City of Piedmont
COUNCIL AGENDA REPORT
DATE: September 2, 2025
TO: Mayor and Council
FROM: Rosanna Bayon Moore, City Administrator
SUBJECT: Final Report of the Pool Bond Oversight Committee
RECOMMENDATION
Accept the final report of the Pool Bond Oversight Committee.
BACKGROUND
On October 4, 2021, the City Council approved a resolution establishing a temporary Pool Bond Oversight Committee (PBOC) pursuant to the requirements of Ordinance 754 N.S. (Measure UU) and Ordinance 762 N.S. The PBOC was charged with reviewing and reporting on the expenditure of bond proceeds dedicated to the rebuilding of the Piedmont Community Pool.
In accordance with the enabling resolution, the Committee’s responsibilities included:
• Reviewing expenditure reports to confirm bond proceeds were used solely for the purposes set forth in Measure UU.
• Informing the public of how bond proceeds were expended. • Producing annual reports on the use of bond proceeds until the funds were fully expended.
DISCUSSION
The Committee provided its final report at its meeting on August 21, 2025, confirming that all bond proceeds were expended solely for the purposes authorized by Measure UU. With the expenditure of all bond funds and submission of its final report, the Committee has completed its assigned duties.
The term of the Pool Bond Oversight Committee extends only until the Committee’s submission of its final report reflecting the full expenditure of bond proceeds. That condition has now been met, and the Committee has no further duties to perform.
Attachment: Bond Oversight Committee’s Final Report with Exhibit A By: Kiran Bawa, Finance Director
1 City of Piedmont
COUNCIL AGENDA REPORT
DATE: August 21, 2025
TO: Mayor and Council
FROM: Patricia Leicher, Chair of Bond Oversight Committee SUBJECT: BOND OVERSIGHT COMMITTEE’S ANNUAL REPORT
BACKGROUND:
The formation of a Bond Oversight Committee (“Committee”) was approved by the Piedmont City Council on October 4, 2021. Per Bond Measure UU (Ordinance 754 N.S.) and Ordinance 762 N.S., which was the formal authorization to issue bonds to fund the rebuilding of the Piedmont Community Pool, the formation of a Bond Oversight Committee was required. The Committee’s focus is on reviewing and reporting on the expenditure of the proceeds of the bonds, specifically:
1. Inform the public how the City is expending the bond proceeds.
2. Review expenditure reports produced by the City to verify that bond proceeds were expended only for the purposes set forth in Measure UU.
3. Produce an annual report which includes the following information:
a. A statement indicating whether the bond proceeds used by the City have been expended only for the purposes set forth in Measure UU; and b. A summary of the Committee’s proceedings and activities for the preceding year.
While the Committee serves in an advisory role and is not responsible for managing or directing project activities, it will leverage the experience, expertise, and insight of its members to ensure the bond proceeds are spent in accordance with Measure UU and Ordinance 762 N.S. Meetings of the Bond Oversight Committee are open to the public and will serve to educate the community on how bond funds are being expended.
The members of the Bond Oversight Committee are:
• Patricia Leicher, Chair
• John Chiang
• Billy Deitch who replaced Dirk ten Grotenhuis
• Margaret Hiller
• Al Lee
Agenda Page Number 2
2 BOND OVERSIGHT COMMITTEE PROCEEDINGS AND ACTIVITIES
The Committee met four times during the past 12 months:
• September 12, 2024
• December 12, 2024
• January 16, 2025. This was a special meeting to review a committee response to an article that had appeared in the Piedmont Post.
• June 24, 2025
The meetings were held in person. Members of the public were invited to attend and informed of the meeting dates and times. There were no members of the public present at any of the meetings.
For the meetings, Mr. Szczech, former City of Piedmont’s Finance Director, served as the liaison between the City and the Committee.
At each meeting, Michael provided detailed summary reports showing the total Measure UU bond proceeds available, including other funding sources, comparisons to the total budget, expenditures to date, and remaining funds available, by category. There were also summaries of commitments to date with the various vendors and contract amounts, amendments, and revised maximums, including respective expenditures to date and remaining contract amounts. The vendors with contracts include:
• Wickman Construction – construction general contractor • ELS Architecture & Urban Design – architecture and engineering design services • Griffin Structures – project management
• Isaac Sports Group – community pool operational analysis • Rincon Consultants Inc. – California Environmental Quality Act (CEQA) compliance • Forensic Analytical – environmental health services
• Coastland Civil Engineering – construction inspection services The total community pool budget is $34,900,000 which is an increase of $4,932,000 over last year’s report. There has been no change in the budget since December 2, 2024.
