Pinole City Council
March 3, 2026

Pinole Housing Successor Annual Report 2024-25 2

1. Real properties;

2. Personal property;

3. Low and Moderate Income Housing Fund encumbrances;

4. Loans/Grants Receivable;

5. Rents/Operations; and

6. Deferrals.

All items on the HAT were reviewed and approved by DOF on February 15, 2013. A copy of the HAT is provided as Appendix 1 in Attachment 2. The City, acting as Housing Successor, transferred these assets to the Low and Moderate Income Housing Asset Fund (“Housing Asset Fund”, Fund 285). Approval of the HAT set in motion a series of obligations by the City as a housing successor, as described in the following section.

BACKGROUND
This Section summarizes legal requirements for use of housing successor assets that are addressed in this Annual Report.

LEGAL REQUIREMENTS PERTAINING TO HOUSING SUCCESSORS
A year after the dissolution of redevelopment began, the California State Legislature recognized the need to regulate and provide transparency on the use of the housing activities transferred from a former redevelopment agency. Senate Bill 341 (DeSaulnier, 2013) and subsequent legislation enacted several requirements for housing successor agencies contained in HSC Sections 34176-34176.1.

In general, housing successors must comply with three major requirements pursuant to HSC Section 34176.1:

1. Housing Successor expenditures and housing production are subject to income and age targets.

2. Housing successors may not accumulate an “excess surplus,” or a high balance based on certain thresholds.

3. Properties must be developed with affordable housing or sold within five to ten years of being approved for transfer from the former redevelopment agency to the housing successor.

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Appendix 2 in Attachment 2 provides a detailed summary of the reporting requirements that are addressed in this Annual Report.

PERMITTED USES OF HOUSING ASSET FUNDS
Pursuant to HSC Section 34176.1, Housing Asset Funds may be spent on:
• Administrative costs for operation of the housing successor agency. The law allows a housing successor to spend the greater of:
o $200,000 per year adjusted for inflation, or
o 5% of the statutory value of real property owned by that housing successor and the value of loans and grants receivable from the HAT (“Portfolio”).

HCD has annually published an adjusted limit amount for administrative costs, reflecting the change in the Consumer Price Index from the prior year. Although HCD has not yet published the update for FY 2024-25, applying the same methodology and index HCD has previously used would yield a limit adjusted for inflation for FY 2024-25 of $270,700. This is greater than the 5% portfolio value limit of $236,753, therefore this Annual Report applies the FY 2024-25 HCD limit. • Homeless prevention and rapid rehousing services up to $500,0001 per year if the former redevelopment agency did not have any outstanding inclusionary housing or replacement housing production requirements as of 2012. Pinole is eligible for this expense because the former Agency did not have any outstanding inclusionary or replacement housing requirements upon dissolution. • Affordable housing development assisting households earning up to 80 percent of the Area Median Income (“AMI”), subject to specific income and age targets over a five-year period.

Five-Year Income Proportionality on Development Expenditures: Housing Asset Funds may be spent on development of housing projects affordable to low, very low, and extremely low income households. “Development” is defined as “new construction, acquisition and rehabilitation, substantial rehabilitation as defined in HSC Section 33413, the acquisition of long-term affordability covenants on multifamily units as described in HSC Section 33413, or the preservation of an assisted housing development that is 1 AB 1782 amended the limit from $250,000 to $500,000 effective January 1, 2025.

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eligible for prepayment or termination or for which within the expiration of rental restrictions is scheduled to occur within five years.”
Over each five-year compliance period, at least 30 percent of such development expenditures must assist extremely low income households (30% AMI), while no more than 20 percent may assist low income households (between 60-80%). The balance of the funds may be used on households earning between 30% and 60% of AMI.

The first five-year compliance period was January 1, 2014 through June 30, 2019. The second five-year compliance period was July 1, 2019 to June 30, 2024. The third five-year compliance period is July 1, 2024 to June 30, 2029. The Housing Successor was compliant with Housing Asset Fund income proportionality expenditure requirements during the first and second five-year compliance periods.

Note that housing successors must report expenditures by category each year, but compliance with income proportionality limits is measured every five years. For example, a housing successor could spend all its funds in a single year on households earning between 60-80% AMI, as long as it was 20 percent or less of the total expenditures during the five-year compliance period.

Should a housing successor not spend at least 30% of its development expenditures assisting extremely low income households, or exceed the amount spent on low income households, future expenditures are subject to greater restriction until these proportionality targets are met. Specifically, if a housing successor is unable to spend at least 30% of its development expenditures on extremely low units, it is required to increase this spending to 50% until compliant with the 30% threshold; a housing successor that spends more than 20% of its development expenditures on low income units cannot spend any further funds on low income developments until it is at or below the 20% threshold.

As such, tracking these expenditures and their progress over the corresponding five-year period is an important function of this Annual Report.

Ten-Year Age Proportionality on Units Assisted: If more than 50% of the total aggregate number of rental units produced by the city, housing successor, or former redevelopment agency during the past 10 years are restricted to seniors, the housing successor may not spend more Housing Asset Funds on senior rental housing.

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Appendix 3 in Attachment 2 describes Housing Asset Fund Expenditure requirements in more detail including the types of costs eligible in each category.

LIMITS ON THE ACCUMULATION OF HOUSING FUNDS (EXCESS

SURPLUS)
State law limits how much cash a housing successor may retain and, if it fails to commit and spend these dollars in a reasonable timeframe, ultimately penalizes the housing successor by requiring unspent funds be transferred to HCD for use on State housing programs.

HSC Section 34176.1(d) establishes a limit, known as an “excess surplus” on the amount of unencumbered Housing Asset Funds based on the greater of the following:
• $1,000,000, or
• The total amount of deposits made into the Housing Asset Fund over the preceding four years.

Only amounts in excess of this threshold are considered an excess surplus. Once an excess surplus is determined, a housing successor must account for these funds separately and encumber said monies within three years. If after the third year the excess surplus has not been fully encumbered, the remaining balance of the excess surplus is to be transferred to HCD within 90 days. HCD is permitted to use these transferred excess surplus funds anywhere in the State under its Multifamily Housing Program or the Joe Serna, Jr. Farmworker Housing Grant Program.

The concept of excess surpluses carries over from the era prior to dissolution of redevelopment, when redevelopment agencies were often receiving substantial amounts of deposits from the mandatory housing set-aside of 20% of tax increment revenues.

As part of the Annual Report, a housing successor must disclose any excess surplus and describe the housing successor’s plan for eliminating this excess surplus.

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HOUSING ASSET FUND ACTIVITY
The following section describes the Housing Asset Fund activities in FY 2024-25.

DEPOSITS AND FUND BALANCE
The Housing Successor deposited $180,489 into the Housing Asset Fund in FY 2024-25, as shown in Table 1. Revenue sources consist of investment earnings and homeowner loan repayments.

EXPENDITURES
The Housing Successor expended a total of $197,188 during FY 2024-25. All expenditures were administrative such as staff labor allocations for administering housing successor programs, professional services, and utilities. The total administrative costs are within the HCD limit for FY 2024-25. The Successor Agency will continue to keep its administrative costs within the limit pursuant to HSC Section 34176.1.

ENDING CASH AND FUND BALANCE
The Housing Asset Fund balance as of June 30, 2025 was $8,261,363, as summarized in Table 2. Of this amount, $3,501,281 was cash.

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HOUSING SUCCESSOR PORTFOLIO
The Housing Successor Portfolio includes real properties and notes and loans receivable transferred from the former Agency. The Portfolio had a value of $4,735,062 as of FY 2024-25, as detailed in Table

3.

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REAL PROPERTIES AND DISPOSITION STATUS
The former Agency transferred the following properties to the Housing Successor as approved on the HAT:
• Pinole Grove Senior Housing Vacant Land (Samuel Street) – Pursuant to a Development and Disposition Agreement (“DDA”), this property is required to remain vacant as open space for the adjacent Pinole Grove Senior Housing development. The property has a steep slope and cannot be developed, therefore there are no plans for its disposition. • Faria House Vacant Land (2100 San Pablo Avenue) – This 2.3-acre parcel is park land in which the Faria House resides. The Faria House is currently listed for sale. Any sales proceeds related to the value of the land must be deposited into the Housing Asset Fund if the site is not developed with affordable housing.

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• Collins House (612 Tennent Avenue) – The Housing Successor sold this property in May 2023 and all sale proceeds were deposited into the Housing Asset Fund as required by law. The property was rehabilitated into a fourplex and includes one affordable unit to meet the City’s inclusionary housing requirements.
• Vacant Land (811 San Pablo Avenue) – The Housing Successor entered into a DDA with SAHA dated July 6, 2021, subsequently amended on February 21, 2023, to develop this property with 33 units of housing affordable to extremely low income to low income households. The majority of units are restricted for veterans by State and Federal funding sources that financed the project.

SAHA completed construction in September 2024.

HSC Section 34176.1(e) requires all real properties acquired by a redevelopment agency prior to February 1, 2012 and transferred to the housing successor be development as affordable housing or sold within five to ten years of DOF’s approval of the HAT. The City extended the deadline from February 15, 2018 to February 15, 2023, by action of the City Council on November 21, 2017 as permitted by law. The City has complied with this timeline for 612 Tennent Avenue and 811 San Pablo Avenue as both properties have been sold or are to be developed as affordable housing. The Grove Vacant Land and Faria House vacant land are exempt from this deadline due to their contractual land use restrictions. The Housing Successor will ensure that sales proceeds from the Faria House land value are deposited into the Housing Asset Fund if the site is not developed with affordable housing.

LOANS RECEIVABLE
The Housing Asset Fund has $4,380,000 in collectable notes and loans receivable as described below:
• Outstanding Developer Notes in the amount of $4,380,000: The Housing Successor administers four loans made to affordable housing developers by the former Agency or Housing Successor.

Table 3 reflects an allowance for uncollectable notes, which equals the amount of three of the four loans, to write off the value of these loans in case they are not repaid. The loans are repaid from residual receipts if the properties have sufficient cash remaining at the end of each operating year. The fourth loan, for 811 San Pablo Avenue, is also payable from residual receipts. • Outstanding First-Time Homebuyer Loans and Housing Rehabilitation Loans in the amount of $259,552: These loans have different maturity dates ranging from 2022 through 2099. Appendix 4 in Attachment 2 provides an inventory of outstanding loans. Table 3 reflects an allowance for uncollectable loans to write off the value of these loans in case they are not repaid.

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COMPLIANCE WITH EXPENDITURE & PRODUCTION LIMITS
During FY 2024-25, the City was in compliance with the annual, five-year, and ten-year planning period requirements.

PROPORTIONALITY REQUIREMENTS
As summarized in Figure 1, the Housing Successor complied with all Housing Asset Fund spending restrictions as of FY 2024-25:
• The Housing Successor spent $197,188 on administrative expenses which is under the maximum annual limit for FY 2024-25 of $270,700.
• The Housing Successor did not use any Housing Asset Funds for homeless prevention or rapid rehousing expenses and was therefore in compliance with the $500,000 spending limit. • The Housing Successor has not spent any Housing Asset Funds assisting affordable housing development in the current five-year period. The Housing Successor will comply with the requirement to spend at least 30% of housing development expenditures on extremely low income households (30% AMI) and no more than 20% on low-income households (80% AMI) between July 1, 2024 and June 30, 2029.

The Housing Successor will ensure that future development-related expenditures comply with spending and income proportionality requirements. The City made a commitment through its Housing Element (Program 7) to develop a policy to provide guidance on the future use of Housing Asset Funds in order to meet affordable housing goals as well as legal requirements.

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SENIOR RENTAL HOUSING LIMIT COMPLIANCE
Pursuant to HSC Section 34176 (b), Housing Asset Funds may not assist senior rental housing if more than 50% of deed-restricted rental housing units assisted by the former Agency, Housing Successor, or City in the previous ten years are restricted to seniors. Between FYs 2015-16 through 2024-25, the Housing Successor, former Agency, and City assisted a total of 37 deed-restricted rental units, none of which are restricted to seniors, as shown in Table 4. The Housing Successor may assist up to 37 senior units to remain in compliance. The Housing Successor will ensure that it complies with this requirement moving forward.

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Appendix 5 in Attachment 2 presents a complete inventory of affordable housing in Pinole that is monitored by the City. Most of the projects were funded by the former Agency over ten years ago or developed to comply with the City’s inclusionary housing requirements.

EXCESS SURPLUS
The Housing Asset Fund may not accumulate an “excess surplus,” or an unencumbered amount that exceeds the greater of $1 million or the sum of deposits in the prior four fiscal years. This requirement ensures that housing successors are actively spending available Housing Asset Funds on affordable housing. Excess surplus must be expended or encumbered within three fiscal years of each year that excess surplus was accrued. If a housing successor fails to comply, it must transfer any excess surplus to HCD within 90 days of the end of the third fiscal year.

As shown in Table 5, the Housing Successor did not have an excess surplus in FY 2024-25. The unencumbered beginning cash balance ($3,506,880) was less than the total deposits made in the prior four fiscal years ($4,973,547).

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OTHER INFORMATION

HOMEOWNERSHIP UNIT INVENTORY
Table 6 presents an inventory of homeownership units assisted by the Housing Successor that require restrictions, covenants, or an adopted program that protects Housing Asset Fund monies.

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TRANSFERS TO OTHER HOUSING SUCCESSORS
There were no transfers to another housing successor entity for a joint project pursuant to HSC 34176.1(c)(2).

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APPENDIX 1 – HOUSING ASSET TRANSFER FORM

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APPENDIX 2 - HOUSING SUCCESSOR ANNUAL REPORT

REQUIREMENTS
Housing Successor Reporting Requirements
Health and Safety Code Section 34176.1(f)
Housing Asset Fund
Revenues & Expenditures
Other Assets and Active
Projects Obligations & Proportionality
Total amount deposited in the
Housing Asset Fund for the fiscal
year
Amount of deposits funded by a
Recognized Obligation Payment
Schedule (“ROPS”)
Description of any project(s)
funded through the ROPS
Description of any outstanding
production obligations of the
former Agency that were
inherited by the Housing
Successor
Statement of balance at the close
of the fiscal year
Update on property disposition
efforts (note that housing
successors may only hold
property for up to five years,
unless it is already developed
with affordable housing)
Compliance with proportionality
requirements (income group
targets), which must be upheld
on a five-year cycle
Description of Expenditures for
the fiscal year, broken out as
follows:
• Homeless prevention and
rapid rehousing
• Administrative and
monitoring
• Housing development
expenses by income level
assisted
Other “portfolio” balances,
including:
• Statutory value of any
real property either
transferred from the
former Agency or
purchased by the
Housing Asset Fund
• Value of loans and
grants receivable
Percentage of deed-restricted
rental housing restricted to
seniors and assisted by the
former Agency, the Housing
Successor, or the City within the
past ten years compared to the
total number of units assisted by
any of those three agencies
Description of any transfers to
another housing successor for a
joint project
Inventory of homeownership
units assisted by the former
Agency or the housing
successor that are subject to
covenants or restrictions or to
an adopted program that
protects the former Agency’s
investment of monies from the
Low and Moderate Income
Housing Fund
Amount of any excess surplus,
and, if any, the plan for
eliminating it

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APPENDIX 3 – HOUSING ASSET FUND EXPENDITURE

REQUIREMENTS
Housing Asset Fund Expenditure Requirements
Health and Safety Code Section 34176.1
Expense
Category Limits Allowable Uses
Administration
and
Compliance
Monitoring
$270,700
maximum for
FY 2024-25
(limit
increases
each year)
Administrative activities such as:
• Professional services (consultant fees, auditor fees, etc.) • Staff salaries, benefits, and overhead for time spent on Housing Successor administration
• Compliance monitoring to ensure compliance with affordable housing and loan agreements
• Property maintenance at Housing Successor-owned
properties
Capped at $200,000 adjusted annually for inflation or 5% of the statutory value of real property owned by the housing successor and the value of loans and grants receivable from the HAT (“Portfolio”), whichever is greater.

Homeless
Prevention
and
Rapid
Rehousing
Solutions
$500,000
maximum per
fiscal year
Services for individuals and families who are homeless or would be homeless but for this assistance, including:
• Contributions toward the construction of local or regional homeless shelters
• Housing relocation and stabilization services including housing search, mediation, or outreach to property owners • Short-term or medium-term rental assistance
• Security or utility deposits
• Utility payments
• Moving cost assistance
• Credit repair
• Case management
• Other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless.

Affordable
Housing
Development
No spending
limit, but must
comply with
income and
age targets
“Development” includes:
• New construction
• Acquisition and rehabilitation
• Substantial rehabilitation
• Acquisition of long-term affordability covenants on multifamily units
• Preservation of at-risk units whose affordable rent restrictions would otherwise expire over the next five years

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Housing Asset Fund Expenditure Requirements
Health and Safety Code Section 34176.1
Expense
Category Limits Allowable Uses
Income
Targets
Every five years (currently FYE 2020-2024), Housing Asset Funds must meet income targets:
• At least 30% on extremely low income rental households (up to 30% AMI or “Area Median Income”)
• No more than 20% on low income households (60-80% AMI) Moderate and above moderate income households may not be assisted (above 80% AMI).

Failure to comply with the extremely low income requirement in any five-year compliance period will result in having to ensure that 50 percent of remaining funds be spent on extremely low income rental units until in compliance.

Exceeding the expenditure limit for low households earning between 60-80% AMI in any five-year reporting period will result in not being able to expend any funds on these income categories until in compliance.

Age Targets For the prior ten years (resets every year), a maximum of 50% of deed-restricted rental housing units assisted by the Housing Successor or its host jurisdiction may be restricted to seniors.

If a housing successor fails to comply, Housing Asset Funds may not be spent on deed-restricted rental housing restricted to seniors until in compliance.

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APPENDIX 4 – FIRST-TIME HOMEBUYER AND RESIDENTIAL REHABILITATION

LOAN INVENTORY

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APPENDIX 5 – PINOLE AFFORDABLE HOUSING INVENTORY

State of California

HEALTH AND SAFETY CODE
Section 34176.1
34176.1. Funds in the Low and Moderate Income Housing Asset Fund described in subdivision (d) of Section 34176 shall be subject to the provisions of the Community Redevelopment Law (Part 1 (commencing with Section 33000)) relating to the Low and Moderate Income Housing Fund, except as follows:
(a)  Subdivision (d) of Section 33334.3 and subdivision (a) of Section 33334.4 shall not apply. Instead, funds received from the successor agency for items listed on the Recognized Obligation Payment Schedule shall be expended to meet the enforceable obligations, and the housing successor shall expend all other funds in the Low and Moderate Income Housing Asset Fund as follows:
(1)  For the purpose of monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and for the purpose of administering the activities described in paragraphs (2) and (3), a housing successor may expend per fiscal year up to an amount equal to 5 percent of the statutory value of real property owned by the housing successor and of loans and grants receivable, including real property and loans and grants transferred to the housing successor pursuant to Section 34176 and real property purchased and loans and grants made by the housing successor. If this amount is less than two hundred thousand dollars ($200,000) for any given fiscal year, the housing successor may expend up to two hundred thousand dollars ($200,000) in that fiscal year for these purposes. The Department of Housing and Community Development shall annually publish on its Internet Web site an adjustment to this amount to reflect any change in the Consumer Price Index for All Urban Consumers published by the United States Department of Labor for the preceding calendar year.

For purposes of this paragraph, “statutory value of real property” means the value of properties formerly held by the former redevelopment agency as listed on the housing asset transfer form approved by the department pursuant to paragraph (2) of subdivision (a) of Section 34176, the value of the properties transferred to the housing successor pursuant to subdivision (f) of Section 34181, and the purchase price of properties purchased by the housing successor.
(2)  Notwithstanding Section 33334.2, if the housing successor has fulfilled all obligations pursuant to Sections 33413 and 33418, the housing successor may expend up to two hundred fifty thousand dollars ($250,000) per fiscal year for homeless prevention and rapid rehousing services for individuals and families who are homeless or would be homeless but for this assistance, including the provision of short-term or medium-term rental assistance, contributions toward the construction of local or regional homeless shelters, housing relocation and stabilization services including

STATE OF CALIFORNIA

AUTHENTICATED

ELECTRONIC LEGAL MATERIAL

housing search, mediation, or outreach to property owners, credit repair, security or utility deposits, utility payments, rental assistance for a final month at a location, moving cost assistance, and case management, or other appropriate activities for homelessness prevention and rapid rehousing of persons who have become homeless. (3)  (A)  The housing successor shall expend all funds remaining in the Low and Moderate Income Housing Asset Fund after the expenditures allowed pursuant to paragraphs (1) and (2) for the development of housing affordable to and occupied by households earning 80 percent or less of the area median income, with at least 30 percent of these remaining funds expended for the development of rental housing affordable to and occupied by households earning 30 percent or less of the area median income and no more than 20 percent of these remaining funds expended for the development of housing affordable to and occupied by households earning between 60 percent and 80 percent of the area median income. A housing successor shall demonstrate in the annual report described in subdivision (f), for 2019, and every five years thereafter, that the housing successor’s expenditures from January 1, 2014, through the end of the latest fiscal year covered in the report comply with the requirements of this subparagraph.
(B)  If the housing successor fails to comply with the extremely low income requirement in any five-year report, then the housing successor shall ensure that at least 50 percent of these remaining funds expended in each fiscal year following the latest fiscal year following the report are expended for the development of rental housing affordable to, and occupied by, households earning 30 percent or less of the area median income until the housing successor demonstrates compliance with the extremely low income requirement in an annual report described in subdivision (f). (C)  If the housing successor exceeds the expenditure limit for households earning between 60 percent and 80 percent of the area median income in any five-year report, the housing successor shall not expend any of the remaining funds for households earning between 60 percent and 80 percent of the area median income until the housing successor demonstrates compliance with this limit in an annual report described in subdivision (f).
(D)  For purposes of this subdivision, “development” means new construction, acquisition and rehabilitation, substantial rehabilitation as defined in Section 33413, the acquisition of long-term affordability covenants on multifamily units as described in Section 33413, or the preservation of an assisted housing development that is eligible for prepayment or termination or for which within the expiration of rental restrictions is scheduled to occur within five years as those terms are defined in Section 65863.10 of the Government Code. Units described in this subparagraph may be counted towards any outstanding obligations pursuant to Section 33413, provided that the units meet the requirements of that section and are counted as provided in that section.
(b)  Subdivision (b) of Section 33334.4 shall not apply. Instead, if the aggregate number of units of deed-restricted rental housing restricted to seniors and assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the previous 10 years exceeds 50 percent of the

aggregate number of units of deed-restricted rental housing assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the same time period, then the housing successor shall not expend these funds to assist additional senior housing units until the housing successor or its host jurisdiction assists, and construction has commenced, a number of units available to all persons, regardless of age, that is equal to 50 percent of the aggregate number of units of deed-restricted rental housing units assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the time period described above.
(c)  (1)  Program income a housing successor receives shall not be associated with a project area and, notwithstanding subdivision (g) of Section 33334.2, may be expended anywhere within the jurisdiction of the housing successor or transferred pursuant to paragraph (2) without a finding of benefit to a project area. For purposes of this paragraph, “program income” means the sources described in paragraphs (3), (4), and (5) of subdivision (e) of Section 34176 and interest earned on deposits in the account.
(2)  Two or more housing successors within a county, within a single metropolitan statistical area, within 15 miles of each other, or that are in contiguous jurisdictions may enter into an agreement to transfer funds among their respective Low and Moderate Income Housing Asset Funds for the sole purpose of developing transit priority projects as defined in subdivisions (a) and (b) of Section 21155 of the Public Resources Code, permanent supportive housing as defined in paragraph (2) of subdivision (b) of Section 50675.14, housing for agricultural employees as defined in subdivision (g) of Section 50517.5, or special needs housing as defined in federal or state law or regulation, or for a regional homeless shelter, if all of the following conditions are met:
(A)  Each participating housing successor has made a finding based on substantial evidence, after a public hearing, that the agreement to transfer funds will not cause or exacerbate racial, ethnic, or economic segregation.
(B)  The development to be funded shall not be located in a census tract where more than 50 percent of its population is very low income, unless the development is within one-half mile of a major transit stop or high-quality transit corridor as defined in paragraph (3) of subdivision (b) of Section 21155 of the Public Resources Code. (C)  The completed development shall not result in a reduction in the number of housing units or a reduction in the affordability of housing units on the site where the development is to be built.
(D)  A transferring housing successor shall not have any outstanding obligations pursuant to Section 33413.
(E)  No housing successor may transfer more than one million dollars ($1,000,000) per fiscal year.
(F)  The jurisdictions of the transferring and receiving housing successors each have an adopted housing element that the Department of Housing and Community Development has found pursuant to Section 65585 of the Government Code to be in substantial compliance with the requirements of Article 10.6 (commencing with

Section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code and have submitted to the Department of Housing and Community Development the annual progress report required by Section 65400 of the Government Code within the preceding 12 months.
(G)  Transferred funds shall only assist rental units affordable to, and occupied by, households earning 60 percent or less of the area median income. (H)  Transferred funds not encumbered within two years shall be transferred to the Department of Housing and Community Development for expenditure pursuant to the Multifamily Housing Program or the Joe Serna, Jr. Farmworker Housing Grant Program.
(d)  Sections 33334.10 and 33334.12 shall not apply. Instead, if a housing successor has an excess surplus, the housing successor shall encumber the excess surplus for the purposes described in paragraph (3) of subdivision (a) or transfer the funds pursuant to paragraph (2) of subdivision (c) within three fiscal years. If the housing successor fails to comply with this subdivision, the housing successor, within 90 days of the end of the third fiscal year, shall transfer any excess surplus to the Department of Housing and Community Development for expenditure pursuant to the Multifamily Housing Program or the Joe Serna, Jr. Farmworker Housing Grant Program. For purposes of this subdivision, “excess surplus” shall mean an unencumbered amount in the account that exceeds the greater of one million dollars ($1,000,000) or the aggregate amount deposited into the account during the housing successor’s preceding four fiscal years, whichever is greater.
(e)  Section 33334.16 shall not apply to interests in real property acquired on or after February 1, 2012. With respect to interests in real property acquired by the former redevelopment agency before February 1, 2012, the time periods described in Section 33334.16 shall be deemed to have commenced on the date that the department approved the property as a housing asset.
(f)  Section 33080.1 of this code and Section 12463.3 of the Government Code shall not apply. Instead, the housing successor shall conduct, and shall provide to its governing body, an independent financial audit of the Low and Moderate Income Housing Asset Fund within six months after the end of each fiscal year, which may be included in the independent financial audit of the host jurisdiction. If the housing successor is a city or county, it shall also include in its report pursuant to Section 65400 of the Government Code and post on its Internet Web site all of the following information for the previous fiscal year. If the housing successor is not a city or county, it shall also provide to its governing body and post on its Internet Web site all of the following information for the previous fiscal year:
(1)  The amount the city, county, or city and county received pursuant to subparagraph (A) of paragraph (3) of subdivision (b) of Section 34191.4. (2)  The amount deposited to the Low and Moderate Income Housing Asset Fund, distinguishing between amounts deposited pursuant to subparagraphs (B) and (C) of paragraph (3) of subdivision (b) of Section 34191.4, amounts deposited for other items listed on the Recognized Obligation Payment Schedule, and other amounts deposited.

