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Agenda packet

Pittsburg City Council
June 15, 2026

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Agenda packet
Meeting
June 15, 2026
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Pittsburg City Council
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937
Original file
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Text extracted from the city's file for reading and search. Open the original on pittsburgca.api.civicclerk.com. That file is the official record.

Task 1C. Prepare Additional Sections Detailing Borrow Site for the Biological Resources Analysis
Consultant shall prepare a characterization of the borrow site that includes a discussion of the borrow site’s plant communities and wildlife habitats. Lists of all plant and animal species observed or expected to occur on the site shall be prepared. Special-status species, “waters of the United States and/or State” subject to regulation by the Corps or RWQCB, and any impacts and proposed mitigation measures related to these shall be discussed for the borrow site.

Task 2. Conduct Draft Aquatic Resources Delineation Survey Consultant shall map those areas on the project site that meet criteria as “wetlands” and “other waters” that could be within the Corps’ jurisdiction pursuant to Section 404 of the Clean Water Act and the RWQCB’s jurisdiction pursuant to Section 401 of the Clean Water Act or under the Porter-Cologne Water Quality Control Act. The wetland delineation would be conducted according to the Corps’ 1987 Wetlands Delineation Manual1 in conjunction with the 2008 Regional Supplement for the Arid West Region2. This jurisdictional determination request and the Draft Preliminary Wetland Delineation Map shall also be prepared in compliance with the Corps’ 2016 Minimum Standards for Acceptance of Aquatic Resources Delineation Reports3 and the 2016 Updated Map and Drawing Standards for the South Pacific Division Regulatory Program4.

This means that Consultant shall be examining hydrology, plants, and soils over the project site. Consultant’s draft jurisdictional map could be submitted to the Corps with a request that this agency confirm the extent of its jurisdiction pursuant to Section 404 of the Clean Water Act.

The Corps always reminds the public that “only the Corps can determine the extent of their jurisdiction.” A confirmed Corps’ jurisdictional determination would provide an official map depicting the extent of Corps jurisdiction over “waters of the United States” on the project site and is essential for assessing constraints/permitting requirements for proposed developments. The confirmed Corps’ map would also likely provide a map that the Regional Water Quality Control Board would use to determine the extent of its jurisdiction over the project site pursuant to Section 401 of the Clean Water Act.

Please note that while Consultant can estimate Corps regulated areas, only the Corps can confirm the extent of area falling within their jurisdiction. Thus, the Corps would have to confirm Consultant’s draft map to provide City with an official map depicting the Corps’ Clean Water Act jurisdiction.

Task 2A. Field Delineation

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To complete the draft Aquatic Resources Delineation survey, Consultant shall map those areas that would likely constitute “waters of the United States” (i.e., those areas that would likely be regulated by the Corps) using satellite (GPS) technology. All wetlands mapped in the field with the GPS shall be digitally transposed over a registered aerial photograph of the project site. The mapped areas would be roughly accurate within 36-inches of true location. Using the GPS mapped wetlands, Consultant shall also accurately calculate the amount of area that would likely constitute “waters of the United States.” The actual amount of wetland acreage (and the types of wetlands) would likely have bearing on the type(s) of permits that would have to be acquired from the Corps for the proposed project. Please note that while Consultant can estimate Corps regulated areas, only the Corps can confirm the extent of area falling under their jurisdiction.

To satisfy the Corps’ requirements for conducting draft jurisdictional determinations, Consultant shall examine the soils (shall dig shallow soil pits) and plant species composition on the project site to develop a map of likely jurisdictional areas that can be examined by the Corps. This task will be conducted under Task 1B above.

Task 2B. Prepare Wetlands Assessment Report
An Aquatic Resources Delineation Report, including sample point data sheets, shall be prepared and could be submitted to the Corps with a request to this agency to conduct a formal Aquatic Resources Delineation Determination. Consultant’s field map would also be included in this report. Consultant shall provide City with a draft of this report and map for review prior to agency submittal, and shall not proceed with Task 2D, Corps Verification, until approved by City.

Task 2C. Graphics (as necessary for Corps jurisdictional determination) Consultant shall prepare a scaled draft wetlands map of the project site for the Aquatic Resources Delineation report. This map shall include wetland polygons, data points, project boundaries and all other features that are required to be included as detailed in the Corps’ 2016 Updated Map and Drawing Standards for the South Pacific Division Regulatory Program.