Measure UU bond proceeds deposited was $24,418,577, which is net of capitalized interest, costs of issuance, and underwriters’ discount. The funding sources for the community pool budget is comprised of the following:
• Measure UU - $25,118,200 (includes $699,623 of interest earnings) • Contributions - $3,146,465 (includes $214,000 pledged but not yet received) • Loan/Grant - $832,800 (includes $80,000 committed but not yet received from CEDA) Agenda Page Number 3
3 • Sewer/Measure BB/interest - $410,000
• Facilities Capital Reserves - $5,392,535 (Frontage and ROW improvements and contingency as needed)
Details were provided of the Hard and Soft Costs, by category, and the respective funding sources. As of May 31, 2025, $28,509,773 was expended on the Community Pool Project. This amount includes $25,118,200 of Measure UU funds (including interest earnings), which fully exhausts the Measure UU funds. Soft costs are limited to 20% of Measure UU funds and totaled 18% or within the limit.
At each meeting, there was a discussion of the construction progress to date led by Daniel Gonzales, City of Piedmont’s Public Works Director. There have been delays because of unknown buried fuel tanks, which had to be removed and contaminated soil off-hauled, utility installation and rainy weather. Completion is now targeted for Fall 2025. The project is currently approximately 96% complete on a cost basis.
Questions were posed by the Committee and answered at each meeting. A copy of the most recent presentation to the Committee, as of June 24, 2025, is attached as Exhibit A.
Following each meeting and presentation, the Committee was satisfied that the City is keeping complete records of expenditures and charging them to the proper funding accounts. The Committee’s focus was specifically on the expenditure of Measure UU proceeds.
Committee members did not review invoices or check copies, nor verify that they were posted to the proper funding sources. Committee members Pat Leicher and John Chiang did not speak with the external auditors, as in prior years, regarding their audit of the City’s financial statements for the fiscal year ended June 30, 2024, since they were satisfied with the Auditor’s report and opinion.
CONCLUSION FOR THIRD AND FINAL ANNUAL REPORT
The Committee is satisfied that the bond proceeds used by the City as of May 31, 2025, which are fully exhausted, have been expended only for the purposes set forth in Measure UU.
Attachments:
Exhibit A: Presentation on June 24, 2025, Bond Oversight Committee Meeting Agenda Page Number 4
Bond Oversight
Committee
June 2025 Update
1 Agenda Page Exhibit Number 5 A
Amount
Total Proceeds $ 25,329,463.85
Fund Deposits
Project Fund Deposit $ 24,418,576.55
Debt Service Fund - Capitalized Interest 712,291.67
25,130,868.22
Delivery Date Expenses
Cost of Issuance $ 146,950.00
Underwriter's Discount 51,645.63
198,595.63
Agenda Page Number 6
Commitments
• As of May 31, 2025, the City has made the following commitments with the Community Pool Project funds:
3 Contract Original Revised Spent
Vendor Date Description Contract Amendments Maximum thru 5/31/25 Remaining Forensic Analytical March 2021 Environmental Health Services $ 9,475 $ 9,475 $ 9,475 $ - June 2021 Environmental Health Services $ 4,845 $ 4,845 $ 4,845 $ - Griffin Structures June 2021 Project Management (A) $ 612,700 $ 1,049,525 $ 1,662,225 $ 1,468,889 $ 193,336 ELS Architecture & Urban Design October 2021 Architecture and Engineering Design Services (B) $ 2,475,554 $ 315,084 $ 2,790,638 $ 2,763,782 $ 26,856 Isaac Sports Group December 2021 Community Pool Operational Analysis (C) $ 35,000 $ 1,990 $ 36,990 $ 36,990 $ - Rincon Consultants Inc. December 2021 California Environmental Quality Act (CEQA) Report $ 16,956 $ - $ 16,956 $ 15,628 $ 1,328 Wickman Construction December 2022 Construction Contract (D) $ 23,870,000 $ 5,689,000 $ 29,559,000 $ 23,194,195 $ 6,364,805 Coastland Civil Engineering April 2023 Construction Inspection Services $ 259,250 $ - $ 259,250 $ 193,385 $ 65,865 Total $ 27,269,460 $ 7,055,599 $ 34,325,059 $ 27,672,869 $ 6,652,190 (A) Revised contract to include construction management and Geotechnical testing and inspection.
Additional amendments for additional time due to project delays (B) Amendment to include Frontage and Right of Way Improvements - to be paid out of the Facilities Capital Fund.
