Project Origin : Council Request Priority Score
New ExpansionReplacement RenovationLand/Row Acq. RequiredRehabilitation $ ‐ 170,000 $ ‐ $ ‐ $ 200,000 $ : 6/30/2025
FY 2024‐25 FY 2025‐26 FY 2026‐27 FY 2027‐28
$ 30,000
$ 170,000 $ 170,000 $ ‐ 170,000 $ ‐ $ ‐ $ 200,000 $ $ 170,000 $ 200,000 TOTAL FUNDS 30,000 $ $ ‐ 170,000 $ ‐ $ ‐ $ 200,000 $ TOTAL USES 30,000 $
SOURCE(S)100 ‐ General Fund $ 30,000Design $ 30,000 Construction
Summary of Capital Cost
Budget Projected Budget Project Estimate
USE(S) FY 2023‐24 FY 2023‐2028Policy GM.4.1, Policy CS.2.6, Goal CS.9, Goal HS.4Estimated Expenditures to‐date $ ‐ $ 30,000 Project Start : 7/1/2023 Estimated Completion
Description
During severe natural hazard events, it is highly likely that utility power will not be available for an extended period of time. Critical facilities will need reliable sources of sustained electrical power to continue operations. This project will: 1) identify critical facilities in need of back‐up power in coordination with an Emergency Operations Plan (EOP) , 2) assess power loads in each critical facility that requires back‐up power, 3) determine the costs and technology options including solar battery storage, and 4) make any additional recommendations to Council before advancing to construction.
History, Status, or Impact if Delayed
The Public Safety Building, Fire Station 74, and the Water Pollution Control Plant have stand by generators.
General Plan Goals/Policies
Estimated Project Life
cycle cost
IN2101 ‐ EMERGENCY POWER FOR CRITICAL FACILITIES
Functional Area : Infrastructure Assessment
Type of CIP Budget Unappropriated Subsequent Years Year 1
FY 2023‐24
Year 2
FY 2024‐25
Year 3
FY 2025‐26
Year 4
FY 2026‐27
Year 5
FY 2027‐28
45
Project Origin : Council Request Priority Score
New ExpansionReplacement RenovationLand/Row Acq. RequiredRehabilitation $ ‐ ‐ $ ‐ $ ‐ $ 60,000 $ : 6/30/2024
FY 2024‐25 FY 2025‐26 FY 2026‐27 FY 2027‐28
$ 60,000
$ ‐
$ ‐ ‐ $ ‐ $ ‐ $ 60,000 $ $ 60,000
$ ‐ ‐ $ ‐ $ ‐ $ 60,000 $ Estimated Project Life
cycle cost
IN2102 ‐ MUNICIPAL BROADBAND FEASIBILITY
Functional Area : Infrastructure Assessment
Type of CIP Budget Unappropriated Subsequent Years Year 1
FY 2023‐24
Year 2
FY 2024‐25
Year 3
FY 2025‐26
Year 4
FY 2026‐27
Year 5
FY 2027‐28
Goal CS.11, Policy CS.11.2, Policy CS.11.5Estimated Expenditures to‐date $ ‐ $ 60,000 Project Start : 7/1/2022 Estimated Completion
Description
A feasibility study to understand the high speed (broadband) connectivity available to community residents, businesses, and other organizations in terms of coverage, speed, and cost; determine whether there are gaps relative to modern standards; if there are gaps, identify and assess potential City interventions (including public‐private partnerships) with respect to cost, effectiveness, and feasibility; and make a recommendation regarding next City steps on digital connectivity as appropriate.
History, Status, or Impact if Delayed
Staff released an Request for Proposals for this effort on April 11, 2023.
General Plan Goals/Policies
Summary of Capital Cost
Budget Projected Budget Project Estimate
USE(S) FY 2023‐24 FY 2023‐2028Planning $ 60,000 Contingency
TOTAL FUNDS $ 60,000
TOTAL USES $ 60,000
SOURCE(S)106 ‐ Measure S 2014 $ 60,000 46
Project Origin : Council Request Priority Score
New ExpansionReplacement RenovationLand/Row Acq. RequiredRehabilitation $ 140,000 $ ‐ $ ‐ $ ‐ $ 200,000 : 6/30/2024
FY 2024‐25 FY 2025‐26 FY 2026‐27 FY 2027‐28
$ 140,000 $ 200,000 $ ‐
$ 140,000 $ ‐ $ ‐ $ ‐ $ 200,000 $ 140,000 $ 200,000 $ 140,000 $ ‐ $ ‐ $ ‐ $ 200,000 Estimated Project
Life cycle cost
IN2103 ‐ RECYCLED WATER FEASIBILITY
Functional Area : Infrastructure Assessment
Type of CIP Budget Unappropriated Subsequent Years Year 1
FY 2023‐24
Year 2
FY 2024‐25
Year 3
FY 2025‐26
Year 4
FY 2026‐27
Year 5
FY 2027‐28
Policy OS.8.1, Policy OS.8.7, Goal SE.9, Policy SE.9.1, Policy SE.9.4Estimated Expenditures to‐date $ ‐ $ 60,000 Project Start : 7/1/2022 Estimated Completion
Description
A feasibility study will allow the City to plan and phase the construction of future recycled water distribution system infrastructure. The study will identify potential recycled water customers, evaluate the quantity, quality, and recycled water distribution system options to address the needs of potential users in surrounding areas, seek opportunities to phase the construction of a recycled water delivery system, and develop planning‐level cost options for the phased system.
History, Status, or Impact if Delayed
Recycled water delays or eliminates the need to construct more potable water facilities, sustains the economy with increased water supply reliability, protects the environment, safeguards investments in parks and landscaping with drought proof or drought resistant water supply, and contributes to a green and healthy environment. In 2019, East Bay Municipal Utility District (EBMUD) prepared an Updated Recycled Waster Plan which considered the potential for potable reuse in EBMUD’s water service area. The development of a new recycled water supply for the Phillips 66 refinery in Rodeo using effluent from the Pinole‐Hercules and Rodeo wastewater treatment plants was among the recommended non‐potable reuse projects. This project is estimated to deliver up to 3.67 MGD of recycled water to the refinery for use in their boilers and cooling towers. The combined final disinfected effluent from both plants would be pumped at the Rodeo Pump Station to the refinery for treatment a new advanced recycled water treatment plan. This project was recommended by EBMUD because it would deliver a large amount of water to a single customer, with comparatively few pipelines required due to the short distance between the sources of wastewater and the Phillips 66 Refinery General Plan Goals/Policies
Summary of Capital Cost
Budget Projected Budget Project Estimate
USE(S) FY 2023‐24 FY 2023‐2028Planning $ 60,000Contingency TOTAL FUNDS $ 60,000
TOTAL USES $ 60,000
SOURCE(S)100 ‐ General Fund $ 60,000 47
Project Origin : Staff Recommendation Priority Score
New ExpansionReplacement RenovationLand/Row Acq. RequiredRehabilitation $ ‐ ‐ $ ‐ $ ‐ $ 100,000 $ : 6/30/2024
FY 2024‐25 FY 2025‐26 FY 2026‐27 FY 2027‐28
$ 100,000
$ ‐ ‐ $ ‐ $ ‐ $ 100,000 $ 325 ‐ Grant: STMP Fees $ 100,000
$ ‐ ‐ $ ‐ $ ‐ $ 100,000 $ Estimated Project Life
cycle cost
IN2105 ‐ APPIAN WAY COMPLETE STREETS
Functional Area : Streets & Roads
Type of CIP Budget Unappropriated Subsequent Years Year 1
FY 2023‐24
Year 2
FY 2024‐25
Year 3
FY 2025‐26
Year 4
FY 2026‐27
Year 5
FY 2027‐28
Policy CE.1.4, Policy CS.2.6, Policy CS.3.3, Policy H.3.1, Policy GM.3.3, Goal CE.3, Goal CS.10, Policy CS 10.2Estimated Expenditures to‐date $ ‐ $ 100,000 Project Start : 7/1/2023 Estimated Completion
Description
Completion of preliminary engineering and design to provide continuous sidewalks and bike lanes along Appian Way beginning from unincorporated El Sobrante to about 1500 lineal feet north of the City limit within Pinole. In December 2021, City Council approved a Cooperative Funding Agreement with WCCTAC to receive STMP funds to complete preliminary design for this project.
History, Status, or Impact if Delayed
This project will connect with the Contra Costa County’s project to provide continuous sidewalks and bike lanes along Appian Way from San Pablo Dam Rd. in unincorporated El Sobrante. This project will involve coordination with Contra Costa County. The construction phase of this project is unfunded and appears in the Unfunded and Unprogrammed list.
General Plan Goals/Policies
Engineering Design $ 100,000
TOTAL USES $ 100,000
Summary of Capital Cost
Budget Projected Budget Project Estimate
USE(S) FY 2023‐24 FY 2023‐2028SOURCE(S)
$ 100,000
TOTAL FUNDS $ 100,000
48
Project Origin : TAPS Priority Score
New ExpansionReplacement RenovationLand/Row Acq. RequiredRehabilitation $ ‐ $ ‐ $ ‐ $ ‐ $ 188,000 : 6/30/2024
FY 2024‐25 FY 2025‐26 FY 2026‐27 FY 2027‐28
$ 170,000
$ ‐
$ ‐ $ ‐ $ ‐ $ ‐ $ 170,000 $ 170,000
$ ‐ $ ‐ $ ‐ $ ‐ $ 170,000 Estimated Project
Life cycle cost
IN2106 ‐ ACTIVE TRANSPORTATION PLAN
Functional Area : Infrastructure Assessment
Type of CIP Budget Unappropriated Subsequent Years Year 1
FY 2023‐24
Year 2
FY 2024‐25
Year 3
FY 2025‐26
Year 4
FY 2026‐27
Year 5
FY 2027‐28
Goal GM.1, Goal GM.3, Policy GM.3.2, Policy CE.1.4, Policy CE.8.2, Goal CS.10Estimated Expenditures to‐date $ 18,000.00 $ 170,000
Project Start : 7/1/2022 Estimated Completion
Description
Development of an Active Transportation Plan will act as a guide for active mobility within and around Pinole. The Plan will identify an integrated network of walkways and bikeways that connect Pinole neighborhoods and communities to employment, education, commercial, recreational, and tourist destinations. The plan will prioritize a set of connected projects, that when fully implemented, will increase active transportation opportunities and make it safe and more convenient for people to walk, bike, and use non‐auto forms of travel.
History, Status, or Impact if Delayed
In March 7, 2023, City Council awarded a contract to GHD for the preparation of an Active Transportation Plan.
General Plan Goals/Policies
Summary of Capital Cost
Budget Projected Budget Project Estimate
USE(S) FY 2023‐24 FY 2023‐2028Planning $ 170,000Contingency TOTAL FUNDS $ 170,000
TOTAL USES $ 170,000
SOURCE(S)100 ‐ General Fund $ 170,000 49
Project Origin : Staff Recommendation Priority Score
New ExpansionReplacement RenovationLand/Row Acq. RequiredRehabilitation $ ‐ $ ‐ $ ‐ $ ‐ $ 250,000 : 6/30/2024
FY 2024‐25 FY 2025‐26 FY 2026‐27 FY 2027‐28
$ 250,000
$ ‐
$ ‐ $ ‐ $ ‐ $ ‐ $ 250,000 $ 250,000
$ ‐ $ ‐ $ ‐ $ ‐ $ 250,000 Estimated Project
Life cycle cost
IN1703 ‐ STORM DRAIN MASTER PLAN
Functional Area : Infrastructure Assessment
Type of CIP Budget Unappropriated Subsequent Years Year 1
FY 2023‐24
Year 2
FY 2024‐25
Year 3
FY 2025‐26
Year 4
FY 2026‐27
Year 5
FY 2027‐28
Policy GM.4.1, Policy CS.7.1Estimated Expenditures to‐date $ 250,000
Project Start : 7/1/2020 Estimated Completion
Description
Preparation of a storm drain master plan will provide an analysis of the existing collection system. The plan will identify system deficiencies related to capacity, functionality, and permit compliance. The plan can serve to guide future budget allocations for improvements to the system.
History, Status, or Impact if Delayed
General Plan Goals/Policies
Summary of Capital Cost
Budget Projected Budget Project Estimate
USE(S) FY 2023‐24 FY 2023‐2028Planning $ 250,000Contingency TOTAL FUNDS $ 250,000
TOTAL USES $ 250,000
SOURCE(S)106 ‐ Measure S 2014 $ 250,000 50
Project Origin : Staff Recommendation Priority Score
New ExpansionReplacement RenovationLand/Row Acq. RequiredRehabilitation $ ‐ $ ‐ $ ‐ $ ‐ $ 165,000 : 6/30/2024
FY 2024‐25 FY 2025‐26 FY 2026‐27 FY 2027‐28
$ 150,000
$ ‐
$ ‐ $ ‐ $ ‐ $ ‐ $ 150,000 $ 150,000
$ ‐ $ ‐ $ ‐ $ ‐ $ 150,000 Estimated Project
Life cycle cost
IN1704 ‐ PARKS MASTER PLAN
Functional Area : Infrastructure Assessment
Type of CIP Budget Unappropriated Subsequent Years Year 1
FY 2023‐24
Year 2
FY 2024‐25
Year 3
FY 2025‐26
Year 4
FY 2026‐27
Year 5
FY 2027‐28
Goal CS.3, Policy CS.3.1Estimated Expenditures to‐date
$ 15,000.00 $ 150,000
Project Start : 7/1/2020 Estimated Completion
Description
This project will prepare a citywide master plan to address the city's long‐term needs and goals for parks, recreation, and open space. The master plan will identify the City’s current parks and recreation assets,determine the City’s future parks and recreation needs and priorities, and recommendcapital, operational, and financial strategies to meet the City’s needs.
History, Status, or Impact if Delayed
In early 2022, City staff issued a Request for Proposals (RFP) to solicit bids to prepare the master plan. On December 20, 2022, the City Council awarded a contract to RJM Design Group for the preparation of the City's Master Plan. The consultant partcipated in a kick off meeting with staff in April 2023.
General Plan Goals/Policies
Summary of Capital Cost
Budget Projected Budget Project Estimate
USE(S) FY 2023‐24 FY 2023‐2028Planning $ 150,000Contingency TOTAL FUNDS $ 150,000
TOTAL USES $ 150,000
SOURCE(S)106 ‐ Measure S 2014 $ 150,000 51
CAPITAL IMPROVEMENT PLAN: FY 2022/23 THROUGH FY 2026/27
UNFUNDED PROJECTS
# Unfunded Projects
UF001 Railroad Avenue Bridge Removal and Replacement
UF002 Electric Vehicle Charging Stations in City lots
UF003 Parking lot resurfacing
UF004 LLAD Landscape Restoration and Improvement
UF005 Dog Park Restroom Replacement
UF006 Dog Park resurfacing and fencing improvements
UF007 Eucalyptus Grove Restoration
UF008 Fernandez Park Baseball grandstand improvement
UF009 Repave Trails
UF010 ADA Ramps
UF011 Appian Complete Streets
UF012 Pedestrian Bridge Maintenance (formerly known as Bridge Maintenance) UF013 Fernandez Park Improvements
UF014 Pavement Maintenance
UF015 I-80/Pinole Valley Rd. Interchange Improvements
UF016 Shale Hill Retaining wall and sidewalk gap
UF017 Sidewalks gaps
UF018 Signal System Upgrades
UF019 Pinon-1
UF020 Pinon-2
UF021 Tennent-1
UF022 Tennent-2
UF023 Tree Master Plan
UF024 San Pablo Avenue Bridge over BNSF Railroad
UF025 Installation of Solar at City Facilities
UF026 All access weather roads
UF027 Faria House Renovations
UF028 San Pablo Avenue Complete Streets
UF029 Signalized Intersections
UF030 Pedestrian Safety at Signalized Intersections
UF031 Safety at Unsignalized Intersections
UF032 Roadway Segments #1
UF033 Roadway Segments #2
UF034 Roadway Segments #3
UF035 Vehicular Bridge Maintenance
Legend:
New unfunded projects added
52
UF001 - Railroad Avenue Bridge Removal and Replacement
Project Information
The Contra Costa County Flood Control and
Water Conservation District has advised
removal of the Railroad Avenue Bridge. The
bridge is a flood barrier. The first step is to
determine if the City of Pinole is the responsible
agency for this project.
UF002 - Electric Vehicle Charging Stations in City lots Project Information
Origin: Staff Recommendation
Budget Unit: Roads/Sanitary Sewer/
Stormwater
Cost Estimate:
Potential Funding Sources:
Priority Score: 11
The City desires to promote and encourage the
use of electric vehicles. With increased adoption
of alternative fuel vehicles, the need for
charging infrastructure is growing. The City
wishes to install charging stations in city owned
parking lots. The first step is to complete a load
study at City owned parking lots to determine
the electrical capacity at each site. There may
be significant electrical upgrades necessary to
install charging stations. Electrical capacity and
siting determine ultimately determine the cost of
each project. There are incentives available for
the charging equipment.
Origin: Council Request
Budget Unit: Facilities
Cost Estimate:
Potential Funding Sources: Bay Area
Air Quality Management District, West
Contra Costa Transportation Authority,
Marin Clean Energy
Priority Score: 43
53
UF003 - Parking lot resurfacing
Project Information
This project is to maintain and enhance
existing City owned parking facilities and
infrastructure, to increase parking supply,
and to support ongoing multi-modal and
streetscape improvements. Improvements
include saw cutting and demolition,
pavement removal, earthwork, pavement
installation, curb and gutter, striping, and
signage.
UF004 - LLAD Landscape Restoration and Improvement
Project Information
Origin: Staff Recommendation
Budget Unit: Facilities
Cost Estimate:
Potential Funding Sources:
Priority Score: 32
The Pinole Valley Road Landscape and Lighting
Assessment District was formed in 2008. The
City installed various improvements on Pinole
Valley Road between Henry Avenue and
Ramona Street. The district provides
maintenance to traffic signals, streetlights,
median landscaping, irrigation for landscaping,
electricity to traffic signals and streetlights, and
graffiti removal. This project will maintain and
restore turf, shrubs, plants and trees within the
District. In FY 2022/23, this work was completed
for Zone A (between I-80 and Henry Ave.)
Origin: LLAD Report
Budget Unit: LLAD
Cost Estimate:
Potential Funding Sources: Fund 345
& 348
Priority Score: 27
54
UF005 - Dog Park Restroom Replacement
Project Information
The existing restroom located at the Dog
Park is beyond its useful life and requires
replacement.
UF006 - Dog Park resurfacing and fencing improvements
Project Information
Origin: Staff Recommendation
Budget Unit: Parks
Cost Estimate: $200,000
Potential Funding Sources:
Priority Score: 36
Resurfacing and fencing improvements
Origin: Staff Recommendation
Budget Unit: Parks
Cost Estimate: $75,000
Potential Funding Sources:
Priority Score: 36
55
UF007 - Eucalyptus Grove Restoration
Project Information
The open space located between the Old Town
area between John St. and Pinole Valley Road
is forested with Eucalyptus trees. In 2014, a
Safety Inspection was conducted by a
consultant. A total of 8 trees were
recommended for removal, and root crown
excavation was recommended for 3 trees. 2
trees were determined to be hollow and
recommended for further investigation to
evaluate the level of internal decay. In 2018, the
City hired a company to remove 20 Eucalyptus
trees in the area. There are still many trees left
and many of the prior trees were felled with the
trunks remaining on site. This project will
remove the remaining trees, both standing and,
on the ground, and regreen this area with native
trees.
UF008 - Fernandez Park Baseball grandstand improvement
Project Information
Origin: Council Request
Budget Unit: Parks
Cost Estimate: $150,000
Potential Funding Sources:
Priority Score: 22
The current grandstand is aging and
requires increased maintenance to
maintain its serviceability.
Origin: Staff Recommendation
Budget Unit: Parks
Cost Estimate: $250,000
Potential Funding Sources:
Priority Score: 27
56
UF009 - Repave Trails
Project Information
The City’s goal is to develop safe,
connected, and comfortable bicycle and
pedestrian facilities for people of all ages
and abilities. Repaving trails will enhance
trail access from the City’s roadway
network to encourage alternative modes of
transportation. The Active Transportation
Plan is underway and will identify a trail
network and recommend improvements.
UF010 - ADA Ramps
Project Information
Origin: Staff Recommendation
Budget Unit: Parks
Cost Estimate:
Potential Funding Sources:
Priority Score: 25
This project involves removing barriers to
accessibility for persons using wheelchairs
or other personal assistance devices and
improving pedestrian accessibility and
safety by reconstructing or upgrading curb
ramps at various locations throughout the
City.
Origin: Staff Recommendation
Budget Unit: Roads
Cost Estimate:
Potential Funding Sources:
Priority Score: 49
57
UF011 - Appian Complete Streets
Project Information
This project will provide continuous sidewalks and bike lanes along Appian Way from San Pablo Dam Rd. in unincorporated
El Sobrante to about 1500 lineal feet north
of the city limit within the City of Pinole.
The City received STMP funds
from West Contra Costa Transportation
Authority for preliminary design. The
construction phase remains unfunded.
UF012 - Pedestrian Bridge Maintenance
Project Information
Origin: Staff Recommendation
Budget Unit: Roads
Cost Estimate: $970,000
Potential Funding Sources:
Priority Score: 30
Maintenance of pedestrian bridges as
identified in the Pedestrian Bridge
Inspection Reports completed by Quincy
Engineering, Inc. In FY 2023/24 there is
$50,000 budgeted in the operating budget
for maintenance activities.
Origin: Staff Recommendation
Budget Unit: Roads
Cost Estimate: $224,700
Potential Funding Sources:
Priority Score: 22
58
UF013 - Fernandez Park Improvements
Project Information
Renovations to the baseball field to
decrease water and energy usage and
increase accessibility and safety.
UF014 - Pavement Maintenance
Project Information
Origin: Staff Recommendation
Budget Unit: Roads
Cost Estimate: $850,000
Potential Funding Sources:
Priority Score: 24
The City uses a pavement management
software known as StreetSaver to
strategize the most cost effective method
to extend the pavement life. Pavement
Maintenance is necessary to maintain the
City’s pavement network. Deferred
maintenance results in increased costs
over time.
Origin: Staff Recommendation
Budget Unit: Roads
Cost Estimate: $42,000,000
Potential Funding Sources: Fund 200
and Fund 106
Priority Score: 25
59
UF015 - I-80/ Pinole Valley Rd. Interchange Improvements Project Information
This project will widen Pinole Valley Road
ramp terminal intersections at I-80 to
provide a dedicated right turn lane to the
eastbound and westbound I-80 on ramps.
This project will also provide crossing
enhancements at the Pinole Valley Road
and I-80 intersection.
UF016 - Shale Hill Retaining wall and sidewalk gap
Project Information
Origin: Staff Recommendation
Budget Unit: Roads
Cost Estimate: $10,959,000
Potential Funding Sources:
Priority Score: 9
Shale Hill is located on San Pablo Ave.
near Oak Ridge Road. The cut slope
above the pavement is comprised of shale
which is loose and sloughs onto the road.
There is no sidewalk in this area because
the toe of the embankment is uncontrolled
and there is inadequate space to
accommodate a sidewalk. Staff has not
been successful in securing grant funds for
this project.
Origin: Staff Recommendation
Budget Unit: Roads
Cost Estimate:
Potential Funding Sources:
Priority Score: 9
60
UF017 - Sidewalk gaps
Project Information
This project will address sidewalk gaps by
installing public sidewalks where sidewalks
are missing on one or both sides of the
street. This work will be coordinated with
other construction projects. Sidewalk gaps
often exist in places with site constraints
(i.e. right of way, grade/slopes, or utility
conflicts) or are adjacent to properties that
have been required to provide sidewalks in
the past due to land uses or ownerships.
Locations for repair will be selected based
on site conditions, pedestrian safety, and
adjacent property attributes.
UF018 - Signal System Upgrades
Project Information
Origin: Staff Recommendation
Budget Unit: Roads
Cost Estimate:
Potential Funding Sources:
Priority Score: 16
This project will upgrade various aspects
of the City’s traffic signal system including:
traffic signal controller equipment, vehicle
detection, traffic signal arms and heads,
battery backup systems, and
communications systems to reduce
congestion and improve safety for the
Pinole community.
Origin: Staff Recommendation
Budget Unit: Roads
Cost Estimate:
Potential Funding Sources:
Priority Score: 16
61
UF019 - Pinon-1
Project Information
This project involves replacement of the
approximately pipeline along San Pablo
Ave., Roble Ave., Pinon Ave, and Orleans
Avenue. In FY 2022/23, the City
contracted with a consultant to complete
phase 1 of preliminary engineering and
design for this project.
UF020 - Pinon-2
Project Information
Origin: Sanitary Sewer Master Plan
Budget Unit: Sewer
Cost Estimate: $4,482,000
Potential Funding Sources:
Priority Score: 59
This project involves replacement of the
approximately pipeline along San Pablo
Ave., Pinon Ave, Appian Way, and
Meadow Avenue.
Origin: Sanitary Sewer Master Plan
Budget Unit: Sewer
Cost Estimate: $1,866,000
Potential Funding Sources:
Priority Score: 59
62
UF021 - Tennent-1
Project Information
This project includes the replacement of
pipeline along Tennent Avenue and inside
the Water Pollution Control Plan.
UF022 - Tennent-2
Project Information
Origin: Sanitary Sewer Master Plan
Budget Unit: Sewer
Cost Estimate: $2,664,000
Potential Funding Sources:
Priority Score: 59
This project involves replacement of the
approximately pipeline along Tennent
Avenue.
Origin: Sanitary Sewer Master Plan
Budget Unit: Sewer
Cost Estimate: $4,239,000
Potential Funding Sources:
Priority Score: 59
63
UF023 - Tree Master Plan
Project Information
In 2019, the City Council established a
Beautification Ad Hoc Committee to
analyze options for, and to make
recommendations to Council regarding
clean-up and beautification projects in
Pinole. Among other projects, the
Committee recommended the development
of a Tree Master Plan to inventory the
existing trees, and to develop a plan for
managing the tree inventory, including
finding tree planting opportunities.
UF024 - San Pablo Avenue Bridge over BNSF Railroad
Project Information
Origin: Beautification AdHoc Committee
Budget Unit:
Cost Estimate: $375,000
Potential Funding Sources: Cal Fire
Urban and Community Forestry Grant
Program
Priority Score: 11
This project will replace the existing
thirteen span reinforced concrete span
structure over the Burlington Northern
Santa Fe Railroad adjacent to San Pablo
Avenue at the easterly limits of the City.
On 02/18/20, Council awarded a contract
to a Consultant to begin the preliminary
engineering (PE) for this project (CIP
Project RO1710). The PE will be
completed in two phases due to funding
limitations. The first phase was necessary
to develop a final cost estimate to
facilitate pursuing additional funding
required to complete all phases including
construction.
Origin: End of life cycle
Budget Unit: Roads
Cost Estimate: $28,800,000
Potential Funding Sources: Fund 213,
Fund 214, and Economic Stimulus funds.
Priority Score: 58
64
UF025 - Installation of Solar at City Facilities
Project Information
This project involves procurement and
installation of solar panels at City owned
facilities to offset the City’s electricity
consumption and reduce the greenhouse
gas impacts.
UF026 - All access weather roads
Project Information
Origin: Council Request
Budget Unit: Facilities
Cost Estimate:
Potential Funding Sources:
Priority Score: 37
The General Plan, Chapter 8 discusses
improvement of open space management
to reduce wildfire risks. There is a desire
to have improved, all-weather access
roads through open space to improve access to and from Hercules and El Sobrante to shorten response times and improve
mutual aid.
Origin: General Plan
Budget Unit: Roads
Cost Estimate:
Potential Funding Sources:
Priority Score: 20
65
UF027 - Faria House Renovations
Project Information
The building commonly referred to as the
“Faria House” is a two-story residence
constructed in about 1890 and originally
located at what is now 1301 Pinole Valley
Road. In 2005, the Faria House was
relocated to 2100 San Pablo Avenue. On
June 7, 2022, City Council directed staff
pursue hazard remediation and renovations to create a lower-level office, and upper-level warm shell. This project was later unfunded by City Council.
UF028 - San Pablo Avenue Complete Streets
Project Information
Origin: Council Request
Budget Unit: Facilities
Cost Estimate: $420,000
Potential Funding Sources:
Priority Score: 17
A complete streets plan would create a
new vision for San Pablo Avenue, to
transform it into a place where people of
all ages and abilities can travel safely and
comfortably whether walking, bicycling,
riding transit, or driving
Origin: Council Request
Budget Unit: Infrastructure Assessment
Cost Estimate: $200,000
Potential Funding Sources:
Subregional Transportation Mitigation
Program (STMP) funds
Priority Score: 15
66
UF029 - Signalized Intersections
Project Information
Improvement to signal hardware, signal
timing, or protected left turn phases at:
Appian Way & Fitzgerald Drive
San Pablo & Tennent Ave.
Appian Way & Canyon Dr./Tara Hills
Pinole Valley Rd./Tennent Ave./Ellerhorst St.
San Pablo Ave. & Pinole Valley Rd.
San Pablo Ave. & Pinon Ave./Appian Way
Pinole Valley Rd. & Estates Ave.
Refer to the LRSP document for detailed
recommendations.
UF030 - Pedestrian Safety at Signalized Intersections
Project Information
Origin: Local Road Safety Plan
Budget Unit: Streets & Roads
Cost Estimate: $183,792
Potential Funding Sources: Highway
Safety Improvement Program (HSIP)
Priority Score: 46
Installation of advance stop bars before
crosswalk, raised median on approaches,
raised pavement markers and striping
through intersection at:
Appian Way & Fitzgerald Drive
San Pablo & Tennent Ave.
Appian Way & Canyon Dr./Tara Hills
Pinole Valley Rd./Tennent Ave./Ellerhorst St.
San Pablo Ave. & Pinole Valley Rd.
Fitzgerald Drive and Best Buy Parking Lot
Pinole Valley Rd. & Estates Ave.
Refer to the LRSP document for detailed
recommendations.
Origin: Local Road Safety Plan
Budget Unit: Roads
Cost Estimate: $514,548
Potential Funding Sources: Highway
Safety Improvement Program (HSIP)
Priority Score: 46
67
UF031 - Safety at Unsignalized Intersections
Project Information
Install intersection lighting, install/upgrade
larger or additional stop signs or other
intersection warning/regulatory signs, or
install RRFB:
Walter Ave. & San Pablo Ave.
Pinole Valley Rd. & Simas Ave.
Pinole Valley Rd. & Wright Ave.
Pinole Valley Rd. & Rafaela St.
Wright Ave. & Carol St.
Simas Ave. & Moraga Dr.
Refer to the LRSP document for detailed
recommendations.
UF032 - Roadway Segments # 1
Project Information
Origin: Local Road Safety Plan (LRSP)
Budget Unit: Streets & Roads
Cost Estimate: $879,830
Potential Funding Sources: Highway
Safety Improvement Program (HSIP)
Priority Score: 46
Install segment lighting, or install/upgrade
signs with new fluorescent sheeting, or
install delineators, reflectors/object
markers.
Pinole Valley Rd: San Pablo Ave. to Collins
Ave.
San Pablo Ave.: Oak Ridge Rd. to
Pinole Valley Rd.
San Pablo Ave.: Golden Gate to Del Monte Dr.
Tara Hills: Kilkenny Way to Appian Way
Walter Ave: North Terminus to San Pablo Ave.
Fitzgerald Dr.: Jovita Ln. to Appian Way
Appian Way: San Pablo Ave. to Michael Dr.
Tennent Ave.: San Pablo Ave. to Pinole Valley
Rd.
Refer to the LRSP document for detailed
recommendations.
Origin: Local Road Safety Plan
Budget Unit: Roads
Cost Estimate: $1,469,474
Potential Funding Sources: Highway
Safety Improvement Program (HSIP)
Priority Score: 46
68
UF033 - Roadway Segments # 2
Project Information
Install centerline rumble strips/stripes, or
install edge-lines and centerlines, or install
RRFB
Pinole Valley Rd: San Pablo Ave. to Collins
Ave.
San Pablo Ave.: Oak Ridge Rd. to
Pinole Valley Rd.
San Pablo Ave.: Golden Gate to Del Monte Dr.
Tara Hills: Kilkenny Way to Appian Way
Walter Ave: North Terminus to San Pablo Ave.
Tennent Ave.: San Pablo Ave. to Pinole Valley
Rd.
Refer to the LRSP document for detailed
recommendations.
UF034 - Roadway Segments # 3
Project Information
Origin: Local Road Safety Plan (LRSP)
Budget Unit: Streets & Roads
Cost Estimate: $914,375
Potential Funding Sources: Highway
Safety Improvement Program (HSIP)
Priority Score: 46
Implement road diet, or install dynamic/
variable speed warning signs, or install/
upgrade pedestrian crossing
Pinole Valley Rd: San Pablo Ave. to Collins
Ave.
San Pablo Ave.: Oak Ridge Rd. to
Pinole Valley Rd.
Tara Hills: Kilkenny Way to Appian Way
Fitzgerald Dr.: Jovita Ln. to Appian Way
Appian Way: San Pablo Ave. to Michael Dr.
Refer to the LRSP document for detailed
recommendations.
Origin: Local Road Safety Plan
Budget Unit: Roads
Cost Estimate: $1,483,510
Potential Funding Sources: Highway
Safety Improvement Program (HSIP)
Priority Score: 46
69
UF035 - Vehicular Bridge Maintenance
Project Information
Maintenance of vehicular bridges as
identified in the Caltrans Bridge Inspection
Reports. The latest bridge inspection
issued in May 2023, contains
recommendations for three bridges near:
PVHS High School on Pinole Valley Rd.
Wright Ave. on Pinole Valley Rd.
On Simas Ave. near Pinole Valley Rd.
Origin: Caltrans Bridge Inspection
Budget Unit: Streets & Roads
Cost Estimate:
Potential Funding Sources:
Priority Score: 22
70
APPENDIX I: Capital Improvement Plan consistency with General Plan Funding is estimated for specific projects or asset plans in the FY 2023/24 – 2027/28 Capital Improvement Plan (CIP) which support the goals and policies of following elements of the General Plan:
• Community Character (CC)
• Growth Management (GM)
• Land Use & Economic Development (LU)
• Housing (H)
• Circulation Element (CE)
• Community Services and Facilities (CS)
• Health and Safety (HS)
• Natural Resources and Open Space (OS)
• Sustainability Element (SE)
The acroynms and associated General P lan goals/policies are listed on individual project sheets.
The FY 2023/24 – 2027/28 CIP includes funding for projects over the next five (5) fiscal years that support General Plan policies and enhance public infrastructure, amenities, and services in Pinole. The CIP is consistent with and helps implement the following General Plan goals and policies:
Community Character Element
GOAL CC.1 Maintain Pinole’s unique qualities and sense of place to preserve the established historic and small-town character of the city.
POLICY CC.1.2 Require all new development to incorporate high-quality site design, architecture and planning to enhance the overall quality of the built environment in Pinole and create a visually interesting and aesthetically pleasing town environment.
POLICY CC.1.3 To enhance a sense of arrival and create a strong appealing image that promotes community identity, the City shall develop community entry features at key gateways or city entries along Interstate 80. Entryways shall incorporate landscaping, trees, structural architectural elements, signage and public art.
POLICY CC.1.5 Encourage project compatibility, interdependence and support with neighboring uses, especially between commercial and mixed-use centers and the surrounding residential neighborhoods. Uses should relate to one another with pedestrian connections, transit options, shared parking, landscaping, public spaces, and the orientation and design of buildings.
GOAL CC.2 Emphasize and enhance the visual and physical connection between the city’s natural environment and the community’s quality of life.
POLICY CC.2.1 Provide visual and physical connections between the natural environment and the built environment through careful site design, building placement, architectural features that allow views of Pinole’s unique environment such as ridgelines or the San 71
Pablo Bay shoreline, public access to open space such as via the Bay Trail, and the use of native vegetation in the urban environment such as for landscape buffers for sidewalk areas and street trees.
POLICY CC.2.2 Preserve natural resources within the built environment, including trees, marshes, creeks and hillsides.
GOAL CC.5 Enhance the quality of life in Pinole by acknowledging the cultural diversity and by promoting, preserving and sustaining the cultural and performing arts.
POLICY CC.5.1 Celebrate the city’s cultural diversity through public art, cultural centers and community events for the benefit and enjoyment of all residents.
POLICY CC.5.2 Develop programs and facilities that promote the cultural and performing arts in Pinole.
Growth Management Element
GOAL GM.1 Regional Planning. Support cooperative transportation, land use and public service planning in Contra Costa County.
POLICY GM.1.1 West Contra Costa County Planning Activities. Achieve efficient public service delivery by coordinating with affected jurisdictions and agencies concerning public and private developments.
GOAL GM.3 Efficient Transportation. Support land use patterns that make efficient use of the transportation system and enhance public safety.
POLICY GM.3.1 Transportation Management. Make more efficient use of the regional and subregional transportation system.
POLICY GM.3.3 Provide Adequate Transportation Facilities and Services. Provide adequate transportation facilities while maintaining neighborhood integrity.
POLICY GM.3.7 Mobility-Impaired. Support efforts to provide safe and convenient transportation systems for all citizens of Pinole, particularly mobility-impaired individuals.
GOAL GM.4 Compact Development and Service Areas. Encourage infill and redevelopment in areas that are already served by utilities, infrastructure and public services.
POLICY GM.4.1 Planning for Present and Future Community Needs. Plan for, provide and maintain a level of public infrastructure facilities and services that adequately serves the present and future needs of the community.
Land Use & Economic Development Element
GOAL LU.1 Preserve and enhance the natural resources, high-quality residential neighborhoods and commercial areas, and small-town (semi-rural) character of Pinole.
POLICY LU.1.3 Establish and implement a continuing program of civic beautification, gateway or entryway enhancement, tree planting, maintenance of homes and streets, and other measures which will promote an aesthetically desirable environment and attractive neighborhood areas.
72
GOAL LU.4 Preserve and strengthen the identity and quality of life of Pinole’s residential neighborhoods.
POLICY LU.4.1 Ensure all new development, renovation or remodeling preserves and strengthens Pinole’s residential neighborhoods by requiring projects to be harmoniously designed and integrated with the existing neighborhood.
GOAL LU.6 Protect and enhance the natural resources of the San Pablo Bay waterfront for the enjoyment of Pinole residents.
POLICY LU.6.3 Provide waterfront parks, pedestrian pathways and recreation areas that are safe, accessible, and attractive for public use.
Housing Element
GOAL H.2 Protect Existing Character and Heritage. Protect and enhance the integrity and distinctive character and heritage of Pinole encouraging the development of high quality, welldesigned housing and conserving existing housing.
POLICY H.2.4 Maintain Existing Housing and Neighborhood Amenities. Maintain Pinole’s lifestyle characteristics by encouraging the maintenance of existing housing stock, and in particular housing with historic value, and preserving the amenities of existing neighborhoods.
GOAL H.3 Provide Adequate Services and Facilities. Provide adequate services and facilities to meet the needs of the city’s current and future population.
POLICY H.3.1 Plan For Public Facility and Services Needs. Future development shall be planned based on public facility and service capacity, community-wide needs, sound citywide and neighborhood planning and public improvement programming.
POLICY H.3.4 Encourage new pedestrian-oriented development. Encourage new development and redevelopment that places residences in close proximity to a variety of services and facilities.
Circulation Element
GOAL CE.1 Reduce vehicle miles traveled and encourage the use of public transit.
POLICY CE.1.1 Encourage strategic growth that concentrates future development along Pinole’s three primary transit corridors (San Pablo Avenue, Appian Way and Pinole Valley Road).
POLICY CE.1.3 Encourage development that is sensitive to both local and regional transit measures and that promotes the use of alternative modes of transportation.
POLICY CE.1.4 Encourage maximum utilization of the existing public transit system and alternate modes of transportation in Pinole.
GOAL CE.3 Provide timely input and effective means (as appropriate) of programming street and highway improvements to maintain the objective peak hour level of service without detrimentally impacting community character or commercial activity.
73
POLICY 3.2. Maintain roadway network at or above established LOS thresholds.
GOAL CE.4 Establish programs to support sidewalk, trail and street enhancements, where feasible.
POLICY CE.4.5 Inventory sidewalk conditions to identify opportunities for enhancements to the circulation system and to help prioritize repair and maintenance activities as funding becomes available.
GOAL CE.5 Provide adequate parking and loading facilities while encouraging alternative means of transportation.
GOAL CE.7 Support bicycle use as a mode of transportation by enhancing infrastructure to accommodate bicycle and rides.
POLICY CE.7.1 Enhance the City’s Bikeway network through the use of Class I, II, and III bikeways.
POLICY CE.7.3 Establish a network of multi-use paths to facilitate safe and direct offstreet bicycle and pedestrian travel.
Community Services and Facilities Element
GOAL CS.1 Provide safe, attractive and efficiently designed infrastructure and sustainable facilities to serve the public.
POLICY CS.1.1 The City will strive to provide safe, attractive and efficiently designed facilities for public and quasi-public organizations.
POLICY CS.1.3 The City will endeavor to provide convenient access to community facilities and services to all areas of the community.
GOAL CS.2 Ensure and maintain a high level of public safety in the community.
POLICY CS.2.6 The City will continue to fund the repair, maintenance and expansion of facilities to respond to evolving service needs.
GOAL CS.3 Provide adequate and high-quality recreational opportunities and programs for the community.
POLICY CS.3.1 Continue to provide a variety of recreational opportunities that serve and represent all aspects of the community.
POLICY CS.3.3 Expand and organize a multi-use trail system.
GOAL CS.6 Provide adequate, economical and dependable wastewater collection service and treatment.
POLICY CS.6.1 The City shall continue to make capital improvements to the wastewater collection and treatment system to maintain system capability and reliability.
GOAL CS.7 Minimize flooding.
74
POLICY CS.7.1 The City will ensure that the storm drain system has adequate capacity to minimize street flooding and, where feasible, shall expand the capacity of the system to control storm flows.
GOAL CS.9 Provide economical and dependable community services while conserving energy resources.
POLICY CS.9.1 The City will seek opportunities to improve the energy efficiency of facilities and operations.
GOAL CS.10 Provide safe, efficient roadway infrastructure to support multiple modes of transportation and to meet existing and future circulation needs.
POLICY CS.10.2 The City will update, where possible, the existing roadway network to enhance pedestrian, bicycle and transit circulation while maintaining safe vehicular circulation.
Health and Safety Element
GOAL HS.1 Minimize the potential for loss of life, injury, damage to property, economic and social dislocation, and unusual public expense due to natural and man-made hazards.
GOAL HS.2 Protect the community from the risk of flood damage and improve surface water quality.
POLICY HS.2.4 Continue to monitor studies that identify anticipated changes in sea level and create appropriate standards and improvements to minimize flood risks.
POLICY HS.2.5 Establish appropriate capital improvements and management programs to reduce wet weather sewer treatment demand and avoid discharge to the shallow water outfall.
GOAL HS.3 Minimize hazards of soil erosion, weak and expansive soils, potentially hazardous soils materials, other hazardous materials, geologic instability and seismic activity.
POLICY HS.3.5 Require proper handling, storage, disposal and cleanup of hazardous materials to prevent leakage, potential explosions, fires or the escape of harmful gases and to prevent individually innocuous materials from combining to form hazardous substances, especially at the time of disposal.
GOAL HS.4 Ensure that government agencies, citizens and businesses are prepared for an effective response and recovery in the event of emergencies or disasters.
POLICY HS.4.1 Continue to provide essential emergency public services during natural catastrophes
POLICY HS.4.3 Incorporate technological enhancements in new and substantially remodeled structures and facilities to support and improve emergency services. 75
GOAL HS.6 Support multiple forms of transportation and a circulation system design that reduces vehicle trips and emissions.
POLICY HS.6.1 Promote and encourage walking and bicycling as viable forms of transportation to services, shopping and employment.
GOAL HS.7 Ensure that all new development meets or exceeds state and federal water quality standards.
POLICY HS.7.1 Support Regional, state and federal clean water programs.
POLICY HS.7.3 Reduce the transport of runoff and surface pollutants.
POLICY HS.7.6 Establish appropriate capital improvements and management programs to reduce wet weather sewer treatment demand and avoid discharge to the shallow water outfall.
Natural Resources and Open Space Element
GOAL OS.1 Ensure the preservation of natural resources by determining appropriate land use and compatibility with natural resources and open space.
POLICY OS.1.2 Agency Cooperation. Work with Federal, State and local regulatory and trustee agencies to promote the long-term sustainability of local natural resources.
Sustainability Element
GOAL SE.3 The City will reduce its contribution to climate change and mitigate and adapt to the effects of climate change as appropriate.
POLICY SE.3.1 Reduce greenhouse gas emissions from City operations and community sources by a minimum of 15 percent below current or baseline levels by the year 2020.
POLICY SE.3.4 Reduce GHG emissions by reducing vehicle miles traveled and by increasing or encouraging the use of alternative fuels and transportation technologies.
POLICY SE.1.3 Enhance the energy efficiency of all City facilities.
GOAL SE.4 Optimize energy efficiency and renewable energy.
POLICY SE.4.2 Explore opportunities for City-wide expansion of Programs and Facilities related to energy efficiency and conservation.
GOAL SE.5 Achieve a solid waste diversion of 75% of the waste stream by 2020.
GOAL SE.7 Air quality will be maintained and improved for the City of Pinole and the Bay Area as a region and not decline below levels measured in early 1990’s.
POLICY SE 7.3 Support efforts to comprehensively address air quality issues through education, regulation, and innovation.
GOAL SE.8 Utilize transit options and reduce vehicle miles traveled and single-occupancy vehicle use.
76
POLICY SE.8.7 Work to improve Pinole’s pedestrian and bicycle infrastructure and to meet the needs of all pedestrians and bicyclists.
POLICY SE.8.10 Support and promote the use of low- and zero-emissions vehicles, alternative fuels, and other measures to directly reduce emissions from motor vehicles.
Community Character Element
GOAL CC.1 Maintain Pinole’s unique qualities and sense of place to preserve the established historic and small-town character of the city.
POLICY CC.1.2 Require all new development to incorporate high-quality site design, architecture and planning to enhance the overall quality of the built environment in Pinole and create a visually interesting and aesthetically pleasing town environment.
POLICY CC.1.3 To enhance a sense of arrival and create a strong appealing image that promotes community identity, the City shall develop community entry features at key gateways or city entries along Interstate 80. Entryways shall incorporate landscaping, trees, structural architectural elements, signage, and public art. 77
APPENDIX II: Prioritization Matrix Category Scoring Guidelines
1. Regulatory Compliance – Compliance with regulatory mandates issued by agencies likes California State Water Resources Control Board, California Department of Resources, Recycling and Recovery, Department of Fish and Wildlife, the San Francisco Bay Conservation and Development Commission, or other County, State and federal laws. This also includes the Americans with Disabilities Act, the Manual of Uniform Traffic Control Devices, and self-imposed City ordinances. The score should be based on the answers to the following example questions:
a. Does the proposed project address a current regulatory mandate? b. Will the proposed project proactively address a foreseeable (within the next 5 years) regulatory mandate?
Scoring scale:
0 2-3 5
The project does
not address a
regulatory
compliance issue
The project provides a
short-term fix for an
existing regulatory
compliance issue or for
one anticipated in the near
future
The project resolves
a pressing or longterm regulatory
compliance issue
2. Health/Safety – Projects that improve the overall health and safety of the community such as multi-purpose trails, transportation safety improvements, new recreation facilities, address safety issues at City facilities, enhancements to police, fire, and emergency medical services.
The score should be based on answers to the following example questions:
a. Does the proposed project impact the health and wellbeing or safety of Pinole residents and/or employees?
b. Does the project mitigate a serious risk or liability health/safety issue and to what degree? c. Does the project help assist the City to respond more effectively and efficiently to emergencies throughout the community?
Scoring scale:
0 2-3 5
The project does
not impact the
health and/or
safety of the
community
The project addresses a
serious health and/or safety
issue that has a limited
impact or addresses a lessserious issue but serves the health and or safety of the
broader community
The project directly
addresses a
serious health
and/or safety issue
that has a
widespread impact
and/or improves
the health of the
community
78
3. Project Dependency/Bundling– The completion of the proposed project is complementary to the completion of a precursor capital project/master plan or the proposed project would be implemented efficiently if it was coordinated with another capital project. A project that is not needed for many years would score lower than a project that needs to be completed before another project can start. The score should be based on answers to the following example questions:
a. When is the proposed project needed?
b. Do any other projects require the proposed project to be completed first? c. Does the proposed project require other projects to be completed first? d. Can the proposed project be completed in conjunction with another project for coordinated, efficient implementation?
Scoring scale:
0 2-3 5
The project does
not have a project
dependency
The project can be
completed in conjunction
with another project for
coordinated, efficient
implementation
The project must be
completed before
another priority project
can start
4. Long-Term Planning – General Plan, Three-Corridor Specific Plan, 2020-2025 Strategic Plan, Long-Term Financial Plan, Pinole Economic Development Strategy, Master Plans, Emergency Operations Plan, Communication and Engagement Plan, Climate Action Plan, Local Road Safety Plan, Active Transportation Plan, Parks Master Plan, and departmental strategic plans which serve as a resource for the City to meet goals set forth by City departments, advisory boards and commissions, and the community at-large. Plans include documents that have been prepared internally to assure consistent adherence to industry best practices, as well as those documents that are created with the assistance of outside consultants. A component of long-term planning includes public discussion and/or public engagement. The score should be based on the answers to the following example questions:
a. Is the proposed project contained in one or more of the City’s long-term planning documents?
b. Is the proposed project listed as a high priority?
Scoring scale:
0 2-3 5
The project is
not part of any
long-term
planning
document
The project is
included in a longterm planning
document, but may
not be high priority
The project is included
in a long-term planning
document and is a high
priority
79
5. State of Infrastructure – Projects that address failing infrastructure (i.e., sidewalks, streets, lighting, municipal buildings, recreation facilities) or facilities that have exceeded their useful life. The score should be based on answers to the following example questions:
a. Does the proposed project maintain the condition or value of existing infrastructure? b. Does the proposed project avoid potential failure due to substandard conditions? c. Will the proposed project address a facility that is outdated or exceeded its useful life? d. Is the proposed project supported by a life cycle analysis of repair versus replacement and a master plan for that type of asset?
Scoring scale:
0 2-3 5
The project
maintains
existing
infrastructure
at current
service levels
The project extends the
service life of an existing
asset or adds new
infrastructure to support
growth
The project addresses
existing infrastructure
which has reached the
end of its useful life and is
supported by a life cycle
analysis of repair vs.
replacement
6. Operating Budget Impact – Some proposed projects may impact the operating budget for the next few years or for the life of the facility. Some proposed projects can offer cost savings or revenue generation opportunities. The score should be based on answers to the following questions:
a. Will the proposed project require additional personnel to operate? b. Will the proposed project require additional annual maintenance? c. Will the proposed project require additional equipment not included in the project budget?
d. Will the proposed project reduce staff time and City resources thereby resulting in a positive impact on the operational budget?
e. Are there cost savings or revenue generation opportunities as a result of the efficiency of the proposed project?
Scoring scale:
0 2-3 5
The project will
have a negative
impact on the
budget. It will
require additional
money to operate
The project will not
impact the operating
budget as it is
cost/revenue neutral
The project will have a
positive impact on the
budget. It will result in
significant savings in
staff time, materials, or
offer revenue
generation
80
7. Quality of Life – Projects that provide widespread economic prosperity, recreational and cultural activities, environmental benefits, beautify Pinole, and attract new residents and visitors. The score should be based on answers to the following example questions:
a. Does the proposed project help to create a beautiful and clean community? b. Does the proposed project encourage participation in recreational and cultural activities?
c. Does the proposed project attract new residents, businesses, or visitors? d. Does the proposed project increase environmental stewardship? e. Does the proposed project contribute towards economic development and revitalization efforts?
Scoring scale:
0 2-3 5
The project will
not have an
impact on the
quality of life for
the Pinole
community
The project has
moderate impact on the
quality of life for the
Pinole community
The project greatly
impacts the quality
of life for the Pinole
community
8. Grant Funding – The proposed project is partially or fully supported by grants from State or Federal funds. The percentage of total cost funded by an external source will determine the score in this category.
Scoring scale:
0 1 2 3 4 5
0% - 16%
External
Funding
17% - 33%
External
Funding
34% -
50%
External
Funding
51% - 67%
External
Funding
68% - 84%
External
Funding
85% to
100%
External
Funding
9. Sustainability and Conservation – The proposed project furthers the City’s sustainability and conservation goals. The score should be based on answers to the following example questions:
a. Does the proposed project improve the health of the community and natural environment through sustainable designs with improved air quality and reduce greenhouse gas emissions that contribute to climate change? b. Does the proposed project increase use of active modes of transportation and reduces the need for auto-dependency?
c. Does the proposed project incorporate design that meets or exceeds federal and State standards in the field of energy efficiency, such as State of California Title 24 Energy Efficiency Standards, LEED building standards, etc.?
81
Scoring scale:
0 2-3 5
The project will not
impact the City’s
ability to achieve
sustainability and
conservation goals
The project will have a
modest positive impact
on the City’s ability to
achieve sustainability
and conservation goals
The project will have
a significant positive
impact on the City’s
ability to achieve
sustainability and
conservation goals
82
CITY COUNCIL
REPORT 9.F.
DATE: JULY 16, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: STACY SHELL, HUMAN RESOURCES DIRECTOR
SUBJECT: APPROVE AN AMENDMENT TO THE EMPLOYMENT AGREEMENT FOR
THE CITY CLERK
RECOMMENDATION
It is recommended that the Pinole City Council approve an amendment to provide a four percent (4%) cost of living adjustment to the employment agreement for Heather Bell as City Clerk.
BACKGROUND
In March 2019, the City Council appointed Ms. Bell to the position of City Clerk. On March 6, 2019, Ms. Bell and Mayor Murray signed a four-year term employment agreement through March 5, 2023. Ms. Bell commenced her duties as City Clerk on March 6, 2019.
The City Council and Ms. Bell had previously entered into subsequent employment agreement amendments to provide cost of living adjustments, merit increases, market rate adjustments, and employee benefit enhancements.
REVIEW AND ANALYSIS
The City of Pinole Municipal Code (PMC), Title II, Administration and Personnel, Chapter 2.05, Office of the City Clerk, Section 2.05.010, Office Created, provides the City Council with the authority to establish the office of the City Clerk and appoint a City Clerk on the basis of their administrative and executive abilities and qualifications and hold office for and during the pleasure of the City Council (City of Pinole Ordinance No. Ord. 2004-13, Section 1, 2004).
The City Clerk’s employment agreement was made and entered into by and between the City Council and Ms. Bell on March 6, 2019. The agreement provides Ms. Bell with annual cost of living adjustments equivalent to those provided to City employees represented by the American Federation of State, County, and Municipal Employees, Local 512 (“AFSCME”).
On August 15, 2023, the City Council adopted Resolution 2023-64, approving the Memorandum of Understanding (“MOU”) between the City of Pinole and AFSCME for the period of July 1, 2023 – June 30, 2025. The AFSCME MOU provided unit members with a four percent (4%) COLA effective the first full pay period following July 1, 2023 and a four percent (4%) COLA effective the first full pay period following July 1, 2024.
In accordance with the March 6, 2019 employment agreement, the City Council shall provide
Ms. Bell with a four percent (4%) cost of living adjustment as codified in Exhibit A of the Resolution attached to this City Council Report.
FISCAL IMPACT
City staff does not expect there to be any new fiscal impact to the General Fund due to the proposed amendment to the agreement has already been incorporated into the FY 2024/25 Budget.
ATTACHMENTS
A. Reso CC Amendment #2-2024 (7-16-24)
B. Amendment #2-2024 Bell - FINAL
ATTACHMENT A
RESOLUTION NO. 2024-___
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PINOLE, COUNTY OF
CONTRA COSTA, STATE OF CALIFORNIA, APPROVING AN AMENDMENT TO THE
EMPLOYMENT AGREEMENT FOR THE CITY CLERK
WHEREAS, the City Council and Heather Bell entered into an Employment Agreement (“Agreement”) for the position of City Clerk on March 6, 2019; and WHEREAS, Ms. Bell commenced her duties as City Clerk on March 6, 2019; and WHEREAS, the term of the Agreement was for four (4) years; and WHEREAS, the Agreement provides Ms. Bell with annual cost of living adjustments (“COLA”) equivalent to those provided to City employees represented by the American Federation of State, County, and Municipal Employees, Local 512 (“AFSCME”); and
WHEREAS, on August 15, 2023, the City Council adopted Resolution 2023-64, approving the Memorandum of Understanding (“MOU”) between the City of Pinole and AFSCME for the period of July 1, 2023 – June 30, 2025; and WHEREAS, the AFSCME MOU provided unit members with a four percent (4%) COLA effective the first full pay period following July 1, 2023 and a four percent (4%) COLA effective the first full pay period following July 1, 2024; and WHEREAS, the City and Employee now wish to amend the Agreement with a four percent (4%) COLA effective July 1, 2024.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Pinole does hereby approve an amendment the Agreement hereunto attached as Exhibit A and authorize the Mayor to execute the said amendment.
PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 16TH day of July 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 16th day of July 2024.
Pinole City Council
Resolution No. 2024-__
Page ___
______________________________________
Heather Bell
City Clerk
Exhibit A
AMENDMENT #2-2024 TO THE AGREEMENT FOR EMPLOYMENT OF
HEATHER BELL
This Amendment #2-2024 to the Agreement for the Employment of Heather Bell (the “Amendment”) is made and entered into as of __________ by and between the City of Pinole (the “City"), a California general law city, and Heather Bell, an individual ("BELL" or "Employee").
RECITALS
WHEREAS, the City and Employee previously entered into that certain Agreement for the Employment of Heather Bell effective as of March 6, 2019 (the “Agreement”); and
WHEREAS, the City and Employee have previously entered into multiple amendments to the Agreement; and
WHEREAS, the Agreement provides Employee with annual cost of living adjustments (“COLA”) equivalent to those provided to City employees represented by the American Federation of State, County, and Municipal Employees, Local 512 (“AFSCME”); and
WHEREAS, on August 15, 2023, the City Council adopted Resolution 2023-64, approving the Memorandum of Understanding (“MOU”) between the City of Pinole and AFSCME for the period of July 1, 2023 – June 30, 2025; and WHEREAS, the AFSCME MOU provided unit members with a four percent (4%) COLA effective the first full pay period following July 1, 2023 and a four percent (4%) COLA effective the first full pay period following July 1, 2024; and WHEREAS, the City and Employee now wish to amend the Agreement as specified herein.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the City and BELL agree as follows:
1. Compensation. Section 6(a), Compensation, of the Agreement is hereby amended in its entirety to read as follows:
“a. BELL shall be paid an annual base salary of $185,398.73, or $15,449.8942 per month, less all applicable federal, state, and local withholding. BELL shall be considered for a merit increase annually in conjunction with the completion of her performance evaluation, as outlined in paragraph 11. Merit increases shall subject to the City’s ability to pay for a salary adjustment.”
2. Effective Date. This Amendment shall be effective the pay period commencing July 1, 2024.
Exhibit A
3. Effect. Except as expressly provided for herein, all other terms and conditions of the Agreement, as previously amended, shall remain in full force and effect.
EMPLOYEE
Heather Bell
DATED: ________________
CITY
Maureen Toms, Mayor
DATED:
ATTEST: APPROVED AS TO FORM:
Stacy R. Shell Eric S. Casher
Human Resources Director City Attorney
CITY COUNCIL
REPORT 9.G.
DATE: JULY 16, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: SANJAY MISHRA, PUBLIC WORKS DIRECTOR
SUBJECT: ADOPT A RESOLUTION DECLARING INTENT FOR THE LEVY AND
COLLECTION OF ANNUAL ASSESSMENTS FOR THE PINOLE VALLEY
ROAD LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT (LLAD) FOR FY 2024/2025, SETTING THE DATE OF THE PUBLIC HEARING, AND
APPROVING THE ANNUAL ENGINEER'S REPORT
RECOMMENDATION
Staff recommends the City Council adopt a resolution declaring the intent to levy and collect assessments for the Pinole Valley Road Landscape and Lighting Assessment District (LLAD), setting a public hearing for August 6, 2024, and approving the annual Engineer’s Report.
BACKGROUND
The City Council adopted Resolution 2008-91 forming the Pinole Valley Road Landscape and Lighting Assessment District (LLAD, the “District”), ordering maintenance work therein, confirming the diagram and assessment, and providing for the levy of annual assessments therein. Since the inception of the District, the City has installed improvements on Pinole Valley Road between Henry Avenue and Ramona Street. The purpose of the District is to provide a stable funding source for the ongoing maintenance and operation of the traffic signals, streetlights, and median landscaping.
On May 7, 2024, the City Council adopted a resolution initiating proceedings for the annual levy of assessments and ordering the preparation of the annual Engineer’s Report for the District for Fiscal Year 2024/2025. This was step one of the process.
REVIEW AND ANALYSIS
The City must take the actions listed below each year to levy and collect the assessments for the District:
1. Adopt a resolution ordering the preparation and filing of the annual Engineer’s Report;
2. Determine if any changes are needed to the existing improvements or new improvements are needed, and create the annual Engineer’s Report;
3. Adopt a resolution declaring the intention to levy and collect assessments; declaring the intention to conduct a Public Hearing concerning the levy of assessments; and approving the annual Engineer’s Report;
4. Announce any increase in the maximum assessment; and
5. Conduct a Public Hearing and adopt a resolution approving the assessment amounts for
the upcoming fiscal year and ordering that the assessment amounts be submitted to the Contra Costa County Assessor for placement on the secured property tax roll.
Based upon the District budget and reserves, the assessment rates for Fiscal Year 2024/2025 are proposed to increase from last year due to inflationary increases in the costs for utilities.
The proposed rates for 2024/2025 are $556.20 per assessment unit (“AU”) for Zone A and $605.12 per AU for Zone B. The proposed assessment represents an increase of 3.8% for Zone A and 3.8% for Zone B. The maximum assessment rate per unit is $661.12 for Zone A and $624.13 for Zone B. This maximum assessment rate represents a 3.8% increase for Zone A and a 3.8% increase for Zone B. An AU is equivalent to an acre of developable property.
When the District was originally approved in 2008, the approved maximum assessment rate authorized annual future increases to account for inflation. The proposed rates for Fiscal Year 2024/2025 do not exceed the amount authorized by the original approval.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
The proposed actions of the City Council are not a project as defined by the California Environmental Quality Act (CEQA) Guidelines and have no impact on the environment.
FISCAL IMPACT
The proposed assessments will be collected for the City by the Contra Costa County Tax Collector via the secured property tax bills for the assessable parcels within the District. As stated above, the Fiscal Year 2024/2025 assessment rates will increase for Zone A and B.
The total District budget for Fiscal Year 2024/25 will be $59,560.64.
ATTACHMENTS
A. Reso_LLAD_FY24-25
B. Engineers Report - LLAD 2024-25
RESOLUTION NO. _____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PINOLE DECLARING ITS
INTENT FOR THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS FOR
THE PINOLE VALLEY ROAD LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT FOR FISCAL YEAR 2024/2025, APPROVING THE ENGINEER’S REPORT,
AND SETTING THE DATE OF THE PUBLIC HEARING
WHEREAS, the City Council has by previous Resolutions formed said special maintenance district and has initiated proceedings for Fiscal Year 2024/2025, pursuant to the provisions of the “Landscape and Lighting Act of 1972” (the “1972 Act”), being Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500), that provides for the levy and collection of assessments by Contra Costa County to pay for the annual maintenance and servicing costs of all improvements and facilities related thereto. Said special maintenance district is known and identified as the Pinole Valley Road Landscape and Lighting Assessment District (hereafter referred to as the “District”). The District is comprised of two Zones (Zone A and Zone B), which are located on Pinole Valley Road between Henry Avenue and Ramona Street; and
WHEREAS, the City Council has directed the preparation of the Annual Engineer’s Report (the “Report”) for the District, in accordance with the 1972 Act; and
NOW, THEREFORE BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL, FOR THE DISTRICT, PURSUANT TO CHAPTER 3, SECTION 22624 OF THE 1972 ACT, AS FOLLOWS:
Section 1 Intention: The City Council hereby declares that it is its intention to seek the annual levy of the District pursuant to the 1972 Act, over and including the land within the District boundaries, and to levy and collect assessments on all benefitting land to pay the annual costs of the maintenance and servicing of the improvements located within the District. The City Council finds that the public’s best interest requires such levy and collection.
Section 2 District Boundaries: The boundaries of the District are described in the Report. Please refer to the Report for a full and complete description of the specific boundaries and diagram.
Section 3 Description of Improvements: The improvements within the District may include, but are not limited to: turf, shrubs, plants and trees, landscaping, street lighting, traffic signals, irrigation and drainage systems, graffiti removal, litter abatement, sidewalks, landscape lighting, masonry walls, and associated appurtenances within the public right-of-ways or specific easements. Services provided include all necessary service, operations, administration and maintenance required to keep the improvements in a healthy, vigorous and satisfactory condition and in proper working order. The specific improvements within the District are detailed in the Report.
Section 4 Proposed Assessment Amounts: The proposed rates for 2024/2025 are $556.20 per assessment unit (“AU”) for Zone A and $605.12 per AU for Zone B. The proposed assessment represents an increase of 3.8% for Zone A and 3.8% for Zone B.
For Fiscal Year 2024/2025, the proposed assessments for each parcel within the District are shown in the Report. Said Report also details any changes or increases in the annual assessments.
Section 5 Public Hearing: The City Council hereby declares its intention to conduct a Public Hearing annually concerning the levy of assessments for the District in accordance with Chapter 3, Section 22626 of the 1972 Act.
Section 6 Notice: The City Council shall give notice of the time and place of the Public Hearing to all property owners within the District by causing the publishing of this Resolution once in the local newspaper not less than ten (10) days before the date of the Public Hearing and by posting a copy of this Resolution on the official bulletin board customarily used by the City for the posting of notices. All interested persons shall be afforded the opportunity to hear and be heard.
Section 7 Notice of Public Hearing: Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Tuesday August 6, 2024 at or after 5:00 p.m. at Pinole City Hall, located at 2131 Pear Street, Pinole.
Section 8 Report Approval: The City Council approves the FY 2023/2024 Pinole Valley Road Landscape and Lighting Assessment District Annual Engineer’s Report, a copy of which may be requested from the City Clerk.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pinole held on this 16th day of July, 2024, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ABSTENT: COUNCILMEMBERS:
I hereby certify that the foregoing resolution was regularly introduced, passed, and adopted on the 16th day of July, 2024.
___________________________________
Heather Bell, CMC
City Clerk
PINOLE VALLEY ROAD LANDSCAPE
AND LIGHTING ASSESSMENT
DISTRICT
ENGINEER' S REPORT FY 2024-25
JULY 16, 2024
ZONE A ZONE B
ENGINEER'S REPORT AFFIDAVIT
City of Pinole
Contra Costa County, State of California
Pinole Valley Landscape and Lighting District
The undersigned submits this report as directed by the City Council. This report was prepared by a Professional Engineer, licensed in the State of California. This report describes the District including the improvements, budgets, parcels, and assessments to be levied for fiscal year 2024/25, as they existed at the time of the passage of the resolution of intention. Reference is hereby made to the Contra Costa County Assessor's maps for detailed descriptions of the lines and dimensions of parcels within the District.
Dated this day of 16
th July, 2024
By Sanjay Mishra, PE, TE
City Engineer
RCE # 71239
Pinole Valley LLAD
Engineer’s Report FY 2024-25
TABLE OF CONTENTS
INTRODUCTION ....................................................................................2 SECTION I - DESCRIPTION OF THE DISTRICT AND BOUNDARIES...3 IMPROVEMENTS AND SERVICES PROVIDED ................................. 4 SECTION II – METHOD OF APPORTIONMENT....................................5 DESCRIPTION OF BENEFIT ............................................................... 5 ASSESSMENT RANGE FORMULA..................................................... 6 ASSESSMENT METHODOLOGY........................................................ 9 SECTION III – ZONE BUDGETS............................................................9 DESCRIPTION OF BUDGET ITEMS.................................................. 11 ACCOUNT BALANCES...................................................................... 12 SECTION IV – ASSESSMENT ROLL ..................................................13 SECTION V – DISTRICT DIAGRAM ....................................................15 Page | 1
Pinole Valley LLAD
Engineer’s Report FY 2024-25
INTRODUCTION
The City of Pinole (the “City”), under the provisions of the Landscape and Lighting Act of 1972, Part 2 of Division 15 of the California Streets and Highways Code (the “1972 Act”) and the provisions of the California Constitution Article XIII D (the “Constitution”), annually levies and collects special assessments from the City’s maintenance assessment district designated as:
Pinole Valley Road Landscape and Lighting Assessment District (the “District”) to provide and maintain various landscaping and lighting improvements throughout the City that provide special benefits to properties within the City.
The City Council formed the District and provided for the levy and collection of annual assessments on the County tax rolls to provide ongoing funding for costs and expenses required to service and maintain the landscaping and lighting improvements within the boundaries of the District. The improvements to be provided by the District and assessments described herein are made pursuant to the 1972 Act and the substantive and procedural provision of the Constitution.
As part of the District formation, the City of Pinole conducted a Property Owner Protest Ballot proceeding for the proposed levy of a new assessment pursuant to the provisions of the Constitution. In conjunction with this ballot proceeding, the City council conducted a noticed public hearing to consider public testimonies, comments, and written protests regarding the formation of the District and levy of assessments. Upon conclusion of the public hearing, property owner assessment ballots received were opened and tabulated.
The property owner assessment ballot tabulation resulted in a majority approval of the District and assessments of the property owners within the District. The District was formed on July 1, 2008 by Resolution no. 2008-91. The District is located on Pinole Valley Road and consists of two separate zones: Zone A and Zone B.
This Engineer’s Report (the “Report”) has been prepared pursuant to Chapter 1, Article 4 and Chapter 3 of the 1972 Act, and outlines the improvements, and proposed assessments to be levied in connection with the benefits the properties will receive from maintenance and servicing of landscaping improvements within the District for fiscal year 2024-25.
The word “parcel,” for the purposes of this Report, refers to an individualproperty assigned its own Assessor’s Parcel Number (“APN”) by the Contra Costa County Assessor’s Office.
The Contra County Auditor/Controller APN and specific fund numbers to identify properties to be assessed on the tax roll for the District assessments.
Page | 2
Pinole Valley LLAD
Engineer’s Report FY 2024-25
This Report consists of five sections and identifies the following items:
• Plans and Specifications – The location of the District and the specific improvements to be maintained.
• Method of Apportionment – How the District costs are allocated and apportioned to the assessable parcels.
• Zone Budgets – The District costs and proposed assessments to be levied for 2024/25 for each Zone based upon the special benefit received. • District Diagram – A diagram showing the District and Zone boundaries. • Assessment Roll – A listing of properties to be assessed by APN, Zone, and corresponding assessment amounts.
ASSESSMENT SUMMARY FY 2023-24
Total
Assessable
Costs
Total
Assessable
Units
Proposed
Assessment
Rate per AU
Maximum
Assessment
Rate per AU
Zone A $30.195.00 52.796 $556.20 $661.12
Zone B $29,365.00 49.900 $605.12 $624.13
Actual assessments are rounded down to the nearest even penny for county tax roll purposes.
SECTION I – PLANS AND SPECIFICATIONS DESCRIPTION OF THE DISTRICT AND
BOUNDARIES
The District consists of two separate zones and is located on Pinole Valley Road, between Henry Avenue and Ramona Street. Zone A is to the north of Interstate I-80 and Zone B is to the south of Interstate I-80. Currently, there are a total of 18 commercial parcels within the District, 8 in Zone A and 10 in Zone B. The number of parcels in Zone A was reduced from 8 to 6 and Zone B was reduced from 16 to 15 parcels, due to parcel mergers effective for the 2011/2012 tax year. An annexation also occurred in Zone A for tax year, 2013/2014, increasing the parcel count for that Zone to 7 and the AU to 52.972. For tax year 2018/2019, one parcel was split into two with a slight size reduction, decreasing the AU to
52.796. The number of parcels in Zone B was reduced from 15 to 10 due to parcel mergers/changes effective for the 2013/2014 and 2014/2015 tax years. A clerical error was brought to the City’s attention in December 2019 which has been transcribed over time and resulted in a higher AU in Zone B. In FY 2020-21, the clerical error was corrected resulting in a lower AU in Zone B.
Please refer to the Section V of this Report, Assessment Roll, for details.
Page | 3
Pinole Valley LLAD
Engineer’s Report FY 2024-25
IMPROVEMENTS AND SERVICES PROVIDED
Improvements within the District which are maintained and serviced may include but are not limited to: turf, shrubs, plants and trees, landscaping, street lighting, traffic signals, irrigation and drainage systems, graffiti removal, litter abatement, sidewalks, landscape lighting, masonry walls and associated appurtenances within the public right-of-way or specific easements.
The maintenance of District improvements generally include, but are not limited to, all materials, equipment, utilities, labor and incidental expenses, including administrative expenses, for the annual operation of the District and maintenance of the improvements.
Also included is the performance of occasional repairs and the removal or replacement of improvements, as needed.
The specific improvements being maintained and serviced within each Zone of the District are defined on the following page:
Zone A Improvements (Northerly of I-80 Freeway)
• Landscaping totaling 16,920 square feet.
• Irrigation system for landscaping and two irrigation controllers. • Maintenance of seven street light poles and fourteen street lights. • Maintenance of two and a half traffic signals.
• Electrical power for street lights, traffic signals and irrigation system. • Weed control and abatement.
• Graffiti abatement.
• Median repairs and contingency for damage.
• Litter abatement and collection (2,102 linear feet).
Zone B Improvements (Southerly of I-80 Freeway)
• Landscaping totaling 18,486 square feet.
• Irrigation system for landscaping and two irrigation controllers. • Maintenance of ten street light poles and twenty street lights. • Maintenance of one and a half traffic signals.
• Electrical power for street lights, traffic signals and irrigation system. • Weed control and abatement.
• Graffiti abatement.
• Median repairs and contingency for damage.
• Litter abatement and collection (2,859.58 linear feet).
Reference is made to the plans and specifications for the improvements which are on file with the City and are incorporated herein by reference.
Page | 4
Pinole Valley LLAD
Engineer’s Report FY 2024-25
SECTION II – METHOD OF APPORTIONMENT
The 1972 Act allows for the establishment of assessment districts by public agencies for the purpose of providing certain public improvements as detailed in Section I of this Report.
The 1972 Act also requires that the cost of these improvements and services be assessed based on benefit received rather than by assessed value of the properties being assessed.
In accordance with the 1972 Act, Section 22573:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among assessable lots or parcels in proportion to the estimated benefits received by each such lot or parcel from the improvements”
The method of apportionment described in this Report, and confirmed by the City Council, utilizes commonly accepted engineering practices which have been established pursuant to the 1972 Act and the California Constitution for the allocation of special benefit assessments. The calculation of assessments is based upon the parcel type and the services and improvements provided. The special benefit received by each lot or parcel is over and above any general benefit conferred upon said lots or parcels or to the public at large.
DESCRIPTION OF BENEFIT
Special Benefit
The improvements and associated costs have been allocated to the assessable properties within the District based upon the special benefit received by those properties, pursuant to the provisions of the 1972 Act. The improvements for which the properties will be assessed have been identified as necessary, were approved by the property owners within the District through a Proposition 218 assessment ballot procedure and are in compliance with the development plans and General Plan of the City. As such, the improvements and continuing maintenance and servicing are strictly the obligation of the properties within the District.
General Benefit
Although the improvements may be visible to passersby or to the public at large, the improvements were installed after approval from the property owners and are for the benefit of properties within the District. It has been determined therefore, any access to or use by properties or individuals outside the District is completely incidental and the costs of operating, maintaining, and servicing said improvements provides no measurable benefit to said outside properties or individuals.
Page | 5
Pinole Valley LLAD
Engineer’s Report FY 2024-25
Definition of Special Benefit
The method of apportionment described in this Report is based on the premise that each assessable parcel or unit receives distinct and special benefits from the improvements and services provided, including the visual desirability provided by well-maintained landscaping. In accordance with Article XIII D, Section 4 of the California Constitution:
“Special benefit means a particular and distinct benefit over and above general benefits conferred on real property located in the District or the public at large” The special benefits associated with local landscape and lighting improvements are specifically:
• Enhanced desirability of properties due to proximity of the improvements. • Improved aesthetic appeal provided by a positive representation of the community. • Improved ingress and egress to property resulting in enhanced traffic flow, reduced traffic accidents and consequent reduction in possible property damage. • Improved traffic visibility and circulation.
• Improved accessibility for emergency vehicles.
• Reduced vandalism and other criminal activity.
• Enhanced environmental quality provided by adequate green space and other landscaping which helps moderate temperatures, reduce noise pollution and control dust and debris.
ASSESSMENT RANGE FORMULA
It is generally recognized that most budgetary items will be impacted by inflation in future years. In accordance with the California Constitution, and Government Section 53739 (b) (1), assessments “may be adjusted for inflation pursuant to a clearly defined formula…” A formula for an inflationary adjustment is therefore included as part of the maximum assessment for this District and was approved by the property owner(s) at the time of formation. The formula, as described below, allows for annual adjustments to the budget and the assessments.
Generally, any new or increased assessment requires certain noticing and meeting requirements by law, the Government Code excludes certain conditions of a new or increased assessment. These conditions include:
“An assessment that does not exceed an assessment formula or range of assessments previously specified in the notice given to the public…and that was previously adopted by the agency…”
The initial maximum assessment for the District was established at the time of formation and was assessed for the first time during the 2008/2009 fiscal year. The initial maximum assessment for Zone A was $415.52 per Assessment Unit (“AU”). The initial maximum assessment for Zone B was $390.80 per AU. The initial maximum assessment for each Page | 6
Pinole Valley LLAD
Engineer’s Report FY 2024-25
Zone has been adjusted each subsequent fiscal year by the following Assessment Range Formula:
•The Maximum Assessment Rate allowed each fiscal year (the “Adjusted Maximum Assessment Rate”) shall be based on the initial maximum assessment established in fiscal year 2008/2009, adjusted annually by the Bureau of Labor Statistics, Consumer Price Index for the month of April, All Urban Consumers, (“CPI”) for the San Francisco/Oakland/San Jose area or two percent (2%), whichever is greater. Should the Bureau of Labor Statistics revise or discontinue the preparation of such index, the City reserves the right to use such revised index or a comparable system to determine fluctuations in the annual cost of living. •Each fiscal year, the greater of CPI or 2% shall be applied to the Maximum Assessment Rate established the previous fiscal year to calculate the appropriate Adjusted Maximum Assessment Rate for the then current fiscal year. • If the proposed annual assessment rate (assessment per AU) for the upcoming fiscal year is less than or equal to the Adjusted Maximum Assessment Rate established for that fiscal year, then the proposed annual assessment is not considered an increased assessment.
Beginning in the second fiscal year after the formation of the District (2009/2010) and each fiscal year since, the Maximum Assessment Rate has been recalculated and a new Adjusted Maximum Assessment Rate has been established for each fiscal year using the Assessment Range Formula described above. Each fiscal year, the greater of CPI or 2% is applied to the Maximum Assessment Rate from last year. The April 2024 CPI is 3.8%, therefore a 3.8% will be applied to the Maximum Assessment Rate from the last year.
The Zone A Maximum Assessment Rate for the upcoming fiscal year (2024/2025) therefore, shall be $661.12 per AU. The Zone B Maximum Assessment Rate for the upcoming fiscal year shall be $624.13 per AU. The table below shows the Adjusted Maximum Assessment Rate for each Zone, for each fiscal year since the formation of the District. The Adjusted Maximum Assessment Rates have been calculated independently of the annual budget and proposed assessment rate for the given fiscal year. As stated above, if the proposed annual assessment for any fiscal year does not exceed the Adjusted Maximum Assessment Rate for that year, it is not considered to be an increased assessment under the terms of Proposition 218 or the Government Code.
Zone A LLAD Assessment/CPI History
Fiscal Year
April
CPI
Allowable
Increase
Actual
April CPI
Calculation
Adjusted
Max.
Assessment
per AU
Actual
Assessment
per AU
2008/2009 N/A N/A N/A $415.52 $415.82
2009/2010 0.80% 2.00% 1.020000000 $423.83 $415.82
2010/2011 1.71% 2.00% 1.020000000 $432.31 $415.82
Page | 7
Pinole Valley LLAD
Engineer’s Report FY 2024-25
2011/2012 2.82% 2.82% 1.028212932 $444.51 $394.80
2012/2013 2.07% 2.07% 1.020775582 $453.74 $394.80
2013/2014 2.38% 2.38% 1.023809026 $464.54 $377.74
2014/2015 2.78% 2.78% 1.027873710 $477.49 $377.74
2015/2016 2.43% 2.43% 1.024362313 $489.12 $377.74
2016/2017 2.70% 2.70% 1.026950338 $502.30 $377.74
2017/2018 3.78% 3.78% 1.037888610 $521.34 $377.74
2018/2019 3.20% 3.20% 1.032 $538.02 $396.32
2019/2020 4.0% 4.0% 1.040 $559.54 $409.69
2020/2021 1.1% 2.0% 1.020 $570.73 $422.04
2021/2022 3.8% 2.0% 1.020 $582.14 $474.90
2022/2023 5.0% 5.0% 1.050 $611.25 $498.65
2023/2024 4.2% 4.2% 1.042 $636.92 $535.84
2024/2025 3.8% 3.8% 1.038 $661.12 $556.20
Zone B LLAD Assessment/CPI History
Fiscal Year
April
CPI
Allowable
Increase
Actual April
CPI
Calculation
Adjusted
Max.
Assessment
per AU
Actual
Assessment
per AU
2008/2009 N/A N/A N/A $390.80 $390.80
2009/2010 0.80% 2.00% 1.020000000 $398.62 $390.80
2010/2011 1.71% 2.00% 1.020000000 $406.59 $390.80
2011/2012 2.82% 2.82% 1.028212932 $418.06 $342.04
2012/2013 2.07% 2.07% 1.020775582 $426.75 $342.04
2013/2014 2.38% 2.38% 1.023809026 $436.91 $342.04
2014/2015 2.78% 2.78% 1.027873710 $449.09 $342.04
2015/2016 2.43% 2.43% 1.024362313 $460.03 $342.04
2016/2017 2.70% 2.70% 1.026950338 $472.43 $342.04
2017/2018 3.78% 3.78% 1.037888610 $490.32 $348.06
2018/2019 3.20% 3.20% 1.032 $506.01 $359.06
2019/2020 4.0% 4.0% 1.040 $526.25 $392.64
2020/2021 1.1% 2.0% 1.020 $538.78 $405.68
2021/2022 3.8% 2.0% 1.020 $549.56 $494.89
2022/2023 5.0% 5.0% 1.050 $577.04 $519.63
2023/2024 4.2% 4.2% 1.042 $601.28 $582.97
2024/2025 3.8% 3.8% 1.038 $624.13 $605.12
Page | 8
Pinole Valley LLAD
Engineer’s Report FY 2024-25
To impose a new assessment or an increased assessment in excess of the Maximum Assessment Rate for the current fiscal year, as provided by the preceding Assessment Range Formula, the City must comply with the provisions of the California Constitution, Article XIII D, Section 4c that requires a public hearing and certain protest procedures including mailed notice of a public hearing and property owner protestballoting. Property owners must approve the proposed new or increased assessment via a property owner protest ballot process before any such new or increased assessment can be imposed.
The definition of new or increased assessments includes any assessment which, 1) did not previously exist or, 2) exceeds a previously approved assessment amount or assessment range formula. Any assessment range formula must have been previously adopted by the agency and approved by the property owners.
ASSESSMENT METHODOLOGY
The benefit formula used to determine the financial obligation for each parcel is based on the improvements benefitting the parcels, as well as the use, or type, of each parcel as compared to other parcels that benefit from said improvements. One of the more common approaches to fairly distributing District costs to the benefitting parcels in maintenance districts such as this utilizes a methodology referred to as the Assessment Unit (“AU”) method of apportionment. This methodology utilizes various property characteristics such as development status, type of development (land-use) and size (units or acreage) to compare the proportional benefit of each property compared to similar properties benefitting from the improvements.
The District is comprised of one parcel type: commercial. Each commercial parcel receives similar benefit from the improvements due to the relative size of the properties, the specific improvements and proximity of the improvements to the properties. It has been determined that the buildable acreage of each parcel is an appropriate basis in calculating the total AU for that parcel. The individual commercial parcel, acreage is multiplied by a factor of 4.00 to determine the total AU for that parcel. The total Zone AU is then divided into the “Total Balance to Assessment” (as shown in Section III of this Report) to determine the annual assessment rate. The AU for each parcel is then multiplied by the annual assessment rate to determine the annual assessment for each parcel.
SECTION III – ZONE BUDGETS
The estimated budget for the annual maintenance and servicing of the improvements and the proportionate share of administration costs for each Zone have been prepared based on the estimated and recent historical costs of providing said maintenance and servicing.
Page | 9
Pinole Valley LLAD
Engineer’s Report FY 2024-25
ZONE A – PINOLE VALLEY ROAD NORTH FY 2024-25 BUDGET
DIRECT COSTS
ACCOUNT DESCRIPTION BUDGET
310-347-42101 PROFESSIONAL SERVICES $8,000
Contra Costa County Public Works Traffic Signal Maintenance Services
$6,000
Caltrans Traffic Signal Maintenance Services $2,000
310-347-42108 MAINTENANCE STRUCTURES / IMPROVEMENTS $8,000 Contra Costa County Public Works Traffic Signal Maintenance $4,000 Caltrans Traffic Signal Maintenance $2,000
Pacific Site Management $1,000
Labor, materials, and equipment for maintenance $1,000
310-347-43102 UTILITIES $7,000
Water - EBMUD $3,000
Electricity and Power $4,000
Pinole Valley Road – Traffic Control Lights – PG&E - $1,300 Street and Highway Lighting – PG&E- $2,700
CAPITAL REPLACEMENT ACCOUNT 1 $3,115
DIRECT COSTS- SUB TOTAL $26,115
INDIRECT COSTS
Legal Charges $1,100
County Administration Fees $150
Admin Debits (City Administration + Engineer’s Report) $2,000 INDIRECT COSTS- SUB TOTAL $3,250
TOTAL COSTS $29,365
TOTAL BALANCE TO ASSESSMENT $29,365
Total Assessable Units (AU)- 8 Parcels 52.796
2024/25 PROPOSED ASSESSMENT PER AU $556.20
2024/25 MAXIMUM ASSESSMENT PER AU $661.12
Page | 10
Pinole Valley LLAD
Engineer’s Report FY 2024-25
ZONE B – PINOLE VALLEY ROAD SOUTH FY 2024-25 BUDGET
DIRECT COSTS
ACCOUNT DESCRIPTION BUDGET
310-347-42101 PROFESSIONAL SERVICES $5,145
Contra Costa County Public Works Traffic Signal Maintenance Services
$4,000
Caltrans Traffic Signal Maintenance Services $1,145
310-347-42108 MAINTENANCE STRUCTURES / IMPROVEMENTS $11,100 Contra Costa County Public Works Traffic Signal Maintenance $3,500 Caltrans Traffic Signal Maintenance $2,500
Pacific Site Management $1,000
Labor, materials, and equipment for maintenance $4,100
310-347-43102 UTILITIES $8,000
Water - EBMUD $3,000
Electricity and Power $5,000
Pinole Valley Road Median Irrigation - PG&E- $300
Street and Highway Lighting – PG&E- $4,700
CAPITAL REPLACEMENT ACCOUNT 1 $2,700
DIRECT COSTS- SUB TOTAL $26,945
INDIRECT COSTS
Legal Charges $1,100
County Administration Fees $150
Admin Debits (City Administration + Engineer’s Report) $2,000 INDIRECT COSTS- SUB TOTAL $3,250
TOTAL COSTS $30,195
TOTAL BALANCE TO ASSESSMENT $30,195
Total Assessable Units (AU)- 10 Parcels 49.90
2024/25 PROPOSED ASSESSMENT PER AU $605.12
2024/25 MAXIMUM ASSESSMENT PER AU $624.13
Page | 11
Pinole Valley LLAD
Engineer’s Report FY 2024-25
1 Capital Replacement Account (CRA) – This line item, shown on the budget page for each Zone, is specifically intended for the use in replacing the lighting poles for streetlights and traffic signals within the District. There are two reasons to consider the replacement of lighting poles. First, there is a finite life span of a standard lighting pole, which is approximately 50 years. Secondly, there must be a contingency plan in place for the possibility that a lighting pole gets damaged or knocked down, either by way of accident or by natural disaster. The current replacement cost of a lighting pole is estimated at $12,700.00 for materials and $3,300.00 for installation.
The estimated cost to replace all streetlight poles after 50 years, as well as a contingency to account for the possibility of a knockdown, accident, or natural disaster is shown below:
Zone Cost per
Pole
Number
of Poles
Estimated Life
Span (Years)
Knockdown
Contingency
($50 per pole)
Estimated
Annual
Cost
A $16,000.00 10 50 $500 $3,900.00*
B $16,000.00 12 50 $600 $4,700.00*
$16,000.00 per light pole x 22 poles = $352,000 / 50 years = $7040 + $1,560 for Contingency = $8,600 annually. * Rounded to the nearest $100’s.
The replacement cost of a lighting pole was increased from $15,000 to $16,000. This estimate is based on the amount paid for the most recent streetlight pole replacement quotes obtained in FY 2022-23. The costs will continue to be collected through the assessment amounts as part of the Capital Replacement Fund, as shown in the District Budgets.
DESCRIPTION OF BUDGET ITEMS
➢ Building-Structure-Maintenance – Includes all regularly scheduled labor, material, and equipment required to properly maintain the landscaping improvements, traffic signals, streetlights, poles, and irrigation system. Also includes the cost of:
o Traffic signal maintenance which is provided by California Department of Transportation (Caltrans) and Contra Costa County Public Works. o Landscaping maintenance services provided by Pacific Site Management. o Replacement bulbs for traffic signals and streetlights. o Weed control and graffiti abatement within the District. ➢ Water – Includes the cost of furnishing water required for the proper maintenance of the landscaping.
➢ Electricity and Power – Includes the cost of furnishing electrical energy required for the proper operation of traffic signals, streetlights, and irrigation system.
Page | 12
Pinole Valley LLAD
Engineer’s Report FY 2024-25
➢ Legal Charges – Includes the cost of legal services to review reports, resolutions, and public hearing requirements for imposing the LLAD Assessment. ➢ County Administration Fees – Includes the County costs related to placement of the annual assessment charges onto the tax roll and the generation of the annual tax bills related thereto. Contra Costa County charges a Levy Code Fee of $250 per district, $0.76 Collection Fee per parcel, and $0.09 Assessor User Code Fee per parcel. Each Zone is charged $125 plus $0.85 per parcel. ➢ Admin Debits – Includes the cost of all particular departments and staff of the City for providing coordination of annual District administration process, operation, and maintenance of the improvements and responding to public concerns. This line item also includes the cost of preparing the Engineer’s report for the administration of the District and transmitting assessment amounts to the County for the inclusion on the tax roll.
ACCOUNT BALANCES
DISTRICT FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 Fund balance
on July 1st $24,203.51 $30,613.24 $32,187.78 $35,952.50 $43,109.86 Revenue $41,854.22 $39,746.28 $57,364.10 $49,767.90 $52,256.16 Expenditures $35,444.29 $38,171.74 $53,599.38 $42,610.54 $46,683.86 Revenue
over/under
expenses
$6,409.73 $1,574.54 $3,764.72 $7157.36 $5,572.30
Fund balance
on June 30th $30,613.24 $32,187.78 $35,952.50 $43,109.86 $48,682.16 Based on the historical data in the table above, the average expenditures for the District are $40,089.59. The 1972 Act allows the District assessments to”…include a reserve which shall not exceed the estimated costs of maintenance and servicing to December 10 of the fiscal year, or whenever the city expects to receive its apportionment of special assessments and tax collections from the county, whichever is later.” The Reserve Fund will be considered fully funded when the account balance reaches an amount equal to approximately 50% of the annual District costs.
CRA allocations were based on the percentage of poles in each Zone; approximately
45.5% of the poles in the District are in Zone A, and approximately 54.5% are in Zone B.
The methodology noted above will be applied each fiscal year to allocate appropriate amounts to the Reserve Fund and CRA.
If a lighting pole is damaged or knocked down by an accident, attempts are made to recover the replacement cost through the responsible party. The recovered funds are placed in the CRA for the Zone where the knockdown reoccurred. A summary of the Capital Replacement Reserve account for each Zone is shown in the table below.
Page | 13
Pinole Valley LLAD
Engineer’s Report FY 2024-25
Zone Capital
Replacement
account
balance as of
07/01/2023
FY 2023-24
Contribution
to Capital
Replacement
account
Estimated
lighting
pole
recovery
costs for
FY 2023-24
Estimated
lighting pole
repair and
replacement
costs in FY
2023-24
Estimated
ending Capital
Replacement
account
balance on
06/30/2023.
A $9,367.40 $3,900.00 - - $13,267.40
B $2,527.72 $4,700.00 - - $7227.72
*Includes the purchase of a surplus pole for future knockdowns SECTION IV – ASSESSMENT ROLL
Parcel Identification for each lot or parcel within the District shall be based on available parcel maps and other property data from the Contra Costa County Assessor’s office as they existed at the time this Report was prepared and adopted by the City Council.
A listing of parcels assessed within the District for Fiscal Year 2023/2024, along with the corresponding assessment amounts, is included on the following pages. If any parcel submitted for collection is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, a corrected parcel number and/or new parcel numbers will be identified and resubmitted to the County Auditor/Controller. The assessment amount to be levied and collected for the resubmitted parcel(s) shall be based on the method of apportionment and assessment rate approved in this Report.
Therefore, if a single parcel has changed to multiple parcels, the assessment amounts applied to each of the new parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment.
Non-assessable lots or parcels include areas of public streets and other roadways (typically not assigned an APN by the County); dedicated public easements, open space areas and rights-of-way, including public greenbelts and parkways; utility rights-of-way; common areas; landlocked parcels; small parcels vacated by the County, bifurcated lots and any other property that cannot be developed or has specific development restrictions.
These types of parcels are considered to receive little or no benefit from the improvements and are therefore, exempted from assessment.
Page | 14
Pinole Valley LLAD
Engineer’s Report FY 2024-25
Zone
APN
Parcel
Acreage
Parcel
Type
Parcel
AU
2024/2025
Assessment
per AU
2024/2025
Assessment
Applied
Assessment
A 401-211-030 3.62 COM 14.48 $556.20 $8,053.78 $8,053.78 A 401-211-031 1.27 COM 5.08 $556.20 $2,825.50 $2,825.50 A 401-211-032 0.42 COM 1.68 $556.20 $934.42 $934.42
A 401-211-033 0.6 CMV 2.40 $556.20 $1,334.88 $1,334.88
A 401-211-035 0.573 COM 2.292 $556.20 $1,274.81 $1,274.80 A 401-410-005 2.23 COM 8.92 $556.20 $4,961.30 $4,961.30 A 401-410-019 2.006 COM 8.024 $556.20 $4,462.95 $4,462.96 A 401-410-020 2.48 COM 9.92 $556.20 $5,517.50 $5,517.50
13.199 52.796 $29,365.14 $29,365.14
B 360-010-028 0.344 COM 1.376 $605.12 $832.65 $832.66
B 360-010-029 1.738 COM 6.952 $605.12 $4,206.79 $4,206.80 B 360-010-030 0.53 COM 2.12 $605.12 $1,282.85 $1,282.86 B 360-010-031 0.63 COM 2.52 $605.12 $1,524.90 $1,524.90 B 360-010-033 0.43 COM 1.72 $605.12 $1,040.81 $1,040.80 B 360-150-043 1.24 COM 4.96 $605.12 $3,001.40 $3,001.40 B 360-150-044 0.48 COM 1.92 $605.12 $1,161.83 $1,161.82 B 401-310-021 5.683 COM 22.732 $605.12 $13,755.59 $13,755.60 B 401-310-022 0.46 COM 1.84 $605.12 $1,113.42 $1,113.42 B 430-330-027 0.94 COM 3.76 $605.12 $2,275.25 $2,275.24
12.475 49.900 $30,195.49 $30,195.50
Totals: 25.674 102.696 $59,560.63 $59,560.64
Parcel Type: “COM” is a developed commercial property
“CMV” is an undeveloped commercial property.
Zone A – APN 401-410-017 was merged from three former parcels (APN’s 401-410-014, 401- 410-015 & 401-410-016) and became active and assessable for Fiscal Year 2011/2012. APN 401-211-34 was annexed into the District for the 2013/2014 year. APN 401-410-017 was split into 401-410-019 and 020 for Fiscal Year 2018/2019.
Zone B – APN’s 401-310-010 and 401-310-013 were merged into APN 401-310-019. This parcel became active and assessable for Fiscal Year 2011/2012. APN’s 401-310-002; 003; 012; 017; 018 & 019 were merged into APN 401-310-021 for Fiscal Year 2013/2014. APN 401-310- Page | 15
Pinole Valley LLAD
Engineer’s Report FY 2024-25
018 became parcel 022 for Fiscal Year 2013/2014. APN 430-330-022 merged into APN 401-310- 021 for Fiscal Year 2014/2015.
SECTION V – DISTRICT DIAGRAM
The following page(s) show the Assessment Diagrams for The Pinole Valley Road Landscape and Lighting Assessment District. The lines and dimensions shown on maps of the Contra Costa County Assessor for the current year are incorporated by reference herein and made part of this Report.
Page | 16
- -
Pinole Valley LLAD
Engineer's Report FY 2024·25
REVISED ASSESSMENT DIAGRAM
PINOLE VALLEY ROAD LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT ZONE A
CITY OF PINOLE
COUNTY OF CONTRA COSTA
/
STATE OF CALIFORNIA
FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY OF PINOLE, THIS DAY OF , 20_.
CITY CLERK
CITY OF PINOLE
CONTRA COSTA COUNTY, CALIFORNIA
IHEREBYCERTIFYTHATTHEWITHINMAPSHOWINGTHEREVISEDASSESSMENTDIAGRAMFORTHEPINOLE
VALLEY ROAD LANDSCAPE AND LIGHTING ASSESSMENT DISTRICT,CITY OFPINOLE,COUNTY OF CONTRA
COSTA, STATE OF CALIFORNIA, WAS APPROVED BY THE CITY COUNCIL OF THE CITY OF PINOLE
ATAREGULAR MEETING THEREOF,HELDONTHE
RESOLUTION NO.
DAY OF , 20 , BY ITS
-
CITY CLERK
CITY OF PINOLE
CONTRA COSTA COUNTY, CALIFORNIA
FILEDTHIS DAY OF -- -•20 .ATTHEHOUR OF O'CLOCK M.,
IN BOOK AT PAGE -OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS IN
THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA
COUNTY RECORDER
COUNTY OF CONTRA COSTA
NOTE: FOR ADETAILED DESCRIPTION OF THELINES AND DIMENSIONS OFEACH PARCEL WITHIN THEDISTRICT,REFERTOTHE2006COUNTYOFCONTRACOSTAASSESSOR'S MAPS. \
/
/
\
ASSESSMENT ID
l
100 50 0 100
SCALE: 1 " =1 00 '
GRAPHI C SCALE
LEGEND
CD
EXISTING ZONE A BOUNDARY
PARCEL LINES
ASSESSMENT NO.
SPECIAL DISTRICT SERVICES
P.O. Box 89 27 27
Temec ula, CA 9 25 8 9
( 8 77 ) 688 - 6 99 9
ESS!o
"'\J \E\R f V
s
u
o
.
:
.
:
J
: c;, Ex p: 6/30 / 14 c..r,::o
= NO. C6961 2 =...,.-,
,..,...,
i<
1r-CIV\\.§
*
'cOF CA\_\\'$-'
CD \
'
Assessment Number APN ZONE
1 401-410-005 A
2 401-410-017 A
3 401-211-030 A
4 401-211-031 A
5 401-211-032 A
6 401-211-033 A
7 401-211-034 A
Page | 17
ST
Pinole Valley LLAD
Engineer's Report FY 2024-25
ASSESSMENT DIAGRAM
PINOLE VALLEY LANDSCAPE AND LIGHTING ASSESSMENT DISTIRCT ZONE B
CITY OF PINOLE
TY OF CONTRA COST A
ATE OF CALIFORNIA
SHEET 2 OF 2
ASSESSMENT ID
Assessment
Number APN ZONE
9 360-150-043 B
10 360-150-044 B
11 360-010-028 B
12 .)60-010-029 l:j
13 360-010-030 B
14 .)60-u1Q-u.>1 B
15 360-010-033 B
16 401 ·310 '" ,, B
17 401-310-003 B
18 401-310-010 B
19 401-.)10-012 B
20 401-.)10-013 B
21 401-.)10-017 B
22 401-.)10-018 B
23 430-330-022 B
24 430-3.)0-027 B
200 100 0 200 L...J--1 I
J.fGE!m
NHXAllllBOU!IIAIIY
PARCE. UNES
SCAL£a r • ZOO"
flllU'flll:sc.tU
@ -Ill.
Page | 18
CITY COUNCIL
REPORT 9.H.
DATE: JULY 16, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: SANJAY MISHRA, PUBLIC WORKS DIRECTOR
ERIC CASHER, CITY ATTORNEY
SUBJECT: SECOND READING AND ADOPTION OF EV CHARGING STATION
ORDINANCE
RECOMMENDATION
Staff recommends the City Council waive the second reading of an Ordinance adding Chapter
10.80, EV charging stations, to the Pinole Municipal Code establishing restrictions for cityowned EV parking spaces and a schedule of rates for EV charging stations
BACKGROUND
The City of Pinole provides a dual port EV charging station in the Public Safety Building parking lot at 808 Tennent Ave. The charging station has been offered free of charge to users as part of our commitment to promoting sustainable transportation options and reducing greenhouse gas emissions in the City of Pinole. As the adoption of electric vehicles continues to grow, it is imperative that we establish a sustainable framework to support the infrastructure necessary for their operation to ensure the chargers are available to residents in a fair and equitable manner.
On June 4, 2024, the City Council held a public hearing to conduct a first reading of an electric vehicle charging station ordinance. After after discussion and feedback from the community, the City Council directed staff to consider amendments to address public feedback and City Council concerns. The City Attorney subsequently reviewed and revised the ordinance, submitting it to the Municipal Code subcommittee on June 10, 2024 for review and consideration. The revised ordinance, with proposed changes highlighted, reflects changes from the original draft. Because the proposed changes were material, the presentation on July 2nd, 2024 was considered as the first reading of the proposed ordinance.
REVIEW AND ANALYSIS
The adoption of electric vehicles represents a significant opportunity to reduce our dependence on fossil fuels and mitigate the impacts of climate change. By implementing fees for EV chargers, we can ensure the sustainability and effectiveness of our charging infrastructure while continuing to support the transition towards cleaner transportation alternatives.
At its regularly scheduled meeting on May 21, 2024, the City Council received a presentation and staff report to introduce and conduct a first reading of an ordinance adding chapter 10.80,
EV charging stations, to the Pinole Municipal Code to establish restrictions for city-owned EV parking spaces and to establish a schedule of rates for EV charging stations. The City Council voted unanimously in favor of conducting the first reading of the proposed ordinance attached as Attachment A with direction on a few proposed edits. The proposed changes are reflected as track changes in the attached ordinance and include eliminating the window of time for imposition of an overstay fee, and clarification the charging fees can be adjusted to account for changes in PG&E rates.
Adopting an ordinance for EV charging fees will enable the City of Pinole to manage and optimize the use of EV charging infrastructure, support the transition to sustainable transportation, and achieve various economic, environmental, and social objectives.
The proposed fee structure will be communicated to the public through various channels, including the City's website, social media platforms, and signage at charging stations. Users will be able to pay for charging sessions either through a mobile app, or by credit/debit card, providing convenience and accessibility. If approved on second reading today, the ordinance will go into effect in thirty (30) days.
FISCAL IMPACT
Adoption of this ordinance will help the City generate revenue to offset the costs of maintaining the EV charging infrastructure, thus making this infrastructure expansion financially sustainable.
ATTACHMENTS
A. Revised Electric Vehicle Charging Station Ordinance
AN ORDINANCE OF THE CITY OF PINOLE ADDING CHAPTER 10.80, EV
CHARGING STATIONS, TO THE PINOLE MUNICIPAL CODE TO ESTABLISH
RESTRICTIONS FOR CITY-OWNED ELECTRIC VEHICLE PARKING SPACES, TO
ESTABLISH A SCHEDULE OF RATES FOR ELECTRIC VEHICLE CHARGING
STATIONS, AND TO AUTHORIZE THE CITY MANAGER TO ADJUST THE RATES TO RECOVER CITY’S COST
WHEREAS, the City of Pinole has installed an electric vehicle (EV) charging station at a Cityowned parking lot, and will be installing more charging stations in the future; and WHEREAS, as more residents switch from internal combustion engine vehicles to electric vehicles, the demand for these EV charging stations will only grow; and WHEREAS, to ensure that EV charging stations are used in a fair and equitable manner, the City Council desires adding language to the Pinole Municipal Code to establish regulations and limitations on the occupancy of an EV charging station; and WHEREAS, the proposed ordinance would also establish rates for vehicles using the City’s EV charging stations, and authorize the City Manager to increase those rates in a specified manner; and
WHEREAS, the proposed ordinance will facilitate the use of the City’s EV charging stations by a larger number of residents.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PINOLE, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Findings The City Council of the City of Pinole finds that all of the above Recitals are true and correct and incorporated herein by this reference.
SECTION 2. Municipal Code Amendment. Chapter 10.80, EV Charing Stations, is hereby added to the Pinole Municipal Code to read as follows:
10.80 EV Charging Stations.
10.80.010 City-Owned Electric Vehicle (EV) Charging Stations.
A. Designation of Parking Spaces. The Public Works Director, or their designee, is authorized in accordance with the purposes of this chapter to designate spaces in off-street public parking facilities for the exclusive parking of electric vehicles that are connected to electric vehicle charging stations for the purpose of transfer of electricity to the battery or other energy storage device of an electric vehicle.
B. Signs or Markings. Upon designation of a parking space or spaces for the exclusive use of electric vehicles pursuant to Subsection A of this section, the Public Works Director hall place signs or markings giving adequate notice that the parking space or spaces are restricted and to be
used only for such electric vehicles. The signs or markings shall be in compliance with California Vehicle Code § 22511 indicating that vehicles left standing in violation of the restriction may be removed. The parking restriction shall not apply to the designated parking spaces until the sign or markings have been placed.
C. In parking stalls designated by the use of markings and/or posting as electric vehicle charging stations, only electric vehicles are allowed to park for charging events during designated hours.
D. It is unlawful for the operator of any vehicle to allow a vehicle to park or stand in a designated electric vehicle charging station longer than the posted time limit.
E. It is unlawful for the operator of an electric vehicle to allow that vehicle to park or stand in a designated electric vehicle charging station unless the vehicle is actively conducting a charging event.
F. The police department is authorized to cite and/or remove or cause the removal of vehicles parked in violation of this section in accordance with California Vehicle Code § 22511.
G. Fees for use of electric vehicle charging stations at electric vehicle parking spaces owned by the City of Pinole shall be as follows:
1. Baseline energy fee of $0.35 per kilowatt-hour, effective from 12:00 a.m. to 3:00 p.m. and from 9:00 p.m. to 12:00 a.m. everyday.
2. Time-of-Use energy fee of $0.40 per kilowatt-hour, effective from 3: 00p.m.to 9:00 p.m. everyday.
3. Ancillary fee of $1.50 per charging session.
4. Overstay fee of $1.00 per minute up to 30 minutes, charged after 4 hours and 15 minutes of charging from 5:00 a.m. to 10:00 p.m. every day, or as set forth in the City’s Master Fee Schedule.
5. The City Manager may adjust the energy fees by increments no smaller than one cent ($0.01) no more than once per fiscal year or in accordance with any PG&E rate increases.
6. The maximum allowable annual percentage increase in energy fees shall not exceed the annual percentage increase in PG&E’s average electric rate, published in Table 1.8 of the California Public Utility Commission’s most current Assembly Bill 67 Annual Report on electric and gas utility costs.
7. Adjustments to the energy fees associated with the use of electric vehicle charging stations shall be posted to the City’s website no later than 30 days prior to the adjustment.
8. Energy fees may be adjusted no more than once per fiscal year.
SECTION 3. CEQA. This ordinance is exempt from further environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3), the commonsense exemption that CEQA applies only to projects that have the potential for causing a significant effect on the environment, and Section 15273(a), the exception for the establishment of rates, tolls, fares, and charged.
SECTION 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, the provisions of this Ordinance are severable. The City Council of the City of Pinole hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.
SECTION 5. Effective Date. This ordinance shall take effect thirty (30) days after its final adoption.
SECTION 6. Publication. The City Clerk is directed to cause this ordinance to be published in a manner required by law.
PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 16th day of July, 2024 by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
Maureen Toms, Mayor
ATTEST:
Heather Bell, City Clerk
APPROVED AS TO FORM:
______________________________
Eric S. Casher, City Attorney
CITY COUNCIL
REPORT 10.A.
DATE: JULY 16, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: SANJAY MISHRA, PUBLIC WORKS DIRECTOR
SUBJECT: REVIEW AND ADOPT SEWER RATES FOR 2024/25-2028/29
RECOMMENDATION
It is recommended that the City Council:
1. Conduct a public hearing concerning the proposed Sewer Rates for FY 2024/25 through 2028/29 and consider protest votes; and
2. Adopt a resolution accepting the Engineer’s Report and approving the Sewer Rates for FY 2024/25 through 2028/29.
BACKGROUND
On July 17, 2018, the City Council adopted a five-year rate structure for sewer user fees. At that time, Willdan Financial prepared an analysis of the sewer rates. The primary need to analyze rates was to address a means to fund required improvements to the Pinole Hercules Water Pollution Control Plant. The rate structure included a 4.6% increase for the first year and a 3% annual rate increase for the subsequent 4 years. The sewer rates are required to be reviewed every 3 to 5 years.The primary need to analyze rates was to address means to fund required improvements to the sewer collection system as recommended by the Sanitary Sewer Master Plan (SSMP) adopted by council.
In 2024 the City selected Willdan Financial to develop an updated sewer rate model and make recommendations for sewer rates for the next five fiscal years. Willdan Financial has prepared the attached draft Sewer Rate Study Report. The principal reason for the rate increase is to provide adequate revenue for upgrades to Pinole’s aging sewer collection infrastructure and to address inflow/infiltration (I&I) to the Pinole-Hercules Water Pollution Control Plant.
On July 2, 2024, staff held a workshop in response to a request from the council and residents to address a range of questions and listen to concerns from rate payers. During the workshop, staff utilized visuals to illustrate how sewer rate increases correlate with investments in capital projects. Staff also confirmed that, thus far, the council and city administration have not pursued any grants or loans for these capital projects. However, the City council may decide to explore the option of using a grant or loan for sewer capital projects in the future.
The increase will result in a change to single family units, multifamily units, and non-residential users.
REVIEW AND ANALYSIS
The sewer rate model prepared by Willdan Financial addresses the following:
1. Operating and maintenance costs associated with the Pinole-Hercules Water Pollution Control Plant,
2. The operating and maintenance costs associated with the collection system serving Pinole,
3. Debt service for Pinole’s portion of prior improvements, half of the cost of the state mandated upgrades to the Pinole-Hercules Water Pollution Control Plant funded by an SRF Loan from the State Water Resources Control Board,
4. Capital improvements to the City of Pinole's sewer collection system to reduce inflow and infiltration and maintain adequate reserves for operations and capital projects are recommended in the SSMP.
The proposed sewer rates are shown in the following table. A detailed explanation of the proposed sewer rates is in the attached draft Sewer Rate Study Report.
Willdan Financial has provided ongoing service to the City of Pinole annually to help the City determine and collect the sewer fees through the County Assessor. The City and Willdan have encountered on an annual basis a challenge that results in increased efforts to calculate the fees for commercial users who pay for service based on water usage. This sewer rate model includes a change in the technique used to determine the charges to commercial accounts.
Willdan Financial addresses this change further within the draft Engineer’s Report. The new technique streamlines the calculations and reduces the opportunities to make errors.
Residential users of the system will continue to pay a flat rate for sewer collection and treatment services.
In accordance with the requirements of the Government Code, Proposition 218, there will be a public hearing set for July 16, 2024. This will provide another opportunity to present the sewer rate study analysis and recommendations.
In accordance with the requirements of the Government Code, Proposition 218, the City is required to notify all affected parcels of the proposed increase in the sewer rates and provide an explanation to show why the rates need to be increased. Following the action taken by Council on May 21, 2024, a notice was prepared and mailed to all affected parcels. To meet the schedule set by the County Assessor, the notice was sent before May 31, 2024. As of July 7th, 2024 City clerk's office has received 113 protest letters from residents and continues to receive further protest letters. Staff will provide the total count of protest letters during the council meeting.
FISCAL IMPACT
The sewer rates are necessary for the operation of the Pinole-Hercules Water Pollution Control Plant and collection system. Without an adequate rate structure, operations at the Pinole Hercules Water Pollution Control Plant will be negatively affected. Additionally, without adequate revenue, infill and infiltration projects would need to be deferred. Adequate revenue is also necessary to maintain permit-compliant operations.
The City has taken several important steps to minimize the fiscal impact on sewer rate payers.
They include authorizing a 30-year pay back schedule in lieu of 20 years for the SRF Loan, and refunding the prior bond debt service resulting in a reduction in annual payments.
Additionally, the change in the technique used to determine the charges for commercial accounts recommended in the draft Engineer’s Report will save time on an annual basis when the assessment is determined.
ATTACHMENTS
A. Pinole Sewer Rate Study-2024
City of Pinole, CA
Comprehensive Sewer Rate Study
Report
i Sewer Rate Study – Draft Report
May 8, 2024
TABLE OF CONTENTS
TABLE OF CONTENTS ............................................................................................................................... i Section 1 – Executive Summary...........................................................................................................1
1.1 Introduction.........................................................................................................................................1
1.2 Overview of the Rate Study Process............................................................................................2
1.3 Summary of Proposed Rates..........................................................................................................3 Section 2 – Revenue Sufficiency Analysis ..........................................................................................5
2.1 Financial Planning Principles..........................................................................................................5
2.2 Existing Rates.......................................................................................................................................5
2.3 Revenue Sufficiency Process .........................................................................................................6
2.3.1 Budget..........................................................................................................................................7
2.3.2 Capital Improvement Plan (CIP) ..........................................................................................7
2.3.3 Debt Service ...............................................................................................................................8
2.3.4 Gross and Net Revenue Requirement ................................................................................9
2.4 Customer Data.................................................................................................................................10
2.4.1 Customer Billing Analysis........................................................................................................10
2.5 Financial Projections Under Existing Rates................................................................................10 Section 3 – Cost-of-Service (COS) Analysis .....................................................................................12
3.1 General ..............................................................................................................................................12
3.2 Sewer Cost-of-Service....................................................................................................................12
3.2.1 Functional Unbundling of Revenue Requirements........................................................12
3.2.2 Classification of Revenue Requirements..........................................................................13
3.2.3 Allocation to Customer Classes and Unit Cost Development....................................14
3.2.4 Rate Design by Unit Cost.......................................................................................................16
3.2.5 COS and Revenue Check....................................................................................................18 Section 4 – Proposed Test Year Rates ...............................................................................................19
4.1 General ..............................................................................................................................................19
4.2 Rate Comparison with Other Utilities .........................................................................................20 Section 5 – Projected Operating Results ..........................................................................................22
ii Sewer Rate Study – Draft Report
May 8, 2024
5.1 General ..............................................................................................................................................22
5.2 Projected User Rate Revenues....................................................................................................22
5.3 Debt Service Coverage ................................................................................................................24
5.4 Summary of Projected Operating Results ................................................................................25 Section 6 – Conclusions and Recommendations ............................................................................27
6.1 Disclaimers...............................................................................................................................................27
6.1.1 General Disclaimer .................................................................................................................27
6.1.2 Municipal Advisory Disclaimer.............................................................................................27
6.2 Conclusions.......................................................................................................................................28
6.3 Recommendations.........................................................................................................................29
1 | P a g e
Section 1 – Executive Summary
1.1 Introduction
Willdan Financial Services (Willdan) is pleased to submit to the City of Pinole (the “City”) the following Sewer Rate Study report (the “Report”) for your consideration. Willdan has completed this study of the City’s sewer rates, which are submitted annually to Contra Costa County for placement each year on the Secured Property Tax Roll. The results of the investigations, analyses, and conclusions from this study are summarized in this Report.
The City currently provides wastewater treatment and collection services to its customers.
The Pinole-Hercules Water Pollution Control Plant was originally built in 1955 as a primary wastewater treatment facility and has had two major expansions and several modifications over the years to meet the needs of both cities’ growing populations. The City’s wastewater system currently serves a combined population of approximately 40,000, with an average daily flow of 3.5 million gallons. Only those customers who are served by the Pinole-Hercules Water Pollution Control Plant are considered as part of this analysis.
The City provides service to portions of Hercules under a Joint Powers agreement. Hercules pays for those services directly as a wholesale purchaser on behalf of its retail customers. The City invoices Hercules for the treatment services provided and the capital projects that take place at the wastewater treatment facility. The costs incurred by the City for managing its collection system are accounted for separately and such costs are not passed on to Hercules since Hercules maintains its own wastewater collection system.
The City has focused a significant amount of attention and effort on strategic and master planning measures in all areas of sewer utility operations to ensure that it is able to provide uninterrupted service to its customers, and so that it remains prepared for the future. As part of its ongoing planning efforts, the City commissioned Willdan to perform a sewer rate study to analyze the revenue sources and expenditures of the sewer utility system, develop a fiveyear financial analysis, and provide recommendations for proposed rate and/or rate structure adjustments to meet the financial and administrative goals and objectives of the City. The primary objectives of the rate study include:
➢ Full recovery of costs related to utility operations (i.e., operating and maintenance costs, debt, and other expenditure requirements);
➢ Development of cost-based rate structures;
➢ Maintaining consistency with Water Environment Federation (“WEF”) guidelines; ➢ Providing for equity among customer classes;
➢ Meeting substantive and procedural Proposition 218 requirements; ➢ Maximizing administrative efficiency (i.e., easy to understand and implement); and ➢ Incorporation into the analysis of a 5-Year capital funding plan.
2 | P a g e
1.2 Overview of the Rate Study Process
This study includes the development and presentation of a pro forma sewer financial plan for a 5-year planning period, as well as the development of cost-based rates through a costof-service and rate design analysis. Utility rates must be set at a level such that operating, maintenance, debt, and capital expenses are funded with the revenues received from customers. In addition, the revenues generated from utility rates must only be used for this purpose and for the sewer system only. This is a significant point, as failure to achieve the needed revenues can lead to unacceptable service levels and inadequately maintained facilities. Therefore, a rate study typically consists of the following three interrelated analyses:
I. Financial Planning/Revenue Requirement Analysis: Creates a five-year plan to support an orderly, efficient program of on-going maintenance and operating costs, capital improvement and replacement activities, debt financing, and retirement of outstanding debt. In addition, the plan should fund and maintain appropriate reserve balances based on industry standards, as well as the City’s fiscal policies and specific needs.
II. Cost-of-Service Analysis: Identifies and apportions annual revenue requirements (i.e., expenditures) to operational and functional cost components based on the demand placed on the sewer utility system. The purpose of this analysis is to develop rates that generate revenues relatively proportionate to the share of the utility’s costs. This objective is consistent with industry standards as well as the requirements of Proposition 218.
III. Rate Design: Develops an equitable and proportionate schedule of rates for the City’s customer base. The policy objectives are coordinated with Proposition 218 (Prop 218) requirements and cost-of-service objectives to achieve a balance between customer equity and financial stability goals.
3 | P a g e
This rate study utilizes generally accepted rate-making principles and standards established by industry experts such as the WEF in its “Financing and Charges for Sewer Systems, Manual of Practice No. 27”. The principles established by WEF are used as guidelines in the development of the proposed sewer rates. A discussion of some of the key principles of ratemaking is presented in the following subsection of this Report.
1.3 Summary of Proposed Rates
The rate study methodology applied in the development of updated sewer rates, outlined in this Report, consisted of reviewing the historical operating results of the sewer utility system, analyzing the budget to identify the net revenue requirements to be recovered from user rate revenues, performing general cost-of-service allocations based on the rate components and functional cost categories, and revising the rates based on the applicable costs and expenditures to be recovered from user rates. In addition, an analysis of the system’s customers was performed to identify the rate determinants since they drive the recommended rates, which are the primary source for generating revenues. The allocated revenue requirements were utilized in conjunction with the rate determinants and rate structure to develop the proposed sewer rates.
The findings and conclusions of the rate analysis, as well as the resulting revised rate recommendations, were utilized to develop a projection of future operating results for a 5- year planning period from Fiscal Year (FY) 2025 (beginning July 1, 2024) through FY 2029 (ending June 30, 2029), herein referred to as the “Projection Period”. The purpose for developing the 5-year projections is to demonstrate the financial capability of the sewer revenues to support system operations and maintenance, and fund planned capital improvements. The analyses, findings and accompanying recommendations are presented in the subsequent sections of the Report.
Rate Design Analysis
Considers both the level and structure of the rate design to collect the appropiate and targeted level of revenues.
Cost of Service Analysis
Allocates the revenue requirements to the fixed/variable cost components based on cost of service.
Revenue Requirement Analysis
Compares the revenues to the expenses of the utility
to determine the overall rate adjustment required.
4 | P a g e
The sewer rate analysis described in the Report is performed based on the general guidelines of the defined objectives, as well as common industry standards for setting utility rates. In addition to focusing on these major objectives, the rate analyses performed herein may consider other factors in designing rates. As discussed in detail later in this Report, other rate considerations may generally include sensitivity to the impact of rate changes on existing customers, relative comparability with neighboring utilities, and variations or changes (if any) from the City’s existing rate structure. The proposed sewer rates for assumed implementation effective July 1, 2024 (or other such date as determined by the City) for FY 2024/25 (FY 2025, herein referred to as the “Test Year”) are provided in Table 1. It is anticipated that the charges, based on these rates, will be submitted to Contra Costa County for placement on Fiscal Year 2024/2025 Annual Secured Property Tax Bills, which are typically sent out to property owners in early fall each year. The existing rates are provided in Table 2.
Table 1 – Proposed Annual Sewer Rates
5 | P a g e
Section 2 – Revenue Sufficiency Analysis
2.1 Financial Planning Principles
While the individual rates for a utility system vary based on a variety of factors, rates should be consistent with common rate-making principles within the utility industry. The guiding principle is that rates designed for any utility should provide a reasonable balance between several key factors. In general, the utility rates should:
➢ Generate a stable revenue stream that, when combined with other sources of funds, is sufficient to meet the expenditure requirements and goals of the system; ➢ Be based upon the proportionate cost of providing the service and not exceed the cost of providing the service – in compliance with California Proposition 218; ➢ Be equitable – that is, they should generate revenue from customer classes in a manner which is reasonably in proportion to the cost of providing the service to that customer class;
➢ Be easy to understand by customers; and
➢ Be easy to administer by the utility.
Striking the appropriate balance between the principles of ratemaking is the result of a detailed process of evaluation of revenue requirements and cost-of-service, and how those translate into the rate design alternatives which meet legal requirements and the specific objectives of the utility under the circumstances in which it operates.
2.2 Existing Rates
As described in the Introduction to this report, The City has established sewer charges that are submitted annually to Contra Costa County for inclusion on the annual secured property tax roll. These charges are based on customer classification, and these rates charged for sewer service are approved by the City Council and are not subject to administrative review or approval by any other local or state agency. The City has historically adjusted rates, as necessary, to provide for recovery of financial obligations including operating expenses, debt service, capital expenditures and any other expenses and transfers.
The existing annual sewer rates consist of 1) a separate flat rate for single-family and multifamily customers that is applied per dwelling unit regardless of their usage, 2) meter-based fees for commercial/non-residential customers that designates the minimum amount they will pay by account, based on their respective meter size, regardless of usage, and 3) a commercial/non-residential volumetric rate component per 100 cubic feet of water usage that recovers the costs of treatment and disposal of wastewater. Water meter and usage data is provided by East Bay Municipal Utility District. The existing rates for sewer service are provided in Table 2.
6 | P a g e
Table 2 – Existing Annual Sewer Rates
2.3 Revenue Sufficiency Process
In evaluating whether the existing rates will generate sufficient revenue to meet the expenditure requirements of the sewer system, the annual expenditures required for the sewer utility system (herein referred to as the “Revenue Requirements”) must be developed.
The Revenue Sufficiency Analysis compares the forecasted revenues for the sewer utility system under existing rates (including customer growth) to the projected Revenue Requirements.
7 | P a g e
2.3.1 Budget
The revenue sufficiency analysis performed as part of this study and summarized in this report utilizes the City’s adopted budget for FY 2024/25 (the “Budget” for FY ending June 30, 2025) as one source of data and information to determine the gross Revenue Requirements to be recovered from user rates over the Projection Period. The Budget, as prepared by the City, is provided on a line-item basis, and is used for projecting the budgeted financial needs for the Test Year and the remainder of the Projection Period. In developing the rate analysis, certain adjustments are made such that the expenditures are categorized into either Operating and Maintenance (O&M) expenses or non-operating expenses. In addition, only recurring costs included in the current Budget were included as part of the revenue requirement analysis. One-time costs were identified and evaluated in discussions with City Staff and removed if appropriate. Recurring annual costs were escalated using suitable cost indexes or cost escalation factors, again in discussion with City Staff and based on historical trends.
The O&M expenses are primarily those ongoing costs for labor, materials, supplies, services, etc., required to manage and operate the utility system on a day-to-day basis while maintaining a dependable level of service. The O&M requirements are generally a function of a budgetary process and are directly related to the level of service provided to customers of the utility system. The non-operating expenses include such items as capital outlay and any other expenses & transfers.
The Budget also identifies estimated revenues to be derived from sources other than sewer user rates. Such other revenue sources include interest earnings on investments, and reimbursement from the City of Hercules for its share of operating and capital project costs related to the shared wastewater treatment plant that the City of Pinole incurs on their behalf. If there are revenues generated from the other sources, those revenues are applied to the gross Revenue Requirements to reduce the amount of revenue required from user rates. The result is the net Revenue Requirement.
2.3.2 Capital Improvement Plan (CIP)
The City provided a list of anticipated capital projects to be undertaken over the Projection Period that will be paid from sewer service charge (rate) revenue, which are also included in the development of the gross Revenue Requirements. The capital projects provided by and identified by the City in the CIP are required in order to maintain and continue uninterrupted service to customers by investing in improvements, repairs, or replacements of aging system components as they wear over time. The City provided cost estimates for the identified capital projects by the fiscal year in which they are estimated to be undertaken.
The funding for these capital projects was then used in the analysis, along with O&M and non-operating expenses, to determine the gross revenue requirements for the sewer system.
The capital projects included in the CIP, along with their assumed funding sources, for the Projection Period are provided in Table 3.
8 | P a g e
Table 3 – Sewer CIP ($1,000s)
2.3.3 Debt Service
The City currently has two outstanding debt issues for the sewer system. A minimum debt service coverage ratio of 1.25 times is required to be maintained on an annual basis, based on the City’s current bond covenants associated with the existing debt. In simple terms, this means that the utility must have at least $1.25 in net operating revenues for every $1.00 of debt service they are committed to pay on existing debt. The debt service coverage is calculated by dividing net operating revenues (revenues less operations and maintenance expenses) by annual debt service. There are no future or additional debt issuances assumed to take place over the Projection Period outside of the current outstanding debt obligations.
The annual existing debt payments over the Projection Period are provided in Table 4.
9 | P a g e
Table 4 – Annual Debt Service Payments
2.3.4 Gross and Net Revenue Requirement
The proposed sewer rates developed in the Report are designed for assumed implementation for FY 2024/25 (the Test Year as previously defined). The projected Test Year gross and net Revenue Requirements are estimated by utilizing the Budget, actual debt service requirements as provided in the applicable debt service schedules, capital estimates and assumed funding sources for capital projects as provided by the City, along with anticipated transfers. The Test Year Revenue Requirements that are used for developing the user rates proposed herein are detailed in Appendix A at the end of this report and summarized in Table 5.
Table 5 – Test Year Revenue Requirements – FY 2025
The projected Revenue Requirements for the sewer system over the entire Projection Period are provided in Table 6.
Table 6 – Sewer Revenue Requirements for the Projection Period
10 | P a g e
2.4 Customer Data
The rate study described herein, particularly the cost-of-service analysis, is heavily reliant upon a detailed analysis of system customers and demand characteristics. The existing utility customer base provides the determinants utilized in the cost-of-service analysis, and ultimately in calculating the sewer charges, which become the foundation for projecting future revenues generated by the sewer system.
It is important to note that the customer analysis focuses primarily on the customer classifications that will be subject to and impacted by the user rates and charges to be developed in the Report. This consists of the general service (retail) customers that currently pay for utility service pursuant to the existing user rates and charges as previously detailed.
For the purposes of the rate study, it is these customers that will generate revenues based upon the proposed user rates and charges.
2.4.1 Customer Billing Analysis
For the rate study, detailed billing information was provided for each individual customer.
This data offered a breakdown of customers by class, usage characteristics, and billed charges. An analysis of the billing data was conducted to obtain an understanding of the existing customers, customer classes, and usage characteristics per customer class. In accordance with the data, as well as discussions with the City staff, the utility system provides service to various identifiable retail customer classes consisting of:
➢ Single-Family Residential
➢ Multi-Family Residential, and
➢ Commercial/Non-Residential
Each of these customer classes embodies certain common characteristics in their utility use and service demand profiles that provide the basis for establishing an equitable allocation of system costs. The billing data was utilized to identify the number of customer accounts within each class, the applicable equivalent residential units (ERUs) based on dwelling units and meter size, usage profiles, and strength characteristics.
The historical customer data was also utilized to establish growth trends for each customer classification. The growth trends were then used to project the average number of customers, ERUs, and usage within each class for the Test Year plus the remaining years of the Projection Period.
2.5 Financial Projections Under Existing Rates
The projected customers and accompanying billable flows are applied to the existing rates to develop a projection of user rate revenues that would be generated under existing rates.
The revenues are then compared to the projected revenue requirements/expenditures to determine if revenue adjustments are needed. Based on this comparison, it is projected that under the existing rates, the sewer system would not meet its collective projected operating
11 | P a g e
(O&M) financial obligations, debt service payment or coverage requirements, cover costs of capital projects, and be able to make anticipated transfers. Therefore, revenue increases are required to generate additional cash to fund projected costs of operations and capital projects, meet debt service requirements, and maintain adequate cash reserves.
The City has established an objective of maintaining a target of at least 180 days of cash reserves to help fund ongoing operations in the event of periodic fluctuations in cash flow, and to address unexpected needs that may require cash funding. Since the City currently collects sewer user revenues through the annual secured property tax roll, as opposed to receiving cash through monthly or bi-monthly billings, it is essential that there are adequate cash reserves to cover expenditures between cycles of revenue collection from annual secured tax roll payments. The cash-flow statement outlining the projected operating results under existing rates is summarized in Table 7 for the sewer system. The proposed rates and projected financial results are addressed in the subsequent sections of this Report.
Table 7 – Sewer System Projected Operating Results - Existing Rates ($1,000s)
12 | P a g e
Section 3 – Cost-of-Service (COS) Analysis
3.1 General
The costs incurred by a sewer utility system are generally driven by specific service requirements imposed on the system by its customers. There are several different options that can be used to perform a cost-of-service (COS) analysis and the allocation methodology depends upon the basis applied. The sewer cost-of-service analysis detailed in Section 3.2 involves an examination of the number and type of customers served in accordance with the California State Water Resources Control Board (SWRCB) Revenue Program Guidelines for Wastewater Agencies.
3.2 Sewer Cost-of-Service
The COS analysis for the sewer utility utilizes the revenue requirements for the Test Year as the cost basis. The Test Year revenue requirements are functionally unbundled, classified and allocated to customer classes to determine the cost-of-service by class. More detail relating to the sewer COS approach can be found in Appendix B.
3.2.1 Functional Unbundling of Revenue Requirements
The sewer system costs are unbundled into Collection, Treatment, and Customer functions.
A brief description of each component is as follows:
• Collection – costs associated with lines and facilities that transport wastewater from customer properties to treatment facilities;
• Treatment – costs associated with treating wastewater for disposal reclamation and/or discharge;
• Customer – costs associated with metering, billing, and providing other services to customers (e.g., printing, delivering and collecting utility bills, recordkeeping, etc.).
The allocation of the functionally unbundled revenue requirements for the Test Year are summarized in Table 8.
13 | P a g e
Table 8 - Functional Unbundled Cost Allocations
3.2.2 Classification of Revenue Requirements
The functionally unbundled revenue requirements for the sewer system are classified into fixed and volumetric customer components based on methodology consistent with the Water Environmental Federation (WEF), Manual of Practice No. 27. Since the City is mostly built-out, and there are no anticipated losses or gains of significant wastewater customers, it is anticipated that the allocation percentages will not change materially during the Projection Period. However, it is important to note that COS analyses are based on the data at a specific point in time (i.e., the most recent fiscal year). To the extent that weather conditions, economic conditions and customer usage characteristics change during the Projection Period, the cost allocations can be impacted. The system-wide costs by service characteristic are shown in Table 9.
14 | P a g e
Table 9 - Classification of Unbundled Revenue Requirements
3.2.3 Allocation to Customer Classes and Unit Cost
Development
The functionalized and classified revenue requirements are allocated to customer classes utilizing a unit cost approach as follows:
• Collection – Based on relative percentage of annual sewer usage; • Treatment – Based on relative percentage of sewer strength discharge (BOD and SS);
• Customer – Based on relative percentage of units by customer class.
The units of service for each component of cost by customer class (if applicable) are provided in Table 10. The units of service consist of the number of ERUs, annual flows in 100 cubic feet, and sewer strength discharge. ERUs are based on the number of residential dwelling units and commercial/non-residential customers by meter-size as provided in the customer data. Collection is the total annual sewer flows projected for the test year. BOD and SS reflect the strength per pound of the sewer discharge collected by the City from each customer class based on standards for wastewater discharge included in the State Water Resources Control Board Guidelines.
15 | P a g e
Table 10 – Units of Service
The revenue requirement for each cost component is divided by its respective unit of service to calculate a unit cost. The unit cost for each cost component is demonstrated in Table 11.
Table 11 – Cost Per Unit
The allocation of the revenue requirement to each customer class is based on the unit costs for each component multiplied by the units of service for each customer class. The total costs to be recovered from each customer class by rate component are shown in Table 12.
Table 12 – Cost of Service by Customer Class and Cost Component
16 | P a g e
3.2.4 Rate Design by Unit Cost
The unit costs developed in the previous section are used to develop the proposed rates for the Test Year. The fixed rate components are based on accounts, ERUs and the allocated customer-related costs. The volumetric rate component is based on the annual usage and sewer strength discharge.
The fixed rate components by ERU for single-family and multi-family customers are determined using the total number of residential dwelling units being served. Each residential dwelling unit is equivalent to one ERU.
The fixed rate components by ERU for commercial/non-residential customers are determined based on the number of customers by meter size. It is common practice in the utility rate-making industry to establish a rate structure that includes an incremented service availability charge (meter charge, sometimes also called a fixed charge) such that customers placing a greater potential demand or capacity requirement on the system (those with larger meters) will pay proportionately more for the service availability component.
The methodology for incrementing the commercial/non-residential fixed fee per ERU is based upon standardized meter/capacity criteria established by the American Water Works Association (“AWWA”) and the WEF pursuant to the size of the water meter. The AWWA/WEF equivalent meter capacity criteria are commonly used to establish a standard unit of measure for customers referred to as an ERU. Utilizing the AWWA/WEF demand criteria, the applicable ERU factors for larger water meters are based on the incremental increase in potential wastewater discharge capacity, as compared to the standard meter size. These factors are derived from actual flow testing results and are commonly utilized by the water and sewer utility industry. Based upon the established standards, an ERU is equal to a single connection with a 5/8-inch water meter. Since wastewater flow capacity is generally a direct function of water flow, calculating the sewer fixed fee based upon the size of the water meter is equitable and consistent with industry standards. A full summary of the AWWA meter-size equivalency factors is provided in Table 13.
17 | P a g e
Table 13 – Meter Equivalency Factors
The volumetric rate component is determined by the sewer usage and the strength characteristics associated with each customer classification based on the standards for wastewater discharge included in the State Water Resources Control Board Guidelines.
Residential customers will pay a flat fee, regardless of their usage, so all costs relating to the volumetric rate component are included in the flat fee. This is a common industry standard for setting residential sewer rates since residential customers have similar usage profiles and place similar demand on a sewer utility system, and their wastewater discharge is not directly metered.
For commercial/non-residential customers, the volumetric rate component is determined by dividing the volume, capacity, BOD, and TSS volumetric cost categories by the total commercial/non-residential sewer flows to determine the commercial/non-residential volumetric rate per 100 cubic feet. It is a common industry practice to have commercial/non-residential customers pay a volumetric rate per unit of sewer usage since the commercial/non-residential customer class varies in usage and strength discharge characteristics between customers. Section 3.2.5. demonstrates how the sewer rates are developed from the fixed and volumetric cost components, respective to each customer classification, to recover their proportional cost of providing service to them.
18 | P a g e
3.2.5 COS and Revenue Check
Once the unit costs are developed and the costs associated with each customer class based on the units or service are determined in Section 3.2.3, rates can be developed to ensure that each customer class is generating sufficient revenues to cover their allocated cost of service. The proposed rate structure for the sewer rates are as follows:
• Single-Family & Multi-Family Residential Customers – For single-family and multi-family residential customers, the proposed rates will consist of only a flat annual fixed charge based on the number of dwelling units. • Commercial/Non-Residential Customers – For commercial/non-residential customers, the proposed rates will consist of an annual fixed charge by metersize/ERU and a volumetric rate per 100 cubic feet of sewer usage.
The revenues generated by each land use vs the cost allocated to each land use are provided in Table 14.
Table 14 – Proposed Rate Revenues vs COS
19 | P a g e
Section 4 – Proposed Test Year Rates
4.1 General
The methodology used to calculate the recommended sewer rates proposed herein involves applying the projected customers, ERUs, and sewer flows to the user rates developed in the preceding cost-of-service and rate analysis to calculate the estimated revenues that would be generated. Then, these projected revenues are compared to the estimated Test Year revenue requirements, and the sewer rates are adjusted on a percentage basis as necessary until the revenues generated are sufficient to meet the revenue needs of the sewer utility system. In addition, there are other factors that must be considered in designing rates to satisfy the City’s objectives. Such other rate considerations include, but are not limited to:
1. Sensitivity to existing customers - the proposed rates must consider the impact on existing customers and avoid putting an inequitable financial burden on any particular customer class.
2. Comparability with neighboring utilities - the proposed rates should consider the rates and charges applied to customers of neighboring utilities of relatively similar size for similar service.
3. Existing rate structure - the proposed rates must consider the logistics and cost/benefit implications of instituting changes to the existing rates and rate structure.
4. Economic and property development - the proposed rates must consider the potential for future development within the City’s service area and ensure that the rates do not make it cost-prohibitive for future development.
The proposed rates developed herein utilize these considerations, as well as discussions with the City staff, professional judgment, and prior experience with comparable utility systems.
When reviewing potential rate structure options in conjunction with the need for additional revenues, it was determined that revenue adjustments are needed, and the existing rate structure needs to be adjusted based on the cost-of-service analysis.
In conjunction with the existing rate structure, the proposed sewer rates for the upcoming fiscal year are composed of two rate components consisting of an annual fixed charge and a volumetric rate per 100 cubic feet for commercial/non-residential customers only. The proposed annual sewer rates for the Test Year are provided again in Table 15.
20 | P a g e
Table 15 – Proposed Annual Sewer Rates
4.2 Rate Comparison with Other Utilities
In order to provide the City with additional insight regarding the proposed rate levels, the analysis includes a comparison of both the existing and proposed user rates relative to the user rates imposed by other sewer utility systems located in same region. A summary analysis is provided comparing the cost of annual sewer service for a typical residential customer calculated under the existing and proposed rates of the City with those of the other utilities.
Since the City currently bills customers annually through the Contra Costa County Secured Property Tax Roll, for purposes of a meaningful comparison, the bills for sewer utilities that do not bill annually (i.e. monthly or bi-monthly) were converted into annual bills. The rates utilized for the other neighboring utilities bills shown in Figure 1 were in effect as of March 2024 and
21 | P a g e
are exclusive of local taxes, outside surcharges, franchise fees, regulatory fees, or other rate adjustments. An annual summary comparison with other utilities for a residential customer using 800 cubic feet per monthly billing, or 9,600 cubic feet annually is illustrated in Figure 1.
It should be noted that when making comparisons for sewer service, several factors affect the level of rates and charges. Such factors may include:
1) Terms of wholesale service agreements;
2) Time since last rate update for comparison providers; 3) Level of treatment and effluent disposal methods of sewer service; 4) Anticipated capital improvement programs and capital financing methods; 5) Plant capacity utilization, age of facilities, and assistance in construction by federal or state grants, connection fees, developer contributions, etc.; 6) General Fund and/or administrative fee transfers made by other systems which may account for differences in the level of rates charged; and 7) Bond covenants and funding requirements of the rates.
For the utilities included in the rate comparisons, no analysis has been performed with consideration of the above-mentioned factors as they relate to the reported sewer rates currently being charged.
22 | P a g e
Section 5 – Projected Operating Results
5.1 General
As a conclusion to the study, a pro forma operating statement is developed for the sewer system. The statement summarizes the projected financial results based on the system revenues, expenses and other revenue requirements anticipated in future years.
The individual operating statements cover the 5-fiscal year Projection Period through June 30, 2029, and are prepared on a cash-flow basis. In addition, the pro forma statement includes the applicable annual percentage rate adjustments necessary to meet the projected revenue requirements. The following discussions describe the development of the major components of the projected operating results.
5.2 Projected User Rate Revenues
The user rate and charge revenues are estimated by applying the existing and proposed rates to the projected customers, ERUs, and sewer flows. The resulting revenues are then compared to the projected revenue requirements (i.e., O&M expenses, debt service, capital outlay, transfers, etc.) in each fiscal year to determine if the revenues are sufficient to satisfy the expenditure needs of the system. To the extent that there are revenue shortfalls in any given year of the Project Period, the sewer rates developed from the Cost-of-Service and Rate analysis outlined in Section 3 of this report are adjusted on a percentage basis each year as necessary to generate the required level of revenues. The projected sewer user rate revenues are provided in Table 16.
Table 16 – Projected User Rate Revenues
The projected revenues include the annual sewer rate adjustments anticipated for the remaining years of the Projection Period beyond the Test Year. The proposed user rates from which the projected operating results are developed for the entire 5-fiscal year Projection Period are provided in Table 17. The rates identified in the table below reflect the cost of providing service to individual customer classes based on ERUs, volume of flow, and strength characteristics.
23 | P a g e
Table 17 – Proposed Annual Sewer Rates
The projected user rates provided herein for the periods beyond the Test Year are intended for strategic planning purposes, and to provide the City with the estimated future rates that may be needed to satisfy the projected cash flow requirements. The rates are developed in accordance with the assumed customer, flow, expenditure, and revenue estimates projected in this rate study. It is important to note that, since it is necessary to utilize numerous assumptions to develop the projected operating results, to the extent that actual customers, flows and/or system expenditures differ from those assumed herein, additional rate adjustments may be required. For informative purposes, the annual charge for a representative City residential customer based on the projected rates, as well as the accompanying change in the annual charge for each year of the Projection Period is included herein. An illustration of the projected annual flat fee charge for a single-family residential customer is provided in Figure 2.
24 | P a g e
5.3 Debt Service Coverage
The sewer operating statement also includes a calculation of the annual debt service coverage. Debt service coverage is generally viewed as an indicator of the financial strength of the utility. The debt service coverage ratio is broadly calculated by dividing the net revenues by the annual debt service requirement. For the purposes of the debt service coverage calculation developed herein, the net revenues consist of the total operating revenues (user rate revenues plus other revenues) less the O&M expenses. In accordance with the requirements of the outstanding loan agreements, the City must maintain coverage of at least 125% (1.25 times) of the annual debt service payment. The pro-forma operating statement indicates that the sewer system is expected to meet or exceed the required minimum level of debt service coverage in each fiscal year of the Projection Period. It is important to note that the coverage results are provided for informative purposes only and are not intended as a legally supportable calculation for representation to bondholders. The debt service coverage for the sewer system over the projection period is provided in Table
18.
25 | P a g e
Table 18 –Sewer Utility System Projected Debt Service Coverage
5.4 Summary of Projected Operating Results
The cash-flow statement outlining the projected operating results is summarized in Table 19 for the sewer system. The projected results are graphically illustrated in Figure 3 for the sewer system. The results demonstrate that the proposed rates and charges along with the other system revenues are anticipated to be sufficient to satisfy the projected revenue requirements and capital needs of the utility system.
Table 19 – Sewer System Projected Operating Results - Proposed Rates ($1,000s)
26 | P a g e
27 | P a g e
Section 6 – Conclusions and Recommendations
6.1 Disclaimers
6.1.1 General Disclaimer
In the development of the proposed user rates and charges, certain historical reviews and analyses have been performed, together with the application of assumptions based on prudent financial, operational, and ratemaking relationships. The cost criteria and customer usage characteristics associated with general ratemaking procedures are representative of averages and are not intended as indicators of any individual customer.
In the preparation of the rate study, certain assumptions have been made with respect to conditions that may occur in the future. While it is believed that these assumptions are reasonable for the purpose of this update, they are dependent upon future events and actual conditions may differ from those assumed. In addition, the study has used and relied upon certain information that was provided by other parties not associated with Willdan.
Such information includes, among other things, the City’s audited financial statements, annual operating budgets, periodic reports, and other information and data provided by the City, its independent auditors, and other sources. While the sources are believed to be reliable, there has been no independent verification of the information, and no assurances are offered with respect thereto. To the extent that future conditions differ from those assumed herein or provided by others, the actual results may vary from those projected.
6.1.2 Municipal Advisory Disclaimer
Unless the City of Pinole, California (the “City”) has a written engagement from Willdan Financial Services (“Willdan”) for municipal advisory services, Willdan is not advising or recommending any action be taken by the recipient of this information with respect to any prospective, new, or existing municipal financial products or issuance of municipal securities (including with respect to the structure, timing, terms and other similar matters concerning such financial products or issues). The City shall discuss any such information and material contained in Willdan’s work product with any and all internal and/or external advisors and experts, including its own municipal advisor, that it deems appropriate before acting on the information and material.
For the avoidance of doubt and without limiting the foregoing, in connection with any revenue projections, cash-flow analyses, feasibility studies and/or other analyses Willdan may provide the City with respect to financial, economic or other matters relating to a prospective, new or existing issuance of municipal securities of the City, (A) any such projections, studies and analyses shall be based upon assumptions, opinions or views (including, without limitation, any assumptions related to revenue growth) established by the City, in conjunction with such of its municipal, financial, legal and other advisers as it deems appropriate; and (B) under no circumstances shall Willdan be asked to provide, nor shall it
28 | P a g e
provide, any advice or recommendations or subjective assumptions, opinions or views with respect to the actual or proposed structure, terms, timing, pricing or other similar matters with respect to any municipal financial products or municipal securities issuances, including any revisions or amendments thereto.
6.2 Conclusions
As previously addressed, the purpose of this study is to provide a review of the City’s existing utility rates to determine if rate adjustments are necessary to meet the budgeted and/or projected financial needs in future years. This Report is the result of the collaborative efforts of representatives from both the City and Willdan. City staff were diligent and cooperative in their efforts to ensure the availability and quality of source data on financial and operating matters. Based on the reviews, analyses and assumptions discussed herein, it is concluded that:
1. The proposed user rates and charges are anticipated to generate sufficient revenues to meet the revenue requirements of the system based upon the projected expenditures, transfers, customers, and billable flows estimated for the Test Year. The proposed rates are based on an assumed implementation date of July 1, 2024 (or other such date as determined by the City). To the extent that the implementation date is postponed, additional rate adjustments and/or appropriations from existing reserves may be necessary.
2. The estimated revenues and resulting rate adjustments for the remaining years of the Projection Period beyond the Test Year are developed based on the customer growth assumptions generated from the historical analyses and discussions with City staff. If the customer growth projections are not realized, additional rate adjustments may be necessary.
3. Customer growth for the sewer system is projected based on historical customer data as provided by the City as well as discussions with the City staff regarding development activity and anticipated construction. If it turns out that the customer growth assumptions are not realized, the resulting revenues could be different than projected.
4. Future capital improvement projects are assumed to occur as reported by the City in its CIP. To the extent that the timing of such projects may change from that estimated herein, the cost of such projects and resulting impact on future rates and charges may vary from those indicated.
29 | P a g e
5. The proposed rates and rate structure are consistent with industry standards for rate-setting practices, comply with Proposition 218 and conform to the City’s financial policies with respect to:
a. Equitably recovering costs;
b. Being based upon the proportionate cost of providing services; and c. Generating sufficient revenue to recover system revenue requirements, meet debt service coverage requirements and annual payment obligations, fund capital needs, and meet reserve requirements.
6.3 Recommendations
Based on the reviews, analyses and assumptions addressed herein, as well as the resulting conclusions provided above, it is respectfully recommended that the City:
1. Adopt the proposed sewer rates to be placed on the annual secured property tax roll.
2. Enact the proposed rates to become effective as of July 1, 2024 (or other such date as determined by the City). Based on the timing of the project and the required public hearing notice procedures, it is expected that the effective date will occur on the recommended date.
3. Readdress the cost-of-service analysis portion of this study every three to five years to ensure costs are recovered consistent with cost-of-service principles and customer characteristics.
We appreciate the opportunity to be of service to the City in this engagement. In addition, we would like to thank City staff for the valuable assistance provided during the completion of the rate study.
Respectfully Yours,
WILLDAN FINANCIAL SERVICES
APPENDIX
DETAIL FOR THE COMPREHENSIVE
SEWER UTILITY RATE STUDY
COMPREHENSIVE SEWER UTILITY RATE STUDY FOR THE
CITY OF PINOLE, CALIFORNIA
APPENDIX A
Revenue Requirement
from User Rates
APPENDIX - A
CITY OF PINOLE, CA
DEVELOPMENT OF RATE REVENUE REQUIREMENTS - SEWER
[A] [B] [C]=[A]*[B]
FY 2025 % to Sewer Sewer
1 Total Operating Revenues $ 10,503,104 $ 10,503,104
Less:
Other Operating Revenues
2 36302 - Sewer Chg/Sewer Plant-Hercules $ 3,423,208 100% $ 3,423,208 3 36303 - Sewer Chg/Sewer Laterals 10,000 100% 10,000
4 37180 - Investment Earnings 200,000 100% 200,000
5 Total Other Operating Revenues 3,633,208 3,633,208
6 Total Rate Revenue Requirement $ 6,869,896 100% $ 6,869,896 Line No: Description Test Year for Rate Revenue Requirement A - 1
APPENDIX B
Sewer Cost-of-Service
Analysis
APPENDIX - B
CITY OF PINOLE, CA
ALLOCATION OF TEST YEAR COSTS TO SEWER FUNCTION
Line No: Expense Group FY 2025
1 Collection $691,150
2 Treatment 2,730,814
3 Administration 3,851,093
4 Pumping 0
5 Customer Service 0
6 Transfers 0
7 Existing Debt 1,612,018
8 New Debt 0
9 CIP 8,220,000
10 Capital Outlay 351,597
11 Total $ 17,456,672
Test Year Revenue Requirement
B - 1 Page 275 of 302
APPENDIX - B
CITY OF PINOLE, CA
SEWER CUSTOMER AND EQUIVALENT RESIDENTIAL UNIT CALCULATION - TEST YEAR FY 2025 [A - 1] [B - 1] [C - 1]
Class --> Single-Family Multi-Family Non-Residential
Billing Basis--> Units Units Units
1 Dwelling Units 1.00 1.00 1.00
2 0.625 1.00 1.00 1.00
3 0.75 1.50 1.50 1.50
4 1.00 2.50 2.50 2.50
5 1.50 5.00 5.00 5.00
6 2.00 8.00 8.00 8.00
7 3.00 15.00 15.00 15.00
8 4.00 25.00 25.00 25.00
9 6.00 50.00 50.00 50.00
10 8.00 80.00 80.00 80.00
[A - 2] [B - 2] [C - 2]
Class --> Single-Family Multi-Family Non-Residential
Billing Basis--> Units Units Units
1 Dwelling Units 4,947 1,370 - 6,317
2 0.625 - - 61 61
3 0.75 - - 1 1
4 1.00 - - 30 30
5 1.50 - - 33 33
6 2.00 - - 9 9
7 3.00 - - 2 2
8 4.00 - - - -
9 6.00 - - 1 1
10 8.00 - - - -
11 Total 4,947 1,370 137 6,454
[A - 1] * [A - 2] [B - 1] * [B - 2] [C - 1] * [C - 2]
Class --> Single-Family Multi-Family Non-Residential
Billing Basis--> Units Units Units
12 Dwelling Units 4,947 1,370 - 6,317
13 0.63 - - 61 61
14 0.75 - - 2 2
15 1.00 - - 75 75
16 1.50 - - 165 165
17 2.00 - - 72 72
18 3.00 - - 30 30
19 4.00 - - - -
20 6.00 - - 50 50
21 8.00 - - - -
22 Total 4,947 1,370 455 6,772
Total Equivalent Residential Units
Line No: Meter Size Total
Meter Equivalencies
Line No: Meter Size
Customer Units
Line No: Meter Size Total
B - 2 Page 276 of 302
APPENDIX - B
CITY OF PINOLE, CA
SEWER CUSTOMER ACCOUNT & STENGTH CHARACTERISTICS BY CUSTOMER CLASS - TEST YEAR FY 2025 Total Total CCF BOD BOD TSS TSS
Units ERUs Flow Factor (1) Pounds Factor (1) Pounds
Residential Classes
1 Single-Family 4,947 4,947 434,742 250 678,015 250 678,015 2 Multi-Family 1,370 1,370 64,157 250 100,058 250 100,058 3 Sub-Total Residential 6,317 6,317 498,899 778,074 778,074 Non-Residential Classes
4 Commercial/Non-Residential 137 455 50,069 439 136,963 384 119,992 5 Sub-Total Non-Residential 137 455 50,069 136,963 119,992 6 Sewer System Total 6,454 6,772 548,968 915,036 898,066 Notes:
Line No: Description
[1] Average strength factors for BOD and TSS are based on the State Water Resources Control Board Revenue Program Guidelines, Appendix G.
B - 3 Page 277 of 302
APPENDIX - B
CITY OF PINOLE, CA
ALLOCATION OF SEWER COSTS - TEST YEAR FY 2025
Line No: Description Sewer Costs Volume Capacity Strength - BOD Strength - SS Customer Total (Check)
Allocation Factors:
1 Treatment 11.62% 11.62% 38.74% 38.02% 0.00% 100.00%
2 Collection 50.00% 50.00% 0.00% 0.00% 0.00% 100.00%
3 Administration 0.00% 0.00% 0.00% 0.00% 100.00% 100.00% 4 Pumping 11.62% 11.62% 38.74% 38.02% 0.00% 100.00%
5 Customer Service 0.00% 0.00% 0.00% 0.00% 100.00% 100.00% 6 Transfers 0.00% 0.00% 0.00% 0.00% 100.00% 100.00%
7 CIP 16.77% 16.77% 16.77% 16.77% 32.92% 100.00%
8 Capital Outlay 0.00% 0.00% 0.00% 0.00% 100.00% 100.00% 9 Existing Debt 0.00% 0.00% 0.00% 0.00% 100.00% 100.00% 10 New Debt 11.62% 11.62% 38.74% 38.02% 0.00% 100.00%
Allocation of Costs:
11 Treatment $ 2,730,814 $ 317,334 $ 317,334 $ 1,057,883 $ 1,038,263 $ - $ 2,730,814 12 Collection 691,150 345,575 345,575 - - - 691,150
13 Administration 3,851,093 - - - - 3,851,093 3,851,093 14 Pumping - - - - - - -
15 Customer Service - - - - - - -
16 Transfers - - - - - - -
17 CIP 8,220,000 1,378,494 1,378,494 1,378,494 1,378,494 2,706,024 8,220,000 18 Capital Outlay 351,597 - - - - 351,597 351,597
19 Existing Debt 1,612,018 - - - - 1,612,018 1,612,018
20 New Debt - - - - - - -
21 Non-Rate Rev & Fund Balance (10,586,776) (1,238,030) (1,238,030) (1,477,566) (1,465,667) (5,167,483) (10,586,776) 22 Total $ 6,869,896 $ 803,373 $ 803,373 $ 958,811 $ 951,090 $ 3,353,249 $ 6,869,896 Total Units of Service 548,968 548,968 915,036 898,066 6,772 Units CCF CCF Pounds Pounds ERUs/Yearly
Cost Per Unit $ 1.46 $ 1.46 $ 1.05 $ 1.06 $ 495.20
Units CCF CCF Pounds Pounds ERUs/Yearly
B - 4 Page 278 of 302
APPENDIX - B
CITY OF PINOLE, CA
SEWER COST OF SERVICE BY COST COMPONENT AND CUSTOMER CLASS - TEST YEAR FY 2025 [A] [B] [C] [D] [E] [F]
Volume Capacity Strength -
BOD Strength - SS Customer Total
1 Single-Family $ 636,212 $ 636,212 $ 710,451 $ 718,047 $ 2,449,756 $ 5,150,679 2 Multi-Family 93,889 93,889 104,845 105,966 678,424 1,077,013 3 Commercial/Non-Residential 73,272 73,272 143,515 127,077 225,069 642,203 4 Total $ 803,373 $ 803,373 $ 958,811 $ 951,090 $ 3,353,249 $ 6,869,896 Line
No: Description
B - 5
APPENDIX - B
CITY OF PINOLE, CA
SEWER RATE CALCULATION - TEST YEAR FY 2025
[A] [B] [C] [D] [E] [F] [G] [H] [I] [J]
Fixed Rate
Costs Yearly ERUs
Proposed
Yearly Fixed
Fee
Existing
Yearly Fixed
Fee
Yearly Fixed
Fee
Difference
Volumetric
Rate Costs
Billable
Annual
Volume (CCF)
Proposed
Volumetric
Rate
Existing
Volumetric
Rate
Volumetric
Rate
Difference
1 Single-Family $ 5,150,679 4,947 $ 1,041.17 $ 883.44 $ 157.73 N/A N/A N/A N/A N/A 2 Multi-Family $ 1,077,013 1,370 $ 786.14 $ 750.96 $ 35.18 N/A N/A N/A N/A N/A 3 Commercial/Non-Residential $ 225,069 455 $ 495.20 $ 202.80 $ 292.40 $ 417,135 50,069 $ 8.33 $ 7.09 $ 1.24 Line
No: Customer Class
Residential Classes
Non-Residential Classes
B - 6
APPENDIX - B
CITY OF PINOLE, CA
SEWER REVENUE VS COST OF SERVICE BY CUSTOMER CLASS CHECK - TEST YEAR FY 2025 [A] [B] [C]=[A]*[B]*1 [D] [E] [F]=[D]*[E] [G]=[C]+[F] [H] [I]=[H]-[G] Yearly ERUs
Proposed
Yearly Fixed
Fee
Total Fixed
Fee Revenue
Billable
Annual
Volume
(CCF)
Proposed
Volumetric
Rate
Total
Volumetric
Rate
Revenues
Total
Calculated
Revenues Total COS
Difference
Calc vs COS
1 Single-Family 4,947 $ 1,041.17 $ 5,150,679 N/A N/A $ - $ 5,150,679 $ 5,150,679 $ - 2 Multi-Family 1,370 $ 786.14 $ 1,077,013 N/A N/A $ - $ 1,077,013 $ 1,077,013 $ - 3 Commercial/Non-Residential 455 $ 495.20 $ 225,069 50,069 $ 8.33 $ 417,135 $ 642,203 $ 642,203 $ - 4 Total 6,772 $ 6,452,761 50,069 $ 417,135 $ 6,869,896 $ 6,869,896 $ - Line
No: Customer Class
B - 7 Page 281 of 302
27368 Via Industria, Suite 200
Temecula, CA 92590
800.755.6864 | Fax: 888.326.6864
www.willdan.com
CITY COUNCIL
REPORT 11.A.
DATE: JULY 16, 2024
TO: MAYOR AND COUNCIL MEMBERS
FROM: MARKISHA GUILLORY, FINANCE DIRECTOR
ERIC CASHER, CITY ATTORNEY
SUBJECT: RESOLUTION PLACING ½-CENT SALES TAX MEASURE ON NOVEMBER 5, 2024 BALLOT
RECOMMENDATION
Staff recommends the City Council adopt a resolution placing a ½-cent sales tax measure on the November 5, 2024 ballot.
BACKGROUND
At its November 7, 2023 meeting, the City Council considered the City’s long term financial plan forecast and related strategies. As further described in the November 7th staff report, the twenty-year General Fund status quo financial forecast shows that the City’s ongoing General Fund revenues are forecasted to grow at a slower rate than its ongoing expenditures, which results in a growing imbalance over time. The City’s annual deficit will grow to at least $1,600,000 next fiscal year alone, giving rise to the possibility of reductions in fire and police protection, 911 emergency response times, pothole repairs, park maintenance, and other essential city services. Pinole has a backlog of approximately $32 million in road and infrastructure repairs.
During that and subsequent meetings, the City Council considered a wide range of possible measures to raise revenue, including potential ballot measures to create additional sources of reliable, locally-controlled revenue that is solely for the benefit of Pinole and specifically cannot be taken by the County or State.
The City retained a public opinion research specialist to conduct a statistically valid community survey on potential local ballot measures to gather information regarding the viability of establishing additional funding sources during the November 2024 election cycle. The survey results indicated that 62% of Pinole voters would support a ballot measure enacting an additional ½-cent sales tax. This mechanism requires a simple majority vote to enact.
On May 7, 2024, the City Council directed staff to prepare a ballot measure submitting a ½ cent sales tax to the voters for consideration during the November 5, 2024 general election.
The sales tax will be a general tax, the proceeds of which can be used for any municipal purpose. At that meeting, the Council also received information on the priorities identified by residents for any new locally-generated funding:
• Providing clean water
• Maintaining 911 emergency response times
• Keeping public areas and parks healthy, safe, and clean • Keeping funds local
• Maintaining fire protection and response
• Maintaining crime prevention programs
Sales tax is levied on the purchase of goods and some services and is charged as a percentage of the cost of a purchase. Sales tax can vary by jurisdiction. It is levied and collected by the seller at the point of sale, then remitted to the State and apportioned to the appropriate local agency. Sales tax is paid not just by Pinole residents but also by visitors who shop in Pinole and utilize local services and infrastructure. Essential purchases like groceries and medicine are exempt from sales tax, ensuring that this measure is not a burden to those on fixed or limited incomes who spend mostly on essential items.
Pinole's electorate strongly values self-reliance and local control over taxpayer dollars and have enacted local funding measures including two a ½ cent local sales taxes in November 2006 (Measure S 2006) and in November 2014 (Measure S 2014) both of which have terms until ended by voters.
The standard sales tax rate in California is 7.25%. Of this amount, the City receives the standard 1% sales tax (known as the Bradley Burns Sales Tax). Generally, local agencies may increase the sales tax by a combined total amount of 2%. This includes sales taxes imposed by the City, County, and other local agencies. Pinole has previously enacted a 1% total sales tax, BART has a 0.5% sales tax, Contra Costa County has a 0.5% sale tax, and the Contra Costa County Transportation Authority has a 0.5% sales tax, for a total amount of 2.5%. This is possible because state law provides that BART’s sale tax does not count against the 2% cap.
Accordingly, the sales tax in Pinole is currently 9.75%.
Because other local agencies have already enacted similar mechanism, the County limit had already been reached. City staff and legislative advocates have worked closely with our State representatives to address this issue. Specifically, AB 3259 (sponsored by Assembly Member Wilson) has been amended to include language authorizing the City of Pinole to enact, subject to voter approval, a 2024 ½-cent sales tax measure. As the Governor is not expected to sign this legislation until after the July 16th City Council meeting, the official ballot documents note they are contingent upon state approval.
REVIEW AND ANALYSIS
The proposed Resolution, if adopted, would place a measure on the ballot for consideration by the voters during the November 5, 2024 general election. If approved by the voters, the proposed measure would adopt an additional ½ cent sales tax, which would remain in effect until ended by the voters. The exact text of the measure (which is in the form of an Ordinance) that will be submitted to voters is included as Exhibit A of the Resolution. The vast majority of the text of the Ordinance is required by the California Department of Tax and Fee Administration, which is responsible for the administration and collection sales taxes.
The question that will be presented to voters, and included on the ballot itself, is proposed as follows:
To maintain Pinole’s fiscal stability, prevent cuts, provide essential City Yes services such as: maintaining 911 emergency response times/fire prevention; preventing property crimes; keeping public areas/parks safe and clean; providing clean water; repairing potholes/streets; retaining/attracting local businesses; other general services; shall a measure be adopted establishing a 1/2¢ sales tax providing $2,500,000 annually until ended by voters if approved by the State, requiring audits, spending disclosure, all funds spent for Pinole?
No
The Resolution also requests that the County Board of Supervisors approve consolidating the election on this measure with the November 5, 2024 general election, and asks the County Registrar of Voters to conduct the election. The Resolution also establishes deadlines for individuals to submit arguments in favor/against the measure, as well as deadlines for rebuttal arguments. The Mayor is authorized to submit arguments in favor of the measure on behalf of the City, which may be signed by up to 4 additional individuals.
Because the proposed sales tax is a general tax, approval of the Resolution to place the proposed measure on the November 2024 ballot requires a four-fifths vote of the City Council.
In order to pass, the Measure must receive a simple majority (50%+1) of votes during the election.
FISCAL IMPACT
In addition to staff time and City Attorney related to election administration, the estimated costs for running a consolidated election with the County is $2.00 to $3.00 per registered voter, or approximately $25,000, which is budgeted annually as a standard practice. If the City runs a ballot measure in the same election cycle, the cost will increases by a factor which is estimated at about $0.50 or less per registered voter. These costs are charged by the Contra Costa County ROV.
ATTACHMENTS
A. Resolution Placing Sales Tax Measure on Ballot (Final) B. Exhibit A to Resolution - Ordinance 2024 Sales Tax
RESOLUTION No. 2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PINOLE
CALLING AN ELECTION TO BE HELD ON NOVEMBER 5, 2024, FOR VOTER CONSIDERATION OF A BALLOT MEASURE TO APPROVE AN ADDITIONAL ½ CENT GENERAL TRANSACTIONS AND USE TAX (SALES TAX); ESTABLISHING POLICIES AND PROCEDURES IN CONNECTION WITH SUCH AN ELECTION;
REQUESTING THAT THE CONTRA COSTA COUNTY BOARD OF SUPERVISORS
CONSENT TO THE CONSOLIDATION OF THIS ELECTION WITH THE
STATEWIDE GENERAL ELECTION TO BE HELD ON THE SAME DATE; AND
REQUESTING CERTAIN SERVICES OF THE REGISTRAR OF VOTERS OF
CONTRA COSTA COUNTY WITH RESPECT TO THE CONSOLIDATED
GENERAL MUNICIPAL ELECTION
WHEREAS, like many cities in California, the City of Pinole faces significant short and longterm financial challenges, which have been exacerbated by high inflation in recent years; and WHEREAS, the City of Pinole’s economic health is dependent on a diverse revenue base; and WHEREAS, the cost of providing services to residents and businesses exceeds the resources that are currently available in the short and long-term; and WHEREAS, unless the City acts, its annual deficit will grow to at least $1,600,000 next fiscal year alone; and
WHEREAS, addressing the budget challenges will require a mix of strategies, including reducing expenses and increasing revenue; and
WHEREAS, without identifying an additional source of reliable local revenue, the City would be forced to make severe cuts in funding for fire and police protection, 911 emergency response times, pothole repairs, park maintenance, and other essential city services and WHEREAS, according to independent engineers, Pinole has approximately $32,000,000 in road and infrastructure repairs, and road conditions will continue to deteriorate; and WHEREAS, the longer roads go without repair, the more expensive it will be to fix; and WHEREAS, the City seeks to keep Pinole safe and needs funding to maintain neighborhood police patrols, continue investments in crime prevention programs, and maintain police 911 response times at a time when other parts of the Bay Area are struggling with rising crime; and WHEREAS, the City has already taken several cost-cutting measures to address the long-term structural deficit, including within the City’s adopted FY 24-25 budget; and WHEREAS, failure of the City to increase revenue will result in addition cuts and impact the City’s ability to provide essential services; and
WHEREAS, the City authorized to levy a Transactions and Use Tax (“Sales Tax”) for general purposes pursuant to California Revenue and Taxation Code sections 7285.9 and 7292.8, subject to approval by a majority vote of the electorate pursuant to Article XIIIC, section 2 of the California Constitution; and
WHEREAS, passage of a modest increase in the local sales tax rate will provide approximately $2.5 million annually to preserve the most essential city services that keep Pinole safe and maintain quality of life for residents; and
WHEREAS, a sales tax is paid not just by Pinole residents but also by visitors who shop in Pinole and utilize local services and infrastructure; and WHEREAS, essential purchases like groceries and medicine are exempt from sales tax, ensuring that this measure is not a burden to those on fixed or limited incomes who spend mostly on essential items; and
WHEREAS, pursuant to California Elections Code section 9222, the City Council has authority to place local measures on the ballot to be considered at a Municipal Election; and WHEREAS, the City Council would like to submit to the voters at the November 5, 2024 General Municipal Election a measure to adopt an additional ½-cent local Sales Tax until ended by the voters; and
WHEREAS, all funds from the proposed measure are subject to strict fiscal accountability protections, to ensure that all funds are spent properly; and WHEREAS, all funds from the proposed measure will be locally controlled and spent for local needs, and no funds can be taken by the State; and
WHEREAS, the proposed measure would approve a new Sales Tax on the sale of tangible personal property and the storage, use, or other consumption of such property until repealed by votes. The Sales Tax revenue would be collected by the State and remitted to the City. The tax shall be approved if the measure receives at least a simple majority of affirmative votes of those voting on the measure; and
WHEREAS, the City Council desires that the proposed Measure be consolidated with the November 5, 2024 general election, to be held on the same date, and that within the City, the polling places and election officers of the two elections be the same, and that the Contra Costa County Election Department canvass the returns of the general election and that the election be held in all respects as if there were only one election.
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Pinole hereby declares as follows:
Section 1. The foregoing recitals are true and correct and are hereby incorporated by reference.
Section 2. The City Council is authorized to present a measure to the voters for their consideration pursuant to Elections Code Section 9222 and Government Code Section 53724.
Section 3. Pursuant to California Constitution Article XIIIC, Section 2, Government Code Section 53724, and Elections Code Section 9222, the City Council of the City of Pinole hereby calls an election at which it shall submit to the qualified voters of the City, the City of Pinole 2024 Transactions and Use Tax, which if approved, such tax measure would adopt a ½- cent general transactions and use (sales) tax, as authorized by Revenue and Taxation Code sections 7285.9 and 7292.8. This measure shall be designated by letter by the Contra Costa County Registrar of Voters.
Pursuant to Election Code Section 10400 et.seq., the election for this measure shall be consolidated with the general election to be conducted on November 5, 2024.
Section 4. The City Council does hereby submit for adoption by the qualified voters of the City of Pinole at the General Municipal Election of November 5, 2024, the following question:
YES
To maintain Pinole’s fiscal stability, prevent cuts, provide essential City services such as: maintaining 911 emergency response times/fire prevention; preventing property crimes; keeping public areas/parks safe and clean; providing clean water; repairing potholes/streets; retaining/attracting local businesses; other general services; shall a measure be adopted establishing a 1/2¢ sales tax providing $2,500,000 annually until ended by voters if approved by the State, requiring audits, spending disclosure, all funds spent for Pinole?
NO
Section 5. The full text of the proposed measure to be submitted to the voters is attached as Exhibit A (the “Measure”) hereto. If a simple majority of the qualified voters voting on the Measure vote in favor therefor, the Measure shall be deemed adopted and shall be in full force and effect ten (10) days after the date the vote is declared by the City Council of the City of Pinole.
The City Council hereby approves the Measure, attached as Exhibit A, the form thereof, and its submission to the voters of Pinole at the November 5, 2024 election.
Section 6. The Board of Supervisors of Contra Costa County is hereby requested to order the Contra Costa County Registrar of Voters to provide such services as may be necessary to properly and lawfully hold and conduct a Consolidated General Municipal Election in the City on November 5, 2024, pursuant to this Resolution, including but not restricted to the providing and printing of ballots and polling place cards, election supplies, voting booths, flags, registration lists and any other materials and services required to lawfully conduct the election.
The City recognizes that additional costs will be incurred by the County by reason of this Consolidated General Municipal Election, and the City agrees to reimburse the County based on the County's established rates. This request is made pursuant to California Elections Code Sections 10002 and 10403.
Section 7. The City Clerk is authorized, instructed and directed to work with the Office of the Registrar of Voters as needed to properly and lawfully conduct the election. The ballots to be used in the election shall be in form and content as required by law. The Office of the Registrar of Voters is authorized to canvass the returns of the general municipal election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. The City Clerk is directed to file a certified copy of this resolution with the Board of Supervisors of Contra Costa County and the Registrar of Voters of Contra Costa County.
Section 8. Unless otherwise specified in this Resolution, the General Municipal Election shall be held and conducted as provided by law for holding municipal elections.
Section 9.
(a) The last day for submission of primary arguments for or against the measure shall be by 5:00 p.m. on July 30, 2024.
(b) The last day for submission of rebuttal arguments for or against the measure shall be by 5:00 p.m. on August 9, 2024.
(c) Primary arguments shall not exceed three hundred (300) words and shall be signed by not more than five persons.
(d) Rebuttal arguments shall not exceed two hundred fifty (250) words and shall be signed by not more than five persons; those persons may be different persons than the persons who signed the primary arguments.
(e) Pursuant to California Elections Code Section 9282, the City Council hereby designates the Mayor to submit a written argument in favor of the proposed measure, not to exceed three hundred (300) words, on behalf of the City Council. At the Mayors’ discretion, the argument may also be signed by additional signers from the community including bona fide associations, or by individual voters who are eligible to vote on the measure. In the event that an argument is filed against the measure, the Mayor is also authorized to submit a rebuttal argument on behalf of the City Council, which may also be signed by additional signers from the community including bona fide associations or by individual voters who are eligible to vote on the measure, which may be different from those who signed the primary argument. (f) Pursuant to California Elections Code Section 9280, the City Council hereby directs the City Clerk to transmit a certified copy of the measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the measure, not to exceed five hundred (500) words in length, showing the effect of the measure on the existing law and the operation of the measure, and file the impartial analysis with the City Clerk by August 9, 2024. (g) Pursuant to California Elections Code Section 9285, when the City Clerk has selected the arguments for and against the measure, which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the authors of
the argument against, and copies of the argument against to the authors of the argument in favor.
Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument, which it seeks to rebut.
Section 10. (a) The City Clerk is directed to file a certified copy of this resolution with the Board of Supervisors of Contra Costa County and the Contra Costa County Elections Department. The City Clerk is hereby authorized and directed to take all steps necessary to place the Measure on the ballot and to cause a synopsis of the Measure attached as Exhibit A to be published once in a newspaper of general circulation in accordance with California Elections Code Section 12111 and California Government Code Section 6061. A copy of the Measure shall be made available to any voter upon request. The City Clerk is authorized and directed to give further additional notice of the Measure in the time, form, and manner required by law. (b) In all particulars not recited in this Resolution, and except as provided for in Elections Code Sections 10403 and 10418, the election shall be held and conducted as provided by law for holding municipal elections.
Section 11. The City Manager, City Attorney and City Clerk are authorized to make all approvals, expend funds, enter into any agreements, and take any and all actions necessary or appropriate to carry out and implement the terms of this Resolution and to administer the City’s obligations, responsibilities and duties to be performed herein.
Section 12. The jurisdictional boundaries of the City of Pinole have not changed since the last general municipal election.
Section 13. The approval of this Resolution is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et.seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et. seq., “CEQA Guidelines”). The transactions and use tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. Accordingly, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have either such effect, the City would undertake the required CEQA review for that particular project.
PASSED AND ADOPTED this 16th day July 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 16th day of July 2024.
____________________________
Heather Bell, CMC
City Clerk
EXHIBIT A
ORDINANCE NO. ______
AN ORDINANCE OF THE CITY OF
PINOLE ADDING CHAPTER 3.32 “TRANSACTIONS AND USE TAX (2024)” TO THE PINOLE MUNICIPAL CODE TO ENACT A ½-CENT GENERAL TRANSACTIONS
AND USE TAX (SALES TAX) TO BE ADMINISTERED BY THE CALIFORNIA
DEPARTMENT OF TAX AND FEE ADMINISTRATION
WHEREAS, like many cities in California, the City of Pinole faces significant short and longterm financial challenges, which have been exacerbated by high inflation in recent years; and WHEREAS, the City of Pinole’s economic health is dependent on a diverse revenue base; and WHEREAS, the cost of providing services to residents and businesses exceeds the resources that are currently available in the short and long-term; and WHEREAS, unless the City acts, its annual deficit will grow to at least $1,600,000 next fiscal year alone; and
WHEREAS, addressing the budget challenges will require a mix of strategies, including reducing expenses and increasing revenue; and
WHEREAS, without identifying an additional source of reliable local revenue, the City would be forced to make severe cuts in funding for fire and police protection, 911 emergency response times, pothole repairs, park maintenance, and other essential city services and WHEREAS, according to independent engineers, Pinole has approximately $32,000,000 in road and infrastructure repairs, and road conditions will continue to deteriorate; and WHEREAS, the longer roads go without repair, the more expensive it will be to fix; and WHEREAS, the City seeks to keep Pinole safe and needs funding to maintain neighborhood police patrols, continue investments in crime prevention programs, and maintain police 911 response times at a time when other parts of the Bay Area are struggling with rising crime; and WHEREAS, the City has already taken several cost-cutting measures to address the long-term structural deficit, including within the City’s adopted FY 24-25 budget; and WHEREAS, failure of the City to increase revenue will result in addition cuts and impact the City’s ability to provide essential services; and
WHEREAS, the City authorized to levy a Transactions and Use Tax (“Sales Tax”) for general purposes pursuant to California Revenue and Taxation Code sections 7285.9 and 7292.8, subject to approval by a majority vote of the electorate pursuant to Article XIIIC, section 2 of the California Constitution; and
EXHIBIT A
WHEREAS, passage of a modest increase in the local sales tax rate will provide approximately $2.5 million annually to preserve the most essential city services that keep Pinole safe and maintain quality of life for residents; and
WHEREAS, a sales tax is paid not just by Pinole residents but also by visitors who shop in Pinole and utilize local services and infrastructure; and WHEREAS, essential purchases like groceries and medicine are exempt from sales tax, ensuring that this measure is not a burden to those on fixed or limited incomes who spend mostly on essential items; and
WHEREAS, all funds from this measure are subject to strict fiscal accountability protections, to ensure that all funds are spent properly; and
WHEREAS, all funds from this measure will be locally controlled and spent for local needs, and no funds can be taken by the State; and
WHEREAS, the proposed measure would approve a new Sales Tax on the sale of tangible personal property and the storage, use, or other consumption of such property until repealed by votes. The tax revenue would be collected by the State and remitted to the City. The tax shall be approved if the measure receives at least a simple majority of affirmative votes of those voting on the measure; and
WHEREAS, the People of the City of desire add Chapter 3.32, “Transactions and Use Tax (2024)”, to the Pinole Municipal Code establishing an additional ½-cent Sales Tax until ended by voters.
NOW, THEREFORE, the People of the City of Pinole do ordain as follows:
SECTION 1. Recitals.
The above recitals are true and correct and made a part of this Ordinance.
SECTION 2. Municipal Code Amendment.
Chapter 3.32, “Transactions and Use Tax (2024)”, is hereby added to the Pinole Municipal Code to read as shown in Exhibit A, attached hereto and incorporated herein by reference.
SECTION 3. Legislation for Effectiveness of Ordinance
The authority to adopt this Ordinance depends in part upon the passage and effectiveness of legislation by the California Legislature to allow for this ordinance to take effect. Such legislation may include, but is not limited to, Assembly Bill 3259 (2024), which was pending in the California Legislature at the time that this Ordinance was submitted to the voters of the City for approval. In the event that voters approve the Sales Tax and, either prior or subsequent to the adoption of this ordinance, the California Legislature approves and the Governor signs
EXHIBIT A
legislation that would allow the Sales Tax, the Sales Tax shall become operative at the earliest dated allowed, consistent with the definition of “operative date” in this Ordinance.
SECTION 4. Adjustment of Appropriations Limit. Pursuant to Article XIIIB of the Constitution of the State of California and applicable laws, the appropriations limit for the City is hereby increased by the aggregate sum authorized to be levied by this tax for fiscal year 2024-25 and each year thereafter.
SECTION 5. Compliance with the California Environmental Quality Act. The approval of this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et seq., “CEQA Guidelines”). This Ordinance imposes a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the Ordinance is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have such effect, the city would undertake the required CEQA review for that particular project. Therefore, pursuant to CEQA Guidelines section 15060, CEQA analysis is not required.
SECTION 6. Severability.
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The People of the City of Pinole hereby declare that they would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.
SECTION 7. Amendment or Repeal.
Chapter 3.32 of the Pinole City Municipal Code may be repealed or amended by the City Council without a vote of the People. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment of any provision that would increase the rate of any tax levied pursuant to this Ordinance. The People of the City of Pinole affirm that the following actions shall not constitute an increase of the rate of a tax:
A. The restoration of the rate of the tax to a rate that is no higher than that set by this Ordinance if the City Council has acted to reduce the rate of the tax; B. An action that interprets or clarifies the methodology of the tax or any definition applicable to the tax so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Ordinance;
EXHIBIT A
C. The establishment of a class of person that is exempt or excepted from the tax or the discontinuation of any such exemption or exception; and, D. The collection of the tax imposed by this Ordinance, even if the City had for some period of time failed to collect the tax.
SECTION 8. Codification.
Upon adoption of this Ordinance pursuant to the voter approval referenced above, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this Ordinance in the Pinole Municipal Code.
SECTION 9. Publication & Effective Date.
This ordinance relates to the levying and collecting of the City transactions and use taxes and shall take effect immediately after the City Council declares the results of the vote at the November 5, 2024 election. Within fifteen (15) days after the passage of this Ordinance the City Clerk shall cause this Ordinance or a summary thereof to be published or to be posted in at least three public places in the City of Pinole in accordance with the requirements of California Government Code Section 36933.
The foregoing ordinance was approved by the following vote of the People of the City of Pinole at an election held on November 5, 2024:
YESES:
NOES:
EXHIBIT A
EXHIBIT A
3.32 Transactions and Use Tax (2024)
3.32.010 Title
3.32.020 Operative Date
3.32.030 Purpose
3.32.040 Contract with State
3.32.050 Transactions Tax Rate
3.32.060 Place of Sale
3.32.070 Use Tax Rate
3.32.080 Adoption of Provisions of State Law
3.32.090 Limitations on Adoption of State Law and Collections of Use Taxes
3.32.100 Permit Not Required
3.32.110 Exemptions and Exclusions
3.32.120 Amendments
3.32.130 Enjoining Collection Forbidden
3.32.140 Amendments by City Council
3.32.150 Annual Audit & Report
3.32.160 Termination Date
3.32.170 Relationship with Existing Transactions and Use Taxes
3.32.010 Title.
This ordinance shall be known as the City of Pinole 2024 Transactions and Use Tax Ordinance.
The City of Pinole hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City.
3.32.020 Operative Date.
"Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below.
3.32.030 Purpose.
This ordinance is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:
A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
EXHIBIT A
B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.
C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.
D. To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance.
3.32.040 Contract with State.
Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
3.32.050 Transactions Tax Rate.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-half of one percent (0.5%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this ordinance.
3.32.060 Place of Sale.
For the purposes of this ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an outof-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
3.32.070 Use Tax Rate.
EXHIBIT A
An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of 0.5% of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.
3.32.080 Adoption of Provisions of State Law.
Except as otherwise provided in this ordinance and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.
3.32.090 Limitations on Adoption of State Law and Collections of Use Taxes.
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:
1. The word "State" is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California;
2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this Ordinance.
3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.
4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.
EXHIBIT A
B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203.
1. “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
3.32.100 Permit Not Required.
If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance.
3.32.110 Exemptions and Exclusions.
A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.
B. There are exempted from the computation of the amount of transactions tax the gross receipts from:
1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.
2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:
a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
EXHIBIT A
b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.
3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:
1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.
2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this ordinance.
4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this ordinance.
5. For the purposes of subparagraphs (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless
EXHIBIT A
the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
7. "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.
D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
3.32.120 Amendments.
All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part
1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this ordinance.
3.32.130 Enjoining Collection Forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this ordinance, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
3.32.140 Amendments by City Council.
Chapter 3.32 of the Pinole Municipal Code may be repealed or amended by the City Council without a vote of the People. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment of any provision that would increase the tax rate or revising the methodology for calculating the tax such that a tax increase would result, or imposing the tax on transactions and uses not previously subject to the tax (unless such amendment occurs automatically by operation of California law). The People of the City of Pinole affirm that the following actions shall not constitute an increase of the rate of a tax:
EXHIBIT A
A. The restoration of the rate of the tax to a rate that is no higher than that set by this Ordinance if the City Council has acted to reduce the rate of the tax; and B. The collection of the tax imposed by this Ordinance, even if the City had for some period of time failed to collect the tax.
3.32.150 Annual Audit & Report.
A. Each year, as part of the audit of the City’s financial statements, the City's independent auditors shall complete a report reviewing the collection, management, and expenditure of revenue from the special tax.
B. Commencing in June 2026, and in June of every year thereafter, as part of the budget process, the provisions of this chapter shall be reviewed and a separate report made to the Council. The report shall contain a summary of the amounts realized, the necessity of the tax and the adequacy of the tax rate. A public hearing shall be held on the report and the Council shall determine whether or not changes to the tax should be made.
3.32.160 Termination Date.
The authority to levy the tax imposed by this ordinance shall continue until repealed by the voters of the City of Pinole.
3.32.170 Relationship with Existing Transactions and Use Taxes The tax imposed by this chapter shall be in addition to the tax imposed by Chapter 3.28 and 3.30 of the Pinole Municipal Code.