Pinole City Council
June 25, 2024

Land Management System & GIS Maintenance Services

CLIENTFIRST TECHNOLOGY CONSULTING

OPTIMAL TECHNOLOGY GUIDANCE
18 | 22
Tatjana Meser
Director, Enterprise Applications Consulting
Tatjana Meser has over 13 years of experience with local government agency software implementations. Her in-depth experience with software configuration, business analysis, and user needs assessment allows Tatjana to oversee project implementations of standard and customized software successfully.

Skilled in all facets of the project life cycle for application software, she has experience with functional and technical requirements development, gap analysis, system analysis, design, specifications, unit and system testing, implementation planning, execution, lessons learned, and system documentation.

These business improvement and process consistency efforts have created significant cost savings through move-efficient business processes and have reduced overall implementation costs.

Having worked with numerous government agencies as a vendor, Tatjana also brings an understanding, perspective, and ability to manage all the parties necessary for delivering lasting operational success.

Highlights
• Project oversight and management services for multiple community development implementations with custom
integration to financial, tax, and business licensing systems • Industry experience includes work with City and County agencies
Agency Experience
City of Batavia
City of Beaumont
City of Carlsbad
City of Cedar Hill
City of Chico
City of Corona
City of Coronado
City of Dana Point
City of Escondido
City of Fairfield
City of Farmers Branch
City of Fontana
City of Glendora
City of Greenville
City of Hesperia
City of Idaho Falls
City of Keller
City of Key West
City of Lakeland
City of Larkspur
City of Mill Valley
City of Mission Viejo
City of Monrovia
City of Newark
City of Novato
City of Oceanside
City of Palm Desert
City of Palmdale
City of Petaluma
City of Piedmont
City of Pinole
City of Pismo Beach
City of Rancho Palos Verdes
City of Rocklin
City of Salinas
City of San Bernardino
City of San Clemente
City of South Gate
City of St. Cloud
City of St. Helena
City of St. Paul
City of Vacaville
City of Vallejo
City of West Covina
City of West Sacramento
City of Wood Dale
Town of Windsor
Town of Woodside
Village of Lincolnwood
Village of Oswego
Village of River Forest
Village of Westmont
County of Butte
County of Calaveras County
County of Mendocino
County of Shasta
County of Yuba
County of Hanover

CREDENTIALS, DEGREES,

AND AFFILIATIONS
• Bachelor of Arts in International
Studies – UC San Diego
• Project Management Institute
Member – Inland Empire Chapter

SPECIALTIES
• Project Management
• Conversion, Interface Planning,
and Implementation Support
• Understanding of public sector
departmental operations and
application systems
• Workflow analysis and mapping
• Business Process Redesign
• System Configuration and
Training
• Test and Go Live Plan Creation
I just wanted to say that I thought the
training sessions were very
informative and clear, and I learned a
lot from it. I appreciate your time
spent to train us. Thank you so much!
—Account Clerk
CA Municipality

Land Management System & GIS Maintenance Services

CLIENTFIRST TECHNOLOGY CONSULTING

OPTIMAL TECHNOLOGY GUIDANCE
19 | 22
Cyndi Hoxie
Management Consultant
Cyndi Hoxie has over 30 years of Public Sector experience, including 15 years in municipal government Building and Code Enforcement.

She has spent over 19 years assisting agencies with land management enterprise application systems, with her last position as a product owner of a mid-tier land management software representing the software needs of government agencies nationwide.

Cyndi’s applications experience ranges from being a frontline, daily land management software user to extensive applications support and software implementor and project manager of software
implementations. Her diverse experiences allowed her to represent clients’ needs and drive the development of land management software with the end user in mind. Cyndi now utilizes her vast land management systems knowledge to provide agencies with hands-on applications support, maintenance, data management, reporting writing, training, and consulting advisory.

Highlights
• Experience with planning, permitting, inspections, code enforcement, and tax and licensing processes
• Project oversight and management services for multiple community development implementations
• Experience with custom integrations specifically for financial, tax, and business licensing systems
• Business process gap analysis and workflow documentation • Extensive knowledge of business and technical processes pertaining to enterprise applications
Agency Experience
City of Aurora
City of Aventura
City of Bakersfield
City of Boynton Beach
City of Brentwood
City of Broken Arrow
City of Carlsbad
City of Cary
City of Champaign
City of College Station
City of Coral Springs
City of Crestview
City of Delray Beach
City of Folsom
City of Fresno
City of Grand Prairie
City of Greenville
City of Gresham
City of Las Vegas
City of Los Altos
City of Manchester
City of Marietta
City of Miami Springs
City of Mission Viejo
City of Newberg
City of Norfolk
City of North Port
City of Novato
City of Oswego
City of Pearland
City of Piedmont
City of Pinole
City of Plano
City of Pompano Beach
City of Rio Rancho
City of St. Cloud
City of St. Helena
City of St. Petersburg
City of Salinas
City of San Bernardino
City of San Clemente
City of Solana
Beach
City of Tamarac
City of West
Palm Beach
City of Winter
Haven
Town of Davie
Town of Lady
Lake
Town of Los
Altos Hills
Town of Normal
Town of
Windsor
Village of
Lincolnwood
County of Butte
County of
Hanover
County of
Mendocino

CREDENTIALS
• Certified Scrum Product Owner

SPECIALTIES
• Project Management
• Conversion, Interface Planning,
and Implementation Support
• Understanding of public sector
departmental operations and
application systems
• Workflow analysis and mapping
• System Configuration and
Training
• Test and Go Live Plan Creation
Cyndi, Thank you so much for
accomplishing this huge task in a
short period of time! We would not
have been able to do this without you.
—City Manager
CA Municipality

Land Management System & GIS Maintenance Services

CLIENTFIRST TECHNOLOGY CONSULTING

OPTIMAL TECHNOLOGY GUIDANCE
20 | 22
Michael Truncale
Enterprise Applications Senior Management Consultant
Michael Truncale has over 17 years of experience working directly with municipalities and government agencies with software implementations. His experience includes business process assessments, project planning, software implementation, application configuration, custom integrations, scoping customization needs, managing multiple teams across disciplines, process documentation, and project management related to enterprise applications.

Having worked for a leading local government enterprise software provider, Michael brings a strong understanding of software implementation, consulting, process knowledge, and functional knowledge, along with customer needs and concerns throughout and post-implementation.

Michael’s in-depth agency process knowledge, technical and functional background, and passion for helping people enable him to easily identify process gaps and quickly provide quantifiable solutions.

Highlights
• Business process gap analysis
• Multi-phased agency-wide software implementations
• Extensive knowledge of business and technical processes pertaining to enterprise applications
• Facilitator between C-level and functional roles
Agency Experience
City of Ann Arbor
City of Bellingham
City of Brentwood
City of Bryan
City of Canton
City of Carlsbad
City of Chico
City of College Station
City of Colleyville
City of East Palo Alto
City of Edmond
City of Emeryville
City of Elk Grove
City of Escondido
City of Gladstone
City of Glendora
City of Golden
City of Greeley
City of Greer
City of Helena
City of Larkspur
City of Medford
City of Norwalk
City of Novato
City of Pearland
City of Pflugerville
City of Piedmont
City of Pinole
City of Poway
City of Prescott
City of Round Rock
City of Sammamish
City of San Bernardino
City of San Clemente
City of San Marcos
City of Tracy
City of Tukwila
City of Vacaville
City of Walla Walla
City of West Covina
City of Westminster
City of Wildwood
Butte County
Glenn County
Hanover County
Lewis and Clark
County
Lincoln County
Manatee County
Mendocino County
Nassau County
Spotsylvania County
Summit County
Yuma County
Town of Castle Rock
Town of Flower
Mound
Town of Parker
Town of Windsor
Town of Woodside

CREDENTIALS, DEGREES,

AND AFFILIATIONS
• Bachelor of Arts in Business
Administration – California State
University of San Marcos
• Project Management Institute
Member – San Diego Chapter

SPECIALTIES
• Project Management
• Implementation Project
Management
• Business Process Reviews
• Current System Needs Analysis
and Improvement
• Project Management Oversight
• Conversion, Interface Planning,
and Implementation Support
• Understanding of public sector
departmental operations and
application systems
• Workflow analysis and mapping
• Business Process Redesign
• System Configuration and
Training
• Test and Go-Live Plan Creation
Michael…the speed of this delivery is
amazing and the deliverable is just so
clean. Well done. I’m looking forward
to working more with you.
—Senior Information Systems
Analyst
CA Municipality
First of all, great work. You are an elite
communicator. It’s honestly your best
skill and to be clear you are top notch in
everything else.
—Senior Information Systems
Analyst
CA Municipality

Land Management System & GIS Maintenance Services

CLIENTFIRST TECHNOLOGY CONSULTING

OPTIMAL TECHNOLOGY GUIDANCE
21 | 22
Toby Soto
Senior GIS Consultant
Toby Soto has 26 years of GIS experience in the local government sector. Toby’s previous GIS positions in local government provide clients with tremendous GIS implementation and integration experience. He understands the link between Business Unit GIS needs, technical requirements, and a practical, cost-effective GIS strategy. Toby is considered an industry expert in GIS Leadership and Management and regularly publishes GIS-related articles and resources. He also hosts monthly webinars addressing GIS managers’ pain points and best practices.

Highlights
• Esri SAG Award with the City of Anaheim GIS
• 2011 Implemented Project ViewFinder Application, saving the City of Anaheim $100,000 per year in repaving cost
• Extensive GIS presentations at Esri’s User Conferences, Meetups, User Groups, Podcasts, and Webinars
• Former Orange County GIS Users Group Coordinator
• Multiple Local Government GIS Implementations and Implementations • Former IT Manager, City of Lake Elsinore
• Former Chief of Technical Information, Wester Riverside County Regional Conservation Authority
Project Experience
• Process Streamlining and Redefinition
• Process Workflow Creation
• Software Configuration and Troubleshooting
• Project Management
• GIS Strategy and Organization Development
• GIS Policy Development
• Open Data Strategy Development
• Business Process Analysis
• Web/Cloud-Based Technology and Workflow
Optimization
• GIS ROI Analysis
• GIS Web App Development
• Citizen Access GIS Web Maps Development
• GIS Migration and Workflow Development
• ETL Conversions
• Cognos and Crystal Reports
• GIS Enterprise
Application Integrations
• Implementation and
Maintenance of Online
GIS Services
• Database Administration
• GIS Budget
Development
• GIS Leadership
Coaching and Mentoring
• Server Management
• Network Analysis and
Maintenance
• CIP Project
Tracking
Agency Experience
City of Anaheim
City of Azusa
City of Brisbane
City of Carlsbad
City of Diamond Bar
City of Farmers Branch
City of Lake Elsinore
City of Larkspur
City of Mountain View
City of Newark
City of Oakland Park
City of Petaluma
City of Pflugerville
City of Piedmont
City of Pinole
City of Rancho
Cucamonga
City of Rancho Mirage
City of River Forest
City of Riverside
City of Salinas
City of San Clemente
City of Sandpoint
City of Simi Valley
City of South Gate
City of Vacaville
City of West Sacramento
City of Windsor
City of Wood Dale
Town of Whittier
Village of
Lincolnwood
Village of Oswego
County of Mendocino
County of Riverside
District
El Toro Water District
Four Rivers Sanitation
Authority
Western Riverside
County Regional
Conservation
Authority
Riverside County
Sheriff’s Department
Des Plaines School
Jurupa School
District
Salt Creek School
District
Disneyland (GIS
Programmer/Analyst
– Water/Electric
utilities)

EDUCATION
• CSU Fullerton

SPECIALTIES
• GIS Strategic Planning
• GIS Implementation
• GIS Integration
• GIS Web Development
• GIS Mobile Applications
• Open Data/ Philanthropy

Land Management System & GIS Maintenance Services

CLIENTFIRST TECHNOLOGY CONSULTING

OPTIMAL TECHNOLOGY GUIDANCE
22 | 22
David W. Krout, CPA (Inactive)
Partner – Enterprise Applications Consulting Practice Leader David Krout has 25 years of experience assisting local governments with a broad scope of information technology needs. He specializes in working with organizations to identify their strategic, organizational, application, and functional requirements to determine which system and/or specific applications are a proper fit for both the agency and the vendor.

David’s unique and diversified background in business management, accounting, and management consulting has allowed him to collaborate with C-level executives and department staff from a practical, businessmanagement perspective to maximize their technology utilization.

Having also worked for a leading local government enterprise software provider, David brings a unique understanding of consulting, client representation, and vendor relationships to the collaboration between the agency and software vendors.

Highlights
• Served on the National Committee for Information Technology for the Institute of Management Accountants
• Former President, Institute of Management Accountants, Inland Empire Chapter
• Former Government IT Consulting Manager for RSM McGladrey, the nation’s fifth-largest CPA and consulting firm
• Featured speaker for the California Society of Municipal Finance Officers (CSMFO), Municipal Information Systems Association of California (MISAC), and Texas Association of Government Information Technology Managers
• Project lead with over 140 public-sector agencies throughout the United States
Agency Experience
City of Batavia
City of Bloomington
City of Brentwood
City of Brisbane
City of Burbank
City of Burlington
City of Carlsbad
City of Camarillo
City of Chino
City of Clovis
City of Colton
City of Corona
City of Coronado
City of Dublin
City of Foster City
City of Gastonia
City of Healdsburg
City of Hemet
City of Highland Park
City of Indio
City of La Habra
City of La Puente
City of Laguna Niguel
City of Lake Forest
City of Larkspur
City of Lomita
City of Manassas
Park
City of Menlo Park
City of Mission Viejo
City of Murrieta
City of Pacifica
City of Palm Desert
City of Palmdale
City of Pelham
City of Piedmont
City of Rancho Mirage
City of Redlands
City of Rialto
City of Riviera Beach
City of Rosemead
City of Salisbury
City of Sandpoint
City of San Gabriel
City of San Jacinto
City of Shawnee
City of Sierra Madre
City of Simi Valley
City of South Gate
City of Tustin
City of West Covina
City of West Des
Moines
County of Butte
County of Buncombe
County of Denton
County of Mendocino
County of Orange
County of Riverside
County of San
Bernardino
Town of Danville
Town of Groton
Town of Hillsborough
Town of Truckee
Village of Glencoe
Village of
Lincolnwood
Village of Northfield
Village of Oswego
Village of River Forest
CA-NV American
Water Works
Association
Castaic Lake Water
Agency
Castro Valley Sanitary
District
Colton Joint Unified
School District
Cucamonga Valley
Water District
Gastonia Water &
Power
Glendale Water and
Power
HIP Housing
Lake Elsinore Unified
School District
Menifee Unified
School District
Mesa Water District
Midpeninsula
Regional Open
Space District
Ramona Municipal
Water District
Rincon del Diablo
Municipal Water
District
Salisbury-Rowan
Utilities
San Bernardino
Municipal Water
Walnut Valley Water
District
West County
Wastewater District
Western Municipal
Water District
Mechoopda Indian
Tribe
Eastern Band of
Cherokee Indian

CREDENTIALS, DEGREES,

AND AFFILIATIONS
• Certified Public Accountant
(CPA) (Inactive)
• Bachelor of Science in
Business Administration
and Accounting – CSU
San Bernardino

SPECIALTIES
• Business Process Reviews
• Applications Requirements
Definition
• Enterprise Applications
Architecture
• Current System Needs
Analysis and
Improvement
• New Software Selection
Assistance
• Technology Master
Planning
• Project Management and
Oversight
• Conversion Assistance and
Planning
• Contract Reviews and
Negotiations
It has been absolutely key to this
project that ClientFirst, especially
Dave, knows the governmental
environment, its limitations, and its
opportunities.
—Director of Administrative
Services
CA Municipality
(Inactive)

CITY COUNCIL
REPORT 9.F.

DATE: JUNE 25, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: FIONA EPPS, ASSISTANT TO THE CITY MANAGER
SUBJECT: LETTER OF SUPPORT FOR AB3259 REGARDING TRANSACTIONS AND

USE TAXES

RECOMMENDATION
Staff recommends that the City Council consider a letter of support for California Assembly Bill (AB) 3259.

BACKGROUND
At its meeting of March 19, 2024 the City Council approved as a future agenda item a letter of support for AB 3259, amended by Assembly Member Wilson. The bill (Attachment B) was introduced in February 2024 and amended in March and April 2024. This bill would authorize the County of Solano or any city therein to impose a transactions and use tax for general purposes, at a rate of no more than 0.5% that, in combination with other transactions and use taxes, would exceed the above-described combined rate limit of 2%, if certain requirements are met. The bill would provide that a transactions and use tax rate imposed pursuant to the bill will not be considered for purposes of the combined rate limit described above. The bill would repeal this authorization on January 1, 2029, if an ordinance proposing the tax has not been approved by that date, as specified.

AB 3259 makes important clarifications to existing law regarding a city or county’s ability to levy a transaction and use tax for general or specific purposes, subject to certain limitations and express voter approval requirements. This bill does not in any way alter the existing requirement that any new or additional transactions and use tax be submitted to the voters for approval.

City staff has drafted a letter of support (Attachment A) to consider for the City Council’s consideration. The letter of support also includes a request for a further amendment to AB 3259 that would allow other cities, such as the City of Pinole, to increase their sales tax limit.

REVIEW AND ANALYSIS

FISCAL IMPACT
There is no direct fiscal impact to the City created by submitting a position letter on this State legislation.

ATTACHMENTS
A. AB3259 Letter of Support draft_2024-06-11
B. AB 3259 Legislative Counsel's Digest

June 11, 2024
The Honorable Lori Wilson
California State Assembly
1021 O Street, Suite 8110
Sacramento, CA 95814
14 Re: Letter of Support for Assembly Bill 3259 (Wilson) Transactions and use taxes Support from the City of Pinole
Dear Senator Skinner,
On behalf of the City of Pinole, I would like to thank you for our inclusion into your legislation and express our strong support of Assembly Bill 3259 (Wilson) Transactions and use taxes.

AB 3259 makes important clarifications to existing law regarding a city or county’s ability to levy a transaction and use tax for general or specific purposes, subject to certain limitations and express voter approval requirements. This bill does not in any way alter the existing requirement that any new or additional transactions and use tax be submitted to the voters for approval.

The City of Pinole is facing a projected structural budget deficit of $1.3 million in its General Fund beginning in the upcoming fiscal year (2024/2025), which will impact the City’s ability to continue to provide essential services to Pinole residents. Further, the City’s twenty-year financial forecast projects annual budget deficits that will grow exponentially over this period if the City is not able to generate additional revenue.

The City conducted research to gauge the community’s support for a revenue measure by polling a statistically representative sample of the community. The polling results showed that 62% of respondents would vote in favor of a half-cent sales tax in the November 2024 election. Service priorities identified by respondents include providing safe, clean drinking water, maintaining 911 emergency response times, keeping public areas and parks healthy, safe, and clean, keeping revenues local, maintaining fire protection and response, and maintaining crime prevention programs.

AB 3259 will provide the City of Pinole the tools needed to generate funding for critical services, provides the option as to when any additional transactions and use tax can be submitted to the voters, and in light of the massive economic impacts placed on local government due to

CITY OF PINOLE
2131 Pear Street Phone: (510) 724-9000
Pinole, CA 94564 FAX: (510) 724-9826
www.ci.pinole.ca.us

the COVID 19 pandemic hangover, a sluggish economy, and other factors, I strongly support your legislation and commend your leadership during such trying time Again, the City of Pinole is grateful for the opportunity to be part of this legislation and commends you for your strong leadership on this critical policy topic.

Thank you for your attention to this matter.

Sincerely,
Maureen Toms
Mayor of Pinole
cc: Senator Nancy Skinner
Assembly Member Buffy Wicks
The Honorable Alex Lee (Via email: [email protected]) Your Cal Cities Regional Public Affairs Manager (via email) League of California Cities (Via email: [email protected])

AMENDED IN ASSEMBLY APRIL 22, 2024
AMENDED IN ASSEMBLY MARCH 21, 2024
CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

ASSEMBLY BILL
NO. 3259
Introduced by Assembly Member Wilson
February 16, 2024
An act to add and repeal Chapter 3.81 (commencing with Section 7294.1) of to Part 1.7 of Division 2 of of, and to repeal Section 7294.1 of, the Revenue and Taxation Code, relating to taxation.

LEGISLATIVE COUNSEL'S DIGEST
AB 3259, as amended, Wilson. Transactions and use taxes: County of Solano.

Existing law authorizes cities and counties, subject to certain limitations and approval requirements, to levy a transactions and use tax for general or specific purposes, in accordance with the procedures and requirements set forth in the Transactions and Use Tax Law, including a requirement that the combined rate of all taxes that may be imposed in accordance with that law in the county not exceed 2%.

This bill would authorize the County of Solano or any city therein to impose a transactions and use tax for general purposes, at a rate of no more than 0.5% that, in combination with other transactions and use taxes, would exceed the above-described combined rate limit of 2%, if certain requirements are met. The bill would provide that a transactions and use tax rate imposed pursuant to the bill will not be considered for purposes of the combined rate limit described above. The bill would repeal this

authorization on January 1, 2029, if an ordinance proposing the tax has not been approved by that date. date, as specified.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Solano.

Digest Key
Vote: majority Appropriation: no Fiscal Committee: no Local Program: no Bill Text

THE PEOPLE OF THE STATE OF CALIFORNIA DO
ENACT AS FOLLOWS:

SECTION 1.

Chapter 3.81 (commencing with Section 7294.1) is added to Part 1.7 of Division 2 of the Revenue and Taxation Code, immediately following Chapter 3.8 (commencing with Section 7293), to read:

CHAPTER 3.81. County of Solano Transactions and Use Tax for General Purposes 7294.1.
(a) Notwithstanding any other law, the County of Solano or any city therein may impose a transactions and use tax for general purposes at a rate of no more than 0.5 percent that would, in combination with all taxes imposed in accordance with Part 1.6 (commencing with Section 7251), exceed the limit established in Section 7251.1 if all of the following requirements are met:
(a)
(1) The County of Solano Board of Supervisors, or the city council of any city therein, Supervisors adopts an ordinance proposing the transactions and use tax by the applicable voting approval requirement.
(b)

(2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance by the applicable voting approval requirement in accordance with the California Constitution. (c)
(3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part

1.6 (commencing with Section 7251)), other than Section 7251.1. (b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limitation established by Section 7251.1.
(c) If an ordinance proposing a transactions and use tax is not approved pursuant to subdivision (a) before January 1, 2029, this section shall remain in effect only until January 1, 2029, and as of that date is repealed.
7294.2.
(a) Notwithstanding any other law, any city within the County of Solano may impose a transactions and use tax for general purposes at a rate of no more than 0.5 percent that would, in combination with all taxes imposed in accordance with Part 1.6 (commencing with Section 7251), exceed the limit established in Section 7251.1 if all of the following requirements are met:
(1) The city council of any city within the County of Solano adopts an ordinance proposing the transactions and use tax by the applicable voting approval requirement. (2) The ordinance proposing the transactions and use tax is submitted to the electorate and is approved by the voters voting on the ordinance by the applicable voting approval requirement in accordance with the California Constitution. (3) The transactions and use tax conforms to the Transactions and Use Tax Law (Part

1.6 (commencing with Section 7251)), other than Section 7251.1. (b) Notwithstanding Section 7251.1, a transactions and use tax rate imposed pursuant to subdivision (a) shall not be considered for purposes of the combined rate limitation established by Section 7251.1.
(c) This section shall not apply to any city within the County of Solano that has not approved, on or before January 1, 2029, an ordinance proposing a transactions and use tax pursuant to subdivision (a).
7294.2.

If, as of January 1, 2029, an ordinance proposing a transactions and use tax has not been approved as required by Section 7294.1, this chapter shall be repealed as of that same date.

SEC. 2.

The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique fiscal pressures relating to transactions and use taxes imposed within the County of Solano.

CITY COUNCIL
REPORT 9.G.

DATE: JUNE 25, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: ROXANE STONE, DEPUTY CITY CLERK
SUBJECT: PLACEMENT OF LIENS FOR DELINQUENT UNPAID WASTE COLLECTION CHARGES FALLING DELINQUENT BETWEEN JANUARY AND APRIL 2024, CONSIDERED AT AN ADMINISTRATIVE HEARING ON JUNE 6, 2024

RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing the placement of liens for the purpose of collecting outstanding payments for garbage collection services pursuant to PMC Section 8.08.110 (b) and (c).

BACKGROUND
Pursuant to Section 8.08 of the Pinole Municipal Code, an administrative hearing was held on June 6, 2024, regarding unpaid garbage collection services that fell delinquent between January and April 2024. No parties attended the hearing to protest the charges. The administrative hearing was the final step in the process to collect the delinquencies, prior to Council approval to place the liens on the subject properties to recover the full amount owed, including delinquent charges and administrative fees.

REVIEW AND ANALYSIS
N/A

FISCAL IMPACT
The City of Pinole receives an administrative recovery charge for each lien at the time of tax settlement or payment of the lien. There are 86 properties on which liens are being imposed, representing a total of $32,923.38 in delinquent service charges. The total administrative recovery fee is $60 per lien; a portion of which is remitted to Contra Costa County. The administrative recovery fees are $5,590.00; the total lien amount including recovery fees are $38,513.38.

Following approval by Council, a revised list will be provided to the City Clerk for recording, removing properties where accounts have been brought current since the publication of this report.

ATTACHMENTS
A. Resolution

RESOLUTION NO. 2024-XX

RESOLUTION OF THE CITY COUNCIL OF PINOLE, CALIFORNIA, PLACING LIENS

ON PROPERTIES SITUATED IN THE CITY OF PINOLE, COUNTY OF CONTRA

COSTA, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS

UNPAID WASTE COLLECTION CHARGES FROM AN ADMINISTRATIVE HEARING CONDUCTED JUNE 6, 2024
WHEREAS, pursuant to the Municipal Code of the City of Pinole, Chapter 8.08, Section 8.08.090, subscription to garbage collection service is required for all premises in the City of Pinole, and the premises described in Exhibit "A" located in the City of Pinole, County of Contra Costa, State of California, were provided with garbage collection services as required by PMC, Chapter 8.08; and
WHEREAS, pursuant to the provisions of Section 8.08.110, the owners of said premises were notified in writing of their requirement to subscribe to and make payment for garbage collection services as provided in said Code Section; and WHEREAS, the owners of the premises failed to make payment for garbage collection services as required (collection charges fell delinquent between January and April 2024); and
WHEREAS, pursuant to the provisions of Section 8.08.110, a hearing was held on June 6, 2024; and
WHEREAS, as a result thereof, the City of Pinole has incurred expenses for delinquent collection charges and administrative costs as enumerated in Exhibit "A"*, which amounts remain unpaid.

NOW THEREFORE BE IT RESOLVED that pursuant to Section 8.08.110 of the Municipal Code of the City of Pinole, the City Council of the City of Pinole does hereby place a lien against said premises for the amounts as described above and as applicable to each specific premise identified as Exhibit "A" attached hereto and, by this reference, incorporated herein; and
BE IT FURTHER RESOLVED that the City Clerk is hereby directed to record this resolution with the Office of the Recorder of Contra Costa County, California.

PASSED AND ADOPTED this 18th day of June 2024, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

I, hereby certify that the foregoing resolution was regularly introduced, passed, and adopted on this 18th day of June 2024.
_________________________________
Heather Bell, CMC
City Clerk
* Exhibit A is not included as an attachment to this resolution that is posted on the City website or disseminated as part of the City Council Agenda Packet. The names of the individuals are confidential until the liens are recorded and become public record.

CITY COUNCIL
REPORT 9.H.

DATE: JUNE 25, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: SANJAY MISHRA, PUBLIC WORKS DIRECTOR
SUBJECT: AWARD CONSTRUCTION CONTRACT FOR PINON TRUNK SEWER CAPACITY PHASE 2 PROJECT (CIP PROJECT NO.: SS2401)

RECOMMENDATION
Staff recommends that the City Council adopt a resolution (Attachment A) to:

1. Accept the bid from the lowest responsive and responsible bidder K.J. Woods Construction, Inc. and award a construction contract (Attachment B) for the Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No.: SS2401, the “Project”);

2. Authorize the City Manager to execute the construction contract with K.J. Woods Construction, Inc. for an amount not to exceed $4,988,048.05;

3. Authorize funds for a construction budget of $4,988,048.05 and project contingency funds for the construction contract in an amount not to exceed $498,805; and

4. Authorize the City Manager or designee to issue any necessary change orders to complete additional work within contract authority for the Project.

5. Authorize the Finance Director to amend the adopted CIP budget (FY2023/24-2027/28) to reallocate funds between the Fiscal Years and the phases of the project to match the above recommendation and the Final Proposed FY2024/25 - 2028/29 Capital Improvement Plan budget.

