT Strategic Plan will need to come in terms of priorities, dollars, policies, and a strong commitment to changing culture and practices.

Change has become a constant factor, and the successful implementation of the IT Strategic Plan may mean making compromises, and it will mean exercising patience, taking an enterprise- wide perspective, and maintaining a continued focus on revising the plan as events take place. Finally, it will take cooperation, communication, and flexibility to adapt to changing needs, expectations, information technologies, and resources.
237
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 32

Appendi ces
Appe ndix A – Projects Sorted by Project Number
No. Project Name Description Sponsor Status Project Priority Group Ranking
1 Agenda
Management
Application
The City recently moved to
OneMeeting for Future Agenda Items.

This project would provide for an
evaluation of fully automating agenda
management.

City Clerk 2015 ITSP B 1A
2 Boards &
Commissions
Appointment Mgt.

Application
The City is currently using online forms
and a manual process to track
applications for appointments to City
Boards and Commissions. The project
would provide for the evaluation,
selection, and implementation of a
software package to fully automate
this process.

City Clerk 2015 ITSP B 2
3 Homeless Tracking
Application
Implementation
Implement Apricot 360 by
Bonterra/Social Solutions in Austin, TX.

City Manager In Progress A 1
4 Everbridge
application
Enhancement
Allows the City to receive alerts for
severe weather, criminal activities,
severe traffic, missing persons, or local
events. Everbridge Nixle will assist the
City to keep current with relevant
information from local and regional
public safety departments and schools.

City Manager Identified B 3
5 StarLink Evaluation Evaluate the feasibility and costs associated with utilizing Starlink, a
satellite-based internet system
developed by SpaceX, to deliver
internet connection during disruptions
from natural disasters.

City Manager
(EOC)
Identified A 2
6 CitySmart
Enhancements
Phase 2 and Phase 3 application
enhancements are on-going.

Community
Development
In Progress A 7
7 Parking Meter
Reservation
System
Implementation
Expand existing internal application for
public use and integrate the
application with City Smart.

Community
Development
Identified B 7
8 New Planning
Document
Submittal Method
means accepting submittal of pdf
application forms, plans, and other
documents from the public
Community
Development
In Progress A 8
9 ProjectDox
Upgrades
cloud migration and system updates Community
Development
In Progress A 9
10 New Online
Application for
Automated
Issuance of Solar
Permits with
CitySmart
Integration
implement an automated and
expedited online permit issuance
process for permits for certain roof-
mounted solar panel systems.

Community
Development
In Progress A 12
238
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 33

No. Project Name Description Sponsor Status Project Priority Group Ranking
11 Play by Point
Application
Evaluation
Evaluate facility (tennis, pickleball,
etc.) reservation system. There are no
initial costs identified for this project.

Annual costs for two locations have
been identified.

Community
Services
Identified A 29
12 Rec1 Application
Replacement
Evaluation
Evaluate alternatives to Rec1 software
such as ActiveNet.

Community
Services
Identified C 1
13 Budget Application Evaluate a budget development and presentation application such as
Questica, Workday, Denovo, etc.

Finance Identified B 8
14 Call Center
Platform
Replacement
Evaluating solutions and identifying
user functional requirements.

Finance In Progress A 13
15 Munis Reporting Users of the City’s Munis applications expressed the need to have user-
friendly reporting capabilities available
to them (if not provided by the
business application). This project
would provide for the acquisition and
implementation of reporting tools that
users can use on their own to create
ad-hoc and special queries as needed.

Finance Identified B 9
16 Tyler Payments
Enterprise
Implementation
A comprehensive payment solution is
an integrated, cloud-based platform
that simplifies payment processing for
bills, fees, tickets, and fines. It allows
both online and over-the-counter
payments. This solution would
eliminate the need for journal entries
and simplify PCI compliance.

Finance In Progress A 14
17 Proximity
Dispatching
The City is continuing to work on
improving mapping within Tyler,
replacing MDTs, and installing
apparatus cameras. Will also launch
next-gen toning system.

Fire In Progress A 27
18 CrewForce
Evaluation /
Remediation
Evaluate and remediate the issues
with Tyler’s CrewForce application or
identify the need to replace CrewForce
if it not feasible to remediate the
issues with the application. A wireless
data modem upgrade is included in
the scope of the project.

Fire Identified B 10
19 Firefighter
Location Tracking
Application
Application to locate and track the
movement of firefighters responding
to an emergency.

Fire Identified B 11
20 EEOC Reporting Replace manual system with
application.

Human
Resources
Identified C 4
21 NEOGOV
Expansion
Expand the use of NEOGOV and
implement additional modules such as
applicant testing, eligibility lists, and
dashboards/reporting.

Human
Resources
Identified B 12
239
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 34

No. Project Name Description Sponsor Status Project Priority Group Ranking
22 Pharos Application
Replacement
Evaluation
Evaluate alternatives to Pharos such as
EnvisionWare.

Library Identified C 5
23 Calendly
Implementation
New application for appointment
booking.

Library Identified C 2
24 Study Room
Booking
Application
Evaluation
Evaluate application for reserving
study rooms in Library.

Library Identified C 3
25 3SI
Implementation
Asset protection system designed to
recover stolen cash and high-value
assets, apprehend criminals, and deter
crime.

Police Identified B 15
26 Force Metrics
Evaluation (2)
Evaluate the ForceMetrics application
which is a tool for law enforcement
that delivers critical information to
first responders and co-responders,
empowering them to make better,
more informed decisions in real-time.

Paid for with grant money.

Police Identified A 19
27 FUSUS
Implementation
(3)
Real-time Crime Center software that
links key technologies (LPRs, cameras,
etc.) into a single application for
improved public safety. Covered under
AXOS agreement.

Police Identified A 20
28 Veritone
Implementation
Implement aiWARE tracking solution
that leverages confidence-based
similarity detection to track people
and objects through video recognition
software.

Police Identified A 28
29 Implement
technology for
Phase II of the Real
Time Watch
Center (RTWC)
Phase II of this project Includes: Fusus
expansion, Flock expansion, expanded
crime analytics, and A/I-based
analytics
Police - ITD In Progress A 21
30 Video Security
Expansion
Focus on wireless replacement with
FTTP-based cameras, installing next-
gen wireless cameras, and priority II
intersection cameras. Includes BHUSD
/ JPA expansion and extension of video
storage retention to 2 years.

Police - ITD In Progress A 22
31 ALPR
Implementation
for Parking
Enforcement
Data Ticket has been engaged;
equipment not yet installed. Includes
integration with Data Ticket.

Police - ITD Identified A 23
32 AMI Upgrades Using Esource to implement
application upgrades.

Public Works In Progress A 24
33 Comcate
Application
Replacement
Evaluation
Determine if the current Comcate
application is meeting the needs of the
City for citizen engagement. If not,
define business requirements,
potential replacements, and acquire
robust application to better meet City
requirements.

Public Works Identified A 25
240
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 35

No. Project Name Description Sponsor Status Project Priority Group Ranking
34 Infor
Implementation
EAM (Enterprise Asset Management)
and Work Order application.

Public Works In Progress B 16
35 Irrigation System
Replacement
Implement wi-fi based RF. Requires
expansion of City’s wi-fi network.

Public Works In Progress A 28
37 Upgrade Water
Management
Presentation
Software (Water
Smart)
Include integration with Paymentus,
Munis, and IDP
Public Works In Progress A 26
38 Aclara Upgrade Prerequisit for AMI. Include reporting server
Public Works In Progress A 31
39 Faster Cloud
Migration
Per project SOW Public Works In Progress C 6
40 Membership ID
Cards Application
Acquire a solution for generating and
printing membership ID cards,
including the ability to generate and
print a QR or bar code for later
scanning and access
Rec & Parks Identified B 17
41 Access Control
System Upgrade
Upgrade for building access citywide. ITD Identified A 15 42 Applications
Portfolio
Create an application portfolio
(inventory) to effectively manage
application descriptions and sponsors,
version upgrades, vendor services,
license counts, maintenance costs,
product obsolescence, and
replacement cycles. May be able to
meet his need by implementing
Certero.

ITD SDI
Recommendation
2 B 14
43 Best Practices
Implementation
Devote IT resources to a continuing
program to improve its conformance
to the best practices for critical areas
which include IT Asset Management,
Technical Documentation, Service
Catalog, and Help Desk Management.

ITD SDI
Recommendation
9 A 16
44 ITD Organization
Improvement
Perform a classification and
compensation study to help resolve
the difficulties being experienced in
the recruiting of qualified applicants to
fill open positions, increase the degree
of cross-training among ITD staff
members, update job descriptions, use
external service providers, bring
experienced project managers to assist
the user community in making more
effective use of their business
applications, and plan for the
increased use of cloud-based services.

Work with P&M on improving
multimedia services delivery. Rework
internal and external meeting
cadence, develop scorecard metrics,
develop succession planning program,
develop IT outreach program, develop

ITD SDI
Recommendation
7 B 14
241
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 36

No. Project Name Description Sponsor Status Project Priority Group Ranking
customer service improvement plan
for desktop and projects.
45 ITD Infrastructure
replacement
This is a continuing program for the
annual replacement and enhancement
of aging and end-of-life IT
infrastructure and includes: Phase II
Radio system infrastructure and
receiver sites, mobile and portable
radios, mobile wireless data modems,
RF-over IP system, enterprise disk
storage systems, virtual server
infrastructure, end user devices (PCs,
laptops, tablets, and High-Tech Crimes
storage.

ITD Current FY In
Progress (1)
A 17
46 ITD Software
enhancements
This is a continuing program that
includes the upgrade of enterprise and
business unit software and includes:

Munis upgrade to the cloud, access
control system, expand public website
apps including new chat bot, expand
o365 offerings, Council outreach
application, public-facing land
information system, lobbyist
application, public-facing water use
application and payments system,
document management system, AMI,
and fleet management.

ITD Current FY In
Progress (1)
A 18
47 Application
Integration Plan
Conduct an analysis of the information
separately stored and develop plans
and priorities to improve information
sharing and integration. Include the
definition of specific information
exchanges including the information to
be exchanged, the trigger(s) for the
exchange, the data relationship rules,
and the medium for the exchange.

City-wide SDI
Recommendation
B 4
48 Business
Continuity -
Disaster Recovery
Plan
Review, revise, and update the City’s
current disaster recovery plan to
include a City-wide business impact
analysis of core applications and
routinely test the plan.

City-wide SDI
Recommendation
4 A 3
49 Core Business
Application
Reviews
Review the functionality provided by
core business applications (such as
Munis and CitySmart) and apply
lessons learned from their
implementations to identify issues that
may be related to software defects,
configuration issues, or user training.

Evaluate the adequacy of the support
for the applications being provided to
the City and whether the contractual
provisions for support should be
expanded. Create an action plan, cost
City-wide SDI
Recommendation
10 B 5
242
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 37

No. Project Name Description Sponsor Status Project Priority Group Ranking
estimates, and a timeline for the
remediation of findings.
50 Cybersecurity Plan Develop a plan generally conformant with the requirements of NIST
(National Institute of Standards and
Technology), or the International
Organization for Standardization (IOS)
that identifies the steps to be taken to
prepare for a cyber-security attack, the
steps required to identify intrusions, to
neutralize them, and to identify
exposures that lead to intrusions.

City-wide -
ITD
SDI
Recommendation
3 A 10
51 Implement
Cybersecurity
Enhancements
Expand SEIM functionality, implement
ITIM system, upgrade core network
infrastructure, expand end-user
training, deliver PCI compliance
components, upgrade VPN solution,
enhance endpoint protection
infrastructure, expand external scans,
enhance KPI infrastructure, expand
ransomware-proof back-up system.

City-wide -
ITD
Identified A 11
52 Enterprise
Document
Management
Strategy
Create a plan for a structured
approach to the storage and
management of documents,
identification of automated workflows
that would enable the routing of
documents through the organization,
along with the ability to track
document and manage the routing
and processing of documents.

Complete library special collections,
fire docs, CD documents, clerk
documents, Pw documents.

City-wide SDI
Recommendation
5 B 1B
53 IT Governance Define and create a formal IT
governance structure which will assist
in aligning the business needs with the
IT Department.

City-wide SDI
Recommendation
1 A 30
54 ITD
Communication –
Collaboration
Improvement
Implement a method for ITD to
communicate and collaborate with the
user departments in order to provide a
more robust level of support to them.

Information that can be disseminated
includes information regarding ITD’s
plans, objectives, and performance
including acknowledging problems,
celebrating successes, and reporting
on service levels, project and request
status, and workload.

City-wide SDI
Recommendation
6 A 4
55 On-going
Application
Training Plan
Create a plan to ensure on-going
application training is available to staff
that can increase productivity, provide
a significant return on the City’s
investment in core business
City-wide SDI
Recommendation
8 B 6
243
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 38

No. Project Name Description Sponsor Status Project Priority Group Ranking
applications, and reduce the level of
support from IT.
56 Online Forms
Development
Evaluation of solutions for the use of
electronic forms (Munis, NEOGOV,
OpenText, city smart). City-wide need
to create a plan to utilize on-line forms
rather than printing pdf and re-
entering data.

City-wide In Progress A 5
57 Web Content
Manager
Replacement
New content management system for
city website (CivicPlus) to enable
trained users to update content on the
City’s website.

City-wide In Progress A 6

244
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 39

Appendix B – Projects Sorted by Category and Ranking
No. Project Name Description Sponsor Status Project Priority Group Ranking
3 Homeless Tracking
Application
Implementation
Implement Apricot 360 by
Bonterra/Social Solutions in Austin, TX. City Manager In Progress A 1 5 StarLink Evaluation
Evaluate the feasibility and costs
associated with utilizing Starlink, a
satellite-based internet system
developed by SpaceX, to deliver internet
connection during disruptions from
natural disasters.

City Manager
(EOC) Identified A 2
48 Business Continuity
- Disaster Recovery
Plan
Review, revise, and update the City’s
current disaster recovery plan to include
a City-wide business impact analysis of
core applications and routinely test the
plan.

City-wide
SDI
Recommendation
4 A 3
54 ITD
Communication –
Collaboration
Improvement
Implement a method for ITD to
communicate and collaborate with the
user departments in order to provide a
more robust level of support to them.

Information that can be disseminated
includes information regarding ITD’s
plans, objectives, and performance
including acknowledging problems,
celebrating successes, and reporting on
service levels, project and request
status, and workload.

City-wide
SDI
Recommendation
6 A 4
56 Online Forms
Development
Evaluation of solutions for the use of
electronic forms (Munis, NEOGOV,
OpenText, city smart). City-wide need to
create a plan to utilize on-line forms
rather than printing pdf and re-entering
data.

City-wide In Progress A 5
57 Web Content
Manager
Replacement
New content management system for
city website (CivicPlus) to enable trained
users to update content on the City’s
website.

City-wide In Progress A 6
6 CitySmart
Enhancements
Phase 2 and Phase 3 application
enhancements are on-going.

Community
Development In Progress A 7
8 New Planning
Document
Submittal Method
means accepting submittal of pdf
application forms, plans, and other
documents from the public
Community
Development In Progress A 8
9 ProjectDox
Upgrades cloud migration and system updates Community
Development In Progress A 9
245
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 40

No. Project Name Description Sponsor Status Project Priority Group Ranking
50 Cybersecurity Plan
Develop a plan generally conformant
with the requirements of NIST (National
Institute of Standards and Technology),
or the International Organization for
Standardization (IOS) that identifies the
steps to be taken to prepare for a cyber-
security attack, the steps required to
identify intrusions, to neutralize them,
and to identify exposures that lead to
intrusions.

City-wide -
ITD
SDI
Recommendation
3 A 10
51 Implement
Cybersecurity
Enhancements
Expand SEIM functionality, implement
ITIM system, upgrade core network
infrastructure, expand end-user training,
deliver PCI compliance components,
upgrade VPN solution, enhance endpoint
protection infrastructure, expand
external scans, enhance KPI
infrastructure, expand ransomware-
proof back-up system.

