Pittsburg City Council
June 1, 2026

Actual 2025 GPCD
(From SB X7-7
Compliance Form)
Did Supplier meet
the 2020 Target in
2025?
No Individual Target 131 111 Yes NA
Submittal Table 5-1 Retail: SB X7-7 2020 Target Progress Water Code Section 10608.40
NOTES:

Did Supplier
Achieve Targeted
Reduction for
2020?
Actual 2020 GPCD2020 Target
Regional Alliance
Target or
Individual
Target?
Drop down list
DWR NOTES:

Suppliers calculating a 2025 GPCD will need to complete and submit SB X 7-7 Compliance Tables to verify the use of SB X7-7 Methodologies.

Suppliers that were part of a merger or consolidation since 2020 see Chapter 5 and Appendix P for guidance.

NA=Not Applicable
Check the box if the Supplier was not an Urban Water Supplier during or before the 2020 UWMP reporting cycle.

Proceed to the next table.

Only for suppliers that did not meet the
Target in 2020
See DWR NOTES below. Was Supplier part of a
merger or
consolidation since
2020?

2021 2022 2023 2024 2025
(AF) (AF) (AF) (AF) (AF)
Alluvial Basin Potable Pittsburg - Costra Costa County1269 1233 1130 1019 734 1,269 1,233 1,130 1,019 734
Add additional rows as needed
Submittal Table 6-1 Retail: Groundwater Volume Pumped
Water Code Section 10631(4) and 10631(4)(c)
DWR NOTES:

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure selected in Submittal Table 2-3.

NOTES
Total
Check the box if the Supplier does not pump groundwater.

Proceed to the next table.

Check the box if all or part of the groundwater described below is desalinated. (OPTIONAL) Groundwater Type
Drop Down List
May use each category
multiple times
Water Type
(OPTIONAL)
Drop down list
Location or Basin Name

Volume of
Wastewater
Collected from
UWMP Service
Area 2025
(AF)
Delta Diablo (Sanitation
District) Metered 14,755 Delta Diablo WWTP, Place ID
219552 No
14,755
Check the box if there is no wastewater collection system.

Proceed to the next table.

NOTES: Delta Diablo does not have metered wastewater flows broken down by city for its service area, thus wastewater flows for Pittsburg alone are not reported herein.

Submittal Table 6-2 Retail: Wastewater Collected Within Service Area in 2025 Water Code Section 10633(a)
Percentage of 2025 service area population served by wastewater collection system (OPTIONAL)
Percentage of 2025 service area served by wastewater collection system (OPTIONAL) DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure selected in Submittal Table 2-3.

Additional Guidance. See Appendix M, Section M.21 for detailed guidance on this table.

Wastewater Collection Recipient of Collected Wastewater Total Wastewater Received from UWMP
Service Area in 2025:

Wastewater
Volume Metered
or Estimated?

OPTIONAL
Drop Down List
Name of Wastewater Treatment
Plant (WWTP) and Place ID
Number
Drop down list
Is WWTP Located
Within UWMP
Area?
Drop Down List
Add additional rows as needed
Name of Wastewater
Collection Agency

Volume Volume Volume Volume Volume
(AF) (AF) (AF) (AF) (AF) (AF) (AF)
Delta Diablo WWTP,
Place ID 219552 Yes 14755 14,755
14,755 14,755 0 0 0 0 0
Submittal Table 6-3 Retail: Wastewater Treatment and Outcomes Within UWMP Service Area in 2025 Water Code Section 10633(a)
DWR NOTES:

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure selected in Submittal Table 2-3.

IPR: Indirect Potable Reuse would have the treatment level of its end use requrement in the Level of Treatment drop-down.

Additional Guidance. See Appendix M, Section M.21 for detailed guidance on this table.

Water Recycled Outside
of UWMP Service Area
(enter data as applicable)
Effluent Discharge that is
not a Permitted Recycled
Water Use
(enter data as applicable)
Required Discharge for
Instream Flow
(enter data as applicable)
Delivered to Another Entity for Additional
Treatment
(enter data as applicable)
Add additional rows as needed
2025 Outcomes of Treated Wastewater
Check the box if no wastewater is treated or disposed of within the UWMP service area.

Proceed to the next table.

Does This Plant
Treat
Wastewater
Generated
Outside the
UWMP Service
Area?
(OPTIONAL)
Drop down list
Wastewater Treatment
Plant Name and Place ID
Number
Drop down list
Treatment Level
Drop down list
Treatment Level
Drop down list
Treatment Level
Drop down list
Treatment Level
Drop down list
Treatment Level
Drop down list
Name of other
entity
Total 2025
Volume of
Water
Treated
NOTES: Recycled water within service area, wastewater treated and discharged wastewater provided is for the Delta Diablo service area, not the Pittsburg service area.

Total
2025 Volume of
Wastewater
Received from
UWMP Service
Area
(As Reported in
Submittal Table
6-2 R )
Water Recycled Within
UWMP Service Area
(enter data as applicable)

2025 2030 2035 2040 2045 2050 (opt)
(AF) (AF) (AF) (AF) (AF) (AF) Volume Narrative page number (OPTIONAL)
Landscape irrigation (exc golf
courses) Non-Potable 108 408 408 408 408 408
0 0 0 0 0 0 0 0
Name of Supplier Operating the Recycled Water Distribution System (OPTIONAL) :

Supplemental Water Added in 2025 (volume) Include units (OPTIONAL) :

Source of 2025 Supplemental Water (OPTIONAL) :

Check box if recycled water is not used and is not planned for use within the service area of the supplier. The supplier will only complete the column on "Potential Recycled Water Use" and submit an accompanying narrative on the feasibility of that potential recycled water use.

Submittal Table 6-4 Retail: Recycled Water Direct Beneficial Uses Within Service Area Water Code Section 10633 (c)(e)
Total
Use Type
Drop down list
Water Type
(after treatment if
treated)
(OPTIONAL)
Drop down list
Additional Information
(as needed)
Potential Recycled Water Use
Add additional rows as needed
DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure selected in Submittal Table 2-

3. Additional Guidance. See Appendix M, Section M.21 for detailed guidance on this table.

Potential recycled water use - a description of the feasibility of these uses must be included in the narrative.

Multiple Producers: If you have multiple recycled water producers, submit a separate table for each.

NOTES:

Delta Diablo (Sanitation District)
Delta Diablo (Sanitation District)
Name(s) of Facility/ies Producing (Treating) the Recycled Water (OPTIONAL) :

2020 Projection
for 2025
2025 Actual
Use
(AF) (AF)
311 108
311 108
Submittal Table 6-5 Retail: 2020 UWMP Recycled Water Use Projection Compared to 2025 Actual
Water Code Section 10633 (e)
Check the box if recycled water was not used in 2025 nor previously projected for use in 2020.

Proceed to the next table.

Add additional rows as needed
Landscape irrigation (exc golf courses)
NOTES:

Total
DWR NOTES:

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure reported in Submittal Table 2-3 Additional Guidance. See Appendix M, Section M.21 for detailed guidance on this table.

Use Type
Drop Down list

6.5 Expected Increase in Recycled Water
Use
(AF)
Recycled Water Pipeline
Expansion to Public
Landscapes
Irrigation - Extend purple-pipe service to parks and
public facilities 200
Incentive Program for
Commercial and HOA
Landscape Conversion
Irrigation - Offer financial incentives for HOA's,
business parks, and schools located near recycled
water mains to convert irrigation systems from
potable to recycled water
100
(AF) 300
300
DWR NOTES:

Units of measure (AF, CCF, MG) MUST remain consistent with units reported in Submittal Table 2-3. The units reported in Submittal Table 2-3 are used in this table's calculations.

The unit conversion to Acre Feet addresses the Water Code's requirement that this value be provided in acre-feet.

NOTES:

Submittal Table 6-6 Retail: Methods to Encourage Future Recycled Water Use Water Code Section 10633 (f)
Check the box if the Supplier does not plan to expand recycled water use in the future. Supplier will not complete the table below but will provide narrative explanation.

Provide page location of narrative in the UWMP
Add additional rows as needed
Total
Name of Action Description
Unit Conversion to AF
Planned Implementation Year
2026-2030
2026-2030

6.8 (AF)
Long-Term Transfer Yes CCWD CCWD would enter into a long-term water transfer agreement for a fixed amount of water supplies. 2030 Single-Dry and Multi-Dry Year 6,000
Spot Market Purchase Yes
CCWD
CCWD would determine its water supply requirements each year and decide whether to purchase additional supplies. 2030 Single-Dry Year 6,000 Long-term Agricultural
Conjunctive Use Yes
CCWD
CCWD would partner with an agricultural partner or
irrigation district north of the Delta which has both pre-1914 surface water supplies and access to groundwater supplies.

In dry years, the agricultural district would shift its water usage to local groundwater supplies and transfer its surface water allocation to CCWD.
2030 Single-Dry Year 6,000
Long-term Agricultural
Fallowing Yes
CCWD
CCWD would partner with an agricultural partner, such as a large agricultural water use or irrigation district, to exchange supplies in dry years either by fallowing land or shifting crops to conserve water for other uses.
2030 Single-Dry and
Multi-Dry Year 6,000
CCWD Active Near-Term
Conservation Program Yes
CCWD
Ongoing investments in active conservation programs. Ongoing Average Year 3,000 CCWD Active Long-term
Conservation Program Yes CCWD Ongoing investments in active conservation programs. Ongoing Average Year 8,800 Long-Term Water
Transfer or Other
preferred alternative
Yes
CCWD
Project to meet multiple dry-year shortfall projected to begin in 2045. 2040-2045 Multi-Dry Year 2,200
Vista Del Mar - Inclusion
into CCWD CVP Service Yes CCWD New federal supply for planned development. Ongoing Average Year 800 Submittal Table 6-7 Retail: Expected Future Water Supply Projects or Programs Water Code Section 10631 (f)
DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure reported in Submittal Table 2-3.

Check the box if some or all of the supplier's future water supply projects or programs are not compatible with this table and are described in a narrative format.

Check the box if there are no expected future water supply projects or programs that provide a quantifiable increase to the agency's water supply.

Procees to the next table.

Planned
Implementation
Year
Add additional rows as needed
Joint Project with other suppliers? Expected
Increase in
Water Supply
to Supplier
(This may be a
range)
Provide page location of narrative in the UWMP
Name of Future Projects
or Programs Drop Down
List
(yes/no)
If Yes, Supplier Name
Additional Description
(as needed)
Water Type
(after treatment if
treated)
(OPTIONAL)
Drop Down list
Planned for Use in
Year Type
Drop Down List
NOTES:

Water Supply
Actual Volume
Total Entitlement
(OPTIONAL)
See "DWR Notes" below
(AF) (AF)
Purchased or Imported WaterPurchased from CCWD Potable 8,280 Groundwater (not desalinated)Extracted from Pittsburg Plain Groundwater Basin Potable 1,077
Recycled Water Produced by Delta Diablo for the City
of Pittsburg Non-Potable 108
9,357 0
108 0
9,465 0
Submittal Table 6-8 Retail: Water Supplies — 2025 Actual Water Code Section 10631 (b)
2025
NOTES:

DWR NOTES:

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table identifies the unit of measure selected in Submittal Table 2-3.

Total Entitlement: e.g. Water Right, Groundwater Allocation, Contracted Amount.

Add additional rules as needed
Total
Subtotal Potable
Subtotal Non-Potable
Drop down list
May use each category multiple times.

These are the only water supply
categories that will be recognized by the
WUEdata online submittal tool
Additional Description
(as needed)
Water Type
(after treatment if
treated)
(OPTIONAL)
Drop Down list

Water Supply
Reasonably
Available
Volume
Total Entitlement
(OPTIONAL)
See "DWR Notes"
below
Reasonably
Available
Volume
Total Entitlement
(OPTIONAL)
See "DWR Notes"
below
Reasonably
Available
Volume
Total Entitlement
(OPTIONAL)
See "DWR Notes"
below
Reasonably
Available
Volume
Total Entitlement
(OPTIONAL)
See "DWR Notes"
below
Reasonably
Available
Volume
Total Entitlement
(OPTIONAL)
See "DWR Notes"
below
(AF) (AF) (AF) (AF) (AF) (AF) (AF) (AF) (AF) (AF)
Purchased or Imported Water Potable 10,631 11,173 11,743 12,342 12,971 Groundwater (not
desalinated) Potable 1,077 1,077 1,077 1,077 1,077
Recycled Water Non-Potable 408 408 408 408 408
11,708 0 12,250 0 12,820 0 13,419 0 14,049 0
408 0 408 0 408 0 408 0 408 0
12,115 0 12,658 0 13,228 0 13,827 0 14,456 0
Submittal Table 6-9 Retail: Water Supplies — Projected
Water Code Section 10631 (b)
Projected Water Supply (Report to the Extent Practicable) Drop down list
May use each category multiple
times. These are the only water
supply categories that will be
recognized by the WUEdata online
submittal tool
Additional
Detail on
Water
Supply
Water Type
(after treatment if
treated)
(OPTIONAL)
Drop Down list
2050 (opt)
Add additional rows as needed
Total
NOTES: Project supply provided by CCWD is based on water supply reliability provided by CCWD. CCWD estimates that it can meet 100% of the City's demands during normal years.

Groundwater: Projected available groundwater supply is based on average groundwater extractions between 2021 and 2025.

Recycled Water: Projected available recycled water supply is based on the City's projected recycled water demand, which the existing Delta Diablo RWF can meet. 2030 2035 2040 2045
Subtotal Non-Potable
Subtotal Potable
DWR NOTES:

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3.

Total Entitlement: e.g. Water Right, Groundwater Allocation, Contracted Amount.

Average Year 1922-2025 100%
Single-Dry Year 1976 80%
Consecutive Dry Years 1st Year 1929 80%
Consecutive Dry Years 2nd Year 1930 75%
Consecutive Dry Years 3rd Year 1931 70%
Consecutive Dry Years 4th Year 1932 65%
Consecutive Dry Years 5th Year 1933 60%
OPTIONAL Submittal Table 7-1 Retail: Basis of Water Year Data (Reliability Assessment) Available Supplies if
Year Type Repeats
Check the box if quantification of available supplies is not compatible with this table and is provided elsewhere in the UWMP.

Location: [insert location from UWMP]
Volume Available
Quantification of available supplies is provided in this table as either volume only, percent only, or both.

Year Type
Base Year
If not using a calendar
year, type in the last
year of the fiscal,
water year, or range
of years, for example,
water year 2024-
2025, use 2025
% of Average Supply
NOTES:

DWR NOTES: Supplier may use multiple versions of Submittal Table 7-1 R if different water sources have different base years and the supplier chooses to report the base years for each water source separately. If a Supplier uses multiple versions of Submittal Table 7-1 R, in the "Note" section of each submittal table, state that multiple versions of Submittal Table 7-1 R are being used and identify the particular water source that is being reported in each submittal table.

Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3. This table reports the units of measure reported in Submittal Table 2-3.

2030 2035 2040 2045 2050 (Opt)
(AF) (AF) (AF) (AF) (AF)
Supply totals
(autofill from Submittal Table 6-
9 R)
12,115 12,658 13,228 13,827 14,456
Use totals
(autofill from Submittal Table 4-
2 R)
10,631 11,173 11,743 12,342 12,971
Surplus/(shortfall) 1,485 1,485 1,485 1,485 1,485
WSCP - supply augmentation
benefit 0 0 0 0 0
WSCP - use reduction savings
benefit 0 0 0 0 0
Revised Surplus/(shortfall) 1,485 1,485 1,485 1,485 1,485 OPTIONAL Planned WSCP Actions
Submittal Table 7-2 Retail: Normal Year Supply and Use Comparison Water Code Section 10635 (a)
NOTES:

DWR NOTES : Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3.

2030 2035 2040 2045 2050 (Opt)
(AF) (AF) (AF) (AF) (AF)
Supply totals 9,692 10,126 10,582 11,061 11,565
Use totals 10,631 11,173 11,743 12,342 12,971
Surplus/(shortfall) (938) (1,047) (1,161) (1,281) (1,407) WSCP - supply
augmentation benefit 0 0 0 0 0
WSCP - use reduction
savings benefit 1,100 1,300 1,400 1,500 1,600
Revised Surplus/(shortfall) 162 253 239 219 193
DWR NOTES : Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3.

NOTES
Submittal Table 7-3 Retail: Single Dry Year Supply and Use Comparison Water Code Section 10635(a)
OPTIONAL Planned WSCP Actions

2030 2035 2040 2045 2050 (Opt)
(AF) (AF) (AF) (AF) (AF)
Supply totals 9,989 10,423 10,879 11,358 11,862
Use totals 11,038 11,580 12,150 12,749 13,379
Surplus/(shortfall) (1,049) (1,157) (1,271) (1,391) (1,517) WSCP - supply
augmentation benefit
0 0 0 0 0
WSCP - use reduction
savings benefit 1,400 1,500 1,600 1,700 1,800
Revised
Surplus/(shortfall) 351 343 329 309 283
Supply totals 9,458 9,864 10,292 10,741 11,213
Use totals 11,038 11,580 12,150 12,749 13,379
Surplus/(shortfall) (1,581) (1,716) (1,859) (2,008) (2,166) WSCP - supply
augmentation benefit 0 0 0 0 0
WSCP - use reduction
savings benefit 1,900 2,000 2,100 2,300 2,400
Revised
Surplus/(shortfall) 319 284 241 292 234
Supply totals 8,926 9,306 9,705 10,124 10,565
Use totals 11,038 11,580 12,150 12,749 13,379
Surplus/(shortfall) (2,112) (2,275) (2,446) (2,625) (2,814) WSCP - supply
augmentation benefit 0 0 0 0 0
WSCP - use reduction
savings benefit 2,400 2,500 2,700 2,900 3,100
Revised
Surplus/(shortfall) 288 225 254 275 286
Supply totals 8,395 8,747 9,118 9,507 9,916
Use totals 11,038 11,580 12,150 12,749 13,379
Surplus/(shortfall) (2,644) (2,833) (3,033) (3,243) (3,463) WSCP - supply
augmentation benefit 0 0 0 0 0
WSCP - use reduction
savings benefit 3,000 3,100 3,300 3,500 3,700
Revised
Surplus/(shortfall) 356 267 267 257 237
Supply totals 7,863 8,188 8,530 8,890 9,268
Use totals 11,038 11,580 12,150 12,749 13,379
Surplus/(shortfall) (3,175) (3,392) (3,620) (3,860) (4,111) WSCP - supply
augmentation benefit 0 0 0 0 0
WSCP - use reduction
savings benefit 3,400 3,700 3,900 4,100 4,400
Revised
Surplus/(shortfall) 225 308 280 240 289
Submittal Table 7-4 Retail: Multiple Dry Years Supply and Use Comparison Water Code Section 10635(a)
OPTIONAL Planned WSCP Actions

NOTES:

First year
OPTIONAL WSCP Actions Second year
Third year
Fifth year
DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3.

OPTIONAL Planned WSCP Actions
OPTIONAL Planned WSCP Actions
OPTIONAL Planned WSCP ActionsFourth year

Total
Total Water Use(AF) 8,750
Total Supplies(AF) 10,540
1,790
WSCP - supply augmentation benefit (AF) 0
WSCP - use reduction savings benefit (AF) 0
1,790
Total
Total Water Use (AF) 9,220
Total Supplies(AF) 10,059
839
WSCP - supply augmentation benefit(AF) 0
WSCP - use reduction savings benefit(AF) 0
839
Total
Total Water Use(AF) 9,690
Total Supplies(AF) 9,568
(123)
WSCP - supply augmentation benefit (AF) 0
WSCP - use reduction savings benefit (AF) 300
177
Total
Total Water Use(AF) 10,161
Total Supplies(AF) 9,065
(1,095)
WSCP - supply augmentation benefit (AF) 0
WSCP - use reduction savings benefit (AF) 1,300
205
Total
Total Water Use(AF) 10,631
Total Supplies(AF) 8,552
(2,079)
WSCP - supply augmentation benefit (AF) 0
WSCP - use reduction savings benefit (AF) 2,300
221
NOTES:

DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3.

Submittal Table 7-5 Retail: Five-Year Drought Risk Assessment Water Code Section 10635(b)(3)
OPTIONAL Planned WSCP Actions (use reduction and supply augmentation) OPTIONAL Planned WSCP Actions (use reduction and supply augmentation) OPTIONAL Planned WSCP Actions (use reduction and supply augmentation) OPTIONAL Planned WSCP Actions (use reduction and supply augmentation) OPTIONAL Planned WSCP Actions (use reduction and supply augmentation) Revised Surplus/(shortfall)
Surplus/Shortfall w/o WSCP Action
Revised Surplus/(shortfall)
2026
Revised Surplus/(shortfall)
2027
2028
2029
2030
Surplus/Shortfall w/o WSCP Action
Surplus/Shortfall w/o WSCP Action
Surplus/Shortfall w/o WSCP Action
Revised Surplus/(shortfall)
Revised Surplus/(shortfall)
Surplus/Shortfall w/o WSCP Action

Standard
Shortage
Levels
Percent Shortage
Range
Suppliers
Shortage
Levels
Percent
Shortage Range
1 Up to 10%
2 Up to 20%
3 Up to 30%
4 Up to 40%
5 Up to 50%
6 >50%
Submittal Table 8-1: Cross-reference for Standard vs
Supplier Shortage Levels
Water Code Section 10632(a)(3)(B)
Check the box if the Supplier uses the Standard
six levels of water shortage.

Proceed to the next table.

NOTES:

Shortage Gap Reduction
Value
(May be a range)
(AF)
1 Percentage 0 No Action Taken.
2 Percentage 0 No Action Taken.
3 Percentage 0 No Action Taken.
4 Percentage 0 No Action Taken.
5 Percentage 0 No Action Taken.
6 Percentage 0 No Action Taken.

Submittal Table 8-2 Retail: Supply Augmentation and Other Actions Water Code Section 10632(a)(4)(A),(C) and (E)
Add additional rows as needed
NOTES:

Is the Supplier completing this table using the standard six levels? (yes/no) How much is this going to reduce the
shortage gap?
DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3.

Shortage
Level
Supply Augmentation Methods and
Other Actions by Water Supplier
Drop down list
These are the only categories that will be
accepted by the WUEdata online submittal tool
Volume or
Percentage
Drop down
Additional Explanation or Reference
(OPTIONAL)

Yes
Shortage Gap
Reduction Value
(May be a range)
(AF)
1 Landscape - Limit landscape irrigation
to specific times Percentage 5% Irrigation between 11am and 6pm is discouraged. No 1 Landscape - Prohibit certain types of
landscape irrigation Percentage 5% Irrigating landscaped areas with water in excess of that minimal amount required to sustain plant life.Yes
1 Landscape - Other landscape restriction
or prohibition Percentage 5%
The application of potable water to outdoor
landscapes during and up to within 48 hours after
measurable rainfall.

Yes
1 Water Features - Restrict water use for
decorative water features, such as
fountains
Percentage 5% The use of water for decorative fountain/pools, except for recycled water approved for such use.Yes
1 Other - Customers must repair leaks,
breaks, and malfunctions in a timely
manner
Percentage 5% Failing to repair a controllable leak of water. Yes 1 Other - Require automatic shut of hoses Percentage 5% Using a hose without an automatic shutoff nozzle. Yes 1 Other - Prohibit use of potable water
for washing hard surfaces Percentage 5%
Washing sidewalks, driveways, parking areas, tennis
courts, patios, or other exterior paved areas except
to alleviate a condition inimical to the public health
or safety.

Yes
1 Other Percentage 5%
Permitting water to flow onto a sidewalk, driveway,
or street, or escape down a gutter, ditch or other
service drain.

Yes
1 Expand Public Information Campaign Percentage 5% Education program. No 1 Offer Water Use Surveys Percentage 5%
City currently providing water use surveys to 112
irrigators, and CCWD is offering free surveying to
residential customers.

No
1 Provide Rebates on Plumbing Fixtures
and Devices Percentage 5% CCWD provides rebates for efficient plumbing fixtures and devices in Pittsburg. No
1 Provide Rebates for Landscape
Irrigation Efficiency Percentage 5% CCWD provides rebates for CIMIS controlled irrigation systems. No
1 Provide Rebates for Turf Replacement Percentage 5% CCWD provides rebated for lawn replacements in Pittsburg. No
1 Other Percentage 5% Demand Reduction program. No
1 Other Percentage 5% Voluntary Rationing. No
1 Decrease Line Flushing Percentage 5% No
1 Reduce System Water Loss Percentage 5% No
1 Increase Water Waste Patrols Percentage 5% No
2 Landscape - Limit landscape irrigation
to specific days Percentage 10%
Irrigation watering limited to three days per week,
unless controlled by a CIMIS-connected water
controller, and verified by City.

Yes
2 Landscape - Limit landscape irrigation
to specific days Percentage 10%
Irrigation watering limited to two days per week,
unless controlled by a CIMIS-connected water
controller, and verified by City.

Yes
3 Other Percentage 15% Mandatory rationing. Yes
3 Other Percentage 15% Percentage reduction by customer type, and/or high use penalties. Yes
4 Moratorium or Net Zero Demand
Increase on New Connections Percentage 20% Yes
4 Implement or Modify Drought Rate
Structure or Surcharge Percentage 20% Water rate increases. Yes 5 Other Percentage 20% Restrict building permits. Yes
6 Other Percentage 20% Per capita allotment by customer type. Yes 6 Other Percentage 20% Nonessential use of water prohibited. Yes Is the Supplier completing this table using the standard six levels? (yes/no) Submittal Table 8-3 Retail: Demand Reduction Actions
Water Code Section 10632(a)(4)(B) and (E)
Add additional rows as needed
How much is this going to reduce the
shortage gap?
Volume or Percentage
Drop down
Shortage
Level
Demand Reduction Actions
Drop down list
These are the only categories that will be
accepted by the WUEdata online submittal
tool. Select those that apply.

Additional Explanation or Reference
(OPTIONAL)
NOTES:

Penalty, Charge, or
Other
Enforcement?
For Retail Suppliers Only
Drop Down List
DWR NOTES: Units of measure (AF, CCF, MG) must remain consistent throughout the UWMP as reported in Submittal Table 2-3.

City Name 60 Day Notice
Drop Down (yes/no)
Notice of Public
Hearing
Drop Down (yes/no)
County Name
Drop Down List
60 Day Notice
Drop Down (yes/no)
Notice of Public
Hearing
Drop Down (yes/no)
Contra Costa County Yes Yes
Submittal Table 10-1 Retail: Notification to Cities and Counties Water Code Section 10621(b) and 10642
Add additional rows as needed
Add additional rows as needed
NOTES:

May 2026 City of Pittsburg
2025 Urban Water Management Plan

2025 City of Pittsburg

APPENDIX C

Urban Water Management Plan
Public Notices and Adoption

STAFF REPORT

MEETING DATE: June 1, 2026

TO: Mayor and Council Members

FROM: Darin E. Gale‚ City Manager
Melaine Venenciano, Director of City Clerk Services

SUBJECT: Future Agenda Item Regarding Reviewing the Compensation for the Elected City Clerk and Treasurer

EXECUTIVE SUMMARY

At the May 18, 2026 City Council meeting, Vice-Mayor Lopez requested a future agenda item related to reviewing the compensation for the elected City Clerk and Treasurer.

FISCAL IMPACT

The subject matter will be reviewed by the Finance Management Subcommittee. Staff does not anticipate any significant fiscal impact.

RECOMMENDATION

No staff recommendation.

BACKGROUND

Pursuant to the City Council Policies & Procedures, a Council Member may make a request under the Requests for Future Agenda Items section of the agenda item, as follows:

Outline for Request for Future Agenda Items:

1. Request by Council Member for future item – must be moved and seconded.

2. Staff returns at next available regularly scheduled meeting with information on item and will be listed under Consideration. Council makes determination as to viability

of consideration of item and may take action at that time, or direct staff to return at scheduled future meeting with item for consideration.

City Council concurrence that staff time or City resources be spent on an item does not signify approval of the item, just that the City Council wishes to have it studied further and the City Council may, at any time, decide not to pursue the item further.

SUBCOMMITTEE FINDINGS

This item was not presented to a subcommittee.

STAFF ANALYSIS

During the May 18, 2026 meeting, Vice-Mayor Lopez brought forward the following future agenda request:

For the Finance Management Subcommittee to review the compensation of the City Treasurer and the City Clerk. If the Committee finds it appropriate, the Committee would provide a recommendation back to the City Council for consideration.

The City Council voted to agendize the matter for the next meeting. If the City Council authorizes staff time and resources, staff will proceed with bringing information to the Finance Management Subcommittee for consideration.

Combined Agency/City Council Minutes Page 1 of 4 May 18, 2026

CITY OF PITTSBURG

CITY COUNCIL/AGENCY CONCURRENT MEETING MINUTES

DATE: May 18, 2026

LOCATION: Council Chamber, City Hall, 65 Civic Avenue, Pittsburg, CA 94565

CITY COUNCIL/AGENCY MEMBERS
Dionne Adams, Mayor/Chair
Angelica Lopez, Vice-Mayor/Chair
Juan Antonio Banales, Council/Agency Member
Arlene Kobata, Council/Agency Member
Jelani Killings, Council/Agency Member
S.L. Floyd, Agency Member
Annie Hill Herring, Agency Member

APPOINTED OFFICIALS
Darin Gale, City Manager/Executive Director
Donna Mooney, City Attorney/Legal Counsel
Alice E. Evenson, City Clerk/Agency Secretary (elected) Nancy Parent, City Treasurer (elected)

Mayor Adams called the regular meeting to order at 7:00 P.M. in the Council Chamber at City Hall, 65 Civic Avenue Pittsburg, CA.

ROLL CALL

Member Banales was absent and excused.

PLEDGE OF ALLEGIANCE

Mayor Adams led the Pledge of Allegiance.

PROCLAMATIONS

1. Think Pittsburg – Restaurant Week

2. National Public Works Week

PRESENTATIONS

3. My Brother’s Keeper Scholarship Awards

4. Youth Advisory Commission Annual Report

This presentation was pushed to a future meeting date.

COMMITTEE REPORTS

Vice Mayor Lopez attended the Public Safety Subcommittee meeting.

Combined Agency/City Council Minutes Page 2 of 4 May 18, 2026 Member Kobata attended the Life Enrichment Subcommittee meeting.

Member Killings attended the Community and Economic Development Subcommittee meeting.

PUBLIC COMMENTS

The Following questions were received by Pittsburg High School students as part of their Ethnic Studies class.

Kaleb Palec, Pittsburg, asked about Public Safety and what is being done by the City.

Cortana Diaz, Pittsburg, asked why housing prices have gone up within the past few years.

Jack Eseltine, Pittsburg, asked about homelessness, he wanted to know if the homeless rate is rising, dropping or staying the same.

Sebastian Gonzalez, Bay Point, asked if the City would be creating more programs to help small businesses.

Vien Tran, Pittsburg, asked how the City is supporting small and local businesses equally.

Carlson Jimenez asked if parks and recreation programs were accessible and affordable to all.

The following speakers provided comments about housing concerns, deplorable living conditions and rent increases at Woods Grove apartments.

Tonicka Moffett
Evelia Perez
Zenelia
Mayra Jimenez

Rosemary Randazzo, Pittsburg, provided comments about her vehicles being towed. She wanted to seek reimbursement of towing fees.

Monserrat Becerra requested assistance with replacing signage for People Who Care, noting that the current sign on Railroad Avenue is fading and in need of replacement.

CITY MANAGER REPORTS/REMARKS

This item was moved to the end of the agenda, after Council Member remarks.

City Manager Gale congratulated incoming Police Chief Galer and mentioned there would be a swearing-in ceremony at the California Theatre on Thursday, May 21, 2026 at 3:00 P.M. He also provided remarks about community events and noted the Buchanan Swim Center was now open.

Combined Agency/City Council Minutes Page 3 of 4 May 18, 2026

PUBLIC HEARING

5. Adoption of a City Council Resolution Approving the Fiscal Year 2026 -2027 Community Development Block Grant Annual Action Plan

Mayor Adams opened the Public Hearing. There being no one to speak on the item, Mayor Adams closed the Public Hearing.

On Motion by Vice Mayor Lopez, seconded by Member Kobata and adopted by the following vote:

AYES: Killings, Kobata, Lopez, Adams
ABSENT: Banales

CONFLICT OF INTEREST STATEMENT

There were no Conflict of interest Statements.

COMBINED CITY COUNCIL, PITTSBURG ARTS AND COMMUNITY FOUNDATION,

PITTSBURG POWER COMPANY, SOUTHWEST PITTSBURG GHAD II AND SUCCESSOR

AGENCY CONSENT CALENDAR

On Motion by Vice Mayor Lopez , seconded by Member Killings and adopted by the following vote:

AYES: Killings, Kobata, Lopez, Adams
ABSENT: Banales

6. Minutes of May 4, 2026

7. Receive and File the Treasurer’s Report for the Quarter Ending March 31, 2026

8. Adoption of a City Council Resolution Accepting Project 4067 - 2025/26 CDBG ADA Curb Ramp Installation as Complete and Authorizing the City Engineer to File a Notice of Completion

9. Adoption of a City Council Resolution Authorizing City Manager to Execute Amended and Restated Contra Costa Clean Water Program Agreement

10. Adoption of a City Council Resolution Approving Participation in and Execution of Agreements with the Contra Costa County Regional Alternative Compliance Joint Powers Authority

11. Adoption of a Pittsburg Power Company Resolution Authorizing the Executive Director to Execute a Consulting Services Agreement with CRE8IVEPOWER GROUP INC

12. Adoption of an Ordinance Amending Section 5.22.100 of the Pittsburg Municipal Code Regarding Prize Value Limit for Bingo Games for Charity

Combined Agency/City Council Minutes Page 4 of 4 May 18, 2026

COUNCIL REQUEST FOR FUTURE AGENDA ITEMS

Vice Mayor Lopez requested a future agenda item for the Finance Subcommittee to review the compensation for the City Treasurer and the City Clerk. If the Committee found it appropriate, she would request that they provide a recommendation back to the City Council for consideration. She noted that her request is not intended to indicate support for or opposition to any changes. It is simply to ensure that these elected positions are reviewed in a consistent and transparent manner.

On Motion by Mayor Adams, seconded by Vice Mayor Lopez and adopted by the following vote:

AYES: Killings, Kobata, Lopez, Adams
ABSENT: Banales

COUNCIL MEMBER REMARKS

Vice Mayor Lopez provided comments about Mental Health and invited the community to participate in the Pittsburg Cares 5K Fun Run taking place on Saturday, May 23, 2026. She noted this event was centered on raising awareness for mental health and promoting well-being for all.

Member Killings provided remarks on the Contra Costa Transportation Authority Two- day Board workshop he attended. He also acknowledged and congratulated incoming Police Chief Galer.

Member Kobata congratulated and provided remarks for incoming Police Chief Galer.

Mayor Adams invited the community to participate in the Pittsburg Cares 5K Fun Run, as well as in Restaurant week. She also provided comments regarding the Youth Ride Free Summer Program offered by Tri-Delta Transit. Lastly, she congratulated incoming Police Chief Galer.

ADJOURNMENT

The meeting adjourned at 8:28 P.M. to June 1, 2026.

Respectfully submitted,

Alice E. Evenson, City Clerk

STAFF REPORT

MEETING DATE: June 1, 2026

TO: Mayor and Council Members

FROM: Darin E. Gale‚ City Manager
Elena Adair, Director of Finance

SUBJECT: Adoption of a City Council Resolution Approving Revisions to the City's Investment Policy

EXECUTIVE SUMMARY

City of Pittsburg’s Investment Policy provides requirements for the prudent investment of the City’s idle funds and outlines the policies for maximizing the efficiency of the City’s cash management system. The goal of the City’s Investment Policy is to enhance the economic status of the City while protecting its funds.

FISCAL IMPACT

This is a regular annual update to the City’s Investment Policy. There is no direct financial impact as a result of the approval of the Investment Policy, and the proposed changes should not affect the earnings structure of the investments for the City.

RECOMMENDATION

City Council adopt the Resolution approving the revisions to the City’s Investment Policy.

BACKGROUND

Through Government Code (Code) Section 53600 et. seq., the State of California identifies permitted investments for the State and municipalities that minimize the risk to public funds.

The overall objectives of the City’s Investment Policy are safety, liquidity and yield, in that order. The City’s portfolio has been designed in a manner responsive to public trust and consistent with State law.

Section XVII of the City’s Investment Policy (Policy) states that Director of Finance shall periodically submit to the City Council the Policy outlining changes and revisions.

Changes may be needed to comply with applicable sections of the California Government code, Governmental Accounting Standards Board (GASB) or any other changes to keep the Policy updated to current business practices.

SUBCOMMITTEE FINDINGS

This item was not presented to the subcommittee.

STAFF ANALYSIS

There are no structural changes to the current City Council approved Investment Policy.

The City’s Policy was reviewed by the City Treasurer and investment advisor Chandler Asset Management and is attached to this report showing changes made to the previous version of the Policy (Attachment 1).

There are two substantive updates proposed for 2026. There was an amendment to the Code related to commercial paper maximum maturity that was increased from 270 days to 397 days. In addition, the time horizon was extended to January 1, 2031, allowing up to 40 percent to be invested in commercial paper if the assets under management exceed $100,000,000. In addition, the Policy reporting requirements are being aligned with the Code to require quarterly investment reports be submitted to City Council within 45 days following the period being reported.

Staff recommend other minor changes to the Policy for this year by adding clarifying and clean up language throughout the document and adding more term definitions to the Glossary.

ATTACHMENTS:

1. Resolution

2. City of Pittsburg Investment Policy for FY 2026-27 (red-line version)

3. Resolution Exhibit
a. City of Pittsburg Investment Policy for FY 2026-27

BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG

In the Matter of:

Approving Revisions to the City of )
Pittsburg’s Investment Policy ) RESOLUTION NO. 26-

WHEREAS, the State Law of California encourages all public agencies to adopt an Investment Policy; and

WHEREAS, the Investment Policy establishes strategies, practices and procedures, which comply with California Government Code Sections 53600 through 53686 to be used in administering the City’s portfolio; and

WHEREAS, the purpose of the Investment Policy is to establish requirements for the prudent investment of the City’s idle funds and to outline the policies for maximizing the efficiency of the City’s cash management system; and

WHEREAS, the Investment Policy was most recently reviewed and updated by the City Council on July 21, 2025; and

WHEREAS, the revised Investment Policy will be in effect for fiscal year 2026-27.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pittsburg hereby approves the revisions to the City’s Investment Policy and finds the Investment Policy for Fiscal Year 2026-27 thorough and complete.

BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized and directed to manage the investment functions for the City of Pittsburg in accordance with the revised Investment Policy.

PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 1st day of June 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Dionne Adams, Mayor
ATTEST:

Alice E. Evenson, City Clerk

CITY OF PITTSBURG

INVESTMENT POLICY
For Fiscal Year 2026-2027(July 21, 2025)

I. Statement of Purpose and Adoption of Policy

The purpose of this Investment Policy (the “Policy”) is to establish strategies, practices, and procedures to be used in administering the City of Pittsburg (the “City”) portfolio. The goal is to establish guidelines to manage City funds to maximize security and liquidity while also complying with the Investment Policy and California Government Code Sections 53600 through 53686, which govern investments for municipal governments and while meeting the daily cash flow demands of the City.

It shall be the investment policy of the City of Pittsburg (the “City”) that all funds not required for immediate expenditures are invested in compliance with this statement, as well as applicable federal, state and local legislation governing the investment of public funds. Funds shall be invested in a manner that will provide the highest investment return with the appropriate level of security, while meeting the daily cash flow demands of the City.

Safeguards will be set into place to ensure that adequate operating reserves are established and maintained to provide that cash in enough amounts will be available to pay for immediate expenditures as authorized by the City’s budget.

Funds so maintained will be deposited in a manner best serving the City.

The City has a responsibility to monitor the security of its assets and always maintain a level of quality so that the public at large will have the highest confidence that its best interests are being served.

The purpose of this document is to identify various policies and procedures that enhance opportunities for a systemic investment process. The initial step toward a prudent investment policy is to organize and formalize investment related activities.

Related activities, which comprise good cash management, include accurate cash projection, the expeditious collection of revenue, the control of disbursements, cost effective banking relations and a short-term borrowing program, which coordinates working capital requirements and investment opportunities.

The City’s Investment Policy shall be adopted by resolution of City Council. The policy shall be reviewed at least annually by the City Treasurer, City Manager and the Finance Director, and any modification must be approved by City Council.

II. SCOPE

It is intended that this policy covers all operating funds and investment activities under the direct authority of the City. These funds are described in the City’s Annual Comprehensive Financial Report and include its General Fund, Special Revenue Funds, Debt Service Fund, Capital Projects Funds, Enterprise Funds, CustodialTrust and Agency Funds, Capital Project FundsInternal Service Funds, and Successor Agency Private-Purpose Trust Funds and any new fund created by the City Council unless specifically exempted.

The Investment Policy applies to all transactions involving the financial assets and related activities of the foregoing funds. Except for cash held in separate restricted funds, the City will pool cash balances from all funds for investments to maximize earnings and efficiencies concerning investment pricing, safekeeping and administration. Investment income will be allocated to the City’s funds based upon their respective average monthly balances and in accordance with Generally Accepted Accounting Principles (GAAP).

The employee’s retirement and deferred compensation funds are not included.

Bond proceeds are not covered under this policy and shall be governed by their applicable bond documents. However, if the bond documents are silent in regard to the investment of bond proceeds and reserves, the terms set forth in this policy shall govern the respective investment of bond proceeds.This Investment Policy does not apply to the following financial assets:

 The City’s Deferred Compensation Plan, which is controlled by federal law, specific provisions of the City’s adopted Plan, and individual plan participants’ decisions.
 The City Employee Retirement Plan, which is subject to regulation by federal and state laws.
 Other Post-Employment Benefits (OPEB) Trust and Pension 115 Trust, which are invested pursuant to California Code and the Trusts’ separate long-term investment policy under the Trust Agreements.  Proceeds of debt issuance, which are invested in accordance with permitted investment provisions of their specific bond indentures.

III. OBJECTIVES AND PERFORMANCE STANDARDS

The City’s primary investment objective is to achieve a reasonable rate of return on public funds while minimizing the potential for capital losses arising from market changes or issuer default. Although pursuit of interest earnings on investment is appropriate City goal, the primary consideration is preservation of capital resources.

Thus, the City’s yield objective is to achieve a reasonable rate of return rather than the maximum generation of income that might expose the City to unacceptable levels of risk.

The overall program shall be designed and managed with a degree of professionalism worthy of the public trust. The City’s primary investment objectives, in priority order, shall be:

1. Safety: Safety of principal is the foremost objective the City’s investment program, followed by liquidity and yield. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the City’s portfolio. To obtain this objective, the City will diversify its investment by investing funds among a variety of securities offering independent returns and financial institutions. Each investment transaction shall seek to first ensure that capital losses are avoided, whether they are from securities default or erosion of market value. Investment decisions should not incur unreasonable investment risks in order to obtain current investment income.

2. Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements, which might be reasonably anticipated. This need for investment liquidity may be tempered to the extent that the City is able to issue short-term notes to meet its operating requirements. Emphasis will be on marketable securities with low sensitivity to market risk. Maturities of investments for which there is limited opportunity for resale shall be staggered to maximize liquidity.

3. Yield: The City maintains an active investment strategy and its investment portfolio shall be designed to attain a rate of return which approximates benchmarks to be selected by the City’s Director of Finance and the City Treasurerinvestment advisory committee throughout budgetary and economic cycles, taking into account the City’s investment risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restricts the investment of funds.

IV. DELEGATION OF AUTHORITY

Pursuant to California Government Code 53607 and the City’s Municipal Code, the City Council’s management responsibility for the investment program is hereby delegated for a one-year period to the Director of Finance Director, who shall be responsible for the investment of idle funds consistent with this investment policy.

Subject to review, the City Council may renew the delegation of authority pursuant to this section each year. The Director of Finance Director may delegate these duties to his/her designee upon approval of the City Council. The day-to-day investment decision-making and execution authority may also be delegated to an external investment advisor under the supervision of the Director of Finance Director. The investment advisor must be registered with the Securities and Exchange Commission (SEC) under the Investment Advisors Act of 1940 and shall follow this Policy and such other written instructions as are provided by the City.

V. PRUDENCE AND RISK TOLERANCE

The City recognizes that investment risks of the following can result from issuer defaults, market price changes or various technical complications leading to temporary liquidity:

1. Credit risk is the possibility that deterioration of an issuer’s creditworthiness will adversely affect the value of its bonds or that an issuer will not make timely payments of interest or principal on its bonds (default). A decline in a bond issuer’s credit rating, or creditworthiness, may cause prices for its outstanding bonds to decline. This shall be mitigated by limiting investments to high quality securities those allowed under this policy and by diversification.

2. Market or Interest Rate risk, defined as market value fluctuations due to overall changes in market price, shall be mitigated by eliminating the need to sell securities prior to maturity and investing operating funds needed for short-term liquidity primarily in short-term securities, money market funds or similar investment pools, thereby limiting the average maturity of the portfolio.

Investment shall be made with that degree of judgment and care, under circumstances then prevailing, which persons ofr prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for investment, considering the safety of their capital as well as the income to be derived.

The standard of prudence to be used by investment officers shall be the “prudent investor standard” as defined in California Government Code Section 53600.3 and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the City’s investment policy and exercising due diligence shall be relieved of personal liability for an individual security’s credit risk or market price changes, if deviations from expectations are reported onin a timely fashion, and appropriate action is taken to control adverse developments.

VI. INTERNAL CONTROLS

A system of internal controls will be maintained to assure compliance with Federal and State regulations, City Council direction, and prudent cash management procedures.

The controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets or imprudent actions by employees and officers of the City.

Controls deemed most important include: control of collusion, segregation of duties, separating transaction authority from accounting and recordkeeping, custodial safekeeping, clear delegation of authority, specific limitations regarding securities losses and remedial action, written confirmation of telephone transactions, minimizing the number of authorized investment officials, documentation of transactions and strategies, and code of ethical standards. In addition, whenever possible, pre-formatted wire transfers will be used to transfer funds to pre- authorized accounts.

1. The City Treasurer shall audit and examine all investments made by the City, or its duly authorized personnel, at those times deemed necessary by him/her

and shall in his/her discretion report his/her audit and examination to the City Council.

2. Investment Oversight Committee: Quarterly review of procedures and adherence to this Investment Policy is conducted by the Investment Oversight Committee. The Committee, established by the City Council, is comprised of the City Manager, Director of Finance Director, and City Treasurer.

3. Annual Audit: The City’s portfolio is included in the annual review of the City’s financial management performed by an outside audit firm.

VII. ETHICS AND CONFLICTS OF INTEREST

Officers and employees involved in the investment process shall not participate in personal business activity that could conflict with proper execution of the investment program, or which could impair the ability to make impartial investment decisions.

Such employees and investment officials shall disclose any material financial interests in financial institutions that conduct business with the City, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City's portfolio.

VIII. ELIGIBLE AUTHORIZED INVESTMENTS

California Government Code Sections 53600 et. seq. provides basic investment limits and guidelines for government entities. Within the investments permitted by the Government Code, the City seeks to further restrict eligible authorized investment to the investments listed below. In the event an apparent discrepancy is found between this policy and the Government Code, the more restrictive parameters will take precedence.

Rating requirements and percentage limitations, where indicated, apply at the time of purchase. In the event a security held by the City is subject to a rating change that brings it below the minimum specified rating requirement, the Director of Finance Director shall notify the City Council of the change. The course of action to be followed will then be decided on a case-by-case basis, considering such factors as the reason for the rate drop, prognosis for recovery or further rate drops, and the market price of the security.

Eligible Authorized Investments

1. Securities of the U.S. Government:

United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limitation as to the percentage of the City’s portfolio that may be invested in this category.

2. Securities of U.S. Government Agencies
Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government- sponsored enterprises. There is no limitation as to the percentage of the City’s portfolio that may be invested in this category, provided that no more than 30% of the portfolio may be invested in any single Agency/GSE issuer, the maximum maturity may not exceed five (5) years, and the maximum percent of agency callable securities in the portfolio will be 20%.

3. California State and Local Agency Obligations

Obligations of the City, the State of California or any local agency within the state that are general obligation bonds or essential service bonds secured with revenue from a water, sewer, power or electric system, provided that such obligations are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (NRSRO.) No more than 5 percent of the portfolio may be invested in any single issuer. No more than 30 percent of the portfolio may be invested in California State and Local Agency Obligations and other state obligations in the aggregate. The maximum maturity may not exceed five years.

4. Other State Obligations

Registered treasury notes or bonds of any of the other 49 United States in addition to California, including general obligation bonds or bonds payable solely out of the revenues from a revenue-producing property owned, controlled or operated by a state or by a department, board, agency or authority of any of the other 49 United States, in addition to California, provided that such obligations are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 5 percent of the portfolio may be invested in any single issuer. No more than 30 percent of the portfolio may be invested in other state obligations and California State and Local Agency Obligations in the aggregate.

The maximum maturity may not exceed five years.

5. Banker’s Acceptances

Time drafts or bills of exchange that are drawn on and accepted by a commercial bank and brokered to investors in the secondary market. Purchasers are limited to issuers whose short-term debt is rated in the highest short-term rating category by a NRSRO. Banker’s acceptances cannot exceed a maturity of 180 days. A maximum of 40% of the City’s portfolio may be invested in this category.

6. Commercial paper

The City may purchase commercial paper with short-term ratings of “A-1” or the equivalent or higher by a NRSRO. Long-term ratings, if any, must be “A” category or its equivalent or higher by a NRSRO. The entity that issues the commercial paper shall meet all the following conditions in either paragraph (A) or paragraph (B):
(A) The entity meets the following criteria: (i) Is organized and operating in the United States as a general corporation. (ii) Has total assets of more than five hundred million dollars ($500,000,000). (iii) Has debt other than commercial paper, if any, that is rated in the “A” category or its equivalent or higher by a NRSRO
(B) The entity meets the following criteria: (i) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (ii) Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. (iii) Has commercial paper that is rated “A-1” or higher, or the equivalent, by a NRSRO.

Eligible commercial paper shall have a maximum maturity of 270 397 days or less and not represent more than 10 percent of the outstanding paper of an issuing corporation. A maximum of 25 percent of the City’s portfolio may be invested in this category. Under a provision sunsetting on January 1, 20262031, no more than 40 percent of the portfolio may be invested in Commercial Paper if the City’s investment assets under management are greater than $100,000,000.

7. Negotiable Certificates of Deposit (NCDs)

Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a state or federally licensed branch of a foreign bank. Amounts of the NCD insured up to the FDIC limit do not require any credit rating. Any amount above the FDIC insured limit which has short-term ratings of “A-1” or its equivalent or higher by a NRSRO; or long-term obligations rated in a category of “A” or its equivalent or higher by a NRSRO may be purchased. A maximum of 30 percent of the City’s portfolio may be invested in this category. No more than 5 percent of the portfolio may be invested in any single issuer.

8. Time Deposits

The City may invest in non-negotiable time deposits (CDs) that are FDIC insured or fully collateralized in financial institutions located in California, including United States branches of foreign banks licensed to do business in California.

To be eligible for purchase, the financial institution must have received a minimum overall satisfactory rating for meeting the credit needs of California Communities in its most recent evaluation, as provided Government Code Section 53635.2. Purchases are further limited to financial institutions meeting all capital requirements and rated in one of the three highest rating categories by an NRSRO organization. All time deposits must be collateralized in accordance

with California Government Code sections 53650 et. seq. The City, at its discretion, may waive the collateralization requirements for any portion of the deposit that is covered by federal insurance. The maximum maturity of a time certificate of deposit shall not exceed 1 year. A maximum of 30 percent of the City’s portfolio may be invested in this category.

9. Repurchase Agreements

The City may enter into repurchase agreements with primary government securities dealers rated in one of the three highest categories by two NRSROs.

Counterparties should also have (i) a short-term credit rating in the highest category; (ii) minimum assets and capital size of $25 billion in assets and $350 million in capital; (iii) five years of acceptable audited financial results; and (iv) a strong reputation among market participants.

The following collateral restrictions will be observed: Only U.S. Treasury securities or Federal Agency securities will be acceptable collateral. All securities underlying repurchase agreements must be delivered to the City’s custodian bank delivery versus payment or be handled under a properly executed tri-party repurchase agreement. The total market value of all collateral for each repurchase agreement must equal or exceed 102 percent of the total dollar value of the money invested by the City for the term of the investment.

Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third-party custodian. For any repurchase agreement with a term of more than one day, the value of the underlying securities must be reviewed on a weekly basis according to market conditions. Since the market value of the underlying securities is subject to daily market fluctuations, the investment in repurchase agreements shall comply if the value of the underlying securities is brought back up to 102 percent no later than the next business day. Market value must also 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 shall have properly executed a master repurchase agreement with each counter party with which it enters into repurchase agreements.

Repurchase agreements are to be used solely as short-term investments not to exceed 90 days. A maximum of 15 percent of the City’s portfolio may be invested in this category.

10. Medium Term Notes

Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Purchases are limited to securities rated in a rating category of “A” or its equivalent or better by at least one NRSRO. A maximum of 30 percent

of the City’s portfolio may be invested in this category. No more than 5% of the portfolio may be invested in any single issuer.

11. Asset-Backed Securities

A mortgage pass-through security, collateralized mortgage obligation, mortgage- backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond from issuers not defined in subsections 1 and 2 of the Eligible Investments Section, of a legal final maturity not exceeding five years. Securities eligible for investment under this subdivision must be rated in in a rating category of “AA” or its equivalent or better by a NRSRO. A maximum of 20 percent of the City’s portfolio may be invested in this category. No more than 5% of the portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer.

12. Supranational Securities

United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter- American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Securities eligible for investment under this subdivision must be rated in a rating category of “AA” or its equivalent or better by a NRSRO. A maximum of 30 percent of the City’s portfolio may be invested in this category. No more than 10% of the portfolio may be invested in any single issuer.

13. Money Market Funds

Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). To be eligible for purchase, the company shall have met either of the following criteria:

(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.

(B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of $500,000,000.

A maximum of 20 percent of the City’s portfolio may be invested in this category (10 percent limit per fund).

14. State of California’s Local Agency Investment Fund (LAIF)

The Local Agency Investment Fund was established by the State to enable local agency treasurers to place funds in a pool for investment (California Government Code Section 16429.1 et seq.). The City uses this investment vehicle for short-term liquidity, investment, and yield when rates are declining.

Funds are available on demand and interest is paid quarterly. The City may invest up to the maximum permitted by LAIF.

15. Local Government Investment Pools

Shares of beneficial interest issued by a joint powers authority organized pursuant to Government Code Section 6509.7 that invests the securities and obligations authorized in subdivisions (a) to (r), inclusive, of Government Code Section 53601.

IX. Investment Pools/Mutual Funds

The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Director of Finance Director shall develop a questionnaire, which will answer the following general questions:

 A description of eligible investment securities, and a written statement of investment policy and objectives.
 A description of interest calculations and how it is distributed, and how gains and losses are treated.
 A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.  A description of who may invest in the program, how often, and what size deposit and withdrawal are allowed.
 A schedule for receiving statements and portfolio listings.  Are reserves, retained earnings, etc. utilized by the pool/fund?  A fee schedule, and when and how it is assessed.
 Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

X. DIVERSIFICATION AND RISK MANAGEMENT

Mitigating Credit Risk in the Portfolio

Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:

 The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.

 No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.

 The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or Agency’s risk preferences.

 If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:

 Any actions taken related to the downgrade by the investment manager will be communicated to the Director of Finance Director in a timely manner.

 If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.

Mitigating Market Risk in the Portfolio

Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer- term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The Agency, therefore, adopts the following strategies to control and mitigate its exposure to market risk:

 The City will maintain a minimum of six months of budgeted operating expenditures in short-term investments to provide sufficient liquidity for expected disbursements.

 The maximum stated final maturity of individual securities in the portfolio will be five (5) years as measured from date of trade settlement, except as otherwise stated in this policy.

 The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

Maximum maturities may not exceed five years.

XI. MAXIMUM MATURITY

The City’s cash management system is fully designed to accurately monitor and forecast revenues and expenditures thus enabling the City to invest funds possible.

To the extent possible, the City will attempt to match investments with anticipated cash flow requirements. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds.

Where this Policy does not specify a maximum remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase agreement, that at the time of the investment has a term remaining to maturity in excess of five years as measured from date of trade settlement, unless the City Council has granted express authority to make that investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.

XII. INELIGIBLE INVESTMENTS

Investments not described herein, including but not limited to common stocks and financial futures contracts and options, are prohibited. in this fund. The City shall not invest any funds in inverse floaters, range notes, mortgage derived interest-only strips or in any security that could result in zero interest accrual if held to maturity.

The purchase of any security not listed in Section 8 above, but permitted by the California Government Code, is prohibited unless the City Council approves the investment specifically or as a part of an investment program approved by the City Council. Securities with a trade settlement period longer than 45 days are prohibited.

XIII. BANKS AND SECURITIES DEALERS

Unless the City has an external investment advisor, Tthe Director of Finance Director shall maintain a list of authorized broker/dealers and financial institutions, which are approved for investment purposes. It shall be the City’s policy to purchase securities only from those authorized institutions and firms. The City shall annually send a copy of the current investment policy to all dealers approved to do business with the City. Each broker dealer or financial institution that has been authorized by the City shall be required to submit the firm’s most recent financial statements. If an investment advisor is used, they may use their own list of approved broker/dealers and financial institutions for investment purposes.

XIV. SAFEKEEPING AND CUSTODY

All security transactions entered by the City shall be conducted on a delivery- versus-payment (DVP) basis. All cash and securities in the City’s portfolio, including those that are managed by an investment advisor, shall be held in safekeeping in the City’s name by a third-party bank trust department, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. The only exception to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time

certificates of deposit, and, (iii) money market mutual funds, since the purchased securities are not deliverable. Evidence of each of these investments will be held in the Treasury vault. The safekeeping institution shall annually provide a copy of their most recent report on internal controls (Statement of Auditing Standards No. 70, or SAS 70).

XV. PERFORMANCE STANDARDS

The investment portfolio will be designed to obtain a market-average rate of return during budgetary and economic cycles, considering the City’s investment risk constraints and cash flow needs.

XVI. REPORTING REQUIREMENTS

A Quarterly Investment report shall be provided to the City Council, City Manager, and Director of Finance Director.

1. A quarterly investment report will be submitted within 60 45 days following the period being reported to the City Council. Reports of the investment of bond proceeds are issued monthly by the Trustee and are included in the quarterly report of the pooled investment fund. The quarterly investment report shall include information on the following:
 Type of Investment
 Issuer
 Date of Maturity
 Par and dollar amount invested on all securities
 Current market value of each security and the source of the valuation  Credit quality of each investment, as determined by one or more nationally recognized credit rating services
 Listing of investment transactions for the quarter being reported upon.  Statement that portfolio follows investment policy, or the way the portfolio is not in compliance
 Statement denoting ability of City to meet its expenditure requirements for the next six months, or provide enough explanation why money is not available

XVII. INVESTMENT POLICY REVIEW

The Director of Finance Director shall periodically submit to the City Council a statement of investment policy outlining any proposed changes, which the City Council must consider at a public meeting.

Glossary of Terms

Accrued Interest: Interest earned but not yet received.

Active Deposits: Funds which are immediately required for disbursement.

Amortization: An accounting practice of gradually decreasing (increasing) an asset's book value by spreading its depreciation (accretion) over a period.

Annual Comprehensive Financial Report (ACFR): The official annual financial report for public sector entities/companies. It includes five combined statements and basic financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles (GAAP).

Arbitrage: Transactions by which securities are bought and sold in different markets at the same time for the sake of the profit arising from a yield difference in the two markets.

Asked Price: The price a broker/dealer offers to sell securities.

Average Life: The average length of time that an issue of serial bonds and/or term bonds with a mandatory sinking fund features is expected to be outstanding.

Asset-Backed Securities (ABS): Securities that are supported by pools of assets, such as installment loans or leases, or by pools of revolving lines of credits. Asset-backed securities are structured as trusts in order to perfect a security interest in the underlying assets.

Bankers’ Acceptance (BA): A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

Basis Point: One basis point is one hundredth of one percent (.01).

Benchmark: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

Bid Price: The price a broker/dealer offers to purchase securities.

Bond: A financial obligation for which the issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.

Book Entry: The system maintained by the Federal Reserve, by which most money market securities are delivered to an investor’s custodial bank. The Federal Reserve maintains a computerized record of the ownership of these securities and records any

changes in ownership corresponding to payments made over the Federal Reserve wire (delivery versus payment.)

Book Value: The value at which a debt security is shown on the holder's balance sheet.

Book value is acquisition cost less amortization of premium or accretion of discount.

Broker: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not take a position. In the money market, brokers are active in markets in which banks buy and sell money and in interdealer markets.

Callable Bond: A bond issue in which all or part of its outstanding principal amount may be redeemed before maturity by the issuer under specified conditions.

Call Price: The price at which an issuer may redeem a bond prior to maturity. The price is usually at a slight premium to the bond's original issue price to compensate the holder for loss of income and ownership.

Call Risk: The risk to a bondholder that a bond may be redeemed prior to maturity.

Cash Sale/Purchase: A transaction which calls for delivery and payment of securities on the same day that the transaction is initiated.

Certificate of Deposit (CD): A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CDs are typically negotiable.

Collateral: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

Commercial Paper: A short-term, unsecured, and negotiable promissory note with a fixed maturity of no more than 270 days. By statute, these issues are exempt from registration with the U.S. Securities and Exchange Commission.

Convexity: A measure of a bond's price sensitivity to changing interest rates. A high convexity indicates greater sensitivity of a bond's price to interest rate changes.

Coupon: The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value.

Credit Analysis: A critical review and appraisal of the economic and financial conditions or of the ability to meet debt obligations.

Credit Rating: Various alphabetical and numerical designations used by institutional investors, Wall Street underwriters, and commercial rating companies to give relative indications of bond and note creditworthiness. S&P Global and Fitch Ratings use the same system, starting with their highest rating of AA, AA, A, BBB, BB, B, CCC, CC, C and D for default. Moody’s Investors Services uses Aaa, Aa, A Baa, Ba, B, Caa, Ca, C, and D.

Each of the services use pluses (+), minuses (-), or numerical modifiers to indicate steps within each category. The top four-letter categories are considered investment grade ratings.

Credit Risk: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security and a loss will result.

Current Yield: The interest paid on an investment expressed as a percentage of the current price of the security.

CUSIP Number: the Committee on Uniform Security Information Procedures (CUSIP) Number refers to a security’s identification number assigned to each publicly traded security by the CUSIP Service Bureau operated by S&P Global for the American Bankers Association. The CUSIP Number is a nine-characters identifier unique to the issuer, the specific issue and the maturity, if applicable (the first six characters identifying the issuer, the next two identifying the security and the last digit provides a check digit to validate the accuracy of the preceding CUSIP number).

Custodian: A bank or other financial institution that keeps custody of stock certificates and other assets.

Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his or her own account.

Debenture: A bond secured only by the general credit of the issuer.

Defeased Bond Issues: Issues that have sufficient money to retire outstanding debt when due so that the agency is released from the contracts and covenants in the bond document.

Delivery versus Payment: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt (also called free delivery). Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

Derivative: Securities that are based on, or derived from, some underlying asset, reference date, or index.

Discount: The difference between the cost of a security and its value at maturity when quoted at lower than face value.

Diversification: Dividing investment funds among a variety of securities offering independent returns.

Duration: A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity.

The duration of a security is a useful indicator of its price volatility for given changes in interest rates.

Face Value: The principal amount owed on a debt instrument. It is the amount on which interest is computed and represents the amount that the issuer promises to pay at maturity.

Fair Value: The amount at which a security could be exchanged between willing parties, other than in a forced or liquidation sale. If a market price is available, the fair value is equal to the market value.

Federal Farm Credit Bank (FFCB): Government-sponsored institution that consolidates the financing activities of the Federal Land Banks, the Federal Intermediate Credit Banks and the Banks for Cooperatives. Its securities do not carry direct U. S. Government guarantees.

Federal Funds Rate: The rate of interest at which Federal funds are traded. This rate is considered the most sensitive indicator of the direction of interest rates, as it is currently pegged by the Federal Reserve through open-market operations.

Federal Home Loan Banks (FHLB): Government sponsored wholesale banks, which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank.

Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac): Established in 1970 to help maintain the availability of mortgage credit for residential housing. FHLMC finances these operations by marketing guaranteed mortgage certificates and mortgage participation certificates. Its discount notes and bonds do not carry direct U.S.

Government guarantees.

Federal National Mortgage Association (FNMA): FNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (H.U.D.). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

Federal Open Market Committee (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

Federal Reserve System: The central bank of the U.S., which consists of seven-member Board of Governors, 12 regional banks, and about 5,700 commercial banks that are members.

Fiduciary: A person who holds something in trust for another and bears liability for its safekeeping.

Financial Industry Regulatory Authority (FINRA): A self-regulatory organization (SRO) of brokers and dealers in the over the counter securities business. Its regulatory mandate includes authority over business dealings conducted between dealers, brokers and all public investors.

Fitch IBCA, Inc. (Fitch): One of the three best-known rating agencies in the United States, the others being Moody’s Investment Service, Inc. and Standard and Poor’s CorporationS&P Global.

Government Accounting Standards Board (GASB): A standard-setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units.

Government National Mortgage Association (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions.

Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by FHA or VA mortgages. The term pass-through is often used to describe Ginnie Maes.

Government Securities: An obligation of the U.S. government, backed by the full faith and credit of the government. These securities are regarded as the highest quality of investment securities available in the U.S. securities market. See "Treasury Bills, Notes, and Bonds."

Guaranteed Investment Contracts (GICS): An agreement acknowledging receipt of funds, for deposit, specifying terms for withdrawal, and guaranteeing a rate of interest to be paid.

Inactive Deposits (Idle Funds): Funds not immediately needed for disbursement.

Investment-Grade Obligations: An investment instrument suitable for purchase by institutional investors under the prudent person rule. Investment-grade is restricted to those obligations rated BBB or higher by a rating agency.

Interest Rate Risk: The risk of gain or loss in market values of securities due to changes in interest-rate levels. For example, rising interest rates will cause the market value of portfolio securities to decline.

Inverse Floating Rate Note: A debt security with an interest rate stated as a fixed rate minus an index. This calculation causes the rate on the inverse floater to move in the opposite direction of general interest rates. This instrument generally performs well in a declining interest rate environment but will lose value if rates rise.

Liquidity: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between the bid and asked prices is narrow and reasonable size can be done at those quotes.

Local Agency: County, City, City and County, including a chartered city or county, school district, community college district, public district, or any public or municipal corporation.

Local Agency Investment Fund (LAIF): An investment pool managed by the California State Treasurer. Local government units, with consent of the governing body of that agency, may voluntarily deposit surplus funds for the purpose of investment. Interest earned is distributed by the State Controller to the participating governmental agencies on a quarterly basis.

Make whole call: A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."

Mark-to-market: The process whereby the book value or collateral value of a security is adjusted to reflect its current market value.

Market Risk: Systematic risk of a security that is common to all securities of the same general class (stocks, bonds, notes, money market instruments) and cannot be eliminated by diversification (which may be used to eliminate non-systematic risk).

Market Value: The price at which a security is trading and could presumably be sold.

Master Repurchase Agreement: A written contract covering all future transactions between the parties to repurchase agreements and reverse repurchase agreements that establish each person’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.

Maturity: The date upon which the principal or stated value of an investment becomes due and payable.

Medium Term Notes: Instruments issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.

Modified Duration: A measure of exposure to market risk of a security or a portfolio. It is the percent change in the price of a security (portfolio) or a 100-basis point change in the security’s (portfolio’s) yield.

Money Market: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptance, etc.) are issued and traded.

Money Market Mutual Fund: Mutual funds that invest solely in money market instruments (short-term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos and federal funds).

Moody’s: Moody’s Investment Service, Inc. One of the three best-known rating agencies in the United States, the others being Standard and Poor’s Corporation (S&P) and Fitch IBCA, Inc. (Fitch).

National Association of Securities Dealers (NASD): A self-regulatory organization (SRO) of brokers and dealers in the over-the-counter securities business. Its regulatory mandate includes authority over firms that distribute mutual fund shares as well as other securities.

National Recognized Statistical Rating Organization (NRSRO)::

A rating organization designated by the SEC as being nationally recognized, such as Moody's Investor Service, Inc. (Moody’s), Standard & Poor’s (S&P)S&P Global (S&P), and Fitch Ratings (Fitch).

Net Asset Value: The market value of one share of an investment company, such as a mutual fund. This figure is calculated by totaling a fund's assets, which includes securities, cash, and any accrued earnings, subtracting this from the fund's liabilities and dividing this total by the number of shares outstanding. This is calculated once a day based on the closing price for each security in the fund's portfolio. [(Total assets) - (Liabilities)] / (Number of shares outstanding)

Negotiable Certificate of Deposit: A large denomination certificate of deposit, which can be sold in the open market prior to maturity.

Nominal Yield: The stated rate of interest that a bond pays its current owner, based on par value of the security. It is also known as the "coupon," "coupon rate," or "interest rate."

New Issue: Term used when a security is originally "brought" to market.

Note: A written promise to pay a specified amount to a certain entity on demand or on a specified date.

Open Market Operations: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the Federal Open Market Committee, (FOMC), to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of

money and credit: Sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.

Par Value: The amount of principal that must be paid at maturity. Also referred to as the face amount of a bond, normally quoted in $1,000 increments per bond.

Portfolio: Collection of securities held by an investor.

Premium: The amount by which the price paid for a security exceeds the security's par value.

Primary Dealer: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities, broker/dealers, banks and a few unregulated firms.

Principal: The face value or par value of a debt instrument, or the amount of capital invested in a given security.

Prospectus: A legal document that must be provided to any prospective purchaser of a new securities offering registered with the SEC that typically includes information on the issuer, the issuer’s business, the proposed use of proceeds, the experience of the issuer’s management, and certain certified financial statements (also known as an “official statement”).

Prudent Investor Standard: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state, the so-called legal list. In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

Purchase Date: The date in which a security is purchased for settlement on that or a later date.

Range Note: A debt security with a varied interest payment that depends on the number of days the designated index falls within (or in some cases outside) an established range of interest rates. Should rates move beyond the range on either end, the investor faces the risk of a reduced or zero interest payment for the applicable interest period.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

Rating Agency: Nationally recognized credit rating agency such as Fitch, Moody’s or S&P Global.

Rating Category: A credit rating assignment by a Rating Agency shall mean (a) with respect to any long-term rating category, all ratings designated by a particular letter or combination of letters, without regard to any numerical modifier, plus or minus sign or other modifier, and (b) with respect to any short-term or commercial paper rating category, all ratings designated by a particular letter or combination of letters and taking into account any numerical modifier, but not any plus or minus sign or other modifier.

Repurchase Agreement (RP or Repo): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement and the terms of the agreement are structured to compensate the buyer for this. Dealers use RP extensively to finance their positions. Exception: when the Fed is said to be doing RP, it is lending money, which is increasing bank reserves.

Reverse Repurchase Agreement (Reverse Repo): A counter party (e.g. investment dealer) buys the securities from the holder of securities (e.g. the Agency) with an agreement to sell them back at a fixed date. The counter party in effect lends the seller, (e.g. the Agency) money for the period of the agreement with terms of the agreement structured to compensate buyer.

Risk: The uncertainty of maintaining the principal or interest associated with an investment due to a variety of factors.

Rule G-37 of the Municipal Securities Rulemaking Board: Federal regulations to sever any connection between the making of political contributions and the awarding of municipal securities.

Safekeeping: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

Safety: In the context of investing public funds, safety relates to preserving the principal of an investment in an investment portfolio; local agencies address the concerns of safety by controlling exposure to risks.

Secondary Market: A market for the repurchase and resale of outstanding issues following the initial distribution.

Securities: Investment instruments such as notes, bonds, stocks, money market instruments and other instruments of indebtedness of equity.

Sec Rule 15C3:1: See Uniform Net Capital Rule.

Securities and Exchange Commission: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

Settlement Date: The date on which a trade is cleared by delivery of securities against funds.

Serial Bond: A bond issue, usually of a municipality, with various maturity dates scheduled at regular intervals until the entire issue is retired.

Sinking Fund: Money accumulated on a regular basis in a separate custodial account that is used to redeem debt securities or preferred stock issues.

Spread: The difference between two figures or percentages. It may be the difference between the bid (price at which a prospective buyer offers to pay) and asked (price at which an owner offers to sell) prices of a quote, or between the amount paid when bought and the amount received when sold.

Standard and Poor’s GlobalCorporation (S&P): One of the three best-known rating agencies in the United States, the others being Moody’s Investment Service, Inc. and Fitch IBCA, Inc. (Fitch).

Strip (Bonds): Brokerage-house practice of separating a bond into its principal and interest, which are then sold as zero-coupon bonds.

Supranationals: Multi-national organizations whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in member countries.

Swap: An agreement between two parties (known as counterparties) where one stream of future interest payments is exchanged for another based on a specified principal amount.

Term Bond: Bonds comprising a large part or all of a particular issue, which come due in a single maturity. The issuer usually agrees to make periodic payments into a sinking fund for mandatory redemption of term bonds before maturity.

Time Certificate of Deposit: A non-negotiable certificate of deposit, which cannot be sold prior to maturity.

Total Return: The sum of all investment income plus changes in the capital value of the portfolio. For mutual funds, return on an investment is composed of share price appreciation plus any realized dividends or capital gains. This is calculated by taking the following components during a certain time period. (Price Appreciation) + (Dividends paid) + (Capital gains) = Total Return

Treasury Bills: A noninterest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year.

Treasury Bonds: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.

Treasury Notes: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.

Trustee or trust company or trust department of a bank: A financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract.

Underwriter: A dealer which purchases a new issue of municipal securities for resale.

Uniform Net Capital Rule: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

U.S. Government Agencies: Instruments issued by various U.S. Government Agencies most of which are secured only by the credit worthiness of the agency.

U.S. Treasury Obligations: Debt obligations of the United States Government sold by the Treasury Department in the forms of Bills, Notes, and Bonds. Bills are short-term obligations that mature in 1 year or less and are sold based on a rate of discount. Notes are obligations that mature between 1 year and 10 years. Bonds are long-term obligations that generally mature in 10 years or more.

Weighted Average Maturity (WAM): The average maturity of all the securities that comprise a portfolio that is typically expressed in days or years.

Yield: The rate of annual income returns on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

Yield to Maturity: The rate of income returns on an investment, minus any premium or plus any discount, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond, expressed as a percentage.

Yield Curve: A graphic representation that shows the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity.

Zero-coupon Securities: Security that is issued at a discount and makes no periodic interest payments. The rate of return consists of a gradual accretion of the principal of the security and is payable at par upon maturity.

CITY OF PITTSBURG

INVESTMENT POLICY
For Fiscal Year 2026-2027

I. Statement of Purpose and Adoption of Policy

The purpose of this Investment Policy (the “Policy”) is to establish strategies, practices, and procedures to be used in administering the City of Pittsburg (the “City”) portfolio. The goal is to establish guidelines to manage City funds to maximize security and liquidity while also complying with the Investment Policy and California Government Code Sections 53600 through 53686, which govern investments for municipal governments and while meeting the daily cash flow demands of the City.

Safeguards will be set into place to ensure that adequate operating reserves are established and maintained to provide that cash in enough amounts will be available to pay for immediate expenditures as authorized by the City’s budget.

Funds so maintained will be deposited in a manner best serving the City.

The City has a responsibility to monitor the security of its assets and always maintain a level of quality so that the public at large will have the highest confidence that its best interests are being served.

The purpose of this document is to identify various policies and procedures that enhance opportunities for a systemic investment process. The initial step toward a prudent investment policy is to organize and formalize investment related activities.

Related activities, which comprise good cash management, include accurate cash projection, the expeditious collection of revenue, the control of disbursements, cost effective banking relations and a short-term borrowing program, which coordinates working capital requirements and investment opportunities.

The City’s Investment Policy shall be adopted by resolution of City Council. The policy shall be reviewed at least annually by the City Treasurer, City Manager and the Finance Director, and any modification must be approved by City Council.

II. SCOPE

It is intended that this policy covers all operating funds and investment activities under the direct authority of the City. These funds are described in the City’s Annual Comprehensive Financial Report and include its General Fund, Special Revenue Funds, Debt Service Fund, Capital Projects Funds, Enterprise Funds, Custodial Funds, Internal Service Funds, Successor Agency Private-Purpose Trust Funds and any new fund created by the City Council unless specifically exempted.

The Investment Policy applies to all transactions involving the financial assets and related activities of the foregoing funds. Except for cash held in separate restricted funds, the City will pool cash balances from all funds for investments to maximize

earnings and efficiencies concerning investment pricing, safekeeping and administration. Investment income will be allocated to the City’s funds based upon their respective average monthly balances and in accordance with Generally Accepted Accounting Principles (GAAP).

This Investment Policy does not apply to the following financial assets:

 The City’s Deferred Compensation Plan, which is controlled by federal law, specific provisions of the City’s adopted Plan, and individual plan participants’ decisions.
 The City Employee Retirement Plan, which is subject to regulation by federal and state laws.
 Other Post-Employment Benefits (OPEB) Trust and Pension 115 Trust, which are invested pursuant to California Code and the Trusts’ separate long-term investment policy under the Trust Agreements.  Proceeds of debt issuance, which are invested in accordance with permitted investment provisions of their specific bond indentures.

III. OBJECTIVES AND PERFORMANCE STANDARDS

The City’s primary investment objective is to achieve a reasonable rate of return on public funds while minimizing the potential for capital losses arising from market changes or issuer default. Although pursuit of interest earnings on investment is appropriate City goal, the primary consideration is preservation of capital resources.

Thus, the City’s yield objective is to achieve a reasonable rate of return rather than the maximum generation of income that might expose the City to unacceptable levels of risk.

The overall program shall be designed and managed with a degree of professionalism worthy of public trust. The City’s primary investment objectives, in priority order, shall be:

1. Safety: Safety of principal is the foremost objective the City’s investment program, followed by liquidity and yield. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the City’s portfolio. To obtain this objective, the City will diversify its investment by investing funds among a variety of securities offering independent returns and financial institutions. Each investment transaction shall seek to first ensure that capital losses are avoided, whether they are from securities default or erosion of market value. Investment decisions should not incur unreasonable investment risks in order to obtain current investment income.

2. Liquidity: The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements, which might be reasonably anticipated. This need for investment liquidity may be tempered to the extent that the City is able to issue short-term notes to meet its operating requirements. Emphasis will be on marketable securities with low sensitivity to

market risk. Maturities of investments for which there is limited opportunity for resale shall be staggered to maximize liquidity.

3. Yield: The City maintains an active investment strategy and its investment portfolio shall be designed to attain a rate of return which approximates benchmarks to be selected by the Director of Finance and the City Treasurer throughout budgetary and economic cycles, taking into account the City’s investment risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restricts the investment of funds.

IV. DELEGATION OF AUTHORITY

Pursuant to California Government Code 53607 and the City’s Municipal Code, the City Council’s management responsibility for the investment program is hereby delegated for a one-year period to the Director of Finance, who shall be responsible for the investment of idle funds consistent with this investment policy. Subject to review, the City Council may renew the delegation of authority pursuant to this section each year. The Director of Finance may delegate these duties to his/her designee upon approval of the City Council. The day-to-day investment decision- making and execution authority may also be delegated to an external investment advisor under the supervision of the Director of Finance. The investment advisor must be registered with the Securities and Exchange Commission (SEC) under the Investment Advisors Act of 1940 and shall follow this Policy and such other written instructions as are provided by the City.

V. PRUDENCE AND RISK TOLERANCE

The City recognizes that investment risks of the following can result from issuer defaults, market price changes or various technical complications leading to temporary liquidity:

1. Credit risk is the possibility that deterioration of an issuer’s creditworthiness will adversely affect the value of its bonds or that an issuer will not make timely payments of interest or principal on its bonds (default). A decline in a bond issuer’s credit rating, or creditworthiness, may cause prices for its outstanding bonds to decline. This shall be mitigated by limiting investments to high quality securities allowed under this policy and by diversification.

2. Market or Interest Rate risk, defined as market value fluctuations due to overall changes in market price, shall be mitigated by eliminating the need to sell securities prior to maturity and investing operating funds needed for short-term liquidity primarily in short-term securities, money market funds or similar investment pools, thereby limiting the average maturity of the portfolio.

Investment shall be made with that degree of 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 safety of their capital as well as the income to be derived.

The standard of prudence to be used by investment officers shall be the “prudent investor standard” as defined in California Government Code Section 53600.3 and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the City’s investment policy and exercising due diligence shall be relieved of personal liability for an individual security’s credit risk or market price changes, if deviations from expectations are reported in a timely fashion, and appropriate action is taken to control adverse developments.

VI. INTERNAL CONTROLS

A system of internal controls will be maintained to assure compliance with Federal and State regulations, City Council direction, and prudent cash management procedures.

The controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets or imprudent actions by employees and officers of the City.

Controls deemed most important include: control of collusion, segregation of duties, separating transaction authority from accounting and recordkeeping, custodial safekeeping, clear delegation of authority, specific limitations regarding securities losses and remedial action, written confirmation of transactions, minimizing the number of authorized investment officials, documentation of transactions and strategies, and code of ethical standards. In addition, whenever possible, pre- formatted wire transfers will be used to transfer funds to pre-authorized accounts.

1. The City Treasurer shall audit and examine all investments made by the City, or its duly authorized personnel, at those times deemed necessary by him/her and shall in his/her discretion report his/her audit and examination to the City Council.

2. Investment Oversight Committee: Quarterly review of procedures and adherence to this Investment Policy is conducted by the Investment Oversight Committee. The Committee, established by the City Council, is comprised of the City Manager, Director of Finance, and City Treasurer.

3. Annual Audit: The City’s portfolio is included in the annual review of the City’s financial management performed by an outside audit firm.

VII. ETHICS AND CONFLICTS OF INTEREST

Officers and employees involved in the investment process shall not participate in personal business activity that could conflict with proper execution of the investment program, or which could impair the ability to make impartial investment decisions.

Such employees and investment officials shall disclose any material financial

interests in financial institutions that conduct business with the City, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City's portfolio.

VIII. AUTHORIZED INVESTMENTS

California Government Code Sections 53600 et. seq. provides basic investment limits and guidelines for government entities. Within the investments permitted by the Government Code, the City seeks to further restrict authorized investment to the investments listed below. In the event an apparent discrepancy is found between this policy and the Government Code, the more restrictive parameters will take precedence.

Rating requirements and percentage limitations, where indicated, apply at the time of purchase. In the event a security held by the City is subject to a rating change that brings it below the minimum specified rating requirement, the Director of Finance shall notify the City Council of the change. The course of action to be followed will then be decided on a case-by-case basis, considering such factors as the reason for the rate drop, prognosis for recovery or further rate drops, and the market price of the security.

Authorized Investments

1. Securities of the U.S. Government:

United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limitation as to the percentage of the City’s portfolio that may be invested in this category.

2. Securities of U.S. Government Agencies
Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government- sponsored enterprises. There is no limitation as to the percentage of the City’s portfolio that may be invested in this category, provided that no more than 30% of the portfolio may be invested in any single Agency/GSE issuer, the maximum maturity may not exceed five (5) years, and the maximum percent of agency callable securities in the portfolio will be 20%.

3. California State and Local Agency Obligations

Obligations of the City, the State of California or any local agency within the state that are general obligation bonds or essential service bonds secured with revenue from a water, sewer, power or electric system, provided that such obligations are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (NRSRO.) No more than 5 percent of the portfolio may be invested in any single issuer. No more

than 30 percent of the portfolio may be invested in California State and Local Agency Obligations and other state obligations in the aggregate. The maximum maturity may not exceed five years.

4. Other State Obligations

Registered treasury notes or bonds of any of the other 49 United States in addition to California, including general obligation bonds or bonds payable solely out of the revenues from a revenue-producing property owned, controlled or operated by a state or by a department, board, agency or authority of any of the other 49 United States, in addition to California, provided that such obligations are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 5 percent of the portfolio may be invested in any single issuer. No more than 30 percent of the portfolio may be invested in other state obligations and California State and Local Agency Obligations in the aggregate.

The maximum maturity may not exceed five years.

5. Banker’s Acceptances

Time drafts or bills of exchange that are drawn on and accepted by a commercial bank and brokered to investors in the secondary market. Purchasers are limited to issuers whose short-term debt is rated in the highest short-term rating category by a NRSRO. Banker’s acceptances cannot exceed a maturity of 180 days. A maximum of 40% of the City’s portfolio may be invested in this category.

6. Commercial paper

The City may purchase commercial paper with short-term ratings of “A-1” or the equivalent or higher by a NRSRO. Long-term ratings, if any, must be “A” category or its equivalent or higher by a NRSRO. The entity that issues the commercial paper shall meet all the following conditions in either paragraph (A) or paragraph (B):
(A) The entity meets the following criteria: (i) Is organized and operating in the United States as a general corporation. (ii) Has total assets of more than five hundred million dollars ($500,000,000). (iii) Has debt other than commercial paper, if any, that is rated in the “A” category or its equivalent or higher by a NRSRO
(B) The entity meets the following criteria: (i) Is organized within the United States as a special purpose corporation, trust, or limited liability company. (ii) Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. (iii) Has commercial paper that is rated “A-1” or higher, or the equivalent, by a NRSRO.

Eligible commercial paper shall have a maximum maturity of 397 days or less. A maximum of 25 percent of the City’s portfolio may be invested in this category.

Under a provision sunsetting on January 1, 2031, no more than 40 percent of

the portfolio may be invested in Commercial Paper if the City’s investment assets under management are greater than $100,000,000.

7. Negotiable Certificates of Deposit (NCDs)

Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a state or federally licensed branch of a foreign bank. Amounts of the NCD insured up to the FDIC limit do not require any credit rating. Any amount above the FDIC insured limit which has short-term ratings of “A-1” or its equivalent or higher by a NRSRO; or long-term obligations rated in a category of “A” or its equivalent or higher by a NRSRO may be purchased. A maximum of 30 percent of the City’s portfolio may be invested in this category. No more than 5 percent of the portfolio may be invested in any single issuer.

8. Time Deposits

The City may invest in non-negotiable time deposits (CDs) that are FDIC insured or fully collateralized in financial institutions located in California, including United States branches of foreign banks licensed to do business in California.

To be eligible for purchase, the financial institution must have received a minimum overall satisfactory rating for meeting the credit needs of California Communities in its most recent evaluation, as provided Government Code Section 53635.2. Purchases are further limited to financial institutions meeting all capital requirements and rated in one of the three highest rating categories by an NRSRO organization. All time deposits must be collateralized in accordance with California Government Code sections 53650 et. seq. The City, at its discretion, may waive the collateralization requirements for any portion of the deposit that is covered by federal insurance. The maximum maturity of a time certificate of deposit shall not exceed 1 year. A maximum of 30 percent of the City’s portfolio may be invested in this category.

9. Repurchase Agreements

The City may enter into repurchase agreements with primary government securities dealers rated in one of the three highest categories by two NRSROs.

Counterparties should also have (i) a short-term credit rating in the highest category; (ii) minimum assets and capital size of $25 billion in assets and $350 million in capital; (iii) five years of acceptable audited financial results; and (iv) a strong reputation among market participants.

The following collateral restrictions will be observed: Only U.S. Treasury securities or Federal Agency securities will be acceptable collateral. All securities underlying repurchase agreements must be delivered to the City’s custodian bank delivery versus payment or be handled under a properly executed tri-party repurchase agreement. The total market value of all collateral

for each repurchase agreement must equal or exceed 102 percent of the total dollar value of the money invested by the City for the term of the investment.

Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third-party custodian. For any repurchase agreement with a term of more than one day, the value of the underlying securities must be reviewed on a weekly basis according to market conditions. Since the market value of the underlying securities is subject to daily market fluctuations, the investment in repurchase agreements shall comply if the value of the underlying securities is brought back up to 102 percent no later than the next business day. Market value must also 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 shall have properly executed a master repurchase agreement with each counterparty with which it enters into repurchase agreements. Repurchase agreements are to be used solely as short-term investments not to exceed 90 days. A maximum of 15 percent of the City’s portfolio may be invested in this category.

10. Medium Term Notes

Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Purchases are limited to securities rated in a rating category of “A” or its equivalent or better by at least one NRSRO. A maximum of 30 percent of the City’s portfolio may be invested in this category. No more than 5% of the portfolio may be invested in any single issuer.

11. Asset-Backed Securities

A mortgage pass-through security, collateralized mortgage obligation, mortgage- backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond from issuers not defined in subsections 1 and 2 of the Eligible Investments Section, of a legal final maturity not exceeding five years. Securities eligible for investment under this subdivision must be rated in in a rating category of “AA” or its equivalent or better by a NRSRO. A maximum of 20 percent of the City’s portfolio may be invested in this category. No more than 5% of the portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer.

12. Supranational Securities

United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter- American Development Bank, with a maximum remaining maturity of five years

or less, and eligible for purchase and sale within the United States. Securities eligible for investment under this subdivision must be rated in a rating category of “AA” or its equivalent or better by a NRSRO. A maximum of 30 percent of the City’s portfolio may be invested in this category. No more than 10% of the portfolio may be invested in any single issuer.

13. Money Market Funds

Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.). To be eligible for purchase, the company shall have met either of the following criteria:

(A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs.

(B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of $500,000,000.

A maximum of 20 percent of the City’s portfolio may be invested in this category (10 percent limit per fund).

14. State of California’s Local Agency Investment Fund (LAIF)

The Local Agency Investment Fund was established by the State to enable local agency treasurers to place funds in a pool for investment (California Government Code Section 16429.1 et seq.). The City uses this investment vehicle for short-term liquidity, investment, and yield when rates are declining.

Funds are available on demand and interest is paid quarterly. The City may invest up to the maximum permitted by LAIF.

15. Local Government Investment Pools

Shares of beneficial interest issued by a joint powers authority organized pursuant to Government Code Section 6509.7 that invests the securities and obligations authorized in subdivisions (a) to (r), inclusive, of Government Code Section 53601.

IX. Investment Pools/Mutual Funds

The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. The Director of Finance shall develop a questionnaire, which will answer the following general questions:

 A description of eligible investment securities, and a written statement of investment policy and objectives.
 A description of interest calculations and how it is distributed, and how gains and losses are treated.
 A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.  A description of who may invest in the program, how often, and what size deposit and withdrawal are allowed.
 A schedule for receiving statements and portfolio listings.  Are reserves, retained earnings, etc. utilized by the pool/fund?  A fee schedule, and when and how it is assessed.
 Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds?

X. DIVERSIFICATION AND RISK MANAGEMENT

Mitigating Credit Risk in the Portfolio

Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:

 The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.

 No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy.

 The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or Agency’s risk preferences.

 If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:

 Any actions taken related to the downgrade by the investment manager will be communicated to the Director of Finance in a timely manner.

 If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.

Mitigating Market Risk in the Portfolio

Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-

term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The Agency, therefore, adopts the following strategies to control and mitigate its exposure to market risk:

 The City will maintain a minimum of six months of budgeted operating expenditures in short-term investments to provide sufficient liquidity for expected disbursements.

 The maximum stated final maturity of individual securities in the portfolio will be five (5) years as measured from date of trade settlement, except as otherwise stated in this policy.

 The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

Maximum maturities may not exceed five years.

XI. MAXIMUM MATURITY

The City’s cash management system is fully designed to accurately monitor and forecast revenues and expenditures thus enabling the City to invest funds possible.

To the extent possible, the City will attempt to match investments with anticipated cash flow requirements. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds.

Where this Policy does not specify a maximum remaining maturity at the time of the investment, no investment shall be made in any security, other than a security underlying a repurchase agreement, that at the time of the investment has a term remaining to maturity in excess of five years as measured from date of trade settlement, unless the City Council has granted express authority to make that investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.

XII. INELIGIBLE INVESTMENTS

Investments not described herein, including but not limited to common stocks and financial futures contracts and options, are prohibited. The City shall not invest any funds in inverse floaters, range notes, mortgage derived interest-only strips or in any security that could result in zero interest accrual if held to maturity. The purchase of any security not listed in Section 8 above, but permitted by the California Government Code, is prohibited unless the City Council approves the

investment specifically or as a part of an investment program approved by the City Council. Securities with a trade settlement period longer than 45 days are prohibited.

XIII. BANKS AND SECURITIES DEALERS

Unless the City has an external investment advisor, the Director of Finance shall maintain a list of authorized broker/dealers and financial institutions, which are approved for investment purposes. It shall be the City’s policy to purchase securities only from those authorized institutions and firms. The City shall annually send a copy of the current investment policy to all dealers approved to do business with the City. Each broker dealer or financial institution that has been authorized by the City shall be required to submit the firm’s most recent financial statements. If an investment advisor is used, they may use their own list of approved broker/dealers and financial institutions for investment purposes.

XIV. SAFEKEEPING AND CUSTODY

All security transactions entered by the City shall be conducted on a delivery- versus-payment (DVP) basis. All cash and securities in the City’s portfolio, including those that are managed by an investment advisor, shall be held in safekeeping in the City’s name by a third-party bank trust department, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. The only exception to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) money market mutual funds, since the purchased securities are not deliverable. Evidence of each of these investments will be held in the Treasury vault. The safekeeping institution shall annually provide a copy of their most recent report on internal controls (Statement of Auditing Standards No. 70, or SAS 70).

XV. PERFORMANCE STANDARDS

The investment portfolio will be designed to obtain a market-average rate of return during budgetary and economic cycles, considering the City’s investment risk constraints and cash flow needs.

XVI. REPORTING REQUIREMENTS

A Quarterly Investment report shall be provided to the City Council, City Manager, and Director of Finance.

1. A quarterly investment report will be submitted within 45 days following the period being reported to the City Council. Reports of the investment of bond proceeds are issued monthly by the Trustee and are included in the quarterly report of the pooled investment fund. The quarterly investment report shall include information on the following:
 Type of Investment

 Issuer
 Date of Maturity
 Par and dollar amount invested on all securities
 Current market value of each security and the source of the valuation  Credit quality of each investment, as determined by one or more nationally recognized credit rating services
 Listing of investment transactions for the quarter being reported upon.  Statement that portfolio follows investment policy, or the way the portfolio is not in compliance
 Statement denoting ability of City to meet its expenditure requirements for the next six months, or provide enough explanation why money is not available

XVII. INVESTMENT POLICY REVIEW

The Director of Finance shall periodically submit to the City Council a statement of investment policy outlining any proposed changes, which the City Council must consider at a public meeting.

Glossary of Terms

Accrued Interest: Interest earned but not yet received.

Active Deposits: Funds which are immediately required for disbursement.

Amortization: An accounting practice of gradually decreasing (increasing) an asset's book value by spreading its depreciation (accretion) over a period.

Annual Comprehensive Financial Report (ACFR): The official annual financial report for public sector entities/companies. It includes five combined statements and basic financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles (GAAP).

Arbitrage: Transactions by which securities are bought and sold in different markets at the same time for the sake of the profit arising from a yield difference in the two markets.

Asked Price: The price a broker/dealer offers to sell securities.

Average Life: The average length of time that an issue of serial bonds and/or term bonds with a mandatory sinking fund features is expected to be outstanding.

Asset-Backed Securities (ABS): Securities that are supported by pools of assets, such as installment loans or leases, or by pools of revolving lines of credits. Asset-backed securities are structured as trusts in order to perfect a security interest in the underlying assets.

Bankers’ Acceptance (BA): A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

Basis Point: One basis point is one hundredth of one percent (.01).

Benchmark: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments.

Bid Price: The price a broker/dealer offers to purchase securities.

Bond: A financial obligation for which the issuer promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.

Book Entry: The system maintained by the Federal Reserve, by which most money market securities are delivered to an investor’s custodial bank. The Federal Reserve maintains a computerized record of the ownership of these securities and records any

changes in ownership corresponding to payments made over the Federal Reserve wire (delivery versus payment.)

Book Value: The value at which a debt security is shown on the holder's balance sheet.

Book value is acquisition cost less amortization of premium or accretion of discount.

Broker: A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he does not take a position. In the money market, brokers are active in markets in which banks buy and sell money and in interdealer markets.

Callable Bond: A bond issue in which all or part of its outstanding principal amount may be redeemed before maturity by the issuer under specified conditions.

Call Price: The price at which an issuer may redeem a bond prior to maturity. The price is usually at a slight premium to the bond's original issue price to compensate the holder for loss of income and ownership.

Call Risk: The risk to a bondholder that a bond may be redeemed prior to maturity.

Cash Sale/Purchase: A transaction which calls for delivery and payment of securities on the same day that the transaction is initiated.

Certificate of Deposit (CD): A time deposit with a specific maturity evidenced by a Certificate. Large-denomination CDs are typically negotiable.

Collateral: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

Commercial Paper: A short-term, unsecured, and negotiable promissory note with a fixed maturity of no more than 270 days. By statute, these issues are exempt from registration with the U.S. Securities and Exchange Commission.

Convexity: A measure of a bond's price sensitivity to changing interest rates. A high convexity indicates greater sensitivity of a bond's price to interest rate changes.

Coupon: The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value.

Credit Analysis: A critical review and appraisal of the economic and financial conditions or of the ability to meet debt obligations.

Credit Rating: Various alphabetical and numerical designations used by institutional investors, Wall Street underwriters, and commercial rating companies to give relative indications of bond and note creditworthiness. S&P Global and Fitch Ratings use the same system, starting with their highest rating of AA, AA, A, BBB, BB, B, CCC, CC, C and D for default. Moody’s Investors Services uses Aaa, Aa, A Baa, Ba, B, Caa, Ca, C, and D.

Each of the services use pluses (+), minuses (-), or numerical modifiers to indicate steps within each category. The top four-letter categories are considered investment grade ratings.

Credit Risk: The risk to an investor that an issuer will default in the payment of interest and/or principal on a security and a loss will result.

Current Yield: The interest paid on an investment expressed as a percentage of the current price of security.

CUSIP Number: the Committee on Uniform Security Information Procedures (CUSIP) Number refers to a security’s identification number assigned to each publicly traded security by the CUSIP Service Bureau operated by S&P Global for the American Bankers Association. The CUSIP Number is a nine-characters identifier unique to the issuer, the specific issue and the maturity, if applicable (the first six characters identifying the issuer, the next two identifying the security and the last digit provides a check digit to validate the accuracy of the preceding CUSIP number).

Custodian: A bank or other financial institution that keeps custody of stock certificates and other assets.

Dealer: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his or her own account.

Debenture: A bond secured only by the general credit of the issuer.

Defeased Bond Issues: Issues that have sufficient money to retire outstanding debt when due so that the agency is released from the contracts and covenants in the bond document.

Delivery versus Payment: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt (also called free delivery). Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities.

Derivative: Securities that are based on, or derived from, some underlying asset, reference date, or index.

Discount: The difference between the cost of a security and its value at maturity when quoted at lower than face value.

Diversification: Dividing investment funds among a variety of securities offering independent returns.

Duration: A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity.

The duration of a security is a useful indicator of its price volatility for given changes in interest rates.

Face Value: The principal amount owed on a debt instrument. It is the amount on which interest is computed and represents the amount that the issuer promises to pay at maturity.

Fair Value: The amount at which a security could be exchanged between willing parties, other than in a forced or liquidation sale. If a market price is available, the fair value is equal to the market value.

Federal Farm Credit Bank (FFCB): Government-sponsored institution that consolidates the financing activities of the Federal Land Banks, the Federal Intermediate Credit Banks and the Banks for Cooperatives. Its securities do not carry direct U. S. Government guarantees.

Federal Funds Rate: The rate of interest at which Federal funds are traded. This rate is considered the most sensitive indicator of the direction of interest rates, as it is currently pegged by the Federal Reserve through open-market operations.

Federal Home Loan Banks (FHLB): Government sponsored wholesale banks, which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. The mission of the FHLBs is to liquefy the housing related assets of its members who must purchase stock in their district Bank.

Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac): Established in 1970 to help maintain the availability of mortgage credit for residential housing. FHLMC finances these operations by marketing guaranteed mortgage certificates and mortgage participation certificates. Its discount notes and bonds do not carry direct U.S.

Government guarantees.

Federal National Mortgage Association (FNMA): FNMA was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (H.U.D.). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest.

Federal Open Market Committee (FOMC): Consists of seven members of the Federal Reserve Board and five of the twelve Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of Government Securities in the open market as a means of influencing the volume of bank credit and money.

Federal Reserve System: The central bank of the U.S., which consists of seven-member Board of Governors, 12 regional banks, and about 5,700 commercial banks that are members.

Fiduciary: A person who holds something in trust for another and bears liability for its safekeeping.

Financial Industry Regulatory Authority (FINRA): A self-regulatory organization (SRO) of brokers and dealers in the over the counter securities business. Its regulatory mandate includes authority over business dealings conducted between dealers, brokers and all public investors.

Fitch IBCA, Inc. (Fitch): One of the three best-known rating agencies in the United States, the others being Moody’s Investment Service, Inc. and S&P Global.

Government Accounting Standards Board (GASB): A standard-setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units.

Government National Mortgage Association (GNMA or Ginnie Mae): Securities influencing the volume of bank credit guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions.

Security holder is protected by full faith and credit of the U.S. Government. Ginnie Mae securities are backed by FHA or VA mortgages. The term pass-through is often used to describe Ginnie Maes.

Government Securities: An obligation of the U.S. government, backed by the full faith and credit of the government. These securities are regarded as the highest quality of investment securities available in the U.S. securities market. See "Treasury Bills, Notes, and Bonds."

Guaranteed Investment Contracts (GICS): An agreement acknowledging receipt of funds, for deposit, specifying terms for withdrawal, and guaranteeing a rate of interest to be paid.

Inactive Deposits (Idle Funds): Funds not immediately needed for disbursement.

Investment-Grade Obligations: An investment instrument suitable for purchase by institutional investors under the prudent person rule. Investment-grade is restricted to those obligations rated BBB or higher by a rating agency.

Interest Rate Risk: The risk of gain or loss in market values of securities due to changes in interest-rate levels. For example, rising interest rates will cause the market value of portfolio securities to decline.

Inverse Floating Rate Note: A debt security with an interest rate stated as a fixed rate minus an index. This calculation causes the rate on the inverse floater to move in the

opposite direction of general interest rates. This instrument generally performs well in a declining interest rate environment but will lose value if rates rise.

Liquidity: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between the bid and asked prices is narrow and reasonable size can be done at those quotes.

Local Agency: County, City, City and County, including a chartered city or county, school district, community college district, public district, or any public or municipal corporation.

Local Agency Investment Fund (LAIF): An investment pool managed by the California State Treasurer. Local government units, with consent of the governing body of that agency, may voluntarily deposit surplus funds for the purpose of investment. Interest earned is distributed by the State Controller to the participating governmental agencies on a quarterly basis.

Make whole call: A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."

Mark-to-market: The process whereby the book value or collateral value of a security is adjusted to reflect its current market value.

Market Risk: Systematic risk of a security that is common to all securities of the same general class (stocks, bonds, notes, money market instruments) and cannot be eliminated by diversification (which may be used to eliminate non-systematic risk).

Market Value: The price at which a security is trading and could presumably be sold.

Master Repurchase Agreement: A written contract covering all future transactions between the parties to repurchase agreements and reverse repurchase agreements that establish each person’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.

Maturity: The date upon which the principal or stated value of an investment becomes due and payable.

Medium Term Notes: Instruments issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.

Modified Duration: A measure of exposure to market risk of a security or a portfolio. It is the percent change in the price of a security (portfolio) or a 100-basis point change in the security’s (portfolio’s) yield.

Money Market: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptance, etc.) are issued and traded.

Money Market Mutual Fund: Mutual funds that invest solely in money market instruments (short-term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos and federal funds).

Moody’s: Moody’s Investment Service, Inc. One of the three best-known rating agencies in the United States, the others being Standard and Poor’s Corporation (S&P) and Fitch IBCA, Inc. (Fitch).

National Association of Securities Dealers (NASD): A self-regulatory organization (SRO) of brokers and dealers in the over-the-counter securities business. Its regulatory mandate includes authority over firms that distribute mutual fund shares as well as other securities.

National Recognized Statistical Rating Organization (NRSRO)::

A rating organization designated by the SEC as being nationally recognized, such as Moody's Investor Service, Inc. (Moody’s), S&P Global (S&P), and Fitch Ratings (Fitch).

Net Asset Value: The market value of one share of an investment company, such as a mutual fund. This figure is calculated by totaling a fund's assets, which includes securities, cash, and any accrued earnings, subtracting this from the fund's liabilities and dividing this total by the number of shares outstanding. This is calculated once a day based on the closing price for each security in the fund's portfolio. [(Total assets) - (Liabilities)] / (Number of shares outstanding)

Negotiable Certificate of Deposit: A large denomination certificate of deposit, which can be sold in the open market prior to maturity.

Nominal Yield: The stated rate of interest that a bond pays its current owner, based on par value of the security. It is also known as the "coupon," "coupon rate," or "interest rate."

New Issue: Term used when a security is originally "brought" to market.

Note: A written promise to pay a specified amount to a certain entity on demand or on a specified date.

Open Market Operations: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the Federal Open Market Committee, (FOMC), to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit: Sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool.

Par Value: The amount of principal that must be paid at maturity. Also referred to as the face amount of a bond, normally quoted in $1,000 increments per bond.

Portfolio: Collection of securities held by an investor.

Premium: The amount by which the price paid for a security exceeds the security's par value.

Primary Dealer: A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) registered securities, broker/dealers, banks and a few unregulated firms.

Principal: The face value or par value of a debt instrument, or the amount of capital invested in a given security.

Prospectus: A legal document that must be provided to any prospective purchaser of a new securities offering registered with the SEC that typically includes information on the issuer, the issuer’s business, the proposed use of proceeds, the experience of the issuer’s management, and certain certified financial statements (also known as an “official statement”).

Prudent Investor Standard: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the state, the so-called legal list. In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

Purchase Date: The date in which a security is purchased for settlement on that or a later date.

Range Note: A debt security with a varied interest payment that depends on the number of days the designated index falls within (or in some cases outside) an established range of interest rates. Should rates move beyond the range on either end, the investor faces the risk of a reduced or zero interest payment for the applicable interest period.

Rate of Return: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the current income return.

Rating Agency: Nationally recognized credit rating agency such as Fitch, Moody’s or S&P Global.

Rating Category: A credit rating assignment by a Rating Agency shall mean (a) with respect to any long-term rating category, all ratings designated by a particular letter or combination of letters, without regard to any numerical modifier, plus or minus sign or other modifier, and (b) with respect to any short-term or commercial paper rating category, all ratings designated by a particular letter or combination of letters and taking into account any numerical modifier, but not any plus or minus sign or other modifier.

Repurchase Agreement (RP or Repo): A holder of securities sells these securities to an investor with an agreement to repurchase them at a fixed price on a fixed date. The security “buyer” in effect lends the “seller” money for the period of the agreement and the terms of the agreement are structured to compensate the buyer for this. Dealers use RP extensively to finance their positions. Exception: when the Fed is said to be doing RP, it is lending money, which is increasing bank reserves.

Reverse Repurchase Agreement (Reverse Repo): A counter party (e.g. investment dealer) buys the securities from the holder of securities (e.g. the Agency) with an agreement to sell them back at a fixed date. The counter party in effect lends the seller, (e.g. the Agency) money for the period of the agreement with terms of the agreement structured to compensate buyer.

Risk: The uncertainty of maintaining the principal or interest associated with an investment due to a variety of factors.

Rule G-37 of the Municipal Securities Rulemaking Board: Federal regulations to sever any connection between the making of political contributions and the awarding of municipal securities.

Safekeeping: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection.

Safety: In the context of investing public funds, safety relates to preserving the principal of an investment in an investment portfolio; local agencies address the concerns of safety by controlling exposure to risks.

Secondary Market: A market for the repurchase and resale of outstanding issues following the initial distribution.

Securities: Investment instruments such as notes, bonds, stocks, money market instruments and other instruments of indebtedness of equity.

Sec Rule 15C3:1: See Uniform Net Capital Rule.

Securities and Exchange Commission: Agency created by Congress to protect investors in securities transactions by administering securities legislation.

Settlement Date: The date on which a trade is cleared by delivery of securities against funds.

Serial Bond: A bond issue, usually of a municipality, with various maturity dates scheduled at regular intervals until the entire issue is retired.

Sinking Fund: Money accumulated on a regular basis in a separate custodial account that is used to redeem debt securities or preferred stock issues.

Spread: The difference between two figures or percentages. It may be the difference between the bid (price at which a prospective buyer offers to pay) and asked (price at which an owner offers to sell) prices of a quote, or between the amount paid when bought and the amount received when sold.

Standard and Poor’s Global (S&P): One of the three best-known rating agencies in the United States, the others being Moody’s Investment Service, Inc. and Fitch IBCA, Inc. (Fitch).

Strip (Bonds): Brokerage-house practice of separating a bond into its principal and interest, which are then sold as zero-coupon bonds.

Supranationals: Multi-national organizations whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in member countries.

Swap: An agreement between two parties (known as counterparties) where one stream of future interest payments is exchanged for another based on a specified principal amount.

Term Bond: Bonds comprising a large part or all of a particular issue, which come due in a single maturity. The issuer usually agrees to make periodic payments into a sinking fund for mandatory redemption of term bonds before maturity.

Time Certificate of Deposit: A non-negotiable certificate of deposit, which cannot be sold prior to maturity.

Total Return: The sum of all investment income plus changes in the capital value of the portfolio. For mutual funds, return on an investment is composed of share price appreciation plus any realized dividends or capital gains. This is calculated by taking the following components during a certain time period. (Price Appreciation) + (Dividends paid) + (Capital gains) = Total Return

Treasury Bills: A noninterest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months or one year.

Treasury Bonds: Long-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities of more than 10 years.

Treasury Notes: Medium-term coupon-bearing U.S. Treasury securities issued as direct obligations of the U.S. Government and having initial maturities from two to 10 years.

Trustee or trust company or trust department of a bank: A financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract.

Underwriter: A dealer which purchases a new issue of municipal securities for resale.

Uniform Net Capital Rule: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.

U.S. Government Agencies: Instruments issued by various U.S. Government Agencies most of which are secured only by the credit worthiness of the agency.

U.S. Treasury Obligations: Debt obligations of the United States Government sold by the Treasury Department in the forms of Bills, Notes, and Bonds. Bills are short-term obligations that mature in 1 year or less and are sold based on a rate of discount. Notes are obligations that mature between 1 year and 10 years. Bonds are long-term obligations that generally mature in 10 years or more.

Weighted Average Maturity (WAM): The average maturity of all the securities that comprise a portfolio that is typically expressed in days or years.

Yield: The rate of annual income returns on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

Yield to Maturity: The rate of income returns on an investment, minus any premium or plus any discount, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond, expressed as a percentage.

Yield Curve: A graphic representation that shows the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity.

Zero-coupon Securities: Security that is issued at a discount and makes no periodic interest payments. The rate of return consists of a gradual accretion of the principal of the security and is payable at par upon maturity.

STAFF REPORT

MEETING DATE: June 1, 2026

TO: Mayor and Council Members

FROM: Darin E. Gale‚ City Manager
Sara Bellafronte, Assistant to the City Manager

SUBJECT: Adoption of a City Council Resolution Authorizing the City Manager to Execute an Agreement with R3 Consulting
Group, Inc. for Solid Waste Consulting Services

EXECUTIVE SUMMARY

Since the late 1990s, when Pittsburg’s solid waste collection and transfer station agreements were first executed, the regulatory landscape has shifted significantly with the adoption of three major State solid waste laws beginning in 2011. To ensure the City’s agreements remain current and compliant, the proposed resolution authorizes the City Manager to execute a Consulting Services Agreement with R3 Consulting Group, Inc. (R3) to provide solid waste consulting services and support the update of these agreements.

FISCAL IMPACT

Approval of this agreement will result in an expenditure of up to $299,750 spanning Fiscal Years 2025-26, 2026-27, and 2027-28 from the Solid Waste Fund (210).

RECOMMENDATION

Staff recommends that the City Council adopt the attached Resolution authorizing the City Manager to execute an agreement with R3 Consulting Group, Inc. for solid waste consulting services.

BACKGROUND

The City entered into an exclusive Franchise Agreement for Refuse and Recycling Collection and Disposal with Pittsburg Disposal & Debris Box Service, Inc. (DBA Mount

Diablo Resource Recovery, MDRR) in 1999 (the “Franchise Agreement”) and an Agreement for the Operation of a Recycling Center and Transfer Station (RCTS) with Contra Costa Waste Services, Inc. (DBA MDRR) in 1995 (the “Operating Agreement”) (collectively, “the Agreements”). The Agreements have been amended at least five times each and require significant updates for modernization and alignment with applicable State laws.

As set forth in the Franchise Agreement, the City presides over base rate adjustment requests for collection and disposal services from MDRR every five years, the next being 2027. It is anticipated that new rates if approved will go into effect on July 1, 2027.

Similarly, with the sunset of its most recent City Council-approved RCTS fee adjustment, the City anticipates the receipt of an RCTS fee adjustment request. It is anticipated that any Council-approved RCTS fee update will go into effect on January 1, 2027.

As a measure of transparency in restating the Agreements and responding to the anticipated fee and rate requests, the City also seeks consulting assistance to conduct an audit of MDRR’s RCTS and collection services.

On March 23, 2026, a Request for Proposals (RFP) was published for solid waste consulting services to solicit a consultant to manage the 2027 rate and fee setting processes for these services, modernize and clarify its existing Agreements, and manage various internal solid waste programs while ensuring compliance with California law, financial accountability, and public transparency.

City staff received two proposals in response to the RFP. Both proposals were carefully reviewed and scored. Both firms were invited for interviews to discuss their qualifications and approach to the City’s 2027 project, public transparency, and long-term needs. Staff recommends award of this agreement to R3.

SUBCOMMITTEE FINDINGS

This item was not reviewed by a subcommittee.

STAFF ANALYSIS

The City strives to ensure its Agreements comply with applicable State laws: AB 341 (2011) Mandatory Commercial Recycling (MCR) that establishes California’s 75% statewide recycling goal and requires businesses and multi-family properties to recycle; AB 1826 (2014) Mandatory Commercial Organics Recycling (MORe), which requires businesses and multi-family properties to arrange for organic waste recycling (food, green waste, etc.); and SB 1383 (2016) Short-Lived Climate Pollutants (SLCP) Reduction Law that requires statewide reductions in organic waste disposal and mandates edible food recovery to reduce methane emissions. With the introduction of each of these landmark State laws, the list of unfunded requirements for residents, businesses, haulers, transfer stations, and City have grown significantly. The

Agreements are in need of detailed updates after more than a combined 10 amendments made in response to the changing solid waste environment.

Furthermore, in 2025, MDRR entered into a 20-year post-collection contract with RecycleSmart (representing Cities of Walnut Creek, Lafayette, and Orinda, and the towns of Danville and Moraga, and unincorporated Alamo, Blackhawk, Diablo, and Tassajara), effective March 2027. Staff anticipates that this expansion of services at the RCTS will bring a new level of complexity to the annual and five-year rate and fee adjustment requests submitted by MDRR.

The R3 is experienced in solid waste rate analysis, contract negotiations, and financial audits. The R3 team has completed 100+ comparable engagements, including comprehensive rate reviews, study of costs analyses, and contract restructurings for jurisdictions of all sizes throughout California. R3 is currently supporting more than 12 cities, counties, and public solid waste agencies with fee audits, contract development, and rate-setting processes that mirror the City’s needs. R3 demonstrated an understanding of industry trends and practical challenges that agencies face when balancing financial sustainability, regulatory compliance, and community impacts.

R3 is currently engaged in negotiating and finalizing an agreement with MDRR on behalf of another city in this region that may be instructional in developing standards of compliance, customer service, and transparency. Staff recommends R3 to assist the City with management of the 2027 rate and fee processes, modernization and clarification of existing Agreements, and management of various internal solid waste programs to ensure compliance with California law, financial accountability, exceptional customer service, low community impact, and public transparency in its solid waste programs.

ATTACHMENTS: Resolution
Consultant Agreement with R3 Consulting Group, Inc.

BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG

In the Matter Of:

Authorizing the City Manager to Execute an ) RESOLUTION NO. 26- Agreement with R3 Consulting Group, Inc. )

WHEREAS, the City of Pittsburg entered into a Franchise Agreement for Refuse and Recycling Collection and Disposal with Pittsburg Disposal & Debris Box Service, Inc. (DBA Mount Diablo Resource Recovery, MDRR) in 1999, and an Agreement for the Operation of a Recycling Center and Transfer Station with Contra Costa Waste Services, Inc. (DBA MDRR) in 1995 (collectively, “the Agreements”); and

WHEREAS, since 2011, the State of California has adopted major solid waste laws, including AB 341 (2011 Mandatory Commercial Recycling), AB 1826 (2014 Mandatory Commercial Organics Recycling), and SB 1383 (2016 Short-Lived Climate Pollutants Reduction Law), introducing new requirements to jurisdictions, haulers, facilities, businesses, and residents; and

WHEREAS, the Agreements have been amended significantly and require modernization to ensure alignment with current State solid waste regulations; and

WHEREAS, in light of MDRR’s new post-collection contract with RecycleSmart representing Cities of Walnut Creek, Lafayette, and Orinda, and the towns of Danville and Moraga, and unincorporated Alamo, Blackhawk, Diablo, and Tassajara, the City also seeks consulting support to conduct an audit of MDRR’s collection and RCTS operations, ensure transparency in a fee and rate update processes, and support modernization of the Agreements.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pittsburg hereby authorizes the City Manager to execute a Consulting Services Agreement with R3 Consulting Group, Inc. for solid waste consulting services.

PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 1st day of June 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Dionne Adams, Mayor
ATTEST:

Alice E. Evenson, City Clerk

Consulting Services Agreement between June 1, 2026
City of Pittsburg and R3 Consulting Group, Inc.

CONSULTING SERVICES AGREEMENT BETWEEN

THE CITY OF PITTSBURG AND
R3 CONSULTING GROUP, INC.

THIS Agreement (“Agreement”) for consulting services is made by and between the City of Pittsburg (“City”) and R3 Consulting Group, Inc., a California limited liability company (“Consultant”) (together referred to as the “Parties”) as of June 1, 2026 (the “Effective Date”).

Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Work attached as Exhibit A, and incorporated herein, at the time and place and in the manner specified therein.

1.1 Term of Services. The term of this Agreement shall begin on the Effective Date. The initial term of this Agreement shall be for two (2) years from the Effective Date (“Initial Term”) or the date the Consultant completes the services specified in Exhibit A, whichever occurs first, unless the term of the Agreement is otherwise terminated or extended, as referenced herein.

The City shall have the option to extend the Agreement for up to two (2) additional two-year periods (each, an “Extension Term”), at the City’s sole discretion. Each Extension Term shall be exercised by providing written notice to the Consultant prior to the expiration of the then-current term. All terms and conditions of this Agreement shall remain in effect during any exercised Extension Term unless otherwise amended in writing by the Parties.

1.2 Standard of Performance. Consultant shall perform all services required pursuant to this Agreement according to the standards observed by a competent practitioner of the profession in which Consultant is engaged.

1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, requests in writing the reassignment of any such persons to ensure Consultant performs services in accordance with the Standard of Performance, Consultant shall, immediately upon receiving City’s request, reassign such persons.

Consulting Services Agreement between June 1, 2026
City of Pittsburg and R3 Consulting Group, Inc.

1.4 Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided herein above and to satisfy Consultant’s obligations hereunder.

Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed two hundred ninety-nine thousand seven hundred fifty dollars ($299,750), as set forth in Exhibit B, attached hereto and incorporated herein for services to be performed and reimbursable expenses incurred under this Agreement. This dollar amount is not a guarantee that the City will pay that full amount to the Consultant, but is merely a limit of potential City expenditures under this Agreement.

The rates and costs for all services provided under this Agreement shall remain firm and unchanged for the entire Initial Term. If the City elects to exercise any of the optional extension terms, the rates for each subsequent extension term may be adjusted only upon mutual agreement and shall not exceed an increase equal to the Consumer Price Index (CPI) for the most recent 12-month period available at the time of the extension.

No other rate increases or additional charges shall be permitted unless expressly approved in writing by the City.

Consultant and City acknowledge and agree that compensation paid by City to Consultant under this Agreement is based upon Consultant’s estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement.

2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date.

Invoices shall contain the following information, unless waived by the City Manager, or his or her designee:

▪ Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;
▪ The beginning and ending dates of the billing period; ▪ A Task Summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion; ▪ At City’s option, for each work item in each task, a copy of the applicable time entries or time sheets shall be submitted showing

Consulting Services Agreement between June 1, 2026
City of Pittsburg and R3 Consulting Group, Inc.

the name of the person doing the work, the hours spent by each person, a brief description of the work, and each reimbursable expense;
▪ The total number of hours of work performed under the Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing services hereunder;
▪ The Consultant’s signature.

2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable costs incurred. City shall pay undisputed invoices that comply with the above requirements within 30 days from the receipt of the invoice.

2.3 Final Payment. Consultant shall submit its final invoice within 60 days of completing its services. Consultant’s failure to submit its final invoice within this 60 day period shall constitute Consultant’s waiver of any further billings to, or payments from, City.

2.4 Reimbursable Expenses. Reimbursable expenses, if any, are specified in Exhibit B and included in the total compensation referenced in Section

2. Expenses not listed in Exhibit B are not chargeable to, or reimbursable by, City.

2.5 Payment of Taxes. Consultant is solely responsible for the payment of all federal, state and local taxes, including employment taxes, incurred under this Agreement.

2.6 Authorization to Perform Services. The Consultant is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of a written authorization from the City Manager, or his or her designee.

Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement

Section 4. INSURANCE REQUIREMENTS. Before beginning any services under this Agreement, Consultant, at its own cost and expense, shall procure the types and amounts of insurance specified herein and maintain that insurance throughout the term of this Agreement. The cost of such insurance shall be included in the Consultant’s bid or proposal. Consultant shall be fully responsible for the acts and omissions of its subcontractors or other agents.

Consulting Services Agreement between June 1, 2026
City of Pittsburg and R3 Consulting Group, Inc.

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

4.2 Commercial General and Automobile Liability Insurance.

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

4.2.2 Minimum scope of coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (most recent edition) covering comprehensive General Liability on an “occurrence” basis.

Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 (most recent edition) covering any auto (Code 1), or if Consultant has no owned autos, hired (code 8) and non-owned autos (Code 9). No endorsement shall be attached limiting the coverage.

4.2.3 Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:

a. The Commercial General and Automobile Liability Insurance shall cover on an occurrence basis.

b. City, its officers, officials, employees, agents, and volunteers shall be covered as additional insureds for liability arising out of work or operations on behalf of the Consultant, including materials, parts, or equipment furnished in connection with such work or operations; or automobiles owned, leased,
hired, or borrowed by the Consultant. Coverage can be
provided in the form of an endorsement to the Consultant’s

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insurance at least as broad as CG 20 10 11 85, or both CG 20 10 10 01 and CG 20 37 10 01.

c. For any claims related to this Agreement or the work hereunder, the Consultant’s insurance covered shall be
primary insurance as respects the City, its officers, officials, employees, agents, and volunteers. Any insurance or self- insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the
Consultant’s insurance and non-contributing.

d. The policy shall cover inter-insured suits and include a “separation of Insureds” or “severability” clause which treats each insured separately.

e. Consultant agrees to give at least 30 days prior written notice to City before coverage is canceled or modified as to scope or amount.

4.3 Professional Liability Insurance.

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

4.3.2 Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:

a. The retroactive date of the policy must be shown and must be before the date of the Agreement.

b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the Agreement or the work.

c. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this Agreement, Consultant must purchase an extended period coverage for a minimum of five (5) years after completion of work under this Agreement.

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d. A copy of the claim reporting requirements must be
submitted to the City for review prior to the commencement of any work under this Agreement.

4.4 All Policies Requirements.

4.4.1 Submittal Requirements. Consultant shall submit the following to City prior to beginning services:

a. Certificate of Liability Insurance in the amounts specified in this Agreement; and

b. Additional Insured Endorsement as required for the General Commercial and Automobile Liability Polices.

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

4.4.3 Deductibles and Self-Insured Retentions. Insurance obtained by the Consultant shall have a self-insured retention or deductible of no more than $100,000.

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

4.4.5 Waiver of Subrogation. Consultant hereby agrees to waive subrogation which any insurer or contractor may require from Consultant by virtue of the payment of any loss. Consultant agrees to obtain any endorsements that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Consultant, its employees, agents, and subcontractors.

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

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herein, and Consultant shall ensure that City, its officers, officials, employees, agents, and volunteers are covered as additional insured on all coverages.

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

4.5 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option: 1) obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement; 2) order Consultant to stop work under this Agreement and withhold any payment that becomes due to Consultant hereunder until Consultant demonstrates compliance with the requirements hereof; and/or 3) terminate this Agreement.

Section 5. INDEMNIFICATION AND CONSULTANT’S RESPONSIBILITIES.

5.1 General Requirement. To the fullest extent permitted by law, Consultant shall indemnify, defend with counsel acceptable to City, and hold harmless City and its officers, officials, employees, agents and volunteers (collectively, “Indemnitees”) from and against any and all liability, loss, damage, claims, expenses, and costs, including without limitation, attorney’s fees, costs and fees of litigation, (collectively, “Liability”) of every nature arising out of or in connection with Consultant’s performance of the services under this Agreement, or its failure to comply with any of its obligations contained in this Agreement, or its failure to comply with any applicable law or regulation, except such Liability caused by the sole negligence or willful misconduct of City.

Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Consultant from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply to any damage or claims for damages whether or not such insurance policies shall be determined to apply.

5.2 PERS Indemnification. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify,

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defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Section 6. STATUS OF CONSULTANT.

6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City.

6.2 Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

Section 7. LEGAL REQUIREMENTS.

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

7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with all laws applicable to the performance of the work hereunder. Consultant shall also, to the extent required by the California Labor Code, pay not less than the latest prevailing wage rates as determined by the California Department of Industrial Relations.

7.3 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have, and will maintain at their sole cost and expense, all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid business licenses from City.

7.4 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, genetic information, marital status, sex, sexual orientation, gender or gender identity, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or

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applicant for any services or programs provided by Consultant under this Agreement. Consultant shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Consultant thereby.

Section 8. TERMINATION AND MODIFICATION.

8.1 Termination. Upon ten days’ prior written notice, City may cancel this Agreement at any time and without cause upon such written notification to Consultant. In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement.

8.2 Amendments. The parties may amend this Agreement only by a writing signed by the parties hereto.

8.3 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant’s unique personal competence, experience, and specialized personal knowledge.

Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the City Manager, or his or her designee. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the City Manager, or his or her designee.

8.4 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant, including but not limited to the provisions of Section 5, shall survive the termination of this Agreement.

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

8.5.1 Immediately terminate the Agreement;

8.5.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement;

8.5.3 Retain a different consultant to complete the work described in Exhibit A not finished by Consultant; or

8.5.4 Charge Consultant the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the work.

8.5.5 The remedies mentioned in this Agreement are not exclusive of any other right, power or remedy permitted by law. The City’s failure or delay in exercising any remedy shall not constitute a waiver of such remedy or preclude the further exercise of City’s rights.

Section 9. KEEPING AND STATUS OF RECORDS.

9.1 Records Created as Part of Consultant’s Performance. All final versions of reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City.

Consultant hereby agrees to deliver those documents to the City upon termination of the Agreement, and the City may use, reuse or otherwise dispose of the documents without Consultant’s permission. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential drafts and will not be released to third parties by Consultant without prior written approval of City.

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9.2 Consultant’s Books and Records. Consultant shall maintain any and all records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of 3 years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement. All such records shall be maintained in accordance with generally accepted accounting principles and shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Pursuant to Government Code Section 8546.7, the Agreement may be subject to the examination and audit of the State Auditor for a period of 3 years after final payment under the Agreement.

Section 10 MISCELLANEOUS PROVISIONS.

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

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

10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.

10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties.

10.6 Conflict of Interest. Consultant may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Consultant in a “conflict of interest,” as that term is

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defined in the Political Reform Act, codified at California Government Code Section 81000 et seq.

Consultant shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq.

10.7 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials.

10.8 Notices. Any notice, demand, request, consent or approval that either party is required to give the other pursuant to this Agreement, shall be in writing and may be given by either (i) personal service, or (ii) certified United States mail, postage prepaid, return receipt requested. Notice shall be effective upon personal delivery or delivery to the addresses specified below, as reflected on the receipt of delivery or return receipt, as applicable.

Consultant : R3 Consulting Group, Inc.
414 13th Street, Suite 450
Oakland, CA 94612
ATTN: Rose Radford, Principal

City: City of Pittsburg
65 Civic Avenue
Pittsburg, CA 94565
ATTN: City Manager

10.9 Professional Seal. Where applicable in the determination of the City Manager, or his or her designee, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled “Seal and Signature of Registered Professional with report/design responsibility.”

10.10 Integration. This Agreement, including the scope of work attached hereto and incorporated herein as Exhibits A and B represents the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral.

To the extent there are any inconsistencies between this Agreement, the

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Exhibits, and Consultant’s proposal, the Agreement shall control. To the extent there are any inconsistencies between the Exhibits and the Consultant’s Proposal, the Exhibits shall control.

Exhibit A Scope of Services
Exhibit B Compensation Schedule

10.11 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

10.12 Construction of Agreement. Each party hereto has had an equivalent opportunity to participate in the drafting of the agreement and/or to consult with legal counsel. Therefore, the usual construction of an agreement against the drafting party shall not apply hereto.

10.13 No Third Party Beneficiaries. This Agreement is made solely for the benefit of the parties hereto, with no intent to benefit any third parties.

The Parties have executed this Agreement as of the Effective Date.

CITY OF PITTSBURG R3 CONSULTING GROUP, INC.

____________________________ ______________________________ Darin E. Gale, City Manager Rose Radford, Principal

Approved as to Form:

____________________________
Donna Mooney, City Attorney

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EXHIBIT A

SCOPE OF SERVICES

To provide its residents, businesses, and region with solid waste service, the City of Pittsburg (City) has two long-term agreements for solid waste collection and hauling, and operation of a Recycling Center and Transfer Station (RCTS). This Agreement is for solid waste consulting services to manage the 2027 rate and fee setting processes for these services, modernize and clarify its existing solid waste and operating agreements, and manage various internal solid waste programs while ensuring compliance with California law, financial accountability, and public transparency.

Key objectives contract include:

• Ensuring agreements comply with applicable State laws AB 341 2011 Mandatory Commercial Recycling (MCR) that establishes California’s 75% statewide recycling goal and requires businesses and multi‑family properties to recycle, AB 1826 2014 Mandatory Commercial Organics Recycling (MORe) which requires businesses and multi‑family properties to arrange for organic waste recycling (food, green waste, etc.), and SB 1383 2016 Short‑Lived Climate Pollutants (SLCP) Reduction Law that requires statewide reductions in organic waste disposal and mandates edible food recovery to reduce methane emissions.

• Analyzing proposed rate and fee adjustment requests received for solid waste collection and hauling, and RCTS operating services.

• Auditing financial records of the contractor to confirm accuracy and compliance.

• Reviewing franchise fees by analyzing costs versus proposed fees.

• Strengthening operational, reporting, and performance standards.

• Supporting City Council and public understanding through meetings and presentations.

Other objectives include assistance with enforcement including site visits, inspection, record-keeping, and participation in compliance related follow up, development and deployment of public education and outreach, grant application and administration, compliance reporting, and development and implementation of ordinances and programs to comply with new and existing State law.

The consultant shall be proactive, utilize best practices, comply with City policies, programs and ordinances, ensure compliance with State law, and also minimize financial, health, and safety impacts on residents and businesses.

Tasks:

A. Assist with amendment and restatement of the Agreements a. Recommend provisions that reflect evolution of industry and address all aspects of the City’s Solid Waste program related to MDRR b. Ensure regulatory compliance
c. Update reporting and outreach requirements
d. Clarify rate-setting and audit provisions

B. Financial audit
a. Examine revenues, costs, and compliance between Fiscal Years 2020- 2021 and 2025-2026

C. Review, analyze, and seek City Council approval of proposed base rate increases for collection and hauling services

D. Review, analyze, and seek City Council approval of proposed RCTS fees

E. Conduct franchise fee review for compliance with applicable requirements a. Analysis of cost to provide service(s) and fees proposed

F. Other
a. Review presentation and education materials for City Council, community groups and residents, assist with presentations as requested. b. Assist with development of any ordinances and policies resulting from tasks A-E
c. Assist with City’s SB 1383 compliance as needed including required countywide edible food recovery capacity planning and more d. Assist with development of an Education and Outreach Program resulting from task A
e. Provide assistance with grant and funding programs offered by CalRecycle and other funding sources.
f. Assist with Annual Reporting and CalRecycle Coordination including but not limited to:
i. AB 939 Electronic Annual Report.
ii. CalRecycle Electronic Annual Report
iii. Assist with Form 303 Household Hazardous Waste Report. g. Assist with solid waste-related administration activities as requested.

EXHIBIT B

COMPENSATION SCHEDULE

FY 2026-27 - FY 2029-30 Standard Rates

CLASSIFICATION STANDARD RATES
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30
Principal / Sr.

Director
$ 360 $ 380 $ 400 $ 420
Director $ 320 $ 335 $ 355 $ 375
Sr. Managing
Consultant
$ 280 $ 295 $ 310 $ 325
Managing
Consultant
$ 255 $ 270 $ 285 $ 300
Sr. Consultant $ 230 $ 245 $ 260 $ 275
Consultant $ 210 $ 220 $ 230 $ 245
Associate
Consultant
$ 195 $ 205 $ 215 $ 225
Expert Witness 1.5x Rates Listed Above

REIMBURSABLE COSTS
Consultants/Subcontractors Cost plus 10%
Lodging and Meals Direct cost
Travel — Private or company car At Current Federal Rate Travel — Other Direct cost
Delivery and other expenses Direct cost

S

CERTIFICATE OF COMPLIANCE WITH LABOR CODE § 3700

I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.

R3 Consulting Group, Inc.

By:

Title:
2784980.1

STAFF REPORT

MEETING DATE: June 1, 2026

TO: Mayor and Council Members

FROM: Darin E. Gale‚ City Manager
John Samuelson, Director of Public Works/City Engineer
Sharon Paz, Administrative Analyst II

SUBJECT: Adoption of a City Council Resolution Approving the Preliminary Engineer's Report for Citywide Landscaping and Lighting Assessment District 1988-1, Declaring Intent to Levy and Collect Assessments for Fiscal Year 2026/27, and
Setting a Date to Conduct a Public Hearing

EXECUTIVE SUMMARY

Pursuant to state statutes governing the renewal of assessment districts, the City Council is asked to adopt a resolution approving the Preliminary Engineer’s Report for Citywide Landscaping and Lighting Assessment District 1988-1 (Citywide LLAD) for Fiscal Year (FY) 2026/27, and to set July 20, 2026, as the date for a public hearing for this matter.

FISCAL IMPACT

To maintain the Citywide LLAD, the Public Works Department has a preliminary budget of:
$(418,046) Estimated Beginning Fund Balance
$5,487,400 Estimated Total Revenue
• Assessment Posted to Tax Roll $3,187,022
• Assessment for City-owned Parcel (General Fund) $ 57,871 • Assessment for City-subsidized Parcels (General Fund) $ 71,566 • General Benefit (General Fund) $ 396,941
• Gap Funding (General Fund) $1,774,000

$6,341,872 Estimated Total Cost of Improvements
($854,472) Excess of Revenue Over Expense

RECOMMENDATION
City Council adopt a resolution approving the Preliminary Engineer's Report for Citywide LLAD, declare their intent to levy assessments in FY 2026/27, and set a public hearing date for July 20, 2026.

BACKGROUND
On June 6, 1988, the City Council confirmed the Engineer’s Report, ordered improvements, and levied the first annual assessment for Citywide LLAD. Since then, the assessment collected annually fund a portion of the district’s landscaping and lighting operations.

On May 4, 2026, the City Council adopted Resolution No. 26-14767, directing the City Engineer to file an annual Engineer’s Report for FY 2026/27 in accordance with the Landscaping and Lighting Act of 1972. That report has been prepared and is on file in the Office of the City Clerk.

SUBCOMMITTEE FINDINGS
This item was not brought before a subcommittee.

STAFF ANALYSIS
When the Citywide LLAD was formed in June 1988, the annual assessment was set at $69.24 per benefit factor.

Services provided include:
• Rights-of-way landscaping maintenance
• Street tree maintenance
• Sidewalk repair related to street tree damage
• Street light energy, maintenance and replacement
The assessment increased to $77.18 per benefit factor in FY 1990/91. This was affirmed by voters in the 1996 general election.

For FY 2007/08 and all years thereafter, the City increased the assessment for residential land use, (category codes 01, 21, 22, 23, 24, 25 and 29), for a total assessment of $102.18 per benefit factor. All other parcels including commercial, institutional, industrial, churches, and non-profit continue to pay the current assessment of $77.18 per benefit factor. In accordance with Proposition 218, the City conducted a mailed ballot election for the assessment increase.

There is no Consumer Price Index (CPI) adjustment factor for Citywide LLAD, and there has been no increase in the assessment since FY 2007/08, though both the area of responsibility and operation costs have increased.

State statutes mandate the annual renewal procedures for the Citywide LLAD. This is the second step of that process wherein the City Council is asked to consider and approve the Preliminary Engineer’s Report and to set a public hearing for this matter before assessments can be levied.

ATTACHMENTS: Resolution
Preliminary Engineer’s Report

BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG

In the Matter Of:

Approving the Fiscal Year 2026/27 Preliminary )
Engineer's Report for Citywide Landscaping )
And Lighting Assessment District 1988-1, ) RESOLUTION NO. 26- Declaring Intent to Levy and Collect )
Assessments, and Setting a Date to Conduct )
A Public Hearing )

WHEREAS, on May 4, 2026, the City Council adopted Resolution No. 26-14767 directing the City Engineer to file an annual Engineer’s Report for Citywide Landscaping and Lighting Assessment District 1988-1 for Fiscal Year 2026/27; and

WHEREAS, the assessment pays for maintenance and improvements to street lights and street trees, concrete replacement due to damage caused by street trees, facilities landscaping, rights-of-way, and medians; and

WHEREAS, by June 1, 2026, the City Engineer has filed with the City Clerk the preliminary report required by the Landscaping and Lighting Act of 1972; and

WHEREAS, all interested persons are referred to that report for a full and detailed description of the improvements, the boundaries of the assessment district, and the proposed assessments upon assessable lots and parcels of land within the district.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby approves the preliminary Engineer’s Report, intends to levy and collect assessments within Citywide Assessment District 1988-1 during Fiscal Year 2026/27, and sets the date of July 20, 2026, to conduct a public hearing on the matter during its regularly scheduled meeting pursuant to Section 22553 of the Streets and Highways Code.

PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting on the 1st day of June 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Dionne Adams, Mayor
ATTEST:

Alice E. Evenson, City Clerk

TABLE OF CONTENTS

1. INTRODUCTION……………………………………………………………………………………………1

1.1 Background…………………………………………………………………………….………..1

1.2 Process for Annual Assessment………………………………………………….…………...1

1.3 Legislative Context……………………………………………………………………………...2

1.4 Court Rulings…………………………………………………………………………………….2

2. PLANS AND SPECIFICATIONS……………………………………………………………….…………4

2.1 Description of Boundaries of the District……………………………………………………..4

2.2 Description of Improvements and Services………………………………………………….4

3. ESTIMATE OF COSTS…………………………………………………………………………………….8

3.1 Improvement Costs……………………………………………………………………………..8

3.2 Estimated Revenue……………………………………………………………………………..9

3.3 Fund Balance……………………………………………………………………………………9

4. BENEFITS FROM IMPROVEMENTS………………………………………………………..………….10

5. QUANTIFICATION OF BENEFIT………………………………………………………………………..11

5.1 Street Lighting…………………………………………………………………….…………….11

5.2 Street Trees and Other Landscaping ………………………………………….…………….11

5.3 Residential Benefit……………………………………………………………………………..11

5.4 Commercial and Industrial Benefit……………………………………………………………12

5.5 Mathematical Benefit Calculation……………………………………………………………..12

6. METHOD OF APPORTIONMENT……………………………………...……………………………….13

6.1 Method…………………………………………………………………………….……………13

6.2 Assessment by Land Use Category....…………………………..…………………………..13

6.3 Calculation of Multi-Family Residential Assessment………………………………………..14

6.4 Residential Benefit Factors…………………………………………………………………….16

6.5 Calculation of Commercial Assessment………………………………………………………21

6.6 Calculation of Industrial Assessment………………………………………………………….23

6.7 Amount To Be Assessed………………………………………………………………………..24

6.8 Method of Collection…………………………………………………………………………….25

7. CERTIFICATE……………………………………………………………………..………………………26

8. ASSESSMENT DISTRICT DIAGRAM………………………………………………………...………..27

9. ASSESSMENT ROLL…………………………………………………………………………………….29

1. INTRODUCTION

1.1 Background
The City Council of the City of Pittsburg (the “City”) pursuant to the Landscaping and Lighting Act of 1972 (Streets & Highways Code Section 22500 et seq.) (the “1972 Act”), has adopted Resolution No. 26-14767 Directing the City Engineer to Prepare and File an Annual Report for Citywide Landscaping and Lighting Assessment District 1988-1 (the “District”) for Fiscal Year (“FY”) 2026/27.

The Annual Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations, and servicing of the improvements for the District for the referenced fiscal year, a diagram of the District showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations, and servicing the improvements.

The following assessment is proposed to be authorized in order to pay the estimated costs of administration, maintenance, operation, and servicing of the improvements to be paid by the assessable real property in the District in proportion to the special benefit received.

1.2 Process for Annual Assessment
In June 1988, the City Council confirmed the Engineer’s Report, ordered improvements, and levied the first annual assessment for the District. This report is based on the report commissioned for the District’s formation and subsequent reports prepared in previous fiscal years. As required by the procedures specified in the Act, an Engineer’s Report must be prepared on an annual basis and contain a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. The Engineer’s Report may also identify future planned projects.

The City Council must also annually adopt a resolution of intention which:
• Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein.
• Refers to the District by its distinctive designation and indicates the general location. • Refers to the report of the engineer on file with the City Clerk for a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment.
• Describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements.
• States if the assessment is proposed to increase from the previous year.

1.3 Legislative Context

In 1996, California voters adopted Proposition 218, known as the “Right to Vote on Taxes Act,” which added Articles XIII C and XIII D to the California Constitution. Article XIII D established new substantive and procedural requirements on agencies for levying assessments, being levies on real property by an agency for a special benefit conferred upon the real property. “Special benefit” is defined in Article XIII D as “a particular and distinct benefit over and above general benefits conferred on a real property located in the district or to the public at large.”

Article XIII D imposes five basic substantive requirements on assessments:

(1) All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified;
(2) The general benefits must be distinguished from the special benefits conferred on the parcels;
(3) The proportionate special benefit derived by each identified parcel must be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided;
(4) The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and must not include any costs attributable to the general benefit; and
(5) Parcels within a district that are owned or used by any agency, the State of California, or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.

Article XIII D also places procedural requirements on assessments, which include preparing an engineer’s report, providing written notice of the proposed assessment and a public hearing to property owners, holding a public hearing, and providing for a protest ballot proceeding.

1.4 Court Rulings

Since the initial passage of Proposition 218, several court rulings have helped provide context and direction with respect to the procedures and requirements of Article XIII D for levying assessments.

Several of the key concepts from these rulings are summarized below.

1.4.1 GENERAL BENEFIT

Article XIII D requires an agency to separate the general benefits from the special benefits conferred on the identified parcels because only special benefits are assessable.

The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011) (“Golden Hills”) clarified this concept by stating, “Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.”

The Court of Appeal in Beutz v. County of Riverside (2010) (“Beutz”) noted that the trial court took judicial notice of the Legislative Analyst’s Office pamphlet titled “Understanding Proposition 218” which states an agency must, “estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of ‘general benefit.’ This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit.”

The Court in Beutz furthered this idea stating, “Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.”

The Court of Appeal again reiterated the need to separate, quantify and apportion costs to general benefits from the improvements in Broad Beach Geologic Hazard Abatement District v 31506 Victoria Point LLC (2022), stating, “The District cites no authority, and we are aware of none, suggesting that an agency’s subjective intent determines the need to account for general benefits.”

1.4.2 BENEFIT-BASED NOT COST-BASED

In Town of Tiburon v. Bonander (2009) (“Tiburon”), the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, “Proportionate special benefit is the basis upon which a project’s total assessable costs are apportioned among parcels within an assessment district.”

The assessment on a particular property cannot be based on the relative cost of the improvements to the property, but rather on the special benefit conferred on such property. The Court in Tiburon also stated, “an assessment represents the entirety of the cost of the improvement or property-related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property.”

1.4.3 MEASURING AND APPORTIONING SPECIAL BENEFIT

The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, “Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision.”

The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits “may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits, however, it must be both defensible and consistently applied.”

2. PLANS AND SPECIFICATIONS

Pursuant to sections 22567(a) and 22568 of the 1972 Act, this report describes the existing and any proposed improvements for the District. The purpose of the District is to provide for the continued maintenance, operation, and servicing of various public improvements specially benefiting property within the District. The sections below provide general descriptions of the improvements maintained by the District.

2.1 Description of Boundaries of the District

The Assessment Diagram showing the boundary for the District can be found in Section 8.

2.2 Description of Improvements and Services

2.2.1 STREET LIGHTING

The improvements include the maintenance, operation, and servicing of streetlights throughout the boundary of the District. The improvements are generally described as: maintenance, operation, and servicing of public street lighting facilities, including all works or improvements used or useful for the lighting of any public places, including ornamental standards, luminaires, poles, supports, tunnels, manholes, vaults, conduits, pipes, wires, conductors, guys, stubs, platforms, braces, contacts, switches, capacitors, meters, communication circuits, appliances, attachments, and appurtenances.

Maintenance, operation, and servicing includes, but is not limited to, personnel, furnishing utilities, electrical energy and timing/switching, lamp changing, emergency services, pole painting, fixture cleaning, glassware replacement, and rehabilitation, which includes modernization and replacement of systems; repairs, including poles, conduit, wiring and fusing, and fixtures repair and replacement, contracting services and other items necessary for the satisfactory operation of these services.

The street lighting system includes all streetlights within the public right-of-way and easements. In the District, there is a total of 4,544 streetlights of which 2,333 are owned by the City, and 2,211 are PG&E owned.

2.2.2 STREET TREES AND OTHER LANDSCAPING

The improvements include the maintenance, operation, and servicing of street trees and landscaping throughout the boundary of the District. The improvements are generally described as: the maintenance, operation, and servicing of trees, landscape and appurtenant facilities in the public right- of-way areas, as well as open space throughout the District. Eligible district costs may include, but are not limited to, personnel, furnishing electrical energy, utilities such as water and gas, materials, contracting services, and other items necessary for the satisfactory operation of these services.

The improvements authorized to be maintained and serviced include, but are not limited to:
groundcover, turf, trees, shrubs, planters, the landscaped areas and weed abatement of open spaces, and may also include sidewalk and hardscape improvements, entry monuments and associated appurtenant facilities.

Maintenance includes but is not limited to trimming, pruning, weeding, fertilizing, irrigating, trash removal, sprinkler repair, plant replacement, and other necessary maintenance functions. Removal and replacement of damaged or unhealthy trees and plants located on eroded slope areas. Stabilization and soil replacement of eroded slopes.

There are approximately 415 acres of landscape maintenance area and 18,244 city-maintained trees within the District. The general location of the Improvements within the District is described as follows:

1. Park and Trail Landscaping

8th St. Linear Park Larry Lasater Park
Americana Park John S. Bryant Park
BART Pedestrian and Bicycle Trail Marina Walk Park
Buchanan Park Mariner Park
California Seasons Park Oak Hills Park
Central Park Oak Hills Park West
City Park PITTSBURG Letters and Parklet
Central Harbor Park Premier Fields
Columbia St. Linear Park Ray Giacomelli Park
De Anza Park Riverview Park
East Bay MUD Trail San Marco Park – West
Frontage Rd. Living Green Trail Santa Fe Linear Park
Harbor St. Trailhead Small World Park
Highlands Park Stoneman Park
Highlands Ranch Park Stoneman Park – South (undeveloped) Hillsdale Park Stoneman Trailhead
John Buckley Square Village Park at New York Landing

2. Facilities Landscaping

E. 3rd St. Parking Lot Environmental Center
E. 6th St. Parking Lot Old Town (Railroad Ave.)
City Hall Heritage Plaza
Community Youth Center Marina Center
Dream Courts Senior Center

3. Median Landscaping

E. 3rd St. (Marina Blvd. to East St.) Loveridge Rd. (North of Highway 4) W. 10th St. (Railroad Ave. to Beacon St.) McDermott Ave. (at Buchanan Rd.) Bailey Rd. (W. Leland Rd. to Highway 4) Marina Blvd. (Bayside Dr. to E. 3rd St.) Buchanan Rd. (Railroad Ave. to Crestview Dr.) McFaul Dr. (at Buchanan Rd.) Buchanan Rd. (Tuscany Meadows subdivision) Meadowbrook Ave. (Stoneman Ave. to Fallenleaf Way) Civic Ave. (Davi St. to Railroad Ave.) Meadows Ave. (south of Buchanan Rd.) Cambria Ct. (to E. 8th St.) N. Parkside Dr. (to Railroad Ave.) Campbell Dr. (at Buchanan Rd.) Power Ave. (Andrew Ave. to Range Rd.) Capitola Pl. (to Cumberland St.) Railroad Ave. (10th St. to south city limits) Carion Ct. (to Loveridge Rd.) Range Rd. (Willow Pass Rd. to south terminus) Century Blvd. (E Leland Rd. to Somersville Rd.) San Marco Blvd. (Highway 4 to south terminus)

Davi Ave. (Civic Ave. to Power Ave.) Santa Ana Dr. (at Buchanan Rd.) Gladstone Dr. (Loveridge Rd. to Arlington Cir.) Santa Teresa Dr. (San Marco Blvd. to W. Leland Rd.) Harbor St. (E. 3rd St. to Stoneman Ave.) Suzanne Dr. (at Buchanan Rd.) Inverness Dr. (at Buchanan Rd.) Toscana Dr. (to Portofino Dr.) E. Leland Rd. (Railroad Ave. to Century Blvd.) Tuscany Meadows Dr. (at Buchanan Rd.) W. Leland Rd. (to Kapalua Bay Cir.) Valente Dr. (to Portofino Dr.) W. Leland Rd. (Southwood Dr. to San Marco Blvd.) Ventura Dr. (at Buchanan Rd.) W. Leland Rd. Extension (San Marco Blvd. to Santa Teresa Dr.) Ventura Dr. (south of Buchanan Rd.) Loveridge Rd. (Buchanan Rd. to Highway 4) Alves Ranch Rd. (W. Leland Rd. and Harmony St.)

4. Right-of-Way Landscaping

1050 Oak Point Dr. (pathway) Loveridge Rd. (Stoneman Ave. to Ventura Dr.) E. 3rd St. (Marina Blvd. to East St. tree wells) Marina Blvd. (at E. 5th St. - Lapori Building parking lot E. 8th St. (Harbor St. to Cumberland St.) Marina Blvd. (Bayside Dr. to Black Diamond. St.) W. 8th St. (mitigation project at Herb White Way) Oak Crest Pl. (fire trail) Alves Ranch Rd. (south of W Leland Rd.) N. Parkside Dr. (Range Rd. to PG&E lot) Bailey Rd. (W. Leland Rd. to city limit) Pittsburg-Antioch Hwy. (Arcy Ln. to Solari Ave.) Bayside Dr. (west) (Marina Blvd. to River Park Dr.) Pittsburg-Antioch Hwy. (Harbor Rd. to city limits) Buchanan Rd. (north) (Harbor St. to city limits) Polaris Dr. (Brickyard Ave. to Trident Dr.) Buchanan Rd. (south) (Quercas Ln. to east city limits) Power Ave (north) (Andrew Ave. to Brickyard Ave.) California Ave. (east of Loveridge Rd.) Quiet Path Pl.

Capitola Pl. (Capitola Dr. to Cumberland St.) Railroad Ave. (west) (Frontage Rd. to Alvarado Ave.) E. Catamaran Cir. (east) Railroad Ave. (California Ave. to E. 10th St.) Central Harbor Pkwy. (launch ramp and parking lot) Railroad Ave. (NE corner of E. 17th St.) Central Waterfront Basin III Railroad Ave. (east) (California Ave. to Victory Ave.) Cumberland St. (E. 3rd St. to E. 8th St.) Railroad Ave. & Buchanan Rd. (NW corner) Fairside Ct. Range Rd. (northern terminus to W. Leland Rd.) Fawn Glen Ct. Range Rd. (Willow Pass Rd. to southern terminus) Freshwater Ct. San Marco Blvd. (south of Highway 4)
Frontage Rd. (Burton Ave. to Crestview Dr.) 2246-2236 Santa Maria Dr. (west side) Frontage Rd. Living Green Trail (Dover Way to Chelsea Way) Santa Teresa Dr. (San Marco Blvd. to W Leland Ave.) Greystone Pl. and Stoneman Ave. Stoneman Ave. (Harbor St.) Harbor St. (E. Santa Fe Ave. to E. 3rd St.) Ventura Dr. (Buchanan Rd.) Kirker Pass Rd. and Castlewood Dr. (to city limits) Willow Ave. (Bailey Rd.) E. Leland Rd. (south) (Leland Ct. and Stoneridge Dr.) Willow Pass Rd. (Dory Rd. to west city limits) W. Leland Rd. (Arlington Dr. to Bailey Rd.) School St. (to Hawthorne Ave. both sides) W. Leland Rd. (Toscana Blvd. to Santa Teresa Dr.) Woodhill (from Burlwood Ct. to Shadow Hill Cir.) Buchanan Rd. (east of Meadows Ave.) W. Leland Rd. (Premier Fields) Siena Village Dr. (San Marco 16) Avellino Rd. (San Marco 17)

5. Feature Planting Bed Landscaping

Buchanan Park Entrance Sign and Planter Muniz Plaza
City Park Entrance Sign Oak Hills South Entry Monument
City Park Memorial Oak Hills Unit 5 (at Oakpoint Dr.)
Fisherman Monument Pelican Loop Entry (at Marina Blvd.) Fishing Boat Monument Plaza Fountain (E. 5th St. at Black Diamond St.) Harbor St. (at Presidio Ln.) Railroad Ave. (at Alvarado Ave.) E. Leland Rd. (at eastern city limit) Railroad Ave. (at 17th St.) Leland Rd. at Railroad Ave. Steel Worker State (Railroad Ave. at E. 5th St.) Marina Blvd. (at E. 4th St.) Raised Planter Beds (Railroad Ave., at E. 3rd St.)

Marina District Sign (E. 8th St. and Railroad Ave.) San Marco Blvd. (south of Highway 4) Meadows Ave. (South of Buchanan Rd.) Veterans & Camp Stoneman Memorial

3. ESTIMATE OF COSTS

3.1 Improvement Costs

The following table summarizes the estimated annual costs to fund the improvements for FY 2026/27:

Description Amount(1)
Landscaping
Landscaping Maintenance – Staff 2,895,483 0
Utilities and Other Supplies 1,637,744 0
Subtotal Landscaping (71.48% of total costs): $4,533,227 0 Street Trees
Street Tree Maintenance – Staff 539,945 0
Supplies 110,928 0
Subtotal Street Trees (10.26% of total costs): $650,873 0 Street Lighting
Streetlight Maintenance – Staff 331,351 0
Utilities and Other Supplies 660,305 0
Subtotal Street Lighting (15.64% of total costs): $991,656 0 Administration
Supplies and Services 166,116 0
Subtotal Administration (2.62% of total costs): $166,116 0 Total Cost of Improvements $6,341,872 0
Less General Benefit Portion (6.26%) (396,941) 0
Total Cost of Improvements to Be Assessed $5,944,931 0
Total Special Benefit Factors 34,367.25 0
Actual Cost Per Special Benefit Factor - FY 2026/27
Lighting and Landscaping 172.98 0
Assessed Rate Per Special Benefit Factor - FY 2026/27
Residential and Mixed Use 102.18 0
All Other Uses 77.18 0
City Subsidy Per Special Benefit Factor - FY 2026/27

Residential and Mixed Use 70.80 0
All Other Uses 95.80 0
(1) Slight variances may occur due to rounding.

3.2 Estimated Revenue

The following table summarizes the estimated revenue for FY 2026/27.

Description Amount
Assessments Posted to County Tax Roll 3,187,022 0
Assessment for City-owned & Parcels (General Fund) 57,871 0 Assessment for City-subsidized Parcels (General Fund) 71,566 0 General Benefit (General Fund) 396,941 0
Gap Funding (General Fund) 1,774,000 0
Total Estimated Revenue $5,487,400 0

The following table details the City-subsidized parcels.

Description Amount
Contra Costa County Junior College District 5,840 0
Pittsburg Unified School District 57,367 0
Mount Diablo Unified School District 2,646 0
State Board of Equalization Properties 5,713 0
Total Estimated Revenue $71,566 0

3.3 Fund Balance

The reserve balance information for the District is as follows:

Total Estimated Year Ending June 30, 2026 Fund Balance $(418,046) 0

4. BENEFITS FROM IMPROVEMENTS

The improvements will confer special benefits upon certain parcels within the District. These special benefits created by the improvements are summarized in the table below:

Improvement Benefit
Street Lighting Improved Safety
Improved Accessibility
Street Trees and Other Landscaping Improved Aesthetics Increased Livability

5. QUANTIFICATION OF BENEFIT

The City may only assess property owners for that portion of the costs that provide a special and direct benefit to the properties located within the boundaries of the District. General benefits are not assessable, and the City must fund that portion of improvements that provides a general benefit to the public at large with some other funding source, such as the General Fund.

The 1972 Act does not specify a formula or method to use when determining the amount of general versus special benefit. The City Engineer is responsible for conducting the general versus special benefit analysis and then making a recommendation to the City Council, which makes the final determination. The general benefit analysis is summarized below.

5.1 Street Lighting

The City recognizes that a portion of the maintenance, operation, and servicing of the City’s streetlights on arterial streets that are funded by the District provides a general benefit to the public at large. Therefore, the City contribution to the District for any general benefits incurred by the maintenance, operation, and services on arterial roadways is estimated to be 3% of the operation and maintenance cost. This estimate was derived by determining the percentage of arterial roadway included in the District and multiplying that by the percent benefit assumed for traffic operations.

5.2 Street Trees and Other Landscaping

The District provides operation and maintenance for over 250 acres of City-owned neighborhood and community parks, and open space. For the purpose of calculating general benefit, it was assumed that casual park use by non-residents (park users not participating in a scheduled program) is de minimus because of the local nature of park use and the condition and popularity of parks in adjacent communities. Therefore, the general benefit derived for park and facility operation and maintenance is based solely on programs currently offered by the Pittsburg Recreation Department. It was estimated that 27% of the park area and facilities in the District have recreation programs offered. Based on data sampled, 30% of the participants registered for City recreation programs in the previous twelve months are non-residents.

5.3 Residential Benefit

For residential parcels, the measure of the intensity of land use is based on the number of dwelling units on a parcel. Multiple dwelling unit residences receive increased benefits as the number of units on a parcel increase. However, the incremental benefit per unit decreases as the number of units increase. In other words, a single-family home's benefit factor is 1.00, a condominium's benefit factor is 0.75, a four-plex's benefit factor is 2.95. A four-plex does not have four times the special benefit of a single-family home, but its benefit is larger than that of a single-family home. Each additional unit in a residential complex adds benefit but less benefit than the previous unit added.

5.4 Commercial and Industrial Benefit

For non-residential parcels, the intensity of use is based on the parcel's area and its frontage along public streets. Benefits from district improvements are estimated to rise with increasing parcel area and frontage. Once again, however, the incremental benefit per unit of area or frontage decreases with increasing parcel size or frontage.

Two separate land use categories are used for nonresidential parcels: "industrial" and "commercial/institutional". These two nonresidential categories are further divided according to whether a parcel is developed or vacant. The assessment methodology estimates that the benefit to a vacant parcel is fifty (50) percent of the benefit to a developed one. Parking lots are defined as vacant commercial/institutional parcels and are thus assessed at the fifty (50) percent benefit level.

5.5 Mathematical Benefit Calculation

The total benefit estimate for a given benefit measure can be calculated from formulas determined by the City Engineer that closely estimate the special benefit. Those formulas, charts denoting benefit given parcel use and size, and sample calculations are in Section 6 of this report.

6. METHOD OF APPORTIONMENT

Once special benefits are identified, they must be assigned based on the estimated proportionate special benefit derived by each parcel. This section describes the assignment of special benefit to each parcel.

6.1 Method

The City Engineer has developed and proposed an equitable method for distributing the costs of maintaining the District lighting and landscaping. That method:

• Determines the relative benefit received by each parcel based on type and intensity of land use.
• Derives a numerical expression to determine the special benefit (benefit factor) • Determines the cost for maintenance of the District improvements. • Derives an actual cost per unit of benefit (unit cost) by dividing the total estimated costs based on actual maintenance costs to cover all District costs by the total benefit factors. • Derives an applied assessment for each parcel based on an assessment per benefit factor of $102.18 for residential and mixed use parcels and $77.18 for all other uses. • Analyzes the actual costs per unit benefit for each parcel and the applied assessment for each parcel and calculates the difference between actual district costs and applied assessment.

The assessment method asserts that: 1) all assessable parcels in the District benefit from the improvements because they are similarly distributed throughout the District; 2) the benefit for each property varies according to the use of the property and the intensity of that use, and for a given intensity of use, similar land uses will derive similar benefits; 3) any subsidy currently provided by the City is based on the actual maintenance cost to the District.

Newly developed areas within the District will be assessed if a final map has been recorded and the parcel has been created by the date established by the County Assessor’s Office for inclusion on the Assessment Roll. Vacant residential parcels are currently not assessed.

Therefore, an assessment will be levied once a structure is declared final by the City of Pittsburg’s Building Division.

The establishment of the LLAD and its assessment methodology occurred prior to passage of Proposition 218. The provisions of Proposition 218 require that all parcels, including those that are owned by any agency (local, state, or federal), that benefit from the improvements within the District cannot be exempt from assessments “unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” Proposition 218 also requires that all existing, new, or increased assessments comply with the provisions of Proposition 218. Therefore, after the passage of Prop. 218, the City began imposing assessments on public property to ensure conformance with state law.

6.2 Assessment by Land Use Category

The following table details the total assessments by land use category.

Category
Code
Land Use Category Parcel
Count
Benefit
Factors
Assessment
01 Single Family Residential 16,972 0 16,972.000 1,734,198.96 0 21 2 Units, Residential 410 0 610.08 0 62,336.40 0
22 3 Units, Residential 19 0 42.24 0 4,316.04 0
23 4 Units, Residential 67 0 197.78 0 20,209.88 0
24 Combo with More than 1 Residence 18 0 41.44 0 4,234.04 0 25 Multi-Family, 5 or More Residences 51 0 2,747.53 0 280,742.86 0 29 Condos, Co-ops, Clusters 396 0 2970 30,349.44 0
Subtotal Residential 0 17,933 0 20,908.070 2,136,387.620

25/60 Multi-Family/Commercial 5 0 312.2080 0 31,901.46 0 Subtotal Mixed Use 0 5 0 312.2080 0 31,901.46 0

39 Vacant Commercial & Institutional 63 0 535.470 41,327.86 0 50 Developed Industrial 200 0 5,111.540 394,509.58 0
59 Vacant Industrial 65 0 871.440 67,257.72 0
60 Developed Commercial & Institutional 362 0 6,015.540 464,281.50 0 71 Churches 52 0 2080 16,053.44 0
85 Parking Lots 53 0 372.980 28,787.16 0
90 Non-Profit Organizations 8 0 320 2,469.76 0
Subtotal Commercial, Institutional,
Industrial, Churches, Parking Lots,
and Non-Profit
803 0 13,146.970 1,014,687.02 0
Totals 0 18,741 0 34,367.25 0 3,182,976.10 0

For each land use category, Table 5 summarizes the number of parcels, the subtotal benefit factors, and the applied assessment per benefit factor. The applied assessment for residential land use, city category codes 01, 21, 22, 23, 24, 25 and 29, is $102.18 per benefit factor. All other parcels including commercial, institutional, industrial, churches, and non-profit pay $77.18 per benefit factor. This amount continues to be less than the actual maintenance expenditure to cover all district costs per benefit factor, which is $176.52 per Benefit Factor.

The city continues to subsidize residential uses and non-residential uses, which is consistent with the goals of City Council and the community to encourage economic development and create and maintain jobs in the City of Pittsburg. The resulting assessments for each parcel are listed on the assessment roll, incorporated by reference into this report and on file with the City Clerk’s office.

6.3 Calculation of Multi-Family Residential Assessment

The assessment for each parcel with a multi-family residential building is determined by multiplying the residential unit assessment ($102.18) by the parcel benefit factor. The parcel's benefit factor is determined by the number of dwelling units on the parcel. The Engineer uses one of two formulas for the benefit factor calculation, B1 or B2 (below). B1 is used to calculate

the benefit for twenty-five (25) or fewer residential units, and B2 is used for parcels with more than twenty-five residential units.

Below are 1) The formulas used to calculate the benefit factors, and 2) examples of the calculation. Using these formulas, we have constructed tables showing the number of residential units and the corresponding benefit factors.

Residential benefit factor calculation uses either:

Formula B1 = RO x M + (S1 ÷ 2) x M2 or
Formula B2 = RO x MB + (S1 ÷ 2) x MB2 + RB x (M-MB) + (S2 ÷ 2) x (M-MB)2;

Where,
M = Number of Dwelling Units
MB = 25
RO = 0.75
RB = 0.60
S1 = -0.006
S2 = -0.00038

Where,
B1 = benefit for a parcel with benefit measure falling within the first line segment of incremental benefit curve

B2 = benefit for a parcel with benefit measure falling within the second line segment of incremental benefit curve

M = benefit measure (e.g., number of dwelling units on a parcel)

MB = value of benefit measure at the point where two-line segments meet (e.g., number of dwelling units on a parcel)

RO = incremental benefit at benefit measure of 0 (i.e., the y-intercept for incremental benefit curve) (e.g., SFR/dwelling unit)

RB = incremental benefit at point where the two-line segments meet (e.g., dwelling unit number or parcel area or parcel frontage)

S1 = slope of first line segment of incremental benefit curve (e.g., dwelling unit number or parcel area or parcel frontage)

S2 = slope of second line segment of incremental benefit curve (e.g., dwelling unit number or parcel area or parcel frontage)

Substituting the above numbers for letters, the formulas may be simplified to read:

B1 = RO x M + (S1 ÷ 2) x M2
B1 = 0.75M - (0.006 ÷ 2) x M2
B1 = 0.75M - 0.003 x M2

B2 = RO x MB + (S1 ÷ 2) x MB2 + RB x (M-MB) + (S2 ÷ 2) x (M-MB)2 B2 = 0.75 x 25 - (0.006 ÷ 2) x 625 + 0.60 x (M-25) - (0.00038 ÷ 2) x (M-25)2 B2 = 18.75 - (0.003) x 625 + 0.60 x (M-25) - 0.00019 x (M-25)2 B2 = 18.75 - 1.875 + (0.60 x M) - 15 - 0.00019 x (M-25)2 B2 = 1.875 + 0.60M - 0.00019 x (M-25)2

Calculation examples are on the next page.

EXAMPLE 1. Find the benefit factors for a residential complex with sixteen (16) units.

16 units are less than twenty-five, so Formula B1 "RO x M + (S1 ÷ 2) x M2" is used. That formula has been simplified for this example.

B1 = 0.75M - 0.003 x M2
M = 16
B1 = (0.75)(16) - (0.003)(162)
B1 = 12 - 0.768
B1 = 11.232 Benefit Factors

The Assessment Amount = Benefit Factors Times the Unit Assessment The Assessment Amount = 11.232 x $102.18 = $1147.69 = $1147.70

EXAMPLE 2. Find the benefit factors for a residential complex with one hundred twenty units.

120 units are more than 25, so Formula B2 [RO x MB + (S1 ÷ 2) x MB2 + RB x (M-MB) + (S2 ÷ 2) x (M-MB)2] is used. That formula has been simplified for this example.

B2 = 1.875 + 0.60M - 0.00019 x (M-25)2
M = 120
B2 = 1.875 + 0.60 x 120 - 0.00019 x (120-25)2
B2 = 1.875 + 72 - 0.00019 x 9025
B2 = 73.875 - 1.71475
B2 = 72.160 Benefit Factors

The Assessment Amount = Benefit Factors Times the Unit Assessment The Assessment Amount = 72.160 x $102.18 = $7,373.31 = $7,373.32

6.4 Residential Benefit Factors

Number
Of Units
Benefit
Factors
Number
Of Units
Benefit
Factors
Number
Of Units
Benefit
Factors
2 3
4 5

1.488

2.223

2.952

3.675
54 55
56 57

34.115

34.704

35.292

35.880
106
107
108
109

64.228

64.797

65.366

65.934
6 7
8 9

4.392

5.103

5.808

6.507
58 59
60 61

36.468

37.055

37.642

38.229
110
111
112
113

66.502

67.070

67.637

68.204

10 11
12 13

7.200

7.887

8.568

9.243
62 63
64 65

38.815

39.401

39.986

40.571
114
115
116
117

68.770

69.336

69.902

70.467
14 15
16 17

9.912

10.575

11.232

11.883
66 67
68 69

41.156

41.740

42.324

42.907
118
119
120
121

71.032

71.596

72.160

72.724
18 19
20 21

12.528

13.167

13.800

14.427
70 71
72 73

43.490

44.073

44.655

45.237
122
123
124
125

73.287

73.850

74.413

74.975
22 23
24 25

15.048

15.663

16.272

16.875
74 75
76 77

45.819

46.400

46.981

47.561
126
127
128
129

75.537

76.098

76.659

77.220
26 27
28 29

17.475

18.074

18.673

19.272
78 79
80 81

48.141

48.721

49.300

49.879
130
131
132
133

77.780

78.340

78.900

79.459
30 31
32 33

19.870

20.468

21.066

21.663
82 83
84 85

50.458

51.036

51.614

52.191
134
135
136
137

80.018

80.576

81.134

81.692
34 35
36 37

22.260

22.856

23.452

24.048
86 87
88 89

52.768

53.345

53.921

54.497
138
139
140
141

82.249

82.806

83.362

83.918
38 39
40 41

24.643

25.238

25.832

26.426
90 91
92 93

55.072

55.647

56.222

56.796
142
143
144
145

84.474

85.029

85.584

86.139
42 43
44 45

27.020

27.613

28.206

28.799
94 95
96 97

57.370

57.944

58.517

59.090
146
147
148
149

86.693

87.247

87.800

88.354
46 47
48 49

29.391

29.983

30.574

31.166
98 99
100
101

59.662

60.235

60.806

61.378
150
151
152
153

88.906

89.459

90.010

90.562
50 51
52 53

31.756

32.347

32.936

33.526
102
103
104
105

61.948

62.519

63.089

63.659
154
155
156
157

91.113

91.664

92.214

92.764

Number
Of Units
Benefit
Factors
Number
Of Units
Benefit
Factors
Number
Of Units
Benefit
Factors
158 93.314 210 121.372 262 148.403

159
160
161

93.863

94.412

94.961
211
212
213
121.902
122.431
122.960
263
264
265
148.913
149.422
149.931
162
163
164
165

95.509

96.057

96.604

97.151
214
215
216
217
123.488
124.016
124.544
125.071
266
267
268
269
150.440
150.948
151.456
151.963
166
167
168
169

97.698

98.244

98.790

99.335
218
219
220
221
125.598
126.124
126.650
127.176
270
271
272
273
152.470
152.977
153.483
153.989
170
171
172
173

99.880
100.425
100.969
101.513
222
223
224
225
127.701
128.226
128.751
129.275
274
275
276
277
154.495
155.000
155.505
156.009
174
175
176
177
102.057
102.600
103.143
103.685
226
227
228
229
129.799
130.322
130.845
131.368
278
279
280
281
156.513
157.017
157.520
158.023
178
179
180
181
104.227
104.769
105.310
105.851
230
231
232
233
131.890
132.412
132.934
133.455
282
283
284
285
158.526
159.028
159.530
160.031
182
183
184
185
106.392
106.932
107.472
108.011
234
235
236
237
133.976
134.496
135.016
135.536
286
287
288
289
160.532
161.033
161.533
162.033
186
187
188
189
108.550
109.089
109.627
110.165
238
239
240
241
136.055
136.574
137.092
137.610
290
291
292
293
162.532
163.031
163.530
164.028
190
191
192
193
110.702
111.239
111.776
112.312
242
243
244
245
138.128
138.645
139.162
139.679
294
295
296
297
164.526
165.024
165.521
166.018
194
195
196
197
112.848
113.384
113.919
114.454
246
247
248
249
1403195
140.711
141.226
141.742
298
299
300
301
166.514
167.011
167.506
168.002
198
199
200
201
114.988
115.523
116.056
116.590
250
251
252
253
142.256
142.771
143.284
143.798
302
303
304
305
168.496
168.991
169.485
169.979
202
203
204
205
117.122
117.655
118.187
118.719
254
255
256
257
144.311
144.824
145.336
145.848
306
307
308
309
170.472
170.965
171.458
171.950
206
207
119.250
119.781
258
259
146.360
146.871
310
311
172.442
172.934

208
209
120.312
120.842
260
261
147.382
147.893
312
313
173.425
173.916

Number
Of Units
Benefit
Factors
Number
Of Units
Benefit
Factors
Number
Of Units
Benefit
Factors
314
315
316
317
174.406
174.896
175.386
175.875
366
367
368
369
199.382
199.852
200.322
200.791
418
419
420
421
223.330
223.780
224.230
224.680
318
319
320
321
176.364
176.852
177.340
177.828
370
371
372
373
201.260
201.729
202.197
202.665
422
423
424
425
225.129
225.578
226.027
226.475
322
323
324
325
178.315
178.802
179.289
179.775
374
375
376
377
203.133
203.600
204.067
204.533
426
427
428
429
226.923
227.370
227.817
228.264
326
327
328
329
180.261
180.746
181.231
181.716
378
379
380
381
204.999
205.465
205.930
206.395
430
431
432
433
228.710
229.156
229.602
230.047
330
331
332
333
182.200
182.684
183.168
183.651
382
383
384
385
206.860
207.324
207.788
208.251
434
435
436
437
230.492
230.936
231.380
231.824
334
335
336
337
184.134
184.616
185.098
185.580
386
387
388
389
208.714
209.177
209.639
210.101
438
439
440
441
232.267
232.710
233.152
233.594
338
339
340
341
186.061
186.542
187.022
187.502
390
391
392
393
210.562
211.023
211.484
211.944
442
443
444
445
234.036
234.477
234.918
235.359
342
343
344
345
187.982
188.461
188.940
189.419
394
395
396
397
2123404
212.864
213.323
213.782
446
447
448
449
235.799
236.239
236.789
237.118
346
347
348
349
189.897
190.375
190.852
191.330
398
399
400
401
214.240
214.699
215.156
215.614
450
451
452
453
237.556
237.995
238.432
238.870
350
351
352
353
191.806
192.283
192.758
193.234
402
403
404
405
216.070
216.527
216.983
217.439
454
455
456
457
239.307
239.744
240.180
240.616
354
355
356
357
193.709
194.184
194.658
195.132
406
407
408
409
217.894
218.349
218.804
219.258
458
459
460
461
241.052
241.487
241.922
242.357

358
359
360
361
195.606
196.079
196.552
197.025
410
411
412
413
219.712
220.166
220.619
221.072
462
463
464
465
242.791
243.225
243.658
244.091
362
363
364
365
197.497
197.969
198.440
198.911
414
415
416
417
221.524
221.976
222.428
222.879
466
467
468
469
244.524
2443956
245.388
245.819

Number
Of Units
Benefit
Factors
Number
Of Units
Benefit
Factors
Number
Of Units
Benefit
Factors
470
471
472
473
246.250
246.681
247.111
247.541
522
523
524
525
268.143
268.554
268.956
269.375

474
475
476
477
247.971
248.400
248.829
249.257
526
527
528
529
269.785
270.194
270.603
271.012

478
479
480
481
249.685
250.113
250.520
250.967
530
531
532
533
271.420
271.828
272.113
272.520

482
483
484
485
251.394
251.820
252.246
252.671
534
535
536
537
272.926
273.332
273.738
274.143

486
487
488
489
253.096
253.521
253.945
254.369
538
539
540
541
274.548
274.952
275.356
275.760

490
491
492
493
254.792
255.215
255.638
256.060
542
543
544
545
276.163
276.556
276.968
277.370

494
495
496
497
256.482
256.904
257.325
257.746
546
547
548
549
277.772
278.173
278.574
278.975

498
499
500
501
258.166
258.587
259.006
259.426

502
503
504
505
259.844
260.263
260.681
261.099

506 261.516

507
508
509
261.933
262.350
262.766
510
511
512
513
263.182
263.598
264.013
264.428

514
515
516
517
264.842
265.256
265.670
266.083

518
519
520
521
266.496
266.908
267.320
267.732

6.5 Calculation of Commercial Assessment

The assessment for each parcel with a commercial use building is determined by multiplying the unit assessment ($77.18) by that parcel's benefit factors. The parcel's benefit factors are determined by its area and street frontage. The formula for calculating a parcel's benefit factors is a detailed formula which places frontage and area on a curve corresponding to a special benefit factor rating. Separate formulas are used for calculating the number of benefit factors earned by the parcel's frontage and by its area.

Below are the formulas used to calculate the benefit factors for frontage and for area and an example of the calculation.

In the following formulas and example, please note:

F = Actual Parcel Frontage x .75
A = Parcel Area (in acres)
B = Benefit Factor

FB1 Frontage Benefit Formula 1 (when frontage is <= 230'

FB1 = 0.062 x F - (0.0002391304  2) x F2

FB2 Frontage Benefit Formula 2 (when frontage is > 230')

FB2 = 7.935 + 0.007 x (F-230) - (0.0000022472  2) x (F-230)2

AB1 Area Benefit Formula 1 (when parcel area is <= 1.25 acres)

AB1 = 28.0 x A - (21.6  2) x A2

AB2 Area Benefit Formula 2 (when parcel area is > 1.25 acres)

AB2 = 18.125 + 1.0 x (A - 1.25) - (0.012903226  2) x (A-1.25)2

EXAMPLE: Find the assessment for an inside lot; 75' x 100'

Step 1 Define the parameters:

F = 75' (Actual Parcel Frontage) X .75 (multiplier)
A = 75' x 100' = 7500 square feet  43,560 = 0.172 acre (1 acre = 43,560 square feet)

Step 2 Calculate frontage benefit factors using Formula FB1: (frontage is < 230')

FB1 = 0.062 x F - (0.0002391304  2) x F2
F = 56.25'
FB1 = 0.062 x 56.25 - 0.0001195652 x 56.252
FB1 = 3.49 - 0.0001195652 x 3164
FB1 = 3.49 - 0.369
FB1 = 3.121 benefit factors

Step 3 Calculate area benefit factors using Formula AB1 (area is < 1.25 acres)

AB1 = 28.0 x A - (21.6  2) x A2
A = 0.172 acre
AB1 = 28.0 x 0.172 - 10.8 x 0.1722
AB1 = 4.816 - 10.8 x 0.030
AB1 = 4.816 - 0.324
AB1 = 4.492 benefit factors

Step 4 Find the total benefit factors earned by the parcel.

Benefit Factors = FB1 + AB1
Benefit Factors = 3.121 + 4.492 = 7.613 Benefit Factors

Step 5 Determine the Landscaping and Lighting Assessment.

Assessment = Unit Assessment Times Benefit Factors
Assessment = $77.18 x 7.613 = $587.58

The above example assumes the parcel is developed. If the parcel is not developed, the assessment is 50% of the above figure.

Exceptions

Individually owned parcels and common area parcels of commercial and industrial condominiums are assigned a proration of the area and frontage, if applicable, to accommodate for the common area parcel.

6.6 Calculation of Industrial Assessment

The assessment for each parcel with an industrial use building is determined by multiplying the industrial unit assessment ($77.18) by that parcel’s benefit factors. The parcel's benefit factors are determined by its area and street frontage. The formula for calculating a parcel's benefit factors is a detailed formula which places frontage and area on a curve corresponding to a predetermined benefit factor rating. Separate formulas are used for calculating the number of benefit factors earned by the parcel's frontage and by its area.

Below are the formulas used to calculate the benefit factors for frontage and for area and an example of the calculation.

In the following formulas and example, please note:

F = Actual Parcel Frontage x .75
A = Parcel Area (in acres)
BF = Benefit Factor

FB1 Frontage Benefit Formula 1 (when frontage is <= 1,000')

FB1 = 0.026 x F - (0.000017  2) x F2

FB2 Frontage Benefit Formula 2 (when frontage is > 1,000')

FB2 = 17.5 + 0.009 x (F-1000) - (0.0000032  2) x (F-1000)2

AB1 Area Benefit Formula 1 (when parcel area is <= 5.32 acres)

AB1 = 14.75 x A - (2.678572  2) x A2

AB2 Area Benefit Formula 2 (when parcel area is > 5.32 acres)

AB2 = 40.565 + 0.5 x (A - 5.32) - (0.007032  2) x (A-5.32)2

EXAMPLE: Find the assessment for an inside lot; 250' x 400'

Step 1 Define the parameters:

F = 250' (Actual Parcel Frontage) x .75 (multiplier)
A = 250' x 400' = 100,000 square feet  43,560 = 2.30 acres (1 acre = 43,560 square feet)

Step 2 Calculate frontage benefit factors using Formula FB1: (frontage is < 1,000')

FB1 = 0.026 x F - (0.000017  2) x F2
F = 187.5'
FB1 = 0.026 x 187.5 - 0.0000085 x 187.52

FB1 = 0.026 x 187.5 - 0.0000085 x 35,156
FB1 = 4.875 - 0.299
FB1 = 4.576 benefit factors
Step 3 Calculate area benefit factors using Formula AB1 (area is < 5.32 acres)

AB1 = 14.75 x A - (2.678572  2) x A2
A = 2.30 acres
AB1 = 14.75 x 2.30 - 1.339286 x 2.302
AB1 = 14.75 x 2.30 - 1.339286 x 5.29
AB1 = 33.925 - 7.085
AB1 = 26.8402 Benefit Factors

Step 4 Find the total benefit factors earned by the parcel.

Benefit Factors = FB1 + AB1
Benefit Factors = 4.576 + 26.8402 = 31.4162 benefit factors

Step 5 Determine the Landscaping and Lighting Assessment.

Assessment = Unit Assessment Time Benefit Factors
Assessment = $77.18 x 31.4162 = $2,424.70

The above example assumes the parcel is developed. If the parcel is not developed, the assessment is 50% of the above figure.

EXCEPTIONS

Each industrial parcel that has an area greater than seventy-six (76) acres are assigned, for purposes of assessment, an acreage of 76 acres, this being the point before the parcel area formula curve goes downward. Without such an assignment, the assessment for these parcels would have been less than for parcels of a smaller size.

6.7 Amount To Be Assessed

The total maximum amount to be assessed upon the assessable parcels is the total cost of the improvements, as detailed above, less the portion of costs attributable to general benefit as detailed in the Quantification of Benefit section.

Description Amount
Total Cost of Improvements 6,341,872 0
Less General Benefit Portion (6.14% of total costs) (396,941) 0 Total Cost of Improvements To Be Assessed $5,944,931 0

6.8 Method of Collection

The assessments will be collected annually on the Contra Costa County secured property tax roll. The assessments will be subject to the County’s assigned due dates and late penalties. However, the City Manager (or his/her designee) may choose to collect the assessments in an alternate manner (including directly billing the property owner) as may be deemed appropriate or necessary by the City or as allowed by law.

8. ASSESSMENT DISTRICT DIAGRAM

The following page contains the assessment diagram for the District. The lines and dimensions of each lot or parcel within the assessment district are those lines and dimensions shown on the maps of the Assessor of the County of Contra Costa for the fiscal year when this report was prepared. The Contra Costa County Assessor’s Parcel Maps are hereby incorporated by reference into this report. The County Assessor’s Maps shall govern all details concerning the lines and dimensions of lots or parcels.

The County Assessor’s Parcel Number is hereby adopted as the distinctive number identifying each parcel for purposes of this assessment.

Map data © OpenStreetMap contributors, Microsoft, Facebook, Inc. and its affiliates, Esri Community Maps contributors, Map layer by Esri µ
0 0.5 10.25 Miles
Scale: 1:32,750
City of Pittsburg:

Assessment Districts
Legend
Name
Oak Hills 1988 - 02
Citywide 1988 - 01
Parcels
Map Prepared by Nikesh Patel - GIS
Date Exported: 5/26/2022
Landscaping & Lighting

9. ASSESSMENT ROLL
The Assessment Roll is a list of the Assessor Parcel numbers of Contra Costa County, owner of record, situs address, and the assessment amount for each parcel. It is incorporated by reference into this report and on file with the City Clerk’s office.

Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this Engineer’s Report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the assessment amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method of apportionment and assessment rate rather than a proportionate share of the original assessment amount.

The following pages contain the proposed Fiscal Year 2026/27 assessment roll for the District.

PRELIMINARY ASSESSMENT ROLL
FISCAL YEAR 2026-27
PITTSBURG LANDSCAPING & LIGHTING ASSESSMENT DISTRICT 1988-01 Assessor's
Parcel
Number
Assessment
AmountProperty Address
073-010-002 $365.70495 E 3RD ST
073-010-003 $1,048.263RD ST
073-010-004 $1,011.92389 E 3RD ST
073-010-005 $361.54385 E 3RD ST
073-010-008 $197.34415 E 3RD ST
073-010-014 $1,494.443RD ST
073-010-015 $2,104.243RD ST
073-020-004 $1,317.58695 E 3RD ST
073-020-013 $940.84E 3RD ST
073-020-019 $1,099.98895 E 3RD ST
073-020-020 $3,529.22707 E 3RD ST
073-030-007 $1,147.84700 E 3RD ST
073-030-013 $4,238.62750 E 3RD ST
073-030-018 $1,650.76COLUMBIA ST
073-030-019 $1,035.76935 E 3RD ST
073-030-020 $4,085.26900 E 3RD ST
073-030-021 $1,860.52COLUMBIA ST
073-030-022 $1,553.94COLUMBIA ST
073-030-023 $1,609.10COLUMBIA ST
073-041-001 $724.24315 HARBOR ST
073-041-002 $220.58HARBOR ST
073-041-003 $385.28311 HARBOR ST
073-041-004 $1,369.54305 HARBOR ST
073-041-005 $883.94598 E 3RD ST
073-041-006 $39.603RD ST
073-041-007 $734.20INDUSTRY RD
073-042-003 $358.726 INDUSTRY RD
073-042-004 $375.788 INDUSTRY RD
073-042-005 $1,184.1812 INDUSTRY RD
073-042-007 $829.82601 INDUSTRY RD
073-042-012 $415.245 INDUSTRY RD
073-042-013 $281.8410 INDUSTRY RD
073-042-015 $146.26INDUSTRY RD
073-042-017 $146.262 INDUSTRY RD
073-042-019 $1,008.28600 INDUSTRY RD
073-042-023 $294.28INDUSTRY RD
073-042-024 $645.701 INDUSTRY RD
073-042-025 $570.22605 INDUSTRY RD
073-050-001 $2,670.06420 E 3RD ST
073-060-001 $1,116.34999 HARBOR ST
073-060-009 $460.561000 HARBOR ST
073-071-001 $102.181120 PINE ST
073-071-002 $102.181128 PINE ST
073-071-003 $102.181136 PINE ST
073-071-004 $102.181144 PINE ST
073-071-005 $102.181150 PINE ST
073-071-006 $102.181160 PINE ST
073-071-007 $102.18685 E 12TH ST
073-071-008 $102.18679 E 12TH ST
Assessor's
Parcel
Number
Assessment
AmountProperty Address
073-071-009 $102.18665 E 12TH ST
073-071-010 $102.18655 E 12TH ST
073-071-011 $102.181155 CEDAR ST
073-071-012 $102.181145 CEDAR ST
073-071-013 $102.181137 CEDAR ST
073-071-014 $102.181127 CEDAR ST
073-071-015 $102.181119 CEDAR ST
073-071-016 $102.181111 CEDAR ST
073-072-001 $102.181110 CEDAR ST
073-072-002 $152.041120 CEDAR ST
073-072-003 $102.181130 CEDAR ST
073-072-004 $102.181140 CEDAR ST
073-072-005 $102.181150 CEDAR ST
073-072-006 $102.181160 CEDAR ST
073-072-007 $102.18635 E 12TH ST
073-072-008 $102.18625 E 12TH ST
073-072-009 $102.18617 E 12TH ST
073-072-010 $102.18605 E 12TH ST
073-072-011 $152.041145 REDWOOD ST
073-072-012 $102.181135 REDWOOD ST
073-072-013 $102.181125 REDWOOD ST
073-072-014 $102.181115 REDWOOD ST
073-072-015 $227.161105 REDWOOD ST
073-073-001 $102.181110 REDWOOD ST
073-073-002 $102.181120 REDWOOD ST
073-073-003 $102.181130 REDWOOD ST
073-073-004 $102.181140 REDWOOD ST
073-073-005 $102.18561 E 12TH ST
073-073-006 $102.18553 E 12TH ST
073-073-007 $102.18547 E 12TH ST
073-073-008 $152.04543 E 12TH ST
073-073-009 $102.18539 E 12TH ST
073-073-010 $619.02525 E 12TH ST
073-073-011 $102.181135 HARBOR ST
073-073-012 $308.721125 HARBOR ST
073-073-013 $308.721105 HARBOR ST
073-073-015 $102.18542 E SANTA FE AVE
073-073-016 $152.04536 E SANTA FE AVE
073-074-001 $301.64500 E 12TH ST
073-074-002 $102.18526 E 12TH ST
073-074-003 $102.18534 E 12TH ST
073-074-004 $102.18542 E 12TH ST
073-074-005 $102.18550 E 12TH ST
073-074-006 $152.04560 E 12TH ST
073-074-007 $301.64563 CENTRAL AVE
073-074-008 $102.18555 CENTRAL AVE
073-074-009 $102.18545 CENTRAL AVE
073-074-010 $152.04535 CENTRAL AVE
073-074-011 $152.04517 CENTRAL AVE
05/07/26 1

PRELIMINARY ASSESSMENT ROLL
FISCAL YEAR 2026-27
PITTSBURG LANDSCAPING & LIGHTING ASSESSMENT DISTRICT 1988-01 Assessor's
Parcel
Number
Assessment
AmountProperty Address
073-074-013 $152.04501 CENTRAL AVE
073-075-001 $102.181225 REDWOOD ST
073-075-002 $102.18616 E 12TH ST
073-075-003 $102.18624 E 12TH ST
073-075-004 $102.18632 E 12TH ST
073-075-005 $102.18640 E 12TH ST
073-075-006 $102.18648 E 12TH ST
073-075-007 $102.18656 E 12TH ST
073-075-008 $102.18658 E 12TH ST
073-075-009 $102.18670 E 12TH ST
073-075-010 $152.04680 E 12TH ST
073-075-011 $102.18686 E 12TH ST
073-075-012 $102.18688 E 12TH ST
073-075-013 $102.18695 CENTRAL AVE
073-075-014 $102.18687 CENTRAL AVE
073-075-015 $102.18679 CENTRAL AVE
073-075-016 $102.18671 CENTRAL AVE
073-075-017 $102.18663 CENTRAL AVE
073-075-018 $102.18655 CENTRAL AVE
073-075-019 $102.18647 CENTRAL AVE
073-075-020 $102.18639 CENTRAL AVE
073-075-021 $102.18631 CENTRAL AVE
073-075-022 $102.18623 CENTRAL AVE
073-075-023 $102.18615 CENTRAL AVE
073-075-024 $102.18607 CENTRAL AVE
073-081-001 $102.181250 MAPLE ST
073-081-002 $102.18775 CENTRAL AVE
073-081-003 $102.18771 CENTRAL AVE
073-081-004 $102.18767 CENTRAL AVE
073-081-005 $102.18763 CENTRAL AVE
073-081-006 $102.18751 CENTRAL AVE
073-081-007 $102.18743 CENTRAL AVE
073-081-008 $102.18737 CENTRAL AVE
073-081-009 $102.18721 CENTRAL AVE
073-081-010 $102.18715 CENTRAL AVE
073-081-011 $102.181247 PINE ST
073-081-013 $152.041225 PINE ST
073-081-014 $102.18714 E 12TH ST
073-081-015 $152.04720 E 12TH ST
073-081-016 $102.18728 E 12TH ST
073-081-017 $102.18740 E 12TH ST
073-081-018 $102.18746 E 12TH ST
073-081-019 $102.18754 E 12TH ST
073-081-020 $102.18764 E 12TH ST
073-081-021 $102.18770 E 12TH ST
073-081-022 $102.18776 E 12TH ST
073-081-023 $102.18788 E 12TH ST
073-081-024 $102.181210 MAPLE ST
073-082-001 $102.18771 E 12TH ST
Assessor's
Parcel
Number
Assessment
AmountProperty Address
073-082-002 $152.04763 E 12TH ST
073-082-003 $102.18755 E 12TH ST
073-082-004 $102.18747 E 12TH ST
073-082-005 $102.18739 E 12TH ST
073-082-006 $102.18731 E 12TH ST
073-082-007 $102.18725 E 12TH ST
073-082-008 $102.18719 E 12TH ST
073-082-009 $102.18711 E 12TH ST
073-082-010 $102.18707 E 12TH ST
073-082-011 $102.18701 E 12TH ST
073-082-012 $102.181175 PINE ST
073-082-013 $102.181165 PINE ST
073-082-014 $152.041155 PINE ST
073-082-015 $102.18724 E 11TH ST
073-082-016 $102.18732 E 11TH ST
073-082-017 $102.18740 E 11TH ST
073-082-018 $102.18744 E 11TH ST
073-082-019 $102.18756 E 11TH ST
073-082-020 $102.18764 E 11TH ST
073-082-021 $102.18772 E 11TH ST
073-082-022 $301.64786 E 11TH ST
073-082-023 $102.181160 MAPLE ST
073-082-024 $102.181170 MAPLE ST
073-083-001 $152.04793 E 11TH ST
073-083-002 $102.18779 E 11TH ST
073-083-003 $102.18765 E 11TH ST
073-083-004 $102.18751 E 11TH ST
073-083-005 $102.18739 E 11TH ST
073-083-006 $102.18709 E 11TH ST
073-083-007 $102.18712 E SANTA FE AVE
073-083-008 $102.18725 E 11TH ST
073-083-010 $152.041118 MAPLE ST
073-091-002 $102.181110 LAUREL ST
073-091-003 $102.181120 LAUREL ST
073-091-004 $102.181130 LAUREL ST
073-091-006 $152.04808 E 11TH ST
073-091-007 $664.90819 E 11TH ST
073-092-001 $152.041113 LAUREL ST
073-092-002 $102.181100 COLUMBIA ST
073-092-003 $102.181120 COLUMBIA ST
073-092-004 $102.18893 E 11TH ST
073-092-005 $102.18881 E 11TH ST
073-092-006 $102.18873 E 11TH ST
073-092-007 $102.181123 LAUREL ST
073-093-001 $102.181160 COLUMBIA ST
073-093-002 $102.181170 COLUMBIA ST
073-093-003 $102.181180 COLUMBIA ST
073-093-004 $102.181186 COLUMBIA ST
073-093-005 $102.18877 E 12TH ST
05/07/26 2

PRELIMINARY ASSESSMENT ROLL
FISCAL YEAR 2026-27
PITTSBURG LANDSCAPING & LIGHTING ASSESSMENT DISTRICT 1988-01 Assessor's
Parcel
Number
Assessment
AmountProperty Address
073-093-006 $102.18871 E 12TH ST
073-093-007 $102.18861 E 12TH ST
073-093-008 $102.18849 E 12TH ST
073-093-009 $102.18845 E 12TH ST
073-093-010 $102.18837 E 12TH ST
073-093-011 $102.18829 E 12TH ST
073-093-012 $102.18821 E 12TH ST
073-093-013 $102.18813 E 12TH ST
073-093-014 $102.18805 E 12TH ST
073-093-015 $102.181175 MAPLE ST
073-093-016 $152.041165 MAPLE ST
073-093-017 $102.181155 MAPLE ST
073-093-018 $102.18828 E 11TH ST
073-093-019 $102.18836 E 11TH ST
073-093-020 $102.18842 E 11TH ST
073-093-021 $102.18852 E 11TH ST
073-093-022 $102.18860 E 11TH ST
073-093-023 $102.18868 E 11TH ST
073-093-024 $102.18876 E 11TH ST
073-094-001 $102.181215 MAPLE ST
073-094-002 $102.18822 E 12TH ST
073-094-003 $102.18828 E 12TH ST
073-094-004 $152.04830 E 12TH ST
073-094-005 $102.18838 E 12TH ST
073-094-006 $102.18846 E 12TH ST
073-094-007 $102.18854 E 12TH ST
073-094-008 $102.18862 E 12TH ST
073-094-009 $102.18878 E 12TH ST
073-094-010 $102.18870 E 12TH ST
073-094-011 $102.18886 E 12TH ST
073-094-012 $102.18894 E 12TH ST
073-094-013 $152.04895 CENTRAL AVE
073-094-014 $102.18887 CENTRAL AVE
073-094-015 $102.18875 CENTRAL AVE
073-094-016 $102.18867 CENTRAL AVE
073-094-017 $102.18851 CENTRAL AVE
073-094-018 $102.18845 CENTRAL AVE
073-094-019 $102.18841 CENTRAL AVE
073-094-020 $102.18835 CENTRAL AVE
073-094-021 $102.18831 CENTRAL AVE
073-094-022 $102.18823 CENTRAL AVE
073-094-023 $102.18815 CENTRAL AVE
073-094-024 $102.181265 MAPLE ST
073-095-001 $152.041291 COLUMBIA ST
073-095-002 $102.181269 COLUMBIA ST
073-095-003 $102.181247 COLUMBIA ST
073-095-004 $102.181225 COLUMBIA ST
073-096-001 $102.18905 E 12TH ST
073-096-002 $102.181185 COLUMBIA ST
Assessor's
Parcel
Number
Assessment
AmountProperty Address
073-096-003 $102.181171 COLUMBIA ST
073-096-004 $102.181157 COLUMBIA ST
073-096-005 $102.181153 COLUMBIA ST
073-097-001 $102.18901 E 11TH ST
073-097-002 $102.181127 COLUMBIA ST
073-097-003 $102.181121 COLUMBIA ST
073-097-004 $102.181119 COLUMBIA ST
073-101-001 $102.18758 CENTRAL AVE
073-101-002 $102.18766 CENTRAL AVE
073-101-003 $102.18774 CENTRAL AVE
073-101-004 $102.18782 CENTRAL AVE
073-101-005 $102.181310 MAPLE ST
073-101-006 $102.181318 MAPLE ST
073-101-007 $102.181326 MAPLE ST
073-101-008 $102.181334 MAPLE ST
073-101-009 $102.181342 MAPLE ST
073-101-010 $102.181350 MAPLE ST
073-101-011 $102.181358 MAPLE ST
073-101-012 $102.181366 MAPLE ST
073-101-013 $102.181374 MAPLE ST
073-101-014 $102.181380 MAPLE ST
073-101-015 $152.041390 MAPLE ST
073-101-016 $102.18789 E 14TH ST
073-101-017 $102.18781 E 14TH ST
073-101-018 $102.18773 E 14TH ST
073-101-019 $102.18765 E 14TH ST
073-101-020 $102.181391 BIRCH ST
073-101-021 $102.181381 BIRCH ST
073-101-022 $102.181375 BIRCH ST
073-101-023 $102.181367 BIRCH ST
073-101-024 $102.181359 BIRCH ST
073-101-025 $102.181351 BIRCH ST
073-101-026 $102.181343 BIRCH ST
073-101-027 $102.181335 BIRCH ST
073-101-028 $102.181327 BIRCH ST
073-101-029 $102.181319 BIRCH ST
073-102-001 $102.18808 CENTRAL AVE
073-102-002 $102.18816 CENTRAL AVE
073-102-003 $102.18824 CENTRAL AVE
073-102-004 $102.18832 CENTRAL AVE
073-102-005 $102.18840 CENTRAL AVE
073-102-006 $102.181314 ACACIA ST
073-102-007 $102.181320 ACACIA ST
073-102-008 $102.181328 ACACIA ST
073-102-009 $102.181336 ACACIA ST
073-102-010 $102.181344 ACACIA ST
073-102-011 $102.181352 ACACIA ST
073-102-012 $102.181360 ACACIA ST
073-102-013 $102.181366 ACACIA ST
05/07/26 3