BACKGROUND
Pinon-1 Project. The Project is the second phase of a multi-year project in the City of Pinole’s Capital Improvement Plan (CIP) to complete the Pinon-1 capacity improvement project (Pinon 1 Project), as identified in the Sanitary Sewer Collection System Master Plan (Master Plan).

The Pinon-1 Project includes replacement of a total of approximately 4,970 LF of existing pipeline along San Pablo Avenue, Roble Avenue, Pinon Avenue, between Pinon Avenue and Orleans Avenue, and along Orleans Avenue to Tennent Avenue. The purpose of the Pinon-1 Project is to increase the capacity of existing sanitary sewer pipeline in order to transport peak wet weather flows (PWWF) and reduce the occurrence and risk of sanitary sewer overflows (SSOs). A § 15282(k) Statutory Exemption for the Pinon-1 Project was adopted by the City Council on December 5, 2023.

Pinon-1 Project Phasing. The design of the Pinon-1 Project and construction of Phase 1 are included in CIP Project No. SS2201 (“SS2201 Project”). The SS2201 Project construction is in progress. Construction of Phase 2 of the Pinon 1 Project is included the new CIP Project No.

SS2401 (“SS2401 Project”, the “Project”).

SS2201 Project Construction Scope and Budget. City Council awarded the construction contract for the SS2201 Project (Pinon-1 Phase 1) on December 5, 2023. During design of Phase 2 of the Pinon-1 Project it was recommended to change the scope of Phase 1 to move a portion of the work from Phase 1 to Phase 2. In May 2024, a change order was executed to revise and reduce the scope of work, terminating Phase 1 construction at the intersection of Orleans Drive and Zoe Court, and reducing the construction contract total amount by $391,232, for a revised not-to-exceed contract amount after the change order of $687,166.

Completion of construction of the SS2201 is anticipated in July, 2024.

SS2401/Phase 2 Construction. This Project is the construction of Phase 2 of the Pinon-1 Project, replacing approximately 4,673 linear feet (LF) along Orleans Drive from Zoe Court west to the end, between Orleans Drive and Pinon Avenue, along Pinon Avenue, Roble Avenue, and San Pablo Avenue from Roble Avenue to east of Sunnyview Drive. The Project includes replacing existing and installing new sanitary sewer pipelines by open-trench, replacing existing sanitary sewer pipelines by pipe bursting, installing new sanitary sewer casing by pilot tube guided auger bore, sawcutting, excavation, backfill, reconnecting laterals, manhole replacement, manhole and sewer pipe abandonment, asphalt concrete and portland cement concrete restoration, CCTV inspection, traffic control, and bypass pumping.

On May 3, 2024, City staff released the bid on www.publicpurchase.com and also posted contract documents on
https://www.ci.pinole.ca.us/city_government/public_works/capital_projects/bids_and_rfps. In accordance with the Public Contract Code, the Notice of Invitation for Bids was published in the West County Times on May 3, 2023 and May 17, 2024, which specified the time and place for opening of sealed bids and described the nature of the Project. Sealed bids were opened on June 4, 2024.

REVIEW AND ANALYSIS
On June 4, 2024, three (3) bids were received and publicly read at 2:00 PM at City Hall. Per the bidding and contract documents, the City award of the contract, if awarded, will be made to the lowest responsive, responsible Bidder whose bid complies with the Contract Documents.

The basis of award for this project is the total cost of the Base Bid Schedule only. The following table summarizes the bids received:

Name of Bidder Total Amount of
Base Bid
K.J. Woods Construction, Inc. $ 4,988,048.05
Ranger Pipelines Incorporated $ 5,384,535.00
Cratus, Inc. $ 7,260,700.00
Lowest Responsive, Responsible Bidder. The total cost of the Base Bid Schedule in the apparent lowest bid submitted by K.J. Woods Construction, Inc. is $4,988,048.05. Staff reviewed K.J. Woods Construction, Inc.’s bid package for compliance with the Contract Documents and recommended the City waive informalities and irregularities in the submitted bid and find the bid responsive. Staff contacted the references for the construction contracts listed in the bid submittal to verify satisfactory completion of the work.

Staff recommends that City Council accept the bid and award the construction contract to K.J.

Woods Construction, Inc. as the lowest responsive and responsible bidder for the Project. Staff also recommends that City Council authorize the City Manager to execute a contract with K.J.

Woods Construction, Inc. in an amount not to exceed $4,988,048.05, for the Project. Staff also recommends that City Council authorize funds for a 10% contingency for the construction contract in an amount not to exceed $498,805. The contingency will allow staff to address any issues that may arise during the work as approved by the City Manager or his designee. Staff also recommends that City Council authorize the City Manager or his designee to issue any necessary change orders to complete additional work within the contract authority for the Project. Staff also recommends that City Council authorize the Finance Director to amend the adopted CIP budget (FY2023/24-2027/28) to reallocate funds between the Fiscal Years and the phases of the project to match the above recommendation and the Final Proposed FY2024/25 - 2028/29 Capital Improvement Plan budget.

Project Labor Agreement. Because this construction contract is in an amount greater than $1,000,000, the Contractor will also be required to execute an Agreement to be Bound to the City’s Project Labor Agreement, see Attachment C.

FISCAL IMPACT
The total budget allocation for SS2401 is $6,810,000. The Finance Director will amend the adopted CIP budget (FY2023/24-2027/28) to reallocate funds between the Fiscal Years and the phases of the project to match the above recommendation and the Final Proposed FY2024/25 - 2028/29 Capital Improvement Plan budget. There is adequate fund balance in the sewer enterprise funds to fund this project.

ATTACHMENTS
A. Resolution
B. Construction Agreement
C. Project Labor Agreement

RESOLUTION NO. 2024 – xx

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PINOLE, COUNTY OF

CONTRA COSTA COUNTY, STATE OF CALIFORNIA, AWARDING A
CONSTRUCTION CONTRACT FOR PINON TRUNK SEWER CAPACITY PHASE 2 PROJECT (CIP PROJECT NO.: SS2401) TO K.J. WOODS CONSTRUCTION, INC. IN AN AMOUNT NOT TO EXCEED $4,988,048.05
WHEREAS, the City of Pinole (“City”) has adopted the FY 2023/24 through FY 2027/28 Capital Improvement Plan (CIP) which includes the Sanitary Sewer Rehabilitation Project (CIP Project # SS2201, the “SS2201 Project”) as a funded project; and
WHEREAS, the SS2201 Project involves various improvements to the Sanitary Sewer collection system, including the Pinon-1 capacity improvement project (“Pinon-1 Project”) as identified in the Sanitary Sewer Collection System Master Plan; and WHEREAS, the Pinon-1 Project design and construction will be phased and completed over multiple years and construction contracts; and WHEREAS, on December 5, 2023, City Council authorized the City Manager to execute the construction contract with APB General Engineering for the “SS-2201 Sanitary Sewer Rehabilitation Project (Phase 1)”, in an amount not to exceed $1,078,398, for construction of Phase 1 of the Pinon-1 Project (“Phase 1 Construction Contract”); and WHEREAS, on December 5, 2023, City Council authorized funds for a 10% contingency for the Phase 1 Construction Contract in an amount not to exceed $107,839.80; and
WHEREAS, on December 5, 2023, City Council authorized the City Manager or their designee to issue any necessary change orders to complete additional work within their contract authority under the Phase 1 Construction Contract; and WHEREAS, during design of Phase 2 of the Pinon-1 Project it was recommended to change the scope of Phase 1 to move a portion of the work from Phase 1 to Phase 2; and
WHEREAS, on April 29, 2024, the Phase 1 Construction Contract was executed with APB General Engineering in an amount not to exceed $1,078,398; and WHEREAS, on May 2, 2024, Contract Change Order No. 1 to the Phase 1 Construction Contract was executed to revise and reduce the scope of work to replace a new total of 554 linear feet (LF), terminating Phase 1 construction at the intersection of Orleans Drive and Zoe Court.

WHEREAS, Contract Change Order No. 1 to the Phase 1 Construction Contract decreased the cost by $391,232, for a revised not-to-exceed contract amount after the change order of $687,166; and
WHEREAS, after Contract Change Order No. 1 to the Phase 1 Construction Contract, the 10% contingency can be reduced by $39,123.20, from $107,839.80 to $68,716.60; and
WHEREAS, the revised proposed FY 2024/25 through FY 2028/29 Capital Improvement Plan reduced the scope and budget for the SS2201 Project to include completion of design of both phases of the Pinon-1 Project and construction of Phase 1; and
WHEREAS, the revised proposed FY 2024/25 through FY 2028/29 Capital Improvement Plan includes the Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No.: SS2401, the “SS2401 Project”) as a funded project for construction of Phase 2 of the Pinon-1 Project; and
WHEREAS, the SS2401 Project includes sanitary sewer pipeline replacement of approximately 4,673 linear feet (LF) along Orleans Drive from Zoe Court west to the end, between Orleans Drive and Pinon Avenue, along Pinon Avenue, Roble Avenue, and San Pablo Avenue from Roble Avenue to east of Sunnyview Drive. The SS2401 Project includes replacing existing and install new sanitary sewer pipelines by open-trench, replacing existing sanitary sewer pipelines by pipe bursting, installing new sanitary sewer casing by pilot tube guided auger bore, sawcutting, excavation, backfill, reconnecting laterals, manhole replacement, manhole and sewer pipe abandonment, asphalt concrete and portland cement concrete restoration, CCTV inspection, traffic control, and bypass pumping; and
WHEREAS, on May 3, 2024, City staff released the bid for the SS2401 Project on www.publicpurchase.com and also posted contract documents on www.ci.pinole.ca.us/ city_government/public_works/capital_projects/bids_and_rfps; and WHEREAS, the Notice of Invitation for Bids for the SS2401 Project was published in the West County Times on May 3, 2024 and May 17, 2024, which specified the time and place for opening of sealed bids and described the nature of the Project; and WHEREAS, on June 4, 2024, at 2:00 p.m., Public Works staff publicly opened and examined the sealed bids for the Project; and
WHEREAS, staff has determined that K.J. Woods Construction, Inc. is the lowest responsive, responsible bidder; and
WHEREAS, construction costs for the SS2401 Project are expected to be primarily incurred in FY 2024/25, but some mobilization and materials procurement costs may be incurred in FY 2023/24; and

WHEREAS, the CIP project budget estimate for the completion of the SS2401 Project (Phase 2 of the Pinon-1 Project) is a total of $6,810,000, including professional services during construction, project administration including railway license and inspection fees, the construction contract, and contingency; and WHEREAS, the current adopted Capital Improvement Plan budget does not have sufficient funds remaining in the SS2201 Project to award the SS2401 Project construction contract.

NOW THERFORE BE IT RESOLVED that the City Council of the City of Pinole hereby declares as follows:

1. K.J. Woods Construction, Inc.’s bid of $4,988,048.05 is found to be lowest responsive, responsible bid and is accepted by the City Council at the unit prices set forth in the bid for the Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No.: SS2401, the “SS2401 Project”). This bid is on file with the Public Works Department and incorporated herein by this reference as though set forth in full.

2. A construction budget of $4,988,048.05 and project contingency funds in the amount of $498,804.85 (10% of the bid) are authorized by the City Council.

3. The City Manager is authorized to execute a construction contract with K.J.

Woods Construction, Inc. in an amount not to exceed $4,988,048.05 for the Project in a form to be approved by the City Attorney.

4. The City Manager or his designee is authorized to issue any necessary change orders to complete additional work within contract authority for the Project.

5. The Finance Director is authorized to amend the adopted CIP budget (FY2023/24- 2027/2028) to reallocate funds from SS2201 to SS2401.

6. The Finance Director is authorized to amend the adopted CIP budget to allocate additional funds for the SS2401 Project. This will authorize a total of $6,810,000 for the SS2401 Project. This is the same as the total amount included in the Final proposed FY 2024/25 through FY 2028/29 Capital Improvement Plan.

PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 18th day of June 2024 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

I hereby certify that the foregoing resolution was regularly introduced, passed, and adopted on the 18th day of June 2024.
____________________________
Heather Bell
City Clerk

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 1 of 15

CONSTRUCTION SERVICES AGREEMENT BETWEEN
THE CITY OF PINOLE AND _________________________
This agreement for Construction Services (“Agreement”) is entered into on ____________, 2024 between the CITY OF PINOLE, a municipal corporation, with offices located at 2131 Pear Street, Pinole, California (“City”) and _________________. (“Contractor”) (together sometimes referred to as the “Parties”).

WITNESSTH:

WHEREAS, Contractor and Contractor’s Surety are providing the bonds attached hereto and incorporated by this reference; and
WHEREAS, City desires to contract with Contractor to perform the construction services detailed in this Agreement; and
In consideration of the mutual covenants and conditions set forth herein, the Parties agree as follows:

1. CONTRACT DOCUMENTS. The Contract Documents referred to herein are incorporated herein by reference as if set forth in full in this Agreement. Work called for in any one Contract Document and not mentioned in another is to be performed and executed as if mentioned in all Contract Documents. The Contract Documents shall include the Notice Inviting Bids, Instructions to Bidders, Bid Forms (including the Bid, Bid Schedule(s), Information Required of Bidder, Bid Bond, and all required certificates, affidavits and other documentation), this Agreement, Performance Bond, Labor and Materials Bond, Maintenance Bond, General Conditions, any Supplementary General Conditions, Special Provisions, Specifications, Drawings, all Addenda, and Change Orders executed pursuant to the provisions of the Contract Documents. The General Conditions shall mean and refer to the current General Conditions of the City which are incorporated herein by this reference as if set forth herein. This Agreement, and the Contract Documents, includes the exhibits to this Agreement, including Exhibit A Minimum Wage Rates (State Prevailing Wage Rates from Bid Documents.)

2. AGREEMENT CONTROLS. In the event of a conflict between the terms and conditions as set forth in this Agreement and the terms and conditions set forth in other Contract Documents, the terms and conditions set forth in this Agreement shall prevail. Unless otherwise specifically provided herein, all works and phrases defined in the General Conditions shall have the same meaning and intent in this Agreement.

3. INDEPENDENT CONTRACTOR. It is specifically understood and agreed by all parties hereto that Contractor is, for the purposes of this Agreement, an independent contractor and not an employee of the City. Accordingly, Contractor shall not be deemed the City's employee for any purpose whatsoever.

Contractor shall not incur or have the power to incur any debt, obligation or liability whatever for or against the City.

4. ASSIGNMENT. This Agreement may not be assigned by Contractor, in whole or in part, without prior written consent of the City.

5. TERMINATION. This Agreement may not be canceled by the City at any time without penalty upon thirty (30) days' written notice. In the event of termination without fault of Contractor, the City shall pay Contractor for all services rendered prior to date of termination, and such payment shall be in full satisfaction of all services rendered hereunder.

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 2 of 15

6. SCOPE OF CONTRACT. Contractor agrees to furnish all tools, equipment, apparatus, facilities, labor and material and transportation necessary to perform and complete in a good and workman like manner to the satisfaction of the City, all the work called for, and in the manner designated in, and in strict conformity with the Project entitled:

Project Name: Pinon Trunk Sewer Capacity Phase 2 Project CIP Project No.: SS2401
Federal Project No.: Not applicable

7. CONTRACT AMOUNT AND PAYMENTS. The City agrees to pay and Contractor agrees to accept, in full payment for the above work, ____________________________($____________) as stipulated sum price which Contractor bid in its Bid Form, subject to additions and deductions by Change Order(s) as provided in the General Conditions. Contractor is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes.

8. PROGRESS AND FINAL PAYMENTS. Progress and final payments shall be in accordance with the General Conditions.

9. RETENTION OF SUMS CHARGED AGAINST CONTRACTOR. When, under the provisions of this Contract, the City is authorized to charge any sum of money against Contractor, the City may deduct and retain the amount of such charge from the amount of the next succeeding progress estimate, or from any other moneys due or that may become due to the Contractor from the City. If, on completion or termination of the Contract, sums due contractor are insufficient to pay the City’s charges against Contractor, the City shall have the right to recover the balance from Contractor or his sureties.

10. TIME OF COMPLETION. All work within railroad right-of-way shall be completed within fifty (50) working days from day work starts within the railroad right-of-way. The entire work shall be completed to the satisfaction of the City within one hundred eighty (180) working days, commencing on the date of issuance of the Notice to Proceed. Failure to complete the entire work by the completion date and in the manner provided for by the Contract Documents shall subject Contractor to liquidated damages as hereinafter provided in this Agreement. Time is of the essence in these Contract Documents.

11. PROJECT SITE. Contractor shall perform the Services in such a manner as to cause a minimum of interference with City’s operations and the operations of other contractors at each Project site and to protect all persons and property thereon from damage or injury. Upon completion of the Services at a Project site, Contractor shall leave such Project site clean and free of all tools, equipment, waste materials and rubbish. Each Project site may include all buildings, offices, and other locations where Services are to be performed, including any access roads. Contractor shall be solely responsible for the safe transportation and packing in proper containers and storage of any equipment required for performing the Services, whether owned, leased or rented. City will not be responsible for any such equipment which is lost, stolen or damaged or for any additional rental charges for such equipment. Equipment left or stored at a Project site, with or without permission, is at Contractor’s sole risk. City may assume that anything left on the work site an unreasonable length of time after said work is completed has been abandoned. Any transportation furnished by City shall be solely as an accommodation and City shall have no liability therefore. Contractor acknowledges and agrees that it shall assume the risk and is solely responsible for its use of any City owned equipment and property provided by City for the performance of Services. City shall have no liability to Contractor therefore. In addition, Contractor further acknowledges and agrees that it shall assume the risk and is solely responsible for its owned, non-owned and hired automobiles, trucks or

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 3 of 15 other motorized vehicles as well as any equipment, tolls, or other property which is utilized by Contractor on each Project site.
12 INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Contractor, at its own cost and expense, shall procure the types and amounts of insurance listed below and maintain that insurance throughout the term of this Agreement. The cost of such insurance shall be included in the Contractor’s bid or proposal. Contractor shall by fully responsible for the acts and omissions of its subcontractors or other agents.

12.1 Workers’ Compensation. If Contractor employs any person, Contractor shall maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Contractor in the amount required by applicable law. The requirement to maintain Statutory Workers’ Compensation and Employer’s Liability Insurance may be waived by the City upon written verification that Contractor is a sole proprietor and does not have any employees and will not have any employees during the term of this Agreement.

California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, the Contractor hereby certifies as follows:
"I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker's compensation or to undertake selfinsurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract."

12.2 General Liability and Automobile Liability Insurance.

12.2.1 General requirements. Contractor, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than TWO MILLION DOLLARS ($2,000,000) per occurrence and FOUR MILLION DOLLARS ($4,000,000) aggregate, combined single limit coverage for risks associated with the work contemplated by this Agreement.

12.2.2 Minimum scope of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (most recent edition) covering comprehensive General Liability on an “occurrence” basis. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 (most recent edition) covering any auto (Code 1), or if Contractor has no owned autos, hired (code 8) and non-owned autos (Code 9). No endorsement shall be attached limiting the coverage.

12.2.3 Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
a. The Commercial General and Automobile Liability Insurance shall cover on an occurrence basis.

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 4 of 15 b. City, its officers, officials, employees, agents, and volunteers shall be covered as additional insureds for liability arising out of work or operations on behalf of the Contractor, including materials, parts, or equipment furnished in connection with such work or operations; or automobiles owned, leased, hired, or borrowed by the Contractor. Coverage can be provided in the form of an endorsement to the Contractor’s insurance at least as broad as CG 20 10 11 85, or both CG 20 10 10 01 and CG 20 37 10 01.
c. For any claims related to this Agreement or the work hereunder, the Contractor’s insurance covered shall be primary insurance as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Contractor’s insurance and non-contributing. d. The policy shall cover inter-insured suits and include a “separation of Insureds” or “severability” clause which treats each insured separately. e. Contractor agrees to give at least 30 days prior written notice to City before coverage is canceled or modified as to scope or amount.

12.3 General Liability/Umbrella Insurance. The coverage amounts set forth above may be met by a combination of underlying and umbrella policies so long as in combination the limits equal or exceed those stated.

12.4 Professional Liability Insurance.

12.4.1 General requirements. Contractor, at its own cost and expense, shall maintain for the period covered by this Agreement professional liability insurance for licensed professionals performing work pursuant to this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000) per occurrence or claim covering the Contractor’s errors and omissions.

12.4.2 Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
a. The retroactive date of the policy must be shown and must be before the date of the Agreement.
b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the Agreement or the work.
c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this Agreement, Contractor must provide extended reporting coverage for a minimum of five (5) years after completion of work under this Agreement.
d. A copy of the claim reporting requirements must be submitted to the City prior to the commencement of any work under this Agreement.

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 5 of 15

12.5 All Policies Requirements.

12.5.1 Acceptability of insurers. All insurance required by this section is to be placed with insurers with a Bests' rating of no less than A:VII.

12.5.2 Verification of Coverage. Prior to beginning any work under this Agreement, Contractor shall provide City with (1) certified Certification of Liability Insurance that demonstrates compliance with all applicable insurance provisions contained herein; and (2) additional insured endorsement as required for the general commercial and automobile liability policies.

12.5.3 Notice of Reduction in or Cancellation of Coverage. A certified endorsement must be attached to all insurance obtained in accordance with this Agreement stating that coverage shall not be suspended, voided, canceled by either party, or reduced in coverage or in limits, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. In the event that any coverage required by this section is reduced, limited, cancelled, or materially affected in any other manner, Contractor shall provide written notice to City at Contractor’s earliest possible opportunity and in no case later than ten (10) working days after Contractor is notified of the change in coverage.

12.5.4 Additional insured; primary insurance. A certified endorsement at least as broad as Insurance Services Office form number CG 20 10 (11/85 ed.) shall be attached to all policies stating that the City and its officers, employees, agents, and volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of activities performed by or on behalf of Contractor, including the insured’s general supervision of Contractor; products and completed operations of Contractor, as applicable; premises owned, occupied, or used by Contractor; and automobiles owned, leased, or used by the Contractor in the course of providing services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or volunteers.

A certified endorsement shall be attached to all policies stating that coverage is primary insurance with respect to the City and its officers, officials, employees and volunteers, and that no insurance or self-insurance maintained by the City shall be called upon to contribute to a loss under the coverage.

12.5.5 Deductibles and Self-Insured Retentions. Contractor shall disclose to and obtain the approval of City for the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement.

Insurance obtained by the Contractor shall have a self-insured retention or deductible of no more than ONE HUNDRED THOUSAND DOLLARS ($100,000).

During the period covered by this Agreement, only upon the prior express written authorization of Contract Administrator, Contractor may increase such deductibles or self-insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Contractor

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 6 of 15 procure a bond, guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them.

12.5.6 Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.

12.5.7 Variation. The City may approve a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that the City’s interests are otherwise fully protected.

12.5.8 Wasting Policies. No policy required herein shall include a “wasting” policy limit (i.e. limit that is eroded by the cost of defense).

12.5.9 Excess Insurance. If Contractor maintains higher insurance limits than the minimums specified herein, City shall be entitled to coverage for the higher limits maintained by the Contractor.

12.5.10 Remedies. In addition to any other remedies City may have if Contractor fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Contractor’s breach:
• Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement; • Order Contractor to stop work under this Agreement or withhold any payment that becomes due to Contractor hereunder, or both stop work and withhold any payment, until Contractor demonstrates compliance with the requirements hereof; and/or
• Terminate this Agreement.

12.6 Waiver of Subrogation. Contractor agrees to waive subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers' Compensation policy shall be endorsed with a waiver of subrogation in favor of City for all work performed by Contractor, its employees, agents and subcontractors.
13 NO WAIVER OF REMEDIES. Neither the inspection by the City or its agents, nor any order or certificate for the payment of money, nor any payment for, nor acceptance of the whole or any part of the work by the City, nor any extensions of time, nor any position taken by the City or its agents shall operate as a waiver of any provision of this Agreement or of any power herein reserved to the City or any right to damages herein provided, nor

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 7 of 15 shall any waiver of any breach of the Agreement be held to be a waiver of any other or subsequent breach. All remedies provided in this Agreement shall be taken and construed as cumulative; that is, in addition to each and every other remedy herein provided, and the City shall have any and all equitable and legal remedies which it would in any case have. 14 DETERMINATION OF DAMAGES. The actual fact of the occurrences of damages and the actual amount of the damages which the City would suffer if the work were not completed within the specified times set forth are dependent upon many circumstances and conditions and, it is impracticable and extremely difficult to fix the actual damages.

Damages which the City would suffer in the event of delay include loss of the use of the project, and, in addition, expenses of prolonged employment of an architectural and engineering staff; costs of administration, inspection, and supervision; and the loss suffered by the public within the City by reasons of the delay in the completion of the project to serve the public at the earliest possible time. Accordingly, the parties hereto agree, and by execution of this Agreement, Contractor acknowledges that he/she understands, has ascertained and agrees, that the amounts set forth herein as liquidated damages shall be presumed to be that amount of damages sustained by the failure of Contractor to complete the entire work within the times specified. 15 LIQUIDATED DAMAGES. The amount of the liquidated damages to be paid by Contractor to the City for failure to complete the entire work in the specified number of Working or Calendar Days (as extended, if applicable) will be:

1. Work within Railroad Right-of Way forty-five hundred dollars ($4,500)

2. Final Completion of Entire Project two thousand dollars ($2,000) for each Calendar Day continuing to the time at which the work is completed. Such amount is the actual cash value agreed upon as the loss to the City resulting from Contractor's delay.
16 TERMINATION AFTER ALLOTED WORKING OR CALENDAR DAYS. In addition to any rights it may have, the City may terminate this Contract at any time after the allotted number of Working or Calendar Days as adjusted by any extensions of time for excusable delays that may have been granted. Upon such termination, Contractor shall not be entitled to receive any compensation for services rendered by him before or after such termination, and he shall be liable to the City for liquidated damages for all periods of time beyond such termination date until the work is completed. 17 CONTRACT BANKRUPT. If Contractor should commence any proceeding under the Bankruptcy Act, or if Contractor be adjudged a bankrupt, or if Contractor should make any assignment for the benefit of creditors, or if a receiver should be appointed on account of Contractor's insolvency, then the City may, without prejudice to any other right or remedy, terminate the Contract and complete the work by giving notice to Contractor and his surety according to the provisions of Section 1-15 of the General Conditions. The City shall have the right to complete, or cause completion of the work, all as specified in the General Provisions of the Standard Specifications.

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 8 of 15 18 PERFORMANCE AND PAYMENT BONDS. The Contractor shall, before beginning said work, file two bonds with the City, each made payable to the City. These bonds shall be issued by a Surety Company authorized to do business in the State of California, and shall be maintained during the entire life of the Contract at the expense of the Contractor. a) One bond shall be in the amount of one hundred percent (100%) of the Contract and shall guarantee the Faithful Performance of the Contract. b) The second bond shall be the Payment Bond required by Part 4, Title 15, Chapter 7, Division Three of the Civil Code of the State of California and shall be in the amount of one hundred percent (100%) of the Contract.

Any alteration or alterations made in any provision of this Contract shall not operate to release any surety from liability on any bond required hereunder and the consent to make such alterations is hereby given, and any surety on said bonds hereby waives the provisions of Section 2819 of the Civil Code.

Bonds shall only be accepted from an “Admitted surety insurer,” which means an insurer to which the Insurance Commissioner has issued a certificate of authority to transact surety insurance in this state. Contractor must submit the original, or a certified copy, of the unrevoked appointment, power of attorney, bylaws or other instrument entitling or authorizing the person who executed the bond to do so.

All bonds submitted shall include the following:

1. Full name and address of the Contractor Surety, and the City;

2. Contract Date;

3. Exact Contract Sum;

4. Project Name and Address;

5. Signature of the Contractor

6. Corporate Seal, if applicable;

7. Signature of Authorized Surety Representative;

8. Notarization of the Contractor and Surety;

9. Power of Attorney; and

10. Local contact for surety, with name, phone number, and address to which legal notices may be sent.
19 SUBSTITUTION OF SECURITIES OF MONEY WITHELD. At any time prior to final payment, Contractor may request substitution of securities for any money withheld by the City to ensure performance of the Contract. At the expense of the Contractor, securities equivalent to the money withheld may be deposited with the City or with an approved financial institution as escrow agent according to a separate Security Agreement.