City-wide -
ITD Identified A 11
10 New Online
Application for
Automated
Issuance of Solar
Permits with
CitySmart
Integration
implement an automated and expedited
online permit issuance process for
permits for certain roof-mounted solar
panel systems.

Community
Development In Progress A 12
14 Call Center
Platform
Replacement
Evaluating solutions and identifying user
functional requirements. Finance In Progress A 13
16 Tyler Payments
Enterprise
Implementation
A comprehensive payment solution is an
integrated, cloud-based platform that
simplifies payment processing for bills,
fees, tickets, and fines. It allows both
online and over-the-counter payments.

This solution would eliminate the need
for journal entries and simplify PCI
compliance.

Finance In Progress A 14
41 Access Control
System Upgrade Upgrade for building access citywide. ITD Identified A 15 43 Best Practices
Implementation
Devote IT resources to a continuing
program to improve its conformance to
the best practices for critical areas which
include IT Asset Management, Technical
Documentation, Service Catalog, and
Help Desk Management.

ITD
SDI
Recommendation
9 A 16
246
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 41

No. Project Name Description Sponsor Status Project Priority Group Ranking
45 ITD Infrastructure
replacement
This is a continuing program for the
annual replacement and enhancement
of aging and end-of-life IT infrastructure
and includes: Phase II Radio system
infrastructure and receiver sites, mobile
and portable radios, mobile wireless
data modems, RF-over IP system,
enterprise disk storage systems, virtual
server infrastructure, end user devices
(PCs, laptops, tablets, and High-Tech
Crimes storage.

ITD Current FY In
Progress (1) A 17
46 ITD Software
enhancements
This is a continuing program that
includes the upgrade of enterprise and
business unit software and includes:

Munis upgrade to the cloud, access
control system, expand public website
apps including new chat bot, expand
o365 offerings, Council outreach
application, public-facing land
information system, lobbyist application,
public-facing water use application and
payments system, document
management system, AMI, and fleet
management.

ITD Current FY In
Progress (1) A 18
26 Force Metrics
Evaluation (2)
Evaluate the ForceMetrics application
which is a tool for law enforcement that
delivers critical information to first
responders and co-responders,
empowering them to make better, more
informed decisions in real-time. Paid for
with grant money.

Police Identified A 19
27 FUSUS
Implementation (3)
Real-time Crime Center software that
links key technologies (LPRs, cameras,
etc.) into a single application for
improved public safety. Covered under
AXOS agreement.

Police Identified A 20
29 Implement
technology for
Phase II of the Real
Time Watch Center
(RTWC)
Phase II of this project Includes: Fusus
expansion, Flock expansion, expanded
crime analytics, and A/I-based analytics
Police - ITD In Progress A 21
30 Video Security
Expansion
Focus on wireless replacement with
FTTP-based cameras, installing next-gen
wireless cameras, and priority II
intersection cameras. Includes BHUSD /
JPA expansion and extension of video
storage retention to 2 years.

Police - ITD In Progress A 22
247
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 42

No. Project Name Description Sponsor Status Project Priority Group Ranking
31 ALPR
Implementation for
Parking
Enforcement
Data Ticket has been engaged;
equipment not yet installed. Includes
integration with Data Ticket.

Police - ITD Identified A 23
32 AMI Upgrades Using Esource to implement application
upgrades. Public Works In Progress A 24
33 Comcate
Application
Replacement
Evaluation
Determine if the current Comcate
application is meeting the needs of the
City for citizen engagement. If not,
define business requirements, potential
replacements, and acquire robust
application to better meet City
requirements.

Public Works Identified A 25
37 Upgrade Water
Management
Presentation
Software (Water
Smart)
Include integration with Paymentus,
Munis, and IDP Public Works In Progress A 26
17 Proximity
Dispatching
The City is continuing to work on
improving mapping within Tyler,
replacing MDTs, and installing apparatus
cameras. Will also launch next-gen
toning system.

Fire In Progress A 27
28 Veritone
Implementation
Implement aiWARE tracking solution
that leverages confidence-based
similarity detection to track people and
objects through video recognition
software.

Police Identified A 28
35 Irrigation System
Replacement
Implement wi-fi based RF. Requires
expansion of City’s wi-fi network. Public Works In Progress A 28 11 Play by Point
Application
Evaluation
Evaluate facility (tennis, pickleball, etc.)
reservation system. There are no initial
costs identified for this project. Annual
costs for two locations have been
identified.

Community
Services Identified A 29
53 IT Governance
Define and create a formal IT
governance structure which will assist in
aligning the business needs with the IT
Department.

City-wide
SDI
Recommendation
1 A 30
38 Aclara Upgrade Prerequisit for AMI. Include reporting server Public Works In Progress A 31
1 Agenda
Management
Application
The City recently moved to OneMeeting
for Future Agenda Items. This project
would provide for an evaluation of fully
automating agenda management.

City Clerk 2015 ITSP B 1A
248
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 43

No. Project Name Description Sponsor Status Project Priority Group Ranking
52 Enterprise
Document
Management
Strategy
Create a plan for a structured approach
to the storage and management of
documents, identification of automated
workflows that would enable the routing
of documents through the organization,
along with the ability to track document
and manage the routing and processing
of documents. Complete library special
collections, fire docs, CD documents,
clerk documents, Pw documents.

City-wide
SDI
Recommendation
5 B 1B
2 Boards &
Commissions
Appointment Mgt.

Application
The City is currently using online forms
and a manual process to track
applications for appointments to City
Boards and Commissions. The project
would provide for the evaluation,
selection, and implementation of a
software package to fully automate this
process.

City Clerk 2015 ITSP B 2
4 Everbridge
application
Enhancement
Allows the City to receive alerts for
severe weather, criminal activities,
severe traffic, missing persons, or local
events. Everbridge Nixle will assist the
City to keep current with relevant
information from local and regional
public safety departments and schools.

City Manager Identified B 3
47 Application
Integration Plan
Conduct an analysis of the information
separately stored and develop plans and
priorities to improve information sharing
and integration. Include the definition of
specific information exchanges including
the information to be exchanged, the
trigger(s) for the exchange, the data
relationship rules, and the medium for
the exchange.

City-wide SDI
Recommendation B 4
249
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 44

No. Project Name Description Sponsor Status Project Priority Group Ranking
49 Core Business
Application
Reviews
Review the functionality provided by
core business applications (such as
Munis and CitySmart) and apply lessons
learned from their implementations to
identify issues that may be related to
software defects, configuration issues, or
user training. Evaluate the adequacy of
the support for the applications being
provided to the City and whether the
contractual provisions for support
should be expanded. Create an action
plan, cost estimates, and a timeline for
the remediation of findings.

City-wide
SDI
Recommendation
10 B 5
55 On-going
Application
Training Plan
Create a plan to ensure on-going
application training is available to staff
that can increase productivity, provide a
significant return on the City’s
investment in core business applications,
and reduce the level of support from IT.

City-wide
SDI
Recommendation
8 B 6
7 Parking Meter
Reservation
System
Implementation
Expand existing internal application for
public use and integrate the application
with City Smart.

Community
Development Identified B 7
13 Budget Application
Evaluate a budget development and
presentation application such as
Questica, Workday, Denovo, etc.

Finance Identified B 8
15 Munis Reporting
Users of the City’s Munis applications
expressed the need to have user-friendly
reporting capabilities available to them
(if not provided by the business
application). This project would provide
for the acquisition and implementation
of reporting tools that users can use on
their own to create ad-hoc and special
queries as needed.

Finance Identified B 9
18 CrewForce
Evaluation /
Remediation
Evaluate and remediate the issues with
Tyler’s CrewForce application or identify
the need to replace CrewForce if it not
feasible to remediate the issues with the
application. A wireless data modem
upgrade is included in the scope of the
project.

Fire Identified B 10
19 Firefighter Location
Tracking
Application
Application to locate and track the
movement of firefighters responding to
an emergency.

Fire Identified B 11
250
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 45

No. Project Name Description Sponsor Status Project Priority Group Ranking
21 NEOGOV
Expansion
Expand the use of NEOGOV and
implement additional modules such as
applicant testing, eligibility lists, and
dashboards/reporting.

Human
Resources Identified B 12
42 Applications
Portfolio
Create an application portfolio
(inventory) to effectively manage
application descriptions and sponsors,
version upgrades, vendor services,
license counts, maintenance costs,
product obsolescence, and replacement
cycles. May be able to meet his need by
implementing Certero.

ITD
SDI
Recommendation
2 B 14
44 ITD Organization
Improvement
Perform a classification and
compensation study to help resolve the
difficulties being experienced in the
recruiting of qualified applicants to fill
open positions, increase the degree of
cross-training among ITD staff members,
update job descriptions, use external
service providers, bring experienced
project managers to assist the user
community in making more effective use
of their business applications, and plan
for the increased use of cloud-based
services. Work with P&M on improving
multimedia services delivery. Rework
internal and external meeting cadence,
develop scorecard metrics, develop
succession planning program, develop IT
outreach program, develop customer
service improvement plan for desktop
and projects.

ITD
SDI
Recommendation
7 B 14
25 3SI
Implementation
Asset protection system designed to
recover stolen cash and high-value
assets, apprehend criminals, and deter
crime.

Police Identified B 15
34 Infor
Implementation
EAM (Enterprise Asset Management)
and Work Order application. Public Works In Progress B 16 40 Membership ID
Cards Application
Acquire a solution for generating and
printing membership ID cards, including
the ability to generate and print a QR or
bar code for later scanning and access
Rec & Parks Identified B 17
12 Rec1 Application
Replacement
Evaluation
Evaluate alternatives to Rec1 software
such as ActiveNet.

Community
Services Identified C 1
251
The City of Beverly Hills
Information Technology Strategic Plan

October 17, 2024 Page | 46

No. Project Name Description Sponsor Status Project Priority Group Ranking
23 Calendly
Implementation
New application for appointment
booking. Library Identified C 2
24 Study Room
Booking
Application
Evaluation
Evaluate application for reserving study
rooms in Library. Library Identified C 3
20 EEOC Reporting Replace manual system with application. Human Resources Identified C 4
22 Pharos Application
Replacement
Evaluation
Evaluate alternatives to Pharos such as
EnvisionWare. Library Identified C 5
39 Faster Cloud
Migration Per project SOW Public Works In Progress C 6

252

DISCUSSION AND/OR ACTION ITEM

AGENDA ITEMS

3. 25-195
253

STAFF REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of July 22, 2025
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: Discussion Regarding Potential Revenue-Generating Options RECOMMENDED ACTION:

Staff recommends that the City Council receive the report on potential revenue - generating options and, by minute order, provide guidance to staff on which option or options to pursue.

BACKGROUND:

Although the City recently adopted a balanced budget for the fiscal year, we anticipate long-term challenges will emerge due to expected inflation in the costs of goods and services. Over the next decade, staff has identified a need for more than $10.6 million to address local street paving, maintain aging public facilities and parks, and preserve essential city services and programs in a growing City.

The continual increase in the costs to sustain current levels of service will become more challenging overtime without additional revenue. The result will be a decrease in the quality of services provided to the community and limit our ability to complete critical infrastructure and maintenance projects within a reasonable timeframe.

To proactively address this issue, the City Council adopted a Strategic Goal for 2024 - 2026 to improve the City’s financial sustainability. A main aim of this goal is to identify potential revenue sources that can effectively serve both current and future n eeds. This report presents various revenue -generating options for the City Council to consider, including increasing Sales Tax, Utility Users' Tax (UUT), and Real Property Transfer Tax (RPTT) rates, as well as general obligation bond financing. 254
ANALYSIS:

It is crucial for the City to thoroughly assess its long-term financial trends beyond the limits of the annual budget cycle and multi -year capital planning. Effective long -term financial planning is a strategic effort that involves projecting revenues and expenses and examining key factors that could greatly impact the organization's financial stability over time.

By understanding these long -term trends and identifying potential risks that could jeopardize financial sustainability, City staff can address i ssues proactively before they escalate. A robust long -term financial planning process also allows the City Council to focus on its overarching goals and priorities, thereby fostering a culture of strategic thinking and enhancing the organization's collective financial literacy.

On June 10, 2025, the City Council adopted the annual budget for FY 25 -26. A key component of this budget was the Five-Year Financial Forecast for the General Fund.

This forecast delineates anticipated revenues and expenditures to assess the financial health of the City and to identify emerging trends. Below, a chart is provided that summarizes the City’s Five-Year Financial Forecast.

The forecast includes a planned 3% annual cost-of-living adjustment to employee salaries and is based on assumptions of ongoing economic growth and stable financial health, signaling an expected balanced budget for the General Fund.

255
General Fund Revenue: Where does the money come from?
The General Fund revenue for a City is primarily supported by local taxes, which play a crucial role in funding essential services and initiatives. This includes a variety of tax sources such as sales tax, which is collected on retail purchases, utility users' tax imposed on services like water and electricity, and property tax based on property values.

Additionally, the fund receives in lieu of vehicle license fees, user fees for specific municipal services, and other discretionary sources of revenue. Notably, a significant portion—approximately 80% —of this revenue stems from these tax contributions, highlighting taxation's vital role in the city's financial health and ability to serve its residents effectively.

General Fund Expenditure: Where does the money go?
The General Fund serves as the City's primary operating fund. It tracks the sources and uses of resources that are mainly at the discretion of the City Council for providing activities, programs, and services that the community considers necessary and desirable.

Expenditures from the General Fund are stra tegically directed toward enhancing public safety, maintaining public infrastructure through public works, fostering community development, and enriching parks and recreational opportunities. Additionally, it supports essential administrative functions, en suring that the city runs smoothly and effectively meets the needs of its citizens.

256

What has the City done to address revenue challenges?
To proactively address revenue challenges while maintaining acceptable service levels , the City has implemented a series of constructive measures:

 Launched efficiency initiatives incorporating new technology and process improvements to enhance service delivery.
 Fostered greater collaboration to secure regional grants, maximizing funding opportunities.
 The refinancing of the City’s lease revenue bonds has resulted in debt service savings exceeding $2 million over the life of the bonds.  Increased the number of grant applications submitted to diversify funding sources.  Engaged proactively with state and federal represent atives to seek additional funding support.
 Updated the City's user fees to ensure they align with the increasing service costs.  Used non -recurring revenue to pay for deferred maintenance and critical infrastructure needs

The City also recognizes the significant importance of addressing deferred maintenance on its assets. In this context, staff have conducted thorough assessments of the Parks and Recreation systems as well as city-owned facilities, leading to the formulation of the Parks and Recreation and Facilities Master Plan. This plan aims to promote long -term financial sustainability by establishing a strategic investment framework that prioritizes essential improvements to parks, enhancements to existing facilities, and the development of new recreational areas.

In our efforts to address the needs of the community and sustain essential services, it is increasingly apparent that identifying new sources of revenue is critical for ensuring the City’s long-term financial stability. By actively pursuing innovative funding opportunities 257
and forging strategic partnerships, we seek to enhance our financial foundation, thereby improving our ability to serve our residents more effectively.

Additional Tax Initiatives
The City suggests several effective strategies to establish additional and consistent revenue streams that will support the Council in achieving its goals. It is important to emphasize that implementation of these strategies will require voter approval. Moreover, we can tailor these tax structures in various formats to effectively align with the Council's specific revenue objectives.

The following is a summary of the various types of taxes that can be implemented.

1. Sales Tax
The City has the potential to enhance its revenue by increasing the sales tax on purchases made within its jurisdiction. Local governments, which encompass both cities and counties, possess the authority to impose additional sales and use taxes to address their financial requirements. Presently, the sales tax rate in the City stands at 9.25%, while Contra Costa County has established a maximum rate of

9.75%. This provides the City with an opportunity to raise its sales tax by an additional 0.50%. Should the City choose to pursue this increase, it is projected that it could generate an additional $2 million a year in revenue, which could be allocated to support vital public services. The table below shows the sales tax rate comparison with nearby Contra Costa County cities:

2. Real Property Transfer Tax (RPTT) or Documentary Transfer Tax The city of Hercules currently enforces a property tax transfer rate of $1.10 per $1,000 of property value at the time of sale. This tax is typically incurred by the buyer, the seller, or both parties involved in the transaction, with the revenue generated being allocated between the city and the county.