(3)  A statement of the balance in the fund as of the close of the fiscal year, distinguishing any amounts held for items listed on the Recognized Obligation Payment Schedule from other amounts.
(4)  A description of expenditures from the fund by category, including, but not limited to, expenditures (A) for monitoring and preserving the long-term affordability of units subject to affordability restrictions or covenants entered into by the redevelopment agency or the housing successor and administering the activities described in paragraphs (2) and (3) of subdivision (a), (B) for homeless prevention and rapid rehousing services for the development of housing described in paragraph (2) of subdivision (a), and (C) for the development of housing pursuant to paragraph (3) of subdivision (a).
(5)  As described in paragraph (1) of subdivision (a), the statutory value of real property owned by the housing successor, the value of loans and grants receivable, and the sum of these two amounts.
(6)  A description of any transfers made pursuant to paragraph (2) of subdivision (c) in the previous fiscal year and, if still unencumbered, in earlier fiscal years and a description of and status update on any project for which transferred funds have been or will be expended if that project has not yet been placed in service. (7)  A description of any project that the housing successor receives or holds property tax revenue pursuant to the Recognized Obligation Payment Schedule and the status of that project.
(8)  For interests in real property acquired by the former redevelopment agency before February 1, 2012, a status update on compliance with Section 33334.16. For interests in real property acquired on or after February 1, 2012, a status update on the project.
(9)  A description of any outstanding obligations pursuant to Section 33413 that remained to transfer to the housing successor on February 1, 2012, of the housing successor’s progress in meeting those obligations, and of the housing successor’s plans to meet unmet obligations. In addition, the housing successor shall include in the report posted on its Internet Web site the implementation plans of the former redevelopment agency.
(10)  The information required by subparagraph (B) of paragraph (3) of subdivision (a).
(11)  The percentage of units of deed-restricted rental housing restricted to seniors and assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the previous 10 years in relation to the aggregate number of units of deed-restricted rental housing assisted individually or jointly by the housing successor, its former redevelopment agency, and its host jurisdiction within the same time period.
(12)  The amount of any excess surplus, the amount of time that the successor agency has had excess surplus, and the housing successor’s plan for eliminating the excess surplus.
(13)  An inventory of homeownership units assisted by the former redevelopment agency or the housing successor that are subject to covenants or restrictions or to an

adopted program that protects the former redevelopment agency’s investment of moneys from the Low and Moderate Income Housing Fund pursuant to subdivision (f) of Section 33334.3. This inventory shall include all of the following information:
(A)  The number of those units.
(B)  In the first report pursuant to this subdivision, the number of units lost to the portfolio after February 1, 2012, and the reason or reasons for those losses. For all subsequent reports, the number of the units lost to the portfolio in the last fiscal year and the reason for those losses.
(C)  Any funds returned to the housing successor as part of an adopted program that protects the former redevelopment agency’s investment of moneys from the Low and Moderate Income Housing Fund.
(D)  Whether the housing successor has contracted with any outside entity for the management of the units and, if so, the identity of the entity. (Amended by Stats. 2017, Ch. 35, Sec. 1. (AB 346) Effective January 1, 2018.)

CITY COUNCIL
REPORT 9.E.

DATE: MARCH 3, 2026
TO: MAYOR AND COUNCIL MEMBERS
FROM: Markisha Guillory, Finance Director, 510-724-9823, [email protected] SUBJECT: FY 2026/27 FINANCIAL AND INVESTMENT POLICIES

RECOMMENDATION
City staff recommend that the City Council adopt a resolution approving the Financial and Investment Policies for Fiscal Year (FY) 2026/27.

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, City staff review, and, if appropriate, propose updates to the City’s financial 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.

Staff is presenting the proposed FY 2026/27 Financial and Investment Policies which do not include any changes from the prior fiscal year.

Staff presented the proposed Financial and Investment Policies for FY 2026/27 to the Finance Subcommittee at its meeting of February 18, 2026. The proposed policies do not contain any revisions. The Subcommittee accepted staff’s recommendation to present the proposed policies to the City Council for adoption.

REVIEW AND ANALYSIS
Financial policies are central to a strategic, long-term approach to financial management.

Adopting formal written financial policies include their ability to help government agencies:
• Institutionalize good financial management policies;
• Clarify strategic intent for financial management;
• Define boundaries;
• Support credit ratings;
• Promote long-term and strategic planning;
• Manage risks to financial condition; and
• Comply with established public management best practices.

Staff is presenting the proposed Financial and Investment Policies for City Council adoption.

The policies align with municipal finance best practices and are consistent with standard financial policies recommended by the Government Finance Officers Association (GFOA) and those implemented by other local government agencies. Staff is not recommending any changes to the existing policies. Note that the Reserve Policy and Pension Investment Policy were previously revised and approved by the City Council, and those updates have already been incorporated into the current policies. The following section provides a summary of each policy, and the full policies are included in Attachment A.

1. Structurally Balanced Budget
The City will aspire to create a proposed General Fund operating budget that is structurally balanced whereby current expenditures will be funded by current year revenue. If the proposed operating budget is structurally imbalanced, the City will develop a plan to create a proposed General Fund operating budget for the subsequent fiscal year that is structurally balanced.

2. Reserve 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. 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.

The revised Reserve Policy reduced the reserve level from 50% to 25% of the City's annual General Fund ongoing operating expenditures. It was adopted by the City Council on June 17, 2025.

3. Revenue Policy – One-Time (Non-Recurring) Resources
The City will strive to maintain a diversified and stable revenue base that is not overly dependent on any individual revenue type, land use, or major taxpayer. One-time resources (also referred to as “non-recurring”) should be used for one-time (non-recurring) expenditures, including but not limited to establishing and rebuilding reserves, early retirement of debt, capital expenditures, and reducing unfunded pension liabilities (California Employee Retirement System (CalPERS) and Other Post-Employment Benefits (OPEB)).

4. Revenue Policy – User Fees and Charges
The City of Pinole is empowered to recapture, through fees, up to the full cost of providing specific services. Regular and consistent review of all fees is necessary to ensure that the costs associated with delivery of individual services have been appropriately identified, and that the City is fully recovering those costs. It is the City’s policy to set user fees at full cost recovery levels, except where a greater community benefit is demonstrated to the satisfaction of the City Council, or when it is not cost effective to do so. The City will recover costs of new facilities and infrastructure necessitated through development impact fees consistent with state law.

5. Expenditure and Budget Policy
The City will deliver service in the most efficient and cost-effective manner. This includes utilizing the services of volunteers in areas where operationally and economically viable. The budget will state the objectives of the operating programs, and identify the resources being provided to accomplish the specified objectives.

6. Debt Policy
The City will limit the use of debt so as not to place a burden on the fiscal resources of the City and its taxpayers. Long-term borrowing will be limited to capital improvements or projects that cannot be financed from current revenues. When capital projects are financed, the City will amortize the debt within a period not to exceed the expected useful life of the project. The City will limit the total debt ratio (debt guaranteed by the General Fund) to 10% or as required by bond coverage ratios. The debt ratio is calculated by the relationship between the debt and the General Fund revenue.

7. Receivables Policy
The City will ensure the timely invoicing, monitoring, and collection of outstanding obligations owed to the City.

8. Grants Management Policy and Procedures
City departments actively pursue federal, state and other grant opportunities when deemed appropriate. Grant funding allows the City to leverage local public funds by extending and enhancing the services it offers to the community, and to introduce new initiatives.

9. Capital Assets Policy and Procedures
Purchased and donated assets meeting the City’s capitalization definition and threshold will be classified and recorded in the City’s financial records as capital assets. The value of the asset must meet the City’s capitalization threshold of $5,000 to be recorded as a capital asset.

10. Unclaimed Funds/Outstanding Checks Policy and Procedures The City of Pinole will account for unclaimed funds in a manner which follows Government Code Sections 50050 through 50056. Funds that remain unclaimed for at least three (3) years will become the property of the City of Pinole after the procedures identified herein have been followed.

11. Investment Policy
The purpose of this Policy is to define the parameters within which funds are to be managed.

In methods, procedures, and practices, the policy formalizes the framework for the City of Pinole’s investment activities that must be exercised to ensure effective and judicious fiscal and investment management of the City’s funds.

12. Pension and Other Post-Employment Benefits (OPEB) Investment Policy

The City of Pinole (the “City”) has established the City of Pinole Employee Benefit Pension Plan (the “Plan”), a Section 115 Trust. The goal of the Plan’s investment program is to provide a reasonable level of growth which will result in sufficient assets to offset a portion of the present and future obligations of retirement benefits provided by the California Public Employees Retirement System (“CalPERS”) for those eligible employees who meet the specified age and service requirements.

The revised Pension and Other Post-Employment Benefits (OPEB) Investment Policy includes the newly established OPEB subaccount. It was adopted by the City Council on September 16, 2025.

FISCAL IMPACT
There is no fiscal impact.

ATTACHMENTS
A. Resolution
B. Proposed Financial and Investment Policies FY 2026-27

RESOLUTION NO 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PINOLE APPROVING THE FINANCIAL AND INVESTMENT POLICIES FOR THE FISCAL YEAR 2026/27 WHEREAS, the City of Pinole has financial policies, including investment policies, that were most recently updated and approved by the City Council in May 2025; 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, State law recommends that California cities have investment policies that are adopted by their city council; and
WHEREAS, City staff presented the proposed financial and investment policies to the Finance Subcommittee on February 18, 2026 and received feedback from the Subcommittee; and
WHEREAS, City staff has addressed the feedback provided by the Subcommittee and is now seeking City Council’s adoption of the proposed financial and investment policies; and
WHEREAS, City staff presented proposed financial and investment policies for fiscal year (FY) 2026/27 to the City Council for consideration at the Council meeting held on March 3, 2026.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pinole hereby approves the City of Pinole Financial and Investment Policies Updated March 3, 2026, 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 March 2026 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 March 2026.
____________________________
Heather Bell-Spears, CMC
City Clerk

City of Pinole
Financial and Investment Policies
FY 2026/27
Financial Policies
Structurally Balanced Budget .......................................................................................... 1 Reserve Policy ................................................................................................................ 3 Revenue Policy – One-Time (Non-Recurring) Resources............................................... 4 Revenue Policy – User Fees and Charges ..................................................................... 5 Expenditure and Budget Policy ....................................................................................... 6 Debt Policy ...................................................................................................................... 7 Receivables Policy .......................................................................................................... 8 Grants Management Policy and Procedures................................................................... 9 Capital Assets Policy and Procedures........................................................................... 14 Unclaimed Funds/Outstanding Checks Policy and Procedures .................................... 17 Investment Policies
Investment Policy………………………………………………………………………………20
Pension Investment Policy……………………………………………………………………27

1 Structurally Balanced Budget
Policy
The City will aspire to create a proposed General Fund operating budget that is structurally balanced whereby current expenditures will be funded by current year revenue. If the proposed operating budget is structurally imbalanced, the City will develop a plan to create a proposed General Fund operating budget for the subsequent fiscal year that is structurally balanced.

Purpose
To ensure the sustainability of service and expenditure levels by requiring that ongoing General Fund operating expenditures be funded by ongoing revenues.

Definitions and Details

1. This policy applies to General Fund operating budgets.

2. Structural balance is defined as recurring (ongoing) revenues equaling or exceeding ongoing expenditures.

3. Under this policy, City staff will analyze whether the proposed General Fund operating budget is structurally balanced.

4. If City staff determines that the proposed budget is imbalanced, City staff will develop a plan to create a proposed General Fund operating budget for the following fiscal year that is structurally balanced, including possible revenue enhancements or expenditure decreases.

5. Internal service funds are intended to operate on a break-even basis.

6. To implement this policy, staff will identify General Fund operating revenue that is recurring and non-recurring. Recurring revenues are those that the City can reasonably expect to continue to receive on an annual basis over the next 5 to 10 years. Recurring revenues include, but may not be limited to, property taxes, sales and use taxes, utility user taxes, franchise taxes, business license taxes, transient occupancy taxes, other taxes, fines and forfeitures, interest on investments, use of money and property, motor vehicle in-lieu, city interfund transfers, licenses and permits, resources from other governmental agencies, charges to other City funds, and other reimbursements and charges for services. Non-recurring revenues are monies that the City cannot reasonably expect to continue to receive over the next 10 to 15 years. Non-recurring revenues include, but may not be limited to, fund balance, grant funds, financing proceeds, and sale of property and equipment.

Revenue from recurring sources that is significantly above normal levels will be considered non-recurring revenues.

7. Staff will also identify General Fund operating expenditures that are recurring and non-recurring. A recurring expenditure is an ongoing cost that relates to an ongoing City service or activity. Examples of recurring expenditures are salaries, benefits, utilities, debt service, maintenance, normal capital outlays, and other mandated costs. Non- recurring expenditures are costs that are incurred for one-time activities,

2 or services that are scheduled to "sunset". Typical non-recurring expenditures include those for grant-funded activities, special initiatives, and one-time capital expenditures.

8. A structurally balanced General Fund operating budget is a best practice. It is, however, appropriate and consistent with best practice to adopt a structurally imbalanced budget for a given fiscal year under certain circumstances. For example, it is appropriate and consistent with best practice to use designated reserves as a non-recurring revenue to cover recurring expenditures during times of fiscal duress.

If a budget is proposed with this characteristic, the Structurally Balanced Budget Policy provides appropriate direction, which is that staff should develop a plan to create a structurally balanced budget for the subsequent fiscal year.

3 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 committed1for 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 decisionmaking authority. Commitments may be changed or lifted only by the government taking the same formal action that originally imposed the constraint..

4 Revenue Policy – One-Time (Non-Recurring) Resources
Policy
The City will strive to maintain a diversified and stable revenue base that is not overly dependent on any individual revenue type, land use, or major taxpayer. One-time resources (also referred to as “non-recurring”) should be used for one-time (nonrecurring) expenditures, including but not limited to establishing and rebuilding reserves, early retirement of debt, capital expenditures, and reducing unfunded pension liabilities (California Employee Retirement System (CalPERS) and Other Post Employment Benefits (OPEB)).

Purpose
To ensure that the City appropriately uses one-time resources, including not using onetime resources on ongoing expenditures, which can contribute to a structurally imbalanced budget.

Definitions and Details

1. Non-recurring revenues are monies that the City cannot reasonably expect to continue to receive over the next 10 to 15 years. Non-recurring revenues include, but may not be limited to, fund balance, grant funds, financing proceeds, and sale of property and equipment. Revenue from recurring sources that is significantly above normal levels will be considered non-recurring revenues.

5 Revenue Policy – User Fees and Charges
Policy
The City of Pinole is empowered to recapture, through fees, up to the full cost of providing specific services. Regular and consistent review of all fees is necessary to ensure that the costs associated with delivery of individual services have been appropriately identified, and that the City is fully recovering those costs. It is the City’s policy to set user fees at full cost recovery levels, except where a greater community benefit is demonstrated to the satisfaction of the City Council, or when it is not cost effective to do so. The City will recover costs of new facilities and infrastructure necessitated through development impact fees consistent with state law.

Purpose
To determine the full costs of providing specific services so that the City Council can make informed decisions as to the appropriate levels of fees for services that may be imposed to avoid providing unwanted subsidies. The City Council may decide against full cost recovery in cases where greater community benefit is demonstrated.

Definitions and Details

1. Every service supported by user fees or charges will be analyzed bi-annually, or as required by statute or directed by City Council to determine the net cost of providing the service.

2. Net cost will be determined by identifying all revenues generated or attributed to the service and subtracting all cost elements (direct and indirect expenses, capital outlays and other one-time expenses). The resulting figure will be the level of subsidy, which the City Council will use as a basis for determining user fee increases or decreases.

3. If it is determined that there is a net cost to providing the service, the City Council will raise user fees to achieve full cost recovery, unless it is decided that the subsidy should be maintained.

4. Additional information may be necessary to aid in the decision as to whether or not a service should be subsidized (community benefit, cost-effectiveness, etc.)

6 Expenditure and Budget Policy
Policy
The City will deliver service in the most efficient and cost-effective manner. This includes utilizing the services of volunteers in areas where operationally and economically viable.

The budget will state the objectives of the operating programs, and identify the resources being provided to accomplish the specified objectives.

Purpose
To provide guidance to staff in developing spending plans that address the City’s priorities and policy objectives while ensuring benefit to the City.

Definitions and Details

1. Department expenditures are limited to:
a. Budgeted expenditures approved by the City Council as appropriated by major category:
i. Salary and Benefits;
ii. Services and Supplies: Travel and Training, Office Expenses, Repairs and Maintenance, Materials, Professional Services, etc.; and Capital Outlay.

2. The operating budget will be prepared to fund current year expenditures with current year revenue. However, surplus fund balances may be used to increase reserves, fund Capital Improvement Projects, reduce unfunded pension liability (California Employee Retirement System (CalPERS) and Other Post Employment Benefits (OPEB)), or carried forward to fund future years’ operating budgets when necessary to stabilize services and fund capital outlay.

3. Budget transfers require the approval of the City Manager or designee except those affecting personnel and capital projects which must be approved by the City Council.

4. Budget transfers required to hire additional permanent personnel require the City Council’s approval.

5. The City will periodically update replacement and maintenance financing plans, and incorporate them into the Budget.

6. The City will monitor and review methods of operation to ensure that services continue to be delivered in the most cost-effective manner possible. This review process encompasses a wide range of productivity issues, including:
a. Analyzing systems and procedures to ensure efficient delivery of services. b. Evaluating the ability of new technologies and related capital investments to improve productivity.
c. Developing the skills and abilities of all City employees. d. Developing and implementing appropriate methods of recognizing and rewarding exceptional employee performance.
e. Evaluating the ability of the private sector to perform the same level of service at a lower cost.

7 Debt Policy
Policy
The City will limit the use of debt so as not to place a burden on the fiscal resources of the City and its taxpayers. Long-term borrowing will be limited to capital improvements or projects that cannot be financed from current revenues. When capital projects are financed, the City will amortize the debt within a period not to exceed the expected useful life of the project. The City will limit the total debt ratio (debt guaranteed by the General Fund) to 10% or as required by bond coverage ratios. The debt ratio is calculated by the relationship between the debt and the General Fund revenue.

Purpose
To maintain fiscal viability by not encumbering the General Fund with excessive debt payments or using debt to support operating expenses.

Definitions and Details

1. For purposes of computing the percentage of debt payments the proposed budget expenditures will be used.

2. The ratio of debt payments to operating expenditures will be presented in the annual budget.

3. The City will investigate the use of special assessment, revenue or other selfsupporting bonds to limit the General Fund obligation for debt service payments.

4. The City will not use long-term debt for current operations.

5. The City will not use short-term borrowing to support routine operations, provided however, that it may be used to meet temporary cash flow needs.

6. The City will maintain strong communications with bond rating agencies about the City’s financial condition and will follow a policy of full disclosure on financial reports and bond prospectus.

7. The City will strive to maintain or improve the City’s bond rating.

8. The City will utilize inter-fund loans when possible to reduce the cost of financing capital improvements.

9. The City is required to enter into an agreement for inter-fund loans beyond the current fiscal year.

8 Receivables Policy
Policy
The City will ensure the timely invoicing, monitoring, and collection of outstanding obligations owed to the City.

Purpose
To maintain appropriate oversight of all receivables and maintain sound fiscal management and accounting practices related to all receivables.

Definitions and Details

1. For the purpose of this policy, receivables are defined to include outstanding obligations owed to the City for services or goods supplied.

2. All receivables shall be recorded in accordance with Generally Accepted Accounting Principles (GAAP).

3. Accounts receivable will be administered by the Finance Department.

4. Accounts receivable shall be established for services or goods provided in advance of a payment and should include terms for collection. Invoices should be prepared in a timely manner but not less than on a monthly basis. Invoices should include a description of the goods or services provided, payment terms and remittance address.

5. All accounts receivable should be recorded in a manner that allows for aging analysis. Reconciliation of accounts receivable may be performed on a monthly, quarterly or annual basis depending on the type of receivable.

6. Collection options should be evaluated and pursued to maximize collections. The use of collection agencies and programs such as the State Interagency Intercept Collection Program or the County Tax lien process may be used based on the type of receivable.

7. An allowance for doubtful accounts should be recorded after a bad debt expense is estimated. Write-off of bad debt should be performed on an annual basis to ensure that accounts receivable and allowance balances are not overstated.

8. The City will establish written procedures to document the accounts receivable process and bad debt write-off process for adequate internal controls and proper management oversight. These procedures should be reviewed annually as part of the year end audit process.

9 Grants Management Policy and Procedures
Policy
City departments actively pursue federal, state and other grant opportunities when deemed appropriate. Grant funding allows the City to leverage local public funds by extending and enhancing the services it offers to the community, and to introduce new initiatives.

Purpose
The purpose of this policy is to specify circumstances when grant funding is appropriate and to establish a standardized set of procedures for the fiscal administration, management, and monitoring of public and private grants. This policy is intended to ensure compliance with all applicable administrative, financial, reporting, and monitoring requirements established by the funding agency as well as all applicable administrative and fiscal directives and guidelines established by the City of Pinole. The policy and procedures established herein shall apply to all Federal, State, County and private grants administered by the City.

Definitions and Details

1. Staff Responsibilities
a. City Department seeking and managing grant funding is responsible for:
i. Preparation of grant application materials;
ii. Providing sufficient data to allow City Management to evaluate the costs and benefits of the proposed grant;
iii. Obtaining appropriate approvals for submission of grant, if necessary; iv. Obtaining City Council approval for acceptance of grant; v. Understanding the operational and budgetary impact the grant has on the City;
vi. Accumulating the appropriate accounting detail and
supporting documentation;
vii. Preparation of reports required by the grantor;
viii. Providing the Finance Department with the following:

1. Grant Award Letter;

2. Grant Contract;

3. City Council minutes of action or Council Resolution approving the grant;

4. An administrative manual (this includes program guidelines and accounting procedures). This will allow Finance to maintain grant files which are accurate and complete.

10 ix. Providing Finance copies of all grant amendments, program reporting, reimbursement requests and other communications to all agents involved in the grant administration process for review prior to submission.
a. The Finance Department (Finance Director) is responsible for:
i. Reviewing all financial reports to the grantor prior to submission to ensure its accuracy;
ii. Assisting departments with any problems or questions regarding the grant submission process;
iii. Scheduling audit of grant programs when requested by Grantee Agency. City staff will aid in the auditing process providing available source documents as requested by the auditing agency;
iv. Coordinating the accounting for all receipts and disbursements related to the grant. Finance Department will determine setup and maintain the most appropriate method (s) of accounting for the grant in the financial system.

2. Pre-Application
Prior to submitting an application for any grant award, the applicant department shall thoroughly review the grant requirements outlined in the solicitation to ensure that the department is aware of and has the capacity to meet all administrative, fiscal, programmatic, reporting and monitoring requirements.

3. Post-Award
a. Set-Up
All new grants should be reviewed by the Finance Director to ensure that all grant details are accurate and grant budget is established in the financial system in accordance with any special conditions required by the funder. i. Acceptance of all grants must be approved by action of the City Council. Said approval shall include authorization to appropriate funding to revenue and expenditure accounts.
ii. For grants that were not included in the annual adopted budget, the applicant department will submit a request to appropriate revenue and expenditures to the City Council for review and approval. Once the grant budget has been approved by the City Council, department staff should submit a request to the Finance Department to establish the approved budget in the financial system.
iii. The term of grant-funded positions must be clearly identified and disclosed to the City Council prior to approval. If the expiration of a grant requires the application of General Fund revenue for continued funding, this stipulation must also be disclosed.

11 iv. One-time or fluctuating grant sources should not be used for ongoing programs.
v. The awarded department assumes the lead role in grant management in collaboration with the Finance Department.
b. Cash Handling
Grant funds are received from various funding agencies via checks and electronic wire/ACH transfers only and should be sent to the Finance Department. Hard copy checks are deposited weekly and promptly recorded in the City’s financial system.

4. Grant Monitoring and Quarterly Reporting
a. Grant Award Monitoring
Award monitoring shall be the responsibility of the applicant department to ensure that grant funds are expended for eligible activities in accordance with the guidelines established by the funder, including, but not limited to:

The applicant department shall obtain all documentation necessary to fully and accurately support all grant expenditures, including expenditures incurred by sub- recipients. Examples of supporting documentation may include, but not be limited to:
i. Employee timesheets
ii. Personnel Activity Reports
iii. Personnel Action Forms
iv. Payroll reports
v. Invoices and proof of payment
vi. Purchase receipts
vii. Workshop/Training itineraries
viii. Travel documents
b. Quarterly Reporting
Finance Department staff should review grant expenditures and cash position as needed to ensure proper oversight and fiscal administration of the grant.

Claims for reimbursement based grants should be sent to the funder timely to ensure prompt reimbursement. If grant reimbursements are not received within the timeframe prescribed by the funder - generally 60 to 90 days - the appropriate applicant department staff should follow up to check on the status of the reimbursement request.

Grants are required to be reconciled at least quarterly as part of the Finance

12 Department’s grant reconciliation process. Grant reconciliation should include review of all of the following:
i. Grant expenditure to revenue balance
ii. Grant budget to actual balance
iii. Status of reimbursement requests submitted to the funder for purpose of reversing revenue accruals
iv. Grant advances and whether or not funds should be recognized v. Grant end dates, closeouts
vi. Review grant information against the general ledger to ensure accuracy of information listed

5. Record Retention
The City is committed to ensuring that all necessary grant records and documents are adequately retained as required by federal, state, and private funding agencies.

The below Record Retention Schedule is approved as the retention schedule for grant records and documents maintained by the applicant department. The schedule is applicable to all physical and electronic grant records maintained by the department as part of the administration and management of federal, state, and private grant funds.

Record Retention Schedule: Grant Records
Record Type* Retention Period
Original grant proposal
Grant-specific policies and procedures
Grant award letter
Grant agreement and subsequent
modifications, if applicable
Grant budget and subsequent
modifications, if applicable
All pertinent funder correspondence,
including emails, phone log notes, letters,
site visit/monitoring/corrective action/audit
reports, etc…
All pertinent sub-recipient/sub-grantee
correspondence including emails, phone
At least 5 years following official
notification by the awarding agency that
the grant has been fiscally and
programmatically closed OR at least 5
years following the closure of its audit
report covering the entire award period,
whichever is later.

13 log notes, letters, site
visit/monitoring/corrective action/audit
reports, etc…
Fiscal and program/performance reports
submitted to the funder including
explanation of data collection/reporting
methodology, if not evident
Wire transfers and/or copies of
reimbursement checks received
Documentation of required matching
funds
All documentation relating to grantee
compliance with the grant agreement
All evidence of returned grant funds
All supporting documentation necessary
to fully and adequately justify grant
expenditures including timesheets, payroll
reports, Personnel Activity Reports,
receipts, invoices, etc.

Other documents deemed necessary and
important by grant program/fiscal staff
and/or documents required to be
maintained by the funder
* All grant documents and records should be organized and maintained in designated grant files or other systematic organizational structure.

14 Capital Assets Policy and Procedures
Policy
Purchased and donated assets meeting the City’s capitalization definition and threshold will be classified and recorded in the City’s financial records as capital assets. The value of the asset must meet the City’s capitalization threshold of $5,000 to be recorded as a capital asset.

Purpose
To define costs eligible and establish thresholds for capitalization in conformity with Governmental Accounting Standards Board Statement No. 34 Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments and Statement No. 51 Accounting and Financial Reporting for Intangible Capital Assets.

Definitions and Details

1. Definition of a Capital Asset
A capital asset is any tangible or intangible asset purchased for use in the day-to- day operations of the City with a useful life greater than one year and has an acquisition cost of $5,000 or more. Donations with an estimated appraised value of $5,000 or more and have a useful life greater than one year is also considered a capital asset. Capital assets include items such as land, sewer lines, buildings, vehicles, equipment, and furniture.