Securities eligible for substitution shall include those listed in Section 16430 of the Government Code or bank or savings and loan certificates of deposit. 20 GENERAL LIABILITY OF THE CONTRACTOR. Unless otherwise provided in the Contract Documents, the Contractor shall provide and pay for all labor, materials, equipment, tools, construction equipment and machinery, water, light, heat, utilities, transportation and other facilities and services necessary for the execution and completion of the Work in accordance with the Contract Documents and any applicable code or

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 9 of 15 statute, whether or not specifically described herein, as long as same is reasonably inferable therefrom as being necessary to produce the intended results, whether temporary or permanent, and whether or not incorporated or to be incorporated in the Work. The mention of any specific duty or liability of Contractor and, any reference to any specific duty or liability shall be construed to be for the purpose of explanation. 21 AUTHORITY OF THE CITY. The City will decide all questions regarding the quality and acceptability of materials furnished, work performed, and rate of progress of the Work.

The City will decide all questions regarding the interpretation and fulfillment of the Contract on the part of the Contractor, and all questions as to the rights of different prime contractors involved with the Work. The City will determine the amount and quality of the Work performed and materials furnished for which payment is to be made under the Contract.

The City will administer its authority through a duly designated representative identified at the pre-construction conference. The Contractor and City’s designated representative (the Owner’s Representative) shall make good faith attempts to resolve disputes that arise during the performance of the Work.

Any order given by the City not otherwise required by the Contract to be in writing shall be given or confirmed by the City in writing at the Contractor’s request. Such request shall state the specific subject of the decision, order, instruction, or notice and, if it has been given orally, its date, time, place, author and recipient.

Any plan or method suggested to the Contractor by the ENGINEER, or any of the Owner’s Representative, but not specified or required in writing, if adopted or followed in whole or in part by the Contractor, shall be used at the risk and responsibility of the Contractor. The City assumes no responsibility.
22 RESPONSIBILITY OF THE CONTRACTOR The Work shall be under the Contractor's responsible care and charge until completion and final acceptance, and the Contractor shall bear the entire risk of injury, loss, or damage to any part by any cause. The Contractor shall rebuild, repair, restore, and make good all injuries, losses or damage to any portion of the Work or the materials occasioned by any cause, and shall bear the entire expense.

The mention herein of any specific duty or responsibility imposed upon the Contractor shall not be construed as a limitation or restriction of any other responsibility or duty imposed upon the Contractor by the Contract, said reference being made herein merely for the purpose of explaining the specific duty or responsibility.

The Contractor shall do all of the work and furnish all labor, materials, tools, equipment, and appliances, except as otherwise herein expressly stipulated, necessary or proper for performing and completing the Work herein required, including any change order work or disputed work directed by the City in conformity with the true meaning and intent of the Contract Documents, within the time specified.

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 10 of 15 23 INDEMNIFICATION AND CONTRACTOR’S RESPONSIBILITIES. To the fullest extent permitted by law, the Contractor shall indemnify, defend with counsel acceptable to the City, and hold harmless the City, its officers, officials, employees, agents, and volunteers from and against any and all losses, claims, demands, damages, costs, expenses, attorney’s fees, or liability of every nature arising out of or in any way connected with the performance or attempted performance of the provisions of this Contract, caused in whole or in part by any negligent or willful act or omission of the Contractor, its officers, employees, or agents, or anyone directly or indirectly acting on behalf of the Contractor, regardless of whether caused in part by a party indemnified hereunder. Nothing contained in the foregoing indemnity provisions shall be construed to require the Contractor to indemnify the indemnified party in contravention of Section 2782 of the Civil Code for the active or sole negligence or willful misconduct of that indemnified party To the fullest extent permitted by law, the Contractor’s duty to defend shall extend, without limitation, to any suit or action founded upon any losses, claims, demands, damages, costs, expenses, attorney’s fees, or liability of every nature arising out of or in any way connected with the performance or attempted performance of the provisions hereof, or in any way arising out of or connected with this Contract.

The defense and indemnity obligations expressly extend to and include any and all claims, demands, damages, costs, expenses, or liability occasioned as a result of damages to adjacent property caused by the conduct of the Work.

The defense and indemnity obligations expressly extend to and include any and all claims, demands, damages, costs, expenses, or liability occasioned as a result of the violation by the Contractor, the Contractor’s agents, employees, or independent contractors, Subcontractors or suppliers of any provisions of federal, State or local law, including applicable administrative regulations.

The defense and indemnity obligations also expressly extend to and include any claims, demands, damages, costs, expenses, or liability occasioned by injury to or death of any person, or any property damage to property owned by any person while on or about the site or as a result of the Work, whether such persons are on or about the site by right or not, whenever the Work is alleged to have been a contributing cause in any degree whatsoever.

In claims against any person or entity herein indemnified that are made by an employee of the Contractor or an employee of any of the Contractor’s agents, independent contractors, Subcontractors or suppliers, a person indirectly employed by the Contractor or by any of the Contractor’s agents, independent contractors, Subcontractors or suppliers, or anyone for whose acts the Contractor or any of the Contractor’s agents, independent contractors, Subcontractors or suppliers may be liable, the defense and/or indemnification obligation herein shall not be limited by any limitation on amount or type of damages, compensation, or benefits payable by or for the Contractor or the Contractor’s agents, independent contractors, Subcontractors or suppliers under workers’ compensation acts, disability acts, or other employee benefit acts.

The indemnification obligations herein shall not be limited by any assertion or finding that the person or entity indemnified is liable by reason of a non-delegable duty.

The indemnities set forth herein shall not be limited by the insurance requirements set forth in the Contract Documents.

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 11 of 15 The indemnification requirements herein set forth shall extend to claims occurring after this Contract is terminated as well as while it is in force.

In the event the Contractor enters into any agreement with the owners of any adjacent property to enter upon or adjacent to such property for the purpose of performing this Contract, the Contractor shall fully indemnify, defend and save harmless such person, firm, or corporation, State or other governmental agency which owns or has any interest in the adjacent property. The form and content of the indemnification agreement shall be approved by the City prior to commencement of any work on or about such property. The Contractor also shall indemnify the City and other indemnities identified in this Section as provided in the Contract. These provisions shall be in addition to any other requirements of the owners of adjacent property. 24 LEGAL REQUIREMENTS.

24.1 Governing Law. The laws of the State of California shall govern this Agreement.

24.2 Compliance with Applicable Laws. Contractor and any subcontractors shall comply with all laws applicable to the performance of the work in connection with this Agreement.

24.3 Licenses and Permits. Contractor represents and warrants to City that Contractor and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions.

24.4 Nondiscrimination and Equal Opportunity. In compliance with federal, state and local laws, Contractor shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Contractor under this Agreement.

24.5 Work Requiring Payment of Prevailing Wages. The City affirmatively identifies this project as a “public work” as that term is defined by California Labor Code § 1720, and the project is, therefore, subject to prevailing wages under California Labor Code § 1771. In accordance with California Labor Code § 1771, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which these services are to be performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed as provided in the California Labor Code shall be paid to all workers engaged in performing the services under this Agreement. Contractor and its subcontractors shall fully comply with all the provision of the California Labor Code governing the performance of pubic works contracts including, but not limited to, payment of prevailing wages, limitations on time worked, compliance with apprentice requirements, maintenance of payroll records, posting of wages at job site and prohibitions against discrimination.

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 12 of 15

24.6 Unfair Competition. The following provision in included in this agreement pursuant to California Public Contract Code §7103.5.
"In entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to a public works contract, the contractor or subcontractor offers and agrees to assigning to the awarding body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the awarding body tenders final payment to the contractor, without further acknowledgment by the parties."

24.7 INCIDENTAL BENEFICIARIES. It is expressly understood and agreed that the enforcement of these terms and conditions shall be reserved to the City and Contractor.

Nothing contained in the Agreement shall give or allow any claim or right of action whatsoever by any third person. It is the express intent of the City and Contractor that any such person or entity, other than the City and Contractor, receiving services or benefits under this Agreement shall be deemed an incidental beneficiary. 25 MODIFICATION.

25.1 Amendments. Any modification or amendment of any provision of this agreement shall be in writing and must be executed by both parties hereto.

25.2 Assignment. Contractor may not assign this Agreement or any interest therein without the prior written approval of the City.

25.3 Subcontracting. Contractor shall not subcontract any portion of the performance contemplated and provided for herein without prior written approval of the City. Where written approval is granted by the City, Contractor shall supervise all work subcontracted by Contractor in performing the Services; shall be responsible for all work performed by a subcontractor as if Contractor itself had performed such work; the subcontracting of any work to subcontractors shall not relieve Contractor from any of its obligations under this Agreement with respect to the Services; and Contractor is obligated to ensure that any and all subcontractors performing any Services shall be fully insured in all respects and to the same extent as set forth under Section 5, to City’s satisfaction.

25.4 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Contractor shall survive the termination of this Agreement.

25.5 Options upon Breach by Contractor. If Contractor materially breaches any of the terms of this Agreement, City’s remedies shall include, but not be limited to, the following:

25.5.1 Immediately terminate the Agreement;

25.5.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Contractor in accordance with this Agreement;

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 13 of 15

25.5.3 Retain a different Contractor to complete the Services not finished by Contractor; or

25.5.4 Charge Contractor the difference between the costs to complete the work at the time of breach and the amount that City would have paid Contractor if Contractor had completed the Work.
26 KEEPING AND STATUS OF RECORDS.

26.1 Records Created as Part of Contractor’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Contractor prepares or obtains in accordance with this Agreement and that relate to the matters covered under the terms of this Agreement shall be the property of the City.

26.2 Contractor’s Books and Records. Contractor shall maintain any and all records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the Contractor to this Agreement.

26.3 Confidential Information and Disclosure. During the term of this Agreement, either party (the “Disclosing Party”) may disclose confidential, proprietary or trade secret information (the “Information”), to the other party (the “Receiving Party”). The Receiving Party shall hold the Disclosing Party’s Information in confidence and shall take all reasonable steps to prevent any unauthorized possession, use, copying, transfer or disclosure of such Information. Contractor understands that City is a public City and is subject to the laws that may compel it to disclose information about Contractor’s business. 27 MISCELLANEOUS PROVISIONS.

27.1 Attorneys’ Fees. If a Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that Party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

27.2 Venue. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Contra Costa or in the United States District Court for the Northern District of California.

27.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect.

27.4 Binding. This Agreement shall bind and inure to the heirs, devisees, assignees and successors in interest of Contractor and to the successors in interest of the City in the same manner as if such parties had been expressly named herein.

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 14 of 15

27.5 Survivorship. Any responsibility of Contractor for warranties, insurance, indemnity, record keeping or compliance with laws with respect to this Agreement shall not be invalidated due to the expiration, termination or cancellation of this Agreement.

27.6 No Implied Waiver of Breach. In the event that either the City or Contractor shall at any time or times waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or any other covenant, condition or obligation. Waiver shall not be deemed effective until and unless signed by the waiving party.

27.7 Contract Administration. This Agreement shall be administered by the City Manager or her designee, who shall act as the City’s representative. All correspondence shall be directed to or through the representative.

27.8 Notices. Any written notice to Contractor shall be sent to:
[INSERT CONTRACTOR CONTACT INFORMATION]
Any written notice to City shall be sent to:

Neil Gang, Interim City Manager
City of Pinole
2131 Pear Street
Pinole, CA 94564

27.9 Integration; Incorporation. This Agreement, including all the exhibits attached hereto, represents the entire and integrated agreement between City and Contractor and supersedes all prior negotiations, representations, or agreements, either written or oral. All exhibits attached hereto are incorporated by reference herein.

27.10 Authority to Execute. The person or persons executing this Agreement on behalf of the parties hereto warrants and represents that he/she/they has/have the authority to execute this Agreement on behalf of their entity and has/have the authority to bind their party to the performance of its obligations hereunder.

27.11 Counterparts. This agreement may be executed in one or more counterparts, each of which shall be deemed an original, and will become effective and binding upon the parties at such time as all of the signatories hereto have signed a counterpart of this Agreement.

All counterparts so executed shall constitute one Agreement binding on all of the parties hereto, notwithstanding that all of the parties are not signatory to the same counterpart.

The Parties have executed this Agreement as of the date signed by the City.

City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401) City of Pinole Construction Services Agreement Page 15 of 15

CITY OF PINOLE CONTRACTOR
Date: Date:
________________________________ ________________________________ Neil Gang [Insert Name of Signatory]
Interim City Manager [Insert Name of Contractor]
Dated: ___________________________ Dated: ___________________________ Attest:
__________________________
Heather Bell
City Clerk
Dated: ___________________________
Approved as to Form:
____________________________
Eric Casher
City Attorney
Dated: ___________________________

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City of Pinole
Pinon Trunk Sewer Capacity Phase 2 Project (CIP Project No. SS2401)

EXHIBIT A
Minimum Wage Rates
(State Prevailing Wage Rates from Bid Documents)

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Project Labor Agreement – City of Pinole

AGREEMENT TO BE BOUND
Date:

Neil Gang, Interim City Manager
City of Pinole
2131 Pear Street
Pinole, CA 94564
Re: Project Labor Agreement for the City of Pinole
Agreement to be Bound
Dear Mr. Gang:

The undersigned confirms that it agrees to be a party to and bound by the Project Labor Agreement for the City of Pinole (“Agreement”) as such Agreement may, from time to time, be amended by the parties or interpreted pursuant to its terms.

By executing this Agreement to be Bound, the undersigned subscribes to, adopts and agrees to be bound by the written terms of the legally established trust fund documents as set forth in Section 8.1 of the Agreement, as they may from time to time be amended, specifying the detailed basis upon which contributions are to be made into, and benefits made out of, such trust funds, and ratifies and accepts the trustees appointed by the parties to such trust funds.

The undersigned agrees to execute a separate subscription agreement(s) for such trust funds when such trust fund(s) require(s) such document(s).

The obligation to be a party to and bound by the Agreement shall extend to all work covered by the Project Labor Agreement for the City of Pinole undertaken by the undersigned. The undersigned shall require all of its subcontractors, of whatever tier, to become similarly bound for all their work within the scope of the Agreement by signing an identical Agreement to be Bound.

This letter shall constitute a subscription agreement, to the extent of the terms of the letter.

CONTRACTOR/SUBCONTRACTOR:

California Contractor State License No. or Motor Carrier (CA) Permit No.:

Name of Authorized Person (print):

Signature of Authorized Person:

Title of Authorized Person:

Telephone Number of Authorized Person:

Address of Authorized Person:

State Public Works Registration Number:
154905\1411604

CITY COUNCIL
REPORT 9.I.

DATE: JUNE 25, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: STACY SHELL, HUMAN RESOURCES DIRECTOR
SUBJECT: ADOPT A RESOLUTION APPROVING A REVISED COMPENSATION AND

BENEFITS PLAN FOR MANAGEMENT AND CONFIDENTIAL EMPLOYEES

RECOMMENDATION
City staff recommends that the City Council adopt a resolution (Attachment A) approving a revised Compensation and Benefits Plan for Management and Confidential Employees.

BACKGROUND
The City Council adopted the City of Pinole Compensation and Benefits Plan for Management and Confidential Employees (the “Plan”) on November 17, 2020. On numerous occasions since that adoption date, the City Council has approved revisions to the Plan which provided salary and employee benefit modifications, in addition to classification plan changes as they relate to the work performed by this employee group. Staff is now recommending some additional revisions to the Plan.

REVIEW AND ANALYSIS
City staff has determined that additional modifications to the Plan are necessary to address changes in the City’s compensation and benefit matters. Staff recommends that the City Council adopt a resolution (Attachment A) approving a revised version of the Plan (Exhibit A to Attachment A). A redlined copy of the proposed revised version of the Plan is attached as Attachment B.

The proposed revisions to the Plan are as follows:
• Section 12 (Sick Leave – Unused Sick Leave Upon Retirement) – Provide eligible employees with the option to cash out 25% of sick leave accrual upon retirement in lieu of extending years of service credit with CalPERS.
• Section 20 (Section 125 Flexible Benefit Plan) – In accordance with recent IRS regulations, reduce the annual City contribution from $1200 to $500 to a health care reimbursement flexible spending account for medical plan subscribers.

• Exhibit “A” (Management Group Salary Ranges)

1. Update the salary ranges of all Management and Confidential classifications to reflect a 4% cost of living adjustment (COLA) effective July 1, 2024.

FISCAL IMPACT
The total cost of the provisions for this revised Compensation and Benefits Plan for Management and Confidential Employees for FY 2023/24 and FY 2024/25 is estimated at $283,324. However, the adopted FY 2024/25 Operating and Capital Budget already included a 4% COLA, so the net additional total cost is estimated at $106,438.

The total costs are spread over various City funds, depending on each employee’s staffing allocation.

ATTACHMENTS
A. Resolution
B. Exhibit A - Management Compensation Benefit Plan (June 18 2024) FINAL C. Management Compensation Benefit Plan (6-18-24) - REDLINE

ATTACHMENT A
RESOLUTION NO. 2024-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PINOLE, COUNTY OF

CONTRA COSTA, STATE OF CALIFORNIA, APPROVING A REVISED

COMPENSATION AND BENEFITS PLAN FOR MANAGEMENT AND CONFIDENTIAL

EMPLOYEES
WHEREAS, the City Council adopted the City of Pinole Compensation and Benefits Plan for Management and Confidential Employees (the “Plan”) on November 17, 2020; and
WHEREAS, since the adoption date, the City Council has approved previous revisions to the Plan which provided salary and employee benefit modifications, in addition to classification plan changes as they relate to the work performed by this employee group; and
WHEREAS, City staff is proposing further revisions to the Plan to provide a sick leave accrual cash out to eligible employees upon retirement and reduce the City contribution to a flexible spending account for medical plan subscribers; and WHEREAS, City staff is proposing revisions to the Plan’s salary ranges to implement a 4% cost of living adjustment effective July 1, 2024; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Pinole does hereby approve the revised City of Pinole Compensation and Benefits Plan for Management and Confidential Employees, attached hereto as Exhibit A and incorporated herein by this reference, effective June 18, 2024.

PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 18th day of June 2024 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

I hereby certify that the foregoing resolution was regularly introduced, passed, and adopted on the 18th day of June 2024.
____________________
Heather Bell, CMC
City Clerk

CITY OF PINOLE

COMPENSATION AND BENEFITSPLAN
FOR

MANAGEMENT AND CONFIDENTIAL

EMPLOYEES
Effective Date November 17, 2020
Revised June 18, 2024
Exhibit A

2 CITY OF PINOLE COMPENSATION AND BENEFITS PLAN

MANAGEMENT AND CONFIDENTIAL EMPLOYEES
Table of Contents
CITY OF PINOLE COMPENSATION AND BENEFITS PLAN............................................... 2 CITY OF PINOLE........................................................................................................................ 4 ARTICLE ONE: INTRODUCTION........................................................................................................ 4 SECTION 1. ESTABLISHMENT AND PURPOSE.................................................................... 4 SECTION 2. ADMINISTRATION OF THE PLAN.................................................................... 4 SECTION 3. CLASSIFICATIONS.............................................................................................. 4 SECTION 4. AT-WILL STATUS................................................................................................ 5 SECTION 5. TRANSITION TO THE PLAN .............................................................................. 5 SECTION 6. EFFECTIVE DATE................................................................................................ 5 ARTICLE TWO: COMPENSATION ...................................................................................................... 6 SECTION 7. MANAGEMENT SALARY RANGES.................................................................. 6 SECTION 8. COST OF LIVING AND PAY RANGE ADJUSTMENTS................................... 6 SECTION 9. MERIT INCREASES AND PERFORMANCE EVALUATIONS ........................ 7 SECTION 10. EQUITY ADJUSTMENTS .................................................................................. 8 SECTION 11. SEVERANCE PAY .............................................................................................. 8 ARTICLE THREE: BENEFITS............................................................................................................... 9 SECTION 12. SICK LEAVE ....................................................................................................... 9 SECTION 13. HOLIDAYS .......................................................................................................... 9 SECTION 14. ADMINISTRATIVE LEAVE ............................................................................ 10 SECTION 15. OTHER LEAVES............................................................................................... 11 SECTION 16. VACATION........................................................................................................ 11 SECTION 17. MEDICAL BENEFITS....................................................................................... 11 SECTION 18. DENTAL INSURANCE..................................................................................... 13 SECTION 19. VISION INSURANCE ....................................................................................... 13 SECTION 20. SECTION 125 FLEXIBILE BENEEFIT PLAN ............................................13 SECTION 21. LIFE INSURANCE............................................................................................ 14 SECTION 22. DISABILITY INSURANCE .............................................................................. 14 SECTION 23. DOMESTIC PARTNER MEDICAL COVERAGE........................................... 14 SECTION 24. INCENTIVE BENEFITS.................................................................................... 15 SECTION 25. RETIREMENT PLAN FOR EMPLOYEES....................................................... 15

3 SECTION 26. DEFERRED COMPENSATION – 457 PLAN .................................................. 17 SECTION 27. CLOTHING AND EQUIPMENT ALLOWANCE ............................................ 17 SECTION 28. AUTO ALLOWANCE ....................................................................................... 17 SECTION 29. CELLPHONE ALLOWANCE........................................................................... 18 SECTION 30. FIRE BATTALION CHIEF BACKFILL FORPARTNER AGENCY.............. 18 SECTION 31. LONGEVITY PAY............................................................................................. 19 SECTION 32. PROFESSIONAL DEVELOPMENT ............................................................19 EXHIBIT “A” ............................................................................................................................. 20

4 CITY OF PINOLE

MANAGEMENT AND CONFIDENTIAL EMPLOYEES

COMPENSATION AND BENEFITS PLAN
ARTICLE ONE: INTRODUCTION
SECTION 1. ESTABLISHMENT AND PURPOSE
The City of Pinole (“City”) wishes to establish and maintain a plan of compensation and benefits for management and confidential personnel of the City. Accordingly, the City sets forth this “Management and Confidential Employees Compensation and Benefits Plan” (also known as the “Plan”).

The purpose of this Plan is to establish the compensation and benefits applicable to the City’s management and confidential employees beyond those already approved in the Personnel Rules or other legislative actions of the City Council. Should there be any conflicting provisions between this Plan and the Personnel Rules, the Plan shall supersede.

SECTION 2. ADMINISTRATION OF THE PLAN
The Plan shall be administered by the City Manager or his/her designee. The City Manager shall have the authority to establish and revise policies and procedures to ensure fair and equitable administration of the Plan.

SECTION 3. CLASSIFICATIONS
The following management and confidential classifications are covered by this Plan. • Assistant City Manager
• Assistant to the City Manager
• Building Official
• Capital Improvement and Environmental Program Manager • Community Development Director
• Community Services Director
• Deputy City Clerk
• Development Services Director / City Engineer
• Finance Director
• Fire Battalion Chief
• Fire Chief
• Human Resources Analyst
• Human Resources Director
• Human Resources Specialist
• Human Resources Technician
• Planning Manager
• Police Chief

5 • Police Commander
• Police Lieutenant
• Public Works Director
• Public Works Manager
• Recreation Manager
• Wastewater Treatment Plant Manager
SECTION 4. AT-WILL STATUS
All employees covered by this Plan are employed on an “at will” basis. Accordingly, both the City and the employee have the right to terminate the employment relationship at any time, with or without advance notice, and with or without cause.

SECTION 5. TRANSITION TO THE PLAN
The terms and conditions regarding compensation and benefits for the employees in classifications covered under this Plan have been set forth in individual employment agreements (“IEA”). This Plan and the provisions herein shall replace any and all IEAs upon the expiration of the IEAs. Conversely, employees may elect to voluntarily transition to the Plan prior to the expiration of their IEA and may do so in a written document signed by both the employee and the City Manager. The written document will state that the employee has voluntarily terminated their IEA and will be covered under the Plan going forward. When an employee transitions from an IEA to the Plan, the City Manager shall set the employee’s initial salary under the Plan based on the employee’s attainment of the knowledge and skills required by the classification and the employee’s performance to-date in carrying out the duties of the classification. If an employee’s salary under the IEA is less than the minimum annual salary in the Plan, upon transitioning, the employee’s salary shall be at least the minimum annual salary reflected in the Plan. The salaries of all employees in classifications covered underthis Plan shall adhere to the ranges for the employee’s respective classification as set by the Plan regardless of whether or not the employee is covered by an IEA or the Plan.

SECTION 6. EFFECTIVE DATE
This Plan and any revisions will become effective on the Effective Date stated on the Plan’s cover and will continue to be in effect unless otherwise modified by the City Council.

6 ARTICLE TWO: COMPENSATION
SECTION 7. MANAGEMENT SALARY RANGES
A. Initial Salary
For new employees, the City Manager, or their designee, shall set the salary for individual employees covered by this Plan at the time of their initial appointment, within the established salary range for their classification. New hires may be appointed anywhere within the salary range for their classification.

B. Base Compensation Structure
As provided in Exhibit A, this Plan sets forth the base salary ranges for all classifications covered by this Plan. There shall be no specified or pre-determined “steps” within the salary ranges for employees covered by this Plan. Rather, each classification under this Plan shall be assigned an open salary range containing a 21.6% spread between the minimum and maximum points of the range.

SECTION 8. COST OF LIVING AND PAY RANGE ADJUSTMENTS
At least annually, the City Council will consider a percentage cost of living adjustment to the salary ranges for all classifications covered by this Plan that considers inflationary increases in the cost of living. If the City Council approves a cost-of-living adjustment and an effective date, the minimum and maximum points of each classification’s range shall be increased by the percentage of the adjustment, and the salary of each individual employee covered by the Plan shall be increased by the percentage of the adjustment effective on the first day of the first pay period on or following the effective date set by the City Council.

From time to time, the City Council will authorize a compensation study of benchmark classifications to identify the market rate competitiveness of salary and benefits provided to employees covered by the Plan. If the City Council approves a market rate adjustment and an effective date, the minimum and maximum points of each below-market classification’s range shall be increase by the percentage of the adjustment, and the salary of each employee assigned to the below-market classification covered by the Plan shall be increased by the percentage of the adjustment effective on the first day of the first pay period on or following the effective date set by the City Council.

SECTION 9. MERIT INCREASES AND PERFORMANCE EVALUATIONS
A. Basis for Merit Increases
In addition to the cost-of-living adjustment discussed above, an employee covered by this Plan may receive a merit increase, once per year in relation to their anniversary and annual performance appraisal. Merit increases will be based upon the quality of the employee’s performance in the preceding twelve (12) months. Merit increases shall result in an employee advancing within the established salary range for their classification by the amount of the merit

7 increase.

B. Performance Evaluation Process
Performance evaluations for all employees covered under this Plan are the responsibility of the City Manager, who normally will delegate the responsibility of performance reviews to the covered employee’s department head. The process for performance evaluations shall be conducted in accordance with Section 14 in the Personnel Rules, unless expressly provided otherwise below.

A performance evaluation shall be prepared at least annually on each employee’s anniversary date.

The evaluation process shall begin with each employee preparing a self-evaluation of their own performance during the prior year. In addition, the employee shall draft proposed goals and objectives for the coming year.

The employee’s supervisor shall then evaluate the employee’s performance for the prior year.

The evaluations of both the employee and supervisor shall focus on:
(1) the employee’s performance of their regular duties and responsibilities; and (2) the employee’s attainment of specific goals and objectives established for the employee at the beginning of the review period (i.e. one year earlier).

Following completion of the written evaluations, the employee and their supervisor shall meet to discuss both the quality of the employee’s performance of their regular duties and responsibilities and the employee’s degree of success in accomplishing the specific goals and objectivesset for them the previous year. They shall also review the employee’s proposed goals and objectives for the coming year.

C. Merit Adjustment Guidelines
Employees may be granted a merit adjustment of up to five percent each year (5.0%) for exemplary performance.

D. Cap on Merit Increases
If an employee’s salary is at the top of the salary range for their classification, the employee shall not be eligible for a merit increase.

If an employee's salary is below the top of the salary range for their classification, the employee may receive a merit increase in accordance with the provisions set forth above. If the amount of the merit increase awarded would cause the employee’s salary to exceed the top of his/her salary range, then the employee shall receive as a merit increase only that portion of the merit increase that will bring his/her salary to the top of his/her range.

SECTION 10. EQUITY ADJUSTMENTS
The City Manager may authorize an increase to an individual employee’s salary to address internal or external salary equity issues. Any equity adjustment shall consider relevant internal

8 and external equity data in order to effectuate the intent of this section. Any adjusted salary must adhere to the minimum and maximum amounts of the employee’s classification range.

SECTION 11. SEVERANCE PAY
Except as specifically noted otherwise, this section shall apply to all employees covered under this Plan.