It is noteworthy that only charter cities possess the authority to modify this rate through a ballot measure subject to voter approval. As Hercules is classified as a general law city, any proposal to increase the property tax transfer rate would require the city to obtain charter city status, as well as receive endorsement from the electorate.

City Rate
El Cerrito 10.25%
Pinole 10.25%
Richmond 9.75%
San Pablo 9.50%
Hercules 9.25%
258
At the present rate of $0.55 p er $1,000, Hercules generates approximately $135,000 annually from the Real Property Transfer Tax (RPTT). This revenue is vital for supporting various public services and community initiatives within the city.

Based on average property sales data from 2020 to 2024, which reflects an average property price of $750,000, it is projected that the city could realize an additional $245,000 in annual revenue for every $1 increase in RPTT rates.

A comprehensive guide for becoming a charter city to enhance the Real Property Transfer Tax (RPTT) is included in Attachment 1 for reference.

3. Utility User Tax (UUT)
The utility users' tax (UUT) is a fiscal measure introduced in California in 1967.

This tax can be applied to a variety of essential utility services that res idents rely on daily, including electricity, natural gas, water, sewage disposal, and telecommunication services such as traditional landlines, mobile phones, and long-distance calling. In recent years, local governments have expanded the scope of this tax to include modern digital services, such as internet access, streaming platforms, and video conferencing applications, reflecting the evolving landscape of consumer utilities.

The revenue generated by the UUT can vary significantly based on the specific utilities being taxed and the established tax rate. Utility companies are responsible for collecting these taxes directly from their customers and remitting the funds to the respective city governments.

The current utility users' tax (UUT) rate for the City is set at 8%. This tax serves as a significant revenue source for the General Fund, accounting for approximately 20% of its total revenues and contributing roughly $4 million to the City's annual budget. This financial support is essential for the provision of general services.

Additionally, a 1% increase in the UUT rate has the potential to generate approximately $500,000 in additional annual revenue.

As mentioned, these tax initiatives require voter approval. There are two options for election dates:

 On the date of the next regular Council election that is not less than 88 days after the Council meeting at which the petition is certified, or  On a special election date that is between 88 and 103 days after the council meeting at which the petition is certified.

According to information from Contra Costa County, the estimated cost for conducting a regular election ranges from $2.50 to $4 per registered voter. This results in a projected total cost of approximately $45,000 to $70,000. In contrast, the estimated cost for a special election is between $11 and $14 per registered voter, leading to an overall 259
expense of approximately $190,000 to $250,000, based on the current voter registration figure of 17,152 individuals. Furthermore, if a primary election can be consolidated with a special election, it is anticipated that the associated costs will be comparable to those of a regular election.

The following outlines the process and timeline for placing a G eneral Tax on the ballot.

Typically, the duration required to execute this process is approximately one year.

Special Election (June 2026 Timeline):

The timeline for June 2026 presents several challenges that we must consider. To ensure we gather meaningful community input and conduct thorough opinion research, it is essential to allow adequate time for these processes. The current timeline indicates that if we choose to place the measure on the ballot in June 2026, staff would need to initiate preparations as early as July 2025, a deadline that has already passed.

Task Date
Community input and opinion research conducted (Survey) July 2025 Staff develops options for revenue measure based on community input and opinion research, Council input, and other relevant considerations.August to October 2025 Public information disseminated explaining why and how Council is considering placing a revenue measure on the ballot. November 2025 to January 2026 Council decision on appropriate revenue measure and direction for staff to prepare ballot measure language and required resolutions.

January 2026
Last regularly scheduled meeting of Council for
Introduction/First Reading of revenue measure ordinance. February 2026 (First Meeting) Last regularly scheduled meeting of Council for Second
Reading/Adoption of revenue measure ordinance and approval of resolution for consolidated election.

February 2026 (Second Meeting)
Deadline for City submission of ballot measure to Registrar of Voters.

Deadline for City’s submittal of impartial analysis of ballot measure to Registrar of Voters.

Election Day June 2026
March 2026
260
Regular Election (November 2026 Timeline):

Special Election (June 2027 Timeline):

Task Date
Community input and opinion research conducted (Survey) July 2025 Staff develops options for revenue measure based on community input and opinion research, Council input, and other relevant considerations.August to October 2025 Public information disseminated explaining why and how Council is considering placing a revenue measure on the ballot. November 2025 to January 2026 Council decision on appropriate revenue measure and direction for staff to prepare ballot measure language and required resolutions.

January 2026
Last regularly scheduled meeting of Council for
Introduction/First Reading of revenue measure ordinance. February 2026 (First Meeting) Last regularly scheduled meeting of Council for Second
Reading/Adoption of revenue measure ordinance and approval of resolution for consolidated election.

February 2026 (Second Meeting)
Deadline for City submission of ballot measure to Registrar of Voters.

Deadline for City’s submittal of impartial analysis of ballot measure to Registrar of Voters.

Election Day June 2026
March 2026
Task Date
Community input and opinion research conducted. July 2026 Staff develops options for revenue measure based on community input and opinion research, Council input, and other relevant considerations.August to October 2026 Public information disseminated explaining why and how Council is considering placing a revenue measure on the ballot. November 2026 to January 2027 Council decision on appropriate revenue measure and direction for staff to prepare ballot measure language and required resolutions.

January 2027
Last regularly scheduled meeting of Council for
Introduction/First Reading of revenue measure ordinance. February 2027 (First Meeting) Last regularly scheduled meeting of Council for Second
Reading/Adoption of revenue measure ordinance and approval of resolution for consolidated election.

February 2027 (Second Meeting)
Deadline for City submission of ballot measure to Registrar of Voters.

Deadline for City’s submittal of impartial analysis of ballot measure to Registrar of Voters.

Election Day June 2027
March 2027
261
Bonds
An alternative funding option for the City is to issue bonds. This approach allows local governments to finance various projects at significantly lower interest rates than many other financing methods. The reason for this advantage is that these bonds are backed by the full faith and credit of the government entity, instilling confidence in investors and reducing the perceived risk. As a result, issuing bonds can be a financially beneficial strategy for the City to secure the necessa ry funds for development and infrastructure improvements.

The following is a summary of the various types of bonds that can be implemented.

1. General Obligation (GO) Bonds

General obligation (GO) bonds constitute a category of municipal bonds in which the issuer undertakes the obligation to repay bondholders through the exercise of its full faith and credit, in conjunction with its taxing authority. This obligation necessitates the deployment of all available financial resources, including tax revenues, to facilitate the repayment of the associated debt. The issuance process is typically contingent upon obtaining voter approval, involves a competitive bidding process for selecting underwriters, and relies on tax revenues as the primary means of debt repayment. The collection of ad valorem taxes used to repay GO Bond debt is in addition to the standard one percent general ad valorem property tax currently imposed on property owners.

GO Bonds are vital tools for local governments seeking to finance essential infrastructure projects that contribute to the well -being and development of their communities. These bonds stand out because they are relatively inexpensive to issue due to low borrowing costs, making them an appealing choice for investors looking for secure investments.

While the issuance of GO Bonds presents numerous advantages, such as affordable financing and strong community support, there are also potential disadvantages that must be considered, outlined in the following:

Advantages
 Generates new revenue source to repay debt
 Broad-based tax support for public improvements
 Lowest interest cost due to ad valorem security and unlimited tax pledge

Disadvantages
 Time, expense and uncertain outcome of the election
 Property tax increase that is passed through to residents

262
GO Bond proceeds can be used for a variety of projects, including:
 Capital Improvements : Construction, repair, or rehabilitation of roads, highways, bridges, and parks and parks.
 Affordable Housing: Subsidies for affordable housing projects, and other affordable housing programs.
 Public Safety: Funding for public safety facilities.

The tax base of the City has grown by 92% since 2014. For the fiscal y ear 2023- 24, the assessed value (AV) is approximately $4.7 billion, with an average annual growth rate of 6.8%.

Based on the projected growth in assessed value (AV), the City is anticipated to generate approximately $27.9 million in bond proceeds. With an estimated annual assessed value growth rate of 3.5%, the potential for bond proceeds could rise to as much as $44 million. The following illustration outlines the tax implications for residents regarding the bond proceeds range from $27.9 million to $44 million:

Year Total Assessed Value % Change
2014 $2,432,594,373
2015 $2,864,065,832 17.74%
2016 $3,034,936,504 5.97%
2017 $3,279,462,767 8.06%
2018 $3,505,453,844 6.89%
2019 $3,654,869,380 4.26%
2020 $3,873,305,959 5.98%
2021 $4,113,845,828 6.21%
2022 $4,341,814,600 5.54%
2023 $4,506,106,654 3.78%
2024 $4,675,408,790 3.76%
Average 6.82%
Source: Urbics Analytics LLC
City of Hercules Assessed Value
T ax Rate per
$100,000 of A .V .B ond P roceeds
$19 $27,900,000
$30 $44,000,000
Source: Urban F utures, Inc.

B ond P roceeds at V arying T ax Rate 1
1 Assumes AV growth of 3.5% and 30 year bond
erms; Preliminary - Subject to change.
263
The process and timeline for placing a GO Bond Measure on the ballot (November 2026 Timeline):

Summary Conclusion and Recommendation
In summary, as previously discussed, the staff has identified several effective strategies for generating additional and dependable revenue streams to fulfill the Council's objectives. It is essential to note that most of these options will necessitate voter approval, thereby emphasizing the importanc e of community engagement in the decision -making process. Moreover, various methods are available for structuring these taxes, enabling the Council to determine the annual revenue required to achieve its objectives.

It is recommended that the City consider enhancing its sales tax to align with the rates of surrounding jurisdictions. Currently, the City's sales tax rate is set at 9.25%. Given the established cap of 9.75% in Contra Costa County, the City has the opportunity to increase its sales tax by an ad ditional 0.50%. This proposed adjustment has the potential to generate an additional $2 million annually for the General Fund, which would significantly support essential public services.

To address unmet infrastructure needs, the staff proposes the issua nce of General Obligation (GO) bonds. As discussed in the section, this strategy enables local governments to finance a range of projects at interest rates significantly lower than those associated with alternative financing methods. This benefit is attrib utable to the bonds being backed by the full faith and credit of the City.

Based on the guidance from the City Council during tonight's meeting, staff is ready to move forward with the Council’s preferred revenue-generating initiatives.

FISCAL IMPACT OF RECOMMENDATION:

There are no fiscal impacts associated with this report.

ATTACHMENTS:

1. Staff Report – RPTT Charter City Discussion

2. Presentation

Task Date
City Council Meeting - Approve "exploring" feasibility of a Bond November 2025 Prepare and conduct survey January 2026
City Council Meeting - Survey Results Presentation February 2026 Public outreach on propose tax measure March - June 2026 City Council Meeting - Adopt Resolution Calling Election June 2026 Deadline to submit resolution calling election to the County August 2026 Election Day November 2026
264
1 REPORT TO THE CITY COUNCIL

DATE: Regular Meeting of February 25, 2020
TO: Mayor Esquivias and Members of the City Council

SUBMITTED BY: J. Patrick Tang, City Attorney
David Biggs, City Manager

SUBJECT: Process for Becoming a Charter City for the Purpose of Increasing the Real Property Transfer Tax (RPTT)

RECOMMENDED ACTION:

Receive report, discuss, and provide direction, if any.

COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:

There was no commission or subcommittee review of this item.

FISCAL IMPACT: There is no direct cost associated with the preparation of this report. Future steps of considering a ballot measure, including possible polling, preparing a proposed charter , undertaking the process to place the measure on the ballot, and conducting an election, would all incur costs. The exact amount of the impact would depend on what type of community engagement the Council would want.

Any process would involve staff and city attorney time. If a ballot measure were approved by the voters, Hercules would see an increase in RPTT revenue. The amount of increase would depend upon the RPTT rate set by the City; various estimates are provided in the Revenue Rate Comparison Table, see page 4.

However, it is uncertain whether voters would approve an increased RPTT.

BACKGROUND: At its January 14, 2020 regular meeting, the City Council directed the city attorney and staff to prepare a report for Council information regarding the process for becoming a charter city, for the limited purpose of setting real property transfer tax (RPTT) rates beyond the rate set by state law for general law cities.

DISCUSSION: Cities in California are organized as either general law cities or charter cities. The City of Hercules is a general law city. Cities are general law cities by default, but may go through a process to 265
2 become charter cities. A general law city has the authority to exercise its police powers to act locally, but its acts must be consistent with all general laws adopted by the State Legislature. This is why general law cities are “locked in” to receiving a real property transfer tax (RPTT) rate of $0.55 per $1,000 as set by the state. In contrast, a charter city may use its “home rule” authority to adopt local laws regarding “municipal affairs” that vary from state laws, so that a charter city has more control over local affairs than a general law city. A significant authority possessed by charter cities is the authority, with voter approval, to impose a higher RPTT rate. Charter law cities are not subject to state law regarding RPTT because the setting of RPTT rates is deemed a municipal affair. As a result, charter cities may impose RPTT at a rate higher than the maximum statutory rate otherwise received by general law cities. A list of al l California general law and charter cities, along with their respective RPTT rates, is provided as Attachment 1.

There are other reasons why a general law city may seek to become a charter city other than to set RPTT rates, including but not limited to changing the number of elected officials, establishing district elections, and providing for a strong mayor form of government (see Attachment 2), but given Council’s direction to limit the discussion to becoming a charter city for the sole purpose of adjusting RPTT rates, other reasons for becoming a charter city are not discussed in this report. An example of the type of limiting language that can be included in a charter to restrict the scope of local authority to setting the RPTT rate is provided below:

“The City may exercise the powers of a charter city to generate revenue by imposing a tax on the conveyance of real property, based upon the price paid for the real property ("real property transfer tax"). Any real property transfer tax imposed by the City shall be in addition to any similar tax authorized by the general laws of the State of California. Except as provided in this Charter, the powers of the City shall otherwise be constrained by, subject to, and governed by the general laws of the State as now and hereafter existing relating to cities organized under such general laws.“

It should be noted that , while other governance changes may not be in consideration as part of the approval of an initial charter, charter city status does expand the po ssible universe of both council and voter-initiated changes to governance and other matters via the electoral process that may otherwise not be possible as a General Law City. However, once a charter is adopted by the voters, it can only be changed by an affirmative vote of a majority of the electorate. And, once a RPTT rate has been approved by the voters, as a general tax it cannot be changed without receiving the affirmative vote of a majority of the electorate. In other words, the C ouncil could not change the charter without voter approval , nor could the Council change the RPTT rate without voter approval.

What is RPTT? The real property transfer tax (RPTT) applies to transactions involving the sale and purchase of all improved property with homes or commercial structures , and all unimproved land with no structures. The tax is paid when ownership transfers from the seller of the property to the purchas er of the property. Generally, the tax can be paid by either the seller or the purchaser, or the tax can be shared between the seller and the purchaser. It is a one-time expense related to the transfer of ownership, and is unrelated to the annual payment of property taxes. Currently under the California Revenue and Taxation Code, property in general law ci ties when it is sold is assessed a county transfer tax of $1.10 for every $1,000 of the real estate’s sales price. Counties then split that tax with the cities, so that the city where 266
3 the sale took place receives $0.55 for every $1,000 of sale price. Hercules thus currently receives an RPTT of the maximum allowed for general law cities of $0.55 per $1,000 of value.

Recently a number of general law cities have utilized the legal process to become charter cities for t he limited purpose of setting RPTT rates beyond the baseline rate of $0.55 per $1,000 established for general law cities.1 Under State law and the California Constitution, cities cannot impose, increase or extend any tax unless the tax is approved by the voters. Accordingly, a measure to become a charter city, and an increase to the RPTT, would require voter approval by a simple majority of the electorate.