2. Major Asset Classes
a. (100) Land – includes land under infrastructure and preparation costs. Costs can include acquisition prices and cost of initially preparing land for its intended use (basic site improvements, removal, excavation, relocation, reconstruction). Usually has an indefinite useful life and is not depreciated. b. (200) Improvements other than buildings - permanent improvements (nonmoveable), other than buildings that add value to land, but do not have an indefinite useful life. Examples include fences, retaining walls, parking lots, and landscaping.
c. (300) Buildings - permanent structures. Costs can include purchase of new building or cost of an improvement to an existing building. An entire building can be classified as one asset or be reported as separate capital assets if discrete portions of the building have significantly different useful lives (e.g. roof separate from building).
d. (400) Infrastructure - capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples include roads, bridges, tunnels, drainage

15 systems, water and sewer systems, and lighting systems. e. (600) Furnishings and Equipment - moveable assets that includes all costs to place equipment into service (freight, installation, warranties, and sales tax).

Each piece of equipment must meet the minimum capitalization threshold and is not recorded in bulk. Examples include vehicles, furnishings, machinery, servers, and appliances.
f. (700) Other Capital Assets – capital assets that do not fit into any of the major asset classes. This can include:
i. Intangibles – assets that are not physical in nature. Generally, this includes software and easements (can also include water rights, trademarks).
ii. Easements - intangibles with an indefinite useful life and are not depreciated.
iii. Software - both internally generated and off-the-shelf. g. (900) Construction in Progress - construction projects in progress at the conclusion of the fiscal year. These costs are not depreciable until the project is completed and booked into the correct category of improvements, buildings, or infrastructure.

3. Capital Asset Useful Life
The capital asset useful life is the determining factor for the number of accounting periods over which the asset is to be depreciated. The City can determine the useful life of an asset by using historical information or by seeking guidance from other external resources to determine the proper useful life of the asset. Depreciation is recorded on a straight-line basis over the estimated useful life of the asset as follows:

Class Useful Life
Bridges 75 years
Buildings 50 years
Equipment 5-10 years
Parks 70 years
Street drainage 100 years
Streets and roads 50 years
Vehicles 5-10 years
Wastewater infrastructure 50 years

4. Capital Asset Review
The City relies on a decentralized method to verify the accuracy of capital assets.

Departments are responsible for evaluating the condition and functionality of existing capital assets assigned to their department to determine if the asset is still providing the most appropriate method to deliver services. Capital assets should be assessed on an annual basis.

5. Disposal of Capital Assets/Surplus Property

16 When an asset will no longer be used in operations, voluntarily or involuntarily, the asset shall be removed from the City’s financial records and removed from service.

Disposal of equipment, material, or inventory will be in accordance with the City’s surplus property guidelines.
“Surplus Property” is used generically to describe any City property that is no longer needed or useable by the holding department. The City Council shall declare item(s) surplus prior to disposal.

6. Methods of Disposition
a. The department head or designee in consultation with the Finance Director shall determine or approve one of the following methods of disposition that is most appropriate and in the best interests of the City. b. All surplus property is for sale “as is” and “where is”, with no warranty, guarantee, or representation of any kind, expressed or implied, as to the condition, utility or usability or the property offered for sale. Appropriate methods of sale are as follows:
i. Public Auction - Surplus property may be sold at public auction. City staff may conduct public Auctions, or the City may contract with a professional auctioneer including professional auction services. ii. Bids - Bids may be solicited for the sale of surplus property. Surplus property disposed of in this manner shall be sold to the highest responsible bidder.
iii. Selling for Scrap - Surplus property may be sold as scrap if the department head or designee in consultation with the Finance Director deems that the value of the raw material exceeds the value of the property as a whole.
iv. Negotiated Sale - Surplus property may be sold outright if the department head or designee in consultation with the Finance Director determines that only one known buyer is available or interested in acquiring the property.
v. No Value Item – Where the department head or designee in consultation with the Finance Director determines that specific supplies or equipment are surplus and of minimal value to the City due to spoilage, obsolescence or other cause, or where the Finance Director, serving as the Purchasing Officer, determines that the cost of disposal of such supplies or equipment would exceed the recovery value, the department head or designee in consultation with the Finance Director shall dispose of the same in such a manner as he or she deems appropriate and in the best interest of the City.
c. Surplus property that remains unsold will be donated to a non-profit organization or transferred to an appropriate recycle center. d. Proceeds from the sale or trade-in of surplus property shall be submitted to Finance for returning to the appropriate fund.

17 Unclaimed Funds/Outstanding Checks Policy and Procedures Policy
The City of Pinole will account for unclaimed funds in a manner which follows Government Code Sections 50050 through 50056. Funds that remain unclaimed for at least three (3) years will become the property of the City of Pinole after the procedures identified herein have been followed.

Purpose
The purpose of this policy is to establish guidelines for the proper disposition of unclaimed funds and outstanding checks in accordance with government statutes.

Definitions and Details

1. Definitions
a. Unclaimed Funds - Consists of funds which are not the property of the City but remain in the City Treasury for three (3) or more years without a claim being filed by the legal owner(s). Unclaimed funds do not include individual items of less than $15.00, any amounts in which the depositor’s name is unknown, or restitution to victims.
b. Warrant – Instrument issued to pay for goods and/or services rendered, issue refunds, etc. (i.e. a check).
c. Stale Dated – A check that is older than six (6) months. d. Escheat – refers to state escheat laws that require agencies to transfer unclaimed property or funds to the state after three years and reasonable efforts locate the property owner.

2. Guidelines
The City of Pinole has established the policy to hold unclaimed payroll and accounts payable checks rather than escheating the unclaimed funds to the State of California.

This unclaimed funds policy applies to all outstanding payroll and accounts payable checks abandoned three years after the issue date.

3. Procedures: Items over $15.00
a. Quarterly during the bank reconciliation process, the outstanding warrant register will be reviewed for items six (6) months and older. For the warrants six months and older, a letter and unclaimed property claim form will be mailed to the address on record for the issued warrant. See Exhibit 1 and 2 for examples.
b. Every June 30th and December 31st, (final evaluation dates) all remaining

18 outstanding warrants will be evaluated. Any warrants issued more than 12 months prior to evaluation date will receive a second letter and affidavit form. If no response is received within 30 days for the warrants 12 months or greater, the warrant will be identified as stale dated. Stale dated warrants shall be cancelled and voided in the system. A journal entry shall be prepared to record the total amount of stale dated checks in a hold account called “Aged Unclaimed Warrants”.
c. A list of stale date warrants containing the warrant number, issue date, amount, and payee shall be maintained by the Finance Department. If a cancelled warrant is presented, or the payee files a claim after cancellation, the warrant shall be reissued by debiting the “Aged Unclaimed Warrants” account, and the original warrant shall be removed from the stale dated list.
d. Also, on June 30th and December 31st, the stale dated list shall be evaluated to determine which warrants are more than 3 years old from the date of issue. Warrants that are more than 3 years old will be handled as follows:
i. A notice must be published once a week for two consecutive weeks in a newspaper of general circulation in the City of Pinole stating the payee, the amount, the fund in which the money is held, and that it is proposed that the money will become the property of the City of Pinole on a specific date (not less than 45 nor more than 60 days after the first publication). See Exhibit 3 for example. ii. Upon or prior to publication, a party of interest may file a claim (Exhibit 2) for the funds with the Finance Director. The claim must contain the claimant’s name, address, amount, tax identification number, and grounds for claim prior to the date the funds become property of the City of Pinole. The Finance Director can require additional information to help substantiate the claim.
iii. On the day identified in the notice, the total dollar amount (on which no claims were filed) becomes the property of the City. A journal entry will be prepared to recognize the revenue. The money will be moved from “Aged Unclaimed Warrants” to the fund the warrant was originally issued from.

4. Procedures: Items under $15.00 or items where the depositor is unknown a. Quarterly during the bank reconciliation process, the outstanding warrant register will be reviewed for items six (6) months and older. For the warrants six months and older, a letter and unclaimed property claim form will be mailed to the address on record for the issued warrant. See Exhibit 1 and 2 for examples.
b. Every June 30th and December 31st, (final evaluation dates) all remaining outstanding warrants will be evaluated. Any warrants issued more than 12 months prior to evaluation date will receive a second letter and affidavit form. If no response is received within 30 days for the warrants 12 months or greater, it becomes the property of the City of Pinole. Stale dated warrants shall be cancelled and voided in the system. A journal entry will

19 be used to record the total amount of these warrants as revenue. c. Any individual check of less than fifteen ($15) dollars, or any amount if the depositor’s name is unknown, which remain unclaimed for a period of one (1) year may be transferred from the funds which the money was originally drawn from by the City Council to the General Fund without the necessity of publication of notice in a newspaper. (Gov. Code Section 50055)

20 City of Pinole

INVESTMENT POLICY
I. Introduction
The purpose of this Policy is to define the parameters within which funds are to be managed. In methods, procedures, and practices, the policy formalizes the framework for the City of Pinole’s investment activities that must be exercised to ensure effective and judicious fiscal and investment management of the City’s funds.

II. Governing Authority
The investment program of the City of Pinole (“the City”) shall be operated in conformance with federal, state, and other legal requirements. All funds will be invested in accordance with the City’s Investment Policy, and California Government Code Sections 5360l, 5360l.l, 5360l.5, 5360l.6, 53635, 53646, 53635.5, and l648l.2.

III. Scope
It is intended that this policy cover all funds (except retirement funds) and investment activities under the direction of the City. The investment of bond proceeds will be in accordance with the provisions of relevant bond documents.

IV. Objectives
The primary objectives, in priority order, of the investment activities of the City shall be:

1. Safety
Safety of principal is the foremost objective of the investment program.

Investments of the City shall be undertaken in a manner that seeks to ensure preservation of capital in the portfolio.

2. Liquidity
The investment portfolio of the City will remain sufficiently liquid to enable the City to meet its cash flow requirements.

22 3. Return
The investment portfolio of the City shall be designed with the objective of attaining a market rate of return on its investments consistent with the constraints imposed by its safety objective and cash flow considerations.

V. Standards of Care

1. Prudence
The standard of prudence to be used by investment officials shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse development.

The “prudent person” standard states that,
“Investments shall be made with judgment and care under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.”

2. Ethics and Conflict of Interest
Officers and employees involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions.

3. Delegation of Authority
The management responsibility for the investment program is hereby delegated to the City Treasurer or designee who shall monitor and review all investments for consistency with this investment policy. No person may engage in an investment transaction except as provided under the limits of this policy. The City Council may delegate its investment decision making and execution authority to an investment advisor. The advisor shall follow the policy and such other written instructions as are provided.

23 VI. Permitted Investment Instruments

1. U.S. Treasury and other government notes, bonds, bills, or obligations that carry the full faith and credit guarantee of the United States for the payment of principal and interest. Maturities shall not exceed five years in length. No more than fifty (50) percent of the City’s investment portfolio may be invested in instruments defined under this section.

2. Federal Agency or U.S. government sponsored enterprises (GSE) bonds and note obligations, participations or other instruments. This includes but is not limited to obligations issued by Banks for Cooperatives, Federal Land Banks, Federal Intermediate Credit Banks, Federal Farm Credit Banks, Federal Home Loan Banks, the Federal Home Loan Bank Board, the Federal Home Loan Mortgage Corporation or in obligations, participations, or other instruments of, or issued by, or fully guaranteed as to principal and interest by, the Federal National Mortgage Association; or in guaranteed portions of Small Business Administration notes. Maturities shall not exceed five years in length, unless the funds to be invested are moneys generated from the proceeds of the sale of real estate assets restricted to a reserve account, and the investment security is “AA” rated by at least two of three nationally recognized rating agencies (Standard & Poor’s, Moody’s or Fitch) in which case maturities shall not exceed ten years in length. No more than 40 (forty) percent of the City’s investment portfolio may be invested in instruments defined under this section.

3. Certificates of Deposit (CDs) which are Federal Deposit Insurance Company (FDIC) insured or fully collateralized time CD’s in financial institutions in California. No more than 10 percent of the City’s portfolio shall be invested in FDIC insured or fully collateralized time certificates of deposit. Maturities shall not exceed five years in length.

4. Negotiable FDIC insured Certificates of Deposit or deposit notes issued by a nationally or state-chartered bank or a state or federal savings and loan association or by a state-licensed branch of a foreign bank. Purchase of negotiable CD’s may not exceed 30 percent of the City’s investment portfolio.

Maturities shall not exceed five years in length, and must have an IDC number greater than 165 (excellent rated).

24 5. Bankers’ Acceptances issued by domestic or foreign banks, which are eligible for purchase by the Federal Reserve System, the short-term paper of which is rated in the highest category by Moody’s Investors Services or by Standard & Poor’s Corporation. Purchases of Bankers’ Acceptances may not exceed 180 days maturity or 40 percent of the City’s investment portfolio. No more than l0 percent of the City’s investment portfolio may be invested in the Banker’s Acceptances of any one commercial bank.

6. Medium-term corporate notes issued by corporations organized and operating within the United States or by depository institutions licensed by the U.S. or any state and operating within the U.S. Medium-term corporate notes shall be rated in a Double-AA rating category “AA” or its equivalent or better by a nationally recognized rating service. Additionally, corporate notes shall be widely diversified across all market sectors. Purchase of medium-term corporate notes may not exceed fifteen (15) percent of the City’s investment portfolio. No more than five (5) percent of the City’s investment portfolio may be invested in a medium-term note of any one corporation. Maturities shall not exceed five years in length.

7. Commercial paper rated in the highest tier of “prime quality” as provided by Moody’s Investors Service, Inc., or Standard & Poor’s Corporation, provided that the issuing corporation is organized and operating within the United States, has total assets in excess of $500 million and has an “A” or higher rating for its long-term debt, if any, as provided by Moody’s or Standard & Poor’s. Purchases of eligible commercial paper may not exceed l80 day’s maturity nor represent more than l0 percent of the outstanding paper of an issuing corporation. Purchases of commercial paper may not exceed l5 percent of the City’s investment portfolio. An additional l5 percent or a total of 30 percent of the City’s investment portfolio may be invested only if the dollar weighted average of the entire amount does not exceed 3l days.

8. Repurchase Agreements used solely as short-term investments not to exceed 30 days. The following collateral restrictions will be observed: Only U.S. Treasury securities or Federal Agency securities, as described in VI.l and 2, will be acceptable collateral. All securities underlying Repurchase Agreements must be delivered to the City’s custodian bank versus payment or be handled under a tri-party repurchase agreement. The total of all collateral for each Repurchase Agreement must equal or exceed, on the basis of market value plus accrued interest, l03 percent of the total dollar value of the money invested by the City for the term of the investment unless the term of the investment is overnight, in which case the total of all collateral for the Repurchase Agreement must equal or exceed, on the basis of market value plus accrued interest, l00 percent of the total dollar value of the

25 investment. For any Repurchase Agreement with a term of more than one day, the value of the underlying securities must be reviewed on a regular basis. Market value must be calculated each time there is a substitution of collateral. The City or its trustee shall have a perfected first security interest under the Uniform Commercial Code in all securities subject to Repurchase Agreement.

The City may enter into Repurchase Agreements with (l) primary dealers in U.S. Government securities who are eligible to transact business with, and who report to, the Federal Reserve Bank of New York, and (2) California and non-California banking institutions having assets in excess of $l billion and in the highest short-term rating category as provided by Moody’s Investors Service, Inc. or Standard & Poor’s Corporation. The City will have specific written agreements with each firm with which it enters into Repurchase Agreements. No more than 10 percent of the City’s investment portfolio may be invested in Repurchase Agreements.

9. State of California’s Local Agency Investment Fund (LAIF). Up to l00 percent of the City’s portfolio may be invested in LAIF or up to the maximum permitted by California State Law. The LAIF portfolio should be reviewed periodically.

10.Securities and Exchange Commission (SEC) registered Money Market Mutual Funds as authorized by Government Code Sections 5360l and/or 53635. To be eligible for investment pursuant to this subdivision these companies shall either:
a. Attain the highest ranking letter or numerical rating provided by not less than two of the three largest nationally recognized rating services; b. Have an investment advisor registered with the Securities and Exchange Commission with not less than five years experience investing in securities and obligations authorized by Government Code Section 5360l;
c. Assets under management in excess of $500,000,000;
d. The purchase price of the share of beneficial interest shall not include any commission charged by these companies; and,
e. Purchases shall not exceed l5 percent of the investment portfolio of the City.

Under no circumstances shall any funds of the City be invested in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages. Nor

26 shall any of the City’s funds be invested in any security that could result in zero interest accrual if held to maturity.

VII. Reporting Requirements
Quarterly investment reports shall be submitted by the City’s Treasurer or designee to the City Council. The reports shall include, at a minimum, the following information for each individual investment:
• Type investment instrument;
• Institution/Issuer;
• Maturity date;
• Cost of security (par value) and dollar amount in all securities; • Description of the funds and investments;
• Maturity distribution and of the portfolio;
• Current market value of all securities;
• Rate of return for the portfolio;
• A statement of compliance of the portfolio with the City’s Investment Policy, and its ability to meet expenditure requirements for the next six months.

Pursuant to Government Code Section 53646 (e), the Treasurer may supply to the governing body, chief executive office and the external auditor a copy of the most recent statement received by the City on those investments in the State Local Agency Investment Fund in lieu of the above required statement.

VIII. Safekeeping and Custody
The assets of the City shall be secured through the third-party custody and safekeeping procedures. Bearer instruments shall be held only through third-party institutions. Collateralized securities such as repurchase agreements shall be purchased using the delivery vs. payment (DVP) procedure.

27 City of Pinole

PENSION AND OTHER POST-EMPLOYMENT BENEFITS (OPEB)

INVESTMENT POLICY
I. Introduction
The City of Pinole (the “City”) has established the City of Pinole Employee Benefit Pension Plan (the “Plan”), a Section 115 Trust. The goal of the Plan’s investment program is to provide a reasonable level of growth which will result in sufficient assets to offset a portion of the present and future obligations of retirement benefits provided by the California Public Employees Retirement System (“CalPERS”) and Other Post-Employment Benefits (OPEB) provided by the City for those eligible employees who meet the specified age and service requirements.

II. Statement of Purpose
The purpose of this Pension and OPEB Investment Policy is to establish a comprehensive strategy for assets invested under the Plan, and outline prudent and acceptable parameters in which pension and OPEB funds are to be managed.

The primary objectives of this policy are to:
• Facilitate the process of ongoing communication between the Plan Sponsor and its plan fiduciaries;
• Confirm the Plan’s investment goals and objectives and management policies applicable to the investment portfolio;
• Provide a framework to construct a well-diversified asset mix that can potentially be expected to meet the account’s short and long-term needs that is consistent with the account’s investment objectives, liquidity considerations and risk tolerance;
• Identify any unique considerations that may restrict or limit the investment discretion of its designated investment managers;
• Help maintain a long-term perspective when market volatility is caused by short-term market movements.

III. Roles and Responsibilities
Governing Authority
The pension and OPEB investment program of the City of Pinole (“the City”) shall be operated in conformance with federal, state, and other legal requirements.

All funds will be invested in accordance with the City’s Pension and OPEB Investment Policy, and applicable California Government Code Sections.

28 Delegation of Authority
The management responsibility for the pension investment program is hereby delegated to the City Manager and/or designee as Plan Administrator who shall monitor and review all investments for consistency with this investment policy. No person may engage in an investment transaction except as provided under the limits of this policy. The City Council may delegate its investment decision making and execution authority to an investment advisor. The advisor shall follow the policy and such other written instructions as are provided.

Duties and Responsibilities (Refer to Appendix for who serves in these roles) Plan Administrator
The Plan Administrator for the City of Pinole is responsible for:
▪ Confirming the accuracy of this Investment Guidelines Document, in writing. ▪ Advising Trustee and Investment Manager of any change in the plan/account’s financial situation, funding status, or cash flows, which could possibly necessitate a change to the account’s overall risk tolerance, time horizon or liquidity requirements; and thus would dictate a change to the overall investment objective and goals for the account. ▪ Monitoring and supervising all service vendors and investment options, including investment managers.
▪ Avoiding prohibited transactions and conflicts of interest.

Trustee
The plan Trustee is responsible for:
▪ Valuing the holdings.
▪ Collecting all income and dividends owed to the Plan. ▪ Settling all transactions (buy-sell orders).

Investment Manager
The Investment Manager is responsible for:
▪ Assisting the Plan Administrator with the development and maintenance of this Investment Policy document.
▪ Meeting with the Plan Administrator to review portfolio structure, holdings, and performance.
▪ Designing, recommending and implementing an appropriate asset allocation consistent with the investment objectives, time horizon, risk profile, guidelines and constraints outlined in this Policy. ▪ Researching and monitoring investment advisers and investment vehicles. ▪ Purchasing, selling, and reinvesting in securities held in the account. ▪ Monitoring the performance of all selected assets.
▪ Voting proxies, if applicable.
▪ Recommending changes to any of the above.

29 ▪ Periodically reviewing the suitability of the investments, and being available at such other times within reason at your request. ▪ Preparing and presenting appropriate reports.
▪ Informing the Plan Administrator if changes occur in personnel that are responsible for portfolio management or research.

Standards of Care
Prudence
The standard of prudence to be used by investment officers shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse development.

The “prudent person” standard states that,
“Investments shall be made with judgment and care under circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.”
Ethics and Conflict of Interest
Officers and employees involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the investment program, or which could impair their ability to make impartial decisions.

IV. Asset Allocation
The goal of the Plan’s investment program is to provide a reasonable level of growth, which will result in sufficient assets to pay a portion of the present and future obligations of the Plan. The following objectives are intended to assist inachieving this goal:
• The Plan should seek to earn a return in excess of its policy benchmark over the life of the Plan.
• The Plan’s assets will be managed on a total return basis which takes into consideration both investment income and capital appreciation. While the Plan Sponsor recognizes the importance of preservation of capital, it also adheres to the principle that varying degrees of investment risk are generally rewarded with compensating returns. To achieve these objectives, the Plan Sponsor allocates its assets (asset allocation) with a

30 strategic perspective of the capital markets.

Investment Time Horizon: Intermediate-term
Anticipated Cash Flows: Assets in the Plan will seek to mitigate the impact of future rate increases from CalPERS and
healthcare costs. Typically, increases in rates
come with a one-year advance warning; however
the Plan Administrator may request disbursement
of assets at any time.

Investment Objective: The primary objective is to generate a reasonable level of growth over time. The assets in this Plan
will eventually be used to fund Pension Plan and
OPEB obligations.

Risk Tolerance: Moderate – The account’s risk tolerance has been rated moderate, which demonstrates that the
account can accept price fluctuations to pursue its
investment objectives.

Strategic Asset Allocation
As of the date of this Pension and OPEB Investment Policy adoption, the asset allocation ranges for the City of Pinole Employee Benefit Pension and OPEB Plan is as follows:

Strategic Asset Allocation Ranges
Cash Fixed Income Equity
0-20% 40%-60% 40%-60%
Target: 2% Target: 48% Target: 50%
Market conditions may cause the account’s asset allocation to vary from the stated range from time to time. The Investment Manager will rebalance the portfolio no less than quarterly and/or when the actual weighting differs substantially from the strategic range, if appropriate and consistent with the Plan’s objectives.

V. Investment Guidelines
Security Guidelines
Equities
With the exception of limitations and constraints described above, the Investment Manager may allocate assets of the equity portion of the account among various market capitalizations (large, mid, small) and investment styles (value, growth).

31 Further, the Investment Manager may allocate assets among domestic and international developed and emerging market equity securities.

Total Equities 40%-60%
Equity Style (Growth Assets) Range
Domestic Equity 15%-39%
International Equity (incl. Developed and Emerging
Market Equity)
1%-25%
Other (REIT and Global Infrastructure) 0%-15%
Fixed Income
In the fixed income portion of the account, the Investment Manager may allocate assets among various sectors and industries, as well as varying maturities and credit quality that are consistent with the overall goals and objectives of the portfolio.
*High Yield securities may be purchased, but they will be held using a diversified exchange traded fund, or mutual fund vehicle.

If individual fixed income securities are purchased for the Plan, the following guidelines will be adhered to in the management of the fixed income segment:

Eligible Investments
• Debt obligations of the U.S. Government, its agencies, and Government Sponsored Enterprises
• Mortgage-Backed Securities (MBS)
• Asset Backed Securities (ABS)
• Collateralized Mortgage Obligations (CMO)
• Commercial Mortgage-Backed Securities (CMBS)
• Corporate debt securities issued by U.S. or foreign entities including, but not limited to, limited partnerships, equipment trust certificates and enhanced equipment trust certificates
• Eligible instruments issued pursuant to SEC Rule 144(a) • Municipal Bonds
• Fixed Income mutual funds
• Eligible instruments issued pursuant to SEC Rule 144a (only if the Client is a documented Qualified Institutional Buyer ; QIB)
Quality
The individual securities portfolio will maintain a minimum weighted average Total Fixed Income 40%-60%

32 effective quality of A- at all times. At the time of purchase, individual securities shall have a minimum effective quality rating of BBB-.

For purposes of determining an effective rating, when three agencies rate a security (S&P, Moodys, Fitch) the middle rating will be used. When only two of the three agencies rate a security the lower of the two ratings will be used. When only one agency rates a security that rating will be used.

Duration
The Investment Manager will maintain the portfolio duration within +/- 25% of the Bloomberg US Aggregate Bond Index duration at all times for the individual securities portfolio of the bond segment.

Diversification
• No more than 5% of the portfolio assets may be invested in any individual issuer, with the exception of securities issued or guaranteed by the U.S.

Government, its agencies, and Government Sponsored Enterprises. These restrictions do not apply to fixed funds or exchange-traded funds (ETFs). • No more than 30% of the portfolio may be invested in securities issued under Rule 144A* without registration rights (no limit on Rule 144a* securities with registration rights).
* Note: Rule 144A is an administrative rule under the SEC allowing, under certain circumstances, for qualified institutional investors to trade certain securities with other institutional investors without registering the trade with the SEC. Specifically, the rule allows private companies, both domestic and international, to sell unregistered securities, also known as Rule 144 securities, to qualified institution buyers (QIBs) through a broker-dealer.

Performance Benchmarks
The performance of the total Plan shall be measured over a three and five-year periods. These periods are considered sufficient to accommodate the market cycles experienced with investments. The performance shall be compared to the return of the total portfolio blended benchmark shown below.

Total Portfolio Blended Benchmark

30.0% Russell 3000 Index

15.0% MSCI-ACWI Ex-US Index

2.5% MSCI World Core Infrastructure Index

2.5% MSCI US REIT Index

44.25% Bloomberg US Aggregate Bond Index

33 3.75% ICE BofA High Yield Index

2.0% 90-Day Treasury Bill Index
Security Selection
The Investment Manager may utilize a full range of investment vehicles when constructing the investment portfolio, including but not limited to individual securities, mutual funds, and exchange-traded funds. In addition, to the extent permissible, the Investment Manager is authorized to invest in shares of mutual funds in which the Investment Manager serves as advisor or sub-adviser.

Investment Limitations
The following investment transactions are prohibited:
• Direct investments in precious metals (precious metals mutual funds and exchange-traded funds are permissible).
• Venture Capital
• Short sales*
• Purchases of Letter Stock, Private Placements, or direct payments • Leveraged Transactions*
• Commodities Transactions Puts, calls, straddles, or other option strategies* • Purchases of real estate, with the exception of REIT mufual funds or ETFs • Derivatives, with exception of ETFs*
*Permissible in diversified mutual funds and exchange-traded funds VI. Reporting Requirements
Quarterly reports shall be submitted by the Investment Manager to the Plan Administrator of the City of Pinole. These reports will be submitted by the City’s Treasurer or designee to the City Council.