Task 2D. Consultant shall meet with the Corps on the Project Site to Verify Mapped Wetlands; Resubmit Final (Modified, if necessary) Wetlands Map to Corps; Request Final Map Concurrence. (Consultant shall not proceed with Task 2D, Corps Verification, until approved by City.)
The Corps jurisdictional determination would provide an official map depicting the extent of the Corps’ jurisdiction over waters of the United States on the project site. It would also likely provide a map that the Regional Water Quality Control Board would use to

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determine the extent of its jurisdiction over the project site pursuant to Section 401 of the Clean Water Act or the Porter-Cologne Water Quality Control Act. The actual amount of jurisdictional acreage would likely have bearing on the type(s) of permits that would have to be acquired from the Corps for any proposed impacts to Corps regulated areas.

Consultant proposes one field day to meet with the Corps to have the draft wetlands map confirmed. Consultant has also budgeted time to modify the wetlands map in the field and in the office (if deemed necessary by the Corps), and to resubmit the wetland map to City upon request.

Task 3. Project Management/Administration
Project management tasks include report and graphics preparation oversight, and telephone calls with City or their designees. Administrative tasks include contracting, billing, and budget tracking.

Conduct a Cultural Resources Study of the West Leland Road Extension Phase II Borrow Site, Contra Costa County
Consultant itself or through a subconsultant approved by the City shall:

Conduct archival research at the Northwest Information Center of the California Historical Resources Information System and at local and online libraries to assess the potential for prehistoric and historic-era cultural resources within the study area and its surroundings.

Contact the Native American Heritage Commission and request a Sacred Lands File search of the study area, contact local Native American tribes and individuals and notify them of our involvement in the project. This notification does not constitute legal consultation as defined by AB52.

Conduct a field study of the proposed West Leland Road Extension project area.

Field methods could include a surface survey with the use of a hoe or trowel to clear the ground surface of vegetation or duff, excavation of shovel probe(s), or excavation with a hand auger. Preliminary documentation of cultural resources on DPR 523 forms shall be completed if found during fieldwork.

Consultant shall complete a written technical report of findings that summarizes the preceding tasks and offers recommendations for the treatment of cultural resources.

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Update respective technical reports, information, and findings to reflect the use of the borrow site
Consultant itself or through a subconsultant approved by the City shall conduct additional research to update their respective technical reports, information, and findings to reflect the use of the borrow site.

These changes included adjustments to the project property boundary requested on November 25, 2025, and December 16, 2025, including the addition of the borrow parcel and 15-foot buffer.

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ATTACHMENT 2

EXHIBIT B
COMPENSATION SCHEDULE (CONT’D)
Borrow site
Task 7.3a.2. Construction Health Risk Assessment ...............................................$4,850 Biological Resources Analysis and Aquatic Resources Delineation Survey….….$31,950 Archival research; NAHC contact; field study; technical report……………………..$6,363 Research to update respective technical reports, information, and findings……….$2,100

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STAFF REPORT
MEETING DATE: June 15, 2026
TO: Mayor and Council Members
FROM: Darin E. Gale‚ City Manager
Jordan Davis, Director of Community and Economic Development Elena Adair, Director of Finance
SUBJECT: Adoption of a City Council Resolution Establishing a Transient Occupancy Tax Rate of 12%

EXECUTIVE SUMMARY
Pursuant to Pittsburg Municipal Code section 3.12.030, the City Council is authorized to establish a transient occupancy tax rate of up to 12%. The proposed increase to 12 percent aligns Pittsburg with regional market conditions and provides a modest enhancement to General Fund revenues, primarily generated from visitors rather than residents, to support City services and ongoing economic development efforts.

FISCAL IMPACT
Increasing the transient occupancy tax (TOT) rate from 10% to 12% represents an estimated 20% increase in TOT revenues, assuming stable occupancy and room rates.

Based on recent performance, the increase is projected to generate approximately $90,000 in additional General Fund revenue annually, which may be used to support core municipal services, infrastructure, and economic development initiatives.

RECOMMENDATION
Staff recommend the City Council adopt the Resolution establishing a Transient Occupancy Tax rate of 12%, effective August 1, 2026.

BACKGROUND
Transient Occupancy Tax or TOT, commonly referred to as a “hotel tax,” is a local tax imposed on individuals who occupy lodging for a period of 30 days or less. The tax is collected by hotel operators at the time of payment and remitted to the City. TOT is considered a general tax and, thus, supports the City’s General Fund.

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On November 8, 2011, the voters of the City of Pittsburg approved Measure H, with over 77% of the vote, increasing the allowable TOT charge from 8% to 12%; Measure H was codified by Ordinance No. 11-1353, amending Chapter 3.12 of the PMC. As adopted, PMC section 3.12.030 authorizes the City Council to set the TOT rate by resolution, up to a maximum of 12% of the rent charged. The current rate is 10%.

With the continued growth of Pittsburg’s hospitality sector, including new hotel development and increased visitor activity, the City has an opportunity to adjust the TOT rate to better align with regional standards and capture additional visitor-based revenue.

SUBCOMMITTEE FINDINGS
This item was not presented to subcommittee

STAFF ANALYSIS
TOT represents one of the City’s most effective tools for generating non-resident revenue to support services without increasing costs to Pittsburg households, as TOT is primarily paid by non-residents visiting the City. However, the City could expect TOT revenues to increase by up to $90,000, annually. Recent and planned hotel development, along with broader economic growth initiatives, has increased the importance of TOT as a revenue stream that captures value from visitors benefiting from City services and amenities.

The proposed TOT increase from 10% to 12% represents a modest increase in the cost of hotel room rental, but would potentially generate significant revenue for the City’s General Fund. While the proposed increase would move Pittsburg into a tie with San Pablo for highest TOT within Contra Costa County, the proposed change would also align the City with other California cities with major sports tourism initiatives, including Manteca (12%), Sacramento (12%), Elk Grove (12%), Fresno (12%), Clovis (12%), and Ontario (11.75%). Of the 81 cities within the greater Bay Area with an established TOT, 34 have rates of 12% or higher.

Additionally, studies have shown that such taxes have a negligible impact on hotel demand, as they are considerably outweighed by factors such as the overall economy, location, amenities, and base room rate. As a realistic example, a room that currently rents for a base rate of $150 would pay a TOT of $18, up from $15 under the current TOT rate.

ATTACHMENT: Resolution

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Resolution No. 26- Page 1 of 2 June 15, 2026

BEFORE THE CITY COUNCIL OF THE CITY OF PITTSBURG
In the Matter Of:

Establishing a Transient Occupancy Tax )
Rate of 12 Percent as Authorized by ) RESOLUTION NO. 26- Measure H of 2011 )
WHEREAS, on November 8, 2011, the voters of the City of Pittsburg approved Measure H, with over 77% of the vote, increasing the allowable TOT charge from 8% to 12%; and
WHEREAS, Measure H was codified by Ordinance No. 11-1353, amending Chapter

3.12 of the Pittsburg Municipal Code (PMC); and
WHEREAS, PMC section 3.12.030 authorizes the City Council to set the Transient Occupancy Tax (TOT) rate by resolution, up to a maximum of 12% of the rent charged; and
WHEREAS, the current TOT rate is 10 percent; and
WHEREAS, the City Council desires to increase the TOT rate to 12 percent to align with regional standards and to generate additional revenue to support municipal services and economic development; and
WHEREAS, the TOT is primarily paid by visitors to the City and, therefore, provides a revenue source that does not directly burden Pittsburg residents; and WHEREAS, the City Council finds that increasing the TOT rate is in the best interest of the City.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pittsburg, pursuant to Section 3.12.030 of the Pittsburg Municipal Code adopted by the voters in 2011, hereby establishes the Transient Occupancy Tax rate is at twelve percent (12%) of the rent charged by the operator; and
BE IT FURTHER RESOLVED that the increased Transient Occupancy Tax rate shall become effective on August 1, 2026; and
BE IT FURTHER RESOLVED that the City Manager or their designee is authorized to take all actions necessary to implement this Resolution.

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Resolution No. 26- Page 2 of 2 June 15, 2026
PASSED AND ADOPTED by the City Council of the City of Pittsburg at a regular meeting held on the 15th of June 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:

Dionne Adams, Mayor
ATTEST:

Alice E. Evenson, City Clerk

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STAFF REPORT
MEETING DATE: June 15, 2026
TO: Chair and Governing Board Members
FROM: Darin E. Gale‚ Executive Director
Jordan Davis, Director of Community and Economic Development Marlee Nunez, Financial Analyst of Pittsburg Power Company SUBJECT: Adoption of a Pittsburg Power Company Resolution Authorizing the Executive Director to Execute the First Amendment to the Agreement for the Alteration/Installation of Utility Facilities between Pittsburg Power Company and ALCO Iron and Metals to Accept a Revised Letter of Credit

EXECUTIVE SUMMARY
Pittsburg Power Company (PPC) Resolution 22-444 authorized the execution of an Agreement between PPC and ALCO Iron and Metals (ALCO) for the Alteration/Installation of Utility Facilities at ALCO, an industrial customer on Mare Island. Under the Agreement, PPC loaned $350,000 to ALCO. The Agreement obligated ALCO to provide PPC with an irrevocable letter of credit (LOC) to secure the loan amount. ALCO has transitioned its banking services from Bank of America to BMO Bank and has requested issuance of a new LOC with a reduced amount, reflecting a remaining principal balance of $265,000.

FISCAL IMPACT
There is no fiscal impact to the PPC Enterprice Fund nor the General Fund. The LOC serves solely as collateral to ensure full repayment of the remaining loan balance owed by ALCO under the Agreement.

RECOMMENDATION
The Governing Board of the Pittsburg Power Company adopt the resolution authorizing the Executive Director to execute the First Amendment to the Agreement.

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BACKGROUND
On December 27, 2022, PPC and ALCO executed an Agreement for the Alteration/Installation of Utility Facilities on Mare Island. Section 2.2.3 of the Agreement requires ALCO to provide PPC with an irrevocable letter of credit acceptable to PPC to guarantee repayment of the $350,000 amount funded under the Agreement. ALCO provided PPC with a $350,000 LOC issued by Bank of America. ALCO has made, and continues to make, monthly loan payments to PPC in accordance with the repayment schedule for the borrowed amount. As a result of ongoing repayments, the outstanding principal balance has been reduced to $265,000. ALCO recently transitioned its banking operations from Bank of America to BMO Bank and has requested to replace the existing LOC with a new LOC from BMO Bank in the reduced amount of $265,000 to serve as collateral for the remaining balance owed to PPC.

SUBCOMMITTEE FINDINGS
This item was not presented to a subcommittee.

STAFF ANALYSIS
The Agreement between PPC and ALCO requires an irrevocable LOC to remain in effect for the duration of the repayment period, ensuring PPC is fully secured against nonpayment of the borrowed amount. ALCO has continued to meet its monthly payment obligations and is current on its loan repayment schedule.

ALCO changed its financial institution from Bank of America to BMO Bank. A new LOC is necessary to maintain compliance with the Agreement’s security requirements. The proposed LOC of $265,000 from BMO Bank is sufficient to secure the remaining principal balance and provides PPC with the same level of security as the original Bank of America LOC. Amendment of the agreement and acceptance of the reissued LOC will allow PPC to maintain proper financial protection while ensuring ALCO remains in contractual compliance.

The action requested amends only the LOC amount provision in the Agreement. It does not modify repayment conditions, or change the loan balance. It simply updates the security instrument to reflect the remaining principal balance and ALCO’s new banking institution.

ATTACHMENTS: Resolution
ALCO New Letter of Credit

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BEFORE THE GOVERNING BOARD OF THE PITTSBURG POWER COMPANY

OF THE CITY OF PITTSBURG
In the Matter of:

Authorizing the Executive Director to )
Execute the First Amendment to the ) RESOLUTION NO. 26- Agreement with ALCO Iron and Metals )
WHEREAS, Pittsburg Power Company (PPC), a joint powers authority, and ALCO Iron and Metals (ALCO), an industrial customer on Mare Island, entered into an Agreement for the Alteration/Installation of Utility Facilities (Agreement) dated December 27, 2022; and
WHEREAS, pursuant to the Agreement, PPC loaned ALCO $350,000 to complete a project; and
WHEREAS, ALCO provided PPC with a $350,000 Letter of Credit (LOC) issued by Bank of America to secure the borrowed amount pursuant to the Agreement; and WHEREAS, ALCO has made, and continues to make, monthly payments on the borrowed amount to PPC in accordance with the loan repayment schedule; and WHEREAS, ALCO has recently transferred its banking services from Bank of America to BMO Bank and has requested PPC to amend the Agreement and accept issuance of a new LOC to PPC in the reduced amount of $265,000 to guarantee reimbursement for the remaining principal balance of the borrowed amount; and NOW, THEREFORE, BE IT RESOLVED by the Governing Board of the Pittsburg Power Company hereby authorizes the Executive Director to execute the First Amendment to the Agreement.

PASSED AND ADOPTED by the Governing Board of the Pittsburg Power Company at a regular meeting on the 15th day of June 2026, by the following vote:

AYES:

NOES:

ABSTAINED:

ABSENT:
_____________________
Dionne Adams, Chair
ATTEST:
____________________________
Darin E. Gale, Executive Secretary

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FIRST AMENDMENT TO

THE AGREEMENT FOR THE ALTERATION/INSTALLATION OF UTILITY

FACILITIES BETWEEN

PITTSBURG POWER COMPANY AND

ALCO IRON AND METAL COMPANY
THIS First Amendment to the Principal Agreement made and entered into on December 27, 2022, hereafter referred to as Agreement, between ALCO Iron and Metal Company, a California corporation, therein referred to as ALCO, and Pittsburg Power Company, a joint powers agency, therein referred to as PPC, is made and entered into on this 1st day of June, 2026.

WHEREAS, the parties entered into an Agreement for the alteration and installation of utility facilities and for a cost reimbursement plan under which ALCO agreed to reimburse PPC for a loan amount of Three Hundred Fifty Thousand dollars ($350,000); and WHEREAS, the total cost of the project has been finalized, and the parties desire to revise the Agreement to reflect the actual project costs incurred, resulting in a total loan amount of Three Hundred Thirty-One Thousand Seven Hundred Fifty-Nine dollars and Seven cents ($331,759.07); and
WHEREAS, Section 2.2.3 of the Agreement requires ALCO to provide an irrevocable letter of credit in the amount of Three Hundred Fifty Thousand dollars ($350,000) as set forth in Exhibit C, Article 4 of the Agreement; and
WHEREAS, ALCO has partially repaid the loan, reducing the outstanding principal balance to less than Two Hundred Sixty-Five Thousand dollars ($265,000); and WHEREAS, the parties desire to amend the Agreement to update the letter of credit requirement to reflect the remaining principal balance to be secured, while maintaining Exhibit C as an accurate record of the original cost estimate; NOW, THEREFORE, ALCO and PPC do mutually agree as follows:

1. Compensation. Section 2.2.1 of the Agreement is hereby amended to read as follows:
d) Costs listed in Exhibit C, Article 4 shall be reimbursed to UTILITY by CUSTOMER through a reimbursement payment as follows: Beginning July 1, 2023, CUSTOMER will reimburse UTILITY monthly in the amount of $3,234.21 for a period of ten (10) years.

The monthly payment is calculated based on the loan amount of $331,759.07 for actual costs incurred at a fixed annual interest rate of 3.2% for the 10-year term. UTILITY will invoice CUSTOMER for the loan payment monthly, separately from CUSTOMER’s monthly utility bills.

Section 2.2.3 of the Agreement is hereby amended to read as follows:

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Within 10 days of execution of this First Amendment, CUSTOMER shall provide an irrevocable letter of credit acceptable to UTILITY in the amount of $265,000 which represents the remaining principal balance of the loan to be guaranteed under this Agreement. The parties acknowledge that Exhibit C, Article 4 continues to reflect the original project cost estimate and the revision to the letter of credit amount does not amend or alter Exhibit C.

5. Integration. This First Amendment contains the entire agreement between the parties with respect to its subject matter and supersedes whatever oral or written understanding they may have had prior to the execution of this First Amendment. This First Amendment shall not be amended or modified except by a written agreement executed by each of the parties. Except as specifically revised herein, all terms and conditions of the Agreement shall remain in full force and effect, and ALCO shall perform all duties, obligations and conditions required under the Agreement.

6. Inconsistencies. In the event of any conflict or inconsistency between the provisions of this First Amendment and the Agreement, the provisions of this First Amendment shall control in all respects.

7. Ambiguities. The parties have each carefully reviewed this First Amendment and have agreed to each term of this First Amendment. No ambiguity shall be presumed to be construed against either party.

8. Counterparts. This First Amendment may be executed by the parties in one or more counterparts all of which collectively shall constitute one document and agreement.

9. Authority. The person signing this First Amendment for ALCO hereby represents and warrants that he or she is fully authorized to sign this First Amendment on behalf of ALCO.

IN WITNESS WHEREOF, the parties have entered into this First Amendment on the day and year first hereinabove appearing.

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ALCO:

ALCO Iron and Metal Company, a California
corporation
By:

Michael Bercovich, Chief Operating
Officer
PPC:

PITTSBURG POWER COMPANY, a joint
powers agency
By:

Vanessa Xie, General Manager
APPROVED AS TO FORM:

By:

Donna Mooney, City Attorney

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