In the event that the City terminates the employment of any employee covered by the Plan without cause after the first twelve (12) months of employment, the City shall pay the employee severance, in a sum equal to one (1) month base salary and the value of continuation of health insurance coverage for a period of one (1) month for every year of service, up to a maximum of six (6) months base salary and the value of continuation of health insurance coverage for a period of six (6) months (collectively "Severance"). Such severance is contingent upon the employee signing and delivering a general release of all claims against the City (including without limitation its former and current elected officials, employees, officers and agents). If the employee retires subsequent to separation and receives coverage under the City’s retiree health plan within six months of separation, the employee shall reimburse the City for the portion of the Severance associated with the value of continuation of health insurance coverage attributable to post-employment months after which the employee had coverage through the City’s retiree health plan. If the employee is terminated for “cause,” the City shall not owe any severance under this Plan. The determination of whether there is “cause” for termination shall include but not be limited to those items listed in the Personnel Rules. The term “cause” only relates to the potential to receive severance, and has no bearing on an employee’s at-will status.

9 ARTICLE THREE: BENEFITS
SECTION 12. SICK LEAVE
A. Rate of Sick Leave Earned
Employees covered under this Plan shall accrue ninety-six (96) hours of sick leave per year, accrued incrementally each pay period. Any employee employed in the Fire Battalion Chief classification shall accrue sick leave at 1.4 timesthe amount above, asthe Fire Battalion Chief’s normal work schedule is 2,912 hours annually, 1.4 times the normal work schedule of all other employees covered by the Plan, which is 2,080 hours annually.

B. Sick Leave Incentive
An employee’s sick leave use shall be reviewed by the City at the end of each calendar year.

Employees who do not use any sick leave for six (6) consecutive months within the calendar year shall receive an additional four (4) hours of accrued vacation time (5.6 hours for the Fire Battalion Chief). Employees who do not use any sick leave for the entire calendar year (12 months) will receive an additional eight (8) hours of vacation time (11.2 hours for the Fire Battalion Chief).

C. Other Use of Sick Leave
All other conditions regulating sick leave accruals, usage, and family leave contained within the City’s duly adopted Personnel Rules shall apply to all employees covered under this Plan.

D. Unused Sick Leave Upon Retirement
Upon retirement from the City, employees with at least five (5) years of continuous City service shall have the option to cash out 25% of unused sick leave in a non-pensionable, lump-sum payment subject to all applicable payroll withholdings.

The balance of unused sick leave shall be utilized to extend CalPERS retirement service credit.

SECTION 13. HOLIDAYS
A. Holiday Pay
The Fire Battalion Chief covered by this Plan has routine scheduled staffing without regard to holidays, and therefore works on holidays as a part of their normal schedule. The employee shall receive, in lieu of holiday time off, eleven and one- fifth (11.2) hours of Holiday Pay at their straight time basic hourly rate for each holiday set forth in Section 13.B below.

B. Holiday Leave
Employees shall receive the following legal paid holidays:
• January 1 New Year's Day

10 • Third Monday in January Martin Luther King's Birthday • Third Monday in February Washington's Birthday
• Last Friday in March Caesar Chavez Day
• Last Monday in May Memorial Day
• June 19 Juneteenth Day
• July 4 Independence Day
• First Monday in September Labor Day
• November 11 Veteran's Day
• Fourth Thursday in November Thanksgiving
• Fourth Friday in November Day after Thanksgiving
• December 25 Christmas
In the event that any of the aforementioned days falls on a Saturday, the preceding Friday shall be considered a holiday for pay and leave purposes. In the event that any of the aforementioned days falls on a Sunday, the following Monday shall be considered a holiday for pay and leave purposes. Every day proclaimed by the President or the Governor as a public fast, Thanksgiving, day of mourning, or holiday shall be observed as a holiday for paypurposes.

The Fire Battalion Chief shall receive 11.2 hours of straight time pay for each holiday listed above in lieu of receiving paid time off.

In addition, employees covered under this Plan shall receive twelve (12) hours of floating holidays each fiscal year. These hours are not vested and must be taken by June 30th of each year or they will be lost. These hours may not be cashed out. The Fire Battalion Chief shall receive 16.8 hours of floating holiday paid time off.

SECTION 14. ADMINISTRATIVE LEAVE
A. Department Heads
The following classifications shall be entitled to receive administrative leave at an accrual rate of ninety-six (96) hours per year, accrued incrementally each pay period, and may cash out no more than sixty-four (64) hours each year. Any balance remaining at the end of each calendar year will automatically be paid out at the employees’ hourly base pay in effect on that date. • Assistant City Manager
• Community Development Director
• Community Services Director
• Development Services Director/City Engineer
• Finance Director
• Fire Chief
• Human Resources Director
• Police Chief
• Public Works Director
B. All Other Classifications
Unless otherwise provided under thissection, all other classifications covered by this Plan shall

11 be entitled to receive administrative leave at an accrual rate of sixty (60) hours per year (84 hours for the Fire Battalion Chief), accrued incrementally each pay period, and may cash out no more than forty (40) hours each year (56 hours for the Fire Battalion Chief). Any balance remaining at the end of each calendar year will automatically be paid out at the employees’ hourly base pay in effect on that date.
• The Human Resources Technician and Human Resources Specialist are not entitled to receive administrative leave due to non-exempt FLSA status.

SECTION 15. OTHER LEAVES
Employee covered by this Plan shall receive all other leaves (Bereavement, Family and Medical, Jury Duty, Military, etc.) as provided to other Miscellaneous City employees.

SECTION 16. VACATION
A. Rate of Vacation Earned
Employees shall accrue vacation at the following rates, up to the following maximums, for continuous years of service performed:

Years of Service Hours Accrued Per Year Maximum Accrual (Hours) 0 – 4 96 192
5 – 9 144 288
10 – 15 160 320
16+ 192 384
The Fire Battalion Chief shall accrue vacation and have a maximum accrual cap at 1.4 times the amounts of employees in other classifications covered under the Plan.

The City Manager may grant a new employee a higher annual accrual rate based on years of public service with other agencies or other appropriate factors. If a new employee is granted a higher initial rate of annual accrual, the employee’s rate will stay the same until the employee advances, based on the years of City service, to the higher accrual step.

Employees covered by the Plan may cash out up to 52 hours of vacation annually, provided that he/she has a minimum of 20 days (160 hours) accumulated. The Fire Battalion Chief may cash out 72.8 hours of vacation annually, provided that he/she has a minimum of 224 hours accumulated.

Employees that transition from IEAs to the Plan shall accrue vacation at the rate that the employee receives under their IEA at the time of transition. The employee’s rate will stay the same until the employee advances, based on the years of City service, to the higher accrual step per the table above. Employees that transition from IEAs to the Plan shall not have any cap on maximum accrual.

SECTION 17. MEDICAL BENEFITS

12 A. Health Insurance
The City shall make the following contributions toward the employee’s health premium:
• Effective January 1, 2020, the City’s contribution toward the employee’s health premium will equal the 2019 Kaiser rate at each level of coverage. • Effective January 1, 2021, and every January 1 thereafter, the City’s contribution toward the employee’s health premium will equal the Kaiser rate for the prior calendar year at each level of coverage.

B. Retiree Medical Insurance
The City will contribute toward retiree health premiums as follows:

Existing City retirees and current City employees hired before September 1, 2010, receive a City contribution toward their retiree health premium equal to that provided to current active employees.

Current City employees hired before September 1, 2010, shall be offered the option to opt into the CalPERS Vesting Program upon retirement. If the employee opts-in to the CalPERS Vesting Schedule Program (GC 22893), the decision is irrevocable (permanent) as CalPERS does not allow the employee to opt out later.

Current City employees hired on or after September 1, 2010, will receive a City contribution toward their retiree health premium in an amount as described by the CalPERS Vesting Program (GC 22893), and summarized in the table below.

The CalPERS Vesting Program is regulated by Government Code 22893 and applies to City employees hired on or after September 1, 2010, and retired City employees hired before September 1, 2010, who voluntarily opt in upon retirement.

Every year CalPERS calculates the State contribution rates towards retiree health premiums, referred to as State Annuitant Contribution Rates. If the rate or vested amount does not cover the entire cost of the health premium, the retired employee is responsible for the difference.

A City retiree is eligible to receive a contribution towards the retiree medical premium if:

1. The City retiree has a minimum of ten (10) years of CalPERS earned service credit to receive 50% of the employer contribution.
a. Credited service is compensated CalPERS service time earned (G.C. 20069). b. Purchased “Additional Retirement Service Credit (ARSC)” does not qualify as it is not earned service.

2. Five (5) of those ten (10) years of CalPERS earned service credit must be performed at the City of Pinole.
a. Each additional CalPERS earned service credit year after the completion of ten years increases the City’s contribution percentage by 5% until the completion of 20 years, at which time the retiring employee is eligible for 100% of the State Annuitant Contribution Rate (100/90 formula).

13 CalPERS Credited
Years of Earned Service
Percentage of City
Contribution Based On
The State’s Rate
10 50
11 55
12 60
13 65
14 70
15 75
16 80
17 85
18 90
19 95
20 or more 100
C. Medical In-Lieu
Eligible full-time employees with alternate medical insurance shall be allowed to receive payment in lieu of medical insurance as follows:
• One-party coverage: $225
• Two-party coverage: $450
• Family coverage: $600
An employee must show proof of adequate medical insurance coverage under another health plan before the benefit may be received, and annually thereafter. Employees will be subject to provisions of the City's health plans in the event termination of in-lieu benefits and resumption of medical coverage is desired.

Employees electing the medical in-lieu option shall be entitled to an adjustment in the amount received for this option should their coverage status change. It is the duty of the employee to notify Human Resources of any such changes.

SECTION 18. DENTAL INSURANCE
A. Dental Insurance Provided
The City shall pay for the dental insurance premiums for employees covered by this Plan and their eligible dependents, if desired. Selection of the carrier shall be at the discretion of the City.

The City-provided dental insurance plan provides for a maximum annual dental payout of $1,500 total for each employee and their eligible dependents.

B. Orthodontic Insurance Provided

14 The City shall pay for the orthodontic insurance premiums for employees covered by this Plan and their eligible dependents, if desired. Selection of the carrier shall be at the discretion of the City.

The City-provided orthodontic insurance plan provides for a lifetime maximum orthodontic payout of $1,500 for each employee and for each employee’s eligible dependents.

SECTION 19. VISION INSURANCE
A. Vision Insurance Provided
The City agrees to pay the premium for full family vision care coverage that provides for one examination, one set of lenses, and one frame per year. Selection of the carrier shall be at the discretion of the City. The City provided plan shall provide for a $20 co- payment for examination and a $20 co-payment for materials.

SECTION 20. SECTION 125 FLEXIBILE BENEEFIT PLAN
A. The City shall establish and pay the costsfor administering a flexible benefit plan for this employee group. Selection of the benefit provider shall be at the discretion of the City. Effective the first full pay period in January 2024, the City shall make an annual (January 1 of each year) contribution of $500.00 to a health care reimbursement flexible spending account for each medical plan subscriber. The annual contribution shall be prorated for newly hired or promoted medical plan subscribers.

SECTION 21. LIFE INSURANCE
A. Life Insurance Provided
The City agrees to provide term life insurance and accidental death and dismemberment insurance in the amount of one times (1x) the employee’s annual base wage salary. Selection of the carrier shall be at the discretion of the City.

SECTION 22. DISABILITY INSURANCE
A. Disability Insurance Provided
Effective the first full pay period following May 1, 2024, the City agrees to participate in the California State Disability Insurance (CASDI) program for employees covered by this Plan for short-term disability benefits and shall provide a Long-Term Disability (LTD) benefit to employees as defined below. The costs of the CASDI program are the responsibility of the employee, paid through payroll deductions.

Long-Term Disability
The City shall provide long term disability insurance of two- thirds ofsalary up to $6,000 per month ($4,000 maximum benefit) with a 90-day waiting period.

15 Effective the first full pay period following May 1, 2024, employees shall pay the monthly long-term disability insurance premium through bi-weekly, after-tax payroll deduction and the City shall issue insured employees with a long-term disability insurance premium reimbursement each pay period.

The City shall make coverage available to Police Safety employees interested in participating in Peace Officers’ Research Association of California (PORAC) long-term disability plan in lieu of the City’s LTD Plan. Effective the first full pay period following May 1, 2024, Police Safety employees shall pay the monthly PORAC long-term disability insurance premium through bi-weekly, after-tax payroll deductions and the City shall issue insured employees with a long-term disability insurance premium reimbursement each pay period up to the City’s LTD Plan premium. Employee is responsible for any monthly premium payment if the PORAC LTD Plan exceeds the cost of the City’s LTD Plan.

SECTION 23. DOMESTIC PARTNER MEDICAL COVERAGE
A. Domestic Partnership and Coverage Defined
A Domestic Partnership is defined pursuant to the California Family Code. The City, in accordance with CalPERS regulations, will allow coverage for registered domestic partners of employees, as qualified dependents, under the medical, dental, and vision health care plans.

Prior to any coverage being provided, the employee must provide proof of domestic partnership registration with the California Secretary of State.

SECTION 24. INCENTIVE BENEFITS
A. Educational Degree
During the term of this Plan, the City will pay those employees who have earneddegrees from accredited college institutions, additional pay as follows:
• Associate of Art/Science Degree $ 75.00 per month
• Bachelor of Art/Science Degree $150.00 per month
• Master of Art/Science Degree $225.00 per month
An employee is only eligible to receive Educational Degree Pay under this section for one degree. An employee is not eligible to receive this pay for multiple degrees and/or disciplines.

This Educational Degree Pay shall only be paid to employees holding a degree beyond that which is required for their classification, as outlined in the classification description, and if a higher degree is determined to be beneficial by the City Manager, which shall not unreasonably be withheld.

B. Bilingual Pay
The City Manager may assign designated employee(s) to receive a monthly bilingual pay stipend of $200.00 per month. Such assignment shall be in writing and must be renewed on an

16 annual basis. To be eligible to receive a bilingual pay differential, an employee must:
• Speak the recognized languages spoken in the City service area. • Agree to utilize their bilingual ability on the job.
• Demonstrate bilingual proficiency satisfactorily to an evaluating agency/individual. • Agree to maintain the necessary training and certification standards established by the City to continue to receive the bilingual pay stipend.

SECTION 25. RETIREMENT PLAN FOR EMPLOYEES
A. Retirement Plan Defined
The City shall contract with the California Public Employees Retirement System (CalPERS) for the purpose of allowing employees to earn retirement benefits.

B. CalPERS Contract Benefits – Classic Employees
For “Classic” Public Safety (3% @ 55 Plan) and Miscellaneous (2.5% @ 55 Plan) Members, the contract offers the following options:
• Military Buy Back - The choice to participate in the CalPERS Military Buy Back program is solely at the discretion and cost of the employee. • Third Level 1959 Survivors Benefits
• Single Highest Year Compensation Formula
• Service Credit for Unused Sick Leave
C. CalPERS Employer Contribution Rate Sharing Formula for ClassicEmployees The total amount owed by the City to CalPERS related to retirement benefits of City employees and annuitants is composed of the plan total normal cost and the plan total amortized cost, which together are the “Plan Total Cost”. City employees pay an “expected” employee contribution toward the plan total normal cost. Unless otherwise established between the City and employees, the City pays to CalPERS the plan total cost less the expected employee contribution, which is paid to CalPERS by the employee through payroll deduction.

Employees covered under the Plan will pay an amount above the expected employee contribution, calculated as described below.

Public Safety Employees
Employees covered by this Plan that participate in CalPERS as public safety plan Tier 1 (“Classic”) employees will contribute 9% of salary (expected employee contribution) and an additional 12.935% of salary (employee’s share of City rate). In the event the Plan Total Cost for the City’s Tier 1 public safety plan employees, when expressed as a percentage of payroll, increases in excess of 5.0% over the prior year’s contribution rate, the additional amount above the 5.0% increase shall be shared equally between the City and the employee. For example, if the employer contribution rate increases from one year to the next by 7%, then the City will pay 5% of that increase. For the remaining 2%, the City will pay 1% and the employee will pay 1%.

17 Effective the full pay period that contains July 1, 2022, the employees’ total CalPERS contribution (combined employee’s contribution and employee’s share of the City’s contribution) shall be reduced to fifteen percent (15%).

Miscellaneous Employees
Employees covered by this Plan that participate in CalPERS as Tier 1 (“Classic”) employees will contribute 8% of salary (expected employee contribution) and an additional 8.388% of salary (employee’s share of City rate). In the event the Plan Total Cost for the City’s Tier 1 employees, when expressed as a percentage of payroll, increases in excess of 4.0% over the prior year’s contribution rate, the additional amount above the 4.0% increase shall be shared equally between the City and the employee. For example, if the employer contribution rate increases from one year to the next by 6%, then the City will pay 4% of that increase. For the remaining 2%, the City will pay 1% and the employee will pay 1%.

Effective the full pay period that contains July 1, 2022, the employees’ total CalPERS contribution (combined employee’s contribution and employee’s share of the City’s contribution) shall be reduced to fifteen percent (15%).

D. CalPERS Contract Benefits – PEPRA Employees
Individuals first employed by the City on or after January 1, 2013, who are defined as “new members” by the Public Employees’ Pension Reform Act (PEPRA) of 2013, shall be enrolled in the CalPERS.

Employees classified as PEPRA Public Safety members will be enrolled in a 2.7% @ 57 plan.

Employees designated as Local Miscellaneous PEPRA members will be enrolled in a 2% @ 62 plan. Employees covered by the Plan enrolled in CalPERS as PEPRA Public Safety or Local Miscellaneous members will be responsible to pay a contribution to CalPERS equal to 50% of the total normal cost for their defined Plan as determined by CalPERS.

SECTION 26. DEFERRED COMPENSATION – 457 PLAN
The City shall make a 457 Plan and ROTH individual retirement account available for employees covered by the Plan to contribute to through payroll deduction.

Effective the full pay period following adoption of this Plan, the City shall provide up to $100.00 in a dollar for dollar “matching” monthly contribution to the 457 Plan for participating employees.

SECTION 27. CLOTHING AND EQUIPMENT ALLOWANCE
A. Uniform and Safety Equipment Allowance for Public SafetyEmployees Fire safety classifications covered by this Plan will receive an annual uniform allowance of $800 per year for items which are not solely for personal health and safety, to align with the International Association of Firefighters, Local 1230’s clothing allowance.

After voluntarily transitioning to this Plan or at the time that an employee’s Individual

18 Employment Agreement expires, Fire safety classifications will be entitled to a clothing allowance of $1,000 per year.

Police safety employees covered by this Plan shall receive an annual uniform allowance of $1,000 for the purchase and maintenance of uniforms and accessories.

Effective the first full pay period in January 2024, the uniform allowance will be pro-rated and paid each pay period within the calendar year.

Police employees covered by this Plan shall receive an annual safety equipment allowance of $255 for the purchase of equipment such as a weapon, holster, duty belt, handcuffs, baton, flashlight, etc. The safety equipment allowance shall be paid in the same fashion asthe uniform allowance described above.

B. Safety Shoe Allowance
The classifications listed under this section shall receive a safety shoe allowance in the amount of $200 per year.
• Public Works Manager
• Wastewater Treatment Plant Manager
The allowance provided under this section will be paid twice annually, one-half (1/2) in June and one-half (1/2) in December.

SECTION 28. AUTO ALLOWANCE
A. Police and Fire
The City shall provide the following classifications with a city-owned automobile for use in discharging their duties, subject to all federal and state tax laws. The City shall also provide all expenses related to gasoline, maintenance and insurance of said vehicle. The classifications covered under this subsection shall have the unrestricted use of said vehicle within the State of California and shall not drive outside the state unless receiving prior approval from the City Manager.
• Police Chief
• Police Lieutenant
• Fire Chief
• Fire Battalion Chief
B. All Other Employees
The City shall provide employees with an automobile allowance in the form of a per mile reimbursement per IRS-approved mileage rates. These payments shall be made in conjunction with the City's normal payroll periods and subject to all federal and state withholding and tax laws. Employees hired on or after November 17, 2020 shall be eligible to receive mileage reimbursement for use of their personal vehicle when conducting City business.

C. Elimination of Auto Allowance

19 Employees with IEA’s who voluntarily transitioned to the Plan, prior to the expiration of their IEA, and who were receiving a monthly auto allowance will continue to receive their monthly auto allowance in lieu of a per mile reimbursement.

SECTION 29. CELLPHONE ALLOWANCE
An employee covered under this Plan has the option to obtain a City-issued cellphone for business purposes. If the employee does not elect to receive a City-issued cellphone, the City shall provide the employee with a $65 monthly stipend. This stipend shall be payable on one pay period each month and be subject to all federal and state withholding and tax laws.

The employee hereby acknowledges and agrees that receipt of this stipend means that any voicemail, text, or e-mail messagesreceived on his or her device that are related to City business are the property of the City and are subject to disclosure in accordance with the Public Records Act and applicable case law. The employee further hereby confirms that he or she will provide authorization for the City to obtain such records from his or her service provider.

SECTION 30. FIRE BATTALION CHIEF BACKFILL FOR PARTNER AGENCY The Fire Battalion Chief classification is distinct among the classifications covered by the Plan in that it performs shift work. The City of Pinole is a party, with the Rodeo-Hercules Fire District and the Contra Costa County Fire Protection District, to the Battalion 7 agreement, through which, among other things, each party provides a Fire Battalion Chief on a rotating shift basis to cover the needs of the entire Battalion 7. From time to time, the Pinole Fire Battalion Chief is required to cover a shift as Battalion Chief for Battalion 7 that is additional to the City’s normal shifts. When the City’s Fire Battalion Chief covers the Battalion Chief duties for another agency, the Fire Battalion Chief shall receive compensation at a rate of one and one-half times his or her basic hourly salary for the hours worked, not to exceed the amount reimbursed by the other agencies.

SECTION 31. LONGEVITY PAY
Effective July 3, 2023, employees in public safety classifications shall be given additional pay computed on their base hourly rate of pay as follows:
• One percent (1%) pay for five (5) full continuous years of City service, or • Three percent (3%) pay for ten (10) full continuous years of City service.

Effective July 3, 2023, employees in miscellaneous classifications shall be given additional pay computed on their base hourly rate of pay as follows:
• One percent (1%) pay for five (5) full continuous years of City service, or • Two percent (2%) pay for ten (10) full continuous years of City service, or • Three percent (3%) pay for fifteen (15) full continuous years of City services.

This benefit shall not compound, nor be compounded by, any other additional compensation.

SECTION 32. PROFESSIONAL DEVELOPMENT

20 Subject to budgetary constraints, the City will pay for professional memberships, subscriptions, and training subject to the approval of the City Manager. The City will pay the expenses of transportation, food, lodging, and registration for management and confidential employee at meetings and trainings subject to the approval of the City Manager.

21 EXHIBIT “A”

MANAGEMENT GROUP SALARY RANGES
1% State Disability Insurance Salary Offset, Effective 05/06/2024 4% Cost of Living Increase, Effective 07/01/2024
Management, eff. 05/06/2024 Minimum Annual Minimum Hourly Maximum Annual Maximum Hourly Assistant City Manager $ 214,866.95 $ 103.3014 $ 261,278.22 $ 125.6145 Police Chief $ 214,866.95 $ 103.3014 $ 261,278.22 $ 125.6145 Development Services Director/City Engineer $ 204,635.14 $ 98.3823 $ 248,836.33 $ 119.6329 Community Development Director $ 186,032.89 $ 89.4389 $ 226,215.99 $ 108.7577 Finance Director $ 186,032.89 $ 89.4389 $ 226,215.99 $ 108.7577 Fire Chief $ 186,032.89 $ 89.4389 $ 226,215.99 $ 108.7577 Human Resources Director $ 186,032.89 $ 89.4389 $ 226,215.99 $ 108.7577 Public Works Director $ 186,032.89 $ 89.4389 $ 226,215.99 $ 108.7577 Police Commander $ 177,077.65 $ 85.1335 $ 215,326.42 $ 103.5223 Community Services Director $ 169,029.53 $ 81.2642 $ 205,539.91 $ 98.8173 Building Official $ 160,979.68 $ 77.3941 $ 195,751.29 $ 94.1112 Fire Battalion Chief (contract for services, eff. 03/01/2023) $ 160,979.68 $ 77.3941 $ 195,751.29 $ 94.1112 Planning Manager $ 160,979.68 $ 77.3941 $ 195,751.29 $ 94.1112 Police Lieutenant $ 160,979.68 $ 77.3941 $ 195,751.29 $ 94.1112 Wastewater Treatment Plant Manager $ 160,979.68 $ 77.3941 $ 195,751.29 $ 94.1112 Capital Improvement & Environmental Program Manager $ 133,040.77 $ 63.9619 $ 161,777.57 $ 77.7777 Public Works Manager $ 133,040.77 $ 63.9619 $ 161,777.57 $ 77.7777 Recreation Manager $ 118,258.97 $ 56.8553 $ 143,802.91 $ 69.1360 Assistant to the City Manager $ 118,258.79 $ 56.8552 $ 143,802.69 $ 69.1359 Human Resources Analyst $ 93,778.01 $ 45.0856 $ 114,034.07 $ 54.8241 Deputy City Clerk $ 90,374.66 $ 43.4494 $ 109,895.58 $ 52.8344 Human Resources Specialist $ 85,252.80 $ 40.9869 $ 103,667.40 $ 49.8401 Human Resources Technician $ 77,502.55 $ 37.2608 $ 94,243.10 $ 45.3092 Management, eff. 07/01/2024 Minimum Annual Minimum Hourly Maximum Annual Maximum Hourly Assistant City Manager $ 223,461.63 $ 107.4335 $ 271,729.35 $ 130.6391 Police Chief $ 223,461.63 $ 107.4335 $ 271,729.35 $ 130.6391 Development Services Director/City Engineer $ 212,820.55 $ 102.3176 $ 258,789.79 $ 124.4182 Community Development Director $ 193,474.20 $ 93.0164 $ 235,264.63 $ 113.1080 Finance Director $ 193,474.20 $ 93.0164 $ 235,264.63 $ 113.1080 Fire Chief $ 193,474.20 $ 93.0164 $ 235,264.63 $ 113.1080 Human Resources Director $ 193,474.20 $ 93.0164 $ 235,264.63 $ 113.1080 Public Works Director $ 193,474.20 $ 93.0164 $ 235,264.63 $ 113.1080 Police Commander $ 184,160.75 $ 88.5388 $ 223,939.48 $ 107.6632 Community Services Director $ 175,790.71 $ 84.5148 $ 213,761.50 $ 102.7700 Building Official $ 167,418.87 $ 80.4898 $ 203,581.34 $ 97.8756 Fire Battalion Chief (contract for services, eff. 03/01/2023) $ 167,418.87 $ 80.4898 $ 203,581.34 $ 97.8756 Planning Manager $ 167,418.87 $ 80.4898 $ 203,581.34 $ 97.8756 Police Lieutenant $ 167,418.87 $ 80.4898 $ 203,581.34 $ 97.8756 Wastewater Treatment Plant Manager $ 167,418.87 $ 80.4898 $ 203,581.34 $ 97.8756 Capital Improvement & Environmental Program Manager $ 138,362.40 $ 66.5204 $ 168,248.68 $ 80.8888 Public Works Manager $ 138,362.40 $ 66.5204 $ 168,248.68 $ 80.8888 Recreation Manager $ 122,989.14 $ 59.1294 $ 149,554.80 $ 71.9013 Assistant to the City Manager $ 122,989.14 $ 59.1294 $ 149,554.80 $ 71.9013 Human Resources Analyst $ 97,529.14 $ 46.8890 $ 118,595.43 $ 57.0170 Deputy City Clerk $ 93,989.64 $ 45.1873 $ 114,291.41 $ 54.9478 Human Resources Specialist $ 88,662.91 $ 42.6264 $ 107,814.10 $ 51.8337 Human Resources Technician $ 80,602.65 $ 38.7513 $ 98,012.82 $ 47.1215 Page 202 of 586

ATTACHMENT B

CITY OF PINOLE

COMPENSATION AND BENEFITSPLAN
FOR

MANAGEMENT AND CONFIDENTIAL

EMPLOYEES
Effective Date November 17, 2020
Revised February 20, 2024.June 18, 2024

2 CITY OF PINOLE COMPENSATION AND BENEFITS PLAN

MANAGEMENT AND CONFIDENTIAL EMPLOYEES
Table of Contents
CITY OF PINOLE COMPENSATION AND BENEFITS PLAN............................................... 2 CITY OF PINOLE........................................................................................................................ 4 ARTICLE ONE: INTRODUCTION........................................................................................................ 4 SECTION 1. ESTABLISHMENT AND PURPOSE.................................................................... 4 SECTION 2. ADMINISTRATION OF THE PLAN.................................................................... 4 SECTION 3. CLASSIFICATIONS.............................................................................................. 4 SECTION 4. AT-WILL STATUS................................................................................................ 5 SECTION 5. TRANSITION TO THE PLAN .............................................................................. 5 SECTION 6. EFFECTIVE DATE................................................................................................ 5 ARTICLE TWO: COMPENSATION ...................................................................................................... 6 SECTION 7. MANAGEMENT SALARY RANGES.................................................................. 6 SECTION 8. COST OF LIVING AND PAY RANGE ADJUSTMENTS................................... 6 SECTION 9. MERIT INCREASES AND PERFORMANCE EVALUATIONS ........................ 7 SECTION 10. EQUITY ADJUSTMENTS .................................................................................. 8 SECTION 11. SEVERANCE PAY .............................................................................................. 8 ARTICLE THREE: BENEFITS............................................................................................................... 9 SECTION 12. SICK LEAVE ....................................................................................................... 9 SECTION 13. HOLIDAYS .......................................................................................................... 9 SECTION 14. ADMINISTRATIVE LEAVE ............................................................................ 10 SECTION 15. OTHER LEAVES............................................................................................... 11 SECTION 16. VACATION........................................................................................................ 11 SECTION 17. MEDICAL BENEFITS....................................................................................... 11 SECTION 18. DENTAL INSURANCE..................................................................................... 13 SECTION 19. VISION INSURANCE ....................................................................................... 13 SECTION 20. SECTION 125 FLEXIBILE BENEEFIT PLAN ............................................13 SECTION 21. LIFE INSURANCE............................................................................................ 14 SECTION 22. DISABILITY INSURANCE .............................................................................. 14 SECTION 23. DOMESTIC PARTNER MEDICAL COVERAGE........................................... 14 SECTION 24. INCENTIVE BENEFITS.................................................................................... 15 SECTION 25. RETIREMENT PLAN FOR EMPLOYEES....................................................... 15

3 SECTION 26. DEFERRED COMPENSATION – 457 PLAN .................................................. 17 SECTION 27. CLOTHING AND EQUIPMENT ALLOWANCE ............................................ 17 SECTION 28. AUTO ALLOWANCE ....................................................................................... 17 SECTION 29. CELLPHONE ALLOWANCE........................................................................... 18 SECTION 30. FIRE BATTALION CHIEF BACKFILL FORPARTNER AGENCY.............. 18 SECTION 31. LONGEVITY PAY............................................................................................. 19 SECTION 32. PROFESSIONAL DEVELOPMENT ............................................................19 EXHIBIT “A” ............................................................................................................................. 20

4 CITY OF PINOLE

MANAGEMENT AND CONFIDENTIAL EMPLOYEES

COMPENSATION AND BENEFITS PLAN
ARTICLE ONE: INTRODUCTION
SECTION 1. ESTABLISHMENT AND PURPOSE
The City of Pinole (“City”) wishes to establish and maintain a plan of compensation and benefits for management and confidential personnel of the City. Accordingly, the City sets forth this “Management and Confidential Employees Compensation and Benefits Plan” (also known as the “Plan”).

The purpose of this Plan is to establish the compensation and benefits applicable to the City’s management and confidential employees beyond those already approved in the Personnel Rules or other legislative actions of the City Council. Should there be any conflicting provisions between this Plan and the Personnel Rules, the Plan shall supersede.

SECTION 2. ADMINISTRATION OF THE PLAN
The Plan shall be administered by the City Manager or his/her designee. The City Manager shall have the authority to establish and revise policies and procedures to ensure fair and equitable administration of the Plan.

SECTION 3. CLASSIFICATIONS
The following management and confidential classifications are covered by this Plan. • Assistant City Manager
• Assistant to the City Manager
• Building Official
• Capital Improvement and Environmental Program Manager • Community Development Director
• Community Services Director
• Deputy City Clerk
• Development Services Director / City Engineer
• Finance Director
• Fire Battalion Chief
• Fire Chief
• Human Resources Analyst
• Human Resources Director
• Human Resources Specialist
• Human Resources Technician
• Planning Manager
• Police Chief

5 • Police Commander
• Police Lieutenant
• Public Works Director
• Public Works Manager
• Recreation Manager
• Wastewater Treatment Plant Manager
SECTION 4. AT-WILL STATUS
All employees covered by this Plan are employed on an “at will” basis. Accordingly, both the City and the employee have the right to terminate the employment relationship at any time, with or without advance notice, and with or without cause.

SECTION 5. TRANSITION TO THE PLAN
The terms and conditions regarding compensation and benefits for the employees in classifications covered under this Plan have been set forth in individual employment agreements (“IEA”). This Plan and the provisions herein shall replace any and all IEAs upon the expiration of the IEAs. Conversely, employees may elect to voluntarily transition to the Plan prior to the expiration of their IEA and may do so in a written document signed by both the employee and the City Manager. The written document will state that the employee has voluntarily terminated their IEA and will be covered under the Plan going forward. When an employee transitions from an IEA to the Plan, the City Manager shall set the employee’s initial salary under the Plan based on the employee’s attainment of the knowledge and skills required by the classification and the employee’s performance to-date in carrying out the duties of the classification. If an employee’s salary under the IEA is less than the minimum annual salary in the Plan, upon transitioning, the employee’s salary shall be at least the minimum annual salary reflected in the Plan. The salaries of all employees in classifications covered underthis Plan shall adhere to the ranges for the employee’s respective classification as set by the Plan regardless of whether or not the employee is covered by an IEA or the Plan.

SECTION 6. EFFECTIVE DATE
This Plan and any revisions will become effective on the Effective Date stated on the Plan’s cover and will continue to be in effect unless otherwise modified by the City Council.

6 ARTICLE TWO: COMPENSATION
SECTION 7. MANAGEMENT SALARY RANGES
A. Initial Salary
For new employees, the City Manager, or their designee, shall set the salary for individual employees covered by this Plan at the time of their initial appointment, within the established salary range for their classification. New hires may be appointed anywhere within the salary range for their classification.

B. Base Compensation Structure
As provided in Exhibit A, this Plan sets forth the base salary ranges for all classifications covered by this Plan. There shall be no specified or pre-determined “steps” within the salary ranges for employees covered by this Plan. Rather, each classification under this Plan shall be assigned an open salary range containing a 21.6% spread between the minimum and maximum points of the range.

SECTION 8. COST OF LIVING AND PAY RANGE ADJUSTMENTS
At least annually, the City Council will consider a percentage cost of living adjustment to the salary ranges for all classifications covered by this Plan that considers inflationary increases in the cost of living. If the City Council approves a cost-of-living adjustment and an effective date, the minimum and maximum points of each classification’s range shall be increased by the percentage of the adjustment, and the salary of each individual employee covered by the Plan shall be increased by the percentage of the adjustment effective on the first day of the first pay period on or following the effective date set by the City Council.

From time to time, the City Council will authorize a compensation study of benchmark classifications to identify the market rate competitiveness of salary and benefits provided to employees covered by the Plan. If the City Council approves a market rate adjustment and an effective date, the minimum and maximum points of each below-market classification’s range shall be increase by the percentage of the adjustment, and the salary of each employee assigned to the below-market classification covered by the Plan shall be increased by the percentage of the adjustment effective on the first day of the first pay period on or following the effective date set by the City Council.

SECTION 9. MERIT INCREASES AND PERFORMANCE EVALUATIONS
A. Basis for Merit Increases
In addition to the cost-of-living adjustment discussed above, an employee covered by this Plan may receive a merit increase, once per year in relation to their anniversary and annual performance appraisal. Merit increases will be based upon the quality of the employee’s performance in the preceding twelve (12) months. Merit increases shall result in an employee advancing within the established salary range for their classification by the amount of the merit

7 increase.

B. Performance Evaluation Process
Performance evaluations for all employees covered under this Plan are the responsibility of the City Manager, who normally will delegate the responsibility of performance reviews to the covered employee’s department head. The process for performance evaluations shall be conducted in accordance with Section 14 in the Personnel Rules, unless expressly provided otherwise below.

A performance evaluation shall be prepared at least annually on each employee’s anniversary date.

The evaluation process shall begin with each employee preparing a self-evaluation of their own performance during the prior year. In addition, the employee shall draft proposed goals and objectives for the coming year.

The employee’s supervisor shall then evaluate the employee’s performance for the prior year.

The evaluations of both the employee and supervisor shall focus on:
(1) the employee’s performance of their regular duties and responsibilities; and (2) the employee’s attainment of specific goals and objectives established for the employee at the beginning of the review period (i.e. one year earlier).

Following completion of the written evaluations, the employee and their supervisor shall meet to discuss both the quality of the employee’s performance of their regular duties and responsibilities and the employee’s degree of success in accomplishing the specific goals and objectivesset for them the previous year. They shall also review the employee’s proposed goals and objectives for the coming year.

C. Merit Adjustment Guidelines
Employees may be granted a merit adjustment of up to five percent each year (5.0%) for exemplary performance.

D. Cap on Merit Increases
If an employee’s salary is at the top of the salary range for their classification, the employee shall not be eligible for a merit increase.

If an employee's salary is below the top of the salary range for their classification, the employee may receive a merit increase in accordance with the provisions set forth above. If the amount of the merit increase awarded would cause the employee’s salary to exceed the top of his/her salary range, then the employee shall receive as a merit increase only that portion of the merit increase that will bring his/her salary to the top of his/herrange.

SECTION 10. EQUITY ADJUSTMENTS
The City Manager may authorize an increase to an individual employee’s salary to address internal or external salary equity issues. Any equity adjustment shall consider relevant internal

8 and external equity data in order to effectuate the intent of this section. Any adjusted salary must adhere to the minimum and maximum amounts of the employee’s classification range.

SECTION 11. SEVERANCE PAY
Except as specifically noted otherwise, this section shall apply to all employees covered under this Plan.

In the event that the City terminates the employment of any employee covered by the Plan without cause after the first twelve (12) months of employment, the City shall pay the employee severance, in a sum equal to one (1) month base salary and the value of continuation of health insurance coverage for a period of one (1) month for every year of service, up to a maximum of six (6) months base salary and the value of continuation of health insurance coverage for a period of six (6) months (collectively "Severance"). Such severance is contingent upon the employee signing and delivering a general release of all claims against the City (including without limitation its former and current elected officials, employees, officers and agents). If the employee retires subsequent to separation and receives coverage under the City’s retiree health plan within six months of separation, the employee shall reimburse the City for the portion of the Severance associated with the value of continuation of health insurance coverage attributable to post-employment months after which the employee had coverage through the City’s retiree health plan. If the employee is terminated for “cause,” the City shall not oweany severance under this Plan. The determination of whether there is “cause” for termination shall include but not be limited to those items listed in the Personnel Rules. The term “cause” only relates to the potential to receive severance, and has no bearing on an employee’s at-will status.

9 ARTICLE THREE: BENEFITS
SECTION 12. SICK LEAVE
A. Rate of Sick Leave Earned
Employees covered under this Plan shall accrue ninety-six (96) hours of sick leave per year, accrued incrementally each pay period. Any employee employed in the Fire Battalion Chief classification shall accrue sick leave at 1.4 timesthe amount above, asthe Fire Battalion Chief’s normal work schedule is 2,912 hours annually, 1.4 times the normal work schedule of allother employees covered by the Plan, which is 2,080 hours annually.

B. Sick Leave Incentive
An employee’s sick leave use shall be reviewed by the City at the end of each calendar year.

Employees who do not use any sick leave for six (6) consecutive months within the calendar year shall receive an additional four (4) hours of accrued vacation time (5.6 hours for the Fire Battalion Chief). Employees who do not use any sick leave for the entire calendar year (12 months) will receive an additional eight (8) hours of vacation time (11.2 hours for the Fire Battalion Chief).

C. Other Use of Sick Leave
All other conditions regulating sick leave accruals, usage, and family leave contained within the City’s duly adopted Personnel Rules shall apply to all employees covered under this Plan.

D. Unused Sick Leave Upon Retirement
Upon retirement from the City, employees with at least five (5) years of continuous City service shall have the option to cash out 25% of unused sick leave in a non-pensionable, lump-sum payment subject to all applicable payroll withholdings.

The balance of unused sick leave shall be utilized to extend CalPERS retirement service credit.

SECTION 13. HOLIDAYS
A. Holiday Pay
The Fire Battalion Chief covered by this Plan has routine scheduled staffing without regard to holidays, and therefore works on holidays as a part of their normal schedule. The employee shall receive, in lieu of holiday time off, eleven and one- fifth (11.2) hours of Holiday Pay at their straight time basic hourly rate for each holiday set forth in Section 13.B below.

B. Holiday Leave
Employees shall receive the following legal paid holidays:

10 • January 1 New Year's Day
• Third Monday in January Martin Luther King's Birthday • Third Monday in February Washington's Birthday
• Last Friday in March Caesar Chavez Day
• Last Monday in May Memorial Day
• June 19 Juneteenth Day
• July 4 Independence Day
• First Monday in September Labor Day
• November 11 Veteran's Day

11 • Fourth Thursday in November Thanksgiving
• Fourth Friday in November Day after Thanksgiving
• December 25 Christmas
In the event that any of the aforementioned days falls on a Saturday, the preceding Friday shall be considered a holiday for pay and leave purposes. In the event that any of the aforementioned days falls on a Sunday, the following Monday shall be considered a holiday for pay and leave purposes. Every day proclaimed by the President or the Governor as a public fast, Thanksgiving, day of mourning, or holiday shall be observed as a holiday for paypurposes.

The Fire Battalion Chief shall receive 11.2 hours of straight time pay for each holiday listed above in lieu of receiving paid time off.

In addition, employees covered under this Plan shall receive twelve (12) hours of floating holidays each fiscal year. These hours are not vested and must be taken by June 30th of each year or they will be lost. These hours may not be cashed out. The Fire Battalion Chief shall receive 16.8 hours of floating holiday paid time off.

SECTION 14. ADMINISTRATIVE LEAVE
A. Department Heads
The following classifications shall be entitled to receive administrative leave at an accrual rate of ninety-six (96) hours per year, accrued incrementally each pay period, and may cash out no more than sixty-four (64) hours each year. Any balance remaining at the end of each calendar year will automatically be paid out at the employees’ hourly base pay in effect on that date. • Assistant City Manager
• Community Development Director
• Community Services Director
• Development Services Director/City Engineer
• Finance Director
• Fire Chief
• Human Resources Director
• Police Chief
• Public Works Director
B. All Other Classifications
Unless otherwise provided under thissection, all other classifications covered by this Plan shall be entitled to receive administrative leave at an accrual rate of sixty (60) hours per year (84 hours for the Fire Battalion Chief), accrued incrementally each pay period, and may cash out no more than forty (40) hours each year (56 hours for the Fire Battalion Chief). Any balance remaining at the end of each calendar year will automatically be paid out at the employees’ hourly base pay in effect on that date.
• The Human Resources Technician and Human Resources Specialist are not entitled to receive administrative leave due to non-exempt FLSA status.

12 SECTION 15. OTHER LEAVES
Employee covered by this Plan shall receive all other leaves (Bereavement, Family and Medical, Jury Duty, Military, etc.) as provided to other Miscellaneous City employees.

SECTION 16. VACATION
A. Rate of Vacation Earned
Employees shall accrue vacation at the following rates, up to the following maximums, for continuous years of service performed:

Years of Service Hours Accrued Per Year Maximum Accrual (Hours) 0 – 4 96 192
5 – 9 144 288
10 – 15 160 320
16+ 192 384
The Fire Battalion Chief shall accrue vacation and have a maximum accrual cap at 1.4 times the amounts of employees in other classifications covered under the Plan.

The City Manager may grant a new employee a higher annual accrual rate based on years of public service with other agencies or other appropriate factors. If a new employee is granted a higher initial rate of annual accrual, the employee’s rate will stay the same until the employee advances, based on the years of City service, to the higher accrual step.

Employees covered by the Plan may cash out up to 52 hours of vacation annually, provided that he/she has a minimum of 20 days (160 hours) accumulated. The Fire Battalion Chief may cash out 72.8 hours of vacation annually, provided that he/she has a minimum of 224 hours accumulated.

Employees that transition from IEAs to the Plan shall accrue vacation at the rate that the employee receives under their IEA at the time of transition. The employee’s rate will stay the same until the employee advances, based on the years of City service, to the higher accrual step per the table above. Employees that transition from IEAs to the Plan shall not have any cap on maximum accrual.

SECTION 17. MEDICAL BENEFITS
A. Health Insurance
The City shall make the following contributions toward the employee’s health premium:
• Effective January 1, 2020, the City’s contribution toward the employee’s health premium will equal the 2019 Kaiser rate at each level of coverage. • Effective January 1, 2021, and every January 1 thereafter, the City’s contribution toward the employee’s health premium will equal the Kaiser rate for the prior calendar year at each level of coverage.

13 B. Retiree Medical Insurance
The City will contribute toward retiree health premiums as follows:

Existing City retirees and current City employees hired before September 1, 2010, receive a City contribution toward their retiree health premium equal to that provided to current active employees.

Current City employees hired before September 1, 2010, shall be offered the option to opt into the CalPERS Vesting Program upon retirement. If the employee opts-in to the CalPERS Vesting Schedule Program (GC 22893), the decision is irrevocable (permanent) as CalPERS does not allow the employee to opt out later.

Current City employees hired on or after September 1, 2010, will receive a City contribution toward their retiree health premium in an amount as described by the CalPERS Vesting Program (GC 22893), and summarized in the table below.

The CalPERS Vesting Program is regulated by Government Code 22893 and applies to City employees hired on or after September 1, 2010, and retired City employees hired before September 1, 2010, who voluntarily opt in upon retirement.

Every year CalPERS calculates the State contribution rates towards retiree health premiums, referred to as State Annuitant Contribution Rates. If the rate or vested amount does not cover the entire cost of the health premium, the retired employee is responsible for the difference.

A City retiree is eligible to receive a contribution towards the retiree medical premium if:

1. The City retiree has a minimum of ten (10) years of CalPERS earned service credit to receive 50% of the employer contribution.
a. Credited service is compensated CalPERS service time earned (G.C. 20069). b. Purchased “Additional Retirement Service Credit (ARSC)” does not qualify as it is not earned service.

2. Five (5) of those ten (10) years of CalPERS earned service credit must be performed at the City of Pinole.
a. Each additional CalPERS earned service credit year after the completion of ten years increases the City’s contribution percentage by 5% until the completion of 20 years, at which time the retiring employee is eligible for 100% of the State Annuitant Contribution Rate (100/90 formula).

CalPERS Credited
Years of Earned Service
Percentage of City
Contribution Based On
The State’s Rate
10 50
11 55
12 60
13 65
14 70

14 15 75
16 80
17 85
18 90
19 95
20 or more 100
C. Medical In-Lieu
Eligible full-time employees with alternate medical insurance shall be allowed to receive payment in lieu of medical insurance as follows:
• One-party coverage: $225
• Two-party coverage: $450
• Family coverage: $600
An employee must show proof of adequate medical insurance coverage under another health plan before the benefit may be received, and annually thereafter. Employees will be subject to provisions of the City's health plans in the event termination of in-lieu benefits and resumption of medical coverage is desired.

Employees electing the medical in-lieu option shall be entitled to an adjustment in the amount received for this option should their coverage status change. It is the duty of the employee to notify Human Resources of any such changes.

SECTION 18. DENTAL INSURANCE
A. Dental Insurance Provided
The City shall pay for the dental insurance premiums for employees covered by this Plan and their eligible dependents, if desired. Selection of the carrier shall be at the discretion of the City.

The City-provided dental insurance plan provides for a maximum annual dental payout of $1,500 total for each employee and their eligible dependents.

B. Orthodontic Insurance Provided
The City shall pay for the orthodontic insurance premiums for employees covered by this Plan and their eligible dependents, if desired. Selection of the carrier shall be at the discretion of the City.

The City-provided orthodontic insurance plan provides for a lifetime maximum orthodontic payout of $1,500 for each employee and for each employee’s eligible dependents.

SECTION 19. VISION INSURANCE

15 A. Vision Insurance Provided
The City agrees to pay the premium for full family vision care coverage that provides for one examination, one set of lenses, and one frame per year. Selection of the carrier shall be at the discretion of the City. The City provided plan shall provide for a $20 co- payment for examination and a $20 co-payment for materials.

SECTION 20. SECTION 125 FLEXIBILE BENEEFIT PLAN
A. The City shall establish and pay the costsfor administering a flexible benefit plan for this employee group. Selection of the benefit provider shall be at the discretion of the City. Effective the first full pay period in January 2024, the City shall make an annual (January 1 of each year) contribution of $1,2500.00 to a health care reimbursement flexible spending account for each medical plan subscriber. The annual contribution shall be prorated for newly hired or promoted medical plan subscribers.

SECTION 21. LIFE INSURANCE
A. Life Insurance Provided
The City agrees to provide term life insurance and accidental death and dismemberment insurance in the amount of one times (1x) the employee’s annual base wage salary. Selection of the carrier shall be at the discretion of the City.

SECTION 22. DISABILITY INSURANCE
A. Disability Insurance Provided
Effective the first full pay period following May 1, 2024, the City agrees to participate in the California State Disability Insurance (CASDI) program for employees covered by this Plan for short-term disability benefits and shall provide a Long-Term Disability (LTD) benefit to employees as defined below. The costs of the CASDI program are the responsibility of the employee, paid through payroll deductions.

Long-Term Disability
The City shall provide long term disability insurance of two- thirds ofsalary up to $6,000 per month ($4,000 maximum benefit) with a 90-day waiting period.

Effective the first full pay period following May 1, 2024, employees shall pay the monthly long-term disability insurance premium through bi-weekly, after-tax payroll deduction and the City shall issue insured employees with a long-term disability insurance premium reimbursement each pay period.

The City shall make coverage available to Police Safety employees interested in participating in Peace Officers’ Research Association of California (PORAC) long-term disability plan in lieu of the City’s LTD Plan. Effective the first full pay period following May 1, 2024, Police Safety employees shall pay the monthly PORAC long-term disability

16 insurance premium through bi-weekly, after-tax payroll deductions and the City shall issue insured employees with a long-term disability insurance premium reimbursement each pay period up to the City’s LTD Plan premium. Employee is responsible for any monthly premium payment if the PORAC LTD Plan exceeds the cost of the City’s LTD Plan.

SECTION 23. DOMESTIC PARTNER MEDICAL COVERAGE
A. Domestic Partnership and Coverage Defined
A Domestic Partnership is defined pursuant to the California Family Code. The City, in accordance with CalPERS regulations, will allow coverage for registered domestic partners of employees, as qualified dependents, under the medical, dental, and vision health care plans.

Prior to any coverage being provided, the employee must provide proof of domestic partnership registration with the California Secretary of State.

SECTION 24. INCENTIVE BENEFITS
A. Educational Degree
During the term of this Plan, the City will pay those employees who have earneddegrees from accredited college institutions, additional pay as follows:
• Associate of Art/Science Degree $ 75.00 per month
• Bachelor of Art/Science Degree $150.00 per month
• Master of Art/Science Degree $225.00 per month
An employee is only eligible to receive Educational Degree Pay under this section for one degree. An employee is not eligible to receive this pay for multiple degrees and/or disciplines.

This Educational Degree Pay shall only be paid to employees holding a degree beyond that which is required for their classification, as outlined in the classification description, and if a higher degree is determined to be beneficial by the City Manager, which shall not unreasonably be withheld.

B. Bilingual Pay
The City Manager may assign designated employee(s) to receive a monthly bilingual pay stipend of $200.00 per month. Such assignment shall be in writing and must be renewed on an annual basis. To be eligible to receive a bilingual pay differential, an employee must:
• Speak the recognized languages spoken in the City service area. • Agree to utilize their bilingual ability on the job.
• Demonstrate bilingual proficiency satisfactorily to an evaluating agency/individual. • Agree to maintain the necessary training and certification standards established by the City to continue to receive the bilingual pay stipend.

SECTION 25. RETIREMENT PLAN FOR EMPLOYEES

17 A. Retirement Plan Defined
The City shall contract with the California Public Employees Retirement System (CalPERS) for the purpose of allowing employees to earn retirement benefits.

B. CalPERS Contract Benefits – Classic Employees
For “Classic” Public Safety (3% @ 55 Plan) and Miscellaneous (2.5% @ 55 Plan) Members, the contract offers the following options:
• Military Buy Back - The choice to participate in the CalPERS Military Buy Back program is solely at the discretion and cost of the employee. • Third Level 1959 Survivors Benefits
• Single Highest Year Compensation Formula
• Service Credit for Unused Sick Leave
C. CalPERS Employer Contribution Rate Sharing Formula for ClassicEmployees The total amount owed by the City to CalPERS related to retirement benefits of City employees and annuitants is composed of the plan total normal cost and the plan total amortized cost, which together are the “Plan Total Cost”. City employees pay an “expected” employee contribution toward the plan total normal cost. Unless otherwise established between the City and employees, the City pays to CalPERS the plan total cost less the expected employee contribution, which is paid to CalPERS by the employee through payroll deduction.

Employees covered under the Plan will pay an amount above the expected employee contribution, calculated as described below.

Public Safety Employees
Employees covered by this Plan that participate in CalPERS as public safety plan Tier 1 (“Classic”) employees will contribute 9% of salary (expected employee contribution) and an additional 12.935% of salary (employee’s share of City rate). In the event the Plan Total Cost for the City’s Tier 1 public safety plan employees, when expressed as a percentage of payroll, increases in excess of 5.0% over the prior year’s contribution rate, the additional amount above the 5.0% increase shall be shared equally between the City and the employee. For example, if the employer contribution rate increases from one year to the next by 7%, then the City will pay 5% of that increase. For the remaining 2%, the City will pay 1% and the employee will pay 1%.

Effective the full pay period that contains July 1, 2022, the employees’ total CalPERS contribution (combined employee’s contribution and employee’s share of the City’s contribution) shall be reduced to fifteen percent (15%).

Miscellaneous Employees
Employees covered by this Plan that participate in CalPERS as Tier 1 (“Classic”) employees will contribute 8% of salary (expected employee contribution) and an additional 8.388% of salary (employee’s share of City rate). In the event the Plan Total Cost for the City’s Tier 1

18 employees, when expressed as a percentage of payroll, increases in excess of 4.0% over the prior year’s contribution rate, the additional amount above the 4.0% increase shall be shared equally between the City and the employee. For example, if the employer contribution rate increases from one year to the next by 6%, then the City will pay 4% of that increase. For the remaining 2%, the City will pay 1% and the employee will pay 1%.

Effective the full pay period that contains July 1, 2022, the employees’ total CalPERS contribution (combined employee’s contribution and employee’s share of the City’s contribution) shall be reduced to fifteen percent (15%).

D. CalPERS Contract Benefits – PEPRA Employees
Individuals first employed by the City on or after January 1, 2013, who are defined as “new members” by the Public Employees’ Pension Reform Act (PEPRA) of 2013, shall be enrolled in the CalPERS.

Employees classified as PEPRA Public Safety members will be enrolled in a 2.7% @ 57 plan.

Employees designated as Local Miscellaneous PEPRA members will be enrolled in a 2% @ 62 plan. Employees covered by the Plan enrolled in CalPERS as PEPRA Public Safety or Local Miscellaneous members will be responsible to pay a contribution to CalPERS equal to 50% of the total normal cost for their defined Plan as determined by CalPERS.

SECTION 26. DEFERRED COMPENSATION – 457 PLAN
The City shall make a 457 Plan and ROTH individual retirement account available for employees covered by the Plan to contribute to through payroll deduction.

Effective the full pay period following adoption of this Plan, the City shall provide up to $100.00 in a dollar for dollar “matching” monthly contribution to the 457 Plan for participating employees.

SECTION 27. CLOTHING AND EQUIPMENT ALLOWANCE
A. Uniform and Safety Equipment Allowance for Public SafetyEmployees Fire safety classifications covered by this Plan will receive an annual uniform allowance of $800 per year for items which are not solely for personal health and safety, to align with the International Association of Firefighters, Local 1230’s clothing allowance.

After voluntarily transitioning to this Plan or at the time that an employee’s Individual Employment Agreement expires, Fire safety classifications will be entitled to a clothing allowance of $1,000 per year.

Police safety employees covered by this Plan shall receive an annual uniform allowance of $1,000 for the purchase and maintenance of uniforms and accessories.

Effective the first full pay period in January 2024,the uniform allowance will be pro-rated and paid each pay period within the calendar year.

Police employees covered by this Plan shall receive an annual safety equipment allowance of $255 for the purchase of equipment such as a weapon, holster, duty belt, handcuffs, baton,

19 flashlight, etc. The safety equipment allowance shall be paid in the same fashion asthe uniform allowance described above.

B. Safety Shoe Allowance
The classifications listed under this section shall receive a safety shoe allowance in the amount of $200 per year.
• Public Works Manager
• Wastewater Treatment Plant Manager
The allowance provided under this section will be paid twice annually, one-half (1/2) in June and one-half (1/2) in December.

SECTION 28. AUTO ALLOWANCE
A. Police and Fire
The City shall provide the following classifications with a city-owned automobile for use in discharging their duties, subject to all federal and state tax laws. The City shall also provide all expenses related to gasoline, maintenance and insurance of said vehicle. The classifications covered under this subsection shall have the unrestricted use of said vehicle within the State of California and shall not drive outside the state unless receiving prior approval from the City Manager.
• Police Chief
• Police Lieutenant
• Fire Chief
• Fire Battalion Chief
B. All Other Employees
The City shall provide employees with an automobile allowance in the form of a per mile reimbursement per IRS-approved mileage rates. These payments shall be made in conjunction with the City's normal payroll periods and subject to all federal and state withholding and tax laws. Employees hired on or after November 17, 2020 shall be eligible to receive mileage reimbursement for use of their personal vehicle when conducting City business.

C. Elimination of Auto Allowance
Employees with IEA’s who voluntarily transitioned to the Plan, prior to the expiration of their IEA, and who were receiving a monthly auto allowance will continue to receive their monthly auto allowance in lieu of a per mile reimbursement.

SECTION 29. CELLPHONE ALLOWANCE
An employee covered under this Plan has the option to obtain a City-issued cellphone for business purposes. If the employee does not elect to receive a City-issued cellphone, the City shall provide the employee with a $65 monthly stipend. This stipend shall be payable on one pay period each month and be subject to all federal and state withholding and tax laws.

20 The employee hereby acknowledges and agrees that receipt of this stipend means that any voicemail, text, or e-mail messagesreceived on his or her device that are related to City business are the property of the City and are subject to disclosure in accordance with the Public Records Act and applicable case law. The employee further hereby confirms that he or she will provide authorization for the City to obtain such records from his or her service provider.

SECTION 30. FIRE BATTALION CHIEF BACKFILL FOR PARTNER AGENCY The Fire Battalion Chief classification is distinct among the classifications covered by the Plan in that it performs shift work. The City of Pinole is a party, with the Rodeo-Hercules Fire District and the Contra Costa County Fire Protection District, to the Battalion 7 agreement, through which, among other things, each party provides a Fire Battalion Chief on a rotating shift basis to cover the needs of the entire Battalion 7. From time to time, the Pinole Fire Battalion Chief is required to cover a shift as Battalion Chief for Battalion 7 that is additional to the City’s normal shifts. When the City’s Fire Battalion Chief covers the Battalion Chief duties for another agency, the Fire Battalion Chief shall receive compensation at a rate of one and one-half times his or her basic hourly salary for the hours worked, not to exceed the amount reimbursed by the other agencies.

SECTION 31. LONGEVITY PAY
Effective July 3, 2023, employees in public safety classifications shall be given additional pay computed on their base hourly rate of pay as follows:
• One percent (1%) pay for five (5) full continuous years of City service, or • Three percent (3%) pay for ten (10) full continuous years of City service.

Effective July 3, 2023, employees in miscellaneous classifications shall be given additional pay computed on their base hourly rate of pay as follows:
• One percent (1%) pay for five (5) full continuous years of City service, or • Two percent (2%) pay for ten (10) full continuous years of City service, or • Three percent (3%) pay for fifteen (15) full continuous years of City services.

This benefit shall not compound, nor be compounded by, any other additional compensation.

SECTION 32. PROFESSIONAL DEVELOPMENT
Subject to budgetary constraints, the City will pay for professional memberships, subscriptions, and training subject to the approval of the City Manager. The City will pay the expenses of transportation, food, lodging, and registration for management and confidential employee at meetings and trainings subject to the approval of the City Manager.

21 EXHIBIT “A”

MANAGEMENT GROUP SALARY RANGES
4% Cost of Living Increase, Effective 07/03/2023
1% State Disability Insurance Salary Offset, Effective 05/06/2024 4% Cost of Living Increase, Effective 07/01/2024 Management, eff. 07/03/2023 Minimum Annual Minimum Hourly Maximum Annual Maximum Hourly Assistant City Manager $ 212,739.56 $ 102.2786 $ 258,691.30 $ 124.3708 Police Chief $ 212,739.56 $ 102.2786 $ 258,691.30 $ 124.3708 Development Services Director/City Engineer $ 202,609.05 $ 97.4082 $ 246,372.61 $ 118.4484 Community Development Director $ 184,190.98 $ 88.5534 $ 223,976.23 $ 107.6809 Finance Director $ 184,190.98 $ 88.5534 $ 223,976.23 $ 107.6809 Fire Chief $ 184,190.98 $ 88.5534 $ 223,976.23 $ 107.6809 Human Resources Director $ 184,190.98 $ 88.5534 $ 223,976.23 $ 107.6809 Public Works Director $ 184,190.98 $ 88.5534 $ 223,976.23 $ 107.6809 Police Commander (eff. 02/20/2024) $ 175,324.45 $ 84.2906 $ 213,194.59 $ 102.4974 Community Services Director $ 167,355.97 $ 80.4596 $ 203,510.39 $ 97.8415 Building Official $ 159,385.82 $ 76.6278 $ 193,813.20 $ 93.1794 Fire Battalion Chief (contract for services, eff. 03/01/2023) $ 159,385.82 $ 76.6278 $ 193,813.16 $ 93.1794 Planning Manager $ 159,385.82 $ 76.6278 $ 193,813.16 $ 93.1794 Police Lieutenant $ 159,385.82 $ 76.6278 $ 193,813.16 $ 93.1794 Wastewater Treatment Plant Manager $ 159,385.82 $ 76.6278 $ 193,813.16 $ 93.1794 Capital Improvement & Environmental Program Manager $ 131,723.53 $ 63.3286 $ 160,175.82 $ 77.0076 Public Works Manager $ 131,723.53 $ 63.3286 $ 160,175.82 $ 77.0076 Recreation Manager $ 117,088.09 $ 56.2924 $ 142,379.12 $ 68.4515 Assistant to the City Manager $ 117,087.91 $ 56.2923 $ 142,378.90 $ 68.4514 Human Resources Analyst $ 92,849.52 $ 44.6392 $ 112,905.02 $ 54.2813 Deputy City Clerk $ 89,479.86 $ 43.0192 $ 108,807.51 $ 52.3113 Human Resources Specialist $ 84,408.71 $ 40.5811 $ 102,640.99 $ 49.3466 Human Resources Technician $ 76,735.19 $ 36.8919 $ 93,310.00 $ 44.8606 Management, eff. 05/06/2024 Minimum Annual Minimum Hourly Maximum Annual Maximum Hourly Assistant City Manager $ 214,866.95 $ 103.3014 $ 261,278.22 $ 125.6145 Police Chief $ 214,866.95 $ 103.3014 $ 261,278.22 $ 125.6145 Development Services Director/City Engineer $ 204,635.14 $ 98.3823 $ 248,836.33 $ 119.6329 Community Development Director $ 186,032.89 $ 89.4389 $ 226,215.99 $ 108.7577 Finance Director $ 186,032.89 $ 89.4389 $ 226,215.99 $ 108.7577 Fire Chief $ 186,032.89 $ 89.4389 $ 226,215.99 $ 108.7577 Human Resources Director $ 186,032.89 $ 89.4389 $ 226,215.99 $ 108.7577 Public Works Director $ 186,032.89 $ 89.4389 $ 226,215.99 $ 108.7577 Police Commander $ 177,077.65 $ 85.1335 $ 215,326.42 $ 103.5223 Community Services Director $ 169,029.53 $ 81.2642 $ 205,539.91 $ 98.8173 Building Official $ 160,979.68 $ 77.3941 $ 195,751.29 $ 94.1112 Fire Battalion Chief (contract for services, eff. 03/01/2023) $ 160,979.68 $ 77.3941 $ 195,751.29 $ 94.1112 Planning Manager $ 160,979.68 $ 77.3941 $ 195,751.29 $ 94.1112 Police Lieutenant $ 160,979.68 $ 77.3941 $ 195,751.29 $ 94.1112 Wastewater Treatment Plant Manager $ 160,979.68 $ 77.3941 $ 195,751.29 $ 94.1112 Capital Improvement & Environmental Program Manager $ 133,040.77 $ 63.9619 $ 161,777.57 $ 77.7777 Public Works Manager $ 133,040.77 $ 63.9619 $ 161,777.57 $ 77.7777 Recreation Manager $ 118,258.97 $ 56.8553 $ 143,802.91 $ 69.1360 Assistant to the City Manager $ 118,258.79 $ 56.8552 $ 143,802.69 $ 69.1359 Human Resources Analyst $ 93,778.01 $ 45.0856 $ 114,034.07 $ 54.8241 Deputy City Clerk $ 90,374.66 $ 43.4494 $ 109,895.58 $ 52.8344 Human Resources Specialist $ 85,252.80 $ 40.9869 $ 103,667.40 $ 49.8401 Human Resources Technician $ 77,502.55 $ 37.2608 $ 94,243.10 $ 45.3092 Page 223 of 586 22 Management, eff. 07/01/2024 Minimum Annual Minimum Hourly Maximum Annual Maximum Hourly Assistant City Manager $ 223,461.63 $ 107.4335 $ 271,729.35 $ 130.6391 Police Chief $ 223,461.63 $ 107.4335 $ 271,729.35 $ 130.6391 Development Services Director/City Engineer $ 212,820.55 $ 102.3176 $ 258,789.79 $ 124.4182 Community Development Director $ 193,474.20 $ 93.0164 $ 235,264.63 $ 113.1080 Finance Director $ 193,474.20 $ 93.0164 $ 235,264.63 $ 113.1080 Fire Chief $ 193,474.20 $ 93.0164 $ 235,264.63 $ 113.1080 Human Resources Director $ 193,474.20 $ 93.0164 $ 235,264.63 $ 113.1080 Public Works Director $ 193,474.20 $ 93.0164 $ 235,264.63 $ 113.1080 Police Commander $ 184,160.75 $ 88.5388 $ 223,939.48 $ 107.6632 Community Services Director $ 175,790.71 $ 84.5148 $ 213,761.50 $ 102.7700 Building Official $ 167,418.87 $ 80.4898 $ 203,581.34 $ 97.8756 Fire Battalion Chief (contract for services, eff. 03/01/2023) $ 167,418.87 $ 80.4898 $ 203,581.34 $ 97.8756 Planning Manager $ 167,418.87 $ 80.4898 $ 203,581.34 $ 97.8756 Police Lieutenant $ 167,418.87 $ 80.4898 $ 203,581.34 $ 97.8756 Wastewater Treatment Plant Manager $ 167,418.87 $ 80.4898 $ 203,581.34 $ 97.8756 Capital Improvement & Environmental Program Manager $ 138,362.40 $ 66.5204 $ 168,248.68 $ 80.8888 Public Works Manager $ 138,362.40 $ 66.5204 $ 168,248.68 $ 80.8888 Recreation Manager $ 122,989.14 $ 59.1294 $ 149,554.80 $ 71.9013 Assistant to the City Manager $ 122,989.14 $ 59.1294 $ 149,554.80 $ 71.9013 Human Resources Analyst $ 97,529.14 $ 46.8890 $ 118,595.43 $ 57.0170 Deputy City Clerk $ 93,989.64 $ 45.1873 $ 114,291.41 $ 54.9478 Human Resources Specialist $ 88,662.91 $ 42.6264 $ 107,814.10 $ 51.8337 Human Resources Technician $ 80,602.65 $ 38.7513 $ 98,012.82 $ 47.1215 Page 224 of 586

CITY COUNCIL
REPORT 9.J.

DATE: JUNE 25, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: MARKISHA GUILLORY, FINANCE DIRECTOR
SUBJECT: FY 2024/25 APPROPRIATIONS LIMIT

RECOMMENDATION
Adopt a resolution establishing the Fiscal Year (FY) 2024/25 Appropriations Limit.

BACKGROUND
On November 6, 1979, California voters passed Proposition 4 (the "Gann Limit” Spending Initiative), which added Article XIIIB to the California Constitution. The purpose of this law is to establish a limit on expenditure appropriations from tax sources that State and local governments are permitted to make in any given year.

Pursuant to Article XIIIB, the City is required to establish an annual Appropriations Limit. The appropriations subject to limitation are based on the 1978-79 appropriations adjusted for changes in the cost of living and population.

California Government Code Section 7910 requires each local government to establish its appropriations limit by resolution for each fiscal year. Adoption of the attached resolution will approve the City of Pinole’s FY 2024/25 Appropriations Limit at $170,199,403.

REVIEW AND ANALYSIS
The factors used to compute the annual appropriations limit are: (1) either the percentage change in California per capita personal income or the percentage change in the local property tax assessment roll from the preceding year due to the addition of local nonresidential construction in the City, and (2) either the City’s own population growth or the population growth of the entire County.

Each year, the State of California Department of Finance provides data on the percentage change in California per capita personal income and the population growth of all cities and counties (attached).

In 1991, the California State Board of Equalization asked all County Assessors to compute the annual change in nonresidential new construction. For Contra Costa County, the AuditorController's Office provides cities with these figures (attached).

For FY 2024/25, the respective State and County offices have provided the City with the following factors to be used in the Appropriations Limit computation:

• Change in California Per Capita Personal Income 3.62% increase • Change in Nonresidential New Construction 0.67% increase • Population Change City of Pinole 0.47% decrease
• Population Change Contra Costa County 0.12% increase
Staff recommends that the change in California per capita personal income and change in Contra Costa County population be used to compute the City’s Appropriations Limit, in line with past practice. The FY 2024/25 calculation is:

Per capita personal income converted to ratio: 3.62 + 100 = 1.0362 100
Population change converted to a ratio: 0.12 + 100 = 1.0012 100
Calculation of factor: 1.0362 X 1.0012 = 1.03744344
City of Pinole FY 2023/24
Appropriations Limit: $164,056,561
FY 2024/25 factor: x 1.03744344

FY 2024/25 Appropriations Limit: $170,199,403
City of Pinole FY 2024/25 Appropriations
Subject to the Limit: $21,614,591
Total Appropriations Under the Limit: $148,584,812
The Appropriations Limit applies to most tax revenues including property tax, sales tax, utility users’ tax, business license tax, transient occupancy tax, and vehicle in-lieu fee. It does not apply to revenues such as fees that recover operating costs. For FY 2024/25, the City’s annual Appropriations Limit is calculated at $170,199,403 as shown above. By law, the City’s allocation of certain types of tax revenue is not allowed to exceed this authorized spending limit. Many of the City’s revenues are not subject to the Appropriations Limit. The City of Pinole tax revenues subject to the Appropriations Limit will be approximately $21,614,591. So, the City’s estimated appropriations in FY 2024/25 that are subject to the Appropriations Limit are far below the limit itself.

FISCAL IMPACT
There is no fiscal impact created by the City Council’s adoption of this resolution to establish the City’s Appropriations Limit for FY 2024/25.

ATTACHMENTS
A. Resolution
B. State of California Department of Finance Price Factor and Population Information C. City of Pinole Nonresidential New Construction

RESOLUTION NO. 2024-___

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PINOLE, COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA, APPROVING THE CITY OF PINOLE’S APPROPRIATIONS LIMIT FOR FISCAL YEAR 2024/25
WHEREAS, Article XIIIB of the Constitution of the State of California requires an Appropriations Limit for governmental agencies to be established annually; and WHEREAS, the appropriation subject to limitation for each fiscal year shall be based on the 1978-79 appropriation adjusted for changes in the per capita cost of living and population; and
WHEREAS, the implementation of Article XIIIB requires the taxing agency to determine the Appropriations Limit according to the State of California; and WHEREAS, the City of Pinole calculated its Fiscal Year 2024/25 Appropriations Limit based on the percent of change in the population of the Contra Costa County, January 1, 2023 to January 1, 2024, and the change in the State of California’s per capita personal income.

NOW THEREFORE, BE IT RESOLVED that the Pinole City Council does hereby resolve:

1. That the growth factor has been calculated as follows:

1.0012 x 1.0362 = 1.03744344

2. That said growth factor, 1.03744344, shall be used to adjust the FY 2024/25 Appropriations Limit.

3. That the Appropriations Limit for 2024/25 fiscal year is hereby established as $170,199,403.

FURTHER, BE IT RESOLVED that the City of Pinole tax allocations for FY 2024/25 will be approximately $21,614,591, which is $148,584,812 below the authorized spending limit of $170,199,403.

PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 18th day of June 2024 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

I hereby certify that the foregoing resolution was introduced, passed and adopted on this 18th day of June, 2024.

____________________________
Heather Bell, CMC
City Clerk

Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Percent Change --- Population Minus Exclusions --- Population City 23-24 1-1-23 1-1-24 1-1-24
Contra Costa
Antioch 0.30 115,282 115,632 115,632
Brentwood 0.49 64,496 64,811 64,811
Clayton -0.04 10,687 10,683 10,683
Concord -0.12 121,663 121,513 121,513
Danville -0.40 42,736 42,567 42,567
El Cerrito 1.15 25,409 25,700 25,700
Hercules -0.53 26,202 26,063 26,063
Lafayette -0.06 24,823 24,808 24,808
Martinez 0.04 36,425 36,439 36,439
Moraga -0.44 16,858 16,784 16,784
Oakley 1.80 44,929 45,736 45,736
Orinda -0.21 19,231 19,191 19,191
Pinole -0.47 18,278 18,192 18,192
Pittsburg 0.47 74,736 75,085 75,085
Pleasant Hill -0.28 33,447 33,352 33,352
Richmond -0.34 113,122 112,735 112,735
San Pablo -0.24 31,163 31,088 31,088
San Ramon -0.28 82,754 82,525 82,525
Walnut Creek 0.61 69,010 69,433 69,433
Unincorporated 0.15 174,023 174,289 174,289
County Total 0.12 1,145,274 1,146,626 1,146,626
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

NONRESIDENTIAL NEW CONSTRUCTION

THE CITY OF PINOLE
2022/23 TO 2023/24 TAX YEARS - IN PARCEL NUMBER ORDER
Current Year
Improvements
Prior Year
Parcel Use Category Owner Improvements
Percent
Change
360-150-043-6 Commercial Wan Su Hwa Estate Of 642,359 1,224,000 + 90.5% 401-142-010-8 Commercial Dhaliwal Baljit S And Jagjeet K 141,000 429,420 + 204.6% 401-220-034-3 Institutional Roman Catholic Wel Cor Oakland 2,287,211 2,372,204 + 3.7% 402-281-001-6 Commercial Kirby Petroleum Inc 486,029 501,213 + 3.1% 4 Parcels Listed 3,556,599 4,526,837 + 27.3%
This calculation reflects the 2023/24 increase in taxable values for this city due to non-residential new construction as a percentage of the total taxable value Increase (as of the 2023/24 lien year roll date). This percentage may be used as an alternative to the change in California per-capita personal income for calculating a taxing agency's annual adjustment of its Appropriation Limit pursuant to Article XIIIB of the State Constitution as Amended by Proposition 111 in June, 1990.
970,238
-71,132
899,106
133,927,173

0.67%
Total Change in Non-Residential Valuation Due to New Development Less Automatic 2.000% Assessors's Inflation Adjustment
Actual Change in Non-Residential Valuation
Change in Total Assessed Value
= Alternate 2024/25 Appropriations Limit Factor
Includes taxable primary parcels with known nonresidential use codes, no prior lien year transfers, and improvement value increases greater than 2.0% Change in Total Assessed Value is the assessed value change of the locally assessed secured and unsecured tax rolls .

This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Data Source: Contra Costa County Assessor 2023/24 Secured Tax Rolls Prepared On 11/16/2023 By MV

CITY COUNCIL
REPORT 9.K.

DATE: JUNE 25, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: HEATHER BELL, CITY CLERK
SUBJECT: CALL ELECTION FOR CITY COUNCIL SEATS AND CITY TREASURER

SEAT, REQUEST CONSOLIDATION OF THE PINOLE MUNICIPAL
ELECTION ON NOVEMBER 5, 2024 WITH CONTRA COSTA COUNTY, AND

SET SPECIFICATIONS OF THE ELECTION ORDER

RECOMMENDATION
Adopt a resolution to consolidate the Pinole General Municipal Election with Contra Costa County to be held on Tuesday, November 5, 2024, for two City Council seats and City Treasurer and set specifications of the election order contained in the resolution.

BACKGROUND
Since the adoption of Ordinance No. 434 in 1982, the City of Pinole has consolidated with Contra Costa County for election services. The Council must adopt a resolution requesting the Contra Costa Board of Supervisors to consolidate the Pinole General Municipal Election with the election to be held on November 5, 2024.

This resolution authorizes the Contra Costa County Registrar of Voters to provide election services, which include ballot preparation, providing precinct personnel, and canvassing the votes. The resolution contains the Specification Order and establishes the obligations of both offices for their respective duties and charges. The County certifies the election results, which are accepted by the City, following the election.

REVIEW AND ANALYSIS
The City Council must deliver a resolution requesting and consenting to consolidation with the Contra Costa County Board of Supervisors no later than July 3, 2024.

The nomination period for obtaining and/or filing election papers from the City Clerk’s Office runs from Monday, July 15 through Friday, August 9, 2024. The nomination period is extended (for non-incumbents only) to August 14th if an incumbent fails to file nomination papers. Pinole City Hall is closed on Fridays, however the City Clerk will be available to receive nomination papers until 4:30 pm on Friday, August 9th. Potential candidates will be advised that they must make appointments with the City Clerk to pull and file nomination papers.

The County Clerk must deliver official election results to the City no later than 30 days following the election. Newly elected or re-elected Council members may be installed after receipt and acceptance of the certification of election.

CANDIDATE’S STATEMENT
California Elections Code Section 13307 provides for a candidate statement, which is voluntary, for candidates seeking local elective office. This candidate statement may include the name, age and occupation of the candidates and a brief description, of no more than 250 words, of the candidate’s education and qualifications expressed by the candidate. The section also provides that:

1. The “local governing body of the local agency” (City) may authorize an increase from 250 words to 400 words.

2. The City requires that each candidate filing a candidate statement pay the cost in advance as a condition of having his or her statement published in the voter pamphlet.

The attached resolution follows the long-standing policy for a 250-word Statement of Qualifications. According to the Contra Costa County Elections Department, for this election the cost for a Statement of Qualifications is approximately $393.00. The County has not yet finalized the cost. Final costs for candidate statements will be reflected in the nomination paperwork and candidate guide that is provided by the City Clerk. This fee is based on one 250-word statement, per candidate, in English, Spanish and Chinese, as required by the code.

The City of Pinole will collect the cost from each candidate submitting a statement.

TIE VOTE
The resolution references Pinole Ordinance 2004-08, which requires a special election in the event of a tie.

LOCAL VOLUNTARY CANDIDATE EXPENDITURE LIMITS
In 2008, the Council approved, by minute order, a voluntary campaign expenditure limit of $12,000 per election or election cycle. This is strictly voluntary and a candidate can either elect to sign to comply with the limit, or sign that they received the form and elect not to maintain the expenditure limit. The form will be made part of the Candidate Packet.

FISCAL IMPACT
The County’s estimate for election services is approximately $1.75 per registered voter.

Pinole’s registered voter population, per the February 22, 2024 District Registration Report, is 12,403. Based on that count, the estimated cost would be $21,446.25 plus other publication and printing costs borne directly by the City of Pinole. The final count will be based on the last certification by the Secretary of State approximately 60 days prior to the election. Staff has budgeted $22,500 in the preliminary FY 2024/25 budget for election expenses.

ATTACHMENTS
A. Resolution

RESOLUTION NO. 2024-XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PINOLE, COUNTY OF

CONTRA COSTA, STATE OF CALIFORNIA, REQUESTING AND CONSENTING TO

CONSOLIDATION WITH CONTRA COSTA COUNTY FOR THE PINOLE MUNICIPAL ELECTION ON NOVEMBER 5, 2024 AND SETTING SPECIFICATIONS OF THE

ELECTIONS ORDER
WHEREAS, Section 1.05.010 of the Pinole Municipal Code provides for a general municipal election to be conducted on the day of the statewide general election, the first Tuesday after the first Monday in November of each even-numbered year; and WHEREAS, Elections Code Section 10400 provides that the City Council may request the County Board of Supervisors to consolidate said general municipal election with the statewide general election; and
WHEREAS, Elections Code Section 10242 provides that the governing board shall determine the hours of opening and closing the polls; and WHEREAS, the City Council has ordered a Municipal Election to be held on Tuesday, November 5, 2024 to fill certain municipal offices; and WHEREAS, other elections may be held in whole or in part of the territory of the city and it is to the advantage of the City to consolidate pursuant to Elections Code Section 10002; and
WHEREAS, Elections Code Section 10002 requires the City to reimburse the County in full for the services performed upon presentation of a bill to the City by the County Elections Official; and
WHEREAS, Elections Code Section 13307 requires that before the nominating period opens the governing body must determine whether a charge shall be levied against each candidate submitting a candidate’s statement to be sent to the voters; may estimate cost; and determine whether the estimate cost be paid in advance; and WHEREAS, Elections Code Section 12101 requires the publication of a notice of the election once in a newspaper of general circulation in the city; WHEREAS, a tie-vote shall be determined by conducting a special runoff election pursuant to Section 15651(b) of the State of California Elections Code, and Pinole Municipal Code Section 1.05.020.

NOW, THEREFORE, BE IT RESOLVED

1. The Pinole City Council hereby calls for a General Municipal Election to be held on Tuesday, November 5, 2024.

2. Pursuant to the provisions of Sections 10400, 10402 and 10403 of the Elections Code of the State of California, it is in the best public interest to consolidate the Pinole General Municipal Election with the Statewide Election to be held on November 5, 2024; and

3. That the Contra Costa County Elections Department is authorized to specify the location for the tally of ballots, and canvass and certify the results to the City Clerk of the City of Pinole.

NOW, THEREFORE, BE IT FURTHER RESOLVED AND ORDERED by the Pinole City Council that an election be held in accordance with the following:

SPECIFICATIONS OF THE ELECTION ORDER

1. The Election shall be held on Tuesday, the 5
th day of November 2024. The
purpose of the election is to choose candidates for the following seats:

Two (2) Council Members
Term: Four (4) years
December 2024 – November 2028*
*Specific dates are dependent on the date of the certification of the election results in 2024 City Treasurer
Term: Four (4) years
December 2024 – November 2028*
*Specific dates are dependent on the date of the certification of the election results in 2024

2. This Pinole City Council hereby requests and consents to the consolidation of this election with other elections, which may be held in whole or in part of the territory of the city, as provided in Elections Code 10002.

3. The City will reimburse the County for the actual cost incurred in conducting the election upon receipt of a bill stating the amount due as determined by the County Elections Official.

4. The Pinole City Council has determined that the Candidate will pay for the Candidate’s Statement. The Candidate’s Statement will be limited to two hundred fifty (250) words. As a condition of having a Candidate’s Statement published in the voter information guide, the candidate shall pay the cost which is estimated at of $393.00, at the time of filing.

5. The City of Pinole is responsible to publish the Notice of Election in the East Bay Times, which is a newspaper of general circulation that is published daily in the city.

6. The City Council has determined that the action to be taken in the event of a tie vote is as follows, pursuant to Ordinance 2004-08 approved on August 3, 2004, and codified as Section 1.05.020 of the Pinole Municipal Code:
“1.05.020 Tie Vote.
a. Whenever an election for the position of Council Member results in a “tie

vote,” defined herein as an occurrence where two or more candidates receive an equal number of votes and the highest number of votes and the number of “tied” candidates exceeds the number of positions available to be filled, the City Council shall conduct a special runoff election pursuant to Section 15651(b) of the Elections Code of the State of California.
b. Pursuant to Section 15651(b), the City Council shall call for the runoff election to be held on a Tuesday not less than forty (40), nor more than one hundred twenty- five (125) days after the administrative or judicial certification of the election that resulted in a tie vote. The City Council shall direct the City Clerk to conduct all necessary steps and expend the funds necessary to conduct the runoff election.
c. If a regular election is to be held within that time period, the special runoff election shall be held on the same day as, and consolidated with, the regular election.”

7. The City directs that a certified copy of this Resolution be forwarded to the Registrar of Voters, and the Board of Supervisors of Contra Costa County.

PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 18th day of June 2024 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

I hereby certify that the foregoing resolution was regularly introduced, passed, and adopted on the 18th day of June, 2024.
____________________________
Heather Bell, CMC
City Clerk

CITY COUNCIL
REPORT 11.A.

DATE: JUNE 25, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: MARKISHA GUILLORY, FINANCE DIRECTOR
SUBJECT: FINAL PROPOSED FY 2024/25 OPERATING AND CAPITAL BUDGET

RECOMMENDATION
City staff recommends that the City Council adopt a resolution approving the Final Proposed Fiscal Year (FY) 2024/25 Operating and Capital Budget (Attachment A) and provide direction to staff on any amendments to the Final Proposed budget.

BACKGROUND
The City operates on an annual budget cycle. Through the budget, the City Council approves revenue estimates and authorizes City staff to expend the City’s limited financial resources.

City staff is responsible for preparing a proposed budget for City Council’s consideration, modification, and adoption.

As noted above, the City goes through an annual process of developing a budget for the upcoming fiscal year. The City’s budget is considered an “incremental” budget, meaning that the budget for the upcoming year is developed based on the current year’s budget and includes incremental changes. City staff takes the following steps to create the Preliminary Proposed budget:

1. Finance Department uses the current FY 2023/24 budget, which incorporates any midyear changes approved by the City Council, as the starting point;

2. Finance Department creates a “baseline” budget for FY 2024/25 by taking the ongoing revenues and expenditures included in the current FY 2023/24 budget and factoring in known or assumed changes to revenues and expenditures (i.e., forecasted changes to different revenue streams, general inflation, known changes to debt service, etc.);

3. Departments review and confirm the known and assumed changes incorporated into the baseline budget;

4. Departments submit requests for changes from the baseline budget to address proposed special projects or increased service levels; and

5. Finance Department and City Manager consider department requests for changes to the baseline budget and prepare a Preliminary Proposed budget for the City Council’s consideration.

City staff presented the baseline General Fund budget to the Finance Subcommittee on April 16, 2024 and to the City Council at a special meeting on April 30, 2024 to receive feedback on the assumptions contained in the baseline budget. The Finance Subcommittee and City

Council did not direct staff to make any changes to the baseline General Fund budget. Staff has reviewed and revised the baseline budget multiple times to ensure that it does not include any one-time revenues or expenditures and that all of the estimates it contains are as precise as feasible. This resulted in a revised baseline budget.

At its meeting on May 21, 2024, the City Council directed staff to prepare detailed six percent (6%) and ten percent (10%) budget reduction scenarios, indicating the fiscal and operational impacts of these substantial budget cuts, in response to the projected $1.3 million budget gap.

City departments completed the exercise as directed and submitted reductions for Council consideration as well as other potential budget balancing strategies at the June 4, 2024 Council meeting. At the same meeting, Council directed staff to implement a number of balancing strategies in the next version of the budget, the Final Proposed version.

City staff is required by the City’s Financial Policy on a Structurally Balanced Budget to create a proposed General Fund operating budget that is structurally balanced, meaning that ongoing revenues equal or exceed ongoing expenditures. The baseline General Fund budget initially had a shortfall of $1.3 million. Staff incorporated budget balancing strategies directed by the City Council. This has resulted in a Final Proposed Fiscal Year (FY) 2024/25 Operating and Capital Budget that is structurally balanced.

REVIEW AND ANALYSIS
The Final Proposed budget (Attachment A) contains staff’s recommendations regarding revenues and expenditures for FY 2024/25. The total (all funds) revenue budget is approximately $49.4 million. The City’s total (all funds) expenditure budget is approximately $95.1 million. One-time expenditures are paid for using one-time revenues and other sources, including fund balance, which is why total expenditures can exceed total revenues. The budget projection assumes a net use of fund balance of $45.6 million for all funds combined. The majority of the use of fund balance is for several large, multi-year capital improvement projects, notably in the wastewater enterprise fund. It is important to note that the total estimated costs of capital projects are budgeted in year one (FY 2024/25) of the Capital Improvement Plan (CIP) although some projects may take several years to complete. The total costs are budgeted up front to earmark the full amount of funding needed to complete the CIP projects.

This is a new budgeting practice for the City. In the past, the City only encumbered the firstyear cost of multi-year capital projects. The cost for subsequent years of multi-year projects was left in fund balance as unassigned. Because the full cost to complete a capital project is now encumbered in the first year of a multi-year capital project, this reduces unassigned fund balance in funds that support capital projects, including the General Fund.

The General Fund (including Measure S 2006 and 2014) total revenue budget is approximately $27.9 million, and its total expenditure budget is approximately $36.8 million. The Final Proposed budget is structurally balanced, meaning that revenues are sufficient to cover expenditures. The Final Proposed budget includes the use of approximately $8.9 million from the General Fund and Measure S unassigned fund balance to fund several one-time capital projects, most of which were budgeted in the FY 2023/24 Operating and Capital Budget but were not completed and have been carried over.

The FY 2024/25 Budget is a status quo budget, meaning that service levels and revenue mechanisms in the budget are essentially the same as those in the current year budget, FY

2023/24. While the budget is balanced, a number of one-time balancing strategies had to be instituted to close the initial $1.3 million budget gap. The strategies included reducing operating expenditures in several departments’ budgets, freezing vacant positions in the Police and Public Works departments, and reducing the General Reserve from 50% to 45% of total General Fund ongoing expenditures to transfer funds into the General Fund. The shortfall is primarily due to expenditures increasing at a faster rate than revenues. The City maintains a stable revenue base, but it is not enough to sustain the higher increases in expenditures.

City staff will undertake a thoughtful and substantial set of programs and activities in FY 2024/25. Staff will complete routine work and staff-initiated special projects to improve efficiency and services; 2020-2025 Strategic Plan “strategies”; Capital Improvement Plan (CIP) projects; and other Council-directed special projects. These Council-directed special projects, which are all consistent with City goals.

City staff believes that it will be able to complete most of the Council-directed special projects listed below by the end of FY 2024/25, and they have been included in the Final Proposed budget, but staff does not have the capacity to take on any additional special projects. Staff recommends that the City adopt a practice of not adding any special projects unless an existing comparable special project is eliminated.

Final Proposed Baseline Budget
As noted above, it is a goal of the City’s Financial Policy on a Structurally Balanced Budget, and a public finance best practice, to create a structurally balanced proposed budget. The table below shows the ongoing General Fund revenues and expenditures in the Final Proposed budget. The budget is balanced and has a small surplus of $40,465.

Table 1 – General Fund Baseline Budget
FY 2024/25
Final Proposed
Baseline Budget
Sources
Property Tax $ 6,168,067
Sales Tax (General, Measure S 2006
and 2014)

9,698,436
Utility Users' Tax

2,285,000
Franchise Tax

850,000
Intergovernmental Tax

2,402,673
Transient Occupancy Tax

460,000
Business License

460,000
Charges for Services

1,774,307

Other Revenues

852,160
Total Revenues

24,950,643
Transfer In – Pension Trust

2,425,000
Transfer In – General Reserve 514,370
Total Sources

27,890,013
Uses
By Category
Salaries & Wages

9,836,668
Benefits

7,230,481
Professional Services 8,420,956
Other Operating

322,711
Materials and Supplies

185,033
Interdepartmental Charges

(492,148)
Asset/Capital Outlay

148,440

Debt Service

636,107
Total Expenditures By Category

26,919,754
Transfers Out

1,561,300
Total Uses By Category 27,849,548
Net Surplus/(Deficit) $ 40,465
Budget Balancing Strategies Implemented
In order to address the initial $1.3 million budget shortfall, the City Council directed each City department to prepare six percent and ten percent budget reduction scenarios. Council also considered eliminating funding for several vacant positions and reducing the General Reserve from 50% to 45% of total General Fund ongoing expenditures and transferring the difference into the General Fund. Table 2 below summarizes the Council-directed budget balancing strategies.

Table 2 – Council-Directed Budget Balancing Strategies
Department Description Amount

1 City Council Reduce funding for City Council intern
program from five to two interns.
$ 21,300
2 City Clerk Reduce funding for staff travel & training. 5,860 3 Human Resources Reduce funding for items listed in the six percent budget reduction scenario,
including various professional services and
staff travel & training.
57,000
4 City Attorney Reduce funding for items listed in the ten percent budget reduction scenario,
including eliminating the Municipal Code
Update Subcommittee and City Attorney
office coverage of Planning Commission
Meetings, unless needed or required for a
City Attorney representative to attend
Planning Commission.
33,004
5 CDD/Economic Development Reduce funding for economic development support to implement the Economic
Development Strategy.
19,025
6 Public Works Eliminate funding for recommendations of the Beautification Ad Hoc Subcommittee.
10,000
7 Public Works Freeze the vacant Associate Civil Engineer position (also funded by other Non-General
Funds).
87,409
8 Public Works Freeze the vacant Capital Improvement
Projects Manager position (also funded by
other Non-General Funds).
40,178
9 Police Freeze the vacant Police Sergeant
position.
203,831
10 Police Freeze two vacant Police Officer positions. 356,472 11 Non-Departmental Eliminate funding for the Fourth of July event. The amount budgeted for the event
was $50,000, not $120,000 as referenced
during the 6/4/24 Council meeting.
50,000
12 Non-Departmental Reduce the General Reserve from 50% to 45% and transfer the difference of $514,370
into the General Fund. After the transfer,
the estimated ending balance in the
General Reserve is $10 million.
514,370
Total $ 1,398,449
One-Time Budget Items and Capital Improvement Projects
The FY 2024/25 Final Proposed budget includes funding for a number of Council-directed special projects, beyond staff’s baseline work, Strategic Plan strategies, and Capital Improvement Plan (CIP) projects, summarized below. As one-time, non-recurring items, these initiatives and projects will be funded by unassigned fund balance in the General Fund and Measure S Funds. Note that only the capital improvement projects that are funded by the General Fund are shown in Table 3. All capital improvement projects and their respective funding sources are detailed in the FY 2024/25 Five-Year Capital Improvement Plan.

Table 3 – One-Time Budget Items and Capital Improvement Projects (Some are Projects Budgeted in FY 2023/24, but Not Completed, so Carried Forward to FY 2024/25) Department One-Time Operating Items Proposed

Budget
CDD/Economic
Development
Economic Development Strategy - Final
Branding
$10,000
CDD/Economic
Development
Meeting/Workshop/Mixers 5,000
CDD/Economic
Development
Tobacco Education Related (Grant Funded) 10,000
CDD/Economic
Development
Advertising (General and Industry-Specific) 2,000
CDD/Economic
Development
Marketing Materials 5,000
CDD/Economic
Development
Business Development/Community Help
Reserve
10,000
CDD/Economic
Development
Revitalization Reserve 10,000
City Clerk Policies & Procedures Update Support 20,000
City Council City Council Retreat/Planning Workshop 10,000 City Manager DEI Consulting 40,000
City Manager EOP Training (citywide) 20,000
Finance Ballot Measure Consulting 40,000
Finance Grants Consulting 48,000
Information Technology Professional Services 68,222
Police CERT Program Supplies 20,000
Public Works Active Transportation Plan 25,000
Public Works Emergency Power for Critical Facilities 200,000 Public Works Recycled Water Feasibility 60,000
Public Works City Hall planting/landscaping 20,000
Public Works GoGov or Similar App 5,000
Public Works On-call Consultants for Capital Projects 75,000 Public Works Storm Drainage Master Plan 150,000
Public Works Pedestrian Bridge Inspection & Maintenance 50,000 Total One-Time Operating Items 903,222
Department Asset/Capital Outlay Proposed Budget
Community Services Restroom Walls/Floor Repair 11,000
Information Technology Computer Equipment Replacement 137,959 Police Alex Clark Room Transformation 20,000
Public Works Weatherization/Energy Efficiency Program 250,000 Public Works Brandt St. Improvements 170,000
Public Works Street Improvements 200,000
Public Works Senior Center Auxiliary Parking Lot 1,530,000 Public Works Road Maintenance Repairs 1,750,000
Public Works Citywide Roof Repairs and Replacement 900,000 Public Works City Hall Modernization 200,000

Public Works Senior Center Modernization 205,000
Public Works Public Safety Building Modernization 450,000 Public Works Tiny Tot Improvements 50,000
Public Works Skatepark Rehabilitation 150,000
Public Works Replace Parks' Chips/Rubber Matting 50,000 Public Works San Pablo Ave. Bridge Replacement 300,000
Public Works Safety Improvement Arterial Roadway 35,960 Public Works Pinole Smart Signals 154,302
Public Works Sidewalk/ADA Curb Ramp Program 150,000
Public Works Roble Road Drainage Improvements 700,000
Public Works Storm Drain Creek Discharge 600,000
Total Capital Improvement Projects 8,014,221
Total $8,917,443

FISCAL IMPACT
The City Council’s review and direction on the Final Proposed Fiscal Year (FY) 2024/25 Operating and Capital Budget does not itself have any fiscal impact on the City. The fiscal impact of the Final Proposed budget is well described in the budget document itself (Attachment A).

ATTACHMENTS
A. Resolution
B. Final Proposed FY 2024-25 Operating and Capital Budget C. Exhibit A - Budget Summaries
D. Exhibit B - Budgeted Positions

RESOLUTION NO. 2024-__

A RESOLUTION OF THE CITY OF PINOLE, COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA, ADOPTING THE FINAL PROPOSED FISCAL YEAR (FY) 2024/25

OPERATING AND CAPITAL BUDGET
WHEREAS, the City Manager has presented a Final Proposed Fiscal Year (FY) 2024/25 Operating and Capital Budget for the City of Pinole; and WHEREAS, the City Council has held a public meeting on the matter of the Final Proposed Fiscal Year (FY) 2024/25 Operating and Capital Budget and has discussed the individual department and fund budgets with City staff members; and WHEREAS, the City Council has solicited public input on the Final Proposed Fiscal Year (FY) 2024/25 Operating and Capital Budget.

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

Section 1. The Final Proposed Fiscal Year (FY) 2024/25 Operating and Capital Budget commencing July 1, 2024 and ending June 30, 2025 is hereby approved and adopted.

Section 2. That appropriations are established by fund as follows:
100 General Fund $23,964,194
105 Measure S - 2006 Fund 5,910,968
106 Measure S - 2014 Fund 6,891,797
150 General Reserve Fund 514370
160 Equipment Reserve Fund 205,000
200 Gas Tax Fund 2,203,073
201 Restricted Real Estate Maintenance Fund 26,000
203 Public Safety Augmentation Fund 547,869
205 Traffic Safety Fund 56,886
206 Supplemental Law Enforcement Svc Fund 295,613
207 NPDES Storm Water Fund 370,304
209 Recreation Fund 2,382,008
212 Building & Planning Fund 2,042,321
213 Refuse Management Fund 167,498
214 Solid Waste Fund 144,796
215 Measure C and J Fund 1,614,881
225 Asset Seizure-Adjudicated Fund 20,544
276 Growth Impact Fund 1,623,000
285 Housing Assets Fund 323,551
310 Lighting & Landscape District Fund 85,175
317 Pinole Valley Caretaker Fund 14,999
324 Public Facilities Fund 70,000
325 City Street Improvements Fund 3,687,304
377 Arterial Streets Rehabilitation Fund 895,000
500 Sewer Enterprise Fund 37,689,718
505 Cable Access TV Fund 830,672

700 Pension Trust Fund 2,475,000
TOTAL OPERATIONS BUDGET $95,052,540
Section 3. That the appropriations established for FY 2024/25 by fund shall be allocated to individual departments as presented in Exhibit A (Budget Summaries). In addition, the unspent balance of capital projects, grants, and encumbrances authorized in the prior fiscal year are authorized to be carried over to FY 2024/25.

Section 4. That the control point for expenditures is herein established at the fund department level as set forth in Exhibit A (Budget Summaries).

Section 5. That authority is granted to each department manager under the direction of the City Manager to allocate appropriations within the department control limits among specific line items in the most cost-effective manner that maintains or enhances the delivery of programs and services to the residents of the City of Pinole.

Section 6. That the Finance Director will prepare Quarterly Reports to the City Council reporting the budget performance to the control limits herein established.

Section 7. Estimated revenues and transfers anticipated to fund appropriations for expenditures for the FY 2024/25 Fiscal Year are presented in Exhibit A (Budget Summaries). Any changes to the established control limits will be subject to approval by resolution of the City Council.

Section 8. All positions listed in the “Budgeted Positions (FTE)” (Exhibit B) are hereby authorized positions.

NOW, THEREFORE, BE IT FURTHER RESOLVED by the City Council of the City of Pinole that any amendments to the Final Proposed FY 2024/25 Operating and Capital Budget authorized by the City Council will be incorporated into the Budget before it is implemented on July 1, 2024.

PASSED AND ADOPTED this 18th day June 2024, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

I hereby certify that the foregoing resolution was introduced, passed and adopted on this 18th day of June, 2024.

____________________________
Heather Bell, CMC
City Clerk

Fiscal Year 2024/25

OPERATING AND

CAPITAL BUDGET
Final Proposed - June 18, 2024

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June 18, 2024
Dear City Council and Residents -
City staff is pleased to present the Final Proposed Fiscal Year (FY) 2024/25 Operating and Capital Budget (“FY 2024/25 Budget”).

City staff is responsible for preparing a proposed budget for City Council’s consideration. The FY 2024/25 Budget incorporates input that was provided by the City Council and members of the community through multiple meetings of the Finance Subcommittee, City Council, and other engagement opportunities.

The FY 2024/25 Budget is a status quo budget meaning that service levels and revenue mechanisms in the budget are essentially the same as those in the current year budget, FY 2023/24. While the budget is balanced, a number of one-time balancing strategies had to be instituted to close the initial $1.3 million budget gap. The strategies included reducing operating expenditures in several departments’ budgets, freezing vacant positions in the Police and Public Works departments, and reducing the General Reserve from 50% to 45% of total General Fund ongoing expenditures to transfer funds into the General Fund.

The Pinole community demonstrated incredible resilience while facing the COVID-19 aftereffects and other economic challenges. The City has maintained all core municipal services. As COVID-19 waned, the City began work on and completed a number of special projects and program expansions to improve City operations and community quality of life. The City added a number of new staff positions in FY 2022/23 to add capacity, and also entered a contract with Contra Costa County Fire Protection District (CCCFPD) for fire protection and emergency medical services. The City’s accomplishments in 2023 and plans for 2024 are well-summarized in the City of Pinole 2023 Year in Review and 2024 Look Ahead document, which was recently published.

In FY 2024/25, the City will continue to work on completing the City’s 2020 – 2025 Strategic Plan strategies, Capital Improvement Plan (CIP) projects, routine staff work, staff-initiated process improvements, and other Council-directed special projects. These include the completion of the Active Transportation Plan, advancement of a Climate Action and Adaptation Plan (CAAP), development of a Storm Drain Master Plan and Facilities Master Plan, and a feasibility assessment regarding recycled water. It is a thoughtful and ambitious work program that will create improved services and plans for a better future.

City of Pinole i

Looking to the future, the City completed strategic financial planning efforts which included developing a 20-year financial forecast. The City’s long-term financial forecast shows that ongoing City revenues are not expected to be sufficient to cover ongoing routine City services, and existing City revenue mechanisms are not going to be sufficient to address the City’s two main unfunded liabilities, which are deferred capital maintenance and other post-employment benefits (medical insurance coverage for retired City employees). The strategic financial planning report illustrates all of the City’s mandatory and discretionary future financial obligations and identifies potential measures to address them.

A key goal of the City’s is to engage with the community and provide welcoming, high-quality services. City staff looks forward to working with you to make Pinole the best that it can be for current and future generations. Please connect and engage with the City through its numerous platforms.

I would like to thank all of the members of the community that participated in this year’s budget development process, as well as the City’s Finance Department for preparing the budget.

Sincerely,
Neil Gang
Interim City Manager
City of Pinole ii

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Table of Contents
Table of Contents
City of Pinole iii

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Table of Contents
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City of Pinole iv

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Table of Contents
FISCAL YEAR (FY) 2024/25 OPERATING AND CAPITAL BUDGET

TABLE OF CONTENTS
Letter of Transmittal ..................................................................................................................i Table of Contents .....................................................................................................................iii Executive Summary..................................................................................................................1 Executive Summary.................................................................................................................3 Background...............................................................................................................................9 Elected Officials and Department Heads ...............................................................................11 Strategic Plan 2020 – 2025 Vision, Mission, and Goals.........................................................13 Profile of the City ...................................................................................................................14 City Organizational Structure.................................................................................................15 Budget Development Process and Budget Award ...............................................................17 Budget Development Process ...............................................................................................19 Budget Award........................................................................................................................23 Revenue and Expenditure Summaries ..................................................................................25 General Fund Revenue and Expenditures.............................................................................27 Major Non-General Funds .....................................................................................................39 All Funds Revenue and Expenditures....................................................................................43 Long-Term Financial Forecast...............................................................................................57 Budget Positions....................................................................................................................61 Labor Allocations...................................................................................................................65 Department Budgets...............................................................................................................67 Elected Officials.....................................................................................................................69 City Council .......................................................................................................................69 City Treasurer....................................................................................................................75 Appointed Officials.................................................................................................................77 City Manager .....................................................................................................................77 Information Technology .................................................................................................82 Pinole Community Television ........................................................................................85 City Attorney ......................................................................................................................91 City Clerk ...........................................................................................................................95 Administration........................................................................................................................99 Finance..............................................................................................................................99 Human Resources ...........................................................................................................103 Public Safety .......................................................................................................................109 City of Pinole v

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Table of Contents
Police...............................................................................................................................109 Fire ..................................................................................................................................123 Public Works .......................................................................................................................127 Administration & Engineering...........................................................................................135 Road Maintenance...........................................................................................................137 Facility Maintenance ........................................................................................................140 National Pollutant Discharge Elimination System (NPDES) Storm Water ........................143 Park Maintenance............................................................................................................145 Waste Reduction .............................................................................................................148 Lighting & Landscape District...........................................................................................149 Water Pollution Control Plant ...........................................................................................150 Community Development ....................................................................................................157 Planning...........................................................................................................................164 Building Inspection...........................................................................................................166 Successor Agency Administration....................................................................................168 Housing Assets for Resale...............................................................................................169 Code Enforcement...........................................................................................................170 Economic Development ...................................................................................................172 Community Services............................................................................................................173 Administration..................................................................................................................178 Recreation .......................................................................................................................180 Senior Center ..............................................................................................................180 Tiny Tots .....................................................................................................................183 Youth Center ...............................................................................................................185 Swim Center................................................................................................................187 Memorial Hall ..............................................................................................................188 Tennis .........................................................................................................................189 Library Services...........................................................................................................190 Animal Control.............................................................................................................191 General Government ...........................................................................................................193 Schedule of Transfers .................................................................................................197 Debt Obligations..........................................................................................................199 Appendix ...............................................................................................................................201 Accounting Basis.................................................................................................................203 Monitoring the Budget .........................................................................................................203 Fund Structure.....................................................................................................................203 Glossary of Budget Terms & Acronyms ...............................................................................207 Financial and Investment Policies........................................................................................213 Employee Compensation and Benefits ................................................................................217 Jurisdictional Comparison....................................................................................................219 City of Pinole vi

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Executive Summary
Executive Summary
City of Pinole 1

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Executive Summary
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City of Pinole 2

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Executive Summary

EXECUTIVE SUMMARY
The City operates on an annual budget cycle. Through the budget, the City Council approves revenue estimates and authorizes City staff to expend the City’s limited financial resources. City staff is responsible for preparing a proposed budget for City Council’s consideration.

The Fiscal Year (FY) 2024/25 Operating and Capital Budget was created through a collaborative, iterative process involving the City Council, community, and City staff and includes the creation of a Preliminary Proposed, Revised Proposed, and ultimately Final Proposed budget. The budget development process is more fully described in the Budget Development Process section below.

The Fiscal Year (FY) 2024/25 Operating and Capital Budget is primarily a status quo budget, meaning that it does not include any major changes to City programs or services.

The City’s all funds revenue in the Fiscal Year (FY) 2024/25 Operating and Capital Budget is approximately $49.4 million, and all funds’ expenditures are approximately $95.1 million. The budget projection assumes a net use of fund balance of $45.6 million for all funds combined as shown in Table 1 below. The majority of the use of fund balance is for several large, multi-year capital improvement projects, notably in the wastewater enterprise fund. It is important to note that the total estimated costs of capital projects are budgeted in year one (FY 2024/25) of the Capital Improvement Plan (CIP) although some projects may take several years to complete. The total costs are budgeted up front to earmark the full amount of funding needed to complete the CIP projects. This is a new budgeting practice for the City. In the past, the City only encumbered the first-year cost of multi-year capital projects. The cost for subsequent years of multi-year projects was left in fund balance as unassigned. Because the full cost to complete a capital project is now encumbered in the first year of a multi-year capital project, this reduces unassigned fund balance in funds that support capital projects, including the General Fund.

City of Pinole 3

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Executive Summary
Table 1 – All Funds Budgeted Revenues and Expenditures
Fund
Estimated
Beginning
Fund Balance
July 1, 2024
Total
Revenues
Total
Expenditures
Contribution
To/(From)
Fund Balance
Estimated
Ending
Fund Balance
June 30, 2025
General Fund
General Fund (including Measure S 2006
and 2014) $ 9,470,946 $ 27,890,013 $ 36,766,959 $ (8,876,946) $ 594,000 General Reserve Fund 10,215,387 309,000 514,370 (205,370) 10,010,017 Equipment Reserve Fund 231,732 150,000 205,000 (55,000) 176,732 Special Revenue Funds
Gas Tax Fund 1,326,189 1,046,400 2,203,073 (1,156,673) 169,516 Restricted Real Estate Maintenance Fund 162,237 39,991 26,000 13,991 176,229 Public Safety Augmentation Fund 358,392 249,855 547,869 (298,014) 60,378 Traffic Safety Fund 274,081 46,500 56,886 (10,386) 263,695 Supplemental Law Enforcement Fund 285,497 175,000 295,613 (120,613) 164,884 NPDES Storm Water Fund (65,529) 253,272 370,304 (117,032) (182,561) Recreation Fund (0) 1,255,656 2,382,008 (1,126,352) (1,126,353) Building & Planning Fund (1,846,664) 1,482,526 2,042,321 (559,795) (2,406,460) Refuse Management Fund 42,157 66,060 167,498 (101,438) (59,281) Solid Waste Fund 2,525,024 368,000 144,796 223,204 2,748,228 Measure C/J Fund 2,388,533 1,152,257 1,614,881 (462,624) 1,925,909 Rate Stabilization Fund 213,313 - - - 213,313
Asset Seizure-Adjudicated Fund 22,386 - 20,544 (20,544) 1,842 Growth Impact Fund 3,461,487 1,039,594 1,623,000 (583,406) 2,878,082 Housing Assets Fund 8,014,224 55,000 323,551 (268,551) 7,745,673 Capital Projects Funds
Lighting & Landscaping District Fund 27,418 63,911 85,175 (21,264) 6,154 Pinole Valley Caretaker Fund (983) 15,000 14,999 1 (982) Public Facilities Fund 471,649 - 70,000 (70,000) 401,649 City Street Improvements Fund 1,926,831 2,064,683 3,687,304 (1,622,621) 304,210 Arterial Streets Rehabilitation Fund 961,137 250,000 895,000 (645,000) 316,137 Parks Grants 21,522 - - - 21,522
Enterprise Funds
Sewer Enterprise Fund 16,889,155 10,364,403 37,689,718 (27,325,315) (10,436,159) Cable Access Television (PCTV) (0) 368,533 830,672 (462,139) (462,139) Information Systems Fund (50) - (50)
Fiduciary/Agency Funds
Pension Fund 13,430,374 700,000 2,475,000 (1,775,000) 11,655,374 Recognized Obligation Retirement Fund - - - - -
Total $ 70,806,444 $ 49,405,654 $ 95,052,540 $ (45,646,886) $ 25,159,559 The General Fund (including Measure S 2006 and 2014 Funds) revenue is approximately $27.9 million, and General Fund expenditures are approximately $36.8 million. The budget includes the use of fund balance in a number of funds to complete one-time projects.

The budget includes funding for a number of Council-directed special projects, beyond staff’s baseline work, Strategic Plan strategies, and Capital Improvement Plan (CIP) projects.

City staff believes that it will be able to complete the Council-directed special projects listed above by the end of FY 2024/25, but does not have the capacity to take on any additional special projects. Staff also recommends that the City adopt a practice of not adding any special projects mid-fiscal year unless an existing special project is taken off of the list.

It is a public finance best practice, and a goal of the City’s Financial Policy on a Structurally Balanced Budget, to create a proposed General Fund operating budget that is structurally balanced, meaning that ongoing revenues equal or exceed ongoing expenditures.

City of Pinole 4

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Executive Summary
The Fiscal Year (FY) 2024/25 Operating and Capital Budget is structurally balanced but does include one-time budget balancing strategies, including reducing operating expenditures in several departments’ budgets, freezing vacant positions in the Police and Public Works departments, and reducing the General Reserve from 50% to 45% of total General Fund ongoing expenditures to transfer funds into the General Fund. The baseline budget reflects a small surplus of $40,465. The budget does use one-time sources, such as fund balance, for one-time expenditures.

