Pinole City Council
June 3, 2025

CITY COUNCIL
Cameron Sasai, Mayor
Anthony Tave, Mayor Pro Tem
Norma Martínez-Rubin, Council Member
Devin T. Murphy Council Member
Maureen Toms Council Member

PINOLE CITY COUNCIL

MEETING AGENDA
June 3, 2025
5:00 PM
Attend in Person: PINOLE CITY COUNCIL CHAMBERS - 2131 PEAR STREET OR
Attend VIA ZOOM TELECONFERENCE – Details provided below How to Submit Public Comments:

In Person:

Attend meeting at the Pinole City Council Chambers, fill out a yellow public comment card and submit it to the City Clerk.

Via Zoom:

Members of the public may submit a live remote public comment via Zoom video conferencing. Download the Zoom mobile app from the Apple Appstore or Google Play. If you are using a desktop computer, you can test your connection to Zoom by clicking here. Zoom also allows you to join the meeting by phone.

From a PC, Mac, iPad, iPhone or Android:
https://us02web.zoom.us/j/89335000272
Webinar ID: 893 3500 0272
By phone: +1 (669) 900-6833 or +1 (253) 215-8782 or +1 (346) 248-7799 • Speakers will be asked to provide their name and city of residence, although providing this is not required for participation.
• Each speaker will be afforded up to 3 minutes to speak (subject to modification by the Mayor) • Speakers will be muted until their opportunity to provide public comment.

When the Mayor opens the comment period for the item you wish to speak on, please use the “raise hand” feature (or press *9 if connecting via telephone) which will alert staff that you have a comment to provide and press *6 to unmute. To comment with your video enabled, please let the City Clerk know you would like to turn your camera on once you are called to speak.

Written Comments:

All comments received before 3:00 pm the day of the meeting will be posted on the City’s website on the agenda page (Agenda Page Link) and provided to the City Council prior to the meeting. Written comments will not be read aloud during the meeting. Email comments to [email protected] Please indicate which item on the agenda you are commenting on in the subject line of your email.

City Council
Agenda - June 3, 2025

OTHER WAYS TO WATCH THE MEETING
LIVE ON CHANNEL 26. They are retelecast the following week. The Community TV Channel 26 schedule is published on the city’s website at www.pinole.gov.

VIDEO-STREAMED LIVE ON THE CITY’S WEBSITE, www.pinole.gov and remain archived on the site for five (5) years.

If none of these options are available to you, or you need assistance with public comment, please contact the City Clerk, Heather Bell at (510) 724-8928 or [email protected].

Americans With Disabilities Act: In compliance with the Americans With Disabilities Act of 1990, if you need special assistance to participate in a City Meeting or you need a copy of the agenda, or the agenda packet in an appropriate alternative format, please contact the City Clerk’s Office at (510) 724-8928. Notification at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service.

Note: Staff reports are available for inspection on the City Website at www.pinole.gov. You may also contact the City Clerk via e-mail at [email protected].

Ralph M. Brown Act. Gov. Code § 54950. In enacting this chapter, the Legislature finds and declares that the public commissions, boards and councils and the other public agencies in this State exist to aid in the conduct of the people's business. It is the intent of the law that their actions be taken openly and that their deliberations be conducted openly. The people of this State do not yield their sovereignty to the agencies, which serve them. The people, in delegating authority, do not give their public servants the right to decide what is good for the people to know and what is not good for them to know. The people insist on remaining informed so that they may retain control over the instruments they have created.

City Council
Agenda - June 3, 2025

1. CALL TO ORDER & PLEDGE OF ALLEGIANCE IN HONOR OF THE US MILITARY TROOPS

2. LAND ACKNOWLEDGMENT
Before we begin, we would like to acknowledge the Ohlone people, who are the traditional custodians of this land. We pay our respects to the Ohlone elders, past, present, and future, who call this place, Ohlone Land, the land that Pinole sits upon, their home. We are proud to continue their tradition of coming together and growing as a community. We thank the Ohlone community for their stewardship and support, and we look forward to strengthening our ties as we continue our relationship of mutual respect and understanding.

3. ROLL CALL, CITY CLERK’S REPORT & STATEMENT OF CONFLICT An official who has a conflict must, prior to consideration of the decision: (1) publicly identify in detail the financial interest that causes the conflict; (2) recuse himself /herself from discussing and voting on the matter; and (3) leave the room until after the decision has been made, Cal. Gov't Code § 87105.

4. CONVENE TO A CLOSED SESSION
Citizens may address the Council regarding a Closed Session item prior to the Council adjourning into the Closed Session, by first providing a speaker card to the City Clerk.

A. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Gov. Code § 54957
Title: City Clerk
B. CONFERENCE WITH LABOR NEGOTIATORS
Gov. Code § 54957.6
Agency designated representative: City Attorney, Eric Casher Unrepresented Employee: City Clerk
C. CONFERENCE WITH LABOR NEGOTIATORS
Gov. Code § 54957.6
Agency designated representatives: City Manager, Kelcey Young, City Attorney, Eric Casher, and Human Resources Director, Stacy Shell, Gregory Ramirez, IEDA Employee organizations: AFSCME Local 1, AFSCME Local 512, and the Pinole Police Employees Association (PPEA)

5. RECONVENE IN OPEN SESSION TO ANNOUNCE RESULTS OF CLOSED SESSION

6. CITIZENS TO BE HEARD (Public Comments)
Citizens may speak under any item not listed on the Agenda. The time limit is 3 minutes and is subject to modification by the Mayor. Individuals may not share or offer time to another speaker. Pursuant to provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may direct staff to investigate and/or schedule certain matters for consideration at a future Council meeting. PLEASE SEE THE COVERSHEET OF THE

AGENDA FOR INSTRUCTIONS ON HOW TO SUBMIT PUBLIC COMMENTS

7. REPORTS & COMMUNICATIONS
A. Mayor Report

1. Announcements
B. Mayoral & Council Appointments

City Council
Agenda - June 3, 2025

C. City Council Committee Reports & Communications
D. Council Requests for Future Agenda Items
E. City Manager Report / Department Staff
F. City Attorney Report

8. RECOGNITIONS / PRESENTATIONS / COMMUNITY EVENTS
A. Proclamations

1. Juneteenth

2. Pride Month

3. Philippine Independence Day
B. Presentations
None

9. CONSENT CALENDAR
All matters under the Consent Calendar are considered to be routine and noncontroversial. These items will be enacted by one motion and without discussion. If, however, any interested party or Council member(s) wishes to comment on an item, they may do so before action is taken on the Consent Calendar. Following comments, if a Council member wishes to discuss an item, it will be removed from the Consent Calendar and taken up in order after adoption of the Consent Calendar.

A. Approve the Minutes of the Regular City Council Meeting on May 20, 2025.

B. Receive the May 17, 2025 – May 30, 2025, List of Warrants in the Amount of $855,035.26 and the May 23, 2025, Payroll in the Amount of $528,173.52.

C. Approve Amendment to a Consulting Services Agreement for Employee Benefits Broker of Record Services Action: Adopt Resoution per Staff Recommendation (Stacy Shell) D. FY 2024/25 Third Quarter Financial Report Action: Receive a Report (Markisha Guillory) E. FY 2024/25 Third Quarter Investment Report Action: Receive a Report (Markisha Guillory) F. Amended Reserve Policy Action: Adopt a Resolution per Staff Recommendation (Markisha Guillory)
G. Receive Update on Capital Projects Progress, Inspection and Permits Issuance, and Maintenance Operations Action: Receive update on capital projects progress, conducted inspections and issued permits, and performed maintenance operations. (Heba ElGuindy) H. Approval of Agreement between the City of Pinole and West Valley Construction Company Inc - Roble Avenue Storm Drain Improvements Project (SW2001) Action: Adopt Resolution per Staff Recommendation (Heba El-Guindy)

City Council
Agenda - June 3, 2025

10. PUBLIC HEARINGS
Citizens wishing to speak regarding a Public Hearing item should fill out a speaker card prior to the completion of the presentation, by first providing a speaker card to the City Clerk. An official who engaged in an ex parte communication that is the subject of a Public Hearing must disclose the communication on the record prior to the start of the Public Hearing.

A. 1st Read AB481 Military Use Equipment Action: Conduct Public Hearing and Introduce Ordinance on First Read (Jeremy Crone, Melissa Klawuhn) B. Approval of Increase to Waste Collection Rates (Prop 218) Action: Conduct Public Hearing and Adopt Resolution per Staff Recommendation (Kelcey Young)

11. OLD BUSINESS
A. FY 2025/26 Revised Proposed Operating and Capital Budget Action: Receive a Report (Markisha Guillory)
B. Draft Fiscal Year 2025-26 Baseline Budget and Five-Year Capital Improvement Plan Action:

Review the Draft Fiscal Year (FY) 2025-26 Capital Budget and the Five-Year FY 2025-26 through 2029-30 Capital Improvement Plan (CIP) and direct staff on changes. (Heba ElGuindy)

12. NEW BUSINESS
A. Adopt a Resolution authorizing the City Manager to execute the new solid waste franchise agreement with Richmond Sanitary Service, inc. dba Republic Services and to execute a side letter agreement regarding use of city rate stabilization funds to offset maximum service rates. Action: Adopt resolution per Staff Recommendation (Kelcey Young)

13. CITIZENS TO BE HEARD (Continued from Item 6) (Public Comments) Open only to members of the public who did not speak under the first Citizens to Be Heard, Agenda Item 6 Citizens may speak under any item not listed on the Agenda. The time limit is 3 minutes for City Council items and is subject to modification by the Mayor. Individuals may not share or offer time to another speaker.

Pursuant to provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may direct staff to investigate and/or schedule certain matters for consideration at a future meeting.

14. ADJOURNMENT to the Regular City Council Meeting of June 17, 2025 in Remembrance of Amber Swartz.

I hereby certify under the laws of the State of California that the foregoing Agenda was posted on the bulletin board at the main entrance of Pinole City Hall, 2131 Pear Street Pinole, CA, and on the City’s website, not less than 72 hours prior to the meeting date set forth on this agenda. _______________________
Heather Bell, CMC
City Clerk
POSTED: Thursday, May 29, 2025 at 4:00 pm

CITY COUNCIL
REPORT 9.C.

DATE: JUNE 3, 2025
TO: MAYOR AND COUNCIL MEMBERS
FROM: Stacy Shell, Human Resources Director, 510-741-3864, [email protected] SUBJECT: APPROVE AMENDMENT TO A CONSULTING SERVICES AGREEMENT

FOR EMPLOYEE BENEFITS BROKER OF RECORD SERVICES

RECOMMENDATION
Staff recommends that the City Council authorize the City Manager to extend the term of the agreement for an additional three years and update the scope of services with Alliant Employee Benefits for employee benefits broker of record services effective July 1, 2025, through June 30, 2028.

BACKGROUND
In Fiscal Year 2021–2022, City staff conducted a thorough assessment of the City’s employee benefits program and associated premium rates. As a result of this evaluation, staff identified the need to retain an employee benefits broker of record. The broker’s responsibilities would include negotiating agreements with benefit providers for medical, dental, vision, accidental death and dismemberment (AD&D), and long-term disability insurance; performing annual underwriting analyzes to ensure the City maintains competitive and appropriate premium rates; obtaining liability accounting data necessary to comply with Governmental Accounting Standards Board (GASB) reporting requirements; and supporting employee education and engagement with the City’s benefits offerings.

To address this need, the City issued a Request for Proposals (RFP) for benefits broker services, with submissions due on March 31, 2022. Proposals were evaluated by Human Resources staff on April 4, 2022. Following the evaluation process, on June 7, 2022, the City Council approved a three-year agreement with Alliant Employee Benefits to serve as the City’s broker of record.

In June 2024, staff became aware of a typographical error in Section 1.1 - Terms of Services of the Agreement, which reflected a term of service end date of June 30, 2024. On June 26, 2024, the Agreement was amended to correct the error in Section 1.1 Terms of Services and end services on June 20, 2025.

REVIEW AND ANALYSIS
The current agreement with Alliant Employee Benefits is scheduled to expire on June 30, 2025. To ensure continued support and service continuity, City staff recommends amending the agreement to extend the term for an additional three years, from July 1, 2025, through

June 30, 2028. The proposed amendment will also include updates to Exhibit A – Scope of Services to reflect expanded and enhanced services provided by Alliant Employee Benefits.

FISCAL IMPACT
The fiscal impact is an annual cost of $25,000, or $75,000 for the three-year term of the proposed agreement amendment..

ATTACHMENTS
A. Resolution
B. Amendment #2 (June 2025)
C. Amendment 1 with Resolution (6-26-24)

ATTACHMENT A
RESOLUTION NO. 2025-___

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

CONTRA COSTA, STATE OF CALIFORNIA, APPROVING AN AMENDMENT TO A

CONSULTING SERVICES AGREEMENT FOR EMPLOYEE BENEFITS BROKER OF

RECORD SERVICES WITH ALLIANT EMPLOYEE BENEFITS
WHEREAS, in February 2022, the Human Resources Department requested proposals from benefits brokers and concentrated its review on the consultant’s overall experience in providing professional health and welfare benefits program broker and consulting services, the proposer’s technical response to the Request for Proposal, and cost; and
WHEREAS, City Council of the City of Pinole approved a three-year consulting services agreement for employee benefits broker of record services with Alliant Employee Benefits and authorized the City Manager to execute the said agreement and any changes thereto acceptable to the City Manager and City Attorney effective July 2022; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Pinole approve a three-year term extension and updates to Exhibit A – Scope of Services to the consulting services agreement for employee benefits broker of record services with Alliant Employee Benefits and authorized the City Manager to execute the said amendment and any changes thereto acceptable to the City Manager and City Attorney effective July 2025;
PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 3rd day of June 2025 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 ___ day of ________________ 2025.
______________________________________
Heather Bell
City Clerk

AMENDMENT TO THE

CONSULTING SERVICES AGREEMENT
DATED JULY 1, 2022 BETWEEN
CITY OF PINOLE AND ALLIANT INSURANCE SERVICES, INC.

This second Amendment (“Amendment”) to the three-year Consulting Services Agreement dated July 1, 2022, is made and entered into this ______ day of June, 2025 by and between the City of Pinole (“City”) and Alliant Insurance Services, Inc., an employee benefits broker (“Consultant”), adopted by the Pinole City Council by Resolution (#2022-39), and is effective as of the commencement date of this Amendment.

RECITALS
WHEREAS, on or about July 1, 2022, the City and Consultant entered into a three-year Consulting Services Agreement (“Agreement”) for employee benefits brokerage services that was adopted by Pinole City Council by Resolution (#2022-39); WHEREAS, Section 1.1 of the Agreement provides Term of Services and both parties agree to extend the Agreement for an additional three years; WHEREAS, Exhibit A – Scope of Services of Agreement requires updating of enhanced services provided by Consultant and both parties agree to the updates; WHEREAS, the Parties wish to amend Section 1.1 and Exhibit A on _________________;
THEREFORE, the parties agree to amend the Agreement as follows (deletions in double strikethrough, additions in underlined italics):

1. Section 1.1 of Agreement is hereby amended to read in full as follows:
“Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on June 30, 20285, and Consultant shall complete the work described in Exhibit A by that date, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect the City’s right to terminate the Agreement, as provided for in Section 8.”

2. Exhibit A – Scope of Services of Agreement is hereby amended to read in full as follows:

Included Services
Strategic Planning/Annual Objective Setting/Annual Work Plan Pre-renewing meeting Renewal Meeting (strategy, market update, compliance, etc.)
Renewal Negotiation, Analysis and Recommendations
Renewal Meeting (renewal review, marketing results, etc.) Procurement of Alternative Cost Saving Initiatives and Options

Utilization Review and Trend Analysis analysis (when available) Financial Reporting (when available)
Access to Alliant Proprietary Programs and Exclusive Purchasing Programs
Legislative Compliance Support and Contract Review
Health Care Reform Compliance Resources & Consulting
Contract and Plan Documents Review
Compliance Audit
Attendance, Supportsuport, and Presentationspresentations at Meetingsmeetings as needed
City of PinoleAlliant CA Public Entity Benefits & Perks Survey - Benchmarking Analysis
Alliant Benchmarking for City’s Benefits
Carrier and Vendor Management
Employer & Employee Advocacy and Problem Resolution
Open Enrollment Coordination and Support
Open Enrollment and Communication Planning Meeting
Communications & Employee Engagement – Posters, Flyers, Guide, Videos, etc.…
MyBenefits.Life Mobile Application and WebsiteAlliant Learning Academy Webinars and Events
Wellness Program Consulting & Readiness Assessment
Mineral (formerly ThinkHR)HR Workplace Services Membership (HRWS)
Diversity, Equity, Inclusion & Belonging (DEIB) Consulting and& Review
Wellness Calendar, Resources & Condition Campaigns
Alliant Medicare Solutions (AMS Complimentary)
Alliant Individual Health Solutions (AIHS)
Voluntary Benefits Consulting
Additional Services OfferedNot Otherwise Listed

1. Alliant Technology Consulting – Full Ben-Admin/HRIS system marketing, build, implementation, and oversight Quoted on a project basis

2. LifeBalance – Customized Employee Discount Program $0.60 PEPM

3. FutureSense®, An Alliant Company – Human Capital Management Practice.

Provides people-focused HR, compensation and organization development strategies that improve business performance Quoted on a project basis

4. Alliant Benefit Advocates – Call Center $3.00 PEPM

5. Alliant Medicare Solutions (AMS) Premier $0.50 PEPM

6. Alliant Brio Health Wellness Technology Platform & Program $8,000/year

7. MyBenefits.Life – Website (Mobile Optimized)
for 24/7 access to benefits information $2,500-$5,000 per site per year

8. Alliant Retirement Consulting. Quoted on project basis.

Typically built into your
retirement plans under management.

The Consultant is able to assist the City in evaluating vendors who provide the additional services, not listed above.

Transparency and Disclosure
All compensation the Consultant receives is fully disclosed and transparent.

Consultant will provide the City with an Annual Disclosure letter at the plan renewal upon request.

As an independent consultant, Alliant provides their clients with the choice of joint purchasing solutions as well as options available in the marketplace. Alliant has a separate division within the firm, Alliant Underwriting Services (AUS) that provides Consulting, Underwriting and Program Management Services to a number of Joint Powers Authorities (JPA) and Joint Purchasing Pools throughout the country; this division is separate from Alliant’s Brokerage and Consulting division. AUS receives compensation from carriers for services provided to support the operations and administration of a JPA and/or purchasing pool and is a cost included in the premium.

3. Except as set forth above, each and every provision of the Agreement between the parties shall remain in full force and effect.

CITY OF PINOLE CONSULTANT
By: ___________________________ By: ___________________________

KELCEY YOUNG ERIN THOMAS
City Manager Vice President

Dated: ___________________________ Dated: ___________________________ Approved as to Form: Attest:

By: ___________________________ By: ___________________________ Eric Casher, City Attorney Heather Bell, City Clerk
Dated: ___________________________ Dated: ___________________________

AMENDMENT TO THE

CONSULTING SERVICES AGREEMENT
DATED JULY 1, 2022 BETWEEN
CITY OF PINOLE AND ALLIANT INSURANCE SERVICES, INC.

This first Amendment (“Amendment”) to the three-year Consulting Services Agreement dated July 1, 2022, is made and entered into this 26th day of June, 2024 by and between the City of Pinole (“City”) and Alliant Insurance Services, Inc., an employee benefits broker (“Consultant”), adopted by the Pinole City Council by Resolution (#2022-39), and is effective as of the commencement date of this Amendment.

RECITALS
WHEREAS, on or about July 1, 2022, the City and Consultant entered into a three-year Consulting Services Agreement (“Agreement”) for employee benefits brokerage services that was adopted by Pinole City Council by Resolution (#2022-39); WHEREAS, Section 1.1 of the Agreement provides Term of Services; WHEREAS, the Section reflected an Agreement end date to the three-year Agreement as June 30, 2024 in error;
WHEREAS, the Parties wish to amend Section 1.1 on June 26, 2024; THEREFORE, the parties agree to amend the Agreement as follows (deletions in double strikethrough, additions in underlined italics):

1. Section 1.1 of Agreement is hereby amended to read in full as follows:
“Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on June 30, 20245, and Consultant shall complete the work described in Exhibit A by that date, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect the City’s right to terminate the Agreement, as provided for in Section 8.”

2. Except as set forth above, each and every provision of the Agreement between the parties shall remain in full force and effect.

CITY OF PINOLE CONSULTANT
By: ___________________________ By: ___________________________

NEIL GANG ERIN THOMAS
Interim City Manager Vice President

Dated: ___________________________ Dated: ___________________________ DocuSign Envelope ID: DA9A5747-AD15-4AD3-B998-C81EDD8F96CC 7/2/2024 7/2/2024

Approved as to Form: Attest:

By: ___________________________ By: ___________________________ Eric Casher, City Attorney Heather Bell, City Clerk
Dated: ___________________________ Dated: ___________________________ 5507071.1
DocuSign Envelope ID: DA9A5747-AD15-4AD3-B998-C81EDD8F96CC 7/2/2024 7/8/2024

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CITY COUNCIL
REPORT 9.D.

DATE: JUNE 3, 2025
TO: MAYOR AND COUNCIL MEMBERS
FROM: Markisha Guillory, Finance Director, 510-724-9823, [email protected] SUBJECT: FY 2024/25 THIRD QUARTER FINANCIAL REPORT

RECOMMENDATION
Staff recommend that the City Council receive the Fiscal Year (FY) 2024/25 Third Quarter Financial Report.

BACKGROUND
The quarterly financial report is intended to provide the City Council, City staff and management, and the community a general update on the financial activities and condition of the City.

The City operates on an annual budget cycle. Through the budget, the City Council approves revenue estimates and authorizes City staff to expend the City’s limited financial resources. As one of the many activities that the City undertakes to help ensure its financial soundness, staff provides quarterly financial reports on the City’s budget condition.

The Third Quarter Financial Report (Attachments A and B) covers financial activity through the third quarter of the FY 2024/25, ending March 31, 2025. It provides preliminary year-end results.

REVIEW AND ANALYSIS
At its meeting on June 25, 2024, the City Council adopted the FY 2024/25 Operating and Capital Budget. The FY 2024/25 budget is a status quo budget, meaning that the revenue sources and service and staffing levels included in the budget are similar to those included in the prior year’s budget. The City remains in a stable financial position and is able to fund its operating and capital expenditures through annual, recurring funding sources. The budget does include the use of unassigned fund balance (residual, unrestricted funds) primarily for several one-time, Council-directed initiatives, which is an acceptable use of unrestricted funds.

It is the City’s practice to hold a mid-year budget review each fiscal year. It was held on March 4, 2025. The mid-year budget review involves a detailed analysis of budget-to-actuals from July 1 to December 31 and helps us determine if adjustments to anticipated revenue and planned expenditures are necessary.

At the end of third quarter of the fiscal year most revenues and expenditures are expected to be at 75% of the budget, although this may vary based on the timing of certain receipts and

spending trends. Overall, General Fund revenues and expenditures are on target with budgeted amounts as expected at this point in the fiscal year. Therefore, staff is not recommending any changes to the budget at this time.

The FY 2024/25 budget and actual revenue, expenditures, and estimated beginning and ending fund balance for each City fund is listed in the Financial Summary (Attachment B). The “FY 2024/25 Amended Budget” column in the financial tables reflects the amendments made at mid-year.

Next Steps
The FY 2024/25 Fourth Quarter Financial Report, which will include proposed year-end adjustments, will be presented to the City Council in September 2025.

FISCAL IMPACT
There is no fiscal impact as a result of receiving this report. Staff is not recommending any budget adjustments at this time.

ATTACHMENTS
A. FY 2024-25 Q3 Financial Report
B. FY 2024-25 Q3 Financial Summary by Fund

0 City of
Pinole
Prepared by Finance Department
June 3, 2025
FY 2024/25 Third Quarter
Financial Report

0 This page intentionally blank

FY 2024/25 Third Quarter Financial Report
Table of Contents
1 Table of Contents
Introduction.................................................................................................................................3 General Fund Overview ................................................................................................................4 General Fund Revenue.................................................................................................................6 Sales Tax ..............................................................................................................................7 Property Tax..........................................................................................................................9 Utility Users’ Tax .................................................................................................................10 Intergovernmental Tax.........................................................................................................11 Franchise Tax......................................................................................................................12 Transient Occupancy Tax (TOT) ...........................................................................................13 Business License Tax ..........................................................................................................14 Public Safety Charges .........................................................................................................15 Other Revenue....................................................................................................................16 Transfers In.........................................................................................................................16 General Fund Expenditures ........................................................................................................17 Salaries and Wages.............................................................................................................19 Employee Benefits ..............................................................................................................20 Professional and Administrative Services.............................................................................21 Other Operating Expenses...................................................................................................22 Materials and Supplies........................................................................................................22 Interdepartmental Charges .................................................................................................22 Asset/Capital Outlay...........................................................................................................22 Debt Service .......................................................................................................................22 Transfers Out......................................................................................................................22 Non-General Funds....................................................................................................................23 Special Revenue Funds ..........................................................................................................23 Gas Tax Fund (Fund 200) .....................................................................................................23 Public Safety Augmentation Fund (Fund 203) .......................................................................23 Supplemental Law Enforcement Services Fund (Fund 206)...................................................24 NPDES Storm Water Fund (Fund 207) ..................................................................................24 Recreation Fund (Fund 209) ................................................................................................24 Building and Planning Fund (Fund 212) ................................................................................25 Refuse Management Fund (Fund 213)..................................................................................25

FY 2024/25 Third Quarter Financial Report
Table of Contents
2 Solid Waste Fund (Fund 214)...............................................................................................26 Measure J Fund (Fund 215)..................................................................................................26 Development Growth Impact Fund (Fund 276) .....................................................................26 Housing Assets for Resale Fund (Fund 285)..........................................................................27 Lighting and Landscape District Fund (Fund 310) .................................................................27 Capital Project Funds .............................................................................................................27 City Street Improvement Fund (Fund 325)............................................................................27 Arterial Streets Rehabilitation Fund (Fund 377) ....................................................................28 Enterprise Funds ....................................................................................................................28 Sewer Enterprise Fund (Fund 500) .......................................................................................28 Cable Access TV Fund (Fund 505)........................................................................................28 Information Systems Fund (Fund 525)..................................................................................29 Financial Summary by Fund .......................................................................................................29

FY 2024/25 Third Quarter Financial Report
Introduction
3 Introduction
The quarterly financial report is intended to provide the City Council, City staff and management, and the community a general update on the financial activities and condition of the City.

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

As one of the many activities that the City undertakes to help ensure its financial soundness, staff provides quarterly financial reports on the City’s budget condition.

The Third Quarter Financial Report covers financial activity through the third quarter of the FY 2024/25, July 1, 2024 through March 31, 2025. It also provides projected year-end results.

The City’s full budget document, FY 2024/25 Operating and Capital Budget, and other financial reports, can be found on the City’s website at https://www.pinole.gov/financialreports/.

FY 2024/25 Third Quarter Financial Report
General Fund Overview
4 General Fund Overview
The FY 2024/25 budget is a status quo budget, meaning that the revenue sources and service and staffing levels included in the budget are similar to those included in the prior year’s budget. The City remains in a stable financial position and is able to fund its operating and capital expenditures through annual, recurring funding sources. The budget does include the use of unassigned fund balance (residual, unrestricted funds) primarily for several onetime, Council-directed initiatives, which is an acceptable use of unrestricted funds.

Additionally, the City maintains a separate General Reserve Fund, which is required by the City’s Cash Reserve Policy to maintain a reserve balance equal to 50% of total ongoing General Fund operating expenditures. To close the budget gap for FY 2024/25, the City Council approved a one-time transfer of $843,790 from the General Reserve to balance the budget. The General Reserve fund balance will be approximately $9.9 million after the transfer is processed, which is approximately 42% of total ongoing General Fund operating expenditures.

At its meeting on June 25, 2024, the City Council adopted the FY 2024/25 budget, which included the use of the General Fund’s unassigned fund balance to fund several Councildirected initiatives as well as several capital improvement projects. The FY 2024/25 adopted budget includes the use of General Fund (including Measure S 2006 and 2014) unassigned fund balance for a net deficit of $9 million.

During the FY 2024/25 mid-year budget review (second quarter), the City Council adopted budget amendments, bringing total General Fund revenues to $28.7 million, total General Fund expenditures to $37.2 million, resulting in a net use of fund balance of $8.6 million.

The majority of the use of fund balance is for several large, multi-year capital improvement projects. It is important to note that the total estimated costs of capital projects are budgeted in year one (FY 2024/25) of the Capital Improvement Plan (CIP) although some projects may take several years to complete. The total costs are budgeted up front to earmark the full amount of funding needed to complete the CIP projects. An itemized list of the capital projects funded by the General Fund unassigned fund balance can be found on page 7 of the FY 2024/25 Operating and Capital Budget: https://www.pinole.gov/wpcontent/uploads/2024/08/Budget-for-FY2024-2025.pdf.

At this point, the City is projecting to end FY 2024/25 with a net deficit of $2.3 million, with total revenues projected at $28.7 million and expenditures at $31.1 million, and an estimated ending fund balance of $5.7 million. The table below summarizes the General Fund budget to actuals through the third quarter.

FY 2024/25 Third Quarter Financial Report
General Fund Overview
5 Since the third quarter represents 75% of the fiscal year, it is expected that actual revenues and actual expenditures will be around 75% of budget. However, this may vary depending on the timing of certain receipts (e.g., property tax) and disbursements (e.g., debt payments).