How much does the property buyer pay? Property owners/sellers in general law cities in California pay a RPTT of $1.10 p er thousand dollars of sales price or $275 on a $250,000 property sale; by way of example, that means $550 on a $500,000 property sale; $825 on a $750,000 property sale, and; $1,100 on a $1,000,000 property sale. The RPTT amounts above are split between the county and the city, so that the city receives half. Should the City become a Charter City and enact a higher RPTT, the full $1.10 per thousand provided for under State law would go to the County, and the City rate authorized under the Charter would be i n addition to the base $1.10 per thousand that the C ounty would receive. The local increase to the RPTT is essentially a local tax measure; u nlike the property tax where the City gets back less than 4 cents per dollar, all of the additional RPTT amount would flow to the City, with none of it going to the State and the County receiving only the statutory allocation of $1.10 per $1,000.

The table below shows the RPTT paid under the General Law city provisions now in effect , and four additional illustrations on what a possible Charter City rate would impose. As you can see, under the charter city examples, the amount that goes to the County remains the same, regardless of the RPTT rate set by the City:

TAX RATE COMPARISON TABLE

Gen. Law RPTT
$1.10/1,000

Charter RPTT
$4/1,000
Charter RPTT
$8/1,000
Charter RPTT
$12/1,000
Charter RPTT
$16/1,000
Property Sale
Price
City/County City/County City/County City/County City/County $250,000 137.50/137.50 1,000/275 2,000/275 3,000/275 4,000/275 $500,000 275/275 2,000/550 4,000/550 6,000/550 8,000/550 $750,000 412.50/412.50 3,000/825 6,000/825 9,000/825 12,000/825 $1,000,000 550/550 4,000/1,100 8,000/1,100 12,000/1,100 16,000/1,100

1 Six cities attempted to increase their RPTT rates at the 2018 general election. Voters in five of the six cities approved the RPTT increases. Two of the cities, El Cerrito and Union City, were general law cities that sought to become charter cities for that limited purpose; El Cerrito voters approved becoming a charter city and increasing their RPTT to $12.00 per thousand, while Union City voters did not approve a similar measure . Emeryville became a charter city to increase RPTT rates in 2014.
267
4 By way of comparison, a Hercules resident who buys a $25,000 automobile in Contra Costa County pays $2,187.50 in sales tax, based on the current 8.75% tax rate, of which the City receives $375.00. How much additional revenue would the city receive if the city adopted an increase to the RPTT? The amount of additional revenue would depend on what RPTT rate was selected. Below is a chart showing the annual revenue that would be received using the average annual RPTT amounts received by Hercules for Fiscal Years 2014-2019 ($115,248), and based on a range of RPTT rates:

REVENUE RATE COMPARISON TABLE

$0.55/1,000 $4/1,000 $8/1,000 $12/1,000 $16/1000
City County City County City County City County City County $115K $115K $838K $230K $1.6M $230K $2.5M $230K $3.3M $230K

What is the process for becoming a charter city?
Becoming a charter city requires approval by a simple majority of voters. Prior to approving submission of the charter to the voters, the City Council must hold at least two public hearings on the proposal of the charter and the content of the charter, and notice of those hearings must be published at least twenty one (21) calendar days before the date of each hearing. The second public hearing must be held at least thirty (30) days after the first hearing, and at l east one of the hearings must be held outside of normal business hours. The City Council may not vote on submission of the charter to the voters until twenty one (21) days after the second public hearing. A charter proposal can only be voted on at a regula r general election, absent a declaration of a fiscal emergency. In order for the City Council to place a charter measure on the ballot for November 3, 2020, the City would need to hold the first formal public hearing on a proposed charter at the first meeting in May 2020.

An increased RP TT is not itself established by the charter. Rather, the RP TT would be established by a separate ordinance submitted simultaneously to the voters. The ordinance would include the RP TT rate along with other administrative rules. Since the draft charter would prohibit the City from exercising any of the powers of a charter city except for the enactment of an increased RPTT, becoming a charter city and the transfer tax are inextricably linked.

It is common for cities looking to adopt a charter to launch a community engagement process to inform the public about what becoming a charter city would entail and receive feedback prior to placing a charter measure on the ballot. Because becoming a charter city is a complicated issue that can easily cause confusion, it is strongly recommended that if the Council decided to try and become a charter city that communications professionals be retained to help explain to the public what becoming a charter city entails.

If the Council wished to explore this further, it would want to make some preliminary decisions about the RPTT, such as the proposed rate, before beginning the community engagement process. In addition, the need to renew the expiring existing Utility Users base rate and ove rride by no later than 2024 or 2025, should be considered. These and other factors could also be assessed by undertaking polling to determine 268
5 the voter’s reactions to a number of possible options. This would normally be one of the first steps before deciding to place a matter on the ballot. The City last undertook polling in 2015 prior to opting to place a measure on the ballot to renew the sales tax override, and the measure was crafted based on the information garnered from professional polling.

Ultimately, the Council would have the ability to make changes and adjustments prior to submitting the measure to the voters , based on feedback received during the engagement process and upon further review.

Possible options for community engagement could include all or some of the following:

• Conduct polling to gauge community interest before placing the measure on the ballot. This could include both scientific and unscientific polling; or • Appoint a community committee to make recommendations regar ding the draft charter and RPTT;
• Conduct official town hall meetings to provide information about the charter and RPTT to the community, as well as allow an opportunity for the public to ask questions and the Council to receive feedback;
• Mail information including FAQs to residents about becoming a charter city.

The above list of community engagement options is non-exhaustive and is intended only as an example of possible types of outreach. The more extensive the outreach, the more community feedback can be expected, but there would be a greater increase in staff time and costs to implement.

SUMMARY CONCLUSION: Becoming a charter city is an option that a number of general law cities have pursued, for varying reasons. Most recently, cities that have plac ed charter city measures on the ballot have done so primarily to allow local control over the setting of RPTT rates, and have opted to expressly exclude additional powers that are otherwise available to charter cities.

ATTACHMENTS:

1. RPTT Rates Statewide

2. League of California Cities Summary

269
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
ALAMEDA COUNTY $ 1.10 $ 1.10
ALAMEDA Chartered $ 12.00 $ 1.10 $ 13.10
ALBANY Chartered $ 11.50 $ 1.10 $ 12.60
BERKELEY Chartered

1.5% for up to
$1.5M value $ 1.10 $ 16.10

2.5% properties
over $2.5M $ 1.10 $ 26.10
DUBLIN General Law $ 0.55 $ 0.55 $ 1.10
EMERYVILLE Chartered $ 12.00 $ 1.10 $ 13.10
FREMONT General Law $ 0.55 $ 0.55 $ 1.10
HAYWARD Chartered $ 8.50 $ 1.10 $ 9.60
LIVERMORE General Law $ 0.55 $ 0.55 $ 1.10
NEWARK General Law $ 0.55 $ 0.55 $ 1.10
OAKLAND Chartered 1% up to $300k $ 1.10 $ 11.10

1.5% $300k -$2M $ 1.10 $ 16.10

1.75% $2M–$5M $ 1.10 $ 18.60

2.5% over $5M $ 1.10 $ 26.10
PIEDMONT Chartered $ 13.00 $ 1.10 $ 14.10
PL EASANTON General Law $ 0.55 $ 0.55 $ 1.10
SAN LEANDRO Chartered $ 6.00 $ 1.10 $ 7.10
UNION CITY General Law $ 0.55 $ 0.55 $ 1.10
ALPINE COUNTY $ 1.10 $ 1.10
AMADOR COUNTY $ 1.10 $ 1.10
AMADOR General Law $ 0.55 $ 0.55 $ 1.10
IONE General Law $ 0.55 $ 0.55 $ 1.10
JACKSON General Law $ 0.55 $ 0.55 $ 1.10
PLYMOUTH General Law $ 0.55 $ 0.55 $ 1.10
SUTTER CREEK General Law $ 0.55 $ 0.55 $ 1.10
BUTTE COUNTY $ 1.10 $ 1.10
BIGGS General Law $ 0.55 $ 0.55 $ 1.10
CHICO Chartered $ 0.55 $ 0.55 $ 1.10
GRIDLEY General Law $ 0.55 $ 0.55 $ 1.10
OROVILLE Chartered $ 0.55 $ 0.55 $ 1.10
PARADISE General Law $ 0.55 $ 0.55 $ 1.10
CALAVERAS COUNTY $ 1.10 $ 1.10
ANGELS CAMP General Law $ 0.55 $ 0.55 $ 1.10
COLUSA COUNTY $ 1.10 $ 1.10
COLUSA General Law $ 0.55 $ 0.55 $ 1.10
WILLIAMS General Law $ 0.55 $ 0.55 $ 1.10
CONTRA COSTA COUNTY $ 1.10 $ 1.10
ANTIOCH General Law $ 0.55 $ 0.55 $ 1.10
BRENTWOOD General Law $ 0.55 $ 0.55 $ 1.10
CLAYTON General Law $ 0.55 $ 0.55 $ 1.10
CONCORD General Law $ 0.55 $ 0.55 $ 1.10
DANVILLE General Law $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 1 of 16 270
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
EL CERRITO Chartered $ 12.00 $ 1.10 $ 13.10
HERCULES General Law $ 0.55 $ 0.55 $ 1.10
LAFAYETTE General Law $ 0.55 $ 0.55 $ 1.10
MARTINEZ General Law $ 0.55 $ 0.55 $ 1.10
MORAGA General Law $ 0.55 $ 0.55 $ 1.10
OAKLEY General Law $ 0.55 $ 0.55 $ 1.10
ORINDA General Law $ 0.55 $ 0.55 $ 1.10
PINOLE General Law $ 0.55 $ 0.55 $ 1.10
PITTSBURG General Law $ 0.55 $ 0.55 $ 1.10
PL EASANT HILL General Law $ 0.55 $ 0.55 $ 1.10
RICHMOND Chartered 0.7% under $1M $ 1.10 $ 8.10