34 APPENDIX
Plan Sponsor Account Information as of the date this pension investment policy is adopted:

Plan Sponsor: City of Pinole
Plan Administrator: City Manager and/or designee
Governance: Pinole City Council
Plan Name (“Plan”) City of Pinole Employee Benefits Pension Plan Trustee: US Bank
Type of Account Pension and OPEB Plan
ERISA Status: Not subject to ERISA
Investment Manager: US Bank, as discretionary trustee, has delegated investment management
responsibilities to PFM Asset Management
(“Investment Manager”), an SEC-registered
investment adviser
Investment Authority: Except as otherwise noted, the Trustee, US Bank, has delegated investment authority to
PFM Asset Management, an SEC- registered
investment adviser. Investment Manager has
full investment discretion over the managed
assets in the account. Investment Manager is
authorized to purchase, sell, exchange, invest,
reinvest and manage the designated assets
held in the account, all in accordance with
account’s investment objectives, without prior
approval or subsequent approval of any other
party(ies).

CITY COUNCIL
REPORT 9.F.

DATE: MARCH 3, 2026
TO: MAYOR AND COUNCIL MEMBERS
FROM: Eric Casher, City Attorney, N/A, [email protected] SUBJECT: SECOND READING OF AN ORDINANCE AMENDING SECTION 2.12.010 TO

MODIFY THE START TIME OF REGULARLY SCHEDULED CITY COUNCIL

MEETINGS

RECOMMENDATION
Staff recommends the City Council waive second reading and adopt an ordinance amending Section 2.12.010 of the Pinole Municipal Code to modify the start time of regularly scheduled City Council meetings.

BACKGROUND
Section 2.12.010 of the City of Pinole Municipal Code establishes a set time, date and location for regularly scheduled meetings of the Pinole City Council. It currently provides that the regularly scheduled meetings of the Pinole City Council shall be held at five p.m. (5:00 p.m.).

On January 20, 2026, the City Council directed staff to prepare an ordinance amending the start time of regular meetings from five p.m. (5:00 p.m.) to five-thirty (5:30 p.m.). For members of the City Council who travel to regular meetings immediately after their primary jobs, a 5:00 p.m. meeting start time can prove to be difficult to accommodate, particularly with commuter traffic.

On February 17, 2026, the City Council introduced and conducted a first reading of the proposed Ordinance.

REVIEW AND ANALYSIS
The City of Pinole is authorized to change or amend the start time of regularly scheduled City Council meetings. The proposed Ordinance (Exhibit A) reflects the Council’s proposed revisions and amends Section 2.12.010 of the Pinole Municipal Code to advance the start time of regularly scheduled City Council meetings from five p.m. (5:00 p.m.) to five-thirty p.m. (5:30 p.m).

FISCAL IMPACT
Adopting the proposed Ordinance will have no direct fiscal impact. Costs related to staff attendance and preparation for meetings will not change.

ATTACHMENTS
A. Ordinance

ORDINANCE NO. 2026-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PINOLE
AMENDING SECTION 2.12.010 OF THE PINOLE MUNICIPAL CODE TO MODIFY

THE START TIME OF REGULARLY SCHEDULED CITY COUNCIL MEETINGS WHEREAS, Pinole Municipal Code Section 2.12.010 “Time of Regular Meetings” provides that regular meetings shall be held at 5:00 p.m.; and WHEREAS, the City Council desires to amend PMC Chapter 2.12 “Council Meetings,” Section 2.12.010 “Time of Regular Meetings” to advance the City Council’s fixed meeting time from five p.m. (5:00 p.m.) to five-thirty p.m. (5:30 p.m.).

NOW, THEREFORE, the City Council of the City of Pinole does ordain as follows:

Section 1. Recitals.

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

Section 2. Municipal Code Amendment – Chapter 2.12.

Pinole Municipal Code Chapter 2.12 “Council Meetings,” Section 2.12.010 “Time of Regular Meetings” is hereby amended as follows (with text in strikeout indicating deletion and double underline indicating addition).
“2.12.010 TIME OF REGULAR MEETINGS.

The regular meetings shall be held in the council chambers on the first (1st) and third (3rd) Tuesdays of each month at five five-thirty p.m. (5:00 5:30 p.m.), except when a meeting day falls upon a holiday, in which case the meeting shall be held on the next succeeding business day at the same hour.”
Section 3. Severability.

If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of this Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of Pinole hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.

Section 5. Effective Date.

In accordance with California Government Code Section 36937, this Ordinance shall take effect and be in force on the thirty-first day after adoption.

Section 6. Publication.

Within fifteen (15) days after the passage of this Ordinance the City Clerk shall cause this Ordinance or a summary thereof to be published or to be posted in at least three public places in the City of Pinole in accordance with the requirements of California Government Code Section 36933.

PASSED AND ADOPTED on this _____ day of _______ 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:
______________________________
Heather Bell, City Clerk
APPROVED AS TO FORM:
______________________________
Eric S. Casher, City Attorney

CITY COUNCIL
REPORT 10.A.

DATE: MARCH 3, 2026
TO: MAYOR AND COUNCIL MEMBERS
FROM: Lilly Whalen, Community Development Director, 510-724-9832, [email protected]
SUBJECT: RESIDENTIAL HEALTH AND SAFETY RENTAL INSPECTION PROGRAM:

HOUSING FELLOW UPDATE; AMEND ADMINISTRATIVE REGULATIONS, AUTHORIZE 1.0 FTE HOUSING INSPECTOR, AND ADOPT NEW COSTRECOVERY FEES

RECOMMENDATION
Staff recommends that the City Council take the following actions:

1. Receive an update from the City’s Housing Fellow on progress related to improvements to the Residential Health and Safety Rental Inspection Program (“Program”).

2. Adopt a Resolution amending Administrative Regulations necessary to successfully update the Program promulgated by the Building Official (Attachment A).

3. Adopt a Resolution authorizing the addition of 1.0 FTE Residential Health and Safety Inspector to manage the Program and conduct inspections of substandard housing pursuant to Assembly Bill 548 and Senate Bill 1415 (Attachment B).

4. Adopt a Resolution amending the Master Fee Schedule to ensure the inspection program, as administered by the full-time Residential Health and Safety Inspector, is fully cost-recoverable (Attachment C).

BACKGROUND
This report provides a Program update, proposes amendments to the Administrative Regulations to support implementation (including a temporary Early Enrollment Fee Waiver and an Affordable Housing inspection reduction framework), requests authorization for a new

1.0 FTE Residential Health and Safety Inspector, and recommends adoption of updated fees to achieve full cost recovery. The new software platform and staffing will modernize enrollment, scheduling, and data transparency while maintaining City oversight and tenant safety.

September 16, 2025—Council Discussion
On September 16, 2025, the City Council received an update from the City’s Housing Fellow regarding improvements to the Program and staff’s intent to enter into a contract with OpportunitySpace, Inc. (dba “Tolemi”) to provide a proactive rental inventory and inspection software platform. The City Council directed staff to proceed with:
• Implementation of a new software platform to support an online, public-facing rental inventory and inspection system.

• Development of Administrative Regulations pursuant to Pinole Municipal Code (PMC)

8.30.170 to operationalize the Program.
• Continuation of community and interested party engagement to inform program design. • Preparation of a fee and staffing analysis to achieve full cost recovery and restore a dedicated rental housing inspector.

City Council also expressed interest in incorporating decarbonization metrics and tenant demographic data collection. These improvements will be funded in part by the Partnership for the Bay’s Future (PBF) Policy Fund Grant, which supports the City’s housing implementation goals, including the redesign and relaunch of the Program.

November 18, 2025—Council Discussion and Administrative Regulations On November 18, 2025, the City Council received an update from the City’s Housing Fellow presenting progress on Program improvements, findings from research and engagement, and proposed Administrative Regulations necessary for implementation. City Council approved Resolution No. 2025-86 (Attachment D) authorizing the Community Development Department to promulgate the proposed regulations.

The approved regulations:
• Transition fee collection from a single triennial inspection payment to three equal annual payments while maintaining the three-year inspection cycle, allowing owners to spread costs evenly over time;
• Require annual renewal of owner enrollment and submission of updated basic housing and occupancy information to ensure accurate scheduling, support proactive compliance monitoring, and maintain up-to-date data necessary to protect public health and safety;
• Shift to a standardized digital enrollment process, eliminating paper forms to reduce staff workload and data errors, while providing dedicated in-person support hours to ensure access for all property owners;
• Establish an online, public-facing rental inventory platform that links inspection status and business license renewal to support transparency and ongoing compliance with minimum health and safety standards;
• Direct staff to complete a class and compensation study for a full-time Residential Health and Safety Inspector position to manage the Program and conduct inspections of substandard housing pursuant to Assembly Bill 548 and Senate Bill 1415; and • Direct staff to prepare a fee study to develop an updated inspection fee that supports full cost recovery for the Program.

Staff also communicated that further modifications to the Administrative Regulations would be brought forward, alongside a fee study to support full cost recovery and continued engagement.

Residential Health and Safety Rental Inspection Program Established in 2006, the Program protects public health, safety, and welfare by ensuring proper maintenance of rental housing (PMC 8.30.020). The Program is intended to identify and correct substandard or non-compliant housing conditions and prevent deterioration and blight

that harm property values and quality of life in Pinole.

The Program requires all residential rental property owners—including single-family homes, multi-family properties, apartment buildings, and hotels/motels—to:

1. Maintain a valid business license each year;

2. Allow the City to inspect each unit once every three years for compliance with applicable City ordinances and housing laws; and

3. Correct any violations identified during inspections.

Historically, the Program was managed by a dedicated City Rental Housing Inspector.

Following the Great Recession, staffing reductions and the lack of a reliable system to track properties and inspections led to inconsistent compliance, often through Code Enforcement complaints, business license renewals, or individual inquiries. Records remain scattered across spreadsheets and Word documents, with some recent data tied to the City’s business license system.

Staff explored whether the City’s eTRAKiT system—currently used for Building, Planning, Code Enforcement, Public Works, and Finance—could support the Program. After review, it was determined eTRAKiT cannot meet the Program’s needs for scheduling, payment, compliance documentation, or public transparency.

In 2023, the Community Development Department partnered with Finance to encourage more property owners—particularly those not inspected within the last three years—to come into compliance. Contract staff supported this effort. Without a dedicated rental tracking system, staff created a temporary patchwork using Microsoft Bookings for scheduling, Stripe for payments, and the City’s permit system to issue business licenses, track inspection results, and verify compliance.

While this temporary process allowed the City to resume some inspections with contracted staff, feedback from staff and participants indicates it is difficult to use, inefficient, and not suited to the Program’s long-term needs. It confirms only basic habitability compliance, lacks public transparency, requires manual data entry, and does not provide analytics to understand broader rental market trends. Finally, the Program does not have dedicated staff, which limits effective administration.

REVIEW AND ANALYSIS
Online Platform Development
The City plans to encourage adoption and increase enrollment by implementing a user-friendly software platform that streamlines inspection scheduling, data collection, and fee payment.

Following Council direction in November, staff continued developing and customizing the platform to make participation straightforward, cost-effective, and minimally disruptive for property owners and tenants while improving the quality of data available to policymakers and strengthening shared accountability for safe, healthy housing.

The new online Enrollment platform will:

• Integrate with current business license renewal processing and permitting systems; • Enable online program enrollment and annual renewals; • Facilitate streamlined inspection scheduling, fee payment, and compliance tracking; • Automate noncompliance identification and outreach; and • Provide transparent, spatially enabled data about the City’s rental housing stock to staff and the public.

On March 3, 2026, staff will preview the live platform to City Council.

Community and Interested Party Engagement
City staff have engaged with neighboring municipalities, tenant advocates, affordable housing operators, Pinole renters, and rental operators regarding Program refinements (see summary Table 1). Preliminary findings indicate a general consensus among rental residents and operators that these improvements will benefit their experience with the City and will not significantly burden existing operations.

Table 1: Interested Party Engagement
Category Engaged Number Engaged
Pinole renters 3
Rental operator 6
Affordable housing operators 2
Tenant advocacy groups 7
Northern California inventory program
operators
12 Data Collection
Based on engagement findings, the Enrollment platform will expand information collected to include:
• Owner Information: Name, contact information.
• Property Information: Number of units, year built, square footage; decarbonization metrics (gas or electric heating system, laundry system). • Unit Information: Bedrooms/bathrooms, square footage; decarbonization metrics (gas or electric stovetop, water heater, heating and laundry system—if varied by unit). • Lease Information: Occupancy status; rent; security deposit; utilities and other fees charged to the tenant; parking.

These data elements are consistent with categories commonly gathered by similar rental inventory programs. Non-sensitive data may be incorporated into the public-facing website.

Amendments to Administrative Regulations
PMC 8.30.170 authorizes the Building Official to promulgate Administrative Regulations:

The Building Official is authorized and directed to promulgate administrative regulations pertaining to the implementation and enforcement of this chapter. Such administrative regulations shall not take effect unless and until they are approved by a resolution duly adopted by the City Council following a public hearing thereon.

In November, the City Council adopted Resolution No. 2025-86 (Attachment D), establishing initial Administrative Regulations for the Program. At that time, staff advised that additional refinements would be presented in a future update to address feedback from program development and engagement. Two amendments are proposed:

1. The enrollment fee, which is 14% of the total rental inspection fee, reflects the proportion of software costs relative to staffing costs for administering the Program. To encourage timely participation and streamline implementation, staff recommends waiving this enrollment fee for properties that complete enrollment between April 1 and May 31, 2026. This temporary waiver is intended to:
• Incentivize early compliance
• Reduce administrative backlog during program launch
• Support property owners during the transition
All other Program requirements—including annual renewal and inspection scheduling—will remain in effect.

Over Fiscal Years 2023/24, 2024/25, and so far in 2025/26, the City has collected approximately $366,400 in dedicated funds for the Residential Health and Safety Rental Inspection Program and spent about $65,000 to contract a temporary Rental Housing Inspector. This leaves more than $300,000 available to support the program. Staff recommends using these funds to offset revenue lost from waived enrollment fees, which—if all property owners take advantage of the waiver—would total approximately $39,000. This approach ensures the Program remains fully funded during its initial rollout, supports hiring a new full-time equivalent (FTE) position, and allows waiving enrollment fees without impacting the General Fund, while providing an incentive for property owners to adopt the new system.

2. Affordable Housing Inspection Reduction Framework. Current Exemption (PMC 8.30.040):

Units that are owned, operated, or managed by a government agency other than the City or which are exempt from municipal regulation pursuant to state or federal law or regulations.

This typically applies to public housing developments fully operated by a public agency for lowincome households. While the Housing Authority of Contra Costa County manages public housing elsewhere in the county, no such developments exist within Pinole. As a result, all affordable housing in Pinole is currently subject to the City’s inspection program.

Policy Consideration—Affordable Housing Inspection Waivers During engagement, participants suggested exempting deed-restricted affordable units. Staff reviewed the Program’s purpose (PMC 8.30.020)—to protect public health, safety, and welfare by ensuring proper maintenance, correcting substandard conditions, and preventing deterioration and blight—and consulted with providers subject to inspection by other regulatory agencies (e.g., Housing Authority of Contra Costa County; California Department of Housing and Community Development). These agencies often enforce comparable or more stringent habitability standards.

Accounting for existing inspection oversight can reduce duplication, minimize costs for providers, and support equity and affordability. Verification of active regulation ensures

Program objectives—safe, well-maintained housing—are met without unnecessary City inspections or fees, and without shifting any fiscal burden of program administration to marketrate rental housing.

Proposed Administrative Regulation:

Authorize the Building Official to grant partial exemptions (i.e., reduced City inspection percentages) for affordable rental units regulated to standards comparable to PMC 8.30.090.

Affordable housing generally refers to units developed or operated with local, state, or federal funding to maintain affordability for low-income households and typically includes covenants or deed restrictions specifying both the required affordability level and affordability term.

Programs that fund or regulate these units impose habitability standards and compliance requirements similar to those enforced by the City.

Exemption Criteria:

Partial exemptions will be granted at the discretion of the Building Official based on:
• Comparable Habitability Standards: The unit or property must be regulated by an agency with standards equivalent to or more stringent than PMC 8.30.090. • Physical Inspection Frequency:
o Units physically inspected by the regulating agency at least once every three years: City will inspect 20% of units every three years to confirm compliance. o Units primarily relying on self-certification by the rental operator: City will inspect 20%–80% of units every three years, determined by the Building Official based on complaint history, documentation quality, and standards comparability. • Programs with no external inspection requirements: Units remain subject to the City’s full inspection program.
• Complaint History and Reporting Quality: Consideration of habitability complaint history and the quality/completeness of documentation provided to the City.

Attachment E provides a summary of affordable housing programs, regulating agencies, inspection cadences, and proposed City inspection reduction levels.

Enrollment and Documentation Requirements:

Affordable housing rental operators seeking partial exemption must demonstrate adequate regulation by another agency. Required documentation may include:
• Recent inspection reports from the regulating agency; • Housing Assistance Payment (HAP) contracts;
• Affordability covenants or deed restrictions;
• Authorization forms permitting the City to verify compliance directly with the regulating agency.

Determinations:
• Partial Exemption (20%–80% City inspection): All units remain subject to City inspection. The percentage inspected by the City is determined by the Building Official based on external inspection type, complaint history, documentation quality, and

standards comparability. For example:
o Properties physically inspected at least once every three years by a regulating agency: 20% City inspection every three years.
o Properties relying on self-certification: 20%–80% City inspection based on risk factors.
• No Reduction: Applied when comparable standards are not demonstrated or documentation is insufficient; units remain subject to the City’s full inspection program.

Staffing Analysis
To ensure successful implementation and administration of the Program, staff recommends adding 1.0 FTE Residential Health and Safety Inspector. This position will manage the Program and conduct inspections of substandard housing pursuant to Assembly Bill 548 and Senate Bill 1415.

A class and compensation study was completed for this position, which falls under the City’s existing classification of Senior Project Manager. The analysis includes fully burdened salary and City overhead. Combined with the software platform, the total annual program cost is $282,535, consisting of $242,535 for the 1.0 FTE (including an annual top salary of $123,443) and $40,000 for software.

Program fees, as detailed in a subsequent section, are structured to achieve full cost recovery, ensuring the position and associated program costs are funded by inspection fees rather than the General Fund.

Staff recommends that the City Council adopt a Resolution (Attachment B) authorizing the addition of this position to support effective administration of the Program.

Fee Recovery Analysis
The proposed fees are intended to comply with applicable federal, state, and local laws including providing confirmation that the proposed fees and charges are not a tax as defined in Article 13C of the California Constitution and that the proposed fees are no more than necessary to cover the reasonable costs of the City’s activities and services addressed in the fees. Additionally, the manner in which the costs are allocated to a payor bear a fair and reasonable relationship to the payor’s burdens on, or benefits received from the activities and services provided by the City.

Industry best practices and California statutes are in harmony: User and regulatory fees should be set according to the estimated reasonable cost of service and should bear a fair and reasonable relationship to the payer’s burdens on, or benefits received from the activities and/or services provided by the City.

The cost of service analysis informing the proposed fees is incorporated as Attachment F to this report. Summary information is included in the table below.

Description of
Rental
Inspection
Program Fee
Current Fee* Cost of Service
and Proposed
Fee
Proposed Cost
Recovery
Fee Change
Single Family, $132 per unit, per $173 per unit per 100% 31% increase

Duplex, or Triplex year year
Multi-Family
(Quadplex or
Greater),
Including Hotel /
Motels
$83 per unit, per
year
$108 per unit, per
year
100% 30% increase
Deed Restricted
Affordable
Housing Units
subject to
comparable
inspection
oversight by a
governmentregulating agency
(reduces
redundancies)
$83-132 per unit,
per year
depending on type
of housing (single
family, multifamily)
$45 per unit per
year
100% 46-66% decrease
*The City’s current fee schedule expresses the fee as a tri-annual amount. The amount shown in the table above represents an annualized current fee.

Based on the City’s anticipated rental inventory as of January 2026, the cost of service analysis indicates that a proposed fee adjustment of approximately 30% for market-rate units will allow the City to recover the full cost of program-related services, with anticipated annual cost recovery of approximately $280,000. This adjustment does not represent a shifting of fees to market-rate rentals. Affordable housing units inspected and regulated by another government agency will require fewer City inspections than market-rate units that lack such oversight. Accordingly, fees for affordable units are proposed to decrease by approximately 46–66%, while market-rate fees increase by 30% to reflect the actual cost of services provided.

The attachments to this report include:
• Cost of service analysis (Attachment F)
• Illustration of proposed fee changes (Attachment G)
• Resolution and proposed fee schedule (Attachment C)
Business License Progress During the Transition
Resolution No. 2025-86 authorized a conditional 2025–2026 rental business license renewal schedule, requiring all property owners to enroll in the new inspection system and obtain a valid Certificate of Compliance (CoC) by their applicable 2026 deadline to receive 2027 business licenses.
• Properties with a current CoC (expiring 2027–2029) may renew without reinspection but must enroll and begin annual fee payments by December 31, 2026. • Properties with a CoC expiring in 2026 must enroll, pay annual fees, and obtain a new CoC by their existing expiration date.
• Properties with CoCs expiring in 2025 must enroll and pay annual fees by June 2026 and schedule an inspection within 90 days of enrollment.

• Properties with expired or no CoC on file must enroll and pay annual fees by April 2026 and schedule an inspection within 90 days of enrollment.

Figure 1: Business license renewal cadence for 2026
Program Timeline
Following Public Hearing and Council Approval, the next steps for the Program will include immediate platform launch and early enrollment, continued community and stakeholder engagement, continued program development design refinements based on Council and stakeholder input, assistance office hours, and preparation of initial report back.

January – March
• Continued Public Outreach
• Assistance office hours
• Early enrollment
• Conditional Business License issuance
July-August
• First quarterly data report
• Focus group follow up
April-June August-December

• Early enrollment deadline.
• Assistance office hours
• Data synthesis/analysis
• Contract re-evaluation
• Informed recommendations.

Adopting Resolutions A, B and C will allow the City to launch the new platform with ample time for all four Certificate of Compliance Categories to enroll in the program before the deadline communicated by the Finance Department.

FISCAL IMPACT
Adopting the amendments to the Administrative Regulations in Attachment A will not result in an immediate impact to the General Fund. Initial setup costs—including software configuration and staff time—are already covered through existing budgets and the Partnership for the Bay’s Future (PBF) Policy Fund Grant, which also funded the one-time $8,000 platform setup cost.

The proposed Affordable Housing Inspection Reduction has been incorporated into the fee study, and the Early Enrollment Fee Waiver will be absorbed by the existing balance in the Rental Inspection Program Fund.

The total annual cost to operate the Program is $282,535, which includes $242,535 for the 1.0 FTE Residential Health and Safety Inspector (Attachment B)—with an annual top salary of $123,443—and $40,000 for the software platform. The City has commissioned a fee study (Attachment C) to ensure full cost recovery through the amended Rental Inspection Program fees. Fees have been structured so that both the software contract and the new 1.0 FTE position will be fully funded by program revenues, with no impact on the General Fund. The early enrollment fee waiver will be backfilled using funds in the Rental Inspection Program Fund.

ATTACHMENTS
A. Resolution
B. Resolution
C. Resolution
D. Resolution 2025-86
E. AH Exemption GE Inspection Protocols
F. Cost of Service Model - Rental Housing Insp
G. Before and After - Rental Housing Insp
H. Residential Health and Safety Rental Inspection Program Update

RESOLUTION NO. 2026-XX

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

COSTA, STATE OF CALIFORNIA, APPROVING AMENDMENTS TO THE RESIDENTIAL

HEALTH AND SAFETY ADMINISTRATIVE REGULATIONS
WHEREAS, the Residential Health and Safety Rental Inspection Program (the “Program”) was established in 2006 to protect public health, safety, and welfare by identifying and correcting substandard and legally non-compliant rental housing conditions, thereby preventing deterioration and blight that could adversely affect neighborhood stability, property values, and quality of life in the City; and WHEREAS, the Program requires residential rental property owners, including owners of single-family homes, multi-family units, apartment buildings, and hotel/motel units, to maintain a valid business license, allow the City to inspect such units at least once every three years, and correct any identified violations to ensure habitability and compliance with applicable laws; and
WHEREAS, Pinole Municipal Code (PMC) Section 8.30.170 authorizes the Building Official to promulgate administrative regulations pertaining to the implementation and enforcement of the Program, provided such regulations are approved by the City Council following a public hearing; and
WHEREAS, the Program was historically managed by a dedicated full-time Rental Housing Inspector, but staffing reductions during the Great Recession resulted in fragmented administration, limited data collection, and inconsistent compliance monitoring; and
WHEREAS, implementation of a standardized digital enrollment, scheduling, data management, and compliance platform is necessary to restore program effectiveness, ensure transparency, streamline participation for property owners, and maintain accurate rental housing data; and
WHEREAS, Administrative Regulations pertaining to the implementation and enforcement of the Program were adopted by the City Council on November 18, 2025, through Resolution No. 2025-86; and
WHEREAS, at this time, the City Council desires to amend the Administrative Regulations to:

WHEREAS, the amendments to the Administrative Regulations contained in Exhibit A, incorporated herein, establish a temporary waiver of the Residential Health and Safety Rental Inspection Program enrollment fee for properties that complete enrollment between April 1 and May 31, 2026, with dedicated Program funds used to offset

associated revenue in order to support early compliance and ensure a smooth program launch; and
WHEREAS, the amendments to the Administrative Regulations contained in Exhibit A clarify the framework for inspection requirements applicable to affordable housing units, confirming that all such units within the City remain subject to the Residential Health and Safety Rental Inspection Program unless otherwise exempt under state or federal law.

WHEREAS, the City Attorney has determined that these provisions fall within the scope of authority granted under PMC Section 8.30.170.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pinole that the Administrative Regulations for the Residential Health and Safety Rental Inspection Program, attached hereto as Exhibit A, are hereby approved and adopted.

PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 3rd day of March, 2026 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 3rd day of March, 2026.

______________________________________
Heather Spears, CMC
City Clerk

Exhibit A
Administrative Regulations Implementing the
Residential Health and Safety Rental Inspection Ordinance (PMC Section 8.30) Adopted by City Council Resolution No. 2025-86
Amended by City Council Resolution No. 2026-XX
Pursuant to PMC Section 8.30.170, the Building Official hereby issues the following Administrative Regulations to implement and enforce PMC Section 8.30 (the “Ordinance”). Capitalized terms have the meanings set forth in PMC Section 8.30.030.

These regulations were adopted by the City Council following a duly noticed public hearing on November 18, 2025, by Resolution No. 2025-86, effective January 1, 2026, and amended by the City Council following a duly noticed public hearing on March 3, 2026, by Resolution No. 2026-XX, effective March 4, 2026,

1. Inventory Enrollment. Each Owner carrying on the business of operating Rental Units (PMC Section 8.30.045) shall, for each Rental Property (PMC Section

8.30.055), complete and submit true and correct inventory and inspection enrollment information for all eligible Rental Units (PMC Section 8.30.040) through the City’s approved platform on or before December 31 of each calendar year. Owners must update enrollment information within 30 days of any material change. An Owner claiming “Unit Unavailable for Rent” status shall file the signed statement described in PMC Section 8.30.030(K) through the platform.

2. Business License. One business license is required per Rental Property (PMC Section 8.30.055). Owners must comply with Title 5 business license requirements (PMC Section 8.30.050). Consistent with PMC Section 8.30.060, issuance or renewal of a business license requires a valid Certificate of Compliance (CoC) for each Rental Unit at the property, except as provided in the transition schedule in Regulation #9.

3. Inspection Compliance. Owners shall cooperate with the City to ensure periodic inspections once every three (3) years (PMC Section 8.30.090) and any initial inspection following a complete application (PMC Section 8.30.070). Scheduling is through the City’s platform. The City will provide at least 30 days’ written notice of inspection (PMC Section 8.30.110). Cancellations made with less than 48 hours’ notice are subject to the fee in PMC Section 8.30.115. If consent to inspect is withheld, entry will be sought only as permitted by PMC Section

8.30.120.