Design of relocated transformer and for additional time due to project delays (C) Revised contract to include travel costs for consultant to present analysis at City Council meeting in person. (D) Contingency increased $800,000 in 12/23; and $2.1 million in 7/24; and $2.8 million in 12/24.
Agenda Page Number 7
4 PROJECT FUND HISTORY
Account # Description FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 TOTAL Major Vendors Revenue
116-0320-003-000 BOND PROCEEDS - 24,418,577 - - - 24,418,577 116-0305-001-001 INTEREST - 80,908 180,222 350,833 87,660 699,623 TOTAL REVENUE $ - $ 24,499,485 $ 180,222 $ 350,833 $ 87,660 25,118,200$ Expenses
116-0417-010-002 PART-TIME SALARIES 17,493 41,338 1,104 - - 59,935 116-0417-013-005 MEDICARE 254 599 16 - - 869
116-0417-013-009 FICA 1,085 2,563 68 - - 3,716
TOTAL PAYROLL 18,831 44,500 1,188 - - 64,519 Project Manager - Benoit 116-0433-117-000 PROJECT MANAGEMENT: DESIGN 14,320 1,415,117 598,767 457,598 120,807 2,606,609 ELS 116-0433-117-001 PROJECT MANAGEMENT 48,242 129,549 422,281 43,436 - 643,508 Griffin Structures 116-0433-117-002 CONSTRUCTION COSTS - - 3,649,154 10,623,465 6,233,155 20,505,774 Wickman Contruction 116-0433-117-003 CONSTRUCTION MANAGEMENT - - 10,309 603,368 199,504 813,181 Griffin Structures 116-0433-117-004 ENVIRONMENTAL - 32,708 15,489 3,582 1,010 52,789 Rincon 116-0433-117-008 PLAN CHECK\PERMIT\INSPECT - 75,295 182,164 100,062 357,521 Coastland Engineering 116-0433-117-005 OTHER - 14,000 27,954 21,712 10,633 74,299 Isaac Sports Group \ Other TOTAL OPERATING 62,562 1,591,374 4,799,249 11,935,325 6,665,171 25,053,681 TOTAL EXPENSES $ 81,393 $ 1,635,874 $ 4,800,437 11,935,325$ $ 6,665,171 25,118,200$ • All Measure UU Funds expended as of January 31, 2025.
Agenda Page Number 8
Community Pool Project – Budget History 05/31/25
5 Total Total Total
Construction Contingency Construction Soft Costs Contingency Soft Costs Project Pool Facility $ 21,350,000 $ 2,135,000 $ 23,485,000 $ 4,076,205 $ 524,655 $ 4,600,860 $ 28,085,860 Offsite Improvements 350,000 35,000 385,000 75,140 75,140 460,140 Timing, Scoreboard, Lighting 435,000 - 435,000 435,000
Adjustment (13,450) (13,450) - (13,450)
Pool Budget - 12/5/2022 $ 22,121,550 $ 2,170,000 $ 24,291,550 $ 4,151,345 $ 524,655 $ 4,676,000 $ 28,967,550 Increase Contingency 800,000 800,000 200,000 200,000 1,000,000 Pool Budget - 12/18/2023 $ 22,121,550 $ 2,970,000 $ 25,091,550 $ 4,151,345 $ 724,655 $ 4,876,000 $ 29,967,550 Increase Contingency 1,632,450 1,632,450 500,000 500,000 2,132,450 Pool Budget - 7/1/2024 $ 22,121,550 $ 4,602,450 $ 26,724,000 $ 4,151,345 $ 1,224,655 $ 5,376,000 $ 32,100,000 Increase Contingency 2,835,000 2,835,000 (35,000) (35,000) 2,800,000 Pool Budget - 12/2/2024 $ 22,121,550 $ 7,437,450 $ 29,559,000 $ 4,151,345 $ 1,189,655 $ 5,341,000 $ 34,900,000 • No change in budget since December 2, 2024
Agenda Page Number 9
Funding Sources
• Measure UU > $24.4 m bond proceeds + $0.7 million interest. • Contributions > PRFO $2.1 m; PBF $0.2m; Kroeger Estate (Teddy Bear) $0.8m.
• Loan\Grant > $82,800 grant from CEDA; $750,000 EBCE loan at 0% interest with 15 year payback for pool electrification. • Measure BB\Sewer > Funds will be used for Street paving and sewer main repair.
• Facilities Capital\Interest > Frontage and ROW improvements, Rec building waterproofing, and construction overages to be paid from Facilities Capital Fund. 6
Agenda Page Number 10
7 COMMUNITY POOL BUDGET Measure UU Contributions Loan\Grant SEWER\BB\INT Fac. Capital Total CONSTRUCTION & OTHER HARD COSTS $ 18,833,777 $ 2,101,984 $ 823,770 $ - $ 362,019 $ 22,121,550 CONTINGENCY $ 2,314,623 $ 409,001 $ - $ 360,000 $ 4,353,826 $ 7,437,450 SUB-TOTAL > HARD COSTS $ 21,148,400 $ 2,510,985 $ 823,770 $ 360,000 $ 4,715,845 $ 29,559,000 PROJ MGMT, A&E, OTHER SOFT COSTS $ 3,464,645 $ 635,480 $ 9,030 $ - $ 42,190 $ 4,151,345 CONTINGENCY $ 505,155 $ - $ - $ 50,000 $ 634,500 $ 1,189,655 SUB-TOTAL > SOFT COSTS $ 3,969,800 $ 635,480 $ 9,030 $ 50,000 $ 676,690 $ 5,341,000 TOTAL PROJECT BUDGET $ 25,118,200 $ 3,146,465 $ 832,800 $ 410,000 $ 5,392,535 $ 34,900,000 ACTUAL EXPENSES APRIL 30, 2025
CONSTRUCTION & OTHER HARD COSTS $ 20,505,775 $ 2,202,262 $ 541,393 $ - $ 270,801 $ 23,520,231 CONTINGENCY $ - $ - $ - $ - $ - $ -
SUB-TOTAL > HARD COSTS $ 20,505,775 $ 2,202,262 $ 541,393 $ - $ 270,801 $ 23,520,231 PROJ MGMT, A&E, OTHER SOFT COSTS $ 4,612,425 $ 299,725 $ 4,830 $ - $ 72,562 $ 4,989,542 CONTINGENCY $ - $ - $ - $ - $ - $ -
SUB-TOTAL > SOFT COSTS $ 4,612,425 $ 299,725 $ 4,830 $ - $ 72,562 $ 4,989,542 % OF TOTAL (A) 18%
TOTAL PROJECT BUDGET $ 25,118,200 $ 2,501,987 $ 546,223 $ - $ 343,363 $ 28,509,773
UNSPENT
CONSTRUCTION & OTHER HARD COSTS $ (1,671,998) $ (100,278) $ 282,377 $ - $ 91,218 $ (1,398,681) CONTINGENCY $ 2,314,623 $ 409,001 $ - $ 360,000 $ 4,353,826 $ 7,437,450 SUB-TOTAL > HARD COSTS $ 642,625 $ 308,723 $ 282,377 $ 360,000 $ 4,445,044 $ 6,038,769 PROJ MGMT, A&E, OTHER SOFT COSTS $ (1,147,780) $ 335,755 $ 4,200 $ - $ (30,372) $ (838,197) CONTINGENCY $ 505,155 $ - $ - $ 50,000 $ 634,500 $ 1,189,655 SUB-TOTAL > SOFT COSTS $ (642,625) $ 335,755 $ 4,200 $ 50,000 $ 604,128 $ 351,458 % OF TOTAL
TOTAL PROJECT BUDGET REMAINING $ - $ 644,478 $ 286,577 $ 410,000 $ 5,049,172 $ 6,390,227
FUNDING SOURCE
Agenda Page Number 11
Community Pool Project – Contingency Analysis 5/31/25
• Construction Contingency – Utility delays, buried fuel tanks, contaminated soil offhaul, ground water intrusion, and contract extension driving increase in contingency. • Other Contingency – Primarily Inspection fees and additional design & engineering costs not specified in original budget. 8
Construction Other Total
INCLUDED IN ORIGINAL BUDGET $ 2,170,000 $ 524,655 $ 2,694,655 Additional approved by City Council - 12/18/23 800,000 200,000 1,000,000 Additional approved by City Council - 07/01/24 1,632,450 500,000 2,132,450 Additional approved by City Council - 12/02/24 2,835,000 (35,000) 2,800,000 TOTAL CONTINGENCY $ 7,437,450 $ 1,189,655 $ 8,627,105
Change Orders \ Other $ (6,332,565) $ (1,129,460) $ (7,462,025) Remaining Contingency $ 1,104,885 $ 60,195 $ 1,165,080
% Remaining 15% 5% 14%
CONTINGENCY
Agenda Page Number 12
Fund Recap
9 MEASURE UU
FUND
ACTIVITY
Balance @ 6/30/2020 $ -
Revenues 25,118,200
Expenditures (25,118,200)
Balance @ 1/31/2025 (0)
Agenda Page Number 13
QUESTIONS ?
10 Agenda Page Number 14