Pinole City Council
July 18, 2023

City of Pinole Enhanced Energy Efficiency/Electrification Pilot Program
I. Overview
The City of Pinole (“City”) allocated Two-Hundred Fifty Thousand ($250,000) for Fiscal Year 2022-2023 for weatherization and energy efficiency improvements for residential buildings in Pinole. Through coordination with the County Department of Conservation and Development (DCD), the City wishes to enter into an agreement with the County Department of Conservation and Development (“County” or “Contractor”) to implement an Enhanced Energy Efficiency/Electrification Pilot Program (Pilot Program) that leverages the existing energy efficiency rebates offered through the County’s existing partnership with the Bay Area Regional Energy Network (BayREN) and free energy efficiency measures provided by the County Weatherization Program. The Enhanced Energy Efficiency Pilot Program would offer increased incentive amounts for select existing energy efficiency and building electrification measures already offered through BayREN and provide additional measures beyond those currently offered by the County low-income Weatherization Program and BayREN. The list of increased incentive amounts and expanded range of measures are specified in Exhibit A, attached hereto. The incentive structure and expanded list of measures build upon the City’s goals to optimize energy efficiency (Pinole General Plan Goal SE.4), explore opportunities for City-wide expansion of Programs and Facilities related to energy efficiency and conservation (Pinole General Plan Policy SE.4.2), and explore funding mechanisms funding sources and mechanisms for energy efficiency improvements for residences (Pinole General Plan Action SE.4.4.5).

To help meet the City’s sustainability goals, the City wishes to execute a contract with the County of Contra Costa to implement an Enhanced Energy Efficiency/Electrification Pilot Program for the period of July 1, 2023 to June 30, 2025, for an amount not to exceed Two Hundred and Fifty-Thousand Dollars ($250,000). The County will be paid up to Two Hundred and Fifty-Thousand Dollars ($250,000) to support the administration and implementation of the Pilot Program in accordance with the rebate incentive(s) and weatherization upgrade cost amounts and administrative and outreach costs specified in Exhibit A, attached hereto.

II. Contractor Obligations
The Contractor (“County”) shall perform the following tasks under direction of the City’s Community Development Director, or designee (“City staff”):

A. Task 1: County Staff Administration of Enhanced Programs

1. Project Management. County will be responsible for coordinating with BayREN Program leads and County Department of Conservation and Development Weatherization program staff to obtain the necessary data required to pay for the additional rebates and weatherization measures specified in Exhibit A, attached hereto. County shall complete the following subtasks required to support the execution of the program:
a. Protocol. The County will develop a protocol to require property owners participating in the BayREN Home+ Program to release additional project information to the County in order for County to conduct reporting as specified in Section II.A.3, Reporting, below.

ATTACHMENT B
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b. Project data. Obtain all necessary project data from BayREN Program leads and County Weatherization Program to verify completion of work, including but not limited to the following:
i. number of projects completed,
ii. project status for each project,
iii. project rebates issued by other programs, such as the Inflation Reduction Act (IRA), Self-Generation Incentive Program (SGIP), Technology and Equipment for Clean Heating (TECH Clean California), or other similar incentive programs that may be instituted by the State. c. Verify project eligibility. County will verify that the project is located within the incorporated City of Pinole. County will verify that the project complies with BayREN or Weatherization Program participation requirements. Requirements include, but are not limited to:
i. use of a BayREN Participating Contractor for BayREN Home+ Program single-family residential projects, and
ii. income qualifications for Weatherization Program projects. d. Document completion of projects. County shall maintain a record of projects completed through Pilot Program. County shall include, at a minimum, the following data for all projects:
i. household data including project location and income (if applicable), ii. project status,
iii. all rebates issued or in process by BayREN,
iv. other program rebates issued or in process from State programs, v. rebate amount issued by County, as specified in Exhibit A, attached hereto,
vi. weatherization upgrade costs covered,
vii. total cost of project before and after all rebates and weatherization upgrade cost payments were issued, and
viii. energy savings and greenhouse gas emissions reductions data for each project.
e. Maximum incentives (rebates and weatherization upgrade costs) paid. Ensure no more than 100% of project cost is paid for by incentives. County will track other federal, state, or local incentives applied to individual projects participating in Pilot Program including, but not limited to, IRA, SGIP, and/or TECH Clean California incentives.

2. Rebate and Weatherization Upgrade Payment Administration. County will be responsible for processing rebates and weatherization upgrade costs. County will issue up to Two Hundred Thousand Dollars ($200,000) for payment of rebates and costs for weatherization upgrades based on the incentive structure specified in Exhibit A, attached hereto.
a. Where applicable, County will issue payment to property owner for verified services completed for qualified projects, as specified in Exhibit A, attached hereto.
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b. On the date the County determines a project in the City of Pinole qualifies for a rebate, County will issue check to property owner within 4 weeks.

3. Reporting. County shall provide project activity summary reports in a format acceptable to City staff on a quarterly basis beginning September 1, 2023 and a final report no later than 60 days after all incentive funding has been expended. Each report shall include the following information:
a. number of individual single-family residences and multifamily units participating in Pilot Program,
b. location of each project,
c. income bracket of each household participating in Pilot Program, d. number of projects in progress,
e. number of projects completed,
f. scope of work completed in each home, including project cost, g. if requested by City staff, documentation of completed Scope of Work for each home,
h. amount of rebate dollars administered to each project, and i. actual or projected amount of total incentive dollars across federal, state, and local programs issued for each project.

B. Task 2: Marketing and Outreach

1. The County shall develop and deploy one or more creative marketing and outreach activities throughout the incorporated City that effectively increases awareness of the Pilot Program. Prior to deploying any marketing and outreach activity, the County shall coordinate with City to submit, for their review and approval, a written plan that describes the County’s proposed marketing and outreach activities. Marketing and outreach activities may include, but are not limited to:
a. Sending one co-branded mailer or postcard notifying residents about the launch of the Pilot Program,
b. Providing additional targeted marketing and outreach to identified disadvantaged areas of City,
c. Providing City webpage content with information on how to participate in Pilot Program,
d. Promoting Pilot Program through targeted digital marketing, or Providing marketing and outreach materials in different languages (Spanish, Cantonese, and Tagalog).

C. Changes to Program Incentive Structure
With recent changes made to BayREN’s Single-Family Program, the City and County anticipate working together towards modifying the incentive structure in Exhibit A during the summer and fall of 2023. Both the City and County must agree in writing to any proposed changes to the incentive structure attached hereto in Exhibit A. If agreed in writing upon by both the City and County, County staff may develop and deploy a modified incentive program. Prior to deploying any modified incentive program, the County shall submit to City staff for their review and approval a written plan with the revised incentive structure that describes the proposed incentive structure and process for 228 of 293

implementing any new or revised incentive amounts. Any new proposed incentive structure by County shall include a budget, schedule, and deliverables.

III. City Obligations
A. The City’s total payments to the County for all services performed under this Contract shall not exceed Two Hundred and Fifty-Thousand Dollars ($250,000) as set forth in Section IV of this Contract, Payment Provisions. The Payment Provisions include the following payments for Tasks 1 and 2 described in this Section:

1. Task 1: The City will pay the County Twenty-Five Thousand Dollars ($25,000), as described in Section IV.B.1.a., below. The City will pay the County Two-Hundred Thousand Dollars ($200,000) for the sole purpose of rebate payments and County Weatherization upgrade costs as described in Section IV.B.1.b.

2. Task 2: The City will pay the County Twenty-Five Thousand Dollars ($25,000) for marketing and outreach, as further described in Section IV.B.2., below.

B. Dollar amounts allocated for each Task as described in Section IIIA., above may be moved between Tasks if requested in writing by County and approved in writing by City staff.

IV. Payment Provisions
A. Within 30 days of the effective date of this Contract, the City will pay Two Hundred and FiftyThousand Dollars ($250,000) to County to operate and administer the Pilot Program. In the event the County does not utilize the entire Two Hundred and Fifty-Thousand Dollars ($250,000) funding amount, or upon written request of the City to end the Pilot Program, the County will return any remaining funds to the City within 30 days of the date the written request was made by the City.

B. Documentation of County Expenses and Rebate Payments. County shall provide City staff with adequate documentation for all expenses incurred under this Contract. All documentation shall provide sufficient detail to ensure activities and costs are clearly identified by task.

1. Task 1: County Staff Administration of Enhanced Programs: Task 1 expenses include staff time costs and payment of rebates to eligible property owners as well weatherization upgrade costs.
a. Project Management. County will be paid at an hourly rate for staff work completed under Task 1. Documentation of County expenses for Task 1 activities will include the job title and hourly rate of the individual performing program administration tasks according to the Rate Schedule, attached hereto as Exhibit B. b. Rebate and Weatherization Upgrade Costs. County will issue rebate checks to each eligible property owner that participates in the Pilot Program, as specified in Exhibit A, attached hereto, and pay for weatherization upgrade costs as specified in Section II.A., above. Documentation of County expenses and payments for Task 1 will include copies of rebate checks issued and cost information for all weatherization upgrades completed.

2. Task 2: Marketing and Outreach: County will be paid an hourly rate for staff work completed under Task 2. Documentation of County expenses for staff time work for Task 2 activities will include the job title and hourly rate of the individual performing program administration tasks according to the Rate Schedule, attached hereto as Exhibit 229 of 293

B. Documentation of County expenses for any vendor or print and mail costs will also be included.

Exhibit A: Action Plan with Incentives/Expanded Measures Exhibit B: Rate Schedule
Exhibit C: Statement of Release of Information
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Pilot Program Action Plan

City of Pinole Enhanced Energy Efficiency/Electrification Pilot Program Action Plan
The City of Pinole (“City”) collaborated with the Contra Costa County Department of Conservation and Development (“County”) to develop an enhanced energy efficiency, electrification, and weatherization rebate incentive structure using funding allocated by the City for weatherization and energy efficiency improvements for single-family and multifamily residential buildings in the City of Pinole. The document details how the Pilot Program will be implemented based on the property type.

Single-Family Residential Properties
Process
Single-family property owners who wish to participate in the Pinole Enhanced Energy Efficiency/Electrification Pilot Program will follow the standard Bay Area Regional Energy Network (BayREN) Home+ Program process, a rebate program administered in coordination with the 9 Bay Area Counties by the Association of Bay Area Governments. They will hire a BayREN Participating Contractor who will install the scope of measures requested by the property owner or landlord. Once the project is completed, the BayREN Participating Contractor will submit the corresponding rebate paperwork to BayREN. BayREN staff will flag that the project is in the City of Pinole and provide County staff with the project address. The County will develop a protocol to require the property owner to release additional project information to the County to be able to access project-specific information for each home that participates in the BayREN Home+ Program.

The County will use the project address to determine whether the project is in the incorporated City of Pinole and verify that the project participated in the BayREN Home+ Program. For a project to be eligible to receive rebates through the Pilot Program, the project must take place in the incorporated City of Pinole and have gone through the BayREN Home+ Program. Once the project’s eligibility is confirmed, BayREN staff will provide the full list of measures completed as part of the project and the rebate amount received through the Home+ Program for each individual measure to the County. BayREN staff will also provide the anticipated or actual incentive amounts received through the Technology and Equipment for Clean Heating Program, Self-Generation Incentive Program, and the Inflation Reduction Act as relevant to the measures installed for each project. The County will use the total cost of each of project measures subtracted by the total amount of all other incentives received or anticipated to be received to determine the Pilot Program incentive amount for the project. The maximum incentive level for each measure is listed in Column 3 of Table 1, below. This will ensure that the incentive amount will not cover more than 100% of the project cost. The County will then issue the Pilot Program rebate amount in the form of a physical check mailed to the property owner.

For single-family properties that complete the induction cooktop/range or heat pump clothes dryer measures, the property owner or landlord will submit their rebate paperwork to BayREN directly rather than having a BayREN Participating Contractor submit the paperwork on their behalf. BayREN staff will flag that this is a project located in the City of Pinole and pass the paperwork on to the County. The County will verify whether the project is in the incorporated City of Pinole. For a project to be eligible to receive rebates through the Pilot Program, the project must take place in the incorporated City of Pinole. Once the project’s eligibility is confirmed, BayREN staff will provide the anticipated or actual incentive amount received through the BayREN Home+ Program and any additional incentive program.

EXHIBIT A
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Pilot Program Action Plan

The County will use the total cost of the induction cooktop/range or heat pump clothes dryer project subtracted by the total amount of all other incentives received or anticipated to be received to determine the Pilot Program incentive amount, as specified in Table 1 below. The County will then issue the Pilot Program rebate in the form of a physical check mailed to the property owner.

Incentives
The BayREN Home+ Program offers a series of energy efficiency and electrification measures for singlefamily residential properties. The current BayREN Home+ Program rebate amounts and the additional Pilot Program rebate amounts are listed in Table 1 below. Unless otherwise specified herein, if any incentives provided in Table 1 are eliminated by BayREN, the additional incentive amounts provided by the City of Pinole shall also be eliminated; if any incentives provided in Table 1 are increased or reduced by BayREN, the additional incentive amounts provided by the City of Pinole shall also be modified, by written agreement between the County and City.