4. Deficiencies. Units with deficiencies (PMC Section 8.30.150) are subject to reinspection(s) per PMC Section 8.30.100. All deficiencies must be cured within sixty (60) days unless a different period is authorized by the Building Official under PMC Section 8.30.140. Re-inspection fees apply per the Master Fee Schedule. Continued non-compliance is subject to the remedies in PMC Section

8.30.160.

5. Copy of Enrollment to Tenant. Within five (5) business days of submitting unitspecific enrollment information through the City’s approved platform, the Owner shall provide each affected Occupant with a copy (digital or hard copy) of the

enrollment information related to that unit. If a balcony inspection is required pursuant to PMC Section 8.30.070, and the Owner receives a balcony inspection report prepared by a licensed general contractor, structural pest control licensee, licensed architect, or licensed engineer, the Owner shall provide each affected Occupant with a copy (digital or hard copy) of that report within five (5) business days of the Owner’s receipt of the report. Inspection reports submitted to the City for purposes of obtaining a Certificate of Compliance are included in the Certificate of Compliance record pursuant to PMC Section 8.30.130 and are City records. Such records may be made available upon request in accordance with the California Public Records Act and applicable privacy laws.

6. Public Transparency. To support the purpose of PMC Section 8.30.020 and the periodic reporting obligations under PMC Section 8.30.210, the City may publish non-confidential, program-related information, including aggregated or deidentified enrollment and inspection data, on the City’s website or provide such data upon request. Inspection reports, Certificates of Compliance, and related documents maintained as part of the City’s official program records may be made available in accordance with the California Public Records Act and applicable privacy laws.

7. Annual Fee Collection. Program fees, including business license, enrollment, inspection, re-inspection, and cancellation fees, shall be paid in accordance with the City’s Master Fee Schedule and PMC Sections 8.30.050 and 8.30.075.

Payment of fees is required at the time of annual enrollment and prior to any inspection. Failure to pay required program fees constitutes a violation of PMC Section 8.30.045 and may be subject to penalties as authorized in PMC Sections

8.30.190 and Chapter 8.25. Inspection fees shall be billed and collected in three equal annual amounts aligned with the three-year inspection cycle, unless modified by a duly adopted City Master Fee Schedule.

8. Program Administration and Designation of Residential Health and Safety Inspector.

Pursuant to PMC Sections 8.30.090 and 8.30.170, the Building Official may designate Community Development Department staff, including a Residential Health and Safety Inspector, to administer this Program, conduct inspections, issue notices of deficiencies, coordinate re-inspections, verify compliance with Certificates of Compliance requirements, and support enforcement of applicable laws. The Residential Health and Safety Inspector may also conduct inspections of substandard housing conditions consistent with state law, including Assembly Bill 548 and Senate Bill 1415, and applicable sections of the Pinole Municipal Code.

9. Temporary Transition Schedule for 2026–2027 Implementation (Category-Based Compliance Requirements). To support system launch and phased implementation, Owners shall comply with enrollment, fee payment, and inspection milestones based on the status of their existing Certificates of Compliance (“CoC”), as shown below:
a. Category 1 — CoC Expires in 2027–2029 (Current and Valid CoC) • May renew 2026 business license without additional inspection in 2026.

• Must enroll in the new system and pay all required annual program fees no later than December 31, 2026.
• The next periodic inspection shall occur on the standard three-year cycle pursuant to PMC Section 8.30.090.
b. Category 2 — CoC Expires in 2026
• May renew 2026 business license.
• Must enroll in the new system, pay required annual fees, and obtain a new CoC by the expiration date of the existing CoC (month-specific timing to be reflected in system reminders).
• Failure to obtain the CoC by expiration will result in the property being treated as non-compliant under PMC Sections 8.30.045 and 8.30.160. c. Category 3 — CoC Expires in 2025
• May renew 2026 business license.
• Must enroll and pay required annual fees by June 30, 2026. • Must schedule an inspection within 90 days of enrollment and obtain a CoC no later than December 31, 2026.
d. Category 4 — CoC Expired in 2024 or Earlier, or No CoC on File • May renew 2026 business license.
• Must enroll and pay required annual fees by April 30, 2026. • Must schedule an inspection within 90 days of enrollment and obtain a CoC no later than September 30, 2026.

10.Business License Renewal and Effective Enforcement. Issuance of business licenses for calendar year 2027 is contingent upon:
• Enrollment in the system;
• Payment of all required program fees; and
• Obtaining a valid Certificate of Compliance under PMC Sections 8.30.060 and

8.30.090.

11.Affordable Housing Inspection Exemption. The City may reduce duplicative inspections and minimize costs for providers of deed‑restricted affordable housing while ensuring safe, well-maintained housing. This regulation authorizes the Building Official to grant partial exemptions from PMC 8.30.090 triennial inspections where units are subject to comparable oversight by a government Regulating Agency, and establishes the criteria, documentation requirements, and inspection percentages for such exemptions.

Definitions in this Exemption:
• Affordable Housing / Affordable Units: Units developed or operated with local, state, or federal funding to maintain affordability for low‑income households, typically subject to covenants or deed restrictions specifying affordability levels and terms.

• Regulating Agency: A government entity other than the City (e.g., Housing Authority of Contra Costa County; California Department of Housing and Community Development) that imposes habitability standards and compliance requirements through inspections or documentation. • Physical Inspection: On‑site inspection performed by the Regulating Agency or its designee.
• Self‑Certification: Compliance verification primarily based on owner/operator certifications, documentation, or reports without routine physical inspections.

A. Eligibility Criteria for Partial Exemption. Partial exemptions may be granted at the Building Official’s discretion when all of the following are demonstrated:
• Comparable Habitability Standards. The unit or property is regulated to standards equivalent to or more stringent than PMC 8.30.090 and the City’s Housing Code (PMC Chapter 15.16), including substandard housing provisions.
• External Oversight Type and Cadence.
a. Physical inspections at least once every three years: Eligible for 20% City inspection every three years.
b. Primarily self‑certification by the operator: Eligible for 20%–80% City inspection every three years, set by the Building Official based on risk factors (see Section C).
c. No external inspection requirements: Not eligible for reduction; units remain subject to the City’s full triennial inspection program.

If a Regulating Agency inspects only a portion of units on a property, the partial exemption applies only to those inspected units. Non‑covered units remain subject to the City’s full program.

B. Documentation Requirements. Affordable housing rental operators seeking partial exemption must demonstrate adequate external regulation by providing, as applicable:
• Recent inspection reports from the Regulating Agency; • Housing Assistance Payment (HAP) contracts or comparable regulatory agreements;
• Affordability covenants or deed restrictions establishing affordability levels and terms;
• Authorization forms permitting the City to verify compliance directly with the Regulating Agency;
• Compliance histories and corrective action documentation, if applicable.

Failure to provide sufficient documentation may result in no reduction (full City inspection).

C. Risk Factors Informing the City Inspection Percentage (20%–80%). For units relying on self‑certification, the Building Official will determine the City’s inspection percentage (within 20%–80%) considering:
• Habitability complaint history (frequency, severity, recurrence); • Quality, completeness, and timeliness of documentation provided; • Demonstrated compliance with standards comparable to PMC 8.30.090 and PMC Chapter 15.16;
• Corrective action responsiveness and outcomes.

The Building Official may adjust the inspection percentage over time based on updated risk indicators.

D. Determinations
• Partial Exemption (20%–80% City Inspection). All units remain subject to City inspection; the percentage inspected is set by the Building Official per Sections A–C.
o Example: Properties physically inspected at least once every three years by a Regulating Agency → 20% City inspection every three years.
o Example: Properties primarily relying on self‑certification → 20%– 80% City inspection based on risk factors.
• No Reduction. Applied when comparable standards are not demonstrated, documentation is insufficient, or oversight is not present; units remain subject to the City’s full triennial inspection program.

Modification or Revocation. The City may modify or revoke a partial exemption if external inspection cadences change, documentation lapses, complaints increase, or compliance with City standards is not maintained.

E. Enrollment and Fees
• Program Enrollment. All units and properties partially eligible must enroll in the City’s inventory program and pay corresponding fees. • Exemption Application Processing Fee. Exempted properties may incur an exemption application processing fee as set by the Master Fee Schedule. • Inspection Fees. The City will collect inspection fees corresponding to the percentage of units inspected by the City within each three‑year cycle.

F. Administrative Notes. This regulation is intended to reduce duplication, minimize provider costs, and support equity and affordability, while ensuring Program objectives—safe, well‑maintained housing—are met. The City may maintain and update a reference table summarizing affordable housing programs, regulating agencies, inspection cadences, and typical City inspection reduction levels for transparency and consistency.

12.Early Enrollment Fee Waiver: The Enrollment fee is calculated as 14% of the total inspection fee, reflecting the proportion of software costs relative to staffing costs for administrating the Program. To encourage early compliance, reduce administrative backlog during program launch, and support Property owners during the transition, The City will waive the enrollment fee for properties that complete enrollment between April 1 and May 31, 2026.

Properties that do not meet applicable deadlines will be subject to the penalties and correction requirements of PMC Sections 8.30.045, 8.30.150, 8.30.155, 8.30.160, and Chapter 8.25.

RESOLUTION NO. 2026-XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PINOLE, COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA, APPROVING AN ADDITIONAL 1.0

FULL-TIME EQUIVALENT (FTE) TO HIRE A SENIOR PROJECT MANAGER TO

SERVE AS RESIDENTIAL HEALTH AND SAFETY INSPECTOR
WHEREAS, pursuant to the City of Pinole Personnel Rule No. 3.4, Allocation of Positions, approval of full-time equivalent (FTE) positions is delegated to the City Council; and
WHEREAS, the City has established a Residential Health and Safety Rental Inspection Program (“Program”) to ensure safe and habitable rental housing and to comply with the requirements of Assembly Bill 548 and Senate Bill 1415, including inspection and enforcement related to substandard housing conditions; and WHEREAS, successful implementation and ongoing administration of the Program requires dedicated staffing to manage program operations, coordinate inspections, conduct inspections of substandard housing, and ensure compliance with applicable state and local laws; and
WHEREAS, staff has recommended the addition of one (1.0) permanent full-time Senior Project Manager position to serve as the Residential Health and Safety Inspector; and
WHEREAS, a fiscal analysis was completed for this position under the City’s existing Senior Project Manager classification, including fully burdened salary and City overhead costs; and
WHEREAS, the total estimated annual cost of the Program is $282,535, consisting of $242,535 for the 1.0 FTE position (including an annual top salary of $123,443) and $40,000 for the required software platform; and
WHEREAS, with adoption of companion Resolution No. 2026-XX, Program fees have been structured to achieve full cost recovery, ensuring that staffing and administrative costs associated with the Program are funded through inspection fees rather than the City’s General Fund; and
WHEREAS, there is no direct fiscal impact to the Fiscal Year 2025-26 budget due to the availability of reserves in the Housing Inspection Fund and the adoption of fees set to fully recover the annual cost of the position and associated program expenses; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Pinole hereby approves the addition of one (1.0) Full-Time Equivalent (FTE) Senior Project Manager position to serve as the Residential Health and Safety Inspector for purposes of administering and enforcing the Residential Health and Safety Rental Inspection Program; and
BE IT FURTHER RESOLVED, that the position shall be funded through Program fees and Housing Inspection Fund revenues.

PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 3rd day of March, 2026 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 3rd day of March, 2026.

______________________________________
Heather Spears, CMC
City Clerk

RESOLUTION NO. 2026-XX

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

CONTRA COSTA, STATE OF CALIFORNIA, UPDATING VARIOUS USER AND

REGULATORY FEES
WHEREAS, user and regulatory fees are established by the City Council; and WHEREAS, the City has recently completed a study to identify the cost of providing various user and regulatory fee-related services; and WHEREAS, the study examined fee-related services provided by the City, the costs reasonably borne by the City in providing those services, the beneficiaries of those services, and the revenues produced by those paying fees and charges for special services; and
WHEREAS, the City Council finds that providing these services is of special benefit to applicants both separate and apart from the general benefit to the public; and therefore, in the interests of fairness to the general public, the City desires to better recover the costs of providing these services from applicants who have sought or require the City's services by revising its schedule of fees; and
WHEREAS, the updated fees for service will be incorporated into the City’s comprehensive user and regulatory fee schedule so that they can be periodically examined and adjusted, as necessary.

WHEREAS, the City Council desires that annually the City Manager may update the fees based on the estimated average annual increase in total employee compensation costs (employee compensation costs) or the annual percentage change in the all-urban Consumer Price Index (CPI) for San Francisco-Oakland-Hayward, CA. If employee compensation costs or the CPI do not change or go down in a given year, no change shall be made to the fee schedule that year; and
WHEREAS, in adopting this Resolution, the City Council is taking action only on those fees for the services, programs or products set forth in Exhibit “A” which have been modified from prior resolutions of the City Council. The remaining fees that have not been modified from prior resolutions shall remain in full force and effect.

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

SECTION 1: That the foregoing recitals and findings are true and correct and are incorporated herein by reference.

SECTION 2: That the City Council hereby adopts the fees, charges, and rates as set forth in attached Exhibit "A" and incorporated by this reference.

SECTION 3: That any new or adjusted fees adopted by this Resolution shall go into effect upon adoption.

PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 3rd day of March 2026 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 3rd day of March, 2026.

______________________________________
Heather Spears, CMC
City Clerk

Affordable Programs Explainer Examples
Property/Unit
Based
Regulating
Agency
Annual
Inspections
(self, GE, non)
Triennial GE
inspections
(%)
Proposed City Inspection
exemption
Tax Credit/affordability
covenant/HOME program
State funded through tax credits on
the condition that rent amounts are
set at 30% of income, and given to
qualifying AMIs East Bluff (Eden Housing) Property CalHCD Self 20% 20-80% of units at Building
Official's discretion (20% set for
first year)
Project/program based voucher
Subsidy payments given towards rent
for some/all units in a in a property Valor Village [15 PBV units] Unit/Hybrid HUD/HACCC GE 100% 80% of all subsidy receiving units,
at building official's discretion +
20-80% of non-subsidy receiving
units regulated by another entity
or program
Tenant based voucher
Section 8 voucher recipients.

Voucher is awarded to tenant, HAP
contract is signed between tenant,
landlord, and HA. HA pays portion of
rent
individual occupants, HUDVASH
recipients (Veterans program) Unit HUD/HACCC GE 100%
80% of units, at building official's
discretion
Permanent supportive housing
State funded through tax credits and
other programs, supportive programs
coupled with heavily subsidized
housing designed to help transition
folks out of homelessness. Valor Village Unit CalHCD+CalAIM 80 100% 80% of units, at building official's
discretion
Public Housing
Owned and operated by Government
Entity (GE) and not part of program None in Pinole Property HUD/HACCC NA NA not part of program Community Land Trusts
non-profit entities, receive tax
exemption to maintain affordability,
also linked to community ownership
models NCLT Property None self 0%
0-80% of units at building official's
discretion. [0% exemption set for
first year]
NOAHs
Naturally occuring affordable
housing: Rental housing costing
occupant 30% of 80-120AMI that is
not subsidized or under an
affordability covenant. Case based Unit None none 0% None

User and Regulatory Fees
Cost of Service Analysis
Rental Housing Inspection Fees
1

City of Pinole
User and Regulatory Fee Study
Allocation of Annual Labor Effort - Rental Housing Inspection Position Hourly FTE Yearly
Total Hours Per
FTE
Less: Holiday &
Leave
Productive
Hours Per FTE
Total
Productive
Hours Note
Senior Project Manager $59 1.00 $123,443 2,080 296 1,784 1,784 [a],[b] Total 1.00 $123,443 1,784
Allocation of Hours Share Total Note
Indirect 20% 357 [b]
Direct 80% 1,427 [b]
Total 100% 1,784
[a] Source: Recommended FTE count for Housing Inspection Program. [b] Direct/Indirect hours are intended to serve as reasonable estimates. Amounts will vary from year-to-year depending on activity, projects, and City Council priorities. 2

City of Pinole
User and Regulatory Fee Study
Calculation of Fully-Burdened Hourly Rate - Rental Housing Inspection Program Recurring Expenditures[a]
Fund Fund Desc Dept Dept Desc Division Division Desc Account Account Desc Total Adjustment Allocable
Expense Notes
100 General Fd 46 Comm Dev TBD Housing Inspection Program 40101 Salary & Wages/Full Time $123,443 $0 $123,443 [a] 100 General Fd 46 Comm Dev TBD Housing Inspection Program 41001 Emp Benefits/Medical-Active $28,509 $0 $28,509 [a] 100 General Fd 46 Comm Dev TBD Housing Inspection Program 41002 Emp Benefits/Dental $1,531 $0 $1,531 [a] 100 General Fd 46 Comm Dev TBD Housing Inspection Program 41003 Emp Benefits/Vision Care $223 $0 $223 [a] 100 General Fd 46 Comm Dev TBD Housing Inspection Program 41004 Emp Benefits/PERS Retirement $9,715 $0 $9,715 [a] 100 General Fd 46 Comm Dev TBD Housing Inspection Program 41005 Emp Benefits/Employee Assistance Prg $43 $0 $43 [a] 100 General Fd 46 Comm Dev TBD Housing Inspection Program 41007 Emp Benefits/Life-ADD $168 $0 $168 [a] 100 General Fd 46 Comm Dev TBD Housing Inspection Program 41008 Emp Benefits/Long Term Disability $306 $0 $306 [a] 100 General Fd 46 Comm Dev TBD Housing Inspection Program 41009 Emp Benefits/Workers Comp $7,407 $0 $7,407 [a] 100 General Fd 46 Comm Dev TBD Housing Inspection Program 41010 Emp Benefits/FICA - Medicare $1,790 $0 $1,790 [a] 100 General Fd 46 Comm Dev TBD Housing Inspection Program 41012 Emp Benefits/Unemployment Insurance $123 $0 $123 [a] 100 General Fd 46 Comm Dev TBD Housing Inspection Program Professional Services $40,000 ($40,000) $0 [b] 100 General Fd 46 Comm Dev TBD Housing Inspection Program Travel / Training / Office Exp $2,469 $0 $2,469 [c] 100 General Fd 46 Comm Dev TBD Housing Inspection Program 46124 IS Charges $24,689 $0 $24,689 [c] 100 General Fd 46 Comm Dev TBD Housing Inspection Program 46201 Insurance/General Liability $6,172 $0 $6,172 [c] Subtotal $246,588 ($40,000) $206,588
Allocation of Citywide Overhead
Description
C'wide OH
Rate Mod Op Exp
Allocation of
C'wide OH Notes
Citywide Overhead Allocation 17.4% $206,588 $35,946 [d] Allocation of Total Costs - Recreation Administration
Description Total Share Notes
Direct Expenses $206,588 85% [e]
Allocation of Citywide Overhead $35,946 15% [e]
Total $242,535 100%
Calculation of Fully-Burdened Hourly Rate
Description Total Note
Costs $242,535
Direct Hours 1,427 [e]
Fully-Burdened Hourly Rate $170
Allocation of Costs for Cost Recovery Purposes
Description Total Note
Rental Inspection Costs to be Recovered from Non-Exempt Rental Units $242,535 Software/Professional Services Costs to be Recovered from All Units $40,000 Total $282,535
3

City of Pinole
User and Regulatory Fee Study
Calculation of Fully-Burdened Hourly Rate - Rental Housing Inspection Program Unit Count
Description Total Note
Single Family Unit, Duplex Unit, or Triplex Unit 766 [f] Multi-Family Unit, Quadplex or Greater, Including Hotel/Motel Unit 1,114 [f] Affordable Unit 390 [f]
Total 2,270
Discrete Services and Supplies Cost Per Unit
Description Total Note
Software/Professional Services Costs to be Recovered from All Units $40,000 Number of Units 2,270
Total $18
[a] Amounts intended to serve as reasonable estimates for position equivalent to Senior Project Manager. Based on adopted top step salary schedule. [b] Estimated annual software costs for monitoring rental housing program. [c] Budget for program is currently being developed. Amounts shown are intended to represent reasonable estimates based on training, ISF, and insurance costs of other City departments in relation to adopted salaries and wages. [d] Source: Citywide overhead cost allocation plan.
[e] See separate worksheet.
[f] Forecast inventory as of January 1, 2026.
4

City of Pinole
User and Regulatory Fee Study
Rental & Balcony Inspection Program Fees
Cost of Service Calculation - At Fully-Burdened Hourly Rate Fee Description
Service
Time Hourly Rate Labor Costs
Discrete
Svcs &
Supplies
Cost of
Service Current Fee
Current Cost
Recovery Proposed Fee
Proposed Cost
Recovery Fee Change Unit Note
1 Rental Inspection Program Fee
a) Base Fee (Covers Initial Inspection and First
Reinspection)
i) Single Family Unit, Duplex Unit, or Triplex
Unit

0.92 x $170 = $156 + $18 = $173 $397 per unit triannual; $132 annual
76% $173 100% 31% annual fee; per
unit
ii) Multi-Family Unit, Quadplex or Greater,
Including Hotel/Motel Unit

0.53 x $170 = $91 + $18 = $108 $249 per unit triannual; $83 annual
77% $108 100% 30% annual fee; per
unit
iii) Affordable Housing Unit 0.17 x $170 = $28 + $18 = $46 $45 98% annual fee; per unit
b) Reinspection Fee (only applicable if required)
i) 2nd Reinspection varies x $170 = varies + $0 = varies 20% of initial fee 20% of initial fee ii) 3rd Reinspection varies x $170 = varies + $0 = varies 30% of initial fee 30% of initial fee iii) 4th Reinspection varies x $170 = varies + $0 = varies 40% of initial fee 40% of initial fee 2 Rental Inspection Program Exemption 1.75 x $170 = $298 + $0 = $298 $299 101% $298 100% -1% per property 5

City of Pinole

BEFORE AND AFTER ILLUSTRATION - RENTAL HOUSING INSPECTION PROGRAM FEES Current Fee Cost of Service Proposed Fee Change
Current Cost
Recovery
Proposed Cost
Recovery Charge Basis Note
Y'rly
Inflator
1 Rental Inspection Program Fee
a) Base Fee (Covers Initial Inspection and First
Reinspection)
i) Single Family Unit, Duplex Unit, or Triplex Unit $397 per unit triannual;
$132 annual
$173 $173 31% 76% 100% annual fee; per unit Y
ii) Multi-Family Unit, Quadplex or Greater, Including
Hotel/Motel Unit
$249 per unit
triannual;
$83 annual
$108 $108 30% 77% 100% annual fee; per unit Y
iii) Affordable Housing Unit $46 $45 98% annual fee; per unit Y b) Reinspection Fee (only applicable if required)
i) 2nd Reinspection 20% of initial fee varies 20% of initial fee N ii) 3rd Reinspection 30% of initial fee varies 30% of initial fee N iii) 4th Reinspection 40% of initial fee varies 40% of initial fee N 2 Rental Inspection Program Exemption $299 $298 $298 -1% 101% 100% per property Y Activity Description
2

Residential Health and Safety
Rental Inspection Program Update
baysfuture.org
Implementation of improved
inventory and inspection platform

Progress Update
Stakeholder Engagement Findings
2026 Inventory Data Points
Administrative Regulations and Resolutions
Program Timeline
Agenda
Overview/Refresher
Live Demonstration
Previous Presentation Slides

Increase enrollment: Increase enrollment through a user-friendly interface that will also streamline existing processes for property owners and city staff alike.

Program Goals:make participation as convenient, cost-effective, and noninvasive as possible while delivering impactful data to policymakers, decision makers, and the public
Inform Policy: Gather data that will better inform city policies, including determining how to most effectively use existing Housing Successor Fund
Protect Community: Provide public transparency and
avenues of input/feedback on housing stock.

Track and mitigate evictions, habitability shortcomings, and rental misconduct.

Data Analytics
• Initial analysis has identified
nearly 500 ‘Suspected Rental
Properties’ operating without
Rental Business Licenses
• Multiple metrics now
operable
Stakeholder Engagement
• Renters, Rental Operators,
advocates and affordable
housing operators and
developers engaged
• Findings incorporated into
program
Progress so far Enrollment and Inspections
• Inventory enrollment and
Inspection booking platform
ready to go live.
• Fees, affordable housing
exemption and Early
enrollment fee waiver

‘Suspected Rental Properties’ without Business Licenses

Inventory Data Points
Administrative Regulations
Owner Information Name, Address, Contact Information
Property Information Number of Units, S:FT, Parking, Manager Information Sustainability Metrics: Heating System, Laundry System
Unit Information
Bedrooms, Bathrooms, Sqft, Amenities, Appliances (sustainability metrics), Occupancy Status
Sustainability Metrics: Appliances (gas v electric)
Lease Information Rent, Lease Term, Utilities, Additional Fees, Length of Tenancy/Reason for Change of Tenancy

Stakeholder Engagement
Inspection Reform
● Rental operators are excited for improved efficiency, self-certification options, and better scheduling, and generally unbothered by increased transparency ● Tenants are excited for increased transparency and expanded reach. ● Advocates and municipalities highlight administrative efficiency, but caution limitation of tenant advocacy model described
Inventory Program
● Rental operators found gathering of additional data points will have minimal impact on their ability to operate
● Tenants and advocates felt the additional data points would be extremely beneficial to renters
● Municipalities found the simplicity of data points key in smooth implementation City reached out to renters, rental operators, tenant advocacy groups, nonprofit developers, and neighboring municipalities to conduct targeted, 30min 1:1 interviews about this program, the data gathered, and the potential benefits. We found generally:

Fee Schedule Update/early
enrollment exemption
• Implement fee schedule
recommended by
commissioned fee study,
including early enrollment
exemption
• Reasoning: Updated fees will
ensure full cost recovery for
updated program
operations. Early enrollment
exemption will smooth
program implementation.

FTE - Residential Health and
Safety Inspector
• Bring back program manager
originally baked into
program when launched in
2006
• Reasoning: adequately staff
program for inspections,
proactive outreach, and
program management
Program Modifications:

Affordable Housing
Inspection Exemption
• Partially exempt affordable
housing developments to
reduce inefficiencies,
support equitable housing,
and minimize staff burden
• Reasoning: Affordable units
are regulated by other
agencies and programs to
comparable standards as
our program

‘25-’26 Timeline
Beta Site Development
Program Focus Groups
Modification
Tomorrow - Oct
Continued Public Outreach
Early Enrollment
Assistance Office Hours
Jan-March
Cat 3 Enrollment Deadline: June
1st Quarterly data report
Focus Group Follow up
July-Aug
Public Outreach
Continued Site Development
City Council program approval
Oct - Dec
Cat 4 Enrollment Deadline: April
Assistance Office Hours
Data Synthesis/Analysis
April-Jun
Cat 1 Enrollment Deadline:

December 31
Cat 1-4 Business License
Deadline: December 31
Aug-December
2025 2026
Cat 2 Enrollment Deadline: When Current CoC expires

‘26-’27 Timeline
➔ Platform Launch
➔ Early Enrollment
➔ Staff Office Hours (Wed)
Tomorrow - Jul
➔ Enrollment required for ‘27
Business Licenses
➔ PBF Fellow transition out
Jan-March
➔ Decarbonization analysis
➔ Focus Group Follow up
➔ ‘28 Program Update
July-Aug
➔ Public data site launch
➔ Noncompliant Engagement
Campaign
➔ FTE Inspector brought on
Aug- Dec
➔ Noncompliance
enforcement
➔ Data Synthesis/Analysis
April-Jun
➔ ‘28 enrollment
campaign
➔ Council Report Back
Aug-December
2026 2027
Cat 2 Enrollment Deadline: When Current CoC expires

Thanks for Listening!