General Fund (including
Measure S 2006 and 2014, and
Measure I 2024)
FY 2024/25
Original
Budget
FY 2024/25
Revised
Budget
Proposed
Adjustment
s
FY 2024/25
Amended
Budget
FY 2024/25
YTD Actuals
w/ Encumb.
% of
Amended
Budget
Projected
Year-End
Revenues $ 28,219,433 $ 28,664,114 $ - $ 28,664,114 $ 15,918,136 56% $ 28,761,003 Expenditures 37,215,683 37,227,311 - 37,227,311 22,711,954 61% 31,067,311 Net surplus/deficit (8,996,250) (8,563,197) - (8,563,197) $ (6,793,817) (2,306,308) Beginning Fund Balance 7,978,729 7,978,729 7,978,729 7,978,729 Ending Fund Balance $ (1,017,521) $ (584,468) $ (584,468) $ 5,672,420 Page 62 of 764 FY 2024/25 Third Quarter Financial Report
General Fund Revenue
6 General Fund Revenue
The City Council authorized revenues in the amount of $28,219,433 in the original FY 2024/25 General Fund budget, including Measure S 2006 and 2014. The budget was amended to $28,664,114 at mid-year, with the most significant increase being attributable to the new half-cent sales tax (Measure I) which is expected to generate $600,000 for FY 2024/25. General Fund actual revenues through the third quarter of FY 2024/25 totaled $15,918,136, which is 56% of the budget. This is slightly under (3%) actual revenue received in the third quarter of prior fiscal years. However, it’s due to the authorized budget for Measure I revenue which becomes effective 4/1/25. The table below summarizes General Fund revenue activity through the third quarter.

Staff is not recommending budget adjustments for the third quarter of FY2024/25.

The following section describes each revenue category and provides historical trend information as well as financial activity for the third quarter of FY 2024/25.

Category FY 2024/25
Original
Budget
FY 2024/25
Revised
Budget
Proposed
Adjustment
s
FY 2024/25
Amended
Budget
FY 2024/25
YTD Actuals
% of Amended
Budget
Projected
Year-End
Property Taxes $ 6,168,067 $ 6,168,067 $ - $ 6,168,067 $ 3,283,712 53% $ 6,168,067 Sales and Use Taxes 4,536,436 4,459,156 - 4,459,156 2,898,866 65% 4,459,156 Sales and Use Taxes - Measure S 2006 2,581,000 2,550,000 - 2,550,000 1,590,728 62% 2,550,000 Sales and Use Taxes - Measure S 2014 2,581,000 2,550,000 - 2,550,000 1,584,359 62% 2,550,000 Sales and Use Taxes - Measure I 2024 - 600,000 - 600,000 - 0% 600,000 Utility Users Tax 2,285,000 2,285,000 - 2,285,000 2,045,450 90% 2,285,000 Franchise Taxes 850,000 850,000 - 850,000 454,338 53% 850,000 Other Taxes: TOT 460,000 400,000 - 400,000 225,787 56% 400,000 Other Taxes: Business License 464,599 464,599 - 464,599 457,771 99% 464,599 Intergovernmental Taxes 2,402,673 2,402,673 - 2,402,673 1,217,510 51% 2,402,673 Public Safety Charges 1,774,307 1,774,307 - 1,774,307 1,502,583 85% 1,774,307 Total Other Revenue 847,561 891,522 - 891,522 657,030 74% 988,411 Revenue Total: 24,950,643 25,395,324 - 25,395,324 15,918,136 63% 25,492,213 Transfer In from Section 115 Trust 2,425,000 2,425,000 2,425,000 - 0% 2,425,000 Transfer In from General Reserve 843,790 843,790 843,790 - 0% 843,790 Revenue/Sources Total: $ 28,219,433 $ 28,664,114 $ - $ 28,664,114 $ 15,918,136 56% $28,761,003 Page 63 of 764 FY 2024/25 Third Quarter Financial Report
General Fund Revenue
7 Sales Tax
Sales tax is the City’s largest general revenue stream at 34% of total General Fund revenues.

Through the third quarter, sales tax revenue collected through February was $6,073,954, 64% of the budget. There is typically a two-month delay in the timing of sales tax receipts.

The receipts are consistent with revenue received for the same time period in previous fiscal years.

City staff meets with the sales tax consultant, HdL, quarterly to get updates on the previous quarter’s sales tax performance. Highlights from the last quarterly sales tax update for the period October through December 2024 were:
• Overall sales tax receipts were up 4.1% compared to the same period in 2023; • A new outlet in general consumer goods is the reason for positive results for the group; otherwise, the group would have been down consistent with the statewide results, which were down 2%;
• Restaurants’ results were mixed with openings in the fast-casual category and gains in the quick-service restaurants pushing the group positive; casual dining was down; • Lower receipts at the pump resulted in slowing receipts for the service stations; • The City’s voter-approved transaction taxes were impacted by over the counter transactions discussed above, but locals purchasing fewer vehicles and one-time allocations in the comparable year led to negative results; • Taxable sales for all of Contra Costa County declined 3.2% over the comparable time period; the Bay Area was down 0.5%.

HdL provided updated sales tax projections for FY 2024/25. We expect to receive $139,280 less than originally budgeted. However, the decrease will be partially offset by an additional $600,000 that we expect to receive from new local sales tax (Measure I), which was passed by voters in the November 2024 election. The $600,000 represents one quarter of the new revenue since Measure I goes into effect on April 1, 2025.

FY 2024/25 Third Quarter Financial Report
General Fund Revenue
8 FY 2020/21
Actual
FY 2021/22
Actual
FY 2022/23
Actual
FY 2023/24
Actual
FY 2024/25
YTD Actual
FY 2024/25
Amended
Budget
Total 8,928,361 9,613,625 9,328,351 9,430,219 3,590,669 10,159,156 Q4 2,427,536 2,322,856 2,307,279 2,425,993
Q3 2,006,633 2,428,400 2,387,064 2,360,669
Q2 2,272,917 2,502,822 2,341,406 2,338,691 1,455,878
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000

FY 2024/25 Third Quarter Financial Report
General Fund Revenue
9 Property Tax
Property tax is the City’s second largest revenue stream at 22% of total General Fund revenues. It is comprised of four segments – secured, unsecured, supplemental, and transfer tax. The largest segment is secured property tax. It is received in three installments in December (55%), April (40%), and June of each year (5%). Secured property tax revenue includes the basic 1% property tax and the Redevelopment Property Tax Trust Fund (RPTTF).

This is revenue that has resulted from the dissolution of the former Pinole Redevelopment Agency and represents the shift from the Agency receiving tax increment revenue to the various taxing entities receiving the tax revenue. The RPTTF revenue will convert to “normal” property tax revenue this fiscal year as all of the former Agency’s outstanding debt is paid off and the Successor Agency is formally dissolved. Through the third quarter, revenue collected was $3,283,712, 53% of budget.

Between January 1, 2025 and March 31, 2025, there were 32 single family residential sales in Pinole. The average price was $737,938 and the median price was $773,250, representing a 10.4% increase in the median price compared to the prior quarter and a 5.9% increase compared to the same time period in 2024.

FY 2024/25 Third Quarter Financial Report
General Fund Revenue
10 Utility Users’ Tax
Utility Users’ Tax (UUT) of 8% is levied on telecommunication, electricity, gas, and mobile telephones. Through the third quarter, UUT revenue collected was $2,045,450, 90% of the budget. The amount collected is consistent with the timing of receipts.

FY 2020/21
Actual
FY 2021/22
Actual
FY 2022/23
Actual
FY 2023/24
Actual
FY 2024/25
YTD Actual
FY 2024/25
Budget
Total 1,938,422 2,063,773 2,312,830 2,445,715 1,282,245 2,285,000 Q4 442,236 471,356 572,657 581,069
Q3 556,691 622,765 699,442 714,965
Q2 491,940 493,892 520,972 596,338 637,672
Q1 447,554 475,760 519,759 553,343 644,573
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000

FY 2024/25 Third Quarter Financial Report
General Fund Revenue
11 Intergovernmental Tax
Intergovernmental Tax is comprised of the Motor Vehicle License Fee (VLF), which is the City’s share of motor vehicle license fees levied, collected, and apportioned by the State.

This category also includes the Homeowners Property Tax Relief, which is a reimbursement from the State to offset loss of property tax for the state-imposed homeowner exemption.

Through the third quarter, the first half of the allocation and the FY2023/24 excess were received in the amount of $1,217,510. The second half will be received in June.

FY 2024/25 Third Quarter Financial Report
General Fund Revenue
12 Franchise Tax
Franchise Tax is levied on gas (1%), electricity (2%), cable (5%), and refuse (10%). Through the third quarter, revenue collected was $454,338, 53% of the budget. The amount collected is consistent with the timing of receipts.

FY 2020/21
Actual
FY 2021/22
Actual
FY 2022/23
Actual
FY 2023/24
Actual
FY 2024/25
YTD Actual
FY 2024/25
Budget
Total 751,598 788,146 813,494 901,208 454,338 850,000
Q4 145,103 332,661 322,641 402,957
Q3 150,062 157,804 165,387 167,826 118,154
Q2 308,525 149,190 162,326 167,133 169,109
Q1 147,908 148,492 163,140 163,292 167,075
$-
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000

FY 2024/25 Third Quarter Financial Report
General Fund Revenue
13 Transient Occupancy Tax (TOT)
Transient Occupancy Tax (TOT), also known as the “hotel tax,” is levied at 10% on persons staying 30 days or less in a motel or lodging facility within City limits. Through the third quarter, revenue collected was $225,787, 56% of the amended budget.

FY 2024/25 Third Quarter Financial Report
General Fund Revenue
14 Business License Tax
Business License Tax is assessed on all businesses doing business within City limits.

Through the third quarter, revenue collected was $457,771, 99% of the budget. The bulk of this revenue is typically received in December and January during the annual business license renewal.

FY 2020/21
Actual
FY 2021/22
Actual
FY 2022/23
Actual
FY 2023/24
Actual
FY 2024/25
YTD Actual
FY 2024/25
Budget
Total 349,733 441,779 438,329 464,672 457,771 460,000
Q4 9,878 38,852 42,421 34,119
Q3 201,190 223,061 287,509 263,646 294,264
Q2 127,710 135,421 86,522 145,533 140,849
Q1 10,956 44,445 21,876 21,374 22,658
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000

FY 2024/25 Third Quarter Financial Report
General Fund Revenue
15 Public Safety Charges
Public safety charges are received for dispatch services provided to the cities of Hercules and San Pablo under an Intergovernmental Service Sharing agreement. The revenue is received on a quarterly basis. Through the third quarter, $1,502,583, or 85% of the budget, was collected.

FY 2024/25 Third Quarter Financial Report
General Fund Revenue
16 Other Revenue
Other revenue includes permits, fees, fines and forfeitures, rental income, proceeds from the sale of property, investment income, and grants. All revenues in this category totaled $657,030, 74% of the budget.

Transfers In
The transfer in comes from the Section 115 Trust to offset the increase in pension costs in the General Fund. For FY 2024/25, $2,425,000 is budgeted, but the actual amount of the transfer will be based on total expenditures at year-end.

Also, the City Council approved a one-time transfer of $843,790 to the General Fund from the General Reserve to balance the budget for FY 2024/25. The transfer will be made later in the fiscal year.

FY 2024/25 Third Quarter Financial Report
General Fund Expenditures
17 General Fund Expenditures
The City Council authorized expenditures in the amount of $37,215,683 in the original FY 2024/25 General Fund budget. During the second quarter the General Fund expenditures budget was revised to $37,227,311. General Fund actual expenditures plus encumbrances through the third quarter of totaled $22,711,954, 61% of the amended budget. The tables below summarize General Fund expenditure activity through the third quarter.

Actual expenditures in most departments were at or below 75%. Those that were above 75% are discussed below.
• Several departments, including City Clerk, Finance, and Human Resources were slightly over 75% due to the workers compensation and general liability annual premiums being paid in full at the beginning of the fiscal year. • City Attorney expenditures were at 104% of budget due to the time lag in reimbursements (credits) from other City departments for legal services.

Reimbursements are processed in the month following the end of each quarter. • Non-Departmental expenditures were at 103% due to the annual debt payment for 2006 pension obligation bonds which was paid in full at the beginning of the fiscal year, operating subsidies being transferred to Recreation and PCTV, and contributions to the Equipment Replacement Fund, and the City Street Improvement and Arterial Streets Rehabilitation Funds.

Department FY 2024/25
Original
Budget
FY 2024/25
Revised
Budget
Proposed
Adjustment
s
FY 2024/25
Amended
Budget
FY 2024/25
YTD Actuals
w/ Encumb.
% of
Amended
Budget
Projected
Year-End
City Council $ 202,339 $ 241,089 $ - $ 241,089 $ 115,342 48% $ 241,089 City Manager 683,857 683,431 - 683,431 440,359 64% 683,431 City Clerk 717,294 731,224 - 731,224 567,190 78% 731,224 City Treasurer 10,148 10,148 - 10,148 7,473 74% 10,148
City Attorney 297,031 297,031 - 297,031 309,335 104% 297,031 Finance Department 971,117 974,117 - 974,117 792,390 81% 974,117 Human Resources 888,867 925,991 - 925,991 709,625 77% 925,991 Non-Departmental 3,257,051 3,257,051 - 3,257,051 3,363,273 103% 3,257,051 Police Department 12,358,037 12,354,609 - 12,354,609 9,001,562 73% 12,354,609 Fire Department 6,433,461 6,433,461 - 6,433,461 4,780,945 74% 6,433,461 Public Works 10,368,528 10,258,988 - 10,258,988 2,003,990 20% 4,098,988 Community Development 585,788 600,338 - 600,338 414,160 69% 600,338 Community Services 442,165 459,833 - 459,833 206,311 45% 459,833 Expenditure Total: $ 37,215,683 $ 37,227,311 $ - $ 37,227,311 $ 22,711,954 61% $ 31,067,311 Page 74 of 764 FY 2024/25 Third Quarter Financial Report
General Fund Expenditures
18 Actuals in most of the expenditure categories were at or below 75%. Those that were above 75% are discussed below.
• Benefits were at 78% of budget primarily due to the workers’ compensation annual premium being paid in full at the beginning of the fiscal year. • Other operating, or utilities, was at 94% but fluctuates throughout the fiscal year. • Debt service was at 100% due to the annual payment being paid in full at the beginning of the fiscal year.

The following section describes each expenditure category and provides historical trend information as well as financial activity through the third quarter of FY 2024/25.

Category FY 2024/25
Original
Budget
FY 2024/25
Revised
Budget
Proposed
Adjustment
s
FY 2024/25
Amended
Budget
FY 2024/25
YTD Actuals
w/ Encumb.
% of
Amended
Budget
Projected
Year-End
Salaries & Wages $ 10,343,285 $ 10,331,587 $ 10,331,587 $ 7,669,276 74% $10,331,587 Benefits 7,399,988 7,399,988 7,399,988 5,756,732 78% $ 7,399,988 Professional/Admin Services 9,482,105 9,708,533 9,708,533 6,551,130 67% $ 9,708,533 Other Operating 322,711 322,711 322,711 302,536 94% $ 322,711 Materials and Supplies 185,033 185,033 185,033 106,955 58% $ 185,033 Interdepartmental Charges (719,548) (690,318) (690,318) (97,967) 14% $ (690,318) Asset/Capital Outlay 8,004,702 7,772,370 7,772,370 406,100 5% $ 1,612,370 Debt Service 636,107 636,107 636,107 636,015 100% $ 636,107 Transfers Out 1,561,300 1,561,300 1,561,300 1,381,177 88% $ 1,561,300 Expenditure Total: $ 37,215,683 $ 37,227,311 $ - $ 37,227,311 $ 22,711,954 61% $31,067,311 Page 75 of 764 FY 2024/25 Third Quarter Financial Report
General Fund Expenditures
19 Salaries and Wages
The FY 2024/25 budget includes salaries and wages based on the City’s staffing level of 113.14 full-time equivalents (FTEs), salary increases for different classifications already agreed upon in the City’s current labor memorandums of understanding (MOUs). The budget includes a savings factor equal to 3% of total annual salary and benefits expenditures to account for savings resulting from position vacancies. Through the third quarter, salaries and wages were $7,669,276, 74% of budget.

FY 2024/25 Third Quarter Financial Report
General Fund Expenditures
20 Employee Benefits
The cost of retirement benefits is the City’s annual required contribution for employees’ pension to the California Public Employees’ Retirement System (CalPERS). The City’s annual required contribution is determined by an annual actuarial valuation report, the most recent of which is as of July 2023. The budget reflects the net cost to the City (the required total contribution minus the employee contributions). All classic employees currently contribute the required employee contribution plus a portion of the employer’s contribution for a total of 15%.

Other benefits include employee medical/dental/vision care, workers’ compensation, and others. The benefits cost in the forecast is based primarily trends and information provided by service providers. Through the third quarter, benefits were $5,756,732, 78% of the budget.

As previously stated, the slight overage is primarily attributable to the workers’ compensation and general liability annual premiums being paid in full at the beginning of the fiscal year.

FY 2024/25 Third Quarter Financial Report
General Fund Expenditures
21 Professional and Administrative Services
Professional and administrative services include consulting services, legal services, temporary services, network and software maintenance, and equipment and building maintenance. Contract services with other government agencies, such as the County animal services and library services, are also included in professional services. This category is primarily projected based on contractual obligations and historical trends.

Through the third quarter, professional and administrative services were $6,783,810, 70% of the budget.

This category also includes the City’s fire services agreement with the Contra Costa County Fire Protection District (CCCFPD) to provide fire protection services to Pinole residents. For FY 2024/25, the cost is $5.7 million per the approved five-year agreement. The monthly contract costs are included in the actuals shown below.

FY 2024/25 Third Quarter Financial Report
General Fund Expenditures
22 Other Operating Expenses
Other operating expenses include all other expenditure categories, such as travel/training, office expenses, and utilities. Through the third quarter, expenditures including encumbrances were $302,536, 94% of the budget.

Materials and Supplies
Materials and supplies include fuel, supplies, and maintenance materials. Through the third quarter, expenditures were $106,955, 58% of the budget.

Interdepartmental Charges
Interdepartmental charges include indirect costs for personnel costs allocated to other funds, information systems, legal charges, and general liability. Through the third quarter, expenditures were -$97,967. This was due to the general liability premium being paid in full at the beginning of the fiscal year.

Asset/Capital Outlay
Asset/capital outlay includes non-major asset acquisition and improvements, such as computer equipment and furniture, as well as several major capital projects to be funded by the General Fund unassigned fund balance. Through the third quarter, asset/capital outlay expenditures were $686,700, 9% of the budget.

Each fiscal year, capital needs are assessed and prioritized through the CIP planning process. Capital improvement projects are detailed in a separate Five-Year Capital Improvement Plan (CIP): https://www.pinole.gov/wp-content/uploads/2024/08/FinalProposed-FY-2024-45-through-2028-29-CIP-6-18-24.pdf.

Debt Service
Debt service includes the payment of debt for the 2006 pension obligation bonds (POBs) that were issued to finance the City’s unfunded accrued actuarial liability with CalPERS. This category was at 100% of the revised budget due to the debt payment being paid in full at the beginning of the fiscal year.

Transfers Out
Transfers out includes the transfers from the General Fund and Measure S to other funds to support Recreation programs, Pinole Community Television (PCTV), vehicle and equipment replacement. Transfers were $1,381,177, 57% of budget, due to the transfer of funds from the general fund to City Street Fund ($250,000), Arterial Streets Rehabilitation Fund ($250,000), Recreation Fund ($571,177), PCTV fund ($160,000) and Equipment Reserve Fund ($150,000). The remaining transfers will be processed at the end of the fiscal year.

FY 2024/25 Third Quarter Financial Report
Non-General Funds
23 Non-General Funds
The following analysis provides explanations of the financial activity for select non-general funds.

Since the third quarter represents 75% of the fiscal year, it is expected that actual revenues and actual expenditures will be around 75% of budget. However, this may vary depending on the timing of certain receipts and disbursements. Also, these funds include capital improvement projects which may take several fiscal years to be completed.

Special Revenue Funds
Gas Tax Fund (Fund 200)
The Gas Tax Fund accounts for revenue from State excise taxes on gasoline and diesel fuel sales (referred to as the Highway Users Tax Account (HUTA)) as well as revenue from the Road Repair and Accountability Act of 2017 (SB1) (referred to as the Road Maintenance and Rehabilitation Account (RMRA)). Gas Tax Fund resources are restricted for use in the construction and maintenance of public streets. These funds support both annual operating and capital projects. Through the third quarter, revenues were $860,251, 82% of the budget.

Expenditures including encumbrances were $368,758, 17% of the budget. Actual expenditures were low due to the timing of budgeted capital projects.

Public Safety Augmentation Fund (Fund 203)
The Public Safety Augmentation Fund (PSAF) accounts for monies allocated by the County Auditor-Controller under Proposition 172 from the statewide 0.5% sales tax based on a share of statewide taxable sales. These funds are used for public safety personnel costs and safety equipment purchases. Through the third quarter, revenues were $160,799, 64% of the budget. There is typically a one-month delay in receiving the funds for the previous month. Expenditures were $353,979, 65% of the budget.

FY 2024/25 Third Quarter Financial Report
Non-General Funds
24 Supplemental Law Enforcement Services Fund (Fund 206) The Supplemental Law Enforcement Services Fund (SLESF) accounts for funds received from the County under AB 3229, which enacted the Citizens Option for Public Safety (COPS) Program, through which the City receives $100,000 annually. In addition to the $100,000 annual payment, the City receives a Growth Allocation payment. The funds are used for officer personnel costs and safety equipment purchases. Through the third quarter, revenues were $204,289, 117% of the budget. Expenditures were $213,680, 72% of the budget.

NPDES Storm Water Fund (Fund 207)
The NPDES Storm Water Fund accounts for assessments collected by the County via property tax bills and provided to the City for stormwater programs pursuant to the National Pollutant Discharge Elimination System (NPDES) regulations, a federally mandated program. Assessments are levied at $35 per Equivalent Runoff Unit (ERU). Revenues are received in December, April, and June through property tax assessments. Through the third quarter, expenditures were $373,081, 98% of the budget. The overage was attributable to one-time costs for the storm drain master plan and project management support.

Recreation Fund (Fund 209)
The Recreation Department Fund accounts for funds received from fees for participation in recreational programs. While the recreation programs of the Community Services Department have operated on a limited basis in some areas, program participation and facility rentals are starting to increase. Through the third quarter, program revenues were $566,689, 83% of the amended budget. With the General Fund operating subsidy, revenues

FY 2024/25 Third Quarter Financial Report
Non-General Funds
25 were $1,137,866, 79% of the budget. Expenditures were $1,727,335, 66% of the budget.

Community Services received a $167,050 contribution from the West Contra Costa Youth Soccer League to renovate the soccer field and a $10,000 contribution to go toward youth programs. These amounts are reflected in the amended budget and actuals.

Building and Planning Fund (Fund 212)
The Building & Planning Fund accounts for funds received from fees and permits for building and planning services. Fees are collected to recover the cost primarily related to inspections and plan checks performed. Through the third quarter, revenues were $1,398,481, 101% of the budget. Expenditures were $1,474,005, 69% of the budget. The overage in revenue is mainly attributable to a $350,000 grant received for Energy Resources Conservation.

Refuse Management Fund (Fund 213)
The Refuse Management Fund accounts for resources received from the City’s franchise waste hauler, Republic Services, from a monthly fee imposed under AB 939 on all residential customers in Pinole. These revenues are restricted to programs and activities that promote recycling of solid waste and source reduction. Through the third quarter, revenues were $51,554, 78% of the budget. Expenditures were $104,235, 56% of the budget.

FY 2024/25 Third Quarter Financial Report
Non-General Funds
26 Solid Waste Fund (Fund 214)
The Solid Waste Fund accounts for funds received from Republic Services from a monthly fee it assesses on customer rates for solid waste services. These funds are set aside for future solid waste capital projects and for a rate stabilization fund. Revenues are received on a quarterly basis and the first installment is typically received in October. Through the third quarter, revenues were $332,624, 90% of the budget. Expenditures were $80,484, 46% of the budget.

Measure J Fund (Fund 215)
The Measure J Fund accounts for special sales tax revenues collected by the Contra Costa Transportation Authority (CCTA) and reapportioned to the cities for local street projects. The City must submit a checklist each year to confirm compliance with a Growth Management Program in order to receive these funds. Estimates of annual funding are provided by the CCTA, and jurisdiction allocations are based on a formula that considers both population and road mileage. Additionally, the fund accounts for funds received from State grants, including the Transportation Land-Use Connections (TLC) grant, One Bay Area Grant (OBAG), and Highway Safety Improvement Program (HSIP) grant. Through the third quarter, revenues were $619,274, 54% of the budget. Expenditures were $196,636, 12% of the budget. Actual expenditures align with the timing of capital projects.

Development Growth Impact Fund (Fund 276)
The Growth Impact Fund accounts for development fees collected to mitigate the impact of new development. Specifically, it provides for the expansion, design, construction, or upgrade to facilities, roadways, and equipment. The City collects impact fees for police, fire protection, municipal, community, wastewater, roadways, and drainage. Through the third quarter, impact fee revenue from interest was $112,978. The capital projects budgeted will be funded by the available fund balance.

FY 2024/25 Third Quarter Financial Report
Non-General Funds
27 Housing Assets for Resale Fund (Fund 285)
The Housing Assets for Resale Fund accounts for activities associated with administering housing programs of the former Pinole Redevelopment Agency, use of Housing Set Aside funds, and the provision of affordable housing within the community. Through the third quarter, revenue from interest was $111,268, 202% of the budget. Expenditures were $144,250, 45% of the budget.

Lighting and Landscape District Fund (Fund 310)
The Lighting and Landscape District Fund accounts for assessments to property owners to maintain median lighting and landscaping within the Pinole Valley Road North and South areas. Revenue is received in December, April, and June with property tax payments.

Through the third quarter, revenue was $32,758, 51% of the budget. Expenditures were $17,231, 20% of the budget.

Capital Project Funds
City Street Improvement Fund (Fund 325)
The City Street Improvements Fund accounts for an annual $250,000 transfer from Measure S 2014 for street improvement projects. Additionally, it accounts for funds received from various grants, including the Highway Bridge Program (HBP) grant, Strategic Management Planning Program (STMP) grant, and Transportation Development Act (TDA) grant. Grant revenue is received on a reimbursement basis, after expenditures are incurred. Through the third quarter, revenues were $423,152 (including the General Fund transfer), 20% of the

FY 2024/25 Third Quarter Financial Report
Non-General Funds
28 budget. Expenditures were $168,443, 5% of the budget. Actual expenditures are low due to the timing of capital projects.

Arterial Streets Rehabilitation Fund (Fund 377)
The Arterial Streets Rehabilitation Fund accounts for an annual $250,000 transfer from Measure S 2014 for street rehabilitation projects. Through the third quarter, revenue was $250,000 which was the transfer in from the General Fund. There were no expenditures.

Enterprise Funds
Sewer Enterprise Fund (Fund 500)
The Sewer Enterprise Fund accounts for fees charged to residents and businesses for sewer utilities. Fees are used to operate the Pinole-Hercules Wastewater Treatment Plant, which serves the Pinole and Hercules areas. Hercules remits payment for services to Pinole on a monthly basis. Revenue from charges for services are received with the property tax assessments in December, April, and June. Through the third quarter, revenues were $5,910,282, 57% of the budget. Expenditures were $7,973,840, 21% of the budget. Actual expenditures are low due to the timing of capital projects.

Cable Access TV Fund (Fund 505)
The Cable Access TV Fund accounts for revenue received from cable franchise fees, video production and broadcast charges, and Public, Educational, and Governmental (PEG) access fees. PEG access fees are designated for equipment purchases. Transfers from the General Fund also help support the operating costs. Revenues are generally received on a

FY 2024/25 Third Quarter Financial Report
Non-General Funds
29 quarterly basis. Through the third quarter, revenues were $265,381, 72% of the budget.

Expenditures were $426,746, 57% of the budget.

Information Systems Fund (Fund 525)
The Information Systems Fund is an internal service fund used to account for activities that provide technology goods or services to other City funds and departments on a costreimbursement basis. Through the third quarter, expenditures and reimbursements were $1,149,955, 72% of the budget.

Financial Summary by Fund
The Third Quarter Financial Summary by Fund (Attachment B) summarizes all City funds’ revenues, expenditures, and estimated beginning and ending fund balances. It includes preliminary year-end financial results.

Projected
Year-End
6,168,067 6,168,067 6,168,067 3,283,712 3,283,712 (2,884,355) 53% 6,168,067 4,536,436 4,459,156 4,459,156 2,898,866 2,898,866 (1,560,290) 65% 4,459,156 2,581,000 2,550,000 2,550,000 1,590,728 1,590,728 (959,272) 62% 2,550,000 2,581,000 2,550,000 2,550,000 1,584,359 1,584,359 (965,641) 62% 2,550,000 - 600,000 600,000 - - (600,000) 0% 600,000
2,285,000 2,285,000 2,285,000 2,045,450 2,045,450 (239,550) 90% 2,285,000 850,000 850,000 850,000 454,338 454,338 (395,662) 53% 850,000 924,599 864,599 864,599 683,558 683,558 (181,041) 79% 864,599 460,000 400,000 400,000 225,787 225,787 (174,213) 56% 400,000 464,599 464,599 464,599 457,771 457,771 (6,828) 99% 464,599 2,402,673 2,402,673 2,402,673 1,217,510 1,217,510 (1,185,163) 51% 2,402,673 - 33,461 33,461 37,653 37,653 4,192 113% 37,653
95,882 95,882 95,882 103,635 103,635 7,753 108% 103,635 47,025 47,025 47,025 1,000 1,000 (46,025) 2% 47,025
251,700 251,700 251,700 236,201 236,201 (15,499) 94% 251,700 25,500 25,500 25,500 847 847 (24,653) 3% 25,500
65,854 65,854 65,854 89,478 89,478 23,624 136% 89,478
47,000 47,000 47,000 18,916 18,916 (28,084) 40% 47,000
15,550 26,050 26,050 27,919 27,919 1,869 107% 27,919
1,774,307 1,774,307 1,774,307 1,502,583 1,502,583 (271,724) 85% 1,774,307 200,000 200,000 200,000 (1,645) (1,645) (201,645) -1% 200,000 81,450 81,450 81,450 65,975 65,975 (15,476) 81% 81,450
11,500 11,500 11,500 69,196 69,196 57,696 602% 69,196
5,100 5,100 5,100 6,690 6,690 1,590 131% 6,690
1,000 1,000 1,000 1,165 1,165 165 116% 1,165
24,950,643 25,395,324 - 25,395,324 15,918,136 - 15,918,136 (9,477,188) 63% 25,492,213 2,425,000 2,425,000 - 2,425,000 - - (2,425,000) 0% 2,425,000 843,790 843,790 - 843,790 - - (843,790) 0% 843,790
28,219,433 28,664,114 - 28,664,114 15,918,136 - 15,918,136 (12,745,978) 56% 28,761,003 202,339 241,089 241,089 115,342 115,342 125,747 48% 241,089 683,857 683,431 683,431 440,359 440,359 243,072 64% 683,431 717,294 731,224 731,224 567,190 567,190 164,034 78% 731,224 10,148 10,148 10,148 7,473 7,473 2,675 74% 10,148
297,031 297,031 297,031 309,335 309,335 (12,304) 104% 297,031 581,131 581,131 581,131 401,959 401,959 179,172 69% 581,131 (284,100) (284,100) (284,100) (92,623) (92,623) (191,477) 33% (284,100) 966,217 969,217 969,217 791,370 791,370 177,847 82% 969,217 888,867 925,991 925,991 709,625 709,625 216,366 77% 925,991 1,059,644 1,059,644 1,059,644 1,346,081 1,346,081 (286,437) 127% 1,059,644 4,825,397 4,917,775 - 4,917,775 4,286,775 - 4,286,775 631,000 87% 4,917,775 6,952,098 6,929,440 6,929,440 5,216,851 5,216,851 1,712,589 75% 6,929,440 1,582,951 1,582,951 1,582,951 973,758 11,809 985,567 597,384 62% 1,582,951 2,548,869 2,568,099 2,568,099 1,968,544 1,968,544 599,555 77% 2,568,099 3,582,500 3,582,500 3,582,500 2,712,342 2,712,342 870,158 76% 3,582,500 14,666,418 14,662,990 - 14,662,990 10,871,495 11,809 10,883,304 3,779,686 74% 14,662,990 622,287 362,747 362,747 281,610 281,610 81,137 78% 362,747 486,573 486,573 486,573 279,508 26,724 306,233 180,340 63% 486,573 929,920 929,920 929,920 603,547 38,119 641,665 288,255 69% 929,920 356,460 356,460 356,460 305,574 305,574 50,886 86% 356,460 2,395,240 2,135,700 - 2,135,700 1,470,239 64,843 1,535,082 600,618 72% 2,135,700 17,148 17,148 17,148 8,350 8,350 8,798 49% 17,148
399,687 372,187 372,187 297,466 297,466 74,720 80% 372,187 148,953 123,953 123,953 57,117 22,189 79,306 44,647 64% 123,953 565,788 513,288 - 513,288 362,933 22,189 385,122 128,166 75% 513,288 3,500 3,500 3,500 1,902 1,902 1,598 54% 3,500
202,430 202,430 202,430 95,962 95,962 106,468 47% 202,430 220,935 220,935 220,935 99,612 99,612 121,323 45% 220,935 426,865 426,865 - 426,865 197,476 - 197,476 229,389 46% 426,865 636,107 636,107 636,107 636,015 636,015 92 100% 636,107 777,800 777,800 777,800 597,677 597,677 180,123 77% 777,800 24,293,615 24,070,525 - 24,070,525 18,422,610 98,841 18,521,451 (5,549,074) 77% 24,070,525 Third Quarter Financial Summary by Fund
City of Pinole, CA For FY2024/25 Period Ending: 3/31/25 Variance
Favorable
(Unfavorable)
Original
Budget Revised Budget
Proposed
Adjustments Amended Budget YTD Actual Encumbrances Total Percent
Used
General Fund (including Measure S 2006 and 2014)
Revenue
311- Property Taxes
312- Sales and Use Taxes
312- Sales and Use Taxes-Meas S 2006
312- Sales and Use Taxes-Meas S 2014
312- Sales and Use Taxes-Meas I 2024
313- Utility Users Tax (UUT)
314- Franchise Taxes
315- Other Taxes
Other Tax/Transient Occupancy Tax (TOT)
Other Tax/Business License
321- Intergovernmental Taxes
322-Federal Grants
323- State Grants
324- Other Grants
332- Permits
341- Review Fees
342- Other Fees
343- Abatement Fees
351- Fines and Forfeiture
361- Public Safety Charges
370- Interest and Investment Income
381- Rental Income
383- Reimbursements
384- Other Revenue
392- Proceeds from Sale of Property
Revenue Total:
399- Pension Trust 115 Transfer
399-General Reserve Transfer
Sources Total:

Fund: 100- General Fund
Expenditures
Division: 110- City Council Total:

Division: 111- City Manager Total:

Division: 112- City Clerk Total:

Division: 113- City Treasurer Total:

Division: 114- City Attorney Total:

City Attorney Services
City Attorney Indirect Cost Allocations
Division: 115- Finance Department Total:

Division: 116- Human Resources Total:

Division: 117- General Government Total:

Total Administrative:

Division: 221- Police Operations Total:

Division: 222- Police Support Services Total:

Division: 223- Dispatch WBCC Total:

Division: 231- Fire Total:

Total Public Safety:

Division: 341- Administration/Engineering Total:

Division: 342- Road Maintenance Total:

Division: 343- Facility Maintenance Total:

Division: 345- Park Maintenance Total:

Public Works Total:

Division: 461- Planning Total:

Division: 465- Code Enforcement Total:

Division: 466- Economic Development Total:

Community Development Total:

Division: 551- Recreation Administration Total:

Division: 560- Library Services Total:

Division: 561 Animal Control Services Total:

Community Services Total:

Debt Service:

Operating Transfer Out:

Expenditure Total:

Projected
Year-End
Third Quarter Financial Summary by Fund
City of Pinole, CA For FY2024/25 Period Ending: 3/31/25 Variance
Favorable
(Unfavorable)
Original
Budget Revised Budget
Proposed
Adjustments Amended Budget YTD Actual Encumbrances Total Percent
Used
2,450 2,450 2,450 60 60 2,390 2% 2,450
1,147,981 1,147,981 1,147,981 735,267 735,267 412,714 64% 1,147,981 1,478,192 1,478,192 1,478,192 1,072,572 1,072,572 405,620 73% 1,478,192 1,750,000 1,750,000 1,750,000 - - 1,750,000 0% -
1,530,000 1,530,000 1,530,000 - - 1,530,000 0% -
5,908,623 5,908,623 - 5,908,623 1,807,899 - 1,807,899 4,100,724 31% 2,628,623 - - - - - - 0% -
2,450 2,450 2,450 960 960 1,490 39% 2,450
- - - - - - 0% -
2,450 2,450 - 2,450 960 - 960 1,490 39% 2,450
- - - - - - 0% -
126,138 126,138 126,138 95,333 95,333 30,805 76% 126,138 1,372,769 1,372,769 1,372,769 996,031 996,031 376,738 73% 1,372,769 1,498,907 1,498,907 - 1,498,907 1,091,364 - 1,091,364 407,543 73% 1,498,907 229,895 379,895 379,895 65,201 65,201 314,694 17% 379,895 854,730 854,730 854,730 114,112 204 114,317 740,413 13% 854,730 1,898,663 1,898,663 1,898,663 103,392 103,392 1,795,271 5% 218,663 1,450,000 1,450,000 1,450,000 33,950 127,148 161,098 1,288,902 11% 250,000 260,000 260,000 260,000 24,899 24,899 235,101 10% 260,000 4,693,288 4,843,288 - 4,843,288 341,555 127,352 468,908 4,374,380 10% 1,963,288 20,000 87,050 87,050 29,039 29,039 58,011 33% 87,050
20,000 87,050 - 87,050 29,039 - 29,039 58,011 33% 87,050 - 8,834 8,834 8,834 8,834 - 100% 8,834
15,300 24,134 24,134 - - 24,134 0% 24,134
- - - - - - 0% -
15,300 32,968 - 32,968 8,834 - 8,834 24,134 27% 32,968
6,229,945 6,464,663 - 6,464,663 1,471,752 127,352 1,599,104 4,865,559 25% 3,584,663 783,500 783,500 783,500 783,500 783,500 - 100% 783,500
7,013,445 7,248,163 - 7,248,163 2,255,252 127,352 2,382,604 4,865,559 33% 4,368,163 37,215,683 37,227,311 - 37,227,311 22,485,761 226,193 22,711,954 14,515,358 61% 31,067,311 (8,996,250) (8,563,197) - (8,563,197) (6,567,625) (226,193) (6,793,818) (1,769,379) 79% (2,306,308) Fund Balance July 1, 2024 7,978,729 7,978,729 7,978,729 7,978,729 7,978,729 Estimated Fund Balance June 30, 2025 (1,017,521) (584,468) (584,468) 1,411,104 5,672,420 309,000 309,000 309,000 380,395 380,395 71,395 123% 460,000 309,000 309,000 - 309,000 380,395 - 380,395 71,395 123% 460,000 843,790 843,790 843,790 - - (843,790) 0% 843,790
(534,790) (534,790) - (534,790) 380,395 380,395 915,185 -71% (383,790) Fund Balance July 1, 2024 10,266,058 10,266,058 10,266,058 10,266,058 10,266,058 Estimated Fund Balance June 30, 2025 9,731,268 9,731,268 9,731,268 10,646,453 9,882,268 - - - - - - 0% -
- - - - - - - - 0% -
150,000 150,000 150,000 150,000 150,000 - 100% 150,000
150,000 150,000 - 150,000 150,000 - 150,000 - 100% 150,000 - - - 6,886 6,886 (6,886) 0% -
120,000 141,275 141,275 21,275 21,275 120,000 15% 141,275 80,000 80,000 80,000 69,950 69,950 10,050 87% 80,000
5,000 5,000 5,000 - - 5,000 0% 5,000
- 47,744 47,744 47,744 47,744 1 100% 47,744
- 23,872 23,872 23,872 23,872 0 100% 23,872
205,000 297,891 - 297,891 169,727 - 169,727 128,164 57% 297,891 (55,000) (147,891) (147,891) (19,727) - (19,727) 128,164 13% (147,891) Fund Balance July 1, 2024 378,780 378,780 378,780 378,780 378,780 Estimated Fund Balance June 30, 2025 323,780 230,889 230,889 359,053 230,889 Fund: 105 - Measure S -2006
Expenditures
Division: 115- Finance Department Total:

Division: 221- Police Operations Total:

Division: 231- Fire Total:

Division: 342- Road Maintenance Total:

Division: 343- Facility Maintenance Total:

Expenditures Total:

Fund: 106 - Measure S-2014
Expenditures
Division: 110- City Council Total:

Division: 115- Finance Department Total:

Division: 118- Information Systems Total:

Total Administrative:

Division: 221- Police Operations Total:

Division: 222- Police Support Services Total:

Division: 231- Fire Total:

Total Public Safety:

Division: 341- Admin/Engineering Total:

Division: 342- Road Maintenance Total:

Division: 343- Facility Maintenance Total:

Division: 344- NPDES Storm Drain Total:

Division: 345- Park Maintenance Total:

Public Works Total:

Division: 466- Economic Development Total:

Community Development Total:

Division: 551- Recreation Admin Total:

Division: 553- Tiny Tots Total:

Division: 554- Youth Center Total:

Community Services Total:

Sub-Total:

Operating Transfer Out:

Expenditure Total:

General Fund and Measure S Expenditure Total:

General Fund and Measure S Net Results:

Fund: 150 - General Reserve
370- Interest and Investment Income
Revenue Total:
499- Transfer Out Total:

General Reserve Net Results:

Fund: 160 - Equipment Reserve
392- Sale of Property
Revenue Total:
399- Transfers In Total:

Sources Total:

Expenditures
Division: 341- Admin and Engineering Total:

Division: 342- Road Maintenance Total:

Division: 345- Park Maintenance Total:

Division: 461- Planning Total:

Division: 462- Building Total:

Division: 551- Recreation Admin Total:

Expenditures Total:

Equipment Reserve Net Results:

Projected
Year-End
Third Quarter Financial Summary by Fund
City of Pinole, CA For FY2024/25 Period Ending: 3/31/25 Variance
Favorable
(Unfavorable)
Original
Budget Revised Budget
Proposed
Adjustments Amended Budget YTD Actual Encumbrances Total Percent
Used
1,033,764 1,033,764 1,033,764 754,678 754,678 (279,086) 73% 1,033,764 5,000 5,000 5,000 56,141 56,141 51,141 1123% 56,141
7,636 7,636 7,636 49,432 49,432 41,796 647% 49,432
1,046,400 1,046,400 - 1,046,400 860,251 - 860,251 186,149 82% 1,139,337 - - - - - - 0% -
2,203,189 2,203,189 2,203,189 363,720 5,038 368,758 1,834,431 17% 628,189 2,203,189 2,203,189 - 2,203,189 363,720 5,038 368,758 1,834,431 17% 628,189 (1,156,789) (1,156,789) (1,156,789) 496,532 (5,038) 491,494 1,648,283 -42% 511,148 Fund Balance July 1, 2024 1,589,060 1,589,060 1,589,060 1,589,060 1,589,060 Estimated Fund Balance June 30, 2025 432,271 432,271 432,271 2,085,591 2,100,208 3,175 3,175 3,175 - - (3,175) 0% 3,175
36,816 36,816 36,816 - - (36,816) 0% 36,816
- - - - - - 0% -
39,991 39,991 - 39,991 - - - 39,991 0% 39,991
26,000 26,000 26,000 12,522 12,522 13,478 48% 26,000
26,000 26,000 - 26,000 12,522 - 12,522 13,478 48% 26,000 13,991 13,991 13,991 (12,522) (12,522) (26,513) -89% 13,991 Fund Balance July 1, 2024 133,438 133,438 133,438 133,438 133,438 Estimated Fund Balance June 30, 2025 147,429 147,429 147,429 120,916 147,429 239,855 239,855 239,855 154,155 154,155 (85,700) 64% 239,855 10,000 10,000 10,000 6,643 6,643 (3,357) 66% 10,000
249,855 249,855 - 249,855 160,799 - 160,799 (89,056) 64% 249,855 546,413 546,413 546,413 353,979 353,979 192,434 65% 546,413 546,413 546,413 - 546,413 353,979 - 353,979 192,434 65% 546,413 (296,558) (296,558) (296,558) (193,181) (193,181) 103,377 65% (296,558) Fund Balance July 1, 2024 359,962 359,962 359,962 359,962 359,962 Estimated Fund Balance June 30, 2025 63,404 63,404 63,404 166,781 63,404 45,000 45,000 45,000 12,463 12,463 (32,537) 28% 45,000
1,500 1,500 1,500 9,429 9,429 7,929 629% 1,500
- - - - - - 0% -
46,500 46,500 - 46,500 21,892 - 21,892 (24,608) 47% 46,500 21,845 21,845 21,845 7,936 7,936 13,909 36% 21,845
35,000 35,000 35,000 - - 35,000 0% 35,000
56,845 56,845 - 56,845 7,936 - 7,936 48,909 14% 56,845
(10,345) (10,345) (10,345) 13,957 13,957 24,302 -135% (10,345) Fund Balance July 1, 2024 290,591 290,591 290,591 290,591 290,591 Estimated Fund Balance June 30, 2025 280,246 280,246 280,246 304,548 280,246 165,000 165,000 165,000 194,663 194,663 29,663 118% 165,000 10,000 10,000 10,000 9,626 9,626 (374) 96% 10,000
175,000 175,000 - 175,000 204,289 - 204,289 29,289 117% 175,000 294,962 294,962 294,962 213,680 213,680 81,282 72% 294,962 294,962 294,962 - 294,962 213,680 - 213,680 81,282 72% 294,962 (119,962) (119,962) (119,962) (9,391) - (9,391) 110,571 8% (119,962) Fund Balance July 1, 2024 303,559 303,559 303,559 303,559 303,559 Estimated Fund Balance June 30, 2025 183,597 183,597 183,597 294,167 183,597 Fund: 200 - Gas Tax Fund
321- Intergovernmental Taxes
370- Interest and Investment Income
383- Reimbursements
Revenue Total:

Expenditures
Division: 341- Admin and Engineering Total:

Division: 342- Road Maintenance Total:

Expenditures Total:

Gas Tax Fund Net Results:

Fund: 201 - Restricted Real Estate Maintenance Fund
342- Other Fees
381- Rental Income
384- Other Revenue
Revenue Total:

Expenditures
Division: 343- Facility Maintenance Total:

Expenditures Total:

Restricted Real Estate Maint Fund Net Results:

Fund: 203 - Public Safety Augmentation Fund
321- Intergovernmental Taxes
370- Interest and Investment Income
Revenue Total:

Expenditures
Division: 221- Police Operations Total:

Expenditures Total:

Public Safety Augmentation Fund Net Results:

Fund: 205 - Traffic Safety Fund
351- Fines and Forfeitures
370- Interest and Investment Income
384- Other Revenue
Revenue Total:

Expenditures
Division: 227- Police Grants Total:

Division: 342- Road Maintenance Total:

Expenditures Total:

Traffic Safety Fund Net Results:

Fund: 206 - Supplemental Law Enforcement Svc Fund
323- State Grants
370- Interest and Investment Income
Revenue Total:

Expenditures
Division: 227- Police Grants Total:

Expenditures Total:

Sup Law Enforce Svc Fund Net Results:

Projected
Year-End
Third Quarter Financial Summary by Fund
City of Pinole, CA For FY2024/25 Period Ending: 3/31/25 Variance
Favorable
(Unfavorable)
Original
Budget Revised Budget
Proposed
Adjustments Amended Budget YTD Actual Encumbrances Total Percent
Used
253,272 253,272 253,272 - - (253,272) 0% 253,272
- - - - - - 0% -
- - - 147 147 147 0% -
- - - - - - 0% -
253,272 253,272 - 253,272 147 - 147 (253,125) 0% 253,272 7,974 7,974 7,974 5,511 5,511 2,463 69% 7,974
371,855 371,855 371,855 367,570 367,570 4,285 99% 371,855 379,829 379,829 - 379,829 373,081 - 373,081 6,748 98% 379,829 (126,557) (126,557) (126,557) (372,934) (372,934) (246,377) 295% (126,557) Fund Balance July 1, 2024 (123,627) (123,627) (123,627) (123,627) (123,627) Estimated Fund Balance June 30, 2025 (250,184) (250,184) (250,184) (496,560) (250,184) 109,246 276,296 276,296 231,517 231,517 (44,778) 84% 276,296 196,300 196,300 196,300 156,543 156,543 (39,757) 80% 196,300 112,010 112,010 112,010 93,328 93,328 (18,682) 83% 112,010 7,800 17,800 17,800 41,540 41,540 23,740 233% 17,800
- - - - - - . -
79,000 79,000 79,000 43,760 43,760 (35,240) 55% 79,000
- - - - - - 0% -
- - - - - - 0% -
504,356 681,406 - 681,406 566,689 - 566,689 (114,717) 83% 681,406 751,300 751,300 751,300 571,177 571,177 (180,123) 76% 751,300 1,255,656 1,432,706 - 1,432,706 1,137,866 - 1,137,866 (294,840) 79% 1,432,706 -
7,500 7,500 7,500 5,982 5,982 1,518 80% 7,500
887,733 1,068,283 1,068,283 818,901 818,901 249,382 77% 1,068,283 663,944 677,444 677,444 375,086 375,086 302,359 55% 677,444 257,431 270,931 270,931 177,003 177,003 93,928 65% 270,931 358,107 381,607 381,607 203,249 296 203,545 178,062 53% 381,607 205,540 205,540 205,540 142,689 4,130 146,819 58,721 71% 205,540 2,380,256 2,611,306 - 2,611,306 1,722,909 4,426 1,727,335 883,970 66% 2,611,306 (1,124,600) (1,178,600) - (1,178,600) (585,043) (4,426) (589,469) 589,131 50% (1,178,600) Fund Balance July 1, 2024 (13,804) (13,804) (13,804) (13,804) (13,804) Estimated Fund Balance June 30, 2025 (1,138,404) (1,192,404) (1,192,404) (598,847) (1,192,404) - - - 350,000 350,000 350,000 0% 350,000
40,000 40,000 40,000 40,000 40,000 - 100% 40,000
332- Permits 476,916 476,916 476,916 372,401 372,401 (104,515) 78% 476,916 341- Review Fees 403,275 368,775 368,775 257,341 257,341 (111,434) 70% 368,775 342- Other Fees 433,117 433,117 433,117 346,687 346,687 (86,430) 80% 433,117 29,218 29,218 29,218 - - (29,218) 0% 29,218
20,000 20,000 20,000 32,052 32,052 12,052 160% 20,000
7,000 7,000 7,000 - - (7,000) 0% 7,000
- - - - - - 0% -
6,000 6,000 6,000 - - (6,000) 0% 6,000
1,415,526 1,381,026 - 1,381,026 1,398,481 - 1,398,481 17,455 101% 1,731,026 67,000 67,000 67,000 - - (67,000) 0% 67,000
1,482,526 1,448,026 - 1,448,026 1,398,481 - 1,398,481 (49,545) 97% 1,798,026 683,669 826,169 826,169 537,435 24,375 561,810 264,358 68% 826,169 1,355,889 1,316,989 1,316,989 887,820 24,375 912,194 404,795 69% 1,316,989 2,039,558 2,143,158 - 2,143,158 1,425,255 48,750 1,474,005 669,153 69% 2,143,158 (557,032) (695,132) - (695,132) (26,774) (48,750) (75,524) 619,608 11% (345,132) Fund Balance July 1, 2024 (2,226,679) (2,226,679) (2,226,679) 115,802 (2,226,679) Estimated Fund Balance June 30, 2025 (2,783,711) (2,921,811) (2,921,811) 89,028 (2,571,811) Fund: 207 - NPDES Storm Water Fund
321- Intergovernmental Taxes
332- Licenses and Permits
370- Interest and Investment Income
399- Operating Transfer In
Revenue Total:

Expenditures
Division: 342- Road Maintenance Total:

Division: 344- NPDES Storm Drain Total:

Expenditures Total:

NPDES Storm Water Fund Net Results:

Fund: 209 - Recreation Fund
Division: 551- Recreation Administration
Division: 552- Senior Center
Division: 553- Tiny Tots
Division: 554- Youth Center
Division: 555- Day Camp
Division: 557- Swim Center
Division: 558- Memorial Hall
Division: 559- Tennis
Revenue Total:

Operating Transfers in:

Sources Total
Expenditures
Division: 117- General Government Total:

Division: 551- Recreation Administration Total:

Division: 552- Senior Center Total:

Division: 553- Tiny Tots Total:

Division: 554- Youth Center Total:

Division: 557- Swim Center Total:

Expenditures Total:

Recreation Fund Net Results:

Fund: 212 - Building & Planning
322- Federal Grants
323- State Grants
344- Impact Fees
351- Fines and Forfeiture
370- Interest and Investment Income
383- Reimbursements
384- Other Revenue
Revenue Total:

Operating Transfers In:

Sources Total
Expenditures
Division: 461- Planning Total:

Division: 462- Building Inspection Total:

Expenditures Total:

Building & Planning Net Results:

Projected
Year-End
Third Quarter Financial Summary by Fund
City of Pinole, CA For FY2024/25 Period Ending: 3/31/25 Variance
Favorable
(Unfavorable)
Original
Budget Revised Budget
Proposed
Adjustments Amended Budget YTD Actual Encumbrances Total Percent
Used
60,060 60,060 60,060 51,464 51,464 (8,596) 86% 60,060
6,000 6,000 6,000 90 90 (5,910) 2% 6,000
66,060 66,060 - 66,060 51,554 - 51,554 (14,506) 78% 66,060 -
187,102 187,102 187,102 104,235 104,235 82,867 56% 187,102 187,102 187,102 - 187,102 104,235 - 104,235 82,867 56% 187,102 (121,042) (121,042) - (121,042) (52,680) (52,680) 68,362 44% (121,042) Fund Balance July 1, 2024 31,420 31,420 31,420 31,420 31,420 Estimated Fund Balance June 30, 2025 (89,622) (89,622) (89,622) (21,260) (89,622) - - - - - - 0% -
8,000 8,000 8,000 96,157 96,157 88,157 1202% 96,157
360,000 360,000 360,000 236,467 236,467 (123,533) 66% 360,000 368,000 368,000 - 368,000 332,624 - 332,624 (35,376) 90% 456,157 -
173,666 173,666 173,666 80,484 80,484 93,182 46% 173,666 - - - - - - 0% -
173,666 173,666 - 173,666 80,484 - 80,484 93,182 46% 173,666 194,334 194,334 - 194,334 252,141 - 252,141 57,807 130% 282,491 Fund Balance July 1, 2024 2,915,815 2,915,815 2,915,815 2,915,815 2,915,815 Estimated Fund Balance June 30, 2025 3,110,149 3,110,149 3,110,149 3,167,955 3,198,306 - - - 115,802 115,802 115,802 0% 115,802
722,619 722,619 722,619 - - (722,619) 0% 722,619
421,638 421,638 421,638 436,601 436,601 14,963 104% 436,601 8,000 8,000 8,000 66,872 66,872 58,872 836% 66,872
1,152,257 1,152,257 - 1,152,257 619,274 - 619,274 (532,983) 54% 1,341,893 - - - - - - 0% -
201,919 201,919 201,919 114,348 114,348 87,571 57% 201,919 1,501,207 1,501,207 1,501,207 82,289 82,289 1,418,919 5% 242,167 2,000 2,000 2,000 - - 2,000 0% 2,000
1,705,126 1,705,126 - 1,705,126 196,636 - 196,636 1,508,490 12% 446,086 (552,869) (552,869) - (552,869) 422,638 - 422,638 975,507 -76% 895,807 Fund Balance July 1, 2024 2,357,194 2,357,194 2,357,194 2,357,194 2,357,194 Estimated Fund Balance June 30, 2025 1,804,325 1,804,325 1,804,325 2,779,832 3,253,001 - - - 6,967 6,967 6,967 0% 6,967
- - - - - - 0% -
- - - - 6,967 - 6,967 6,967 0% 6,967
- - - - - - 0% -
- - - 6,967 6,967 6,967 0% 6,967
Fund Balance July 1, 2024 216,046 216,046 216,046 216,046 216,046 Estimated Fund Balance June 30, 2025 216,046 216,046 216,046 223,013 223,013 - - - 151 151 151 0% 151
- - - 641 641 641 0% 641
- - - - 792 - 792 792 0% 792
20,544 20,544 20,544 - - 20,544 0% 19,627
20,544 20,544 - 20,544 - - - 20,544 0% 19,627
(20,544) (20,544) - (20,544) 792 792 21,336 -4% (18,835) Fund Balance July 1, 2024 18,835 18,835 18,835 18,835 18,835 Estimated Fund Balance June 30, 2025 (1,709) (1,709) (1,709) 19,627 (0) Fund: 213 - Refuse Management Fund
323- State Grants
370- Interest and Investment Income
Revenue Total:

Expenditures
Division: 346- Waste Reduction Total:

Expenditures Total:

Refuse Management Fund Net Results:

Fund: 214 - Solid Waste Fund
323- State Grants
370- Interest and Investment Income
383- Reimbursements
Revenue Total:

Expenditures
Division: 342- Road Maintenance Total:

Division: 345- Park Maintenance Total:

Expenditures Total:

Solid Waste Fund Net Results:

Fund: 215 - Measure C and J Fund
322- Fed Grant/Misc
323- State Grant/Misc
324- Other Grants
370- Interest and Investment Income
Revenue Total:

Expenditures
Division: 117- General Government Total:

Division: 341- Administration/Engineering Total:

Division: 342- Road Maintenance Total:

Division: 343- Facility Maintenance Total:

Expenditures Total:

Measure C and J Fund Net Results:

Fund: 216 - Rate Stabilization Fund
370- Interest and Investment Income
383- Reimbursements
Revenue Total:

Expenditures Total:

Rate Stabilization Fund Net Results:

Fund: 225 - Asset Seizure-Adjudicated Fund
351- Fines and Forfeiture
370- Interest and Investment Income
Revenue Total:

Expenditures
Division: 221- Police Operations Total:

Expenditures Total:

Asset Seizure-Adjudicated Fund Net Results:

Projected
Year-End
Third Quarter Financial Summary by Fund
City of Pinole, CA For FY2024/25 Period Ending: 3/31/25 Variance
Favorable
(Unfavorable)
Original
Budget Revised Budget
Proposed
Adjustments Amended Budget YTD Actual Encumbrances Total Percent
Used
- - - 7,579 7,579 7,579 0% -
- - - - 7,579 - 7,579 7,579 0% -
- - 398 398 (398) 0% -
- - - - 7,181 7,181 7,181 0% -
- - -
Fund Balance July 1, 2024 49,439 49,439 49,439 49,439 49,439 Estimated Fund Balance June 30, 2025 49,439 49,439 49,439 56,620 49,439 1,039,594 - - - - - 0% -
- - - 112,978 112,978 112,978 0% 112,978
1,039,594 - - - 112,978 - 112,978 112,978 0% 112,978
700,000 700,000 700,000 10,357 10,357 689,643 1% 220,000 58,000 58,000 58,000 - - 58,000 0% 58,000
265,000 265,000 265,000 - - 265,000 0% 65,000
600,000 600,000 600,000 - - 600,000 0% 600,000
1,623,000 1,623,000 - 1,623,000 10,357 - 10,357 1,612,643 1% 943,000 (583,406) (1,623,000) - (1,623,000) 102,621 - 102,621 1,725,621 -6% (830,022) Fund Balance July 1, 2024 3,503,560 3,503,560 3,503,560 3,503,560 3,503,560 Estimated Fund Balance June 30, 2025 2,920,155 1,880,560 1,880,560 3,606,181 2,673,539 50,000 50,000 50,000 111,268 111,268 61,268 223% 111,268 - - - - - - 0 -
- - - - - - 0% -
- - - - - - 0% -
5,000 5,000 5,000 - - (5,000) 0% 5,000
55,000 55,000 - 55,000 111,268 - 111,268 56,268 202% 116,268 47,376 47,376 47,376 40,114 40,114 7,262 85% 47,376
275,867 275,867 275,867 104,136 104,136 171,731 38% 275,867 323,243 323,243 - 323,243 144,250 - 144,250 178,993 45% 323,243 (268,243) (268,243) - (268,243) (32,982) (32,982) 235,261 12% (206,975) Fund Balance July 1, 2024 8,267,770 8,267,770 8,267,770 8,267,770 8,267,770 Estimated Fund Balance June 30, 2025 7,999,527 7,999,527 7,999,527 8,234,788 8,060,795 56,411 56,411 56,411 32,758 32,758 (23,653) 58% 56,411
7,500 7,500 7,500 - - (7,500) 0% 7,500
63,911 63,911 - 63,911 32,758 - 32,758 (31,153) 51% 63,911 39,795 39,795 39,795 10,241 10,241 29,554 26% 39,795
45,380 45,380 45,380 6,990 6,990 38,390 15% 45,380
85,175 85,175 - 85,175 17,231 - 17,231 67,944 20% 85,175 (21,264) (21,264) - (21,264) 15,527 15,527 36,791 -73% (21,264) Fund Balance July 1, 2024 76,278 76,278 76,278 76,278 76,278 Estimated Fund Balance June 30, 2025 55,014 55,014 55,014 91,805 55,014 15,000 15,000 15,000 - - (15,000) 0% -
15,000 15,000 - 15,000 - - - (15,000) 0% -
14,942 14,942 14,942 - - 14,942 0% -
14,942 14,942 - 14,942 - - - 14,942 0% -
58 58 - 58 - - (58) 0% -
Fund Balance July 1, 2024 (983) (983) (983) (983) (983) Estimated Fund Balance June 30, 2025 (925) (925) (925) (983) (983) Fund: 226 - CASp Certification and Training Fund
342- Other Fees
Revenue Total:

Expenditures Total:

CASp Certification and Training Fund Net Results:

Fund: 276 - Growth Impact Fund
344- Impact Fees
370- Interest and Investment Income
Revenue Total:

Expenditures
Division: 343- Facility Maintenance Total:

Division: 344- NPDES Storm Drain Total:

Division: 345- Park Maintenance Total:

Division: 642- Sewer Collections Total:

Expenditures Total:

Growth Impact Fund Net Results:

Fund: 285 - Housing Land Held for Resale
370- Interest and Investment Income
383- Reimbursements
384- Other Revenue
392- Sale of Property
393- Loan/Bond Proceeds
Revenue Total:

Expenditures
Division: 461- Planning Total:

Division: 464- Housing Administration Total:

Expenditures Total:

Housing Land Held for Resale Net Results:

Fund: 310 - Lighting & Landscape Districts
321- Intergovernmental Taxes
383- Reimbursements
Revenue Total:

Expenditures
Division: 347- Landscape & Lighting PVR North Total:

Division: 348- Landscape & Lighting PVR South Total:

Expenditures Total:

Lighting & Landscape Districts Net Results:

Fund: 317 - Pinole Valley Caretaker Fund
381- Rental Income
Revenue Total:

Expenditures
Division: 345- Park Maintenance Total:

Expenditures Total:

Pinole Valley Caretaker Fund Net Results:

Projected
Year-End
Third Quarter Financial Summary by Fund
City of Pinole, CA For FY2024/25 Period Ending: 3/31/25 Variance
Favorable
(Unfavorable)
Original
Budget Revised Budget
Proposed
Adjustments Amended Budget YTD Actual Encumbrances Total Percent
Used
60,000 60,000 60,000 - - 60,000 0% -
10,000 10,000 10,000 - - 10,000 0% -
70,000 70,000 - 70,000 - - - 70,000 0% -
(70,000) (70,000) - (70,000) - - 70,000 0% -
Fund Balance July 1, 2024 541,649 541,649 541,649 541,649 541,649 Estimated Fund Balance June 30, 2025 471,649 471,649 471,649 541,649 541,649 41,394 41,394 41,394 18,055 18,055 (23,339) 44% 41,394
- - - - - - 0% -
1,773,289 1,773,289 1,773,289 154,817 154,817 (1,618,472) 9% 1,773,289 - - 313 313 313 0% -
- - - - - - 0% -
1,814,683 1,814,683 - 1,814,683 173,186 - 173,186 (1,641,497) 10% 1,814,683 250,000 250,000 250,000 250,000 250,000 - 100% 250,000
2,064,683 2,064,683 - 2,064,683 423,186 423,186 (1,641,497) 20% 2,064,683 3,687,304 3,687,304 3,687,304 55,064 113,379 168,443 3,518,861 5% 2,146,721 3,687,304 3,687,304 - 3,687,304 55,064 113,379 168,443 3,518,861 5% 2,146,721 (1,622,621) (1,622,621) - (1,622,621) 368,122 (113,379) 254,743 1,877,364 -16% (82,038) Fund Balance July 1, 2024 2,051,278 2,051,278 2,051,278 2,051,278 2,051,278 Estimated Fund Balance June 30, 2025 428,657 428,657 428,657 2,419,400 1,969,240 - - - - - - 0% -
- - - - - - - - 0% -
250,000 250,000 250,000 250,000 250,000 - 100% 250,000
250,000 250,000 - 250,000 250,000 - 250,000 - 100% 250,000 895,000 895,000 895,000 - - 895,000 0% -
895,000 895,000 - 895,000 - - - 895,000 0% -
(645,000) (645,000) - (645,000) 250,000 - 250,000 895,000 -39% 250,000 Fund Balance July 1, 2024 1,003,071 1,003,071 1,003,071 1,003,071 1,003,071 Estimated Fund Balance June 30, 2025 358,071 358,071 358,071 1,253,071 1,253,071 10,164,403 10,164,403 10,164,403 5,275,033 5,275,033 (4,889,370) 52% 10,164,403 200,000 200,000 200,000 618,708 618,708 418,708 309% 200,000 - - - 16,541 16,541 16,541 0% 16,541
- - - - - - 0% -
- - - - - - 0% -
10,364,403 10,364,403 - 10,364,403 5,910,282 - 5,910,282 (4,454,121) 57% 10,380,944 - - - 11,916 11,916 (11,916) 0% 11,916
11,911,529 11,911,529 11,911,529 3,615,914 7,300 3,623,214 8,288,315 30% 8,236,529 24,163,267 24,163,267 24,163,267 2,439,798 1,376,078 3,815,876 20,347,392 16% 13,903,267 85,000 85,000 85,000 - - 85,000 0% 85,000
1,611,568 1,611,568 1,611,568 522,834 522,834 1,088,734 32% 1,611,568 37,771,365 37,771,365 - 37,771,365 6,590,462 1,383,378 7,973,840 29,797,525 21% 23,848,280 (27,406,962) (27,406,962) - (27,406,962) (680,180) (1,383,378) (2,063,558) 25,343,404 8% (13,467,336) Fund Balance July 1, 2024 21,657,361 21,657,361 21,657,361 21,657,361 21,657,361 Estimated Fund Balance June 30, 2025 (5,749,601) (5,749,601) (5,749,601) 20,977,181 8,190,025 Fund: 324 - Public Facilities Fund
Expenditures
Division: 343- Facility Maintenance Total:

Division: 345- Park Maintenance Total:

Expenditures Total:

Public Facilities Fund Net Results:

Fund: 325 - City Street Improvements
322- Federal Grants
323- State Grants
324- Other Grants
332- Permits
383- Reimbursements
Revenue Total:

Operating transfers in Total:

Sources Total:

Expenditures
Division: 342- Road Maintenance Total:

Expenditures Total:

City Street Improvements Net Results:

Fund: 377 - Arterial Streets Rehabilitation Fund
322- Federal Grants
Revenue Total:

Operating transfers in Total:

Sources Total:

Expenditures
Division: 342- Road Maintenance Total:

Expenditures Total:

Arterial Streets Rehabilitation Fund Net Results:

Fund: 500 - Sewer Enterprise Fund
363- Sewer Enterprise Charges
370- Interest and Investment Income
383- Reimbursements
384- Other Revenue
392- Proceeds from Sale of Property
Revenue Total:

Expenditures
Division: 117- General Government Total:

Division: 641- Sewer Treatment Plant/Shared Total:

Division: 642- Sewer Collections Total:

Division: 643- Sewer Projects/Shared Total:

Division: 644- WPCP Equipment/Debt Service Total:

Expenditures Total:

Sewer Enterprise Fund Net Results:

Projected
Year-End
Third Quarter Financial Summary by Fund
City of Pinole, CA For FY2024/25 Period Ending: 3/31/25 Variance
Favorable
(Unfavorable)
Original
Budget Revised Budget
Proposed
Adjustments Amended Budget YTD Actual Encumbrances Total Percent
Used
26,486 26,486 26,486 10,569 10,569 (15,917) 40% 26,486
179,047 179,047 179,047 94,662 94,662 (84,385) 53% 179,047 - - - - - - 0% -
3,000 3,000 3,000 150 150 (2,850) 5% 3,000
208,533 208,533 - 208,533 105,381 - 105,381 (103,152) 51% 208,533 160,000 160,000 160,000 160,000 160,000 - 100% 160,000
368,533 368,533 - 368,533 265,381 - 265,381 (103,152) 72% 368,533 -
829,463 748,883 748,883 426,746 426,746 322,137 57% 748,883 829,463 748,883 - 748,883 426,746 - 426,746 322,137 57% 748,883 (460,930) (380,350) - (380,350) (161,365) - (161,365) 218,985 42% (380,350) Fund Balance July 1, 2024 2,120 2,120 2,120 2,120 2,120 Estimated Fund Balance June 30, 2025 (458,809) (378,229) (378,229) (159,244) (378,229) - - - - - - - 0% -
- - - - - - - - 0% -
1,572,339 1,596,569 1,596,569 1,009,958 139,997 1,149,955 446,614 72% 1,596,569 1,572,339 1,596,569 - 1,596,569 1,009,958 139,997 1,149,955 (446,614) 72% 1,596,569 (1,572,533) (1,596,763) (1,596,763) (1,002,283) (139,997) (1,142,280) 454,483 72% (1,596,763) (194) (194) - (194) 7,676 (0) 7,676 7,870 -3957% (194)
Fund Balance July 1, 2024 (3,129) (3,129) (3,129) (3,129) (3,129) Estimated Fund Balance June 30, 2025 (3,323) (3,323) (3,323) 4,547 (3,323) 700,000 700,000 700,000 651,463 651,463 (48,537) 93% 700,000 700,000 700,000 - 700,000 651,463 - 651,463 (48,537) 93% 700,000 50,000 50,000 50,000 53,919 53,919 (3,919) 108% 60,000
2,425,000 2,425,000 2,425,000 - - 2,425,000 0% 2,425,000 2,475,000 2,475,000 - 2,475,000 53,919 53,919 (2,421,081) 2% 2,485,000 (1,775,000) (1,775,000) - (1,775,000) 597,545 597,545 2,372,545 -34% (1,785,000) Fund Balance July 1, 2024 13,585,182 13,585,182 13,585,182 13,585,182 13,585,182 Estimated Fund Balance June 30, 2025 11,810,182 11,810,182 11,810,182 14,182,727 11,800,182 Fund: 505 - Cable Access TV
314- Franchise Taxes
365- Cable TV Charges
370- Interest and Investment Income
384- Other Revenue
Revenue Total:

Operating transfers in Total:

Sources Total
Expenditures
Division: 119- Cable Access TV Total:

Expenditures Total:

Cable Access TV Net Results:

Fund: 525 - Information Systems
399- Operating Transfers In
Sources Total:

Expenditures
Division: 118- Information Systems Total:

Expenditures Total:

Indirect cost allocations Total:

Information Systems Net Results:

Fund: 700 - Pension Fund
370- Interest and Investment Income
Revenue Total:

Expenditures
Division: 115- Finance Total:

Transfers Out Total:

Expenditures Total:

Pension Fund Net Results:

CITY COUNCIL
REPORT 9.E.

DATE: JUNE 3, 2025
TO: MAYOR AND COUNCIL MEMBERS
FROM: Markisha Guillory, Finance Director, 510-724-9823, [email protected] SUBJECT: FY 2024/25 THIRD QUARTER INVESTMENT REPORT

RECOMMENDATION
Staff recommend that the City Council receive the Quarterly Investment Report for the third quarter (ending March 31, 2025).

BACKGROUND
The City of Pinole Investment Policy requires that a Quarterly Investment Report be submitted to the City Council. The City’s investments, as shown in the attached Investment Report for the quarter ending March 31, 2025, conform to the City’s Investment Policy as well as all applicable State and federal requirements, including California Government Code Section 53646.

The funds that the City invests, and which are reported in the Quarterly Investment Report, are comprised of cash and investment balances that are held across all City funds. The cash and investment balances across all City funds are “pooled” for investment purposes, with the exception of the assets of the General Reserve, which is discussed further below. Cash is invested in accordance with the City’s Investment Policy. Interest earnings on investments are allocated to the various funds based on the cash and investment balances of those funds.

The City also maintains a Section 115 Trust that was established for the purpose of setting aside resources to offset anticipated increases in future City pension costs. The cash and investments in the trust are designated as restricted fund balance in the City’s General Fund.

These funds are invested according to the policy objectives and guidelines of the City’s Pension Investment Policy.

REVIEW AND ANALYSIS
Investment Policy
All investments held at March 31, 2025 conform to the City’s Investment Policy and all applicable State and federal requirements. The City’s investment objectives, in order of priority, are safety, which is investing in the highest quality securities; liquidity, which is the ability to convert the investment to cash as necessary to meet cash flow requirements; and yield, which is earning a higher return.

Investment Strategy

The City utilizes a passive investment management approach by buying and holding securities until maturity. Earnings on investments held until maturity typically fluctuate with market conditions and are considered “unrealized” prior to maturity. The City expects to yield a gain on all investments at maturity. A “laddered maturity” investment strategy is applied to the longterm portion of the City’s investment portfolio. A laddered portfolio is structured with securities that have different maturity dates. As securities are called or mature, proceeds are reinvested in a new security with another long term at the end of the ladder. Laddering helps to minimize interest-rate risk, increase liquidity, and diversify credit risk.

Staff continue to monitor rates of return on City funds invested and make investments to best achieve the objectives laid out in the Investment Policy.

Third Quarter Investment Summary
As of March 31, 2025, total cash and investments increased by $1,007,058 from the previous quarter, from $51,020,226 to $52,027,284. Typically, the City experiences swings in cash inflow and outflow due to the seasonality of large receipts, such as property taxes, and large disbursements, like debt service that is paid semiannually. The City will have sufficient cash flow to meet the next six months of estimated expenditures.

Investment Instruments
The Finance Director, in consultation with the City Treasurer, selects the instruments in which to invest the City’s funds, in order to best meet the objectives laid out in the City’s Investment Policy. The balances held in different investment instruments at March 31, 2025 are noted in Attachment A. The bulk of the City’s investment funds are invested in the State of California’s Local Agency Investment Fund (LAIF), because of the safety and liquidity of that investment.

Funds in the City’s General Reserve are maintained in an account that is separate from the rest of the pooled funds. This enables the Finance Director to implement a directed investment plan for the General Reserve funds. The City’s practice has been to invest these funds in instruments with longer duration, thereby yielding greater investment earnings.

Investment Yield and Duration
The weighted average yield of the City’s investment portfolio for the quarter ended March 31, 2025 is summarized in Attachment A. The total investment portfolio yielded 4.185% for the third quarter (January – March 2025), slightly down from the 4.304% yielded in the previous quarter (October – December 2024).

For the third quarter, LAIF earned an average annual yield of 4.313%, down from an average annual yield of 4.434% for the second quarter.

The General Reserve, which holds the longer-term investments, earned an average annual yield of 3.643%, slightly down from the 3.719% average annual yield in the second quarter. No new investment instruments were purchased during the third quarter. Additionally, there were no maturities of investments.

Section 115 Trust
The Section 115 Trust is comprised of a diversified portfolio of investments consistent with the Trust’s objectives and liquidity requirements. The funds are invested on behalf of the City by Public Agency Retirement Services (PARS). The portfolio summary for the quarter ending March 31, 2025 is included in Attachment B to this report.

FISCAL IMPACT
There is no fiscal impact as a result of receiving the Third Quarter Investment Report.

ATTACHMENTS
A. Investment Report - Quarter Ending March 31, 2025
B. Section 115 Investment Report - Quarter Ending March 31 2025

CITY OF PINOLE
INVESTMENT REPORT MARCH 2025

PORTFOLIO SUMMARY
Weighted
Days to Average
Investments Par Value Market Value Book Value % of Portfolio Maturity Yield Maturity Investment Pool - LAIF 23,725,673 23,745,821 23,745,821 50.34% 1 4.313 1 Investment Pool - CalTrust 3,584,163 3,584,163 3,584,163 7.60% 1 4.160 0 Money Market Savings 9,201,771 9,201,771 9,201,771 19.51% 1 4.535 0 Mutual Funds 7,186,066 7,186,066 7,186,066 15.23% 1 3.961 0 Certificates of Deposit 1,982,000 1,984,455 1,984,455 4.21% 183 3.987 1 Medium-Term Corporate Notes 1,000,000 971,330 971,330 2.06% 529 2.110 11 Federal Agency Securities 500,000 496,505 496,505 1.05% 71 0.680 1 Subtotal Investments $ 47,179,674 $ 47,170,111 $ 47,170,111 100.00% 131 4.185 2 Average Years to Maturity: 0.4
Cash
Mechanics Bank - Vendor Checking * 3,393,385 3,393,385 3,393,385 1 BMO - Payroll Checking * 747,350 747,350 747,350 1
BMO - Checking (Credit Card Clearing) * 716,439 716,439 716,439 1 Subtotal Cash 4,857,173 4,857,173 4,857,173 1
Total Cash and Investments $ 52,036,847 $ 52,027,284 $ 52,027,284 *Not included in yield calculations
The above investments are consistent with the City's Investment Policy and allowable under current legislation of the State of California. Investments were selected using safety, liquidity and yield as the criteria. The source of the market values for the investments are provided by US Bank in accordance with the California Government Code requirement. The City has sufficient cash flow to cover anticipated expenditures through the next six months.

Investment Pool
Money Market savings 58%
20%
Mutual Funds
15%
Certificates of Deposit
4%
Medium-Term
Corporate Notes
2%
Federal Agency
Securities
1%

CITY OF PINOLE - INVESTMENT PORTFOLIO
JANUARY 2022
-
5 10
15 20
25 30
35 40
45 50
0-3 mo 4-6 mo 7-12 mo 1-2 yr 2-3 yr 3-4 yr 5 yr +
Millions

MATURITY DISTRIBUTION
58%
20%
15%
4%
2%
1%
$0 $10,000,000 $20,000,000 $30,000,000 $40,000,000
Investment Pool
Money Market savings
Mutual Funds
Certificates of Deposit
Medium-Term Corporate Notes
Federal Agency Securities

CITY OF PINOLE - INVESTMENT PORTFOLIO
MARCH 2025

CITY OF PINOLE
INVESTMENT REPORT MARCH 2025

PORTFOLIO DETAILS
Type /
Account
Number CUSIP Issuer Manager GL Acct # Par Value Market Value Book Value Rate Yield Days to
Maturity
S&P
Rating
Maturity
Date
Weighted
Average
Maturity
Investment Pool
Local Agency Investment Fund (LAIF) LAIF 999-10201 23,725,673 23,745,821 23,745,821 4.313 4.313 1 N/A 1 CalTrust - Short Term Fund (City) CalTrust 999-10202 27,561 27,561 27,561 4.270 4.270 1 N/A 0 CalTrust - Medium Term Fund (City) CalTrust 999-10203 3,556,603 3,556,603 3,556,603 4.050 4.050 1 N/A 0 27,309,837 27,329,984 27,329,984 4.211 4.279 1 0
Money Market Savings
Mechanics Bank City 999-10102 7,982,939 7,982,939 7,982,939 4.590 4.590 1 N/A 0 Mechanics Bank City 500-10311 1,111,026 1,111,026 1,111,026 4.580 4.580 1 N/A 0 BMO City 999-10104 107,807 107,807 107,807 0.010 0.010 1 N/A 0 9,201,771 9,201,771 9,201,771 3.060 4.535 1 0
Mutual Funds
19-516680 U.S. Bank US Bank 150-10110 33,399 33,399 33,399 1.980 1.980 1 N/A 0 19-516680 31846V203 1st American Government Obligation Fund US Bank 150-10110 7,152,666 7,152,666 7,152,666 3.970 3.970 1 N/A 0 7,186,066 7,186,066 7,186,066 2.975 3.961 1 0
Certificates of Deposit
19-516680 01025RAG4 Alabama Cr Un US Bank 150-10110 248,000 250,726 250,726 5.000 4.950 448 N/A 6/22/2026 2 19-516680 05580A2H6 Bmw Bk North Amer US Bank 150-10110 244,000 244,220 244,220 4.900 4.900 77 N/A 6/16/2025 0 19-516680 30960QAP2 Farmers Insurance Group Fed US Bank 150-10110 248,000 248,692 248,692 5.250 5.230 112 N/A 7/21/2025 1 19-516680 33715LFK1 First Technology Federal Credi US Bank 150-10110 248,000 248,374 248,374 5.100 5.090 77 N/A 6/16/2025 0 19-516680 53052LAW9 Liberty Fed Cr Un Evansville US Bank 150-10110 248,000 248,687 248,687 5.300 5.280 105 N/A 7/14/2025 1 19-516680 70212VAB4 Partners Bk helena Ark US Bank 150-10110 247,000 244,715 244,715 0.600 0.610 91 N/A 6/30/2025 0 19-516680 856283N51 State Bk Indiana Chicago III US Bank 150-10110 250,000 247,828 247,828 1.000 1.010 87 N/A 6/26/2025 0 19-516680 910286GR8 United Fid Bk FSB Evansville I US Bank 150-10110 249,000 251,214 251,214 4.800 4.760 470 N/A 7/14/2026 3 1,982,000 1,984,455 1,984,455 3.994 3.987 183 1
Medium-Term Corporate Notes
19-516679 037833DN7 Apple Inc. US Bank 150-10110 1,000,000 971,330 971,330 2.050 2.110 529 AA+ 9/11/2026 11 1,000,000 971,330 971,330 2.050 2.110 529 11
Federal Agency Securities
19-516680 3133ELH80 Federal Farm Credit Bks US Bank 150-10110 500,000 496,505 496,505 0.680 0.680 71 AA+ 6/10/2025 1 500,000 496,505 496,505 0.680 0.680 71 1
$ 47,179,674 $ 47,170,111 $ 47,170,111 2.828 4.185 131 2 Average Years : 0.4

Investments Market Value Book Value % of Market Yield
Cash and Equivalents 313,321 313,321 2.21% 4.260
U.S. Government Issues 4,961,233 5,131,874 34.98% 4.100 Corporate Issues 3,138,713 3,158,260 22.13% 5.130
Foreign Issues 209,129 212,441 1.47% 5.080
Municipal Issues - - 0.00% -
Mutual Funds-Equity 5,113,746 5,089,660 36.06% 1.480
Mutual Funds-Fixed Income 382,115 380,146 2.69% 6.250
Total Assets 14,118,257 14,285,702 99.55% 3.460
Accrued Income 64,448 64,448 0.45%
Grand Total $ 14,182,705 $ 14,350,149 100%

CITY OF PINOLE
INVESTMENT REPORT MARCH 2025
SECTION 115 TRUST PORTFOLIO SUMMARY

36.06%

34.98%

22.13%

2.69%

1.47%

2.21%

0.45%

0.00%
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Mutual Funds-Equity
U.S. Government Issues
Corporate Issues
Mutual Funds-Fixed Income
Foreign Issues
Cash and Equivalents
Accrued Income
Municipal Issues
Portfolio Summary

CITY COUNCIL
REPORT 9.F.

DATE: JUNE 3, 2025
TO: MAYOR AND COUNCIL MEMBERS
FROM: Markisha Guillory, Finance Director, 510-724-9823, [email protected] SUBJECT: AMENDED RESERVE POLICY

RECOMMENDATION
Staff recommend that the City Council adopt a resolution approving the amendment of the City's Reserve Policy to change the required General Reserve amount to 25% from 50% of total ongoing General Fund expenditures.

BACKGROUND
It is a best practice in public finance and recommendation of the National Advisory Council on State and Local Budgeting (NACSLB) and the Government Finance Officers Association (GFOA) that public agencies regularly review and update as appropriate their financial policies.

Consistent with best practices, the City either reconfirms or updates its financial and investment policies as part of the annual budget process.

The financial policies are intended to set guidelines on how the City will manage its financial resources as well as to provide direction for financial decision-making.

The City’s Reserve Policy states that the City will establish and maintain reserves to meet certain anticipated future obligations as well as to ensure that the City maintains adequate financial resources to continue to provide basic municipal services in the event of a significant unanticipated revenue decrease or expenditure increase. The policy requires the City to maintain a reserve equal to 50% of total ongoing General Fund expenditures.

At its meeting on April 16, 2025, the City Council adopted the current Reserve Policy, along with the City’s Financial and Investment Policies.

Throughout the FY 2025/26 budget development process, the City Council considered reducing the General Reserve level to free up funds that could be redirected toward funding any of the City’s unfunded liabilities, such as Other Post-Employment Benefits (OPEB). At its special meeting on May 13, 2025, the City Council directed staff to proceed with preparing a resolution to amend the Reserve Policy, changing the required General Reserve level to 25% from 50% of total ongoing General Fund expenditures.

REVIEW AND ANALYSIS
The GFOA recommends that governments establish a formal reserve policy based on the government’s specific circumstances. Factors to be considered include revenue and

expenditure predictability and volatility; perceived exposure to one-time disasters; the potential drain on general fund resources from other funds; the potential impact on the government’s bond rating and borrowing costs; and funds that are already committed or assigned for specific purposes. The GFOA generally recommends a reserve level that covers at least two months (17%) of ongoing General Fund operating expenditures.

The City’s current Reserve Policy requires the City to maintain a reserve balance equal to 50% of total ongoing General Fund expenditures.

During FY 2025/26 budget development discussions, staff recommended that, as a budget strategy, the City Council consider revising the Reserve Policy, changing the required General Reserve level to 25% from 50% of total ongoing General Fund expenditures. Further, staff recommended transferring the proceeds of approximately $2.4 million, resulting from reducing the reserve level, to the City’s established Section 115 trust to set aside funds to begin prefunding Other Post-Employment Benefits (OPEB). The City Council accepted staff's recommendations and directed staff to prepare a revised Reserve Policy for adoption.

A reserve level of 25% provides at least three months of expenditure coverage. This is above the GFOA recommended level and aligns with the average reserve level set by neighboring governments, as shown in Table 1 below.

Table 1 – Jurisdictional Comparison of General Fund Reserve Policy Jurisdiction General Fund Reserve Policy
Albany 25% of annual operating expenses
American Canyon 25% of annual operating expenses
Dixon 25% of annual operating expenses
El Cerrito A minimum of 10% of annual operating expenses Emeryville 50% of annual operating expenses
Hercules A minimum of 8.33% of General Fund expenses
Martinez A minimum of $5,000,000 (16.2% of annual operating expenses)

FISCAL IMPACT
There is no fiscal impact in adopting the resolution. The reduction in the General Reserve will provide approximately $2.4 million which will be transferred into the City’s Section 115 trust for the purpose of pre-funding Other Post-Employment Benefits (OPEB).

ATTACHMENTS
A. Resolution
B. Amended Reserve Policy (redlined)
C. Amended Reserve Policy (clean)

RESOLUTION NO 2025-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PINOLE APPROVING THE REVISED CITY RESERVE POLICY FOR THE FISCAL YEAR 2025/26 TO REDUCE THE GENERAL RESERVE TO 25% FROM 50% OF TOTAL ONGOING

GENERAL FUND OPERATING EXPENDITURES
WHEREAS, the City of Pinole has financial policies, including investment policies, which govern management of the City’s fiscal resources; and WHEREAS, it is a best practice in public finance and a recommendation of the National Advisory Council on State and Local Budgeting (NACSLB) and the Government Finance Officers Association (GFOA) that cities regularly review and update as appropriate their financial policies; and
WHEREAS, City staff presented proposed financial and investment policies for fiscal year (FY) 2025/26 to the City Council for adoption at the Council meeting held on April 16, 2025; and
WHEREAS, the City’s current Reserve Policy to require that the General Reserve maintain a balance equal to 50% of total ongoing General Fund operating expenditures; and
WHEREAS, through budget discussions for FY 2025/26, staff recommended that the City Council consider revising the Reserve Policy to require that the General Reserve maintain a balance equal to 25% of total ongoing General Fund operating expenditures; and
WHEREAS, staff recommended that the difference in funds between the current 50% policy level and proposed 25% policy level be transferred into an interest-bearing trust to set aside funds to pay for Other Post-Employment Benefits (OPEB); and WHEREAS, during the special City Council meeting held on May 13, 2025, the Council accepted staff’s recommendation to revise the Reserve Policy and transfer funds to an OPEB trust.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pinole hereby approves the City of Pinole revised Reserve Policy updated June 3, 2025, attached hereto as Exhibit 1.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pinole held on the 3rd day of June 2025 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 3 rd day of June 2025.
____________________________
Heather Bell, CMC
City Clerk

Reserve Policy
Policy
The City will establish and maintain reserves to meet certain anticipated future obligations as well as to ensure that the City maintains adequate financial resources to continue to provide basic municipal services in the event of a significant unanticipated revenue decrease or expenditure increase.

Purpose
To ensure that the City maintains adequate financial resources to continue to provide basic municipal services in the event of a significant unanticipated revenue decrease or expenditure increase.

Definitions and Details

1. The City shall establish a separate account in the financial system to reserve funds intended to ensure that the City maintains adequate financial resources to continue to provide basic municipal services in the event of a significant unanticipated revenue decrease or expenditure increase. This account and the funds contained therein shall be referred to as the General Reserve. It shall be budgeted to contain an amount equivalent to 2550% of the City's annual General Fund ongoing operating expenditures. Resources in the General Reserve account will be considered committed1 for the purpose of financial reporting per the standards of Generally Accepted Accounting Principles (GAAP) set forth by the Governmental Accounting Standards Board (GASB) Statement No. 54.

2. The City shall establish other separate accounts in the financial system to reserve funds for other appropriate purposes, such as for replacement of vehicles and major equipment; maintenance and replacement of capital assets; and long-term liabilities.

3. Funds held in the General Reserve can only be appropriated by a majority vote of the Council to address exceptional circumstances specifically related to a significant revenue shortfall, unanticipated expenditure, or other budget stabilization issue.

4. If the General Reserve funds are appropriated and expended, the City Council will endeavor to replenish them to the full amount noted above as part of the adoption of the subsequent budget, if not sooner.

5. This Policy shall be reviewed by the City Council periodically to ensure its consistency with current law and the City's current needs. 1 Per the Governmental Accounting Standards Board (GASB) Statement No. 54, “committed” includes amounts that can be used only for specific purposes determined by a formal action of the government’s highest level of decision-making authority. Commitments may be changed or lifted only by the government taking the same formal action that originally imposed the constraint.

Reserve Policy
Policy
The City will establish and maintain reserves to meet certain anticipated future obligations as well as to ensure that the City maintains adequate financial resources to continue to provide basic municipal services in the event of a significant unanticipated revenue decrease or expenditure increase.

Purpose
To ensure that the City maintains adequate financial resources to continue to provide basic municipal services in the event of a significant unanticipated revenue decrease or expenditure increase.

Definitions and Details

1. The City shall establish a separate account in the financial system to reserve funds intended to ensure that the City maintains adequate financial resources to continue to provide basic municipal services in the event of a significant unanticipated revenue decrease or expenditure increase. This account and the funds contained therein shall be referred to as the General Reserve. It shall be budgeted to contain an amount equivalent to 25% of the City's annual General Fund ongoing operating expenditures. Resources in the General Reserve account will be considered committed1 for the purpose of financial reporting per the standards of Generally Accepted Accounting Principles (GAAP) set forth by the Governmental Accounting Standards Board (GASB) Statement No. 54.

2. The City shall establish other separate accounts in the financial system to reserve funds for other appropriate purposes, such as for replacement of vehicles and major equipment; maintenance and replacement of capital assets; and long-term liabilities.

3. Funds held in the General Reserve can only be appropriated by a majority vote of the Council to address exceptional circumstances specifically related to a significant revenue shortfall, unanticipated expenditure, or other budget stabilization issue.

4. If the General Reserve funds are appropriated and expended, the City Council will endeavor to replenish them to the full amount noted above as part of the adoption of the subsequent budget, if not sooner.

5. This Policy shall be reviewed by the City Council periodically to ensure its consistency with current law and the City's current needs. 1 Per the Governmental Accounting Standards Board (GASB) Statement No. 54, “committed” includes amounts that can be used only for specific purposes determined by a formal action of the government’s highest level of decision-making authority. Commitments may be changed or lifted only by the government taking the same formal action that originally imposed the constraint.

CITY COUNCIL
REPORT 9.G.

DATE: JUNE 3, 2025
TO: MAYOR AND COUNCIL MEMBERS
FROM: Heba El-Guindy, Public Works Director, [email protected] SUBJECT: RECEIVE UPDATE ON CAPITAL PROJECTS PROGRESS, INSPECTION

AND PERMITS ISSUANCE, AND MAINTENANCE OPERATIONS

RECOMMENDATION
Receive update on capital projects progress, conducted inspections and issued permits, and performed maintenance operations.

BACKGROUND
Capital project updates were provided to the City Council on March 4, 2025, which covered the second quarter of Fiscal Year (FY) 2024-25 ending on December 31, 2024. Because of changes in staffing, not all details for the months of January and February were documented.

Consequently, updates for the period of March 1, 2025 through May 21, 2025 are provided in this staff report. The updates not only cover capital projects, but also summary updates on permits review and on maintenance operations.

REVIEW AND ANALYSIS
Capital Projects:
• Public Safety Building Modernization (FA2301): This multi-year project is intended to extend the life of the Public Safety Building through replacement of the Heating, Ventilation and Air Conditioning (HVAC) system, carpet, flooring, water heaters, light fixtures, fans, painting (interior and exterior), and renovation of the locker rooms. As a first phase, flooring of the lobby of the first and second floors has been completed. In addition, seating chairs for the public have been purchased and assembled. • Senior Center Modernization (FA2202): This project encompasses a comprehensive facilities condition assessment and modernization of the existing Senior Center building located at 2500 Charles Avenue. Recently, the damaged sections of the roof and the HVAC system have been replaced. With continuation of the building assessment, it was also determined that the fire alarm system has to be improved and quotes for possible upgrades versus full replacement have been obtained from contractors. • Upgrade of City Pools (FA2502): This is an ongoing project that aims at upgrading the various equipment associated with the pools. Most recently, the computer panel that allows monitoring and adjustment of chemicals in the pools has been replaced thereby allowing the pools to reopen for service. Also repairs to the pool heater were completed last week. During the repairs, however, the contractor identified additional deficiencies that require further upgrades but are not expected to hinder operations in the near term.

• Pinole Valley Park – East (PA1901): The rehabilitated soccer field was reopened on February 22nd. Due to high use of the soccer field, additional rehabilitation was necessary by replacing the damaged lawn and seeding the entire field last week. The field is planned to reopen for the community’s enjoyment by the end of June. • Fernandez Park Sewer Lateral: The aging lateral pipe that connects the park’s restrooms to the main that runs along Tennent Avenue is severely damaged and has been flooding. To address this issue, various methods of repair or replacement were investigated in a manner that would avoid the costly demolition and replacement of the pedestrian walkway and the concrete casing that surrounds the lateral. As a result, quotes were sought for the installation of a pipe insert and a pump that would eliminate impacts of the existing damage without the need for demolition and reconstruction. This emergency project is being funded by enterprise fees and Prop 68 grant funds. • Pinon Trunk Sewer Capacity Phase 2 Project (SS2401): In May 2024, Phase 2 of the Project was advertised for construction with bids received by June 4, 2024. On June 25, 2024, the City Council awarded a construction contract to the lowest responsive and responsible bidder, K.J. Woods Construction, Inc. The Notice to Proceed was issued on October 14, 2024, and the work has been underway since with scheduled completion by the end of July 2025. Addressing punch list items and project close-out are scheduled by the end of September 2025.
• Roble Avenue Storm Drain Improvement Project (SW2001): An approximately 450 linear foot portion of Roble Avenue experiences minor flooding during significant wet weather events. The Roble Avenue Drain Improvement Project is expected to exceed the retrofit requirements of the Municipal Regional Storm Water of 1.16 acres. Staff issued a request for proposals on November 27, 2024, with proposals received by January 9, 2025. A qualified consultant has since been selected by a panel based on the submitted proposals and follow-up interviews. A design contract is being brought forward for City Council review and approval on June 3rd, 2025. • Active Transportation Plan (RO2106): On March 7, 2023, the City Council awarded a contract to GHD, Inc. to develop an Active Transportation Plan (ATP) for the City of Pinole with the objectives to promote walking, cycling, and connectivity to public transit.

The set objectives aim to improve public health and safety, reduce greenhouse gas emissions, and enhance the livability of our community. GHD produced a draft ATP report which was presented to the Traffic and Pedestrian Safety Committee (TAPS) on January 8, 2025. Input from the TAPS, City staff and the community are being incorporated into the ATP. Due to the significant revisions and additions needed, staff will bring to City Council review and approval an amendment to the GHD contract in order to increase the project budget to be paid at the satisfactory completion of the plan.

This item is currently planned for City Council consideration on June 17, 2025. • Storm Drain Master Plan (IN1703): On August 15, 2023, City Council awarded a contract to West Yost Associates (West Yost) to develop the City’s Storm Drain Master Plan. This project is intended to identify, analyze and prioritize the capital improvement needs of the City’s storm water management system to reduce flood risks, enhance public safety and protect City assets. Findings and recommendations developed during preparation of the Storm Drain Master Plan will be used by staff to develop or update CIP projects, and the final Plan will be presented to City Council. This project was delayed due to several unforeseen staffing shortages and was recently resumed with regular coordination with the West Yost team. Available data and maps have been supplied by the city, and site inspections of the drain inlets throughout the city are

presently underway by the consultant.
• San Pablo Avenue Bridge Replacement (RO1710): The San Pablo Avenue bridge over the Burlington Northern Santa Fe Railroad is an integral part of the area’s transportation network. The age and condition assessment of the bridge supports replacement. In February 2020, the City awarded a contract to a consultants’ team to conduct the Preliminary Engineering (PE) and advance the project. Work on the project was recently resumed, and the environmental review (CEQA and NEPA) is scheduled for completion by December 31, 2025, with the project design commencing in early 2026. The project is receiving Highway Bridge Program (HPB), Strategic Management Planning Program (STMP), and Transportation Land-Use Connections (TLC) grant funds. Through coordination with Caltrans, the City will soon be receiving an early release of $177,060.00 of HBP funds to support work through the end of the federal fiscal year (end of September 2025). In addition, staff coordinated with the West County Transportation Commission team to extend the duration of the STMP grant agreement by an additional four years and to allow flexibility in the use of the grant funds. These recent changes were approved by the WCCTC Board on May 23, 2025, and will soon be brought forward for the City’s approval. It should be noted that changes to the STMP grant provisions will assist the City in payment of the local match thereby minimizing/eliminating the project funding impacts on the general fund.

Inspections and Permits:
• Month of March: 167 inspections were performed, 34 permits (3 general encroachment, 21 sewer lateral, and 10 utility encroachment) were issued, and $23,351.60 permit fees were collected.
• Month of April: 134 inspections were performed, 35 permits (1 encroachment, 18 sewer lateral, 2 transportation, and 14 utility encroachment) were issued, and $37,090.10 permit fees were collected.
• May 1st through May 21st: 143 inspections were performed, 28 permits (1 encroachment, 12 sewer lateral, and 15 utility encroachment) were issued, and $29,326.75 permit fees were collected.

Maintenance Operations:
• Month of March: Responding to 428 requests and repairs including 37 stormwater, 18 wastewater, 3 signs, 55 roads (vegetation management, tree trimming, sweeping, etc.), 236 parks (graffiti removal, restrooms, irrigation, turf mowing, etc.), 22 illegal dumping, 5 emergency calls, 2 fleet, and 50 facilities (repairs to plumbing, appliances, furniture, lights, elevator, etc.).
• Month of April: Responding to 382 requests and repairs including 11 stormwater, 18 wastewater, 2 signs, 43 roads, 245 parks, 12 illegal dumping, 6 emergency calls, 2 fleet, and 43 facilities.
• May 1st through May 21st: Responding to 426 requests and repairs including 23 stormwater, 14 wastewater, 12 signs, 39 roads, 247 parks, 14 illegal dumping, 10

emergency calls, 3 fleet, and 64 facilities.

Road repairs have been completed spot treatment and potholing along 15 road segments utilizing 40 tons of rock asphalt on: Mann Drive in the vicinity of the school, Marlesta Road from Marionola Way to Appian Way, Shawn Drive from Tara Hills to Kittery Way, various segments along Wright Avenue, Doidge Avenue from Wright Avenue to Victor Street, Jordan Way, Victor Street from Doidge Avenue to Wright Avenue, Marcus Court from Doidge Avenue to street limit, San Pablo Avenue from Appian Way to Alvarez Avenue, various segments on Pinole Valley Road, intersection of Fitzgerald Avenue and Appian Way, and on Dolores Court.

FISCAL IMPACT
There is no fiscal impact to reporting on projects and operational updates.

ATTACHMENTS
None

CITY COUNCIL
REPORT 9.H.

DATE: JUNE 3, 2025
TO: MAYOR AND COUNCIL MEMBERS
FROM: Heba El-Guindy, Public Works Director, [email protected] SUBJECT: APPROVAL OF AGREEMENT BETWEEN THE CITY OF PINOLE AND WEST

VALLEY CONSTRUCTION COMPANY INC - ROBLE AVENUE STORM
DRAIN IMPROVEMENTS PROJECT (SW2001)

RECOMMENDATION
Review and approval of the Consulting Services Agreement between the City of Pinole and West Valley Construction Company, Inc for the Roble Avenue Storm Drain Improvements Project (SW2001).

BACKGROUND
This project aims to address storm drainage issues, improve vehicular traffic flow, and enhance pedestrian safety conditions along Roble Avenue between San Pablo Avenue and Pinon Avenue. Currently, this residential street segment experiences minor flooding during heavy storm events. In addition, vehicular access is challenging due to the narrow street width. The project will improve the drainage system, as well as expand the roadway including provision of missing sidewalk sections.

Scope of work of the project design and environmental review phase covered under the attached Agreement (Attachment A) includes a review of applicable documents and plans, performing field review and topographic surveys, preparing utility basemap, performing the project’s alternatives analysis and environmental review as applicable, developing detailed design plans and specifications, preparing construction cost estimates, performing community outreach, preparing draft and final project reports, assisting staff with the construction bid documents, and providing design support during project construction.

REVIEW AND ANALYSIS
Staff issued a Request for Proposals (RFP) on November 27, 2024, with due date for proposals submittal on January 9, 2025. Seven proposals were received that range in costs from $114,935.00 to $398,500.00 for the base design services and design support during construction. A three-member panel was formed of two City staff members and one external panelist. The panel reviewed all proposals based on:
• Compliance with the RFP
• The Consultant’s Qualifications
• Assigned Personnel Experience

• Project Approach and Workplan
• Schedule
• Cost Proposal
• Any Potential for Conflict of Interest
Three of the received seven proposals were ranked with an equal top score. As a result, the panel held interviews on February 18th and February 20th of the three shortlisted consulting firms. Following the interviews, staff requested supplemental information from the two top firms remaining to address the potential for environmental review and permitting that may arise during the project planning and design.

West Valley Construction Company, Inc was selected by the panel based on the submitted proposal, follow-up interview, and supplemental optional scope. The original cost proposed by West Valley Construction Company, Inc was $182,470.00 for performing the detailed project design and providing design support during construction, which was later negotiated to $175,520 when taking into account available information. Cost proposal of the additional optional tasks covering environmental review and permitting amounts to up-to $107,314.

FISCAL IMPACT
The engineering design services proposed by West Valley Construction Company, Inc amounts to $175,520. Moreover, optional environmental review and permitting could potentially amounts to an additional cost of up-to $107,314. If approved by City Council, all proposed project costs will be funded by Measure S funds.

Performing the environmental review and design will result in a shovel-ready project that will allow staff to pursue grant funds for project construction currently planned for Fiscal Year (FY) 2026-27.

ATTACHMENTS
A. Resolution
B. Consulting Services Agreement - Roble Avenue Storm Drain Improvements Project

RESOLUTION NO. 2025 – xx

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

COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA, AWARDING A

CONSULTING SERVICES AGREEMENT FOR THE ROBLE AVENUE STORM DRAIN IMPROVEMENTS PROJECT (SW2001) TO WEST VALLEY CONSTRUCTION COMPANY, INC IN AN AMOUNT NOT TO EXCEED $175,520 AND ADDITIONAL OPTIONAL TAKS IN AN AMOUNT NOT TO EXCEED $107,314
WHEREAS, the City of Pinole (“City”) adopted the FY 2024/25 through FY 2028/29 Capital Improvement Plan (CIP) which includes the Roble Avenue Storm Drain Improvements Project (CIP Project # SW2001, the “Project”) as a funded project; and
WHEREAS, the Project will address storm drainage issues, improve vehicular traffic flow, and enhance pedestrian safety conditions along Roble Avenue between San Pablo Avenue and Pinon Avenue; and
WHEREAS, this Project phase is for the design and environmental review, which includes performing field review and topographic surveys, preparing utility basemap, performing the project’s alternatives analysis and environmental review as applicable, developing detailed design plans and specifications, preparing construction cost estimates, performing community outreach, preparing draft and final project reports, assisting staff with the construction bid documents, and providing design support during project construction; and
WHEREAS, on November 27, 2024, City staff released a Request for Proposals (RFP) on www.publicpurchase.com and www.ci.pinole.ca.us/bids with due date for proposals submittal on January 9, 2025; and
WHEREAS, an evaluation panel was formed of two Public Works staff members and an external panelist who reviewed the seven received proposals and conducted interviews of three shortlisted firms; and
WHEREAS, the review panel determined that West Valley Construction Company, Inc (“Consultant”) is the most qualified proposer; and
WHEREAS, a Consulting Services Agreement between the City and West Valley Construction Company, Inc is attached as Exhibit A; and WHEREAS, the current adopted capital budget for the Project has adequate funds to award the Professional Services Agreement; and
NOW THERFORE BE IT RESOLVED that the City Council of the City of Pinole as follows:

1. Consultant is accepted by the City for performing the approved scope of design and environmental review of the Roble Avenue Storm Drain Improvements Project (CIP Project # SW2001).

2. Authorize the City Manager to execute the Consulting Services Agreement (Exhibit A) with Consultant in an amount not to exceed $175,520, and additional optional environmental review and permitting of up-to $107,314.

PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 3rd day of June 2025 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

I hereby certify that the foregoing resolution was regularly introduced, passed, and adopted on the 3rd day of June 2025.
____________________________
Heather Bell
City Clerk

CITY COUNCIL
REPORT 10.A.

DATE: JUNE 3, 2025
TO: MAYOR AND COUNCIL MEMBERS
FROM: Jeremy Crone, Commander, 510-724-8946, [email protected] Melissa Klawuhn, Police Chief, [email protected]
SUBJECT: 1ST READ AB481 MILITARY USE EQUIPMENT

RECOMMENDATION
Staff recommends that the City Council conduct a public hearing, review and approve the 2024-2025 Pinole Police Department Annual Military Equipment Report, and waive full reading and introduce by title only an ordinance approving and re-adopting a Military Equipment Use Policy as Stated in Chapter 2.60 “Military Equipment Policy” of the Pinole City Municipal Code in compliance with AB 481.

BACKGROUND
On September 30, 2021, Governor Newsom signed into law Assembly Bill (AB) 481, requiring a law enforcement agency's applicable governing body, the City Council, to adopt a Military Equipment Use Policy relating to the funding, acquisition, and use of military equipment and implement it by Ordinance. On May 3, 2022, the City Council approved the Department’s Policy (identified as Department Policy 707) finding it meets the requirements under AB 481 and introduced and adopted an ordinance adding Chapter 2.60 “Military Equipment Policy” to the Pinole Municipal Code (Ord. 2022-02).

AB 481 (Government Code §7072) requires that the Department submit to the City Council an annual military equipment report for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use.

The annual report shall include a summary of each type of military equipment, its intended purpose, how each type of equipment was used by the agency during the preceding year, a summary of any complaints received concerning the equipment, the results of any internal audits pertaining to violations of the 1 military equipment use policy, the total cost for each type of equipment, and quantity possessed.

Additionally, the City Council must review the ordinance that it has adopted, at least annually, and vote on whether to renew the ordinance at a regular meeting. During the review process, the City Council must determine, based on the military equipment report, whether each type of military equipment in the report has complied with the standards for approval set forth in Government Code sections 7071(d)(1) and 7071(e)(2). If it determines a type of equipment identified in the report has not complied with the standards for approval, the City Council must either disapprove of the renewal of the ordinance or require modifications to the military equipment use policy in a manner that will resolve the lack of compliance.

The City Council most recently approved and reaffirmed the Department’s Policy (identified as Department Policy 707) on July 2, 2024, finding it met the requirements under AB 48. By this ordinance the Department seeks 1) approval of its 2024-2025 annual military equipment report, 2) authority to acquire one (1) DJI Mavic 3 Thermal (M3T) UAS drone defined as “military equipment” under the statute, and 3) renewal of Pinole Police Department Policy 707 upon a finding that the report has complied with the standards for approval set forth in Government Code sections 7071(d)(1) and 7071(e)(2).

Attachment A is the proposed ordinance. Attachment B is the 2024-2025 Annual Report, including the inventory list of military equipment the Department has and intends to use in the future that falls within the definition of “military equipment” under AB 481. Attachment C is the Department’s military equipment use policy. Attachment D is the Department’s Unmanned Aerial System (UAS) Operations policy.

REVIEW AND ANALYSIS
Annual Report
AB 481 requires a law enforcement agency that receives approval for a military equipment use policy to submit to the City Council an annual military equipment report for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use. (Govt. Code §§7071(d)(1) and 7071(e)(2).) The law enforcement agency must also make each annual military equipment report publicly available on its internet website for as long as the military equipment is available for use. Government Code section 7072 (a) states that the annual report must include the following information:

1. A summary of any complaints or concerns received concerning the military equipment.

2. The results of any internal audits or information about violations of the military equipment use policy. This includes any actions taken in response.

3. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report.

4. The quantity possessed for each type of military equipment.

5. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

6. A summary of how the military equipment was used and the purpose of its use.

In compliance with the Government Code, the Department’s annual use report and policy was released to the community, via the Department’s transparency portal on May 6, 2025, and provided to City Council. Within 30 days of submitting and publicly releasing its annual military equipment report, the Department is required hold at least one well-publicized and conveniently located public meeting, at which the general public may discuss and ask questions regarding the annual military equipment report and the law enforcement agency’s funding, acquisition, or use of military equipment. That meeting is being held concurrently with

the presentation of this ordinance. The annual use report contains all the required elements of Government Code section 7072 (a) set forth above.

The 2024-2025 Annual Report (Attachment B) outlines the Department’s military equipment inventory and usage, community complaints over use of military equipment, and internal audits from May 1, 2024, through April 30, 2025. An inventory was completed on April 12, 2025, which identified all of the Department’s military equipment in preparation to fulfill the obligations set by Assembly Bill 481. Equipment used by the Department during the preceding year is found to be consistent with current Policy 707. No complaints concerning the equipment were made to the Department.

During this period (May 2024 – April 2025), the Department has used military equipment under this policy during community events (ERV and command post) and officer training (ERV, rifles, FN 303 MK2, Drones). The Department utilized the Command Post in a mutual aid request to assist with logistics and personnel on an authorized DUI checkpoint for an allied agency. The Department had three (3) incidents in which an outside agency provided their authorized UAS to assist with the search for fleeing suspects who posed a danger to the community. The Department officially stood up the UAS Drone program in December of 2024. From December 2024 through the end of this period, the Department deployed drones in 27 incidents. These incidents included mutual aid assistance to allied agencies and for incidents taking place in the City of Pinole.

During this period, the Colt AR-15/M4 Carbine rifles underwent routine maintenance.

For the 2024/25 Annual City Budget, Council approved $30,000 for the purchase, training and maintenance of a UAS program (roll-over).

During this period, the Department performed much needed deferred maintenance to the Emergency Rescue Vehicle (ERV/MRAP) in the form of repair to the ballistic windshields.

Proposed Acquisition
In accordance with Government Code section 7072 (a), the Department is requesting approval for the purchase of one (1) additional DJI Mavic 3 Thermal (M3T) UAS (drone) as set forth in the annual report and inventory. The Mavic 3 is an unmanned Aerial System (UAS) designed for public safety. The UAS is a battery powered, remote operated device with a flight time of approximately 36-45 minutes depending on weather and flight conditions. The UAS has proven to be useful to public safety agencies in crime scene analysis, search and rescue, preoperation surveillance and other critical incidents where aerial views enhance the safety and efficiency of law enforcement personnel. The UAS would assist officers or incident commanders in situations that would include, but not limited to: major collision investigations, emergency life threatening situations, search for missing persons, natural disaster management, crime scene photography, and critical incidents for preservation of life and public safety missions. The UAS falls under CA Government Code section 7070(c)(1) – Unmanned, remotely piloted, powered aerial or ground vehicles. The addition of a third drone will increase the redundancy of the program and provide additional training opportunities for our current and future pilots while maintaining appropriate equipment rotation for in-service.

The UAS is operated under FAA Part 107 authorization and regulations and in accordance with Department Policy 607- Unmanned Aerial System (UAS) Operations (Attachment D). This

policy ensures compliance with FAA regulations, sets forth training requirements, authorizations for use, privacy, and prohibited uses.

The Department has a significant interest in continuing to have access to equipment that will provide peace officers as many options as possible to safeguard lives, ensure safety, and protect civil liberties of the citizens of the City of Pinole. The use of the military equipment identified on the inventory list is vital to the Department’s mission and will continue to be strictly regulated through internal processes and oversight.

Renewal of Military Equipment Use Policy
In addition, the Department is required to re-submit the previously approved policy for reapproval consideration, as an agenda item during open session. The previously approved policy is attached to this report (Attachment C). Council must determine, based on the annual military equipment report, whether each type of military equipment identified in the report has complied with the following:

1. The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety.

2. The policy will safeguard the public’s welfare, safety, civil rights, and civil liberties.

3. If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety.

4. Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.

The Department does not anticipate any significant change in the previously approved policy but does seek approval to acquire additional equipment. The Department intends to acquire one (1) DJI Mavic 3 Thermal (M3T) UAS drone as further provided above. At this time, forecasted purchases for the Department in 2025/26 only include additional ammunition for the previously approved COLT AR15/M4 patrol rifles and projectiles for the previously approved FN 303 MK2 launchers which need to be replenished after being used in either the field or training environments. The Department also anticipates upgrading the front sights of the COLT AR15/M4 platform to increase low-light performance and durability. In addition, it intends to replace the patrol rifle lights due to the current light reaching the end of service life. All items needing to be replenished are included in the policy and attached inventory which were previously approved by the City Council.

Any future attempts to obtain additional equipment not provided for herein will comply with procedures set forth in the Government Code and the approved military equipment policy; this includes a public hearing and City Council approval prior to acquisition.

Through acceptance of the annual report and renewal of the ordinance, the City Council will authorize the continued use of preexisting equipment considered “military equipment” under AB 481. This includes a Mine Resistant Ambush Protected Vehicle (MRAP) for use as an Emergency Rescue Vehicle (ERV) to safely evacuate residents in the event of a natural disaster or critical incidents, to move personnel and/or resources in support of natural disasters (i.e. flood, fire, earthquake), large scale logistics, active shooter incidents, and incidents where

there is reason to expect potential armed resistance requiring protection. The Policy also includes a single unmanned, remotely piloted, powered ground vehicle used to enhance peace officer and community safety when encountering potentially dangerous situations by providing first responders with the ability to capture video and still images, and to transport communication equipment or other resources prior to, or in lieu of, sending in personnel into hazardous incidents or environments.

The use of UAS (drones) has proven to be vital to the safety and security of our community, enabling the Department to conduct area searches, located wanted persons, assess scenes prior to officer arrival and provide public safety services to our law enforcement partners.

Other items deemed to be “military equipment” under AB 481 include foundational equipment such as rifles and ammunition. These rifles allow peace officers to address lethal threats from a greater distance and with greater precision. The Department also seeks authorization to use four FN 303 MK2 Launcher and projectiles, to limit the escalation of conflict where employment of lethal force is prohibited or undesirable. The projectiles provide officers with a less-lethal option in incidents of combative or self-destructive individuals, riot/crowd control and civil unrest incidents, circumstances where a tactical advantage can be obtained, potentially vicious animals, and training exercises or approved demonstrations. The equipment allows for more time and opportunity to attempt to deescalate situations and provide for safer tactics to resolve life threatening events in the safest way possible.

The Policy safeguards the public’s welfare, safety, civil rights and civil liberties by ensuring that there are safeguards, including transparency, oversight, and accountability measures in place.

For instance, the Policy authorizes the Chief of Police to designate a member of the Department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include, but are not limited, acting as a liaison to City Council for all matters related to the requirements of AB 481, identifying “military equipment” as defined under the statute, conducting annual inventory and review, collaborating with outside agencies, and scheduling and coordinating an annual community engagement hearing to address the Department's funding, acquisition, and use of military equipment.

In compliance with the Government Code, the Military Equipment Policy has remained on the Department’s transparency portal continuously since prior to Council adoption in 2022.

FISCAL IMPACT
There is no direct fiscal impact from the acceptance of the annual report or the approval of continuing the ordinance approving the military equipment use policy. The Policy explicitly references the fiscal impact related to costs to maintain or acquire equipment and is included in the existing department’s budget allocation.

ATTACHMENTS
A. Notice Public Hearing (AB 481) 2025
B. 2024_2025 PPD Military Annual Report Document Final
C. Pinole_Ordinance Re-Adopting Military Equipment Use Policy (AB 481) 2025

D. 2025 AB481 Certificate of Complaince 3_25
E. Pinole PD CA Policy Manual Military Use Policy 2025
F. Pinole PD CA Policy Manual UAS Policy 2025
G. AB481 PPD Council Presentation and Annual Report 2025

CITY OF PINOLE

PUBLIC HEARING NOTICE
Notice is hereby given that on Tuesday, June 3, 2025, at or after 5:00 P.M., in the City Council Chambers, 2131 Pear Street, Pinole, California, the City Council of the City of Pinole will hold a Public Hearing in the matter of:

CONSIDERATION OF AN ORDINANCE APPROVING RENEWAL OF THE CITY’S MILITARY EQUIPMENT POLICY AS STATED IN CHAPTER 2.60 OF THE PINOLE MUNICIPAL CODE AND REVIEW OF 2024-2025 ANNUAL REPORT
Assembly Bill (AB) 481 (codified at Govt. Code §§7070 et. seq.) requires that the City of Pinole Police Department obtain City Council approval of a military equipment use policy via adoption of an ordinance before purchasing, raising funds for, acquiring or using "military equipment" as defined in Government Code §7070 (c). On May 3, 2022, the City Council adopted Ordinance 2022-02 approving and adopting a military equipment use policy as stated in Pinole Municipal Code Chapter 2.60 and identified as Pinole Police Department Policy 707. AB 481 requires all law enforcement agencies that have received approval for a military equipment use policy to submit to the City Council an annual military equipment report for each type of military equipment approved within one year of approval and annually thereafter. The City Council must review any ordinance that it has adopted at least annually and, based upon the annual report, vote on whether to renew the ordinance. The City Council most recently approved and reaffirmed the Department’s Policy on June 6, 2024 (Ord. 2023-04).

The Pinole Police Department seeks renewal of Policy 707. On June 3, 2025, this City Council is scheduled to review and consider for approval the policy and annual military equipment report for the calendar year 2024, at which time members of the public may discuss and ask questions.

In compliance with AB 481, a copy of the proposed policy and annual report is available to the public in advance of the hearing and available for viewing on the department’s website at:
https://www.ci.pinole.ca.us/city_government/police/resources Instructions on how to join the Zoom Teleconference to provide comments orally during the public hearing are contained in the agenda for the meeting. Copies of the text of the proposed ordinance will be available for public review as part of the City Council agenda and meeting packet no later than May 13, 2025 at 5:00 PM.

If you challenge the action of the City Council on this matter in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice, or in written correspondence delivered at, or prior to the Public Hearing.

Dated: June __, 2025
/S/
Heather Bell
City Clerk

PINOLE POLICE

DEPARTMENT

ANNUAL MILITARY

EQUIPMENT REPORT
MAY 2024 – APRIL 2025

May 2025 Annual Military Equipment Report for 2024/2025 1 Table of Contents
Introduction................................................................................................ 2 Definitions .................................................................................................. 3 Summary of Military Equipment................................................................. 4 Military EquipmentInventory...................................................................................... 4 Equipment Purchase & Training Use........................................................... 8 Community Concerns and Complaints ........................................................ 9 Internal Military Equipment Inventory & Audit.......................................... 10 Projected Military Equipment Acquisition (2025/2026) ............................. 14

May 2025 Annual Military Equipment Report for 2024/2025 2 INTRODUCTION
On September 30, 2021, the Governor of the State of California approved Assembly Bill 481 (codified as Chapter 12.8 of the California Government Code) requiring law enforcement agencies such as the Pinole Police Department to have a military use policy approved by the City Council prior to requesting, seeking funding, acquiring or using military equipment. Assembly Bill 481 allows the governing body to approve the policy within its jurisdiction only if it determines that the military equipment meets specified standards.

On May 3, 2022, the City of Pinole Council adopted Ordinance 2022-02 approving Pinole Police Department Policy #707: Military Equipment Funding, Acquisition, and Use. As required by Assembly Bill 481 and the Ordinance, annually the Pinole Police Department must prepare a report on the use of each type of military equipment approved in the Policy over the last year. Subsequently, the City Council must then review the Ordinance, Policy and Annual Report, and determine whether the Department’s use of military equipment in the past year complied with the Policy, and whether to continue the Ordinance and Policy, take action (by ordinance) to modify the Policy or repeal the Ordinance.

As set forth in the Policy, the Pinole Police Department retains and employs limited military equipment to safeguard its community. Pinole Police Department officers and certified instructional staff, receive training throughout the year on the use of military equipment approved under the Policy. The Department also maintains a current Certificate of Compliance for California Government Code with the State of California, via Cal OES.

This Annual Report outlines the Pinole Police Department’s military equipment inventory andusage, community complaints over use of military equipment, and internal audits from May 1, 2024, through April 30, 2025. The Department will submit its Military Equipment Annual Report to City Council annually in compliance with AB 481.

May 2025 Annual Military Equipment Report for 2024/2025 3 DEFINITIONS
Definitions of Military Equipment established by California Government Code §7070:
(Pinole Police Department utilizes a limited number of the resources listed below) Military equipment includes but is not limited to the following types of equipment:
• Unmanned, remotely piloted, powered aerial or ground vehicles • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached
• Tracked armored vehicles that provide ballistic protection to their occupants • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units • Weaponized aircraft, vessels, or vehicles or any kind • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram
• Firearms and ammunition of .50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition
• Specialized firearms and ammunition of less than .50 caliber, including firearms and accessories identified as assault weapons in Penal Code §30510 and Penal Code §30515, with the exception of standard-issue firearms • Any firearm or firearm accessory that is designed to launch explosive projectiles • Noise-flash diversionary devices and explosive breaching tools • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray
• Taser Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs)
• Kinetic energy weapons and munitions (e.g. 40MM launcher, bean bag shotgun, foam tipped projectiles)
• Any other equipment as determined by a governing body or a state agency to require additional oversight.

May 2025 Annual Military Equipment Report for 2024/2025 4 Pinole Police Department Military Equipment
Inventory

1. Equipment Type: Mine Resistant Ambush Protected Vehicle (MRAP) – CA Govt Code §7070(c)(2)
Quantity Owned or Sought: 1 Lifespan: Unknown
Purpose/Authorized User: Emergency Rescue Vehicle (ERV) to safely evacuate residents in the event of a natural disaster or critical incidents. To move personnel and/or resources in support of natural disasters (i.e. flood, fire, earthquake), large scale logistics, active shooter incidents, and incidents where there is reason to expect potential armed resistance requiring protection. Use may be authorized by Watch Commander or Tactical/Operations Commander, based on the circumstances of the given incident.

Fiscal Impact: Acquired under the Law Enforcement Support Program Office (LESO): $0 for equipment. $9,200 for delivery, paint and upfitting. Annual maintenance cost is approximately $1,000.00. For the reporting period of May 2024 – April 2025, $8,090 was spent on deferred maintenance to repair the ballistic glass windshields.

Legal and Procedural Rules Governing: It is the policy of the department to utilize armored vehicles only for law enforcement purposes and pursuant to State and Federal law.

Training Required: Department provided training.

Other Notes: The MRAP is an armored vehicle manufactured by BAE Systems/Caiman weighing over 34,000 pounds and can carry a payload of over 4,000 pounds. The vehicle has six (6) wheels fitted with tires and is all-wheel drive, powered by a diesel engine. The vehicle measures approximately 22 feet long, 8 feet wide, and 10 feet tall.

2. Equipment Type: Unmanned, remotely piloted, powered ground vehicles - CA Gov’t Code §7070(c)(1)
Quantity Owned/Sought: 1 Lifespan: Approximately 15 years Equipment Capabilities: Vehicle is capable of being remotely navigated to provide scene information and intelligence in the form of video and still images transmitted to first responders.

Manufacturer Product Description: iRobot PackBot 510 Multi Mission Robot (MMR) Purpose/Authorized Uses: To enhance officer and community safety when encountering potentially dangerous situations by providing first responders with the ability to capture video and still images, to transport communication equipment or other resources prior to, in lieu of sending in personnel into hazardous incidents or environments.

Fiscal Impacts: Acquired under the Law Enforcement Support Program Office (LESO): $0 for equipment. Annual maintenance cost is approximately $500.

Legal/Procedural Rules Governing Use: The use of unmanned, remotely piloted, powered ground vehicles potentially involves privacy considerations. Absent a warrant or exigent circumstances, operators and observers shall adhere to all applicable privacy laws and shall not intentionally record or transmit images of any location where a person would have a reasonable expectation of privacy.

Training Required: Department provided training.

May 2025 Annual Military Equipment Report for 2024/2025 5 Other Notes: None

3. Equipment Type: Unmanned, remotely piloted, powered aerial or ground vehicles - CA Gov’t Code §7070(c)(1)
Quantity Owned/Sought: 2 Lifespan: Approximately 5 years Equipment Capabilities: Vehicle is capable of being remotely navigated to provide scene information and intelligence in the form of video and still images transmitted to first responders.

Manufacturer Product Description: DJI Mavic 3 Thermal (M3T) UAS Purpose/Authorized Uses: Unmanned Aerial System (UAS) designed for public safety. The UAS is a battery powered, remote operated device with a flight time of approximately 36-45 minutes depending on weather and flight conditions. The UAS has proven to be useful to public safety agencies in crime scene analysis, search and rescue, pre-operation surveillance and other critical incidents where aerial views enhance the safety and efficiency of law enforcement personnel. The UAS would assist officers or incident commanders in situations that would include, but not limited to: major collision investigations, emergency life threatening situations, search for missing persons, natural disaster management, crime scene photography, and critical incidents for preservation of life and public safety missions.

Fiscal Impacts: DJI Mavic 3 Thermal (M3T): $6,000, quantity 2 (Total: ~$12,000) Legal/Procedural Rules Governing Use: The use of unmanned, remotely piloted, powered ground vehicles potentially involves privacy considerations. Absent a warrant or exigent circumstances, operators and observers shall adhere to all applicable privacy laws and shall not intentionally record or transmit images of any location where a person would have a reasonable expectation of privacy.

Training Required: FAA Part 107, POST UAS Operator, and Department provided training.

Other Notes: Capabilities include 48 MegaPixel camera, 56x tele zoom, 640x512 thermal sensor, one-way speaker, and spotlight.

4. Equipment Type: Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units – CA Govt Code §7070(c)(5)
Quantity Owned or Sought: 1 Lifespan: 20 years
Purpose/Authorized User: Trailer is purpose‐built to facilitate the operational control and direction of public safety units conducting DUI enforcement checkpoints, traffic safety operations, and responding to or at an incident. The Command and Control (C&C) trailer serves as a centralized location for command decision making, enhanced communication and other situational awareness capabilities. Use may be authorized by Watch Commander or Tactical/Operations Commander, based on the circumstances of the given incident.

Fiscal Impact: Acquired by grant issued by the State of California Office of Traffic Safety under a Traffic Safety Grant. $40,415 for equipment. Annual maintenance cost is approximately $1000.

Legal and Procedural Rules Governing: It is the policy of the department to utilize C&C trailer only for law enforcement purposes and pursuant to State and Federal law.

Training Required: Department provided training.

Other Notes: The command-and-control trailer is standard tow-behind trailer with dual axels manufactured by Universal Trailer with a GVW of 3,100 pounds. The trailer measures

May 2025 Annual Military Equipment Report for 2024/2025 6 approximately 16 feet long, 8.5 feet wide, and 9 feet tall. The trailer is equipped with a folddown rear door, lighting, and a generator.

5. Equipment Type: Semiautomatic Rifles and Ammunition - CA Gov’t Code §7070(c)(10) Quantity Owned or Sought: 28 Lifespan: 15 years
Purpose/Authorized User: Colt AR-15/M4 Carbine semiautomatic shoulder fired rifle with long spirally grooved barrel that fires .223 Rem/5.56 mm projectile bullet. The rifles are equipped with 10.5” barrel, Surefire muzzle brake, and Surefire SOCOM556-RC2 suppressors.

Ammunition is Speer Gold Dot caliber .223 62 grain.

A standard officer issue to be used as a precision weapon to address a threat with more precision and/or greater distances than a handgun, if present and feasible.

Fiscal Impact:
• Colt AR-15/M4 Rifle: $32,400, quantity: 28
• Surefire muzzle brake: $2,779, quantity: 28
• Surefire SOCOM556-RC2 Suppressors: $22,408, quantity: 28 • .223 62 gr ammunition: $2,715, quantity: 4,525
• Annual maintenance cost is approximately $1,500
Legal and Procedural Rules Governing: All applicable State, Federal and Local laws governing police use of force. Various Pinole Police Department Policies on Use of Force and Firearms.

Training Required: Department firearms training and qualifications as required by law and policy by POST certified instructors. CA POST certified 24-hour patrol rifle course.

Other Notes: These rifles are standard issue service weapons for our officers and therefore exempted from this Military Equipment Use Policy per CA Gov’t Code §7070 (c)(10). They have been included in this document in an abundance of caution and in the interest of transparency.

6. Equipment Type: Pepper Ball Launcher and Projectiles - CA Gov’t Code §7070(c)(12) Quantity Owned or Sought: 4 Lifespan: 20 years
Purpose/Authorized User: FN 303 MK2 Less Lethal Launcher utilizing compressed-air to fire less-lethal fin-stabilized projectiles. The FN303 MK2 features a magazine fed system that offers the ability to quickly switch between projectile types. Projectiles: .5% PAVA containing pepper powder designed for direct impact and area saturation, Clear Impact projectile intended for distraction, Washable Paint for training and marking, Indelible Paint projectile intended for marking with indelible colorant for later identification, and Inert Powder projectile for training.

To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

Provides officers with a less-lethal option in incidents of combative or self-destructive individuals, riot/crowd control and civil unrest incidents, circumstances where a tactical advantage can be obtained, potentially vicious animals, and training exercises or approved demonstrations.

The FN 303 MK2 is a like for like replacement of the PepperBall VKS Launcher legacy system.

Fiscal Impact:
• FN 303 MK2 & Slings: $5,080, quantity: 4

May 2025 Annual Military Equipment Report for 2024/2025 7 • PAVA Projectile: $768, quantity: 128
• Indelible Paint Projectile: $750, quantity: 150
• Washable Paint Projectile: $1,461, quantity: 300
• Inert Powder Projectile: $456, quantity: 450
• Magazine Assembly, Slings, and Maintenance Items: $486 • Cases: $1,587, quantity: 4
• Annual maintenance cost is approximately $250
Legal and Procedural Rules Governing: All applicable State, Federal and Local laws governing police use of force. Various Pinole Police Department Policies on Use of Force.

Training Required: Department provided training conducted by POST certified instructors.

Other Notes: None

7. Equipment Type: Less-Lethal Shotgun and Bean Bag Projectile - CA Gov’t Code §7070(c)(14)
Quantity Owned or Sought: 4 Lifespan: 25 years
Purpose/Authorized User: Remington 870 Less-Lethal 12-gauge Shotgun with orange and black marked stocks is used to deploy the less lethal 12-guage CTS Super-Sock Beanbag round.

The Combined Tactical Systems (CTS) Super-Sock Beanbag round is a less-lethal 2.4-inch 12- gauge shotgun round firing a ballistic fiber bag filled with 40 grams of lead shot.

To limit the escalation of conflict where employment of lethal force is prohibited or undesirable.

Provides officers with a less-lethal option in incidents of combative or self-destructive individuals, riot/crowd control and civil unrest incidents, circumstances where a tactical advantage can be obtained, potentially vicious animals, and training exercises or approved demonstrations.

Fiscal Impact:
• Remington 870 Less-Lethal 12-guage Shotgun: $2,200, quantity: 4 • CTS Model 2581 Super-Sock Beanbag Round: $1,090, quantity: 200 • Glass Breaker Ball: $480, quantity: 200
• Annual maintenance $0
Legal and Procedural Rules Governing: All applicable State, Federal and Local laws governing police use of force. Various Pinole Police Department Policies on Use of Force.

Training Required: Department provided training conducted by POST certified instructors.

Other Notes: None

May 2025 Annual Military Equipment Report for 2024/2025 8 Equipment Purchase and Training Use
2024/2025 Purchases and Maintenance
Military Equipment Quantity Cost Date of Purchase
COLT AR 15/M4 –
maintenance
1 $224.03 11/01/2024
COLT AR 15/M4 –
ammunition, .223 62 gr 2,000 $1,217.08 11/06/2024
FN 303, training
projectiles 150 $219.63 11/26/2024
MRAP, Ballistic
Windshield Repair 1 $8,069.00 10/09/2024
2024/2025 Training/ Military Equipment Utilized
Training Military
Equipment
Frequency
Officer Training - Range
Colt AR-15/M4
Carbine w/
.223/556
ammunition
Quarterly Ranges
Officer Certification -
Range
Colt AR-15/M4
Carbine w/
.223/556
ammunition
As needed for certification.

Two (2) courses in in this
period
Patrol Rifle Armorers
Course
Colt AR-15/M4
Carbine w/
.223/556
ammunition
As needed. One (1) course
in this period
FN 303 MK2Training -
Range
FN 303 MK2 Annually for patrol
personnel and as needed for
new Officers
ERV Orientation and
Driver Training
MRAP/ERV As needed for new Officers
and Community Service
Officers

May 2025 Annual Military Equipment Report for 2024/2025 9 UAS Operator
Certification Training
UAS/Drone As needed for new UAS
Operators. One (1) course
during this period
UAS Operator Ongoing
Training
UAS/Drone Quarterly
Community Concerns and Complaints
In April of 2022, the Pinole Police Department published its Military Equipment Funding, Use and Acquisition policy on its website which remains publicly available on the website as amended annually thereafter. Community concerns and complaints can be received via the Department’s website, in-person at the police department or in the field during police contacts, telephone, emails and social media.
2024/2025 Community Concerns, Complaints & PD Internal Investigations Related to Military Equipment Use
Community Concerns Community Complaints PD Internal Investigations 0 0 0
**No formal complaints or concerns were brought forward by the public. Officers regularly engaged with the community regarding the use of the ERV at community events and its role within the community.

May 2025 Annual Military Equipment Report for 2024/2025 10 Internal Inventory & Audit (PPD Military
Equipment)
Per Pinole Police Department policy 707.3 (c), the Department’s military equipment coordinator, is required to complete an internal inventory of all military equipment within the possession of the Department at least once annually.

An inventory was completed on April 12, 2025, which identified all of the Department’s military equipment in preparation to fulfill the obligations set by Assembly Bill 481.

The Department did not add any new military equipment to its inventory since that time.

All current military equipmentinventory was found to be in good shape and working order. 2024/2025 Event or Incident Military Equipment Utilized Case# /
Incident#
Date Equipment
Used
Classification Reason
06/09/2024 Command Post Event Pride Event
06/23/2024
Command Post
ERV Event Pinole Car Show
07/04/2024
Command Post
ERV Event 4th of July Celebration
24-0881 07/10/2024 UAS (Drone) Incident
Mutual Aid use of outside
agency drone for pursuit
ending in Pinole. Search for
suspects
24-0932 07/21/2024 UAS (Drone Incident
Mutual Aid use of outside
agency drone for search and
arrest of armed robbery
suspects
2409220064 09/22/2024
Command Post
ERV Event Green Day Event
10/01/2024 Command Post Event National Night Out

May 2025 Annual Military Equipment Report for 2024/2025 11 10/05/2024 Command Post Event Special Olympics Bike the Bridges
10/31/2024 ERV Event Halloween Caravan
24-1410 11/04/2024 UAS (Drone) Incident
Mutual Aid use of outside
agency drone for search for
vehicle burglary suspect who
fled
24-1553 12/10/2024 UAS (Drone) Incident
Pinole PD
Scene and officer security for
suicidal subject taken into
protective custody
12/12/2024 Command Post Event Shop with a Cop / Toy Drive 12/20/2024 Command Post Event
Mutual Aid to Hercules PD
for DUI Checkpoint
2412240105 12/24/2024 UAS (Drone) Incident
Pinole PD
Areas search for subjects on
dirt bikes
2412300078 12/30/2024 UAS (Drone) Incident
Pinole PD
Search for suspicious vehicle
in the hills
2412300147 12/30/2024 UAS (Drone) Incident
Pinole PD
Stranded kayaker stuck in
mud in bay
25-084 01/19/2025 UAS (Drone) Incident
Pinole PD
Search and arrest of
domestic violence suspect
2501210188 01/21/2025 UAS (Drone) Incident
Pinole PD
Areas search for subjects on
dirt bikes
25-0106 01/23/2025 UAS (Drone) Incident
Pinole PD
Areas search and arrest of
hit and run suspect
2501250014 01/25/2025 UAS (Drone) Incident
Pinole PD
Mutual aid for outside
agency looking for robbery
suspects
2501250035 01/25/2025 UAS (Drone) Incident
Pinole PD
Mutual aid for outside
agency looking for stolen

May 2025 Annual Military Equipment Report for 2024/2025 12 vehicle suspects
2501270160 01/27/2025 UAS (Drone) Incident
Pinole PD
Areas search for subjects on
dirt bikes
2502200092 02/20/2025 UAS (Drone) Incident
Pinole PD
Mutual aid for outside
agency for welfare check on
subject who was armed
threated officers
25-0234 02/23/2025 UAS (Drone) Incident
Pinole PD
Area search for suspects and
victims of reports of gun fire
2502280213 02/28/2025 UAS (Drone) Incident
Pinole PD
Area search for a subject
reported to have a gun -
unfounded
25-0256 03/01/2025 UAS (Drone) Incident
Pinole PD
Areas search for a vehicle
burglary suspect
2503010038 03/01/2025 UAS (Drone) Incident
Pinole PD
Mutual aid for outside
agency for burglary in
progress
2503080037 03/08/2025 UAS (Drone) Incident
Pinole PD
Mutual aid for outside
agency to assist on search
2503140006 03/14/2025 UAS (Drone) Incident
Pinole PD
Mutual aid for outside
agency to assist on search
25-0347 03/19/2025 UAS (Drone) Incident
Pinole PD
Area search for armed
robbery suspects
2503260082 03/26/2025 UAS (Drone) Incident
Pinole PD
Mutual aid for outside
agency to assist on search
25-0391 03/27/2025 UAS (Drone) Incident
Pinole PD
Search for stolen equipment
25-0391 03/28/2025 UAS (Drone) Incident
Pinole PD
Scene and Officer security
for search warrant
2504020122 04/02/2025 UAS (Drone) Incident
Pinole PD
Search for bobcat near
school and residences
2504020203 04/02/2025 UAS (Drone) Incident
Pinole PD
Mutual aid for outside
agency to assist in search
warrant

May 2025 Annual Military Equipment Report for 2024/2025 13 2504090089 04/09/2025 UAS (Drone) Incident
Pinole PD
Mutual aid for outside
agency in search of wanted
subject
2504090118 04/09/2025 UAS (Drone) Incident
Pinole PD
Mutual aid for outside
agency in search of wanted
subject
2504120024 04/12/2025 UAS (Drone) Incident
Pinole PD
Mutual Aid for outside
agency in search of wanted
subject
2504120030 04/12/2025 UAS (Drone) Incident
Pinole PD
Mutual Aid for outside
agency in search of stolen
vehicle suspects

May 2025 Annual Military Equipment Report for 2024/2025 14 Projected Military Equipment Acquisition
(2025/2026)
For 2025/2026 (May - April), the Pinole Police Department projects the purchase of COLT AR15/M4 ammunition and FN 303 MK2 projectiles to replenish inventory due to training. The Department anticipates the purchase of one (1) additional Mavic 3T UAS (drone) with funds approved during the 2023/2024 budget (rolled to 2024/2025).

The Department also anticipates upgrading the existing sight posts on the COLT AR15/M4 platform to increase visibility in low-light environments and overall durability.

In addition, the Department is evaluating the replacement of the current lighting system on the COLT AR15/M4 platform due to the current lighting system reaching end of life.

Military Equipment Projected Purchase
Amount
Projected Purchase Price
.223 62 gr ammunition 7,000 rounds $4,000
FN 303 MK2 Projectiles 300 rounds $1,400
Mavic 3T UAS 1 Drone with support
equipment
$8,000
COLT AR15/M4 Front Sights 30 $3,800
COLT AR15/M4 Lights 30 $5,500

ORDINANCE NO. 2025-XXXX

AN ORDINANCE OF THE CITY OF PINOLE APPROVING AND RE-ADOPTING A MILITARY EQUIPMENT USE POLICY AS STATED IN CHAPTER 2.60 “MILITARY EQUIPMENT POLICY” OF THE PINOLE MUNICIPAL CODE IN COMPLIANCE WITH ASSEMBLY BILL 481 (GOVERNMENT CODE SECTION 7070, et. seq.) WHEREAS, on September 30, 2021, Governor Gavin Newsom signed into law Assembly Bill 481 relating to the use of military equipment by California law enforcement agencies; and WHEREAS, Assembly Bill 481 seeks to provide transparency, oversight, and an opportunity for meaningful public input on decisions regarding whether and how military equipment is funded, acquired, or used by law enforcement agencies; and
WHEREAS, Assembly Bill 481, codified at California Government Code section 7070, et. seq., requires law enforcement agencies obtain approval of the applicable governing body, by an ordinance adopting a “military equipment” use policy, at a regular meeting held pursuant to open meeting laws, prior to taking certain actions relating to the funding, acquisition, or use of military equipment. The term “military equipment” is defined in California Government Code section 7070(c); and
WHEREAS, the policy must be a document covering the inventory, description, purpose, use, acquisition, maintenance, fiscal impacts, procedures, training, oversight, and complaint process, applicable to the police department’s use of such equipment; and WHEREAS, Assembly Bill 481 allows the governing body of a city to approve the military equipment use policy for continued or future funding, acquisition, or use of military equipment within its jurisdiction only if it makes specified determinations specified in Government Code section 7071(d); and
WHEREAS, on May 3, 2022, the City Council adopted Ordinance 2022-02 approving and adopting a military equipment use policy identified as Pinole Police Department Policy 707, having received the information required under Assembly Bill 481 regarding the Pinole Police Department’s use of military equipment as defined in said law and upon a finding of the specified determinations required under Government Code Section 7071(d); and WHEREAS, on July 2, 2024, the City Council approved and reaffirmed the Department’s Policy (identified as Department Policy 707) finding it met the requirements under AB 481 and introduced and adopted an ordinance adding Chapter

2.60 “Military Equipment Policy” to the Pinole Municipal Code (Ord. 2024-04).

WHEREAS, Government Code section 7072 provides that a law enforcement agency that receives approval for a military equipment use policy pursuant to Section 7071 shall submit to the governing body an annual military equipment report for each type of military equipment approved by the governing body within one year of approval, and annually thereafter for as long as the military equipment is available for use; and

WHEREAS, the law enforcement agency shall also make each annual military equipment report publicly available on its internet website for as long as the military equipment is available for use; and
WHEREAS, the annual military report shall include the following information for the immediately preceding calendar year for each type of military equipment:
a. A summary of how the military equipment was used and the purpose of its use; b. A summary of any complaints or concerns received concerning the military equipment;
c. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response; d. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report;
e. The quantity possessed for each type of military equipment; f. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment; and WHEREAS, Government Code section 7071(d) provides the governing body shall determine, based on the annual military equipment report submitted pursuant to Section 7072, whether each type of military equipment identified in that report has complied with the following standards for approval:
a. The military equipment is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety; b. The proposed military equipment use policy will safeguard the public’s welfare, safety, civil rights, and civil liberties;
c. If purchasing the equipment, the equipment is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety;
d. Prior military equipment use complied with the military equipment use policy that was in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance; and
WHEREAS, if the governing body determines that a type of military equipment identified in that annual military equipment report has not complied with the standards for approval set forth

above, the governing body shall either disapprove a renewal of the authorization for that type of military equipment or require modifications to the military equipment use policy in a manner that will resolve the lack of compliance; and
WHEREAS, the governing body shall review any ordinance that it has adopted approving the funding, acquisition, or use of military equipment at least annually and vote on whether to renew the ordinance at a regular meeting held pursuant to open meeting laws; and WHEREAS, the Pinole Police Department’s annual military equipment report was posted on the department’s internet website on May 6, 2025 and within thirty (30) days conducted a wellpublicized public meeting concerning the renewal of the military equipment at issue in compliance with Government Code Section 7072 (b); and
WHEREAS, the Pinole Police Department seeks renewal of Policy 707; and WHEREAS, the City Council of the City of Pinole, having received the information required under Assembly Bill 481 regarding the Pinole Police Department’s renewed use of military equipment as defined in said law, and makes the specified determinations required under Government Code Section 7070, et. seq., deems it to be in the best interest of the City to approve and renew the Pinole Police Department’s Military Equipment Funding, Acquisition and Use Policy as set forth in the policy identified as Pinole Police Department Policy 707.

NOW THEREFORE, BE IT RESOLVED, in accordance with Government Code Section 7070 et. seq., and pursuant to the findings stated herein, that the City Council of the City of Pinole hereby finds as follows:

Section 1. Recitals.

The above recitals are true and correct and made a part of this Ordinance.

Section 2. Determinations.

Based on the findings above, in addition to information provided to the City Council at the public meeting, the City Council determines as follows:

1. The military equipment identified in the annual military equipment report has complied with the standards for approval as set forth in Government Code section 7071 subdivision (d).

2. The Pinole Police Department’s Military Equipment Use Policy is necessary because there are no reasonable alternatives that can achieve the same objectives of officer and civilian safety.

3. The Pinole Police Department’s Military Equipment Use Policy will safeguard the public’s welfare, safety, civil rights, and civil liberties.

4. The military equipment identified in the Pinole Police Department’s Military Equipment Use Policy is reasonably cost effective compared to available alternatives that can achieve the same objectives of officer and civilian safety.

5. Prior military equipment use by the Pinole Police Department complied with the Military Equipment Use Policy although it was not yet in effect at the time, or if prior uses did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.

6. The Pinole Police Department’s Military Equipment Use Policy, Policy 707, setting forth the City’s military equipment use policy is approved and renewed.

Section 3. Severability. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each of every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

Section 4. Effective Date and Duration. This ordinance shall take effect thirty (30) days after its final adoption.

Section 5. 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 June 17, 2025, the City Council passed this urgency ordinance by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

IN WITNESS of this action, I sign this document and affix the corporate seal of the City of Pinole on June 17, 2025.
____________________________
Heather Bell, CMC
City Clerk
5361438.1

Policy
707
Pinole Police Department
Pinole PD CA Policy Manual
Military Equipment Funding, Acquisition and Use
Policy
707.1 PURPOSE AND SCOPE
The purpose of this policy is to provide guidelines for the approval, acquisition, and reporting requirements of military equipment (Government Code § 7070; Government Code § 7071; Government Code § 7072). This policy applies to all members of the Department 707.1.1 DEFINITIONS
Definitions related to this policy include (Government Code § 7070):

Governing body – The elected or appointed body that oversees the Department.

Military equipment – Includes but is not limited to the following:
• Unmanned, remotely piloted, powered aerial or ground vehicles. • Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. • High mobility multipurpose wheeled vehicles (HMMWV), two-and-one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. • Tracked armored vehicles that provide ballistic protection to their occupants. • Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units. • Weaponized aircraft, vessels, or vehicles of any kind. • Battering rams, slugs, and breaching apparatuses that are explosive in nature. This does not include a handheld, one-person ram.
• Firearms and ammunition of_.50 caliber or greater, excluding standard-issue shotguns and standard-issue shotgun ammunition.
• Specialized firearms and ammunition of less than_.50 caliber, including firearms and accessories identified as assault weapons in Penal Code § 30510 and Penal Code § 30515, with the exception of standard-issue firearms.
• Any firearm or firearm accessory that is designed to launch explosive projectiles. • Noise-flash diversionary devices and explosive breaching tools. • Munitions containing tear gas or OC, excluding standard, service-issued handheld pepper spray.
• TASER® Shockwave, microwave weapons, water cannons, and long-range acoustic devices (LRADs).
• Kinetic energy weapons and munitions.
• Any other equipment as determined by a governing body or a state agency to require additional oversight.

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Military Equipment Funding, Acquisition and
Use Policy - 599

Pinole Police Department
Pinole PD CA Policy Manual
Military Equipment Funding, Acquisition and Use Policy
707.2 POLICY
It is the policy of the Pinole Police Department that members of this department comply with the provisions of Government Code § 7070 and 7071 with respect to the use and acquisition of military equipment.
707.3 MILITARY EQUIPMENT COORDINATOR
The Chief of Police should designate a member of this department to act as the military equipment coordinator. The responsibilities of the military equipment coordinator include but are not limited to:
(a) Acting as liaison to the governing body for matters related to the requirements of this policy.
(b) Identifying department equipment that qualifies as military equipment in the current possession of the Department, or the equipment the Department intends to acquire that requires approval by the governing body.
(c) Conducting an inventory of all military equipment at least annually. (d) Collaborating with any allied agency that may use military equipment within the jurisdiction of Pinole Police Department (Government Code § 7071). (e) Preparing for, scheduling, and coordinating the annual community engagement meeting to include:

1. Publicizing the details of the meeting.

2. Preparing for public questions regarding the department's funding, acquisition, and use of equipment.
(f) Preparing the annual military equipment report for submission to the Chief of Police and ensuring that the report is made available on the department website (Government Code § 7072).
707.4 MILITARY EQUIPMENT INVENTORY
The following constitutes a list of qualifying equipment for the Department:See attachment: Military Equipment Pinole Police Department Inventory Final 4_2024.pdf 707.5 APPROVAL
The Chief of Police or the authorized designee shall obtain approval from the governing body by way of an ordinance adopting the military equipment policy. As part of the approval process, the Chief of Police or the authorized designee shall ensure the proposed military equipment policy is submitted to the governing body and is available on the website at least 30 days prior to any public hearing concerning the military equipment at issue (Government Code § 7071). The military equipment policy must be approved by the governing body prior to engaging in any of the following (Government Code § 7071):
(a) Requesting military equipment made available pursuant to 10 USC § 2576a. (b) Seeking funds for military equipment, including but not limited to applying for a grant, soliciting or accepting private, local, state, or federal funds, in-kind donations, or other donations or transfers.

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Pinole Police Department
Pinole PD CA Policy Manual
Military Equipment Funding, Acquisition and Use Policy
(c) Acquiring military equipment either permanently or temporarily, including by borrowing or leasing.
(d) Collaborating with another law enforcement agency in the deployment or other use of military equipment within the jurisdiction of this department. (e) Using any new or existing military equipment for a purpose, in a manner, or by a person not previously approved by the governing body.
(f) Soliciting or responding to a proposal for, or entering into an agreement with, any other person or entity to seek funds for, apply to receive, acquire, use, or collaborate in the use of military equipment.
(g) Acquiring military equipment through any means not provided above. 707.6 COORDINATION WITH OTHER JURISDICTIONS
On occasion, the department may be required to assist or be assisted by other law enforcement agencies in a formal Mutual Aid Request or support with day to day operational collaboration (i.e. pursuits, investigative unit assistance, joint law enforcement operations, etc.). The specific guidance and requirements for Mutual Aid is governed by PPD Policy 331 - Outside Agency Assistance.

In certain mutual aid or operational collaboration circumstances, it may be necessary for sworn department members to utilize military equipment in order to fulfill an assigned mission (i.e. active shooter, civil unrest, barricaded suspects in a vehicle, etc.). When sworn department members utilize military equipment in instances of mutual aid or law enforcement collaboration, the following shall apply:
a. Department members are required to adhere to the Department's Military Equipment Procedure and all policies and procedures outlined within the Pinole Police Department's Policy and Procedures Manual, regardless of operational jurisdiction. b. Should the Pinole Police Department request mutual aid from another law enforcement agency within Contra Costa County and military equipment is required during the course of the response, the following shall apply:

1. The Pinole Police Department shall remain in charge of the overall incident command.

2. The Incident Commander or designee shall brief the supervisor from the assisting agency and inform them of the mission, enforcement posture, and any pertinent information related to the incident.

3. The assisting agency will be expected to adhere to their respective policies and procedures, particularly those governing the use of military equipment.

4. If the Incident Commander or their designee is informed of or witnesses the utilization of military equipment by an assisting agency inconsistent with the guidelines set forth in this procedure, the Incident Commander may elect to cancel the request for mutual aid or re-assign the assisting agency to a different support mission.

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Pinole Police Department
Pinole PD CA Policy Manual
Military Equipment Funding, Acquisition and Use Policy
707.7 ANNUAL REPORT
Upon approval of a military equipment policy, the Chief of Police or the authorized designee should submit a military equipment report to the governing body for each type of military equipment approved within one year of approval, and annually thereafter for as long as the military equipment is available for use (Government Code § 7072).

The Chief of Police or the authorized designee should also make each annual military equipment report publicly available on the department website for as long as the military equipment is available for use. The report shall include all information required by Government Code § 7072 for the preceding calendar year for each type of military equipment in department inventory. 707.8 COMMUNITY ENGAGEMENT
Within 30 days of submitting and publicly releasing the annual report, the Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the Department should discuss the report and respond to public questions regarding the funding, acquisition, or use of military equipment.
707.9 COMMUNITY CONCERNS AND COMPLAINTS
The Pinole Police Department has established a Community Concerns and Complaints process with forms available at the department and online. The community will have the ability to provide verbal concerns/complaints over the telephone or in-person at the Pinole Police Department (PPD policy 1010).
707.10 CITY COUNCIL APPROVAL
Pursuant to California Government Code section 7071, the City Council of Pinole approved this Policy pursuant to Ordinance #2024-04. Further substantive amendments to the Policy need to be reviewed and approved by the City Council.

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Policy
608
Pinole Police Department
Pinole PD CA Policy Manual
Unmanned Aerial System (UAS) Operations
608.1 PURPOSE AND SCOPE
The purpose of this policy is to establish guidelines for the use of an unmanned aerial system (UAS) and for the storage, retrieval and dissemination of images and data captured by the UAS.

It is the policy of the department that trained and authorized personnel may use/deploy a UAS when such use is appropriate in the performance of their duties and authorized by the Chief of Police or designee. The deployment of a UAS will be in accordance with Federal, State, and municipal law and as the needs of the department dictate. 608.1.1 DEFINITIONS
Definitions related to this policy include:

Certificate of Authorization (COA) – A certificate granted to an individual or entity by the Federal Aviation Administration (FAA), which outlines specific conditions for flight for small UAS.

Federal Aviation Administration (FAA) – An entity of the federal government that regulates all aspects of civil aviation.

Part 107 – A certificate granted to an individual by the FAA, which outlines specific conditions of flight for small UAS aircrafts.

Pilot in Command (PIC) –Trained officer who is the sole person responsible for the operation of the UAS.

Unmanned aerial system (UAS) - An unmanned aircraft of any type that is capable of sustaining directed flight, whether preprogrammed or remotely controlled (commonly referred to as an unmanned aerial vehicle (UAV)), and all of the supporting or attached systems designed for gathering information through imaging, recording or any other means.

UAS Supervisor – Assigned by the Chief of Police to insure program requirements are met to include maintenance, training, and operations in adherence to policy and FAA regulations.

Visual Observer –Trained officer who may act as a spotter for PIC to assist in navigating the UAS and avoidance of hazards.
608.2 POLICY
Unmanned aerial systems may be utilized to enhance the department’s mission of protecting lives and property when other means and resources are not available or are less effective. Any use of a UAS will be in strict accordance with constitutional and privacy rights and Federal Aviation Administration (FAA) regulations.
608.3 USE OF UAS
Only authorized operators who have completed the required training shall be permitted to operate the UAS.

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Unmanned Aerial System (UAS) Operations -
565

Pinole Police Department
Pinole PD CA Policy Manual
Unmanned Aerial System (UAS) Operations
Use of vision enhancement technology (e.g., thermal and other imaging equipment not generally available to the public) is permissible in viewing areas only where there is no protectable privacy interest or when in compliance with a search warrant or court order. In all other instances, legal counsel should be consulted.

UAS operations should only be conducted consistent with FAA regulations. 608.4 FAA COMPLIANCE FOR DEPLOYMENT
Use of the UAS shall be allowed for criminal investigations or public safety purposes consistent with this policy, provided the requirements below are followed:
(a) Prior to any use of a UAS, the department shall obtain a COA from the Federal Aviation Administration, unless the Police Chief authorizes personnel to use a UAS under the officer's own Part 107 certification.
(b) Prior to the deployment of the UAS, the UAS PIC and the Visual Observer must be adequately trained in the use and operation and must be knowledgeable of the standards set forth in this policy.
(c) Any operation of a UAS must fully comply with all FAA requirements guidelines. It is the PIC's responsibility to ensure compliance with FAA requirements and guidelines and this policy. If the PIC believes the requested deployment potentially violates any federal regulation, guideline or this policy, then the PIC must inform his or her immediate supervisor and the UAS Supervisor.
(d) The PIC may not deploy the UAS for criminal investigative purposes without the knowledge of the on-duty watch commander or senior supervisor should the watch commander not be available.
(e) Where a search warrant would normally be obtained for a criminal investigation, the PIC shall not deploy the UAS until such warrant is secured. This does not apply to non-investigative public safety deployments or for the purpose of training, testing, or evaluation.
(f) Each deployment of an UAS shall be properly documented in a flight log by the PIC.

Such documentation must include at a minimum:
(a) The date, time, and purpose of each deployment.
(b) Whether a search warrant was obtained by the agency. (c) Identity of the PIC and Visual Observer (if there is a Visual Observer. (d) Supervisor approving the deployment.
(g) The PIC that deploys the UAS must have the capability to adequately track and record the flight pattern and location of the UAS.
(h) If more than one UAS is deployed in an area or event, then each PIC shall coordinate and define the parameters of the area where each UAS will be operated. 608.5 AUTHORIZED USES FOR PUBLIC SAFETY DEPLOYMENT
Deployments include but are not limited:

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Unmanned Aerial System (UAS) Operations
(a) Security Checks - The UAS may be deployed while conducting Security Checks of businesses or public lots in furtherance of the department's mission. Indiscriminate surveillance of private areas, absent a call for service requiring a public safety response or applicable warrant is prohibited.
(b) Area Searches – The UAS may be deployed when conducting an area search for missing persons, property, etc.
(c) Crime Scene / Area Documentation – The UAS may be deployed to assist in documenting crime scenes, accident scenes, or other areas where an aerial perspective is needed.
(d) Search and Rescue – The UAS may be deployed during search and rescue operations to assist in locating lost or missing persons or other search and rescue operations. (e) Tactical Situations – The UAS may be deployed during certain tactical situations such as hostage / barricaded gunmen, active shooter, warrant services, or any other situation where an aerial or remote view is advantageous. (f) Fleeing Suspects – The UAS may be deployed to search for suspects that flee from police.
(g) Training – All training flights will be conducted in accordance with the procedure and privacy requirements outlined in this policy.
608.6 PRIVACY
The use of the UAS potentially involves privacy considerations. Absent a warrant or exigent circumstances, operators and observers shall not intentionally record or transmit images of any location where a person would have a reasonable expectation of privacy (e.g., residence, yard, enclosure). Operators and observers shall take reasonable precautions to avoid inadvertently recording or transmitting images of areas where there is a reasonable expectation of privacy.

Reasonable precautions can include, for example, deactivating or turning imaging devices away from such areas or persons during UAS operations.
608.7 PROGRAM COORDINATOR
The Chief of Police will appoint a program coordinator who will be responsible for the management of the UAS program. The program coordinator will ensure that policies and procedures conform to current laws, regulations, and best practices and will have the following additional responsibilities:
• Coordinating the FAA Certificate of Waiver or Authorization (COA) application process and ensuring that the COA is current, and/or coordinating compliance with FAA Part 107 Remote Pilot Certificate, as appropriate for department operations. • Ensuring that all authorized operators and required observers have completed all required FAA and department-approved training in the operation, applicable laws, policies, and procedures regarding use of the UAS.
• Developing uniform protocol for submission and evaluation of requests to deploy a UAS, including urgent requests made during ongoing or emerging incidents.

Deployment of a UAS may require written authorization of the Chief of Police or the authorized designee, depending on the type of mission.

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Published with permission by Pinole Police Department Unmanned Aerial System (UAS) Operations - 567

Pinole Police Department
Pinole PD CA Policy Manual
Unmanned Aerial System (UAS) Operations
• Coordinating the completion of the FAA Emergency Operation Request Form in emergency situations, as applicable (e.g., natural disasters, search and rescue, emergency situations to safeguard human life).
• Developing protocol for conducting criminal investigations involving a UAS, including documentation of time spent monitoring a subject.
• Implementing a system for public notification of UAS deployment. • Developing an operational protocol governing the deployment and operation of a UAS including but not limited to safety oversight, use of visual observers, establishment of lost link procedures, and secure communication with air traffic control facilities. • Developing a protocol for fully documenting all missions. • Developing a UAS inspection, maintenance, and record-keeping protocol to ensure continuing airworthiness of a UAS, up to and including its overhaul or life limits. • Developing protocols to ensure that all data intended to be used as evidence are accessed, maintained, stored, and retrieved in a manner that ensures its integrity as evidence, including strict adherence to chain of custody requirements. Electronic trails, including encryption, authenticity certificates, and date and time stamping, shall be used as appropriate to preserve individual rights and to ensure the authenticity and maintenance of a secure evidentiary chain of custody.
• Developing protocols that ensure retention and purge periods are maintained in accordance with established records retention schedules. • Facilitating law enforcement access to images and data captured by the UAS. • Recommending program enhancements, particularly regarding safety and information security.
• Ensuring that established protocols are followed by monitoring and providing periodic reports on the program to the Chief of Police.
• Maintaining familiarity with FAA regulatory standards, state laws and regulations, and local ordinances regarding the operations of a UAS.
608.8 PROHIBITED USE
The UAS video surveillance equipment shall not be used:
• To conduct random surveillance activities.
• To target a person based solely on actual or perceived characteristics, such as race, ethnicity, national origin, immigration status, religion, sex, sexual orientation, gender identity or expression, economic status, age, cultural group, or disability. • To harass, intimidate, or discriminate against any individual or group. • To conduct personal business of any type.
• The UAS will not be weaponized or used to transport any weapons, explosives, or incendiary devices.

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Pinole Police Department
Pinole PD CA Policy Manual
Unmanned Aerial System (UAS) Operations
608.9 RETENTION OF UAS DATA
Data collected by the UAS shall be retained as provided in the established records retention procedure and schedule.

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1 RiversideCA.gov
CALIFORNIA ASSEMBLY BILL 481
“MILITARY EQUIPMENT POLICY”

COMMUNITY ENGAGEMENT HEARING
Pinole Police Department

Pinole Police Department
2 ASSEMBLY BILL 481
Military Equipment, Funding, Acquisition, and Use
• AB 481 was sponsored by Assembly Member David Chiu
• Approved by Governor Gavin Newsom on September 30, 2021 • Initiate adoption of City ordinance and Pinole Police Department policy by May 2022. Reaffirmed and approved in July 2024.
• Requires each law enforcement agency’s governing body to adopt a written military equipment use policy by ordinance prior to the acquisition and use of any “military equipment,” and the approval of such a policy for the continued use of any existing military equipment.

3 PINOLE POLICE DEPARTMENT
POLICY #707
Under AB 481, the Pinole Police Department is required to provide guidelines for the approval, acquisition and reporting requirements of military equipment (California Government Code sections 7070, 7071 and 7072.)
Pinole Police Department worked with Lexipol (Law Enforcement Risk Management Group), collaborated with the regional law enforcement agencies in Contra Costa County and worked closely with the City Attorney’s office to create PPD policy #707- Military Equipment Funding, Acquisition, and Use.

4 PPD POLICY #707 OVERVIEW
Pinole Police Department’s military equipment policy addresses all of the requirements per AB 481:
• Military Equipment Definition
• Policy Violation(s)
• Military Equipment Coordinator & Duties
• Military Equipment Inventory
• Approval of PPD Policy #707
• Coordination with other Law Enforcement Agencies
• Annual Report
• Community Engagement (includes community concerns & complaints)

5 PPD POLICY #707 EQUIPMENT
Pinole Police Department’s military equipment list per AB 481:
• Mine Resistant Ambush Protected Vehicle (MRAP): Emergency Rescue Vehicle (ERV)
• Unmanned, Remotely Piloted, Powered Ground Vehicles: iRobot PackBot510 • Command and Control Vehicle: Universal Trailer (16 feet) • Semiautomatic Rifles and Ammunition: Colt AR-15 & .223 ammunition** • Pepper Ball Launcher and Projectiles: FN 303 MK2 Launcher, .5% PAVA Ball, Clear Impact, Washable Paint, Indelible Paint
• Less-Lethal Shotgun and Bean Bag Projectile: Remington 870 Less-Lethal 12- guage Shotgun and CTS Super-Sock Beanbag round
• ** standard issued rifles - exempt from AB481. Included in the interest of transparency.

6 APPROVAL & IMPLEMENTATION

TIMELINE
April 12, 2025: Annual audit
April 22, 2024: Policy and Annual Report published
June 3, 2025: Community Engagement Hearing, Public Hearing of Policy, Annual Report, and Ordinance
June 17, 2025: Second reading and approval of Ordinance

ANNUAL REPORT
• A summary of how the military equipment was used
• A summary of any complaints or concerns
• The results of any audits or violations of military equipment • Cost of equipment, maintenance, and upgrades
• Inventory
• Projected acquisitions
7

8 Purchase & Maintenance
• Maintenance to AR-15 patrol rifles: $224
• AR-15 ammunition: $1,217
• FN 303 MK2 Launcher, projectiles, cases, slings, and maintenance equipment: $219
• MRAP (ERV) Windshield Repair: $8,069

9 Training
• Department Officer Range Training:
• AR-15 patrol rifle
• FN 303 MK2 Launcher
• MRAP/ERV Officer Orientation and Driver Training
• UAS Program
• CA POST Certified UAS Operator & Certification Training • FAA Certification

10 Event and Incident Use
• Events:
• Participated in nine (9) community events including (ERV, Command Post):
• Pinole Car Show
• National Night Out
• Pride & Juneteenth Event
• Special Olympics Bike the Bridges
• Green Day Event
• Incidents:
• Mutual aid incidents involving UAS
• 3 receiving UAS support
• 12 providing UAS support
• 15 incidents of UAS deployment to support Pinole PD Operations

11 Community Complaints, Concerns or
Violations
• NONE
• No formal complaints or concerns were brought forward by the public. Officers regularly engaged with the community regarding the use of the ERV at community events and its role within the community.

12 Projected Military Equipment
Acquisition 24/25
• Ammunition for AR-15 patrol rifles: est. $4,000
• FN 303 MK2 Projectiles: est. $1,400
• Mavic 3T UAS (1 Drone): est. $8,000
• COLT Ar15/M4 Upgrade: est. $9,300
• The above costs are included in existing budget(s).

FINDINGS TO BE MADE BY
COUNCIL (June 17th Hearing)
• The military equipment is necessary because there is no reasonable alternative
• The proposed military equipment and policy will safeguard the public’s welfare, safety, civil rights, and civil liberties • The equipment is cost effective compared to available alternatives • Prior military equipment use complied with the policy that was in effect
13

14 Questions?

CITY COUNCIL
REPORT 10.B.

DATE: JUNE 3, 2025
TO: MAYOR AND COUNCIL MEMBERS
FROM: Kelcey Young, City Manager, 5107248933, [email protected] SUBJECT: APPROVAL OF INCREASE TO WASTE COLLECTION RATES (PROP 218)

RECOMMENDATION
Staff recommends the City Council conduct a public hearing and adopt a resolution approving increases to the solid waste collection service rates. The Franchise Agreement will be brought forward in a New Business item later on in the agenda.

BACKGROUND
At the April 15, 2025, City Council meeting, the Council scheduled the Proposition 218 Rate Hearing for this evening. During tonight’s meeting, the City Council will review any protests before making a final decision on the proposed solid waste rates under the new franchise agreement with Republic Services.

Since May 15, 2001, the City of Pinole has maintained a Franchise Agreement with Richmond Sanitary Service, Inc., doing business as Republic Services (Republic). This agreement is set to expire on June 30, 2025. In preparation for the transition, the City Council directed staff to begin negotiations with Republic for a new 15-year contract.

The franchise agreement with Republic covers only solid waste collection services. Legislative compliance functions are managed by the West Contra Costa Integrated Waste Management Authority (RecycleMore), a Joint Powers Authority (JPA) of which Pinole is a member. Postcollection services (e.g. disposal of recycled and compostable materials), and outreach and education, are governed by the Post-Collection Agreement between RecycleMore and Republic. This Post Collection agreement is also scheduled to expire on June 30, 2025.

Under the current franchise agreement, the City receives revenue from two key fees: the franchise fee, which is directed to the General Fund, and a smaller AB939 Fee that supports solid waste diversion programs. Additionally, the City Waste Program Fee, which is allocated to a dedicated fund (Solid Waste 214), will be converted into a Vehicle Impact Fee as part of the new agreement.

REVIEW AND ANALYSIS
Staff, supported by R3 Consulting Group (R3), have completed negotiations with Republic for a fifteen-year term length. This term length is typical for modern franchise agreements and matches the term length negotiated by the nearby cities of San Pablo and Hercules. The proposed negotiated agreement, if approved on June 3, 2025, by the City Council, would be

effective on July 1, 2025, and expire on June 30, 2040.

The solid waste collection rates paid by Pinole residents and businesses are comprised of many different rate components, including the post-collection portion of the rate which is set by RecycleMore and not dictated by the City. Setting that portion of the rate aside, Republic has requested an increase in its portion of residential rates and commercial rates. The City will now regulate industrial rates which were previously unregulated, enhancing transparency for the service which is already exclusive to Republic. The negotiated rate increase would be effective July 1, 2025, with the next rate increase scheduled for January 1, 2027 (18-month rate freeze). Staff is proposing a five-year, $200,000 per year offset of the initial rate increase paid by the City Solid Waste Fund Balance. This would lessen the impact of the rate increase on Pinole customers and is an eligible use of the Solid Waste Fund.

Table 1 summarizes the proposed July 1, 2025 rate components:

This adjustment to rates was negotiated over several months and is justified due to increased current costs for hauling operations above the regular indexed increases in recent years, as well as new program expenses moving forward. The subsequent rates compare favorably to neighboring cities, as shown in the rate survey provided as Tables 2 and 3, below. The total monthly rates shown in Table 2 include: All rates are 2024 rates shown with an escalation factor to January 1, 2026. The 2025 approved San Pablo rates associated with their negotiated franchise agreement approved in late 2024. The 2025 approved Hercules rates associated with their negotiated franchise agreement were approved in April 2025 and the 2025 post-collection rates were approved by RecycleMore.

Table 2: 1/1/2026 Estimated Residential Rate Survey

Commercial rate comparison was conducted for the 1 Cubic Yard container size serviced once a week, with outcomes as shown in Table 3, below.
1/1/2026 Estimated Commercial Rate Survey
Negotiated Outcomes
Staff, assisted by R3, worked with Republic over the past seven months to reach agreement on a modern, regulatory compliant franchise agreement that ensures competitive rates and rate stability. The negotiated outcomes are laid out in the staff report of the New Business Item.

Fee Study
As part of the new solid waste collection agreement negotiations, City staff also contracted with R3 to conduct a Franchise Fee Study (Attached) which was included in the April 15, 2025 City Council agenda packet. The study analyzed and calculated: The City’s costs for performing the required management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Republic Agreement and sanitation system.

An annual use charge to Republic for special and lasting access and use of government property in the public right-of-way for placement of solid waste containers and collection of their contents.The annualized costs of payment repair, maintenance and rehabilitation resulting from the unique impacts on City street pavement caused by Republic’s collection vehicles during the course of providing service.

The City franchise fee of approximately $432,000 annually is fully justified by this study, and the study concluded that the City’s current and projected franchise fee revenues do not exceed the City’s actual reasonable costs as outlined above. Further, the Pavement Impacts associated with the vehicles used in the solid waste system collection (refuse, recyclables and organics) are calculated at an annual value of $1,703,440. Should the City Council approve the proposed rates with a Vehicle Impact Fee, the annual amount collected by the Contractor should not be greater than this amount.

The recommended Vehicle Impact Fee amount which is included in the recommended rates is approximately $1,200,000, which can be used for road repairs associated with the damage caused by collection vehicles.

The Proposition 218 Hearing process requires that the City provide all properties receiving the service for which the fee is charged with a minimum of 45 days written notice prior to the City Council holding a public hearing on the proposed rate increase. On April 19, 2025 Proposition 218 Notices for the proposed solid waste collection service rate increase were mailed to the record owners of parcels and the solid waste collection services ratepayers who are not property owners but are otherwise responsible for paying the solid waste collection service charges.

FISCAL IMPACT
The recommended rates include annual payments to the City from Republic Services of approximately $1,200,000 related to the new Vehicle Impact Fee. The City will be responsible for annual payments to Republic from the Solid Waste Fund of approximately $200,000 for the first five years of the agreement to smooth the impact of the initial rate increase on customers.

There are sufficient funds available in the Solid Waste Fund to fulfill this obligation, and this appropriation will be incorporated into the FY 2025-2026 Annual Budget.

ATTACHMENTS
A. PinoleCity Council Presentation 060325
B. Resolution Approving Rates
C. Fee Study

City of Pinole
New Republic
Services Agreement
June 3, 2025

AGENDA

1. Negotiations Process

2. Key Terms

3. Franchise Fee Study/Rates

4. Recommendation

Negotiations Process
ØCurrent term for the Agreement ends June 30,
2025
ØCurrent Agreement in place since 2001
ØCurrent and future agreement only covers
collection
ØPost-Collection Agreement up for renewal
ØNew case law necessitated fee study

Key Terms
ØExtension to July 1, 2040
ØAn initial 18-month rate freeze
ØIncrease to 2 Single-Family bulky
collections
ØSB 1383 compliance
ØRepublic will provide up to 1,000 cubic
yards of compost or 2,000 cubic yards of
mulch to the City annually.

ØRepublic will now assist the City staff with
abandoned waste removal

Key Terms
Ø Industrial rate regulation now by City Council
Ø Rates adjusted by Water, Sewer, and Trash ( sub-index of CPI)
Ø Annual rate adjustment cap of 5% if CPI above 5% with the balance rolled-over to next rate year
Ø Republic will provide up to 1,000 cubic yards of compost or 2,000 cubic yards of mulch to the City annually.

Ø Republic will now assist the City staff with abandoned waste removal
Ø Reimbursement to the City for consultant and attorney costs for negotiations ($80,000).

Franchise Fee Study
The study analyzed and calculated:

Ø The City’s costs for performing the required management, administration, regulatory compliance and enforcement,
solid waste collection and clean-up, and other obligations associated with the Republic Agreement and sanitation
system.

Ø An annual use charge to Republic for special and lasting access and use of government property in the public rightof-way for placement of solid waste containers and collection of their contents.

Ø The annualized costs of payment repair, maintenance and rehabilitation resulting from the unique impacts on City street pavement caused by Republic’s collection vehicles during the course of providing service.

Franchise Fee Study Findings
Ø The City franchise fee of approximately $432,000
(FY23-24) annually is fully justified by this study.

Ø The pavement impacts associated with the vehicles
used in the solid waste system collection (refuse,
recyclables and organics) are calculated at an annual
value of $1,703,440.

Ø The conservative Vehicle Impact Fee amount which is
included in the recommended rates is approximately
$1,200,000, which can be used for road repairs
associated with the damage caused by collection
vehicles.

Rates (Residential)

How does Pinole compare?

How does Pinole compare?

Recommendation
Ø Accept findings from City fee study
Ø Adopt Resolutions Authorizing:
⎻ Execution of new franchise agreement
⎻ Use of rate stabilization funds (side letter)

City of Pinole
New Republic
Services Agreement
June 3, 2025

RESOLUTION NO. 2025-_____

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF PINOLE DECLARING THE RESULTS OF THE

PROCEEDINGS FOR APPROVAL OF THE SOLID WASTE COLLECTION SERVICE RATE

INCREASE IN ACCORDANCE WITH ARTICLE XIII D OF THE CALIFORNIA

CONSTITUTION, INCREASING THE SOLID WASTE SERVICE RATES, AND APPROVAL

OF AUTOMATIC INFLATIONARY ADJUSTMENTS
WHEREAS, the City Council is considering a new Solid Waste Franchise Agreement with Republic Services starting July 1. 2025; and,
WHEREAS, Article XIII D, Section 6 of the California Constitution (Article XIII D) requires the City Council to consider written protests to the proposed rate increases set forth in Attachment 1 attached and incorporated herein by this reference; and, WHEREAS, Article XIII D requires that prior toimposing or increasing any fee, the City shall provide written notice (the "Notice") by mail of the proposed rates to the record owner of each parcel upon which therates areproposed for imposition andany customer directly liable for the payment of such rates, the amount of the rates proposed, the basis upon which the rates were calculated, the reason for the imposition or increase, and the date, time, and location of a public hearing on the proposed rates; and
WHEREAS, pursuant to Article XIII D, such public notice is required to be provided to the affected property owners and solid waste collection services ratepayers directly liable for the payment of such rates not less than 45 days prior to the public hearing on the proposed rates; and WHEREAS, the City didprovide suchnotice to theaffected property owners and solid waste collection services ratepayers responsible for the proposed rates in compliance with Article XIII D; and
WHEREAS, on June 3, 2025, the City Council held a public hearing to consider the results of protest proceedings conducted in accordance with California Constitution Article XIII D, Section 6(a)(2); and,
WHEREAS, at the public hearing, the City Council considered all oral testimony, written materials, and written protests concerning the imposition of the proposed rates, and at the close of the public hearing, the City did not receive written protests against the approval of the proposed rates from a majority of the affected property owners and solid waste collection services ratepayers; and WHEREAS, the City Council now desires to approve the proposed rates and authorize automatic annual inflationary rate adjustments commencing July 1, 2027, with changes scheduled through and including January 1, 2029.

NOW, THEREFORE, BE IT RESOLVED THAT:

Section 1. The City Council hereby finds and determines that the above Recitals are true and correct and are incorporated herein.

Section 2. The City Council finds the inflationary adjustments are required to keep pace with the costs of providing sustainable and reliable solid waste collection services, including the ability to comply with continuing State mandated solid waste collection service programs and requirements. And that such rates are not in excess of the reasonable costs of providing such services.

Section 3. The proposed rates described in Exhibit A shall become effective July 1, 2025, and the annual automatic inflationary increases are approved to be implemented each January 1, 2027

thereafter, through and including January 1, 2029. The City or Republic Services shall provide, or cause to be provided, written notice each year to property owners and solid waste collection service rate payers who are not property owners but are otherwise responsible for paying the solid waste collection rates, at least thirty (30) days in advance of each annual inflationary increase taking effect.

Section 4. The first rate adjustment, effective January 1, 2027, will be based on the percentage change in CPI for the average CPI value from October 1, 2025 to September 30, 2026, compared to the average CPI value for the previous year from October to September , rounded to the nearest hundredth of a percent. The index to be used shall be the series CUSR0000SEHG, Water and Sewer and Garbage Collection Services in U.S. city average, all urban consumers, seasonally adjusted. Should this index be eliminated or no longer available, the Parties shall mutually agree upon a new index.

Section 5. If any section, subsection, subdivision, sentence, clause, or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional or invalid, ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective.

Section 6. This Resolution shall supersede any and all provisions of any previous resolution and/or ordinance approved by the City Council that may conflict with, or be contrary to, this Resolution.

Section 7. The City Council finds that the subject activity outlined in this Resolution is not a Project withinthe meaning ofthe California Environmental Quality Act ("CEQA") Guidelines, Section 15378, and is therefore not subject to review under CEQA.

Section 8. The City Clerk shall certify the adoption of this Resolution, which shall become effective immediately upon adoption.

PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 3rd day of June 2024 by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

I hereby certify that the foregoing resolution was regularly introduced, passed, and adopted on the 3rd day of June 2025.
____________________________
Heather Bell
City Clerk

ATTACHMENT 1

RESIDENTIAL RATES

Collection
Charge
Post
Collection
Charge
Vehicle
Impact
Fee
City AB
939 Fee
Total
Monthly
Rate
20-gallon $ 25.08 $ 7.56 $ 5.40 $ 0.83 $ 38.87
35-gallon $ 26.08 $ 13.27 $ 7.75 $ 0.83 $ 47.93
35-gallon Sr. $ 24.08 $ 13.27 $ 7.75 $ 0.83 $ 45.93
65-gallon $ 50.98 $ 24.66 $ 14.10 $ 1.51 $ 91.25
95-gallon $ 72.79 $ 37.02 $ 20.85 $ 2.19 $ 132.85

COMMERCIAL
7/1/2025 COMMERCIAL COLLECTION RATES (COMBINED)
BIN Times per Week
SIZE 1 2 3 4 5
1 YARD $ 355.63 $ 620.87 $ 885.92 $ 1,151.19 $ 1,416.24 2 YARD $ 586.06 $ 1,067.83 $ 1,549.81 $ 2,031.48 $ 2,513.41 3 YARD $ 801.72 $ 1,486.68 $ 2,171.72 $ 2,856.69 $ 3,541.72 4 YARD $ 1,009.62 $ 1,891.26 $ 2,772.91 $ 3,654.72 $ 4,536.21 5 YARD $ 1,212.89 $ 2,288.47 $ 3,363.83 $ 4,439.52 $ 5,514.76 6 YARD $ 1,414.38 $ 2,682.42 $ 3,950.65 $ 5,219.26 $ 6,487.21 7 YARD $ 1,614.27 $ 3,075.18 $ 4,536.75 $ 5,997.55 $ 7,458.62

Additional
Pickup
Size RATE
1 yd $116.78
2 yd $183.98
3 yd $247.54
4 yd $309.15
5 yd $369.73
6 yd $429.77
7 yd $489.42
35 gal $14.31
65 gal $28.62
95 gal $42.94

SPECIAL

SERVICES/ANCILLARY

CHARGES
Service RATE
Return Trip $42.79
Carryout Fee $11.30
Additional Cart -
Recy/Organic $11.23
Cart Replacement $81.78
Contamination - Per Cart $37.09
Contamination - Per Yard $116.78
Overage Fee - Per Cart $14.31
Overage Fee - Per Yard $116.78
Box Wash $348.45
Bin Wash (1-7 yd) $128.49
Cart Wash $49.77
Lock Replacement $38.03
Dry Run (Industrial Box)
Same as pull
rate
Rate Per Haul
MSW, Miscellaneous Trash, C&D, Green Waste, Wood, Dirt, Concrete, Cardboard, Metal 2025 Rate Adj 2025
Box Size Current 16.21% Total Rate
10 Yard 530.00 85.91 615.91
14 Yard 588.00 95.31 683.31
20 Yard 624.00 101.15 725.15
30 Yard 675.00 109.42 784.42
40 Yard 746.00 120.93 866.93
7/1/2025 INDUSTRIAL ROLL-OFF SERVICE RATES
Plus disposal rate (per ton)

FINAL REPORT
City of Pinole
submitted electronically on April 7, 2025
Solid Waste
Franchise Fee Study

TABLE OF CONTENTS
City of Pinole | Solid Waste Franchise Fee Study – R3 Report toc - i

1. Executive Summary
page 1

2. Methodology & Calculations
page 3

3. Findings & Conclusions
page 20

4. Recommendations
page 21

1. EXECUTIVE SUMMARY
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 1 of 21 Background
The City of Pinole’s (City) Solid Waste Franchise Agreement (Agreement) dated May 15, 2001, with Richmond Sanitary Service, Inc. dba as Republic Services (Contractor) is for the collection of solid waste from Contractor’s solid waste service subscribers in the City. The Agreement provides the Contractor with the exclusive right to provide critical aspects of the City’s sanitation system, including solid waste collection and the other services and programs included in the Agreement. The Agreement specifies that the Contractor will charge solid waste service subscribers, with the Contractor billing and collecting revenues from subscribers and the City authorizing the maximum rates that the Contractor may charge pursuant to the rate adjustment methodology included in the Agreement.

Per the Agreement, the Contractor pays the City a Franchise Fee. This Study considers the Franchise Fee paying for the costs incurred by the City in managing, administering, enforcing, and supplementing the services provided in the Agreement, as well as the charge for the use of the public right-of-way for the special and lasting access to use it for set-out and collection of solid waste containers, along with the proportionate costs of the unique impacts to pavement caused by the Contractor’s solid waste collection vehicles during the course of providing sanitation service. The Contractor also pays the City a Rate Stabilization Fee and an AB 939 Fee. The City is also considering a Vehicle Impact Fee which would replace the Rate Stabilization Fee. For the purposes of this Study, the Rate Stabilization Fee is assumed to be eliminated at the end of Fiscal Year 2024-25.

Purpose
The purpose of this Study is to identify the amounts that may be considered for recovery through the Franchise Fee paid by the Contractor to the City and to develop the maximum amount that could be recovered via a new Vehicle Impact Fee (VIF). There are three components to this analysis. The first component includes the City’s proportionate costs (City’s Costs). The second component includes the proportionate charges for the Contractor’s use of the public right-of-way (Property Use Charges). The third is the City’s proportionate costs associated with pavement impacts (Pavement Impacts).

Methodology and Findings
To complete this Study, R3 reviewed and analyzed information provided by the City pertaining to the City’s Costs, Property Use Charges, and Pavement Impacts. Using that information, we then calculated the proportionate amounts necessary to cover the City’s costs, including staffing and other costs; use of government property in the public right-of-way; and pavement repair, maintenance, and rehabilitation costs caused by the Contractor’s solid waste collection vehicles during the course of providing sanitation service. All calculated amounts in this Study are in Fiscal Year (FY) 2023-24 dollars.

City’s Costs
The annual costs for management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system includes: staffing salary and benefits, contracted services, operations and maintenance, supplies, and overhead for distributed costs including but not limited to property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions.

Staffing costs are calculated based on estimated time allocations (based on assessment of current City employees) and other costs are calculated based on estimated share allocations associated with the sanitation system, with distributed overhead applied to both.

The calculation results are $461,784 in staffing costs and $112,745 in other costs, for annual proportionate City’s Costs totaling $574,529.

Additionally, there is $73,486 in Other Costs associated with AB 939 compliance.

Executive Summary
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 2 of 21 Property Use Charges
The annual charge to the Contractor for use of government property in the public right-of-way is calculated as a function of estimates for the number of solid waste accounts setting out solid waste collection containers in the right-of-way, the set-out area used, the amount of time it is used, and the market value for the per square foot use of the public right-of-way.

The calculation result for the use of the public right-of-way is a proportionate annual total Property Use Charge of $441,521.

Pavement Impacts
The annualized costs for pavement repair, maintenance, and rehabilitation are calculated based on the proportionate impact to pavement from solid waste collection vehicles compared to other sources of impacts. This calculation accounts for five-year projections for growth in deferred maintenance only for the purposes of this Study. The calculation also accounts for the high loading and slow speed impacts on pavement associated with solid waste collection vehicles.

The calculation results for the proportionate Pavement Impacts caused by Contractor’s solid waste collection vehicles during the course of providing sanitation service is an annualized cost of $1,703,440.

Conclusions
Franchise Fee
The FY 2022-23 Franchise Fee paid Contractor to the City was $407,921 and the actual for FY 2023-24 was $432,818. The sum of FY 2023-24 annual City’s Costs and Property Use Charges calculated in this Study is $1,016,050, which is $521,152 (51%) higher than the FY 2023-24 Franchise Fee payments. The Franchise Fee is, therefore, not more than the sum of the City’s Costs and Property Use Charges.

AB 939 Fee
The FY 2022-23 AB 939 Fee paid Contractor to the City was $61,948 and the actual for FY 2023-24 was $62,080. The FY 2023-24 annual AB 939/SB 1383 City’s Costs calculated in this Study are $73,486, which is $11,406 (16%) higher than the FY 2023-24 AB 939 Fee payments. The AB 939 Fee is, therefore, not more than the sum of the City’s Costs for contract and programs associated with AB 939 and SB 1383 compliance.

Vehicle Impact Fee
The Pavement Impacts associated with the vehicles used in the solid waste system collection (refuse, recyclables and organics) are calculated at an annual value of $1,703,440. Should the City wish to implement a Vehicle Impact Fee, the annual amount collected by the Contractor should not be greater than this amount. Because the legal landscape for such fees remains unsettled, if the City does implement a Vehicle Impact Fee, we recommend setting the fee at a conservatively lower amount.

Limitations
This Study relies on information provided by the City, which we have reviewed and analyzed for reasonableness and accuracy but did not independently audit or verify. It was necessary to estimate certain values for information that the City did not have, and for which reasonable ranges are known to exist. When it was necessary to establish estimates or assumptions for those values, R3 relied on decades of professional experience working with dozens of local government agencies in California on solid waste utility and other local government public administration matters. Because changes to estimates and other underlying assumptions could change calculations, R3’s approach to this Study was to establish reasonable estimates and assumptions such that changes to them would minimize the potential for different ultimate findings. We have reviewed estimates and assumptions with City staff and legal counsel and have mutual concurrence on applicability and reasonableness of estimated and assumed values in this Study.

2. METHODOLOGY & CALCULATIONS
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 3 of 21 City’s Costs
Methodology
R3 reviewed and analyzed information provided by the City pertaining to the General Fund costs incurred for management, administration, regulatory compliance and enforcement, solid waste collection and clean-up, and other obligations associated with the Contractor’s Agreement and the sanitation system.

These costs include and may not be limited to:
» Staffing costs, including salaries and benefits.
» Contracted services.
» Capital and equipment operations and maintenance.
» Supplies and materials.
» Overhead for distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions.

Using the total annual salary, benefit, and other cost information provided by the City, we estimated the proportion of costs associated with management and administration of the agreement and the sanitation system. We then calculated the proportionate totals and categorized them by the functions listed in the sections below.

Variables, Estimates and Assumptions
Staffing Costs
Variables associated with salaries and benefits include the allocation of time that positions are dedicated to management and administration of the Agreement and the sanitation system (including time supervising others with primary responsibility for these duties), the amount by which funding of salaries and benefits is paid by the General Fund, and the applicable amount of General Fund overhead.

The estimated time allocation by position category used in this Study (and based on historical experience) is shown in Table 1, on the following page, along with the explanation for the allocation values.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 4 of 21 Table 1: Allocations of Staffing Time by Position
Positions Time
Allocation Explanation
CITY MANAGEMENT - City Manager
(5%), Finance Director (5%), City Clerk
(3%), Public Works Director (10%) and
Capital Improvement Manager (5%)
3-10%
Estimated allocation representing proportion
of staff time spent on solid waste
Agreement and sanitation utility
management and administration. This
estimated allocation is informed by our prior
work experience in local governments as
well as our experience conducting similar
studies for local governments in California.

Public Works Maintenance Staff Varies
Estimated actual time spent by staff on
direct support of the sanitation system
associated with street sweeping, catch
basin cleaning, public solid waste
receptacle collection, illegal dumping cleanup, tree trimming for large vehicle access, pavement repair and city events clean-up.

R3 verified with City staff that the salaries and benefits included in this Study are paid by the General Fund – any non-General Fund portions of positions included in Table 1 have been excluded from the calculations. A General Fund overhead rate of 10% (for the distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions) is also applied to the total allocated costs. The 10% General Fund overhead rate used in this Study is an assumption informed by our prior work experience in local governments as well as our experience conducting similar studies for local governments in California. In our experience, when a City does calculate a General Fund overhead rate on its own, the result tends to be higher than the 10% used for the purposes of this Study (e.g., 25% or greater).

Other Costs
Variables associated with the City’s other (i.e., non-salary and benefit) costs include the proportionate allocation of those costs that are for management and administration of the Agreement and the sanitation system, the amount by which these costs are paid by the General Fund, and the applicable amount of General Fund overhead. The estimated time allocation by cost category used in this Study is shown in Table 2, on the next page, along with the explanation for the allocation values.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 5 of 21 Table 2: Allocations of Other Costs by Category
Cost Category Cost
Allocation Explanation
Consulting and legal costs for direct
and indirect management and
administration of Agreement and
sanitation system.
100%
All these costs are directly associated with
management and administration of the
Agreement and the sanitation system.

Catch Basin Waste Removal, Street
Sweeping, Illegal Dumping, and Tree
Trimming
80%
Estimated allocation based on proportion of such
activities that are associated with sanitation
services in the City (i.e., the proportion of waste
that is generated by Contractor’s solid waste
customers in the City compared to overall waste
generation in the City).

CalRecycle & SB 1383 Compliance,
Implementation and Enforcement
Costs and Public Solid Waste
Receptable Collection Costs
100%
All these costs are directly associated with
sanitation services in the City (i.e., the proportion
of waste that is generated by Contractor’s solid
waste customers in the City compared to overall
waste generation in the City).

R3 verified with City staff that the other costs included in this Study are paid by the General Fund – any non-General Fund portions of these costs as included in Table 2 have been excluded from the calculations. A General Fund overhead rate of 10% (for the for distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions) is also applied to the total allocated costs.

Analysis
Direct Management and Administration
This category includes City staffing and consulting costs for direct management and administration of the Agreement and the sanitation system, for a calculated $187,680 in annual staffing costs. Other costs include solid waste consulting services provided by R3 and other consultants, for $55,000 in annualized consulting costs for the cost of performing this Study as well as other activities necessary to support the management and oversight of the solid waste system utilizing consultants and temporary employees. The total calculated cost for this category is $242,680.

Indirect Management and Administration
This category includes City staffing costs for indirect management and administration, including supervision of those responsible for direct management and administration of the Agreement and the sanitation system and associated responsibilities. Allocated annual costs for staffing in this category are $64,285. There are no “Other costs” associated with this category.

CalRecycle and SB 1383 Compliance
This category includes City staff costs and other costs for various activities associated with the City’s need to implement Senate Bill 1383 (Short-Lived Climate Pollutants Act) as well as annual reporting to the State agency CalRecycle. There are $73,486 in “Other costs” included in this category.

Code Enforcement
This category would include City staffing costs for enforcing the solid waste provisions of the City’s Municipal Code, which includes illegal solid waste accumulations, illegal dumping, littering, improper

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 6 of 21 waste collection setouts, nuisances, and the associated investigations, warnings, notices of violation, and administration of penalties. No costs associated with this category were identified by the City during completion of this Study. Though no such costs were identified, that does not mean that these costs do not exist. Future updates to this Study could result in identification of such costs.

Street Sweeping
This category includes $45,976 in City staffing costs and equipment, and operations and maintenance costs of $19,572 for the City’s street sweeping operations. Therefore, total costs associated with this category are $65,548.

Catch Basin Waste Removal
Solid waste that is not properly managed by waste generators or the Contractor, and not otherwise captured by street sweeping operations, accumulates in catch basins and other trash capture devices in the City’s storm drain system.

For the purposes of this Study, we do not assume that all mismanaged solid waste that ends up on the City’s catch basin system is generated by properties receiving solid waste services. Rather, because there is the possibility that some solid waste collected by catch basin waste removal operations was originally generated by other sources, this Study estimates that only 80% of the solid waste collected by catch basins was generated by properties receiving solid waste services. This assumption is consistent with other studies conducted by R3 (e.g., for the cities of Garden Grove and San Bruno) wherein street sweeping activities were allocated between 77.4% and 90% to the sanitation system.

This category includes City staffing, capital equipment, and operations and maintenance costs for the City’s catch basin waste removal operations. Allocated staffing costs for the Public Works maintenance crews are calculated to be $26,024 annually. The allocated and annualized costs for equipment are calculated to be $4,185 annually, for a calculated total in this category of $30,209.

Illegal Dumping Clean-up
The City’s Public Works maintenance crews also clean up solid waste materials that are illegally dumped throughout the City. As with catch basin waste removal, an 80% waste generation allocation is applied.

This category includes $13,663 in personnel costs and $1,588 in equipment to remove illegal dumping from rights-of-way and is calculated to be an annual cost of $15,250.

Public Waste Containers
This category includes City staff costs and other costs for collection of waste deposited in public waste containers in public rights-of-way and other public locations in the City, for a calculated annual cost of $75,395.

Waste Collection at City Events
This category includes City staff costs of $5,964 for collection of waste generated and disposed of at City public events.

Tree Trimming for Vehicle Access to Public Right-of-Way This category includes City staff costs of $47,711 and other costs of $27,488 for a total of $75,198 for trimming of the City’s street trees to provide safe clearance for collection vehicles to collect solid waste from the public right-of-way.

Annual Total of City’s Costs
Table 3, on the next page, shows the total of the City’s Costs for management and administration of the Agreement and the sanitation system as calculated in this Study, by category.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 7 of 21 Table 3: City’s Annual Costs by Category and in Total
Category Staffing Costs Other Costs Total
Direct Management &
Administration $187,680 $55,000 $242,680
Indirect Management &
Administration $64,285 $- $64,285
CalRecycle & SB 1383 Compliance,
Implementation & Enforcement $- $73,486 $73,486
Street Sweeping $45,976 $19,572 $65,548
Catch Basin Waste Removal $26,024 $4,185 $30,209
Illegal Dumping Response, Cleanup, Mitigation, & Prevention $13,663 $1,588 $15,250 Public Solid Waste Receptable
Collection $70,482 $4,913 $75,395
City Events Solid Waste Collection $5,964 $- $5,964
Tree Trimming for Large Vehicle
Curbside Access $47,711 $27,488 $75,198
Total Annual City’s Costs $461,784 $112,745 $574,529
Property Use Charges
Methodology
R3 reviewed and analyzed information provided by the City and the Contractor pertaining to Property Use Charges for Contractor’s use of the public right-of-way for collection of solid waste collection containers.

They then calculated the annual Property Use Charges based on:
» The setout area used for collection of solid waste containers (in square feet). » The amount of time that the area is used.
» The market value for use of the public right-of-way (in dollars per square foot). » The number of solid waste subscribers setting out collection containers in the public rightof-way.

Using these values, we calculated the market value for the Contractor’s use of government property in the City.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 8 of 21 Variables, Estimates, and Assumptions
Setout Area
Standard residential solid waste collection setouts include three solid waste collection containers, usually carts with wheels and lids, with one each for garbage, recycling, and organics waste streams. The setout area needed for placement of these containers is inclusive of the width of each container (typically two feet) as well as minimum required space between the containers and other objects such as cars (minimum of one feet). The set-out area also takes up available parking space and is, thus, assumed to extend six feet out from the curb. Taken altogether, the area for residential setouts is calculated as three containers that are each two feet wide, plus one foot between each container and other objects, for a total area ten feet wide times six feet in depth. The result is 60 square feet of setout area per serviced singlefamily residential property.

The amount of area used for commercial setouts (in this Study, use of the term commercial also always includes multi-family) can vary widely, as there is no standard commercial subscription size profile – each commercial solid waste subscriber can select from a range of container sizes, with most of them being larger than the containers used in residential areas. Given this complexity, this Study assumes that the average commercial setout area is twice that of the residential setout area, for 120 square feet. This estimate is likely lower than the average setout area needed in commercial areas and is, therefore, conservative.

Setout Time Usage
Standard residential solid waste collection is performed once weekly. Most residential containers are set out the evening prior to collection and are removed from the public right-of-way the following afternoon.

Thus, for the purposes of this Study, we assume that collection containers are in the public right-of-way for an average of 18 hours per day, one day per week, which amounts to approximately 10.71% of the time (18 hours divided by 24 per day divided by 7 days per week).

Commercial solid waste subscription setout times can vary widely – just as there is no standard commercial subscription size profile, likewise there is no standard collection frequency. Commercial solid waste subscribers can select collection frequency between once and six times per week, and with different frequencies for different waste streams. Given this complexity, this Study assumes that the average commercial collection frequently is twice weekly, 21.43% of the time. As with the setout area, this estimate is likely lower than the average commercial collection frequency and is, therefore, conservative.

Market Value for Use of Public Right-of-Way
To establish the market value for use of the public right-of-way, R3 conducted an online survey of recent purchases of bare land in the City and locally along the I-80 corridor between Hercules and Berkeley. R3 sampled twenty recent sales of bare land in the City, El Sobrante and Rodeo, which were sold for a median of $10.66 per square foot. To that value, R3 added the per square foot value of the City’s street pavement, which is calculated as a function of the total replacement value of the City’s streets ($140,414,777) divided by the area of the streets in square feet (10,290,677) both of which are contained in the City’s 2023-24 Pavement Management Program (PMP) Update (see next section).

The resultant value of the street improvements is $13.64 per square foot, which, when added to the $10.66 market value of bare land, yields $24.31 per square foot. This value is then divided by a rental realization rate of 1.89 (which is based on the estimated ratio of what it costs to purchase a property versus rent it) for a total annual per square foot use charge for the public right-of-way of $12.84. R3 believes this value to be conservative – other methodologies that could have been applied would have resulted in a higher estimated market value for the use of the public right-of-way. For example, had this Study used “parklet rental fee” charges (e.g., use of the public right-of-way for commercial activities like restaurant seating) established in other California communities, with an approximate average annual per

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 9 of 21 square foot value of $15.00 per square foot, the results from this Study would be higher than estimated herein.1
Number of Subscriptions Setting Out Containers
The Contractor reports that there are 5,859 residential and 382 commercial solid waste service subscribers in the City. However, not all subscribers set out their containers in the public right-of-way for collection all the time. To account for non-setouts (either because subscribers don’t have waste materials to set out or because they receive on-premises service) we conservatively assume that only 90% of residential solid waste subscribers set out containers on a regular basis, for a resulting total of 5,273 average residential setouts. This 90% assumption is informed by our work overseeing solid waste collection operations for local governments throughout California; from that experience, we know that almost all residential solid waste customers set out their solid waste containers for collection each week (with the exceptions being when residents are on vacation or generate exceptionally low amounts of waste). The City’s Contractor provides weekly collection of solid waste containers to all residents.

It is also understood that most commercial subscribers do not set out containers in the public right-of-way, and therefore we conservatively assume that only 5% of commercial subscribers set out containers on a regular basis, for a resulting total of 19 average commercial setouts. The assumed 5% set-out rate for commercial customers is almost certainly low – were one to take field observations for these values, we believe that the actual rates of set-out would be higher than used for the purposes of this Study. However, we use the 5% set-out assumption for commercial subscribers in this Study as data regarding use of the public right-of-way by commercial subscribers in the City is not available.

Analysis and Total Annual Property Use Charges
Calculating the total annual Property Use Charges using the variables, estimates, and assumptions from the prior section is a function of multiplication, as shown in Table 4, below.

Table 4: Calculation of Total Annual Property Use Charges Variable Category Residential Commercial
Grand Total Annual
Property Use Charge
Setout Area 60 SF 120 SF
Setout Time Usage 10.71% 21.43%
Annual Use Charge $12.84 per SF $12.84 per SF
Number of Setouts 5,273 19
Total Annual Property
Use Charges $435,248 $6,273 $441,521
1 Had this Study used a $15 per square foot market value for the use of the public right-of-way, the resulting total annual property use charge would have been $515,797 – more than 17 percent higher than the amount used in this Study and shown in Table 4.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 10 of 21 Pavement Impacts
Methodology
R3 reviewed and analyzed information provided by the City pertaining to Pavement Impacts from the Contractor’s solid waste collection vehicles. We then calculated estimates of the proportionate share of the average annual pavement repair, maintenance, and rehabilitation costs associated with solid waste collection vehicles based on the proportionate impact to pavement from solid waste collection vehicle compared to other sources of impacts. Note that this analysis does not include Contractor’s street sweeping vehicles – if those vehicles were included in this analysis, the calculated Pavement Impacts would be slightly higher than shown in this Study.

The calculation accounts for the City’s annual repair costs, five-year projections for capital improvement costs, and five-year projections for annualized growth in deferred maintenance. The calculation also accounts for the high loading and slow speed impacts on pavement associated with solid waste collection vehicles.

The calculation proportionately allocates the average annual pavement management costs to solid waste vehicles based on:
» The equivalent single-axle load and proportionate impacts from speed for those vehicles compared to other vehicles.
» The number of vehicle trips on City streets.
» The proportion of vehicle trips that are made by trucks versus automobiles.2 Variables, Estimates, and Assumptions
The weight, loading, slow speed, and frequent stops that characterize solid waste collection vehicle operations impose unique and quantifiable impacts on the City’s street pavement. It is important to understand that, while calculation of vehicle impacts to pavement can be precise for individual vehicles, out of necessity we made certain assumptions about overall blended pavement impacts associated with several categories of vehicle types for the purposes of this Study. This is because we sought to calculate estimated impacts to all street pavement in the City, covering all vehicle uses, and precise traffic information at that scale is not currently available. Thus, we make informed assumptions regarding several variables necessary for this Study.

For each of these variables, there is a range of potentially reasonable values that may be used. We have selected values at the low end of the range to present findings that conservatively calculate estimated values of the pavement impacts associated with the Contractor’s solid waste collection vehicles during the course of providing sanitation service. Assumptions used are described in the following subsections, which reference sources supporting the summary provided here. We must note that changes in assumptions may result in material changes in calculation results and findings.

Factors Impacting Pavement Conditions
Street pavement repair, maintenance, and rehabilitation needs and their resulting costs are affected by several factors, including vehicle usage and utility cuts (for maintenance and repairs to underground utilities). Environmental conditions such as light and water also contribute to pavement repair, 2 Our analysis accounts for the distribution of vehicles among the 13 Federal Highway Administration vehicle classifications, which include passenger cars, SUVs/pick-ups, buses, and multiple truck and truck/trailer axle combinations.

Methodology & Calculations
City of Pinole | Solid Waste Franchise Fee Study – R3 Report 11 of 21 maintenance, and rehabilitation needs in combination with the primary impacts from vehicles and trench cuts, and thus not separately accounted for. This Study only focuses on the impacts to street pavement from vehicles, and the proportion of those impacts that are attributable to the Contractor’s solid waste collection vehicles as they perform sanitation service.

City’s Costs for Pavement Repair, Maintenance and Rehabilitation This Study accounts for the City’s annual “light maintenance” costs of pavement repairs for FY 2023-24 in which the City spent approximately $61,589 from the General Fund for street maintenance” activities performed by its Public Works Department. Additionally, the General Fund overhead rate of 10% (for the distributed costs such as property, utilities, insurance, human resources, payroll administration, accounts payable and receivable, and other finance functions) is also applied to the total allocated costs for “light maintenance” similarly to other City costs.

The City regularly projects its costs for “heavy maintenance” and rehabilitation of pavement resulting from degradation due to use. These projections, and the basis for them, are documented in the Pavement Management Program Update (PMP) reports which the City commissions with engineering consultants.

Per the City’s March 2024 PMP Update report (scenario 2), the City’s projected average annual pavement “heavy maintenance” and rehabilitation costs from 2024 through 2028 for its entire street network, are approximately $800,000.

City’s Costs Deferred Maintenance
The City regularly projects its costs for repair, maintenance, and rehabilitation of pavement resulting from degradation due to use. These projections, and the basis for them, are documented in the City’s 2024 PMP Update. Per the PMP, deferred pavement maintenance on the City’s streets3 (which is the result of degrading pavement conditions associated with the impacts of vehicles and that is not funded for repair during the planning term) is projected to increase by $18,361,430 between FY 2023-24 and FY 2027-28, which is $3,672,286 per year.4 Deferred maintenance is the result of impacts to pavement that should be subject to repair or rehabilitation, but for which such repair or rehabilitation is not planned due to funding constraints. Though repair or rehabilitation of the deferred maintenance impact is not planned, the pavement condition is impacted, in part due to solid waste collection vehicles and the City must address the deferred maintenance eventually. If deferred maintenance were never to be funded and addressed via repair and rehabilitation, pavement conditions would degrade to the point of being unnavigable by vehicles.

Axle Loading
Our methodology for calculating the proportionate amount of pavement maintenance, and rehabilitation impacts for the Contractor’s vehicles is grounded in the fact that all vehicles, including solid waste collection vehicles, degrade pavement during use. Measurement of that impact – also known as “vehicle loading” – can be estimated, quantified, and expressed as an Equivalent Single Axle Load (ESAL), which is a function of the vehicle’s weight and the distribution of that weight over the vehicle’s axles.

It is important to note that heavier vehicles (including solid waste vehicles) have more impacts on pavement and have a higher vehicle loading ESAL value. It is also important to note that ESAL values are associated 3 Deferred maintenance is planned maintenance that gets delayed and backlogged because of a lack of funding.

Deferred maintenance costs remain on the books until they are funded and the work is completed and recategorized in the City’s PMP.
4 Our analysis assumes funding based on the City’s budgeted pavement maintenance costs as presented in the PMP under Scenario 2 “Expected Annual Budget ($800 thousand)”.