Table 1 Single-Family Residence Pilot Program Rebate Structure Measure BayREN Home+ Incentive Amount Pilot Program Incentive Amount
Operations and Maintenance Measures
Duct replacement $800
$500 (<5% leakage for replacement
OR sealing) starting August 1, 2023
Up to $2,200
Building Shell Measures
Attic insulation $0.75/square foot (not to exceed
$1,000 per home)
Up to $700
Wall insulation $0.70/square foot (not to exceed
$1,000 per home)
Up to $600
Heating and Cooling Measures
High efficiency split central air
conditioner
High efficiency packaged central
air conditioner
$800
$200 starting August 1, 2023
Up to $4,200
High efficiency heat pump $1,000
$400 for fuel substitution; $250 for
electric to heat pump starting
August 1, 2023
Up to $4,500
Water Heating Measures
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Pilot Program Action Plan

Measure BayREN Home+ Incentive Amount Pilot Program Incentive Amount
Heat pump water heater $1,000
$400 for fuel substitution; $250 for
electric to heat pump starting
August 1, 2023
Up to $4,000
Electrification Appliance Measures
Induction electric range or
cooktop
$750
$250 starting July 1, 2023
Up to $550
Heat pump clothes dryer $300
$250 starting July 1, 2023
Up to $450
Electrical panel upgrade N/A Up to $1,000
Multifamily Residential Properties
Process
Multifamily property owners who wish to participate in the Pinole Enhanced Energy Efficiency/Electrification Pilot Program will go through the standard Bay Area Multifamily Building Enhancement (BAMBE) Program. BayREN staff will flag that the project is in the City of Pinole and provide the County with the project address. The County will use the project address to verify whether the project is in the incorporated City of Pinole and therefore eligible to participate in the Pilot Program.

Projects participating in the Pilot Program must sign an additional Statement of Release of Information, attached hereto as Exhibit 3 for the County to be able to access project-specific information. During the standard BAMBE Program site visit and assessment, in addition to the existing measures assessed by BAMBE implementors, roof repairs and electrical panel upgrades intended for future electric vehicle (EV) charging infrastructure will also be considered as measures to include in BAMBE projects in the incorporated City of Pinole. For property owners who decide to pursue either a roof repair/replacement or electrical panel upgrade, the Pilot Program has allocated additional funding listed in Table 2 to reduce the implementation cost to the property owner.

Once BayREN staff issues a check to the property owner, they will send the County a separate copy of the quality assurance documentation, scope of measures completed, and proof of rebates paid. The County will then issue an additional rebate amount no more than the amount listed in Column 2 of Table 2 below, in the form of a physical check mailed to the property owner.

Incentive
Under the Pilot Program, the BAMBE Program offers an additional $250 cash back per unit for each BayREN multifamily project completed in the incorporated City of Pinole. In addition to the additional $250 rebate offered by the City, a roof repair and electrical panel upgrade rebate for either electric vehicle (EV) infrastructure and/or for fuel switching to an all-electric building or for other energy efficiency improvements made to the building would be offered. Table 2 below summarizes the 233 of 293
Pilot Program Action Plan

additional Pilot Program measures and rebate amounts. Unless otherwise specified herein, if any incentives provided in Table 2 below are eliminated by BayREN, the additional incentive amounts provided by the City of Pinole shall also be eliminated; if any incentives provided in Table 1 are increased or reduced by BayREN, the additional incentive amounts provided by the City of Pinole shall also be modified, by written agreement between the County and City.

Table 2 Multifamily Residence Pilot Program Rebate Structure Activity BayREN BAMBE Incentive
Amount
Pilot Program Incentive
Amount
Participation in Standard BAMBE
Program
$500 per unit (BAMBE Base
Rebate for installing 2+ energy
efficiency upgrades that save
10% or more of the building’s
energy).

Specific properties may qualify
for rebates of $5,000+ per unit
with Electrification and
Geographic Adders.
$250 per unit
Roof Repair/Replacement per
Project
N/a Up to $5,000
Electrical panel upgrade for energy
efficiency upgrades, EV
infrastructure, or fuel switching to
all-electric
Subpanel Upgrade: $1,000 per
unit served
Central/Common Area Panel
Upgrade: $5,000 per property
Up to $3,000
Roof Repair and Electrical Panel Upgrade Rebate
Process
Requests for rebates for roof replacements or roof repairs (specified in Table 2), and requests for rebates for panel upgrades (specified in Table 1) will be verified directly by County staff. For these rebates, the property owner will be required to submit proof to the County, such as issuance of final building permit, or other such similar documentation deemed necessary, to substantiate that the roof repair/replacement or electrical panel upgrade was installed. The owner must also provide documentation that demonstrates that proof of payment was issued to the contractor for the cost associated with the installation.

Due to the long lead time sometimes needed for installation of Electric Vehicle (EV) charging infrastructure, if the project includes EV charging infrastructure, the project will be flagged by BayREN staff and be shared with the County. The rebate amount associated with the electrical panel upgrade will not be released by the County until proof of EV charging infrastructure is submitted to the County. 234 of 293
Pilot Program Action Plan

Weatherization Program-eligible Residential Properties
Process
The County Weatherization Program, administered by the County’s Department of Conservation and Development, is a Federal and State-funded program that provides home energy-efficient upgrades at no-cost to people on a low or fixed income.

Under the Pinole Enhanced Energy Efficiency/Electrification Pilot Program, the County Weatherization Program will offer additional services, such as roof repairs and electrical panel upgrades at no cost to the resident(s). The County will hire qualified subcontractors to make the roof repairs and electrical panel upgrades. Pinole residents who wish to participate in the Pilot Program will go through the standard County Weatherization Program. When the project has been deemed eligible for the County Weatherization Program, County Weatherization staff will inform the County project implementation team that there is a project located in the City of Pinole. The County will verify that the project is in the incorporated City of Pinole. If the Project is in the incorporated City of Pinole, the County Weatherization Program team would evaluate whether a roof repair or electrical panel upgrade is needed. If it is determined that any of these additional measures are needed, the County Weatherization Program would have a roofing contractor or electrical panel upgrade contractor (electrician) complete the work at no cost.

Proposed Budget
Item Description Proposed Dollar Amounts
County Staff Administration of Enhanced
Programs
$25,000
Marketing & Outreach Budget $25,000
Enhanced Program Rebates & Weatherization
Upgrade Costs
$200,000
Total Enhanced Program Budget $250,000
Project Timeline
June/July 2023 – Finalize Contract/Interagency Agreement with All Parties June/July 2023 – County Develop Marketing and Outreach Materials/Mailers to Mail Out in June 2023 to residents starting with impacted community areas of Pinole July 2023-June 2025 – County Staff Administers Rebate Checks and Performs County Weatherization Upgrades for Roof Repairs and Panel Upgrades
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Description Job Class Final
Step
CY 2022
Rate Based
on HR2,
with 5%
COLA
CY 2023
with 5%
COLA
CY 2024
with 5%
COLA
Deputy Director - BI 4AD1 5 $ 346.78 $ 364.12 $ 382.32
Fiscal Officer APSA 11 $ 224.13 $ 235.34 $ 247.10
Supervising Accountant SAHJ 5 $ 223.20 $ 234.36 $ 246.08 Accountant III SATA 5 $ 199.03 $ 208.98 $ 219.43
Acctng Tech JD7A 7 $ 147.69 $ 155.07 $ 162.83
Info Sys Programr LPNB 5 $ 263.37 $ 276.54 $ 290.37
Info Sys Mgr 1 LTNA 7 $ 289.00 $ 303.45 $ 318.62
Info Sys Tech II LTVB 5 $ 176.14 $ 184.95 $ 194.19
Network Admin 1 LNSA 5 $ 209.97 $ 220.47 $ 231.49
Admin Svcs Assist III APTA 5 $ 105.09 $ 110.34 $ 115.86 Secretary Advanced Level J3TG 11 $ 152.22 $ 159.83 $ 167.82 Secretary Journey Level J3TF 14 $ 111.83 $ 117.42 $ 123.29 Clerk Specialist JWXD 7 $ 121.28 $ 127.34 $ 133.71
Clerk Senior JWXC 7 $ 127.37 $ 133.74 $ 140.43
Clerk Experienced JWXB 5 $ 113.63 $ 119.31 $ 125.28
Redev/Housing Specialist 51SE 5 $ 128.86 $ 135.30 $ 142.07 Lead Weatherization Specialist 9KT4 5 $ 73.22 $ 76.88 $ 80.73 Weatherization Specialist 9KW7 3 $ 63.18 $ 66.34 $ 69.66 Principal Structural Engineer NCHA 5 $ 276.14 $ 289.95 $ 304.44 Senior Structural Engineer NCNA 3 $ 264.28 $ 277.49 $ 291.37 Structural Engineer NCSA 5 $ 209.61 $ 220.09 $ 231.10
Senior Grading Inspector NXTA 5 $ 210.50 $ 221.03 $ 232.08 Grading Inspector I NXWB 3 $ 162.76 $ 170.90 $ 179.44
Supervisor Inspection Services FADF 5 $ 250.20 $ 262.71 $ 275.85 Principal Bldg Inspector FAHE 5 $ 228.46 $ 239.88 $ 251.88 Sr Bldg Inspector FATE 3 $ 210.40 $ 220.92 $ 231.97
Building Inspector II FAVD 3 $ 183.12 $ 192.28 $ 201.89 Principal Bldg Plan Checker FRHA 7 $ 215.81 $ 226.60 $ 237.93 Senior Bldg Plan Checker FRTA 5 $ 171.56 $ 180.14 $ 189.14 Bldg Plan Checker II FRVA 5 $ 158.78 $ 166.72 $ 175.05
Bldg Plan Checker I FRWA 5 $ 135.51 $ 142.29 $ 149.40
Principal Planner - B 5AHE 5 $ 293.55 $ 308.23 $ 323.64 Principal Planner - A 5AHD 9 $ 280.30 $ 294.32 $ 309.03 Planner III 5ATA 5 $ 252.78 $ 265.42 $ 278.69
Planner II 5AVA 5 $ 193.05 $ 202.70 $ 212.84
Planner I 5AWA 3 $ 161.12 $ 169.18 $ 177.63
Manager Application & Permit Ctr 5PDB 5 $ 229.15 $ 240.61 $ 252.64 Planning Tech III 51TB 5 $ 145.01 $ 152.26 $ 159.87
Planning Tech II 51VB 5 $ 133.86 $ 140.55 $ 147.58
Planning Tech I 51WB 5 $ 110.91 $ 116.46 $ 122.28
Admin Aide - Deep Class AP7A 10 $ 154.94 $ 162.69 $ 170.82 Admin Intern AP9A 27 $ 81.80 $ 85.89 $ 90.18
G:\Accounting\acct-cd\Victoria\Hourly Rates\Bayren\Bayren Hourly Rates Rate Schedule EXHIBIT B
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CITY COUNCIL
REPORT
10A
DATE: JULY 18, 2023
TO: MAYOR AND COUNCIL MEMBERS
FROM: SANJAY MISHRA, PUBLIC WORKS DIRECTOR
SUBJECT: CONDUCT PUBLIC HEARING AND ADOPT A RESOLUTION

CONFIRMING THE ASSESSMENTS AND ORDERING THE LEVY FOR

THE PINOLE VALLEY ROAD LANDSCAPE AND LIGHTING
ASSESSMENT DISTRICT FOR FISCAL YEAR 2023/2024

RECOMMENDATION
Staff recommends that the City Council:

1. Conduct a Public Hearing concerning the levy and collection of assessments within the Pinole Valley Road Landscape and Lighting Assessment District and consider any and all objections to the assessments.

2. Adopt a resolution confirming the assessment and diagram as is described in the Annual Assessment Report, levying an assessment for the fiscal year commencing July 1, 2023 and ending June 30, 2024 and ordering the City Engineer to prepare and submit the assessments to the Contra Costa County Assessor’s Office for placement onto the Fiscal Year 2023/2024 secured property tax roll.

BACKGROUND
On July 8, 2008, the City Council adopted Resolution 2008-91 forming the Pinole Valley Road Landscape and Lighting Assessment District (the “District”), ordering maintenance work therein, confirming the diagram and assessment, and providing for the levy of annual assessments therein. The City has installed improvements on Pinole Valley Road between Henry Avenue and Ramona Street. The purpose of the District is to provide a stable funding source for the ongoing maintenance of the following:
• Traffic signals
• Streetlights
• Median landscaping
• Irrigation for the landscaping
• Electricity to the traffic signals and streetlights
• Graffiti removal
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City Council Report
July 18, 2023 2

REVIEW & ANALYSIS
On May 16 and June 20, 2023, the City Council took several actions that are required every year to levy and collect the assessments for the District. Those actions are shown below.

1. Adopted a resolution ordering the preparation and filing of an annual Engineer’s Report.

2. Adopted a resolution declaring the intention to levy and collect assessments at specified rates; declaring the intention to conduct a Public Hearing concerning the levy of assessments; and approving the annual Engineer’s Report.

It is proposed that the City Council conduct a public hearing and adopt the attached Resolution to:

1. Approve assessment amounts for Fiscal Year 2023/2024.

2. Order the assessment amounts to be submitted to the Contra Costa County Assessor for placement on the secured property tax roll.

The assessment rates for Fiscal Year 2023/2024 for Zone A and Zone B are proposed to be increased from the previous year. The proposed rates for 2023/2024 are $535.84 per assessment unit (“AU”) for Zone A and $582.97 per AU for Zone B. An AU is equivalent to an acre of developable property. The proposed assessment represents an increase of 7.46% for Zone A and 11.22% for Zone B. The proposed increases are due to additional costs to maintain the District.

Although the proposed assessment rates for Fiscal Year 2023/2024 are increasing from the previous year, the increase is below the allowable maximum rate that was approved when the District was initially formed. The maximum assessment is based on an annual inflation factor of the greater of 2% or the change in the U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index for all Urban Consumers (CPI-U):

San Francisco-Oakland-San Jose for April of each year. The April 2023 CPI-U is 4.2% for a 12 month period, as shown at: https://www.bls.gov/regions/west/newsrelease/consumerpriceindex_sanfrancisco.htm. The maximum assessment rate per unit in FY 2023/2024 is $636.92 for Zone A and $601.28 for Zone B which represents an increase of 4.2% over the last fiscal year. As the proposed rates are below the maximum assessment rate, the City is not required to undertake the more comprehensive procedural notice and protest requirements of Proposition 218.

The attached Assessment Report provides a complete description of how the maximum assessment and annual inflation factors are calculated.