Table 2 – General Fund Baseline Budget
FY 2024/25
Final Proposed
Baseline Budget
Sources
Property Tax $ 6,168,067
Sales Tax (General, Measure S 2006 and 2014) 9,698,436
Utility Users' Tax 2,285,000
Franchise Tax 850,000
Intergovernmental Tax 2,402,673
Transient Occupancy Tax 460,000
Business License 460,000
Charges for Services 1,774,307
Other Revenues 852,160
Total Revenues 24,950,643
Transfer In – Pension Trust 2,425,000
Transfer In – General Reserve 514,370
Total Sources 27,890,013
Uses
By Category
Salaries & Wages 9,836,668
Benefits 7,230,481
Professional Services 8,420,956
Other Operating 322,711
Materials and Supplies 185,033
Interdepartmental Charges (492,148)
Asset/Capital Outlay 148,440
Debt Service 636,107
Total Expenditures By Category 26,919,754
Transfers Out 1,561,300
Total Uses By Category 27,849,548
Net Surplus/(Deficit) $ 40,465
City of Pinole 5

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Executive Summary
The Fiscal Year (FY) 2024/25 Operating and Capital Budget consists of the baseline budget (ongoing operating budget), one-time operating budget items such as special Council-directed initiatives, and capital improvement projects that are funded by the General Fund including the Measure S Funds. The graphic below depicts the composition of the Budget. As shown, the budget assumes the use of $8.9 million of fund balance.

Table 3 in the following section provides a detailed list of the one-time budget items and capital improvement projects. Note that only the capital improvement projects that are funded by the General Fund are shown in Table 3.

Table 3 – One-Time Budget Items and Capital Improvement Projects (Some are Projects Budgeted in FY 2023/24, but Not Completed, so Carried Forward to FY 2024/25) Department One-Time Operating Items Proposed
Budget
CDD/Economic Dev Economic Development Strategy - Final Branding $10,000 CDD/Economic Dev Meeting/Workshop/Mixers 5,000
CDD/Economic Dev Tobacco Education Related (Grant Funded) 10,000 CDD/Economic Dev Advertising (General and Industry-Specific) 2,000 CDD/Economic Dev Marketing Materials 5,000
CDD/Economic Dev Business Development/Community Help Reserve 10,000 CDD/Economic Dev Revitalization Reserve 10,000
City Clerk Policies & Procedures Update Support 20,000
City Council City Council Retreat/Planning Workshop 10,000 City Manager DEI Consulting 40,000
City Manager EOP Training (citywide) 20,000
FY2024/25 Operating
and Capital Budget
$36,766,959
Baseline Budget
(Ongoing Operating
Budget)
$27,849,548
One-time Operating
Budget Items
$903,222
Capital Improvement
Projects
$8,014,221
Use of Available Fund Balance = $8,917,443
City of Pinole 6

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Executive Summary
Finance Ballot Measure Consulting 40,000
Finance Grants Consulting 48,000
Information
Technology
Professional Services 68,222
Police CERT Program Supplies 20,000
Public Works Active Transportation Plan 25,000
Public Works Emergency Power for Critical Facilities 200,000 Public Works Recycled Water Feasibility 60,000
Public Works City Hall planting/landscaping 20,000
Public Works GoGov or Similar App 5,000
Public Works On-call Consultants for Capital Projects 75,000 Public Works Storm Drainage Master Plan 150,000
Public Works Pedestrian Bridge Inspection & Maintenance 50,000 Total One-Time Operating Items 903,222
Department Asset/Capital Outlay Proposed
Budget
Community Services Restroom Walls/Floor Repair 11,000
Information
Technology
Computer Equipment Replacement 137,959
Police Alex Clark Room Transformation 20,000
Public Works Weatherization/Energy Efficiency Program 250,000 Public Works Brandt St. Improvements 170,000
Public Works Street Improvements 200,000
Public Works FA1901 Senior Center Auxiliary Parking Lot 1,530,000 Public Works RO2401 Road Maintenance Repairs 1,750,000
Public Works Citywide Roof Repairs and Replacement 900,000 Public Works City Hall Modernization 200,000
Public Works Senior Center Modernization 205,000
Public Works Public Safety Building Modernization 450,000 Public Works Tiny Tot Improvements 50,000
Public Works Skatepark Rehabilitation 150,000
Public Works Replace Parks' Chips/Rubber Matting 50,000 Public Works San Pablo Ave. Bridge Replacement 300,000
Public Works Safety Improvement Arterial Roadway 35,960 Public Works Pinole Smart Signals 154,302
Public Works Sidewalk/ADA Curb Ramp Program 150,000
Public Works Roble Road Drainage Improvements 700,000
Public Works Storm Drain Creek Discharge 600,000
Total Capital Improvement Projects 8,014,221
Total $8,917,443
City of Pinole 7

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Executive Summary
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Fiscal Year (FY) 2024/25 Operating and Capital Budget
Background
Background
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Background
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Fiscal Year (FY) 2024/25 Operating and Capital Budget
Background – Elected Officials and Department Heads

ELECTED OFFICIALS
Maureen Toms Cameron Sasai Devin Murphy
Mayor Mayor Pro Tempore Council Member
Anthony Tave Norma Martínez-Rubin Roy Swearingen
Council Member Council Member City Treasurer

DEPARTMENT HEADS
Interim City Manager Neil Gang
City Attorney (Contract) Eric Casher
City Clerk Heather Bell
Community Development Director Lilly Whalen
Community Services Director Andrea Dwyer
Finance Director Markisha Guillory
Human Resources Director Stacy Shell
Police Chief Neil Gang
Public Works Director Sanjay Mishra
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Fiscal Year (FY) 2024/25 Operating and Capital Budget
Background – Elected Officials and Department Heads
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Fiscal Year (FY) 2024/25 Operating and Capital Budget
Background – City of Pinole Strategic Plan 2020-2025
CITY OF PINOLE STRATEGIC PLAN 2020-2025
In February 2020, the City of Pinole adopted a Strategic Plan 2020 – 2025. The Strategic Plan established the following vision, mission, and goals for the City, as well as 22 specific “strategies” (special projects), to be completed over a five-year timeframe, that would help the City achieve the goals.

VISION
Pinole is a safe, vibrant, and innovative community with small town charm and high quality of life.

MISSION
Pinole will be efficient, ethical, and effective in delivering quality services with community involvement and fiscal stewardship.

GOALS

1. Safe and Resilient Pinole: Develop and communicate resilience through quality public safety service delivery, property maintenance policies and practices, and disciplined investment in community assets.

2. Financially Stable Pinole: Ensure the financial health and long-term sustainability of the City.

3. Vibrant and Beautiful Pinole: Facilitate a thriving community through development policies and proactive relationship building.

4. High Performance Pinole: Build an organization culture that is efficient, ethical, and effective in delivering quality services with community involvement and fiscal stewardship.

The City Council held a special strategic planning meeting on April 29, 2023 during which it reaffirmed the vision, mission, and goals of the Strategic Plan and made some adjustments to some strategies.

City of Pinole 13

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Background – Profile of the City

PROFILE OF THE CITY
The City is primarily a residential community located in the San Francisco Bay Area on the shores of San Pablo Bay in West Contra Costa County. Highway Interstate 80, which traverses Pinole, connects the San Francisco/Oakland metropolitan area with Sacramento and points east. Pinole is linked to central Contra Costa County which includes the cities of Martinez, Concord, and Pleasant Hill by State Route 4 which begins just north of Pinole and connects with Interstate 680. There are approximately foursquare miles of land included in Pinole’s boundary. The City’s population on January 1, 2023 was 18,244, according to the California Department of Finance.

The City of Pinole is a general law city that was incorporated on June 25, 1903. The City operates under a Council-Manager form of operation, whereby policies of the City Council are administered by a City Manager who is appointed by the City Council. All municipal departments operate under the supervision of the City Manager. The Council consists of five members who are elected at large for four-year overlapping terms. The Council elects one of the Council members to serve as Mayor each year.

The City is a full-service city that provides the following services: public safety (police), public works, community services (including recreation and Pinole community television), community development, and general administration services.

City of Pinole 14

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Background – Organizational Structure

ORGANIZATIONAL STRUCTURE
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Fiscal Year (FY) 2024/25 Operating and Capital Budget
Background – Organizational Structure
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Fiscal Year (FY) 2024/25 Operating and Capital Budget
Budget Development Process and Budget Award
Budget Development Process and Budget Award
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Budget Development Process and Budget Award
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Fiscal Year (FY) 2024/25 Operating and Capital Budget
Budget Development Process and Budget Award

BUDGET DEVELOPMENT PROCESS
The City’s budget is created through a collaborative, iterative process involving the City Council, community, and City staff. The City’s budget development process is considered an “incremental” budget process, meaning that the budget for the upcoming year is developed based on the current year’s budget and includes incremental changes.

City staff takes the following steps to create the budget:
• Finance Department uses the current budget, which incorporates any mid-year changes approved by the City Council, as the starting point; • Finance Department creates a “baseline budget” for the upcoming year by taking the ongoing revenues and expenditures included in the current budget and factoring in known or assumed changes to revenues and expenditures (i.e., forecasted changes to different revenue streams, general inflation, known changes to debt service, etc.);
• Departments review and confirm the known and assumed changes incorporated into the baseline budget;
• Departments submit requests for changes from the baseline budget to address proposed special projects or increased service levels;
• Finance Department and City Manager consider department requests for changes to the baseline budget and prepare a Preliminary Proposed budget for the Finance Subcommittee and/or City Council’s consideration; • Finance Department incorporates changes and prepares the Revised Proposed budget for the Finance Subcommittee and/or City Council’s consideration;
• City Manager and Finance Department incorporates any final changes as necessary and submits the Final Proposed Budget to the City Council for adoption.

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Budget Development Process and Budget Award
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Fiscal Year (FY) 2024/25 Operating and Capital Budget
Budget Development Process and Budget Award

KEY MILESTONES OF THE DEVELOPMENT OF THE BUDGET AND CIP FOR FY 2024/25
March 27, 2024
• Department Proposed FY 2024/25 Budget Requests due to Finance April 18, 2024
• Finance Subcommittee Meeting
• FY 2024/25 General Fund Baseline Budget
• Draft FY 2024/25 - FY 2028/29 Five-Year Capital Improvement Plan (CIP) April 2-26, 2024
• Budget Review Meetings
• Interim City Manager and Finance Department meet with Department Directors to review and discuss proposed budgets
April 30, 2024
• City Council Special Meeting (Budget Workshop)
• FY 2024/25 General Fund Baseline Budget
• Proposed Projects for FY 2024/25 - FY 2028/29 Five-Year Capital Improvement Plan (CIP)
May 21, 2024
• City Council Meeting
• Preliminary Proposed FY 2024/25 Operating and Capital Budget • Preliminary Proposed FY 2024/25 Five-Year Capital Improvement Plan (CIP) • Preliminary Status Quo Ten-Year Financial Forecast for FY 2024/25 - FY 2033/34
June 4, 2024
• City Council Meeting
• Revised Proposed FY 2024/25 Operating and Capital Budget • Revised Proposed FY 2024/25 Five-Year Capital Improvement Plan (CIP) June 18, 2024
• City Council Meeting
• Adopt Final Proposed FY 2024/25 Operating and Capital Budget • Adopt Final Proposed FY 2024/25 Five-Year Capital Improvement Plan (CIP) • Adopt FY 2024/25 Appropriations Limit
July 1, 2024
• FY 2024/25 Begins
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Budget Development Process and Budget Award
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Fiscal Year (FY) 2024/25 Operating and Capital Budget
Budget Development Process and Budget Award

BUDGET AWARD
The City received its tenth consecutive Operating Budget Excellence Award from the California Society of Municipal Finance Officers (CSMFO) for its FY 2023/24 budget. The City previously received the Meritorious Award for its FY 2005/06 through FY 2010/11 budgets, and Outstanding Financial Reporting for its FY 1995/96 through FY 2000/01 budgets. The award reflects the commitment of the City to meeting the highest principles of government budgeting. To receive this award, the City had to satisfy nationally recognized guidelines for effective budget presentation.

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Budget Development Process and Budget Award
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Fiscal Year (FY) 2024/25 Operating and Capital Budget
Revenue and Expenditure Summaries
Revenue and Expenditure Summaries
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Revenue and Expenditure Summaries
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Fiscal Year (FY) 2024/25 Operating and Capital Budget
Revenue and Expenditure Summaries – General Fund

REVENUE AND EXPENDITURE SUMMARIES
The City’s General Fund accounts for all general revenues received by the City. The General Fund supports various City operations, including primarily public safety. The City also has numerous other funds that account for revenue received and expended for specific purposes.

GENERAL FUND REVENUE
The major revenue sources for the General Fund are property tax, sales tax, utility users’ tax, intergovernmental tax, franchise fees, business license tax, and transient occupancy tax. The City’s Finance Department creates the estimates of these General Fund revenues for the budget using economic information obtained from several sources, including the State of California, Contra Costa County, and third-party consultants.

Estimates of revenues generated by City departments are prepared by the respective department with assistance from the Finance Department. Each of these revenue sources is described in detail below.

Total General Fund (including Measure S 2006 and 2014 Funds) revenue is projected to be $27.9 million, including transfers in, as summarized below.

Revenue Category FY 2024/25
Budget
% Total
Budget
Property Taxes $6,168,067 22%
Sales and Use Taxes 4,536,436 16%
Sales and Use Taxes - Measure S 2006 and 2014 5,162,000 19% Utility Users Tax 2,285,000 8%
Franchise Taxes 850,000 3%
Transient Occupancy Tax 460,000 2%
Business License Tax 460,000 2%
Intergovernmental Taxes 2,402,673 9%
Public Safety Charges 1,774,307 6%
Other Revenues 852,160 3%
Transfers In 2,939,370 11%
Total $27,890,013
Property Tax
Property tax is an ad valorem tax imposed on real property (land and permanently attached improvements such as buildings) and tangible personal property (movable property). The fixed statutory rate is 1% of assessed valuation. Assessed value is based on the 1975 property values with subsequent increases limited to 2% or CPI growth, whichever is less. However, when there is a change in property ownership, property renovation or new construction, property is reappraised at its full current market value.

Proposition 8 allows the County Assessor to decrease these assessed values when City of Pinole 27

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Revenue and Expenditure Summaries – General Fund
property values decline and recapture these valuations back to the original amounts in the following years if property values increase.

The General Fund receives on average 19% of the total ad valorem property taxes levied (excluding voter approved tax overrides pledged for the retirement of bonded debt) on property located within the City’s boundary (exclusive of the Redevelopment Project Areas). Property tax settlements are received in December (55%), April (40%) and June (5%). Property tax is imposed and collected by the County. Contra Costa County is on a Teeter Plan. The County absorbs the delinquencies under this plan. The chart below illustrates the breakdown of the agencies that receive the property tax dollar.

The City uses property tax estimates provided by consulting firm HdL as the basis for the budget. For FY 2024/25, property tax is estimated to be $6.2 million, a 9% increase over the FY 2023/24 revised budget. The increase is largely due to the increase in residual property tax revenue that the City expects to receive from the former Redevelopment agency due to the retirement of outstanding debt.

Property Tax Dollar Breakdown
Sales Tax
Sales tax is the General Fund’s single largest revenue source. The City’s 9.75% Sales tax is levied on all merchandise and includes the 1% Bradley Burns Sales Tax, and Local Sales and Use Taxes Measure S 2006 (0.5%) and Measure S 2014 (0.5%) both of which have no sunset date. The City uses sales tax estimates provided by consulting firm HdL as the basis for the budget. For FY 2024/25, General Fund sales tax, including Measure S 2006 and 2014, is projected to be $9.7 million, a 3% increase over the FY 2023/24 revised budget. The chart below illustrates the breakdown of the agencies that receive the sales tax dollar.

West Contra Costa
Unified
34%
Pinole General Fund
19%
County General
15%
K-12 Schools ERAF
14%
Community College
District
5%
East Bay Regional
Park
3%
Community College
ERAF
2%
Health Care, Library,
EBMUD
5%
Other
3%
City of Pinole 28

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Revenue and Expenditure Summaries – General Fund
Sales Tax Dollar Breakdown
Utility Users’ Tax
Utility Users’ Tax (UUT) is levied in accordance with Chapter 3.26 of the Municipal Code, amended in 2018 which levies an 8% tax on the value public utilities services consumed within the City limits for electricity, natural gas, and telecommunications. Low-income households are eligible for exemption from payment. The Electorate ratified renewal of the taxing authority in November 2018 with no sunset date. The City estimates UUT based on historical trends and industry resources. For FY 2024/25, UUT is projected to be $2.3 million, a 5% increase over the FY 2023/24 revised budget.

Franchise Fees
Franchise tax is levied on organizations that use the public right of way to furnish gas (PG&E) (1%) and electricity (PG&E) (2%), refuse (Republic Services) (10%), and cable television (Comcast and AT&T) (5%). The various fees are delineated in franchise agreements and are paid directly to the city by these franchisees. Estimates are based on historical experience considering contract amendments which impact future years. For FY 2024/25, franchise tax is projected to be $850,000, a 7% increase over the FY 2023/24 revised budget.

Business License Tax
Business license tax is assessed on all businesses doing business within City limits in accordance with Municipal Code Title 5. The City charges business license tax in accordance with the provisions of Government Code 37101. Pinole’s tax is computed based on a flat tax of $160 (current) per year combined with a variable tax component based on number of employees engaged in each business. Estimates are based on trend analysis. For FY 2024/25, business license is projected to be $460,000, a 6% increase over the FY 2023/24 revised budget.

State General Fund

3.94%
Bradley-Burns

1.00%
County Mental
Health/Welfare/Publ
ic Safety

1.56%
Measure S 2006

0.50%
Measure S 2014

0.50%
County Public
Safety (Prop 172),

0.50%
Countywide
Transportation
Fund, 0.25%
BART, 0.50%
Contra Costa
Transportation
Authority, 0.50%
CCC Transaction &
Use Tax, 0.50%
City of Pinole 29

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Revenue and Expenditure Summaries – General Fund
Transient Occupancy Tax (Motel or Bed Tax)
Transient Occupancy Tax (TOT) is a 10% tax levied by the City for the privilege of occupying quarters on a transient basis (Chapter 3.24 of Municipal Code). This tax is imposed upon persons staying 30 days or less in a motel or lodging facility. The tax rate is set at the discretion of the City Council, subject to ratification by the City’s electorate.

Estimates are based on trend analysis and industry resources. For FY 2024/25, transient occupancy tax is projected to be $460,000, a 2% increase over the FY 2023/24 revised budget.

Motor Vehicle In-lieu
Motor Vehicle In-lieu (VLF) is the City’s share of motor vehicle license fees levied, collected and apportioned by the State. VLF, also called the “motor vehicle in-lieu tax” is a tax on the ownership of registered motor vehicles which takes the place of taxation of this personal property. The VLF is paid annually at the time vehicle licenses are renewed based on current value adjusted for depreciation. The budget projection is based on projections provided by the City’s property tax consultant HdL. For FY 2024/25, VLF is projected to be $2.4 million, a 4% increase over the FY 2023/24 revised budget.

Public Safety Charges
Public safety charges are received for dispatch services provided to the cities of Hercules and San Pablo under an Intergovernmental Service Sharing agreement. A portion of the costs of this activity are reimbursed by the City of Hercules and City of San Pablo. Under the current agreement, the City’s recovers approximately 67% of the activity’s budget.

The budget projection is based on the formula provided in the current five-year agreement effective July 1,2023. For FY 2024/25, public safety charges are projected to be $1.8 million, a 5% increase over the FY 2023/24 revised budget.

Other Revenue
Other revenue is made up of all other revenue sources, such as fees, permits, interest income, grants, reimbursements, and other miscellaneous revenue. These revenues are projected primarily using historical trend analysis. The FY 2024/25 budget assumes a 34% increase over the FY 2023/24 revised budget. The substantial growth is mostly due to increased revenue resulting from the imposition of updated fees following the comprehensive user fee study.

Transfers In
Transfers in shown in the FY 2024/25 budget comes from the Pension Section 115 Trust to offset the increase in pension costs in the General Fund and Measure S Funds. The amount transferred is based on the difference between the City’s base year (FY City of Pinole 30

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Revenue and Expenditure Summaries – General Fund
2018/19) contribution toward employee pensions and the forecasted required City contribution in future years. Additionally, the City Council approved a one-time transfer of $514,370 from the General Reserve to the General Fund to help balance the budget for FY 2024/25.

GENERAL FUND EXPENDITURES
General Fund revenues are not restricted to any specific use and can be expended on any allowable municipal purpose. For FY 2024/25, total General Fund expenditures are projected to be $36.8 million, including transfers out, as summarized below.

Expenditure Category FY 2024/25
Budget
% Total
Budget
Salaries and Wages $9,836,668 27%
Employee Benefits 7,230,481 20%
Professional/Admin Services 9,482,105 26%
Other Operating 322,711 1%
Materials and Supplies 185,033 1%
Interdepartmental Charges (492,148) -1%
Capital Outlay 8,004,702 22%
Debt Service 636,107 2%
Transfers Out 1,561,300 4%
Total $36,766,959
Salaries and Wages
The forecast for salaries and wages is based on the City’s staffing level of 109 full-time equivalents (FTEs), future salary increases for different classifications already agreed upon in the City’s current labor memorandums of understanding (MOUs). The budget includes a savings factor equal to 3% of total annual salary and benefits expenditures to account for savings resulting from position vacancies. For FY 2024/25, salaries and wages are projected to be $9.8 million, a 6% increase over the FY 2023/24 revised budget. As part of the budget balancing strategies, vacant positions were frozen in the Public Works department including the Administrative Coordinator, Associate Civil Engineer, and Capital Improvement Projects Manager; and in the Police department including two Police Officers and a Sergeant.

Employee Benefits
The cost of retirement benefits is the City’s annual required contribution for employees’ pension to the California Public Employees’ Retirement System (CalPERS). The City’s annual required contribution is determined by an annual actuarial valuation report, the most recent of which is as of July 2023. The budget reflects the net cost to the City (the required total contribution minus the employee contributions). All classic employees City of Pinole 31

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Revenue and Expenditure Summaries – General Fund
currently contribute the required employee contribution plus a portion of the employer’s contribution for a total of 15%.

Other benefits include employee medical/dental/vision care, workers’ compensation, and others. The benefits cost in the forecast is based primarily trends and information provided by service providers. For FY 2024/25, benefits are projected to be $7.2 million, a 20% increase over the FY 2023/24 revised budget.

Professional and Administrative Services
Professional and administrative services includes consulting services, legal services, temporary services, network and software maintenance, and equipment and building maintenance. Contract services with other government agencies, such as the County animal services and library services, are also included in professional services. This category is primarily projected based on contractual obligations and historical trends. For FY 2024/25, professional and administrative services are projected to be $9.5 million, an 8% decrease over the FY 2023/24 revised budget.

This category includes the City’s fire services agreement with the Contra Costa County Fire Protection District (CCCFPD) to provide fire protection services to Pinole residents.

For FY 2024/25, the cost is $5.7 million per the approved five-year agreement.

Other Operating Expenses
Other operating expenses include all other expenditure categories, such as travel/training, office expenses, utilities, indirect costs, and materials and supplies. This category is projected based on historic trends. For FY 2024/25, other operating expenses are projected to be $322,711, a 10% increase over the FY 2023/24 revised budget.

Capital Outlay
Capital outlay includes non-major asset acquisition and improvements, such as computer equipment and furniture, as well as several major capital projects to be funded by the General Fund unassigned fund balance. This category is projected based on historical trends as well as estimated costs of capital projects. For FY 2024/25, capital outlay is projected to be $8 million.

Capital improvement projects are detailed in a separate Five-Year Capital Improvement Plan (CIP). Each fiscal year, capital needs are assessed and prioritized through the CIP planning process.

Debt Service
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Fiscal Year (FY) 2024/25 Operating and Capital Budget
Revenue and Expenditure Summaries – General Fund
Debt service includes the payment of debt for the 2006 pension obligation bonds (POBs) that were issued to finance the City’s unfunded accrued actuarial liability with CalPERS.

The future years are forecasted based on the long-term debt obligation schedule.

Transfers Out
Transfers out includes the transfers from the General Fund and Measure S to other funds to support Recreation programs, Pinole Community Television (PCTV), vehicle and equipment replacement.

City of Pinole 33

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Revenue and Expenditure Summaries – General Fund
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City of Pinole 34

Fiscal Year (FY) 2024/25 Operating and Capital Budget
Revenue and Expenditure Summaries – General Fund

GENERAL FUND
(Including Measure S 2006 and 2014)
FY 2020/21
Actual
FY 2021/22
Actual
FY 2022/23
Actual
FY 2023/24
Revised
Budget
FY 2024/25
Proposed
Budget
Revenue by Category
311 - Property Taxes 4,091,345 4,307,208 5,055,790 5,678,211 6,168,067 312 - Sales and Use Taxes 8,927,361 9,613,625 9,328,351 9,443,023 9,698,436 313 - Utility Users Tax 1,939,726 2,063,773 2,312,830 2,185,485 2,285,000 314 - Franchise Taxes 751,598 788,146 875,058 794,658 850,000 315 - Other Taxes 795,839 929,466 898,797 890,714 924,599 321 - Intergovernmental Taxes 2,034,203 2,108,808 2,247,072 2,319,918 2,402,673 323 - State Grants 10,951 13,847 43,442 65,882 95,882
324 - Other Grants 287,768 46,937 43,793 47,025 47,025
332 - Permits 77,992 120,780 190,687 108,700 251,700
341 - Review Fees 37,139 42,210 50,279 500 25,500
342 - Other Fees 56,754 23,880 56,772 15,054 65,854
343 - Abatement Fees 3,844 5,127 30,193 33,500 47,000
351 - Fines and Forfeiture 13,166 10,411 17,579 22,050 15,550 361 - Public Safety Charges 1,345,588 1,477,492 1,598,997 1,693,539 1,774,307 370 - Interest and Investment Income 33,340 (134,495) 211,725 150,000 200,000 381 - Rental Income 86,880 96,516 95,432 89,896 81,450
383 - Reimbursements 83,285 16,341 20,133 16,928 11,500 384 - Other Revenue 3,788 35,606 5,969 7,560 5,100
392 - Proceeds from Sale of Property 83,209 240,182 12,080 1,000 1,000 393 - Loan/Bond Proceeds 55,197 - 91,907 - -
399 - Transfers In from Section 115 Trust 1,327,427 1,061,736 2,160,519 2,245,480 2,939,370 399 - Transfers In from ARPA Fund - - 4,071,404 - -
Revenue Total 22,046,398 22,867,595 29,418,810 25,809,123 27,890,013 Expenditures by Category
40 - Salaries and Wages 9,687,549 10,550,396 11,006,433 9,359,141 9,836,668 41 - Employee Benefits 5,492,537 6,030,608 6,884,786 6,219,651 7,230,481 42 - Professional/Administrative Services 3,120,915 4,083,329 5,686,957 10,227,822 9,482,105 43 - Other Operating Expenses 332,324 304,499 359,085 292,711 322,711 44 - Materials and Supplies 148,389 261,505 291,123 183,200 185,033 46 - Interfund/Interdepartmental Charges (916,482) (838,609) (505,978) (772,912) (492,148) 47 - Asset Acquisition, Improvement, Disposal 1,397,824 697,550 596,527 6,661,263 8,004,702 48 - Debt Service 558,607 608,736 617,582 611,107 636,107 49 - Transfers Out 1,588,652 3,360,117 2,654,750 2,440,775 1,561,300 Expenditures Total 21,410,315 25,058,131 27,591,266 35,222,758 36,766,959 Expenditures by Department
10 - City Council 221,252 215,904 209,697 215,412 202,459 11 - City Manager 603,505 527,117 567,995 602,710 685,348 12 - City Clerk 243,065 327,468 511,112 624,354 719,241 13 - City Treasurer 8,286 8,375 8,268 8,727 10,159
14 - City Attorney 489,955 406,476 330,354 320,428 297,031 15 - Finance Department 573,555 561,011 661,743 1,037,368 973,400 16 - Human Resources 292,727 377,614 749,748 888,227 890,840 17 - Non-Departmental 3,534,790 5,274,979 4,673,970 4,042,120 3,257,051 18 - Information Systems - - - 3,600 -
22 - Police Department 8,495,554 9,847,359 10,267,281 11,125,612 12,028,566 23 - Fire Department 5,429,808 5,100,962 6,687,185 5,596,735 6,433,461 34 - Public Works 1,335,586 1,824,492 2,160,055 9,715,846 10,247,544 46 - Community Development 173,504 263,181 398,605 619,883 579,694 55 - Community Services 8,727 272,629 365,253 421,736 442,165 64 - Sewer 50,563 -
Expenditures Total 21,410,315 25,058,131 27,591,266 35,222,758 36,766,959 Net Operating Results 636,084 (2,190,536) 1,827,544 (9,413,635) (8,876,946) City of Pinole 35