Program Timeline
Residential
Health and
Safety Rental
Inspection
Program
Launched
2006
Finance
Department
begins
encouraging
compliance
using limited
resources
2024
PBF Grant
program begins
Rental Inventory
Program Design
update
2025
CDD Tenant
Protections
Presentation:

Council stresses
value of increased
rental data gathering
2023
Update of Rental
Programs
incorporated into
Partnership for the
Bay’s Future (PBF)
Grant Application
2024
Intended
Revamp
Launch
2026
Inspection
Program
partially
digitized using
limited
resources
2022
Housing
Recession
2008
Previous Presentations

Enrollment requirements: Current Practices
Maintain a valid business license each year Inspection and information gathering occurs every three years
Allow the City to inspect the unit once every
three years for compliance with applicable
City ordinances and housing laws
Fees are collected at the time of inspection
booking
Correct any violations identified during
inspection, apply for Certificate of
Compliance every three years, and pay fees
Reactive compliance enforcement and
limited tracking through Code Enforcement
and Finance Department
Existing Protocols
Program Scope: All residential property owners – including single-family homes, multi-family units, apartment buildings, and hotel/motels Previous Presentations

Lack of public
transparency
Limited data
collection
Temporary,
limited
software
Difficult
inspection
booking system
for public and
staff
Inconsistent,
reactive
enforcement
Residential Health and Safety
Rental Inspection Program
Update
Lack of data
analytics
Easy-to-use System
Informed Policy Design
Proactive Enforcement
Program &
Software
Revamp
Not able to be
proactive
Limited data
collection
Public Transparency
Previous Presentations

Increase enrollment: Increase enrollment through a user-friendly interface that will also streamline existing processes for property owners and city staff alike.

Program Goals:make participation as convenient, cost-effective, and noninvasive as possible while delivering impactful data to policymakers, decision makers, and the public
Inform Policy: Gather data that will better inform city policies, including determining how to most effectively use existing Housing Successor Fund
Protect Community: Provide public transparency and
avenues of input/feedback on housing stock.

Track and mitigate evictions, habitability shortcomings, and rental misconduct.

Previous Presentations

Track and Mitigate Evictions
• Current eviction data
tracking is isolated to Sheriff
Lockout data
• Not all eviction proceedings
make it all the way to the
Sheriff lockout phase
• Lockout data does not track
demographics, reason for
eviction, or soft evictions - all
of which will help develop
effective mitigation
strategies.

Identify and Incorporate
Noncompliant Properties
• 300-400 rental units (roughly
20% of stock) are currently
not enrolled in program
• Identify and engage
noncompliant units in order
to increase enrollment, and
better local residents.

Why do we want this?
Market Safeguards
• Prevent speculative market
practices from negatively
impacting local housing
market
• Ensure market changes
benefit Pinole’s community
rather than displace it
• Better understand the City’s
rental housing stock to allow
for more precise approach
to housing policy
Previous Presentations

Municipal Engagement
Half Moon Bay
Monterey
San Francisco
Concord
Palo Alto
Mountain View
East Palo Alto San Jose
Antioch
Berkeley
West Hollywood
Santa Monica
Beverly Hills
Pasadena
Stockton
Los Angeles
Richmond
Salinas
Hayward
Oakland
● Implement accessible
online platform
● Increase staff capacity
● Incorporate actual cost of
software and staffing into
new fee schedule
● Eliminate paper option
● User support office hours
● Self-certified inspection
program for qualifying
owners
Lessons Learned
Average Annual Fees:
$182 per unit
*bold* -
Northern
California
locations
*underlined* -
direct dialogue
with team
Previous Presentations

Real World Impact:

Monterey Case Study
●Data revealed an almost complete lack of 3+ bedroom rental units in the city.
●This prevented middle and even upper middle-income families from residing in Monterey.
●The findings helped explain drops in the local economy and massive enrollment decline in their school system.
●In order to address this, Monterey is working on programs to help property owners expand existing units to
accommodate families.
(Monterey quarterly report)
Previous Presentations

Continued Community Engagement
Rental Property Owners
Accessory Dwelling Units (ADUs)
Single-family-home
2-5 unit properties (duplex, triplex)
Medium multifamily properties (5-12 units)
Large & commercial units (13+ units)
Rental Property Facilitators
Property managers & management firms
Housing providers
Developers
Apartment and Realtor Associations
Residents
Tenants & Renters
Condo/ADU occupants
Homeowners
Senior residents
Affordable Housing World
Affordable housing developers
Affordable housing managers &
operators
Affordable housing residents
Voucher program operators
Voucher program recipients
Previous Presentations

● Monterey
● East Palo Alto
● Salinas
● Monterey
● Half Moon Bay
●Advanced machine learning and
predictive modeling, proprietary
“Swarm” tool, and ability to overcome
municipal data challenges such as
advanced spatial queries,
customizable scoring models at the
parcel, neighborhood, or block group
level.
●3rd party data site scrubbing
●Only provider able to facilitate
intended ease-of-use and
comprehensive data analysis and
additional data gathering
●Excellent customer service for public
and city
Implementation through Tolemi based on:
20 Sole Source Justification Neighboring Municipality
Recommendations:
baysfuture.org
(Map of noncompliant units)
(Noncompliant
units by
neighborhood)
Previous Presentations

● Name of owner (beneficial ownership
disclosure)
● Number of units, bedrooms and
bathrooms
● Sqft, Year built
● Rent charged
● Additional fees (i.e. parking),
Amenities/utilities included at owner
vs. renter expense
● Eviction/Tenant changeover
● Occupancy status
● Demographic data not
recommended
● Create streamlined program
platform for enrollments,
compliance outreach, and
inspection management
● Create accessible data synthesis
site for city staff and limitable
public site
● Fee and housing data collected
annually
● Certificate of compliance required
for business license renewals
● Half Moon Bay Enrollment video:
https://vimeo.com/993584463
Implementation through Tolemi
Gatherable Data (included Program Model but not limited to) (screenshots from Half Moon Bay enrollment page)
Previous Presentations

Annual Cost
Site Development
(one-time fee)*
Increased Staffing
Requirements
(pending fee study)
Rental Inventory
$39,000 $23-$39
City Impact:

1. Increased
enrollment in PRIIP
Program

2. Simpler process for
program users

3. Comprehensive
housing data for Operating cost city and public use
Data Collection
Outreach services
$20,000 $15-$23
Operating cost
Improved program
Self-Cert Option
$8,000* $0 (paid by PBF)
User portal
City analytics
Public facing site
Estimated Implementation Expenses (pending fee
study)
Fee Increase Deliverable
Previous Presentations

Progress Update
Site Development
● Site development and data transfer are underway through the implementation contract.
● Estimated platform launch late-January to mid-February.

Research and Community Input
● Ongoing targeted engagement with rental property operators, tenants, advocates, and neighboring municipalities.
● Intended to inform data gathered, public transparency, user interface, and program incentives.

Previous Presentations

baysfuture.org
Connecting Operators to Existing Resources
Platform can connect operators to existing
decarbonization programs at the City, County, State,
and Federal Level:
• Energy-Saving Programs | PG&E
• Incentives - The Switch Is O
• Green House Calls® - Rising Sun Center for
Opportunity
Council Input: Decarbonization
Partnering with CAP Monitoring
Program intends to integrate with City’s Climate Action Plan monitoring software and integrate spatial
analysis for program impact assessments and
targeted outreach.

Tracking Efficiency Upgrades
Software developer, Tolemi has
expressed interesting in piloting a
green and high efficiency upgrades
tracking system in Pinole including:
● Induction stovetops,
● electrical panel upgrades,
● solar and EV charging
installations, and
● high efficiency windows and
insulation.

Previous Presentations

Municipal Operators:

City of Los Angeles
County of Marin
City of Concord
City of San Francisco
Tenant Advocates
Enterprise Community Partners
Partnership for the Bay’s Future
SV@Home
Tenants Together
East Bay Housing Organization
Community Input
Limited/Preliminary
tenant input
Limited/Preliminary
operator input
Council Input: Tenant Data - Inquiry Previous Presentations

Fair housing law limits landlords
from gathering this data.

It is unlikely an opt-in program will
gather a representative sample
in the current climate.

Express caution over sensitive and
weaponizable nature of the data.

Cross-referencing data findings to
regional demographics identified
in census tract data is an equally
effective advocacy strategy.

Initial input has expressed
caution about liking their
personal data to the
Program.

Council Input: Tenant Data -
Findings Municipal Operators: Tenant Advocates Community Input Previous Presentations

Administrative Regulations
Inventory Enrollment Rental Operators to enroll in rental inventory on or before December 31st of each year on the City’s approved platform (Tolemi)
Business Licenses Rental Operators to acquire a business license on or before December 31st of each year on the City’s approved platform (Tolemi)
Compliance and
Deficiencies
Rental Operators to comply with periodic inspections once every three years and remedy deficiencies on the City’s approved platform (Tolemi) Tenant & Public
Transparency
Tenants to receive copy of enrollment form and inspection reports.

City may publish non-confidential program data or provide data upon request Annual Fee Collection Program fees and business license fees to be collected annually on the City’s approved platform.

Residential Health
and Safety Inspector
Authorize the Building Official to designate a Residential Health and Safety Inspector to administer this Program.

Proposed Administrative Regulations Previous Presentations

Temporary
Transition
Schedule for
2026-2027
Implementation
(Category-Based
Compliance
Requirements)
Previous Presentations

Next Steps and Implementation Timeline
Beta Site Development
Program Focus Groups
Modification
Tomorrow - Oct
Continued Public Outreach
Early Enrollment
Assistance Office Hours
Jan-March
1st Quarterly data report
Focus Group Follow up
July-Aug
Public Outreach
Continued Site Development
City Council program approval
Oct - Dec
Early Enrollment Deadline
Assistance Office Hours
Data Synthesis/Analysis
April-Jun
Contract re-evaluation
Informed Policy
recommendations
Aug-December
Council Decisions (November):

Administrative Regulation Modification Approval>>Business License Date Change Approval CDD Actions:

Site Development>>Community Input>>Design Modification>> Outreach>>Program Launch 2025 2026
Previous Presentations

Next Steps and Implementation Timeline
Beta Site Development
Program Focus Groups
Modification
Tomorrow - Oct
Continued Public Outreach
Early Enrollment
Assistance Office Hours
Jan-March
Cat 3 Enrollment Deadline: June
1st Quarterly data report
Focus Group Follow up
July-Aug
Public Outreach
Continued Site Development
City Council program approval
Oct - Dec
Cat 4 Enrollment Deadline: April
Assistance Office Hours
Data Synthesis/Analysis
April-Jun
Cat 1 Enrollment Deadline:

December 31
Cat 1-4 Business License
Deadline: December 31
Aug-December
2025 2026
Cat 2 Enrollment Deadline: When Current CoC expires
Previous Presentations

Administrative Regulations to be proposed (January)
Administrative Regulations
Data Collection and
Transparency
Following continued stakeholder engagement and neighboring program input, January regulations will delineate specific data to be collected and determine which data will be available to the public.

Self-Certification
Inspection Program
Following continued stakeholder engagement and neighboring program input, January regulations may incorporate a self-certification option for qualifying rental property operators. Engagement will help determine: qualifying parameters, extent of self-certification eligibility, tenant correspondence.

Program Fee
Modifications
Following Fee Study, January regulations will implement new fee schedule that will ensure full program cost recovery and adequate staffing.

One-Time Discounted
Enrollment Fees
Following Fee Study, January regulations may establish a one-time discounted enrollment fee for property owners who enroll by a specified date to encourage early participation and support timely adoption of the new platform.

Previous Presentations

CITY COUNCIL
REPORT 10.B.

DATE: MARCH 3, 2026
TO: MAYOR AND COUNCIL MEMBERS
FROM: David Hanham, Planning Manager, 510-724-9842, [email protected] Justin Shiu, Consultant Planner, 510-724-9035, [email protected] SUBJECT: WAIVE THE FIRST READING AND INTRODUCE A ZONING CODE AND

SPECIFIC PLAN AMENDMENT TO PROHIBIT NEW SERVICE STATIONS,

ESTABLISH REGULATIONS FOR EXISTING LEGAL NONCONFORMING

SERVICE STATIONS, AND ESTABLISH REGULATIONS FOR ALTERNATIVE

FUEL STATIONS

RECOMMENDATION
Staff recommends that City Council 1) waive the first reading and introduce an ordinance consisting of the Municipal Code Amendments related to prohibition of new service stations, proposed regulations for existing legal nonconforming service stations, and proposed regulations for alternative fuel stations, and 2) schedule a second read and adoption for March 17, 2026.

BACKGROUND
The City of Pinole currently has a temporary moratorium on new and expanded service stations (i.e., gas stations). Service stations are defined in Pinole Municipal Code Chapter

17.22 as “a retail business selling gasoline or other motor vehicle fuels.” Moratorium
The City Council adopted an urgency ordinance establishing a temporary moratorium on new service stations or expansion of service stations on April 2, 2024 for a period of 45 days and subsequently extended it by 22 months and 15 days by an urgency ordinance on May 7, 2024.

As provided in the urgency ordinance, the City of Pinole has an overriding interest in planning and regulating the use of property within the City to maintain quality of life and address climate change to maintain public health, safety and welfare. Fossil-fuel-based transportation remains the largest contributor of greenhouse gas emissions. In adopting the urgency ordinance, the City desired to aid in reducing severe negative public health impacts that residents experience and will continue to experience. The ordinance achieves this by banning the development of new service stations, prohibiting the expansion of existing service stations, and encouraging alternative fueling options to support a transition to zero-emission vehicles.

The urgency ordinance is set to expire on March 22, 2026. The proposed amendments would carry forward the prohibition by establishing long-term regulations and would follow the next steps directed by the Climate Action and Adaptation Plan.

Climate Action and Adaptation Plan
In August 2024, the City of Pinole adopted the Climate Action and Adaptation Plan (CAAP).

The CAAP includes a program directing the adoption of an ordinance that bans new and expanded fossil fuel gas stations. Policy TR-4 calls for the City to “increase passenger zeroemission vehicle (ZEV) use and adoption to 33% by 2030 and 100% by 2045.” Action TR-4c calls for the City to “adopt an ordinance that bans the development of any new, or expansion, renovation or replacement of any existing, fossil fuel stations in the City prior to the expiration of the Urgency Ordinance.” Among the listed actions in TR-4c is direction for the City to “prepare a General Plan, Specific Plan, and Zoning Ordinance text amendment, which would establish Service Station land use as Not Permitted by Table 17.20.030-1 in the PMC, making all existing service stations legal non-conforming and subject to Section 17.14.080 of the Municipal Code.”
TR-4c: Adopt an ordinance that bans the development of any new, or expansion, renovation or relations of any existing, fossil fuel gas stations in the City prior to the expiration of the Urgency Ordinance. The process should include:

1. Determining and defining an outreach process.

2. Preparing a General Plan, Specific Plan, and Zoning Ordinance text amendment, which would establish Service Station land use as Not Permitted by Table 17.20.030-1 in the PMC, making all existing service stations legal non-conforming and subject to Section 17.14.080 of the Municipal Code.

3. Determine if any streamlining enhancements to existing provisions in the PMC that incentivize the expansion, modification, or retrofit of an existing service station to incorporate biodiesel or other alternative fuels or charging stations for electric vehicles should be considered.

4. Take the Amendments through the required public review process, including Planning Commission recommendation and City Council adoption.

5. Continue to direct staff to explore options for additional charging at City-owned/maintained properties and private facilities for public benefit.

Zoning Code
General zoning regulations are found in Title 17, Zoning of the Pinole Municipal Code (i.e., Zoning Code), where most regulations related to service stations are contained. The Zoning Code defines “service stations” as “a retail business selling gasoline or other motor vehicle fuels.” Chapter 17.20 contains the allowable use table where service stations are permitted, Chapter 17.22 establishes the definition of service stations, and Chapter 17.34 provides specific standards and requirements regarding service stations.

Service stations are a conditionally permitted use (with the issuance of a conditional use permit) in the following Zoning Districts:

1. RC Zoning District

2. OIMU (see the Three Corridors Specific Plan)

3. OPMU (see the Three Corridors Specific Plan)

4. CMU (see the Three Corridors Specific Plan)
Where sites are located within the Three Corridors Specific Plan area, the regulations of the Specific Plan supersede the Zoning Code, including allowable land uses.

Three Corridors Specific Plan
The Three Corridors Specific Plan (i.e., Specific Plan) contains regulations on allowable land uses and development standards for sites within the Specific Plan located along the San Pablo Avenue, Pinole Valley Road, and Appian Way corridors. The Specific Plan is divided into corridors, each with sub-areas and land use/zoning designations within each sub-area. Service stations are conditionally permitted (with the issuance of a conditional use permit) in the following areas:

1. OIMU in the Service Sub-Area in the San Pablo Avenue Corridor.

2. OPMU in the Service Sub-Area in the Appian Way Corridor.

3. CMU in the Mixed Use Sub-Area in the Appian Way Corridor.

Existing Service Stations
There are eight existing service stations in the city, as shown in Table 1 below. Seven out of eight are located within the corridors covered by the Specific Plan, and one out of the eight is located in the RC zoning district outside of the Specific Plan. As noted in the table, the majority of service stations are already existing nonconforming uses as they are not permitted or conditionally permitted uses under the current Zoning Code and Specific Plan.

Table 1. Existing Service Stations
Service
Station
Location Zoning/Specific Plan
Designation
Nonconformity to
Existing Zoning
Pump
House
700 Tennent
Ave
CMU in the Old Town Sub-Area
(San Pablo Avenue Corridor)
Existing Nonconforming
Use
Grand 1390 San Pablo
Ave
CMU in the Mixed Use Sub-Area
(San Pablo Avenue Corridor)
Existing Nonconforming
Use
Marathon 1007 San Pablo
Ave
CMU in the Mixed Use Sub-Area
(San Pablo Avenue Corridor)
Existing Nonconforming
Use
Chevron 2695 Pinole
Valley Rd
CMU in the Service Sub-Area
(Pinole Valley Road Corridor)
Existing Nonconforming
Use
ARCO 2747 Pinole
Valley Rd
CMU in the Service Sub-Area
(Pinole Valley Road Corridor)
Existing Nonconforming
Use
7-eleven /
76 2401 Appian
Way
CMU in the Service Sub-Area
(Appian Way Corridor)
Existing Nonconforming
Use
Chevron 2298 Appian
Way
OPMU in the Service Sub-Area
(Appian Way Corridor)
Conforming Use
Shell 1401 Fitzgerald
Dr
RC Conforming Use
Outreach and Notification
Following the direction provided under CAAP Action TR-4c, Staff conducted outreach and prepared proposed revisions to the Zoning Code and Three Corridors Specific Plan. Notices were sent to service station operators and property owners on December 29, 2025 informing them of draft amendments in process and inviting them to schedule meetings with Staff to

share feedback, thoughts, questions, and concerns between January 5 to January 22, 2026.

Three service station owners/operators responded to the invitation to meet with Staff. They indicated no objection to the preparation of the ordinance at that point. Staff made the participants aware that the draft ordinance would be available for review once the Planning Commission agenda packet is published and there would be opportunities for them to participate in the Planning Commission meeting and provide additional comments.

Notices of the Planning Commission and City Council meeting were mailed to service stations, properties owners of service stations, and lots within 300 feet of existing service stations.

Notices were also mailed to lots zoned to permit/conditionally permit service stations and lots within 300 feet of those zoned lots. A newspaper notice was published in the West County Times on January 2, 2026 for Planning Commission and February 20, 2026 for City Council.

Notices for Planning Commission and City Council were also posted at City Hall on those respective dates, which included information on how to locate the respective agenda packets and participate in the meetings.

A dedicated project webpage was also created to provide background information on the proposed ordinance, including relevant CAAP context and draft materials, and to offer an online survey for the public to share feedback and submit comments (https://www.pinole.gov/permanent-service-station-ban-ordinance/). Information about the survey was also posted on the City’s newsletter – the Pulse. The survey was open from December 17, 2025 through January 20, 2026. The survey had 158 participants; the results and comments can be found in Attachment F.

A second survey was offered following the Planning Commission hearing to provide additional opportunity for feedback. The survey was open from February 6, 2026 through February 23, 2026. The survey had 267 participants; the results and comments can be found in Attachment G.

Planning Commission
The Planning Commission held a public hearing on January 26, 2026 (Attachment C) to consider the proposed amendments and recommended that the City Council consider the adoption of the amendments. The Planning Commission resolution can be found in Attachment D and the minutes can be found in Attachment E. Planning Commission provided several recommendations, which can be found along with responses in Table 2 below.

Table 2. Planning Commission Proposed Amendment Recommendations and Responses
Planning Commission
Comment
Response

1. Regarding Section 17.12.080,
provide further clarification in the
staff report on other applicable
projects covered under
Administrative Design Review.

Administrative Design Review applies to items listed in Section 17.12.080, consisting of single family additions and multifamily or nonresidential additions of 500 square feet or greater. It also applies to exterior improvements or expansion of nonconforming structures (Section

17.14.050) and fences over standard height limits
(Section 17.42.030). With the proposed amendments,

another application of Administrative Design Review
would be proposed renovations and modifications of
service station uses, which would be existing legal
nonconforming uses.

2. Regarding Section

17.34.030(C)(2), add text
referencing code enforcement
action as the means to bring
service station sites into
compliance with clean up and
restoration requirements, after the
loss of nonconforming status.

The proposed amendment text has been updated. Text
was added to this Section to clarify that owners who do not complete requirements within the code would be
subject to code enforcement action, which is the
standard method to address noncompliance with
standards and requirements established in the Municipal Code. The added text reference to code enforcement
makes this clearer within the Section text.

3. Regarding Section

17.34.050(E), remove the
proposed text “or Specific Plan” in
the sentence “Notwithstanding
any other requirements in the
Zoning Code or Specific Plan, the
maximum height for all service
station buildings (including
canopy) shall be twenty-five (25)
feet.” In other words, keep the text
in this sentence as it current
appears in the existing code and
do not include the proposed
modifications.

The proposed amendment text has been updated. Text
for this sentence will be the same as it appears in the existing code.

4. Regarding Section 17.22.020
and wherever referenced in the
amendments, update the
alternative fuel station fuel type
list to add “any other renewable
fuel”, to the prior list of fuels that
included hydrogen, electricity, and
biofuel.

The proposed amendment text has been updated.

Section 17.22.020, Section 17.34.030(B)(3), and Three
Corridors Specific Plan Chapter 11 have been updated to reference alternative fuel, which may include “hydrogen, electricity, biofuel, or any other renewable fuel.”

REVIEW AND ANALYSIS
CAAP action TR-4c calls for the City to adopt an ordinance that bans the development of new service stations serving fossil fuels, or expansion, renovation or replacement of any existing service stations selling fossil fuels. To implement CAAP TR-4c, amendments to the Zoning Ordinance and Specific Plan are required to prohibit service stations in all zoning districts, with existing service stations becoming legal nonconforming uses. Currently, the majority of existing service stations in Pinole are already existing nonconforming uses as most are in locations not zoned to permit or conditionally permit these uses in the Zoning Code and Specific Plan.

Nonetheless, the amendments would provide greater clarity and specificity on operations and modifications on sites with existing nonconforming service stations, consistent with the intent of

the CAAP. Additionally, the amendments consider enhancements to existing provisions in the Zoning Ordinance that incentivize the expansion, modification, or retrofit of an existing service station to incorporate biodiesel or other alternative fuels or charging stations for electric vehicles.

Under the proposed amendments, “service stations” are considered to be the fossil fuel serving land use on a site. Any other uses on the same site would be evaluated separately for compliance with the Zoning Code and Specific Plan. For example, under the proposed amendments, a service station site with four fossil fueling pumps, a convenience store, and a car wash would have a service station component (the fossil fuel-serving features) that becomes an existing nonconforming use. The convenience store would remain a permitted retail use and the car wash would remain a conditionally permitted use, as provided by the Zoning Code and Specific Plan. This means the convenience store and car wash uses could expand or be modified, subject to the Zoning Code and Specific Plan. Electric vehicle (EV) charging stations that are ancillary equipment to the primary use of the site may continue to be permitted through the Building Permit process, which is the current process for EV chargers.

Amendments to the Zoning Code and Three Corridors Specific Plan The proposed revisions in the Zoning Code and Three Corridors Specific Plan are provided in Attachment B. Proposed revisions are summarized in the following chapter summaries.

The key aspects of the amendments include:

1. Prohibiting service stations in all zoning districts.

2. Allowing the continued operation of existing service stations as legal nonconforming uses, which may maintain or reduce fossil fuel serving uses.

3. Allowing limited modification or renovation of fossil fuel serving uses, providing such changes do not increase the number of fossil fuel pumps. Routine maintenance and repair of equipment would be permitted. Replacement of equipment needed to preserve health and safety and to comply with regulatory requirements would be permitted.

4. Allowing modifications at service station sites needed to support other allowable uses, such as convenience stores or alternative fuel infrastructure.

5. Establishing a new use category and development standards for alternative fuel stations, allowing service station-type uses that dispense alternative fuels.

Amendments to Chapter 17.12. Entitlements
Administrative Design Review is proposed for certain types of projects involving service station modifications, as further described in the proposed changes to Chapter 17.34. In Section

17.12.080(B), text was added as shown below to clarify that Administrative Design Review applies types of projects identified in Section 17.12.080(B) in addition to types of projects that may be listed elsewhere in Title 17 Zoning, which includes Chapter 17.34 Automobile Service Stations. The following is the recommended amendment to the applicability section:

Amended Text: 17.12.080(B). Applicability. Administrative design review is required for all structural additions to single family, multi-family and non-residential structures, and as otherwise required in this Title.

Amendments to Chapter 17.20 Allowed Land Uses and Requirements Chapter 17.20 of the Zoning Code establishes the allowed land uses and entitlement

requirements for each base zoning district, consistent with and implementing the City’s General Plan land use designations. The following are the proposed modifications to this chapter:

1. In Table 17.20.030-1, service stations are changed to a use that is not permitted in any zoning district. Existing service stations would be allowed to continue operating as existing nonconforming uses, consistent with Chapter 17.14 (Nonconforming Uses and Structures) and subject to additional requirements in Chapter 17.34 (Automobile Service Stations).

2. In Table 17.20.030-1, alternative fuel stations are added as a new land use type to support fuels other than fossil fuels.

3. A footnote text is added to expand on service stations and alternative fuel stations.

Amendments to Chapter 17.22 Allowed Use Definitions
Chapter 17.22 of the Zoning Code defines the use classifications referenced throughout the Zoning Code, grouping land uses into general categories based on common function, product, or compatibility characteristics. The following are the proposed modifications to this chapter:

1. In Section 17.22.020(G)(6), the service station definition is revised as shown below to change “gasoline” to “fossil fuels”. This includes gasoline and diesel fuel. This change aligns with CAAP terminology and the CAAP policies guiding the proposed Zoning Code amendments, which reference “fossil fuel gas stations.” Amended Text 17.22.020(G)(6): SERVICE STATION. A retail business selling and dispensing fossil fuels, including gasoline and diesel, for motor vehicles.

Service stations may include the sale of other motor vehicle fuels. gasoline or other motor vehicle fuels. Vehicle services which are incidental to fuel services are included under “Vehicle Services - Minor.”

2. In Section 17.22.020(G)(7), a new definition of “alternative fuel station” is added, as shown below, to establish a new land use type, similar to service stations, that dispense fuels other than fossil fuels, such as hydrogen, electricity, biofuel, or any other renewable fuel. That definition is as follows:

Amended Text: 17.22.020(G)(7). ALTERNATIVE FUEL STATION. A retail business selling and dispensing motor vehicle fuel other than fossil fuels, including hydrogen, electricity, biofuel, or any other renewable fuel. . Vehicle services, which are incidental to fuel services, are included under “Vehicle Services - Minor.”
Amendments to Chapter 17.34 Automobile Service Stations Chapter 17.34 of the Zoning Code regulates service stations to ensure their design and operation are compatible with surrounding uses and to support the incorporation of alternative fuels and electric vehicle charging. The following are the proposed modifications to this chapter:

1. In Chapter 17.34, the chapter title is modified to reflect standards inclusive of both service stations and the new alternative fuel station land use type as shown below.