A Public Hearing is required to allow property owners subject to the assessment the opportunity to provide comment. Notice of the public hearing was published in the manner required by applicable law.
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City Council Report
July 18, 2023 3

CALIFORNIA ENVIRONMENTAL QUALITY ACT
The proposed actions of the City Council are not a project as defined by the CEQA Guidelines and have no impact on the environment.

SUSTAINABILITY
The levy and collection of assessments will allow for the continued operation and maintenance of the improvements within the District.

FISCAL IMPACT
The proposed assessments will be collected for the City by the Contra Costa County Treasurer - Tax Collector via the secured property tax bills for the assessable parcels within the District. The proposed rates for 2023/2024 are $535.84 per assessment unit (“AU”) for Zone A and $582.97 per AU for Zone B. The total District revenue is expected to be $57,680.26.

ATTACHMENTS
A. Resolution
B. Annual Assessment Report for the Pinole Valley Landscape and Lighting Assessment District prepared by the City Engineer for FY 2023-24 239 of 293
RESOLUTION NO. 2023 – XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PINOLE CONFIRMING

THE ANNUAL ASSESSMENT AND ORDERING THE LEVY AND COLLECTION OF

ASSESSMENTS FOR THE PINOLE VALLEY ROAD LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT FOR FISCAL YEAR 2023/2024
WHEREAS, the Pinole City Council, pursuant to the terms of the “Landscaping and Lighting Act of 1972” (the “1972 Act”), Division 15, Part 2, Chapter 1, Article 1 of the Streets and Highways Code of the State of California (commencing with Section 22500) did by previous Resolutions initiate proceedings for the special maintenance district known and designated as “The Pinole Valley Road Landscape and Lighting Assessment District” (the “District”). The District is comprised of two Zones (Zone A and Zone B) which are located on Pinole Valley Road between Henry Avenue and Ramona Street; and
WHEREAS, the City Engineer has prepared and filed with the City Clerk the Annual Assessment Report (the “Report”) in connection with the proposed levy and collection of assessments upon eligible parcels of land within the District. The Report has been prepared based on the estimated costs to operate, maintain and service the improvements located within each Zone of the District; and WHEREAS, the City Council approved the Report at its meeting on June 20, 2023; and
WHEREAS, the assessments are not based on the assessed value of the properties but are based on the special benefit conferred upon said eligible parcels from the improvements and the maintenance and operation of the District; and WHEREAS, the assessments are in compliance with all laws pertaining to the levy and collection of assessments, including Proposition 218; and WHEREAS, the City Council set a public hearing for July 18 to consider the levy of the proposed assessment.

NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS:

1. Following notice duly given, the City Council has held a full and fair public hearing regarding the Report and the levy and collection of assessments within the District. The City Council received and considered all written and oral statements, including any and all protests or other communications made or filed by any interested persons. Majority protest was not submitted regarding the proposed levy.

2. Based upon its review (and any applicable amendments) of the Report, a copy of which has been filed with the City Clerk, the City Council hereby finds and determines that:

ATTACHMENT A
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a. The assessable properties within the District, which are identified in the Report, receive special benefit from the operation, maintenance and servicing of the landscape and lighting improvements.
b. The net amount to be assessed upon the properties is based on the historical and estimated costs to provide said maintenance and servicing and is apportioned by a formula that fairly distributes the net amount among all assessable parcels in proportion to the estimated special benefit received from the improvements and services.

3. The Report and assessments, as presented and which are on file with the office of the City Clerk, are hereby confirmed as filed.

4. The City Council hereby orders the maintenance and servicing of the improvements to be made in accordance with the Report and the 1972 Act.

5. The maintenance, operation and servicing of the landscape and lighting improvements shall be performed pursuant to the 1972 Act, and the County Assessor of Contra Costa County shall enter onto the County Tax Roll, opposite each assessable parcel of land, the assessment amount and such assessments shall be collected at the same time and in the same manner as the County taxes are collected. After collection of the assessments by the County, the net amount of said assessments shall be paid to the City.

6. The City shall deposit all money representing assessments collected by the County to the credit of a fund especially for the District. Such money shall be expended only for the maintenance, operations and servicing of the landscape and lighting improvements located within the District boundaries.

7. The adoption of this Resolution constitutes the levy of assessments within the District for the fiscal year beginning July 1, 2023 and ending June 30, 2024.

8. The City Clerk is hereby authorized and directed to file the levy and a diagram of the District with the County Assessor upon adoption of this Resolution.

9. A certified copy of this Resolution shall be filed in the office of the City Clerk and shall remain open for public inspection.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pinole held on this 18th day of July, 2023, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:
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I hereby certify that the foregoing resolution was regularly introduced, passed, and adopted on the 18th day of July, 2023.
___________________________________
Heather Bell, CMC
City Clerk
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PINOLE VALLEY ROAD LANDSCAPE

AND LIGHTING ASSESSMENT

DISTRICT
ENGINEER' S REPORT FY 2023-24
JUNE 20, 2023

ZONE A ZONE B

ATTACHMENT B
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ENGINEER'S REPORT AFFIDAVIT
City of Pinole
Contra Costa County, State of California
Pinole Valley Landscape and Lighting District
The undersigned submits this report as directed by the City Council. This report was prepared by a Professional Engineer, licensed in the State of California. This report describes the District including the improvements, budgets, parcels, and assessments to be levied for fiscal year 2023/24, as they existed at the time of the passage of the resolution of intention. Reference is hereby made to the Contra Costa County Assessor's maps for detailed descriptions of the lines and dimensions of parcels within the District.

Dated this day of 13th June, 2023
By Sanjay Mishra, PE, TE
City Engineer
RCE # 71239
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1 TABLE OF CONTENTS
INTRODUCTION ....................................................................................2 DESCRIPTION OF THE DISTRICT AND BOUNDARIES..................... 3 IMPROVEMENTS AND SERVICES PROVIDED ................................. 4 SECTION II – METHOD OF APPORTIONMENT....................................5 DESCRIPTION OF BENEFIT ............................................................... 5 ASSESSMENT RANGE FORMULA..................................................... 6 ASSESSMENT METHODOLOGY........................................................ 9 SECTION III – ZONE BUDGETS............................................................9 DESCRIPTION OF BUDGET ITEMS.................................................. 11 ACCOUNT BALANCES...................................................................... 12 SECTION IV – ASSESSMENT ROLL ..................................................13 SECTION V – DISTRICT DIAGRAM ....................................................15 245 of 293
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2 INTRODUCTION
The City of Pinole (the “City”), under the provisions of the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the “1972 Act”) and the provisions of the California Constitution Article XIII D (the “Constitution”), annually levies and collects special assessments from the City’s maintenance assessment district designated as:

Pinole Valley Road Landscape and Lighting Assessment District (the “District”) to provide and maintain various landscaping and lighting improvements throughout the City that provide special benefits to properties within the City.

The City Council formed the District and provided for the levy and collection of annual assessments on the County tax rolls to provide ongoing funding for costs and expenses required to service and maintain the landscaping and lighting improvements within the boundaries of the District. The improvements to be provided by the District and assessments described herein are made pursuant to the 1972 Act and the substantive and procedural provision of the Constitution.

As part of the District formation, the City of Pinole conducted a Property Owner Protest Ballot proceeding for the proposed levy of a new assessment pursuant to the provisions of the Constitution. In conjunction with this ballot proceeding, the City council conducted a noticed public hearing to consider public testimonies, comments, and written protests regarding the formation of the District and levy of assessments. Upon conclusion of the public hearing, property owner assessment ballots received were opened and tabulated.

The property owner assessment ballot tabulation resulted in a majority approval of the District and assessments of the property owners within the District. The District was formed on July 1, 2008 by Resolution no. 2008-91. The District is located on Pinole Valley Road and consists of two separate zones: Zone A and Zone B.

This Engineer’s Report (the “Report”) has been prepared pursuant to Chapter 1, Article 4 and Chapter 3 of the 1972 Act, and outlines the improvements, and proposed assessments to be levied in connection with the benefits the properties will receive from maintenance and servicing of landscaping improvements within the District for fiscal year 2023-24.

The word “parcel,” for the purposes of this Report, refers to an individual property assigned its own Assessor’s Parcel Number (“APN”) by the Contra Costa County Assessor’s Office. The Contra County Auditor/Controller APN and specific fund numbers to identify properties to be assessed on the tax roll for the District assessments. 246 of 293
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3 This Report consists of five sections and identifies the following items:
• Plans and Specifications – The location of the District and the specific improvements to be maintained.
• Method of Apportionment – How the District costs are allocated and apportioned to the assessable parcels.
• Zone Budgets – The District costs and proposed assessments to be levied for 2023/24 for each Zone based upon the special benefit received. • District Diagram – A diagram showing the District and Zone boundaries. • Assessment Roll – A listing of properties to be assessed by APN, Zone, and corresponding assessment amounts.

ASSESSMENT SUMMARY FY 2023-24
Total
Assessable
Costs
Total
Assessable
Units
Proposed
Assessment
Rate per AU
Maximum
Assessment
Rate per AU
Zone A $28,290.24 52.796 $535.84 $636.92
Zone B $29,390.10 49.900 $582.97 $601.28
Actual assessments are rounded down to the nearest even penny for county tax roll purposes.

SECTION I – PLANS AND SPECIFICATIONS

DESCRIPTION OF THE DISTRICT AND BOUNDARIES
The District consists of two separate zones and is located on Pinole Valley Road, between Henry Avenue and Ramona Street. Zone A is to the north of Interstate I-80 and Zone B is to the south of Interstate I-80. Currently, there are a total of 18 commercial parcels within the District, 8 in Zone A and 10 in Zone B. The number of parcels in Zone A was reduced from 8 to 6 and Zone B was reduced from 16 to 15 parcels, due to parcel mergers effective for the 2011/2012 tax year. An annexation also occurred in Zone A for tax year, 2013/2014, increasing the parcel count for that Zone to 7 and the AU to 52.972. For tax year 2018/2019, one parcel was split into two with a slight size reduction, decreasing the AU to 52.796. The number of parcels in Zone B was reduced from 15 to 10 due to parcel mergers/changes effective for the 2013/2014 and 2014/2015 tax years. A clerical error was brought to the City’s attention in December 2019 which has been transcribed over time and resulted in a higher AU in Zone B. In FY 2020-21, the clerical error was corrected resulting in a lower AU in Zone B.

Please refer to the Section V of this Report, Assessment Roll, for details. 247 of 293
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4 IMPROVEMENTS AND SERVICES PROVIDED
Improvements within the District which are maintained and serviced may include but are not limited to: turf, shrubs, plants and trees, landscaping, street lighting, traffic signals, irrigation and drainage systems, graffiti removal, litter abatement, sidewalks, landscape lighting, masonry walls and associated appurtenances within the public right-of-way or specific easements.

The maintenance of District improvements generally include, but are not limited to, all materials, equipment, utilities, labor and incidental expenses, including administrative expenses, for the annual operation of the District and maintenance of the improvements.

Also included is the performance of occasional repairs and the removal or replacement of improvements, as needed.

The specific improvements being maintained and serviced within each Zone of the District are defined on the following page:

Zone A Improvements (Northerly of I-80 Freeway)
• Landscaping totaling 16,920 square feet.
• Irrigation system for landscaping and two irrigation controllers. • Maintenance of seven street light poles and fourteen street lights. • Maintenance of two and a half traffic signals.
• Electrical power for street lights, traffic signals and irrigation system. • Weed control and abatement.
• Graffiti abatement.
• Median repairs and contingency for damage.
• Litter abatement and collection (2,102 linear feet).

Zone B Improvements (Southerly of I-80 Freeway)
• Landscaping totaling 18,486 square feet.
• Irrigation system for landscaping and two irrigation controllers. • Maintenance of ten street light poles and twenty street lights. • Maintenance of one and a half traffic signals.
• Electrical power for street lights, traffic signals and irrigation system. • Weed control and abatement.
• Graffiti abatement.
• Median repairs and contingency for damage.
• Litter abatement and collection (2,859.58 linear feet).

Reference is made to the plans and specifications for the improvements which are on file with the City and are incorporated herein by reference. 248 of 293
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5 SECTION II – METHOD OF APPORTIONMENT
The 1972 Act allows for the establishment of assessment districts by public agencies for the purpose of providing certain public improvements as detailed in Section I of this Report. The 1972 Act also requires that the cost of these improvements and services be assessed based on benefit received rather than by assessed value of the properties being assessed. In accordance with the 1972 Act, Section 22573:
“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 assessable lots or parcels in proportion to the estimated benefits received by each such lot or parcel from the improvements”
The method of apportionment described in this Report, and confirmed by the City Council, utilizes commonly accepted engineering practices which have been established pursuant to the 1972 Act and the California Constitution for the allocation of special benefit assessments. The calculation of assessments is based upon the parcel type and the services and improvements provided. The special benefit received by each lot or parcel is over and above any general benefit conferred upon said lots or parcels or to the public at large.

DESCRIPTION OF BENEFIT
Special Benefit
The improvements and associated costs have been allocated to the assessable properties within the District based upon the special benefit received by those properties, pursuant to the provisions of the 1972 Act. The improvements for which the properties will be assessed have been identified as necessary, were approved by the property owners within the District through a Proposition 218 assessment ballot procedure and are in compliance with the development plans and General Plan of the City. As such, the improvements and continuing maintenance and servicing are strictly the obligation of the properties within the District.

General Benefit
Although the improvements may be visible to passersby or to the public at large, the improvements were installed after approval from the property owners and are for the benefit of properties within the District. It has been determined therefore, any access to or use by properties or individuals outside the District is completely incidental and the costs of operating, maintaining and servicing said improvements provides no measurable benefit to said outside properties or individuals.
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6 Definition of Special Benefit
The method of apportionment described in this Report is based on the premise that each assessable parcel or unit receives distinct and special benefits from the improvements and services provided, including the visual desirability provided by well maintained landscaping. In accordance with Article XIII D, Section 4 of the California Constitution:
“Special benefit means a particular and distinct benefit over and above general benefits conferred on real property located in the District or the public at large” The special benefits associated with local landscape and lighting improvements are specifically:
• Enhanced desirability of properties due to proximity of the improvements. • Improved aesthetic appeal provided by a positive representation of the community. • Improved ingress and egress to property resulting in enhanced traffic flow, reduced traffic accidents and consequent reduction in possible property damage. • Improved traffic visibility and circulation.
• Improved accessibility for emergency vehicles.
• Reduced vandalism and other criminal activity.
• Enhanced environmental quality provided by adequate green space and other landscaping which helps moderate temperatures, reduce noise pollution and control dust and debris.

