Pinole City Council
April 7, 2026

joint community facilities agreement or joint exercise of powers agreement.

Staff introduced the RAC JPA to the City Council on December 2, 2025, followed by a detailed presentation by the Contra Costa Clean Water Program.

REVIEW AND ANALYSIS
How the RAC System Works:

The RAC System creates a countywide marketplace in which Off-Site GSI projects - facilities intentionally constructed to treat stormwater from areas beyond their immediate footprint - generate standardized “compliance units.” These units are quantified based on the drainage area treated, pollutant removal performance, rainfall zone, and land use characteristics (Attachment C - CCC RAC System Overview, pp. 33–38).

Once certified by the local jurisdiction where they are located, Off-Site GSI projects can make their compliance units available for purchase. Public agencies or private developers who cannot feasibly meet on-site stormwater retention requirements may instead purchase sufficient units to meet their MRP obligations (Attachment D - Fact Sheet, p. 1). The purchaser also pays for maintenance of the Off-Site GSI projects to ensure the long-term performance of the Off-Site GSI project.

Why a JPA is Needed:

The Joint Powers Agreement (Attachment B) establishes a governance structure for administering the RAC System. The JPA is authorized to manage the financial, administrative, and regulatory responsibilities that accompany the program, including forming a Community Facilities District (CFD) under the Mello-Roos Act to levy special taxes on private properties that voluntarily choose to participate in the RAC System (Participating Properties) to fund maintenance of the Off-Site GSI projects.

Pursuant to the Mello-Roos Act, in order for the JPA to form a CFD that may include Participating Properties in the City (either at the time of CFD formation or by annexation to the CFD) and levy special taxes to finance maintenance of Off-Site GSI projects, the JPA and the City must enter into a joint community facilities agreement or joint exercise of powers agreement. (Attachment - JPA Recitals; Sections 6 & 8). The JPA can efficiently levy the special tax under the Mello-Roos Act without the need for each individual participant to establish a new CFD within their jurisdiction. Because public agencies are not subject to CFD special taxes, the JPA would collect a separate fee from public agencies that purchase compliance credits through the RAC System.

The CFD provides a stable, predictable revenue stream to maintain Off-Site GSI facilities, which is essential to ensuring the continued functionality of systems relied upon for compliance. Public agencies that purchase compliance units pay directly to the JPA rather than through property tax mechanisms, which simplifies public-sector participation.

Benefits of RAC Participation to the City of Pinole:

The RAC System offers several benefits that are particularly important for agencies seeking

flexible, affordable ways to meet stormwater regulations.

1. It provides a solution for constrained project sites where onsite GSI is impractical.

Rather than granting variances or requiring redesigns, staff can direct applicants to a consistent, regionally approved alternative compliance mechanism.

2. It supports more cost-effective stormwater treatment. Large regional GSI facilities can achieve economies of scale, reducing both upfront construction and ongoing maintenance costs per acreage treated compared to multiple small installations dispersed across the City (Attachment D - Fact Sheet, p. 2).

3. RAC participation aligns with regional water quality goals. Off-Site GSI facilities can be strategically located in areas with high legacy pollutant loads, helping the City make measurable progress toward PCBs and other TMDL targets.

4. RAC participation reduces local administrative burden. The RAC Tracking Tool - maintained by the JPA - stores compliance unit records, tracks buyer/seller transactions, ensures proper verification and maintenance documentation, and houses all regulatory reporting materials (Attachment C - CCC RAC System Overview, p. 40).

Without participation in the JPA, these administrative tasks would fall solely on local staff.

Consistent with City Policy and Regional Regulations:

Participation in the RAC JPA is consistent with the City’s obligation to comply with state and federal water quality regulations. Furthermore, the program supports regional GSI planning efforts and broad sustainability policies that encourage multi-benefit infrastructure projects, pollutant reduction, and improvements in water quality.

RAC participation can benefit development projects within Pinole, as well as the City’s capital improvement projects. The City can leverage Off-Site GSI to cost-effectively achieve its GSI retrofit targets by the June 30, 2027, deadline (C.3.j Retrofit Targets) and future MRP 4 permit requirements. Participating in the RAC System can also help the City meet the collective goal of achieving PCBs TMDL (C.12.c Requirements) set for the San Francisco Bay Area since Pinole does not have old industrial areas for moderate PCB loads.

Joint Community Facilities Agreement:

Pursuant to the Mello-Roos Act, in order for the JPA to form a CFD that may include Participating Properties in the City (either at the time of CFD formation or by annexation to the CFD) and levy special taxes to finance maintenance of Off-Site GSI projects, the JPA and the City must enter into a joint community facilities agreement or joint exercise of powers agreement.

The attached Resolution provides that the JPA Agreement, together with the Resolution constitutes a joint community facilities agreement. The Resolution authorizes the JPA to undertake and conduct proceedings under the Mello Roos Act to form the CFD with boundaries that include Participating Properties within the City’s jurisdiction, to annex Participating Properties within the City’s jurisdiction to the CFD, and to levy a special tax on such Participating Properties; provided that the owners of the Participating Properties at the time of formation of the CFD or annexation to the CFD, as applicable, execute a ballot or

unanimous approval in favor of the levy of the special tax in accordance with the Mello-Roos Act.

FISCAL IMPACT
Participation in the RAC JPA will require the City to contribute to the JPA’s annual operating cost, which, under the JPA Agreement, is shared equally among all member agencies unless modified by agreement (Attachment B - JPA Agreement, Section 17). The amount of this cost will be presented separately upon confirmation of the final annual budget from the JPA Board.

The amount is expected to be nominal because the cost of administering the CFD - the primary function of the JPA - will be paid for out of special taxes collected by the CFD.

Participation may also generate revenue for the City when staff carry out responsibilities such as Off-Site GSI verification or buyer approvals, as jurisdictions receive payment for performing these duties (Attachment C - CCC RAC System Overview, pp. 13–14, 27). There is no fiscal obligation for Off-Site GSI maintenance associated with private development projects, because CFD special taxes cover these costs. Public agency buyers fund Operations and Maintenance directly through agreements with the JPA (Attachment D - Fact Sheet, p. 1; System Overview, pp. 16, 22).

At this time, staff anticipates that JPA membership costs can be absorbed within the City’s existing stormwater program budget. If adjustments or supplemental appropriations become necessary, staff will return to the City Council with recommendations.

ATTACHMENTS
A. Resolution
B. RAC JPA Joint Powers Agreement
C. CCC RAC System Overview
D. CCC RAC System Fact Sheet

RESOLUTION NO. 2026-XX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PINOLE,

COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA, APPROVING THE JOINT

POWERS AGREEMENT BETWEEN PARTICIPATING CITIES, CONTRA COSTA

COUNTY, AND THE CONTRA COSTA FLOOD CONTROL AND WATER

CONSERVATION DISTRICT TO CONSTITUTE THE CONTRA COSTA COUNTY

REGIONAL ALTERNATIVE COMPLIANCE JOINT POWERS AUTHORITY AND

IMPLEMENT THE CONTRA COSTA COUNTY REGIONAL ALTERNATIVE
COMPLIANCE SYSTEM; AUTHORIZING THE JOINT POWERS AUTHORITY TO

ESTABLISH ONE OR MORE COMMUNITY FACILITIES DISTRICTS, ACCEPT

APPLICATIONS FROM PROPERTY OWNERS, ANNEX PROPERTIES TO THE

COMMUNITY FACILITIES DISTRICT, AND LEVY SPECIAL TAXES TO FINANCE

ON-GOING MAINTENANCE COSTS FOR OFF-SITE GSI PROJECTS

CONSTRUCTED PURSUANT TO THE REGIONAL ALTERNATIVE COMPLIANCE SYSTEM WITHIN OR OUTSIDE THE TERRITORY OF THE CITY OF PINOLE; AND

APPROVING A JOINT COMMUNITY FACILITIES AGREEMENT
WHEREAS, the City of Pinole is a “public agency,” as defined in the Joint Exercise of Powers Act, California Government Code Section 6500, et seq., and is authorized to enter into an agreement to exercise powers common to the member public agencies; and
WHEREAS, the City of Pinole desires to participate in the Contra Costa County Regional Alternative Compliance (“RAC”) System, which is a program designed to offer a flexible, cost-effective, and scientifically defensible compliance option for the Municipal Regional Stormwater National Pollutant Discharge Elimination System ("NPDES") Permit issued by the San Francisco Bay Regional Water Quality Control Board, Permit No.

CAS612008; and
WHEREAS, the proposed Joint Powers Authority (“JPA”) is being formed to (i) establish a Community Facilities District (“CFD”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (“Mello-Roos Act”) in order to finance ongoing maintenance costs for “Off-Site GSI Projects” constructed pursuant to the RAC System, and (ii) take other actions in furtherance of the RAC System; and WHEREAS, a joint exercise of powers agreement between participating cities, Contra Costa County, and the Contra Costa Flood Control and Water Conservation District has been prepared to establish the proposed JPA that will implement the RAC System; and
WHEREAS, the proposed agreement will take effect on the earlier of July 1, 2026, provided that two proposed member agencies have executed the agreement by such date, or when all proposed member agencies have executed the agreement; and

WHEREAS, with respect to the CFD:
(1) the JPA may establish the CFD to finance the maintenance of Off-Site GSI Projects pursuant to Section 53313.5(f) of the Mello-Roos Act, which authorizes community facilities districts to finance the acquisition, improvement, rehabilitation, or maintenance of any real or other tangible property, whether privately or publicly owned, for flood and storm protection services, including, but not limited to, storm drainage and treatment systems; and
(2) the City of Pinole desires to allow the owners (“Participating Owners”) of property being developed within its jurisdiction (“Participating Properties”) to participate in the CFD in order to finance ongoing maintenance costs for Off-Site GSI Projects constructed pursuant to the RAC System, whether those Off-Site GSI Projects are located within the boundaries of the City of Pinole or not, and to allow the JPA to conduct proceedings to form the CFD, annex Participating Properties to the CFD and levy special taxes on such Participating Properties; and
(3) both the JPA and the City of Pinole are “local agencies” under the MelloRoos Act; and (4) the Mello-Roos Act permits two or more local agencies to enter into a joint community facilities agreement or joint exercise of powers agreement to exercise any power authorized by the Mello-Roos Act; and
(5) the City of Pinole desires to enter into such an agreement with the JPA to authorize the JPA to form the CFD and annex to the CFD Participating Properties located within the territorial limits of the City of Pinole for the purpose of financing the maintenance of Off-Site GSI Projects, whether those Off-Site GSI Projects are located within the boundaries of the City of Pinole or not; and (6) the City of Pinole will not be responsible for the conduct of any proceedings to form the CFD, annex Participating Properties to the CFD, levy or collect special taxes, or any required remedial action in the case of delinquencies in such special tax payments.

NOW, THEREFORE BE IT RESOLVED THAT, the City Council of the City of Pinole hereby determine, find and resolve as follows:

Section 1: The City of Pinole hereby approves the “Joint Powers Agreement Between Participating Cities, Contra Costa County, and the Contra Costa Flood Control and Water Conservation District for Implementation of the Contra Costa County Regional Alternative Compliance System,” attached hereto as Exhibit “A” to this Resolution.

Section 2: Prior to the effective date of the Agreement, the City of Pinole hereby authorizes minor and technical revisions to the Agreement approved in Section 1 that do not change the overall intent of the Agreement or increase liability or cost exposure.

Section 3: The City Council authorizes the Interim City Manager to execute the Agreement.

Section 4: Direct staff to take such actions as necessary to participate in the RAC System, including preparation of an ordinance to revise the City’s stormwater ordinance to incorporate participation in the RAC System as an approved alternative compliance for meeting applicable stormwater treatment requirements.

Section 5: Authorize staff to collaborate with the RAC JPA Administrator to support RAC System implementation.

Section 6: The Agreement, together with the terms and provisions of this Resolution, shall constitute a separate joint community facilities agreement between the City of Pinole and the JPA under the Mello-Roos Act for the CFD. The City hereby authorizes the JPA to form one or more community facilities districts to accomplish the purposes of this Resolution, and each such community facilities district shall constitute a CFD as that term is used in this Resolution.

The adoption by the JPA of a resolution of intention to form the CFD under the Mello-Roos Act to finance on-going maintenance costs for Off-Site GSI Projects constructed pursuant to the RAC System shall constitute acceptance by the JPA of the terms of this Resolution with respect to such CFD.

This Resolution shall constitute full approval under Section 8.2 of the Agreement for the JPA to undertake and conduct proceedings under the Mello Roos Act to form the CFD with boundaries that include Participating Properties within the City of Pinole’s jurisdiction, to annex Participating Properties within the City of Pinole’s jurisdiction to the CFD, and to levy a special tax on such Participating Properties; provided that the Participating Owners, who shall be the legal owners of such property at the time of formation of the CFD or annexation to the CFD, as applicable, execute a ballot or unanimous approval in favor of the levy of the special tax in accordance with the Mello-Roos Act.

The City of Pinole City Council hereby determines that the Agreement, together with the terms and provisions of this Resolution, are beneficial to the residents/customers of the City of Pinole and of the future residents of the area within the CFD.

The City of Pinole City Council hereby determines that all of the Off-Site GSI Projects constructed pursuant to the RAC System that will be maintained by Participating Properties within the City of Pinole’s jurisdiction are necessary to meet increased demands placed upon the City of Pinole as a result of development occurring or expected to occur within the City of Pinole.

The City of Pinole City Council hereby consents to the formation of, and annexation of Participating Properties to, the CFD in accordance with this Resolution, and consents to the assumption of jurisdiction by the JPA for the proceedings respecting the CFD with the understanding that the JPA will hereafter take each and every step required for or suitable for consummation of the proceedings to form the CFD or annex Participating Properties to the CFD, and the levy, collection and enforcement of the special tax, all at no cost to the City of Pinole and without binding or obligating the City of Pinole’s general fund or taxing authority.

The City of Pinole City Council hereby authorizes and directs appropriate officials and staff of the City of Pinole to execute and deliver such certificates, agreements and documents, and to take all such other lawful actions, as are reasonably required by the JPA in accordance with the formation of the CFD, the annexation of Participating Properties to the CFD, the levy of special taxes and the financing of on-going maintenance costs for Off-Site GSI Projects constructed pursuant to the RAC System.

PASSED AND ADOPTED at a regular meeting of the Pinole City Council held on the 7th day of April 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 the 7th day of April 2026.
____________________________
Heather Bell-Spears, CMC
City Clerk

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JOINT POWERS AGREEMENT
Between Participating Cities, Contra Costa County, and the Contra Costa Flood Control and Water Conservation District to Establish the Contra Costa County Regional Alternative Compliance Joint Powers Authority for
Implementation of the Contra Costa County Regional Alternative Compliance System This Joint Powers Agreement (“Agreement”) dated July 1, 2026, is made and entered into pursuant to the provisions of Title 1, Division 7, Chapter 5, Article 1 (Section 6500 et seq.) of the California Government Code relating to the joint exercise of powers among [INSERT FINAL LIST OF PARTICIPATING AGENCIES] (collectively, “Member Agencies” and each, individually, a “Member Agency”). The term “Member Agencies” shall also include a public agency added to this Agreement in accordance with Section 14.

RECITALS
A. The joint powers authority (“JPA”) formed pursuant to this Agreement to administer the Contra Costa County Regional Alternative Compliance (“RAC”) System is authorized to (i) establish a community facilities district pursuant to the Mello-Roos Community Facilities Act of 1982 (“Mello-Roos Act”) in order to finance on-going maintenance costs for “Off-Site GSI Projects” constructed pursuant to the RAC System, and (ii) take other actions in furtherance of the RAC System.

B. The RAC System is a program designed to offer a flexible, cost-effective, and scientifically defensible compliance option for the Municipal Regional Permit’s development provisions requiring post-construction stormwater treatment. The Municipal Regional Permit is a Municipal Regional Stormwater National Pollutant Discharge Elimination System ("NPDES") Permit issued by the San Francisco Bay Regional Water Quality Control Board, Permit No. CAS612008.

C. The RAC System allows the owners of regulated developments and certain public agencies (buyers) to purchase “compliance units” in green stormwater infrastructure (GSI) treatment facilities or “Off-Site GSI Projects” constructed elsewhere within the County.

D. The developers of the Off-Site GSI Projects, which may be public agencies or private entities, generate the “compliance units” that can be exchanged through the RAC System and purchased by the buyers (owners of the regulated developments and public agencies that cannot treat stormwater on their own sites). Private buyers will contribute to the cost of operating and maintaining the Off-Site GSI Projects by annexing their development sites into the proposed community facilities district formed by the JPA. Public agencies that are buyers will pay fees directly to the JPA as an alternative funding mechanism because such public agencies cannot be levied a special tax under the proposed community facilities district.

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AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions hereinafter set forth, it is agreed by and among the Member Agencies as follows:

1. DEFINITIONS
Capitalized terms used in the Agreement shall have the meanings specified below, unless the context requires otherwise.

1.1 “Act” means the Joint Exercise of Powers Act of the State of California (Government Code Section 6500 et seq.).

1.2 “Agreement” means this Joint Powers Agreement.

1.3 “Board” means the Board of Directors for the Joint Powers Authority.

1.4 “Effective Date” means the date on which this Agreement shall become effective and the JPA shall exist as a separate public agency, as further described in Section 5.

1.5 “JPA” means the Contra Costa County Regional Alternative Compliance Joint Powers Authority.

1.6 “Off-Site GSI Project” means a green stormwater infrastructure project eligible to exchange compliance credits under the RAC System.

1.7 “RAC System” means the Contra Costa County Regional Alternative Compliance System.

2. NAME OF THE JPA
The JPA shall be known as the Contra Costa County Regional Alternative Compliance Joint Powers Authority.

3. PURPOSE
The purpose of this Agreement is to establish an independent public agency in order to exercise powers common to each Member Agency and any other powers granted to the JPA under applicable law, including the Act and the Mello-Roos Act. The JPA shall administer the RAC System.

4. ESTABLISHMENT OF THE JPA

4.1 Separate Legal Entity. The JPA, as a joint powers authority, is a separate entity from the Member Agencies and is responsible for the administration of this Agreement.

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4.2 Filing of Notices with Secretary of State and County Clerk. Within thirty (30) days after the Effective Date of this Agreement, the JPA shall cause a notice of this Agreement to be prepared and filed with the office of the California Secretary of State and the State Controller containing the information required by California Government Code Section 6503.5.

4.3 Filing of Notices with County and LAFCO. Within seventy (70) days after the Effective Date of this Agreement, the JPA shall cause a statement of the information concerning the JPA, required by California Government Code Section 53051, to be filed with the office of the California Secretary of State, the Contra Costa County Clerk, and the Contra Costa County Local Agency Formation Commission (LAFCO) stating the facts required to be stated pursuant to subdivision (a) of Government Code Section 53051.

5. TERM
The Agreement shall become effective upon the earlier date of July 1, 2026, provided that two Member Agencies have executed the Agreement by such date, or when all Member Agencies have executed the Agreement (“Effective Date”). The Agreement will remain effective until the JPA is dissolved through procedures outlined in Section 18 of this Agreement.

6. POWERS AND OBLIGATIONS OF THE JPA

6.1 General Powers. The JPA shall have the power in its own name to exercise any and all common powers of its Member Agencies and such additional powers accorded to it by law reasonably related to the purposes of the JPA, including, but not limited to, the powers to:
a. Acquire, lease, construct, own, manage, maintain, dispose of or operate (subject to the limitations herein) any buildings, works or improvements within the boundaries of the Member Agencies deemed necessary by the Board to implement the RAC System; b. Acquire, hold, manage, maintain, or dispose of any other property within the boundaries of the Member Agencies by any lawful means, including without limitation gift, purchase, lease, lease-purchase, license, eminent domain or sale to support the RAC System; c. Seek, receive, and administer funding from any available public, nonprofit, foundation or private source, including grants or loans under any available Federal, State and local programs to support the RAC System;
d. Make and enter into other contracts;
e. Form and implement one or more community facilities districts pursuant to the Mello-Roos Act;
f. Incur all authorized debts, liabilities, and obligations, subject to the limitations herein to accomplish the stated purposes and objectives of the JPA;

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g. Receive gifts, contributions and donations of property, funds, services and other forms of financial or other assistance from any persons, firms, corporations or governmental entities;
h. Sue and be sued in its own name;
i. Seek the adoption or defeat of any Federal, State or local legislation or regulation necessary or desirable to accomplish the stated purposes and objectives of the JPA; j. Adopt rules, regulations, policies, bylaws and procedures governing the operation of the JPA;
k. Invest money pursuant to California Government Code Section 6505.5 that is not required for the immediate necessities of the JPA, as the JPA determines is advisable, in the same manner and upon the same conditions as local agencies, pursuant to Section 53601 of the California Government Code as it now exists or may hereafter be amended; l. Carry out and enforce all the provisions of this Agreement; and m. Exercise all other powers not specifically mentioned herein, but common to Member Agencies, and authorized by California Government Code Section 6508 as it now exists or may hereafter be amended.

6.2 Specific Powers and Obligations. The JPA shall have the power in its own name to exercise the following specific powers and obligations to:
a. Conduct an audit of the records and accounts of the JPA annually by an independent certified public accountant and ensure that copies of such audit report shall be filed with the State Controller and the County Auditor, and shall be provided to the Member Agencies no later than fifteen (15) days after receipt of such audit reports by the JPA; b. Use any statutory power available to it necessary or desirable to finance the exercise of any power of the JPA; and
c. Defend, hold harmless and indemnify, to the fullest extent permitted by law, each Member Agency from any liability, claims, suits or other actions.

7. BOARD OF DIRECTORS

7.1 JPA Governing Board. The JPA shall be governed by a Board of Directors. Each director shall have a single vote on matters coming before the Board.

7.2 Board Members and Alternates. Within thirty (30) days after the Effective Date of this Agreement, each Member Agency shall designate and appoint one its officers, officials, or employees to serve as its representative on the Board. Within thirty (30) days after a new Member Agency becomes a party to this Agreement, the Member Agency shall designate and appoint one of its officers, officials, or employees to serve as its representative on the Board.

Each Member Agency may appoint an alternate representative who is authorized to serve on the

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Board only in the absence of the Member Agency’s primary representative, with the same authority as the primary representative. All primary representatives and alternates shall serve until they are replaced by the appointing Member Agency, or until the withdrawal of the Member Agency from this Agreement, or until such time as they are no longer an officer, official, or employee of the Member Agency. Board members and their alternates shall serve without compensation, but they shall be entitled to reimbursement of expenses they actually incur in connection with their service on the Board, provided such expense is authorized in advance by the Board.

7.3 Qualifications. Each Member Agency shall determine the officers, officials, or employees that will serve as the Member Agency’s primary representative, and their alternate, on the Board of Directors.

7.4 Board Officers. The Board shall annually select one of its members to serve as Chair and another member to serve as Vice Chair.
a. If the Chair is unable to continue serving on the Board, then the ViceChair shall become Chair. The Board shall then select a new Vice Chair from among the remaining members of the Board.
b. If the Vice Chair is unable to continue serving on the Board, the Board shall select a new Vice Chair from among the remaining members of the Board. c. The Chair shall preside over all meetings of the Board and perform such other duties as may be imposed by the Board in accordance with applicable law and this Agreement.
d. The Vice-Chair shall preside over all meetings of the Board in the Chair’s absence and perform such other duties as may be imposed by the Board in accordance with applicable law and this Agreement when the Chair is absent.

7.5 Additional Officers and Consultants. The Board may appoint any additional officers deemed necessary or desirable. The Board may also retain such consultants or independent contractors as may be deemed necessary.

7.6 Bonding Requirements. The officers or persons designated to have charge of, handle, or have access to any funds or property of the JPA shall be so designated and empowered by the Board. Each such officer or person may be required to file an official bond with the JPA in an amount established by the Board.

7.7 Subcommittees. The Board may create permanent or ad hoc subcommittees to give advice to the Board on such matters as may be referred to such subcommittee by the Board.

7.8 Meetings. The Board shall hold publicly noticed meetings in accordance with a schedule established by the Board. The Board shall meet no less than once per year. Meetings shall be conducted and noticed in accordance with the provisions of the Ralph M. Brown Act.

7.9 Voting. All voting powers of the JPA shall reside in the Board.

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7.10 Quorum; Votes for Board Actions. A majority of the members of the Board, or their alternates, shall constitute a quorum for the transaction of business, except that less than a quorum of the Board may adjourn a meeting for lack of quorum. Except as provided in Section 14 or where a larger affirmative vote is required by law, any action of the Board shall require an affirmative vote of a majority of the Directors present at a meeting, provided that a quorum of the Board is present.

7.11 Approval of Annual Budget. The JPA’s fiscal year shall begin July 1 of each calendar year, and it shall end on June 30 of the next calendar year; provided, however, that the JPA’s first fiscal year shall begin the date this Agreement becomes effective, and it shall end on the June 30 occurring thereafter. In each fiscal year after the first fiscal year, prior to April 1 of each year, the Manager shall prepare and present a proposed budget for the following fiscal year to the Board for its review and consideration; and prior to July 1 of each year, the Board shall consider approving the final budget for the following fiscal year.

7.12 Minutes. The Secretary shall cause minutes of all meetings of the Board to be drafted. Upon approval by the Board, such minutes shall become a part of the official records of the JPA.

7.13 Conflicts of Interest.
a. California Political Reform Act. Board members shall be considered “public officials” within the meaning of the California Political Reform Act of 1974, as amended, and its regulations, for purposes of financial disclosure, conflict of interest and other requirements of such Act.
b. Levine Act. Board members are “officials” within the meaning of California Government Code Section 84308 (the “Levine Act”) and subject to the restrictions of such act on the acceptance, solicitation or direction of contributions.

8. POWERS AND DUTIES OF GOVERNING BOARD

8.1 Powers and Duties. In addition to exercising the powers and obligations of the JPA set forth in Section 6, or as otherwise provided by law, the JPA Board of Directors shall have the following powers:
a. Perform the activities described in Section 8.2 with respect to the community facilities district described therein;
b. Perform activities necessary and convenient to assist Member Agencies comply with the Municipal Regional Permit and to implement the RAC System, including filing required documentation with the San Francisco Regional Water Quality Control Board; c. Review and recommend an annual budget to the Member Agencies, which shall include the proposed contribution from each Member Agency; d. Make and enter into contracts or sub-contracts, and authorize by resolution officers or agents to execute such contracts;

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e. Incur debt, liabilities and obligations on behalf of the JPA as authorized by law;
f. Invest JPA funds pursuant to an investment policy of the JPA adopted by the Board of Directors;
g. Receive contributions, donations or grants of property, funds, services, or other forms of assistance from any source;
h. Coordinate JPA activities with other Joint Powers Authorities or public agencies established for similar purposes in pursuing the common purposes set forth above; i. Appoint a Legal Advisor for the JPA;
j. Appoint, suspend and or terminate the Manager or enter into and terminate agreements for Management Services;
k. Appoint a Secretary;
l. Adopt, and amend from time to time, bylaws, rules, and regulations for the conduct of meetings of the Board and of the affairs of the JPA consistent with this Agreement; and
m. Adopt, and amend from time to time, a conflict of interest code.

8.2 Community Facilities District. The Board of Directors will consider forming one or more community facilities districts (each, a “CFD”) in accordance with the Mello-Roos Act to finance maintenance of Off-Site GSI Projects. If a CFD is formed by the Board, the following will apply:
a. The CFD will levy special taxes on development sites owned by private buyers to finance maintenance of Off-Site GSI Projects. Off-Site GSI Projects may be publiclyowned or privately-owned. The JPA is authorized and empowered to enter into agreements with owners of Off-Site GSI Projects to provide for CFD funding of maintenance. b. The CFD will initially be formed to include (i) original CFD boundaries that consist of a single property within the jurisdiction of one of the Member Agencies, and (ii) a future annexation area that includes the remaining territory of the initial Member Agencies. As a result of such agencies executing this Agreement, no further approval shall be required from such Member Agencies for the Board of Directors to include such Member Agencies’ territory in the original CFD boundaries or the CFD’s future annexation area or to annex properties in such Member Agencies’ territory to a CFD.
c. As additional public agencies join the CFD, the Board of Directors will consider adding such agencies’ territory to the CFD’s future annexation area. As a result of such agencies executing this Agreement, no further approval shall be required from such agencies for the Board of Directors to add such agencies’ territory to the CFD’s future annexation area or to annex properties in such Member Agencies’ territory to a CFD.

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d. Each Member Agency shall approve this Agreement by adopting a resolution in the form determined by the JPA. The terms and provisions of such resolution along with this Agreement shall constitute a joint exercise of powers agreement as defined in Section 53316.2 of the Mello-Roos Act between the JPA and a Member Agency. e. The Board of Directors will be responsible for considering the levy of special taxes to fund maintenance of Off-Site GSI Projects and administering the CFD. The Board of Directors may engage necessary consultants to assist with the formation and administration of a CFD.
f. The Board of Directors shall be responsible for preparing and approving all reports and notices required by the Mello-Roos Act. The Board of Directors may delegate to the Manager, or contract with another person or entity, the preparation of reports and notices required by the Mello-Roos Act, provided that the Board of Directors retains discretion to approve the reports and notices prior to submission, circulation, or publication.

9. OPERATIONS AND FACILITIES

9.1 Principal Office. The principal physical office of the JPA shall be established by Board resolution at one of the Member Agencies’ offices or at another suitable location within a Member Agency’s jurisdiction.

9.2 Assumption of Responsibilities by the JPA. As soon as practicable after the Effective Date of this Agreement, a notice of an organizational meeting of the Board shall be published. During the first meeting, the Board shall designate a Manager, or engage a contractor to perform Management Services, who shall have the authority described in Section 11 and as otherwise delegated by the Board.

9.3 Delegation of Authority; Transfer of Records, Accounts, Funds and Property.

The JPA shall establish procedures by which it may receive the transfer of records, accounts, funds or property from Member Agencies or other entities.

10. NO EMPLOYEES

10.1 The JPA shall not hire employees or retain consultants that could otherwise be classified as common law employees.

11. MANAGER OF THE JPA

11.1 Powers and Duties. The Manager contracted by the Agency may be a staff person of one of the Member Agencies, a consultant, an independent contractor, or an employee of another entity who can perform the responsibilities and duties described in this section JPA, as determined by the Board in its sole discretion. The Manager shall have the following powers, responsibilities and duties:
a. Plan, coordinate and supervise the operation of the JPA on a day-to-day basis to ensure that the policies and direction of the Board are implemented operationally and administratively;

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b. Make recommendations to the Board regarding the operations of the JPA and, if formed, the CFD;
c. Supervise and manage JPA contractors;
d. Establish administrative policies and procedures for the JPA consistent with and in order to implement directives from the Board; e. Prepare the annual budget for submission to the Board; f. Support compliance activities for the Member Agencies’ compliance with the Municipal Regional Permit through the RAC System; and g. Such other powers and authority delegated by the Board.

12. TREASURER AND AUDITOR

12.1 The Board shall appoint one of its officers to be the Auditor of the JPA. The Auditor shall draw warrants or check-warrants against funds of the JPA held by the Treasurer when the demands are approved by the Board of Directors or other person designated for that purpose and delegated that authority. The Board may transfer the responsibilities of Auditor to any person or entity authorized by Government Code Sections 6505.5 or 6505.6.

12.2 The Treasurer of the JPA shall be a certified public accountant. The Treasurer shall receive, have custody of, and disburse all monies of the JPA. The Board may transfer the responsibilities of Treasurer to any person or entity authorized by Government Code Sections 6505.5 or 6505.6.

13. INSURANCE AND LIABILITY

13.1 Insurance Coverage. The JPA shall be responsible for obtaining insurance coverage for its activities, as the Board deems appropriate.

13.2 Limitation on Liability. No debt, liability, or obligation of the JPA shall constitute a debt, liability, or obligation of any Member Agency. Except as expressly authorized by the Member Agencies, no Member Agency shall be responsible for the acts and omissions of another Member Agency’s officers or employees nor shall a Member Agency incur any liabilities arising out of the services and activities of another Member Agency’s officers or employees.

14. ADDITION OF MEMBER AGENCIES
The addition of any other agency as a Member Agency to the JPA shall require the approval of three-quarters of the entire Board. Upon approval by the Board, the new Member Agency shall execute a copy of this Agreement and return it to the JPA to be appended to the official version of this Agreement. Recognizing the effort of the original Member Agencies to establish the JPA, the Board may require a financial contribution to become a member of the JPA.

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15. MAINTENANCE AND OPERATION COSTS: COST ALLOCATION

15.1 Records and Accounts. The JPA shall cause to be kept accurate and correct books of account, showing capital costs (if any), and maintenance and operation costs of the JPA. The aforementioned described books and records shall be open to inspection at all times during normal business hours by Member Agencies. The Treasurer shall cause all financial records of the JPA to be audited by an independent public accountant or certified public accountant at least once a fiscal year and a copy of the audit to be delivered promptly to each Member Agency.

15.2 Allocation of Operating Expenses. Unless changed by mutual agreement of the Member Agencies, the operating costs and expenses in the budget shall be shared equally by the Member Agencies. Notwithstanding the foregoing, any remaining operating costs and expenses associated with the operation and maintenance of the Off-Site GSI Projects and the administration of the CFD, which are not fully paid for by special taxes collected by the CFD, shall be apportioned to the Member Agencies based upon the maximum special taxes levied in each Member Agency’s jurisdiction.

16. WITHDRAWAL OF A MEMBER AGENCY FROM THE JOINT POWERS

AUTHORITY
A Member Agency may withdraw from this Agreement by filing written notice of intention to do so with the Manager and Chair no later than 5:00 p.m. of the December 31st immediately preceding the commencement of the following fiscal year (July 1 - June 30). The Member Agency’s withdrawal shall be effective at 11:59 p.m. on June 30th of the fiscal year in which the notice of intention was received. Withdrawal shall not relieve the Member Agency from any financial commitments associated with projects or programs that the withdrawing Member agreed to participate in prior to the effective date of the withdrawal. The withdrawal of any Member Agency shall not terminate this Agreement provided at least two (2) Member Agencies remain parties to the Agreement.

Withdrawal by a Member Agency shall not have any effect on the obligation to pay special taxes of any property in the jurisdiction of such Member Agency that has annexed into a CFD.

17. DISPOSITION OF ASSETS UPON WITHDRAWAL OF A MEMBER AGENCY No Member Agency, by withdrawing, shall, except as may be agreed to by the Board, be entitled to payment or return of funds paid or property donated, if any, by the withdrawing Member Agency to the JPA or to any distribution of its assets.

18. TERMINATION; DISSOLUTION AND DISPOSITION OF ASSETS
This Agreement may be terminated and the JPA dissolved upon the consent of all Member Agencies then party to the JPA. Upon termination of this Agreement and dissolution of the JPA, JPA funds shall first be used to pay expenses, debts, liabilities and obligations of the JPA; and any remaining JPA funds shall be distributed to the Member Agencies in proportion to contributions made by the Member Agencies. The Board shall reasonably value any remaining property in accordance with generally accepted accounting principles. This JPA shall not dissolve as long as there are properties within the boundaries of a CFD that are obligated to pay

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special taxes to maintain Off-Site GSI Projects unless the authority for governance of the CFD has been transferred by the JPA to another jurisdiction in accordance with the Mello-Roos Act.

19. CAPITAL ASSETS
Capital assets of Member Agencies may be transferred to the JPA according to the disposition rules of the Member Agencies.

20. CONTRIBUTIONS AND ADVANCES
Pursuant to Government Code Section 6504, the Member Agencies may in their discretion make financial contributions, loans or advances to the JPA for the purposes of the JPA set forth in this Agreement. The repayment of such contribution, loans or advances will be on the written terms agreed to by the Member Agency making the contribution, loan or advance and the JPA.

21. LIMITATIONS ON POWERS
As required by Government Code Section 6509, the power of the JPA is subject to the restrictions upon the manner of exercising power possessed by the City of San Pablo.

22. AMENDMENT
Any amendment to this Agreement must be in writing and approved by the governing bodies of all Member Agencies, provided, however, that no such amendment shall be entered into if the amendment would conflict with the provisions of any bonds (as defined in Government Code section 6585(c)), indenture, trust agreement, contract or other agreement securing or relating to any outstanding bonds of the JPA issued pursuant to state or federal laws.

23. NOTICE
Any notice required to be given or delivered by any provision of this Agreement shall be personally delivered or deposited in the U.S. Mail, registered or certified, postage prepaid, addressed to the Member Agencies at their addresses as reflected in the records of the JPA, and shall be deemed to have been received by the Member Agencies to which the same is addressed upon the earlier of receipt or seventy-two (72) hours after mailing.

24. SEVERABILITY
If a provision of the Agreement is found to be illegal or unenforceable, the validity of the remaining portions or provisions shall not be affected.

25. SUCCESSORS
This Agreement shall be binding upon and accrue to the benefit of any successor of a Member Agency.

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26. ASSIGNMENT AND DELEGATION
No Member Agency may assign any rights or delegate any duties under this Agreement without the written consent of all other Member Agencies.

27. COUNTERPARTS
This Agreement may be executed in one (1) or more counterparts.

28. DISPUTE RESOLUTION.

The Member Agencies and the JPA shall make reasonable efforts to settle all disputes arising out of or in connection with this Agreement. Should any dispute among the Member Agencies arise out of this Agreement and should the Member Agencies be unable to resolve the dispute, the Member Agencies shall, at the written request of any Member Agency, meet in mediation and attempt in good faith to reach a resolution with the assistance of a mutually acceptable mediator.

In the event that mediation does not result in the settlement of a dispute within 120 days after the demand for mediation is made, any Member Agency and the JPA may pursue any remedies provided by law.

29. INTEGRATION
This Agreement represents the full and entire Agreement among the Members.

IN WITNESS WHEREOF, the Parties hereto have executed this Joint Powers Agreement establishing the Joint Powers Authority set forth above. [PARTY]
By: _______________________________
Name: _______________________________
Title: _______________________________
Date: _______________________________
Party: _____________________________
[PARTY]
By: _______________________________
Name: _______________________________

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Title: _______________________________
Date: _______________________________
Party: _____________________________
[PARTY]
By: _______________________________
Name: _______________________________
Title: _______________________________
Date: _______________________________
Party: _____________________________
[PARTY]
By: _______________________________
Name: _______________________________
Title: _______________________________
Date: _______________________________
Party: _____________________________
[PARTY]
By: _______________________________
Name: _______________________________
Title: _______________________________
Date: _______________________________
Party: _____________________________

Contra Costa County Regional Alternative
Compliance System Overview

Introduction

What Are the Challenges with the Existing System?
• The Municipal Regional
Stormwater Permit (MRP)
Provision C.3 requires low
impact development
(LID)/green stormwater
infrastructure (GSI) to be
implemented:
– On new development and
redevelopment projects
– To retrofit a proportion of
permittee impervious surfaces
(C.3.j)

What Are the Challenges with the Existing System?
Challenges:
• Some re/development sites
have physical or site use
constraints to implement GSI
• Distributed GSI is costly and
requires considerable effort to
maintain
• Legacy pollution is
concentrated in certain areas
of Contra Costa County

How can Regional Alternative Compliance (RAC)
address these challenges?
• The RAC System allows an off-site option for new and
redevelopment projects to meet MRP C.3 requirements
– Other regulated stormwater dischargers may also participate (e.g.

Caltrans, Phase II permittees, etc.)
• The RAC System allows for investment in regional GSI projects that:
– Are cheaper to implement and maintain per acre treated – Can be located to target legacy pollution in the County – Could provide additional multiple benefits
AND
• The RAC System establishes designated O&M funding to
ensure long-term performance of facilities

RAC System
Development
Process

What is the Legal Basis for Alternative Compliance?
• Alternative compliance systems
are legally enabled through
existing rules, guidance, and plans
• Contra Costa County (CCC) RAC
System was developed in input
from:
– CCC Permittees
– Advisory Committee made from nine
SF Bay Area Counties + Caltrans +
Port of Oakland
– Water Quality Control Board and
EPA
– Internal and external Legal
Reviewers

Regional Water Board
• The Water Board has approved
the Contra Costa County RAC
System under the current MRP
Provision C.3.e “alternative
compliance”
• RAC System reporting will be
delivered to Water Board at a
specified frequency each permit
term

RAC System
Implementation
Process
System Overview and
Participant Roles

Contra Costa County RAC System

RAC System Participants - Sellers
• Design, construct, and maintain Off-Site GSI projects • Request certification of compliance units by the RAC System • Receive payment once compliance units are sold
• Receive reimbursement for O&M performed
• May include:
– MRP Permittees
– Contractors/Developers
– Community Based Public-Private Partnerships (CBP3)

RAC System Participants - Buyers
• Purchase compliance units for their compliance purposes • Pay an ongoing O&M Fee
• May include:
– Developers
– MRP Permittees
– Other parties subject to NPDES Permits (Caltrans, Phase II permittees, etc.)

RAC System Participants –
Jurisdictions/Permittees (Facilitator)
 Approve use of RAC System (i.e., City Council resolution)  Update Stormwater Ordinance to include RAC system
For Off-Site Projects in their boundary:
• Assist with Off-Site GSI Project Certification
• Enter data into RAC System Tracking Tool
• Perform On-Going GSI Project Verification
• Receive payment for these duties
Off-Site GSI Project in Jurisdiction A Jurisdiction A performs these actions Off-Site GSI Projects

RAC System Participants –
Jurisdictions/Permittees (Facilitator)
For Buyers:
• Approve use of RAC System by Buyer
• Help identify Compliance Units available for private Buyers • Facilitate Compliance Purchase, Agreements, and Ongoing O&M Fee for these private Buyers
• Receive payment for these RAC System duties
When a Buyers project is
located in Jurisdiction A
Jurisdiction A
facilitates these
transactions

RAC System Participants - Administrator
• Provides oversight for RAC System actions/transactions • Oversight of the RAC System fund
• Manages Tracking Tool
• Manages annual reporting to Water Board
• Performs adaptive management of RAC System
• Receives administrative payments to cover these duties

RAC System Participants – Community Facilities
District*
• Collects ongoing O&M Fees from Buyers
• Manages O&M Fund
• Disburses payments for O&M performed on Off-Site GSI
Projects
• CFD may not apply to permittee when acting as Buyers (would use agreement)
* Or Equivalent Mechanism

Public Agency to Developer Exchange
+
Compliance Purchase ($$)
Seller
Payment for Compliance Units Purchased ($$)
Reimbursement for
O&M Performed ($$)
Seller requests
certification of
compliance units
O&M Fee
($$)
Contra Costa County RAC System
Buyer
Seller Designs, Constructs, and
Maintains Off-Site GSI Project
Compliance Units
Off-Site GSI Project
Certification
Data Entry into RAC
System Tracking Tool
Off-site GSI Project
Ongoing O&M
Verification
Off-Site GSI Project
Compliance Units are
Available for
Purchase
Buyer makes one-time
Compliance Purchase
Buyer pays ongoing O&M Fees
through RAC System Agreement
Community Facilities
District or other
Mechanism

RAC System
Implementation
Process
Compliance Units Costs

Buyer Compliance Purchase
• Buyer purchases Equivalent Acres Greened compliance units proportional to their compliance needs
𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶𝐶
= 𝐸𝐸𝐸𝐸 𝐸𝐸𝐸𝐸 𝐸𝐸 𝐸𝐸𝐸𝐸 𝐴𝐴 𝐺𝐺 𝐺𝐺 × 𝑁𝑁 𝑁𝑁 𝑅𝑅 𝑅𝑅 × 𝐶𝐶 𝐸𝐸𝐸𝐸𝐸𝐸 + 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝐴𝐴 𝐴𝐴𝐴𝐴𝐴𝐴 𝐴𝐴 𝐴𝐴 • The compliance purchase amount is determined by:
– The cost per equivalent acre greened for the units purchased – An administrative payment

Equivalent Acres Greened Cost Basis: Capital Cost
• How much do we expect compliance units to cost?

Equivalent Acres Greened Cost Basis: Capital Cost
• How much do we expect Equivalent Acres Greened
compliance units to cost? Based on a cost study, not including administrative fees, for non-infiltrating facilities:
– Regional Off-Site GSI Projects - estimated $120,000 per compliance unit
– Regional Off-Site GSI Projects (for drainage area less than 100 acres):
$235,000 per compliance unit
– Green Street/LID Off-Site GSI Projects - estimated $460,000 - $500,000+ per compliance unit
• A cost study will determine the administrative fees
– These are expected to be $2,000 - $6,000 per project and may vary by jurisdiction. These are preliminary estimates that need to be verified.

Equivalent Acres Greened Cost Basis: Ongoing
O&M Fee
• The Rate & Method Apportionment (RMA) would determine the ongoing O&M fee amount.
• Based on the estimated O&M cost for the units purchased • O&M costs would be collected via property taxes process for private properties
• O&M costs would be collected by agreement for permittees

Next Steps for
Implementation

Contra Costa County RAC System Roll-Out
Phase 1: Initial pilot
exchange within
Contra Costa County
2024
Phase 2: 3-year
initial roll-out across
Contra Costa County
2026 - 2029
Phase 3+: Fully
operational
2029/2030+

RAC System
Implementation
Process
Off-Site GSI Project
Verification &
Buyer Approval

Off-Site Project Certification/Verification
• Off-Site GSI Project design and
installation must be “certified”
through inspection by local
jurisdiction using current certification
practices
• Off-Site GSI Projects generate
compliance units based on the area
treated by the Off-Site GSI Project
– Must be “GSI” per the MRP (infiltration,
capture and use, or bioretention)
– Must meet MRP Provision C.3.d (i.e.,
80% capture)

Off-Site Project Certification/Verification
• Off-Site GSI Project must
undergo ongoing recurring
verification to confirm it is
performing as expected over time
– Local jurisdiction would perform
verification using current
verification practices
– Local jurisdiction would receive
payment for these actions

Buyer Project Approval
• Developers/C.3 Regulated Projects
that want to purchase compliance
units will need to get approval from
the relevant jurisdiction
– This will be done through the
development approval process
• Developers can use the system to
address compliance for small
portions of a C.3 regulated project

RAC System
Implementation
Process
Ongoing O&M

Community Facilities District
• A RAC JPA will adopt a CFD
– Resolution of Intention
– Public Hearing Process
• Election: Each property that will use the RAC System for compliance will be required to “elect” to be part of the CFD • Special tax is levied by ordinance adoption by the relevant legislative body

Community Facilities District
• Roles and responsibilities for O&M
– Off-Site facilities will be required to maintain their facility in accordance with the Site’s O&M Agreement
– Off-Site facilities will be inspected to verify O&M compliance • Funding
– Once a facility is confirmed to meet their O&M requirement the OffSite facility will submit O&M certification to RAC System – The O&M payment will be issued to the Off-Site facility

RAC System
Implementation
Process
Compliance Unit
Calculation

Compliance Unit Generation
• “Equivalent Acres Greened” compliance units
– Calculated based on pollutant generating area
• 100% impervious + 10% pervious area
– Rainfall zone and land use associated with each unit
• For MRP C.3 Regulated Projects:
– To meet “equivalency” and “Net Environmental Benefit” requirements of Provision C.3.e., there are three additional factors used to calculate total “Equivalent Acres Greened”

1. Rainfall Ratio

2. Pollutant Ratio

3. Net Environmental Benefit (NEB) Ratio
– These factors not required for permittee C.3.j retrofit compliance units

Compliance Unit Generation: Rainfall Zone
• Used PRISM data to map the County’s Rainfall Zones
• Maps and tables were developed to represent the Rainfall Zones and calculate Rainfall Ratios

Compliance Unit Generation: Rainfall Zone

Compliance Unit Generation: Land Use Area
• Extensive analysis completed to develop ratios to represent the difference in urban pollutant loading between land uses

Compliance Unit Generation: Net Environmental
Benefit
• The CCC RAC System has defined the standard Regulated Project NEB as a ratio of 1.1:1 (i.e., requiring purchase of 10% additional Equivalent Acres Greened)
Project Type Compliance Unit Land Use NEB Ratio
C.3.d Regulated
Project
Residential, Commercial,
Institutional or Transportation Standard - 1.1:1
C.3.d Regulated
Project Old Industrial Discounted - 1:1
C.3.j Retrofit
Requirement N/A NEB not required

Compliance Unit Generation
• Detailed calculations on the compliance unit are provided in the System Summary Report
• Equivalent Acres Greened generated for Off-site GSI Projects and required purchase amount for Regulated Projects will be calculated through the RAC System Tracking Tool

RAC System
Tracking Tool

Overview of Tracking Tool
• Tracks compliance units generated and certified
• Tracks seller and buyer information
• Tracks exchanges, including number of compliance units purchased and total purchase amount
• Includes a ledger to track the compliance units sold and available for sale for each Off-Site GSI project
• Tracks O&M performed and reimbursements for O&M
• Tracks ongoing verification of compliance units
• Acts as a repository for documentation for all of the above

Thank You!

Project Background
The Cities of San Pablo, and Walnut Creek, and unincorporated Contra Costa County have partnered with USEPA through a San Francisco Bay Water Quality Improvement Fund grant to develop and pilot a Regional Alternative Compliance (RAC) System within Contra Costa County (the “Contra Costa County RAC System”). Entities in Contra Costa County must comply with the substantial post-construction stormwater treatment (i.e., Provision C.3) requirements of the San Francisco Bay Region Municipal Regional Stormwater Permit (MRP). Alternative Compliance Systems have been used in other areas of the United States to help municipalities, developers, and industry meet rigorous stormwater compliance requirements. The Water Board and legal reviewers were involved in developing the Contra Costa County RAC System.

What is the Contra Costa County Regional Alternative Compliance (RAC) System? The Contra Costa County RAC System is a program designed to provide a flexible, cost-effective, and scientifically defensible MRP C.3 compliance option to implement required post-construction stormwater treatment off-site.

How does the Contra Costa County RAC System work?
The Contra Costa County RAC System allows green stormwater infrastructure (GSI) treatment facilities or “Off-Site GSI Projects” to be constructed within the County to generate “compliance units” that can be exchanged through the System.

Compliance units can be sold to an interested party (i.e., a developer or municipality) in need of off-site stormwater treatment for MRP compliance.

A seller would design and
construct the Off-Site GSI
Projects that generate Contra
Costa County RAC System
compliance units. Off-Site GSI
Projects require certification
through the Contra Costa
County RAC System before
compliance units can be sold.

A buyer would pay for Contra
Costa County RAC System
compliance units to satisify
their project’s stormwater
compliance needs by
completing a “compliance
purchase”. Buyers would pay
an additional annual fee to
cover the ongoing operations
and maintenance (O&M) of
the Off-Site GSI Projects that
generate compliance units.

What does it mean
to be a “buyer”?
What does it mean
to be a “seller”?
Regional Alternative
Compliance System

PUBLIC FACT SHEET
Contra Costa County

The Contra Costa County RAC System provides equivalency calculations, template agreements, and an online RAC System Tracking Tool to help interested parties
determine their treatment requirements and complete
transactions through the buying and selling of compliance units.

Why is this important? What is the benefit of a
RAC System?
The Contra Costa County RAC System provides an
opportunity for the strategic development, siting, and
funding of larger regional stormwater treatment facilities (regional Off-Site GSI Projects) in areas with greater
legacy pollutant concerns. Regional stormwater treatment facilities are sited and designed to treat large drainage areas ranging from tens to hundreds of acres.

The Contra Costa County RAC System is also expected
to achieve cost savings for participants as larger stormwater treatment facilities typically have reduced capital and O&M costs per treated acre.

Who might be interested in participating?
Developers - Some development
and redevelopment sites may have
constraints (size, steep grades, etc.) that
make it difficult to build on-site stormwater
treatment. When a project has difficulty
building MRP-required stormwater
treatment on-site, it can use the Contra
Costa County RAC System to comply
with the MRP.

Municipalities - Municipalities may
purchase compliance units to comply
with MRP Provision C.3.j impervious
surface retrofit requirements.

Additionally, municipalities with
Regulated Projects such as large road
reconstruction projects could use the
Contra Costa County RAC System to
comply with the MRP. Municipalities may
also act as “sellers” through the Contra
Costa County RAC System.

Non-profits - Non-profits or other
environmental organizations may be
interested in building GSI facilities
that can be partially funded by selling
compliance units through the Contra
Costa County RAC System.

Contractors - Developers or contractors
may be interested in building Off-Site GSI
Projects to generate compliance units
that can be sold through the Contra Costa
County RAC System.

Next Steps
In 2023 and 2024, the first Contra Costa County
RAC System exchange will be conducted as a pilot,
and System administration processes will be further
developed. The Contra Costa County RAC System is
anticipated to be operational for additional exchanges
by the end of 2024.

More Details on Off-Site GSI
Projects:

Off-Site GSI Projects must be non-regulated, that is,
not required as part of any development project or
“Regulated Project” as defined by the MRP.

The compliance units generated by an Off-Site GSI
Project are calculated based on the acres and land
use that it treats.

Off-Site GSI Projects require ongoing verification,
consistent with processes used for existing GSI
facilities, and are eligible to receive annual operation and maintenance payments so they are properly
maintained.

Regional Alternative
Compliance System

PUBLIC FACT SHEET
Contra Costa County
For more information, please visit the Contra Costa County RAC System Project Website:
www.sanpabloca.gov/2685/Regional-Alternative-Compliance

CITY COUNCIL
REPORT 12.A.

DATE: APRIL 7, 2026
TO: MAYOR AND COUNCIL MEMBERS
FROM: Heba El-Guindy, Public Works Director, [email protected] SUBJECT: RECEIVE UPDATE ON CAPITAL PROJECTS, INSPECTION AND

PERMITTING, AND MAINTENANCE OPERATIONS

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

BACKGROUND
An update on key capital projects and maintenance activities was provided to the City Council on November 18, 2025, for the months of July, August, September and October of 2025. This update covers capital projects, permits review, and maintenance operations for the months of November and December of 2025, as well as January and February of 2026.

REVIEW AND ANALYSIS
Capital Projects:

Progress on key capital projects includes the following:
• The City of Pinole FY 2024/25 Sidewalk Rehabilitation Program (Project No. RO2402), was completed on November 14th, including improvements to curb ramps and pavement conditions in the Downtown area on San Pablo Avenue and Fernandez Avenue. Work was carried out by Spektren Engineering, Inc. as the lowest responsive and responsible bidder. This is in addition to overseeing construction of several new curb ramps on Appian Way and Canyon Drive implemented by the Appian Village Residential Development project. The FY 2025/26 Accessibility Improvements Project (Project No. RO2501) is being combined with the FY 2025/26 Pavement Rehabilitation Project (Project No. RO2301) to fund implementation of at least 26 new curb ramps at deficient locations on Pinole Valley Road, Marlesta Road, Shea Drive, and Hoke Drive. • Roof Replacement of the Police Department Building, being pursued under the Citywide Roof Repairs CIP Project (FA1702). A request for bids was initiated on August 28, 2025. Following a comprehensive selection process, Agreement with the lowest qualified bidder, Diablo Roofing, Inc., was approved by the City Council on December 2 nd, 2025. Construction work has been underway and is planned for completion in the

third week of April 2026, weather permit. PW is currently planning the next roof repair/replacement project for damaged roof sections at the Youth Center and Pinole Valley Park.
• Youth Center Building HVAC System replacement. This work was carried out on an urgent basis due to the failed heating and air conditioning in a number of offices on the first floor of the building (dedicated to the use of the Community Services Department), and the difficulty controlling temperature and high level of humidity impacting PCTV and equipment on the second floor. Due to the limited funding, only three of the seven HVAC units were replaced by City Mechanical (the on-call maintenance contractor) to address the failed components. An agreement in a total amount of $72,795 was prepared and executed, and work was completed in December 2025. • Upgrade of the City Pools (Project No. FA2502). This is an ongoing project that aims to gradually upgrade the various equipment, furniture, shed structure, etc. Most recently, plumbing improvements including replacement of the showers and corroded discharge pipes were completed. In addition, the filters and two pumps were also replaced in January and February of 2026. Using the remaining budgeted funds for FY 2025/26, the installation of a mini-split HVAC unit is currently being pursued along possible upgrade to the shed.
• Under the Pinole Valley Park (Project No. PA1901) and Improvements to City Parks (Project No. PA2501), funds were used to replace damaged sections of the fields and minor upgrades to the irrigation system. In addition, PW carried out two separate bid processes for the addition of prefabricated restrooms along with construction of associated foundation and utility connections (water, sewer and electricity). Agreement has been established, and prefabricated ADA compliant dual restrooms building was ordered in January of 2026. The order was placed through the lowest responsive bidder, CXT Inc., for a total amount of $116,405. Construction of the building foundation, and utility connections (water, sewer, electricity) are being performed under a separate bid process and agreement. Given the lead time for receiving the prefabricated structure, all work is planned for completion by mid-June 2026. • Improvements to the Dog Park, under CIP - Improvements to City Parks (Project No.

PA2501). The PW Maintenance Operations team completed removal of tree, branches and stump of safety concern. The team also painted the restrooms, replaced a rotted wall, cleaned and treated the roof for moth, and had the gutters replaced. In addition, the team painted the waste receptacle, doggy bags post, and the flyers board.

Planning is underway to add dog play areas and upgrade the landscaping following a community meeting to be led by the Community Services Department.

• Pinon Trunk Sewer Capacity Phase 2 Project (Project No. SS2401), on June 25, 2024, the City Council awarded the construction contract to K.J. Woods Construction, Inc. The Notice to Proceed was issued on October 14, 2024, and replacement of the sewer pipes extended over several months in 2025 and completed in December. Public Works also completed follow-up road repairs in February 2026, at the intersection of Pinon Avenue at Hutchinson Court, as well as on Zoe Court and Ramey Court. A specialized pavement contractor was brought in to perform the pavement repairs following compact testing at the intersection of Pinon Avenue/Hutchinson Court. Due to multiple breakages of the water line along Orleans Drive, PW coordinated with the EBMUD team. EBMUD agreed to add replacement of the water line along Orleans Drive to the west of Tennent Avenue to their workplan, for design during calendar year 2026 and construction in 2027. This is in addition to replacement of the water line along Zoe Court also scheduled for construction in 2027.
• Roble Avenue Storm Drain Improvement Project (SW2001): The Roble Avenue Drain Improvement Project is expected to exceed the retrofit requirements of the Municipal Regional Storm Water of 1.16 acres and establish road improvements including the provision of a sidewalk. A contract for the environmental review and design of the Project was approved by the City Council on June 3rd, 2025. Work has been progressing since with regular coordination with the consultants’ team, and project’s stakeholders. It should be noted that one of the alternatives includes the provision of a bioretention area to assist in meeting the stormwater requirements overseen by the Water Board. Findings of the environmental review and concept design will be brought for the City Council’s review and consideration in September of 2026. • Active Transportation Plan (CIP Project No. RO2106). On March 7, 2023, the City Council awarded a contract to GHD, Inc. to develop the City’s Active Transportation Plan (ATP) with the objectives to identify deficiencies and improvements that would increase walking, cycling, and connectivity to public transit. GHD produced a draft ATP report which was presented to the Traffic and Pedestrian Safety Committee (TAPS) on January 8, 2025. Input from the TAPS, City staff and the community were incorporated into the ATP. Due to the significant revisions and additions needed, an amendment to the GHD contract was approved by the City Council on June 17, 2025, that increased the budget by a not-to-exceed amount of $30,000 to be paid at the satisfactory completion of the plan. The finalized ATP report will be presented to the City Council for consideration and approval on April 21, 2026.
• Storm Drain Master Plan (Project No. IN1703). On August 15, 2023, the City Council awarded a contract to West Yost Associates (West Yost) to develop the City’s Storm Drain Master Plan. This Project is intended to identify, analyze and prioritize the capital improvement needs of the City’s storm water management system to reduce flood risks, enhance public safety and protect City assets. Findings and recommendations

developed during preparation of the Storm Drain Master Plan will be used by staff to develop or update CIP projects, and the final Plan will be presented to City Council.

Staff have been in regular coordination with the Consultant’s team. Based on the site inspections and modeling needs, the Consultant proposed an increase in scope and budget that were approved by the City Council on December 2nd, 2025. The expanded modeling work is near completion using revised land use data and future projections.

The Plan is scheduled for completion and the City Council consideration in October 2026.
• Reporting to the Water Board on stormwater requirements (the City is currently at 80% of the compliance target). Significant efforts are currently underway with the assistance of the Geosyntec team to revise the stormwater map, identify additional locations for effective installation of trash capture devices, and perform inspections and report on the existing devices. PW also narrowed down the search for the purchase of durable and reasonably priced units that are currently being reviewed with EnviroPOD. The aforementioned work will be completed by mid-May 2026. It should also be noted that PW is in coordination with Caltrans staff in pursuing grant funds for installation of trash capture devices along I-80 to benefit both jurisdictions, and to expand the planned bioretention area at the westerly end of the San Pablo Avenue Bridge (SR 123) overcrossing BNSF tracks. With the ongoing work, it is expected that the City will meet and exceed the mandated target with credits that can be shared through the RAC JPA. • Tennent Avenue/Bay Trail Gap Closure Rail Crossing (Project No. RO1902). This project is being completed this fiscal year rather than next year as originally planned in the CIP in order to avoid jeopardizing the awarded One Bay Area Grant (OBAG) funds.

The Project will close a gap in the Bay Trail, linking the communities of Hercules, Pinole, and unincorporated Contra Costa County. The trail begins at Bayfront Park at the terminus of Tennent Avenue and extends across the Union Pacific Railroad (UPRR) tracks then travels along Railroad Avenue to connect with the existing Bay Trail and the Pinole Creek Trail. Responsibility for improvements is divided between the City of Pinole and UPRR. The City will construct hardscape elements including the concrete sidewalk, asphalt pavement, striping, signing, and fencing. UPRR will install grade crossing panels, traffic control devices, wiring, and associated appurtenances. With the assistance of CSWST2 consultants, PW is currently finalizing the project design and coordinating with UPRR on two encroachment agreements expected to be completed in May 2026, to proceed with the project construction. In February and March 2026, PW also submitted grant applications under the Federal-State Partnership for Intercity Passenger Rail Program and the Subregional Transportation Mitigation Program to close a funding gap and ensure construction of all project elements as well as additional safety enhancements in the area.
• PW has been in collaboration with the County’s Department of Conservation and Development on the San Pablo Avenue Bicycle and Pedestrian Improvements Study

(mainly funded by a grant with a County match of $75,000 and a City match of $25,000). The Study corridor extends over a 3.1-mile road segment that travels through Pinole and County unincorporated areas. The County and City teamed together by forming the Study’s scope of work, the RFP was posted in November 2025, review process of all received proposals was completed, and the project team is currently finalizing the scope and budget with the selected firm. It should be noted that this largescale Study will rely on an Advisory Committee of elected officials and community members. Once available, information on the Advisory Committee will be shared with the City Council to seek participation.
• Delores Court Stormwater Pipe Replacement. This Project was performed under the CIP Stormwater Upgrade & Trash Capture Project (Project No. SW2501). A Request for Bids (RFB) was initiated on November 6th, 2025, to replace the stormwater pipe that runs from Delores Court through the public easement within the front and backyards of residence # 2341 Delores Court (about 90 linear feet). Bids were due by December 4th.

The bid process resulted in selection of Michael Paul Company, Inc. as the lowest responsive bidder. In coordination with the abutting residents, the construction work was completed in March 2026. It should be noted that damaged stone and wood fences were either repaired or replaced, and the site was fully cleaned including minor landscape work.
• San Pablo Avenue Bridge Replacement (Project No. RO1710). Identified by Caltrans as “Deficient”, with age and condition of the bridge assessment concluding the need for replacement. In February 2020, the City awarded a contract to a consultants’ team to conduct the Preliminary Engineering (PE) and advance the project. Work on the project was resumed this year, and the environmental review is scheduled for completion by early June 2026 (NEPA by April 2026, and CEQA by June 2026), with the project design commencing in July 2026 (Design Services Agreement to be considered by the City Council in May 2026). This Project is receiving Highway Bridge Program (HPB), Strategic Management Planning Program (STMP), and Transportation Land-Use Connections (TLC) funds. Through coordination with Caltrans, the City received an early release of the HBP grant funds to support the PE work. In addition, staff coordinated with the West County Transportation Commission team and changes were approved by the WCCTC Board, which extended the term of the STMP grant agreement and allowed flexibility in the use of the grant funds and help minimize/eliminate the City’s local match. A fourth amendment to agreement with Consor North America, Inc. was approved by the City Council on July 1, 2025, thereby increasing the consultant’s compensation by a not-to-exceed amount of $199,300 (funded by HBP grant fund) for completing the project’s environmental review and approvals. In addition, a sixth amendment to agreement with Gray-Bowen-Scott was approved by the City Council on July 15, 2025, thereby increasing the consultant’s compensation by a not-to-exceed amount of $350,005 (to be funded by STMP grant fund) and extending the agreement to June 30, 2027, to provide project management support services through completion of the PE (environmental and design) phase. PW

presented a Project update to the WCCTC Board on March 27, 2026. • Countywide Smart Signals Project (City CIP Project No. RO2303). PW has been coordinating with the project team led by WCCTC (including the County, various cities within Contra Costa, and consultants). The 100% design plans and estimates were completed in March 2026 and approved by majority of agencies to date. Pinole will receive various signals upgrades including video detection and battery back-up. The construction plan and sequencing work within the various communities is under development, with project completion planned by July 2026. • Safety Improvements on Arterial Roadways (Project No. RO2302). This project is funded by an HSIP grant and Arterial Streets Rehabilitation fund (fund 377) to install Rectangular Rapid Flashing Beacons (RRFB) on San Pablo Avenue at Third Avenue, on San Pablo Avenue at Quinan Street, and on Pinole Valley Road at Savage Avenue.

PW investigated the sites and provided comments, and the design plans are being finalized by CSWST2, to commence the RFB process in April 2026 and proceed with the Project construction in June 2026. It should be noted that PW submitted a TDA3 funding application to implement additional safety improvements on San Pablo Avenue including the addition of a HAWK signal on San Pablo Avenue at Fifth Avenue (in front of the senior housing development).

Inspections and Permits:
• Month of November 2025: 192 inspections were performed, 32 permits (2 encroachment, 18 sewer lateral including 5 video reviews, and 12 utility encroachment) were issued, and $37,571.20 permit fees were collected. • Month of December 2025: 175 inspections were performed, 39 permits (3 encroachment, 16 sewer laterals including 7 video reviews, 2 grading, and 18 utility encroachment) were issued, and $65,359.15 permit fees were collected. • Month of January 2026: 123 inspections were performed, 43 permits (2 encroachment, 1 sewer laterals including 5 video reviews, 1 grading, and 26 utility encroachment) were issued, and $62,732.60 permit fees were collected.
• Month of February 2026: 209 inspections were performed, 44 permits (3 encroachment permits, 19 sewer laterals including 9 video reviews, and 22 utility encroachment) were issued, and $56,424.70 permit fees were collected.

Maintenance Operations:
• Month of November 2025: Completion of 328 service requests and repairs including 40 stormwater (catch basins, storm drain, and sweeping), 5 wastewater (sewer main, sewer overflow, and video capture), 9 signs (new installation and repairs), 28 roads (potholes, traffic signals, streetlights, vegetation management, trees trimming, red curb,

graffiti removal, and pavement markings), 212 parks (vegetation management, trees trimming and stump grinding, fields maintenance, gopher control, irrigation, debris removal, restrooms, special events, hanging of banners, water fountain repairs, play structure maintenance, and graffiti removal), 1 special event, 7 illegal dumping, 8 emergency calls, 2 fleet, and 16 facilities (roofing, lights, alarms repair, gates repair, furniture assembly/repair and moving assistance, pest control, elevators repair, plumbing, drinking fountains repair, pools repair, irrigation, trees trimming, debris removal, appliances repair, HVAC repair and/or replacement, TV installation, painting, signs repair and replacement, windows repair, and doors and locks). • Month of December 2025: Completion of 344 service requests and repairs including 28 stormwater, 5 wastewater, 3 signs, 59 roads, 198 parks, 3 special events, 15 illegal dumping, 12 emergency calls, 2 fleet, and 19 facilities. • Month of January 2026: Completion of 361 service requests and repairs including 23 stormwater, 5 wastewater, 3 signs, 79 roads, 202 parks, 8 illegal dumping, 12 emergency calls, 2 fleet, and 27 facilities.
• Completion of 312 service requests and repairs including 14 stormwater, 1 wastewater, 2 signs, 80 roads, 189 parks, 6 illegal dumping, 5 emergency calls, 2 fleet, and 13 facilities.

It should be noted that the Maintenance Operations team, for example, has been gradually replacing missing and faded signs to meet MUTCD retroreflectivity requirements including at locations on Sarah Drive, Marlesta Road, O’Conner Drive, Foothill Avenue, Nob Hill Avenue, Von Doolan Court, Tennent Avenue, Von Doolan Court, Pinole Shores Drive, and Pinon Avenue.

Example of streetlight repairs and replacement of burnt bulbs took place within parks, the Tennis Courts and public Parking lots, as well as on segments of Foothill Avenue, Plum Street, Pinole Valley Road, Thomas Court, Holiday Court, N Rancho Road, Hill View Lane, and Danny Court.

Removal of illegal dumping included locations on Pinole Valley Road, San Pablo Avenue, Galbreth Road, Kilkenny Way, Appian Way, the Faria House, Faria Avenue, Tennent Avenue, Tara Hills Drive, Michael Drive, the Pinole Creek Trail, Alberdan Circle, Walter Avenue, and within parks including the Amber Schwartz Park and the Dog Park.

Improvements to pavement markings and red curbing were performed at various locations including on Belden Court, San Pablo Avenue, Robles Avenue, and Encina Avenue.

Improvements to pavement markings will be enhanced in warmer weather.

The team’s efforts on potholing will also increase in the upcoming months weather permitting.

In the meantime, potholing took place on segments of Pinole Valley Road, Pinon Avenue, Belden Court, Faria Avenue, Sarah Drive, Shawn Drive, San Pablo Avenue, Tennent Avenue, Wright Avenue, Marlin Court, Bay View Farm Road, Marlesta Road, Marionola Way, Kittery Way, Tara Hills, Kildare Way, and Lefebvre Way.

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

ATTACHMENTS
None