Amended chapter title text: Chapter 17.34 Automobile Service Stations and Alternative Fuel Stations

2. In Section 17.34.010 (Purpose), the purpose is modified to note that the chapter contains requirements that apply to service stations as well as alternative fuel stations, as shown below. Reference is added for reference to City policies, including the CAAP.

Amended Text: 17.34.010. The purpose of this chapter is to regulate legal nonconforming service station modifications and alternative fuel station development to ensure that the design and operation of such uses are compatible with surrounding uses and activities relative to hazardous materials, noise, circulation, runoff, lighting, and litter, and consistent with the City’s goals and policies, including the Climate Action and Adaptation Plan, while encouraging and incentivizing the expansion, modification, or retrofit of existing service stations to incorporate biodiesel or other alternative fuels and electric vehicle charging infrastructure.. This chapter is also intended to allow for expansion of existing service stations to allow for biodiesel and other alternative fuels and the incorporation of charging stations for electric vehicles.

3. In Section 17.34.020 (Applicability), modifications are made to clarify applicability as listed in the following and shown below.
• New service stations may longer be created, so “new” is stricken regarding applicability to service stations.
• Alternative fuel stations are added.
• New service stations are no longer authorized, so text referencing their authorization is stricken.
• Modifications to existing service stations are established in Chapter 17.34, so text referencing exemption from standards is stricken.

Amended Text: 17.34.020. The regulations contained in this chapter shall apply to new legal nonconforming service stations and alternative fuel stations. Service stations subject to this chapter shall only be authorized through entitlement requirements of Article II. (Zoning Districts, Allowed Uses, and Development Standards). These regulations shall be in addition to any other development standards and regulations contained elsewhere within the Zoning Code (e.g., lighting). Existing service stations and modification to existing service stations are exempt from the regulations contained in this chapter.

4. Section 17.34.030 (Requirements and Conditions of Approval), has been substantially revised. A summary of the modifications is provided below, followed by details on the amendments to the text in subsections A, B and C:
• Revised the title of Section 17.34.030 to “Operation and Modification of Service Stations”.
• Struck out existing text referencing the Planning permit requirement for new service stations as no new service stations are permitted.
• Added new text indicating that new service stations are prohibited and existing legal nonconforming service stations may continue subject to listed requirements.

• Added new subsections listing details for operation of service stations, renovations and modifications of service stations, and loss of nonconforming status for service stations.

In the revised Section 17.34.030(A), the entirety of the existing text has been removed and text has been added to restrict expansion in the number of fossil fuel pumps.

Amended Text: 17.34.030(A). Operation of Service Stations. New service stations are prohibited. Existing legal nonconforming service station uses may continue to operate, subject to the following:

1. The number of fossil fuel pumps shall not be increased to exceed the existing number at the service station site.

2. If the number of fossil fuel pumps are permanently reduced, meaning the pump or pumps are fully removed rather than temporarily out of service, no subsequent actions may increase the number of fossil fuel pumps to the number that existed prior to the reduction.

3. Fossil fuel equipment and infrastructure may be repaired, replaced, and/or relocated on the same site where required to ensure preservation of health and safety consistent with regulatory standards; comply with regional, state or federal requirements; reduce fossil fuel use; or support the deployment of alternative fuel infrastructure. Replacement and relocation shall be subject to the requirements under Section 17.34.030(B).

4. Existing service stations shall lose nonconforming status if conditions occur as described in Section 17.34.030(C).

In the Section 17.34.030(B), the entirety of the existing text has been removed, and text has been added as the revised Section 17.34.030(B) and (B)(1) to establish the limited scope in which service stations may be renovated or modified, which includes compliance with health and safety standards, regulatory requirements, reduction in fossil fuel use, and supporting incorporation of alternative fuels. Additionally, Administrative Design Review would be required as a Planning permit requirement. The number of fossil fuel pumps may not be increased as part of the renovations and modifications. Maintenance and repair would not be considered renovations.

Amended Text: 17.34.030(B). Renovations and Modifications of Service Stations.

Renovations and modifications of service stations may be conducted, subject to the following:

1. Fossil Fuel Uses. Renovations and modifications associated with the selling, dispensing, and storage of fossil fuel are allowed only where such work is required to ensure preservation of health and safety consistent with regulatory standards; comply with regional, state or federal requirements; reduce fossil fuel use; or support the deployment of alternative fuel infrastructure. a. Administrative Design Review approval is required for renovations and modifications.
b. Renovations and modifications shall not increase the number of fossil fuel pumps.
c. Maintenance and repair of existing fossil fuel service equipment is not considered a renovation or modification for the purposes of this Section.

In the revised Section 17.34.030(B)(2), text was added to clarify that work involving uses

other than the fossil fuel serving uses on the service station may be conducted (such as remodel of a convenience store) if the standard required permits associated with such work are obtained.

Amended Text: 17.34.030(B)(2). Other Uses. Renovations and modifications that involve other permitted and conditionally permitted uses on the site (e.g., remodel of a convenience store, installation of alternative fuel pumps, installation of zero-emission vehicle charging stations) may be allowed subject to obtaining required permits.

In the revised Section 17.34.030(B)(3), text has been deleted related to keeping a copy of the use permit on the premises, as no conditional use permits will be issued for new service stations going forward. Additionally, provisions from Section 17.34.060 were relocated to this section and reworked to maintain incentives for alternative fuel but with further clarity on the process for approval. The provisions in 17.34.060 allow for potential reduction in on-site parking if a service station modification includes alternative fuels and EV charging stations.

Amended Text: 17.34.030(B)(3). Addition of Alternative Fuel. Plan check is required pursuant to Section 17.12.030 (Plan Check) for the expansion, modification or retrofit of an existing service station where the expansion, modification or retrofit incorporates alternative fuels, including hydrogen, electricity, biofuel, or any other renewable fuel. The designated approving authority may grant the expansion, modification or retrofit even if specified improvements result in a reduction of existing on-site parking. Renovations and modifications of service stations that include alternative fuel infrastructure may include a request for reduction of existing on-site parking spaces. The designated approving authority may approve a parking reduction without a Minor Deviation, Variance, or Conditional Use Permit when the applicant demonstrates, to the satisfaction of the Community Development Director, that the reduction is necessary to accommodate alternative fuel infrastructure.

In the revised Section 17.34.030(C), the majority of the existing text has been removed and text is revised as shown below to reflect the circumstances that result in the loss of nonconforming status. A summary of the modifications is provided below:
• Loss of nonconforming status is based on Chapter 17.14 Nonconforming Uses and Structures. Consistent with Section 17.14.080, nonconforming status is lost if the use is abandoned or discontinued for six continuous months. • Text is added to clarify that abandonment or ceasing the sale, storage, or dispensing of fossil fuels constitutes loss of nonconforming status, as service stations are defined by their sale of fossil fuels.

Amended Text: 17.34.030(C). Loss of Nonconforming Status for Service Stations.

1. If the service station is abandoned or ceases the selling, storing, and/or dispensing of fossil fuels for a continuous period in excess of six (6) months, the service station shall lose its nonconforming status and any subsequent use of the site shall be in conformity with regulations of the applicable zoning district. The Community Development Director shall have final determination on the date the service station became abandoned or ceased the selling, storing, and/or dispensing of fossil fuels.

In the revised Section 17.34.030(C)(2), text is revised to clarify requirements after loss of nonconforming status is the same as the requirement that had been in place for revocation of a use permit. The site must be restored to conditions prior to the service station use.

Additionally, a target date of six months from loss of nonconforming status has been set to establish a target for completing the work, which may be modified by the Community Development Director as needed.

Amended Text: 17.34.030(C)(2). If the service station loses its nonconforming status, the property owner shall be responsible for the removal of Upon revocation of the conditional use permit, the applicant shall remove all buildings, pumps, pump islands, signs, underground storage tanks, fences, walls, and all other structures and instruments related to the service station and shall return the property to substantially the condition it was in prior to the construction of the service station.

The owner shall submit plans to the Community Development Department showing the proposed removal and obtain all required permits to complete the work. The owner shall complete the removal within six (6) months following the date the service station lost its nonconforming status, or as otherwise approved by the Community Development Director. Owners that do not complete the removal within required timeframes would be subject to code enforcement action.

5. In Section 17.34.040 (Location Requirements), modifications are made, as shown below, to clarify that new service stations are not permitted and that alternative fuel stations would be evaluated based on the locational requirements that previously applied to service stations.

Amended Text: 17.34.040(A). Abutting Residential Zoning Districts or Uses. No new service stations shall be permitted. No alternative fuel station shall be permitted or located on lots abutting property in any residential zoning district or residential use, unless the designated approving authority can make the finding that the design and operation of the alternative fuel stationservice station, along with the conditions placed upon the entitlement application conditional use permit or Design Review, will ensure compatibility with the abutting property or use. Except, such locational or entitlement requirements are inapplicable where prohibited by law. In the event that the property adjacent to an existing service station or alternative fuel station is subsequently rezoned to a residential zoning district or to allow residential uses, such rezoning shall not cause the service station or alternative fuel station to be nonconforming in regard to this location requirement.

Amended Text: 17.34.040(B). Proximity to Other Service Stations. In the City of Pinole, a maximum of two (2) service stations and/or alternative fuel stations are permitted at any single intersection; otherwise, service stations shall be separated by a minimum of five hundred (500) feet. However, the city may grant exceptions for stations that are required to relocate due to roadway expansion projects or where required for compliance with regulations. Separation distance shall be measured in a straight line from the property line of said service stations. Where two (2) service stations are located at a single intersection, the city encourages stations to be sited in such a manner as to service different flows of traffic. The city may waive the spacing requirements for infill sites or locations affected by roadway widening or other infrastructure improvements.

6. In Section 17.34.050, the section title is renamed to clarify applicability of development and design standards for service stations and alternative fuel stations. Additional clarifications and revisions are listed below.
• Clarification is made that the section applies to improvements to existing service stations and new alternative fuel stations, as new service stations would no longer permitted.
• Clarification is made on which standards take precedence where there are differences between this Chapter and other regulatory standards. • Clarification is provided that turning radius information shall be reviewed by the Public Works Director when new internal circulation for fuel delivery is proposed. • Consolidated lighting requirement references.

Amended Text: 17.34.050. DEVELOPMENT AND DESIGN STANDARDS FOR SERVICE STATIONS AND ALTERNATIVE FUEL STATIONS.

The following requirements apply to all new service stations and qualifying expansions/improvements to existing service stations and new alternative fuel stations, except where such requirements may be superseded by state or federal regulations. Service station and alternative fuel station uses shall also comply with all applicable state and federal regulations regarding site design, pricing signs, containment, maintenance, and operations.

A. Frontage. The minimum public street frontage shall be one hundred and thirtyfive (135) feet on each public street for all new alternative fuel service stations B. Pump Islands. Service station and alternative fuel station pump islands may be placed in required yards provided they are no closer than fifteen (15) feet to the street right-of-way.

C. Setbacks. Generally, no building shall be located within thirty (30) feet of any public right-of-way or within fifteen (15) feet of any interior parcel line. However, to encourage a more pedestrian streetscape, a primary building with direct access from the street may be located a minimum of fifteen (15) feet from the right-of-way (and outside required landscape corridors). Where the site is located within the Three Corridors Specific Plan area, the development standards of the Specific Plan shall apply.

D. Building Placement and Orientation. Buildings shall be placed outside the required setback areas, but close to the street and oriented to the public view.

E. Building and Canopy Design. The service station or alternative fuel station building and/or canopy shall be designed for architectural compatibility with the surrounding area. Notwithstanding any other requirements in the Zoning Code, the maximum height for all service station buildings (including canopy) shall be twenty-five (25) feet. Pitched roofs are preferred, but not required. In order to reduce the visual impact of the canopy structure and corresponding lighting, the maximum height of the canopy clearance shall be fifteen (15) feet and the maximum width of the canopy fascia shall be thirty (30) inches. A lighting study shall be required in conjunction with the design review process to examine light pollution issues, including but not limited to safety and glare pursuant to The canopy fascia shall match the color and texture of the primary building. See Figure

17.34.050-1 (Service Station Building and Canopy Design). Deviations from these requirements may be allowed in conjunction with comprehensive design review

(Section 17.12.150).

F. Access Driveways.

1.a. Driveway dimensions. Driveway design shall be consistent with the City of Pinole Public Works Improvement Standards, except that the minimum width for driveways shall be thirty-five (35) feet. The width shall be expanded to forty-five (45) feet whenever the driveway accesses a street with a width of, or with a planned ultimate width of, eighty-four (84) feet or greater. The throat depth for driveways shall be fifty (50) feet.

2.b. Driveway location. Driveways shall be no closer than forty (40) feet from the nearest intersecting point of street right-of-way lines, or as otherwise determined by the Public Works Director for traffic safety.

3.c. Number of driveways. No more than two (2) exterior points of access (driveways along abutting streets) shall be provided for each service station, regardless of the length or number of street frontages. No more than thirty-five percent (35%) of the street frontage shall be devoted to curb cuts. Within integrated developments, shared access driveways are preferred.

4.d. Accommodation of vehicle stacking. The internal circulation system shall allow for vehicle stacking without blocking ingress and egress on and off the site. The pump island shall be situated to provide stacking space for a minimum of two (2) vehicles behind the vehicle parked at the pump closest to the entrance and/or exit driveway. Sites shall be designed so that the space intended for vehicle stacking shall not block or interfere with the general circulation of traffic within integrated developments.

G. Accommodation of Refueling Trucks. The internal circulation system shall allow for safe and efficient fuel delivery. Where new internal circulation accommodating fuel delivery is proposed, the turningTurning radius information for all fuel delivery trucks accessing the service station shall be provided in conjunction with conditional use permit or design review for review and approval to the satisfaction of the Public Works Director.

H. Landscaping. Landscaping shall be provided consistent with the requirements of Section 17.44.060 (Special Landscape Requirements) for service stations and alternative fuel stations.

I. Signs. Signs shall be consistent with the requirements of Chapter17.52 (Signs), including exempt gasoline pricing signs.

J. Fences and Walls. A wall shall be provided between service stations abutting property in any agricultural or residential zoning district or residential use consistent with the requirements of Section 17.42.050 (Special Fence, Wall and Screening Requirements).

K. Lighting. Where there is change to the exterior lighting in conjunction with a permit application for new or modified structures, a lighting study shall be submitted to demonstrate consistency with the requirements of Chapter

17.46 (Lighting). In addition to the lighting requirements of Chapter 17.46 (Lighting), canopy lighting shall be recessed so that the luminary does not extend below the surface of the underside of the canopy.

L. Noise. All outdoor noise generators associated with operation of the service station shall be identified by the applicant during the conditional use permit and/or comprehensive design review process and may require the submittal of a professional noise analysis to quantify noise sources and attenuate noise levels consistent with city noise standards. All outdoor speakers and video/audio pump

stations and sound signals associated with the service stations shall be turned off daily between the hours of 10:00 p.m. and 7:00 a.m. (Ord. 2010-02 § 1 (part), 2010)

7. In Section 17.34.060, the text is stricken as the provisions have been reworked and relocated to the revised Section 17.34.030(B)(3) to better group the provisions with similar topics around renovations and modifications discussed under Section

17.34.030(B).

Amendments to the Three Corridors Specific Plan: Chapter 6 Development Standards The Land Use and Development Standards Chapter of the Three Corridors Specific Plan provides the land use plan, permitted uses, and development standards that guide development and redevelopment within the Specific Plan areas to implement the vision for San Pablo Avenue, Pinole Valley Road, and Appian Way. The following are the proposed modifications to this chapter:

1. Service station uses are modified to be not permitted in any zoning districts in the following tables:
• Table 6.2 Permitted Use Table for San Pablo Avenue
• Table 6.14 Permitted Use Table for Appian Way
• Note: Service Stations are already listed as not permitted in any district in Table 6.8 Permitted Use Table for Pinole Valley Road. Existing service stations would be allowed to continue operating as an existing nonconforming use, as allowed under Chapter 17.14 Nonconforming Uses and Structures and subject to requirements further detailed in Chapter 17.34 Automobile Service Stations.

2. Alternative fuel stations have been added as a new land use type that allows for alternative fuels to fossil fuels.
• Table 6.2 Permitted Use Table for San Pablo Avenue
• Table 6.14 Permitted Use Table for Appian Way
• Note: Service Stations are listed as not permitted in any district in Table 6.8 Permitted Use Table for Pinole Valley Road. An Alternative Fuel Station use has been added to the table but is listed as not permitted in any district – consistent with Service Stations.

Amendments to the Three Corridors Specific Plan: Chapter 11 Definitions The Definitions Chapter of the Three Corridors Specific Plan describes unique terms in the Specific Plan. The following is the proposed modification to this chapter:

1. In Section 11.1, the revised service station definition and new alternative fuel station definition from the Zoning Code amendments in Chapter 17.22 have been added.

Findings for Approval
Zoning Code and Specific Plan amendments are subject to approval findings established in Pinole Municipal Code Sections 17.12.170 and 17.12.190. Findings for approval are listed

below, as well as Staff assessments.

Findings for Pinole Municipal Code Section 17.12.170(G) Findings: Specific plans and any amendment thereto shall be approved only when the City Council makes the following findings:

1. The proposed specific plan is consistent with the general plan goals, policies, and implementation programs.

2. The land use and development regulations within the specific plan are comparable in breadth and depth to similar zoning regulations contained in this title.

3. The administration and permit processes within the specific plan are consistent with the administration and permit processes of the Zoning Code.

Staff Assessment: As further expanded in the staff assessment of Section 17.12.190(D) below, the amendments can be found consistent with General Plan goals, policies, and actions.

Amendments to the land use and development regulations in the Specific Plan are made to create consistency with definitions and allowable uses proposed in the Zoning Code amendments, including the prohibition of new service stations in all zoning districts and provision for allowing alternative fuel stations in districts that previously allowed service stations. Administration and permit processes would be consistent with those provided in the Zoning Code.

Findings for Pinole Municipal Code Section 17.12.190(D) Finding: The proposed zoning amendment (text or map) is consistent with the general plan goals, policies, and implementation programs.

Staff Assessment: The proposed amendments may be found consistent with the General Plan, including but not limited to General Plan goals, polices, and actions listed below:
• GOAL SE.3 The City will reduce its contribution to climate change and mitigate and adapt to the effects of climate change as appropriate.
• POLICY SE.3.4 Reduce GHG emissions by reducing vehicle miles traveled and by increasing or encouraging the use of alternative fuels and transportation technologies. • GOAL SE.7 Air Quality will be maintained and improved for the City of Pinole and the Bay Area as a region and not decline below levels measured in the early 1990’s. • POLICY SE.7.3 Support efforts to comprehensively address air quality issues through education, regulation, and innovation.
• ACTION SE.7.3.4 Continue to encourage innovative technologies and programs such as clean-fuel, electric and low-emission cars that reduce the air quality impacts of the automobile.
• GOAL SE.8 Utilize transit options and reduce vehicle miles traveled and singleoccupancy vehicle use. • POLICY SE.8.10 Support and promote the use of low- and zero-emission vehicles, alternative fuels, and other measures to directly reduce emissions from motor vehicles. • GOAL EJ 2: Support land use patterns and densities that reduce pollution, with particular focus to reducing pollution burden in and around Impacted Communities • POLICY EJ 2.4: Improve land use planning to minimize air quality pollution, noise, and odors, by promoting strategic land use patterns for businesses, reducing the number and length of motor vehicles, encouraging alternative uses of transportation, and reducing pollution associated with vehicular traffic.

• POLICY EJ 2.5: Participate in local and regional planning efforts to reduce or mitigate health risks associated with climate change and climate vulnerability.

Furthermore, the amendments implement action TR-4c of the City’s adopted Climate Action and Adaptation Plan.

CEQA Determination
The proposed ordinance amendments are exempt from the California Environmental Quality Act (CEQA) as provided below:

1. CEQA Guidelines Section 15061(b)(3) sets forth under the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The project involves amendments to the text of the Zoning Code and Specific Plan with no physical impacts to the environment. The amendments would prohibit the development of new service stations and establish regulations on operation and design of service stations and alternative fuel stations, which result in no specific physical changes to the environment. Projects involving development would be evaluated under CEQA based on discrete site and design characteristics particular to the project. Therefore, this ordinance amendment will have no significant effect on the environment.

2. CEQA Guidelines Section 15301 provides a categorical exemption for operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use. The amendments would result in existing service station uses (i.e., the fossil fuel-serving use) becoming nonconforming uses, which would be subject to regulations restricting the ability to expand the nonconforming use. Therefore, this ordinance amendment limits operation and modification of existing service station uses such that there would be negligible or no expansion of service station uses.

3. CEQA Guidelines Section 15308 provides a categorical exemption for actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. The amendments are consistent with the policies and practices in the City’s Climate Action and Adaptation Plan (CAAP) for environmental protection through actions to address climate change and its impacts, including the actions to reduce greenhouse gas emissions. The CAAP calls for the adoption of an ordinance to prohibit new fossil fuel service stations, which is addressed through the proposed amendments. Therefore, this ordinance amendment is consistent with actions involving regulatory procedures for protection of the environment.

FISCAL IMPACT
There is no fiscal impact associated with adopting these municipal code amendments.

ATTACHMENTS
A. Ordinance

B. Municipal Code and Specific Plan Amendments - Compiled C. Prior Public Meeting References
D. PC Resolution 26-01
E. PC Minutes 1.26.26
F. Service Station Survey
G. Service Station Survey 2

1 ORDINANCE NO. 2026-XX

AN ORDINANCE OF THE CITY OF PINOLE TO PROHIBIT NEW SERVICE STATIONS,

ESTABLISH REGULATIONS FOR EXISTING LEGAL NONCONFOMRING SERVICE

STATIONS, AND ESTABLISH REGULATIONS FOR ALTERNATIVE FUEL STATIONS BY AMENDING CHAPTERS 17.12, 17.20, 17.22, AND 17.34 OF THE PINOLE MUNICIPAL CODE AND AMENDING CHAPTERS 6 AND 11 OF THE THREE CORRIDORS SPECIFIC PLAN WHEREAS, the City Council of the City of Pinole adopted an urgency ordinance establishing a temporary moratorium on new service stations or expansion of service stations on April 2, 2024 for a period of 45 days and subsequently extended by 22 months and 15 days by an urgency ordinance on May 7, 2024; and
WHEREAS, as provided in the urgency ordinance, the City of Pinole has an overriding interest in planning and regulating the use of property within the City to maintain quality of life and addressing climate change to maintain public health, safety and welfare; and WHEREAS, as further provided in the urgency ordinance, fossil-fuel based transportation remains the largest contributor of greenhouse gas emissions, and the City desired to aid in reducing severe negative public health impacts that residents are experiencing, and will continue to experience, by banning the development of new service stations, prohibiting the expansion of existing service stations, and encourage the use of zero emission vehicles; and WHEREAS, the temporary moratorium is set to expire on March 22, 2026; and WHEREAS, the City of Pinole adopted the City of Pinole Climate Action and Adaptation Plan (CAAP) in August 2024 establishing measures the City will take to support reducing greenhouse gas emissions; and
WHEREAS, the CAAP establishes an action for the City to prepare an ordinance that bans the development of any new fossil fuel stations and expansion of existing fossil fuel stations prior to the expiration of the urgency ordinance; and
WHEREAS, Pinole Municipal Code (“PMC”) Title 17 Zoning Code (“Zoning Code”) establishes general regulations on land uses and development standards within the City; and WHEREAS, The Three Corridors Specific Plan (“Specific Plan”) establish specific regulations on land uses and development standards for defined areas within the City identified in the Specific Plan and supersede requirements in the Zoning Code where there is a conflict; and WHEREAS, the proposed amendments to the Zoning Code and Specific Plan are attached hereto as Attachment B; and

ATTACHMENT A

2 WHEREAS, the Planning Commission held a duly noticed public hearing related to the proposed amendments on January 26, 2026; and
WHEREAS, after close of the public hearing, the Planning Commission considered all public comments received both before and during the public hearing, the presentation by city staff, the staff report, and all other pertinent documents regarding the proposed zoning code amendment; and WHEREAS, the Planning Commission recommended adoption of the proposed amendments; and
WHEREAS, the City Council held a duly noticed public hearing related to the proposed amendments on March 3, 2026; and
WHEREAS, after close of the public hearing, the City Council considered all public comments received both before and during the public hearing, the presentation by city staff, the staff report, and all other pertinent documents regarding the proposed amendments; and NOW THEREFORE, BE IT RESOLVED, pursuant to the findings stated herein, that the City Council of the City of Pinole does ordain as follows:

Section 1. Recitals. The above recitals are true and correct and made a part of this Ordinance.

Section 2. Amendment of Municipal Code and Specific Plan. The Pinole Municipal Code is hereby amended with amendments to Chapters 17.12, 17.20, 17.22, and 17.34 of the Pinole Municipal Code and Chapters 6 and 11 of the Three Corridors Specific Plan, as set forth in Attachment B, attached hereto and incorporated herein.

Section 3. CEQA. Pursuant to Title 14 of the California Administrative Code, the City Council finds that this Ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) for the following reasons:

1. CEQA Guidelines Section 15061(b)(3) sets forth under the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. The project involves amendments to the text of the Zoning Code and Specific Plan with no physical impacts to the environment. The amendments would prohibit the development of new service stations and establish regulations on operation and design of service stations and alternative fuel stations, which result in no specific physical changes to the environment. Projects involving development would be evaluated under CEQA based on discrete site and design characteristics particular to the project. Therefore, this ordinance amendment will have no significant effect on the environment.

2. CEQA Guidelines Section 15301 provides a categorical exemption for operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of

3 existing or former use. The amendments would result in existing service station uses (i.e., the fossil fuelserving use) becoming nonconforming uses, which would be subject to regulations restricting the ability to expand the nonconforming use. Therefore, this ordinance amendment limits operation and modification of existing service station uses such that there would be negligible or no expansion of service station uses.

3. CEQA Guidelines Section 15308 provides a categorical exemption for actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. The amendments are consistent with the policies and practices in the City’s Climate Action and Adaptation Plan (CAAP) for environmental protection through actions to address climate change and its impacts, including the actions to reduce greenhouse gas emissions. The CAAP calls for the adoption of an ordinance to prohibit new fossil fuel service stations, which is addressed through the proposed amendments. Therefore, this ordinance amendment is consistent with actions involving regulatory procedures for protection of the environment.

Section 4. 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 5. Effective Date and Duration. This ordinance shall take effect thirty (30) days after its final adoption.

Section 6. Publication. The City Clerk is directed to cause this ordinance to be published in a manner required by law.

PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on March 3, 2026, the City Council passed this 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 March 3, 2026.