ASSESSMENT RANGE FORMULA
It is generally recognized that most budgetary items will be impacted by inflation in future years. In accordance with the California Constitution, and Government Section 53739 (b) (1), assessments “may be adjusted for inflation pursuant to a clearly defined formula…” A formula for an inflationary adjustment is therefore included as part of the maximum assessment for this District and was approved by the property owner(s) at the time of formation. The formula, as described below, allows for annual adjustments to the budget and the assessments.

Generally, any new or increased assessment requires certain noticing and meeting requirements by law, the Government Code excludes certain conditions of a new or increased assessment. These conditions include:
“An assessment that does not exceed an assessment formula or range of assessments previously specified in the notice given to the public…and that was previously adopted by the agency…”
The initial maximum assessment for the District was established at the time of formation and was assessed for the first time during the 2008/2009 fiscal year. The initial maximum assessment for Zone A was $415.52 per Assessment Unit (“AU”). The initial maximum assessment for Zone B was $390.80 per AU. The initial maximum assessment for each 250 of 293
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7 Zone has been adjusted each subsequent fiscal year by the following Assessment Range Formula:
•The Maximum Assessment Rate allowed each fiscal year (the “Adjusted Maximum Assessment Rate”) shall be based on the initial maximum assessment established in fiscal year 2008/2009, adjusted annually by the Bureau of Labor Statistics, Consumer Price Index for the month of April, All Urban Consumers, (“CPI”) for the San Francisco/Oakland/San Jose area or two percent (2%), whichever is greater. Should the Bureau of Labor Statistics revise or discontinue the preparation of such index, the City reserves the right to use such revised index or a comparable system to determine fluctuations in the annual cost of living. •Each fiscal year, the greater of CPI or 2% shall be applied to the Maximum Assessment Rate established the previous fiscal year to calculate the appropriate Adjusted Maximum Assessment Rate for the then current fiscal year. • If the proposed annual assessment rate (assessment per AU) for the upcoming fiscal year is less than or equal to the Adjusted Maximum Assessment Rate established for that fiscal year then the proposed annual assessment is not considered an increased assessment.

Beginning in the second fiscal year after the formation of the District (2009/2010) and each fiscal year since, the Maximum Assessment Rate has been recalculated and a new Adjusted Maximum Assessment Rate has been established for each fiscal year using the Assessment Range Formula described above. Each fiscal year, the greater of CPI or 2% is applied to the Maximum Assessment Rate from last year. The April 2023 CPI is 4.2%, therefore a 4.2% will be applied to the Maximum Assessment Rate from the last year.

The Zone A Maximum Assessment Rate for the upcoming fiscal year (2023/2024) therefore, shall be $636.92 per AU. The Zone B Maximum Assessment Rate for the upcoming fiscal year shall be $601.28 per AU. The table below shows the Adjusted Maximum Assessment Rate for each Zone, for each fiscal year since the formation of the District. The Adjusted Maximum Assessment Rates have been calculated independently of the annual budget and proposed assessment rate for the given fiscal year. As stated above, if the proposed annual assessment for any fiscal year does not exceed the Adjusted Maximum Assessment Rate for that year, it is not considered to be an increased assessment under the terms of Proposition 218 or the Government Code.

Zone A LLAD Assessment/CPI History
Fiscal Year
April
CPI
Allowable
Increase
Actual
April CPI
Calculation
Adjusted
Max.

Assessment
per AU
Actual
Assessment
per AU
2008/2009 N/A N/A N/A $415.52 $415.82
2009/2010 0.80% 2.00% 1.020000000 $423.83 $415.82
2010/2011 1.71% 2.00% 1.020000000 $432.31 $415.82
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8 2011/2012 2.82% 2.82% 1.028212932 $444.51 $394.80
2012/2013 2.07% 2.07% 1.020775582 $453.74 $394.80
2013/2014 2.38% 2.38% 1.023809026 $464.54 $377.74
2014/2015 2.78% 2.78% 1.027873710 $477.49 $377.74
2015/2016 2.43% 2.43% 1.024362313 $489.12 $377.74
2016/2017 2.70% 2.70% 1.026950338 $502.30 $377.74
2017/2018 3.78% 3.78% 1.037888610 $521.34 $377.74
2018/2019 3.20% 3.20% 1.032 $538.02 $396.32
2019/2020 4.0% 4.0% 1.040 $559.54 $409.69
2020/2021 1.1% 2.0% 1.020 $570.73 $422.04
2021/2022 3.8% 2.0% 1.020 $582.14 $474.90
2022/2023 5.0% 5.0% 1.050 $611.25 $498.65
2023/2024 4.2% 4.2% 1.042 $636.92 $535.84
Zone B LLAD Assessment/CPI History
Fiscal Year
April
CPI
Allowable
Increase
Actual April
CPI
Calculation
Adjusted
Max.

Assessment
per AU
Actual
Assessment
per AU
2008/2009 N/A N/A N/A $390.80 $390.80
2009/2010 0.80% 2.00% 1.020000000 $398.62 $390.80
2010/2011 1.71% 2.00% 1.020000000 $406.59 $390.80
2011/2012 2.82% 2.82% 1.028212932 $418.06 $342.04
2012/2013 2.07% 2.07% 1.020775582 $426.75 $342.04
2013/2014 2.38% 2.38% 1.023809026 $436.91 $342.04
2014/2015 2.78% 2.78% 1.027873710 $449.09 $342.04
2015/2016 2.43% 2.43% 1.024362313 $460.03 $342.04
2016/2017 2.70% 2.70% 1.026950338 $472.43 $342.04
2017/2018 3.78% 3.78% 1.037888610 $490.32 $348.06
2018/2019 3.20% 3.20% 1.032 $506.01 $359.06
2019/2020 4.0% 4.0% 1.040 $526.25 $392.64
2020/2021 1.1% 2.0% 1.020 $538.78 $405.68
2021/2022 3.8% 2.0% 1.020 $549.56 $494.89
2022/2023 5.0% 5.0% 1.050 $577.04 $519.63
2023/2024 4.2% 4.2% 1.042 $601.28 $582.97
To impose a new assessment or an increased assessment in excess of the Maximum Assessment Rate for the current fiscal year, as provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution, Article XIII D, Section 4c that requires a public hearing and certain protest procedures including mailed notice of a public hearing and property owner protest balloting. Property owners must approve the proposed new or increased assessment via a property owner protest ballot process before any such new or increased assessment can be imposed. 252 of 293
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9 The definition of new or increased assessments includes any assessment which, 1) did not previously exist or, 2) exceeds a previously approved assessment amount or assessment range formula. Any assessment range formula must have been previously adopted by the agency and approved by the property owners.

ASSESSMENT METHODOLOGY
The benefit formula used to determine the financial obligation for each parcel is based on the improvements benefitting the parcels, as well as the use, or type, of each parcel as compared to other parcels that benefit from said improvements. One of the more common approaches to fairly distributing District costs to the benefitting parcels in maintenance districts such as this utilizes a methodology referred to as the Assessment Unit (“AU”) method of apportionment. This methodology utilizes various property characteristics such as development status, type of development (land-use) and size (units or acreage) to compare the proportional benefit of each property compared to similar properties benefitting from the improvements.

The District is comprised of one parcel type; commercial. Each commercial parcel receives similar benefit from the improvements due to the relative size of the properties, the specific improvements and proximity of the improvements to the properties. It has been determined that the buildable acreage of each parcel is an appropriate basis in calculating the total AU for that parcel. The individual commercial parcel, acreage is multiplied by a factor of 4.00 to determine the total AU for that parcel. The total Zone AU is then divided into the “Total Balance to Assessment” (as shown in Section III of this Report) to determine the annual assessment rate. The AU for each parcel is then multiplied by the annual assessment rate to determine the annual assessment for each parcel.

SECTION III – ZONE BUDGETS
The estimated budget for the annual maintenance and servicing of the improvements and the proportionate share of administration costs for each Zone have been prepared based on the estimated and recent historical costs of providing said maintenance and servicing.

ZONE A – PINOLE VALLEY ROAD NORTH FY 2023-24 BUDGET

DIRECT COSTS

ACCOUNT NAME BUDGET
310-347-42101 Professional Services $11,000.00
Contra Costa County Public Works Traffic Signal
Maintenance $7,000
Caltrans Traffic Signal Maintenance $3,000
Pacific Site Management $1,000
310-347-42108 Building-Structure Maintenance $1,000.00
Labor, material, and equipment required to properly
maintain the landscaping improvements, traffic
signals, streetlights, poles, and irrigation system
$1,000
310-347-43102 Water $4,000.00
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10 EBMUD $4,000
310-347-43103 Electricity and Power $5,000.00
Pinole Valley Rd. Traffic Control – PG&E $1,300
Street and Highway Lighting – PG&E $3,700
Capital Replacement Account1 $3,900.00
Direct Costs Sub-Total $24,900.00

INDIRECT COSTS
310-347-42126 Legal Charges $1,050.00
310-347-42102 County Administration Fees $140.00
310-347-46122 Admin Debits $2,200.00
City Administration $1,100.00
Engineer’s Report $1,100.00
Indirect Costs Sub-Total $3,390.00
TOTAL COSTS $28,290.00
TOTAL BALANCE TO ASSESSMENT $28,290.00
Total Assessable AU (8 parcels) 52.796
2023/2024 PROPOSED ASSESSMENT PER AU $535.84
2023/2024 MAXIMUM ASSESSMENT PER AU $636.92
ZONE B – PINOLE VALLEY ROAD SOUTH FY 2023-24 BUDGET

DIRECT COSTS

ACCOUNT NAME BUDGET
310-348-42101 Professional Services $11,000.00
Contra Costa County Public Works Traffic Signal
Maintenance $7,000.00
Caltrans Traffic Signal Maintenance $3,000.00
Pacific Site Management $1,000.00
310-348-42108 Building-Structure Maintenance $1,000.00
Labor, material, and equipment required to properly
maintain the landscaping improvements, traffic
signals, streetlights, poles, and irrigation system
$1,000.00
310-348-43102 Water $4,000.00
EBMUD $4,000.00
310-348-43103 Electricity and Power $5,300.00
Pinole Valley Road Median Irrigation – PG&E $150.00
Street and Highway Lighting – PG&E $5,150.00
Capital Replacement Account1 $4,700.00
Direct Costs Sub-Total $26,000.00

INDIRECT COSTS
310-348-42126 Legal Charges $1,050.00
310-348-42102 County Administration Fees $140.00
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11 310-348-46122 Admin Debits $2,200.00
City Administration $1,100.00
Engineer’s Report $1,100.00
Indirect Costs Sub-Total $3,390.00
TOTAL COSTS $29,390.00
TOTAL BALANCE TO ASSESSMENT $29,390.00
Total Assessable AU (10 parcels) 49.900
2023/2024 PROPOSED ASSESSMENT PER AU $588.98
2023/2024 MAXIMUM ASSESSMENT PER AU $601.28
1 Capital Replacement Account (CRA) – This line item, shown on the budget page for each Zone, is specifically intended for the use in replacing the lighting poles for streetlights and traffic signals within the District. There are two reasons to consider the replacement of lighting poles. First, there is a finite life span of a standard lighting pole, which is approximately 50 years. Secondly, there must be a contingency plan in place for the possibility that a lighting pole gets damaged or knocked down, either by way of accident or by natural disaster. The current replacement cost of a lighting pole is estimated at $12,700.00 for materials and $3,300.00 for installation.

The estimated cost to replace all streetlight poles after 50 years, as well as a contingency to account for the possibility of a knockdown, accident, or natural disaster is shown below:

Zone Cost per
Pole
Number
of Poles
Estimated Life
Span (Years)
Knockdown
Contingency
($50 per pole)
Estimated
Annual
Cost
A $16,000.00 10 50 $500 $3,900.00*
B $16,000.00 12 50 $600 $4,700.00*
$16,000.00 per light pole x 22 poles = $352,000 / 50 years = $7040 + $1,560 for Contingency = $8,600 annually. * Rounded to the nearest $100’s.

The replacement cost of a lighting pole was increased from $15,000 to $16,000. This estimate is based on the amount paid for the most recent streetlight pole replacement quotes obtained in FY 2022-23. The costs will continue to be collected through the assessment amounts as part of the Capital Replacement Fund, as shown in the District Budgets.

DESCRIPTION OF BUDGET ITEMS
➢ Building-Structure-Maintenance – Includes all regularly scheduled labor, material, and equipment required to properly maintain the landscaping improvements, traffic signals, streetlights, poles, and irrigation system. Also includes the cost of:
o Traffic signal maintenance which is provided by California Department of Transportation (Caltrans) and Contra Costa County Public Works. o Landscaping maintenance services provided by Pacific Site Management. 255 of 293
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12 o Replacement bulbs for traffic signals and streetlights. o Weed control and graffiti abatement within the District. ➢ Water – Includes the cost of furnishing water required for the proper maintenance of the landscaping.
➢ Electricity and Power – Includes the cost of furnishing electrical energy required for the proper operation of traffic signals, streetlights, and irrigation system. ➢ Legal Charges – Includes the cost of legal services to review reports, resolutions, and public hearing requirements for imposing the LLAD Assessment. ➢ County Administration Fees – Includes the County costs related to placement of the annual assessment charges onto the tax roll and the generation of the annual tax bills related thereto. Contra Costa County charges a Levy Code Fee of $250 per district, $0.76 Collection Fee per parcel, and $0.09 Assessor User Code Fee per parcel. Each Zone is charged $125 plus $0.85 per parcel. ➢ Admin Debits – Includes the cost of all particular departments and staff of the City for providing coordination of annual District administration process, operation, and maintenance of the improvements and responding to public concerns. This line item also includes the cost of preparing the Engineer’s report for the administration of the District and transmitting assessment amounts to the County for the inclusion on the tax roll.

ACCOUNT BALANCES
DISTRICT FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Fund balance
on July 1st $15,027.87 $24,203.51 $30,613.24 $32,187.78 $35,952.50 Revenue $39,797.64 $41,854.22 $39,746.28 $57,364.10 $49,767.90 Expenditures $30,622.00 $35,444.29 $38,171.74 $53,599.38 $42,610.54 Revenue
over/under
expenses
$9,175.64 $6,409.73 $1,574.54 $3,764.72 $7157.36
Fund balance
on June 30th $24,203.51 $30,613.24 $32,187.78 $35,952.50 $43,109.86 Based on the historical data in the table above, the average expenditures for the District are $40,089.59. The 1972 Act allows the District assessments to”…include a reserve which shall not exceed the estimated costs of maintenance and servicing to December 10 of the fiscal year, or whenever the city expects to receive its apportionment of special assessments and tax collections from the county, whichever is later.” The Reserve Fund will be considered fully funded when the account balance reaches an amount equal to approximately 50% of the annual District costs.
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13 CRA allocations were based on the percentage of poles in each Zone; approximately

45.5% of the poles in the District are in Zone A, and approximately 54.5% are in Zone B.

The methodology noted above will be applied each fiscal year to allocate appropriate amounts to the Reserve Fund and CRA.

If a lighting pole is damaged or knocked down by an accident, attempts are made to recover the replacement cost through the responsible party. The recovered funds are placed in the CRA for the Zone where the knockdown reoccurred. A summary of the Capital Replacement Reserve account for each Zone is shown in the table below.

Zone Capital
Replacement
account
balance as of
07/01/2022
FY 2022-23
Contribution
to Capital
Replacement
account
Estimated
lighting
pole
recovery
costs for
FY 2022-23
Estimated
lighting pole
repair and
replacement
costs in FY
2022-23
Estimated
ending Capital
Replacement
account
balance on
06/30/2023.

A $13,937.41 $2,600.00 - - $16,537.41
B $2,527.72 $3,120.00 - - $5,647.72
*Includes the purchase of a surplus pole for future knockdowns SECTION IV – ASSESSMENT ROLL
Parcel Identification for each lot or parcel within the District shall be based on available parcel maps and other property data from the Contra Costa County Assessor’s office as they existed at the time this Report was prepared and adopted by the City Council.

A listing of parcels assessed within the District for Fiscal Year 2023/2024, along with the corresponding assessment amounts, is included on the following pages. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel(s) shall be based on the method of apportionment and assessment rate approved in this Report.

Therefore, if a single parcel has changed to multiple parcels, the assessment amounts applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.

Non-assessable lots or parcels include areas of public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas and rights-of-way, including public greenbelts and parkways; utility rights-of-way; 257 of 293
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14 common areas; landlocked parcels; small parcels vacated by the County, bifurcated lots and any other property that cannot be developed or has specific development restrictions.

These types of parcels are considered to receive little or no benefit from the improvements and are therefore, exempted from assessment. Zone
APN
Parcel
Acreage
Parcel
Type
Parcel
AU
2023/2024
Assessment
per AU
2023/2024
Assessment
Applied
Assessment
A 401-211-030 3.62 COM 14.48 $535.84 $7,758.96 $7,758.96 A 401-211-031 1.27 COM 5.08 $535.84 $2,722.07 $2,722.08 A 401-211-032 0.42 COM 1.68 $535.84 $900.21 $900.20
A 401-211-033 0.6 CMV 2.40 $535.84 $1,286.02 $1,286.02
A 401-211-035 0.573 COM 2.292 $535.84 $1,228.15 $1,228.16 A 401-410-005 2.23 COM 8.92 $535.84 $4,779.69 $4,779.70 A 401-410-019 2.006 COM 8.024 $535.84 $4,299.58 $4,299.58 A 401-410-020 2.48 COM 9.92 $535.84 $5,315.53 $5,315.54

13.199 52.796 $28,290.21 $28,290.24
B 360-010-028 0.344 COM 1.376 $588.98 $810.44 $810.44
B 360-010-029 1.738 COM 6.952 $588.98 $4,094.59 $4,094.60 B 360-010-030 0.53 COM 2.12 $588.98 $1,248.64 $1,248.64 B 360-010-031 0.63 COM 2.52 $588.98 $1,484.23 $1,484.22 B 360-010-033 0.43 COM 1.72 $588.98 $1,013.05 $1,013.04 B 360-150-043 1.24 COM 4.96 $588.98 $2,921.34 $2,921.34 B 360-150-044 0.48 COM 1.92 $588.98 $1,130.84 $1,130.84 B 401-310-021 5.683 COM 22.732 $588.98 $13,388.69 $13,388.70 B 401-310-022 0.46 COM 1.84 $588.98 $1,083.72 $1,083.72 B 430-330-027 0.94 COM 3.76 $588.98 $2,214.56 $2,214.56

12.475 49.900 $29,390.10 $29,390.10
Totals: 25.674 102.696 $57,680.31 $57,680.26
Parcel Type: “COM” is a developed commercial property
“CMV” is an undeveloped commercial property
Zone A – APN 401-410-017 was merged from three former parcels (APN’s 401-410-014, 401- 410-015 & 401-410-016), and became active and assessable for Fiscal Year 2011/2012.

APN 401-211-34 was annexed into the District for the 2013/2014 year. APN 401-410-017 was split into 401-410-019 and 020 for Fiscal Year 2018/2019.

Zone B – APN’s 401-310-010 and 401-310-013 were merged into APN 401-310-019. This parcel became active and assessable for Fiscal Year 2011/2012. APN’s 401-310-002; 003; 012; 017; 018 & 019 were merged into APN 401-310-021 for Fiscal Year 2013/2014. APN 401-310- 258 of 293
Pinole Valley LLAD
Engineer’s Report FY 2023-24
15 018 became parcel 022 for Fiscal Year 2013/2014. APN 430-330-022 merged into APN 401-310- 021 for Fiscal Year 2014/2015.

SECTION V – DISTRICT DIAGRAM
The following page(s) show the Assessment Diagrams for The Pinole Valley Road Landscape and Lighting Assessment District. The lines and dimensions shown on maps of the Contra Costa County Assessor for the current year are incorporated by reference herein and made part of this Report.
259 of 293
- -
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Engineer's Report FY 2021·22

REVISED ASSESSMENT DIAGRAM

PINOLE VALLEY ROAD LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT ZONE A

CITY OF PINOLE

COUNTY OF CONTRA COSTA
/

STATE OF CALIFORNIA

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF PINOLE, THIS DAY OF , 20_.

CITY CLERK

CITY OF PINOLE

CONTRA COSTA COUNTY, CALIFORNIA

IHEREBYCERTIFYTHATTHEWITHINMAPSHOWINGTHEREVISEDASSESSMENTDIAGRAMFORTHEPINOLE

VALLEY ROAD LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT,CITY OFPINOLE,COUNTY OF CONTRA

COSTA, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF PINOLE

ATAREGULAR MEETING THEREOF,HELDONTHE
RESOLUTION NO.

DAY OF , 20 , BY ITS
-

CITY CLERK

CITY OF PINOLE

CONTRA COSTA COUNTY, CALIFORNIA
FILEDTHIS DAY OF -- -•20 .ATTHEHOUR OF O'CLOCK M.,

IN BOOK AT PAGE -OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS IN

THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA

COUNTY RECORDER

COUNTY OF CONTRA COSTA
NOTE: FOR ADETAILED DESCRIPTION OF THELINES AND DIMENSIONS OFEACH PARCEL WITHIN THEDISTRICT,REFERTOTHE2006COUNTYOFCONTRACOSTAASSESSOR'S MAPS. \
/
/
\

ASSESSMENT ID
l
100 50 0 100
SCALE: 1 " =1 00 '

GRAPHI C SCALE
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CD

EXISTING ZONE A BOUNDARY

PARCEL LINES
ASSESSMENT NO.

SPECIAL DISTRICT SERVICES
P.O. Box 89 27 27
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Assessment Number APN ZONE
1 401-410-005 A
2 401-410-017 A
3 401-211-030 A
4 401-211-031 A
5 401-211-032 A
6 401-211-033 A
7 401-211-034 A
260 of 293
COUN
ST
t
il
Pinole Valley LLAD
Engineer's Report FY 2021-22
ASSESSMENT rnAGRAM

PINOLE VALLEY LANDSCAPE AND LIGHTING ASSESSMENT DISTIRCT ZONE B

CITY OF PINOLE

TY OF CONTRA COST A

ATE OF CALIFORNIA
SHEET 2 OF 2

ASSESSMENT ID
Assessment
Number APN ZONE
9 360-150-043 B
10 360-150-044 B
11 360-010-028 B
12 .)60-010-029 l:j
13 360-010-030 B
14 .)60-u1Q-u.>1 B
15 360-010-033 B
16 401 ·310 '" ,, B
17 401-310-003 B
18 401-310-010 B
19 401-.)10-012 B
20 401-.)10-013 B
21 401-.)10-017 B
22 401-.)10-018 B
23 430-330-022 B
24 430-3.)0-027 B
200 100 0 200 L...J--1 I
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261 of 293
17 CITY COUNCIL
REPORT
DATE: JULY 18, 2023
TO: MAYOR AND COUNCIL MEMBERS
FROM: MARKISHA GUILLORY, FINANCE DIRECTOR
SUBJECT: REVIEW OF THE CITY’S REQUIRED CONTRIBUTIONS TO PENSION AND THE LIFESPAN OF THE SECTION 115 TRUST FUND

RECOMMENDATION
Staff recommends that the City Council receive a report on the City’s annual required contributions to the California Public Employees’ Retirement System (CalPERS), through which the City provides employees with a defined benefit pension, and the estimated lifespan of the City’s Section 115 Trust Fund.

BACKGROUND
The City engaged the consulting firm Foster & Foster (formerly Bartel Associates) to analyze the City’s forecasted annual required contributions to the California Public Employees’ Retirement System (CalPERS). The analysis entailed a review of the City’s estimated unfunded actuarial accrued liability; CalPERS future expected investment returns; expected future required contributions; and use of the City’s Section 115 Trust Fund for rate stabilization.

In 2018, the City Council adopted Resolution No. 2018-52 approving the Public Agencies Post-Employment Benefits Trust Agreement, thereby establishing the City’s Section 115 Trust Fund. The City initially deposited $16,287,510 into the fund, using proceeds that the City received from the sale of a City-owned property – Pinole Assisted Living Community (PALC). In addition, the fund balance has grown due to interest earnings from investing the funds. The Trust Fund is managed by Public Agency Retirement Services (PARS).

The City, like many other municipal agencies, established the Section 115 Trust Fund to set aside funds to offset anticipated significant increases in future City pension costs. Specifically, the Council intended to withdraw funds from the Section 115 Trust Fund each fiscal year to cover the increase between the City’s contribution toward employee pensions in Fiscal Year (FY) 2018/19, the baseline year, and the City’s required contribution in future years.
12A
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City Council Report
July 18, 2023 2
On July 19, 2022, the City Council received a report from staff providing an update on the formula that the City uses to determine the amount of funds to be withdrawn from the Trust, to ensure that the funds are being used consistent with the intended purpose.

The purpose of this agenda item is to provide the City Council with an updated analysis of the City’s annual required contributions to CalPERS and the estimated lifespan of the Section 115 Trust Fund.

REVIEW AND ANALYSIS
Annual Required Contributions to Pension
Over the past decade, the California Public Employees Retirement System (CalPERS), through which the City provides employees with a pension, has instituted a number of changes to strengthen the system’s financial strength. This has resulted in significant increases in the contributions that public agencies that participate in CalPERS must make to CalPERS.

The City engaged the consulting firm, Foster & Foster (formerly Bartel Associates) to analyze the City’s annual required contribution to CalPERS. The analysis entailed a review of the City’s estimated unfunded actuarial accrued liability; CalPERS future expected investment returns; expected future required contributions; and use of the City’s Section 115 Trust Fund for rate stabilization. Forecasts and assumptions are based on the current CalPERS actuarial valuation reports as of June 30, 2021 for safety and miscellaneous plans.

Following are some key items that were factored into the forecast which explain the increase in the City contribution beginning in FY 2024/25. • The unfunded liability is expected to increase in the next actuarial valuation due to:
o The estimated impact of the -7.5% investment return during FY 2021/22. o CalPERS’ investment portfolio increased approximately 5% during the past year, lower than expected 6.8% discount rate (the present value of future cash flow).
• Future investment returns are expected to be more volatile due to CalPERS changing how it allocates funds to the various types of investments.

Table 1 below illustrate the City’s actual (FY 2017/18 - FY 2021/22) and forecasted (FY 2022/23 – FY 2049/50) required annual contribution, net of employees’ cost-share of the City (employer) contribution. The City’s total contribution includes two components—the normal cost defined as the annual cost of service accumulated for the upcoming fiscal year for active employees and the Unfunded Actuarial Liability (UAL) defined as the difference between future benefits the pension fund is expected to pay out and the assets presently in the pension fund. 263 of 293
City Council Report
July 18, 2023 3
Employees are required to make standard contributions to pension. In addition to the standard contributions required by CalPERS, Pinole employees, through cost-sharing agreements in labor memorandums of understanding (MOUs) between the City and its employee unions, also contribute an additional percentage to the City (employer) contribution.

The projected June 30, 2022 unfunded liability is approximately $43.5 million for the combined miscellaneous and safety plans. While contributions that CalPERS will require from the City in the future are expected to pay off this UAL, it will likely mean increasing contributions over approximately the next 12 years, through FY 2034/35, going from approximately 41% to 58% of projected payroll. Contribution rates are expected to gradually decrease in FY 2035/36 through FY 2049/50, going from 55% to 12% of projected payroll.

Table 1 – City Annual Required Contribution to CalPERS Forecast 0%
10%
20%
30%
40%
50%
60%
70%
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
2017-182018-192019-202020-212021-222022-232023-242024-252025-262026-272027-282028-292029-302030-312031-322032-332033-342034-352035-362036-372037-382038-392039-402040-412041-422042-432043-442044-452045-462046-472047-482048-492049-50 City Annual Contribution Net of Employee Cost-Share Contribution City Annual Contribution Percentage of Payroll
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July 18, 2023 4
Total Pension Costs
The City’s total pension costs consist of the annual required contribution to CalPERS (described above), net of the employee cost-share, and the debt service payment on the pension obligations bonds. The bonds were issued in 2006 and the proceeds were used to finance the City’s unfunded accrued actuarial liability with CalPERS. The total principal and interest outstanding as of June 30, 2023 is $9,730,000. The debt will be fully paid in 2036.

The City pays pension costs from the various City funds with 75% paid from the General Fund and 25% paid from Non-General Funds. Increases in the General Fund pension costs related to the annual required contribution are offset by a transfer from the Section 115 Trust Fund.

Table 2 below shows the City’s forecasted total pension costs through FY 2049/50.

As shown in the table, the City’s annual required contribution is expected to increase in FY 2024/25 through FY 2034/35 before rates are forecasted to gradually decline from FY 2035/36 through FY 2049/50. Adding to the reduction in costs in future years is the retirement of the pension obligation bonds in 2036.

Table 3 below compares total pension costs forecasts prepared in 2018 and 2023. It is for illustrative purposes to show what the City expected to pay toward future pension costs compared to current pension costs. The increases in the City’s annual required contribution are mainly attributable to the growth in the unfunded liability. At the time the City established the Trust Fund in 2018, the unfunded liability was approximately $30,200,000. It is projected to be $43,500,000 for 2023. The higher annual required contributions have resulted in higher amounts withdrawn from the Trust Fund to cover those increases. The forecasted lifespan of the Trust Fund is described in the following section.
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City Council Report
July 18, 2023 5
Table 2 – City Total Pension Costs Forecast
Fiscal Year
City Annual
Contribution
Net of
Employee
Cost-Share
Pension
Obligation
Bond Debt
Service
Total
Pension
Costs
Transfer from
Section 115
Trust Fund To
The General
Fund
City Net Annual
Contribution
After Transfer
from Section 115
Trust
City Annual
Contribution
Percentage
of Payroll
2017-18 1,960,149 $ $ 572,923 $ 2,533,072 $ - $ 2,533,072 24% 2018-19 2,206,611 523,631 2,730,242 - 2,730,242 29%
2019-20 3,128,242 536,120 3,664,363 - 3,664,363 40%
2020-21 3,389,076 558,607 3,947,683 (1,352,111) 2,595,572 40% 2021-22 4,059,258 608,736 4,667,994 (1,061,736) 3,606,258 45% 2022-23 4,214,000 598,545 4,812,545 (2,016,612) 2,795,933 44% 2023-24 4,245,000 611,107 4,856,107 (2,245,480) 2,610,627 41% 2024-25 4,632,000 636,100 5,268,100 (2,425,118) 2,842,982 44% 2025-26 4,963,000 651,100 5,614,100 (2,522,123) 3,091,977 46% 2026-27 5,352,000 721,100 6,073,100 (2,597,787) 3,475,313 48% 2027-28 5,721,000 721,100 6,442,100 (2,675,720) 3,766,380 50% 2028-29 6,390,000 721,100 7,111,100 (2,755,992) 4,355,108 54% 2029-30 6,744,000 721,100 7,465,100 (2,838,672) 4,626,428 55% 2030-31 6,906,000 721,100 7,627,100 - 7,627,100 55%
2031-32 7,284,000 848,100 8,132,100 - 8,132,100 56%
2032-33 7,534,000 848,100 8,382,100 - 8,382,100 56%
2033-34 7,834,000 848,100 8,682,100 - 8,682,100 57%
2034-35 8,226,694 848,100 9,074,794 - 9,074,794 58%
2035-36 8,075,688 848,100 8,923,788 - 8,923,788 55%
2036-37 7,532,049 7,532,049 - 7,532,049 50%
2037-38 6,592,879 6,592,879 - 6,592,879 43%
2038-39 6,272,285 6,272,285 - 6,272,285 39%
2039-40 6,123,592 6,123,592 - 6,123,592 37%
2040-41 5,897,127 5,897,127 - 5,897,127 35%
2041-42 4,997,322 4,997,322 - 4,997,322 29%
2042-43 4,311,864 4,311,864 - 4,311,864 24%
2043-44 4,747,147 4,747,147 - 4,747,147 26%
2044-45 2,373,924 2,373,924 - 2,373,924 12%
2045-46 2,445,141 2,445,141 - 2,445,141 12%
2046-47 2,509,727 2,509,727 - 2,509,727 12%
2047-48 2,585,019 2,585,019 - 2,585,019 12%
2048-49 2,653,267 2,653,267 - 2,653,267 12%
2049-50 2,732,865 $ $ 2,732,865 $ - $ 2,732,865 12%
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July 18, 2023 6
Table 3 – Comparison of the 2018 and 2023 Total Pension Costs Forecasts Lifespan of the Section 115 Trust Fund
The City established its Section 115 Trust Fund in 2018 which was funded by onetime proceeds from the sale of property. The City initially deposited $16,287,510 into the fund, using proceeds that the City received from the sale of a City-owned property.

The fund balance has grown due to interest earnings from investing the funds. The Trust Fund is managed by Public Agency Retirement Services (PARS). The Trust Fund’s unaudited balance at June 30, 2023 is $16,442,515 (before the withdrawal for FY 2022/23).

The Trust Fund was established to offset increases in the City’s annual required contribution to CalPERS. The funds can only be used to transfer directly to CalPERS or to reimburse the City for contributions made to CalPERS. The City’s intended and consistent historical practice has been to withdraw funds from the Trust Fund in an amount equal to the difference between the City’s net required annual contribution for a given year and that from FY 2018/19, the baseline year. The City has consistently used the same methodology to determine the amount to withdraw and transfer into the General Fund.

Table 4 below illustrates actual and forecasted amounts the City will withdraw from the Trust Fund. Using the City’s current formula, the Trust Fund is estimated to be depleted in FY 2029/30. After Trust Fund is exhausted, the City will need to fund the full amount of the annual required contribution. The amount the City will need to make up is approximately $3,000,000 beginning in FY 2030/31 with $2,250,000 (75%) to be paid by the General Fund and $750,000 (25%) to be paid by Non-General Funds.

Fiscal Year
City Annual
Contribution
Net of
Employee
Cost-Share
Pension
Obligation
Bond Debt
Service
Total Pension
Costs
City Annual
Contribution
Net of
Employee
Cost-Share
Pension
Obligation
Bond Debt
Service
Total Pension
Costs
2017-18 1,845,000 $ $ 505,000 $ 2,350,000 $ 1,960,149 $ 572,923 $ 2,533,072 2018-19 2,246,000 520,000 2,766,000 2,206,611 523,631 2,730,242 2019-20 2,675,000 520,000 3,195,000 3,128,242 536,120 3,664,363 2020-21 3,038,000 520,000 3,558,000 3,389,076 558,607 3,947,683 2021-22 3,429,000 520,000 3,949,000 4,059,258 608,736 4,667,994 2022-23 3,784,000 520,000 4,304,000 4,214,000 598,545 4,812,545 2023-24 4,004,000 520,000 4,524,000 4,245,000 611,107 4,856,107 2024-25 4,324,000 520,000 4,844,000 4,632,000 636,100 5,268,100 2025-26 4,445,000 520,000 4,965,000 4,963,000 651,100 5,614,100 2026-27 4,902,000 520,000 5,422,000 5,352,000 721,100 6,073,100 2027-28 5,146,000 700,000 5,846,000 5,721,000 721,100 6,442,100 2028-29 5,348,000 $ $ 720,000 $ 6,068,001 $ 6,390,000 $ 721,100 $ 7,111,100 2018 Forecast 2023 Forecast
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Table 4 – Section 115 Trust Fund Lifespan Forecast

FISCAL IMPACT
There is no fiscal impact as a result of the City Council receiving this report.

ATTACHMENTS
None.
2018-19
Actual
2019-20
Actual
2020-21
Actual
2021-22
Actual
2022-23
Revised
Budget
2023-24
Forecast
Section 115 Trust
Pension Fund Balance, July 1 16,287,510 17,159,258 18,088,812 19,442,496 16,045,223 14,459,597 Revenues - Interest 924,669 1,010,988 2,792,382 (2,248,500) 490,986 838,657 Expenditure - Withdrawal 1,352,111 1,061,736 2,016,612 2,245,480 Expenditures - Bank Fees 52,921 81,434 86,587 87,037 60,000 50,000 Pension Fund Balance, June 30 17,159,258 18,088,812 19,442,496 16,045,223 14,459,597 13,002,774 2024-25
Forecast
2025-26
Forecast
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
Section 115 Trust
Pension Fund Balance, July 1 13,002,774 11,286,816 9,379,328 7,295,543 5,022,964 2,548,304 Revenues - Interest 754,161 654,635 544,001 423,141 291,332 147,802 Expenditure - Withdrawal 2,425,118 2,522,123 2,597,787 2,675,720 2,755,992 2,838,672 Expenditures - Bank Fees 45,000 40,000 30,000 20,000 10,000 Pension Fund Balance, June 30 11,286,816 9,379,328 7,295,543 5,022,964 2,548,304 (142,567) 268 of 293
DATE: JULY 18, 2023
TO: MAYOR AND COUNCIL MEMBERS
FROM: LILLY WHALEN, COMMUNITY DEVELOPMENT DIRECTOR

JEREMY ROGERS, COMMUNITY SERVICES DIRECTOR
SUBJECT: OPTIONS FOR A COMPREHENSIVE PUBLIC ART PROGRAM

RECOMMENDATION
Staff recommends that the City Council receive a report on public art in Pinole, review options for the establishment of a public arts program, and provide direction as appropriate.

BACKGROUND
At the October 18, 2022 Council meeting, Council Member Tave requested a future agenda item regarding an update on the City’s public art/mural program. At the November 1, 2022 Council meeting, former Mayor Salimi requested a future agenda item regarding a public art project related to Iranian human rights. The City of Pinole does not currently have a public art program nor policies related to accepting gifts of art or spending public art funds. In consideration of the two requested future agenda items, this report provides background information on public art in Pinole and options for the creation of a comprehensive public art program, if the Council so directs.

What is Public Art
According to the Americans for the Arts, simply put, “Public Art” is art in public spaces.

Public art is publicly accessible—both physically and/or visually. It can take a wide range of forms, sizes, and scales, and it can be temporary or permanent. It often interprets the history of the place and its people and can address a social or environmental issue. Public art can include murals, sculptures, memorials, integrated architectural or landscape architectural work, community art, digital new media, and even performances and festivals. Public art has been found to provide a positive impact on communities by supporting beautification, developing economic growth and sustainability, reinforcing attachment and cultural identity, championing artists as contributors to joy and inspiration in the community, promoting social cohesion and cultural understanding, and fostering public health and belonging.

Public art is typically developed and managed by a municipal agency such as a city or private entity such as a nonprofit arts organization and is typically funded through the

CITY COUNCIL
REPORT
12B
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government, but increasingly through public-private partnerships as well. As discussed later in this report, to generate funding for public art, jurisdictions may adopt ordinances specifying that a percentage of construction costs associated with development projects must be set aside for the commission, purchase, fabrication, and installation of public artwork. Jurisdictions may also accept donations in the form of monetary funds earmarked for public art, or gifts of artwork itself.

Existing Public Art in Pinole
Pinole is home to a number of colorful murals commissioned by the City’s former Redevelopment Agency celebrating the history and culture of Pinole. The murals were painted on City and private buildings and walls by local artists and the Pinole Artisans from 1995 through 2007. The collection includes the following:
(1) A mural celebrating 100 years of railroad history along the concrete walls on Tennent Avenue under the BNSF railroad overpass
(2) Murals around Fernandez Park including 659 Tennent Avenue, in the public parking lot behind Park View Plaza, and on the building at 2400 San Pablo Avenue (3) A mural located at 2350 San Pablo Ave along the pedestrian walkway from the Bear Claw bakery to the community parking lot near Fernandez Park (4) A mural on the upper façade of the building (private property) at 2221 Pear Street (5) A mural at 800 Tennent Avenue in City Hall Plaza Parking (6) A mural at the bus stop along the retaining wall on San Pablo Avenue at Oak Ridge Road
(7) A mural celebrating 100 years of railroad history along the concrete walls on Pinole Valley Road under the Interstate 80 overpass (see Figure 1) The murals are in various conditions (from good to deteriorated). See the inventory in Attachment A for current photographs. A 2016 City Council staff report1 provided an overview of the condition of the murals with recommendations for future maintenance and preservation. At the conclusion of that Council meeting, the Council did not take formal action regarding the murals, but the Mayor at the time confirmed that funds should be identified for (1) mural preservation and (2) the development of an ordinance that would address the retention and maintenance of murals.

Additionally, there are six public tile mosaics at public locations in the City: at the Public Safety Building, Meadow Park, the Pinole Library (see Figure 1), the Youth Center, City Hall and the water fountain in Fernandez Park.

There are a few other publicly accessible private murals throughout the City on private commercial property. For example, a mural depicting turn-of-the-last-century Pinole hangs in the Wells Fargo building on Fitzgerald Drive, a colorful mural with animals adorns the Pinole Pet Hospital building on San Pablo Avenue, and the interior of Trader Joe’s on 1 https://cdnsm5-
hosted.civiclive.com/UserFiles/Servers/Server_10946972/File/City%20Government/City%20Clerk/Archived%20A genda/Archived%20City%20Council/2016%20Agenda%20Packets/2016-04-05/09A.pdf 270 of 293
Pinole Valley Road is encircled by a mural depicting important landscapes and special places in Pinole.

Figure 1: Two examples of Public Art in Pinole
Tile mosaic at the Pinole
Library on Pinole Valley Road
Mural Under Interstate 80
at San Pablo Avenue
Staff developed an inventory (Attachment A) and an interactive online map2 with information about these art pieces in Pinole.

Existing City Policies Related to Public Art
The City has not developed a Public Art Program or Public Art Policy, and therefore the City lacks policies related to curation, contracting, installation, maintenance, conservation, loans, and decommissioning of public art. However, the City’s General Plan and Three Corridors Specific Plan provide guidance that can be used in developing such policies. A summary of these relevant items from the General Plan Chapter 3 (Community Character) and Chapter 5 (Land Use and Economic Development) follows:
• Policy CC.1.3. This policy establishes that the City will develop community entry features (with landscaping, trees, structural architectural elements, signage and public art) at key gateways or city entries along Interstate 80. • Action CC.1.3.2. This action item involves the City establishing a Gateway Program to create a sense of entry and promote wayfinding at key locations, incorporate community landmarks and focal points (including public art and other design features such as fountains and monuments) into community and neighborhood parks.
• Action CC.4.2.3. This action item involves the City establishing a program to identify historical structures, places and events in recognition of their status. This program may include the use of signs, monuments, public art and interpretive exhibits.
2 https://www.google.com/maps/d/edit?mid=1E81keUOFTy1jDqqk6r8d2pjwgsMUrhc&usp=sharing 271 of 293
• Action CC.5.3.1. This action item considers the utilization of the Community Services Commission (or establishing another board or commission) to establish a public art program, directing the use of public funds for art in public places, encouraging the use of art in private development projects, and administering other cultural and artistic programs for the city as deemed appropriate by the City Council. The duties of the Community Services Commission, pursuant to Chapter

2.36 of the Pinole Municipal Code, include advising on arts and cultural activities in the City.
• Action LU.8.1.2, 8.1.2, and 8.3.5. These action items direct new and/or enhanced unique San Pablo Avenue, Pinole Valley Road, and Appian Way regional and neighborhood gateway treatments (including potentially public art) at key locations to visually enhance the portion of the corridor within Pinole over time.

Additionally, the City’s Three Corridors Specific Plan Chapter 7 (Private Realm Design Guidelines) and Chapter 8 (Public Realm Design Guidelines) contain a number of guidelines related to Public Art on private and public property. On private property, the Specific Plan encourages Public Art to be integrated into private development projects such as water features, murals, and sculptures or public infrastructure such as bike racks, gates, benches, and bollards. On public property, the Specific Plan provides the following guidance:
• The City should consider initiating an “Art in Public Places” program that can provide incentives as well as layout guidelines for design and placement of art in Pinole.
• All capital improvement and development projects should explore the integration of public art into the design of public streetscape elements (e.g., paving, street furniture, transit shelters, lighting).
• Public art is encouraged to be used in a variety of locations to enhance the quality and use of the public space or downtown street environment. • Public art should consider the incorporation of functional streetscape amenities, such as benches, walls, stairs, paving, bike racks, and bus stop shelters. • Public art should reflect the spirit and character of the community. Murals are a colorful form of public art that can celebrate the history and culture of Pinole. • The design and materials of the artwork should be durable against weather and vandalism, and should not require extensive maintenance.

Existing Funding
The City has not adopted measures to ensure consistent funding for public art. Despite this, the City has accumulated a small Public Art Fund. This Fund was established when public art fees were negotiated as a part of the development agreements for the Gateway projects in the early 2000s. The Public Art revenue account currently has a balance of $95,892.50. However, the City has not adopted a policy on how to expend funds collected for public art, which would be a recommended next step. 272 of 293

REVIEW & ANALYSIS
Public art has the ability to inspire, ignite, awaken, and animate. It can add vitality, culture, and character to street life and public gathering places by acting as a focal point in a public space (e.g., a sculpture) as well as a functional feature (e.g., a bench). It can serve to help orient community members and function to mark major transition points in the City.

In addition, public art may also support economic development and improve the overall business climate by creating a more desirable community within which to live and work, increasing the ability to attract and retain commercial and industrial businesses through an enriched visual environment, and fostering educational opportunities for the community. Moreover, it can contribute to a sense of identity and pride in the community and reflect a community’s aspirations and history.

Public art may take different forms, including the following:
• Standalone: e.g., sculptures, statues, structures
• Integrated (into façades, pavements, or landscapes): e.g., mosaics, bas reliefs • Applied (to a surface): e.g., murals, building-mounted sculptures, utility box artwork, monument and wayfinding signs
• Installation (often large-scale, mixed-media constructions where artwork and site are mutually embedded): e.g., transit station art
• Ephemeral (non-permanent): e.g., performances, temporary installations Public art examples from nearby communities are provided in Figure 2, on the next page.

Art in Public Places Program
The City’s Three Corridors Specific Plan encourages the City to consider initiating an “Art in Public Places” program. Such a program could support the integration and maintenance of site-specific installations and unique public art in public places that reflect the history and values of the Pinole community. These could include temporary and/or permanent works of art, works of art purchased, created, or gifted for display in public places, as well as publicly accessible art incorporated into private development projects.

The program could address donations of art from community groups, include a policy related to gifts and loans of artwork, support local non-profit arts and culture organizations for community-based arts activities, and establish an interest-bearing Arts Fund.

There are a variety of considerations that must be accounted for in a public art program.

These include artist and site selection for public art projects, maintenance, funding, staffing, administration, and other elements. Staff reviewed established “Art in Public Places” programs in the communities of Orinda3, San Pablo4, El Cerrito5, the Public Art 3 https://www.cityoforinda.org/206/Art-in-Public-Places 4 https://www.codepublishing.com/CA/SanPablo/html/SanPablo17/SanPablo1763.html 5 http://www.el-cerrito.org/DocumentCenter/View/2554/APP_submittal_instructions?bidId= 273 of 293
Program in Richmond6, and the Public Art Policy in Martinez7. A summary of program components is provided in Table 1.

Figure 2: Examples of public art in other nearby communities ▼Water Sculpture in Lafayette
(artist: Archie Held)
▼Book Benches in Livermore
(artist: not specified)
▼Sculpture/light installation in Walnut Creek
(artist: Cliff Garten)
▲Sculpture and poem in
Brentwood
(artist: Debra Janis)
▼Building-mounted sculpture in Richmond
(artist: Andre Singer-Thompson)
6 https://www.ci.richmond.ca.us/126/Public-Art-Program
7 https://www.cityofmartinez.org/our-city/community-programs/public-art-policy 274 of 293
►Tile integrated
into benches in
San Ramon
(artists: teens in
Parks and
Community
Services
Department)
TABLE 1: COMPONENTS OF A PUBLIC ART PROGRAM
Topic Purpose Point of Consideration
Public Art
Review Authority
Establish a public art review
authority, whose role is to
review and approve public
art projects, artist selection,
and the selection of sites for
public art; ensure authority
represents broad
community interests and
technical expertise related
to the creation of public art.

Pinole’s Community Services
Commission is identified in City’s
General Plan as the review authority.

In El Cerrito, staff reviews public art
during building permit review with a
referral to the Arts and Cultural
Commission if the project does not
comply with standards. In San Pablo,
an art permit is reviewed by the
Planning Commission and approved
by the Council. In Walnut Creek and
Brentwood, public art is reviewed
and approved by the Arts
Commission. In Lafayette, the Public
Art Committee advises the City
Council in matters pertaining to
public art acquisitions and gifts,
artwork maintenance, and, when
necessary, artwork
decommissioning.

Funding Establish an interestbearing fund, budget setasides (e.g., administrative costs, maintenance,
insurance,
decommissioning) and
policy on use of funds and
eligible public art expenses
Sources of funding can include:
• Percent for Art Ordinance
(capital construction projects
and private developments)
• Donations from private firms
(public/private partnership)
• Nonprofit fundraising body
raising private funds
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TABLE 1: COMPONENTS OF A PUBLIC ART PROGRAM
Topic Purpose Point of Consideration
Site Selection Establish a set of criteria to
be considered for public art
planned, donated, initiated,
or commissioned.

Process could involve evaluating
sites and creating priorities based on
criteria including: public access,
visibility, ability to create a sense of
community, historical significance,
public safety, engineering concerns,
and other factors that may be locally
relevant.

Artist Selection Establish an artist selection
method for commissioned
artwork.

Will preference be given to local
artists?
Common selection methods include:
• Request for proposals,
• Request for qualifications
• Artist competition
Documentation
of Public Art
Establish documentation
and inventory procedures.

Providing documentation
helps citizens, educators,
and students know what
public art is available in the
community, and also helps
administrators track projects
and funding needs over
time.

Documentation is linked to both
maintenance and education.

Maintenance of
Public Art
Establish maintenance
procedures. Maintenance of
existing work is
recommended to coexist
with the commissioning or
acquisition of new works in
order to efficiently build a
public art collection.

Funding should be allocated for
conservation and maintenance of art
pieces on public property.

Consider maintenance agreement for
private property public art. For
example, in San Pablo a private
property owner is required to maintain
the public art, perform maintenance
(through a covenant recorded against
the property), and replace any art that
is removed.
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TABLE 1: COMPONENTS OF A PUBLIC ART PROGRAM
Topic Purpose Point of Consideration
Acquisition and
Removal of
Public Art
Establish guidelines for the
acceptance and
decommissioning of public
art
For non-commissioned works,
establish criteria which would allow
for decisions to be made regarding
both acquisition as well as removal of
public art. Criteria to be considered
may include cost, scale, subject
matter, artistic style, ongoing
maintenance cost, and general
adherence to program policies.

Receipt of Public
Art Gifts
Establish policies for receipt
of gifts of art.

Should be reviewed in accordance
with acquisition and removal
guidelines.

Educational
Opportunities
and Community
Engagement
Develop educational
programming and local
community organizations.

Develop educational materials based
on art collection. Consider hosting
lectures on public art. Establish
activities centered around public art.

Accessibility Develop specifications to
ensure that the artwork is
publicly accessible
In Walnut Creek, the public art must
be located (1) in areas on the site
clearly visible from the public street or
sidewalk, or (2) in publicly accessible
outdoor areas, or (3) on adjacent
public property (subject to the
approval of any relevant public
agency), or (4) in a publicly
accessible lobby area or cafeteria of
an office building, hotel or hospital.

Potential Funding Sources
The term “Percent for Art” refers to a policy and program that requires development projects to incorporate publicly accessible art into the development or pay a commiserate in-lieu fee that would fund public art in other locations in the City. A Percent for Art policy could work in tandem with a comprehensive Art in Public Places program.

Percent for Art programs have been successfully implemented throughout the United States for many years. In Contra Costa County, the cities of Brentwood, El Cerrito, Lafayette, Richmond, San Pablo, San Ramon, and Walnut Creek have all adopted Percent for Art programs focused on private development. Programs that encourage public art to be provided through development requirements recognize private developments as important locations for public interface and that art and cultural experiences at these sites can have immense benefits to the development and the public alike.
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Likewise, some jurisdictions impose a similar Percent for Art policy on publicly funded capital projects to ensure that public art is incorporated into, on, or adjacent to the building or project being constructed. A public development Percent for Art policy and program dedicates funds from a jurisdiction's capital budget towards the development of public art projects on an annual basis. This guarantees a funding stream for public art projects regardless of what happens to other art funding. The policy also guarantees that public art projects will be planned each year, as long as municipal construction continues.

The points of consideration in Table 2, below, may be included in any exploration of a Percent for Art policy. This policy could work in tandem with a comprehensive Art in Public Places Program, as described above, which would address other considerations such as, but not limited to, the selection of public sites for public art, gift/donation policies, selection of artists, ownership of art, and public education and programs.

TABLE 2: PERCENT FOR ART POLICY OPTIONS
Topic Point of Consideration Examples (City)
Applicable private
development
projects
Thresholds of projects
subject to Percent for Art
policy, e.g., use type,
valuation, square footage,
number of units
Development costs over $200,000
(San Pablo); New residential of six
or more units (Walnut Creek);
Resulting in a building of 5,000
square feet or more of gross floor
area (Lafayette); All new industrial
structures (Richmond)
Applicable capital
improvement
projects
Thresholds of projects
subject to Percent for Art
policy, e.g., estimated
construction cost
Any Capital Improvement project
with a budget of $300,000 or more
(Richmond)
Provision of art onsiteValue of art to be installed
on-site
1% of construction costs
(Lafayette, San Pablo, El Cerrito,
Richmond, Walnut Creek), set by
Resolution (San Ramon,
Brentwood); 0.5% of construction
costs for non-profit building or
hospital (Walnut Creek)
Alternative to
Provision of Art
Value of in-lieu fee that is to
be contributed to Public Arts
Fund as an alternative to
on-site installation

0.8% of development costs
(Berkeley); 0.33% of construction
costs (Livermore)
Capital Projects
Percentage for Arts
Percentage assessed to
fund Public Art

1.5% of total development costs of
City Capital Improvement Project
set aside for Public Art
(Richmond)
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TABLE 2: PERCENT FOR ART POLICY OPTIONS
Topic Point of Consideration Examples (City)
Exemptions for
certain projects
Types of projects that
should be exempt from
Percent for Art Ordinance/
Policy
Work to fire damaged buildings
(most jurisdictions); Residential
units with 90% or greater
affordable housing mix (Walnut
Creek); Four or fewer residential
units (Brentwood); Affordable
Housing Projects; Residential less
than 10 units (San Ramon),
Commercial under $1million (San
Ramon); Undergrounding projects
(El Cerrito).

Next Steps
If the City Council is interested in establishing an Art in Public Places Program, staff recommends directing staff to:
• Work with the Community Services Commission to develop recommendations for a comprehensive Art in Public Places program. The Program could include guidelines for City art projects and collections, roles/responsibilities, collection management, maintenance, and conservation; and
• Work with the Planning Commission to develop recommendations for a Percent for Art Ordinance and guidelines, procedures and criteria for art in private development; and
• Consult with the Pinole Artisans and other professionals to provide recommendations on the maintenance and preservation and/or decommissioning (if necessary) of each mural in Pinole commissioned by the Redevelopment Agency. Staff will return to Council with a recommended plan of action and associated budget.

FISCAL IMPACT
There is no fiscal impact to considering a direction for a Public Art program.

ATTACHMENT(S)
A- Draft Pinole Public Art Inventory
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MURALS COMMISSIONED BY CITY OF PINOLE
Image  Location  Address  Artist (if
known)
Date of
Installation
Railroad
trestle over
Tennent
Avenue
Tennent
Ave‐BNSF
Railroad
Stefen  2003
Entrance to
Fernandez
park from
public
parking lot
at 2400 San
Pablo
Avenue
2358 San
Pablo
Avenue
Signature of
Seri on
painting’s
window
TBD
Entrance to
Fernandez
Park from
parking lot
on Tennant
659
Tennent
Avenue
Janette Legg  TBD
Pedestrian
walkway
next to Bear
Claw Bakery
2340 San
Pablo
Avenue
Pinole
Artisans/Joan
Landis
2007

ATTACHMENT A
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MURALS COMMISSIONED BY CITY OF PINOLE
Image  Location  Address  Artist (if
known)
Date of
Installation
Upper
portion of
building
facade
facing Pear
Street
2221 Pear
Street
Pinole
Artisans/Joan
Landis
2002
Public
Parking lot
facing Public
Safety
Building
800
Tennent
Avenue
Stefen  1999
Bus Stop  San Pablo
Ave and
Oak Ridge
Avenue
Betty Bailon
and Adelpha
Frye
1995
Underpass  Pinole
Valley
Road/
Interstate
80 Overpass
John Wehrle  2002
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TILE MOSAICS IN PINOLE
Image  Location  Address  Artist  Date
Fernandez
Park
Tennent and Park
St
TBD  TBD
Youth Center  635 Tennent
Avenue
Youth
Artists
2008
Public Safety
Building
860 Tennent
Avenue
Hanns and
Monica
Scharff
1985
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TILE MOSAICS IN PINOLE
Image  Location  Address  Artist  Date
Meadow Park  Nob Hill Avenue at
Rogers Way
Pinole
Artisans
TBD
City Hall   2131 Pear Street   TBD  TBD
Pinole Library  2935 Pinole Valley
Rd
TBD  TBD
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MURALS ON PRIVATE PROPERTY IN PINOLE
Image  Location  Artist  Date
2330 San
Pablo Ave‐
On the
building rear
TBD  TBD
Pinole Pet
Hospital‐
1400 San
Pablo Ave
Stefen  1998
Trader Joe’s‐
2742 Pinole
Valley Rd
Stefen  2009
Wells Fargo
Bank
1374
Fitzgerald
Dr.

TBD  2013
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CITY COUNCIL
REPORT
12C
DATE: JULY 18, 2023
TO: MAYOR AND COUNCIL MEMBERS
FROM: SANJAY MISHRA, PUBLIC WORKS DIRECTOR

ALEX MOG, ASSISTANT CITY ATTORNEY
SUBJECT: STEPS REQUIRED TO SELL THE FARIA HOUSE

RECOMMENDATION
Staff recommends that the City Council receive information on steps that would be required to sell the Faria House and provide direction as appropriate.

BACKGROUND
At its meeting on March 7, 2023, City Council approved a future Council agenda item to receive a report on the steps that would be required to sell the Faria House.

REVIEW & ANALYSIS
The Faria House (the “Faria House”) was donated to the City and was relocated at the expense of the former Redevelopment Agency (the “Agency”) to its current location at 2100 San Pablo Avenue (the “Property”). The Property was purchased by the Agency with Agency low- and moderate-income housing funds (“Housing Funds”) as part of an affordable housing project known as Heritage Park. Three affordable housing units were constructed on three adjacent lots, fronting Buena Vista Drive, and the Property was intended to be used as a park.

In 2012, redevelopment agencies were dissolved, and all properties purchased with Housing Funds were transferred to the City to be used for affordable housing. Both the Faria House and the Property were transferred to the City in August of 2012 as housing assets. Under the redevelopment dissolution law, if properties in the housing asset fund are sold or used for any reason other than affordable housing, the properties must be purchased at fair market value, and the funds received from the purchase must go back into the Housing Fund.

The City looked at various uses for the Faria House and determined that the best use would not be for affordable housing. Therefore, the City decided to purchase the Faria House out of the Housing Fund in order to have flexibility for its use. The City received an appraisal for the Faria House (does not include the land underneath the Faria House) and paid Thirty Thousand Dollars ($30,000) in July 2016 to transfer the Faria House to the City out of the Housing Fund. The Property is still held by the City as a housing asset. 285 of 293
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The process to sell the Property, or to sell the Faria House with a ground lease for the Property, is as follows:

1. The City Council must declare the Faria House and the Property “Surplus Land” pursuant to the Surplus Land Act (Gov. Code § 54220 et seq.). The Council should also direct staff:
a. To obtain an appraisal that separately identifies the value of both the Property and Faria House separately.
b. To retain a consultant to market the Faria House and the Property.

The Property is zoned and has a Specific Plan designation as Commercial-Mixed Use. The Council should evaluate whether that zoning designation facilitates the type of use desired for the location, or whether the Property should be rezoned.

Rezoning would involve initiation of General Plan, Specific Plan and Zoning Ordinance text and map amendments. This process involves hearings with the Planning Commission to study and ultimately provide a recommendation to the City Council. The City Council approves, conditionally approves, or denies the rezoning. An analysis pursuant to the California Environmental Quality Act (CEQA) would also be required prior to any rezoning actions taken.

2. Thereafter, to comply with the Surplus Land Act, the City must send a written notice of availability regarding the Property to certain public agencies and non-profit housing sponsors that have requested notice.

3. Any entity that receives the notice of availability has 60 days to notify the City that it is interested in purchasing the Property. If there are any responses, the City must then negotiate in good faith with the interested entities for at least 90 days. If any residential units are built on the site by an entity responding to the notice of availability, at least 25% of the units must be affordable for households with incomes of no greater than 80% of the Area Median Income. There is no requirement to change the zoning of the Property or sell the Property for less than fair market value.

4. If no agreement is reached within the 90-day period (or no qualified entity expresses interest within the initial 60-day period), the City has the right to market and sell the Property to any interested entity. If any residential units are built on the Property as a result of this process, at least 15% of the units must be affordable for households with incomes of no greater than 80% of the Area Median Income pursuant to the City’s inclusionary housing requirement.

5. If the Property is not sold to an affordable housing developer, then the Property must be sold for an amount not less than its fair market value. The proceeds from the sale of the Property must be deposited into Housing Fund if the Property is not sold for affordable housing. The proceeds from the sale of the Faria House may be deposited into the City’s General Fund.
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Sell of a City property involves a specific process and requires a set of steps to ensure transparency, legality, and fair value. Staff will take following steps if directed by council to proceed for sale of the property.

1. Appraisal: City completed a professional appraisal of the Faria House in March 2023. This appraisal will help us in setting an appropriate selling price.

2. Authorization: Staff will move forward with the sale process once Council authorizes the sale.

3. Marketing: City has retained the services of real estate consultants to help with property sales in the past and would obtain a proposal for marketing and sale this property. The consultant will advertise the property for sale to attract potential buyers. Staff estimates that these services will cost us approximately $20,000 for marketing and sale of the property.

4. Prepare legal documentation: City attorney’s office will prepare the necessary legal documents, including a sales contract or agreement, disclosure statements, and any other required paperwork to ensure compliance with local regulations and laws.

5. Arrange property viewings: Public Works will coordinate and allow interested buyers to visit and inspect the property.

6. Conduct negotiations: City will negotiate with potential buyers to agree on the sale price, terms, and conditions. The negotiation process may involve multiple rounds of offers and counteroffers until both parties reach a mutually acceptable agreement.

7. Accept an offer: Once an acceptable offer is received, council will review and approve the offer.

8. Execute the sales agreement: Once all terms are agreed upon, City will sign the sales agreement with the buyer.

9. Transfer of ownership: City will facilitate the transfer of ownership by completing any legal and administrative procedures required for the transfer.

10.Receive payment: City will ensure that the agreed-upon payment is made by the buyer.

11.Close the sale: Once payment is received, City will finalize the sale by providing the buyer with all relevant documents, keys, and other necessary items for the property transfer.
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FISCAL IMPACT
There is no fiscal impact from receiving this report.

ATTACHMENTS
A. Parcel Map of Faria House
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ATTACHMENT A
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CITY COUNCIL
REPORT
12D
DATE: JULY 18, 2023
TO: MAYOR AND COUNCIL MEMBERS
FROM: ANDREW MURRAY, CITY MANAGER

FIONA EPPS, ASSISTANT TO THE CITY MANAGER
SUBJECT: RACIAL EQUITY IN PINOLE

RECOMMENDATION
Staff recommends that the City Council receive information on racial equity in Pinole.

BACKGROUND
In 2022, the City Council approved a future Council agenda item on racial equity in Pinole.

Many cities across the country have begun to examine equity within their organizations and communities more closely over the past few years as significant racial, gender, and other inequities have been exposed in relation to Black Lives Matter, COVID disparities, the Me Too movement, the legacy of slavery, anti-Asian hate, and concerns about voting disenfranchisement.

There are numerous definitions of equity used in different contexts. In general, in this context, equity is defined as providing everyone with the resources they specifically need to achieve the same outcomes. In contrast, in this context, equality is defined as providing everyone with the same resources.

Individuals can experience inequity due to ethnicity, gender, sexual orientation, disability, class, age, and other characteristics. Inequity results in worse outcomes related to income, wealth, education, health, access to resources and services, incarceration, and other factors.

Because inequity can be based on many characteristics and result in many differential outcomes, there is no single or precise measure of equity and inequity at a community level. There are some measures that are considered to be useful proxies for equity overall, which include racial integration, access to healthy environments, and income distribution.
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REVIEW & ANALYSIS
As noted above, there is no comprehensive or precise measure of a community’s equity.

There are some proxy measures for overall equity. Three such measures are racial integration of a community, access to healthy environments, and income distribution.

The City can better understand the current state of equity in Pinole by examining recent data prepared by trusted institutions that measure some proxies of equity. This data can serve as a baseline for future, more comprehensive examination and possibly interventions regarding inequities in Pinole.

The Othering and Belonging Institute (OBI) at the University of California, Berkeley conducts research and programs to transform structural marginalization and inequality.

OBI recently completed research on Racial Segregation in the San Francisco Bay Area.

That research revealed that Pinole is a very integrated community when measured by comparing the ethnic composition of Pinole residents to the ethnic composition of the entire Bay Area (“inter-municipal divergence”). Pinole ranked fourth highest among the 101 Bay Area cities in terms of how similar Pinole’s ethnic composition is to that of the Bay Area overall. However, that research also revealed that Pinole is only average among Bay Area cities in terms of integration at the neighborhood level (“intra-regional divergence”). By this measure, Pinole ranked 44th out of 101.

The Healthy Places Index is a platform that aggregates data on various social conditions that impact health in order to illustrate the equity or inequity of those conditions in California communities. Pinole is rated as having very high ethnic diversity and healthy community conditions overall, including with respect to economic, education, social, transportation, neighborhood, and environmental conditions, with fairly healthy conditions for housing and healthcare access. This reflects that Pinole’s diverse residents have access to many healthy social conditions that can support their achievement of healthy outcomes.

CalEnviroScreen is a tool created by the State of California Office of Environmental Health Hazard Assessment (OEHHA) that identifies which communities are most affected by pollution and scores communities based on environmental, health, and socioeconomic information. The majority of US Census tracts within Pinole are characterized by CalEnviroScreen as having advantageous environmental outcomes, based on composite, pollution, and population characteristics. However, approximately 62 housing units in Pinole are part of a US Census tract, largely composed of housing in the unincorporated area, characterized as being part of an “Impacted Community.” An Impacted Community is one where residents are disproportionately burdened by a 292 of 293
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combination of economic, health, and environmental conditions. The City is incorporating this data into the draft Environmental Justice Element.

As noted in the City’s Housing Element, based on data from the US Census, there is relatively little variation throughout the City in household income.

Municipal associations, such as the League of California Cities (“Cal Cities”) and the National League of Cities (NLC), are examining their own organizations as well as providing case studies and other resources to member cities that would like to work on diversity, equity, and inclusion (DEI) issues. The League of California Cities created an Advancing Equity Advisory Committee, Advancing Equity Community, and an Equity Roadmap. The Equity Roadmap lays out the steps that Cal Cities intends to take to provide members with equity education and resources and expand Cal Cities’ capacity and practices regarding equity. The National League of Cities has a Race, Equity, and Leadership (REAL) program that also provides training and resources on racial equity.

There are also a number of other organizations that provide resources to cities on racial equity, including the Local and Regional Government Alliance on Race & Equity (GARE) and the Racial Equity Institute (REI).

As noted above, many cities are taking various steps to examine and fortify equity in their organizations and communities. The City of Pinole is currently in the midst of an internal DEI initiative measuring the inclusivity of the City work environment; providing training to staff on inclusivity and related skills; and establishing a staff working group to continue to advance DEI in the City organization in the future.

FISCAL IMPACT
There is no fiscal impact from receiving information on equity in Pinole.

ATTACHMENTS
None
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