1.25% $1M-$3M $ 1.10 $ 13.60

2.5% $3M-$10M $ 1.10 $ 26.10
3% over $10m $ 1.10 $ 31.10
SAN PABLO General Law $ 0.55 $ 0.55 $ 1.10
SAN RAMON Chartered $ 0.55 $ 0.55 $ 1.10
WALNUT CREEK General Law $ 0.55 $ 0.55 $ 1.10
DEL NORTE COUNTY $ 1.10 $ 1.10
CRESCENT CITY General Law $ 0.55 $ 0.55 $ 1.10
EL DORADO COUNTY $ 1.10 $ 1.10
PLACERVILLE General Law $ 0.55 $ 0.55 $ 1.10
SOUTH L AKE TAHOE General Law $ 0.55 $ 0.55 $ 1.10
FRESNO COUNTY $ 1.10 $ 1.10
CLOVIS General Law $ 0.55 $ 0.55 $ 1.10
COALINGA General Law $ 0.55 $ 0.55 $ 1.10
FIREBAUGH General Law $ 0.55 $ 0.55 $ 1.10
FOWLER General Law $ 0.55 $ 0.55 $ 1.10
FRESNO Chartered $ 0.55 $ 0.55 $ 1.10
HURON General Law $ 0.55 $ 0.55 $ 1.10
KERMAN General Law $ 0.55 $ 0.55 $ 1.10
KINGSBURG Chartered $ 0.55 $ 0.55 $ 1.10
MENDOTA General Law $ 0.55 $ 0.55 $ 1.10
ORANGE COVE General Law $ 0.55 $ 0.55 $ 1.10
PARLIER General Law $ 0.55 $ 0.55 $ 1.10
REEDLEY General Law $ 0.55 $ 0.55 $ 1.10
SANGER General Law $ 0.55 $ 0.55 $ 1.10
SAN JOAQUIN General Law $ 0.55 $ 0.55 $ 1.10
SELMA General Law $ 0.55 $ 0.55 $ 1.10
GLENN COUNTY $ 1.10 $ 1.10
ORLAND General Law $ 0.55 $ 0.55 $ 1.10
WILLOWS General Law $ 0.55 $ 0.55 $ 1.10
HUMBOLDT COUNTY $ 1.10 $ 1.10
ARCATA General Law $ 0.55 $ 0.55 $ 1.10
BLUE LAKE General Law $ 0.55 $ 0.55 $ 1.10
EUREKA Chartered $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 2 of 16 271
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
FERNDALE General Law $ 0.55 $ 0.55 $ 1.10
FORTUNA Chartered $ 0.55 $ 0.55 $ 1.10
RIO DELL General Law $ 0.55 $ 0.55 $ 1.10
TRINIDAD General Law $ 0.55 $ 0.55 $ 1.10
IMPERIAL COUNTY $ 1.10 $ 1.10
BRAWLEY General Law $ 0.55 $ 0.55 $ 1.10
CALEXICO General Law $ 0.55 $ 0.55 $ 1.10
CALIPATRIA General Law $ 0.55 $ 0.55 $ 1.10
EL CENTRO Chartered $ 0.55 $ 0.55 $ 1.10
HOLTVILLE General Law $ 0.55 $ 0.55 $ 1.10
IMPERIAL General Law $ 0.55 $ 0.55 $ 1.10
WESTMORLAND General Law $ 0.55 $ 0.55 $ 1.10
INYO COUNT Y $ 1.10 $ 1.10
BISHOP General Law $ 0.55 $ 0.55 $ 1.10
KERN COUNTY $ 1.10 $ 1.10
ARVIN General Law $ 0.55 $ 0.55 $ 1.10
BAKERSFIELD Chartered $ 0.55 $ 0.55 $ 1.10
CALIFORNIA CITY General Law $ 0.55 $ 0.55 $ 1.10
DELANO General Law $ 0.55 $ 0.55 $ 1.10
MARICOPA General Law $ 0.55 $ 0.55 $ 1.10
MCFARLAND General Law $ 0.55 $ 0.55 $ 1.10
RIDGECREST General Law $ 0.55 $ 0.55 $ 1.10
SHAFTER Chartered $ 0.55 $ 0.55 $ 1.10
TAFT General Law $ 0.55 $ 0.55 $ 1.10
TEHACHAPI General Law $ 0.55 $ 0.55 $ 1.10
WASCO General Law $ 0.55 $ 0.55 $ 1.10
KINGS COUNTY $ 1.10 $ 1.10
AVENAL General Law $ 0.55 $ 0.55 $ 1.10
CORCORAN General Law $ 0.55 $ 0.55 $ 1.10
HANFORD General Law $ 0.55 $ 0.55 $ 1.10
LEMOORE Chartered $ 0.55 $ 0.55 $ 1.10
LAKE COUNTY $ 1.10 $ 1.10
CLEARLAKE General Law $ 0.55 $ 0.55 $ 1.10
LAKEPORT General Law $ 0.55 $ 0.55 $ 1.10
LASSEN COUNT Y $ 1.10 $ 1.10
SUSANVILLE General Law $ 0.55 $ 0.55 $ 1.10
LOS ANGELES COUNTY $ 1.10 $ 1.10
AGOURA HILLS General Law $ 0.55 $ 0.55 $ 1.10
ALHAMBRA Chartered $ 0.55 $ 0.55 $ 1.10
ARCADIA Chartered $ 0.55 $ 0.55 $ 1.10
ARTESIA General Law $ 0.55 $ 0.55 $ 1.10
AVALON General Law $ 0.55 $ 0.55 $ 1.10
AZUSA General Law $ 0.55 $ 0.55 $ 1.10
BALDWIN PARK General Law $ 0.55 $ 0.55 $ 1.10
BELL Chartered $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 3 of 16 272
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
BELLFLOWER General Law $ 0.55 $ 0.55 $ 1.10
BELL GARDENS General Law $ 0.55 $ 0.55 $ 1.10
BEVERLY HILLS General Law $ 0.55 $ 0.55 $ 1.10
BRADBURY General Law $ 0.55 $ 0.55 $ 1.10
BURBANK Chartered $ 0.55 $ 0.55 $ 1.10
CALABASAS General Law $ 0.55 $ 0.55 $ 1.10
CARSON General Law $ 0.55 $ 0.55 $ 1.10
CERRITOS Chartered $ 0.55 $ 0.55 $ 1.10
CLAREMONT General Law $ 0.55 $ 0.55 $ 1.10
COMMERCE General Law $ 0.55 $ 0.55 $ 1.10
COMPTON Chartered $ 0.55 $ 0.55 $ 1.10
COVINA General Law $ 0.55 $ 0.55 $ 1.10
CUDAHY General Law $ 0.55 $ 0.55 $ 1.10
CULVER CITY Chartered $ 4.50 $ 1.10 $ 5.60
DIAMOND BAR General Law $ 0.55 $ 0.55 $ 1.10
DOWNEY Chartered $ 0.55 $ 0.55 $ 1.10
DUARTE General Law $ 0.55 $ 0.55 $ 1.10
EL MONTE General Law $ 0.55 $ 0.55 $ 1.10
EL SEGUNDO General Law $ 0.55 $ 0.55 $ 1.10
GARDENA General Law $ 0.55 $ 0.55 $ 1.10
GLENDALE Chartered $ 0.55 $ 0.55 $ 1.10
GLENDORA General Law $ 0.55 $ 0.55 $ 1.10
HAWAIIAN GARDENS General Law $ 0.55 $ 0.55 $ 1.10
HAWTHORNE General Law $ 0.55 $ 0.55 $ 1.10
HERMOSA BEACH General Law $ 0.55 $ 0.55 $ 1.10
HIDDEN HILLS General Law $ 0.55 $ 0.55 $ 1.10
HUNTINGTON PARK General Law $ 0.55 $ 0.55 $ 1.10
INDUSTRY Chartered $ 0.55 $ 0.55 $ 1.10
INGLEWOOD Chartered $ 0.55 $ 0.55 $ 1.10
IRWINDALE Chartered $ 0.55 $ 0.55 $ 1.10
LA CANADA FLINTRIDGE General Law $ 0.55 $ 0.55 $ 1.10
LA HABRA HEIGHTS General Law $ 0.55 $ 0.55 $ 1.10
LAKEWOOD General Law $ 0.55 $ 0.55 $ 1.10
LA MIRADA General Law $ 0.55 $ 0.55 $ 1.10
LANCASTER Chartered $ 0.55 $ 0.55 $ 1.10
LA PUENTE General Law $ 0.55 $ 0.55 $ 1.10
LA VERNE General Law $ 0.55 $ 0.55 $ 1.10
LAWNDALE General Law $ 0.55 $ 0.55 $ 1.10
LOMITA General Law $ 0.55 $ 0.55 $ 1.10
LONG BEACH Chartered $ 0.55 $ 0.55 $ 1.10
LOS ANGELES Chartered $ 4.50 $ 1.10 $ 5.60
LYNWOOD General Law $ 0.55 $ 0.55 $ 1.10
MALIBU General Law $ 0.55 $ 0.55 $ 1.10
MANHATTAN BEACH General Law $ 0.55 $ 0.55 $ 1.10
MAYWOOD General Law $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 4 of 16 273
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
MONROVIA General Law $ 0.55 $ 0.55 $ 1.10
MONT EBELLO General Law $ 0.55 $ 0.55 $ 1.10
MONTEREY PARK General Law $ 0.55 $ 0.55 $ 1.10
NORWALK General Law $ 0.55 $ 0.55 $ 1.10
PALMDALE Chartered $ 0.55 $ 0.55 $ 1.10
PALOS VERDES ESTATES General Law $ 0.55 $ 0.55 $ 1.10
PARAMOUNT General Law $ 0.55 $ 0.55 $ 1.10
PASADENA Chartered $ 0.55 $ 0.55 $ 1.10
PICO RIVERA General Law $ 0.55 $ 0.55 $ 1.10
POMONA Chartered $ 2.20 $ 1.10 $ 3.30
RANCHO PALOS VERDES General Law $ 0.55 $ 0.55 $ 1.10
REDONDO BEACH Chartered $ 2.20 $ 1.10 $ 3.30
ROLLING HILLS General Law $ 0.55 $ 0.55 $ 1.10
ROLLING HILLS ESTATES General Law $ 0.55 $ 0.55 $ 1.10
ROSEMEAD General Law $ 0.55 $ 0.55 $ 1.10
SAN DIMAS General Law $ 0.55 $ 0.55 $ 1.10
SAN FERNANDO General Law $ 0.55 $ 0.55 $ 1.10
SAN GABRIEL General Law $ 0.55 $ 0.55 $ 1.10
SAN MARINO General Law $ 0.55 $ 0.55 $ 1.10
SANTA CLARITA General Law $ 0.55 $ 0.55 $ 1.10
SANTA FE SPRINGS General Law $ 0.55 $ 0.55 $ 1.10
SANTA MONICA Chartered $ 3.00 $ 1.10 $ 4.10
SIERRA MADRE General Law $ 0.55 $ 0.55 $ 1.10
SIGNAL HILL Chartered $ 0.55 $ 0.55 $ 1.10
SOUTH EL MONTE General Law $ 0.55 $ 0.55 $ 1.10
SOUTH GATE General Law $ 0.55 $ 0.55 $ 1.10
SOUTH PASADENA General Law $ 0.55 $ 0.55 $ 1.10
TEMPLE CITY Chartered $ 0.55 $ 0.55 $ 1.10
TORRANCE Chartered $ 0.55 $ 0.55 $ 1.10
VERNON Chartered $ 0.55 $ 0.55 $ 1.10
WALNUT General Law $ 0.55 $ 0.55 $ 1.10
WEST COVINA General Law $ 0.55 $ 0.55 $ 1.10
WEST HOLLYWOOD General Law $ 0.55 $ 0.55 $ 1.10
WESTL AKE VILLAGE General Law $ 0.55 $ 0.55 $ 1.10
WHITTIER Chartered $ 0.55 $ 0.55 $ 1.10
MADERA COUNTY $ 1.10 $ 1.10
CHOWCHILLA General Law $ 0.55 $ 0.55 $ 1.10
MADERA General Law $ 0.55 $ 0.55 $ 1.10
MARIN COUNTY $ 1.10 $ 1.10
BELVEDERE General Law $ 0.55 $ 0.55 $ 1.10
CORTE MADERA General Law $ 0.55 $ 0.55 $ 1.10
FAIRFAX General Law $ 0.55 $ 0.55 $ 1.10
LARKSPUR General Law $ 0.55 $ 0.55 $ 1.10
MILL VALLEY General Law $ 0.55 $ 0.55 $ 1.10
NOVATO General Law $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 5 of 16 274
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
ROSS General Law $ 0.55 $ 0.55 $ 1.10
SAN ANSELMO General Law $ 0.55 $ 0.55 $ 1.10
SAN RAFAEL Chartered $ 2.00 $ 1.10 $ 3.10
SAUSALITO General Law $ 0.55 $ 0.55 $ 1.10
TIBURON General Law $ 0.55 $ 0.55 $ 1.10
MARIPOSA COUNTY $ 1.10 $ 1.10
MENDOCINO COUNTY $ 1.10 $ 1.10
FORT BRAGG General Law $ 0.55 $ 0.55 $ 1.10
POINT ARENA General Law $ 0.55 $ 0.55 $ 1.10
UKIAH General Law $ 0.55 $ 0.55 $ 1.10
WILLITS General Law $ 0.55 $ 0.55 $ 1.10
MERCED COUNTY $ 1.10 $ 1.10
ATWATER General Law $ 0.55 $ 0.55 $ 1.10
DOS PALOS General Law $ 0.55 $ 0.55 $ 1.10
GUSTINE General Law $ 0.55 $ 0.55 $ 1.10
LIVINGSTON General Law $ 0.55 $ 0.55 $ 1.10
LOS BANOS General Law $ 0.55 $ 0.55 $ 1.10
MERCED Chartered $ 0.55 $ 0.55 $ 1.10
MODOC COUNTY $ 1.10 $ 1.10
ALTURAS General Law $ 0.55 $ 0.55 $ 1.10
MONO COUNTY $ 1.10 $ 1.10
MAMMOTH L AKES General Law $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 6 of 16 275
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
MONTEREY COUNTY $ 1.10 $ 1.10
CARMEL-BY-THE-SEA General Law $ 0.55 $ 0.55 $ 1.10
DEL REY OAKS General Law $ 0.55 $ 0.55 $ 1.10
GONZALES General Law $ 0.55 $ 0.55 $ 1.10
GREENFIELD General Law $ 0.55 $ 0.55 $ 1.10
KING CITY Chartered $ 0.55 $ 0.55 $ 1.10
MARINA Chartered $ 0.55 $ 0.55 $ 1.10
MONTEREY Chartered $ 0.55 $ 0.55 $ 1.10
PACIFIC GROVE Chartered $ 0.55 $ 0.55 $ 1.10
SALINAS Chartered $ 0.55 $ 0.55 $ 1.10
SAND CITY Chartered $ 0.55 $ 0.55 $ 1.10
SEASIDE General Law $ 0.55 $ 0.55 $ 1.10
SOLEDAD General Law $ 0.55 $ 0.55 $ 1.10
NAPA COUNTY $ 1.10 $ 1.10
AMERICAN CANYON General Law $ 0.55 $ 0.55 $ 1.10
CALISTOGA General Law $ 0.55 $ 0.55 $ 1.10
NAPA Chartered $ 0.55 $ 0.55 $ 1.10
SAINT HELENA General Law $ 0.55 $ 0.55 $ 1.10
YOUNTVILLE General Law $ 0.55 $ 0.55 $ 1.10
NEVADA COUNTY $ 1.10 $ 1.10
GRASS VALLEY Chartered $ 0.55 $ 0.55 $ 1.10
NEVADA CITY General Law $ 0.55 $ 0.55 $ 1.10
TRUCKEE Chartered $ 0.55 $ 0.55 $ 1.10
ORANGE COUNTY $ 1.10 $ 1.10
ALISO VIEJO General Law $ 0.55 $ 0.55 $ 1.10
ANAHEIM Chartered $ 0.55 $ 0.55 $ 1.10
BREA General Law $ 0.55 $ 0.55 $ 1.10
BUENA PARK Chartered $ 0.55 $ 0.55 $ 1.10
COSTA MESA General Law $ 0.55 $ 0.55 $ 1.10
CYPRESS Chartered $ 0.55 $ 0.55 $ 1.10
DANA POINT General Law $ 0.55 $ 0.55 $ 1.10
FOUNTAIN VALLEY General Law $ 0.55 $ 0.55 $ 1.10
FULLERTON General Law $ 0.55 $ 0.55 $ 1.10
GARDEN GROVE General Law $ 0.55 $ 0.55 $ 1.10
HUNTINGTON BEACH Chartered $ 0.55 $ 0.55 $ 1.10
IRVINE Chartered $ 0.55 $ 0.55 $ 1.10
LAGUNA BEACH General Law $ 0.55 $ 0.55 $ 1.10
LAGUNA HILLS General Law $ 0.55 $ 0.55 $ 1.10
LAGUNA NIGUEL General Law $ 0.55 $ 0.55 $ 1.10
LA HABRA General Law $ 0.55 $ 0.55 $ 1.10
LAKE FOREST General Law $ 0.55 $ 0.55 $ 1.10
LA PALMA General Law $ 0.55 $ 0.55 $ 1.10
LOS ALAMITOS Chartered $ 0.55 $ 0.55 $ 1.10
MISSION VIEJO General Law $ 0.55 $ 0.55 $ 1.10
NEWPORT BEACH Chartered $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 7 of 16 276
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
ORANGE General Law $ 0.55 $ 0.55 $ 1.10
PLACENTIA Chartered $ 0.55 $ 0.55 $ 1.10
RANCHO SANTA MARGARITA General Law $ 0.55 $ 0.55 $ 1.10 SAN CLEMENTE General Law $ 0.55 $ 0.55 $ 1.10
SAN JUAN CAPISTRANO General Law $ 0.55 $ 0.55 $ 1.10
SANTA ANA Chartered $ 0.55 $ 0.55 $ 1.10
SEAL BEACH Chartered $ 0.55 $ 0.55 $ 1.10
STANTON General Law $ 0.55 $ 0.55 $ 1.10
TUSTIN General Law $ 0.55 $ 0.55 $ 1.10
VILLA PARK General Law $ 0.55 $ 0.55 $ 1.10
WESTMINSTER General Law $ 0.55 $ 0.55 $ 1.10
YORBA LINDA General Law $ 0.55 $ 0.55 $ 1.10
PLACER COUNTY $ 1.10 $ 1.10
AUBURN General Law $ 0.55 $ 0.55 $ 1.10
COLFAX General Law $ 0.55 $ 0.55 $ 1.10
LINCOLN General Law $ 0.55 $ 0.55 $ 1.10
LOOMIS General Law $ 0.55 $ 0.55 $ 1.10
ROCKLIN General Law $ 0.55 $ 0.55 $ 1.10
ROSEVILLE Chartered $ 0.55 $ 0.55 $ 1.10
PLUMAS COUNTY $ 1.10 $ 1.10
PORTOLA General Law $ 0.55 $ 0.55 $ 1.10
RIVERSIDE COUNTY $ 1.10 $ 1.10
BANNING General Law $ 0.55 $ 0.55 $ 1.10
BEAUMONT General Law $ 0.55 $ 0.55 $ 1.10
BLYTHE General Law $ 0.55 $ 0.55 $ 1.10
CALIMESA General Law $ 0.55 $ 0.55 $ 1.10
CANYON LAKE General Law $ 0.55 $ 0.55 $ 1.10
CATHEDRAL CITY General Law $ 0.55 $ 0.55 $ 1.10
COACHELLA General Law $ 0.55 $ 0.55 $ 1.10
CORONA General Law $ 0.55 $ 0.55 $ 1.10
DESERT HOT SPRINGS Chartered $ 0.55 $ 0.55 $ 1.10
EASTVALE General Law $ 0.55 $ 0.55 $ 1.10
HEMET General Law $ 0.55 $ 0.55 $ 1.10
INDIAN WELLS Chartered $ 0.55 $ 0.55 $ 1.10
INDIO General Law $ 0.55 $ 0.55 $ 1.10
JURUPA VALLEY General Law $ 0.55 $ 0.55 $ 1.10
LAKE ELSINORE General Law $ 0.55 $ 0.55 $ 1.10
LA QUINTA Chartered $ 0.55 $ 0.55 $ 1.10
MENIFEE General Law $ 0.55 $ 0.55 $ 1.10
MORENO VALLEY General Law $ 0.55 $ 0.55 $ 1.10
MURRIETA General Law $ 0.55 $ 0.55 $ 1.10
NORCO Chartered $ 0.55 $ 0.55 $ 1.10
PALM DESERT Chartered $ 0.55 $ 0.55 $ 1.10
PALM SPRINGS Chartered $ 0.55 $ 0.55 $ 1.10
PERRIS General Law $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 8 of 16 277
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
RANCHO MIRAGE Chartered $ 0.55 $ 0.55 $ 1.10
RIVERSIDE Chartered $ 1.10 $ 1.10 $ 2.20
SAN JACINTO General Law $ 0.55 $ 0.55 $ 1.10
TEMECULA General Law $ 0.55 $ 0.55 $ 1.10
WILDOMAR General Law $ 0.55 $ 0.55 $ 1.10
SACRAMENTO COUNTY $ 1.10 $ 1.10
CITRUS HEIGHTS General Law $ 0.55 $ 0.55 $ 1.10
ELK GROVE General Law $ 0.55 $ 0.55 $ 1.10
FOLSOM Chartered $ 0.55 $ 0.55 $ 1.10
GALT General Law $ 0.55 $ 0.55 $ 1.10
ISLETON General Law $ 0.55 $ 0.55 $ 1.10
RANCHO CORDOVA General Law $ 0.55 $ 0.55 $ 1.10
SACRAMENTO Chartered $ 2.75 $ 1.10 $ 3.85
SAN BENITO COUNTY $ 1.10 $ 1.10
HOLLISTER General Law $ 0.55 $ 0.55 $ 1.10
SAN JUAN BAUTISTA General Law $ 0.55 $ 0.55 $ 1.10
SAN BERNARDINO COUNTY $ 1.10 $ 1.10
ADELANTO Chartered $ 0.55 $ 0.55 $ 1.10
APPLE VALLEY General Law $ 0.55 $ 0.55 $ 1.10
BARSTOW General Law $ 0.55 $ 0.55 $ 1.10
BIG BEAR LAKE Chartered $ 0.55 $ 0.55 $ 1.10
CHINO General Law $ 0.55 $ 0.55 $ 1.10
CHINO HILLS General Law $ 0.55 $ 0.55 $ 1.10
COLTON General Law $ 0.55 $ 0.55 $ 1.10
FONTANA General Law $ 0.55 $ 0.55 $ 1.10
GRAND TERRACE General Law $ 0.55 $ 0.55 $ 1.10
HESPERIA General Law $ 0.55 $ 0.55 $ 1.10
HIGHLAND General Law $ 0.55 $ 0.55 $ 1.10
LOMA LINDA Chartered $ 0.55 $ 0.55 $ 1.10
MONTCLAIR General Law $ 0.55 $ 0.55 $ 1.10
NEEDLES Chartered $ 0.55 $ 0.55 $ 1.10
ONTARIO General Law $ 0.55 $ 0.55 $ 1.10
RANCHO CUCAMONGA General Law $ 0.55 $ 0.55 $ 1.10
REDLANDS General Law $ 0.55 $ 0.55 $ 1.10
RIALTO General Law $ 0.55 $ 0.55 $ 1.10
SAN BERNARDINO Chartered $ 0.55 $ 0.55 $ 1.10
TWENTYNINE PALMS General Law $ 0.55 $ 0.55 $ 1.10
LAGUNA WOODS General Law $ 0.55 $ 0.55 $ 1.10
UPLAND General Law $ 0.55 $ 0.55 $ 1.10
VICTORVILLE Chartered $ 0.55 $ 0.55 $ 1.10
YUCAIPA General Law $ 0.55 $ 0.55 $ 1.10
YUCCA VALLEY General Law $ 0.55 $ 0.55 $ 1.10
SAN DIEGO COUNTY $ 1.10 $ 1.10
CARLSBAD Chartered $ 0.55 $ 0.55 $ 1.10
CHULA VISTA Chartered $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 9 of 16 278
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
CORONADO General Law $ 0.55 $ 0.55 $ 1.10
DEL MAR Chartered $ 0.55 $ 0.55 $ 1.10
EL CAJON Chartered $ 0.55 $ 0.55 $ 1.10
ENCINITAS General Law $ 0.55 $ 0.55 $ 1.10
ESCONDIDO General Law $ 0.55 $ 0.55 $ 1.10
IMPERIAL BEACH General Law $ 0.55 $ 0.55 $ 1.10
LA MESA General Law $ 0.55 $ 0.55 $ 1.10
LEMON GROVE General Law $ 0.55 $ 0.55 $ 1.10
NATIONAL CITY General Law $ 0.55 $ 0.55 $ 1.10
OCEANSIDE Chartered $ 0.55 $ 0.55 $ 1.10
POWAY General Law $ 0.55 $ 0.55 $ 1.10
SAN DIEGO Chartered $ 0.55 $ 0.55 $ 1.10
SAN MARCOS Chartered $ 0.55 $ 0.55 $ 1.10
SANTEE Chartered $ 0.55 $ 0.55 $ 1.10
SOLANA BEACH General Law $ 0.55 $ 0.55 $ 1.10
VISTA Chartered $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 10 of 16 279
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal

SAN FRANCISCO COUNTY
SAN FRANCISCO Chartered
SAN JOAQUIN COUNTY $ 1.10 $ 1.10
ESCALON General Law $ 0.55 $ 0.55 $ 1.10
LATHROP General Law $ 0.55 $ 0.55 $ 1.10
LODI General Law $ 0.55 $ 0.55 $ 1.10
MANTECA General Law $ 0.55 $ 0.55 $ 1.10
RIPON General Law $ 0.55 $ 0.55 $ 1.10
STOCKTON Chartered $ 0.55 $ 0.55 $ 1.10
TRACY General Law $ 0.55 $ 0.55 $ 1.10
SAN LUIS OBISPO COUNTY $ 1.10 $ 1.10
ARROYO GRANDE General Law $ 0.55 $ 0.55 $ 1.10
ATASCADERO General Law $ 0.55 $ 0.55 $ 1.10
EL PASO DE ROBLES General Law $ 0.55 $ 0.55 $ 1.10
GROVER BEACH General Law $ 0.55 $ 0.55 $ 1.10
MORRO BAY General Law $ 0.55 $ 0.55 $ 1.10
PISMO BEACH General Law $ 0.55 $ 0.55 $ 1.10
SAN LUIS OBISPO Chartered $ 0.55 $ 0.55 $ 1.10
SAN MATEO COUNTY $ 1.10 $ 1.10
ATHERTON General Law $ 0.55 $ 0.55 $ 1.10
BELMONT General Law $ 0.55 $ 0.55 $ 1.10
BRISBANE General Law $ 0.55 $ 0.55 $ 1.10
BURLINGAME General Law $ 0.55 $ 0.55 $ 1.10
COLMA General Law $ 0.55 $ 0.55 $ 1.10
DALY CITY General Law $ 0.55 $ 0.55 $ 1.10
EAST PALO ALTO General Law $ 0.55 $ 0.55 $ 1.10
FOSTER CITY General Law $ 0.55 $ 0.55 $ 1.10
HALF MOON BAY General Law $ 0.55 $ 0.55 $ 1.10
HILLSBOROUGH General Law $ 0.55 $ 0.55 $ 1.10
MENLO PARK General Law $ 0.55 $ 0.55 $ 1.10
MILLBRAE General Law $ 0.55 $ 0.55 $ 1.10
PACIFICA General Law $ 0.55 $ 0.55 $ 1.10
PORTOLA VALLEY General Law $ 0.55 $ 0.55 $ 1.10
REDWOOD CITY Chartered $ 0.55 $ 0.55 $ 1.10
SAN BRUNO General Law $ 0.55 $ 0.55 $ 1.10
SAN CARLOS General Law $ 0.55 $ 0.55 $ 1.10
SAN MATEO Chartered 0.5% of value $ 1.10 $ 6.10
SOUTH SAN FRANCISCO General Law $ 0.55 $ 0.55 $ 1.10
WOODSIDE General Law $ 0.55 $ 0.55 $ 1.10
SANTA BARBARA COUNTY $ 1.10 $ 1.10
BUELLTON General Law $ 0.55 $ 0.55 $ 1.10
CARPINTERIA General Law $ 0.55 $ 0.55 $ 1.10
GOLETA General Law $ 0.55 $ 0.55 $ 1.10
GUADALUPE General Law $ 0.55 $ 0.55 $ 1.10
Over $100,000 AV => 0.5%, Over $250,000 AV => 0.68%
Ov er $1 million AV => 0.75%, Over $5 million AV => 2.25% Ov er $10 million AV => 2.75%, ov er $25 million => 3.00% Discounts for certain solar & seismic improvments.
mjgc rev15Sept2019 CaliforniaCityFinance.com page 11 of 16 280
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
LOMPOC General Law $ 0.55 $ 0.55 $ 1.10
SANTA BARBARA Chartered $ 0.55 $ 0.55 $ 1.10
SANTA MARIA Chartered $ 0.55 $ 0.55 $ 1.10
SOLVANG Chartered $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 12 of 16 281
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
SANTA CLARA COUNTY $ 1.10 $ 1.10
CAM PBELL General Law $ 0.55 $ 0.55 $ 1.10
CUPERTINO General Law $ 0.55 $ 0.55 $ 1.10
GILROY Chartered $ 0.55 $ 0.55 $ 1.10
LOS ALTOS General Law $ 0.55 $ 0.55 $ 1.10
LOS ALTOS HILLS General Law $ 0.55 $ 0.55 $ 1.10
LOS GATOS General Law $ 0.55 $ 0.55 $ 1.10
MILPITAS General Law $ 0.55 $ 0.55 $ 1.10
MONTE SERENO General Law $ 0.55 $ 0.55 $ 1.10
MORGAN HILL General Law $ 0.55 $ 0.55 $ 1.10
MOUNTAIN VIEW Chartered $ 3.30 $ 1.10 $ 4.40
PALO ALTO Chartered $ 3.30 $ 1.10 $ 4.40
SAN JOSE Chartered $ 3.30 $ 1.10 $ 4.40
SANTA CLARA Chartered $ 0.55 $ 0.55 $ 1.10
SARATOGA General Law $ 0.55 $ 0.55 $ 1.10
SUNNYVALE Chartered $ 0.55 $ 0.55 $ 1.10
SANTA CRUZ COUNTY $ 1.10 $ 1.10
CAPITOLA General Law $ 0.55 $ 0.55 $ 1.10
SANTA CRUZ Chartered $ 0.55 $ 0.55 $ 1.10
SCOTTS VALLEY General Law $ 0.55 $ 0.55 $ 1.10
WATSONVILLE Chartered $ 0.55 $ 0.55 $ 1.10
SHASTA COUNTY $ 1.10 $ 1.10
ANDERSON General Law $ 0.55 $ 0.55 $ 1.10
REDDING General Law $ 0.55 $ 0.55 $ 1.10
SHASTA LAKE General Law $ 0.55 $ 0.55 $ 1.10
SIERRA COUNTY $ 1.10 $ 1.10
LOYALTON General Law $ 0.55 $ 0.55 $ 1.10
SISKIYOU COUNT Y $ 1.10 $ 1.10
DORRIS General Law $ 0.55 $ 0.55 $ 1.10
DUNSMUIR General Law $ 0.55 $ 0.55 $ 1.10
ETNA General Law $ 0.55 $ 0.55 $ 1.10
FORT JONES General Law $ 0.55 $ 0.55 $ 1.10
MONTAGUE General Law $ 0.55 $ 0.55 $ 1.10
MOUNT SHASTA General Law $ 0.55 $ 0.55 $ 1.10
TULELAKE General Law $ 0.55 $ 0.55 $ 1.10
WEED General Law $ 0.55 $ 0.55 $ 1.10
YREKA General Law $ 0.55 $ 0.55 $ 1.10
SOLANO COUNTY $ 1.10 $ 1.10
BENICIA General Law $ 0.55 $ 0.55 $ 1.10
DIXON General Law $ 0.55 $ 0.55 $ 1.10
FAIRFIELD General Law $ 0.55 $ 0.55 $ 1.10
RIO VISTA General Law $ 0.55 $ 0.55 $ 1.10
SUISUN CITY General Law $ 0.55 $ 0.55 $ 1.10
VACAVILLE General Law $ 0.55 $ 0.55 $ 1.10
VALLEJO Chartered $ 3.30 $ 1.10 $ 4.40
mjgc rev15Sept2019 CaliforniaCityFinance.com page 13 of 16 282
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
SONOMA COUNTY $ 1.10 $ 1.10
CLOVERDALE General Law $ 0.55 $ 0.55 $ 1.10
COTATI General Law $ 0.55 $ 0.55 $ 1.10
HEALDSBURG General Law $ 0.55 $ 0.55 $ 1.10
PETALUMA Chartered $ 2.00 $ 1.10 $ 3.10
ROHNERT PARK General Law $ 0.55 $ 0.55 $ 1.10
SANTA ROSA Chartered $ 2.00 $ 1.10 $ 3.10
SEBASTOPOL General Law $ 0.55 $ 0.55 $ 1.10
SONOMA General Law $ 0.55 $ 0.55 $ 1.10
WINDSOR General Law $ 0.55 $ 0.55 $ 1.10
STANISLAUS COUNTY $ 1.10 $ 1.10
CERES General Law $ 0.55 $ 0.55 $ 1.10
HUGHSON General Law $ 0.55 $ 0.55 $ 1.10
MODESTO Chartered $ 0.55 $ 0.55 $ 1.10
NEWMAN General Law $ 0.55 $ 0.55 $ 1.10
OAKDALE General Law $ 0.55 $ 0.55 $ 1.10
PATTERSON General Law $ 0.55 $ 0.55 $ 1.10
RIVERBANK General Law $ 0.55 $ 0.55 $ 1.10
TURLOCK General Law $ 0.55 $ 0.55 $ 1.10
WATERFORD General Law $ 0.55 $ 0.55 $ 1.10
SUTTER COUNTY $ 1.10 $ 1.10
LIVE OAK General Law $ 0.55 $ 0.55 $ 1.10
YUBA CITY General Law $ 0.55 $ 0.55 $ 1.10
TEHAMA COUNTY $ 1.10 $ 1.10
CORNING General Law $ 0.55 $ 0.55 $ 1.10
RED BLUFF General Law $ 0.55 $ 0.55 $ 1.10
TEHAMA General Law $ 0.55 $ 0.55 $ 1.10
TRINITY COUNTY $ 1.10 $ 1.10
TULARE COUNTY $ 1.10 $ 1.10
DINUBA Chartered $ 0.55 $ 0.55 $ 1.10
EXETER Chartered $ 0.55 $ 0.55 $ 1.10
FARMERSVILLE General Law $ 0.55 $ 0.55 $ 1.10
LINDSAY Chartered $ 0.55 $ 0.55 $ 1.10
PORTERVILLE Chartered $ 0.55 $ 0.55 $ 1.10
TULARE Chartered $ 0.55 $ 0.55 $ 1.10
VISALIA Chartered $ 0.55 $ 0.55 $ 1.10
WOODLAKE Chartered $ 0.55 $ 0.55 $ 1.10
TUOLUMNE COUNTY $ 1.10 $ 1.10
SONORA General Law $ 0.55 $ 0.55 $ 1.10
VENTURA COUNTY $ 1.10 $ 1.10
CAMARILLO General Law $ 0.55 $ 0.55 $ 1.10
FILLMORE General Law $ 0.55 $ 0.55 $ 1.10
MOORPARK General Law $ 0.55 $ 0.55 $ 1.10
OJAI General Law $ 0.55 $ 0.55 $ 1.10
OXNARD General Law $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 14 of 16 283
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
PORT HUENEME Chartered $ 0.55 $ 0.55 $ 1.10
SAN BUENAVENTURA Chartered $ 0.55 $ 0.55 $ 1.10
SANTA PAULA General Law $ 0.55 $ 0.55 $ 1.10
SIMI VALLEY General Law $ 0.55 $ 0.55 $ 1.10
THOUSAND OAKS General Law $ 0.55 $ 0.55 $ 1.10
mjgc rev15Sept2019 CaliforniaCityFinance.com page 15 of 16 284
California City Documentary and Property Transfer Tax Rates Governance: Per $1000 Rev&T ax Code Per $1000
General Law PropertyValue Sec 11911-11929 PropertyValue or Chartered Cit y Rate Count y Rate T otal
YOLO COUNTY $ 1.10 $ 1.10
DAVIS General Law $ 0.55 $ 0.55 $ 1.10
WEST SACRAMENTO General Law $ 0.55 $ 0.55 $ 1.10
WINTERS General Law $ 0.55 $ 0.55 $ 1.10
WOODLAND General Law $ 0.55 $ 0.55 $ 1.10
YUBA COUNTY $ 1.10 $ 1.10
MAR YSVILLE Chartered $ 0.55 $ 0.55 $ 1.10
WHEATLAND General Law $ 0.55 $ 0.55 $ 1.10
Source
: CaliforniaCityFinance.com
mjgc rev15Sept2019 CaliforniaCityFinance.com page 16 of 16 285
General Law City v. Charter City

Characteristic General Law City Charter City

Ability to Govern
Municipal Affairs

Bound by the state’s general law, regardless
of whether the subject concerns a municipal
affair.

Has supreme authority over “municipal
affairs.” Cal. Const. art. XI, § 5(b).

Form of Government

State law describes the city’s form of
government For example, Government
Code section 36501 authorizes general law
cities be governed by a city council of five
members, a city clerk, a city treasurer, a
police chief, a fire chief and any subordinate
officers or employees as required by law.

City electors may adopt ordinance which
provides for a different number of council
members. Cal. Gov’t section 34871. The
Government Code also authorizes the “city
manager” form of government. Cal. Gov’t
Code § 34851.

Charter can provide for any form of
government including the “strong mayor,”
and “city manager” forms. See Cal. Const.
art. XI, § 5(b); Cal. Gov’t Code § 34450 et
seq.

Elections Generally

Municipal elections conducted in accordance
with the California Elections Code. Cal. Elec.

Code §§ 10101 et seq..

Not bound by the California Elections Code.

May establish own election dates, rules, and
procedures. See Cal. Const. art. XI, § 5(b);
Cal. Elec. Code §§ 10101 et seq..

Methods of Elections

Generally holds at-large elections whereby
voters vote for any candidate on the ballot.

Cities may also choose to elect the city
council “by” or “from” districts, so long as the
election system has been established by
ordinance and approved by the voters. Cal.

Gov’t Code § 34871. Mayor may be elected
by the city council or by vote of the people.

Cal. Gov’t Code §§ 34902.

May establish procedures for selecting
officers. May hold at-large or district
elections. See Cal. Const. art. XI, § 5(b).

City Council Member
Qualifications

Minimum qualifications are:

1. United States citizen

2. At least 18 years old

3. Registered voter

4. Resident of the city at least 15 days
prior to the election and throughout
his or her term

5. If elected by or from a district, be a
resident of the geographical area
comprising the district from which he
or she is elected.

Cal. Elec. Code § 321; Cal. Gov’t Code §§
34882, 36502; 87 Cal. Op. Att’y Gen. 30
(2004).

Can establish own criteria for city office
provided it does not violate the U.S.

Constitution. Cal. Const. art. XI, § 5(b), 82
Cal. Op. Att’y Gen. 6, 8 (1999).
286
Characteristic General Law City Charter City
Public Funds for Candidate
in Municipal Elections
No public officer shall expend and no
candidate shall accept public money for the
purpose of seeking elected office. Cal. Gov’t
Code § 85300.

Public financing of election campaigns is
lawful. Johnson v. Bradley, 4 Cal. 4th 3
89 (
1992).

Term Limits May provide for term limits. Cal. Gov’t Code § 36
502(b).

May provide for term limits. Cal. Const. art.

XI, § 5(b); Cal Gov’t Code Section 36502 (b).

Vacancies and Termination
of Office
An office becomes vacant in several
instances including death, resignation,
removal for failure to perform official duties,
electorate irregularities, absence from
meetings without permission, and upon non-
residency. Cal. Gov’t Code §§ 1770, 36502,
36513.

May establish criteria for vacating and
terminating city offices so long as it does not
violate the state and federal constitutions.

Cal. Const. art. XI, § 5(b).

Council Member
Compensation and
Expense Reimbursement
Salary-ceiling is set by city population and
salary increases set by state law except for
compensation established by city electors.

See Cal. Gov’t Code § 36516. If a cit
y
pr
ovides any type of compensation or
payment of expenses to council members,
then all council members are required to
have two hours of ethics training. See Cal.

Gov’t Code §§ 53234 - 53235.

May establish council members’ salaries.

See Cal. Const. art. XI, § 5(b). If a city
pr
ovides any type of compensation or
payment of expenses to council members,
then all council members are required to
have two hours of ethics training. See Cal.

Gov’t Code §§ 53234 - 53235.

Legislative Authority Ordinances may not be passed within five days of introduction unless they are urgency
ordinances. Cal. Gov’t Code § 36934.

O
rdinances may only be passed at a regular
meeting, and must be read in full at time of
introduction and passage except when, after
reading the title, further reading is waived.

Cal. Gov't Code § 36934.

May establish procedures for enacting local
ordinances. Brougher v. Bd. of Public Works,
205 C
al. 426 (1928).

Resolutions May establish rules regarding the
procedures for adopting, amending or
repealing resolutions.

May establish procedures for adopting,
amending or repealing resolutions. Brougher
v. Bd.
of Public Works, 205 Cal. 426 (1928).

Quorum and Voting
Requirements
A majority of the city council constitutes a
quorum for transaction of business. Cal.

Gov’t Code § 36810.

A
ll ordinances, resolutions, and orders for
the payment of money require a recorded
majority vote of the total membership of the
city council. Cal. Gov't Code § 36936.

Specific legislation requires supermajority
votes for certain actions.

May establish own procedures and quorum
requirements. However, certain legislation
requiring supermajority votes is applicable to
charter cities. For example, see California
Code of Civil Procedure section 1245.240
requiring a vote of two-thirds of all the
members of the governing body unless a
greater vote is required by charter.
287
Characteristic General Law City Charter City

Rules Governing
Procedure and Decorum

Ralph Brown Act is applicable. Cal. Gov’t
Code §§ 54951, 54953(a).

Conflict of interest laws are applicable. See
Cal. Gov’t Code § 87300 et seq..

Ralph Brown Act is applicable. Cal. Gov’t
Code §§ 54951, 54953(a).

Conflict of interest laws are applicable. See
Cal. Gov’t Code § 87300 et seq..

May provide provisions related to ethics,
conflicts, campaign financing and
incompatibility of office.

Personnel Matters

May establish standards, requirements and
procedures for hiring personnel consistent
with Government Code requirements.

May have “civil service” system, which
includes comprehensive procedures for
recruitment, hiring, testing and promotion.

See Cal. Gov't Code § 45000 et seq.

Meyers-Milias-Brown Act applies. Cal. Gov't
Code § 3500.

Cannot require employees be residents of
the city, but can require them to reside within
a reasonable and specific distance of their
place of employment. Cal. Const. art. XI, §
10(b).

May establish standards, requirements, and
procedures, including compensation, terms
and conditions of employment for personnel.

See Cal. Const. art. XI, § 5(b).

Procedures set forth in Meyers-Milias-Brown
Act (Cal. Gov't Code § 3500) apply, but note,
“[T]here is a clear distinction between the
substance of a public employee labor issue
and the procedure by which it is resolved.

Thus there is no question that 'salaries of
local employees of a charter city constitute
municipal affairs and are not subject to
general laws.'” Voters for Responsible
Retirement v. Board of Supervisors, 8
Cal.4th 765, 781 (1994).

Cannot require employees be residents of
the city, but can require them to reside within
a reasonable and specific distance of their
place of employment. Cal. Const. art. XI,
section 10(b).

Contracting Services

Authority to enter into contracts to carry out
necessary functions, including those
expressly granted and those implied by
necessity. See Cal. Gov't Code § 37103;
Carruth v. City of Madera, 233 Cal. App. 2d
688 (1965).

Full authority to contract consistent with
charter.

May transfer some of its functions to the
county including tax collection, assessment
collection and sale of property for non-
payment of taxes and assessments. Cal.

Gov't Code §§ 51330, 51334, 51335.

288
Characteristic General Law City Charter City

Public Contracts

Competitive bidding required for public works
contracts over $5,000. Cal. Pub. Cont. Code
§ 20162. Such contracts must be awarded to
the lowest responsible bidder. Pub. Cont.

Code § 20162. If city elects subject itself to
uniform construction accounting procedures,
less formal procedures may be available for
contracts less than $100,000. See Cal. Pub.

Cont. Code §§ 22000, 22032.

Contracts for professional services such as
private architectural, landscape architectural,
engineering, environmental, land surveying,
or construction management firms need not
be competitively bid, but must be awarded
on basis of demonstrated competence and
professional qualifications necessary for the
satisfactory performance of services. Cal.

Gov't Code § 4526.

Not required to comply with bidding statutes
provided the city charter or a city ordinance
exempts the city from such statutes, and the
subject matter of the bid constitutes a
municipal affair. Pub. Cont. Code § 1100.7;
see R & A Vending Services, Inc. v. City of
Los Angeles, 172 Cal. App. 3d 1188 (1985);
Howard Contracting, Inc. v. G.A. MacDonald
Constr. Co., 71 Cal. App. 4th 38 (1998).

Payment of Prevailing
Wages

In general, prevailing wages must be paid on
public works projects over $1,000. Cal. Lab.

Code § 1771. Higher thresholds apply
($15,000 or $25,000) if the public entity has
adopted a special labor compliance program.

See Cal. Labor Code § 1771.5(a)-(c).

Historically, charter cities have not been
bound by state law prevailing-wage
requirements so long as the project is a
municipal affair, and not one funded by state
or federal grants. Vial v. City of San Diego,
122 Cal. App. 3d 346, 348 (1981). However,
there is a growing trend on the part of the
courts and the Legislature to expand the
applicability of prevailing wages to charter
cities under an analysis that argues that the
payment of prevailing wages is a matter of
statewide concern. The California Supreme
Court currently has before them a case that
will provide the opportunity to decide
whether prevailing wage is a municipal affair
or whether it has become a matter of
statewide concern.

289
Characteristic General Law City Charter City

Finance and Taxing Power

May impose the same kinds of taxes and
assessment as charter cities. See Cal. Gov't
Code § 37100.5.

Imposition of taxes and assessments subject
to Proposition 218. Cal. Const. art.XIIIC.

Examples of common forms used in
assessment district financing include:

• Improvement Act of 1911. Cal. Sts.
& High. Code § 22500 et seq..

• Municipal Improvement Act of 1913.

See Cal. Sts. & High. Code §§
10000 et seq..

• Improvement Bond Act of 1915. Cal.

Sts. & High. Code §§ 8500 et seq..

• Landscaping and Lighting Act of
1972. Cal. Sts. & High. Code §§
22500 et seq..

• Benefit Assessment Act of 1982.

Cal. Gov't Code §§ 54703 et seq..

May impose business license taxes for
regulatory purposes, revenue purposes, or
both. See Cal. Gov't Code § 37101.

May not impose real property transfer tax.

See Cal. Const. art. XIIIA, § 4; Cal. Gov't
Code § 53725; but see authority to impose
documentary transfer taxes under certain
circumstances. Cal. Rev. & Tax. Code §
11911(a), (c).

Have the power to tax.

Have broader assessment powers than a
general law city, as well as taxation power as
determined on a case-by case basis.

Imposition of taxes and assessments subject
to Proposition 218, Cal. Const. art. XIIIC, §
2, and own charter limitations

May proceed under a general assessment
law, or enact local assessment laws and
then elect to proceed under the local law.

See J.W. Jones Companies v. City of San
Diego, 157 Cal. App. 3d 745 (1984).

May impose business license taxes for any
purpose unless limited by state or federal
constitutions, or city charter. See Cal. Const.
art. XI, § 5.

May impose real property transfer tax; does
not violate either Cal. Const art. XIIIA or
California Government Code section 53725.

See Cohn v. City of Oakland, 223 Cal. App.
3d 261 (1990); Fielder v. City of Los
Angeles, 14 Cal. App. 4th 137 (1993).

Streets & Sidewalks

State has preempted entire field of traffic
control. Cal. Veh. Code § 21.

State has preempted entire field of traffic
control. Cal. Veh. Code § 21.

Penalties & Cost Recovery

May impose fines, penalties and forfeitures,
with a fine not exceeding $1,000. Cal. Gov’t
Code § 36901.

May enact ordinances providing for various
penalties so long as such penalties do not
exceed any maximum limits set by the
charter. County of Los Angeles v. City of Los
Angeles, 219 Cal. App. 2d 838, 844 (1963).

290
Characteristic General Law City Charter City

Public Utilities/Franchises

May establish, purchase, and operate public
works to furnish its inhabitants with electric
power. See Cal. Const. art. XI, § 9(a); Cal.

Gov't Code § 39732; Cal. Pub. Util. Code §
10002.

May grant franchises to persons or
corporations seeking to furnish light, water,
power, heat, transportation or
communication services in the city to allow
use of city streets for such purposes. The
grant of franchises can be done through a
bidding process, under the Broughton Act,
Cal. Pub. Util. Code §§ 6001-6092, or
without a bidding process under the
Franchise Act of 1937, Cal. Pub. Util. Code
§§ 6201-6302.

May establish, purchase, and operate public
works to furnish its inhabitants with electric
power. See Cal. Const. art. XI, § 9(a); Cal.

Apartment Ass’n v. City of Stockton, 80 Cal.

App. 4th 699 (2000).

May establish conditions and regulations on
the granting of franchises to use city streets
to persons or corporations seeking to furnish
light, water, power, heat, transportation or
communication services in the city.

Franchise Act of 1937 is not applicable if
charter provides. Cal. Pub. Util. Code §
6205.

Zoning

Zoning ordinances must be consistent with
general plan. Cal. Gov't Code § 65860.

Zoning ordinances are not required to be
consistent with general plan unless the city
has adopted a consistency requirement by
charter or ordinance. Cal. Gov’t. Code §
65803.

291
292
293
Revenue-Generation
Options
City Council Regular Meeting
July 22, 2025
294
Agenda
Review of the
Five-Year General
Fund Forecast
Overview of
Current Revenue
Sources
Where does the City’s
revenues come from?
Operational
Analysis
Where does the money
go?
Need Assessments
Revenue-
Generating
Options
Questions and
Next Steps
295
General Fund
Five-Year Financial Forecast
296
Understand the distinction between a “one-time” solution, a “defer” solution, and a “sustainable” solution
•One-time solutions effectively address immediate
challenges; howev
er, they do not provide a resolution
for ongoing issues.
•Deferrals postpone a problem by addressing a one-time
issue but can result in equal or greater
costs in future
years.
•A sustainable solution solves our ongoing budget issues now and in the future.
297
General Fund Revenues
Where does the money come from?
80% from local taxes
Program Revenues
(User’s Fees)
Miscellaneous (e.g.,
Investment Income)
298
Hercules: Local Tax Risk & Challenges
Sales Tax
o Sales tax revenue in the City mainly comes from a few large businesses, with the top three accounting for
over 50%. If any of these sources fall
short of expectations, it could affect funding for future programs and services.
Property Tax
o Hercules is classified as a low-to-no property tax jurisdiction. The City's share of the base 1% property tax rate is lower than that of most other jurisdictions, accounting for just over 5% of Hercules's total base property taxes.
299
General Fund Expenditures
Where does the money go?
300
Need Assessments
•Unfunded critical infrastructure needs
•Rising cost of goods, services, and utilities
•Employee retention
•Deferred maintenance
301
Taxes
•Taxes are used to pay for public services and facilities that benefit everyo
ne, without needing a direct link between what a
taxpayer
pays and what they receive.
•Cities have the authority to impose any tax that is not expressly prohibited by state law
. (Gov . Code section 37100.5).
•General & Special Tax
 General Tax – revenues may be used for any purposes.
 Majority voter approval required for new or increased local tax.  Special Tax – revenues must be used for specific purpose. 2/3 voter approval required for new or increased local tax 302
Taxes and Fee Assessments
Approval Requirements
(California Constitution)
303
Revenue Option 1:

Additional Tax Initiatives
Sales Tax
The City can increase the sales tax rate from 9.25% to

9.75%, which allows for a 0.50% increase. This
change could generate an additional $2 million in
revenue.

Real Property Transfer Tax
(RPTT)
The fee is $0.55 for every $1,000 of property value at
sale. The city needs charter city status to change this fee. Each $1 increase in the Real Property Transfer
Tax could generate an extra $245,000 annually.

Utility Users’ Tax (UUT)
The city's tax rate is 8%. A 1% increase in
the UUT rate could raise around
$500,000 in revenue each year.
304
Revenue Option 2:

Bond Measures
General Obligation Bonds
Low cost and backed by property tax
revenue to repay the bond, which require
2/3
rd voter-approval
Proceeds can be used to finance large
projects.

Lease Revenue Bonds
Backed by the General Fund revenue, sales
tax
Limitation through the quality, availability
and dollar value of City assets
305
Voter Approval: Timeline
Tax initiatives require voter approval. There
are two options for election dates:
On the date of the next regular Council
election that is not less than 88 days
after the
Council meeting at which the petition is
certified, or
On a special election date that is between 88
and 103 days after the council meeting
at
which the petition is certified.
306
General Tax
Process and Timeline for placing on the ballot
• Special Election (June 2026 Timeline)
Task Date
Community input and opinion research conducted (Survey) July 2025 Staff develops options for revenue measure based on community input and opinion research, Council input, and other relevant considerations.August to October 2025 Public information disseminated explaining why and how Council is considering placing a revenue measure on the ballot. November 2025 to January 2026 Council decision on appropriate revenue measure and direction for staff to prepare ballot measure language and required resolutions.

January 2026
Last regularly scheduled meeting of Council for
Introduction/First Reading of revenue measure ordinance. February 2026 (First Meeting) Last regularly scheduled meeting of Council for Second
Reading/A doption of revenue measure ordinance and approval of resolution for consolidated election.

February 2026 (Second Meeting)
Deadline for City submission of ballot measure to Registrar of Voters.

Deadline for City’s submittal of impartial analysis of ballot measure to Registrar of Voters.

Election Day June 2026
March 2026
307
General Tax
Process and Timeline for placing on the ballot
• Regular Election (November 2026 Timeline)
Task Date
Community input and opinion research conducted. November to December 2025 Staff develops options for revenue measure based on community input and opinion research, Council input, and other relevant considerations.January to March 2026 Public information disseminated explaining why and how Council is considering placing a revenue measure on the ballot. April to June 2026 Council decision on appropriate revenue measure and direction for staff to prepare ballot measure language and required resolutions.

June 2026
Last regularly scheduled meeting of Council for
Introduction/First Reading of revenue measure ordinance. July 2026 (First Meeting) Last regularly scheduled meeting of Council for Second
Reading/A doption of revenue measure ordinance and approval of resolution for consolidated election.

July 2026 (Second Meeting)
Deadline for City submission of ballot measure to Registrar of Voters. August 7, 2026
Deadline for City’s submittal of impartial analysis of ballot measure to Registrar of Voters. August 14, 2026
Election Day November 3, 2026
308
General Tax
Process and Timeline for placing on the ballot
• Special Election (June 2027 Timeline)
Task Date
Community input and opinion research conducted. July 2026 Staff develops options for revenue measure based on community input and opinion research, Council input, and other relevant considerations.August to October 2026 Public information disseminated explaining why and how Council is considering placing a revenue measure on the ballot. November 2026 to January 2027 Council decision on appropriate revenue measure and direction for staff to prepare ballot measure language and required resolutions.

January 2027
Last regularly scheduled meeting of Council for
Introduction/First Reading of revenue measure ordinance. February 2027 (First Meeting) Last regularly scheduled meeting of Council for Second
Reading/A doption of revenue measure ordinance and approval of resolution for consolidated election.

February 2027 (Second Meeting)
Deadline for City submission of ballot measure to Registrar of Voters.

Deadline for City’s submittal of impartial analysis of ballot measure to Registrar of Voters.

Election Day June 2027
March 2027
309
General Obligation Bond (GO) Bond Measure
Process and Timeline for placing on the ballot
Task Date
City Council Meeting - Approve "exploring" feasibility of a Bond November 2025 Prepare and conduct survey January 2026
City Council Meeting - Survey Results Presentation February 2026 Public outreach on propose tax measure March - June 2026 City Council Meeting - Adopt Resolution Calling Election June 2026 Deadline to submit resolution calling election to the County August 2026 Election Day November 2026
310
Questions &
Next Steps
311

DISCUSSION AND/OR ACTION ITEM

AGENDA ITEMS

4. 25-210
312

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of July 22, 2025
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Joseph Vasquez, Chief of Police
SUBJECT: Update on the Hercules Police Department
RECOMMENDED ACTION: Receive an update on the Hercules Police Department

EXECUTIVE SUMMARY:

The Hercules Police Department is a professional , full-service, high-quality department which provides law enforcement with fairness and equality to all. Services include public safety, crime prevention, traffic enforcement, response to medical emergencies, keeping the peace, and participating in a variety of authentic community engagement programs.

Our department is committed to being fully inclusive and strives to recruit and retain personnel with high morals and good character. The department currently has 25 full-time sworn personnel, four full -time administrative support staff, one part-time administrative support member, one full -time Parking Enforcement Officer, and one Reserve Police Officer. We are currently in the beginning stage of hiring one more Police Officer and hope to have another testing process soon to fill our final vacancy. This will bring our total number of Police Officers to 2 6. Our staff is also supported by four volunteers who are critical to maintaining our fleet amongst other miscellaneous duties, and one Police Chaplain who provides services during highly emotional and sensitive circumstances.

The organizational structure of the department includes a Chief of Police, two Police Commanders, five Police Sergeants, four Police Corporals, four Detectives, eight Police Officers and one Traffic Enforcement Officer. One Commander is assigned to the Patrol Division, which includes parking enforcement, property and evidence, and fleet maintenance. The other Commander oversees the Administrative Division , which includes the investigations unit and Records personnel. This Commander is also responsible for h iring, training, policies, and public records act requests. Both 313
Commanders also assist with internal affairs investigations/complaints and keeping members of the public informed on social media.

ANALYSIS:

Over the last three years, the police department has seen a variety of movements within personnel. Detective Greg Sanchez retired after 16 years of dedicated service, Officer Jade Lawson and Detective Mory Saengsourith lateralled to other departments, and part time Police Support Specialist Julia Ford retired. Four Police Officers were hired, and longtime volunteer Kin Kin Sandhu was hired as a part time Police Support Specialist .

Corporal Mike Thompson was promoted to Sergeant, Officer Angel Garica was appointed to Corporal, and Officer Kevin Bassi was appointed to Detective.

With further impending retirements on the horizon, the police department has focused on succession planning for future promotions . Commander Collard Attended the FBI National Academy in Quantico, Virgina, and three Sergeants were rotated as Acting Patrol Commander over a four -month period in his absence. In preparation for a Sergeants examination, four Corporals were rotated through one-month stints in investigations to gain detective experience. In addition, Sergeant Montenegro is currently attending the Sherman Block Supervisory Leadership Institute which is designed to stimulate personal growth, leadership, and ethical decision-making.

The Police Department remains committed to being proactive as we handled over 24,000 calls for service, investigated 1, 540 crimes, made 480 arrests, and issued almost 1000 traffic related citations. Despite the volume of arrests, only 8 uses of force incidents were reported during this annual report. This is a testament to the patience, professionalism, and de-escalation tactics used by our Officers to resolve issues at a lower level.

The use of modern technology has been another point of emphasis. Dash cameras were obtained in 2024 to assist with obtaining critical evidence during traffic enforcement including pursuits. The information produced assists with risk management and ensures valuable information is not lost during these incidents.

The Police Department has obtained the services of Peregrine, wh ich provides data analysis and report management software designed to assist Patrol, Investigations, and Command Staff with a variety of critical information in one location. This informatio n has been used to solve crimes as well as provide data for use of force review.

Parking Enforcement was recently equipped with a new handheld device which produces clear and concise citations. This device expedites the citation process and reduces complaints of unclear violations due to penmanship or smeared ink. These devices also integrate with our report management system which saves time on data entry.

There were many significant cases investigated by our officers this year, which include a traffic enforcement stop where narcotics were discovered in plain view . A subsequent 314
search of the vehicle led to Officers locating a mini -Draco short-barreled riffle with a 30- round magazine. The driver was arrested for possession of an illegal firearm and controlled substances.

Another significant case included locating an occupied stolen vehicle in the 1500 block of Sycamore Ave. As officers attempted to stop the vehicle, the driver fled and collided with a patrol vehicle . While no pursuit was initiated, a police helicopter tracked the suspect vehicle where it was abandoned in Oakland. Follow -up investigation led to the identification of a suspect. A search warrant and arrest warrant were conducted at the suspect’s residence, uncovering a large -scale identity theft and fraud operation. The suspect was arrested, and Officers recovered over 500 blank checks, printers, laminating machines, 20 counterfeit driver’s licenses, several passports, and various other materials associated with identity theft.

The Hercules Police Department assisted and facilitated many public events including the 4th of July fireworks, National Night Out, Halloween Trunk or Treat , and multiple Coffee with a Cop events. We also held our second Breakfast with a Badge, where we served a free breakfast to the senior community during Valentine’s week. In May of this year, we held our second annual Public Safety Fundraising Golf Tournament and raised money to fund our second annual Youth Academy. This year we had 20 kids attend the academy which included an educational, historical, and public safety related trip to Alcatraz.

During this year, we have worked hard at rebuilding community trust and having open and honest communication. The Police Department has participated in two Public Safety Town Hall Meetings where we specifically discussed use of force incidents, training issues, and goals for the future. As a result of these meetings, the Police Department has implemented a Community Liaison Officer assignment to keep the community informed through social media.

Our focus for the incoming year will be to continue rebuilding trust with our community.

We look forward to having open and honest communication through authentic community engagement. We will work on providing our staff with the resources and training needed to comply with new legislative mandates while providing our citizens with the highest level of service. We are committed to improving, preparing for the future , and servi ng our community with honor.

FISCAL IMPACT:

There is no fiscal impact associated with receiving this report.

ATTACHMENTS:

1. Presentation
315

HERCULES
POLICE

DEPARTMENT
2025
316
Promotions, Retirements
and Movement
 Cirilo Kirkpatrick was hired as a Police
Officer
 Miguel Moreno was hired as a Police
Officer
 Darius Sykes-Miller was hired as a Police
Officer
 Nicholas Kirton was hired as a
Police Officer
 Michael Thompson appointed to
Sergeant
 Police Support Specialist Julia Ford retired
 Angel Garcia appointed to Corporal
 Officer Jade Lawson lateralled to an
allied agency
 Officer Kevin Bassi was appointed to
Detective
 Detective Greg Sanchez Retired
 Sergeant Luis Montenegro is attending a
6-month SLI course
 Officer Karla Lazo is now assigned as
our Community Liaison and Social Media
Officer
317
New Technology
 Introduction of Peregrine
• Peregrine is our latest data analysis and report management software • Designed to assist Patrol, Investigators, and Crime Analysts • Identifies crime patterns faster and enables data-driven solutions • Allows collaboration with other agencies using Peregrine to share information and support investigations
 Axon Dash Mounted Cameras
• All patrol vehicles are equipped with dash mounted cameras • Video captured provides critical evidence
• Assists with risk-management and claims against the city 318
New Technology
 Upgraded Parking Enforcement Tools
• Parking Enforcement Officer equipped with a new
handheld device
• Automatically uploads citations into the system in
real time
• Allows for on-the-spot citation printing and
streamlined enforcement
319
2024 Statistics
0 2
0 1
0 0
6 0
0 1
2 3
4 5
6 7
Hercules Police Department
2024 Response to Resistance Chart
24335 Calls for Service
Part 1 & 2 Crimes: 1048
Arrests: 517
Traffic Violations: 1173
320
Significant Cases
On July 31, 2024, at approximately 8:34
PM, a Hercules Police Department
Officer conducted a traffic
enforcement stop in the 800 block of
Willow Avenue. During the contact, the
officer located suspected narcotics,
which led to a probable cause search
of the vehicle. The search resulted in
the discovery of a fully loaded mini
Draco short-barreled rifle equipped
with a 30-round magazine. The driver
was subsequently arrested on firearms
and narcotics-related charges.
321
Significant Cases
 On February 25, 2025, at approximately 5:00 PM,
HPD Officers located a stolen vehicle in the 1500
block of Sycamore Avenue. As officers
attempted to recover the vehicle, the driver fled
and collided with an HPD patrol car. While no
pursuit was initiated, a police helicopter tracked
the suspect vehicle into Oakland, where it was
later abandoned. Follow-up investigation led to
the identification of a suspect. HPD officers
subsequently served a search and arrest warrant
at the suspect’s residence, uncovering a large-
scale identity theft and fraud operation. The
suspect was arrested, and officers recovered
over 500 blank checks, printers and laminating
machines, 20 counterfeit California driver’s
licenses, several passports, and various other
materials associated with identity theft.
322
Community
Engagement
Coffee with a Cop
 We have thoroughly enjoyed
connecting with our
community through Coffee
with a Cop.
 Follow us on Facebook and
Instagram to stay updated on
upcoming events.
 New! We’ve added weekend
events to our calendar to
increase accessibility and
participation.
323
Community
Engagement
BACKPACK GIVEAWAY
NATIONAL NIGHT OUT
TRUNK OR TREAT
324
Community Engagement
Breakfast with a Badge
 The Hercules Police Department had
a fantastic time hosting our 3rd
Annual Breakfast with a Badge,
where we were thrilled to serve a
delicious breakfast to over 100
amazing seniors from our community.

It’s always a joy to connect, share
smiles, and start the day together!
325
Community
Engagement
Citizen’s Police
Academy
 After a three-year pause,
the first Citizen’s Police
Academy was a huge
success! Over 20
community members
joined us for an
engaging eight-week
program, learning
firsthand about police
work and building
stronger connections
with HPD.
326
Community Engagement Youth Police Academy
We kicked off our very first Youth Academy with 21 amazing participants who brought energy and curiosity every session! It was incredible to see these young leaders dive into hands-on activities, learn all about law enforcement, and build awesome connections with our team. We can’t wait for the next one!
327
Organization Chart
Chief of Police
Administrative
Specialist Crofoot
Patrol Commander
Kim
Patrol Sergeant
Montenegro
Corporal
Kauffroath
Officer
Mendieta
Officer Moreno
Patrol Sergeant
Miller
Corporal J
Officer
Fernandez
Officer Sykes-
Miller
Traffic Officer
Scholl
Patrol Sergeant
Thompson
Corporal
Vallejo
Officer
Goldstein
Officer
Kirkpatrick
Patrol Sergeant
Costa
Corporal
Garcia
Officer Gonis
Officer Garci
Parking
Enforcement
Officer Najarro
Property and
Evidence
Clerk Hernandez
Community
Outreach
Officer Lazo
Admin Commander
Collard
Detective Sergeant
Tafesse
Detective Tellez
Detective
Bassi
Detective
Hallford
Records
Specialist Nubla
Records Specialist
Gutierrez
Records Specialist
Sandhu
328
Challenges During This Year
 Public concern regarding use of force incident
 Transparency, accountability, communication, and training  Youth/ Growing Pains
 Retention/Opportunities
 Succession Planning
 Resources/Facilities
 Traffic Issues- John Muir Pkwy, San Pablo Ave, Sycamore Ave, Refugio Valley Road
329
Challenges Addressed
 New Use of Force Review Policy and Procedures
 In the process of adopting a Tactical Disengagement Policy  New directive regarding response to non-criminal medical emergencies.
 New directive regarding muting body worn cameras
 New training being incorporated to address emotional intelligence in public saf
ety, de-escalation, and expanded first aid training to
include seizures
and diabetic signs and symptoms.
 Obtained The Briefing Room training software which provides scenario-based
training related to case law and current industry
standards.
330
Challenges Addressed
 Additional advanced training and opportunities being implemented for employee growth
 Target enforcement and collaborative enforcement. Grant money was obtained to assist with several projects.
 Multiple DUI Checkpoints
 Every 15 Minutes program was conducted for the first time in 13 years. E15M is an educational program designed to teach high school juniors and seniors the consequences of drinking and driving.  Facilities - Both lobbies in the police department are scheduled to be upgraded and rebuilt soon.
331
Future Events
 Citizen’s Academy – September 2025
 Breakfast With a Badge – February
2026
 3rd Public Safety Fundraising Golf
Tournament
May 2026
 School Supply Giveaway July 2026
 Cops & Cars Car Show – August 2026
332
Hercules Police
Department
Serving with Honor
333