4 __________________
Anthony Tave, Mayor
ATTEST:
______________________________
Heather Bell, City Clerk
APPROVED AS TO FORM:
______________________________
Eric S. Casher, City Attorney

ATTACHMENT B. MUNICIPAL CODE and SPECIFIC PLAN

AMENDMENTS

1. Pinole Municipal Code Chapter 17.12 Entitlements [Amendment]

2. Pinole Municipal Code Chapter 17.20 Allowed Land Uses and Requirements [Amendment]

3. Pinole Municipal Code Chapter 17.22 Allowed Use Definitions [Amendment]

4. Pinole Municipal Code Chapter 17.34 Automobile Service Stations [Amendment]

5. Three Corridors Specific Plan Chapter 6 Land Use and Development Standards – Table 6.2 Permitted Use Table for San Pablo Avenue [Amendment]

6. Three Corridors Specific Plan Chapter 6 Land Use and Development Standards – Table 6.8 Permitted Use Table for Pinole Valley Road [Amendment]

7. Three Corridors Specific Plan Chapter 6 Land Use and Development Standards – Table 6.14 Permitted Use Table for Appian Way [Amendment]

8. Three Corridors Specific Plan Chapter 11 Definitions [Amendment]

1. Pinole Municipal Code Chapter 17.12 Entitlements [Amendment] Excerpt of Section 17.12.080.

Text to be removed shown in strikeout text.

Text to be added shown in underline text.

CHAPTER 17.12

ENTITLEMENTS
Sections:

17.12.010 Purpose.

17.12.020 Applicability.

17.12.030 Plan check.

17.12.040 Similar use determination.

17.12.050 Reasonable accommodation.

17.12.060 Administrative use permit.

17.12.070 Temporary use permit.

17.12.080 Administrative design review.

17.12.090 Sign permit.

17.12.100 Creative sign program.

17.12.110 Sign program.

17.12.120 Minor deviations.

17.12.130 Variance.

17.12.140 Conditional use permit.

17.12.150 Comprehensive design review.

17.12.160 Development agreements.

17.12.170 Specific plans.

17.12.180 Prezoning.

17.12.190 Zoning Code (text and map) amendment.

17.12.200 General plan amendment.

17.12.210 Small cell attachment permit.
[…]

17.12.080 ADMINISTRATIVE DESIGN REVIEW.

A. Purpose. The purpose of Administrative Design Review is to provide an efficient process for promoting the orderly and harmonious growth of the city, to encourage development in keeping with the desired character of the city, and to ensure physical and functional compatibility between uses. Administrative design review is intended to provide a process for consideration of minor development proposals to ensure that additions and alterations to the design and layout of existing development will constitute suitable development and will not result in a detriment to the city or to the environment.

B. Applicability. Administrative design review is required for all structural additions to single family, multi-family and nonresidential structures, and as otherwise required in this Title. Additions for multi-family and non- residential structures that are five hundred (500) square feet or larger require comprehensive design review. Furthermore, all new single family homes shall require comprehensive design review. Issues related to fire and public works compliance are addressed during the plan check process. Issues related to Building Code compliance are addressed at time of building permit issuance.

C. Approving Authority. The designated approving authority for administrative design review is the Community Development Director. Administrative design review approval is required prior to issuance of any building permits or site improvement plans.

D. Application Contents. The application for an administrative design review shall be on a form prepared as prescribed by the Community Development Director.

E. Procedure. The procedures for administrative design review shall be as provided in Chapter 17.10 (General Application Processing Procedures) except as provided below:

1. No public hearing shall be required unless required below.

2. The city shall provide mailed notice pursuant to Section17.10.050B.2. that the city is considering an application for administrative design review. In addition to the content required under Section 17.10.050B., the mailed notice shall advise

persons that plans for the project are available for public review at City Hall and that the application will be decided unless a written request for hearing is received by the City Community Development Department on or before a date specified in the notice, which shall be at least ten (10) working days after the date of mailing.

3. If no timely written request for hearing is filed, the application shall be administratively approved by the Community Development Director if it is deemed to be consistent with the provisions of this title.

4. If a timely written request for hearing is filed, the application shall no longer be administratively processed and shall instead be processed in accordance with the procedures for comprehensive design review.

5. The Community Development Director may elevate any project to the comprehensive design review process if in the opinion of the Community Development Director, such project, because of location, size, design, or other aspect of the project, warrants a hearing before the Planning Commission.

F. Approval Findings. The approving authority shall make the following findings to approve or conditionally approve an administrative design review application:

1. Compliance with the general plan and any applicable specific plans.

2. Compliance with applicable provisions of the Zoning Code.

3. Compatibility with the surrounding neighborhood.

4. Qualifying single-family residential, multi-family residential, and residential mixed-use projects shall comply with all relevant standards and guidelines in the city's currently adopted design guidelines for residential development.

G. Appeals. Appeal of the approving authority's action on the request for administrative design review permit shall be made in accordance with the procedures specified in Section 17.10.070 (Appeals).

H. Expiration. All approved administrative design review permits are subject to the provisions set forth in Section

17.10.120 (Revocation).
(Ord. 2020-01, § 2, 2020: Ord. 2012-07 § 2, 2012: Ord. 2010-02 § 1 (part), 2010) […]

2. Pinole Municipal Code Chapter 17.20 Allowed Land Uses and Requirements [Amendment]
Full Chapter included.

Text to be removed shown in strikeout text.

Text to be added shown in underline text.

CHAPTER 17.20

ALLOWED LAND USES AND REQUIREMENTS
Sections:

17.20.010 Purpose.

17.20.020 Allowed uses and required entitlements.

17.20.010 PURPOSE.

The purpose of this chapter is to establish allowed land uses and requirements for planning entitlements for each of the city's base zoning districts. Allowed uses herein are consistent with and implement the city's general plan corresponding land use designations as shown in Table 17.18.020-1 (Zoning Districts). (Ord. 2016-03 § 2 (part), 2016; Ord. 2010-02 § 1 (part), 2010)

17.20.020 ALLOWED USES AND REQUIRED ENTITLEMENTS.

Table 17.20.030-1 below identifies allowed uses and corresponding requirements for planning entitlements for all base zoning districts within the city. Definitions for the land uses listed herein (use classifications) are provided in Chapter 17.22 (Allowed Use Definitions). See additional use requirements in Article IV (Special Use Standards). In the table below, any land use shown with a “P” indicates that the land use is permitted by right, a “C” indicates that the land use is permitted in the designated zoning district upon issuance of a conditional use permit (pursuant to Section 17.12.140 (Conditional Use Permit), an “A” indicates that the land use is permitted in the designated zoning district upon issuance of an administrative use permit (pursuant to Section 17.12.060 (Administrative Use Permit), and an “N” indicates that the use is not allowed. Except as otherwise provided for in this title, uses not shown in the table are not permitted. Zoning district names for the zoning district symbols used in the table are as follows:

LDR = Low Density Residential Zoning District
R-1 = Suburban Residential Zoning District
R-2 = Medium Density Zoning District
R-3 = High Density Zoning District
R-4 = Very High Density Zoning District
R = Rural Zoning District
RC = Regional Commercial Zoning District
RMU = Residential Mixed Use Zoning District
CMU = Commercial Mixed Use Zoning District
OPMU = Office Professional Mixed Use Zoning District
OIMU = Office Industrial Mixed Use Zoning District
OS = Open Space Zoning District
PR = Parks and Recreation Zoning District
PQI = Public Quasi-Public Institutional Zoning District SPBCA = San Pablo Bay Conservation Zoning District
TABLE 17.20.030-1:

ALLOWED USES AND REQUIRED ENTITLEMENTS FOR CITY OF PINOLE BASE ZONING DISTRICTS Land Use \ Zoning
District LDR R-1 R-2 R-3 R-4 R RC RMU CMU OPMU OIMU OS PR PQI SPBCA Residential Uses
Adult Day Care Home P P P P P P N P P P P N N N N
Caretaker Housing N N N N N N P N N N N N N N N
Dwelling, Accessory/
Junior Accessory(1)

P P P P P P N P P P P N N N N
Dwelling, Multifamily N N P P P N N P P P C N N N N
Dwelling, Single Family P P P P N P N P N N N N N N N
Dwelling, Two-Family N N P P N N N N N P P N N N N

Land Use \ Zoning District LDR R-1 R-2 R-3 R-4 R RC RMU CMU OPMU OIMU OS PR PQI SPBCA Dwelling, Three- and
Four-Family N N P P P N N P P N N N N N N
Emergency Shelter (2) N N N N N N N N N N P N N N N
Family Day Care Home,
Large P P P P P P N P P N N N N N N
Family Day Care Home,
Small P P P P P P N P P N N N N N N
Group Residential/Home P P P P P P N P P N N N N N N
Home Occupations (3) P P P P P P N P P P P N N N N
Low Barrier Navigation
Center N N N N N N N P P P P N N N N
Manufactured Home P P P P P P N P N N N N N N N
Mobile Home Park C C C C C C N N N N N N N N N
Residential Care Facilities P P P P P P P P P P P N N N N Single Room Occupancy
Facilities N N C C C N N C C N N N N N N
Supportive Housing
(located in housing of a
type permitted in the zone)

P P P P P P P P P P P N N N N
Transitional Housing (2)
(located in housing of a
type permitted in the zone)

P P P P P N P P P P P N N N N
Agriculture, Resource, and Open Space Uses
Animal Keeping, Domestic
Pets (4) P P P P P P N P P N N N N N N
Animal Keeping, Exotic
Animals (4) P P P P P P N P P N N N N N N
Animal Keeping, Livestock
(4) N N N N N P N N N N N N N N N
Animal Keeping, Poultry,
Rabbits (4) P P C C C P N N N N N N N N N
Equestrian Facility,
Commercial N N N N N C N N N N N N C N N
Equestrian Facility, Hobby N N N N N P N N N N N N C N N Kennels, Hobby N N N N N C N N N N N N N N N
Recreation, Education, and Public Assembly Uses
Cemeteries, Mausoleums C C C C C C N N N N N N N N N
Clubs, Lodges, and
Private Meeting Halls C C C C N N N N C C C N N C C
Community Centers/Civic
Uses C C C C C C N C C C N N P P C
Community Garden P P P P P P N P P P P P P P N
Indoor
Amusement/Entertainment
Facility

N N N N N N C N C N N N N N N
Indoor Fitness and Sports
Facility N N N N N N P C N C C N N P N
Libraries and Museums C C C C N N N C C C C N N C C
Outdoor Commercial
Recreation

C C C C N N N N N N N N P P C
Parks and Public Plazas P P P P P P N P P P P N P P P
Public Safety Facility P P P P P P P C C C C N C P C

Land Use \ Zoning
District LDR R-1 R-2 R-3 R-4 R RC RMU CMU OPMU OIMU OS PR PQI SPBCA Recreational Vehicle
Parks N N N N N N N N N N N N N N N
Religious Institutions C C C C C C N N C C C N N C C
Resource Protection and
Restoration P P P P P P C N N N N P P P P
Resource-Related
Recreation P P P P P P N N N N N P P P P
Schools, Private and
Special/Studios N N N N N N P N C C C N N N N
Schools, Public P P P P P P N P P P P N N P N
Theaters and Auditoriums N N N N N N P N N N N N N N N
Utility, Transportation, and Communication Uses
Broadcasting and
Recording Studios N N N N N N P N N N N N N P N
Bus and Transit Shelters N P P P P N P P P P P N P P P
Bus and Truck Terminal
and Parking N N N N N N N N N N C N N N N
Heliports N N N N N N N N N N N N N N N
Park and Ride Facility N N C C N N P C C C C N N P N
Parking Facility N N P P P N P P P P P N N P N
Small Cell Wireless
Facilities (14) P/C P/C P/C P/C P/C P/C P/C P/C P/C P/C P/C N P/C P/C N Wireless Communication
Facility, Freestanding
Tower (5)

C C C C C C C C C C C C C C C
Wireless Communication
Facility, co-location,
antenna, satellite (5)

C C P P P P P P P P P P P P P
Transit Facilities N N N N N N P N N C C N N P C
Utility Facility and
Infrastructure (6) P P P P P P P P P P P P P P P
Retail, Service, and Office Uses
Adult Oriented Business
(7) N N N N N N N N N N C N N N N
Adult Day Care Facility C C C C P N N P C N N N N N C
Alcoholic Beverage Sales N N N N N N C C C C C N N N N
Ambulance Service N N N N N N N C N N P N N N N
Animal Sales and
Grooming N N N N N N P C C P P N N N N
Art, antique, collectable N N N N N N P P P C C N N N N Artisan Shops N N N N N N P P P P C N N N N
Artist Studio N N P P P P N C C C P N N N N
Banks and Financial
Services N N N N N N P P P P C N N N N
Bars and Nightclubs N N N N N N C C C C N N N N N
Bed and Breakfast Inns N N N N N N N C C N N N N N N
Building Materials Store
and Yard N N N N N N P N C N C N N N N
Business Support
Services

N N N N N N P P P P P N N N N
Call Centers N N N N N N N C C P P N N N N
Card Room N N N N N N C C C N N N N N N

Land Use \ Zoning District LDR R-1 R-2 R-3 R-4 R RC RMU CMU OPMU OIMU OS PR PQI SPBCA Check Cashing Business N N N N N N N N C C C N N N N
Child Day Care Facility C C C C C N C P P P C N N N N
Commercial Marijuana
Cultivation(11) N N N N N N N N N N N N N N N
Convenience Stores N N N N N N P P P P P N N N N
Drive-in and Drive-through
Sales and Service (8) N N N N N N P N C C C N N N N
Equipment Sales and
Rental N N N N N N C N P C P N N N N
Firearm or Firearm
Ammunition Sales N N N N N N C N C N C N N N N
Furniture, Furnishings,
and Appliance Stores N N N N N N P C P C C N N N N
Garden Center/Plant
Nursery N N N N N N C N C C P N N N N
Grocery
Stores/Supermarket N N N N N N P P P C N N N N N
Home Improvement
Supplies N N N N N N P C C C C N N N N
Hotels and Motels N N N N N N P C C C N N N N N
Hotels and Motels,
Extended Stay N N N N N N P C C C N N N N N
Kennels, Commercial N N N N N C N N C N C N N N N
Maintenance and Repair,
Small Equipment N N N N N N P C C C P N N N N
Marijuana Delivery(12) N N N N N N N N N N N N N N N
Marijuana Dispensary(10) N N N N N N N N N N N N N N N
Massage Therapy
Establishment (9) N N N N N N C P P P C N N N N
Medical Services, General N N N N N N P C C P P N N N N Medical Services,
Extended Care N N N N N N N C C C N N N N N
Medical Services,
Hospitals N N N N N N N N C P N N N N N
Mortuaries and Funeral
Homes N N N N N N N N C C P N N N N
Neighborhood Market N N N N N N N P P C C N N N N
Office, Temporary N N N N N N N N C P P N N N N
Offices, Business and
Professional N N N N N N P P P P P N N N N
Offices, Accessory N N N N N N P P P C P N N N N
Pawn Shop N N N N N N C N C C C N N N N
Personal Marijuana
Cultivation(13) P P P P P P N P P P P N N N N
Personal Services N N N N N N P P P C N N N N N
Restaurants N N N N N N P C P P P N N N N
Retail, Accessory N N N N N N P P P P P N N N N
Retail, General N N N N N N P P P P C N N N N
Retail, Warehouse Club N N N N N N P N C N N N N N N
Smoke Shop N N N N N N N N C N N N N N N
Temporary Real Estate C C C C C C C C C C C N N N N
Thrift Store N N N N N N C C C N N N N N N
Veterinary Facility N N N N N N C C C C C N N N N

Land Use \ Zoning District LDR R-1 R-2 R-3 R-4 R RC RMU CMU OPMU OIMU OS PR PQI SPBCA Automobile and Vehicle Uses
Alternative Fuel Station
(15)(16) P P P P P P P P P P P P P P P
Auto and Vehicle Sales
and Rental N N N N N N C N C C C N N N N
Auto and Vehicle Sales,
Wholesale N N N N N N N N N N C N N N N
Auto and Vehicle Storage N N N N N N N N N N C N N N N
Auto Parts Sales N N N N N N P N N N P N N N N
Car Washing and
Detailing N N N N N N C N C C C N N N N
Service Stations (15) N N N N N N NC N NC NC NC N N N N Vehicle Services, Major N N N N N N C N C N C N N N N
Vehicle Services, Minor N N N N N N C N C N C N N N N
Industrial, Manufacturing, and Processing Uses
Manufacturing, Major N N N N N N N N N C C N N N N
Manufacturing, Minor N N N N N N N N C C P N N N N
Manufacturing, Small
Scale N N N N N N N C C P P N N N N
Printing and Publishing N N N N N N N N C C P N N N N
Recycling Facility,
Collection N N N N N N C C C C C N N N N
Recycling Facility,
Processing N N N N N N N N N C C N N N N
Recycling Facility, Scrap
and Dismantling Facility N N N N N N N N N N C N N N N
Research and
Development N N N N N N N C P P P N N N N
Storage, Personal Storage
Facility N N N N N N C N C N P N N N N
Storage, Warehouse N N N N N N N N N C P N N N N
Storage, Yards N N N N N N N N N N C N N N N
Wholesaling and
Distribution N N N N N N N N N N C N N N N
Notes:
(1) See additional regulations for Accessory Dwelling Units and Junior Accessory Dwelling Units inChapter 17.70. (2) See additional regulations for Emergency Shelters in Chapter17.62. (3) See additional regulations for Home Occupations in Chapter17.64. (4) Additional regulations applicable to animal keeping where permitted are as follows and within Title 6:
a. Domestic Pets. Keeping of any combination of five (5) or more cats and dogs is considered a kennel for the purposes of this title.
b. Exotic Animals. All exotic animals shall be kept and maintained a minimum distance of 40 feet from any property line, unless contained within the dwelling.
c. Livestock. One (1) livestock animal may be permitted for each twenty thousand (20,000) square feet. All livestock animals shall be kept and maintained a minimum distance of twenty (20) feet from any property line and a minimum distance of fifty (50) feet from any residential dwelling.
d. Poultry and Rabbits. All poultry animals shall be kept and maintained a minimum distance of twenty (20) feet from any property line.
(5) See additional regulations for wireless communication facilities in Chapter17.76.

(6) Utility facilities and infrastructure involving hazardous or volatile gas and/or liquid pipeline development require approval of a conditional use permit.
(7) See additional regulations for adult entertainment businesses in Chapter17.58 (8) See additional regulations for drive-in and drive-through facilities in Chapter17.40. (9) See additional regulations for massage therapy in Chapter17.66 and Chapter 8.32 (10) Marijuana dispensaries are not permitted in any zoning district. See also, Chapter 5.64 and Chapter 8.33. (11) Commercial Marijuana Cultivation is not permitted in any zoning district. See also, Chapter 5.64 and Chapter 8.33. (12) Marijuana Delivery is not permitted in any zoning district. See also, Chapter 5.64 and Chapter 8.33. (13) Personal Marijuana Cultivation is limited to up to six plants per residence, grown indoors within a locked area, by adults 21 years of age or older. See also, Chapter 8.33.
(14) Facilities meeting all specified requirements in Chapter 17.77 are permitted as noted above except in the Open Space (OS) and San Pablo Bay Conservation Area (SPBCA) District, otherwise a conditional use permit is required. See additional regulations for small cell wireless facilities in Chapter 17.77.
(15)
See additional regulations for service stations and alternative fuel stations in Chapter 17.34. (Ord. 2024-09 § 2, 2024; Ord. 2020-04 § 2, 2020; Ord. 2019-03 § 4, 2019; Ord. 2017-14 § 2 (part), 2017; Ord. 2017-11 § 2, 2017; Ord. 2017-08 § 2 (part), 2017; Ord. 2016-04 § 6, 2016: Ord. 2016-03 § 2 (part), 2016; Ord. 2014-02 § 4, 2014: Ord. 2012-05 § 2, 2012: Ord. 2011-02: Ord. 2010-02 § 1 (part), 2010)

3. Pinole Municipal Code Chapter 17.22 Allowed Use Definitions [Amendment]
Excerpt of Section 17.22.020(G).

Text to be removed shown in strikeout text.

Text to be added shown in underline text.

CHAPTER 17.22

ALLOWED USE DEFINITIONS
Sections:

17.22.010 Purpose.

17.22.020 Allowed use definitions.

17.22.010 PURPOSE.

The purpose of this chapter is to define use classifications listed in Chapter17.20 (Allowed Land Uses and Required entitlements) and throughout this title. Use classifications are land uses that have been grouped into general categories on the basis of common function, product, or compatibility characteristics. This chapter should be used as a reference to Additional definitions for specialized terms used in the Zoning Code can be found in Article VI (Glossary). (Ord. 2010-02 § 1 (part), 2010)

17.22.020 ALLOWED USE DEFINITIONS.
[…]
G. Automobile and Vehicle uses.

1. AUTO AND VEHICLE SALES AND RENTAL. Retail establishments selling and/or renting automobiles, trucks, and vans. Includes the sales and rental of mobile homes, recreation vehicles, and boats. May also include repair shops and the sales of parts and accessories, incidental to vehicle dealerships. Does not include the sale of auto parts/accessories separate from a vehicle dealership (see “Auto Parts Sales”), bicycle and moped sales (see “Retail, General”), tire recapping establishments (see “Vehicle Services - Major”), businesses dealing exclusively in used parts (see “Recycling Facility - Scrap and Dismantling”), or “Service Station,” all of which are separately defined.

2. AUTO AND VEHICLE SALES, WHOLESALE. Wholesale establishments selling new and used vehicles and used vehicle parts. This use is normally developed as part of an auto wrecking, junkyard, or salvage yard. Conventional automobile dealerships are listed under “Auto and Vehicle Sales and Rental.”

3. AUTO AND VEHICLE STORAGE. Facilities for the storage of operative and inoperative vehicles for limited periods of time. Includes, but is not limited to, storage of parking tow-aways, impound yards, and storage lots for automobiles, trucks, buses, and recreation vehicles. Does not include retail sales (see “Auto and Vehicle Sales, Wholesale”).

4. AUTO PARTS SALES. Stores that sell new automobile parts, tires, and accessories. May also include minor parts installation (see “Vehicle Services”). Does not include tire recapping establishments, which are found under “Vehicle Services - Major” or businesses dealing exclusively in used parts, which are included under “Auto and Vehicle Sales, Wholesale.”

5. CAR WASHING AND DETAILING. Permanent, drive-through, self-service, and/or attended car washing establishments, including fully mechanized facilities. May include detailing services. Temporary car washes (e.g., fundraising activities generally conducted at a service station or other automotive-related business, where volunteers wash vehicles by hand, and the duration of the event is limited to one (1) day) are not part of this use classification.

6. SERVICE STATION. A retail business selling and dispensing fossil fuels, including gasoline and diesel, for motor vehicles. Service stations may include the sale of other motor vehicle fuels gasoline or other motor vehicle fuels. Vehicle services which are incidental to fuel services are included under “Vehicle Services - Minor.”

7. ALTERNATIVE FUEL STATION. A retail business selling and dispensing motor vehicle fuel other than fossil fuels, including hydrogen, electricity, biofuel, or any other renewable fuel. Vehicle services which are incidental to fuel services are included under “Vehicle Services - Minor.”

8.7. VEHICLE SERVICES - MAJOR.The repair, alteration, restoration, towing, painting, cleaning (e.g., self-service and attended car washes), or finishing of automobiles, trucks, recreational vehicles, boats, and other vehicles as a primary use, including the incidental wholesale and retail sale of vehicle parts as an accessory use. This use includes major repair and body work-repair facilities dealing with entire vehicles; such establishments typically provide towing, collision repair, other body work, and painting services and may also include tire recapping establishments.

9.8. VEHICLE SERVICES - MINOR. Minor facilities specialize in limited aspects of repair and maintenance (e.g., muffler and radiator shops, quick-lube, and smog check). Does not include repair shops that are part of a vehicle dealership on the same site (see “Auto and Vehicle Sales”) or automobile dismantling yards, which are included under “Recycling Facility - Scrap and Dismantling.”
[…]

(Ord. 2024-09 § 2, 2024; Ord. 2020-04 § 2, 2020; Ord. 2017-08 § 2 (part), 2017; Ord. 2016-04 §§ 4-5, 2016:

Ord. 2012-05 §
3, 2012: Ord. 2010-02 § 1 (part), 2010)

4. Pinole Municipal Code Chapter 17.34 Automobile Service Stations [Amendment]
Full Chapter included.

Text to be removed shown in strikeout text.

Text to be added shown in underline text.

CHAPTER 17.34

AUTOMOBILE SERVICE STATIONS AND ALTERNATIVE FUEL STATIONS

17.34.010 Purpose.

17.34.020 Applicability.

17.34.030 Operation and modification of Service StationsPermit requirements and conditions of approval.

17.34.040 Location requirements.

17.34.050 Development and design standards for Service Stations and Alternative Fuel Stations.

17.34.060 Alternative fuel and charging stations for electric vehicles.

17.34.010 PURPOSE.

The purpose of this chapter is to regulate legal nonconforming service station modifications and alternative fuel station development to ensure that the design and operation of such uses are compatible with surrounding uses and activities relative to hazardous materials, noise, circulation, runoff, lighting, and litter, and consistent with the City’s goals and policies, including the Climate Action and Adaptation Plan while encouraging and incentivizing the expansion, modification, or retrofit of existing service stations to incorporate biodiesel or other alternative fuels and electric vehicle charging infrastructure. This chapter is also intended to allow for expansion of existing service stations to allow for biodiesel and other alternative fuels and the incorporation of charging stations for electric vehicles. (Ord. 2010-02 § 1 (part), 2010)

17.34.020 APPLICABILITY.

The regulations contained in this chapter shall apply to legal nonconforming new service stations and alternative fuel stations. Service stations subject to this chapter shall only be authorized through entitlement requirements of Article II. (Zoning Districts, Allowed Uses, and Development Standards). These regulations shall be in addition to any other development standards and regulations contained elsewhere within the Zoning Code (e.g., lighting). Existing service stations and modification to existing service stations are exempt from the regulations contained in this chapter. (Ord. 2010-02 § 1 (part), 2010)

17.34.030 OPERATION AND MODIFICATION OF SERVICE STATIONSREQUIREMENTS AND CONDITIONS OF APPROVAL.

A. Operation of Service Stations. New service stations are prohibited. Existing legal nonconforming service station uses may continue to operate, subject to the following:Permit Requirement. Service stations require a conditional use permit or are allowed by right as established in Article II (Zoning Districts, Allowed Uses, and Development Standards). Comprehensive design review pursuant to Section 17.12.150 (Comprehensive Design Review) shall be required for all new service stations.

Consistent with Article II. (Zoning Districts, Allowed Uses, and Development Services), the Planning Commission is the designated approving authority for service station conditional use permit applications.

1. The number of fossil fuel pumps shall not be increased to exceed the existing number at the service station site.

2. If the number of fossil fuel pumps are permanently reduced, meaning the pump or pumps are fully removed rather than temporarily out of service, no subsequent actions may increase the number of fossil fuel pumps to the number that existed prior to the reduction.

3. Fossil fuel equipment and infrastructure may be repaired, replaced, and/or relocated on the same site where required to ensure preservation of health and safety consistent with regulatory standards; comply with regional, state or federal requirements; reduce fossil fuel use; or support the deployment of alternative fuel infrastructure. Replacement and relocation shall be subject to the requirements under Section 17.34.030(B).

4. Existing service stations shall lose nonconforming status if conditions occur as described in Section 17.34.030(C).

B. Conditions of Approval. In addition to any other conditions which may be imposed by the approving authority, any conditional use permit issued pursuant to this chapter shall include the following conditions:

1. If the operation of the service station is discontinued for any reason for a continuous period in excess of one hundred and eighty (180) days, such discontinuance of operation shall be grounds for revocation or modification of the conditional use permit, consistent with Section 17.16.070 (Permit Revocation or Modification).

2. Upon revocation of the conditional use permit, the applicant shall remove all buildings, pumps, pump islands, signs, underground storage tanks, fences, walls, and all other structures and instruments related to the service station and shall return the property to substantially the condition it was in prior to the construction of the service station.

3. The applicant to whom a conditional use permit has been granted shall keep on the premises the conditional use permit or a copy thereof.

Renovations and Modifications of Service Stations. Renovations and modifications of service stations may be conducted, subject to the following: